CURRENT AFFAIRS JANUARY PART - IV

JANUARY 25-31, 2017

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POLITY, GOVERNANCE AND PUBLIC POLICY

Water in Concurrent List In News: The Government of India recently held discussions with states on the issue of bringing water into the Concurrent List of the Constitution.

Current Situation

In India water is a State subject, but the provisions

are quite complicated.

The primary entry in the Constitution relating to water Entry 17 in the State List.

It brings water including water supplies, irrigation and canals, drainage and embankments, water storage and water power under state list.

Union has the exclusive authority related with Inter-State Rivers if Parliament legislates in public interest, via Entry 56 in the Union List.

This provision has not been used by Parliament.

Under Entry 56, Parliament enact the River Boards Act 1956 to the establish River Boards for inter-State rivers.

But because of the strong resistance by State governments to any enhancement of the role of the Central government no such board has been

established under the Act so far.

Therefore each riparian state has an unrestrained hold over the portion of the river that runs through its territory.

The Centre cannot intervene unless asked by the contending parties or directed by the judiciary to do so.

Need for the Changes

Principle - The current provision disregards the principle of equitable sharing of common property.

Countless inter-state water disputes of the present days are due to this.

Resource depletion - The extravagant and wasteful usage of river water one state deprives other states to meet even their essential needs.

Same is the case of over-exploitation of ground

water at one spot can have detrimental effects in neighbouring areas.

Non Compliance - The states most often reject

pleas by the Centre or awards of tribunals appointed by it to arbitrate on these matters.

The court judgments also remain unimplemented. e.g Verdict on Cauvery waters and Sutlej-Yamuna Link Canal.

Constitutional Error - Moreover, the Constitution-makers could not have anticipated the water scarcity and crisis of present times. Neither they could have a foreseen the climate change and its impact on water resources.

Previous Recommendations

In 2011 Ashok Chawla Committee underscored the need for a comprehensive national legislation on water either by bringing water in the Concurrent List or through a legal framework for treating water as a unified common resource.

The parliamentary standing committee on water

resources and Parliament‘s Public Accounts Committee also have favoured the shift.

The states should co-operate with centre on this.

If the states refuse, the Centre should explore other options effectively using Entry 56 in the Union List.

But at the same time enough safeguards should be taken to avoid centralisation which deprives states of their rights.

Conclusion

If a subject is added to the concurrent list, both the state and the centre can make laws on that subject.

In case of conflict between the central and state law on the subject, the central law prevails.

But if the state law is reserved for the

consideration of the President and he gave his accent, then the state law will prevail in that state.

Public Safety Act in J&K In News: The J&K Assembly witnessed disruption in the assembly over a detention made under the state‘s Public Safety Act.

A boy was detained on September 2016, for protests over the Burhan Wani killing.

The government insists the age of the detainee, is 20-25 years.

The opposition protested showed school documents saying he is 14.

A medical panel set up by the government has put his age at 19 to 21.

Public Safety Act

The Act was first promulgated in J&K in 1978 for administrative detention.

It was aimed at containing the timber smugglers.

Originally, it allowed the government to detain

any person above the age of 16 without trial for a period of two years.

The amendments made in 2011 raised the minimum age of a person from 16 to 18 years.

It also reduced the maximum detention period from one year to three months in case of public disorder, and from two years to six months in

cases where the security of the State is involved.

However there is a provision for revision and the detention period can be extended to one year and two years respectively.

Police prepare a case file against the accused and submit it to the deputy commissioner, detailing why a person needs to be detained under the Act.

Then the detention order under the PSA is issued by the district magistrate/deputy commissioner.

Argument and Counter Argument

Discretionary power - It is up to discretion of the deputy commissioner to accept or reject the recommendations.

But in most cases, district magistrates pass detention orders without questioning the police.

Revolving detention - A person detained under the PSA can approach the high court to get relief.

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But usually the government resorts to what is called ―revolving door detention‖ i.e the moment the high court releases the person, the government uses the PSA against him again in another case.

E.g Hurriyat leader Masarat Alam has been booked under the PSA for 17 consecutive times.

Political Intentions - The government has frequently used the Act against political opponents.

Rights group Amnesty International has called the PSA a ―lawless law‖. It states that the state uses the law to keep people that the government can‘t convict through proper legal channels.

Number of detainees - During the protests over the killing of Hizbul Mujaihideen commander Burhan Muzaffar Wani more than 550 persons were detained under the PSA.

It is the highest number in a year.

Age - The government was accused of using it against people irrespective of age, from minors to 80-year-olds.

While school certificates show many of the arrested

children as minors, police maintain they are adults.

In at least two cases, the J&K High Court declared the arrested boys as minors and ordered their release.

ECONOMIC AFFAIRS

Universal Basic Income : Detail Analysis In News: PM speech of December 31 made clear was that India was firmly moving away from the

anti-poverty policies pursued by all previous governments.

The new approach, made possible by technology, is

to get away from the Amartya Sen-advocated in-kind income transfers to some version of cash transfers.

What is Basic Income?

A basic income is also called unconditional basic income, Citizen's Income, basic income guarantee, universal basic income (UBI) or universal demo grants.

It is a form of social security in which all citizens or residents of a country regularly receive an unconditional sum of money, either from a government or some other public institution.

It is free from any other income generated or received by citizens.

What are the merits?

It is beneficial for fighting inequality, slow wage growth, advancing automation and fears that immigrants will take away jobs.

While free trade and technological advances have

grown national incomes, not every individual is

better off.

Redistributive government intervention is needed so that no one is left worse off.

It will be administratively easier and cleaner than MGNREGA and putting money into select Aadhaar- seeded Jan-Dhan bank accounts ought to be relatively simple.

Poverty Alleviation Programs

Two major in-kind poverty alleviation policies in operation are the PDS and MGNREGA. Both involve large-scale government involvement.

PDS – the government (FCI) involved in procurement, storage, transport and distribution of food.

MGNREGA – the government planning projects, employing people, on what is touted as the largest

work programme in the world.

Change Due to DBT

Helped by technology and Aadhaar, the Direct Benefit Transfer (DBT) scheme has gathered considerable momentum over the last few years.

A logical expansion of the DBT is the policy of Universal Basic Income (UBI), a guaranteed minimum income to all (population, adult, worker etc.)

The Economic Survey will contain a large section on UBI. For those interested in efficient redistribution of income, this news is extremely welcome.

UBI: Analysis

UBI is a more effective way of reaching the poor that the current schemes that government employs.

Poverty is now not only due to birth but also related to reasons like drought, declining opportunities in agriculture, disease and so on.

Thus the safety net provided by the government should be quite wide and that is why this UBI has some merit.

The idea of the UBI is even more relevant for India as targeted approach in India got ‗messed up‘ when it comes to distinguishing the poor from the non-poor.

Providing direct cash transfers by bypassing a

corrupt bureaucracy is a more efficient way of

helping the poor than providing subsidies.

What makes the current proposal different is the ‗universality‘ of the cash transfer, which means the government does not have to waste resources and time in identifying beneficiaries.

An acceptable level of the UBI could be an income

equivalent of the poverty line (the Tendulkar committee poverty line), which is about Rs1, 090 per month for each individual, in 2015-16 prices.

The total cost of providing this income to all Indians would amount to 12.5% of GDP, which is nearly equal to the size of the Union Government‘s budget.

Thus, such a UBI which provides poverty line-equivalent income to all Indians does not appear to be feasible because of budget constraints.

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A pilot study conducted by UNICEF and the Self Employed Women’s Association (SEWA) showed that a monthly unconditional grant of Rs300 to each adult and Rs150 to each child led to considerable improvement in their lives and reduced distress driven out-migration.

Challenges Involved

Phasing out of food-related subsidies.

Any plan to replace food related subsidies has to

contend with the implications of such a move on food security of the country.

Whether farmers will continue to produce enough food grains in the absence of price incentives remains a big question.

Food markets may not work effectively in all areas

of the country, requiring state-led distribution networks to provide in-kind food transfers.

Co-ordination between state and central governments.

Any plan to phase out subsidies and tax exemptions (relating to the GST) will require an extraordinary degree of co-operation

between the states and the Centre.

A new universal basic income for all Indians won‘t be affordable unless it replaces the whole multitude of programme and subsidies currently in place.

If the basic income is introduced in addition to the two statutory income transfer schemes for food and wage jobs already in place, the government‘s deficit will increase.

For basic income to be more feasible it should be targeted at the most deprived, using the socio-economic census.

Creating sustainable funding sources for it, whether by way of new taxes or by streamlining entrenched subsidies and incentives, will still be a challenge.

Earlier Recommendations

The Shanta Kumar committee report on restructuring India‘s food procurement and distribution system, recommended a shift to cash transfers initially in the large cities.

As the food subsidies are less regressive compared to others, it may make sense to retain food

subsidies at least for a few years even while an UBI initiative is launched.

One proposal to circumvent the problem, of fiscal stress during an economic downturn, is the idea of a ‗universal basic share‘ mooted by the development economist Debraj Ray.

Under Ray’s proposal, all individuals would be guaranteed a share of the country‘s GDP, which would ensure a relatively lower burden for the government when the economy slows down and tax revenue falls.

Interest Waiver for Farmers In News: The Union Cabinet has given its ex-post facto approval for interest waiver for the two months of November and December, 2016 for

farmers accessing short term crop loans from Cooperative Banks.

Interest Waiver

Farmers in the whole of India availing short term crop loans, from Cooperative Banks will be benefitted.

The decision intends to ensure availability of resources with Cooperative Banks help farmers in easily accessing crop loans from Cooperative Banks to overcome the difficulties in view of the

reduction in availability of cash for carrying out Rabi operations.

Additional resources are to be provided to Cooperative Banks through NABARD for refinance to the Cooperative Banks.

This will be extended by Cooperative Banks to the farmers in the current financial year 2016-17.

Background

The Government of India has, since 2006-07, been implementing the Interest Subvention Scheme under which short-term crop loans upto Rs.3 lakh are made available to the farmers at an interest rate of 7 percent per annum by the Public Sector Banks, Regional Rural Banks and Cooperative Banks.

Farmers are provided with 3% interest subvention for short term crop loan upto Rs. 3 lakhs on prompt repayment of the loan. Thus, farmers have to effectively pay only 4% as interest for the said crop loan.

Group Housing Scheme With PF Funds In News: The Employees‘ Provident Fund Organization (EPFO) has mooted a group housing scheme which will enable members to

form cooperative housing societies and use their entire PF savings towards buying land, constructing homes or paying housing loan installments.

The Scheme

Employees with at least three years’ subscription to the Employees‘ Provident Fund scheme will be allowed to withdraw their savings for housing purposes.

Scheme is also valid for including repayment of

loans from their monthly contributions.

The present Employees‘ Provident Fund scheme is not being properly utilized to withdraw money for constructing flats or buying land.

There will be no cap on the amount of Employees‘ PF savings that can be drawn for purchasing land, constructing a house or repaying housing loans, under the proposed scheme.

Members of an existing cooperative society formed

under any present law can avail this scheme, provided at least 10 members of the housing society were subscribers to the Employees‘ Provident Fund scheme.

At present, an employee who has completed 5 years of service is allowed to withdraw PF savings equivalent to 36 months of the member‘s salary (Basic Salary and DA) for construction of a flat or 24 months of the salary for purchasing land.

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Utilization of Nirbhaya Fund Nirbhaya Fund

The fund is created by the Ministry of Finance in 2013, dedicated for implementation of initiatives aimed at enhancing the safety and security for women in the country.

It is a non-lapsable corpus fund.

An Empowered Committee of Officers under the Secretary of Women and Child Development Ministry was setup in 2016 to monitor the fund.

It is an inter-ministerial committee appraises and recommends various projects proposed by different

Ministries to be funded from the Nirbhaya Fund.

Schemes under Nirbhaya Fund

One Stop Centre Scheme, also known as ―Sakhi Centres‖ aims at establishing centres to facilitate women affected by violence.

It provides First aid, Medical aid, Police assistance, Legal aid and counseling support.

Mahila Police Volunteers (MPVs) will act as a link between police and community and help women in distress.

Haryana has become the first state to start the Mahila Police Volunteer scheme.

Universalisation of Women Helpline - Helpline specifically for women with a common number across the country will link the One Stop Centres.

Abhaya Project - It is the proposed project in

Andhra Pradesh for ensuring the safety of Women and Girl child during the transport.

CHIRALI (Friends Forever)

This scheme is implemented in the state of Rajasthan.

Under the scheme, Community Action Groups are constituted under Gram Panchayats to provide enabling environment to support girls and women to move freely and make use of opportunities for their wellbeing.

Industrial Licensing: New Norms

The Ministry of Home Affairs will issue the industrial licenses for defence manufacturing which includes electronic aerospace and defense

equipment.

Previously it was issued by Department of

Industrial Policy and Promotion (DIPP) under Ministry of Commerce and Industry.

The participation of private sector in defence manufacturing was allowed since 2001 subject to licensing from DIPP under Industries (Development and Regulation) Act, 1951.

However with the notification of Arms Rule, 2016, Items configured for military use will be handled by Home Ministry instead of DIPP.

Department of Industrial Policy and

Promotion

The department is responsible for formulation and

Implementation of India‘s Industrial Policy.

Amendment of the FDI policy.

Industrial Promotion by Implementing Infrastructure Up gradation Scheme (IIUS).

Implementation of Intellectual property Rights

Policy.

It is also the nodal Department for coordinating and implementing programmes with United Nations Industrial Development Organization (UNIDO) in India.

The Statutory bodies under DIPP

Intellectual Property Appellate Board

Petroleum and Explosives Safety Organisation (PESO)

The following are the 6 industries which require compulsory licensing

Arms and ammunition, explosives and allied items

of defence equipment,

Defence aircraft and warships,

Atomic substances,

Narcotics and psychotropic substances,

Hazardous chemicals, distillation and brewing of

alcoholic drinks,

Cigarettes/cigars and manufactured tobacco substitutes.

Coal Cess

In order to financially support clean energy initiatives, Coal Cess on domestically produced and imported coal, lignite and peat production was introduced by the Government.

The National Clean Energy Fund (NCEF) was created in 2010, under the Ministry of Finance by pooling the collected Coal Cess.

An Inter Ministerial Group (IMG) chaired by Finance Secretary approves the projects/schemes eligible for financing under the NCEF.

The major share of the NCEF fund was allocated to

Ministry of New and Renewable Energy and it also includes funding projects from other ministries such as Namame Gange, Climate Change Action Plan and conservation of ecosystem, wildlife habitats, conservation of tigers & elephants, etc.,

NCEF was renamed as ―Clean Environment Fund‖ during 2015-16 budget.

Trade Facilitation Agreement

The Trade Facilitation Agreement contains provisions for expediting the movement, release and clearance of goods, including goods in transit.

It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.

It further contains provisions for technical assistance and capacity building in this area.

In December 2013, WTO members concluded negotiations on a Trade Facilitation Agreement at the Bali Ministerial Conference, as part of a wider ―Bali Package‖.

In line with the decision adopted in Bali, WTO members adopted on 27 November 2014 a Protocol

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of Amendment to insert the new Agreement into Annex 1A of the WTO Agreement.

The Trade Facilitation Agreement will enter into force once two-thirds of members have completed their domestic ratification process.

India has ratified the Trade Facilitation Agreement (TFA) of the World Trade Agreement (WTO) and is the 76th WTO member to accept the TFA.

Record trade in Renewable Energy

Certificates

Renewable Energy Certificates (REC) is instruments awarded electronically in demat form to renewable energy companies to sell the

electricity they produce through renewable sources.

The policies framed under the Electricity Act, 2003, provides framework for the creation of Renewable Energy Certificate.

It is mainly to address the mismatch in the availability of Renewable Energy sources and the requirement of distributed licensee to meet the renewable purchase obligation.

There is a designated central agency that will issue the REC to Renewable Energy (RE) generators.

The REC will be exchanged only in the Power Exchanges approved by Central Electricity Regulatory Commission.

The distribution companies, open access companies, Captive power plants will have the option of purchasing the REC to meet the requirement of RPO.

Renewable Purchase Obligation is mandated by the State Electricity Regulatory Commission

(SERC) to purchase minimum level of renewable energy out of the total consumption.

INTERNATIONAL AFFAIRS

India and UAE In News: Sheikh Mohammed bin Zayed Al Nahyan of the United Arab Emirates was the guest of honour in Delhi on Republic day. The India- UAE joint statement attacked entities and states which use religion to sustain and sponsor terrorism against other countries. This was a reversal of the UAE‘s stand in the past. Governments have been asked by the two countries to control the activities of so called non-state actors.

Importance

It holds significance since the UAE as part of the Organization of Islamic Cooperation (OIC),

supported Islamabad-backed resolutions on Kashmir.

The UAE, which has been one of Pakistan‘s closest allies, and also one of the few countries to have recognized Taliban rule in Afghanistan in the mid-1990s.

They condemned the terrorist attacks in Kabul and Kandahar in which five UAE diplomats were killed.

India and UAE’s Stand on Counter Terrorism

The two countries leader articulated their clear and unequivocal resolve to cooperate on counter-terrorism by adopting a policy of “zero tolerance” towards the menace of terrorism.

The UAE and India agreed to coordinate efforts to ―counter radicalization against misuse of religion by groups and countries for inciting hatred and perpetrating acts of terrorism‖.

They emphasized the need to facilitate regular

exchanges of religious scholars and intellectuals to organize conferences and seminars to promote the values of peace, tolerance, inclusiveness and welfare that are inherent in all religions.

They also emphasized the importance of promoting a culture of inclusiveness, openness and tolerance within and among societies and agreed to work

together closely to confront the global ills of extremism, terrorism and religious intolerance.

UAE’s on Comprehensive Convention on International Terrorism

UAE supported New Delhi‘s position on the Comprehensive Convention on International Terrorism in the United Nations.

They also called for early conclusion of

negotiations.

Both sides noted the importance of efforts to disrupt terrorist networks, their financing and movement, in accordance with the relevant principles and purposes of the UN Charter and international laws.

The two sides deplored the use of double standards in addressing the menace of international terrorism and agreed to strengthen cooperation in combating terrorism both at the bilateral level and within the multilateral system.

India-UAE Strategic Partnership

India appreciated the support extended by UAE security agencies on specific issues of security

concern to India — a reference to the ISIS threat.

Ongoing close cooperation particularly on counter-terrorism, maritime security and cyber-security remained a key pillar of the bilateral strategic

partnership.

Cooperation in the fields of law enforcement related to Trans boundary organized crimes and illegal migration will be enhanced.

New Contours of Partnership

India‘s interest in the UAE rests on following pillars:

Trade ties of about $50 billion,

Energy and oil supplies from the world‘s fifth largest exporter,

The welfare of 2.6 million Indians who remit

billions.

Defense and security.

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While bilateral ties have been robust for decades, the defence and security partnership is clearly the new driver for ties between the two governments.

The signing of the strategic partnership agreement was the highlight of the UAE Crown Prince Mohammed bin Zayed Al Nahyan‘s visit.

The contours of this partnership are now being set:

Joint military exercises, Joint manufacturing and purchase of equipment

and spare parts from India Cooperation on fighting terror.

UAE shares India‘s frustration on cross-border terrorism from Pakistan, especially in the wake of

the recent bomb blast in Kandahar, in which five UAE officials were among the victims.

Conclusion

The strategic partnership that India envisions with the UAE must be based on clarity and concrete measures.

This should include a crackdown on the shadowy businesses owned by Dawood Ibrahim.

Also more steps to curb terror financing of the Taliban and groups in Pakistan and Afghanistan; such money is often routed through expatriate remittances from the UAE.

India‘s hopes of investment from the Abu Dhabi

sovereign wealth fund, one of the world‘s largest at $500 billion, will not be realized until New Delhi steps up efficiency at its end.

That it took more than a year for the government to fully set up the National Investment and

Infrastructure Fund mechanism for the UAE funds is a case in point.

The delay resulted in the MoU for investment of a possible $75 billion over 10 years falling through.

Personalized leader-to-leader bilateral diplomacy is a great conversation-starter, but not sufficient to energies ties.

India-US: Defence Technology And Trade

Initiative In News: American Defense Secretary General, in

his speech, highlighted the centrality of the India-US Defense Technology and Trade Initiative (DTTI) to ties between the two countries. Because of the DTTI, he said, the bilateral defence relationship ―has grown to the benefit of both countries‖. But, notwithstanding the General‘s optimism about the initiative, it has shown some progress on only two projects so far.

What is DTTI?

The DTTI mechanism was launched in 2012. It is not a treaty or a law.

It is a flexible mechanism to ensure that senior

leaders from our nations are persistently focused on the opportunities and challenges associated with growing our defense partnership.

The DTTI aims to

Transform the bilateral defense relationship into one that is limited only by independent strategic

decisions, rather than bureaucratic obstacles or inefficient procedures.

Strengthen India‘s defense industrial base by moving away from the traditional ―buyer-seller‖ dynamic toward a more collaborative approach.

Explore new areas of technological collaboration

from science and technology cooperation through co-development and co-production.

Expand U.S.-Indian business ties.

The first four projects under the DTTI were announced during President Barack Obama‘s visit to New Delhi as chief guest for the 2015 Republic Day celebrations.

India and the US are currently working on six projects under the DTTI framework and two more American proposals are under the consideration.

The whole idea of the DTTI was to cut through the

government bureaucracies on the two sides.

As a mechanism for defense cooperation, it has to

focus on advanced technologies.

Projects Proposed Under DTTI

DRDO and US Labs are the lead agencies from the two countries for these projects.

The Next General Individual Protection Ensemble and Mobile Electric Hybrid Power Source projects reached the agreement stage in 2015.

The Digital Helmet Mounted Display and Joint Biological Tactical Detection System projects were proposed last year and are currently ―at a discussion stage‖.

The US offer for trilateral cooperation (with Israel) on the futuristic military platform was made last November but sources said that they are

yet to make up their mind on it.

The Defense Ministry is likely to convey its decision to the Americans at the next DTTI meeting (March/April), which is scheduled to be hosted at the Pentagon.

The Americans feel that three advanced countries can bring their advantage of expertise and economy to the project which, if successful, could then be used by the armies of all the three countries.

The American side also proposed bilateral

development of Future Vertical Lift Helicopter (FVLH) in November under the DTTI.

The Pentagon has also proposed to the Defense Ministry that the two sides work on a deal for an American combat fighter aircraft, whether F-16

or F-18, under the DTTI.

But the Defense Ministry did not want the

fighter aircrafts to be considered under the DTTI.

Government is moving forward for single-engine foreign fighter, the American F-16 or the Swedish Gripen, under Make in India to supplement the 36 Rafael fighters in the medium-weight category.

Conclusion

Donald Trump‘s victory in the US Presidential polls had left the Indian side concerned about the state of the DTTI because it was seen as Carter‘s personal project.

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These concerns were addressed with the passage of the National Defence Authorization Act of 2017 (NDAA 2017) by the US government last month, which institutionalized the DTTI mechanism.

Despite the General‘s positive statements, New Delhi remains unsure about the priority the Trump administration may give to defence cooperation.

By all accounts, New Delhi will adopt “a wait and

watch attitude”.

India’s Stand on ISDS In News: India and some other countries have rejected an informal proposal made by the EU and

Canada to work towards a multilateral pact on investments at the World Trade Organization that would have an Investor-State Dispute Settlement (ISDS) mechanism built into it.

Investor – State Dispute Settlement (ISDS)

ISDS is an instrument of international public law; it is a neutral international arbitration procedure.

Like other forms of commercial, labour, or judicial arbitration, ISDS seeks to provide an impartial,

law-based approach to resolve conflicts.

It is a system through which individual companies can sue countries for alleged discriminatory practices.

It is contained in a number of bilateral investment treaties, in certain international trade treaties, such as NAFTA (chapter 11), and the proposed TPP (chapters 9 and 28) and CETA(sections 3 and 4) agreements.

ISDS is also found in international investment agreements, such as the Energy Charter Treaty.

If an investor from one country (the "home state") invests in another country (the "host state"), both of which have agreed to ISDS, and the host state violates the rights granted to the investor under public international law, then that investor may bring the matter before an arbitral tribunal.

New Proposal

The EU and Canada have got into an investment

agreement in which they have got the much

contentious ISDS which allows corporates to take sovereign governments to international arbitration.

They now want it to be the template for a multilateral agreement.

The proposal for a global investment pact was rejected by India, Brazil, Japan and Argentina.

The Need for ISDS

To resolve investment conflicts without creating state-to-state conflict

To protect citizens abroad

To signal to potential investors that the rule of law

will be respected

Why India has rejected?

It is only after all options for settling disputes between a sovereign government and a corporate in domestic courts have been exhausted do we

want to allow the issue to be taken up in international courts.

It should be part of a bilateral agreement and not a multilateral agreement.

The EU, in a bilateral meeting with India, also indicated that it would hold free trade talks with India only after concluding a new bilateral investment treaty (BIT) with India.

Last year, New Delhi had asked all countries with

which India has investment protection agreements, including the EU, to re-negotiate those pacts on the basis of the new draft text of BIT.

EU did not do so and the existing BITs with existing members are set to lapse in April.

India-China over Nepal In News: China‘s People‘s Liberation Army (PLA) is planning to hold its first-ever joint military exercise with Nepal.

India-Nepal Defense Relations

India is the largest supplier of military hardware to the Nepali Army.

Since 1950, it has been a custom for the two countries to confer honors on each other‘s army chiefs,

This signifies the close military-to-military ties between the two countries. Chinese military assistance to Nepal has significantly increased in recent years.

But this is the first time that China has proposed a joint military exercise and Nepal accepted.

The development came as Nepal is proposing to

change some provisions of the 1950 Peace and Friendship Treaty with India.

1950 Peace Treaty

The treaty states that Nepal needs to inform or receive consent from India when it purchases military hardware from other countries.

Nepal wants to change such provisions and make independent decisions on security issues, including the purchase of military equipment.

Growing Chinese Influence

For the long time, India enjoyed almost exclusive influence in Nepal.

But after the abolition of monarchy in 2008 China has increased their influence in Nepal, mainly on political matters.

Relationship of India and Nepal strained during

India‘s interference in the Nepal‘s constitution making

After accusations of a blockade at the Nepal-India border, Nepal relied on China to meet its everyday essential needs.

The tensions between Nepal and India provided room for China to increase its influence in all areas of Nepal, including in politics.

Similarly, several joint Nepal-China infrastructure development projects, including the expansion of railways and road connectivity, gained momentum.

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New Development

India sees the recent announcement of military exercise as China encroachment in India‘s backyard.

India wants to maintain Nepal as its “sphere of influence” while China wants to increase its influence.

India sees this as not only related to trade and commerce, but a part of China‘s larger strategy to

encircle it in South Asia.

Way Ahead

There is no reason that India should worry about a Nepal-China military exercise.

China is not the only country conducting such drills with Nepal. e.g Nepal-U.S. military drill.

Nepal has the sovereign right to make that decision. India also has its own joint military exercise with China.

India‘s own experience with China should reassure it that joint exercises are not an indicator of converging strategic interests.

Nepal should be allowed to build a cordial

relationship with both of its neighbors to gain the maximum economic benefits.

ENVIRONMENTAL AFFAIRS

Cleaning Ganga Transfered to NGT In News: The Supreme Court wrapped up a PIL on cleaning of river Ganga and sent it to the National Green Tribunal (NGT) for more effective adjudication. The apex court had been monitoring the issue for 31 years.

A bench headed by Chief Justice JS Khehar said since NGT was dealing with the issue related to

municipal solid waste and industrial waste on a daily basis, the concern regarding domestic sewage and other sources of pollution should be heard by it.

The green court will submit an interim report to it every six months, only to inform it about the progress made and difficulties faced, if any.

Background

In its first major order in September, 1987, the apex court directed closure of 20 tanneries

working on the banks of Ganga and discharging effluents into it.

Similarly, in January, 1988 the apex court, while reiterating the earlier directions, ordered the municipalities concerned to set up Sewage Treatment Plants (STPs) to ensure that untreated domestic sewage does not enter the river.

In 2006, it took note of the CAG report on the expenditure on the Ganga Action Plan. It said that audit test check in the states, however, found many instances of financial mismanagement.

Several other important orders were also passed by the apex court on the PIL including that industrial units shall submit a time bound action plan for setting up of anti- pollution measures to be completed before March 31, 2015.

Namami Gange - Action Plan

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Some Species

Keystone species:

A keystone species is a plant or animal that plays a unique and crucial role in the way an ecosystem functions.

Without them, the ecosystem would be dramatically different or cease to exist altogether.

Its disappearance could affect other species that rely on it for survival.

Example for keystone species is sea otter.

It feed on sea urchins and controls their population. If sea urchins population is not controlled, it would eat up the seaweed, which is a major source of food for the ecosystem

A keystone species is often, but not always, a

predator. Herbivores can also be keystone species.

For example, In African savannas, elephants are a keystone species. It controls the tree population which makes the grasses thrive and sustain grazing.

Foundation Species:

It refers to the species that creates or maintains an ecosystem.

It has a strong role in structuring a community and can occupy any trophic level in a food web.

Corals are one example of a foundation species. It produces the reef structures on which countless other organisms, including human beings, live.

Other examples of foundation species are hardwood forests, kelp beds, and sea grass meadows.

Umbrella Species:

An umbrella species is a large animal or other organism on which many other species depend.

Umbrella species are very similar to keystone

species, but umbrella species are usually migratory and need a large habitat.

Protecting umbrella species automatically protect a host of other species.

Tigers are an example of an umbrella species.

Efforts to save wild tigers in forests also accomplish the goal of saving other species there, such as leopards, boars, hares, antelopes, and

monkeys.

Indicator Species:

An indicator species is a plant or animal that is very sensitive to environmental changes in its ecosystem.

Indicator Species gets affected almost immediately by damage from external influences such as water pollution, air pollution, or climate change to the ecosystem and gives early warning.

Examples of Indicator species

Lichens are indicators of air pollution, especially sulfur dioxide.

Adult frogs and toads are good indicator species since the skin of the adults is moist and permeable, allowing numerous pollutants entry into their bodies. Tadpoles live in water and indicate water quality issues.

Salmons are an indicator species for wetland

ecosystems.

Ecosystem Engineers:

These are organisms that create, modify and

maintain habitats.

Ecosystem engineering can alter the distribution and abundance of large numbers of plants and animals, and significantly modify biodiversity.

The best known examples of ecosystem engineers are humans (Homo sapiens).

Two types of Ecosystem Engineers I. Allogenic engineers - change the environment by

transforming living or nonliving materials around them.

e.g Beavers create dams in the streams, which slows the movement of water. Behind the beaver dam, a pond of still water is formed.

This pond is then colonized by animals and plants

that typically live in lakes rather than streams. II. Autogenic engineers - change the environment

via their own physical structures, i.e. their living and dead tissues create habitats for other organisms to live on or in. e.g. Trees, corals, and giant kelps are good examples of autogenic engineers.

Ocean Acidification and shell Formation

The surface layer of the ocean is in equilibrium with the atmosphere.

Thus any increase in carbon dioxide (CO2) in atmosphere also increases the CO2 content in the ocean which further decreases the pH and results in ocean acidification.

Ocean acidification makes the shellfish and corals difficult to form limestone because acidification causes calcium carbonate to dissolve easily in acidic water.

CO2 + H2O H2CO3 (Carbonic acid) H++HCO3- (Bicarbonate ions)

Now researchers found a species ―single-celled

shellfish foraminifera‖ which makes their shells better in acidic water.

Foraminifera expel large amounts of hydrogen ions through their cell wall and take up the increased concentration of CO2 quickly through its cell wall.

A low acidity prevails inside the organism due to the massive excretion of protons. Under these conditions the ingested carbon dioxide is again converted to carbonate, which reacts with calcium to form lime.

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SCIENCE & TECH AFFAIRS

NASA’s new robotic missions

Lucy and Psyche are two robotic missions to explore asteroids.

The Mission will open new windows to the history of our Solar System.

The Psyche mission will explore 16 Psyche, a giant metal asteroid about three times farther away from the Sun than is the Earth.

The Psyche mission is targeted to be launched in October of 2023.

The Lucy Mission will explore the environment

of Jupiter’s Trojan asteroids and is scheduled to

launch in 2021.

Japan’s 1st Military Communications Satellite

The Kirameki-2 satellite is the first military communication satellite launched by H-2A rocket from the Tanegashima Space Center in southern Japan.

It is the first of three satellites that will replace three civilian ones currently used by Japan's military.

The new satellites will allow military units to

communicate on a high-speed and high-capacity network.

Superwheat

Researchers in the UK have announced genetically modified "super wheat" that increases the efficiency of photosynthesis to boost

yields by 20 to 40 percent. Field trials are expected in 2017.

The researchers focused on improving the efficiency of photosynthesis, by adding genes from a grass called stiff brome.

The new GM wheat was found to assimilate carbon dioxide better than conventional wheat

National Geoscience Award

The National Geosciences Awards are the prestigious awards given by the Ministry of Mines.

The objective of the award is to honor individuals and teams of scientists for their achievements and contributions in the field of fundamental / applied geosciences, mining and allied areas.

Keshav Krishna, a scientist at the National Geophysical Research Institute (NGRI) has been selected for the National Geoscience Award for 2016.

INSAT-3DR

INSAT-3DR similar to INSAT-3D, is an advanced meteorological satellite of India launched by GSLV-F05.

INSAT-3DR will provide service continuity to earlier meteorological missions of ISRO for Earth observation.

The main application of this satellite includes

Climate & Environment observation and Disaster Management as well as search and rescue services and configured with an imaging System and an Atmospheric Sounder.

The Satellite has a lift-off mass of 2211Kg and placed in Geostationary orbit.

Atomic Metallic Hydrogen

Scientists have created atomic metallic hydrogen

which is the rarest material on the planet.

Hydrogen is squeezed at a pressure greater than the pressure at the centre of the earth.

At this extreme pressure solid molecular hydrogen breaks down and the tightly bound molecules dissociate to transform into atomic hydrogen, which is a metal.

The metallic hydrogen could act as a superconductor at room temperatures.

It can be used to increase the effectiveness of electric cars, energy production and storage, and transportation system by making magnetic levitation of high-speed trains possible, more efficient.

When metallic hydrogen is converted back to molecular hydrogen, the energy released during

the process can be used as powerful rocket propellant and has high specific impulse among all other propellants.

Vanadium dioxide (VO2)

Vanadium dioxide (VO2) is a metal with ability to

switch from insulator to conductive metal at the temperature of 67 °C.

Researchers now found that this metal would conduct electricity without conducting heat.

It contradicts the working of all other conductors which usually conducts heat when it conducts electricity i.e against the Wiedemann-Franz Law.

The law states that good conductors of electricity will also be proportionally good conductors of heat, which is why things like motors and appliances get so hot when you use them regularly.

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MISCELLANEOUS

The Sufi Movement

In News: The death anniversary of Sufi Saint Nizamuddin Auliya was recently observed.

Sufi Movement

The 10th century A.D marks the important changes in the realm of ideas and beliefs in the Islamic religion - the rise of the Sufi mystic orders.

The core concept of Sufi Movement is Darikh-i-Duniya / Wahad-ul-wahjud, meaning ―Universal Brotherhood‖. It outwardly rejected the religion and emphasized love and devotion to God and compassion towards all fellow human beings.

Mystics, who are called Sufis, were persons of deep devotion who were disgusted by the display of wealth and degeneration of morals following the establishment of the Islamic empire.

The Sufis were organized in 12 orders or Silsilahs.

A Silsilah was generally led by a prominent mystic

who lived in a Khanqah or hospice along with his disciples.

The Sufi orders are broadly divided into two: Ba-shara – Those who followed the Islamic Law and Be-shara – Those who were not bound by the Islamic Law.

The Sufi saints made themselves popular by adopting musical recitations called ―Sama‖, to create a mood of nearness to God.

Qawwali is the form of sufi devotional music popular in South Asia and ghazal is a form of Qawwali.

Major Silsilahs followed in India

The four main Sufi orders – Chisti, Qadiriyya, Suhrawardiyya and Naqshbandi order were practiced in India.

Chisti Order

The Saints of Chisti Order were lived in poverty and lead a hermit life. They did not accept State service. This order is primarily followed in Afghanistan and Indian Subcontinent.

The Chisti order in India was established in India by Khwaja Muinuddin Chisti in 1192, shortly

after the death of Prithvi Raj Chauhan.

He died in 1236 and his tomb in Ajmer was

constructed by Ghiasuddin Khalji of Malwa. Mohammed Bin Tuqlaq visited the tomb and later it came under State Management during Mughal Ruler Akbar‘s reign.

One of the other notable Sufi saints was Khwaja Qutbuddin Bakhtiyar Kaki who organized work in Delhi and the contemporary Delhi Sultanate Ruler was Illtutmish who was deeply devoted to Chisti Order.

Another famous Sufi saint was Nizamuddin Auliya and he adopted yogic breathing exercises, so much so that the yogis called him sidh or ‗perfect.‘

Auliya‘s famous disciple was Amir Khusrow who is called as ―father of Qawwali‖ and ―Parrot of India‖ and introduced the Ghazal Style to India.

After the death of Nasruddin Chiragh-i-Delhi in the 14th century, the chishtis order declined.

Suharwardi Order

It entered India at the same time as the Chishtis and its activities were confined to the Punjab and Multan.

This order was established in India by Bahauddin Zakanya.

The Most well-known saints were

Shaikhshihabuddin Suharwadi and Hamid-ud-din Nagori.

Another Saint Shaikh Fakhruddin Ibrahim Iraqi composed a treatise called Hamat which is a

commentary on the Unity of Being (Wahdat-al-Wujud) and he was highly respected by the Delhi Sultans from Alauddin Khilji to Muhammad Bin Tughluq.

Unlike the Chishtis, the suharwardi saints did not believe in leading a life of Poverty. They accepted the service of the state and held important posts mainly under Delhi Sultanate ruler Iltutmish.

Qadri Order

This order was established in India by Niyammad-ulla-Qadiri and was introduced in India over Babur period.

A great follower of Qadri Order was DaraShiko, who was the eldest son of the Mughal emperor Shah jahan.

During Aurangazeb‘s reign, the Qadri order lost its patronage.

Nasqabhandi Order

This order was founded by Bahibillah and the followers were very orthodox compared to all other orders.

This order was popularized in India by Babur who

was deeply devoted to Naqshbandiyya leader Khwaja Ubaidullah Ahrar.

One of the disciples of Khwaja was Shaikh Ahmad Sirhindi who opposed all those practices and beliefs of Akbar and demanded re-imposition of Jizyah.

Later he was imprisoned by Jahangir for claiming

a status beyond that of the Prophet.

Committee Of Administrators – BCCI In News: The Supreme Court appointed a four-member Committee of Administrators to implement the Justice Lodha Committee recommendations. In an order the Supreme Court removed the president of BCCI, Anurag Thakur, and the secretary, Ajay Shirke, from their respective positions.

Supreme Court’s earlier Ruling

By accepting the Justice Lodha Committee‘s concerns, the court signaled the end of the current form of cricket administration.

Effective immediately, any BCCI and State associations‘ official must be eligible as per the

Lodha Committee’s eligibility criteria.

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The senior-most eligible vice-president will be the interim president of the BCCI.

The joint secretary will be the interim secretary for the next two weeks.

The court also appointed two senior advocates to propose names for a committee of administrators that will essentially govern cricket and simultaneously ensure implementation of the Lodha Committee recommendations.

Lodha Committee’s Recommendations

Structural Reforms:

9-member apex council replaces the 14-member BCCI working committee.

Each of these office-bearers has a three-year term and can contest for a maximum three terms.

The Lodha Committee also calls for dividing the governance into two parts: cricketing and non-cricketing.

The non-cricketing management will be handled by 6 professional managers headed by a CEO.

Cricket Matters like selection, coaching and performance evaluation should be left to the players.

Restrictions imposed Each of these office-bearers has a 3-year term and

can contest for a maximum three terms. There will be a mandatory cooling off period after

each term. Therefore, no office-bearer can hold office consecutively in a row.

No BCCI office-bearer can be Minister or government servant.

One Vote/State: The Committee recommended

that one association should represent an entire state and only one vote per state.

Indian Premier League It recommends separate governing bodies for the

IPL and BCCI. There should be a 15-day gap between IPL season

and national calendar.

Betting: Legalize it It made a strong recommendation to lawmakers

to legalize betting in cricket for all except cricket players, officials and administrators.

The players and others banned officials should disclose their assets to BCCI in a measure to ensure that they do not bet.

Betting is a $ 400 billion phenomenon practiced across the globe and lawmakers in India should enact laws to legalize it.

Fixing: Criminalize it The committee said that match-and spot-fixing

should be made a criminal offence.

Conflict of Interest & Corruption

One individual hold only one post in cricket administration. The office-bearers would have to choose between positions in respective state associations and the parent body.

A former High Court judge should be appointed as ethics officer by the BCCI to administer issues relating to conflict of interest, misdemeanor and corruption.

A former Supreme Court judge should be appointed ombudsman to resolve internal disputes.

Transparency: Bringing RTI to BCCI It recommended that the Legislature must

seriously consider bringing BCCI within the purview of the RTI Act

Securing player’s interest It recommended the setting up of a Players’

Association to safeguard the interests of the

cricketers. The report said players that are the driving force of

the game, but they had been reduced to the status of employees and subordinates of those governing the game.

The idea is to give players voice, use their expertise and skills for the development and betterment of the game

Women Cricket: Often ignored by BCCI The Women‘s Cricket Committee to be formed

to exclusively pay attention to this much ignored department, along with Women‘s Selection Committee.

The proposed measures could radically alter the way the BCCI functions as well as vastly improve its public image and impart much-needed credibility.

Functions of COA

The COA will be led by former Comptroller and Auditor General of India Vinod Rai.

The other members include historian Ramachandra Guha, MD of Infrastructure Development Finance Company (IDFC) Vikram Limaye and former India women‘s captain Diana

Edulji

They will function as the new interim bosses of the BCCI.

They will run the day-to-day administrations of

the cricket body till Lodha reforms are fully implemented and elections held.

The purpose of COA is to implement the terms of the Justice Lodha Committee report and the

Supreme Court judgement.

The Board will have to adopt the MoA and Rules and Regulations as specified in the Lodha panel‘s report.

The State and member associations will need to amend their Constitutions/By-laws suitably.

The current BCCI CEO Rahul Johri was ordered to submit a report to the new committee detailing the level of compliance achieved by the BCCI and its

members in adopting the Lodha recommendations.

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INSHORT

Varishtha Pension BimaYojana

It is a part of Government‘s commitment for financial inclusion and social security.

The scheme will be implemented through Life

Insurance Corporation of India (LIC).

It is to provide social security to elderly persons aged 60 years and above by giving an assured pension at a guaranteed rate of 8% per annum for 10 years.

The differential return, i.e., the difference between the return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual

basis.

Europe's first underwater Museum

The first underwater museum in the Canary Island, Spain has officially opened.

The Museum is submerged 14 metres (46 feet) under the Atlantic Ocean.

The Sculptures in the museum are made from pH-neutral materials that will attract plant and animal life just like artificial reefs.

Artificial reefs are created using Electro Mineral Accretion (EMA). It involves applying a low voltage

current to a metallic structure to cause limestone to crystallize to which the corals can attach and grow.

Gibraltar Arc

The Gibraltar Arc is a geological region

corresponding to an arc like mountain belt surrounding the Alboran Sea, between the

Iberian Peninsula and Africa.

It consists of the Betic Ranges in southern Spain, and the Rif mountains in North Morocco.

It is as considered one of the narrowest landforms on Earth.

A team of scientists recently reconstructed for the first time what the Gibraltar Arc was like 9 million years ago.

TROPEX

Theatre Readiness Operational Exercise (TROPEX)

is an annual inter-service exercise.

The month-long exercise will have ships and aircraft of both the Western and Eastern Naval Commands, as also assets from the Indian Air Force, Indian Army and the Indian Coast Guard exercising together.

It will also strengthen inter-operability and joint operations in a complex environment.

Guyot

A Guyot, also known as a table mount, is an isolated underwater volcanic mountain with a flat top over 200 m below the surface of the sea.

The diameters of these flat summits can exceed 10 km.

Guyots are most commonly found in the Pacific Ocean.

It is formed by gradual subsidence through stages

from fringed reefed mountain, coral atoll, and finally a flat topped submerged mountain.

Rail Safety Fund

The new rail safety fund called ―Rashtriya Rail Sanraksha Kosh‖ to be utilized for track improvement, bridge rehabilitation work, improved inspection work etc.

It is a non-lapsable fund created by Ministry of Finance, since the union and railway budgets will be merged for the first time.

It receives fund from this year budget allocation and also from the Central Road Fund.

The Central Road Fund is collected by levying Cess on diesel and petrol for safety-related work.

The Rail Safety Fund was setup based on the recommendation of a committee headed by Anil Kakodkar, former chairman of Atomic Energy

Commission Chairman.