MULLAPERIYAR DAM
1. Context
The Supreme Court orally asked the States of Tamil Nadu and Kerala to address it on whether the supervisory committee formed by the court would be more effective in taking care of the 129-year-old Mullaperiyar dam or the job must be given to a statutory committee envisaged under the new Dam Safety Act of 2021
2. New Guidelines
- The CWC (Central Water Commission) implemented a set of guidelines for dam construction following Kerala's preparation of the DPR (Detailed Project Report) in 2011. Those informed about the situation mentioned that the costs for various project components have increased since the last DPR, hence the need for a revision.
- Recently, the State government approached the CWC to expedite approval for a new dam's construction. Additionally, the State expressed its readiness to supply water to Tamil Nadu from this new dam.
- Kerala and Tamil Nadu have been embroiled in a prolonged legal dispute regarding the stability and other related aspects of the current dam. Kerala has been advocating for a new dam primarily on safety grounds.
- Both states witnessed significant protests after Kerala raised safety concerns and called for the decommissioning the existing dam
3. What do we Know about the Mullaperiyar Dam?
The Mullaperiyar Dam is located in the southern Indian state of Kerala, but it's owned and operated by the Government of Tamil Nadu.
Here are some key points about the dam:
- Situated in the Western Ghats, the Mullaperiyar Dam is built across the Periyar River in the state of Kerala
- Although the dam is located in Kerala, it is owned, maintained, and operated by the Government of Tamil Nadu based on a 999-year lease agreement signed in 1886
- The primary purpose of the dam is to divert water from the Periyar River's catchment area to the Vaigai River basin in Tamil Nadu for irrigation and drinking water purposes
- The dam has been a subject of contention between Kerala and Tamil Nadu due to concerns over its structural integrity. Kerala has raised concerns about the dam's safety due to its age and the potential risk to downstream areas in case of a dam failure. Tamil Nadu contends that the dam is safe and necessary for meeting its water needs
- The two states have engaged in a prolonged legal battle over the Mullaperiyar Dam's safety and the need for a new dam. Kerala has called for decommissioning the existing dam and constructing a new one, while Tamil Nadu has insisted on raising the dam's water level, citing its necessity for irrigation
- The issue has reached the Supreme Court of India multiple times, and the court has issued various directives regarding the water level and safety measures to address concerns from both states
4.What is the Dispute regarding Mullaperiyar dam?
The dispute surrounding the Mullaperiyar Dam primarily revolves around several key issues:
- Kerala has raised serious concerns about the dam's structural integrity due to its age and the potential risks associated with a dam failure. There have been apprehensions that the dam, which is over a century old, might not withstand a major earthquake or natural calamity, posing a threat to the downstream areas in Kerala
- Tamil Nadu, which owns and operates the dam, asserts its rights to receive a certain amount of water from the Periyar River through the dam for irrigation purposes in the Vaigai River basin. There have been disagreements between the two states regarding the permissible water level in the dam and the quantity of water to be released to Tamil Nadu
- The disagreement between Kerala and Tamil Nadu has escalated into a legal battle that has been ongoing for decades. Both states have filed numerous cases and counter-cases in courts, including the Supreme Court of India, seeking decisions on issues related to the dam's safety, water sharing, and the need for a new dam
- The Mullaperiyar Dam issue has significant political implications for both states. It has been a point of contention in the political landscape of Kerala and Tamil Nadu, with each state advocating for its respective stance on the dam's safety and water-sharing agreements
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Periyar river
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5. What is the Dam Safety Act?
- The Dam Safety Act, introduced to the Rajya Sabha in December 2021, aimed to address issues of inadequate monitoring and maintenance that have led to dam-related disasters.
- This legislation outlined specific duties and required the establishment of both national and state-level bodies to enforce its provisions.
- It proposed the creation of a National Committee on Dam Safety responsible for overseeing policies and regulations, a National Dam Safety Authority tasked with implementation and the resolution of state-level disputes, designating the Chairman of the Central Water Commission (CWC) to lead national dam safety protocols, and the formation of State Committees on Dam Safety (SCDS) and State Dam Safety Organizations (SDSO)
- The Dam Safety Act (DSA) 2021 was enacted by the Union Government of India to prevent dam failure-related disasters. The act focuses on the proper surveillance, inspection, operation, and maintenance of specified dams. It also establishes an institutional mechanism to ensure their safe functioning
- The act was notified by the Government of India on December 14, 2021, and came into effect on December 30, 2021.
- The act provides for institutional mechanisms for surveillance, inspection, operation, and maintenance of the specified dams. The Central Water Commission (CWC) provides technical expertise and guidance on all matters related to dams.
- Failure to comply with any provision of the act is punishable with imprisonment and/or fines. If such obstruction or refusal to comply with directions results in loss of lives or imminent danger thereof, the entity shall be punishable with imprisonment for a term which may extend to two years
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Previous Year Questions
1. Which one of the following pairs is not correctly matched? (UPSC CSE 2010) Dam/Lake River (a) Govind Sagar : Satluj Answer: (b) 2.Consider the following statements: (UPSC CSE 2009)
Which of the statements given above is/are correct? (a) 1 only Answer: (d) |
Source: The Hindu
UNIFORM CIVIL CODE (UCC)
1. Context
The Uttarakhand Cabinet approved the rules for the Uniform Civil Code (UCC) at its meeting chaired by Chief Minister Pushkar Singh Dhami
2. 22nd law commission on UCC
- Underlining that the Uniform Civil Code is “neither necessary nor desirable at this stage”, the 21st Law Commission of India, in 2018, argued for reform of family laws of every religion through amendments and codification of certain aspects so as to make them gender-just
- In its ‘Consultation Paper on Family Law Reforms’, the Law Commission took a stand in favour of “equality ‘within communities’ between men and women” (personal law reform), “rather than ‘equality between’ communities” (UCC)
- According to the 22nd Law Commission Cultural diversity cannot be compromised to the extent that our urge for uniformity itself becomes a reason for threat to the territorial integrity of the nation
- women must be guaranteed their freedom of faith without any compromise on their right to equality
3. What is the Uniform Civil Code
- A UCC would provide for one law for the entire country, applicable to all religious communities, in their personal matters such as marriage, divorce, inheritance, adoption etc
- Currently, Indian personal law is fairly complex, with each religion adhering to its own specific laws
- Separate laws govern Hindus including Sikhs, Jains and Buddhist, Muslims, Christians, and followers of other religions
- Moreover, there is diversity even within communities. All Hindus of the country are not governed by one law, nor are all Muslims or all Christians
- For instance, in the Northeast, there are more than 200 tribes with their own varied customary laws
- The Constitution itself protects local customs in Nagaland. Similar protections are enjoyed by Meghalaya and Mizoram. Even reformed Hindu law, in spite of codification, protects customary practices
- The exception to this rule is the state of Goa, where all religions have a common law regarding marriages, divorces, and adoption
4. Constitution on UCC
- Article 44 of the Constitution lays down that the state shall endeavour to secure a UCC for citizens throughout the territory of India
- Article 44 is among the Directive Principles of State Policy. Directive Principles are not enforceable by court, but are supposed to inform and guide governance
- However, in some senses, Article 44 is unique in this manner. While Article 44 uses the words “state shall endeavour”, other Articles in the ‘Directive Principles’ chapter use words such as “in particular strive”; “shall in particular direct its policy”; “shall be obligation of the state
- The phrase “by suitable legislation” is absent in Article 44. All this implies that the duty of the state is greater in other directive principles than in Article 44
5. Uniform Code for Personal Law
Article 25 lays down an individual’s fundamental right to religion; Article 26(b) upholds the right of each religious denomination or any section thereof to “manage its own affairs in matters of religion”
Article 29 defines the right to conserve distinctive culture
An individual’s freedom of religion under Article 25 is subject to “public order, health, morality” and other provisions relating to fundamental rights, but a group’s freedom under Article 26 has not been subjected to other fundamental rights
6. Way forward
Over the next 30 days, the Law Commission will receive views of the public and stakeholders
The notice said the stakeholders concerned are at liberty to make submissions in the form of consultation/discussion/working papers on any of the issues pertaining to the UCC to the Member Secretary, Law Commission of India
After reviewing the submissions, the Law Commission will again make observations/recommendations regarding a UCC, which may or may not differ from the previous Commission’s observations
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For Prelims: Unifrom Civil Code (UCC), DPSP, Fundamental rights, Law Commission
For Mains: 1. What is the Uniform Civil Code? What are the challenges in implementing a Uniform Civil Code in a diverse country like India?
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Previous Year Questions
Q1. Consider the following provisions under the Directive Principles of State Policy as enshrined in the Constitution of India: (2012)
Which of the above are the Gandhian Principles that are reflected in the Directive Principles of State Policy? (a) 1, 2 and 4 only Answer (b) 2. A legislation that confers on the executive or administrative authority an unguided and uncontrolled discretionary power in the matter of the application of law violates which one of the following Articles of the Constitution of India? Answer (a) Mains 1.Discuss the possible factors that inhibit India from enacting for its citizens a uniform civil code as provided for in the Directive Principles of State Policy. (2015) |
Source: indianexpress
UNIVERSITY GRANTS COMMISSION (UGC)
1. Context:
After the Supreme Court’s decision to scrap electoral bonds last year, donations to political parties significantly increased through electoral trusts, as indicated by the electoral trust contribution reports released by the Election Commission of India (ECI) for the previous financial year.
2. University Grants Commission (UGC)
The University Grants Commission (UGC) is a statutory body in India that was established to oversee and maintain the standards of higher education. It was formed in 1956 under the University Grants Commission Act of 1956 and operates under the Ministry of Education, Government of India
The primary functions of the UGC include:
- Allocating funds to universities and colleges.
- Formulating and implementing academic standards for higher education institutions.
- Monitoring and maintaining the quality of teaching, research, and examinations in universities.
- Providing guidance and coordination among universities and colleges in the country.
- Supporting and promoting innovations and improvements in the education system
3. Appointment, Tenure, Eligibility
University Grants Commission (UGC) Appointment, Tenure, and Eligibility
| Position | Appointment Method | Tenure | Minimum Eligibility |
|---|---|---|---|
| Chairperson | Appointed by the President of India | 5 years, extendable for another 5 years (subject to review) | Distinguished academician with: * Minimum 10 years of experience as Professor in a University system or 10 years in equivalent position at a reputed research/academic administrative organization. * Eminence in higher education. * No connection with the concerned university or its colleges. |
| Member | Appointed by the President of India | 5 years, extendable for another 5 years (subject to review) | Renowned scholar/expert with: * Proven track record in teaching/research/administration in relevant field. * Minimum 10 years of experience as Professor/equivalent in a University/College/Institute of national importance. * Demonstrated commitment to higher education development. |
| Vice-Chancellor (University) | Appointed by Executive Council of the University | 5 years, extendable for another 5 years | Distinguished academician with: * Minimum 10 years of experience as Professor in a University system or 10 years in equivalent position at a reputed research/academic administrative organization. * Eminence in the sphere of higher education. * No connection with the concerned university or its colleges. |
| Dean (Faculty) or Director (School/Institute) | Appointed by Executive Council of the University/Governing Council of the Institute | 5 years, extendable for another 5 years | Eminent scholar with: * Minimum 10 years of experience as Professor in relevant field. * Exceptional research record and contributions to the discipline. * Strong administrative and leadership skills. |
| Professor | Through Selection Committee constituted by the University | Up to 5 years (initially), extendable based on performance review | Ph.D. in relevant subject with: * Proven track record of research publications in peer-reviewed journals. * Significant contribution to the discipline. * Experience in research supervision. |
| Associate Professor | Through Selection Committee constituted by the University | Up to 5 years (initially), extendable based on performance review | Ph.D. in relevant subject with: * Good academic record and publications. * Minimum 8 years of teaching/research experience in relevant field. |
| Assistant Professor | Through Selection Committee constituted by the University | Up to 5 years (initially), extendable based on performance review | Master's degree with at least 55% marks and Ph.D. in relevant/allied/cognate discipline OR Master's degree with NET/SLET/SET qualification. |
4. University Grants Commission - Statutory Provisions
The University Grants Commission (UGC) operates under statutory provisions outlined primarily in the University Grants Commission Act, 1956. Here are some of the key statutory provisions governing the UGC:
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University Grants Commission Act, 1956: This is the primary legislation that established the UGC. It defines the roles, functions, powers, and responsibilities of the Commission. It also outlines the composition of the UGC, appointment procedures, and its authority to allocate funds to universities and colleges.
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UGC (Institutions Deemed to be Universities) Regulations, 2016: These regulations provide guidelines for institutions seeking the status of "Deemed to be University." They specify the criteria, application process, and conditions for granting this status.
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UGC (Minimum Standards of Instruction for the Grant of the First Degree through Non-formal/Distance Education) Regulations, 2017: These regulations specify the minimum standards for offering programs through distance education mode, ensuring quality education delivery.
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UGC (Open and Distance Learning) Regulations, 2017: These regulations govern the standards and norms for open and distance learning programs offered by universities and institutions in India.
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UGC (Establishment and Maintenance of Standards in Private Universities) Regulations, 2003: These regulations outline the norms and standards for the establishment and functioning of private universities, ensuring quality education.
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UGC (Prevention, Prohibition, and Redressal of Sexual Harassment of Women Employees and Students in Higher Educational Institutions) Regulations, 2015: These regulations mandate higher educational institutions to establish mechanisms for preventing and addressing sexual harassment.
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UGC (Promotion of Equity in Higher Educational Institutions) Regulations, 2012: These regulations aim to promote equity in higher education, focusing on providing opportunities to disadvantaged sections of society.
5. University Grants Commission - Powers and Functions
The University Grants Commission (UGC) in India is entrusted with several powers and functions aimed at promoting and regulating higher education in the country.
Some of its key powers and functions include:
- UGC allocates funds to universities and colleges for their development, improvement, and maintenance
- Provides financial assistance to encourage and support research activities in various academic disciplines
- UGC establishes and maintains academic standards in higher education to ensure quality across universities and colleges
- Develops frameworks and guidelines for curriculum development in different academic programs
- UGC recognizes universities in India and provides approval for the establishment of new universities
- Monitors the quality of education, teaching, research, and examinations in universities to ensure adherence to set standards
- UGC promotes and supports research activities by providing grants, fellowships, and scholarships to students and faculty members
- Facilitates coordination and cooperation among universities and other higher educational institutions
- Advises the Central and State governments on matters related to higher education policies, regulations, and development
- Provides guidance, assistance, and recommendations to universities for enhancing their academic and research standards
- Conducts assessments and accredits higher education institutions to ensure and improve quality
- Undertakes periodic reviews and assessments to maintain and enhance the quality of education
- Implements programs and initiatives to promote access to higher education for underprivileged and marginalized sections of society
- Develops and revises regulations and guidelines governing various aspects of higher education, such as distance education, deemed universities, private universities, etc
- Collects, analyzes, and maintains data related to higher education for policy formulation and decision-making purposes
6.Institutions which grant Degree
In India, degrees are granted by various types of institutions that are recognized and authorized to award them.
These institutions include:
- Central Universities: Established by an Act of Parliament and are under the purview of the central government.
- State Universities: Established by state governments within their respective states.
- Deemed Universities: Granted the status of "Deemed to be University" by the University Grants Commission (UGC)
- Many colleges are affiliated with universities and offer undergraduate and postgraduate programs. The degrees awarded by these colleges are conferred by the affiliated university
- Some colleges have been granted autonomy by the University Grants Commission or the respective university. These colleges have the authority to design their curriculum and conduct examinations, and they award degrees on their own
- Certain institutes, like the Indian Institutes of Technology (IITs), National Institutes of Technology (NITs), Indian Institutes of Management (IIMs), and others designated as Institutes of National Importance, have the authority to award degrees
- Institutions like Indira Gandhi National Open University (IGNOU) and others recognized by the Distance Education Bureau (DEB) offer distance education programs and award degrees
These institutions adhere to the guidelines and regulations set by regulatory bodies like the University Grants Commission (UGC), All India Council for Technical Education (AICTE), Bar Council of India (BCI), Medical Council of India (MCI), and others to maintain the quality and standards of education while awarding degrees in their respective fields of expertise
7. Challenges regarding the University Grants Commission
The University Grants Commission (UGC) in India, despite its significant role in regulating and fostering higher education, faces several challenges:
Insufficient Funding: The allocated funds might not always meet the growing needs of universities and colleges, impacting infrastructure development, research, and educational quality
Ensuring Quality: Maintaining and assuring consistent quality across a diverse range of institutions, especially in rapidly evolving fields, can be challenging.
Accreditation Processes: Some institutions struggle to meet accreditation criteria, impacting their ability to offer recognized degrees
Rapid Changes in Education: Keeping regulations updated and aligned with the evolving educational landscape, including emerging technologies and global standards, poses a challenge
Global Rankings: Enhancing the global competitiveness of Indian higher education institutions in terms of rankings and international collaborations is an ongoing challenge
Industry-Relevant Skills: Aligning educational programs with industry needs to enhance employability requires continuous curriculum updates and industry collaboration
8. University Grants Commission - Historical Background
The University Grants Commission (UGC) in India has a rich historical background that traces back to the pre-independence era and has evolved significantly over time:
Pre-Independence Era:
- 1920s-1940s: Before India gained independence, the idea of a body to oversee and promote higher education emerged. The need for such an institution was discussed during the 1920s and 1930s.
Post-Independence Formation:
- 1947: After India gained independence in 1947, discussions intensified regarding the establishment of a commission to oversee higher education and allocate funds to universities and colleges.
- 1950: The UGC was initially set up as an ad-hoc committee to oversee the allocation of grants to universities and colleges.
- 1956: The University Grants Commission Act was passed on December 28, 1956, establishing the UGC as a statutory body. This formalized its role in overseeing and promoting higher education.
Evolution and Functions:
- Early Years: Initially, the UGC focused on disbursing grants and fostering the development of universities and colleges.
- Expanding Role: Over time, the UGC's role expanded to encompass setting academic standards, promoting research, and advising the government on higher education policies.
- Regulatory Functions: It started playing a more regulatory role by formulating guidelines and regulations for various aspects of higher education.
Milestones and Amendments:
- 1960s-1970s: The UGC underwent amendments to accommodate changes in the higher education landscape and to enhance its effectiveness.
- Subsequent Decades: The UGC continued to evolve, adapting to the changing needs of higher education, introducing reforms, and addressing emerging challenges.
9. Way forward
Throughout its history, the UGC has adapted to the changing educational scenario in India, expanding its functions and responsibilities to meet the evolving needs of higher education. It remains a key institution in the Indian education system, contributing significantly to the development and enhancement of higher education across the country
Source: The Hindu
SUPREME COURT(SC) INVALIDATE ELECTORAL BONDS
1. Context
The Supreme Court has declared the Electoral Bonds Scheme as unconstitutional. Donor anonymity was the main feature of the scheme, which has been criticised for long by transparency activists. These bonds constituted an important means of funding political parties since 2018. The court found that the scheme violated the citizens’ right to information about the sources of finances raised by political parties. It directed the full disclosure of all details of contributors, recipient parties and denominations.
2. What was the Electoral Bond Scheme?
An electoral bond is in the nature of a promissory note which shall be a bearer banking instrument that does not carry the name of the buyer or payee. Any citizen or company could buy these bonds in denominations of ₹1,000, ₹10,000, ₹1 lakh, ₹10 lakh, and ₹1 crore and donate it to a political party. It can be encashed only through a bank account with an authorised bank. The State Bank of India was the bank authorised to issue and encash these bonds
3. What changes were made to the scheme?
Contemporary society relies significantly on satellites, presenting them as both valuable assets and potential weaknesses. However, the effectiveness of a nuclear weapon in space is constrained by the inability to selectively target specific satellites, limiting its practical utility. Consequently, certain security experts propose that if Russia possesses nuclear capabilities in space, such weaponry would likely be reserved for use as a last resort. Alternatively, some suggest that the 'nuclear' aspect might be confined to the power source itself. The prevailing view is that Russia is more likely developing a system fueled by a nuclear source with electronic warfare capabilities upon reaching orbit, rather than a weapon equipped with a nuclear explosive warhead
4. Government's Version
- The government justified the scheme by emphasizing its ability to facilitate the transfer of funds to political parties through lawful banking channels, allowing individuals to support their chosen parties while discouraging unregulated cash contributions.
- The confidentiality granted to donors was presented as advantageous, fostering contributions of clean money to political parties.
- The utilization of established banking channels was asserted to diminish the influence of black money in election funding, and donor anonymity was highlighted to alleviate concerns about potential retaliation or pressure from parties to which donors had not contributed.
- In a notable argument, the government contended that citizens did not possess a general right to be informed about the financial backing of political parties.
- It asserted that the right to information was not of a broad nature but rather an evolution by courts specifically aimed at enabling voters to make informed choices in favor of the ethically sound candidate
5.Supreme Court Ruling
- In prior rulings, the highest court has affirmed that voters possess the right to information crucial for the effective exercise of their voting freedom.
- Consequently, the court maintained that details regarding funding to a political party are vital for a voter to express their right to vote effectively.
- The Electoral Bond Scheme, insofar as it compromises this right by anonymizing contributions through bonds, infringes upon Article 19(1)(a), which safeguards the freedom of expression.
- Regarding the objective of curbing black money, the court applied a proportionality test to assess whether the limitation on voters' right to information through donor anonymity was achieved through the least restrictive means.
- It suggested that alternatives, such as electronic transfer for small contributions and donations to an Electoral Trust for larger amounts, were available.
- Since the government failed to demonstrate that the scheme represents the least restrictive means to balance contributors' "informational privacy" and the right to information on political contributions, the amendments to the IT Act and RPA were deemed unconstitutional.
- Concerning changes to the Companies Act, the court determined that the removal of the disclosure requirement on contribution details violated the voter's right to information. Additionally, the scheme permitted both profit-making and loss-making companies to make political contributions, whereas previously, companies could only donate a percentage of their net profit.
- Given the higher risk of quid pro quo in the case of loss-making companies, the amendment was deemed arbitrarily manifest
6.Way forward
The electoral bonds scheme was introduced to enhance transparency, it has generated significant debates and concerns. A comprehensive way forward should focus on striking a balance between anonymity for donors and the citizens' right to know the financial sources of political parties. Transparent and accountable political funding is crucial for upholding the democratic values and integrity of the political process in India.
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For Prelims: Electoral Bonds, SBI, Election Commission of India, Right to Know, Finance Act 2017, Prime Minister's Relief Fund
For Mains:
1. Examine the challenges and controversies surrounding the Electoral Bonds Scheme, particularly regarding donor anonymity and transparency in political funding. How have these issues raised concerns about the integrity of the political process in India? (250 Words)
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Previous Year Questions
Prelims
1. Consider the following statements: (UPSC 2017) 1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties.
Which of the statements given above is/are correct? A. 1 and 2 only B. 2 only C. 2 and 3 only D. 3 only Answer: D 2. With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following? (UPSC CSE 2019) Answer: B 3. Consider the following statements : (UPSC 2021) 1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the- existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. 1 and 3 D. 2 and 3
4. Consider the following statements about Electoral Bond Scheme 2018: (RPSC RAS Prelims 2018)
(A) The aim of this scheme is to bring about transparency in the funding process of political parties.
(B) Only the political parties recognized by the Election Commission which secured not less than one per cent of the votes polled in the last general election to the House of People or the Legislative Assembly of the State shall be eligible to receive the Electoral Bonds.
(C) Electoral Bonds shall be valid for fifteen calendar days from the date of issue.
(D) The Electoral Bond deposited by an eligible political party in its account shall be credited on the same day.
Which of the above statements are correct?
1. Only (A) and (B)
2. (A), (B), (C) and (D)
3. Only (B), (C) and (D)
4. Only (A), (C) and (D)
Answer: 2
5. With reference to the PM CARES Fund, consider the following statements: (AFCAT 27 2022)
I. The amount collected by it directly goes to the Consolidated Fund of India.
II. It can avail donations from the foreign contribution and donations to fund can also avail 100% tax exemption.
Which of the above statements is/are correct?
A. I only B. II only C. Both I and II D. Neither I nor II
Answer: B
6. The Prime Minister's National Relief Fund is operated by which one of the following bodies? (CDS 2019)
A. The Prime Minister's Office (PMO)
B. The National Disaster Management Authority
C. The Ministry of Finance
D. The National Development Council (NDC)
Answer: A
Mains 1. In the light of recent controversy regarding the use of Electronic Voting Machines (EVM), what are the challenges before the Election Commission of India to ensure the trustworthiness of elections in India? (UPSC 2018) 2. Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. ( UPSC 2022) |
Source: The Hindu
MINIMUM SUPPORT PRICE
1. Context
MSP framework needs a revisit. The competitive populism to give free food, power, or highly subsidised fertilisers, or pocket money in the name of Ladli Behna, is a race to the bottom
2. What is Minimum Support Price (MSP)?
- MSP is the minimum price a farmer must be paid for their food grains as guaranteed by the government. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs.
- The CACP submits its recommendations to the government in the form of Price Policy Reports every year.
- After considering the report and views of the state governments and also keeping in view the overall demand and supply situation in the country, the central government takes the final decision.
- Food Corporation of India (FCI) is the nodal agency for procurement along with State agencies, at the beginning of the sowing season.
The minimum support price (MSP) is set for 23 crops every year. They include:
- 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, and barley)
- 5 pulses (chana, tur/arhar, moong, urad, and Masur)
- 7 oilseeds (rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower, and nigerseed) and
- 4 commercial crops (sugarcane, cotton, copra, and raw jute).
3. How MSP is Cauclated?
- MSP, presently, is based on a formula of 1.5 times the production costs.
- The CACP projects three kinds of production costs for every crop, both at state and all-India average levels.
- A2 covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilizers, pesticides, hired labor, leased-in land, fuel, irrigation, etc.
- A2+FL includes A2 plus an imputed value of unpaid family labor.
- C2: Estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
- Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land, as recommended by the National Commission for Farmers.
4. The issue with the calculation of MSP
- To calculate MSP, the government uses A2+FL cost. The criticism of A2+FL is that it doesn’t cover all costs and that a more representative measure, C2, needs to be used.
- For example, in the 2017-18 rabi season, CACP data shows that C2 for wheat was 54% higher than A2+FL.
- The Swaminathan Commission also stated that the MSP should be based on the comprehensive cost of production, which is the C2 method.
5. Key Points about the Farmer's Demand
- After the recent decision to repeal three contentious farm laws, protesting farmer unions are now pressing for their demand of the legalization of the Minimum Support Price (MSP).
- They want a legal guarantee for the MSP, which at present is just an indicative or a desired price.
- Legalising MSP would put the government under a legal obligation to buy every grain of the crops for which MSPs have been announced.
- At present, the PM has announced the formation of a committee to make MSP more transparent, as well as to change crop patterns and to promote zero-budget agriculture which would reduce the cost of production.
- The entire issue of enforcing MSP legally is a tricky, complicated, and multidimensional one, involving lots of factors.
- Core demand: MSP based on a C2+50% formula should be made a legal entitlement for all agricultural produce. This would mean a 34% increase in the latest MSP for paddy and a 13% increase for wheat. MSP should also be extended to fruit and vegetable farmers who have been excluded from benefits so far.
6. The rationale behind the demand for legislation of MSP
- Farmers receive less than MSP: In most crops grown across much of India, the prices received by farmers, especially during harvest time, are well below the officially-declared MSPs. And since MSPs have no statutory backing, they cannot demand these as a matter of right.
- Limited procurement by the Govt: Also, the actual procurement at MSP by the Govt. is confined to only about a third of wheat and rice crops (of which half is bought in Punjab and Haryana alone), and 10%-20% of select pulses and oilseeds. According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at the MSP rates.
7. Why has the committee been set up?
- It has been constituted by the Ministry of Agriculture and Farmers Welfare as a follow-up to an announcement by the Prime Minister when he declared the government’s intention to withdraw the three farm laws.
- The protesting farm unions had demanded a legal guarantee on MSP based on the Swaminathan Commission’s ‘C2+50% formula’ (C2 is a type of cost incurred by farmers;). This was in addition to their demand for repeal of the three farm laws.
8. Committee on MSP, Natural Farming and Crop Diversification
On Minimum Support Price (MSP)
- To suggest measures to make MSP available to farmers by making the systems more effective and transparent,
- Give more autonomy to Commission for Agricultural Costs and Prices (CACP).
On Natural Farming: To make suggestions for programs and schemes for value chain development, protocol validation, and research for future needs and support for area expansion under the Indian Natural Farming System.
On Crop diversification:
To provide suggestions related to crop diversification including
- Mapping of existing cropping patterns of agro-ecological zones of producer and consumer states,
- Strategy for diversification policy to change the cropping pattern according to the changing needs of the country and
- A system to ensure remunerative prices for the sale of new crops.
9. Why have the protesting farm unions opposed this committee?
- Firstly, this committee includes members who supported the now-repeated farm laws.
- Secondly, the terms and references of the committee do not mention the legal guarantee to MSP. Instead, it mentions making MSP more effective and transparent.
10. Challenges associated with MSP
- Protest by Farmers: Farm unions have been protesting for more than six months on Delhi's outskirts, demanding legislation to guarantee MSP for all farmers for all crops and a repeal of three contentious farm reforms laws.
- MSP and Inflation: When announcing the MSP, inflation should be taken into account. But often the price is not increased up to the mark. For example, this time MSP for Maize has not even considered inflation then how it will benefit farmers! Also, frequent increases in the MSPs can lead to inflation too.
- High Input Costs: The input costs have been rising faster than sale prices, squeezing the meager income of the small farmers and driving them into debt.
- Lack of Mechanism: There is no mechanism that guarantees that every farmer can get at least the MSP as the floor price in the market. So proper mechanisms need to be fixed for all times to come.
- Restriction in Europe: Even after producing surplus grains, every year a huge portion of these grains gets rotten. This is due to the restrictions under WTO norms, that grain stocks with the FCI (being heavily subsidized due to MSP) cannot be exported.
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For Prelims: Minimum Support Price (MSP), World Trade Organisation (WTO), Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India (FCI).
For Mains: 1. The Minimum Support Price (MSP) scheme protects farmers from price fluctuations and market imperfections. In light of the given statement, critically analyze the efficacy of the MSP. (250 Words)
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| Previous year Question
1. Consider the following statements: (UPSC CSE 2020)
1. In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
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: D
2.Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020)
(1) Minimum Support Price (2) Government’s trading (3) Government’s stockpiling (4) Consumer subsidies Select the correct answer using the code given below: (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4 Answer (d)
3.In India, which of the following can be considered as public investment in agriculture? (UPSC GS1, 2020)
(1) Fixing Minimum Support Price for agricultural produce of all crops (2) Computerization of Primary Agricultural Credit Societies (3) Social Capital development (4) Free electricity supply to farmers (5) Waiver of agricultural loans by the banking system (6) Setting up of cold storage facilities by the governments. In India, which of the following can be considered as public investment in agriculture? Select the correct answer using the code given below: (a) 1, 2 and 5 only (b) 1, 3, 4 and 5 only (c) 2, 3 and 6 only (d) 1, 2, 3, 4, 5 and 6 Answer (c)
4.The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC CSE, 2015)
(a) Cabinet Committee on Economic Affairs (b) Commission for Agricultural Costs and Prices (c) Directorate of Marketing and Inspection, Ministry of Agriculture (d) Agricultural Produce Market Committee Answer (a)
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Source: The Indian Express
WORLD ECONOMIC FORUM (WEF)
1. Context
The World Economic Forum (WEF) is holding its Annual Meeting from January 20 to 24 in Davos, Switzerland. Attendees will include European Commission President Ursula von der Leyen, China’s Vice Premier Ding Xuexiang, and other leaders in business and politics
2.World Economic Forum
The World Economic Forum (WEF) is an international organization that was founded in 1971. It is a Swiss nonprofit foundation based in Geneva, Switzerland. The WEF is best known for its annual meeting in Davos, a mountain resort in Switzerland, which brings together political leaders, business executives, academics, and other influential figures from around the world to discuss and collaborate on global issues
The World Economic Forum (WEF) was founded by Professor Klaus Schwab. He established the organization in 1971, and the first meeting of the WEF took place in Davos, Switzerland, in that same year. Klaus Schwab, a German economist and engineer, envisioned the WEF as a platform where business leaders, politicians, academics, and other stakeholders could come together to discuss and collaborate on global economic issues.
Over the years, the World Economic Forum has grown into a prominent international organization, hosting annual meetings in Davos that attract a diverse group of participants from various sectors. The WEF has played a significant role in fostering dialogue and cooperation among leaders to address global challenges and shape economic policies
3. What is the Purpose of the World Economic Forum (WEF)?
The World Economic Forum (WEF) has several key purposes, and its mission is to improve the state of the world. The organization aims to achieve this mission through various activities and initiatives:
- The WEF provides a platform for leaders from the public and private sectors, academia, and civil society to engage in open and constructive dialogue. The goal is to foster a shared understanding of global challenges and to encourage collaboration in finding innovative solutions
- The WEF seeks to promote cooperation and collaboration among different stakeholders, including governments, businesses, international organizations, and non-governmental organizations, to address global challenges. These challenges include economic issues, social inequality, environmental sustainability, and technological disruptions
- Through its meetings, reports, and initiatives, the WEF aims to shape global agendas by identifying key issues and trends that impact the world economy and society. The organization strives to provide insights and recommendations to inform decision-makers and influence policy development
- The WEF is committed to advancing inclusive and sustainable economic growth. It addresses issues related to social inclusion, gender equality, and environmental stewardship, advocating for policies that benefit a broad spectrum of society
- The WEF emphasizes the importance of collaboration between the public and private sectors. It believes that effective solutions to global challenges often require coordinated efforts and partnerships between governments and businesses
- The WEF serves as a hub for thought leadership, bringing together experts and leaders to share ideas and insights on a wide range of topics. It contributes to shaping intellectual discourse on economic, social, and technological issues
- In addition to its annual meeting in Davos, Switzerland, the WEF organizes regional meetings and initiatives to address specific challenges and opportunities in different parts of the world. This regional engagement helps tailor solutions to local contexts
- The WEF produces reports, research papers, and publications that provide in-depth analysis of global trends and challenges. These publications contribute to the understanding of complex issues and inform discussions among policymakers and business leaders
4.World Economic Forum and India
The World Economic Forum (WEF) engages with India through various initiatives, events, and partnerships to address economic, social, and environmental challenges.
Here are some aspects of the relationship between the World Economic Forum and India:
- The WEF organizes the annual India Economic Summit, which brings together leaders from government, business, academia, and civil society to discuss and collaborate on key issues facing India. The summit focuses on topics such as economic growth, innovation, sustainability, and social development
- The WEF holds regional meetings around the world, and India has been a host for some of these events. These regional meetings provide a platform for addressing specific challenges and opportunities in the Indian context
- The WEF emphasizes public-private cooperation, and it works with Indian leaders and businesses to foster collaboration between the government and private sector. This collaboration aims to address challenges and promote inclusive economic growth
- The WEF publishes the Global Competitiveness Report, which assesses the competitiveness of countries based on various factors. India's performance in these reports is closely watched by policymakers and businesses to understand the country's economic strengths and areas that need improvement
- The WEF engages in various initiatives and partnerships in India. For example, it has been involved in projects related to sustainable development, digital transformation, and healthcare. These initiatives often involve collaboration between different stakeholders to find innovative solutions to complex issues
- The WEF explores the impact of emerging technologies on the global economy, and India, being a major player in the technology and innovation space, is often a focus of discussions. The Fourth Industrial Revolution and the implications of technology on industries and society are common themes in WEF discussions
- Given India's diverse population and socio-economic challenges, the WEF emphasizes the importance of inclusive growth. Discussions often revolve around strategies and policies that can ensure that economic development benefits a broad spectrum of society
- The WEF produces reports and insights specific to India, providing analysis and recommendations on issues ranging from economic development to social inclusion. These reports contribute to informed decision-making by policymakers and business leaders in the country
5.Reports released by World Economic Forum
The World Economic Forum (WEF) regularly releases reports on various global issues, providing insights, analysis, and recommendations for policymakers, business leaders, and the public.
Some of the notable reports released by the WEF include:
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Global Competitiveness Report: The WEF's Global Competitiveness Report assesses the competitiveness of countries based on a range of factors, including infrastructure, macroeconomic stability, health, education, innovation, and more. It provides a comprehensive analysis of the global economic landscape.
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Global Risks Report: The Global Risks Report, published annually by the WEF, identifies and analyzes the most significant risks facing the world. It covers economic, environmental, geopolitical, societal, and technological risks, highlighting potential challenges that may impact global stability.
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Global Gender Gap Report: This report assesses gender disparities in various countries, focusing on economic participation, educational attainment, health outcomes, and political empowerment. It aims to raise awareness about gender inequality and provide a basis for addressing these disparities.
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The Future of Jobs Report: The WEF's Future of Jobs Report explores the impact of technological developments, automation, and other trends on the global job market. It examines the skills required for the future and the potential transformations in industries and occupations.
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Global Information Technology Report: This report assesses the state of information and communication technology (ICT) around the world. It examines the readiness of countries to adopt and benefit from ICT, emphasizing its role in driving economic growth and social development.
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Global Enabling Trade Report: Focusing on trade and its facilitation, this report assesses the efficiency and effectiveness of trade policies and infrastructure in various countries. It aims to identify areas for improvement to promote smoother international trade.
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The Human Capital Report: This report evaluates countries based on their investments in human capital, including education and healthcare. It highlights the importance of human capital development for economic growth and competitiveness.
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Inclusive Development Index: The Inclusive Development Index assesses the inclusiveness of economic growth by considering factors such as income inequality, social inclusion, and environmental sustainability. It provides insights into how well countries are translating economic growth into improved well-being for their citizens
6. Way forward
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For Prelims: Current events of national and international importance
For Mains: General Studies II:Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
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Previous Year Questions
1.The Global Competitiveness Report is published by the (UPSC CSE 2019)
A.International Monetary Fund
B.United Nations Conference on Trade and Development
C.World Economic Forum
D.World Bank
Answer (C)
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Source: indianexpress
