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Table of Contents

The Hindu

1. An unnecessary move: on handing back land to Ram temple trust (Relevant for GS Mains

Paper II; Polity & Governance) ..................................................................................................... 1

2. Why are parties in Tamil Nadu against 10% quota? (Relevant for GS Prelims, GS Mains


3. Shopping for votes: on the Interim Budget 2019-20 (Relevant for GS Prelims, GS Mains


4. The Supreme Court has defused the situation, but concerns remain over stand-off in

Kolkata (Relevant for GS Prelims, GS Mains Paper II; Polity & Governance) .......................... 4

5. Who is Rajeev Kumar, officer in Centre-State crossfire? (Relevant for GS Prelims, GS Mains

Paper III; Polity & Governance) ................................................................................................... 5

6. Congress and cow: on M.P. govt's use of NSA (Relevant for GS Prelims, GS Mains Paper II;

Polity & Governance) ..................................................................................................................... 6

7. Welcome shift: on Muzaffarpur shelter home trial (Read only for understanding; Polity &

Governance) ................................................................................................................................... 7

8. Why the Pradhan Mantri Kisan Samman Nidhi scheme will be hard to implement

(Relevant for GS Prelims & GS Mains Paper II; Polity & Governance) ................................... 10

9. Delhi dilemma: Centre vs State (Relevant for GS Prelims & GS Mains Paper II; Polity &

Governance) ................................................................................................................................. 11

10. Discord in Puducherry (Relevant for GS Prelims & GS Mains Paper II; Polity & Governance)

....................................................................................................................................................... 12

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11. It’s not clear if the 103rd Amendment will protect the new quota for Gujjars in Rajasthan

(Relevant for GS Prelims & Mains Paper II; Polity & Governance) ......................................... 13

12. U.S. announces pull out from INF missile treaty with Russia (Relevant for GS Prelims, GS

Mains Paper II; IOBR) .................................................................................................................. 14

13. India-U.S. trade hostilities (Relevant for GS Prelims, GS Mains Paper II; IOBR) ................... 15

14. Political Crisis in Venezuela (Relevant for GS Prelims, GS Mains Paper II; IOBR) ................ 16

15. Strange emergency: Donald Trump’s plan to build the Mexico border wall (Relevant for GS

Prelims & GS Mains Paper II; IOBR) ........................................................................................... 17

16. India and Pakistan’s water sharing is governed by the Indus Waters Treaty, which was

brokered by the World Bank. Can India abrogate this treaty? ............................................... 18

17. On India refusing visa to Pakistani shooters (Relevant for GS Prelims & GS Mains Paper II;

IOBR) ............................................................................................................................................. 18

18. Pulwama attack and Indus Waters Treaty: does India hold all the cards? (Relevant for GS

Prelims & Mains Paper II; IOBR) ................................................................................................ 19

19. FATF advisory to Pakistan (Relevant for GS Prelims & Mains Paper II; IOBR) ..................... 21

20. ICICI Bank sacks Chanda Kochhar (Relevant for GS Mains Paper III; Economics) .............. 22

21. RBI lifts curbs on three PSBs (Relevant for GS Prelims, GS Mains Paper III; Economics) .... 23

22. ‘Unemployment data based on draft report’ (Relevant for GS Prelims, GS Mains Paper III;

Economics) ................................................................................................................................... 24

23. What is the lowdown on MGNREGA funding? (Relevant for GS Prelims, GS Mains Paper III;

Economics) ................................................................................................................................... 25

24. All you need to know about Maharashtra’s struggle to amend APMC Act (Relevant for GS

Prelims, GS Mains Paper III; Economics) .................................................................................. 26

25. Delay in releasing key employment data has undermined the credibility of data

officialdom (Relevant for GS Prelims, GS Mains Paper III; Economics) ................................. 27








26. U.K. Home Secretary orders Vijay Mallya’s extradition to India (Relevant for GS Prelims, GS

Mains Paper III; Economics) ....................................................................................................... 28

27. Pension for informal workers (Relevant for GS Prelims, GS Mains Paper III; Economics) .. 30

28. The lowdown on Mallya’s extradition (Relevant for GS Prelims, GS Mains Paper III;

Economics) ................................................................................................................................... 31

29. Shrinking air links in NorthEast (Relevant for GS Prelims, GS Mains Paper III; Economics)

....................................................................................................................................................... 32

30. RBI to pay govt. ₹28,000 cr. in interim surplus (Relevant for GS Prelims & Mains Paper III;

Economics) .................................................................................................................................. 34

31. Easing global Oil Prices (Relevant for GS Prelims & GS Mains Paper III; Economics) ......... 34

32. Safety nets: on banning unregulated deposit schemes (Relevant for GS Prelims & Mains

Paper III; Economics) .................................................................................................................. 36

33. GST on under-construction flats, affordable housing slashed by 7% (Relevant for GS

Prelims & Mains Paper III; Economics) ..................................................................................... 37

34. RBI takes 3 banks off prompt corrective action framework (Relevant for GS Prelims &

Mains Paper III; Economics) ....................................................................................................... 37

35. Maharashtra, where a high-speed train corridor puts spotlight on a Flamingo sanctuary

(Relevant for GS Prelims & Mains Paper III; Environment) .................................................... 38

36. Vande Bharat: India’s self-propelled, fastest train takes off (Relevant for GS Prelims;

Science & Technology) ................................................................................................................ 39

37. India to have own DNS for safe browsing (Relevant for GS Prelims & Mains Paper III;

Science & Technology) ................................................................................................................ 40

38. Illicit liquor deaths (Relevant for GS Prelims, GS Mains Paper I; Social Issues) ................... 40

39. Seemanchal Express derails in Bihar; 6 dead, 30 injured (Relevant for GS Prelims; GS

Mains paper III; Internal Security) ............................................................................................ 41








40. What is recent issue on National Security Act? (Relevant for GS Prelims & GS Mains Paper

III; Internal Security)................................................................................................................... 42

41. Home Ministry puts Assam Rifles notification on hold (Relevant for GS Prelims & GS Mains

Paper III; Internal Security) ....................................................................................................... 43

42. Who is Kamala Harris, the Democratic hopeful? (Relevant for GS Prelims) ......................... 44

43. Rishi Kumar Shukla appointed CBI Director (Relevant for GS Prelims) ................................ 44

44. 2nd longest rail tunnel of the country (Relevant for GS Prelims) .......................................... 45

45. Loong Palace Hurun Global Rich List 2019 (Relevant for GS Prelims) .................................. 46






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1. An unnecessary move: on handing back land to Ram temple trust (Relevant for GS

Mains Paper II; Polity & Governance)

Centre’s request

The Centre’s request to the Supreme Court to allow it to return the “superfluous land” it had acquired around the disputed site in Ayodhya in 1993 is not innocuous; nor is it justified at this juncture. The court had ordered that the status quo be maintained on the entire extent of 67.7 acres acquired in the aftermath of the demolition of the Babri Masjid. Analysis of government’s decision

Behind the apparently equitable argument that an extent of land not in dispute can be given back to its original owners is a barely concealed political motive. BJP leader Ram Madhav has said, “In view of the strong popular sentiment attached to the Ram Mandir, it is the least that the government could do.” The sense of anxiety among the supporters of the Mandir cause over the delay in the adjudicatory process is palpable; but it is also indicative of an unreasonable expectation that the government should somehow facilitate the construction of a Ram temple regardless of what the court’s decision is. What can be implications?

It is a move fraught with the risk of reigniting communal passions at a time when the appeals against the Allahabad High Court’s verdict in the title suits have reached the final stage of adjudication before the Supreme Court. The Centre’s argument is that the Supreme Court, in Ismail Faruqui (1994) had itself said that once the objectives of the acquisition have been achieved, the superfluous area should revert to its owners. It has also contended that the status quo was required only till the disposal of the suits, which ended in 2010 when the Allahabad High Court decided them. Is the issue really so simple?

The court had noted that the adjacent area had been acquired so that the party that succeeds is not denied the fruits of its success by those in the adjacent areas through denial of access. It had said the status quo was required to avoid “reigniting communal passions detrimental to the spirit of communal harmony”. Further, the trial court’s decision in favour of a three-way partition of the land has not satisfied any of the parties, and the entire suit is once again open for adjudication. The time is hardly ripe for altering the status quo. Beyond all this, the idea of giving back 42 acres of land to the Ram Janmabhoomi Nyas, a trust dedicated to the cause of constructing a temple to Ram on the site where the demolished Babri Masjid stood, will be needlessly provocative. The trust had obtained its lease in 1992 in the run-up to the campaign to demolish the mosque, from the Kalyan Singh government, whose actions were demonstrably anti-secular. There is a case for reconsidering the lease, but nothing at all for this organisation to be given the opportunity to gather its resources in the vicinity of the disputed site. (Adapted from The Hindu)

2. Why are parties in Tamil Nadu against 10% quota? (Relevant for GS Prelims, GS







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What is their stand?

The 103rd Constitution Amendment, through which the Centre has introduced a 10% quota for the economically weaker sections among communities that do not enjoy any other form of reservation, has drawn near universal opposition from almost all major parties in Tamil Nadu. When it was introduced as the 124th Constitution (Amendment) Bill in Parliament, the AIADMK, the ruling party in the State, and considered to be friendly towards the BJP, spoke out against it in both Houses of Parliament. Its MPs walked out during the vote. Kanimozhi, DMK MP, moved a motion to refer the Bill to a select committee, but it was defeated. R.S. Bharathi, organising secretary of the DMK, has challenged the amendment in the Madras High Court. The Viduthulai Chiruthaigal Katchi (VCK), an ally of the DMK, has moved the Supreme Court against it. D. Veerasekaran, an advocate who belongs to the Dravidar Kazhagam, has also approached the High Court. Why is there such opposition?

Tamil Nadu is a pioneer in providing reservation in employment and education as a social justice measure. Its backward classes reservation history goes back to 1921. For historical and ideological reasons, therefore, the concept of social justice in the State is anchored firmly in the belief that reservation is a tool to ameliorate the conditions of sections of society that had been discriminated against in the past and that had suffered deprivation of employment and educational opportunities on account of their social backwardness. Here, reservation is seen not merely as an exception to the equality clause in the Constitution, but is considered an important and essential component of equality. In other words, equality acquires deeper meaning only if social injustices of the past are undone through preferential treatment for backward classes and other affirmative action programmes. What are their principal objections?

The first and foremost objection to the 10% reservation for the economically poor in other classes is that it cannot be used as a poverty alleviation measure. The amendment to the Constitution to add an enabling provision for extending quotas on economic grounds is seen as a perversion of the idea of social justice. So far, only social and backwardness and educational backwardness were valid grounds for reservation. Many in Tamil Nadu believe economic disadvantage among sections of the advanced castes can be addressed through other measures such as job creation, provision of scholarships and financial concessions. However, carving out a quota among government jobs and educational opportunities cannot be a just solution. One principal reason is that a family’s economic condition is variable, whereas social status based on caste or community cannot change. Someone getting a new job, a promotion or an additional breadwinner in the family may result in a change in a person’s economic status. On the other hand, the social disability caused by being born in a particular caste cannot be easily undone. Are there any other apprehensions?

Yes, there are fears that this will lead to shrinking of opportunities for those already enjoying reservation. A significant section of the population is already covered by the State’s total reservation of 69% for the Scheduled Castes, the Scheduled Tribes, the backward classes, the most backward classes and denotified communities.






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The backward class quota has a sub-quota for backward class Muslims and the Scheduled Caste reservation has a sub-quota for Arundhatiyars, considered the worst-off among the Scheduled Caste. All of them are eligible to contest on merit under open competition too. The open quota may now come down by 10%. Further, there are fears the courts may insist on the 50% judicial cap on total reservation, and may order a cut in the caste-based quotas to accommodate the economic quota. (Adapted from The Hindu)

3. Shopping for votes: on the Interim Budget 2019-20 (Relevant for GS Prelims, GS


The shadow of the general election falls on the Interim Budget 2019-20 budget proposals, which are aimed at seeking votes in the name of various schemes that rain cash on beneficiaries. There is no denying that a lot of thought has gone into identifying and targeting the sections of population across social segments that are in distress and unhappy with the Centre for a variety of reasons. What are the major sops?

There is an income support scheme for farmers who are reeling under the impact of falling realisations for their crops, and a pension scheme for informal sector workers earning up to ₹15,000 a month. There are income tax concessions for the middle class that have been carefully framed to target the lower rung. The ₹6,000 a year income support to farmers will benefit 12 crore households, which is almost half of the total number of households. Similarly, the increase in standard deduction from ₹40,000 to ₹50,000 may be small but it will cover three crore taxpayers, which is again almost half of the 6.8 crore taxpayers. The income tax rebate on those with taxable annual income of up to ₹5 lakh a year will benefit three crore middle class voters that includes traders, small businesses, those who have just joined the formal workforce and pensioners. Is government eligible to provide benefits?

While these sops will benefit sections of the population, the question is whether it is correct for a government that will be in power for less than two months in the next financial year to write into the statute books proposals that are permanent. Though some past governments have announced sops in their interim budgets with an eye on elections, this budget has gone much further by announcing very significant measures. In political terms, the strategy cannot be faulted as it appears to have put the Opposition in a difficult spot — protesting too much about the concessions given to those in distress may be counter-productive. That said, some of these ideas may actually work in economic terms as they put money in people’s hands. The housing-related tax proposals can give a leg-up to the real estate sector, which is a job-creator and is now in trouble.






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What are the economic costs?

The sops come with a cost, though. The Centre will miss the glide-path for reducing the fiscal deficit, yet again. The estimated slippage of 0.10 percentage point is not significant if we assume that the concessions will spur spending by the beneficiaries. This is, of course, assuming that the gross tax revenue projection of ₹25.52 lakh crore, which is a 13.5% growth over the revised estimates of 2018-19, is achieved. But this arithmetic will be the headache of the next government. (Adapted from The Hindu)

4. The Supreme Court has defused the situation, but concerns remain over stand-off

in Kolkata (Relevant for GS Prelims, GS Mains Paper II; Polity & Governance)

In its ostensibly even-handed intervention in the stand-off between the Central and West Bengal governments over the manner of investigation of the Saradha Chit Fund case, the Supreme Court has de-escalated political tensions, at least for now. What is Supreme Court order?

While ordering Kolkatta Police Commissioner to cooperate with the CBI in “neutral” Shillong, the Court restrained the CBI from taking any coercive action against Mr. Kumar. What has happened?

The Police Commissioner and his Special Investigation Team investigating the chit fund case had been served a number of notices to appear before the CBI before it sent a team to his house in Kolkata. While Ms. Banerjee may have reason to believe that the timing of the CBI’s operation was politically motivated, her government’s response — manhandling and detaining the CBI officials — was shocking and inexcusable. In the polarised political atmosphere, her belligerence expectedly secured the backing of a large number of Opposition parties, and even had the Congress rally around her during an impromptu sit-in protest. However, in attempting to obstruct the CBI action in a court-ordered investigation, Ms. Banerjee once again demonstrated that she is prone to taking arguments over administrative procedures to the streets. Way forward

There are bound to be questions whether this matter should have been escalated to such an unpleasant level. The CBI says there was no proper response to the earlier summonses it sent to the Police Commissioner, and alleges that he could have destroyed evidence that was initially gathered by the Special Investigation Team that he had supervised in the initial stage of the probe. But it is doubtful whether descending on a senior officer’s residence on a Sunday evening with a large team of officers was the right course of action for the CBI, as it was liable to be interpreted as a high-handed attempt to browbeat and embarrass the State government. The only way the CBI can escape this impression is by showing that it was justified in demanding the questioning of Mr. Kumar and establishing proof of its suspicions about his role in covering up the scam.






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(Adapted from The Hindu)

5. Who is Rajeev Kumar, officer in Centre-State crossfire? (Relevant for GS Prelims,

GS Mains Paper III; Polity & Governance)

1989 batch IPS officer, Kolkata Police Commissioner Rajeev Kumar hogged the limelight along with West Bengal Chief Minister Mamata Banerjee for the better part of this week. After a CBI team arrived to search Mr. Kumar’s south Kolkata residence, Ms. Banerjee launched a sit-in, 13 years after she launched a fast during the Singur crisis. In 2006, it was against the Left, in 2019 it was directed against the right, the BJP. But this time the Supreme Court walked the middle path, halting Mr. Kumar’s imminent arrest, calming Ms. Banerjee and her counterparts in Delhi. Why is he the target?

Launching the dharna in the city centre, Ms. Banerjee said it was “her duty to protect her officers.” But the Opposition trained guns on Mr. Kumar, with the BJP alleging that he had not furnished two crucial items — a red diary and a pen drive — seized during raids on the Saradha Group’s office. The office, at Midland Park in Salt Lake, falls under the jurisdiction of the Bidhannagar Commissionerate, and Mr. Kumar was its first Commissioner. Ms. Banerjee blocked the CBI-Kumar interaction to “protect herself,” said Union Minister Prakash Javadekar. The allegation was refuted by the main accused in the Saradha scam case, the group’s chief Sudipta Sen, who has been in prison since 2013. The CBI, in a 17-page affidavit filed in the Supreme Court, alleged that Mr. Kumar “destroyed, destructed and tampered with the material primary evidence in form of CDRs [call data records] while handing over the same to the CBI on 28.6.2018.” Is he close to the CM?

When Ms. Banerjee stormed to power in 2011, she kept her distance from Mr. Kumar, who was known to be close to Buddhadeb Bhattacharjee, the outgoing Chief Minister. But Ms. Banerjee soon changed her opinion on Mr. Bhattacharjee’s “blue eyed” officer. Last Sunday, as she began her protest, she described Mr. Kumar as among the “best in the world.” He studied engineering at the University of Roorkie, now an IIT, preceding the decade when India opened itself to foreign investments in the early 1990s. Western Uttar Pradesh’s Kumars, with many teachers in their family, shifted to Chandausi, where Mr. Kumar’s father joined a local college as a professor of social science. On completion of college, Mr. Kumar appeared for the civil services examination and cleared it. Mr. Kumar’s Roorkie-induced specialisation in technical intelligence, a rare feat among IPS officers, helped him grow in the ranks. He played a major role during the Left Front government in nabbing leaders connected to various people’s movements, like Chhatradhar Mahato. During that time, Ms. Banerjee, then in the Opposition, repeatedly alleged that Mr. Kumar was engaged in surveillance against the Left’s political opponents. But once in power, Ms. Banerjee considered Mr. Kumar an asset. A fitness enthusiast like the Chief Minister, Mr. Kumar was reinstated in the Special Task Force with the responsibility of technical intelligence.






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At the time when the Saradha scam exploded and investors hit the streets in protest, it was Mr. Kumar who partly diffused the anger by arresting Sudipta Sen and his associates from Kashmir, tracking wireless devices. The Chief Minister was convinced of his ability to address complex situations and Mr. Kumar was soon elevated to the rank of CP of Bidhannagar Commissionerate, investigating the Saradha scam. The investigation — and his role in handling it — has landed him in trouble. What lies in store?

The CBI began questioning Mr. Kumar in Shillong on Saturday. Depending on the nature and volume of evidence, the CBI may seek to vacate the stay on his arrest, issue a warrant and take him into custody. The key question, however, is how Ms. Banerjee responds to the challenge. Will she succumb to pressure or be more combative? We will have to wait and watch. (Adapted from The Hindu)

6. Congress and cow: on M.P. govt's use of NSA (Relevant for GS Prelims, GS Mains

Paper II; Polity & Governance)

Detention under National Security Act

The detention of five people under the National Security Act in Madhya Pradesh last week, all of them alleged to have committed offences related to cattle laws, amounts to gross misuse of a law meant solely to prevent activities that endanger the country’s security or public order. India has unfortunately become habituated to the abuse of preventive detention laws. In recent times, they have been wrongly invoked against political dissenters and vocal critics, with total disregard for constitutional freedoms. First time on violation of cattle laws

The latest instances point to a new form of misuse. This is possibly the first time that a law that provides for a maximum of one year in prison through an executive order without trial or bail is being used against those suspected of offences against cows. What are the implications?

The implications are terrifying. It means that law-enforcers will stop at nothing to demonstrate ideological adherence to majoritarian beliefs. This poses a grave danger to the freedom of movement and vocation, as well as the dietary choices, of sections of society that do not share the majority community’s reverence for the cow. What are the details of the matter?

In the first case in Khandwa district, the police, who recovered a cow carcass, traced three men who had allegedly killed the animal. In the second case, authorities in Agar Malwa district claim there was some disturbance due to two men who were allegedly transporting cows. The ostensible reason to book them under the NSA is that they were likely to cause disruption of peace.






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Analysis of application of National Security Act

This is too flimsy a ground to invoke so stringent a law, especially when there is no evidence of security or order being under grave threat. In its order last year directing a series of measures against mob violence and public lynching, of which those transporting cows were frequent victims, the Supreme Court had warned against the dangers of a socio-political framework based on disrespect for an inclusive social order, and wanted the state to take preventive and remedial measures. In its apparent eagerness to prevent incidents that may lead to a communal backlash, the Madhya Pradesh government is detaining potential victims to prevent them from indulging in provocative acts! In invoking the NSA in respect of minor offences, solely out of fear of aggressive protests by right-wing Hindu groups, the Congress regime in Madhya Pradesh is displaying utter cravenness. It is not clear why the police is not content with prosecuting them under laws that ban cow slaughter. There is some unease among Congress leaders over these actions of the party’s new government in the State. However, it is not enough for the party to voice mild disapproval of the Kamal Nath regime’s actions: its leadership has to denounce the gross misuse of the law to mollify cow vigilantes and the short-sighted aim of neutralising the BJP’s campaign that the Congress is against Hindu beliefs. The State government must revoke the detention. (Adapted from The Hindu)

7. Welcome shift: on Muzaffarpur shelter home trial (Read only for understanding;

Polity & Governance)

The Supreme Court’s order transferring the trial in the Muzaffarpur shelter home case from Bihar to a court in Delhi is a welcome intervention to ensure justice for the children who were sexually exploited. What is the rationale?

The Central Bureau of Investigation had argued that the trial would not be fair if it was held in Muzaffarpur. In shifting it to a court notified under the Protection of Children from Sexual Offences Act at Saket in Delhi, the apex court has once again demonstrated its lack of confidence in the Bihar government. It had transferred the investigation from the State police to the CBI. Later, it asked the agency to take over the probe in respect of 16 other shelter homes for children, destitute women and senior citizens. What was the need of intervention?

These interventions had become necessary, given the apparent apathy of the authorities in Bihar even after horrific instances of physical and sexual exploitation came to light last year. The Bihar government asked the Tata Institute of Social Sciences to audit the short-stay and shelter homes, run by non-governmental organisations but funded by the government. Last year, TISS came up with a damning report on the unsafe conditions in which children were staying in many shelter homes. The Muzaffarpur home was among the






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worst: many girls reported physical and sexual violence. More than 30 girls below 17 have been sexually assaulted. However, the subsequent response of the State government has not inspired much confidence. Apart from some officials being suspended, and some of those involved arrested, the State government did not have much to show as stringent action. Its response came under adverse scrutiny. A Bench of the Supreme Court found that 11 FIRs mentioned only minor offences, that is, “the least serious” of the offences involved. In the Muzaffarpur case, the court took note of the clout of Brajesh Thakur, whose NGO ran the shelter home concerned. The girls in the shelter identified Chandrasekhar Verma, the husband of former Social Welfare Minister Manju Verma, as a frequent visitor. The Verma couple later surrendered to the authorities. It is disquieting and significant that the court had to order Thakur’s transfer to a prison in Patiala to prevent him from exerting his influence on the authorities in Bihar. The court is also separately monitoring the functioning of child care homes in Bihar. Meanwhile, it is high time that States bestowed sufficient attention to such institutions. A recent Central government committee report highlighted the shocking inadequacies in the facilities available at most child care institutions and homes. There is a strong case for a systematic scrutiny to be taken up on an urgent basis to address the problem. (Adapted From The Hindu)

19. SC verdict on Delhi power tussle (Relevant for GS Prelims & GS Mains Paper II;

Polity & Governance)






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Supreme Court verdict

A two-judge Bench of the apex court gave its decision in the Delhi government vs Centre case, with one judge saying that the elected government had no powers over services matters and the other saying that the files regarding DANICS officers could be routed through the Council of Ministers to the Lieutenant-Governor. However, for a final call, the matter was referred to a three-judge Bench. Reaction of Mr. Kejriwal

Reacting to the development, Mr. Kejriwal said at a press conference at his residence: “We respect the Supreme Court, but the judgment is injustice with Delhi and the people of Delhi. Delhiites elected a government by giving one party 67 out of 70 seats. Today’s judgment says that the elected government does not have power to transfer officers.” The Chief Minister added that the judgment led to the question: “If a government cannot even transfer its officers, then how will that government function?” (Adapted from The Hindu)






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8. Why the Pradhan Mantri Kisan Samman Nidhi scheme will be hard to implement

(Relevant for GS Prelims & GS Mains Paper II; Polity & Governance)

What does the scheme offer?

The Pradhan Mantri Kisan Samman Nidhi scheme, announced in the Budget earlier this

month, aims to give ₹6,000 a year to 12 crore farmer families who own up to two hectares of cultivable land. What are the challenges?

The number of beneficiaries comes from the number of land holdings of two hectares or less, according to the last agricultural land census. However, the guidelines say a single family may hold multiple land parcels, which will be pooled to determine their eligibility for the benefit. Similarly, even landholdings bigger than two hectares, if owned by multiple families, will make them eligible for the scheme. For example, if five brothers jointly own a single 10 hectare holding, each of them will be eligible for the scheme. However, if the members of a single family unit each own three one-hectare holdings, they will not be eligible. “This is a mess,” says Vikas Rawal, a professor at JNU’s Centre for Economic Studies and Planning, who specialises in agriculture economics. He says it will be difficult to use existing land records to determine beneficiaries. “Land records are held individually. How do you know which family holds how much land?” For the purposes of this scheme, family units are being defined as a husband, wife and minor children. Local administrations are more familiar with the unit of the household — which is used by most other government surveys and schemes — defined as a group living together and eating meals from a common kitchen. What is the status of land records?

States have been implementing the Digital India Land Records Modernisation Programme for more than a decade. While several States claim to have completed computerisation of their land records, others have not even begun the process. However, digitisation does not mean the data have been updated. Experts say many land records are updated only when the land is sold and only if the transaction is legally registered. Inherited land may still be registered in a parent or grandparent’s name. Multiple government departments hold the documents required to establish land ownership — the Registration Department maintains sale deeds, but maps are kept by the Survey Department, while the Revenue Department keeps property tax receipts. Verifying ownership claims is thus a daunting task. States have been asked to overhaul their land databases immediately in preparation for the scheme,

which aims to pay out its first instalment of ₹2,000 by March 31, before the Lok Sabha election. What happened in Telangana?

However, the example of Telangana shows this may be an unrealistic time line. Despite an advanced state of progress in digitisation, the State took over three months to update its databases before implementing its own farmer income support scheme before its Assembly election last year. Since its payout was given per acre owned, rather than per family unit, it was a simpler process to identify beneficiaries on the basis of land records. Yet, researchers






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say almost 10 lakh beneficiaries — of a total 54 lakh — were left out of the initial instalment, as the State scrambled to update records. What about community farmers?

The scheme notes that land ownership rights are community-based in many northeastern States and promises that an alternative method of beneficiary identification will be developed. However, many Adivasi communities in other States also cultivate land without individual rights, and may be left out of the scheme, although they are among the most vulnerable. Tenant farmers are also not included in the scheme, as they do not own the land they cultivate. With tenancy being as high as 60% in some areas, this could lead to resentment if absentee landlords receive benefits under the scheme. Is payment infrastructure in place?

The government intends to pay beneficiaries through a direct transfer to their bank accounts. From the second instalment, Aadhaar numbers will be compulsory to access benefits. Previous welfare schemes requiring Aadhaar verification have faced significant hurdles in some rural areas. (Adapted from The Hindu)

9. Delhi dilemma: Centre vs State (Relevant for GS Prelims & GS Mains Paper II; Polity

& Governance)

Recent Supreme Court split decision

The Supreme Court’s split decision on the question of whether the government of the National Capital Territory of Delhi (NCTD) has executive control over those in its service points to the inherent complexity of the relations between the Delhi government and the Centre. Battles have been fought in the political and judicial spheres over whether some subject or the other falls under the Delhi government or is the exclusive preserve of the Centre. Last year Supreme Court ruling A Constitution Bench ruling last year provided a framework to resolve such issues. It held that the Lt. Governor has to act either on the aid and advice of the Council of Ministers, or abide by the decision of the President on a reference made by him. The power to refer “any matter” to the President did not mean “every matter” should go that way. Issues resolved?

Specific issues were left to a Bench of Justices A.K. Sikri and Ashok Bhushan, which has resolved most issues. It has upheld the Delhi government’s power to appoint prosecutors, levy and revise stamp duty on property transactions and issue notifications under the Delhi Electricity Reform Act. What is the recent issue?






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Both judges agree that there is no ‘service’ in the Delhi government, as all its employees come under the ‘Central services’. Its civil servants are drawn from the DANICS cadre, a service common to various Union Territories. Justice Sikri believes that going by a Constitution Bench decision last year, the NCTD would indeed have the power to deploy officials within its own departments. However, the absence of a public service in Delhi means Entry 41 in the State List (services; service commissions) would imply that it is a matter inapplicable to ‘Union Territories’, and therefore, the LG need not act on the Delhi government’s aid and advice. Therefore, he favours a solution under which transfers and postings of officers in the rank of Joint Secretary and above could be directly submitted to the LG, and those of others be processed by the Council of Ministers and sent to the LG. In case of any dispute, the LG’s view will prevail. Justice Bhushan, on the other hand, has ruled that once it is accepted that there is no ‘service’ under the NCTD, there is no scope for its government to exercise any executive power in this regard. A larger Bench will now decide on the question relating to control over the services. The more significant challenge is to find a way out of the complexities and problems thrown up by the multiple forms of federalism and power-sharing arrangements through which relations between the Centre and its constituent units are regulated. (Adapted from The Hindu)

10. Discord in Puducherry (Relevant for GS Prelims & GS Mains Paper II; Polity &

Governance)

What has happened recently?

This round of conflict between Puducherry Chief Minister V. Narayanasamy and Lt. Governor Kiran Bedi has been more serious than those in the past. Mr. Narayanasamy sat in protest for six days, before the two could meet to hold talks to resolve a set of issues he raised in a letter earlier this month. He has been opposing what he calls Ms. Bedi’s “high-handedness” and tendency to interfere in the administration. The two have had differences on many issues over the last two years. What are the reasons behind such problems?

Such problems are an obvious consequence of the political structure of Union Territories, in which the Administrator, as the nominee of the President, enjoys powers superior to the Chief Minister and the Council of Ministers. The trigger for the latest stand-off seems to have been Ms. Bedi’s move to enforce the rule for two-wheeler riders to wear helmets. While the Chief Minister believes it can be enforced only after raising awareness, Ms. Bedi wants it implemented immediately. However, the Chief Minister insists that his protest has nothing to do with this. He lists the blocking of welfare schemes such as the free rice scheme and enhanced scholarship for Scheduled Caste students, among other actions of the L-G, as the real issues.






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Whatever be the origin of this conflict, the sight of a Chief Minister on an indefinite dharna is not seemly. It could not have gone on indefinitely, and the fact that a dialogue was formally initiated, albeit after much delay, is a welcome development. What is the central point ?

Central to the conflict is the question whether Ms. Bedi is acting within her powers or exceeding her brief in seeking to play a proactive role in the affairs of the Union Territory. Under the Constitution, the territory belongs to the President, who runs it through the L-G as Administrator. However, under Section 44 of the Union Territories Act, 1963, the Administrator has to act on the ‘aid and advice’ of the Council of Ministers. At the same time, any difference of opinion between them can be referred to the President, and in the meantime the Administrator’s action prevails on any urgent matter. This scheme, which gives a clear edge to the Centre, can work only if there is harmony between the Council and the L-G. It would be unfortunate if individuals occupying Raj Nivas in any Union Territory with a Legislative Assembly get carried away and ignore or undermine the elected body. Last year, ruling on the limits of the L-G’s powers in Delhi, the Supreme Court stressed the need for the L-G as well as people’s representatives to “function in harmony within constitutional parameters”. The L-G was cautioned against having a hostile attitude towards the Ministers. There is no reason why that principle cannot be extended to Puducherry, which has a longer record of elected governments. (Adapted from The Hindu)

11. It’s not clear if the 103rd Amendment will protect the new quota for Gujjars in

Rajasthan (Relevant for GS Prelims & Mains Paper II; Polity & Governance)

With leaders of the Gujjar agitation for reservations calling off their stir, the Rajasthan government has averted what could have been a prolonged crisis. Demand by Gujjars

Gujjar leaders have held various rounds of protests over the last decade and a half, demanding reservations in educational institutions and employment in a separate backward category that is apart from the existing 21% set aside for Other Backward Classes in the State. Response of Courts to govt legislations

Despite governments bringing in legislation towards this end, they have been struck down on the grounds that the additional quota would take the quantum of reservation above the 50% limit set by the Supreme Court in the Indra Sawhney judgment. Receent action by State Government

Recently, the Rajasthan State Assembly passed legislation providing 5% reservation to Gujjars and four other nomadic communities, classifying them as “extremely backward classes”. But this time, the circumstances have arguably changed with the passing of the 103rd Amendment to the Constitution that allows for a 10% quota for the economically






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backward among communities that do not enjoy any form of reservation. The State government has also added a line to the Bill explicitly referring to the amendment, which effectively breaches the 50% limit set for reservations by the Supreme Court. It remains to be seen how the judiciary will tackle this question in light of the 103rd amendment, the constitutionality of which is under challenge. Basis of Gujjars demand

The demand by Gujjars has a specific context. In Rajasthan, the community is currently eligible for reservations as an OBC community. They had in the mid- and late-2000s agitated for inclusion in the Scheduled Tribe category, in keeping with the way they are classified in Jammu and Kashmir and Himachal Pradesh. This demand was denied because tribal status, as defined in the Constitution’s Fifth Schedule, involves identifiable characteristics such as lifestyle, culture, inaccessibility and backwardness, and not just economic underdevelopment. Since then, the largely pastoral community has pressed for reservations under a separate backward class category, arguing that inclusion of Jats in the OBC list has crowded Gujjars out of the benefits of reservations. Clearly, the decision to accommodate a demand from one politically dominant community (Jats) has come to haunt administrators in the State as this has fanned Gujjar agitations on and off. Multiple commissions appointed by State governments have recommended the implementation of the 5% quota on the basis of the community’s “extreme” or “most” backward nature. But the lack of adequate data in the absence of a proper socio-economic caste census to prove this has led to the policy’s undoing in judicial orders. More important, the repeated agitations are an indication of the shortfall in adequate, gainful and secure job opportunities in States such as Rajasthan. (Adapted from The Hindu)

12. U.S. announces pull out from INF missile treaty with Russia (Relevant for GS

Prelims, GS Mains Paper II; IOBR)

The U.S. is suspending its obligations under the Intermediate-Range Nuclear Forces (INF) Treaty effective February 2 and will withdraw from the treaty in six months. The U.S. will formally give Russia and the other treaty parties a formal notice that it is withdrawing under Article XV of the Treaty. Article XV mandates a six-month notice period before withdrawal. What is INF treaty?

The treaty, signed during the Cold War in 1987, bans ground-launched missiles with a range of 500-5,500 km. It was key to ending the arms race between the (then) two super powers and helped protect the U.S.’s NATO allies in Europe from Soviet missile attacks. Reason cited by US from withdrawing treaty

Russia has jeopardised the United States’ security interests and US can no longer be restricted by the treaty while Russia shamelessly violates it. US cannot be the only country in the world unilaterally bound by this treaty.






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However, the US left open the possibility that the treaty could be rescued in the six-month withdrawal period. According to US, “If Russia does not return to full and verifiable compliance with the treaty within this six-month period by verifiably destroying its INF-violating missiles, missile launchers and associated equipment, the treaty will terminate.” The Trump and Obama administrations have repeatedly alleged that Russia was violating the treaty by fielding a ground-based cruise missile, the Novator 9M729 (“SSC-8” in NATO terminology) that could strike Europe at a short notice, an allegation that Russia has repeatedly denied. The Russians have raised counter-allegations against the U.S., with regard to launchers for antiballistic missile systems in Europe. (Adapted from The Hindu)

13. India-U.S. trade hostilities (Relevant for GS Prelims, GS Mains Paper II; IOBR)

There are alarm bells in India over a possible decision by the U.S. Trade Representative to withdraw the Generalised System of Preferences status. Under this, India is able to export about 2,000 product lines to the U.S. under zero tariff. The revocation of the GSP will be a blow to Indian exporters, and the biggest in a series of measures taken by the Trump administration against India to reduce its trade deficit. What is Generalized System of Preferences (GSP)?

The Generalized System of Preferences (GSP) is a U.S. trade program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories. GSP was first extended to India in 1976 as part of a global concession by the U.S. to help developing countries build their economies. Why US wants to with draw GSTP?

President Donald Trump’s case on what he calls “unequal tariffs” from India rests on the trade relationship in favour of India: Indian exports to the U.S. in 2017-18 stood at $47.9 billion, while imports were $26.7 billion. The measures are in line with Mr. Trump’s campaign promises. What has happened recently?

On the matter of Harley-Davidson motorcycles, he spoke directly to Prime Minister Narendra Modi on at least three occasions, demanding that India zero out tariffs to match U.S. rates on Indian motorcycles. In March 2018, the U.S. began imposing tariffs on several Indian products, and in April, the USTR began a review of India’s GSP status, based on complaints of trade barriers from India it had received from the dairy industry and manufacturers of medical devices. In November the U.S. withdrew GSP status on at least 50 Indian products.






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In retaliation, India proposed tariffs of about $235 million on 29 American goods, but has put off implementing these five times in the past year in the hope that a negotiated trade settlement will come through. The latest deadline expires on March 1. India has also attempted to address the trade deficit with purchase of American oil, energy and aircraft. There have been dozens of rounds of talks between officials over the past few months, but no breakthrough. U.S. officials say the decision on data localisation for all companies operating in India, and the more recent tightening norms for FDI in e-commerce have aggravated the situation. (Adapted from The Hindu)

14. Political Crisis in Venezuela (Relevant for GS Prelims, GS Mains Paper II; IOBR)

What is happening in Venezuela?

Venezuela has been going through a turmoil for the past couple of years amid an economic meltdown and growing Opposition protests. The crisis took a dangerous turn on January 23 when Juan Guaidó, president of the Opposition-controlled National Assembly, declared himself interim President of the oil-rich South American country, directly challenging the authority of President Nicolás Maduro, who began his second six-year term in January. Immediately after Mr. Guaidó’s announcement, the U.S., Canada, Brazil and some other South American nations recognised him as Venezuela’s legitimate leader. Mr. Maduro rejected the “coup” attempt and said he was the President of Venezuela. European powers gave Mr. Maduro an ultimatum to announce fresh elections, which he rejected. Later, a host of European countries also backed Mr. Guaidó. The U.S., meanwhile, imposed new sanctions on Venezuela’s state-run oil company, PDVSA — all properties of the company subject to U.S. jurisdiction was blocked and American citizens were barred from trading with the company. The sanctions are expected to cost Mr. Maduro’s government $11 billion in lost export proceeds. Who is the legitimate leader?

Mr. Guaidó says the Venezuelan Constitution allows the president of the National Assembly to take power as interim President in the absence of an elected President. The Opposition doesn’t recognise the 2018 presidential election which Mr. Maduro won. The main Opposition had boycotted the election. Mr. Guaidó and his supporters argue that since the election was a sham, Venezuela doesn’t have a legitimate leader, and in such a context as president of the National Assembly, he could take power. This is a contested claim. Article 233 of the Constitution, which Mr. Guaidó has invoked, lists the circumstances, such as the President’s death, dismissal or resignation, where the Parliament chief can assume power and call for fresh elections. The current crisis, triggered by economic woes, government repression and a disputed election, is different. Besides, most constitutional institutions in the country, including the armed forces, back Mr. Maduro. So do Russia and China. How bad is the economic crisis?

Very bad. The country’s inflation is estimated reach 10 million per cent this year. Venezuela has also been facing severe food and medicines shortages for months. The nation’s GDP, which was growing at near 10% in 2006, at the height of Hugo Chavez’s “Bolivarian






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revolution”, contracted 14.3% in 2018. Almost 90% of the country’s population is living in poverty, while per capita income has been falling since 2014. Amid this crisis, about three million Venezuelans have fled the country, most since 2015. What’s in store?

When Mr. Guaidó declared himself acting President, he may have hoped that he could win over at least sections of Venezuela’s armed forces. He’s unlikely to topple Mr. Maduro as long as the military is loyal to him. Mr. Maduro’s government also has some support among the public, especially the poor, the backbone of the Chavismo government. So the attempts to topple Mr. Maduro are not making headway. On the other side, Mr. Maduro continues to face major challenges. The Opposition has strong support both within and outside the country. And the economic crisis is far from easing. This means the turmoil that has gripped Venezuela is unlikely to ease unless the government and the Opposition find common ground on rebuilding the economy and sharing power. (Adapted from The Hindu)

15. Strange emergency: Donald Trump’s plan to build the Mexico border wall

(Relevant for GS Prelims & GS Mains Paper II; IOBR)

Emergency declaration to make border wall

Declaring a state of national emergency is hardly a trivial decision. While the U.S. has done so in the aftermath of the 9/11 terror attacks and similar exigencies, President Donald Trump has opted for this measure in the context of what he has described as “an invasion of drugs and criminals” from across the border with Mexico. The move has further polarised Washington and put the strident immigration debate front and centre again. Shutdown on border wall

The context for the emergency is the longest federal government shutdown in U.S. history, for 35 days, that resulted in the shuttering of nine government agencies and the furlough of 800,000 government workers. The primary cause was Mr. Trump’s refusal to sign off on Congressional appropriations bills unless lawmakers agreed to hand over $5.7 billion to fund his plan to construct a border wall with Mexico. As the cost to the U.S. economy of the shutdown soared close to $11 billion by late-January, Trump’s resort to emergency

Mr. Trump backed down on his demand, yet warned that unless Congress yielded on the border wall funding, “I will use the powers afforded to me under the laws and the Constitution of the U.S. to address this emergency.” Now he appears to have made good on that statement, probably on the basis that during national emergencies U.S. law permits the diversion of funds from military or disaster relief budgets to tackle the “crisis” at hand. This begs the question of how real the emergency is and why the White House is devoting its considerable political capital to this one policy issue. Mr. Trump frequently alludes to the migration crisis that he believes has engulfed the southern border. It is true that more than 2,000 people were turned away or arrested at






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the border each day during November 2018, numbers that U.S. immigration hawks have seized upon to press the argument for a wall. Yet this figure has decreased considerably over the past decade, and border crossings by undocumented migrants are at an all-time low, down from 1.3 million in 2001 to about 40,000 in 2018. If this is then a purely political move that panders to Mr. Trump’s conservative voter base, it may stand on wobbly legal foundations. Post emergency

Already, the first few lawsuits challenging the emergency declaration are working their way through the courts. Further, Democrats, who now control the House of Representatives, may under their constitutional powers vote to terminate the emergency. This would put the Republican-controlled Senate on the back foot by requiring it to clarify its position on the status quo, by either supporting or defeating such a resolution. While Mr. Trump’s supporters are doubtless celebrating their Commander-in-Chief’s chutzpah for this move, the truth is that it will only take the U.S. further away from the ideal of peaceful coexistence within a pluralistic democracy. (Adapted from The Hindu)

16. India and Pakistan’s water sharing is governed by the Indus Waters Treaty,

which was brokered by the World Bank. Can India abrogate this treaty?

Neither India nor Pakistan can unilaterally abrogate the treaty. Article 12 of the treaty says: “The provisions of this Treaty, or, the provisions of this Treaty as modified under the provisions of Paragraph (3), shall continue in force until terminated by a duly ratified treaty concluded for that purpose between the two governments.” The IWT is about sharing of water of six rivers — Indus, Chenab, Jhelum, Beas, Ravi and Sutlej — between India and Pakistan. The two countries signed it in 1960 under the leadership of the then Prime Minister of India, Jawaharlal Nehru, and Pakistan President, Ayub Khan, and was brokered by the World Bank after nine years of negotiations. Under the treaty, India has control over water flowing in the eastern rivers — Beas, Ravi and Sutlej, while Pakistan has control over the western rivers of Indus, Chenab and Jhelum. (Adapted from The Hindu)

17. On India refusing visa to Pakistani shooters (Relevant for GS Prelims & GS Mains

Paper II; IOBR)

What has happended?

The decision of the International Olympic Committee (IOC) to revoke Tokyo 2020 Olympics qualification status for the men’s 25-metre rapid fire pistol event from the New Delhi shooting World Cup is a controversy Indian sport could have done without. This has come after India refused visas to two Pakistani competitors, in the backdrop of heightened






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bilateral tensions after the terror attack in Pulwama. The IOC has declared that this is against the Olympic Charter’s principles, of which non-discrimination, equal treatment of all athletes and sporting delegations and political non-interference are supreme. What have been repercursions on India?

It is clear that in the clamour to send Pakistan what it perceives to be the right message, India has shot itself in the foot. In the short term, the scrapping of two out of 16 quota places will deny three Indian shooters, including 16-year-old Anish Bhanwala who won the gold in the event at the 2018 Commonwealth Games, an opportunity to make the Olympic grade at home. While the National Rifle Association of India has thanked the IOC for sparing the 14 other places by restricting the withdrawal of recognition to just one event, three Indian shooters, for no fault of theirs, have ended up as collateral damage. What are the long term consequences?

The long-term consequences, however, could be more severe. The IOC, in a strongly worded statement, said that it has decided to “suspend all discussions with the Indian National Olympic Committees and government regarding the potential applications for hosting future sports and Olympic-related events until clear written guarantees are obtained…to ensure the entry of all participants.” This means negotiations regarding India’s potential bids for the 2026 Youth Olympics, 2030 Asian Games and 2032 Olympics are set to go into cold storage. IOC dealings in the past

While it is true that the IOC’s record in dealing with the overlapping worlds of geopolitics and sports is uneven, there have been precedents of strong action in similar cases. Ahead of the 2016 Rio Olympics, the Asian Shooting Championship in Kuwait had its qualification status removed after an Israeli delegate wasn’t granted a visa. Less than a month ago, Malaysia was stripped of the World Para Swimming Championship for turning down visa requests from Israeli participants. Going by experience, beyond feeding into a certain kind of atmospherics, such bans on sportspersons and interactions in international sports events will have no meaningful effect. (Adapted from The Hindu)

18. Pulwama attack and Indus Waters Treaty: does India hold all the cards?

(Relevant for GS Prelims & Mains Paper II; IOBR)

The pact has survived wars, but Nitin Gadkari has now asked officials to see if there were ‘technical ways’ to stop the flow of water that belongs to Pakistan.

Is the announcement by Water Resources Minister Nitin Gadkari that India would

use up its share of waters in the rivers flowing to Pakistan a new one?

That India would use the entire share of water allotted to it under the Indus Waters Treaty, has been the government’s traditional position. Then, in the aftermath of the Uri attack that






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claimed the lives of at least 20 Indian soldiers, Prime Minister Narendra Modi had declared that “blood and water” couldn’t flow together and suspended India’s participation in the Permanent Indus Commission, where India and Pakistan regularly meet to discuss sharing of waters in the Indus river basin system. Among the decisions taken at the time was one to “fully utilise” India’s share of water. Work has progressed towards this end, according to the government. (The Indus commission talks too have resumed). In the aftermath of Mr. Gadkari’s tweets of February 21, to “stop India’s share of water” into Pakistan, Neeta Prasad, a spokesperson in the Union Water Resources ministry, told presspersons that “this is not a new decision… Mantriji [Minister] is simply reiterating what he has always said.” How many dams is India planning to build to ensure that it uses up all of its share of

the water?

India already utilises 95% of the 33 MAF (million acre feet) allotted to it under the norms of the Indus Waters Treaty. To consume the entire share, the government has undertaken steps to stop the flow of almost 2 MAF from the Ravi river, from Madhopur. These include completing the Shahpurkandi project, constructing the Ujh multipurpose project — to create 781 million cubic metre storage on the Ujh, a tributary of the Ravi — and developing the second Ravi-Beas link below Ujh. The last project alone will utilise 0.58 MAF of surplus water below the Ujh dam by diverting the same to Beas basin. All three are ‘national projects.’

Is the Minister’s statement intended to pile up the rhetoric on Pakistan?

Yes. While it has been India’s stated position to fully utilise its eastern rivers, Mr. Gadkari said on Friday that he had asked officials in the Water Resources Ministry to see if there were “technical ways” to stop the flow of Indus water that rightfully belong to Pakistan. One way — again an option that India has already exercised — is its construction of the Kishenganga Project, on the Jhelum and the Ratle project on the Chenab. Both of these are projects on the western rivers and under provisions of the Indus treaty, may be exploited by Pakistan. However, the treaty also allows India to use the water from these rivers in a “non-consumptive way” — that is, in a way that does not impede the flow of these rivers into Pakistan. Pakistan has objected to both these projects on the grounds that they do impede the flow. In theory, it is possible for India to violate the treaty and impede the flow of these waters in such a way that it makes hydropower projects by Pakistan on the Jhelum and Chenab unviable (as Pakistan already claims it does). However, the IWT has survived wars between India and Pakistan and it’s still speculative if the Pulwama incident rankles India enough to consider violating the treaty. India and Pakistan’s water sharing is governed by the Indus Waters Treaty, which

was brokered by the World Bank. Can India abrogate this treaty?

Neither India nor Pakistan can unilaterally abrogate the treaty. Article 12 of the treaty says: “The provisions of this Treaty, or, the provisions of this Treaty as modified under the provisions of Paragraph (3), shall continue in force until terminated by a duly ratified treaty concluded for that purpose between the two governments.” The IWT is about sharing of water of six rivers — Indus, Chenab, Jhelum, Beas, Ravi and Sutlej — between India and Pakistan.






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The two countries signed it in 1960 under the leadership of the then Prime Minister of India, Jawaharlal Nehru, and Pakistan President, Ayub Khan, and was brokered by the World Bank after nine years of negotiations. Under the treaty, India has control over water flowing in the eastern rivers — Beas, Ravi and Sutlej, while Pakistan has control over the western rivers of Indus, Chenab and Jhelum. (Adapted from The Hindu)

19. FATF advisory to Pakistan (Relevant for GS Prelims & Mains Paper II; IOBR)

Advisory to Pakistan

The statement of the Financial Action Task Force in Paris is another message to Islamabad from the international community of the mounting costs of its decades-old lax policy towards terror groups. Significantly, it came a week after the February 14 Pulwama attack, and the global terror finance watchdog condemned, in no uncertain terms, the suicide bombing of the CRPF convoy that left 40 personnel dead. It issued a 10-point advisory to Pakistan if it wants to be out of the “grey list” of countries posing a “risk to the international system”. May be shofted to black list

Pakistan has been on the grey list since June 2018, and will be required to show compliance or face being “black-listed” by the session in October 2019. The first deadline to show results is May 2019, with a review in June. A black-list would mean enhanced financial scrutiny of its government, possible sanctions against its central bank, and a downgrade of its financial and credit institutions. FINANCIAL ACTION TASK FORCE

The Financial Action Task Force (FATF) is an intergovernmental body established in 1989. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the international financial system. The FATF is therefore a ‘policy-making body’ which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. The FATF has developed a series of recommendations that are recognized as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction. They form the basis for a co-ordinated response to these threats to the integrity of the financial system and help ensure a level playing field. First issued in 1990, the FATF Recommendations are revised to remain relevant and are intended to be of universal application. The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In






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collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse. The FATF’s decision-making body, the FATF Plenary, meets three times per year. Membership

Thirty-five nations including India and two regional organizations namely European Union and Gulf Cooperation Council are members of FATF. FATF Lists

The FATF publishes ‘grey list’ for jurisdictions with weak measures to combat money laundering and terrorist financing. It also publishes ‘black list’ for jurisdictions which are non-cooperative in the global fight against money laundering and terrorist financing. These lists are issued three times a year. As of February 2018, the FATF has reviewed over 80 countries and publicly identified 65 of them. Of these 65, 53 have made the necessary reforms and have been removed from the lists. (Adapted from The Hindu and background PrepMate-Cengage IOBR Book)

20. ICICI Bank sacks Chanda Kochhar (Relevant for GS Mains Paper III; Economics)

What has the ICICI bank decided?

The ICICI Bank has decided to terminate the contract of former managing director and CEO, Chanda Kochhar after the B.N. Srikrishna panel found that she violated the bank’s code of conduct. The bank also said there would be a clawback of bonuses paid between 2009 and 2019. What were the findings of the panel?

In June last year, the bank formed the one-member panel, assisted by a law firm, to look into the allegations of conflict of interest against Ms. Kochhar in relation to a loan given to Videocon Industries. The Srikrishna panel report concluded that primarily on account of ineffectively dealing with conflict of interest and due disclosure or recusal requirements, Ms. Kochhar was in violation of the ICICI Bank Code of Conduct, its framework for dealing with conflict of interest and fiduciary duties, and in terms of applicable Indian laws, rules and regulations. What are the implications for Ms. Kochhar?

Ms. Kochhar, who assumed charge as MD and CEO on May 1, 2009, resigned in October last year. The bank board, which discussed the report on Wednesday, decided to treat the separation of Ms. Kochhar from the bank as a ‘Termination for Cause’, with all attendant consequences, which included revocation of all her existing and future entitlements, like






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any unpaid amounts, unpaid bonuses or increments, unexercised stock options, and medical benefits, and requires the clawback of bonuses from April 2009 until March 2018. The bank said there are no implications of the report on its published financial statements. (Adapted from The Hindu)

21. RBI lifts curbs on three PSBs (Relevant for GS Prelims, GS Mains Paper III;

Economics)

The Reserve Bank of India (RBI) has decided to allow three public sector banks — Bank of India, Bank of Maharashtra and Oriental Bank of Commerce — to exit the PCA framework following capital infusion by the government and a decline in net non-performing asset ratio. Findings of RBI

The RBI, which conducted a review following a demand made by government to lift the restrictions in order to boost credit growth, said, “it was noted that a few banks are not in breach of the PCA (Prompt Corrective Action) parameters as per their published results for the quarter ending December 2018, except for return on assets (RoA).” “However, though the RoA continues to be negative, the same is reflected in the capital adequacy indicator,” it added. What is PCA?

1. What is Prompt Corrective Action?

To ensure that banks don't go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled. The process or mechanism under which such ac tions are taken is known as Prompt Corrective Action, or PCA. 2. Why the need for PCA

The 1980s and early 1990s were a period of great stress and turmoil for banks and financial in stitutions all over the globe. In USA, more than 1,600 commercial and savings banks in sured by the Federal Deposit Insurance Corporation (FDIC) were either closed or given financial assis tance during this period. The cumulative losses incurred by the failed institutions exceeded US $100 billion. These events led to the search for appropriate supervisory strategies to avoid bank failures as they can have a destabilising effect on the economy . 3. Too big to fail?

Due to the adverse impact on the economy , medium sized or large banks are rarely closed and the governments try to keep them afloat. Bank rescues and mergers are far more common than outright closures. If banks are not to be allowed to fail, it is essential that corrective action is taken well in time when the bank still has adequate cushion of capital to minimise the losses.






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4. What does the RBI stipulate?

RBI has set trigger points on the basis of CRAR (a metric to measure balance sheet strength), NPA and ROA. Based on each trigger point, the banks have to follow a mandatory action plan. Apart from this, the RBI has discretionary action plans too. The rationale for classifying the rule-based action points into “mandatory“ and “discretionary“ is that some of the actions are essential to restore the financial health of banks while other actions will be taken at the discretion of RBI depending upon the profile of each bank. 5. What will a bank do if PCA is triggered?

Banks are not allowed to re new or access costly deposits or take steps to increase their fee-based income. Banks will also have to launch a special drive to reduce the stock of NPAs and contain generation of fresh NPAs. They will also not be allowed to enter into new lines of business. RBI will also impose restrictions on the bank on borrowings from interbank market. (Adapted from The Hindu)

22. ‘Unemployment data based on draft report’ (Relevant for GS Prelims, GS Mains

Paper III; Economics)

NITI Aayog officials debunk media report of 6.1% joblessness

The government’s think tank NITI Aayog debunked claims of a news report that unemployment in 2017-18 was at a 45-year high. The NITI Aayog said the report of the National Sample Survey Office (NSSO), cited as the source for the report, was in fact a draft and not approved by the government. NSSO draft report

A report in the Business Standard, which cited the NSSO’s periodic labour force survey — that is yet to be released — said the unemployment rate was 6.1% in 2017-18. The only year of comparable data when the unemployment rate was higher was in 1972-73. It was at 2.2% in 2011-12. The NSSO report is a matter of much controversy, with the two external members of the National Statistical Commission citing the delay in its release as a major reason for their resignations. Urban and rural comparisons

The data reportedly showed that joblessness was higher in urban India (7.8%) than in rural India (5.3%). Within this, it stood at 17.4% for rural males and 13.6% for rural females. In urban India, joblessness was at 18.7% among males and a huge 27.2% among females. Labour force participation rate

Importantly, the data reportedly showed that the labour force participation rate (LFPR), the measure of people working or looking for jobs, declined from 39.5% in 2011-12 to 36.9% in 2017-18. This phenomenon — of unemployment rising while the LFPR dipped —






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is a cause for serious worry, experts say, explaining that it probably shows that people are simply giving up on finding jobs and have stopped seeking work. (Adapted from The Hindu)

23. What is the lowdown on MGNREGA funding? (Relevant for GS Prelims, GS Mains


What is it?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme has been allocated ₹60,000 crore in the Budget for 2019-20. It is less than what was spent on the scheme in the current year, that is, the revised estimate for 2018-19, which stands at ₹61,084 crore. In his Budget speech, Finance Minister Piyush Goyal noted: “Additional amount would be provided, if needed.” The original 2018-19 Budget allocation for the scheme, a lifeline for landless labourers and rural workers, was ₹55,000 crore. However, by the end of 2018, 99% of the funds had been exhausted. A number of States already had a negative net balance. The activists protested that people were being denied work in several States. The Rural Development Ministry, which administers the scheme, asked for a supplementary allocation and was granted ₹6,084 crore in early January, taking the revised estimate for the year to ₹61,084 crore. How did this come about?

A look at the funding patterns over the last decade shows this is not the first time allocations for the scheme are lower than what was spent in the previous year. In most years, supplementary allocations later in the year have ensured that the final amount spent has risen at least incrementally each year. However, the revised estimates for 2012-13 were actually lower than the previous year, while the amount spent in 2014-15 was exactly the same as in the previous year. When MGNREGA funding is adjusted for inflation, a bleaker picture appears, making it clear that both the UPA and NDA governments have short-changed the scheme for several years now. In 2011-12, the revised estimate was ₹31,000 crore. For the next four years, the inflation-adjusted amount spent on the scheme was lower than ₹30,000 crore in 2011 terms. The current allocation of ₹61,084 crore drops to just ₹41,013 crore in 2011 terms, when adjusted for inflation using the Consumer Price Index for rural labourers. Why does it matter?

Rural workers are being discouraged from registering with the scheme, being denied work even when they do register, and are facing long delays in payment of wages even when they do get work. Researchers, activists and elected representatives blame this on the lack of sufficient funding. The promise of the MGNREGA is to enhance livelihood security by providing at least 100 days of wage employment a year to households that want it. If work is not provided within 15 days, applicants are entitled to an employment allowance. Thus, work is a legal entitlement under the scheme and funding should be demand-driven. However, researchers have found a widening gap between demand and supply of work. A study of 3,500 panchayats in 2017-18 found that the employment provided was 32% lower






26



than the work demand generated. Researchers calculated that in order to meet the registered work demand last year, the scheme should have had an allocation of ₹76,131 crore. Workers are also facing weeks- and months-long delays in payment of wages, often without compensation. Finance Ministry documents admit that one of the causes is the non-availability of funds. What lies ahead?

The future funding situation is bleak, given that the government’s “highest ever allocation” tag disguises the pending liabilities. If the total allocation of ₹61,084 crore had come through on the budget day, the scheme would still have a negative net balance of ₹3,270 crore, according to its financial statement on February 1. The next two months are the peak season, and workers have been promised an additional 50 days of work in drought-hit areas. Researchers predict that the deficit could grow as high as ₹12,000 crore by the end of this financial year. With Central money running out, States have also been asked to use their own funds to pay workers over the next two months, with the promise of an April refund. These deficits and liabilities will eat into the allocation for next year, slashing the amount available for new works in 2019-20. (Adapted from The Hindu)

24. All you need to know about Maharashtra’s struggle to amend APMC Act (Relevant

for GS Prelims, GS Mains Paper III; Economics)

The Maharashtra government’s attempt to amend the Maharashtra Agriculture Produce Marketing (Development and Regulation) Act, 1963, has hit a roadblock again. It had to withdraw the Bill from the Legislative Council even after it was passed by the Assembly. The amendment Bill has been in the works for over 14 years and owing to its politically and economically important stakeholders, who are farmers, traders and ‘mathadi’ workers (head loaders), the government has struggled to push through the changes. What is the problem?

After it was passed in the Assembly last November, the Mumbai and Pune APMCs called a strike, alleging that the proposed amendment severely limited their powers. One of the important amendments the Bill seeks to bring about is to free essential items from the purview of APMCs and allow them to be sold outside. Farmer organisations such as the Shetkari Sanghatana, formerly led by Sharad Joshi, support this amendment. “Sharad Joshi always said that the APMC Act is one of the main reasons why farmers are prey to the monopoly of traders,” said Anil Ghanvat, president of Shetkari Sanghatana. What are the changes?

The Bill also has a provision that the APMCs can continue to levy cess/market fee on the produce brought and traded in their mandis, but cannot charge anything on goods traded outside. The traders’ lobby had said no levy should be charged if the produce was sold outside. Following the meeting between the stakeholders and the government, sources said






27



a compromise was reached to abolish this levy altogether. One of the amendments that was opposed by traders and farmer organisations was the direct payment to farmers from traders for purchase of more than ₹2 lakh, bypassing the Adta (the middleman). According to both, the Adta plays an important part as an assurer to both parties, and eliminating his role would be harmful to traders as well as to farmers. Maharashtra is the second State after Bihar to attempt such amendments. While Bihar scrapped it altogether, Maharashtra is trying to do the same, by first allowing traders or processors to deal directly with farmers. Neither they nor the farmers will have to go to the APMC yards to buy and sell their produce. The buyers can directly buy from farmers based on the price quoted by them. Unable to get the Bill cleared in both Houses of the Legislature, the government in August 2016 de-listed fruits and vegetables from the purview of the APMC through a resolution. Further, it was expanded to all farm products. Apart from the government claim that farmers will get a better price after the amendment, it believes that the competitive environment will help the APMCs improve their infrastructure as well as their quality of service to attract farmers. According to Mr. Ghanavat, farmers will go to the market which gives them a better price, be it private buyers or the APMCs. How many APMCs are there?

Maharashtra has 306 APMCs. The APMC Act had made it mandatory for farmers to sell all their crops in the mandi within a geographically delineated market area under a particular committee’s jurisdiction. A few lakh traders and head loaders survive on these committees. It is alleged that local political interests drive all the decisions taken by the APMCs. The supporters of the Bill claim that political compulsions have forced successive governments not to push for the amendments. Shashikant Shinde, leader of the head loaders and one of the MLAs opposing the Bill, said it is being introduced to serve the interests of multinational companies. According to him, the APMCs provide a mechanism which ensures at least a minimum support price for the farmers’ produce, and outside the APMCs, farmers will be forced to sell at a price quoted by companies. The State government will continue to hold meetings with the stakeholders, and is likely to present the Bill, approved by all, in the budget session from February 24. (Adapted from The Hindu)

25. Delay in releasing key employment data has undermined the credibility of data

officialdom (Relevant for GS Prelims, GS Mains Paper III; Economics)

Resignations from National Statistical Commission

The resignations of the National Statistical Commission’s acting Chairperson P.C. Mohanan and member J.V. Meenakshi appear linked to the Centre’s refusal to release new data on employment that were due to be made public in December 2018.






28



What is the information on unemployment?

They could also be related to unease about the recently unveiled back-series data on the economy, which recorded slower growth during the UPA-led government’s rule, and were released by the NITI Aayog bypassing convention and the commission’s views. Reports suggest that the findings of the new Periodic Labour Force Survey, for July 2017-December 2018, are not too flattering, with unemployment registering a five-decade high. The government has said no such reservations were expressed by Mr. Mohanan or Dr. Meenakshi during NSC meetings and that the report will be released after ‘quarterly’ data for the survey period is processed. What is the role of NSC?

A key role of the NSC, set up in 2006, is to verify whether data being put in the public domain are reliable and adequate. Information has been collected and disseminated by successive governments under laid-down schedules, earning Indian data greater global trust than most other emerging market peers, especially China. Questions on government

On the question of job-creation for the youth, the Prime Minister and his Cabinet have been building an argument that jobs abound, but credible data are missing. The National Sample Survey Organisation’s quinquennial employment surveys were to be conducted in 2016-17. The year was switched to 2017-18 as the new Labour Force Survey was being prepared to replace it. Separately, a quarterly survey of select employment-intensive sectors initiated by the Labour Bureau after the 2008 global financial crisis, that provided some clarity on ground realities, was inexplicably junked. Instead, proxy data from enrolments into social security schemes for formal sector employees are being touted as a sign of job-creation: economists have rightly called them out as inaccurate. Even then, Arun Jaitley, in his last year’s Budget speech, cited ‘an independent study’ to claim seven million formal jobs will be created in 2018-19. The Centre for Monitoring Indian Economy has pegged job losses in 2018 at 11 million based on its regular employment surveys. The government’s coy approach to jobs-related data may be due to its disastrous demonetisation gambit which hurt supply chains and informal jobs in the economy and whose effects have lingered. Contrast this with the NSSO surveys of 2009-10 that revealed little good news on household incomes and job-creation, thanks to after-effects of the global financial crisis. The UPA didn’t dither from releasing the data, took criticism on its chin, explained it was an exceptional situation and commissioned another set of surveys in 2011-12 to correct for the timing. The Modi government should have treaded the same path without upending India’s statistical integrity. (Adapted from The Hindu)

26. U.K. Home Secretary orders Vijay Mallya’s extradition to India (Relevant for GS

Prelims, GS Mains Paper III; Economics)






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14 days for appeal

British Home Secretary Sajid Javid has signed the order for the extradition of liquor baron Vijay Mallya to India. The businessman — whose legal team had previously indicated their intention to appeal the extradition — will now have two weeks to lodge an appeal. Vijay Mallya faces charges of money laundering and fraud in India. What are the rules in Britain?

Under Britain’s extradition rules, Mr. Javid had two months from the date of the judgement to determine whether to order the extradition. The signing of the order on February 3 came just a few less than two-month window from the date of judgement — December 10, 2018 — within which a decision had to be made. What were the considerations?

In making extradition decisions, the Minister has to consider issues including whether the death penalty would be involved or the person be extradited to a third country (neither of which would apply in this case).

What are the options with Mr. Mallya?






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Should the appeal to the High Court fail, Mr. Mallya would still have further opportunities to attempt to overturn the extradition order, by seeking permission to appeal to the Supreme Court, though that could only take place if the High Court certified that the appeal involved a “point of law of general public importance, and either the High Court or the Supreme Court gives leave for the appeal to be made.” (Adapted from The Hindu)

27. Pension for informal workers (Relevant for GS Prelims, GS Mains Paper III;

Economics)

The government has allocated only ₹500 crore for the scheme What is the scheme?

A major announcement in the Interim Budget 2019-20 was the creation of the Pradhan Mantri Shram Yogi Mandhan, a pension scheme for informal workers. Under this scheme,

subscribers will receive an assured monthly pension of ₹3,000 per month from the age of

60 onwards. Towards this, they will have to contribute ₹55 a month (if they join at the age

of 18 years), or ₹100 a month (if they join at the age of 29 years). The government will match these contributions. The government has reportedly set a cap on the age of joining at 40 years, but this is yet to be officially confirmed by the Labour Ministry. Whom does it include?

In his Budget speech, Finance Minister Piyush Goyal said half of India’s GDP comes from the work done by 42 crore workers in the unorganised sector, such as street vendors, rickshaw pullers, construction workers, rag pickers, agricultural workers, beedi workers, those engaged in the handloom and leather industries, and domestic workers. He said the government must provide these workers with a “comprehensive social security coverage” in their old age. The Shram Yogi Mandhan scheme is aimed at achieving that, and therefore

includes all informal sector workers with an income of less than ₹15,000 per month. According to the government, this works out to 10 crore people. Finance Ministry officials have suggested that the pension payouts could be made directly in the workers’ accounts, which would be Aadhaar-linked. What will the government spend?

So far, the government has allocated just ₹500 crore for the scheme, but this is likely to be increased in the full Budget that will be presented in July. An analysis of the Interim Budget documents shows that the allocation for the Pradhan Mantri Shram Yogi Mandhan could possibly come at the expense of an existing pension scheme — the National Social Assistance Programme (NSAP) — announced last year to benefit more than three crore poor senior citizens, disabled people, and widows.

The NSAP had originally been allocated ₹9,975 crore in the 2018-19 Budget, which was

reduced to ₹9,200 crore in the Interim Budget 2019-20, which is a drop of ₹775 crore.






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Will the scheme work?

Social sector workers have pointed out that creating a voluntary contributory pension scheme for informal sector workers is not likely to work as their salaries are low. The argument is that they already pay large amounts as indirect taxes. Further, for a salaried worker, the pension contribution can be cut from the salary. A daily wage earner or migrant labourer will, however, have to regularly deposit her income each month, which is an uncertain proposition. What lies ahead?

The government is silent on what happens to the scheme if an informal sector worker misses a contribution. Does the worker become disqualified from the scheme? If so, what happens to the amount already contributed? Will the government refund the worker that amount, or will that amount be forfeited? Another matter to be considered is what happens to a worker who transitions to the formal workforce. Answers are awaited on all these questions. (Adapted from The Hndu)

28. The lowdown on Mallya’s extradition (Relevant for GS Prelims, GS Mains Paper

III; Economics)

What is it?

Earlier this week, Britain’s Home Secretary Sajid Javid signed the order for Vijay Mallya’s extradition to India to face charges of fraud and money laundering, following the judgment handed down by Westminster Magistrates Court Chief Magistrate Emma Arbuthnot in December. She concluded there was a prima faciecase against Mr. Mallya, rejected the argument that the case was politically motivated, and labelled him a “glamorous, flashy, famous, bejewelled, bodyguarded, ostensibly billionaire playboy.” India wants to bring criminal action against Mr. Mallya, whose business interests have ranged from aviation to liquor, for defaulting on over $1.4 billion in loans Kingfisher took out from Indian banks. Authorities argue misrepresentations were made to acquire those loans, while Mr. Mallya had no intention of repaying them and sought to squirrel away funds and use them in ways that were not permitted by the terms of the loans. However, the ample opportunities for appeal available to Mr. Mallya — who has indicated his intention to pursue them — means the entire process could take another two years, estimates Pavani Reddy, managing partner at Zaiwalla & Co. in London. Will he be allowed to appeal?

The signing of the order means the appeal process can now be kick-started. Mr. Mallya has two weeks from the signing of the order to seek permission to appeal to the High Court, at which stage that application will be considered by the judge on paper over a 21-day to 3-month period, explains Ms. Reddy. If he manages to get permission to appeal, the appeal process should begin within 76 days, though with options for seeking extensions available to both sides, the appeal could take 6-8 months to begin with. If — following the paper






32



consideration — the judge denies permission to appeal, Mr. Mallya can push for an oral hearing, which could add a further three months to the process. If at this stage, permission is still refused that would end his appeal options. How long will the process take?

He can seek permission to appeal to the Supreme Court — at first instance from the High Court, and if unsuccessful he can seek permission from the Supreme Court itself. If successful at this stage, he would have 28 days to file an appeal, with the ensuing appeal taking over 6-9 months more, estimates Ms. Reddy. He could apply as a last resort to the European Court of Human Rights though such appeals are only granted in very rare cases, she notes. In 2014, only 4 of 833 applications for appeal were granted. The 2003 Extradition Act says he must be extradited within 28 days of the court of appeal’s decision (or when appeal proceedings are discontinued). If the deadline (including any extension) is passed without the extradition happening, he could apply to be discharged from extradition, unless the Home Office could provide a good reason for any delay. What can India do?

While the applications for permission to appeal can’t be speeded up, an expedited appeals process can be requested if leave is granted, which would involve pushing for an early date in the court’s diary. Grounds, of course, vary significantly, and include suggestions that the person is being pursued for political motivations because of race or religion and so on. Others include the passage of time, and rules against double jeopardy. While it is not common for extradition appeals to succeed, last year India successfully appealed a Westminster Magistrate Court’s ruling that discharged the alleged bookie Sanjeev Chawla, who India had been seeking to extradite over the 2002 cricket match fixing scandal. As per the guarantees offered to the Chief Magistrate, if Mr. Mallya is extradited, he will be held in Barrack 12 of the Arthur Road Jail in Mumbai — with certain assurances of space, daylight and medical facilities — both ahead of any trial and after any conviction. (Adapted from The Hindu)

29. Shrinking air links in NorthEast (Relevant for GS Prelims, GS Mains Paper III;

Economics)

The day Prime Minister Narendra Modi laid the foundation for the first civilian airport in Arunachal Pradesh, Jet Airways operated its last flight on the Guwahati-Aizawl route. By withdrawing from Mizoram, the private airliner joined an expanding list of flight operators that have suspended operation from new and existing routes in the geographically challenged northeastern region. This has undermined New Delhi’s ambitious flagship regional connectivity scheme UDAN, an acronym for the Hindi phrase Ude Desh ka Aam Naagrik meaning ‘let the common man fly.’ Why was the flight terminated?






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Mizoram’s Lengpui Airport, 32 km from the capital Aizawl, took a little more than two years to be completed in February 1998. It soon became the busiest airport in the region after the ones in Assam’s Guwahati, Manipur’s Imphal and Tripura’s Agartala. But the airlines began withdrawing operations for reasons such as safety, maintenance and viability. If an accident made Northeast Shuttles stop its Cessna flights in 2011, losses made Kingfisher Red withdraw a year later. Air India ended its Guwahati-Aizawl flights as did SpiceJet in less than a year after its inaugural flight in October 2016. Jet Airways, once the only private airline flying to and from northeastern India, withdrew from Aizawl on February 10. The airline attributed it to non-viability of the route because of fuel price rise, a depreciating rupee and a difficult pricing environment. Is only Mizoram affected?

No. Jet Airways withdrew from Imphal and Assam’s Silchar and Jorhat, along with Aizawl. Much before the first round of UDAN was launched in April 2017, private airlines had withdrawn from Nagaland’s Dimapur. The Hyderabad-based Air Deccan, which won exclusive rights in the UDAN bidding to connect Meghalaya capital Shillong to Aizawl, Agartala, Silchar, Dimapur and Imphal, operated only 10 flights to Agartala and Dimapur in May 2018. The Delhi-based Zoom Air operated between Assam’s Tezpur and Kolkata for only three months, till July 2018, before withdrawing owing to “technical issues.” And from September 1, 2018, SpiceJet suspended its operation from Agartala, six years after Jet Airways and a few other small airlines had withdrawn. Has the demand gone down?

According to Zoliana Chhakchhuak, Aizawl-based head of a regional tour operators’ association, viability is often cited by airliners, despite a passenger occupancy rate of 60-70% in most flights, and more people in the region flying than ever before. While some of the smaller airports have flights connecting Kolkata and Delhi, the withdrawal of service to and from Guwahati — the hub of communication in the region — is expected to affect tourism, a sector that has capitalised on peace in the region. Airliners and the Airports Authority of India (AAI) agree that the passenger volume has doubled in the last five-six years from Guwahati and other popular airports in the region. But improved road and rail connectivity, they said, have become a bane for smaller airports. For instance, a two-hour drive brings a passenger from Shillong and an overnight train trip brings one from Dimapur to Guwahati. Where is connectivity headed?

The Ministry of Civil Aviation announced the opening of 92 air routes in the region in the second round of UDAN in November 2017. Bidders snapped up six airports – Rupsi, Jorhat, Lilabari and Tezpur in Assam, and Tezu and Pasighat in Arunachal Pradesh — and 12 routes, of which only two are operational. These are Jorhat-Kolkata and Lilabari-Kolkata serviced by Indigo Airlines and SpiceJet. Rupsi and Tezu are yet to be operational, while Pasighat is the only new airport to have come up under the regional connectivity scheme.






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In May 2018, Air India started a flight between Guwahati and Pasighat in Arunachal Pradesh with VIPs, including Chief Minister Pema Khandu, on board. The militarily strategic airport, which allows Sukhoi 30 to land and take off, has had very few civilian flights. AAI officials say UDAN, in its current form, is difficult for smaller airliners to sustain. Aviation experts say the scheme has not been able to add wings because it is aimed more at reaping political benefits than increasing connectivity. Furthermore, it does not have enough incentives for airlines to ignore the issue of viability. (Adapted from The Hindu)

30. RBI to pay govt. ₹28,000 cr. in interim surplus (Relevant for GS Prelims & Mains


Amount of surplus to be transferred

Reserve Bank of India announced that it would transfer ₹28,000 crore to the Centre as interim surplus for the half-year ended December 2018. This will take the Centre’s total receipts from the RBI as surplus transfer in 2018-19 to

₹68,000 crore. The central bank had earlier paid ₹40,000 crore to the government as its final share of surplus for 2017-18. The RBI follows July-June accounting year. This is second consecutive year that the central bank has transferred interim surplus to the government. Importance of Surplus

The interim surplus transferred by the RBI now is crucial to the Centre’s ability to meet the revised fiscal deficit target of 3.4% for this fiscal. Background

Sources indicate the system of audit of balance sheet twice a year would be continued for the coming years also in order to decide on the interim surplus. Last year, RBI had

transferred ₹10,000 crore as interim surplus. The government had been putting pressure on the central bank to transfer more funds from the contingency reserves. A panel, headed by former RBI Governor Bimal Jalan, had been formed to review the economic capital framework of the bank. (Adapted from The Hindu)

31. Easing global Oil Prices (Relevant for GS Prelims & GS Mains Paper III;

Economics)

Why has inflation been falling?

Inflation at both the retail and wholesale levels has been falling for the last 4-5 consecutive months. Inflation as measured by the Consumer Price Index (CPI), which captures retail inflation, and the Wholesale Price Index (WPI) has been falling in general for the last year or so. The CPI, for example, was as high as 5.21% in December 2017, following which it fell






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quite steadily (except for a mid-year blip in 2018) till it reached 2.05% in January 2019, the lowest it has been in 19 months. The WPI has similarly seen an overall decline, but has been more volatile than the CPI. The main reason why inflation has been falling is the drop in global oil prices. After rising in the middle of 2018 to average $80 a barrel in October, the Indian basket of crude oil prices fell to $57 a barrel in December 2018. It was $59 in January 2019. Prices in February have been slightly higher than that, but the increase is not much. What does this mean for the economy?

The nature of the Indian economy is such that a change in oil prices has knock-on effects on almost every sector such as food, manufacturing, transport and infrastructure. Any sector that uses fuel or energy as an input is affected by global oil prices because India is still overwhelmingly dependent on imported oil to meet its needs. When global oil prices fall, inflation falls across the board, most notably in energy-intensive sectors. And within this, falling prices in each of these sectors have an impact on the other sectors dependent on them. For example, falling inflation in the transport sector means that every sector that needs to transport goods will also benefit. Another aspect of falling inflation is that the Reserve Bank of India has more leeway to go easy on interest rates, one of its key inflation targeting tools. In its last Monetary Policy Review, the central bank cut the benchmark interest rate by 25 basis points. Some experts feel there is scope for even more cuts. Politically, low and falling inflation is always to the benefit of the government. This is especially noteworthy in the run-up to the general election. In contrast, the CPI inflation averaged about 7.6% in the three months leading up to the 2014 elections. Why do WPI and CPI inflation diverge?

Economists have pointed out the divergence for quite some time now. The main reason behind it is that the two indices measure different products and assign each of the categories different weights in the calculation of the overall index. This divergence has intensified since the implementation of the Goods and Services Tax because the new tax system affects retail inflation far more than it does wholesale inflation, since it is included in the final price of the product. What is the outlook ahead?

The outlook on oil prices is a stable one. The consensus is that crude oil prices will remain in the range of $55-65 a barrel for the next three to four quarters. Given how important this is for inflation in India, experts feel retail inflation will remain subdued at 2-3% and wholesale inflation at 3-4% in the near future. (Adapted from The Hindu)






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32. Safety nets: on banning unregulated deposit schemes (Relevant for GS Prelims &

Mains Paper III; Economics)

The savings of low-income Indian households have traditionally remained unprotected by the government when compared to those of the more affluent economic groups. But that may be about to change now. New ordinance on banning of Unregulated Deposits

President Ram Nath Kovind promulgated the Banning of Unregulated Deposit Schemes Ordinance, which bars all deposit schemes in the country that are not officially registered with the government from either seeking or accepting deposits from customers. What are the provisions of ordinance?

1. The ordinance will help in the creation of a central repository of all deposit schemes under operation, thus making it easier for the Centre to regulate their activities and prevent fraud from being committed against ordinary people. 2. The ordinance allows for compensation to be offered to victims through the liquidation of the assets of those offering illegal deposit schemes. What was need of ordinance?

Popular deposit schemes such as chit funds and gold schemes, which as part of the huge shadow banking system usually do not come under the purview of government regulators, have served as important instruments of saving for people in the unorganised sector. But these unregulated schemes have also been misused by some miscreants to swindle the money of depositors with the promise of unbelievably high returns in a short period of time. The Saradha chit fund scam in West Bengal is just one example of such a heinous financial crime against depositors. The Centre’s latest attempt to curb unregulated deposit schemes through an ordinance reflects a timely recognition of the need for greater legal protection to be offered for those depositors with inadequate financial literacy. Requires proper implementation

While the intent of the ordinance, which is to protect small depositors, is indeed commendable, the benefits that depositors will eventually derive from the new legislation will depend largely on its proper implementation. For one, policymakers will have to make sure that the bureaucrats responsible for the on-ground implementation of the ordinance are keen on protecting the savings of low-income households. There must also be checks against persons in power misusing the new rules to derecognise genuine deposit schemes that offer useful financial services to customers in the unorganised sector. In fact, in the past there have been several cases of politicians acting in cahoots with the operators of fraudulent deposit schemes to fleece depositors of their hard-earned money. Another potential risk involved when the government, as in this case, takes it upon itself to guarantee the legitimacy of various deposit schemes is that it dissuades depositors from conducting the necessary due diligence before choosing to deposit their money. The






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passing of tough laws may thus be the easiest of battles in the larger war against illicit deposit schemes. (Adapted from The Hindu)

33. GST on under-construction flats, affordable housing slashed by 7% (Relevant for

GS Prelims & Mains Paper III; Economics)

What will be new rates?

In a big relief to home buyers, the GST Council slashed tax rates on under-construction housing properties to 5% without input tax credit, from the existing 12%. The Council also cut GST rates on affordable housing to 1% from the current 8% and expanded the scope of affordable housing to those costing up to ₹45 lakh and measuring 60 sq. metre in metros and 90 sq. metre in non-metro cities. The new tax rates will come into effect from April 1, 2019. However, builders will not be able to claim input tax credit (ITC) under the new GST rates. What are the Current rates?

Currently, the GST is levied at 12% on payments made for under-construction properties or ready-to-move-in flats where completion certificate has not been issued at the time of sale. However, Goods and Services Tax (GST) is not levied on real estate properties for which completion certificate has been issued at the time of sale. GST rate on lotteries

With regard to lotteries, the GST Council, however, deferred its decision. Currently, state-run lotteries attract 12% GST, while state-authorised ones attract 28%. (Adapted to The Hindu)

34. RBI takes 3 banks off prompt corrective action framework (Relevant for GS

Prelims & Mains Paper III; Economics)

Banks out of PCA

Three more banks — Allahabad Bank and Corporation Bank, from the public sector, and Dhanlaxmi Bank from the private sector — are now out of the Reserve Bank of India’s (RBI) prompt and corrective action (PCA) framework. Earlier, such restrictions were taken off Bank of India, Oriental Bank of Commerce and Bank of Maharashtra. Six more under PCA

There are another six banks that are still under PCA framework. Basis for taking off from PCA






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While lifting the restrictions on the State-run lenders, RBI said the Board for Financial Supervision (BFS) reviewed the performance of the banks under PCA and noted that these two banks had received capital infusion from the government. “This has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with,” RBI said. Allahabad Bank and Corporation Bank had received capital of ₹6,896 crore and ₹9,086 crore respectively. Capital adequacy ratio

As on December 31, Allahabad Bank had a capital adequacy ratio of 10.42% and net NPA ratio of 7.7%, while Corporation Bank’s CAR was at 11.12% and net NPA 11.47%. According to norms, PCA framework gets triggered when a bank breaches one of the three risk thresholds. Crossing 6% net NPA is one of them. (Adapted from The Hindu)

35. Maharashtra, where a high-speed train corridor puts spotlight on a Flamingo

sanctuary (Relevant for GS Prelims & Mains Paper III; Environment)

An environment clearance to the Mumbai-Ahmedabad high-speed train corridor has put the spotlight on the Thane Creek Flamingo Sanctuary (TCFS) in Mumbai. What happened?

A committee, chaired by Union Environment Minister Harsh Vardhan, has accorded wildlife clearance to the project which will encroach upon the TCFS and the Sanjay Gandhi National Park, home to leopards, in Mumbai. The proposal involves diverting 3.2 hectares of forestland from the TCFS and 97.5 hectares of land close to the boundary of the forest’s protected area. The high-speed train corridor or ‘bullet train project’ was inaugurated by Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe in Ahmedabad in September, 2017. It is expected to be ready by 2022. Ever since the project was conceived, there have been concerns about the impact of the construction, which will create enormous debris, on the sanctuary and the national park. The drilling of underground tunnels will lead to sound pollution which will disturb the tranquillity of the sanctuary. The project will entail cutting down several mangrove trees, a natural flood barrier. In the aftermath of the 2005 floods, environmentalists spoke out against the declining mangrove cover for land reclamation projects. How big is the sanctuary?

The TCFS consists of 896 hectares of mangrove forests and 794 hectares of waterbodies. It is on the western bank of the creek, between the Airoli and the Vashi bridges connecting Mumbai and Navi Mumbai. It came into being in August 2015 and is Maharashtra’s second marine sanctuary, after Malvan.






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The TCFS has been attracting flamingos in large numbers since 1994. By November every year, over 30,000 flamingos, along with their chicks, occupy the mudflats and the bordering mangroves. They stay till May, after which most of them migrate to Bhuj in Gujarat for breeding, leaving a small resident population. Besides supporting a large congregation of flamingos, the area is a refuge for many resident and migratory birds. In all, 200 species have been reported, even globally threatened species such as the greater spotted eagle and others such as osprey. Other birds found here are the Pied avocet, western reef heron, black-headed ibis, common redshank, marsh sandpiper, common greenshank, curlew sandpiper, brown-headed gull, whiskered, gull-billed, Caspian and little terns. The white-bellied sea eagle and Eurasian marsh harrier have been spotted too. Are there any remedial measures?

While according permission, the National Board for Wildlife has laid several conditions. The project developers should provide an alternate site and funds for penal plantation of at least five times the number of mangrove plants anticipated to be lost. Because the project also encroaches upon the Sanjay Gandhi National Park in Borivili, developers have to construct under-passes to enable smooth movement of wild animals. An existing quarry would have to be closed and a natural stormwater drainage stream, passing through the culvert system, would have to be restored and kept free of any obstruction. Are these steps adequate?

In general, any foray into wildlife sanctuaries is pernicious. The project plan of the corridor involves drilling a 7-km-long undersea tunnel to avoid damaging the forest and several of the mitigating measures could go a long way to encourage flamingos and other birds to continue visiting the sanctuary. However environmentalists say they aren’t confident that mitigation work will be taken seriously. The ongoing Mumbai Metro Project has adversely impacted the Aarey Forest and destroyed mangroves and wetlands in Uran and the Sion-Panvel Highway, according to ecologists. (Adapted from The Hindu)

36. Vande Bharat: India’s self-propelled, fastest train takes off (Relevant for GS

Prelims; Science & Technology)

Inagural trip of Train 18

The inaugural trip of India’s first semi-high speed train, Vande Bharat Express, was flagged at the New Delhi railway station. The train, named ‘Train 18’ at the concept stage, is a plush 16-coach, air-conditioned, self-propelled train set and doesn’t have a locomotive. The express will ply between Delhi and Varanasi, with halts at Kanpur and Allahabad. It will complete the 780-km journey in eight hours, slicing off 180 minutes from the current travel time of 11-and-a-half hours. This is India’s fastest train to date, capable of commercial speeds up to 160 km per hour. On the Delhi-Varanasi route, however, its top speed would be restricted to 130 km per hour. The train planned to start commercial






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operations on this route on February 17. The tickets for that date were already sold out. The train was built at the Integral Coach Factory (ICF), Chennai. Problems faced in trial run

The flagship Train 18 Vande Bharat Express broke down near Tundla in UP on its way to New Delhi from Varanasi. The train’s brakes jammed and power went out in the last four coaches due to an electrical snag. (Adapted from The Hindu)

37. India to have own DNS for safe browsing (Relevant for GS Prelims & Mains Paper

III; Science & Technology) The government will soon roll out a public Domain Name Server, or DNS, for India aimed at providing a faster and more secure browsing experience for Internet users in the country, while ensuring that citizens’ data is stored locally. What is DNS?

A DNS is a like a directory for the Internet. It helps to convert domain names that are easy for people to remember into IP addresses, which are used by computers/machines to communicate. If the DNS is either slow or fails to work, users will not be able to locate web addresses. What is the objective of own DNS? “The main aim of bringing our own public DNS is to ensure availability, particularly for smaller Interest Service Providers (ISPs) who don’t have credible DNS. Bigger ones usually have their own DNS,” an IT Ministry official said. Pointing out that there were other open DNS servers, including Google Public DNS, the official said the government’s system would prevent users from visiting malicious websites. When is the roll out expected?

The roll-out, which will be executed by the National Informatics Centre – the technology arm of the government – will be completed in the next four to six months, the official said. NIC is already using the public DNS within the government network. (Adapted from The Hindu)

38. Illicit liquor deaths (Relevant for GS Prelims, GS Mains Paper I; Social Issues)

The death of more than 100 people to toxic alcohol in Uttar Pradesh and Uttarakhand has exposed the thriving sale of illicit liquor in the region. Why are governments responsible?






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The governments in U.P. and Uttarakhand cannot evade responsibility for the death of so many people, the majority of them in Saharanpur district of U.P. Preliminary investigation has confirmed the well-entrenched system of illicit liquor vends that are known to exist in the region; several factories producing hooch in U.P. were unearthed within a couple of days of the episode. Moreover, although several liquor-related deaths have been taking place, it took this staggering number of casualties for the authorities to acknowledge the presence of free-flowing illicit liquor. The Yogi Adityanath government prides itself on its law and order measures but its failure to crack down on these dens exposes the hollow claims. It has tried to put the blame for previous incidents on political opponents hatching conspiracies. High price of legal liquor

Several instances of toxic alcohol poisoning in India, including the Malvani hooch tragedy in Mumbai in 2015 that killed 106 people, have been attributed to the lack of affordable liquor for the poor. High taxes and excise raise prices, and cheap brews are peddled by criminal organisations, often in collusion with law enforcement personnel. In U.P., many communities have protested the sale of cheap liquor in pouches that are freely distributed during social events. What seems to have happened in Saharanpur follows the trend, with toxic alcohol originating in Haridwar in Uttarakhand being supplied at a family ritual. While it is no one’s case that consumption of cheap liquor needs to be encouraged or promoted, severe bottlenecks are proving counterproductive. What should be done?

An enlightened policy is needed to strike a balance, curbing illicit flows with zero tolerance, discouraging consumption through social campaigns and reviewing levies on less harmful beverages. At the moment, it is essential to make an example of those who participated in the sale of the lethal brew, and investigate any nexus with the authorities. If it is true that the suspects had a history of dealing in hooch, the Special Investigation Team constituted by the U.P. government should find out how they continued to operate their trade. In parallel, it is vital that the capacities of the health system be upgraded to handle victims of toxic alcohol. Toxicity often comes from drinking methanol, which results in blindness, tissue damage or death. Timely treatment through haemodialysis, infusion of sodium bicarbonate and ethyl alcohol can save lives. (Adapted from The Hindu)

39. Seemanchal Express derails in Bihar; 6 dead, 30 injured (Relevant for GS Prelims;

GS Mains paper III; Internal Security)

Track fracture said to be reason

Six passengers were killed and over 30 injured when 11 coaches of the Delhi-bound Seemanchal Express derailed early in Vaishali district of Bihar. The coaches of the superfast Jogbani-Anand Vihar Seemanchal Express jumped the rails.






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Ex gratia announced

Minister of Railways & Coal Piyush Goyal, later, announced an ex-gratia of ₹5 lakh to the kin of the deceased and ₹1 lakh to those grievously injured and ₹50,000 to those with minor injuries. (Adapted from The Hindu)

40. What is recent issue on National Security Act? (Relevant for GS Prelims & GS

Mains Paper III; Internal Security)

What is it?

On February 8, the Congress-led government in Madhya Pradesh invoked the National Security Act (NSA) against three men accused of killing a cow near Kharkhali village. This and a spate of recent cases, in which different State governments have invoked the stringent provisions of the NSA to detain citizens for questionable offences, have brought the focus back on the potential abuse of the controversial law. Put simply, the NSA empowers the Centre or a State government to detain a person to prevent him from acting in any manner prejudicial to national security. The government can also detain a person to prevent him from disrupting public order or for maintenance of supplies and services essential to the community. The maximum period for which one may be detained is 12 months. But the term can be extended if the government finds fresh evidence. How did it come about?

Preventive detention laws in India date back to early days of the colonial era when the Bengal Regulation III of 1818 was enacted to empower the government to arrest anyone for defence or maintenance of public order without giving the person recourse to judicial proceedings. A century later, the British government enacted the Rowlatt Acts of 1919 that allowed confinement of a suspect without trial. Post-independence India got its first preventive detention rule when the government of Prime Minister Jawaharlal Nehru enacted the Preventive Detention Act of 1950. The NSA is a close iteration of the 1950 Act. After the Preventive Detention Act expired on December 31, 1969, the then Prime Minister, Indira Gandhi, brought in the controversial Maintenance of Internal Security Act (MISA) in 1971 giving similar powers to the government. Though the MISA was repealed in 1977 after the Janata Party came to power, the successive government, led by Mrs. Gandhi, brought in the NSA. Why does it matter?

In the normal course, if a person is arrested, he or she is guaranteed certain basic rights. These include the right to be informed of the reason for the arrest. Section 50 of the Criminal Procedure Code (Cr.PC) mandates that the person arrested has to be informed of the grounds of arrest, and the right to bail. Sections 56 and 76 of the Cr. PC also provides that a person has to be produced before a court within 24 hours of arrest. Additionally, Article 22(1) of the Constitution says an arrested person cannot be denied the right to consult, and to be defended by, a legal practitioner of his choice. But none of these rights are available to a person detained under the NSA. A person could be kept in the dark about






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the reasons for his arrest for up to five days, and in exceptional circumstances not later than 10 days. Even when providing the grounds for arrest, the government can withhold information which it considers to be against public interest to disclose. The arrested person is also not entitled to the aid of any legal practitioner in any matter connected with the proceedings before an advisory board, which is constituted by the government for dealing with NSA cases. What lies ahead?

The National Crime Records Bureau (NCRB), which collects and analyses crime data in the country, does not include cases under the NSA in its data as no FIRs are registered. Hence, no figures are available for the exact number of detentions under the NSA. In January, the BJP government in Uttar Pradesh arrested three persons under the NSA in connection with an alleged cow-slaughter incident in Bulandshahr. In December last year, a Manipur journalist, who had posted an alleged offensive Facebook post on the Chief Minister, was detained for 12 months under the NSA. Experts say these cases point to the fact that governments sometimes use it as an extra-judicial power. It is time to reconsider the law, they argue, because in four decades of its existence, the NSA has been in the news for all the wrong reasons. (Adapted from The Hindu)

41. Home Ministry puts Assam Rifles notification on hold (Relevant for GS Prelims &

GS Mains Paper III; Internal Security)

Notification empowering Assam Rifles put on hold

The Union Home Ministry has kept its order that empowered Assam Rifles, deployed along the Myanmar border, to arrest anyone and search a place without warrant in border districts of Assam, Arunachal Pradesh, Manipur, Nagaland and Mizoram “in abeyance.” The notification said “an officer of the rank corresponding to that of the lowest rank of members of the Assam Rifles” will have the powers under the CrPC.

Why was notification put on hold?

The notification was withheld after Opposition parties moved an adjournment motion against the order in the Assam Assembly. Home Ministry said the matter would be “revisited in consultation with the State governments concerned.” It is not clear why the notification included Assam, as the State does not share its border with Myanmar. Assam Rifles has power to detain anyone where Armed Forces (Special Powers) Act (AFSPA) is in place. But it was finding it difficult to operate in Mizoram, which is not covered by AFSPA. Entire Assam is under AFSPA. Assam Rifles, a central armed police force (CAPF) came into being in 1835. It is under the administrative control of the Home Ministry and operational control of the Army. (Adapted from The Hindu)






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42. Who is Kamala Harris, the Democratic hopeful? (Relevant for GS Prelims)

Kamala Devi Harris is a 54-year-old American senator from California, of Indian and African descent, and candidate for President of the United States in 2020. She is the second African-American woman (and the first Indian-American) in the Senate and first Indian and African (Jamaican) woman to have been California’s Attorney-General. Where did she grow up?

Ms. Harris was born in Oakland, California, to two Ph.D students at the University of California, Berkeley — Shyamala Gopalan from Chennai, who was studying nutrition and endocrinology and eventually became a breast cancer researcher, and Donald Harris from Jamaica, who was studying economics and went on to become a professor at Stanford. They divorced when Harris was seven. Where does she stand?

In 2004, Ms. Harris became San Francisco’s District Attorney, and in 2011, California’s Attorney-General. Ms. Harris’s contradictory stances as a public prosecutor have drawn criticism. She has been criticised for her hardline positions on crime. Most notably, while Ms. Harris is personally against the death penalty — in 2004 she did not seek the death penalty for a man who had killed a police officer — she defended the death penalty’s presence on the statute book in California in 2014, when she was Attorney-General. What is in store?

It is hard to tell at the moment how Kamala Ms. Harris will fare in the 2020 race. Harris has to first win the Democratic (a party in US) nomination. A Politico/Morning Consult poll conducted on January 25-27, before Mr. Booker announced his candidacy, ranked Ms. Harris as the third favourite candidate of Democratic voters, below former Vice-President Joe Biden and Independent Senator from Vermont Bernie Sanders. (Adapted from The Hindu)

43. Rishi Kumar Shukla appointed CBI Director (Relevant for GS Prelims)

Rishi Kumar Shukla – New CBI Director

Rishi Kumar Shukla, a 1983 batch Indian Police Service (IPS) officer of the M.P. cadre, was appointed the Director of the Central Bureau of Investigation (CBI), the country’s premier investigation agency, for two years. Allegation of CBI use aganist opposition

Mr Shukla’s appointment also coincides with the agency’s investigation into high profile cases involving top politicians and political opponents of the NDA government. Among the cases are the recently lodged illegal mining case involving former Chief Minister of Uttar Pradesh Akhilesh Yadav, land acquisition case involving former CM of Haryana Bhupinder Hooda and Aircel Maxis case with former Finance Minister P Chidambaram named as accused among others. Procedure for appointment






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Mr. Shukla was picked from a panel of several names cleared by the high-power committee, led by Prime Minister Narendra Modi and comprising the Chief Justice of India and the Leader of the Opposition in the Lok Sabha. “The Appointments Committee of the Cabinet has, based on the panel recommended by the Committee constituted as per Section 4A(1) of the Delhi Special Police Establishment Act, 1946, approved the appointment of Rishi Kumar Shukla as Director, CBI, for a period of two years,”. Background

In fact, the top post in the agency has been vacant since October 2018 when Mr. Verma and his deputy Mr. Asthana were removed based on Central Vigilance Commission (CVC) report after Mr Verma lodged an FIR naming his deputy Asthana in a bribery case. However, the Supreme Court, acting on a plea filed by Mr. Varma and a non profit outfit, reinstated Mr Verma as CBI Chief, while asking the centre to call a meeting of selection committee to decide on the matter. The selection committee on January 10 removed Alok Verma as Director, just two days after the Supreme Court had reinstated him. He was transferred to the Fire Services as Director General, after the panel said that as CBI chief, he had “not acted with the integrity expected of him.” The selection committee had taken a decision with two members: PM and Justice A.K. Sirki, nominated by the Chief Justice of India, while Leader of the Opposition had opposed Mr. Varma’s removal from the post. (Adapted from The Hindu)

44. 2nd longest rail tunnel of the country (Relevant for GS Prelims)






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On completion, the 9.02-km tunnel will be the second longest one in the country A 10.7-km railway line, including a 9.02-km tunnel, has been proposed to connect the upcoming Vizhinjam International Multipurpose Deepwater Seaport to the railway network. The 9.02-km tunnel from near the Balaramapuram station on the Kanyakumari-Thiruvananthapuram railway line, will be the second longest railway tunnel of the country on completion. As much as 6.57 hectares will have to be acquired on the Balaramapuram-Vizhinjam stretch for laying the line. The cost of providing the rail connectivity, including land

acquisition, has been put at ₹1,069 crore. (Adapted from The Hindu)

45. Loong Palace Hurun Global Rich List 2019 (Relevant for GS Prelims)

Mukesh Ambani- 8th richest






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Indian’s richest individual Mukesh Ambani, CMD of Reliance Industries, figures on 8th rank globally as per the ‘Loong Palace Hurun Global Rich List 2019. He is the first Indian to achieve this position as also the only Asian in this year’s list. His net worth is estimated at $54 billion (₹3,83,700 crore). Mr. Ambani’s net worth increased 20% in a year. As per the report, Mukesh Ambani added $30 billion in the last seven years. S.P. Hinduja- 40th globally

S.P. Hinduja whose ranking is 40 globally and number two in India, has estimated wealth of $21 billion (₹1,50,500 crore), as per the list. Azim Premji, at position 57 globally and third-richest in India, is followed by Cyrus Poonawalla and Laxmi Mittal who are globally ranked 100 and 112 respectively. Globally ranked 129 Uday Kotak is India’s sixth-richest, followed by Gautam Adani seventh richest in India while his ranking globally is 157. Sun Pharma’s Dilip Shanghvi is eighth-richest in India and is followed by Cyrus and Shapoor Mistry. Jeff Bezos- Richest

Jeff Bezos of Amazon, with net worth of $147 billion (₹10,44,000 crore) retained the top slot for the second year running. In one year, he added $24 billion (₹171,500 crore) to his fortune. Overall trend

A total of 2,470 individuals figured in the list with total wealth of $49.5 trillion — or 12% of global GDP. Of them, 658 are from China, 584 from the U.S. and 117 are from Germany. A record 430 billionaires dropped off the list in 2019, of whom 52 are from India. Since 2012, this is the first time that India has slipped to fifth rank in the List. An underperforming rupee and lacklustre stock market resulted in India losing one third of the list. While Greater China has 658 billionaires, down by 161, India has only 104, down by 28. Among India’s billionaires 42 are residents of Mumbai while 25 are from Delhi. Bengaluru has 9. About Loong Palace Hurun Global Rich List

Rupert Hoogewerf (born 1970 in Luxembourg), also known by his Chinese name Hu Run is the Chairman and Chief Researcher of Hurun Report, a research, media and investments business, best known for its ‘Loong Palace Hurun Global Rich List’, which lists the richest individuals across the globe having a net worth of $1 billion. (Adapted from The Hindu)





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