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DAILY CURRENT AFFAIRS, 27 FEBRUARY 2025

ETHANOL BLENDING

 

1. Context

Concerns about the Ethanol Blended Petrol (EBP) programme refuse to die down in Andhra Pradesh, with scientists and farmers saying water resources are depleting and emissions from factories are polluting the air, water, and soil.
 
2. Ethanol
  • Ethanol, also known as ethyl alcohol, is a type of alcohol commonly used as a biofuel and a key ingredient in alcoholic beverages.
  • It is a clear, colorless liquid with a characteristic odor and a slightly sweet taste.
  • Ethanol has a wide range of applications and is produced through the fermentation of sugars by yeast or other microorganisms.

3. Ethanol Blending

  • Ethanol blending refers to the practice of mixing ethanol with gasoline or other fuels to create a blended fuel.
  • Ethanol is a biofuel derived from renewable sources such as sugarcane, corn, or other plant materials.
  • It is commonly used as an additive to gasoline in various parts of the world to reduce greenhouse gas emissions and promote cleaner fuel options.
  • In the context of transportation, the most common form of ethanol blending is with gasoline, creating a blend known as ethanol-gasoline blend or gasohol.
  • The most common ethanol-gasoline blends are E10 and E15, indicating the percentage of ethanol in the mixture. For example, E10 contains 10% ethanol and 90% gasoline, while E15 contains 15% ethanol and 85% gasoline.

4. Benefits of Ethanol blending

  • Ethanol is considered a renewable fuel because it is derived from plant materials that absorb carbon dioxide during their growth. When blended with gasoline, ethanol can help reduce the carbon footprint of transportation fuels, as it emits fewer greenhouse gases compared to pure gasoline.
  • By blending ethanol with gasoline, countries can reduce their reliance on imported fossil fuels and promote energy security.
  • Ethanol has a higher octane rating than gasoline, which can improve engine performance and increase fuel efficiency.
  • Ethanol production often relies on agricultural feedstocks, providing economic benefits to farmers and rural communities.
  • Ethanol-gasoline blends can help reduce harmful pollutants such as carbon monoxide and volatile organic compounds, contributing to improved air quality.
  • Mixing 20 percent ethanol in petrol can potentially reduce the auto fuel import bill by a yearly $4 billion, or Rs 30,000 crore. 
  • Another major benefit of ethanol blending is the extra income it gives to farmers. Ethanol is derived from sugarcane and also foodgrains. Hence, farmers can earn extra income by selling their surplus produce to ethanol blend manufacturers.

5. What is E20 Fuel?

  • E20 fuel is a type of blended fuel that contains 20% ethanol and 80% gasoline.
  • It is an ethanol-gasoline blend, similar to other common blends like E10 (10% ethanol) and E15 (15% ethanol).
  • The percentage of ethanol in the blend is denoted by the "E" followed by the percentage of ethanol content.
  • E20 fuel is considered a higher ethanol blend compared to E10 and E15, which are more widely available in various countries.
  • The use of E20 is part of efforts to promote renewable fuels and reduce greenhouse gas emissions from the transportation sector.

6. Significance of E20 fuel

  • Reduced Greenhouse Gas Emissions: Ethanol is derived from renewable plant sources, and blending it with gasoline can help reduce the carbon footprint of transportation fuels, contributing to efforts to combat climate change.
  • Energy Security: By using more domestically produced ethanol, countries can reduce their dependence on imported fossil fuels and enhance energy security.
  • Improved Engine Performance: Ethanol's higher octane rating can enhance engine performance and increase fuel efficiency in certain vehicles.
  • Support for Agriculture: Ethanol production often relies on agricultural feedstocks, supporting farmers and rural economies.

7. Challenges in Ethanol Blending Programme

While ethanol blending in transportation fuels offers various benefits, there are several challenges that countries may face in implementing and sustaining a successful ethanol blending program. Some of these challenges include:

  • Infrastructure and Distribution: Establishing the necessary infrastructure for blending and distributing ethanol-gasoline blends can be a significant challenge. This includes ensuring that fuel stations have the proper storage facilities and compatible pumps to dispense blended fuels.
  • Compatibility with Vehicles: Not all vehicles are designed to run on high ethanol blends like E20 or E85. Older vehicles or vehicles from certain manufacturers may not be compatible with these blends, leading to potential engine damage or decreased performance.
  • Fuel Quality and Standards: Maintaining consistent fuel quality is essential to prevent engine damage and ensure consumer confidence. Governments and fuel suppliers must adhere to strict quality standards and monitor the blending process to avoid issues with fuel performance.
  • Feedstock Availability and Cost: The production of ethanol relies on agricultural feedstocks, such as corn, sugarcane, or other biomass. The availability and cost of these feedstocks can vary, affecting the overall cost of ethanol production and blending.
  • Land Use and Food Security Concerns: Utilizing agricultural land for ethanol production can raise concerns about competing with food production and potentially impacting food security in some regions.
  • Competing Uses for Ethanol: Ethanol has various applications beyond fuel blending, such as in the production of alcoholic beverages, pharmaceuticals, and industrial chemicals. Competing uses can influence the availability and cost of ethanol for blending.

8. National Biofuel Policy

  • India has a National Policy on Biofuels, which was first introduced in 2009 and later revised in 2018.  The policy aims to promote the use of biofuels to reduce the country's dependence on fossil fuels, enhance energy security, promote sustainable development, and mitigate greenhouse gas emissions.
  • The policy encourages the blending of biofuels with conventional fossil fuels to create biofuel blends. It focuses on the production and utilization of first-generation biofuels like ethanol and biodiesel, as well as advanced biofuels made from non-food feedstock.
  • The policy sets targets for blending biofuels with conventional fuels in the transportation sector. For instance, the policy aimed for a 20% ethanol blending in petrol and a 5% biodiesel blending in diesel by 2030.
  • The policy emphasizes the development and promotion of second-generation biofuels, which are produced from non-food feedstock, such as agricultural residues, waste, and non-edible oils. This helps avoid competition with food crops and ensures sustainability.
  • The policy supports research and development initiatives in the biofuels sector, aimed at improving production processes, enhancing feedstock availability, and developing cost-effective technologies for biofuel production.
  • The policy focuses on creating a robust supply chain for biofuels, from feedstock cultivation and collection to biofuel production, distribution, and marketing. This helps in ensuring a smooth and efficient supply of biofuels across the country.
For Prelims: Ethanol Blending, E20 fuel, Greenhouse Gas Emission, National Policy on Biofuels, Food Security, and Gasoline.
For Mains: 1. Discuss the benefits and challenges of ethanol blending in transportation fuels as a strategy to reduce greenhouse gas emissions and promote renewable energy sources. (250 Words).
 

Previous year Question

1. According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (UPSC 2020)
1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet
Select the correct answer using the code given below:
A. 1, 2, 5, and 6 only
B. 1, 3, 4, and 6 only
C. 2, 3, 4, and 5 only
D. 1, 2, 3, 4, 5 and 6
Answer: A
Source: The Indian Express
 

CARBON BORDER ADJUSTMENT MECHANISM (CBAM)

 

1. Context

The European Union has acknowledged India’s “specific concerns” about implementing the Carbon Border Adjustment Mechanism (CBAM) — the bloc’s tool to levy taxes on imports of certain carbon-intensive goods from early next year — and is ready to address them

2. What is a carbon trading platform?

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.

4. Carbon Trading and Carbon Credit

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

5. Difference between ‘Net Zero’ and ‘Carbon Neutral’

"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:

Net Zero Carbon Neutral
  • Definition: Net zero, short for "net-zero emissions," refers to the state where the total greenhouse gas emissions produced are fully balanced by the removal of an equivalent amount of greenhouse gases from the atmosphere. In other words, the net effect of emissions is zero.
Definition: Carbon neutrality, also known as "climate neutrality" or "carbon neutrality," means that an entity (e.g., a company, event, or country) has balanced its carbon emissions with an equivalent amount of carbon emissions reductions or removals, typically within a specific timeframe.
Emissions Reduction: Achieving net zero requires a significant reduction in greenhouse gas emissions. Organizations, governments, or individuals commit to reducing their emissions as much as possible through various measures, such as transitioning to renewable energy, improving energy efficiency, and adopting sustainable practices. Scope: Carbon neutrality specifically focuses on balancing carbon dioxide (CO2) emissions. While other greenhouse gases may be considered, the primary emphasis is on achieving neutrality for CO2 emissions.
Carbon Removal: To reach net zero, any remaining emissions that cannot be eliminated through reduction measures are offset by activities that remove an equivalent amount of carbon dioxide from the atmosphere. This can include activities like afforestation (planting trees), reforestation, carbon capture and storage (CCS), and investment in carbon removal technologies. Achievement: Achieving carbon neutrality can be accomplished through a combination of emissions reduction measures (e.g., using renewable energy, improving energy efficiency) and purchasing carbon offsets or credits to compensate for any remaining emissions.
Scope: Net zero encompasses all greenhouse gases, not just carbon dioxide (CO2). It accounts for emissions of methane (CH4), nitrous oxide (N2O), and other greenhouse gases as well. Timeliness: Carbon neutrality can be achieved on an annual basis, and it may not necessarily involve a long-term commitment to zero emissions.
Long-Term Goal: Net zero is often seen as a long-term goal, with organizations and countries committing to achieve it by a specific target year, such as 2050. Application: Carbon neutrality is a term commonly used by businesses, events, and individuals to describe their efforts to reduce and offset carbon emissions. It is a practical approach for organizations looking to take immediate action to reduce their carbon footprint.
 
 
For Prelims: Carbon credits, carbon neutral, Carbon Border Adjustment Mechanism (CBAM), Net Zero’, ‘Carbon Neutral’, and the European Union Emissions Trading System (EU ETS).
For Mains: 1. Explain the concept of the Carbon Border Adjustment Tax (CBAT) and its objectives in the context of climate change mitigation. Discuss the potential benefits and challenges associated with its implementation. (250 words)
2. What are the key principles and mechanisms underlying the proposed Carbon Border Adjustment Tax (CBAT) policies in various regions? Analyze how CBATs can influence international trade and environmental sustainability. (250 Words).
 

 

Previous Year Questions

1.Which of the following adopted a law on data protection and privacy for its citizens known as ‘General Data Protection Regulation’ in April, 2016 and started implementation of it from 25th May, 2018? (UPSC CSE 2019)

(a) Australia
(b) Canada
(c) The European Union
(d) The United States of America

Answer: (c)

2.‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and (UPSC CSE 2017)

(a) European Union
(b) Gulf Cooperation Council
(c) Organization for Economic Cooperation and Development
(d) Shanghai Cooperation Organization

Answer: (a)

 

NORTH ATLANTIC TREATY ORGANISATION (NATO)

 
 
1. Context
 
U.S. President Donald Trump says Ukraine “could forget about” joining NATO military alliance as he prepares to host Ukrainian President Volodymyr Zelenskyy at the White House
 
2. Why was NATO established?
 

NATO, established on April 4, 1949, is a Western security alliance comprising 12 original members: Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.

The alliance was formed by signing the Washington Treaty, deriving its authority from Article 51 of the United Nations Charter, which upholds the inherent right of independent states to individual or collective defense.

Central to NATO is the principle of "collective security," where an attack on any member nation is viewed as an attack on all, necessitating collective response. This principle emerged from the Cold War context of the late 1940s, amid the rivalry between the USSR and the US over ideological and economic dominance. Article 5 of the Washington Treaty, addressing collective security, was introduced to counter the perceived threat of Soviet expansionism beyond Eastern Europe. In response, the USSR formed the Warsaw Pact in 1955, uniting socialist countries as allies.

However, invoking Article 5 does not mandate uniform military action by all member states. The extent of intervention is determined by each country "as it deems necessary." To date, the only instance of Article 5 being activated was in response to the September 11, 2001 attacks on the US, leading to NATO's deployment in Afghanistan for nearly two decades

 

3. Who are NATO’s members today?

In addition to the initial 12 members, subsequent additions to NATO's membership include Greece and Turkey in 1952, West Germany in 1955 (later recognized as Germany), Spain in 1982, the Czech Republic, Hungary, and Poland in 1999, followed by Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia in 2004, Albania and Croatia in 2009, Montenegro in 2017, North Macedonia in 2020, Finland in 2023, and Sweden in 2024.

A surge of new members joined in 1999, a few years after the dissolution of the Soviet Union in 1991, prompting concerns about the alliance's potential obsolescence due to the absence of its original purpose

4.What challenges does NATO face today?

 

  • During the 2019 commemoration of NATO's 70th anniversary, notable tensions arose among member nations.
  • President Donald Trump of the United States emphasized the necessity for countries to increase their military expenditures.
  • This call stemmed from a 2014 agreement among NATO members to allocate a minimum of 2 percent of their Gross Domestic Product (GDP) to defense spending, a commitment made following Russia's annexation of Crimea.
  • However, only a handful of nations met this threshold, prompting criticism from President Trump who deemed it unfair, particularly to countries such as the US that were fulfilling their spending obligations. By 2023, among the 30 member countries at the time, only 11 exceeded the stipulated limit.
  • One significant catalyst for increased defense spending was the Russian invasion of Ukraine the preceding year. Even traditionally neutral countries in foreign policy, such as Finland and Sweden, found appeal in the concept of collective security in response to Russia's assertive actions.
  • Despite NATO's "open door" policy toward membership, the admission of new applicants requires unanimous approval from all member states. Turkey hesitated to support the applications of Sweden and Finland due to past criticisms from their politicians regarding Turkey's human rights record. Turkey also accused these nations of harboring "terrorists"
5. Way Forward
 
Although the Ukraine-Russia war seems to have given NATO a new focus area to converge at, funding the war has again become a source of disagreements among members, much to Ukraine’s displeasure. Just this year, Secretary-General Stoltenberg said a plan was being formulated so that 18 NATO would meet the 2 per cent limit by the end of 2024
 
Source: Indianexpress
 

COMPTROLLER AUDITOR GENERAL (CAG)

1. Context

The Delhi exchequer lost ₹2,002 crore in revenue due to the poor implementation of the Delhi Excise Policy, 2021-22 by the previous Aam Aadmi Party government in Delhi, said a Comptroller and Auditor-General (CAG) report tabled in the Delhi Assembly 

2. About CAG

  • Article 148 of the Indian Constitution provides for an Independent Office of Comptroller Auditor General (CAG)
  • Head of the Indian Audits and Account Department 
  • It is an apex authority for external and internal audits of the expenses of the National and State governments

3. Appointments, Term & Removal

  • The CAG is appointed by the President, they should take oath before the president or before someone from the President's office
  • CAG holds Office for six years or up to the age of 65 years whichever is early
  • CAG can resign by addressing their resignation to the President
  • CAG can be removed by the President from Office in the same manner as a Supreme court Judge or Resolution passed by the President in both houses of the Parliament with a special majority, either on the ground of misbehaviour or incapacity
  • CAG is not eligible to join any Central Government Post or any State government Post
  • Expenses, allowances, and salaries are drawn from the Consolidated Fund of India.

4. Duties of CAG

Articles 148,149,150 and 151 of the Constitution of India describe the function and power of the CAG office
  • CAG will conduct all expenses from Consolidated Fund in all the states and UT has a legislative assembly
  • CAG Audits all the expenses from the Contingency Fund of India and Public accounts of India as well as the Contingency Fund of State and Public Accounts of a State
  • CAG Audits all trading accounts, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central and State Governments
  • CAG Audits the receipts and expenditures of all bodies and Authorities which are financed by the Central and State Government revenues
  • CAG Submits audit reports relating to the Central Government to President and State Governments to Governor, they will furnish these reports in parliament as well as in-state assemblies
  • CAG submits three reports to the President 1-Report on Appropriation accounts, a report on financial accounts, a report on public undertakings

5. CAG Audit and Financial Irregularities

The Comptroller and Auditor General (CAG) of India conducted an audit of expenses in nine BMC departments between November 28, 2019, and October 31, 2022.
The audit was initiated by the state government, which highlighted alleged irregularities amounting to Rs 12, 000 crores in 76 projects, primarily undertaken during the pandemic.

Obstacles Faced by CAG The CAG's audit covered Rs 8, 500 crores of the total expenditure, as the BMC objected to auditing the remaining amount. The BMC issued a legal notice to halt the audit of any acts, works or decisions related to Covid management and expenditure amounting to Rs 3, 538.73 crores, citing provisions of the Epidemic Act, 1897 and the Disaster Management Act 2005.

Project Audits and Findings The CAG report, spanning 146 pages, highlighted weaknesses in internal control mechanisms within the BMC. It revealed instances where work orders were awarded without tenders, contractual documents were not executed and third-party auditors were not appointed to assess the quality of work.

Departments Under Scrutiny Various BMC departments were found to have financial irregularities. The Development Plan Department was flagged for overvaluation of expenditure during land acquisition and delays in acquiring land for public amenities.  The Bridges Department awarded work orders without registering private contractors with the BMC. The report also mentioned cost escalations, delayed clearances and irregularities in various other projects and departments.

Financial Transactions During the Pandemic While the ED is investigating financial transactions during the Pandemic period, the CAG report sheds light on the wide-ranging financial irregularities across multiple BMC departments.

6. The way forward

The ED raids and the CAG report have brought to light alleged financial irregularities in the BMC's operations. Investigations and further actions will be taken to determine the extent of the scam and hold those responsible accountable.

For Prelims: Enforcement Directorate, Brihanmumbai Municipal Corporation, Special Investigation Team, Comptroller Auditor General, Consolidated Fund of India, Contingency Fund of India, Report on Appropriation accounts, a report on financial accounts, a report on public undertakings, 
 
For Mains: 
1. Examine the constitutional provisions and powers of the CAG in conducting audits of government expenses at both the central and state levels. Discuss the significance of the CAG's role in upholding financial discipline and promoting good governance. (250 Words)
2. Explore the role of technology and digital platforms in improving financial oversight and preventing irregularities in government projects. Discuss the potential benefits and challenges associated with the implementation of digital auditing mechanisms. (250 Words)
 
 
 
Previous Year Questions
 
1. Which one of the following is not correct in respect of Directorate of Enforcement? (CDS 2021) 
A. It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
B. It enforces the Foreign Exchange Management Act, 1999.
C. It enforces the Prevention of Money Laundering Act, 2002.
D. It enforces the Prohibition of Benami Property Transaction Act, 1988.
 
Answer: D
 
2. The Comptroller and Auditor-General (CAG) of India can be removed from office only by the: (UPSC CAPF 2015) 
A. President on the advice of the Union Cabinet.
B. Chief justice of the Supreme Court.
C. President of India after an address in both Houses of Parliament.
D. President on the advice of Chief Justice of India.
 
Answer: C
 
3. With reference to the Union Government, consider the following statements: (UPSC 2015) 
1. The Department of Revenue responsible for the preparation of Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India
3. All the disbursements made from Public Account also need authorization from the Parliament of India.
Which of the statements given above is/are correct? 
A. 1 and 2 only           B. 2 and 3 only          C. 2 only          D. 1, 2 and 3
 
Answer: C
 
4. The Contingency Fund of India is placed at whose disposal? (SSC CGL 2017)
A. The Prime Minister
B. Judge of Supreme Court
C. The President
D. The Finance Minister
 
Answer: C
 
5. In India, other than ensuring that public funds are used efficiently and for their intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)? (UPSC 2012)
1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares a national emergency/financial emergency.
2. CAG reports on the execution of projects or programs by the ministers are discussed by the Public Accounts Committee.
3. Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances.
4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct? 
A. 1, 3 and 4 only      B. 2 only          C. 2 and 3 only            D. 1, 2, 3 and 4
 
Answer: C
 
 
Source: The Indian Express
 
 

EUROPEAN UNION (EU)

 
 
1. Context
 India’s strategy had assumed that the globalised economic order is irreversible. European Commission President Ursula von der Leyen’s visit to India provides an opportunity for Delhi and Brussels at a pivotal moment
 
2. What is the European Union (EU)?
  • The European Parliament (EP) represents the citizens of EU member states. Its main roles include negotiating EU laws with member state governments, which are represented by the European Council.

  • The EP also has the authority to approve the EU budget, vote on international agreements, and decide on the enlargement of the bloc. Additionally, it can approve or reject the appointment of the European Commission president — currently Germany’s Ursula von der Leyen — and the commissioners.

  • Unlike national parliaments, the EP does not have the right to propose laws; it can only negotiate those proposed by the executive European Commission.

  • The EP consists of 720 Members (MEPs) who are elected every five years. These MEPs then elect their president for a term of two and a half years.

  • In 21 member states, individuals aged 18 and above can vote.

  • Citizens living in another EU country can choose to vote for candidates either from their home country or from their country of residence.

  • In some member states, voters can only choose closed lists where they cannot change the order of preferred candidates, while in others, they can select individual candidates in a preferential system.

  • All candidates must be EU citizens. Depending on the country, voters may choose from individual candidates or political parties’ delegates. Once elected, politicians from each nation join the European groups in the Parliament based on their political orientations. Elected individuals cannot hold positions in national governments or other political bodies such as the EU Commission

 
What are the member countries of the EU?
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden
 
 
3. History of EU

1945-1957: Post-War Integration Efforts

  • 1945: After the devastation of World War II, European countries seek to ensure lasting peace and economic stability.
  • 1951: The European Coal and Steel Community (ECSC) is established by the Treaty of Paris, signed by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. This organization aims to integrate the coal and steel industries of member countries, making war between them "materially impossible."

1957: The Treaties of Rome

  • 1957: The Treaties of Rome are signed, establishing the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM). The EEC aims to create a common market and a customs union among its members

960s-1980s: Growth and Challenges

  • 1973: The first enlargement of the EEC occurs, with Denmark, Ireland, and the United Kingdom joining the Community.
  • 1981: Greece becomes a member, followed by Spain and Portugal in 1986.
  • 1986: The Single European Act is signed, aiming to create a single market by 1992, ensuring the free movement of goods, services, capital, and people.

1990s: Political and Economic Union

  • 1992: The Maastricht Treaty is signed, formally establishing the European Union. The treaty introduces new forms of cooperation between governments, such as a common foreign and security policy, and lays the foundation for economic and monetary union, including the creation of a single currency.
  • 1995: Austria, Finland, and Sweden join the EU.
  • 1999: The euro is introduced as the single currency for 11 EU countries, with physical currency (banknotes and coins) entering circulation in 2002.

2000s: Major Enlargement and Institutional Reforms

  • 2004: The EU undergoes its largest expansion, with ten new countries (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia) joining.
  • 2007: Bulgaria and Romania join the EU.
  • 2009: The Lisbon Treaty comes into force, reforming the EU's institutional structure and increasing its powers in areas such as justice, security, and foreign policy

2010s: Economic Crises and Brexit

  • 2010: The eurozone faces a significant debt crisis, prompting reforms and financial support mechanisms to stabilize the economies of member states.
  • 2013: Croatia becomes the EU's 28th member state.
  • 2016: The United Kingdom votes to leave the EU in a referendum, leading to Brexit.
  • 2020: The UK officially leaves the EU on January 31, 2020
4. What is the European Council?
 
The European Council is one of the principal institutions of the European Union (EU), playing a crucial role in shaping the EU's overall political direction and priorities.
 
Here are the key aspects of the European Council:
  • The European Council comprises the heads of state or government of the EU member states, along with the President of the European Council and the President of the European Commission. The High Representative of the Union for Foreign Affairs and Security Policy also participates
  • The European Council meets at least four times a year, usually in Brussels, Belgium. Additionally, extraordinary meetings can be convened to address urgent issues
  • The European Council sets the EU's general political agenda and provides strategic leadership on key issues facing the EU. While it does not legislate or adopt laws, its decisions and recommendations guide the work of other EU institutions
  • The European Council operates on the basis of consensus, with decisions typically reached through discussions and negotiations among its members. However, unanimity is not always required for certain decisions, particularly in areas where EU treaties allow for qualified majority voting
5. What are the areas of cooperation between India and EU?
 

India and the European Union (EU) engage in cooperation across various sectors, reflecting their shared interests and objectives.

Some of the key areas of cooperation between India and the EU include:

  • Trade and Investment: Both India and the EU are major trading partners. Efforts are underway to enhance bilateral trade relations through negotiations for a comprehensive free trade agreement known as the EU-India Broad-Based Trade and Investment Agreement (BTIA). Additionally, initiatives aim to promote investment flows between India and the EU.

  • Political Dialogue and Strategic Partnership: India and the EU engage in regular political dialogues to discuss regional and global issues of mutual concern, including security, counter-terrorism, climate change, and sustainable development. They have established a strategic partnership framework to deepen cooperation in these areas.

  • Research and Innovation: Collaboration in research and innovation is a growing area of cooperation between India and the EU. Joint research projects, technology partnerships, and academic exchanges are promoted to address common challenges and foster technological innovation.

  • Education and Culture: India and the EU cooperate in the fields of education, culture, and people-to-people exchanges. Programs such as Erasmus+ facilitate student and academic mobility between India and EU member states, while cultural events and initiatives promote mutual understanding and appreciation.

  • Energy and Climate Change: India and the EU collaborate on energy security, renewable energy, and climate change mitigation efforts. Dialogues and partnerships focus on promoting clean energy technologies, sustainable development, and the implementation of the Paris Agreement on climate change.

  • Security and Counter-Terrorism: Cooperation in security and counter-terrorism is a priority for India and the EU. They exchange information, share best practices, and coordinate efforts to combat terrorism, cyber threats, and other transnational security challenges.

  • Migration and Mobility: India and the EU engage in dialogue on migration and mobility issues, including legal migration, visa facilitation, and irregular migration management. Cooperation aims to promote safe, orderly, and regular migration flows while addressing challenges related to migration governance.

  • Healthcare and Public Health: Collaboration in healthcare and public health is increasingly important, especially in areas such as pandemic preparedness, disease surveillance, and healthcare infrastructure development. India and the EU work together to strengthen health systems and respond to global health challenges.

 
 
For Prelims:  Current events of national and international importance
For Mains: GS-II:GS-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
 
Previous Year Questions
1.Consider the following statements: (UPSC CSE 2023)

The ‘Stability and Growth Pact’ of the European Union is a treaty that

1. limits the levels of the budgetary deficit of the countries of the European Union

2. makes the countries of the European Union to share their infrastructure facilitie

3. enables the countries of the European Union to share their technologie

How many of the above statements are correct

(a) Only one

(b) Only two

(c) All three

(d) None

 Answer (a)
 
Source: Indianexpress
 

DELIMITATION EXERCISE

 
 
 
1. Context
 
 
The delimitation of constituencies for the Lok Sabha and State Legislative Assemblies is to be carried out based on the first Census after 2026. The 2021 Census was originally postponed due to the COVID-19 pandemic and subsequently due to delays on the part of the Central government.
 
 
2. About delimitation
  • Delimitation refers to the process of determining the number of seats and defining the boundaries of electoral constituencies for the Lok Sabha and Legislative Assemblies.
  • It also involves allocating seats specifically reserved for Scheduled Castes (SC) and Scheduled Tribes (ST) within these legislative bodies.
  • As outlined in Articles 82 and 170 of the Constitution, the allocation of seats in the Lok Sabha and State Legislative Assemblies, as well as the demarcation of constituencies, is subject to adjustment following each Census.
  • This delimitation process is overseen by a Delimitation Commission established by an act of Parliament.
  • Such redistricting exercises have historically occurred following the 1951, 1961, and 1971 Censuses.

3. Constitutional Requirements and Current Status
  • The constitutional requirement for democratic governance stipulates that the government should be elected by the people, with the principle of 'one citizen-one vote-one value' being paramount.
  • Historically, the number of seats in the Lok Sabha was determined based on population figures from the 1951, 1961, and 1971 Censuses, resulting in an average population per seat of 7.3 lahks, 8.4 lahks, and 10.1 lahks respectively.
  • However, since the 1971 Census, the number of seats has been frozen to incentivize population control measures, ensuring that states with higher population growth do not gain disproportionately higher representation.
  • This freeze was initially implemented through the 42nd Amendment Act until the year 2000 and extended by the 84th Amendment Act until 2026.
  • Consequently, seat allocation is based on the population figures from the 1971 Census, with adjustments slated to occur following the first Census after 2026.
  • Ordinarily, the delimitation process, including determining the number of seats, defining territorial constituency boundaries, and allocating reserved seats for Scheduled Castes (SC) and Scheduled Tribes (ST), would align with the Census of 2031, being the first Census post-2026.
  • However, with the postponement of the 2021 Census and the approach of the year 2026, discussions are underway regarding the impending delimitation exercise.

 

4. Issues Surrounding Delimitation

The freezing of seat numbers based on the 1971 Census aimed to incentivize population control measures. However, over the past five decades, population growth has been uneven across states, with states like Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan experiencing greater increases compared to states like Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh.

Options Under Discussion

Two main options are being debated regarding the revised delimitation exercise based on projected 2026 population figures:

  1. Maintain Existing Seats (543) Redistribution: Under this option, the existing 543 seats would be redistributed among states.
  2. Increase Seats to 848 with Proportionate Redistribution: This option involves increasing the total number of seats to 848, with proportional increases among states.

Potential Disadvantages

Regardless of the chosen option, it's evident that southern states, smaller northern states like Punjab, Himachal Pradesh, Uttarakhand, and northeastern states may be at a disadvantage compared to northern states such as Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan. Such discrepancies may contradict the federal principles of the country and foster feelings of disenchantment among populations in states that stand to lose representation. Moreover, it contradicts the philosophy of freezing seats based on the 1971 Census, as states with better population control may lose political significance.

 

5. International Practices in Seat Allocation

  • In the United States, the number of seats in the House of Representatives, akin to India's Lok Sabha, has remained fixed at 435 since 1913. Despite the population increase from 9.4 crore in 1911 to an estimated 33.4 crore in 2023, the method of equal proportion is utilized to redistribute seats among states following each Census. This method aims to maintain fairness, ensuring that no significant gain or loss occurs for any state. For instance, after the 2020 Census, 37 states saw no change in their number of seats, while Texas gained two seats, five states gained one seat each, and seven states lost one seat each.
  • In the European Union Parliament, comprised of 720 members, seat allocation among its 27 member countries follows the principle of degressive proportionality. This principle entails that the ratio of population to the number of seats increases as population size increases. For example, Denmark, with a population of around 60 lahks, has 15 seats (with an average population of 4 lahks per member), while Germany, with a population of 8.3 crores, has 96 seats (with an average population of 8.6 lahks per member).

 

6. Proposed Ideal Solution

  • The dilemma between democratic and federal principles in delimitation can be effectively addressed by striking a balance that acknowledges the significance of both. A harmonious solution can be achieved by giving equal weight to democratic representation and federal structure.
  • The number of Members of Parliament (MPs) in the Lok Sabha could be capped at the current level of 543 seats. This ensures continuity in representation from various states, thereby upholding the federal principle. MPs primarily legislate on matters listed in the Union List, such as Defense, External Affairs, Railways, Telecommunication, and Taxation, and hold the Central government accountable.
  • To meet democratic representational requirements, the number of Members of the Legislative Assembly (MLAs) in each state can be increased in alignment with the current population. This adjustment can be made without altering the number of seats in the Rajya Sabha, thereby addressing the need for fair representation at the state level.
  • Crucially, to strengthen democracy at the grassroots level, empowering local bodies like panchayats and municipalities is imperative. These entities engage directly with citizens on a daily basis and play a vital role in governance. Significant devolution of powers and finances to these bodies is essential to enhance democracy at the grassroots level, ensuring effective citizen participation in decision-making processes.

 

7. The Way Forward

Finding a balanced approach to delimitation that considers democratic representation, federal stability, and local governance empowerment is crucial for India's future. This proposed solution offers a starting point for discussion and debate to ensure a fair and effective delimitation process that strengthens the nation's democracy.

 

For Prelims: Delimitation, Census, Covid-19 Pandemic, Article 82,  Article 170

For Mains: 

1. Critically analyze the potential conflict between the principle of "one citizen-one vote" and the freezing of Lok Sabha seats based on the 1971 Census in the context of delimitation. Discuss how this can impact federalism and representation in India. (250 Words)
2. How can the delimitation exercise be conducted in a manner that fosters national integration and strengthens the federal structure of India? (250 Words)
 
 
Previous Year Questions
 
1.  With reference to the Delimitation Commission, consider the following statements: (UPSC 2012)
1. The orders of the Delimitation Commission cannot be challenged in a Court of Law.
2. When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot effect any modifications in the orders.
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
 
2. Barak Valley in Assam is famous for which among the following? (MSTET 2019)
A.  Bamboo Industry
B. Petroleum Production
C. Cottage Industries
D. Tea Cultivation
 
3. Which one of the following is an important crop of the Barak Valley? (Karnataka Civil Police Constable 2019)
A. Sugarcane           B.  Jute            C. Tea                    D. Cotton
 
4. 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 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
 
 
5. The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to  (UPSC 2015) 
A. protect the interests of the Scheduled Tribes
B. determine  the boundaries between States
C. determine the powers, authority and responsibilities of Panchayats
D. protect the interests of all the border States
 
Answers: 1-C, 2-D, 3-B, 4-B, 5-A
Source: The Hindu

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