Daily Prelims Notes 6 April 2022
- April 6, 2022
- Posted by: OptimizeIAS Team
- Category: DPN
Daily Prelims Notes
6 April 2022
Table Of Contents
- Great Indian Bustard
- Nature Positive Farming
- Dam Safety
- The recombinant variants of SARS-CoV-2
- The Indian Antarctic Bill
- Fertilizer subsidy
- Global Sovereign Bonds
- Public Issue
- Bill on Delhi municipal corporations
- Bill in Lok Sabha to ban Weapon of Mass Destruction funding
- Haryana Assembly passes resolution on Chandigarh
Subject: Environment
Section: Biodiversity
Context- Supreme Court seeks update on power cables at Great Indian Bustard’s habitat. Electrocution from overhead high-tension wires contributed to the birds’ falling population.
Concept-
- Wildlife conservationist MK Ranjitsinh Jhala filed a petition in the Supreme Court of India in 2019 for power companies to lay underground wiring in the sacred groves of Jaisalmer. The petition was to protect GIBs and lesser floricans from extinction.
- SC had ordered the power companies in the states of Rajasthan and Gujarat April 19, 2021 to make the high-tension power lines underground so that the large birds do not get caught in the web.
- A three-member high-level committee was also formed to look into the feasibility of the work.
About Great Indian Bustard or Godavan:
- It is the State bird of Rajasthan and is considered India’s most critically endangered bird.
- It is considered the flagship grassland species, representing the health of the grassland ecology.
- Its population is confined mostly to Rajasthan and Gujarat. Small populations occur in Maharashtra, Karnataka and Andhra Pradesh.
- The bird is under constant threats due to collision/electrocution with power transmission lines, hunting (still prevalent in Pakistan), habitat loss and alteration as a result of widespread agricultural expansion, etc.
- Protection Status:
- IUCN Red List: Critically Endangered
- CITES: Appendix 1
- Convention on Migratory Species (CMS): Appendix I
- Wildlife (Protection) Act, 1972: Schedule 1
- Around 122 of the total 150 GIBs found in the country were in Jaisalmer district of Rajasthan, according to a 2018 GIB count.
- Since then, the population has declined and now less than 100 GIBs remain in the wild.
- The birds weigh 14-15 kilograms each and can reach a height of up to 4 feet, making them too heavy to change their course mid-way when they wander too close to power lines.
Subject: Environment
Section: Conservation
Context- The pandemic showed that human interventions in natural processes can have disastrous consequences; we should now scale up natural-positive food systems that would simultaneously promote crop, soil and human health.
Concept-
- In the mid-1960s, the new strategy of intensive application of modern agricultural practices in relatively resource-rich regions fundamentally transformed the farming sector in India.
- In the initial years of the Green Revolution (GR), India’s food production grew at an unprecedented scale and farm incomes also improved substantially.
- High yielding varieties of seeds, chemical fertilisers, assured irrigation and pesticides were key components of this high-input technology.
- However, the rise in food production has come at a price in the form of
- groundwater depletion,
- land degradation,
- yield stagnation,
- loss of agri-biodiversity and
- the long-term impact on farmers’ and consumers’ health.
- The Budget 2022-23 and Prime Minister Narendra Modi’s recent call to take agriculture out of chemical laboratories and connect it with nature’s laboratory reaffirms this realisation.
Bhartiya PrakritikKrishiPadhati (BPKP):
- BPKP was introduced as a sub scheme of ParamparagatKrishiVikas Yojana (PKVY) since 2020-21 for the promotion of traditional indigenous practices.
- The scheme mainly emphasizes on exclusion of all synthetic chemical inputs and promotes on-farm biomass recycling with major stress on biomass mulching; use of cow dung-urine formulations; plant-based preparations and time to time working of soil for aeration.
- Under BPKP, financial assistance of Rs 12200/ha for 3 years is provided for cluster formation, capacity building and continuous handholding by trained personnel, certification and residue analysis.
- In the 2022-23 Budget both the BPKP and PKVY have been subsumed un- der Rashtriya KrishiVikas Yojana (RKVY).
Natural Farming:
- Natural farming also referred to as “the Fukuoka Method“, “the natural way of farming” or “do-nothing farming”, is an ecological farming approach established by Masanobu Fukuoka (1913–2008).
- It is based on 5 principles:
- No tillage
- No fertilizer
- No pesticides or herbicides
- No weeding
- No pruning
- In India, Natural farming is promoted as Bhartiya PrakritikKrishiPaddhati Programme (BPKP) under ParamparagatKrishiVikas Yojana (PKVY).
The way forward
- First, we have to identify and establish cultivation practices that are crop, soil and region-specific.
- Second, more support is needed for post-harvest management in areas such as transportation, storage and value addition.
- Third, the incentive system available to crops has to change. The present system of minimum support price-based public procurement is concentrated in a few areas and crops. Diversification of the procurement basket is important to ensure they get a fair price for their produce.
- Fourth, provision of financial services like credit and insurance at affordable price is vital for a vibrant and efficient farming system.
- Crop insurance, as a risk mitigation mechanism, can protect the small and marginal farmers from climate variations.
- Fifth, farmer collectives and farmer producer organisations (FPO) need to play a big role in the transition to a sustainable and pesticide-free farming system.
- Finally, there is need for support to encourage entry of many MSMEs in the pesticide-free food chains and to raise awareness among the consumers on a large scale, to raise demand and develop territorial markets.
*** For further reading refer to https://optimizeias.com/chemical-free-natural-farming/
Subject: Geography
Section: Hydrology
Context- The Centre on Tuesday suggested to the Supreme Court to let the Mullaperiyar dam supervisory committee continue for a year, by which time the National Dam Safety Authority under the new Dam Safety Act will become fully functional.
Concept-
Background:
- A petition was filed by a resident of Idukki district of Kerala to lower the water level of Mullaperiyar dam to about 130 feet saying there is a danger of earthquakes and floods in the area as monsoon progresses in the State.
- Kerala said the water level should not go above 139 feet, the same as what the court had ordered on August 24, 2018, when the State was hit by floods. It is because the lives of 50 lakh people would be in danger if the water level in the dam is raised.
- However, Tamil Nadu objected to this decision citing the Supreme Court judgments of 2006 and 2014, which fixed the maximum water level at 142 feet.
- The SC constituted a permanent Supervisory Committee in 2014 to oversee all the issues concerning Mullaperiyar dam. The dam is a source of friction between Tamil Nadu and Kerala.
Dam Safety Act, 2021:
- “An Act to provide for the surveillance, inspection, operation, and maintenance of the specified dam for prevention of dam failure related disasters and to provide for an institutional mechanism to ensure their safe functioning and for matters connected therewith or incidental thereto.”
- Features of the act:
- The National Committee on Dam Safety will be constituted and will be chaired by the chairperson, Central Water Commission.
- Functions of the committee will include formulating policies and regulations regarding dam safety standards and prevention of dam failures, analyzing the causes of major dam failures, and suggesting changes in dam safety practices.
- National Dam Safety Authority (NDSA) to be headed by an officer, not below the rank of an Additional Secretary, to be appointed by the central government.
- The main task of this authority includes implementing the policies formulated by the National Committee on Dam Safety, resolving issues between State Dam Safety Organisations (SDSOs), or between an SDSO and any dam owner in that state, specifying regulations for inspection and investigation of dams.
- The NDSA will also provide accreditation to agencies working on construction, design, and alteration of dams.
- The act also envisages constituting a State Dam Safety Organisation (SDSO) whose functions will be to keep perpetual surveillance, inspection, monitoring the operation and maintenance of dams, keeping a database of all dams, and recommending safety measures to owners of dams.
- The owners of the specified dams are required to provide
- A dam safety unit in each dam to inspect the dams before and after the monsoon session, and during and after any calamity or sign of distress.
- An emergency action plan, and carry out risk assessment studies for each dam at specified regular intervals.
- A comprehensive dam safety evaluation of each dam, at regular intervals, through a panel of experts.
Mullaperiyar Dam:
- The Mullaperiyar, a 123-year-old dam, is located on the confluence of the Mullayar and Periyar rivers in Kerala’s Idukki district.
- The dam stands at the height of 53.66 metres and 365.85 metres in length.
- It is operated and maintained by the Tamil Nadu for meeting the drinking water and irrigation requirements of five of its southern districts.
- According to a 999-year lease agreement made during the British rule the operational rights were handed over to Tamil Nadu.
- The dam intends to divert the waters of the west-flowing river Periyar eastward to the arid rain shadow regions of the Tamil Nadu.
Periyar River:
- The Periyar River is the longest river in the state of Kerala with a length of 244 km.
- It is also known as ‘Lifeline of Kerala’ as it is one of the few perennial rivers in the state.
- A perennial river is a channel that has continuous flow in parts of its stream bed all year round.
- Periyar River originates from Sivagiri hills of Western Ghats and flows through the Periyar National Park.
- The main tributaries of Periyar are Muthirapuzha, Mullayar, Cheruthoni, Perinjankutti.
4. The recombinant variants of SARS-CoV-2
Subject: Science & Tech
Section: Biotechnology
Context- The World Health Organization (WHO) has flagged the emergence of a new variant of the SARS-CoV-2 virus — the XE recombinant.
Concept-
How are variants created?
- SARS-CoV-2, the virus that causes COVID-19, is an RNA virus which evolves by accumulating genetic errors in its genome.
- These errors are produced when the virus infects a person and makes copies of itself inside the host’s cells.
- These errors (otherwise called mutations) are therefore a by-product of replication of SARS-CoV-2 inside the cell and may be carried forward as the virus continues to infect people.
What is Mutation?
- Mutation is an alteration in the genetic material (the genome) of a cell of a living organism or of a virus that is more or less permanent and that can be transmitted to the cell’s or the virus’s descendants.
- The genomes of organisms are all composed of Deoxyribonucleic Acid (DNA), whereas viral genomes can be of DNA or Ribo Nucleic Acid (RNA).
- Such mutations that provide increased fitness to the virus increase in numbers and become the dominant strain or variant.
Recombinant Variants:
- When a person is simultaneously infected with two different SARS-CoV-2 variants or strains or sub-lineages, chunks of genetic material from one variant can get mixed with the other. This is called recombination.
- For example, recombination of Delta and Omicron variants.
Are recombinant variants more deadly?
- Although recombination has been detected in SARS-CoV-2, it has not yet impacted public health in a unique way.
Subject: Environment
Section: Climate Change
Context- The Union government on Friday introduced the Indian Antarctic Bill, 2022, that aims to lay down a set of rules to regulate a range of activities on territories in Antarctica where India has set up research stations.
Concept-
What is the Objective of the Bill?
- To provide a harmonious policy framework for India’s Antarctic activities through a well-established legal mechanism, facilitate activities of the Indian Antarctic programme, including management of Antarctic tourism and sustainable development of fisheries.
The Provisions of the bill:
- Regulate Visiting: The bill has listed strict guidelines and a system of permits, which will be issued by a government-appointed committee, without which any expedition or individual will not be allowed to enter Antarctica.
- Protecting Mineral Resources: The Bill further prohibits drilling, dredging, excavation or collection of mineral resources or even doing anything to identify where such mineral deposits occur.
- The only exception is for scientific research with a permit.
- Protecting Native Plants: There will be strict prohibition on damaging native plants, flying or landing helicopters or operating vessels that could disturb birds and seals, using firearms that could disturb the birds and animals, remove soil or any biological material native to Antarctica, engage in any activity that could adversely change the habitat of birds and animals, or harm them.
- Prohibition on introducing Birds not Native to Antarctica: Introduction of animals, birds, plants or microscopic organisms that are not native to Antarctica are also prohibited. Violators can face imprisonment as well as penalties.
- Provisions for Indian Tour Operators: The Bill also provides for Indian tour operators to be able to operate in Antarctica after acquiring a permit.
- There are 40 permanent research stations in Antarctica of which two – Maitri and Bharati — are Indian.
What is the Need of Such Law?
- India had been a signatory to the Antarctica Treaty since 1983 and that encumbered India to specify a set of laws governing portions of the continent where it had its research bases.
- The Treaty made it mandatory for the 54 signatory countries to specify laws governing territories on which their stations are located.
- India is also signatory to treaties such as the Convention on the Conservation of Antarctic Marine Living Resources and the Commission for Conservation of Antarctic Marine Living Resources.
- Both the conventions enjoin India to help preserve the pristine nature of the continent.
What is the history of the Antarctic Treaty?
- The Antarctic Treaty came into force on June 23, 1961 after ratification by the 12 countries then active in Antarctic science.
- The Treaty covers the area south of 60°S latitude.
- Its key objectives are
- to demilitarise Antarctica,
- to establish it as a zone free of nuclear tests and the disposal of radioactive waste, and
- to ensure that it is used for peaceful purposes only;
- to promote international scientific cooperation in Antarctica and to set aside disputes over territorial sovereignty.
- Of the 54 signatory countries, 29 have ‘consultative’ status that gives them voting rights.
- The Treaty parties meet each year at the Antarctic Treaty Consultative Meeting.
- They have adopted over 300 recommendations and negotiated separate international agreements.
- These, together with the original Treaty, provide the rules which govern activities in the Antarctic. Collectively they are known as the Antarctic Treaty System (ATS).
What research does India conduct at Antarctica?
- India has organised 37 expeditions to Antarctica.
- The major thrust areas of the Indian Antarctic Programme are climate processes and links to climate change, environmental processes and conservation and polar technology.
- The operational expenditure of the Antarctic expedition is ₹90-110 crore annually depending on the projects and services.
Subject: Economy
Section: Fiscal Policy
Context: Elevated global commodities prices are jacking up subsidy expenditure on fertilizers. Farmers in the country continue to be insulated from the relentless rise in global prices of urea and natural gas.
Another sharp hike in the subsidy would amount to an unraveling of the ‘decontrol’ of the two soil nutrients announced more than a decade ago. As India meets nearly half of its DAP requirement via imports (mainly from West Asia and Jordan) while the domestic MoP demand is met solely through imports (from Belarus, Canada and Jordan, etc.).
Absent in the increase of subsidy, domestic producers of DAP may have to increase its retail prices sharply
Concept:
Types of fertilizers:
- Primary fertilizers includes Nitrogen, Phosphorus, Potassium-
- Nitrogenous – Urea
- Phosphatic – Di-ammonium Phosphate
- Potassic – Muriate of Potash (MoP) fertilizers.
- Secondary fertilizers include Calcium, Magnesium and Sulphur.
- Some micronutrients include – Zinc, Iron, Boron, Chloride etc.
Subsidy
- Subsidy on Urea: The Centre pays subsidy on urea to fertilizer manufacturers on the basis of cost of production at each plant and the units are required to sell the fertilizer at the government-set Maximum Retail Price (MRP).
Farmers pay a fixed price of Rs 242 per bag (45 kg) which covers about 20% of cost of production, the balance is provided by the government as subsidy to fertilizer units.
- Subsidy on Non-Urea Fertilizers: Retail prices of phosphatic and potassic (P&K) fertilizers, including DAP and Mop were ‘decontrolled’ ( or fixed by the companies) in 2010 with the introduction of a ‘fixed-subsidy’ regime as part of NBS mechanism.
The Centre, however, pays a flat per-tonne subsidy on these nutrients to ensure they are priced at “reasonable levels”.
Examples of non-urea fertilizers: Di-Ammonium Phosphate (DAP), Muriate of Potash (MOP).
The Nutrient Based Subsidy (NBS) Programme for Fertilizers was initiated in the year 2010.
Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers, except for Urea, based on the nutrient content present in them.
Apart from this, fertilizers which are fortified with secondary and micronutrients such as molybdenum (Mo) and zinc are given additional subsidy.
The scheme is administered by the Department of Fertilizers under the Ministry of Chemicals & Fertilizers.
The subsidy on Phosphatic and Potassic (P&K) fertilizers is announced by the Government on an annual basis for each nutrient on a per kg basis.
These rates are determined taking into account the international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country etc.
NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N:P:K= 4:2:1 ) of NPK fertilization is achieved.
Other reform:
The Government has introduced the Direct Benefit Transfer (DBT) system in Fertilizers from October 2016 and the Pan-India Roll out has been completed by March, 2018. Under the fertilizer DBT system, 100% subsidy on various fertilizer grades is released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries. Sale of all subsidized fertilizers to farmers/buyers is made through Point of Sale (PoS) devices installed at each retailer shop and the beneficiaries are identified through Aadhaar Card, KCC, Voter Identity Card etc.
Subject: Economy
Section: External Sector
Context:
Global sovereign borrowing will reach $10.4 trillion in 2022, almost a third above the average before the COVID-19 pandemic, according to the S&P Global Ratings.
While 137 countries will borrow an equivalent of $10.4 trillion in 2022, an estimated 30% lower than 2020, the overall figure is one-third higher than average borrowing between 2016 and 2019,
Borrowing in the economies of emerging Europe, Middle East and Africa (EMEA) will raise $253 billion to the equivalent of $3.4 trillion by the end of the year. Egypt, which has recently sought IMF assistance, is set to overtake Turkey as the region’s largest issuer of sovereign debt, with $73 billion worth of bond sales.
Tightening monetary conditions will push up government funding costs and rise in corporate defaults
Concept:
Global Sovereign Bond
National governments issue debt securities known as sovereign bonds, which can be denominated in either local currency or global reserve currencies, like the U.S. dollar or euro. In addition to financing government spending programs, these bonds can be used to repay older debts that may be maturing or cover interest payments coming due.
Sovereign bond yields are the interest rate the governments pay on their debt. Like corporate bonds, these bond yields depend on the risk involved for the buyers. Unlike corporate bonds, these risks primarily include the exchange rate (if the bonds are priced in the local currency), economic uncertainties, and political risks that can lead to a possible default on the interest payments or principal.
Three major determinants of sovereign bond yields:
- Creditworthiness – Creditworthiness is the perceived ability of a country to repay its debts given its current situation. Often, investors rely on rating agencies to help determine a country’s creditworthiness based on growth rates and other factors.
- Country Risk – Sovereign risks are external factors that may arise and jeopardize a country’s ability to repay its debts. For instance, volatile politics could play a role in raising the risk of a default in some cases if an irresponsible leader takes office.
- Exchange Rate – Exchange rates have a substantial effect on sovereign bonds denominated in local currencies. Some countries have inflated their way out of debts by simply issuing more currency, making the debt less valuable.
Bond yield and Bond Price
As bond prices increase, bond yields fall. For example, assume an investor purchases a bond with a 10% annual coupon rate and a par value of Rs. 1,000. Each year, the bond pays 10%, or Rs. 100, in interest. Its annual yield is the interest divided by its Par value. As Rs. 100 divided by Rs. 1,000 is 10%, the bond’s nominal yield is 10%, the same as its coupon rate.
Eventually, the investor decides to sell the bond for Rs. 900. The new owner of the bond receives interest based on the face value of the bond, so he continues to receive Rs. 100 per year until the bond matures. However, because he only paid Rs. 900 for the bond, his rate of return is Rs. 100/ Rs. 900 or 11.1%. If he sells the bond for a lower price, its yield increases again. If he sells for a higher price, its yield falls.
Movements in yields depend on trends in interest rates, it can result in capital gains or losses for investors.
- A rise in bond yields in the market will bring the price of the bond down.
- A drop in bond yield would benefit the investor as the price of the bond will rise, generating capital gains.
Causes of rising bond yield:
All those factors which increase supply of bonds vis a vis demand. Thus, the prices of bonds fall:
- Boom
Strong economic growth typically leads to increased aggregate demand, which results in increased inflation if it persists over time. During strong growth periods, there is competition for capital. As a result, investors have a plethora of options to generate high returns. In turn, Treasury yields must rise for Treasuries to find equilibrium between supply and demand. For example, if the economy is growing at five percent and stocks are yielding seven percent, few will buy Treasuries unless they are yielding more than stocks.
- Inflation
When inflationary pressures emerge, Treasury yields move higher as fixed-income products become less desirable. Additionally, inflationary pressures typically force central banks to raise interest rates to shrink the money supply. In inflationary environments, investors are forced to reach for greater yield to compensate for diminished purchasing power in the future.
- Monetary policy tightening
When interest rates are low, bond prices increase and thus, yield falls because investors are seeking a better return and vice-versa.
- State borrowing
It increases the supply of bonds greater than its demand thus, price falls and yield rises.
- Net Capital Outflow or rise in net export
Demand for bond declines relative to supply and thus bond price falls and yield rises.
Signals?
Bond yields are one of the metrics available for economists to judge the health of an economy, among others.
Subject: Economy
Section: Money and monetary policy
Context:
The Securities and Exchange Board of India (Sebi) revised the limits for Unified Payment Interface (UPI) in IPOs by retail investors from Rs 2 lakh to Rs 5 lakh.
Earlier in December 2021, the National Payments Corporation of India (NPCI) enhanced the limit from Rs 2 lakh to Rs 5 lakh for UPI based applications supported by blocked amount (ASBA) in IPOs.
It would increase efficiency, eliminate the need for manual intervention at various stages, and will reduce the time duration from issue closure to listing by up to 3 working days.
Concept:
A company relies on various methods to raise funds like public issues, debentures, financial assistance from banks, etc. to meet its day-to-day business needs and working capital requirements. The sources of funds available to a business in India can be classified as:
- Public Issues-In this process, a company offers a prospectus to invite the general public to purchase its shares by paying the share application money. It is a way of offering convertible shares or securities in the primary market to attract new investors for the subscription.
- Initial Public Offer: For Unlisted Companies-
An unlisted company (A company which is not listed on the stock exchange) announces an initial public offering (IPO) when it decides to raise funds through sale of securities or shares for the first time to the public. In other words, IPO is the selling of securities to the public in the primary market.
After listing on the stock exchange, the company becomes a publicly-traded company and the shares of the firm can be traded freely in the open market
- Offer for Sale-
securities held by the existing shareholders of an unlisted company are offered to the public
- Rights Issue: When a Company makes an Offer to raise capital from its existing shareholders.
- Further Public Offer: For Listed Companies-
When a listed company makes an offer for sale or comes out with a new issue of shares to the public to increase capital, it is known as Further Public Offer.
FPO means a company which is already listed and has complied with the process of an IPO, is going to issue shares to the public. FPO is not as risky as an Initial Public Offer, as the investors are already aware of the company’s performance and have a fair idea about its growth opportunities.
- Private Placement– a company sells securities directly to a few pre-decided numbers of investors or institutions.
- A preferential Issue-
It is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital.
- Qualified Institutional Placement –
It enables an Indian-listed firm to raise funds from domestic markets without having to file any pre-issue documents with market regulators. According to the SEBI, companies can only raise money by issuing securities. The Securities and Exchange Board of India (SEBI) enacted this rule to prevent enterprises from relying on foreign financing.
Only institutions or qualified institutional buyers (QIBs) can participate in a QIP issuance, unlike an IPO or an FPO. Mutual funds, domestic financial institutions including banks and insurance firms, venture capital funds, foreign institutional investors, and others are all examples of QIBs.
National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.
Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems. Another major objective of NPCI was facilitating an affordable payment system that can help the common people during financial inclusion.
Applications Supported by Blocked Amount (ASBA)
ASBA is a process developed by SEBI to apply for IPOs, Rights and Debts Issue, FPS and more. It entails that the amount to be paid for subscribing the shares does not get debited from the investor’s account until the shares have been allotted by the company.
Investors can apply for ASBA and have the bank block out the application money until the shares get allotted to the investor. This blocking is carried out by Self-Certified Syndicate Banks (SCSB). Self Certified Syndicate Banks (SCSBs) are SEBI authorized banks that confirm to the conditions laid by SEBI to accept the applications, verify and block the amount to the extent of what the application requires, upload the details to the web and stay updated with the process until the shares are allotted.
Subscribing to issues via ASBA is a mandatory option since as of 2016. If the money has been blocked in an interest bearing ASBA account then the amount will continue to earn interest during the time it takes to get the allotment of the share. The investor needs to be an Indian resident to avail ASBA.
9. Bill on Delhi municipal corporations
Subject: Polity
Section: Local Government
Context: The Rajya Sabha on Tuesday passed the Delhi Municipal Corporation (Amendment) Bill, 2022, which is aimed at unifying the three municipal corporations
Features of Bill:
- The Bill seeks to amend the Delhi Municipal Corporation Act, 1957 passed by Parliament. The Act was amended in 2011 by Delhi Legislative Assembly to trifurcate the erstwhile Municipal Corporation of Delhi into: (i) North Delhi Municipal Corporation, (ii) South Delhi Municipal Corporation, and (iii) East Delhi Municipal Corporation. The Bill seeks to unify the three corporations.
- Unification of Municipal Corporations in Delhi: The Bill replaces the three municipal corporations under the Act with one Corporation named the Municipal Corporation of Delhi.
- Powers of the Delhi government: The Act as amended in 2011 empowers the Delhi government to decide various matters under the Act. These include: (i) total number of seats of councillors and number of seats reserved for members of the Scheduled Castes, (ii) division of the area of corporations into zones and wards, (iii) delimitation of wards, (iv) matters such as salary and allowances, and leave of absence of the Commissioner, (v) sanctioning of consolidation of loans by a corporation, and (vi) sanctioning suits for compensation against the Commissioner for loss or waste or misapplication of Municipal Fund or property. The Bill instead empowers the central government to decide these matters.
- Number of councillors: The Act provides that the number of seats in the three corporations taken together should not be more than 272. The Bill states that the total number of seats in the new Corporation should not be more than 250.
- Removal of Director of Local Bodies: The Act provides for a Director of Local Bodies to assist the Delhi government and discharge certain functions which include: (i) coordinating between Corporations, (ii) framing recruitment Rules for various posts, and (iii) coordinating the collecting and sharing of toll tax collected by the respective Corporations. The Bill omits the provision for a Director of Local Bodies.
- Special officer to be appointed by the central government: The Bill provides that the central government may appoint a Special Officer to exercise powers of the Corporation until the first meeting of the Corporation is held after the commencement of the Bill.
- E-governance system for citizens: The Bill adds that obligatory functions of the new Corporation will include establishing an e-governance system for citizen services on anytime-anywhere basis for better, accountable, and transparent administration.
- Conditions of service for sweepers: The Act provides that a sweeper employed for doing house scavenging of a building would be required to give a reasonable cause or a 14 day notice before discontinuing his service. The Bill seeks to omit this provision.
Rationale for the bill:
- Trifurcation has resulted in uneven territorial division and revenue generation ability
- Led to Cooperation being unable to pay salaries and retirement benefits
- Robust set-up for synergised and strategic planning and optimal utilisation of resources
10. Bill in Lok Sabha to ban Weapon of Mass Destruction funding
Subject: Polity
Section: Parliament
Context: External Affairs Minister introduced a Bill in the Lok Sabha that seeks to ban funding of weapons of mass destruction (WMD)
About the Bill
Bill seeks to insert a new Section 12A in the existing law which states that “no person shall finance any activity which is prohibited under this Act, or under the United Nations (Security Council) Act, 1947 or any other relevant Act for the time being in force, or by an order issued under any such Act, in relation to weapons of mass destruction and their delivery systems”.
Bill would give the government powers to “freeze, seize or attach funds or other financial assets owned by such person; or held by or on behalf of, or at the direction of, such person; or derived or generated from the funds or other assets owned or controlled, directly or indirectly, by such person”.
It proposes to “prohibit any person from making funds, financial assets or economic resources or related services available for the benefit of persons related to any activity which is prohibited under this Act.”
Rationale:
- The existing Act (Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005) does not cover the financial aspect of WMD delivery systems and inclusion of new provisions was essential to meet India’s international obligations
- United Nations Security Council’s targeted financial sanctions and the recommendations of the Financial Action Task Force have mandated against financing of the proliferation of weapons of mass destruction and their delivery systems.
- The earlier law of 2005 regarding WMDs and their Delivery Systems (Prohibition of Unlawful Activities) only banned their manufacture.
Weapon of mass destruction
- A weapon of mass destruction(WMD) is a nuclear, radiological, chemical, biological, or any other weapon that can kill and bring significant harm to numerous individuals or cause great damage to artificial structures (e.g., buildings), natural structures (e.g., mountains), or the biosphere.
- Originally coined in reference to aerial bombing with chemical explosives during World War II, it has later come to refer to large scale weaponry of warfare-related technologies, such as chemical, biological, radiological, or nuclear warfare.
11. Haryana Assembly passes resolution on Chandigarh
Subject: Polity
Section: Federalism
Context: Haryana State Assembly on Tuesday termed the Punjab Legislative Assembly’s recent resolution urging the Central government to transfer the Union Territory of Chandigarh to Punjab as “not acceptable to the people of Haryana”
Background:
- Punjab’s chief minister moved a resolution in the Assembly, seeking the immediate transfer of Chandigarh to Punjab.
- The long-standing dispute between Punjab and Haryana over Chandigarh flared up after the Centre notified Central Service Rules for employees in Chandigarh instead of the Punjab Service Rules.
How did Chandigarh become the capital of Punjab?
- Before 1947, in undivided India, the capital city of Punjab province was Lahore.
- After Partition, Shimla was made the temporary capital of Indian Punjab. Prime Minister Jawaharlal Nehru wanted a modern city to replace Lahore as Punjab’s capital, and the idea of Chandigarh was conceived.
- In 1953, the capital was officially moved from Shimla to Chandigarh.
When was Punjab reorganized and Chandigarh became a Union Territory?
- The Punjab Reorganization Act of 1966 carved out the new state of Haryana from undivided Punjab, created the new Union Territory of Chandigarh under the direct control of the Center, and transferred the hill territories of Punjab to Himachal Pradesh.
- Chandigarh was identified as the capital of Punjab in The Capital of Punjab (Development and Regulation) Act, 1952. But it became the common capital of both Punjab and Haryana, and properties were divided between the states in the ratio of 60:40.
Chandigarh Issue in Punjab and Haryana
- Since 1966, the lack of full rights to its capital has remained a major issue in Punjab politics. All the governments and most political parties of Punjab have regularly raised the demand for Chandigarh.
- It has featured in all major developments, whether it is the 1973 Anandpur Sahib resolution, Dharam Yudh Morcha (of Akali Dal with J.S. Bhindranwale) and the 1985 Rajiv-Longowal Accord.
- On the other hand, in Haryana, all parties present a common position asserting their claim to the city and have objected to any move which associates Chandigarh solely with Punjab.
What has been the Central Government’s stand on Punjab?
- At the time of the 1966 Act, the Union government with Indira Gandhi as Prime Minister indicated that the UT status to Chandigarh was temporary and that it would be transferred to Punjab.
- According to the 1985 Rajiv-Longowal Accord, Chandigarh was to be handed over to Punjab on January 26, 1986, but this was never fructified after the assassination of Longowal and the long period of militancy till the mid-1990s.
- However, recently, the Centre notified Central Service Rules for employees in the Union Territory instead of the Punjab Service Rules. This development could indicate a shift in the Central government’s position.