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Bottom or mirage?: On NSO estimates of GDP growth (The Hindu)

Mains Paper 3: Economy
Prelims level: GDP growth
Mains level: Highlights the key components of the GDP growth revival

Context:

• National Statistical Office (NSO) estimates of Gross Domestic Product (GDP) have pegged growth at 4.7% in the October-December 2020 period.

GDP:

• GDP is the total market value of all the finished goods and services produced within a country's borders in a specific time period.
• As a broad measure of overall domestic .....................

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Why the estimate has pegged?

• The estimate for the GDP growth of the October-December quarter has pegged as it is a demand-filled festival season.
• This estimate is a distinct slowdown from the revised year-earlier and preceding quarters’ 5.6% and 5.1% paces respectively.

What are the sectors that saw drag?

• Manufacturing contributes under a fifth to gross value added (GVA).
• But, this sector saw the biggest drag posting a 0.2% decline and extending the sector’s contraction into a second straight quarter.
• Output at electricity and allied utility services shrank 0.7%, reflecting lack of demand from becalmed factories.
• Activity in construction softened worryingly to a 0.3% expansion, prolonging the industry’s slowdown for a third consecutive quarter.

What are the sectors improved?

• Agriculture and the three largest ..............................

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Centre’s role:

• The Economic Affairs Secretary cited an improvement in output at the 8 core industries as an uptick in momentum.
• So, the Centre was quick to assert that the economy appeared to have “bottomed out”.
• The overall growth at the 8 industries that include coal, steel, cement and electricity averaged 2.2% in January 2020.
• This growth was propelled by an 8% increase in coal production.
• The survey-based India Manufacturing Purchasing Managers' Index (PMI) of IHS Markit for February 2020 pointed to an improvement in manufacturing, clearly a positive sign.

Key components of GDP reveal:

• The key components of GDP are private final consumption expenditure (PFCE) and gross fixed capital formation (GFCF).
• A closer look at the actual numbers for PFCE and GFCF across the three quarters belies hope that the economy is out of danger.
• A downward revision of data for 2018-19 have lent a statistical boost of 0.6 percentage point to the 1st and 2nd quarter GDP growth estimates.
• Disconcertingly the ......................................................

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Way forward:

• Automobile sales are still floundering.
• The consumer confidence survey by the RBI points to a fall in non-essential consumption.
• The impact of the corona virus outbreak on global demand is yet to be factored in.
• Due to all these factors, the bottom may still be some distance away.

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A blow against social justice (The Hindu)

Mains Paper 2: Polity
Prelims level: SC/ST Act
Mains level: Validity of reservations in promotions

Context:

• The recent verdict of a two-judge Supreme Court Bench on reservations and Scheduled Caste and Scheduled Tribes promotions — “that no individual could claim reservation in promotions and that the court could not issue a mandamus directing State governments to provide reservation” — has mainly raised four constitutional questions: Whether reservation in promotions is a fundamental right or not.
• Whether a court can direct the state to provide reservations. Whether quantifiable data for inadequate representation is a must for giving reservation in promotions. And whether it is the obligation of the state to give reservation.

Background:

• In the first instance, as this case involves multiple constitutional issues, it should have been dealt with by a larger constitutional bench that included a Scheduled Caste (SC) or Scheduled Tribe (ST) judge.
• So, it is the moral responsibility ........................

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Constitutional validity:

• The scope for reservation for the Backward Classes is promised in Part III of the Constitution under Fundamental Rights.
• Articles 16(4) and 16(4A) which empowers the state to provide reservation for SCs and STs are a part of the section, “Equality of opportunity in matters of public employment”.
• The right to equality is also enshrined in the Preamble of the Constitution. Many construe that the reservation is against Article 16 (Right to equality). But one should understand that the absence of equal opportunities for the Backward Classes due to historic injustice by virtue of birth entails them reservation.
• In other words, the right to equality is the basis of reservation as there is no level-playing field among castes.
• Articles 16 (2) and 16(4) are neither contradictory nor mutually exclusive in nature.
• They are complementary to each other; even Article 16(4) is not a special provision.

Whether reservation should be applied in promotions?

• In India, where there is a peculiar hierarchical arrangement of caste, it is conspicuous that SCs and STs are poorly represented in higher posts.
• Denying application of reservation in promotions has kept SCs and STs largely confined to lower cadre jobs. This is even seen in the higher judiciary.
• To providing reservation for promotions is even more justified and appropriate to attain equality.
• The question of law is not about enabling reservations in promotions or not, but this judgment destabilises the very basis of reservation; when there is no direct recruitment in higher posts, the implementation of reservation is justified at every level to get a reasonable representation.
• It is not correct to subdivide the scope of reservation at the entry level and in promotions; this delineation will only lead to confusion in the implementation of reservation.
• Now, by declaring that reservation cannot be claimed as a fundamental right is a dangerous precedent in the history of social justice.
• Can a court issue a mandamus to the state for providing reservation?
• This is inappropriate because when the court is empowered to pass orders to create extra seats every year for forward-caste students who claim to be affected by reservation, why cannot it direct the state to provide reservation in promotions?
• The Supreme Court has extraordinary powers under Article 142, which empowers the Court to pass any order necessary for doing “complete justice in any cause or matter pending before it”.

Necessity of quantifiable data to show an inadequate representation of reserved category people:

• This question has been addressed in the Constitution. Article 16(4) reads: “Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State.”
• In the Indra Sawhney vs Union of India case (Mandal Commission) the idea of quantifiable data on inadequate representation was applied for exceeding the 50% cap for reservation; within 50% where the existing quotas for SCs and STs are accommodated were not affected.
• The responsibility of collecting data on representation ..........................

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Administrative efficiency:

• This judgment has raised a new point — that the decision of the State government to provide reservation for SC/STs should not affect the efficiency of administration.
• This implies that the entry of SC/STs in the job market can reduce the quality of administration; this by itself is discriminatory.
• There is no evidence that performance in ......................

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Conclusion:

• If the government at the Centre has genuine concern for SC/STs, it can amend the Constitution using its political majority.

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A COVID-19 response that is quick off the blocks (The Hindu)

Mains Paper 2: Health
Prelims level: COVID-19
Mains level: Health infrastructure and preparedness in India

Context:

• The global spread of COVID-19, the new coronavirus disease, with confirmed cases being identified in new countries on an almost daily basis.
• As of March 2, 2020, according to the World Health Organisation, there are around 89,000 confirmed cases from 65 countries; 27 countries have reported local transmission.
• In addition to China, there are now epidemics in South Korea, Iran, Italy and Japan.
• India has reported five confirmed cases to date in Kerala, Delhi and Telangana.
• High income countries with resources such as the United States, Italy and Germany have reported local transmission clusters.

Getting the system ready:

• In India, we should anticipate the possibility of a rapid viral spread due to its uniqueness of being a respiratory pathogen with capability of community transmission.
• India needs to be ready to mount a coordinated, coherent and sustained response.
• Even if the disease does not reach epidemic status in India, it behoves us to continue to develop and maintain infrastructure to respond to new novel infectious agents capable of rapid spread.
• Preparedness allows a health system to take proactive............

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Components of a response:

• India has a fragile health system which is fragmented. It is critical to mount a coordinated and coherent response.
• This not only means involvement of both public and private sectors but also allopathic and non-allopathic medical systems, different departments such as police, fire, transportation, tourism, food supplies and other sectors.
• The response should be proportional and based on scientific principles while ensuring transparency and respecting human rights.
• The National Crisis Management Committee (NCMC), currently designed to be set up in situations of large natural calamities, should be leveraged; it should coordinate across ministries and departments.
• It should set up a dedicated web portal which includes a dashboard with key indicators, current case definitions, guidelines, risk communication materials and micro plans.
• Transparency and fact-based information are hugely important as in moments of crisis, rumours and unsubstantiated claims can rapidly spread. Utilising social media, media outlets effectively is also crucial.
• An epidemic of fear and misinformation can be damaging, stigmatising and corrosive to public interest.

Risk communication:

• A response plan should ensure that critical personnel (deemed irreplaceable) across sectors such as health, energy, defence, and food supply are identified and protected.
• Priority also needs to be given to protecting front-line health workers, intensive care unit nursing staff, doctors including specialists such as intensivists, pulmonologists, etc.
• In India, infection prevention and control practices in .............................

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Across the board:

• A simple back of the envelope calculation will show that current health-care resources in themselves will be inadequate for the response — for example, the number of ambulances needed or the number of contact tracers in the Department of Health, etc.
• As such, resources from other departments and general public, financial, in kind and personnel, need to be pooled and mobilised.
• They need to be trained on a fast track without making compromises on quality.
• Preparedness is neither the sole domain nor the prerogative of government; all institutions, entities, firms both private and public and even individuals and households should make contingency and advance preparedness plans.
• Companies need to decide on a nimble basis putting in measures such as work from home, suspension of non-essential travel, and reinforcing workplace hygiene and health information protocols, expansive leave policies for the sick or those under quarantine.
• Local authorities can make plans for school closure, home isolation and social distancing.
• The unprecedented containment measures taken by China have bought the world some lead time.

Conclusion:

• India has been fortunate to only see limited cases so far,.........................

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How to treat a child witness? (The Hindu)

Mains Paper 2: Polity
Prelims level: Juvenile Justice Act
Mains level: Indian laws address the issue of child witnesses
Context:

• The PIL has asked for guidelines to be issued to police regarding interrogation of minors in criminal proceedings in accordance with the Juvenile Justice Act and United Nations resolutions.

What are the international conventions on children in these situations?

• India has been a signatory to the Convention on the Rights of the Child since 1992, which was adopted by the General Assembly of the United Nations in 1989. “In all actions concerning children, whether undertaken by public or private social welfare institutions, courts of law, administrative authorities or legislative bodies, the best interests of the child shall be a primary consideration,” the Convention states.
• In 2009, the ‘United Nations: Justice in Matters involving Child Victims and Witnesses in Crime: Model Law’ provided a more specific set of guidelines in the context of child witnesses. These guidelines recommend that authorities ...............

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How do Indian laws address the issue of child witnesses?

• Under Section 118 of the Indian Evidence Act, 1872, there is no minimum age for a witness. Children as young as three years old have deposed before trial courts in cases of sexual abuse.
• Usually during a trial, the court, before recording the testimony of a child witness, determines his or her competency on the basis of their ability to give rational answers.
• A child is usually asked questions like their name, the school they study in, and the names of their parents to determine their competency.
• If the child is very young and does not understand the significance of taking an oath to speak the truth — which is administered to each witness before testimony — the judge or the staff explain to the child that he or she should speak the truth, thinking of whichever God they believe in.
• Trials involving children as witnesses have primarily been in cases of child sexual abuse. Other criminal cases where children are examined as witnesses have included those where a parent is the victim of violence at home, in the sole presence of the child.

Have courts dealt with how child witnesses are to be treated?

• The Delhi High Court has come up with guidelines for recording of evidence of vulnerable witnesses in criminal matters. A vulnerable witness is defined as anyone who has not completed 18 years of age.
• Focusing primarily on child witnesses giving testimonies that are recorded in court, the Delhi High Court guidelines underline the importance of the criminal justice system needing to respond proactively, sensitively, and in an age-appropriate manner when dealing with children.
• The guidelines says that, the lengthy process of navigating the formal and adversarial criminal justice system can affect the vulnerable witnesses’ psychological development.
• They allow for a facilitator for a vulnerable witness to be appointed by a court for effective communication between various stakeholders including the police.

What are the laws pertaining to the questioning of children?

Juvenile Justice Act:

• The primary legislation in the country pertaining to children is The Juvenile Justice (Care and Protection of Children) Act, 2015. The Act does not provide guidelines specifically relating to questioning or interviewing of children as witnesses.
• The Act’s very preamble, however, says that a “child-friendly approach in the adjudication and disposal of matters in the best interest of children” must be adhered to.
• This means adhering to general guidelines pertaining to the juvenile justice system — for instance, for the police to not be in their uniform while dealing with children.
• It also requires that interviews of children be done by specialised units of police who are trained to sensitively deal with them.

How it will work?

• The Act prescribes that a Special Juvenile Police Unit is to be constituted by the state government in each district and city, headed by a police officer not below the rank of Deputy Superintendent of Police, and including two social workers, at least one of whom must be a woman, and both of whom should be experienced in the field of child welfare.
• Their work includes coordinating with the police towards sensitive treatment of children.
• The Act also provides for a Child Welfare Committee in every district to take cognisance of any violations by the authorities in their handling of children.

POCSO Act:

• The Protection of Children from Sexual Offences (POCSO) Act, 2012 has specific guidelines regarding interviewing children as witnesses.
• While it pertains to child sexual abuse victims, ..............

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(The Gist of PIB) IFFI

IFFI

• The Golden Jubilee edition of the International Film Festival of India (IFFI) began in Panaji, Goa. Actors Amitabh Bachchan and Rajinikanth inaugurated the IFFI.

Key highlights:

• The International Film Festival of India (IFFI), founded in 1952, is one of the most significant film festivals in Asia.
• It is Held annually, currently in the state of Goa. Since 2004, starting from the 35th edition, the International Film Festival of India, became globally competitive, and moved to its permanent venue Goa, and is being held during the months of November and December of each year.
• The festival is conducted jointly by the Ministry of Information and Broadcasting, Directorate of Film Festivals and the Government of Goa.
• During the festival, ICFT-UNESCO Gandhi Medal, instituted by the International Council for Film & Television, Paris and UNESCO will be given to a film that portrays the Gandhian values of peace and harmony.
• At the end of the festival, the Golden peacock award will be awarded to the best film.• Actor Rajnikanth received the ICON of the Golden Jubilee Award at IFFI 2019. IFFI Lifetime Achievement Award, the festival’s highest honour, was presented to French actor Isabelle Huppert.

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(The Gist of PIB) Macro-economic Framework Statement

Macro-economic Framework Statement

• Macro-economic Framework Statement (MFS) 2020-21 predicts rebound in GDP growth from first quarter of 2020-21.

Key highlights:

• The Macro-economic Framework Statement (MFS) 2020-21 describes the return path of fiscal consolidation without compromising the needs of investment out of public funds.
• The government has revised the fiscal roadmap in the near term and limited the fiscal deficit to 3.8% of the GDP in RE 2019-20 and 3.5% in 2020-21.
• The consumer price inflation has remained within the targeted limits set by the Monetary Policy Committee (MPC) of the RBI and the government is expected to return to the glide path of fiscal consolidation in the medium term.
• The Finance Minister proposed a 21% increase in capital expenditure for the FY 2020-21. Level of expenditure has been kept at Rs. 30.42 lakh crores in BE 2020-21, as compared to Rs. 26.98 lakh crores in RE 2019-20.
• To improve the physical quality of life, the Government has also announced the National Infrastructure Pipeline (NIP) of projects worth Rs. 102 lakh crores, which would commence in phases from 2020-21 to 2024-25.
• Global economic growth is expected to pick up in 2020 which could also support India’s growth. In view of a positive outlook on economic rebound, the MFS predicts the nominal growth of the economy at 10% in FY 2020-21.

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(The Gist of PIB) Cabinet approves the Patent Prosecution Highway programme

Cabinet approves the Patent Prosecution Highway programme

• The Union Cabinet has approved the proposal for adoption of Patent Prosecution Highway (PPH) programme by the Indian Patent Office (IPO) under the Controller General of Patents, Designs & TradeMarks, India (CGPDTM) with patent offices of various other interest countries or regions.

Key highlights:

• The Patent Prosecution Highway (PPH) is a set of initiatives for providing accelerated patent prosecution procedures by sharing information between some patent offices.
• The said programme will initially commence between Japan Patent Office (JPO) and Indian Patent Office on pilot basis for a period of three years only.
• Under this Pilot programme, Indian Patent Office may receive patent applications in certain specified technical fields only, namely, Electrical, Electronics, Computer Science, Textiles, Automobiles and Metallurgy while JPO may receive applications in all fields of technology.
• PPH programme would lead to the following benefits for the Indian IP office:
• Reduction in time to dispose of patent applications.
• Reduction in pendency of patent applications.
• Improvement in quality of search and examination of patent applications.
• The ambition of the programme may be extended in future, as decided by the Commerce & Industry Minister. The patent offices will frame their own guidelines for implementation of the programme.

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(The Gist of PIB) NIRVIK Scheme

NIRVIK Scheme

• The Finance Minister announced the NIRVIK scheme in the Union Budget 2020-21 in Parliament.

Background:

• It will provide high insurance cover for exporters and reduce premium for small exporters.
• To achieve higher export credit disbursement, a new scheme NIRVIK is being launched which provides for high insurance cover, reduction in premium for small exporters and simplified procedures for claim, settlement, said the Finance Minister while presenting Budget 2020-21.

Key highlights:

• Under the Scheme, also called the Export Credit Insurance Scheme (ECIS), the insurance guarantee could cover up to 90% of the principal and interest.
• The Export Credit Guarantee Corporation (ECGC) cover will also provide additional comfort to banks as the credit rating of the borrower is enhanced to AA rated account.Enhanced cover will ensure that Foreign and Rupee export credit interest rates will be below 4%and 8% respectively for exporters.
• Under ECIS, insurance cover percentage has also been enhanced to 90% from the present average of 60% for both principal and interest.
• The Export Credit Corporation currently provides credit guarantee of up to 60 percent loss.
• The development assumes significance as exporters have raised concerns over availability of credit.
• India’s exports contracted for a fifth month in a row by 1.8 percent in December 2019 to USD 27.36 billion and imports declined 8.9 percent to USD 357.39 billion, leaving a trade deficit of USD 118.10 billion.

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(The Gist of PIB) Portal Santusht

Portal Santusht

• ‘Santusht’ – Implementation Monitoring Cell (IMC) has been constituted in the Office of Minister of State (Independent Charge) for Labour and Employment in January 2020.

Key highlights:

• The objective of ‘Santusht’ is to promote transparency, accountability, effective delivery of public services and implementation of policies, schemes of Ministry of Labour and Employment at grassroot level through constant monitoring.
• For public grievances, Centralized Public Grievance Redress and Monitoring System (CPGRAM) portal is already functional.
• Besides, written grievances as received from stakeholders are also disposed of by the Ministry. Further, online portal under ‘Santusht’ for public grievances has not been started so far.

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(The Gist of PIB) Sophisticated Analytical and Technical Help Institutes

Sophisticated Analytical and Technical Help Institutes

• To address the need for building shared, professionally managed and strong Science and Technology infrastructure in the country which is readily accessible to academia, start-ups, manufacturing, industry and R and D labs, the Department of Science and Technology has launched a unique scheme called “Sophisticated Analytical and Technical Help Institutes (SATHI)”.

Key highlights:

• These Centres are expected to house major analytical instruments to provide common services of high-end analytical testing, thus avoiding duplication and reduced dependency on foreign sources.
• These would be operated with a transparent, open access policy.
• DST has already set up three such centres in the country, one each at IIT Kharagpur, IIT Delhi and BHU at a total cost of Rs 375 Cores.It is planned to set up five SATHI Centres every year for the next four years.
• SATHI will address the problems of accessibility, maintenance, redundancy and duplication of expensive equipment in our Institutions, while reaching out to the less endowed organizations in need, e.g., industry, MSMEs, startups and State Universities.
• This will also foster a strong culture of collaboration between institutions and across disciplines to take advantage of developments, innovations and expertise in diverse areas.

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New forces in orbit (Indian Express)

Mains Paper 3: Science and Tech
Prelims level: SpaceX
Mains level: Privatisation in space sector and its aftermath challenges

Context:

• Space programmes have for long been viewed as either strategic or symbols of national prestige for big countries that are prepared to invest significant resources in the pursuit of a credible presence in outer space.
• Two small countries, the United Arab Emirates in the Gulf and the Grand Duchy of Luxembourg in Europe have begun to demonstrate that the outer space need not be the playing ground for big powers alone.

Set them in outer space:

• The interesting path these two countries have set for themselves in outer space is a reminder that Delhi needs to adapt to the rapidly changing dynamic in outer space.
• That size is not a constraint is reflected in the UAE’s plan to launch its Mars mission, “Hope”, later this year in partne rship with a range of organisations across the world — including three universities in the US.
• Japan is scheduled to launch the UAE Mars probe this year. India’s own ISRO is also working with the UAE on its Mars mission.
• Last year, the first Emirati Astronaut, Hazza al-Mansouri spent more than a week in the US-Russian space station.

Strategies adopted by UAE:

• While spectacular projects like sending an astronaut into space or launching a Mars probe generate much flag-waving at home and turn heads in the region and beyond, there is something else at the heart of the UAE’s space strategy.
• It is about cornering a slice of the rapidly growing commercial space industry — part of a major effort to diversify the UAE economy away from its reliance on hydrocarbons.

Strategies adopted by Luxembourg:

• Luxembourg has a similar strategy. It too entered the space sector only in the middle of the last decade. It is also driven by the need for economic diversification.
• Over the years, Luxembourg moved away from its past reliance on the steel industry to become a centre of European banking and finance.
• It is now looking at commercial space as a major opportunity. Luxembourg has taken a number of regulatory steps to create a vibrant ecosystem for space companies ranging from satellite operations to future extraction of resources from asteroids and other space objects.
• At the moment, the space sector accounts for nearly 2 per cent of Luxembourg’s GDP.
• There are more than 50 companies and two public research organisations that are driving the expansion of space sector in Luxembourg.

Limitation of these countries:

• UAE and Luxembourg do have a reputation for leveraging new ideas to transcend the limitations of their size in the world.
• But their space adventure was not possible without the structural changes that are reshaping the global space activity.

Aiming the space sector by private companies:

• SpaceX plans to launch hundreds of satellites into the low-earth orbit to provide internet services.
• Amazon has plans to build a network of more than 3,000 satellites in the low-earth orbit. Musk and Amazon’s Jeff Bezos have plans to develop space tourism and build human settlements on the Moon and on Mars.
• Last year, a private company in Israel sent a lunar lander to the Moon. Although the lander crashed, much like India’s Vikram, the private sector has begun to do things that were once the monopoly of national agencies.

India’s position:

• India, however, is quite some distance away from adapting to the unfolding changes in the global space business.
• In its early years, India’s space programme that was constrained by lack of resources found innovative ways of getting ahead in space.
• Although the ISRO encourages private sector participation in the national space programme, its model is still very 20th century — in terms of governmental domination.

Way ahead:

• As it looks at the growing role of the private sector and the effort by nations like the UAE and Luxembourg, Delhi needs to move quickly towards a new model for India’s space activity.
• It needs a regulatory environment that encourages a more dynamic role for the private sector and promotes innovation.
• It will be a pity if India squanders the many advantages of its early start in space by delaying the much-needed reform and reorganisation of its space sector.

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Water crisis looms large in Himalayan regions, finds study (The Hindu)

Mains Paper 1: Geography
Prelims level: Hindu Kush
Mains level: Geographical features and their location- changes in critical geographical features (including water-bodies).

Context:

• Eight towns in the Himalayan region of Bangladesh, Nepal, India and Pakistan were nearly 20%-70% deficient in their water supply, says a survey that appears in the latest edition of the journal Water Policy.
• The researchers surveyed 13 towns across these countries to understand the challenges of the urban denizens of these regions.
• Unplanned urbanization and climate change are the key factors responsible for the state of affairs, the study underlines.

Need to be taken short-term strategies:

• The places surveyed are extremely dependent on springs (ranging between 50% and 100%) for their water, and three-fourths were in urban areas.
• Under current trends, the demand-supply gap may double by 2050, the researchers warn.
• Communities were coping through short-term strategies such as groundwater extraction, which is proving to be unsustainable. A holistic water management approach that includes springshed management and planned adaptation is therefore paramount.
• Across the region, the encroachment and degradation of natural water bodies (springs, ponds, lakes, canals, and rivers) and the growing disappearance of traditional water systems (stone spouts, wells, and local water tanks) are evident.

Way ahead:

• Although only 3% of the total Hindu Kush Himalayan population lives in larger cities and 8% in smaller towns, projections show that over 50% of the population will be living in cities by 2050, placing “tremendous stress” on water availability.
• Rural areas have typically garnered much of the attention in terms of development and issues surrounding urban environments have been “sidelined”.

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Pushing the wrong energy buttons (The Hindu)

Mains Paper 3: Science and Tech
Prelims level: Nuclear reactor
Mains level: Safety concerns associated with Nuclear reactor

Context:

• For more than a decade, no major meeting between an Indian Prime Minister and a U.S. President has passed without a ritual reference to India’s promise made in 2008 to purchase American nuclear reactors.

Red flags in the U.S. deal:

• Because of serious concerns about cost and safety, the two organisations should have been told to abandon, not finalise, the proposal.
• It has been clear for years that electricity from American reactors would be more expensive than competing sources of energy.
• Westinghouse has insisted on a prior assurance that India would not hold it responsible for the consequences of a nuclear disaster, which is effectively an admission that it is unable to guarantee the safety of its reactors.
• The main beneficiaries from India’s import of reactors would be Westinghouse and India’s atomic energy establishment that is struggling to retain its relevance given the rapid growth of renewable.

What renewables can offer:

• Analysts estimate that each of the two AP1000 units being constructed in the U.S. state of Georgia may cost about $13.8 billion. At these rates, the six reactors being offered to India by Westinghouse would cost almost ₹6 lakh crore.
• If India purchases these reactors, the economic burden will fall upon consumers and taxpayers.
• In 2013, we estimated that even after reducing these prices by 30%, to account for lower construction costs in India, the first year tariff for electricity would be about ₹25 per unit.
• On the other hand, recent solar energy bids in India are around ₹3 per unit. Lazard, the Wall Street firm, estimates that wind and solar energy costs have declined by around 70% to 90% in just the last 10 years and may decline further in the future.

How safe?

• Nuclear power can also impose long-term costs.
• Large areas continue to be contaminated with radioactive materials from the 1986 Chernobyl accident and thousands of square kilometres remain closed off for human inhabitation.
• Nearly a decade after the 2011 disaster, the Fukushima prefecture retains radioactive hotspots and the cost of clean-up has been variously estimated to range from $200-billion to over $600-billion.

Way ahead:

• The idea of importing nuclear reactors is a “zombie idea” that, from a rational viewpoint, should have been dead long ago.
• An earlier plan to install AP1000s in Mithi Virdi, Gujarat was cancelled because of strong local opposition.
• In 2018, Gujarat Chief Minister Vijay Rupani declared that the reactors “will never come up” in Gujarat.
• The Prime Minister should take a cue from his own State and make a similar announcement for the rest of the country.

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Sanctity of bank guarantees is sacrosanct (The Hindu)

Mains Paper 3: Economy
Prelims level: Terms of bank guarantees
Mains level: Violations of the terms of bank guarantee

Context:

• It is reported that the Calcutta High Court had asked the Reserve Bank of India to consider ‘appropriate steps’ against Bank of Baroda, including cancelling its banking licence, for delaying to honour a bank guarantee.

Background:

• The case pertains to a bank guarantee issued to Indian Oil Corporation (IOC) at the request of Simplex Projects Ltd. IOC invoked the bank guarantee.
• It is also reported that Bank of Baroda, after seeking legal advice, decided to exercise its rights available under the law preferring to challenge the aforesaid orders passed by the Calcutta High Court before the Supreme Court of India.
• As full details are not available in public domain, one cannot ascertain whether the bank, while not honouring its commitment under the guarantee, envisages any fraudulent element.

Terms of bank guarantees:

• As per Section 126 of Indian Contract Act, contract of guarantee is a contract to perform the promise or discharge the liability of a third person in case of his default.
• When a bank issues a guarantee at the request of its customer in favour of third parties, the bank is liable to discharge its obligation as per the terms of the guarantee issued.
• Apart from stipulations under Contract Act, the RBI’s instruction will be binding on the bank as the RBI is the banking regulator.

RBI’s direction:

• The guarantee should be for a definite period and definite amount. Maximum period can be 10 years.
• The proposal should be analysed like any other fund-based financing, though the limit is a non-fund based one.
• The guarantee should be issued only for customers and after taking sufficient margin and security.
• Most importantly the guarantee should be honoured whenever invoked without any delay.
• Whenever any claim on guarantee is received, the bank has to just see whether the claim is in order, which means that is it actually invoked by the beneficiary only and is it within the time stipulated, and pay.
• There cannot be any delay on this. Only when there is a suspicion of fraud the bank can become cautious. Or there can be some court injunction directing the bank to withhold. On all other occasions the payment under the invoked guarantee should be forthwith.
• The RBI had also informed that non-compliance of the instructions in regard to honouring commitments under invoked guarantees will be viewed by the RBI seriously and it will be constrained to take deterrent action against the banks.

Supreme Court’s direction:

• In the UP Co-op Federation Private Ltd versus Singh Consultants and Engineers Private Ltd (1988 IC SSC 174) case, the Supreme Court said: “We are, therefore, of the opinion that the correct position of law is that commitment of banks must be honoured free from interference by the courts and it is only in exceptional cases, that is, to say, in case of fraud or any case where irretrievable injustice would be done if bank guarantee is allowed to be encashed, the court should interfere.”

What did Bank of Baroda do?

• The order read, “It is submitted on behalf of IOCL that notwithstanding the bank having no right to stall immediate payment upon the invocation of an unconditional bank guarantee, the bank in this case sought some time.” IOCL asserted that the bank had no right to hamper immediate payment of the unconditional bank guarantee, let alone seek extra time.
• IOCL has also claimed that Bank of Baroda must have informed Simplex about the invocation and the company immediately instituted proceedings under Section 9 of the Arbitration and Conciliation Act, 1996 before the Delhi High Court, by virtue of the arbitration agreement contained in the contract between IOCL and Simplex.
• The order also read, “IOCL submits that despite Simplex failing to obtain any order in such proceedings and the Delhi High Court observing that the bank guarantee was unconditional and payment thereunder could not be avoided once the guarantee was invoked, an appeal was preferred which was withdrawn by or about June 1, 2018,”
• Bank of Baroda still refused to release the payment in terms of the unconditional guarantee on the grounds that the money may not have been made available by Simplex to the bank.
• On 24 June, 2019 through another order the court had directed the bank to pay immediately, in which the regulator had not been required to look into the conduct of the Bank of Baroda.

Way forward:

• Therefore, in the current appeal by IOCL was filed in the form of a cross objection, to consider the conduct of the bank and seeking directions to the RBI to take steps against the bank, since it has behaved in an inappropriate manner despite being a nationalized bank.

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Justice not done (Indian Express)

Mains Paper 2: Polity
Prelims level: Article 21
Mains level: Role of Judiciary to establishment the rule of law

Context:

• The Delhi High Court’s handling of the petition seeking FIRs against the BJP leaders for their alleged hate speeches on February 27 amounts to abdication of constitutional duty.
• The time has come for the nation to be reminded that judges of the Supreme Court and high courts are constitutionally obliged to “make and subscribe… an oath or affirmation according to the form set out for the purpose in the Third Schedule.”

Rule of constitution:

• The oath inter-alia requires the person to solemnly affirm, “that I will bear true faith and allegiance to the Constitution of India… that I will duly and faithfully act to the best of my ability, knowledge and judgment, perform duties of my office without fear or favour, without affection or ill-will and that I will uphold the Constitution and the laws.”
• Article 21, which every judge is bound to enforce provides, “No person shall be deprived of his life or personal liberty except according to procedure established by law.”

Centre’s argument:

• The Bench presided by Chief Justice D N Patel and Justice Hari Shankar acceded to the Centre’s argument that “the time was not conducive to file FIRs related to the alleged hate speeches as the priority right now is to ensure peace” and adjourned the hearing to as late as April 13.
• The Court apparently failed to consider that the loss of lives of more than 40 people, serious injuries to over 200 and damage to hundreds of houses and business establishments had taken place under the watch of the Delhi Police, directly under the control and supervision of the same Central government.
• Providing the government time to file FIRs “at an appropriate time” is deeply disturbing.
• The Court being the guardian of the Constitution and parens patriae of citizens of Delhi was bound to have acted with alacrity.
• Enforcement of law does not wait for “conducive” timings and must be set in motion forthwith by the authorities failing which the high court can and must set that machinery in action.

Conclusion:

• One cannot help feeling that the court has let the citizens down.
• The Centre represented by the country’s second highest law officer should also have been more circumspect. The proceedings have left a bitter taste in the minds of law abiding citizens.
• One hopes that the judiciary will wake up and protect the citizens at all costs in times of serious breakdown of constitutional machinery — and not leave them to fend for themselves.

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(The Gist of Science Reporter) VISTA SEAL: A Fibrin Sealant

 [FEBRUARY-2020]

VISTA SEAL: A Fibrin Sealant

• Ethicon has released a surgical fibrin Sealant “VISTA SEAL” that helps in controlling unexpected bleeding in surgical patients.
• It facilitates rapid hemostasis by means of its chemical composition and delivery mechanism.
• It can be used during open procedures and has two optional extension tips.
• Due to these tips, it can also be applied to bleeds occurring in minimally invasive surgical procedures.
• It can be kept at a wide temperature range and delivered faster than the existing options.

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(The Gist of Science Reporter) CSIR-NPL Develops Advanced Security Ink

 [FEBRUARY-2020]

CSIR-NPL Develops Advanced Security Ink

• Counterfeiting of the major issues that has grown into a global threat, is one including the duplication of currency notes, passports, etc. causing major losses in the economy of a nation.
• Special or security inks are used in the printing of currency notes, passports, etc. to ensure security and prevent forgery, counterfeiting or tampering.
• Security inks play a significant role in detecting counterfeiting attempts by illegal printing.
• Normally we see that the cashier in the bank checks the currency notes under a special kind of light bulb before accepting the notes to be submitted in the bank.
• The currency notes are generally printed with special inks which glow with different colours under the ultraviolet illumination helping detect the fake currency.
• However, over time scamsters have started copying the currency notes.
• To prevent such instances, scientists at the CSIR-National Physical Laboratory (CSIR-NPL), New Delhi, have invented a unique security ink with advanced features which emits two different colours under the exposure of ultraviolet light. The advanced security ink may help in combating the issue of counterfeiting of notes, passports, pharmaceuticals, etc.
• According to the study published in the Journal of Materials Chemistry C, the novel strategy is based on a combination of an unexplored concept of fluorescence and phosphorescence phenomenon.
• This would be the first report of a security ink which emits at two very different wavelengths under single wavelength UV exposure.” The ink glows red (611 nm) under UV exposure (254 nm) and green (532 nm) when UV exposure is off. The red emission is due to fluorescence and green emission is due to phosphorescence.
• Unlike the other materials, the engineering elegance of the ink is that the excitation spectrum of one colour does not cover the spectrum of the other. The green pigment does not quench the red pigment under UV exposure.
• In the synthesis process, sodium yttrium fluoride was doped with europium, a rare earth element for preparing the red pigment; and for green pigment europium and dysprosium were doped in aluminium strontium oxide.
• It was prepared via a hydrothermal method and subsequently annealed at 400 °C. Annealing is important for proper mixing of the red and green pigments otherwise it would separate during the printing of the ink.
• For commercial application, the feasibility of the advanced security ink was also tested wherein printed patterns were exposed to different atmospheric conditions like hot, cold, and humid for six months.
• A novel strategy has been devised to develop a single excitable dual emissive luminescent pigment for the formulation of unclonable security ink.
• The new advanced security features of the ink have been demonstrated successfully and make it highly suitable for the printing of the valuable products, viz. currency, passports, pharmaceuticals, etc. for their protection against duplicity.
• The luminescence printing based methods are considered as one of the best approaches to combat counterfeiting due to the low cost of production at a commercial scale, being eco-friendly and hard to counterfeit.
• The NPL scientists mention that they have synthesised the single excitable dual emissive luminescent pigment in a single batch which can be further scaled up as desired by any industry. The advanced security features offer a new approach to prevent counterfeiting of currency notes, pharmaceuticals, passports, important documents, etc.

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(The Gist of PIB) APEDA-CFTRI Sign MoU for Liaison Office

APEDA-CFTRI Sign MoU for Liaison Office

• A memorandum of understanding (MoU) was signed by CSIR-CFTRI with APEDA to set up a Liaison Office in Guwahati, Assam to provide technical support to the food industries in the NorthEast region.

Key highlights:

• It will benefit the farmers, producers and entrepreneurs.
• APEDA has undertaken many promotional activities recently to bring the North East states of India on to the export map.
• In 2019 five international buyer seller meets were organised by APEDA in Assam, Manipur, Tripura, Arunachal Pradesh and Sikkim to showcase the potential of agriculture/ horticulture and processed food products including organic produce to open the export window from the North Eastern States.
• Capacity building is another such area where APEDA is keenly focusing to hand-hold the new exporters from the North East region.
• APEDA has also organised specific outreach programmes and training on export process for the stakeholders from the North East region.
• It has been in the forefront for generating quality human resources for the development of the food industry.

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(The Gist of PIB) Classical Swine Fever

Classical Swine Fever

• Department of Agricultural Research and Education (DARE) and Director General, Indian Council of Agricultural Research (ICAR and Secretary, Department of Animal Husbandry and Dairying (DAHD), released the Live attenuated Classical Swine Fever Vaccine (IVRI-CSF-BS) Technology developed by ICAR -Indian Veterinary Research Institute (IVRI), Izatnagar.

About:

• CSF is one of the most important diseases of pigs causing high mortality with annual loss of approx. Rs.4.299 billion.
• A lapinized CSF vaccine (Weybridge strain, UK) has been used in India since 1964 for controlling the disease.The vaccine is produced by sacrificing large numbers of rabbits for each batch.
• The country’s total requirements is 22 million doses per year and hardly 1.2 million doses are produced per year by the lapinized vaccine, as only 50 doses are produced from a single rabbit spleen.
• In order to do away sacrificing rabbits and increase productivity, IVRI had earlier developed a cell culture CSF vaccine by adapting the lapinized vaccine virus in cell culture.

Key highlights:

• The new vaccine is ready for release and commercial production will be completed in less than a year.
• The vaccine would be the best choice for use in the CSF Control Programme (CSF-CP) already launched by DAHD (CSF-CP).
• The new vaccine will be part of the Government’s One Health Initiative.
• The vaccine is safe, potent, does not revert to virulence and provides protective immunity from day 14 of the vaccination till 24 months studied so far.
• The vaccine has been tested on around 500 pigs at multiple locations.

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(The Gist of PIB) International Seafood Show 2020

International Seafood Show 2020

• The Marine Products Export Development Authority (MPEDA), under Ministry of Commerce and Industry, Government of India, in association with the Seafood Exporters Association of India (SEAI), is organizing the 22nd edition of India International Seafood Show (IISS) 2020 in Kochi from 7-9 February 2020.

About:

• The theme of this year’s seafood show is “Blue Revolution- Beyond Production to Value Addition”.
• Over 200 exhibitors, 350 stalls and more than 5000 delegates, including foreign delegates, are expected to attend the three-day event at Kochi.
• The delegates include seafood processors, buyers and stakeholders, from other related sectors, representing firms in India and abroad.
• Buyer delegations from countries focused on mutual tie-ups in the sector of seafood processing and value addition will also be participating in IISS 2020.

Key highlights:

• IISS 2020 will highlight the technological advances and sustainable practices followed in the seafood processing sector in India.
• Indian seafood processors have to make their mark in the sustainable league with the cooperation from the fishing and farming sectors.
• Further, the processing industry always looks to upgrade its technological backup for value addition.
• This will result in an increase in the percentage of exports of value added products in this decade from the current level of 6 % in the total exports.

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