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Table of Contents

Polity & Governance .......................................................... 1

1. Cabinet clears Bill to restore the provisions of SC/ST Act (Relevant for GS Prelims, GS

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

2. Prosecution under Benami Act stuck: No courts set up (Relevant for GS Prelims, GS special

Mains Paper II; Polity & Governance) ......................................................................................... 2

3. On changes in anti-corruption law (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................... 3

4. Change gears: amendments to the Motor Vehicles Act (Relevant to GS Prelims, GS Mains

Paper II; Polity & Governance) ..................................................................................................... 4

5. M. Karunanidhi, 94: the end of an era (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................... 5

6. Why Article 35A is in the news (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................... 6

7. Parliament Passes Scheduled Castes and Scheduled Tribes (Prevention of Atrocities)

Amendment Bill, 2018 (Relevant for GS Prelims, GS Mains Paper II; Polity & Governance) . 7

8. North Karnataka, reeling under neglect (Relevant for GS Prelims, GS Mains Paper II; Polity

& Governance) ................................................................................................................................ 9

9. Kejriwal charged in assault case (Read only for understanding; Polity & Governance) ..... 11

10. How statistical information can be used (Relevant for GS Prelims, GS Mains Paper II; Polity

& Governance) .............................................................................................................................. 12

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11. Powers to SEBI against financial frauds (Relevant for GS Prelims, GS Mains paper II; Polity

& Governance) .............................................................................................................................. 13

12. What next for the DMK after Karunanidhi (Relevant for GS Mains paper II; Polity &

Governance) ................................................................................................................................. 14

13. Should Article 35A be scrapped? (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................. 15

14. How CJIs involved senior colleagues in benches of 3 judges and more (Relevant for GS

Prelims, GS Mains Paper II; Polity & Governance) ................................................................... 18

15. Mullaperiyar: genesis of a dispute (Relevant for GS Prelims, GS Mains paper II; Polity &

Governance) ................................................................................................................................. 20

16. Need for national policy on utility of a second chamber in States (Relevant for GS Prelims,

GS Mains Paper II; Polity & Governance) .................................................................................. 23

International Organizations and Relations ............ 25

1. Hope in Harare? — on victory in Zimbabwe elections (Relevant for GS Prelims, GS Mains

Paper II; IOBR) .................................................................................................................................. 25

2. Dissent & diplomacy: on the Saudi-Canada spat (Relevant for GS Prelims, GS Mains Paper

II; IOBR) .............................................................................................................................................. 26

3. Tight-fisted neighbour? Indian aid to SAARC nations falls (Relevant for GS Prelims, GS

Mains Paper II; IOBR) ....................................................................................................................... 27

4. Mnangagwa, Zimbabwe’s new hope (Relevant for GS Prelims, GS Mains Paper II; IOBR) ... 29

5. Siege of Ghazni: On the Taliban offensive (Relevant for GS Prelims, GS Mains Paper II;

IOBR) ................................................................................................................................................... 30

6. Reality check: On simultaneous polls (Relevant for GS Prelims, GS Mains Paper II; IOBR) . 31

7. Stay with RCEP: India (Relevant for GS Prelims, GS Mains Paper II; IOBR) ........................... 32

8. Beyond words: On Indo-Pak ties (Relevant for GS Mains Paper II; IOBR) .............................. 34

9. Contested numbers on overstayers (Relevant for GS Prelims, GS Mains Paper II; IOBR) ..... 35








10. Trump’s trade wars (Relevant for GS Prelims, GS Mains Paper II; IOBR) ............................... 36

11. Easing tensions: on U.S.-Mexico trade deal (Relevant for GS Prelims, GS Mains Paper II;

IOBR) ................................................................................................................................................... 37

12. A look at what the Two plus two upcoming India-U.S. dialogue means (Relevant for GS

Prelims, GS Mains Paper II; IOBR) .................................................................................................. 38

Geography .......................................................................... 41

1. The monsoon and its march so far (Relevant for GS Prelims, GS Mains Paper I; Geography)

....................................................................................................................................................... 41

2. In Kaziranga, a wait for floods (Relevant for GS Prelims, GS Mains Paper I; Geography) .. 42

Economics ........................................................................... 44

1. Why is the Sensex on a bull run? (Relevant for GS Prelims, GS Mains Paper III; Economics)

....................................................................................................................................................... 44

2. UAE top source of inward remittances in 2016-17: RBI (Relevant for GS Prelims, GS Mains

paper III; Economics) ....................................................................................................................... 45

3. A welcome retreat: withdrawing the FRDI Bill (Relevant for GS Prelims, GS Mains Paper

III; Economics) ................................................................................................................................... 46

4. All you need to know about Currency wars (Relevant for GS Prelims, GS Mains Paper III;

Economics) ......................................................................................................................................... 47

5. Are foreign direct investments at an ebb? (Relevant for GS Prelims, GS Mains Paper III;

Economics) ......................................................................................................................................... 48

6. Making NHPM work: On Ayushman Bharat (Relevant for GS Prelims, GS Mains Paper III;

Economics) ................................................................................................................................... 50








7. What does the falling rupee mean for you and economy? (Relevant for GS Prelims, GS

Mains Paper III; Economics) ....................................................................................................... 51

8. Over 99% of demonetised notes were returned: RBI (Read only for understanding;

Economics) ................................................................................................................................... 52

Environment ....................................................................... 54

1. River of effluents (Relevant for GS Prelims, GS Mains Paper III; Environment &

Biodiversity) ....................................................................................................................................... 54

2. Keeping dry: On Kerala floods (Relevant for GS Prelims, GS Mains Paper III; Environment &

Biodiversity) ....................................................................................................................................... 55

3. Pune tops Ease of Living index; Patna ranked lowest of 111 cities (Relevant for GS Prelims,

GS Mains Paper III; Environment & Biodiversity) ....................................................................... 56

4. Kerala’s trauma (Relevant for GS Prelims, GS Mains Paper III; Environment) ..................... 58

5. In U.P., plans to save the Taj Mahal (Relevant for GS Prelims, GS Mains Paper III;

Environment) ..................................................................................................................................... 59

6. Why does Kerala need more funds? (Relevant for GS Prelims, GS Mains Paper III; Disaster

Management) .................................................................................................................................... 60

Science & Technology ....................................................... 62

1. Reconsider the ban: on oxytocin (Relevant for GS Prelims, GS Mains Paper III; Science &

Technology) ....................................................................................................................................... 62

2. ISRO set to launch its TV channel (Relevant for GS Prelims, GS Mains paper III; Science &

Technology) ....................................................................................................................................... 63

3. e-cigarette ban (Relevant for GS Prelims, GS Mains Paper III; Science & Technology) ........ 64








4. Why is retail sale of oxytocin banned? (Relevant for GS Prelims, GS Mains Paper III;

Science & Technology) ..................................................................................................................... 66

Social Issues ....................................................................... 68

1. Why are the Marathas so restive? (Relevant for GS Prelims, GS Mains Paper I; Social

Issues) .................................................................................................................................................. 68

2. Retrograde move: On Punajb's proposed law on sacrilege (Relevant for GS mains Paper I;

Social Issues) ...................................................................................................................................... 69

Internal Security ............................................................... 71

1. Strategic Partnership guidelines for participation of private sector (Relevant for GS

Prelims, GS Mains Paper III; Internal Security) ........................................................................... 71

Miscellaneous .................................................................... 72

1. Indian-origin mathematician Akshay Venkatesh gets prestigious Fields Medal (Relevant

for GS Prelims) ............................................................................................................................. 72

2. Restoring dignity: on stigma attached to leprosy (Relevant for GS Prelims) ........................ 72






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Polity and Governance

1. Cabinet clears Bill to restore the provisions of SC/ST Act (Relevant for GS Prelims,

GS Mains Paper II; Polity & Governance)

Facing pressure from Dalit leaders within the ruling alliance as well as from the Opposition, the Centre has decided to introduce a Bill to restore the original provisions of the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989, which the Supreme Court had struck down in a March ruling. What does the amendment bill include?

The Amendment Bill seeks to insert three new clauses after Section 18 of the original Act. The first stipulates that for the purposes of the Act, preliminary enquiry shall not be required for registration of a First Information Report against any person. The second stipulates that the arrest of a person accused of having committed an offence under the Act would not require any approval. The third says that the provisions of Section 438 of the Code of Criminal Procedure — which deals with anticipatory bail — shall not apply to a case under this Act, notwithstanding any judgment or order of any Court.

Background

On March 20, the Supreme Court issued a slew of guidelines to protect people against arbitrary arrests under the Act, directing that public servants could be arrested only with the written permission of their appointing authority, while in the case of private employees, the Senior Superintendent of Police concerned should allow it. A preliminary inquiry should be conducted before the FIR was registered to check if the case fell within the ambit of the Act, and whether it was frivolous or motivated, the court ruled. Reaction to ruling by dalit groups

The ruling was greeted by a storm of protest from Dalit groups, which said the order diluted the law. On April 2, violence during a nationwide bandh left at least nine people dead and hundreds injured. However, the court refused to stay its ruling, leading to the demand from Dalit groups that the government introduce an ordinance or an Amendment Bill to restore the provisions. Protests intensified when the government appointed Justice A.K. Goel, who authored the March 20 verdict, as the Chairman of the National Green Tribunal on his retirement. Protests increased when the government appointed Justice A.K. Goel, who authored the March 20 verdict, as chairman of the National Green Tribunal upon his retirement from the Supreme Court.






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While Mr. Paswan and his party had demanded Justice Goel s removal from the NGT, he said the issue had now been resolved with the proposed amendment. He also indicated that the need for a Bharat bandh on August 9 had become unnecessary. (Adapted from The Hindu)

2. Prosecution under Benami Act stuck: No courts set up (Relevant for GS Prelims, GS

special Mains Paper II; Polity & Governance)

No special courts set up for the purpose yet

The prosecution of accused persons in almost 100 confirmed cases instituted under the Benami Transactions (Prohibition) Act has been scuttled as the special courts meant for the purpose have not yet been set up across the country. Assets worth more than Rs. 5,000 crore have been attached by the Income-Tax Department under the law. What is the provision under the act?

The Act provides that the Central government, in consultation with the Chief Justice of the respective High Courts, will establish special courts through notification. Such courts are to be constituted to ensure that the trials are conducted as expeditiously as possible .






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Every endeavour shall be made by the special court to conclude the trial within six months from the date of filing of the complaint, says the Act. However, an official said, the required special courts have not been set up yet. Therefore, despite the fact that investigations in almost 100 cases have been completed by the I-T Department in different States, including confirmation of attachment of properties by the Adjudicating Authority, the prosecution of accused persons has not started. (Adapted from The Hindu)

3. On changes in anti-corruption law (Relevant for GS Prelims, GS Mains Paper II;

Polity & Governance)

Why Section 13 (1)d is in news?

The amendments to the Prevention of Corruption Act, 1988, adopted recently by both Houses of Parliament, are a mixed bag. Moves to make changes in this law, aimed at combating corruption in government, were initiated during the UPA s second term in office and largely centred on the misuse of one provision — Section 13 (1)d. Former Prime Minister Manmohan Singh had criticised this section, under which public servants are culpable for securing a pecuniary advantage for another without any public interest , for ignoring a foundational principle of criminal law: mens rea. This resulted in many honest officials being prosecuted even when they gained nothing and merely exercised their power or discretion in favour of someone. Implication of amendment

In so far as it had a chilling effect on governance and deterred bold decision-making, the amended form may have a liberating effect on honest officials. Besides, it is more concise and restricts criminal misconduct to two offences: misappropriating or converting to one s own use property entrusted to a public servant or is in his control and amassing unexplained wealth. There was concern initially with the wording, intentionally enriches himself illicitly during the period of his office , as it raised a doubt whether the intention to amass wealth would also have to be proved. Now an explanation has been added that a person shall be presumed to have intentionally enriched himself if he cannot account for his assets through known sources of income. Citizens liable for offering bribe

By making citizens liable for offering a bribe to a public servant, the anti-corruption law has been brought in line with the UN Convention Against Corruption. The only exception to this rule is when one is forced to give a bribe. This exception kicks in only when the fact that one was forced to pay a bribe is reported to a law enforcement authority within seven days. The penal provision can empower people by allowing them to cite it to refuse to pay a bribe. Prior approval to start an investigation

At the same time, what happens when the police or any other agency refuses to register a complaint? People may be left in the lurch with no redress. Further, it may render them






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vulnerable to threats from unscrupulous public servants who collect money to speed up public services but do not deliver. The most unacceptable change is the introduction of a prior approval norm to start an investigation. When a prior sanction requirement exists in law for prosecution, it is incomprehensible that the legislature should create another layer of protection in the initial stage of a probe. Public servants need to be protected against unfair prosecution, but a genuine drive against corruption needs a package of legislative measures. These should contain penal provisions, create an ombudsman in the form of a Lokpal or Lokayukta, as well as assure citizens of time-bound services and whistle-blower protection. Laws to fulfil these objectives are either not operational or are yet to materialise. (Adapted from The Hindu)

4. Change gears: amendments to the Motor Vehicles Act (Relevant to GS Prelims, GS

Mains Paper II; Polity & Governance)

Need for amendment

India s law governing motor vehicles and transport is archaic, lacking the provisions necessary to manage fast motorisation. The lacunae in the Motor Vehicles Act, 1988, require to be addressed to improve road safety, ensure orderly use of vehicles and expand public transport. About the bill

The Motor Vehicles (Amendment) Bill, passed by the Lok Sabha last year, seeks to do this, but it has now run into opposition in the Rajya Sabha because of its perceived shift of power from the States to the Centre. The issue is not one of legislative competence; as the subject is in the Concurrent List, Parliament can make a law defining powers available to the States. What are the concerns of the State Governments?

Some State governments are concerned about the new provisions, Sections 66A and 88A, which will empower the Centre to form a National Transportation Policy through a process of consultation, and not concurrence. The changes will also enable Centrally-drafted schemes to be issued for national, multi-modal and inter-State movement of goods and passengers, for rural mobility and even last-mile connectivity. Since all this represents a new paradigm that would shake up the sector, several States have opposed the provisions as being anti-federal. Why the opposition of State governments is not justified?

Doing nothing, however, is no longer an option. The passenger transport sector operating within cities and providing inter-city services has grown amorphously, with vested interests exploiting the lack of transparency and regulatory bottlenecks. With a transparent system, professional new entrants can enter the sector. As things stand, State-run services have not kept pace with the times. Major investments made in the urban metro rail systems are yielding poor results in the absence of last-mile connectivity services.






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What are the requirements?

Creating an equitable regulatory framework for the orderly growth of services is critical. This could be achieved through changes to the MV Act that set benchmarks for States. Enabling well-run bus services to operate across States with suitable permit charges is an imperative to meet the needs of a growing economy. Regulatory changes introduced in Europe over the past few years for bus services have fostered competition, reduced fares and increased services operating across European Union member-states. Other aspects of the proposed amendments deal with road safety. These, however, are likely to achieve little without strong enforcement by the States. The effort to curb institutionalised corruption at Regional Transport Offices by making it possible for dealers to directly register new vehicles and enabling online applications for driving licences is welcome. Care is needed to see that other measures, such as sharply enhancing fines for rule violations, do not only result in greater harassment. It is the certainty of enforcement, zero tolerance and escalating penalties that will really work. There are some new provisions to harness technology, including CCTV monitoring, to improve road safety, but these cannot produce results when there is no professional accident investigation agency to determine best practices. (Adapted from The Hindu)

5. M. Karunanidhi, 94: the end of an era (Relevant for GS Prelims, GS Mains Paper II;


Political career of Karunanidhi

The life story of Muthuvel Karunanidhi is also a history of Tamil Nadupolitics. A five-time Chief Minister, and the longest serving legislator, winning 13 terms in the Assembly and not losing even once, Karunanidhi was the engineer of many of the progressive measures adopted by the State since Independence. As head of DMK

As the leader of the Dravida Munnetra Kazhagam, an offshoot of the rationalist social reform movement, the Dravidar Kazhagam, he was an influential figure at both State and national levels, whether in or out of power. He excelled as both administrator and organiser, adopting different styles, but always displaying a clinical efficiency while interacting with bureaucrats and party workers. Social welfare

Although his administrative acumen was often contrasted with the welfarism of his political rival, M.G. Ramachandran, Karunanidhi was not beyond the draw of populism. Extending the Public Distribution System and increasing food subsidies were coupled with efforts at generating employment and encouraging industrial investment. Towards the latter part of his political career, he emulated his political opponents, MGR and Jayalalithaa, in handing out freebies indiscriminately to every household, rich or poor.






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Supporter of federalism

He was a crusader for federalism, often standing up to the Centre for the State s rights. He was one of the foremost opponents of the Emergency. In 1976 and 1991, his governments were dismissed by the Centre, the first time citing corruption charges, and the second time citing support to the terror outfit, the Liberation Tigers of Tamil Eelam. Family members

In his home State, he ran the DMK with an iron hand; at the same time, he provided some space for the second rung, even indulging the odd dissenter now and then, as long as there was no threat to his leadership. District secretaries and ministers had a long reign under him. His longevity permitted him the leeway to promote his immediate family members to positions of power within the party and the government. His designated successor, his younger son M.K. Stalin, had to work his way up the party ladder — from ordinary worker and youth wing leader before being accommodated in the top rungs of the party and government. But elder son M.K. Alagiri and grand-nephew Dayanidhi Maran were rewarded with Cabinet berths in their very first terms in the Lok Sabha. Remembering Karunanidhi

Karunanidhi will be remembered for being an astute politician, one with a quick wit and ready repartee; an able administrator with an uncanny eye for detail and a keen sense of the occasion; and as an elder statesman who could take the long-term view of events and issues. He straddled different generations and contrasting worlds with a reflexive ease. With his passing, less than two years after his rival Jayalalithaa succumbed to illness, Tamil Nadu is staring at a huge political void, one that that will be very hard to fill. (Adapted from The Hindu)

6. Why Article 35A is in the news (Relevant for GS Prelims, GS Mains Paper II; Polity

& Governance)

As the Supreme Court begins looking into the validity of Article 35A, protests erupted in Jammu and Kashmir against the Article being altered. A look at what the Article is about. What is it?

Article 35A is a provision incorporated in the Constitution through a Presidential Order, and not by parliamentary debate, giving the Jammu and Kashmir State Legislature a complete say in deciding who the permanent residents of the State are. The State Legislature can grant its permanent residents special rights and privileges in public sector jobs, acquisition of property, scholarships and other public aid and welfare programmes within the State. How did the Article come about?

It was incorporated into the Constitution in 1954 by an order of President Rajendra Prasad on the advice of the Jawaharlal Nehru Cabinet. The Constitution (Application to Jammu and Kashmir) Order of 1954 followed the 1952 Delhi Agreement entered into between Prime






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Minister Nehru and Jammu and Kashmir Prime Minister Sheikh Abdullah extending Indian citizenship to the State subjects of Jammu and Kashmir. Article 35A was added to the Constitution as a testimony of the special consideration the Indian government accorded the permanent residents of Jammu and Kashmir. The Presidential Order was issued under Article 370(1)(d), which allows the President to make certain exceptions and modifications to the Constitution for the benefit of Jammu and Kashmir. However Article 368(i) of the Constitution mandates that only the Parliament can amend the Constitution by introducing a new article. Why is it in the news?

Over 60 years after the Article came into existence, the Supreme Court has decided to go into the question whether the provision violates the Basic Structure of the Constitution. Writ petitions filed in the Supreme Court argue that the Article is violative of fundamental rights of equality and equal treatment enshrined in the Constitution as it restricts citizens from other States from getting employment or buying property within Jammu and Kashmir. The writ petitions also point out that any act of the State Legislature made under Article 35A is final and binding. A three-judge Bench is currently hearing whether the petitions challenging Article 35A should be referred to a Constitution Bench for an in-depth examination. If referred, the Constitution Bench would look into questions like whether the President acted outside his jurisdiction or whether the fact of non-consultation with the Parliament renders the Article invalid. The J&K government banks on a 1961 judgment by a five-judge Bench of the Supreme Court in Puranlal Lakhanpal v. The President of India. This verdict concludes that the President has the power to modify the Constitution when making it applicable to Jammu and Kashmir. (Adapted from The Hindu)

7. Parliament Passes Scheduled Castes and Scheduled Tribes (Prevention of

Atrocities) Amendment Bill, 2018 (Relevant for GS Prelims, GS Mains Paper II; Polity

& Governance)

What is the status of the bill?

The Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Amendment Bill,2018 which was passed by the Lok Sabha on 6th August 2018, has been passed by the Rajya Sabha today. What are the provisions?

Section 18A has been inserted to nullify conduct of a preliminary enquiry before registration of an FIR, or to seek approval of any authority prior to arrest of an accused, and to restore the provisions of Section 18 of the Act.






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Section 18A, inserted in the Act, states that:-

(1) For the purpose of the PoA Act,- (a) preliminary enquiry shall not be required for registration of a First Information Report against any person; or (b) the investigating officer shall not require approval for arrest, if necessary, of any person, against whom an accusation of having committed an offence under the PoA Act has been made and no procedure other than provided under the PoA Act or the Code of Criminal Procedure, 1973, shall apply. (2) The provision of section 438 of the Code shall not apply to a case under the Act, notwithstanding any judgment or order or direction of any Court. Background

The directions of Hon ble Supreme Court in their judgment dated 20.03.2018 in Criminal Appeal No. 416 of 2018(Dr. Subhash Kashinath Mahajan Vs the State of Maharashtra and Another) amount to amending the PoA Act and have diluted the provisions of the PoA Act. The directions of the Hon ble Court to conduct a preliminary inquiry within seven days by the Dy. S.P. concerned to find out whether the allegations make out a case under the PoA Act and that arrest in appropriate cases may be made only after approval by the S.S.P., would delay registration of First Information Report (FIR) and will impede strict enforcement of the provision of the POA Act. It may also be difficult to get the preliminary inquiry conducted within seven days as sufficient number of Dy. S.P level officers are usually not in place. Typically, the Dy. S.P. are located at the district level and not at taluk/block level. Other repercussions of the said directions of the Hon ble Court are that delay in registration of FIR would result in delay in payment of admissible relief amount to the victims of atrocities admissible only on registration of FIR. All this would adversely affect the very objective of the Act to prevent commission of atrocities against members of SC and ST and be severely detrimental especially in heinous offences like sexual exploitation of SC/ST women including rape, gangrape, acid attacks and murder etc. This matter being of very sensitive nature had caused a lot of unrest and a sense of disharmony in the country. As such, a Review Petition dated 02.04.2018, was filed by the Union of India in the Hon ble Court praying for recalling and reviewing their Order but no relief had so far been granted. Hence, it was considered expedient and meaningful to reaffirm the reliance and trust of members of SCs and STs on the provisions of the PoA Act. Rationale behind Supreme Court judgement






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The Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Amendment Bill, 2018 overrides a March 20 judgment of the Supreme Court, which restricted the powers of the police under the Code of Criminal Procedure to arrest a suspect. The verdict also read down a specific bar in the Atrocities Act of 1989 against anticipatory bail. Accused persons were not allowed to seek anticipatory bail to thwart arrest. The judgment reasoned that many false cases are foisted on innocent persons under the 1989 Act and that the fundamental right of an innocent person to be protected from arbitrary arrest should be protected. For this, the court ordered that a Deputy Superintendent of Police should conduct a preliminary inquiry into every complaint of atrocity committed against an SC/ST member. Subsequently, the arrest of the accused persons should be approved by the Senior Superintendent of Police concerned. The judgment had led to widespread violence and loss of lives across the country, following which the government moved the Supreme Court for a review. (Adapted from PIB and The Hindu)

8. North Karnataka, reeling under neglect (Relevant for GS Prelims, GS Mains Paper

II; Polity & Governance)

Thirteen districts of north Karnataka recently raised a fresh cry for a separate State, pointing out that Chief Minister H.D. Kumaraswamy s budgetary allocations favoured only the southern districts. The crisis has blown over and Mr. Kumaraswamy has clarified that he has big plans for the development of the region. Historical neglect during the pre-Independence era, coupled with apathy after unification of Karnataka, has often been cited as the reason for backwardness of north Karnataka. Almost on all markers of development,






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there is a marked lag. A symbol of this has been the Krishna. People of the region have always argued that the river and projects related to it never get the attention that the Cauvery in south Karnataka does. In recent times, the delay in solving the long-pending inter-State Mahadayi river row has been cited as another pointer to the apathy. Has no government taken note?

In 2000, the S.M. Krishna-led Congress government constituted a high-powered committee for redress of regional imbalances led by D.M. Nanjundappa. After an exhaustive study, the committee, in its report in 2003, listed 39 taluks as the most backward. As many as 26 of them were from seven districts of north Karnataka. The committee also indicated the quantum of resources required to ensure these taluks caught up with the others in development. Along with a special development plan of ₹ , crore over eight years, the committee pleaded for an optimal 60:40 ratio in favour of the northern region as a basis for additional resource allocation. However, despite acknowledging that implementation of the recommendations holds the key to the development, successive governments have paid only lip-service to the issue. Why is it difficult?

There are imbalances within the region. The 13 districts are further categorised into Hyderabad Karnataka and Bombay Karnataka (of Bombay Presidency). Compared with Bombay Karnataka, developmental lag is worse in Hyderabad Karnataka, the region which was under the Hyderabad Nizam s domain till its liberation in 1948. The identification of two of the districts of the region, Bidar and Kalaburagi (earlier Gulbarga), as the poorest districts in the country in the National Sample Survey in 2005 and their subsequent inclusion in the food for work programme are indicative of the state of affairs. What has been done so far?

Amendment to the Constitution that gave special status to the Hyderabad Karnataka region under Article 371(J) has been seen as a big move towards development. However, the downside is that the Hyderabad Karnataka grouping has discouraged employees from other regions from working here. Over 1.30 lakh posts are still vacant in the region and development projects, particularly related to infrastructure and irrigation, often find lower or little allocation. As per official data, ₹ , crore of the ₹ , crore recommended by the Nanjundappa Committee has been spent between 2006-07 and 2014-15. However, development is not palpable, say people of the region. What is the way ahead?

Lack of political will is often cited as the biggest reason for backwardness, though the region has sent five Chief Ministers so far. But reasons are deeper, point out some studies. The Centre for Multi-Disciplinary Research (CMDR), based in Dharwad, came out with a Critical analysis of Dr. D.M. Nanjunadappa Committee Report and its implementation by

Shiddalingaswami V. Hanagodimath in 2014. It says: This regional imbalance is the product of plans, because plan makers have concentrated on overall development than the potential and availability of resources in different regions and its optimum utilisation.






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Hence, regional disparity has increased. The Siddaramaiah government had asked the CMDR to review the implementation of the Nanjundappa committee report. It submitted a draft report earlier this year, and the Kumaraswamy government must take it forward. (Adapted from The Hindu)

9. Kejriwal charged in assault case (Read only for understanding; Polity &

Governance)

Alleged assault on Chief Secretary

The Delhi police charge-sheeted Delhi Chief Minister Arvind Kejriwal and his deputy Manish Sisodia in the case of alleged assault on his Chief Secretary Anshu Prakash in February this year. The probe agency filed the charge sheet in the court of Additional Chief Metropolitan Magistrate Samar Vishal at the Patiala House courts who fixed August 25 as the date for hearing arguments on taking cognisance of the charges and summoning the accused persons. View of Delhi ministers

Five Delhi Ministers — Satyendar Jain, Kailash Gahlot, Gopal Rai, Rajendra Pal Gautam and Imran Hussain — have termed the charge sheet bogus. It is the latest example of the Central government s ongoing unprecedented witch-hunt against the Delhi government, they said in a joint statement. Who else charge sheeted?

Besides the Chief Minister and the Deputy Chief Minister, the police have also named as many as 11 AAP MLAs as accused in the charge sheet. These MLAs are Amanatullah Khan, Prakash Jarwal, Nitin Tyagi, Rituraj Govind, Sanjeev Jha, Ajay Dutt, Rajesh Rishi, Rajesh Gupta, Madan Lal, Praveen Kumar and Dinesh Mohania.






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What are the charges?

According to the FIR, the Chief Secretary was allegedly assaulted at the camp office at Mr. Kejriwal s residence at midnight on February 19. The Chief Minister had called the meeting to discuss certain burning issues. The accused have been charge-sheeted, among other offences, for criminal intimidation (506), criminal conspiracy (120B), wrongfully confining any person (342), voluntarily causing hurt to deter public servant from his duty (332) and if an offence is committed by any member of an unlawful assembly, every other member of such assembly shall be guilty of the offence (149) of the IPC. (Adapted from The Hindu)

10. How statistical information can be used (Relevant for GS Prelims, GS Mains Paper


On the Collection of Statistics (Amendment) Act, 2017

The Collection of Statistics (Amendment) Act of 2017 authorises the Centre to decide the manner in which statistical information collected can be used. The original Act of 2008 had restricted the data collected to be used only for statistical purposes. What are the provisions under the amendment?

The Act passed in August 2017 empowers the Central government to make rules on the powers and duties of a nodal officer who may be designated to coordinate and supervise statistical activities in the Central government or a State government or Union Territory administration. It empowers the Central Government to make rules relating to the manner of using any information by the statistics officer or any person or agency under Section 6 of the Act for statistical purpose . The Act also extends the jurisdiction of the Collection of Statistics Act, 2008, to Jammu and Kashmir on statistics relevant to any matters under any of the entries specified in List I (Union List) and List III (Concurrent List) in the Seventh Schedule to the Constitution, as applicable to Jammu and Kashmir under the Constitution (Application to Jammu & Kashmir) Order, 1954. The amendment will strengthen the data collection mechanism in Jammu and Kashmir. Why was 2008 act passed?

The Collection of Statistics Act, 2008, was enacted to facilitate the collection of statistics on economic, demographic, social, scientific and environmental aspects, among others. The Act had originally extended to the whole of India, except Jammu and Kashmir. The Jammu and Kashmir State Legislature enacted the Jammu and Kashmir Collection of Statistics Act, 2010, which extends to the whole of Jammu and Kashmir and is almost a replica of the Central legislation.






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The Collection of Statistics Act, 2008, and the Jammu and Kashmir Collection of Statistics Act, 2010, were not applicable to statistical subjects falling in the Union List, as applicable to Jammu and Kashmir under the Constitution (Application to Jammu and Kashmir) Order, 1954. This had created a legislative vacuum. Moreover, the concurrent jurisdiction to be exercised by the Centre in Jammu and Kashmir has also not been provided for in the Collection of Statistics Act, 2008. The amendment statute fills the vacuum. (Adapted from The Hindu)

11. Powers to SEBI against financial frauds (Relevant for GS Prelims, GS Mains paper


Why the powers need to be given?

India s stock markets are booming, with the BSE Sensex touching new highs. The regulation of securities markets has evolved over the last two and a half decades since the setting up of the Securities and Exchange Board of India, but it is still a work in progress. Front-running, insider trading, shady accounting practices that are tantamount to window-dressing firms performance, and other shenanigans to manipulate share prices continue. What are the recommendations?

A panel headed by T.K. Viswanathan, a former Lok Sabha Secretary General, has now submitted recommendations to curb illegal practices in the markets and ensure fair conduct among investors. A key recommendation is that the stock market watchdog be granted the power to act directly against perpetrators of financial statements fraud . In essence, this means SEBI can act not only against listed entities under its extant powers but also against those who aid or abet financial fraud — including accountants and auditors. The panel has suggested that SEBI, rather than the Central government, be given the power to grant immunity to whistle-blowers who help uncover illegal activities. It has mooted new ideas to address market manipulation, from better scrutiny of price-sensitive information to the creation of processes to expedite investigation into cases. It goes to the extent of recommending that SEBI be given powers to tap phone calls. What is the rationale?

Greater executive powers, it is being suggested, can help the regulator take swifter action against offenders instead of relying on government bodies such as the Ministry of Corporate Affairs. Ostensibly, this could also free SEBI from various manifestations of political influence. Since SEBI is better placed to understand the complex nuances that financial market fraud entails, compared to other investigative agencies or even those in charge of implementing the Companies Act, it may also be better placed to enforce the law. A strong regulator serves as a good deterrent to truants in the market, but banking on fear too much could also scare away genuine investors. SEBI is widely considered to be one of






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the more efficient regulators, but it is not faultless. Last year, its order to impose restrictions on the trading of shares of 331 companies suspected of laundering money was seen as a hasty move taken under pressure from the government without a formal investigation. Given that SEBI is now considering a cap on trading by retail investors based on their assessed net worth , the committee s suggestion that it may consider any trading by players beyond their known financial resources as fraud could lead to undue harassment of investors. Granting more teeth to enable the market regulator to fulfil its primary role of protecting investors is fine. But it is equally critical to empower it with the right tools so that a sledgehammer is not deployed to crack a nut. (Adapted from The Hindu)

12. What next for the DMK after Karunanidhi (Relevant for GS Mains paper II; Polity

& Governance)

Dravida Munnetra Kazhagam leader M. Karunanidhi led the party for 50 years, won all the elections he contested and occupied the seat of Chief Minister for five terms. When he died last week, experts said that an era in Dravidian politics had drawn to a close. For Karunanidhi, his meticulously cultivated image loomed over others, contributing to the sidelining of democracy even in party affairs. The same can be said of M.G.Ramachandran and Jayalalithaa, the former leaders of the AIADMK. Karunanidhi s death has left a vacuum and there is likely to be problems in succession, though the situation is vastly different from what had happened in the AIADMK after the death of Jayalalithaa. How did it come about?

In the DMK, Karunanidhi was able to outmanoeuvre all his contemporaries after the death of party founder C.N. Annadurai and gradually gained control. It put an end to a team of leaders — V.R. Nedunchezhian, N.V. Natarajan and K.A. Mathiazhagan — who had enjoyed an equally privileged status in the organisation. A few of the sidelined leaders threw their weight behind MGR when he launched the AIADMK. For many years, district secretaries held the key to the DMK, and their importance is explained by Tiruchi district secretary Anbil Dharmalingam s response to the district magistrate. When asked to reveal his identity, he just told the magistrate that he was the district secretary of the DMK. I am like a District Collector, he said. But the DMK had to change its tactics after 18 district secretaries rallied behind Vaiko following his expulsion from the party in 1993. It evolved a strategy that effectively limited the clout of district secretaries. DMK working president M.K. Stalin started controlling the jugular vein of the organisation even when his father was alive, and the district secretaries are his staunch loyalists. He called Mr. Stalin as the embodiment of hard work, but Karunanidhi s delay in handing over the mantle to him left him at a slight disadvantage. Though a handful, including his elder brother Alagiri, pose a challenge to his leadership, Mr. Stalin has to prove his mettle as many factors play out on the ground.






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Why does it matter?

The DMK is facing a situation akin to the one that existed during MGR s rule. As long as MGR was alive, the DMK was not able to capture power in the State. The AIADMK has kept the DMK out of power for seven years, and if the present government completes its term, it will be a decade. The DMK is also not part of the government at the Centre, as it was between 1999 and 2004 and again between 2004 and 2009, when its presence at the Centre compensated for its lack of power in the State.The party s defeat to T.T.V. Dinakaran in the R.K. Nagar byelection, despite the negative image of his family background, cannot be brushed under the carpet. Actor Kamal Haasan s plunge into politics and Rajinikant s decision to launch his party and the presence of fringe Tamil nationalist groups have crowded the political landscape. What next?

The 2019 Lok Sabha election will be crucial for the DMK, especially for Mr. Stalin. While knitting together a winnable combination is a challenge, the future government at the Centre will also play a crucial role in shaping the party s future. The status of an undisputed leader will be an advantage for Mr. Stalin, but his strategy will have to factor in and overcome all the hurdles in his path in his first election as the leader of the DMK. (Adapted from The Hindu)

13. Should Article 35A be scrapped? (Relevant for GS Prelims, GS Mains Paper II;


Jammu and Kashmir (J&K) was an integral part of the Dominion of India, according to the Instrument of Accession which was signed by Maharaja Hari Singh on October 26, 1947 and subsequently ratified by the Constituent Assembly of J&K. Article 35A of the Constitution is now being vigorously contested with its constitutional validity being challenged before the Supreme Court. It has managed to create widespread legal and political controversy, despite it not even finding a mention in the regular sequential text of the Constitution. As Article 35A is reflected only in an Appendix of the Constitution, it is often missed by many legal experts. Explaining Article 35A

Article 35A was born through a Presidential Order, the Constitution (Application to Jammu and Kashmir) Order of 1954. Therefore, it was added to the Constitution without undergoing the procedure for constitutional amendments as laid down in Article 368. The Presidential Order was issued in exercise of the power conferred under Article 370 (1) (d) of the Constitution. Whether such power also extends to inserting a new Article in the Constitution is contentious. The heading of Article 35A reads: saving of laws with respect to permanent residents and their rights . Article 35A declares that any law enacted by the J&K State Legislature on the issues of permanent residence, or special privileges and rights, or imposition of restrictions, or employment, acquisition of immovable property and settlement in the State,






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or aid from the State government shall not be void on the ground that it is inconsistent with any rights conferred on other citizens of India. In short, such laws granting special rights to permanent residents would not be deemed a violation of the fundamental rights of other citizens. Classification of citizens

The classification created by Article 35A has to be tested on the principle of equality as it treats non-permanent residents of J&K as second-class citizens. Such persons are not eligible for employment under the State government and are also debarred from contesting elections. Meritorious students are denied scholarships and they cannot even seek redress in any court of law. The major sufferers are women who marry outside J&K. Though they retain their Permanent Resident Certificate, their children cannot be permanent residents. This restricts their basic right of inheritance. Further, the issues of refugees who migrated to J&K during Partition are still not treated as State subjects under the J&K Constitution. This matter requires the active participation of all stakeholders. It is necessary to give confidence to the residents of J&K that any alteration in status quo will not take away their rights but will boost J&K s prosperity as it will open doors for more investment, resulting in new opportunities. Article 35A, which was incorporated about six decades ago, now requires a relook, especially given that J&K is now a well-established democratic State. Bhupender Yadav is a BJP member of the Rajya Sabha

There is a reason why Article 35A is not found in the main body of the Constitution

The challenge to Article 35A rests on two constructs. The first is that it was inserted unconstitutionally, bypassing Article 368 which empowers only Parliament to amend the Constitution. The second is that the laws enacted in pursuance of Article 35A are ultra vires of the fundamental rights conferred by Part III of the Constitution, especially, and not limited to, Articles 14 (right to equality) and 21 (protection of life). The Instrument of Accession

Unlike other princely States that started making choices after the Partition Plan was announced on June 3, 1947, J&K dithered. On August 12, 1947, Maharaja Hari Singh signed a Standstill Agreement with both India and Pakistan. Pakistan did not honour it. It invaded J&K in the third week of October. Confronted with the absorption of his State into Pakistan, the Maharaja signed the Instrument of Accession on October 26, 1947. The schedule attached to the Instrument of Accession specified that the Dominion of India could only make laws relating to Defence, External Affairs, Communications, and ancillary matters. With the issue of plebiscite under UN auspices still hanging, India moved to consolidate its relationship with the State by enacting Article 370 on October 17, 1949. Article 370 (1) (d) reads as follows: Such of the other provisions of this Constitution shall apply in relation to that State subject to such exceptions and modifications as the President may by order specify: Provided that no such order which relates to the matters specified in the






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Instrument of Accession of the State referred to in paragraph (i) of sub clause (b) shall be issued except in consultation with the Government of the State: Provided further that no such order which relates to matters other than those referred to in the last preceding proviso shall be issued except with the concurrence of that Government. This Article empowers the President of India to extend with requisite exceptions and modifications the other provisions of the Indian Constitution to J&K as may be necessary. The Delhi Agreement of 1952 followed Article 370. Clause 2 of the agreement stated, It was agreed between the two Governments that in accordance with Article 5 of the Indian Constitution, persons who have their domicile in Jammu and Kashmir shall be regarded as citizens of India, but the State Legislature was given power to make laws for conferring special rights and privileges on the state subjects in view of the State Subject Notifications of 1927 and 1932: the State Legislature was also empowered to make laws for the State Subjects who had gone to Pakistan on account of the communal disturbances of 1947, in the event of their return to Kashmir. Clause 6 stated: With regard to the fundamental rights, some basic principles agreed between the parties were enunciated; it was accepted that the people of the State were to have fundamental rights. But in the view of the peculiar position in which the State was placed, the whole chapter relating to Fundamental Rights of the Indian Constitution could not be made applicable to the State. Please note that it said special rights for State subjects and not fundamental rights. Implications

It was pursuant to this agreement that the Constitution (Application to Jammu and Kashmir) Order of 1954 was promulgated by the President of India. It contains Article 35A, which empowers the State Legislature to define permanent residents. That is why Article 35A is not found in the main body of the Constitution; it is in the Presidential Order having exclusive application to J&K. Therefore, striking it down will have implications for other constitutional amendments contained in the 1954 Presidential Order. Manish Tewari is a lawyer and a former Information and Broadcasting Minister

Article 35A is a recognition of the conditional accession of J&K into India

Article 35A says that no law in J&K regarding restrictions imposed on employment under the State government, or acquisition of immoveable property, or settlement in the State, or scholarships and aid given by the State government shall be void on the ground that it is inconsistent with any fundamental rights in the Constitution. Introducing Article 370

Though this Article came in through a 1954 Presidential Order, it was in furtherance of the Instrument of Accession which the J&K government had signed with the Indian government. The Instrument of Accession gave only limited rights to the Centre to interfere with the autonomy of J&K. That is why Article 370 was introduced, to recognise the special status of






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J&K. It said that the power of Parliament to make laws in J&K shall be limited to those matters in the Union List and the Concurrent List which, in consultation with the State government, are declared by the President to correspond to matters specified in the Instrument of Accession. Land, rights over land, and settlement in the State are the main issues. Land is a State subject. Because of the limited accession of the State of J&K and the relatively greater autonomy given to the State, Article 35A is only a recognition of the conditional accession of J&K into India and the restrictions placed on both Parliament and the Constitution that the normal powers of Parliament to make laws will not apply to J&K. It is Article 370 that restricted the application of certain provisions of the Constitution to J&K. It is pursuant to Article 370 that Article 35A was inserted by way of the 1954 Presidential Order. All that it says is that the laws made by the state regarding settlement and acquisition of property will prevail and not be struck down on the ground that they violate fundamental rights. Incidentally, Himachal Pradesh and Uttarakhand have laws which say that no outsider can buy land. Strictly speaking, these laws are unconstitutional and violate two fundamental rights — the freedom to reside and settle in any part of the territory of India and the freedom to practise any profession, trade and business. Those laws are void. But because the accession of J&K was conditional to their being given their rights, their sovereignty with regard to matters concerning land and settlement are preserved. Therefore, it cannot be challenged on the ground that it violates fundamental rights or the basic structure of the Constitution because it is pursuant to an original part of the Constitution and pursuant to the limited accession signed with J&K. Kashmir never acceded fully to India. Therefore, it is a quasi-sovereign State. It is not like any other State. Article 35A follows the Instrument of Accession and the guarantee given to the State of J&K that the State s autonomy will not be disturbed even by the Constitution. Discrimination against women

It is for the J&K to decide, according to its laws, on the issue of discrimination against women with regard to property rights. Such a law is discriminatory according to the Indian Constitution, and is repugnant to the issue of gender equality. But under the Instrument of Accession and the autonomy given to the State of J&K, this will also have to be decided according to laws and the Constitution of the State. Prashant Bhushan is an advocate in the Supreme Court of India (Adapted from The Hindu)

14. How CJIs involved senior colleagues in benches of 3 judges and more (Relevant

for GS Prelims, GS Mains Paper II; Polity & Governance)






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Allegation against Chief Justice Dipak Misra

Chief Justice Dipak Misra s role as Master of the Roster was called into question by the other four judges in the Supreme Court collegium in January. While their complaint was about cases being assigned selectively to benches of preference , how have members of the collegium been represented in major cases (those with bench sizes of three or more)? Low representation to Collegium in CJI Misra term

A look at the numbers since January 1999, when the collegium was expanded to five judges, is revealing. It shows that the representation of collegium members other than the CJI —






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that is, those ranked two to five — is among the lowest during Chief Justice Misra s term. Until January 12, when Justices J. Chelameswar, Ranjan Gogoi, Madan B. Lokur and Kurian Joseph held their unprecedented press conference, collegium members (two to five) were involved only in 29.3% of the judgments delivered. How was representation of collegium during other CJIs tenure?

Of the 17 CJIs since January 1999, it was only during Justice G.B Pattanaik s term as CJI that the representation of the four collegium members was less. At 29.2%, it was less only by the smallest of fractions. Also, Justice Pattanaik was CJI only for just a little over a month, during which 24 judgments with benches of three or more judges were delivered. At the other end of the spectrum, former CJIs H.L. Dattu (68%), R.M. Lodha (67.5%), K.G. Balakrishnan (55.1%) and A.S. Anand (63.5%) used other collegium members most in cases involving three judges or more, going by the judgment percentages. In Justice Misra s case, the involvement of other collegium judges increased after the January 12 press conference; overall, as of July 31, it went up to 33.9%. A comparative assessment of Chief Justices in terms of involvement of other collegium members in judgments involving bench sizes of three or more is presented in the accompanying table. There were over 2,400 such judgments between January 1999 and July 2018, of which 224 were delivered by Constitution Benches — those with five judges or more. The average representation for collegium judges (barring the CJI) in major cases was 52.1% for this period. (Adapted from The Hindu)

15. Mullaperiyar: genesis of a dispute (Relevant for GS Prelims, GS Mains paper II;


What does Kerala say?

The colonial-era Mullaperiyar dam has again become a source of friction between Tamil Nadu and Kerala. Though the original dispute was over the appropriateness of the dam s water level, Kerala, already reeling under severe adverse impact from floods, has surprised everyone this time by accusing Tamil Nadu of having carried out sudden releases of water. This, Kerala says, forced it to discharge more water from the downstream Idukki reservoir, about 40 km away from Mullaperiyar, which has been cited as one of the causes for the deluge . In Kerala s assessment, Tamil Nadu should have heeded its request immediately and lowered the water level in Mullaperiyar to 139 ft for moderating floods. Defence by Tamil Nadu

Tamil Nadu, on its part, has defended its position and stated that, well before shutters of the Mullaperiyar were opened in the early hours of Independence Day (August 15), excess water was being discharged through the flood gates of several dams in Kerala. Besides, compared to about 36 thousand million cubic feet (TMC) of water released from the Idukki






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and Idamalayar dams in the Periyar basin from August 14-19, the amount of water released from Mullaperiyar at the same time was hardly 6.65 TMC, which was far less than the quantities of water that flowed from the other two dams. Mullaperiyar, the safety of which has been confirmed by experts on several occasions, has enough provision to handle flood flows: this is how Tamil Nadu justified its stand, and denied the charge made by its neighbour. About Mullaperiyar dam

For those uninitiated into the history of the Mullaperiyar, here are some facts: the dam, located in the Idukki district of Kerala, is operated and maintained by Tamil Nadu for meeting the drinking water and irrigation requirements of five of its southern districts. As a sequel to an agreement signed between the then Travancore and Madras governments in October 1886, about 8,000 acres was leased by the former to the latter for the execution of the dam project. The dam was built over the period from 1887 to 1895. Troubles begin

Everything went smoothly for nearly 80 years. But, in 1979, a row erupted over the safety of the dam. Consequently, in November 1979, a tripartite meeting chaired by the then head of the Central Water Commission, K.C. Thomas, decided that water level had to be brought down from the full reservoir level of 152 ft to 136 ft, in order to enable Tamil Nadu carry out dam strengthening works. By mid-1990, Tamil Nadu started demanding restoration of the water level in the Mullaperiyar as it had completed the task assigned to it. When no consensus was reached through negotiations, the Supreme Court was approached. In two separate judgements, in 2006 and 2014, the apex court held that the water level be raised to 142 ft. It is against this background that the latest controversy has to be viewed. An element of uneasiness has entered the ties between Tamil Nadu and Kerala on the subject of water. The equation between the two States is far more complex than those of Tamil Nadu with Karnataka. With Kerala, Tamil Nadu has issues on several river waters, such as Parambikulam-Aliyar, Siruvani of the Bhavani sub-basin, Neyyar, and the proposal for linking the Pamba and Achankovil rivers of Kerala with Vaippar of Tamil Nadu. But, in the case of Karnataka, Cauvery is the only river to be considered. As for events concerning the present Kerala floods, there has been criticism in certain quarters that the authorities in the State delayed the release of surplus water until the end. Officials of Tamil Nadu, too, are of the view that it was their counterpart that had mismanaged the release of water from its reservoirs, and only a negligible amount of

water flowed from the Mullaperiyar to Kerala. Overlooked

What is being overlooked in the current discourse is that Kerala, after a gap of five years, is experiencing a bountiful southwest monsoon (June-September). As a matter of fact, between 2010 and 2017, there was only one excess monsoon — in 2013. There were three deficit years (2012, 2015 and 2016), while the remaining four years had a normal monsoon . Even in the normal years, two years recorded a negative value of departure for






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rainfall. So, Kerala s water managers were under enormous pressure to store as much water as possible. This could have possibly come in the way of their judgement in commencing the release of water even at the beginning of August, when the storage in two important dams — Idukki and Idamalayar — was a little more than 90% of their capacity. According to an August 19 report by the Meteorological Department, in all of 35-odd major reservoirs in Kerala, storage was close to the full reservoir level (FRL) by the end of July, and there was no buffer storage left to accommodate heavy inflows from August 10.

Tendency to store

Indeed, the tendency to store water to almost the full level of reservoirs is becoming a norm among water managers across States. In mid-July, Karnataka, too, started releasing surplus waters from the Kabini and Krishnaraja Sagar dams on the Cauvery system only when it knew that it could not hold any more water. Fortunately, the Mettur dam in the Salem district of Tamil Nadu is big enough to accommodate all the flood flows. For the last one month, Mettur, too, has been releasing excess water flows. In December 2015, Tamil Nadu also faced criticism for delaying the release of surplus water from the Chembarampakkam tank, causing floods in Chennai.






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In the current battle over the Mullaperiyar, the Supreme Court has come Kerala s rescue by telling Tamil Nadu to keep the water level in the dam at 139 ft till the end of August. But Kerala and Tamil Nadu must introspect seriously over their respective positions and avoid acrimony while protecting their interests. (Adapted from The Hindu)

16. Need for national policy on utility of a second chamber in States (Relevant for GS

Prelims, GS Mains Paper II; Polity & Governance)

If there was any real benefit in having a Legislative Council, all States in the country should, and arguably would, have a second chamber. The fact that there are only seven such Councils suggests the lack of any real advantage, apart from the absence of a broad political consensus on the issue. What is Odisha’s stand?

Now Odisha wants to join the group of States that have an Upper House. The State Cabinet has approved a 49-member Legislative Council, accepting the report of a committee set up in 2015 to study the functioning of the second chamber in other States and make recommendations. What is the process to create legislative council?

The process of creating an Upper House is lengthy. The State Assembly has to pass a resolution for the creation of the Council by Special majority of its total membership. Thereafter, Parliament has to enact a law to create it. Two Bills introduced in the Rajya Sabha in 2013 for establishing Legislative Councils in Assam and Rajasthan are still pending, indicating the lack of support for such a move. A parliamentary committee that went into these Bills cleared the proposals, but struck a cautionary note. Need for national policy

It wanted a national policy on having an Upper House in State legislatures to be framed by the Union government, so that a subsequent government doesn t abolish it. It also favoured a review of the provision in the law for Councils to have seats for graduates and teachers. Pros and cons

The advantages of having a bicameral legislature are well-known. An Upper House provides a forum for academicians and intellectuals, who are arguably not suited for the rough and tumble of electoral politics. At least on paper, it provides a mechanism for a more sober and considered appraisal of legislation that a State may pass. The objections to the second chamber are varied. Rather than fulfilling the lofty objective of getting intellectuals into the legislature, the forum is likely to be used to accommodate party functionaries who fail to get elected. It is also an unnecessary drain on the exchequer.






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Another issue is that graduates are no longer a rare breed; also, with dipping educational standards, a graduate degree is no guarantee of any real intellectual heft. And then again, why should graduates be privileged as people s representatives in a democracy? Way forward

Today, legislatures draw their talent both from the grassroots level and the higher echelons of learning. There are enough numbers of doctors, teachers and other professionals in most political parties today. The Rajya Sabha s case is different as it represents the States rather than electoral constituencies. It is also a restraining force against the dominance of elected majorities in legislative matters. Legislative Councils are subject to varied and inconclusive discussions around their creation, revival and abolishment. Given all this, Odisha s proposal may give the country at large an opportunity to evolve a national consensus on Legislative Councils. (Adapted from The Hindu)






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International Organization and Bilateral

Relations

1. Hope in Harare? — on victory in Zimbabwe elections (Relevant for GS Prelims, GS

Mains Paper II; IOBR)

President election result

Mnangagwa's victory as President in general election confers popular legitimacy on Emmerson Mnangagwa, Zimbabwe s military-installed leader since November 2017. The two-thirds majority for the ruling Zanu-PF party in Parliament will tighten its control over state institutions. There had been palpable relief in Harare when the 37-year-long dictatorship of the veteran liberation leader Robert Mugabe was brought to an end in a soft coup last year. Why are the elections important? : The first since Mugabe

This election is the first in decades without Robert Mugabe, 94, Zimbabwe s ruler for 37 years who once declared he could be removed from power only by God, but who was forced to resign in November last year following moves to impeach him. For many years, Mugabe s main opponent was Morgan Tsvangirai, Prime Minister from 2009 to 2013, and who contested for President against Mugabe in 2002 and 2008. Following Tsvangirai s death this February, Monday s election was fought between 75-year-old Mnangagwa (who succeeded Mugabe as President) and Nelson Chamisa, 40, the new leader of the MDC. Another 21 minor candidates were also in the fray. Fifty-five parties contested the election for Parliament. There were over 56 lakh voters, 43.5% of whom were under age 35. International scrutiny

Unlike Mugabe, Mnangagwa allowed international and regional observers for the election. This was the first time in 16 years that representatives from the European Union, US and the Commonwealth — countries that the former President thought were hostile to him — monitored a Zimbabwean vote. On Wednesday, the observers were divided in their assessment of the election — the EU delegation said there was an improved political climate, but un-level playing field and lack of trust and underlined bias in the media and intimidation of voters, while the African Union team and the Southern African Development Community observers said the elections had been peaceful and lawful, the BBC reported. Impact on economy

Tawanda Majoni, national coordinator at the media advocacy group Information for Development Trust, told The New York Times that irrespective of the outcome, the vote could potentially help transform Zimbabwe s economy, as long as the results were not contested. If the ruling post-Mugabe establishment wins to form a government on its own, the results may be contested, meaning that the resulting government may lack legitimacy among key international powers and aid providers, Majoni was quoted as saying. On the other hand, if the opposition wins and the current government, in which the military has a high stake, accepts the outcome, this may also encourage international investors,






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development agencies and embassies to render substantial economic, social and political support . Mugabe faced widespread international criticism for alleged electoral fraud, and its struggling economy suffered further as a result of the sanctions it faced.

(Adapted from The Hindu and The Indian Express)

2. Dissent & diplomacy: on the Saudi-Canada spat (Relevant for GS Prelims, GS Mains

Paper II; IOBR)

Saudi-Canada spat

Saudi Arabia s furious response to Canada s criticism of the arrest of rights activists in the Kingdom once again calls into question Crown Prince Mohammed bin Salman s professed commitment to reform. Having ascended last June to be second in line to the throne, he had promised progressive economic and political change. Since then, Saudi Arabia has allowed women to drive, cracked down on hardliners among the clergy and projected itself as a moderate Islamic country that respects people s rights, compared to extremist Iran . What has happened recently?

But when Canadian Foreign Minister Chrystia Freeland called for the release of Samar Badawi, a Saudi women s rights activist who was detained last week, and her brother Raif Badawi, Riyadh took a series of unilateral steps. Terming Ms. Freeland s appeal as interference in its domestic affairs, it expelled the Canadian Ambassador, called back its envoy from Ottawa, froze trade with Canada and said it would transfer out some 12,000 Saudi citizens studying in Canadian universities. Ms. Badawi has long campaigned against Saudi Arabia s guardianship laws that require all Saudi women to have a male guardian. Riyadh is yet to give reasons for the arrest. Her brother, who ran a website critical of the Saudi religious establishment, was sentenced to 10 years in jail and 1,000 lashes in 2014. Against the reformist agenda of Saudi Arabia

On overseas visits, Prince Mohammed has dwelt on his plan to improve women s rights and strengthen the economy. He is also obliquely critical of the guardianship laws, saying they did not exist in Saudi Arabia before 1979 — the year of the Iranian revolution and the siege of the Grand Mosque at Mecca. But despite this rhetoric on rights, the palace has shown little tolerance of political criticism at home. Since May, many women s rights activists have been detained. In addition, dozens of lawyers, human rights defenders and intellectuals have been arrested since September 2017. What is the stand of Canada?

Interestingly, while most Western governments refrain from commenting on the crackdown against dissent in Saudi Arabia, Canada has given refuge to Mr. Badawi s wife and children. For Canada, the spat could prove costly. Saudi Arabia is its second largest export destination in West Asia. The two countries have signed a $12 billion arms deal, which is still in the works. But despite the aggressive Saudi response, Ottawa had stood by its Foreign Minister, saying it will continue to back the protection of human rights, including women s rights . For Prince Mohammed, the diplomatic crisis is an opportunity to rethink the Kingdom s approach towards dissent and diplomacy. If he is indeed serious






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about reform, Riyadh should be lenient towards its advocates. Taking vengeful action against those who stand by rights activists will neither help Saudi Arabia s image nor attract investment into the country. (Adapted from The Hindu)

3. Tight-fisted neighbour? Indian aid to SAARC nations falls (Relevant for GS Prelims,

GS Mains Paper II; IOBR)

Level of financial assistance to neighbours

Going by government data, assistance fell from Rs. 5,928.6 crore for 2013-14 to Rs. 3,483.6 crore for 2017-18; but Maldives has been an outlier, despite the dip in ties India s financial assistance to SAARC neighbours declined considerably in the past five years, a reply by the government in Parliament this week showed. According to the figures, the GA actually fell from Rs. 5,928.6 crore for 2013-14 to Rs. 3,483.6 crore for 2017-18 for Afghanistan, Bangladesh, Bhutan, the Maldives, Nepal and Sri Lanka combined. Trend over the years

Significantly, the drop for most SAARC countries was most steep in 2014, the year the NDA government launched its tenure with the Neighbourhood First slogan. The one exception was the Maldives, to which Indian assistance has been consistently increasing year on year since 2013, despite the dip in bilateral ties. The Maldives is the only country of the grouping that Prime Minister Narendra Modi has not yet visited, and despite rising tensions between New Delhi and Male over the conduct of elections this year and the crackdown on the Opposition parties by President Abdulla Yameen, Indian largesse appears to have increased ten-fold to the islands: from Rs. 9.67 crore in 2013-14 to Rs.109.24 crore.






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Explanation by officials

However, officials gave a number of explanations for the downtrend. Our commitment to the neighbourhood has never been as strong, said an Indian diplomat now serving in the region, explaining that the GA figures did not include the lines of credit extended to Nepal, Sri Lanka and Bangladesh. These lines of credit are given at the minimal interest rates of 1-2%, the official explained, compared with loans offered by China at 6-7%. Another South Block official strongly denied the contention that the declining figures showed a flagging interest in the government s neighbourhood policy. The official said financial assistance had a cyclical nature, and the GA figures for 2018-19 were expected to be higher for each of the countries involved. When asked, officials conceded that one of the major reasons for the decline was that many projects had been completed in the neighbourhood, and there were fewer projects started in the period since 2014. Where was aid utilized?

In Afghanistan, India has shifted to work on small development projects (SDPs) rather than the ambitious highways, dams and big building projects that were started in 2008-09. In Bangladesh, the main grant for land acquisition for the Akhaura-Agartala rail last link project has now been completed. In Bhutan, which has always received the largest share of Indian assistance, the assistance required for major hydroelectric power plants like Punatsanghchu 1 and 2 and Mangdechu has been disbursed 75-90%, said officials, while Indian assistance to Bhutan s 11th five-year plan (2013-2017) has been handed over nearly fully. In Sri Lanka, the decline was explained by delays in land acquisition for 15,000 homes






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to be built by India in the plantation areas, though the work on 45,000 homes in the north and east of the island has been completed. India is still completing three main projects in Maldives: a police academy, a coastal radar project, and the refit of MNDF ship Huravee. An offer to build a new Defence Ministry building is pending, which explains why the Maldives alone the outlier to an otherwise declining trend in neighborhood aid is. (Adapted from The Hindu)

4. Mnangagwa, Zimbabwe’s new hope (Relevant for GS Prelims, GS Mains Paper II;

IOBR)

Zimbabwe s newly elected President, Emerson Dambudzo Mnangagwa of the Zanu-PF party, has seldom shrunk from the rough and tumble of realpolitik. Born in a family of farmers, the septuagenarian veteran had come ominously close to being executed for plotting to blow up a rail line during the nation s liberation struggle from Britain. The sentence was commuted to a prolonged jail term because he was a minor at the time. How did he replace Mugabe?

Last November, when Mr. Mnangagwa was dismissed as Vice-President of the southern African nation by the deposed dictator of 37 years, Robert Mugabe, history was merely repeating itself. He was elevated to that position in late 2014, in a sequel to the removal of Mr. Mugabe s No. 2 at the time and a potential heir-apparent. In a strange irony, the victory against Joice Mujuru also meant a recompense for Mr. Mnangagwa s failed bid for the vice-presidency a decade earlier. When the 2017 version of Harare s palace intrigue began to unfold, it was also time for independent Zimbabwe s history to be rewritten. Mr. Mnangagwa went briefly into exile, but returned as the popularly hailed, even if army-installed, President, dealing a decisive blow to the machinations of the former first lady. Why is he controversial?

The long career of President Mnangagwa, a known hardliner and Mugabe loyalist, is inevitably intertwined with Harare s descent into authoritarianism under his mentor. As the country s intelligence chief in the 1980s, critics hold Mr. Mnangagwa accountable for the Gukurahundi massacre of thousands of civilians by Mr. Mugabe s Fifth Brigade. His role in the appropriation of agricultural land from the white minorities has also come under sharp criticism. In more recent years, Mr. Mnangagwa has nurtured his presidential ambitions through the Team Lacoste faction — an allusion to the liberation army — within the Zanu-PF, against the rival Generation 40 group. On assuming charge last November, Mr. Mnangagwa assured a hopeful nation that his writ would be the people s will, assuaging concerns that the new President might end up being a prisoner of the past. He invited international observers, expelled for years, to monitor the general election, which he promised would be free and fair. In a positive signal to investors, the government agreed to ease the requirement for overseas firms to give a 51% stake to local partners. Mr. Mnangagwa also stressed that all






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other sectors, except diamonds and platinum, were open for foreign investment. The new narrative was broadly corroborated by evidence of a transparent voter registration system, freedom of expression and absence of intimidation of the Opposition. The climate in the run-up to the July 29 vote fuelled expectations that the election would bestow popular legitimacy on the new President, handing him a mandate to implement political and economic reforms. But the post-poll scenario has been marred by violence and fatalities familiar from the Mugabe era. The Opposition Movement for Democratic Change and international monitors have alleged that the defence forces were behind the atrocities. What’s the way forward?

Against this backdrop, the President s urgent priority is to live up to the trust reposed in him by millions only months ago to liberate the nation from dictatorship and lift them out of poverty. For his part, Mr. Mnangagwa is keen to reopen the country to foreign investment, to re-engage with multilateral lenders and rejoin the British Commonwealth. Western capitals have been enthusiastic about building bridges with Harare, once a regional export hub and home to a vast educated population. But they have insisted on adherence to democratic standards and respect for human rights as preconditions for debt relief. Over these many years, Mr. Mnangagwa has burnished his credentials as a more pragmatic than ideological politician, unlike his strongman predecessor. Count on him to renew ties with the West, but without compromising the close economic bonds built with China. The latter, after all, comes with fewer strings attached. (Adapted from The Hindu)

5. Siege of Ghazni: On the Taliban offensive (Relevant for GS Prelims, GS Mains Paper

II; IOBR)

The massive Taliban assault on the strategically important Ghazni city in southeastern Afghanistan has exposed the vulnerabilities of Afghan troops once again. If the city falls, it could alter the balance in the stalemated war, rendering the government in Kabul more vulnerable. Importance of Ghazni

Ghazni is about 150 km from Kabul, and is close to a major highway connecting the capital to the south, the Taliban s stronghold. Some neighbouring provinces border the tribal areas of Pakistan, from where militants travel freely to and from Afghanistan. About Ghazni attack

The assault was not unexpected. For months, Taliban fighters have been surrounding the city, and had even started collecting taxes on its outskirts. Yet, the government failed to make the first move, boost the city s defences or prepare it for the eventual assault. On August 10, when about 1,000 Taliban fighters advanced into Ghazni, the security forces did not put up a strong enough fight. They retreated to defend the main government buildings, allowing the militants to take positions elsewhere. They are now fighting back, with help from the U.S. Air Force. But since the assault began, and with at least 100 security






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personnel and over 20 civilians dead, government troops are yet to make any major progress in beating back the Taliban. Reduction in chances of peace

Curiously, the attack has happened at a time when the Afghan and U.S. governments have been pushing for talks with the Taliban. Recently, American diplomats met Taliban representatives in Doha, and Kabul was preparing for a second ceasefire after a brief truce by both sides for Id. The Taliban s strategy, as it is emerging, is to make maximum military gains before entering into talks. Rising Taliban

On the other side, the challenge before the Afghan government and the U.S. is to reverse the Taliban s momentum. If they want to extract compromises from the Taliban, they need to first increase military pressure on the group. The Trump administration has boosted American troop presence in the country, which now stands at 14,000. It has also stepped up its air campaign against the militants. But despite these measures, government troops have failed to make any breakthrough. In recent months the Taliban has captured several districts and carried out attacks almost on a daily basis across the country — almost 44% of Afghanistan s 398 districts are controlled or contested by the insurgents. They may have failed to capture any major urban centre, but that hasn t deterred them from trying. Over the past two years, the Taliban carried out suicide attacks on Kunduz and Farah. And now, Ghazni is under attack. President Ashraf Ghani s government, grappling with infighting and corruption among other problems, appears clueless about how to prevent a Taliban advance. Kabul might take Ghazni back with U.S. assistance, but the question is whether the government can change the status quo. If it cannot, more urban centres could come under attack. (Adapted from The Hindu)

6. Reality check: On simultaneous polls (Relevant for GS Prelims, GS Mains Paper II;

IOBR)

Chief Election Commissioner O.P. Rawat s view that it is not possible to hold simultaneous elections to the Lok Sabha and the State Assemblies soon is a realistic assessment of the humongous task ahead of the Election Commission before it can embark on such an ambitious venture. Mr. Rawat has, in particular, ruled out the possibility of holding elections to the Lok Sabha this December along with polls to the Assemblies of four States. Legal and logistical challenge

In addition to the basic requirement of a legal framework under which the extension or curtailment of the term of any Assembly is constitutionally permissible, simultaneous elections would demand a massive increase in the number of electronic voting machines (EVMs) and voter-verifiable paper audit trail (VVPAT) units. Mr. Rawat has pointed out that altering the term of an Assembly needs an amendment to the Constitution. Moreover, ensuring the availability of VVPATs everywhere poses a logistical challenge.






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Upcoming elections

Mizoram is due for elections in December, as the term of the Assembly ends on December 15. This will be followed by Chhattisgarh, Madhya Pradesh and Rajasthan, with the terms of their Assemblies ending on January 5, 7 and 20, respectively. A new batch of VVPAT units is expected only by the end of November, and it takes a month for first-level checking, rendering the possibility of using them in the next round of elections remote. The logistics are bracing, too. Simultaneous elections will require the use of 24 lakh EVMs, needing the procurement of 12 lakh EVMs and an equal number of VVPAT units, according to its estimate. These figures ought to give pause to the clamour to hold simultaneous Assembly elections with the next Lok Sabha polls. Chances of political resistance

It goes without saying that a wide political consensus, as well as legislative cooperation from various parties at the Centre and in the States, is required for holding simultaneous elections. It is natural that parties that control legislatures constituted in recent months or years would resist any curtailment of their tenures, while those in the Opposition may prefer simultaneous polls if it means Assembly elections being advanced. Need for simultaneous polls

Bharatiya Janata Party president Amit Shah has written to the Law Commission favouring simultaneous polls, giving a fillip to the idea. The crux of the argument in favour of the concept is that the country is perpetually in election mode, resulting in a lack of adequate focus on governance. The second contention is that scattered polling results in extra expenditure. What is the dilemma?

The question before India is, in order to address these two issues, can legislature terms be curtailed without undermining representative democracy and federalism? Given the procedural and logistical challenges that holding of simultaneous elections pose, it would be far more productive for political parties to focus on basic electoral reforms and find ways to curb excessive election expenditure. (Adapted from The Hindu)

7. Stay with RCEP: India (Relevant for GS Prelims, GS Mains Paper II; IOBR)

Negotiations on RCEP towards end

Negotiations on the Regional Comprehensive Economic Partnership, among 16 Asian and Pacific Ocean countries, have entered a decisive phase. Most potential member-countries of the grouping, that comprises the 10 ASEAN members and their Free Trade Agreement partners, Australia, China, India, Japan, New Zealand and Republic of Korea, would like to see a substantive agreement on the trade deal by the end of this year.






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Recent meeting on RCEP

At a meeting in Singapore, which is driving the effort as the current ASEAN chair, countries which still have issues with the outline of the agreements reached so far may be told politely to step aside and allow a smaller group to go ahead with finalising the RCEP, with the option to join it at a later date. India’s position

India is among the countries that will have to take a call at this point, and the government s decision to set up a group of four ministers to advise Prime Minister Narendra Modi on the path ahead indicates the seriousness of the situation. India s concerns with RCEP negotiations thus far are manifold, but some have been addressed. 1. The first is the greater access Chinese goods will have to the Indian market, a problem given India s massive trade deficit. To circumvent this, given that India is the one country that doesn t have an FTA with China, the government has proposed a differential market access strategy for China, which others are inclined to accept. After the Wuhan summit, India and China have made progress on addressing the trade deficit, with China increasing access for Indian goods such as pharma and agricultural products. 2. The second concern is about demands by other RCEP countries for lower customs duties on a number of products and greater access to the market than India has been willing to provide. 3. On the other hand, the more developed RCEP countries such as Australia and Singapore have been unwilling to accommodate India s demands to liberalise their services regime and allow freer mobility of Indian workers. What are possible ramifications?

Naturally, none of this is made easier by the fact that some of the RCEP countries, including India, are headed for elections next year, a point where governments traditionally turn protectionist. Despite these concerns, the government must take into account the deeper strategic pitfalls of either slowing down India s RCEP engagement or walking out of the talks at this stage. Doing so would cut India out of the rules-making process for the RCEP and give China further space in the regional trade and security architecture. At a time when the U.S. has broken from the global concord on multilateral trade agreements, an Indian walkout would endanger the united message that RCEP countries, which represent 40% of the global GDP, would wish to send out. It would also be a sharp departure from India s Act East slogan and its extended outreach to ASEAN. What is RCEP?

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP is a proposed free trade agreement (FTA) between the ten-member states of the ASEAN and six other nations, namely Australia, China, India, Japan, South Korea and New Zealand.






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(Adapted from The Hindu)

8. Beyond words: On Indo-Pak ties (Relevant for GS Mains Paper II; IOBR)

Recent developments in Indo-Pak relations

In the midst of the inane controversy over Punjab Minister Navjot Singh Sidhu s presence at Pakistan Prime Minister Imran Khan s swearing-in ceremony, there have been more substantive exchanges between New Delhi and Islamabad. 1. In his first statement after the Pakistan Tehreek-e-Insaf emerged as the single largest party, Mr. Khan singled out India as a foreign policy relationship he hoped to work on, offering to walk two steps for every one step that India took. 2. Narendra Modi responded with a phone call, and they spoke of a shared vision of peace and development . 3. Next, the Indian High Commissioner called on Mr. Khan and presented him a cricket bat with the signatures of the Indian team members. 4. Mr. Khan s new appointee on the Pakistan Cricket Board has said that resuming bilateral cricket is high on the leader s agenda for improving people-to-people ties. 5. Last week, a delegation led by a Minister in Pakistan s caretaker government came to Delhi to attend Atal Bihari Vajpayee s funeral. 6. Pakistan s new Foreign Minister, Shah Mehmood Qureshi, said Mr. Khan had received a congratulatory letter from Mr. Modi calling for the two countries to pursue constructive engagement . 7. Mr. Khan tweeted that trade and resolution of differences through dialogue are the best way to uplift the people in the subcontinent . All these gestures confirm that both the Prime Ministers are at least sticking by diplomatic courtesy against the backdrop of an otherwise acrimonious relationship. What needs to be done?

Well-chosen words, however, will not be enough. To begin with, there appears to be very little trust in any quarter of both capitals. Political scenario

Both leaders face political realities that could inhibit them from taking any major risks. Mr. Modi, who dealt with the Pathankot airbase attack just days after his visit to Lahore in December 2015, may well prefer to avoid such overtures, especially with Lok Sabha elections due in less than a year.






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Mr. Khan, who commands a thin majority in Parliament, and has frequently criticised his predecessors for close ties with India, may choose to remain conservative. Even so, the steps needed are clear. From where the relations should build?

To begin with, the situation at the Line of Control urgently needs attention, and a restoration of the ceasefire would be a major move forward for both countries. Mr. Khan could earn Pakistan an economic breather if he adheres to the international Financial Action Task Force s demands on ending terror financing; he would earn more goodwill by directly addressing India s concerns on the support to terrorists in Pakistan, and those being pushed over the LoC. These actions could set up an even bolder move, no matter how unlikely it currently seems: for Mr. Modi to agree to restore the SAARC process by attending the long-delayed summit due in Islamabad this year. Much work, preferably behind the scenes, is needed if Mr. Modi and Mr. Khan hope to realise any of the objectives they have spoken of over the past month. (Adapted from The Hindu)

9. Contested numbers on overstayers (Relevant for GS Prelims, GS Mains Paper II;

IOBR)

How the controversy has affected India-U.K. ties

What is the issue?

Britain has long insisted that too many Indians have been overstaying their visas. It has cited this as a reason for not relaxing visa rules for Indians. In 2016, British Prime Minister Theresa May had said that Britain would consider giving India an improved visa deal if, at the same time, we can step up the speed and volume of returns of Indians with no right to remain in the U.K. India acknowledged the problem and cooperated in the U.K. s crackdown on bogus colleges that enrolled international students but did not have the required standing. However, it has challenged the U.K. on the extent of the issue, and has asked why Britain would allow this one issue to stand in the way of better bilateral ties. How many students are alleged to have overstayed?

There are no official figures on Indian overstayers. In 2017, a senior official suggested that Indians represented the largest number (more than 100,000). However, Britain s process of assessment itself came under question later when figures from exit checks revealed that around 4,700 international students (from across non-EU countries) had overstayed their visas in 2016-2017, as against the previous government estimates of 100,000 annually. Is there sign of a resolution?






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Earlier this year, a Memorandum of Understanding (MoU) on the return of illegal immigrants was set to be signed during Prime Minister Narendra Modi s visit to the U.K. However, Indian concerns over Britain s demand that Indian authorities would have only 15 days to verify the antecedents of an undocumented migrant resulted in the MoU being shelved for the time being. Nevertheless, even without the MoU, individuals continue to be returned to India, once their details are verified. Where do things stand?

Things got more tense in June when Britain excluded India from relaxed visa norms for students, and International Trade Secretary Liam Fox linked it to the MoU issue. India s demands for easier norms as part of a constant conversation between the two countries cannot be dealt with if India does not address the issue of overstayers, he said. I am sure there are many [overstayers], but where did this figure of 100,000 come from?

asked the Indian High Commissioner to the U.K., Y.K. Sinha, in June. It is clear that the issue will remain atop the agenda for some time. (Adapted from The Hindu)

10. Trump’s trade wars (Relevant for GS Prelims, GS Mains Paper II; IOBR)

What is it?

On August 23, the U.S. and China imposed new tariffs on $16 billion imports from each other, completely carrying out the threats and counter threats made in April. Now, China and the U.S. have tariffs on imports of $50 billion from each other. More is coming. On July 10, the U.S. announced plans to have tariffs on $200 billion of Chinese imports, and on July 20 President Donald Trump said he was ready to impose tariffs on all imports from China. The U.S. imports from China totalled $504 billion in 2017. The Trump administration believes that since the U.S. imports from China are more than its exports to China, it would win any tariff war. That is an untested claim. How did it come about?

What is clear is that the administration of President Donald Trump is clearly in the grip of the nationalists, who have outsmarted the globalists in it. Commanding the trade war on Mr. Trump s behalf is Peter Navarro, White House s Director of Trade and Industrial Policy. His main target is China, whom he accuses of economic aggression, but the war is total. Key military allies of the U.S. — Canada, Germany, South Korea, Japan, and Turkey — are today locked in multiple trade disputes with it, being fought at multiple forums. So are countries such as Mexico and India, close partners of America, though not military allies. Mr. Trump and Mr. Navarro claim they are both free traders. For this administration, free trade means trade that is free, fair, reciprocal and balanced. And in a world where we have free, fair, reciprocal and balanced trade, we would have zero tariffs. We would have zero non-tariff barriers. We would have zero subsidies to industry. We would have zero incidents of currency manipulation and currency undervaluation, Mr. Navarro said,






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explaining the rationale for expanding restrictions on trade and investment by the U.S. at a discussion in the American capital recently. He accused China, Japan, Germany and South Korea, among others, of being in violation of the above principles. Why does it matter?

In January, the administration-imposed tariffs on import of washing machines and solar panels to America. China and South Korea took the issue to the World Trade Organisation (WTO). The U.S. would respect decisions by the WTO when they are in its favour and reject the rest, National Economic Council (NEC) Director Larry Kudlow said in June. Tariffs of 25% on steel and 10% on aluminium on all trading partners, announced in March citing national security grounds, in an unprecedented move, have also kicked in. The EU, Canada and Mexico, which supply around half of all steel and aluminium imports to the U.S., retaliated with their own tariffs. The U.S. has filed WTO complaints against several countries that imposed retaliatory tariffs. What lies ahead?

While the trade war is widely seen as a Trump initiative, there is bipartisan support in the U.S. Congress for tough measures against China. The U.S. s annual trade deficit is around half a trillion dollars. China accounts for 50% of this, according to Mr. Navarro. The EU accounts for 20% and Japan and Mexico combined make 18%. Mr. Trump and Mr. Navarro believe that this has nothing to do with competitive advantage of others but happens only because of the unfair practices of America s trading partners. The surplus earned by China comes back to the U.S. economy as investments. The Trump administration is also cracking down on Chinese investments in U.S. companies. Bringing traditional manufacturing back to America is a difficult task, and American policy makers are conscious of that fact. The trade war appears more focussed on stopping China from commanding the lead in technologies of the future. The National Defense Authorization Act for 2019 has provisions on monitoring some foreign investments in the U.S. and outbound transfers of technology. (Adapted from The Hindu)

11. Easing tensions: on U.S.-Mexico trade deal (Relevant for GS Prelims, GS Mains

Paper II; IOBR)

Trade deal between US and Mexico

Amid rising global trade tensions, there are some signs to hope that all is not lost. The United States and Mexico reached a breakthrough bilateral trade agreement replacing the decades-old North American Free Trade Agreement (NAFTA) after Mexico agreed to concessions demanded by the Donald Trump administration. What are the terms of the deal?

According to the new agreement, 75% of all automobile content must be made regionally, which is higher than the current level of 62.5%. Further, 40-45% of such content must be






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manufactured using labour that costs at least $16 an hour. The U.S. hopes that this will discourage manufacturers from moving their facilities to Mexico, where labour is available at rates lower than in the U.S. Possibility of new terms with Canada

It has also invited Canada to join talks for a renegotiation of trade terms in favour of U.S. interests. Notably, the U.S.-Mexico bilateral trade deal comes in the aftermath of President Trump s statement in June that he might enter into separate trade agreements with Canada and Mexico, thus effectively junking the tripartite NAFTA deal. Impact of US economy

U.S. stocks rallied after news of the deal, with the Nasdaq Composite index moving above the 8,000 level for the first time ever and the Dow Jones index breaking above 26,000. The market reaction was probably a sign of relief, riding on hopes that tit-for-tat tariff wars between the U.S. and its trade allies could now draw to a close. It is worth noting that Mexico had earlier joined hands with other economies such as Canada, China and the European Union to impose retaliatory tariffs against the U.S. What are the new possibilities now?

Mexico s decision could set an example for other countries which have resorted to retaliatory tariffs to deal with Mr. Trump s aggressive trade war against them. China has been at the forefront of this approach, slapping tariffs on several U.S. goods, together worth billions of dollars. There can be no doubt that Mr. Trump s protectionist trade policy,including the current deal which increases restrictions on cross-border trade in order to protect U.S. jobs, is bad for the global economy. However, the best way to win the trade war against the U.S. may simply be to accept defeat by refusing to double down on retaliatory tariffs. The reason for such a response is

simple. Retaliatory tariffs can only cause further harm to the world economy by increasing the burden of taxes on the private sector, which is crucial to spur growth and create jobs. Further, there is no reason for America s trading partners, in an attempt to protect their domestic producers, to repeat Mr. Trump s mistake of depriving domestic consumers of access to useful foreign goods. The right response to Mr. Trump s trade war will be to abstain from any mutually destructive tit-for-tat tariff regimes while simultaneously pushing for peace talks. (Adapted from The Hindu)

12. A look at what the Two plus two upcoming India-U.S. dialogue means (Relevant

for GS Prelims, GS Mains Paper II; IOBR)

India will host the inaugural round of the two-plus-two dialogue with the United States on September 6. What is the purpose of the 2+2 dialogue next week?






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The India-U.S. 2+2 dialogue will see the External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman meet U.S. Secretary of State Mike Pompeo and Defence Secretary James Mattis on September 6 in Delhi. The purpose is to get four key policymakers on the same page. This stems from the idea that India-U.S. ties are increasingly strategic, and in recent years, there have been concerns that while military ties and exercises have increased rapidly, diplomatic convergences aren t keeping pace. Conversely, despite close diplomatic exchanges, key defence agreements have not yet been completed. Several deals and high technology purchases require U.S. Congress clearance too, so it was felt necessary for the defence and diplomatic arms of Delhi and Washington to meet. The talks will also review the U.S. s South Asia policy on Afghanistan and its Indo-Pacific strategy, both of which give India centre stage. Why is it taking place now?

The idea for the meeting was discussed when Prime Minister Narendra Modi visited Washington in June 2017 and was subsequently announced by U.S. President Donald Trump. However, scheduling the four principals, each of whom has independently busy schedules, has been difficult. The two sides were finally able to agree on a date in April 2018 in Washington, but the meeting was put off after former Secretary of State Rex Tillerson was fired. Another date in July was cancelled at the last minute as Mr. Pompeo had to fly to North Korea instead. Officials hope the September date in Delhi will prove third time lucky and end commentary that the U.S. administration was not giving the meeting due priority. What are some of the achievable outcomes from the visit?

Ahead of the talks, a senior U.S. official said the 2+2 will discuss how to operationalise India s status as a major defence partner . Apart from discussions on various defence purchases ranging from missile systems (NASAMS-II) to helicopters (24 Sikorsky MH-60 Romeo maritime helicopters) to drones (predator-B), the two sides are expected to sign the Communications Compatibility and Security Agreement (COMCASA) that has been pending for some years due to objections in India over sharing critical information. U.S. restrictions on defence purchases from Russia under the new CAATSA law will also be on the table for talks. Reports indicate that India may also be prepared to set up a direct hotline on Defence between Ms. Sitharaman and Mr. Mattis. Cooperation on fighting terrorism is expected to be a major issue for discussion and India is likely to push for the UNSC designation of Jaish-e-Mohammad chief Masood Azhar as a terrorist. Mr. Pompeo will fly into Delhi directly from Islamabad, and his engagement with the new Pakistani government will be watched closely. The U.S. is also likely to push for India s support in its campaign against Iran, although its demand that the Modi government cut its Iranian oil imports have thus far not borne fruit. Will trade issues come up?

Trade is increasingly seen as a strategic issue in India-U.S. ties, and many of the economic irritants in the relationship are expected to be discussed, including the U.S. demands on






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lowering tariffs and subsidies, India s impending action at the WTO against the U.S., the Reserve Bank of India s data localisation order, and price caps on medical devices. India is also awaiting Mr. Trump s response to an invitation to visit India sometime later this year or early next year, possibly even for the Republic Day parade. (Adapted from The Hindu)






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Geography

1. The monsoon and its march so far (Relevant for GS Prelims, GS Mains Paper I;

Geography)

What is it?

For 2018, the monsoon is past the crucial half-way mark. As of August 9, the seasonal rain, which decides the fate/extent of the kharif crop acreage, has run up a deficit of 10%. But it is not so much the deficit figure as the spatial and temporal spread (across space and time) of rain, that is important from the view point of monsoon performance. And, here, the 2018 monsoon has delivered reasonably well, according to top officials of the India Meteorological Department (IMD), who have stuck to the original forecast of a normal season (96-104% of the long-period average) this year. This is despite alarmist call-outs from certain quarters about it likely delivering less than par during August, the second rainiest of the four monsoon months. This was attributed to creeping fears about the dreaded break monsoon phenomenon — an inevitable phase when rains shut out over large parts of the country for a prolonged period. It has a tendency to rear its ugly head in August. How did it come about?

Monsoon 2018 has had a typical roller coaster ride during June and July, the first two months. They set the tone for the four-month season, in that June basically witnesses the Arabian Sea arm of the monsoon progress steadily along the west coast and into central India, while the Bay of Bengal arm lunges in from the east to meet with it. The combined entity takes the Indian monsoon, among the largest and most spectacular on the face of the planet, into northwest India. July is also the rainiest of all four months and must also ensure the spatial and temporal spread. But after June delivered less than optimal with a 5% deficit, July disappointed, yielding only 94% against the IMD s forecast of 101%. This was mainly because of a lean patch from June 12 to 27, after which the monsoon revived. But it ran into minor trouble in July as well. Otherwise, the spread of rain has been mostly on par, despite deficits in east India, northeastern India, Saurashtra and Kutch, parts of Gujarat, and a few Met subdivisions in the south peninsula. Why does it matter?

There is no better a feel good factor that one can hope for in the domestic economy than the very palpable one emerging from a successful southwest monsoon. It can literally lift the spirits of the farming sector, not forgetting the fact that it contributes less than 15% to the GDP these days. The feel good spills over into the stock market and into the macro economy since a bumper crop helps douse fears over food inflation and could favourably influence the setting of policy rates by the Reserve Bank of India. The feel good comes also from major rivers and reservoirs flowing bank-to-bank, as is the case now in many Met subdivisions, with capacities exceeding the 10-year average already. Most of these rivers in the south peninsula are critically rain-fed, and surplus rain during June and July have sent them early into spate. This is a major relief for the political class and the administration at






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large especially in the riparian states of Karnataka and Tamil Nadu where emotions run high seasonally over sharing of river waters. What next?

A successful monsoon also comes with the collateral damage in loss of lives, flooding, landslides, and massive destruction to property and infrastructure. This year has not been an exception, which is a telling comment on our state of disaster preparedness. The IMD has already forecast a higher rainfall during August (96% of the long period average). An evolving positive phase of the Indian Ocean Dipole (IOD, the equivalent in the Indian Ocean, of El Nino-La Nina in the far-off equatorial Pacific) could boost the monsoon further, as has been proved in the past. What is needed is an early warning system, backed up with men, equipment and material, to correctly anticipate and effectively deal with monsoon-triggered disasters. (Adapted from The Hindu)

2. In Kaziranga, a wait for floods (Relevant for GS Prelims, GS Mains Paper I;

Geography)

Every year, the Brahmaputra takes away chunks of land from Kaziranga National Park that on paper is 1,030 sq km in area. The park now measures 884 sq km and is shrinking. But the river gives more to the address of the world s largest population of one-horned rhinos than it snatches from — mostly hog deer, swamp deer, wild boar and a few other animals that fail to reach higher ground in time. This year, though, the 117-year-old park — a UNESCO World Heritage Site since 1985 — hasn t been inundated, and this is worrying for the park authorities. Why are floods necessary?

Floods, Central Water Commission data say, cost Assam an average Rs. 128 crore annually. The deluge happens up to four times a year between April and October. Unlike farmlands across the Brahmaputra floodplain, monsoon floods are essential to Kaziranga s ecosystem. The national park s vast grasslands and beels (wetlands) are revitalised annually by the Brahmaputra s overflow. According to park director Akashdeep Baruah, Kaziranga s plant and animal life are intrinsically linked to the floods that help recharge its wetlands and deposit mineral-rich alluvial soil to facilitate growth of grass and shrubs that are the main source of fodder for herbivores. Besides, the floodwaters, while receding, flush out aquatic weeds and unwanted plants from 92 permanent and about 250 seasonal beels besides Difolu, a stream almost bisecting the portion of the park on the southern bank of the Brahmaputra. The beels together account for 5.6% of Kaziranga s total area. What are the challenges?

Park officials say Kaziranga experiences a relatively dry spell or insufficient rainfall every four years. The floods that hit the park in 2016 were said to be the worst in a decade but 2017 was worse with more than 85% of Kaziranga inundated, displacing thousands of animals. Some 400 animals, including 31 rhinos, perished in last year s deluge. The






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Brahmaputra appeared threatening in May, but the flow was not sustained mainly because Arunachal Pradesh upstream has had 40% less rainfall this year. It takes two days for the Brahmaputra to inundate the Kaziranga region after its tributaries in Arunachal Pradesh overflow. Assam, too, has had 35% less rainfall, though it has been just enough for the park s channels and wetlands — watering holes for the animals — to be filled up. At this rate, 25-30% weeds (primarily water hyacinths) and animal wastes are expected to be flushed out naturally. Officials are keeping their fingers crossed, as there s still time till September and early-October for floods to drain out the natural trash . If not, the Kaziranga landscape could face a problem vis-à-vis regrowth of vegetation, specifically in the grasslands that cover 60% of the park. An added worry has been the poor burning of grass around spring this year due to pre-monsoon rainfall. The burning is necessary for creating space for fresh grass. Where is the real threat from?

During the not-so-devastating floods, animals in Kaziranga flee to higher grounds within the park. These include 111 highlands built in the late 1990s, each 12 ft high and large enough to accommodate up to 50 large animals. There are 33 more being built, each 16 ft high, with a total area of 22 hectares. But when 70-80% of Kaziranga is under water, the animals usually flee to the hills of Karbi Anglong south of the park beyond a National Highway running along its edge. Speed of vehicles is regulated during floods, but some animals invariably get killed. Of greater worry for wildlife officials and green activists is the destruction of the hills because of indiscriminate stone quarrying. An assessment by officials reveals some of the major quarries are on animal corridors and thus affect the movement of Kaziranga s denizens. The quarrying has increased over a year, and extracted materials have been dumped at 38 sites along a 10 km stretch adjoining the park. If the floods happen in the next few weeks, Kaziranga s animals could find their escape route blocked or altered. (Adapted from The Hindu)






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Economics

1. Why is the Sensex on a bull run? (Relevant for GS Prelims, GS Mains Paper III;

Economics)

What is the rally about?

India s benchmark equity index, the 30-share Sensex, is on a record-breaking spree this year. The recent past saw the index regularly touching a new high with ease as it breached the 37,000-mark for the first time ever on July 26. Incidentally, the index took only 13 trading sessions to clock 1,000 points rally while moving from 36,000 to 37,000. Market participants attribute the current rally to a revival in earnings growth that was in the doldrums for the past few quarters due to the impact of the Goods and Services Tax and demonetization. This is corroborated by the June quarter results of many of the large caps that beat analyst estimates and saw the stock rising significantly. For instance, Sensex heavyweights like Reliance Industries and Tata Consultancy Services have gained nearly 30% and 45% respectively, contributing a major chunk to the ongoing rally. Incidentally, a stronger dollar and revival in the U.S. economy has benefited most leading IT services companies. Apart from earnings revival, investor sentiment has been boosted by the strong liquidity support provided by domestic institutional investors, or DIIs, like mutual funds, insurance companies, banks and pension funds. In the current calendar year, DIIs have put in nearly $10 billion in Indian equities, the highest ever in the January-July period in any single year. What about small companies?

The kind of euphoria that one saw in years like 2012 or 2014 is still not visible on the street due to the structure of the current rally. Interestingly, while the Sensex has been touching new highs, the euphoria is missing as most of the mid cap and small cap stocks are yet to participate in the rally. In the current year, while the Sensex is up more than 10%, the BSE Midcap and BSE Smallcap indices are down 9.07% and 12.50% respectively. This trend is hurting a large number of investors, especially retail, who trade in such side counters. Last year, when the Sensex rose nearly 28%, the BSE Midcap and BSE Smallcap indices gained 48% and 60% respectively. Why are they lagging behind?

The subdued performance of the side counters is partly due to a regulatory decision, apart from the fact that investors are choosing to bet on fundamentally strong large caps. Early this year, the Securities and Exchange Board of India (SEBI) decided to reclassify mutual fund schemes based on investment objectives that led to most mutual funds reallocating their portfolios from the mid and small caps to the large caps.






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While most of the reallocation has been completed, market participants believe that the sell-off in the side counters is far from over and so they expect the current trend to continue for some more time. What about foreign investors?

Foreign portfolio investors, or FPIs, are often looked upon as the prime drivers of any bull run in the Indian equity market. This year though, they have largely remained silent and are, in fact, net sellers at over ₹ , crore at a time when the markets are at record levels. Data show that FPIs were net sellers in four out of the first seven months of 2018. Between April and June, they sold shares worth more than ₹ , crore, a trend reversed in July with a nominal net buying of ₹ , crore. What is the outlook?

Most market participants are optimistic about the equity market and believe that the bull run is here to stay. A large section of the market is betting big on infrastructure sectors like cement and heavy engineering, along with consumer-oriented ones like FMCG and durables. Interestingly, with a few State elections due later this year, along with the general election next year, analysts believe the government will push harder on large infrastructure projects related to roads, ports and affordable housing. Large consumer durable products are now seeing the benefits of the GST and have, in many cases, started passing on the benefits to consumers. While side counters may still take some time to join the rally, the consensus view is that the benchmarks will continue to scale new highs. (Adapted from The Hindu)

2. UAE top source of inward remittances in 2016-17: RBI (Relevant for GS Prelims, GS

Mains paper III; Economics)

The United Arab Emirates (UAE) has emerged as the top source of inward remittances, while Kerala has received the maximum funds sent from abroad, according to the Reserve Bank of India s survey of inward remittances for 2016-17. Source of remittances in India

UAE s share in total remittances was 26.9%, followed by the United States (22.9%), Saudi Arabia (11.6%), Qatar (6.5%) and Kuwait (5.5%). According to the survey, 82% of the total remittances received by India originated from eight countries — UAE, the U.S., Saudi Arabia, Qatar, Kuwait, Oman, the United Kingdom and Malaysia. Who are the recipient states?

Among destinations, Kerala has the highest share with 19%, followed by Maharashtra (16.7%), Karnataka (15%), Tamil Nadu (8%) and Delhi (5.9%).






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Kerala, Maharashtra, Karnataka and Tamil Nadu together received 58.7% of total remittances. How were remittances utilized?

More than half of remittances received by Indian residents were used for family maintenance, i.e., consumption (59.2%), followed by deposits in banks (20%) and investments in landed property and shares (8.3%), the survey said. (Adapted from The Hindu)

3. A welcome retreat: withdrawing the FRDI Bill (Relevant for GS Prelims, GS Mains

Paper III; Economics)

Fate of FRDI bill

In just under 12 months since its introduction in Parliament, the Centre has quietly withdrawn the Financial Resolution and Deposit Insurance Bill, 2017. The decision to seek the Lok Sabha s approval to withdraw the legislation this week is a clear acknowledgement by the government that it had underestimated the extent and intensity of public opposition to the proposed law. What was the controversial provision in bill?

One provision in the Bill had, in particular, generated the greatest debate and attracted the fiercest criticism and ultimately proved to be its very undoing: the bail-in clause. That banks, by the very nature of their business, are essentially dependent on the funds lent to them by depositors to serve as the pool of lendable resources from which they provide credit to borrowers is well known and requires no elaboration. So when a depositor apprehends that her hard-earned savings placed in a bank may be at risk from a law that forces her to partake in the pain of financial losses in case her bank is forced into resolution on account of distress, she will naturally fear such a legislation. Problem still unresolved

However, the need for a specialised dispensation to cope with large financial corporations on the verge of going bust cannot be overstated, especially given the contagion risk that a bank failure can pose to overall financial stability. The withdrawal of the FRDI Bill should therefore be used as an opportunity by policymakers to reappraise the existing framework for resolving bankruptcy scenarios among financial entities. While such a review ought to include an evaluation of the progress made by the Insolvency and Bankruptcy Code in addressing the crucial issue of debt resolution in the banking sector, it must also look at ways to strengthen the Deposit Insurance and Credit Guarantee Corporation. Set up in 1978 in the aftermath of the collapse of two banks, the DICGC, which guarantees repayment of bank deposits up to Rs. 1 lakh in case a bank is liquidated, has not reviewed the amount under guarantee since 1993. This anomaly must be addressed, especially at a time when several state-run public sector banks have been roiled by a series of frauds and high levels of bad loans. Any measure that






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helps prevent further erosion of public faith in the beleaguered banking system would undoubtedly be very welcome. (Adapted from The Hindu)

4. All you need to know about Currency wars (Relevant for GS Prelims, GS Mains


Nations letting currency weaken can spur instability

Recently, RBI Governor Urjit Patel warned that the global trade war could escalate into a currency war. Trade wars erupt when countries impose tit-for-tat tariffs on imported goods, ostensibly to protect domestic manufacturers. What is a currency war?

Currency wars are triggered when nations either allow their currencies to weaken appreciably or devalue them to gain a competitive advantage over trade rivals. If other countries react by devaluing their respective currencies to retain competitiveness, this could lead to instability in markets. What is devaluation?

Devaluation is a policy tool to reduce the value of a currency, relative to other currencies, in a fixed exchange rate. It is used to set the relative prices of domestic and international goods and services at a new footing. Devaluation is different from depreciation, which is a decrease in the currency s value due to market forces of demand and supply when the exchange rate of the currency is floating. Does devaluation help?

Governments may resort to devaluation for any one of three major reasons: To boost exports. The lowered value of the domestic currency will make it less expensive for foreign buyers (holding the currency whose value has become relatively stronger) to obtain the local currency to buy locally produced goods or services. In principle, more goods and services would be sold abroad, helping domestic businesses reliant on export markets such as software services companies, pharma firms and seafood exporters. To shrink a trade deficit — a devaluation while making exports more competitive also makes imports more expensive and hence less affordable. This helps reduce the volume of non-essential imports thus helping to narrow the trade gap. To reduce the debt servicing burden — nations with significant sovereign debt sold domestically may find it advantageous to let the currency weaken as it helps lower the notional cost of debt servicing. Was the rupee ever devalued?






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In June 1966, hit by drought after two major wars (with China and Pakistan), India devalued the rupee by 36.5%. Again, in July 1991, a Balance of Payments crisis exacerbated by the sharp spike in oil prices in the wake of the Gulf War spurred India to devalue the rupee in a two-step downward adjustment of 18-19%. (Adapted from The Hindu)

5. Are foreign direct investments at an ebb? (Relevant for GS Prelims, GS Mains Paper

III; Economics)

Debate rages, but a look at 5-year patterns shows there is little cause for concern.

Focus on an 8% GDP growth is all that matters

Have foreign direct investors warmed up to India under the NDA regime, or are they cold-shouldering it? A heated debate is now on, with the government claiming that total Foreign Direct Investment flows scaled a new record in FY18. Detractors argue that, on FDI as a proportion of GDP, NDA is yet to match the UPA s achievements in 2008.






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But a study of patterns in FDI flows into India over the last fifteen years suggests that they really have little to do with the political dispensation at the Centre. UPA-2 started off on a high note and fell victim to policy paralysis at the end of its tenure. But it kicked off its term with two consecutive years of sharp declines in FDI inflows and witnessed a bounceback in FDI in its final year. The NDA, seen as business friendly, flagged off with 20% plus FDI growth rates in its first two years. But despite implementing reforms such as the GST, it has had to contend with slumping FDI flows lately. So what really drives FDI? We studied UNCTAD data on cross-country FDI flows for the last fifteen years to arrive at some takeaways. Economic, not political

FDI flows into India seem to track its economic fortunes more closely than its political fortunes. In the last ten years, strong GDP growth prints in India have inevitably been followed by an upsurge in FDI. The largest annual jump in FDI till date, from $7.6 billion in 2005 to $20.3 billion in 2006 came about after India improved its GDP growth from 7.8% to 9.3% in 2005. Similarly, 2008 s record flows of $47 billion followed a GDP growth print of 9.8% in 2007. The FDI revival in 2015 unfolded after the economy returned to 8% growth after a long sluggish spell. Given the lumpy nature of FDI, evaluating these flows on five-year averages makes more sense than dissecting annual growth rates. On this score, the news is good. From an average of $5 billion a year from 1998 to 2002, the annual flow vaulted to $12 billion in 2002-2007, climbed further to $34 billion in 2007-2012 and stood at $38 billion in the latest five years to 2017. Punching below weight

The larger an economy and the size of its consumer market, the more interested foreign investors are likely to be to set up shop in it. This makes it important to evaluate FDI flows into a country as a proportion of its GDP. According to the World Bank, FDI as a proportion of India s GDP hovered at 1-2% for many years before shooting up to 3.6% in the immediate aftermath of the global financial crisis in 2008, probably driven by the impression that India was decoupled from the crisis. But as reality sank in in 2009, India s growth collapsed and FDI flows dwindled, bottoming out at 1.3% of GDP by 2012. In the five years to 2017, they have staged a mild recovery to 1.5%. Globally, FDI flows average 2.4% of GDP. Clearly, India continues to punch below its weight on FDI, given its size and prospects.






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FDI flows into countries depend not just on local economic prospects, but also on the total capital that global investors are willing deploy overseas in any given year. This pool is decided by global financial market conditions. Share of pool

World Bank data tells us that after a stellar show in 2008 when India managed to grab 3.2% of the global FDI pool, its share fell steadily to 1.5% in 2012. That was incidentally the year in which GDP growth hit a nadir of 5.5%. Since then, India s share of the global FDI pool has charted a smart recovery, getting back to 2.8% by 2017. This suggests that the slump in India s FDI flows in the last couple of years was driven more by the shrinking global FDI pool than by domestic factors. Overall, for FDI to keep flooding into India, it needs to maintain a single-minded focus on sustaining 8%-plus growth. The political dispensation doesn t matter that much. (Adapted from The Hindu)

6. Making NHPM work: On Ayushman Bharat (Relevant for GS Prelims, GS Mains


PM Independence Day speech focus

Prime Minister Narendra Modi s announcement on Independence Day that Ayushman Bharat, or the National Health Protection Mission, will be launched formally on September 25 sends out the signal that the government is finally recognising the linkages between health care and economic development. Need for NHPM

Political parties have not yet made the right to health a campaign issue, and the National Health Policy does not recommend such a right since it cannot be fulfilled. But there is increasing awareness that it is unsustainable for a country of 1.3 billion people to rely on household savings to pay for health care.

What is Pradhan Mantri Jan Aarogya Abhiyan or NHPM?

The NHPM is an ambitious initiative, providing a coverage of Rs.5 lakh per family a year to 10 crore families chosen through the Socio-Economic Caste Census, mainly rural poor and identified urban workers. State governments, which will administer it through their own agency, will have to purchase care from a variety of players, including in the private sector, at pre-determined rates. What are the pre-requisites?

1. Reaching a consensus on treatment costs through a transparent consultative process is vital for a smooth and steady rollout.






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2. A large-scale Information Technology network for cashless treatment should be set up and validated. Since a majority of the families will be rural, and the secondary and tertiary public hospital infrastructure suffers from severe efficiency and accountability problems, State governments should upgrade the administrative systems. 3. National schemes on health provide an overarching framework, but the responsibility of executing them falls on the State governments. It is widely recognised that there are nations with the nation in India, given the population sizes, disease burdens and the

development levels of different regions. 4. Clearly, the NHPM has a problem with the distribution of hospitals, the capacity of human resources, and the finances available for cost-sharing. Addressing these through the planned increase in public health spending to touch 2.5% of GDP, and 8% of State budgets, is the immediate challenge. Way forward

With steady economic growth, meeting that policy commitment through higher investments will be a test of political will. Yet, it is also an opportunity to tap into a large labour pool for the new jobs that will be created, and to raise skill levels. Reducing the cost of universal health coverage is imperative, and it requires parallel investments in the neglected public sector. Private insurance can only be a short-term option, and it clearly has limitations. Less ethical institutions have been found ordering unnecessary treatments to claim insurance compensation. An ombudsman to deal with complaints from NHPM users should, therefore, be a priority. The Centre should extend the scheme to all children and senior citizens, and cover out-patient consultation and essential drugs to sharply reduce out-of-pocket spending.


7. What does the falling rupee mean for you and economy? (Relevant for GS Prelims,

GS Mains Paper III; Economics)

Exports may receive a boost while imports could flag

With the rupee recently weakening past Rs.70 to a dollar and hovering about that level since, concerns over the impact of the devaluation on economic indicators are intensifying. Here is what happens when the rupee falls: What happens to inflation?

One of the first visible effects of currency depreciation is the country s imports become more expensive and exports cheaper. The reason is simple. It takes more rupees to pay for the same quantum of imports and fewer dollars for a buyer to pay for the same quantity of exports. More expensive imports are likely to drive inflation upward, especially in India where input products constitute a large part of our imports. In addition, a depreciating rupee also






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impacts the oil import bill since it costs more rupees per barrel of oil, which plays its own part in pushing inflation up. What happens to GDP growth?

This is a more complex question given the number of factors that affect GDP growth. On the one hand, costlier inputs and the subsequent increase in the prices of finished goods should have a positive impact on GDP. But the consequent decrease in demand due to higher prices could nullify this. This is best explained using the textbook formula of aggregate demand equalling the sum of household consumption of goods and services, investment, government expenditure on goods and services, and exports minus imports. A depreciating rupee certainly affects the exports and imports, since exports are likely to receive a boost while imports could flag somewhat. It remains to be seen what impact a reduction in household consumption would have on demand, especially when the festive season is nearing. What does this mean for you?

A depreciating rupee means higher prices of goods and services, costlier petrol and trips abroad turning more expensive. On the flip side, the domestic tourism could grow as more tourists visit India since their currency now buys more here. In the medium term, export-oriented industries may also create more jobs. (Adapted from The Hindu)

8. Over 99% of demonetised notes were returned: RBI (Read only for understanding;

Economics)

RBI report on returned currency

The Reserve Bank of India s annual report for 2017-18 said more than 99% of the Rs. 500 and Rs. 1,000 notes withdrawn from circulation in November 2016 had been returned to the central bank. According to the report, after verification and reconciliation, the total value of the Rs. 500 and Rs. 1,000 notes as on November 8, 2016, the day before the note ban came into effect, was Rs. 15.41 lakh crore. The total value of such notes returned from circulation is Rs. 15.31 lakh crore. New currency

RBI data showed that the value of banknotes in circulation increased by 37.7% over the year to Rs. 18.04 lakh crore as at end-March 2018.

More 500 notes With more Rs. 500 notes having been pumped into the system over the last one year, the share of Rs. 2,000 notes by value declined to 37.3% as on March 2018, compared with






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50.2% a year earlier. The share of Rs. 500 notes, in terms of value, increased from 22.5% to 42.9% in the same period. (Adapted from The Hindu)






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Environment

1. River of effluents (Relevant for GS Prelims, GS Mains Paper III; Environment &

Biodiversity)

On why the Clean Ganga project has a long way to go

What is the National Mission for Clean Ganga (NMCG)?

It is a registered trust that runs the Namami Gange mission — India s most ambitious endeavour to clean the Ganga river. The NMCG has a Rs. 20,000-crore, centrally-funded, non-lapsable corpus and consists of nearly 288 projects. The NMCG s thrust is on roping in the private sector to not only set up sewage treatment plants but also maintain them. In return, the government offers to contribute 40% of the capital costs upfront and disburse the rest — with a profit margin — over 15 years subject to performance indicators being met. The mission also has projects to clean the ghats, rid the river of biological contaminants and improve rural sanitation and afforestation. What is the scale of the pollution involved?

Most of the Ganga s pollution is due to five States on the river s main stem — Uttarakhand, Uttar Pradesh, Jharkhand, Bihar and West Bengal. Approximately 12,000 million litres a day (MLD) of sewage is generated in the Ganga basin, for which there is currently a treatment capacity of just 4,000 MLD. Industrial pollution from tanneries in Kanpur, distilleries, paper and sugar mills in the Kosi, Ramganga and Kali river catchments is a major contributor. What is the status of the cleaning exercise?

Last week, the National Green Tribunal (which is hearing petitions around Ganga-cleaning projects) pulled up the government for its tardy job and said that the stretches between Haridwar and Unnao were unfit for drinking and bathing and that authorities should display health warnings . Union Water Resources Minister Nitin Gadkari has promised that 80% of the river will be cleaned by May 2019. His predecessor, Uma Bharti, had promised a clean river by 2018. So far, the State governments have concentrated on superficially cleaning the river by using trash skimmers and improving crematoria-infrastructure. The Union Water Resources Ministry has been focussed on ensuring a transparent tendering and bidding process. Only this year have treatment plants at Haridwar and Varanasi begun to be constructed. In May 2014, there were 31 treatment plants with a capacity of 485 MLD. As of May 2018, 94 projects, with a treatment capacity of 1,928 MLD, were under way. A financial audit in March suggested that while Rs. 20,601 crore had been sanctioned for 193 projects, only Rs. 4,254 crore had actually been spent on their implementation. (Adapted from The Hindu)






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2. Keeping dry: On Kerala floods (Relevant for GS Prelims, GS Mains Paper III;

Environment & Biodiversity)

Consequences of Kerala Floods

The catastrophic impact of monsoon rainfall on several districts of Kerala has come as a grim reminder that the vigil against unpredictable natural disasters must never be relaxed. More than three dozen people have died and an estimated Rs. 8,316 crore worth of economic assets have been lost in the seasonal rain, particularly over the past week. The gates of reservoirs in the Idukki system, a giant hydroelectric project, and several other dams have been opened, inundating riverside habitations downstream. At the peak of the havoc, about 60,000 people whose dwellings suffered damage were lodged in relief camps. In the northern districts, damage to houses, roads and other structures has occurred owing to landslips caused by incessant showers. There is genuine concern that a temporary respite in rainfall may be followed by another intense downpour from nascent weather systems; the India Meteorological Department has forecast rain until August 17. Support from Centre

The Centre has done well to get a first-hand estimate of the havoc from Home Minister Rajnath Singh, although the initial announcement of Rs.100 crore towards relief is incongruous with the scale of the damage. Crucial support has come from the armed forces as well to normalise the situation. What is the cause of floods?

Kerala s unusually heavy monsoon this year is in contrast to the long-period trend of rainfall. According to an analysis of data on the monsoon between 1954 and 2003 by climate researchers at the University of Cambridge, overall this part of the country had become drier in summer, but with an emerging frequency of destructive flash floods in rare events. This trend is expected to become stronger. Need for resilience planning

This points to the need for governments to strengthen their resilience planning. It should begin with a programme to relocate people away from hazard zones along the rivers that were in spate in Kerala over the past week after the shutters of more than two dozen dams were opened. Finding suitable land is, of course, a challenge in a populous, forested State, but it is an absolute necessity to prepare for the future. It is reasonable to expect that with its efficient primary health care network, Kerala will take all measures necessary to avoid epidemics in the wake of the floods. The spectacular disaster this year also underscores the role of the government as the insurer of last resort for the average citizen. In Mumbai last year, for instance, those who had private household insurance cover against disasters discovered the limitations of such policies, since the companies were unwilling to pay many home owners for a key risk such as costly displacement from homes since the houses were not structurally damaged. All States naturally look to Kerala, with its record of social development, for evolving best practices to handle such natural disasters.






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3. Pune tops Ease of Living index; Patna ranked lowest of 111 cities (Relevant for GS

Prelims, GS Mains Paper III; Environment & Biodiversity)

Ease of Living Index findings

Three cities in Maharashtra — Pune, Navi Mumbai and Greater Mumbai — top the first Ease of Living Index brought out by the Union Ministry of Housing and Urban Affairs. The national capital, New Delhi, is ranked 65 among 111 cities, while Chennai is in 14th place. Kolkata did not participate in the survey. The other cities in the top ten include Tirupati, Chandigarh, Thane, Raipur, Indore, Vijayawada and Bhopal. The three cities at the bottom of the rankings are Rampur, Kohima and Patna. What is the index?

A city s ranking reflects its ability to provide data, as well as its actual performance on four different parameters — institutions or governance, social indicators, economic indicators and physical infrastructure. Senior Ministry officials told The Hindu that cities which were unable or unwilling to provide data received low scores.

Data deficient

For example, New Delhi has a score of zero on indicators regarding inclusive housing and mixed land use and compactness, and a score of just 0.12 on economy and employment. This does not mean that the capital actually performs so poorly on these indicators, according to members of the consortium which carried out the survey and produced the Index for the government. Instead, it probably means that the NDMC and the three Municipal Corporations which govern the city simply failed to provide any data on those indicators.






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The urban local bodies had been required to respond to 553 questions in 15 different categories under the four parameters. What is the need of index?

Releasing the Index, Housing and Urban Development Minister Hardeep Singh Puri said the ranking marks a shift to a data-driven approach to urban planning and management. He said future editions of the Index may also incorporate citizen and stakeholder feedback rather than relying on government data alone. A consortium member admitted that it was a challenge to collect some of this information from data-starved urban local bodies. Complications in calculations

Particular complications were seen in indicators such as health —where local governments did not have access to data from private hospitals. The consortium assisted cities in plugging the data gap with regard to certain indicators.






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If cities are not able to provide data, how will they be able to plan and use their resources well? The first thing they need to learn is to get their data ecosystem aligned, pointed out a consortium member.


4. Kerala’s trauma (Relevant for GS Prelims, GS Mains Paper III; Environment)

Resue efforts so far

The unprecedented deluge in Kerala unleashed by heavy rain, overflowing rivers, brimming dams and massive landslips has overwhelmed the State government and rescue agencies, as they struggle to make a complete assessment of the devastation. More than 160 people have died since August 8, and several are missing. More efforts required

The State government faces the challenging task of rescuing people who are marooned in far-flung houses in several districts and providing them food and water until the teams get to them. About 2,23,000 people had been moved to more than 1,500 relief camps, with more waiting to join. A respite in rainfall has aided the relief efforts, but as Chief Minister Pinarayi Vijayan acknowledged, it will take a major effort, using a combination of boats and aircraft from the Air Force, the Navy and the Coast Guard and legions of rescue personnel, to get all the stranded people to safety. The reduction in rainfall should help the National Disaster Response Force, which has committed 55 teams, intensify its efforts to reach those who are stranded. In fact, disaster management units in other States too should assist those working on the ground to deal with Kerala s catastrophic floods; apart from helping, they will gain valuable experience as well. Way forward

Going forward, the task of reconstruction will have to be addressed, covering public buildings, residential homes, roads and other infrastructure. A subsidised housing programme may be needed in the worst-hit areas, with tax breaks offered to residents. There is an outpouring of goodwill and support from across the country and even abroad, and the State government has acted quickly to make online contributions to the Chief Minister s Distress Relief Fund possible through a dedicated portal. Liberal donations will help the government in large-scale relief and post-flood rehabilitation initiatives. Support groups from neighbouring States such as Tamil Nadu and Karnataka have begun sending relief material, although the disruption to road connectivity has left a lot of it stranded at the inter-State borders. These volunteer efforts can be better targeted if the district authorities in Kerala put out advisories on the nature of relief needed, and the locations and the modalities of transfer. More immediately, it is important to continue with the air-dropping of food, water, candles, matches and other essentials to the worst-hit areas. Many control rooms have been opened but integrating the mechanism by merging the various phone numbers into three or four, at one per region, and allocating sufficient phone lines,






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will help citizens use them more easily. Hopefully, the worst is over. With full dams and overflowing rivers, Kerala desperately needs a benign shift in the weather to be able to cope with a disaster on a scale it has never seen before. It indeed needs all the support it can get. (Adapted from The Hindu)

5. In U.P., plans to save the Taj Mahal (Relevant for GS Prelims, GS Mains Paper III;

Environment)

The Supreme Court s critical observation on the preservation of the Taj Mahal has redirected focus on the deterioration of the iconic Mughal monument. While multiple agencies are responsible for preventing pollution in and around the Taj and its preservation, the Uttar Pradesh government in July submitted a draft of its Vision Document in the court to outline its plan for the monument. What does it say?

Compiled by the School of Planning and Architecture in Delhi, the 240-page document makes a number of recommendations to protect the Taj precinct, Agra city and the Taj Trapezium Zone (TTZ). Encompassing an area of 10,400 sq km, the restricted region of the TTZ includes five districts of Uttar Pradesh — Agra, Mathura, Firozabad, Hatras and Etah — and one in Rajasthan — Bharatpur. For example, the draft suggests that the entire precinct be declared a no-plastic zone, including the use of bottled water; no untreated sewage discharge be allowed throughout the stretch of the Yamuna; closure of polluting industries in the region and promotion of alternative industries with incentives, and a ban on construction on the Yamuna Flood Plains. What are the challenges?

Apart from the natural deterioration of the monument, the Taj has over the years faced an onslaught by pollutants, including that from vehicles and industries. In the recent past, activists have complained that the white marble structure was developing greenish-black patches on several parts as a result of the release of faeces and dirt by an insect identified as Geoldichironomus (Chironomus calligraphus). The activists attributed it to the rising pollution in the Yamuna. In May 2016, the then Chief Minister, Akhilesh Yadav, ordered a probe into the discolouring. To offset the discolouring, the Archaeological Survey of India (ASI) has periodically been giving the monument a mud-treatment using fuller s earth. The mud is applied to the monument and left to dry for 24 hours; thereafter, it is washed out. The herbal earth absorbs all the impurities absorbed by the marble from the atmosphere. Activists termed it eyewash and criticised the government and other agencies for not being serious about preserving the monument. D.N. Dimri, a senior ASI director, says that while no issues are faced in the structural conservation of the Taj, the chemical cleaning faces hurdles created by the high footfall. The Taj remains closed only on Friday, and the ASI has adapted methods such as area segregation and tourist diversion to ensure the cleaning goes smoothly.






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What about visitors?

An average of 40,000-50,000 persons visit the monument daily, with the number shooting up during holiday seasons. Last year, during a visit to the Taj, Chief Minister Yogi Adityanath remarked that if the security and facility could be upgraded, the number of tourists — Indians and foreigners — visiting Agra could be increased to 2.5-3 lakh daily. In its reproach of the government, a Bench of the Supreme Court wondered which body was responsible for the preservation of the Taj and asked whether there was any need to recruit foreign agencies to protect the monument. Admitting that the ASI had its own limitations and its work was restricted to the monument precincts, former ASI Director K.K. Mohammad is sceptical of the Supreme Court s suggestion that foreign agencies could be roped in to maintain the Taj. He argues that they do not know Indian conditions. Rather, political will is needed to carry out the changes to reduce pollutants. What lies ahead?

The various bodies maintaining the Taj do not seem to work in sync. This was evident from the court having expressed surprise that the Uttar Pradesh government did not consult the ASI while drafting the Vision Document. Raman Bhalla, a member of the Taj Conservation Society, says the Vision Document is faulty as it does not entail any study of air or water pollution. (Adapted from The Hindu)

6. Why does Kerala need more funds? (Relevant for GS Prelims, GS Mains Paper III;

Disaster Management)

What has been the damage?

As Kerala struggles to come to grips with the worst floods in its history, the reconstruction of damaged infrastructure and restoration of livelihoods pose a daunting challenge for the State government. Initial estimates put the loss at ₹ , crore but officials feel the extent of the damage could be more than twice the figure. The total loss will probably run into billions of dollars. Think about Mississippi, Katrina and the Thailand floods — they all ran into tens of billions of dollars. Finding money to recover from this level of damage is difficult, says G. Pramod Kumar, former adviser, UNDP. Where will funds come from?

Following aerial surveys of the flood-affected areas by Prime Minister Narendra Modi and Home Minister Rajnath Singh, the Central government announced an interim relief of ₹ crore for the State against a demand for ₹ , crore as emergency assistance. Having completed a week-long rescue operation with the help of the armed forces and the National Disaster Response Force, the State government announced a massive reconstruction programme. But mobilising resources for a project on this scale remains a challenge for the economy of the State that leans heavily on the diminishing remittances by a large diaspora. How much has the CM collected?

The Chief Minister s Distress Relief Fund has mopped up ₹ crore by way of donations by individuals, institutions and organisations across the world.






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Who suffered the most losses?

It is significant that a huge part of the destruction happened to private assets. The floods caused widespread damage to houses and property. According to Chief Minister Pinarayi Vijayan, 7,000 houses have been destroyed and 50,000 damaged in the floods. According to Mr. Kumar, the government may not have enough resources even to rebuild public assets such as roads, hospitals, schools and bridges. The private properties will have to be rebuilt by the people. Where will they find the money? Nobody knows, he points out. Officials admit that the deluge has exposed the vulnerabilities of the middle class which took the biggest hit. With virtually no experience in handling a disaster of this magnitude, the middle and lower middle class sections will find it difficult to overcome the human tragedy, says S.N. Reghuchandran Nair, president, Trivandrum Chamber of Commerce and Industry. Unlike the lower income groups which come under the government s support mechanism or the higher income class which is capable of absorbing the impact, middle class families will find themselves incapable of rebuilding their shattered lives. It is also significant that most of these families inhabit vulnerable areas prone to floods and landslips. Traders and owners of Micro Small and Medium Enterprises are also badly affected. Apart from the damage to assets, it is the loss of livelihood support that is bound to be traumatic for thousands of these people, says Mr. Nair. He advocates a thorough revamp of the Damage And Loss Assessment mechanism to come up with authentic figures of claim and compensation. Since most traders now file GST returns, that can be taken as the base to work out the losses incurred by them, he says. What about crops?

The preliminary estimate of the crop loss is pegged at ₹ , crore. More than , , farmers suffered damage to various crops spread over 56,439 hectares. The Agriculture Department has proposed an assistance of ₹ .8 crore to compensate farmers. The comprehensive crop insurance scheme is expected to limit the impact of the floods on the farm sector. Officials, however, point out that it will require huge sums to repair agricultural infrastructure like irrigation systems, pumps and bunds. More than the damage and loss of infrastructure, it is the impact on livelihoods, incomes and human development that will take time to rebuild, says Mr. Nair. Any recovery and reconstruction plan will need to factor this in. (Adapted from The Hindu)






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Science and Technology

1. Reconsider the ban: on oxytocin (Relevant for GS Prelims, GS Mains Paper III;

Science & Technology)

Criticism of Complete Oxytocin ban

The Union Health Ministry s ban on the retail sale and private manufacture of oxytocin, expected to kick off on September 1, is an extremely ill-thought-out one. What has government ignored?

The drug, a synthetic version of a human hormone, is a life-saver for women. Doctors use it to induce labour in pregnant women and to stem postpartum bleeding. So critical is its role in maternal health that the World Health Organization recommends it as the drug of choice in postpartum hemorrhage. Why has government banned Oxytocin?

The government s ban ignores this and is motivated instead by the misuse of the hormone in the dairy industry. Because oxytocin stimulates lactation in cattle, dairy farmers inject the drug indiscriminately to increase milk production. This has spawned several unlicensed facilities that manufacture the drug for veterinary use. It is a problem that needs solving. What should have been done?

But the right approach would have been to strengthen regulation and crack down on illegal production. Much is unknown about the ill-effects of oxytocin on cattle. One of the concerns was that oxytocin leads to infertility in dairy animals, and some studies show this to be true. It has also been linked to mastitis, a painful inflammation of the udder. Milk consumers worry about exposure to it through dairy products. The science behind some of these claims is unclear. In a Lok Sabha answer in 2015, the National Dairy Research Institute was quoted as saying there was no evidence that oxytocin led to infertility. A 2014 study by researchers at the National Institute of Nutrition concluded that oxytocin content in buffalo milk did not alter with injections. However, even if the ill-effects of oxytocin are real, a ban is not the answer. Oxytocin is simply too important to Indian women, 45,000 of whom die due to causes related to childbirth each year. Comparison with Antibiotics use

A parallel to the situation lies in the misuse of antibiotics in humans and poultry. So heavily are these drugs used that they are causing deadly bacteria to become resistant to them. Yet, despite calls for a complete ban on over-the-counter sale of antibiotics, India has been reluctant to do so. In much of rural India, more people still die due to a lack of antibiotics than due to antibiotic-resistance.






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This has swung the cost-benefit ratio against outright bans. In oxytocin s case, if only a single public sector unit manufactures the drug, as the government plans, this could lead to drug shortages and price hikes. Karnataka Antibiotics & Pharmaceuticals Limited, the drugmaker tasked with manufacturing oxytocin, has been asked to cap the price at Rs. 16.56 for 1 ml of a five-international unit (IU) solution. However, some private manufacturers were selling it for Rs. 4 until now. Monopolising production will remove the low-price options from the market. Such a situation may benefit cattle but will put the lives of many women at risk. (Adapted from The Hindu)

2. ISRO set to launch its TV channel (Relevant for GS Prelims, GS Mains paper III;


Space agency to promote scientific temper in country

The Indian Space Research Organisation (ISRO) will have an year-long Vikram Sarabhai centenary celebration starting in August 2019 to honour the visionary scientist and its legendary founding father.

ISRO’s tribute to Sarabhai

In a few months time, it plans to roll out a dedicated ISRO TV channel showcasing space applications, developments and science issues, targeting young viewers and people in remote areas in their language. Sarabhai, the architect of the Indian space programme, the first ISRO chief and renowned cosmic ray scientist, was born on August 12, 1919. ISRO s tributes to Sarabhai start with naming the first Indian moon landing spacecraft of the Chandrayaan-2 mission Vikram . The mission is planned for early 2019. A chair each at






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Sarabhai's two alma maters, Cambridge University and Gujarat University, as also at the Massachusetts Institute of Technology (MIT), would be set up, apart from giving awards, scholarships and fellowships in the country and abroad, ISRO Chairman K. Sivan said at a news conference on Sunday, the 99th birthday of the legend. Sarabhai was only 28 when he sowed the seeds of a space agency around the late 1940s and 1950s. Public satellite launches

As it strengthens its public outreach, ISRO will shortly start allowing the public to watch satellite launches from its Sriharikota launch centre. (Adapted from The Hindu)

3. e-cigarette ban (Relevant for GS Prelims, GS Mains Paper III; Science &

Technology)

Why e-cigarettes are again in news?

In a recent hearing on a public interest litigation in the Delhi High Court, the Delhi government said it was planning to ban e-cigarettes. If it follows through, the NCT will join States such as Karnataka and Maharashtra in the ban. The Union Ministry of Health and Family Welfare has taken a stand against e-cigarettes. Should they be banned? Arguments in favour

But is a ban the right approach to regulate this technology, given that combustible cigarettes are freely available across India? 1. The controversy exists partly because it is a new and rapidly evolving technology. This makes it hard for researchers to study the health effects. 2. Still, the evidence so far indicates that e-cigarettes are safer than combustible cigarettes. Because they heat a liquid to generate a nicotine-containing aerosol, instead of burning tobacco, they do not produce toxic tars. Should they be banned? Arguments Against

They are not completely safe. 1. At high temperatures, e-cigarettes produce carcinogens such as formaldehyde, although these are fewer in number compared to regular cigarettes. They also increase the odds of lung disease and myocardial infarction, but to a lesser extent than normal cigarettes do. 2. In the American Annual Review of Public Health, in January 2018 a group of researchers argued that e-cigarettes must be viewed from a harm minimisation perspective. Given that combustible cigarettes are more noxious than electronic ones, switching from the former to the latter can only help addicts, they argued.






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Writing in the same journal issue, however, another group of researchers advocated the precautionary principle. Given that e-cigarettes are a young technology, they said, it will take time to uncover their ill-effects. Already we know some carcinogens in e-cigarettes have a non-linear effect on cancer. This means even the low doses in e-cigarette aerosols can be carcinogenic if inhaled for years. What is the so far position?

Recent surveys also show that e-cigarettes can act as a gateway drug for young people. A 2011 study of Korean adolescents found that e-cigarette users were more likely to turn into regular smokers eventually. Plus, 2004-2014 data from the U.S. National Youth Tobacco Surveys suggest that young people at low risk of taking up smoking are turning to e-cigarettes. Way forward

Against this background, India must tread carefully. Completely banning the technology, while selling normal cigarettes, could take away a promising smoking-cessation aid. A more pragmatic option would be to regulate e-cigarettes tightly, by creating standards for the aerosols and banning underage and public use. This would leave smokers with a therapeutic alternative, while protecting youngsters from a gateway drug. Either way, conflicting evidence makes it a tough call for policymakers. What are e-cigarettes?

ELECTRONIC CIGARETTE: An electronic cigarette or e-cigarette is a handheld electronic device that vaporises a flavoured liquid which may have a nicotine base. The user inhales the vapour. The fluid in the e-cigarette is called e-liquid. The health risks of e-cigarettes are uncertain. While they are likely to be safer than tobacco cigarettes, the long-term health effects are not known. These health effects also depend upon the e-liquid used in them.






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(Adapted from The Hindu and Background from PrepMate Science & Technology

book, Page 204)

4. Why is retail sale of oxytocin banned? (Relevant for GS Prelims, GS Mains Paper III;


What has the govt. decided?

From September 1, the Union Health Ministry will impose a highly controversial ban on the retail sale and private manufacture of oxytocin, a life-saving drug for new mothers. The reason for the ban is the misuse of oxytocin in dairy animals, like buffaloes, to increase milk production.The government s April ban order refers to a 2016 Himachal Pradesh High Court judgment, which said daily oxytocin injections made cattle barren and reduced their lifespans. In addition, it claimed that drinking milk from oxytocin-treated cattle led to male impotence, early puberty among women and cancers. Does it make cattle barren?

There is little evidence that oxytocin, when used judiciously under the oversight of a veterinary doctor, harms animals. According to Prakash Nadoor, a veterinary pharmacologist at Karnataka Veterinary, Animals and Fisheries Sciences University, veterinarians use oxytocin in very few situations. One situation is to induce labour in cattle. Here, around 50-100 international units (IUs) of oxytocin is administered over the period of a day. Another situation is when a dairy animal is unable to produce milk because her calf is either dead or has been taken away. To supplement the animal s natural oxytocin, which stimulates milk production, an injection of up to 5 IUs is given twice a day for 2-3 days, says Mr. Nadoor. It is not for long-term use, he adds.





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At such low levels, oxytocin is not known to harm cattle. A 1991 study published in the Journal of Dairy Science found that when Holstein cows were given 20 IU injections of oxytocin daily for a 305-day period, it did not increase prevalence of mastitis, a painful inflammation of the udder. Nor did it shorten the 21-day reproductive cycle of cows, known as the estrous cycle. In a more recent unpublished study by the National Dairy Research Institute (NDRI), Haryana, buffaloes were given 2.5 and 5 IUs of oxytocin daily for 90 days. Here, too, there were no adverse effects on the buffalos estrous cycle and ability to conceive, according to Mahendra Singh, a cattle physiologist at the NDRI. However, the animals grew addicted to oxytocin and produced lesser milk when deprived of it. This is why, continuous use of the hormone is problematic. Does milk from such cattle hurt humans?

Again, there is little evidence that oxytocin injected into cows at low doses is secreted in milk. In a 2014 study by the National Institute of Nutrition, Hyderabad, researchers found that oxytocin levels were similar in milk from cows injected with up to 1 IU of the hormone and untreated cows. Plus, whatever little oxytocin was in the milk did not survive intestinal digestion. So, it is unlikely that humans would experience effects like cancer. If oxytocin doesn’t hurt, why the ban?

Oxytocin can be overused in the absence of oversight by a veterinary doctor. At high doses, it can hurt animals. Also, when untrained dairy farmers are administering the injection, it can cause pain for the animals. Several investigations, both by the media and by law-enforcement officials, have found indiscriminate oxytocin use in States like Punjab and Haryana. Sometimes oxytocin is used to compensate for stressful living conditions, which interferes with milk let-down. Also, because the synthetic oxytocin available in pharmacies is expensive, farmers buy crude pituitary extract of the hormone from grey markets. Such extracts contain several other hormones like gonadotropins, which could have ill-effects too. What can go wrong if animals are continuously given high doses? In a 1958 study, when dairy heifers were giving over 100 IUs of the drug daily, the hormone interfered with the formation of the animal s corpus luteum, an endocrine structure critical to pregnancy. Was the ban the only solution?

No, given the drug s importance to both human and veterinary medicine, the Drugs Technical Advisory Board recommended against a ban, advocating better surveillance instead. A ban might lead to scarcity and high drug prices. (Adapted from The Hindu)






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Social Issues

1. Why are the Marathas so restive? (Relevant for GS Prelims, GS Mains Paper I;

Social Issues)

What is the trigger?

In July, while the monsoon session of the legislature was on, a group of Maratha protesters launched a sit-in against the BJP government for not fulfilling the promises made to the community, including 16% reservation. The issue, however, spilled outside the Assembly, when Chief Minister Devendra Fadnavis cancelled his visit to Pandharpur for the Ashadhi Ekadashi puja. He cited police reports that pointed to the possibility of snakes being released in the crowd. It enraged the community which accused him of false allegations and announced a State-wide protest and bandhs. The Marathas also wanted clarity on the Chief Minister s statement that of the new recruitment for 72,000 posts, 16% would be reserved for the community. What did the government do?

The bandh was marked by violence in Aurangabad, Navi Mumbai and the Chakan industrial area near Pune, with Maratha leaders alleging infiltration of anti-social elements. Eight Maratha youths committed suicide. Pressure from the community resulted in MLAs from the Shiv Sena, the Congress and the NCP offering to resign. The government finally announced a stay on the recruitment. It sought time till November to resolve the issue. Why raise the demand now?

The community feels the government is dragging its feet on reservation. The struggle for special treatment has been going on for the past few years. On November 14, 2014, the Bombay High Court stayed the Maratha reservation granted by the Congress-NCP government. It said the State had crossed the 50% limit capped by the Supreme Court and that the Mandal Commission (1980), the National Commission for Backward Classes (2000) and the Bapat Commission (2008) had concluded that the Marathas were a socially advanced community. The Supreme Court refused to stay the order. In January 2015, the State government decided to submit additional information to the court in support of Maratha reservation. On July 13, 2016, the rape and murder of a minor Maratha girl fuelled the community s demands. Till 2017, over 58 massive silent Maratha morchas were organised across the State. To make its case stronger in court, in November 2017, Justice Maroti Gaikwad (retd.) was appointed as the head of the State Backward Class Commission. It is compiling a report to ascertain the economic and social backwardness of the community.






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The report will be based on the findings of a sample survey conducted in five villages in every district. It is yet to be submitted to the government. The case is pending in the High Court. Till then, no decision on reservation can be taken. Is it justified?

In 2008, the State Backward Class Commission, headed by Justice R.M. Bapat (retd.), did not endorse Maratha reservation, voicing opinion against the inclusion of the community in the OBC category as they were not socially backward. His report was neither accepted nor rejected by the State government. As the Maratha coordination committee launched a State-wide campaign called Deta ki Jata (Are you giving or going back?), with the demand for reservation from 2011, the then Congress-NCP government, headed by Prithviraj Chavan, appointed a high-powered committee under Industries Minister Narayan Rane to submit a case to grant reservation for the Marathas. The report was submitted in June 2013. A year later, the Congress-NCP government cleared 16% reservation for the Marathas. What lies ahead?

Mr. Fadnavis has promised to resolve the issue. A special legislative session will be called after the report of the Backward Class Commission, and the reservation is likely to be extended. Till then, protests are likely to continue. With elections approaching, all political parties are attempting to keep Marathas — politically one of the strongest contingents — happy. As for the Marathas, with no clear leader, cracks are visible. (Adapted from The Hindu)

2. Retrograde move: On Punajb's proposed law on sacrilege (Relevant for GS mains

Paper I; Social Issues)

Life imprisonment on sacrilege

The Punjab Cabinet s decision to amend the law to make acts of sacrilege against the holy books of major religions punishable with life imprisonment is retrograde and fraught with undesirable consequences. It may also set off a needless flurry of legislation in the rest of India to pander to different groups. The current proposal is a slightly expanded form of amendments passed by the Punjab Assembly in 2016, specifically aimed at curbing acts of sacrilege targeting the Guru Granth Sahib. What is the reaction of Central government?

The Centre had then returned the Bills, saying that protecting the holy book of only one religion would make it discriminatory and anti-secular. The proposal now cleared by the Cabinet aims to also cover the Bible, the Koran and the Bhagvad Gita. In specifics, the law will introduce a new section (Section 295-AA) in the Indian Penal Code after India s own blasphemy law , Section 295-A, which criminalises deliberate and malicious acts intended






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to outrage religious feelings . As prior permission of the Central or State government is needed to prosecute someone under such sections, a consequential amendment to the Code of Criminal Procedure will be required. Earlier bill

The earlier Bill was introduced by the Shiromani Akali Dal government following allegations of desecration of the holy book. Opposition to the Bill was then limited to the question whether holy books of other religions did not warrant the same protection. None seemed concerned about using religious sensitivities to score political points. Need for separate law?

Is there any necessity for a fresh provision to protect religious books from damage, insult and sacrilege, when Section 295-A itself covers it? While upholding its constitutional validity in 1957, the Supreme Court had clarified that the section punishes the aggravated form of insult to religion when it is perpetrated with the deliberate and malicious intention of outraging religious feelings . What is conclusion?

It is true that one limb of any blasphemy law, as Section 295-A can be termed, is aimed at preserving public order; and miscreants can fan disorder and tension by malicious acts such as damaging or desecrating a holy text. This can be invoked to jail someone for three years. Providing for a life term for the same offence in relation to religious texts would be grossly disproportionate. Sacrilege itself is a vague term, and would render the section too broad. There is a history of misuse of laws aimed to protect religious sentiments, and those that seek to punish persons who promote enmity between different groups. They have a chilling effect on free speech, and give a handle to anyone claiming to be outraged to pursue vexatious prosecutions. There is a case to read down Section 295-A and Section 153-A of the IPC that give scope to prosecute people in the name of protecting the feelings of a section of society. There is no case whatsoever to enhance jail terms. (Adapted from The Hindu)






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Internal Security

1. Strategic Partnership guidelines for participation of private sector (Relevant for

GS Prelims, GS Mains Paper III; Internal Security)

Govt. approves implementation of Strategic Partnership guidelines

In a major step towards boosting private sector participation in domestic defence manufacturing, the Defence Acquisition Council (DAC) approved the implementation of Strategic Partnership guidelines. What is the aim of guidelines?

SP model aims to revitalise defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon system for future needs of armed forces. The amplifying guidelines lay emphasis on incentivisation of transfer of niche technology and higher indigenous content, the Defence Ministry said in a statement. What do the guidelines involve?

The SP model has four segments — submarines, single engine fighter aircraft, helicopters and armoured carriers/main battle tanks — which would be specifically opened up for the private sector. Under this policy one Indian private company would be selected in each segment which would tie-up with shortlisted global equipment manufacturers to manufacture the platforms in India under technology transfer. The ambitious policy came into effect in May last year but progress was delayed due to the lack of specific guidelines. The DAC also approved platform specific guidelines for procurement of Naval Utility helicopters. Similar guidelines for the other categories will be issued soon. (Adapted from The Hindu)






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Miscellaneous

1. Indian-origin mathematician Akshay Venkatesh gets prestigious Fields Medal

(Relevant for GS Prelims)

Akshay Venkatesh, a renowned Indian-Australian mathematician, is one of four winners of mathematics prestigious Fields medal, known as the Nobel prize for math. New Delhi-born Venkatesh, who is currently teaching at Stanford University, has won the Fields Medal for his profound contributions to an exceptionally broad range of subjects in mathematics. What are Field medals?

The Fields medals are awarded every four years to the most promising mathematicians under the age of 40. The prize was inaugurated in 1932 at the request of Canadian mathematician John Charles Fields, who ran the 1924 Mathematics Congress in Toronto. Each winner receives a 15,000 Canadian-dollar cash prize. At least two, and preferably four people, are always honoured in the award ceremony. Other winners

The other three winners are: Caucher Birkar, a Cambridge University professor of Iranian Kurdish origin; Germany s Peter Scholze, who teaches at the University of Bonn and Alessio Figalli, an Italian mathematician at ETH Zurich. More about Venkatesh

Venkatesh has worked at the highest level in number theory, arithmetic geometry, topology, automorphic forms and ergodic theory. His research has been recognized with many awards, including the Ostrowski Prize, the Infosys Prize, the Salem Prize and Sastra Ramanujan Prize. (Adapted from The Hindu)

2. Restoring dignity: on stigma attached to leprosy (Relevant for GS Prelims)

Stigma attached to leprosy

It has long been a blot on Indian society that while leprosy is completely curable, there lingers a social stigma attached to it. Even more shocking is that colonial laws that predate leprosy eradication programmes and medical advancements remain on the statute book. These were unconscionably discriminatory from the beginning, but even in independent India, where the law has been an instrument for social change, the process of removing them has been bafflingly slow. The Lepers Act of 1898 was repealed only two years ago. It is time for concerted action to end the entrenched discrimination in law and society against those afflicted by it.






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Recent developments to de-stigmatise leprosy

Two recent developments hold out hope. One was the introduction of a Bill in Parliament to remove leprosy as a ground for seeking divorce or legal separation from one s spouse, and the other was the Supreme Court asking the Centre whether it would bring in a positive law conferring rights and benefits on persons with leprosy and deeming as repealed all Acts and rules that perpetuated the stigma associated with it. The Personal Laws (Amendment) Bill, 2018, is only a small step. An affirmative action law that recognises the rights of those affected and promotes their social inclusion will serve a larger purpose. It may mark the beginning of the end to the culture of ostracisation that most of them face and help remove misconceptions about the disease and dispel the belief that physical segregation of patients is necessary. It is sad that it took so long to get such proposals on the legislative agenda. Background

Since last year, the Supreme Court has been hearing a writ petition by the Vidhi Centre for Legal Policy seeking to uphold the fundamental rights of people with leprosy and the repeal of discriminatory laws against them. The court has been approaching the issue with sensitivity and is seeking to find legal means to ensure a life of dignity for them. The 256th Report of the Law Commission came up with a number of suggestions, including the repeal of discriminatory legal provisions. It listed for abolition personal laws and Acts on beggary. The report cited the UN General Assembly resolution of 2010 on the elimination of discrimination against persons with leprosy. The resolution sought the abolition of laws, rules, regulations, customs and practices that amounted to discrimination, and wanted countries to promote the understanding that leprosy is not easily communicable and is curable. The campaign to end discrimination against those afflicted, and combating the stigma associated with it, is decades old. While governments may have to handle the legislative part, society has an even larger role to play. It is possible to end discrimination by law, but stigma tends to survive reform and may require more than legal efforts to eliminate. (Adapted from The Hindu)





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