Daily Prelims Notes 1 March 2024

March 1, 2024
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

1 March 2024

Table Of Contents

1. Revised Regulatory Framework for Bharat Bill Payment Systems (BBPS)

Subject: Economy

Section: Monetary Policy

Objective:

The Reserve Bank of India (RBI) has introduced a revised regulatory framework for BBPS to align with developments in the payments landscape.
Effective from April 1, 2024, the new framework aims to streamline bill payment processes, enhance participation, and bolster customer protection.

Operational Structure:

BBPS functions on a tiered structure comprising:
- NPCI Bharat Bill Pay Ltd (NBBL) as the Central Unit (BBPCU).
- Bharat Bill Payment Operating Units (BBPOUs).
- Agent networks of BBPOUs.

Role of NBBL:

NBBL, a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), serves as the Payment System Provider for BBPS.
It operates a platform connecting customers and billers, facilitating clearing and settlement activities for transactions routed through the BBPCU.

Responsibilities of NBBL (BBPCU):

Establish rules, participation criteria, and technical standards for the system.
Ensure guaranteed settlement of all transactions via NBBL, preventing fund flow through any Technology Service Provider (TSP).

Dispute Resolution:

NBBL must implement a centralized dispute resolution framework for end-to-end complaint management.
Integrated system for participating entities allows customers and billers to raise and resolve disputes as per the framework.

Participation of Entities:

Banks, non-bank Payment Aggregators (PAs), and authorized BBPOUs can participate as Operating Units.
Banks and non-bank PAs do not require separate authorization for BBPS participation.
Non-bank BBPOUs must open an escrow account with a Scheduled Commercial Bank exclusively for BBPS transactions.

Functioning of Non-bank BBPOUs:

Non-bank BBPOUs act as Payment Aggregators (PAs) when collecting or settling funds with onboarded billers.
The BBPOU’s payment system is deemed a ‘designated payment system’ for the maintenance of the escrow account, as per the guidelines.

The revised regulatory framework for BBPS by RBI aims to enhance efficiency, transparency, and customer protection in bill payment systems. It empowers various entities to participate, ensures secure fund management, and establishes a robust dispute resolution mechanism for the benefit of customers and billers alike.

NPCI (National Payments Corporation of India):

NPCI is the umbrella organization for operating retail payments and settlement systems in India.
It is an initiative of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
NPCI plays a crucial role in promoting cashless transactions and digital payments across the country.
It develops and manages various payment systems like UPI (Unified Payments Interface), IMPS (Immediate Payment Service), and RuPay.

BBPS (Bharat Bill Payment System):

BBPS is a centralized bill payment system in India that offers interoperable and accessible bill payment services to customers.
It enables individuals to pay their bills online through a single platform.
BBPS covers a wide range of billers including electricity, water, gas, direct-to-home (DTH), telecom, and more.

NPCI Bharat Bill Pay Ltd (NBBL):

NBBL is a wholly-owned subsidiary of NPCI.
It operates as the Central Unit (BBPCU) in the BBPS framework.
NBBL acts as the Payment System Provider for BBPS, providing the platform that connects customers and billers.

BBPOUs (Bharat Bill Payment Operating Units):

BBPOUs are entities authorized to operate as part of the BBPS.
They function as intermediaries between customers and billers, facilitating the bill payment process.
BBPOUs are responsible for onboarding billers onto the BBPS platform and handling customer transactions.

BBPCU (Bharat Bill Payment Central Unit):

BBPCU is the Central Unit of the BBPS system, operated by NBBL.
It serves as the core infrastructure for the BBPS, overseeing the entire bill payment process.
BBPCU sets the rules, standards, and guidelines for participation in the BBPS ecosystem.
The BBPCU ensures seamless transactions, proper clearing, and settlement of funds between customers and billers.

In summary, NPCI is the overarching organization overseeing payment systems in India,

BBPS is the bill payment system,

NBBL is the entity managing the BBPS platform as the BBPCU,

BBPOUs are the operational units handling transactions, and

BBPCU is the central infrastructure ensuring the smooth functioning of the entire BBPS ecosystem.

Unified Presentment Management System (UPMS) introduced by NPCI BillPay Ltd. (NBBL) – NPCI BillPay Ltd. (NBBL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), has launched a new functionality known as the Unified Presentment Management System (UPMS). The primary aim of UPMS is to enrich and simplify the process of bill payments in India, offering a more convenient and efficient solution to customers.

Key Features of UPMS:

Standing Instructions Setup
Automated Bill Fetching
Centralized Infrastructure
Democratizing Bill Payments
Opportunity for Fintech and Service Providers
Real-Time Updates

2. Certification of Railway Stations as Eat Right Stations by FSSAI

Subject: Schemes

Objective:

The Food Safety and Standards Authority of India (FSSAI) has certified nearly 150 railway stations across India as Eat Right Stations.
This initiative is part of the Eat Right movement, aiming to ensure safe, hygienic, and nutritious food options in various settings.

Significance:

Marks a significant milestone in advancing the Eat Right India movement.
Provides safe, hygienic, and nutritious food choices for millions of passengers across India’s extensive railway network.

Accredited Stations:

Railway Stations: New Delhi, Varanasi, Kolkata, Ujjain, Ayodhya Cantt, Hyderabad, Chandigarh, Kozhikode, Guwahati, Visakhapatnam, Bhubaneswar, Vadodra, Mysuru City, Bhopal, Anand Vihar Terminal (Delhi), and Puratchi Thalaivar Dr MG Ramachandran Central Railway Station (Chennai).
Metro Stations: Noida Sector 51, Esplanade (Kolkata), IIT Kanpur, Botanical Garden (Noida), and Noida Electronic City Metro Station.

Achieving Food Safety:

Certification signifies adherence to food safety standards, promoting healthier food choices.
Enhances the overall dining experience for passengers and commuters.

Public Health Impact:

Promotes public health by offering food options that meet safety and nutritional standards.
Encourages a culture of healthy eating and well-being among travelers and commuters.

Eat Right Station’ certification

The ‘Eat Right Station’ certification awarded by the Food Safety and Standards Authority of India (FSSAI) signifies railway stations that excel in providing safe and wholesome food options to passengers.

Certification Purpose: Recognizes railway stations that maintain high standards of food safety and hygiene for passengers.
Certification Process:
- Conducted by an FSSAI-empanelled third-party audit agency.
- Stations are rated on a scale from 1 to 5 based on food safety, hygiene, and quality.
- Upon conclusion of the audit, stations meeting the benchmarks receive the ‘Eat Right Station’ certificate.
- Examples include Anand Vihar Terminal Railway Station (Delhi), Chhatrapati Shivaji Terminus (Mumbai), Mumbai Central Railway Station (Mumbai), Vadodara Railway Station, and Chandigarh Railway Station.

What is the ‘Eat Right Movement’?

Initiative: Led by FSSAI to revamp India’s food system for safe, healthy, and sustainable food practices.
Tagline: ‘Sahi Bhojan, Behtar Jeevan’ (Right Food, Better Life).
Alignment: Aligned with National Health Policy 2017, focusing on preventive healthcare and key programs like Ayushman Bharat, POSHAN Abhiyaan, Anaemia Mukt Bharat, and Swachh Bharat Mission.
Approach:
- Regulatory measures.
- Capacity building initiatives.
- Collaborations for effective food safety.
- Empowerment programs for informed choices.

About FSSAI:

Autonomous Body:
- Operates under the Ministry of Health and Family Welfare, Government of India.
Establishment:
- Formed under the Food Safety and Standards Act, 2006, replacing previous food-related regulations.
Objective:
- Sets science-based standards for food articles.
- Regulates food manufacture, storage, distribution, sale, and import to ensure safe consumption.

The ‘Eat Right Station’ certification and the broader ‘Eat Right Movement’ by FSSAI are pivotal in promoting safe, healthy, and sustainable food practices across India’s railway stations and beyond.

India’s Stance on E-Comm Moratorium at WTO

India has emphasized the need for a “re-examination” of the implications of the moratorium on customs duties on electronic transmissions, especially concerning developing countries and the Least Developed Countries (LDCs).

This discussion took place at the working session on the work program on e-commerce during the 13th WTO Ministerial Conference (MC13) in Abu Dhabi.

Background:

The moratorium on customs duties on electronic transmissions was decided by WTO members in 1998.
This moratorium has been periodically extended at successive ministerial conferences.
The current discussion revolves around whether to extend this moratorium

India’s Position:

Revenue Loss Concerns:
- India has expressed concerns about the substantial revenue loss that developing nations face due to this moratorium.
- There has been no consensus on the scope of coverage of the moratorium.
Technological Advancements:
- India highlighted the ongoing digital revolution and the emergence of technologies like additive manufacturing, 3D printing, data analytics, artificial intelligence, and the Internet of Things.
- There is a need to re-examine the implications of the moratorium in light of these technological advancements.

Scope of Moratorium:

India and South Africa pointed out that if the moratorium’s scope includes “transmission” only, it might be feasible to impose duties on content.
However, if the scope extends to digitized and digitizable goods, it could have significant implications.
- A joint submission mentioned items such as cinematograph films, books, newspapers, video games, computer software, and more.
- The list could expand further as the digital economy evolves.

Revenue Impact:

According to a 2017 study by UNCTAD, developing countries face an estimated annual revenue loss of $10 billion due to the moratorium.
For India, the estimated loss could be over $500 million annually (based on 2017 figures).

Global Perspectives:

Developed countries such as the US, Australia, the EU, and Japan are advocating for an extension of the moratorium.

India’s Suggestions:

India emphasized the need for developing countries to enhance their domestic physical and digital infrastructure.
Creating supportive policy frameworks and regulatory environments is crucial.
Developing digital capabilities is also essential for participating in the evolving digital economy.

India’s stance reflects its concerns about revenue losses for developing nations, the evolving digital landscape, and the need for a comprehensive re-examination of the moratorium’s implications.

3. NBFC-MFIs Proposal to Raise Household Income Limit for Micro Loans

Subject: Economy

Section: Monetary Policy

The NBFC-MFIs (Non-Banking Finance Company – Microfinance Institutions) are urging the Reserve Bank of India (RBI) to reconsider the criteria for annual household income limits for providing microloans, citing the growing needs of individual borrowers. Here’s an overview of the situation:

Request for Revised Criteria:

Current Income Limit:
- The existing annual household income limit for micro loans stands at ₹3 lakh.
Proposed Increase:
- NBFC-MFIs are requesting an increase in this limit to approximately ₹5 lakh.
Previous Revision:
- The last revision to the income limit criteria was in 2022, when it was raised from ₹1.25 lakh in rural areas and ₹2 lakh in urban and semi-urban areas to a uniform ₹3 lakh.

Industry Insights:

Discussion with RBI:
- Regarding the income limit revision.
- Typically, the RBI does not revise these criteria on an annual basis, but rather every two to three years.
- After the conclusion of this financial year, with a review of numbers and alignment with government schemes and inflation, a case can be made to the RBI for a reevaluation.
Definition of Microfinance Loan:
- As per RBI, a microfinance loan is a collateral-free loan provided to a household with an annual income of up to ₹3 lakh.
- The household, in this context, refers to the individual family unit consisting of the husband, wife, and their unmarried children.
Loan Size Trends:
- The average microfinance loan size has shown an increase, reaching ₹47,374 in Q3 FY24, compared to ₹41,123 in the previous year and ₹39,512 in Q3 FY22, based on the latest MFIN data.

Industry Portfolio:

Growth and Clientele:
- Microfinance operations have added over one crore unique clients in the past financial year.
- The industry witnessed a robust growth of 24.6% over the previous financial year, with the total portfolio reaching ₹3,99,442 crore.
Delinquency and Portfolio Health:
- Portfolio delinquency has returned to pre-Covid levels, indicating an improvement in the health of the microfinance portfolio.
Industry Breakdown:
- NBFC-MFIs are the largest providers of micro credit, holding a loan amount outstanding of ₹1,56,245 crore, which accounts for 39.1% of the total industry portfolio.
- Banks follow with 13 entities holding a total loan outstanding of ₹1,33,759 crore, constituting 33.5% of the micro-credit universe.
- Small Finance Banks have a total loan amount outstanding of ₹70,449 crore, accounting for 17.6% of the market.
- NBFCs represent 8.9%, and other MFIs account for 0.8% of the micro-credit universe.

The push for a revision in the annual household income limit for microloans by NBFC-MFIs reflects the evolving needs of borrowers and the industry’s efforts to align with changing economic dynamics.

Definition of a Microfinance Loan: The RBI revised the definition of a microfinance loan to indicate a collateral-free loan given to a household having annual income of up to Rs. 3 lakh. Earlier, the upper limits were Rs.1.2 lakh for rural borrowers and Rs.2 lakh for urban borrowers.

4. SEBI asks small and mid-cap funds to disclose more about risks to investors

Subject: Economy

Section: Financial markets

Context:

India’s market regulator has asked the country’s asset managers to give investors more information about the risks associated with their small and mid-cap funds, according to a fund manager and two people with knowledge of the matter.

More on news:

The Securities & Exchange Board of India (SEBI) has also been reviewing stress tests conducted by such funds.
Small and mid-sized funds have seen high inflows, causing concern among authorities about how they would hold up in the event of a sharp market selloff.
Heavy inflows have sent the Nifty small cap 250 index surging 71 per cent over the past 52 weeks and lifted the Nifty midcap 100 index 64 per cent.
That far exceeds the benchmark Nifty’s 28 per cent rise.
Mutual funds tend to keep between 1 percent and 5 percent of their assets as cash as a prudent measure to meet outflows, according to public documents.
There is, however, no minimum regulatory requirement.

Definitions of various Caps:

Small-cap stocks are defined as those with market caps of less than 50 billion rupees .
Mid-cap stocks are those with market values of between 50 billion and 200 billion rupees.
Large-cap stocks are usually well-established and dominant companies in their respective industries as their market capitalisation is over Rs. 20,000 crores(200 Billion rupees).
The term “cap” in large-cap refers to market capitalization.

5. Cabinet approves royalty rates for mining of 12 critical and strategic minerals

Subject: Geography

Section: Economic Geography

Context:

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the amendment of Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (‘MMDR Act’) for specifying rate of royalty in respect of 12 critical and strategic minerals.

More on news:

These minerals include Beryllium, Cadmium, Cobalt, Gallium, Indium, Rhenium, Selenium, Tantalum, Tellurium, Titanium, Tungsten and Vanadium.
This completes the exercise of the rationalization of royalty rates for all 24 critical and strategic minerals.
It may be noted that the Government had notified the royalty rate of 4 critical minerals, viz., Glauconite, Potash, Molybdenum and Platinum Group of Minerals on 15th March, 2022 and of 3 critical minerals, viz., Lithium, Niobium and Rare Earth Elements on 12th October, 2023.

About The Mines and Minerals (Development and Regulation) Amendment Act, 2023:

The Mines and Minerals (Development and Regulation) Amendment Act, 2023, which came into force from 17th August, 2023, had listed 24 critical and strategic minerals in Part D of the First Schedule of the MMDR Act.
The amendment provided that mining lease and composite licence of these 24 minerals shall be auctioned by the Central Government.
The Second Schedule of the MMDR Act provides royalty rates for various minerals.

Item No. 55 of the Second Schedule:

Item No. 55 of the Second Schedule provides that royalty rate for the minerals whose royalty rate is not specifically provided therein shall be 12% of the Average Sale Price (ASP).
If the royalty rate for these is not specifically provided, then their default royalty rate would be 12% of ASP, which is considerably high as compared to other critical and strategic minerals.
This royalty rate of 12% is not comparable with other mineral producing countries.

About Critical Minerals:

Critical minerals refer to mineral resources, both primary and processed, which are essential inputs in the production process of an economy, and whose supplies are likely to be disrupted due to the risks of non-availability or unaffordable price spikes.
To tackle such supply risks, major global economies periodically evaluate which minerals are critical for their jurisdiction through a quantitative assessment.
Critical minerals have become essential for economic development and national security in the country.
Critical minerals such as Cadmium, Cobalt, Gallium, Indium, Selenium and Vanadium and have uses in batteries, semiconductors, solar panels, etc.
These minerals have gained significance in view of India’s commitment towards energy transition and achieving net-zero emission by 2070.

6. PM Modi launches hydrogen-powered ferry: features, significance

Subject: Science and tech

Section: Msc

Context:

Prime Minister Narendra Modi Wednesday virtually launched India’s first indigenously developed hydrogen fuel cell ferry.

More on news:

Built at a cost of Rs 18 crore, the ferry will be handed over to the Inland Waterways Authority of India by the CSL after rigorous trials.
The Ministry of Ports, Shipping and Waterways met 75 per cent of the project cost.
The ‘Harit Nauka’(green boat) initiative of the Ministry of Ports, Shipping and Waterways envisages a green transition of inland vessels.
In line with this, the ferry can be replicated in other parts of the country for urban mobility. It is also a boost to the National Green Hydrogen Mission.

What are the special features of the vessel?

The Hydrogen fuel cell vessel is a 24-meter-long catamaran, which can carry 50 people in its air-conditioned passenger area.
The accommodation area has been constructed with high-quality fiberglass reinforced plastic, similar to metro train coaches.
Hydrogen fuel cell vessels do not use conventional batteries as the primary storage house of electrical energy.
The vessels run on hydrogen fuel, which is stored in cylinders.
This boat has five hydrogen cylinders that can carry 40 kg of hydrogen and support eight hours of operations.
The vessel is also fitted with a 3-kW solar panel.
The hydrogen fuel cell-powered vessel has zero emission, zero noise and is energy-efficient, which makes it more environment-friendly.
Since there are no moving parts, the ferry requires less maintenance than combustion vessels.

How do hydrogen fuel cells work?

A hydrogen fuel cell generates electricity by utilizing the chemical energy contained in hydrogen.
It releases only pure water, not discharging pollutants.
Hydrogen is loaded into cells.
The energy within the hydrogen is converted into electricity and heat, which is then used to power the vessel’s propulsion mechanism.
In the fuel cell, the hydrogen reacts with the oxygen in the air to produce electricity.
Unlike batteries, hydrogen fuel cells do not require recharging.
Provided uninterrupted supply of fuel and oxygen, these cells would work continuously.

What type of cells have been used in the vessel?

This vessel uses a 50-kW PEM (proton-exchange membrane) fuel cell, with Lithium-Ion Phosphate batteries.
The advantage is that the cells can quickly change their output depending upon the power demand.
PEM fuel cells are popular in automotive applications because they operate at a lower temperature, and are lighter and more compact.

How was it developed?

India has now indigenously developed hydrogen fuel cells and their related systems.
The vessel has been built completely by the CSL, which also developed the vessel automation system and power management system.
The hydrogen fuel cell system was developed by KPIT Technologies, Pune, in collaboration with the Council of Scientific and Industrial Research Labs, under the Union Ministry of Science and Technology.

What is the Harit Nauka initiative?

In January 2024, the shipping ministry unveiled the Harit Nauka guidelines for inland vessels.
As per the guidelines, all states have to make efforts to use green fuels for 50 per cent of inland waterways-based passenger fleets in the next one decade, and 100 per cent by 2045.
This is to reduce greenhouse gas emissions as per the Maritime Amrit Kaal Vision 2047.

7. Experts report Nicaraguan ‘systematic human rights violations’ to UN council

Subject: IR

Section: Places in news

Context:

Nicaragua has jailed hundreds of real and perceived opponents since then and shuttered more than 3,500 religious and other NGOs, often also seizing their assets.

More on news:

Managua views the 2018 protests as part of an attempted coup promoted by Washington, and claims they were funded by NGOs.
In a report presented to the UN’s Human Rights Council (HRC) in Geneva, said that the President,Vice President and other high-level officials should be held accountable.

About Nicaragua:

Nicaragua, officially the Republic of Nicaragua, is the largest country in Central America.
The country is bordered by Honduras to the north, the Caribbean to the east, Costa Rica to the south, and the Pacific Ocean to the west.
Managua is the country’s capital and largest city.
As of 2015, it was estimated to be the third largest city in Central America.

About the United Nations Human Rights Council (UNHRC):

The UNHRC describes itself as an inter-governmental body within the UN system responsible for strengthening the promotion and protection of human rights around the globe.
It addresses situations of human rights violations and makes recommendations on them.
The UNHRC has the ability to discuss all thematic human rights issues and situations that require its attention throughout the year.
The UNHRC replaced the former United Nations Commission on Human Rights (UNCHR).
UNHCR’s headquarters is located in Geneva.
The organization employs over 10,966 staff in more than 130 countries, including the Republic of Korea.

8. Rajya Sabha polls BJP gains in U.P., Himachal Pradesh amid cross-voting

Subject: Polity

Section: Parliament

Context:

Rajya Sabha polls in Uttar Pradesh and Himachal Pradesh went down to the wire, with heavy cross-voting by Samajwadi Party (SP) and Congress MLAs respectively, and the BJP walking away with two extra seats than its Assembly strength permitted.

More on news:

The June 1998 Rajya Sabha elections in Maharashtra witnessed cross-voting that resulted in the loss of a Congress party candidate

Legal Provisions:

As per Article 80 of the Constitution, representatives of each State to the Rajya Sabha are elected indirectly by the elected members of their Legislative Assembly.
In order to rein in the MLAs from such cross-voting, an amendment to the Representation of the People Act, 1951 was carried out in 2003.
Section 59 of the Act was amended to provide that the voting in elections to Rajya Sabha shall be through an open ballot.

What does the Tenth Schedule state?

The 52nd constitutional amendment introduced the ‘anti-defection’ law through the Tenth Schedule in 1985.
This Schedule provides that a member of a House of Parliament or State legislature who voluntarily gives up the membership of their political party or votes against the instructions of their party in a House are liable for disqualification from such House.
This instruction with respect to voting is issued by the ‘whip’ of a party.
However, the elections to Rajya Sabha are not treated as a proceeding within the Legislative Assembly.
The Election Commission, drawing reference to Supreme Court judgments, had issued a clarification in July 2017.
It specified that the provisions of the Tenth Schedule, with respect to voting against the instruction of the party, will not be applicable for a Rajya Sabha election.
Furthermore, political parties cannot issue any ‘whip’ to its members for such elections.

What is Cross Voting:

Cross voting in Rajya Sabha polls refers to the phenomenon where a legislator, typically a member of a legislative assembly (MLA), votes for a candidate who does not belong to the political party or alliance to which the legislator is affiliated.
Rajya Sabha, the upper house of the Parliament of India, is not directly elected by the public but by the elected members of the State Legislative Assemblies.
In Rajya Sabha elections, each state’s MLAs cast their votes to elect representatives to the Rajya Sabha.
The number of seats allocated to a state is determined by its population.
Cross voting occurs when a legislator goes against the party’s designated candidate and votes for a candidate from another political party or an independent candidate.

Reasons for Cross Voting:

Conscience Voting: Legislators may choose to vote according to their individual conscience, beliefs, or evaluation of the candidate’s qualifications, rather than strictly adhering to party lines.
Political Alliances and Rivalries: Complex political dynamics, alliances, or rivalries within a state or among political parties can lead to instances of cross voting.
Personal Agendas: Legislators may have personal or local issues that influence their voting decisions, leading them to support candidates or parties that align with their specific concerns.
Internal Party Conflicts: Internal conflicts within a political party, dissatisfaction with party decisions, or disagreements with leadership can motivate legislators to cross vote.

9. Why the Supreme Court overturned its 2018 decision, which set a time limit on courts’ stay orders

Subject: Polity

Section: Judiciary

Context:

The court held that an SC bench from 2018 did not have the power to set a six-month time limit for vacating stay order.

What is the Stay Order?

A stay order is a temporary measure to halt or defer the use of a property or land until a verdict is reached.
It serves as a protective action taken by the court or legal authorities in India to secure the rights of a citizen.
This action may lead to the suspension of an entire case or the suspension of specific proceedings within an ongoing case.
In certain instances, a judge may issue a stay order without formal prompting from the opposing party, emphasizing its importance in critical developments.

Nature of Stay Order:

Stay orders can be classified into two types: ‘stay of proceedings’ and ‘stay of execution.’
A stay of proceedings is issued when parallel proceedings may impact each other.
On the other hand, a stay of execution involves a complete halt to the enforcement of a judgment, typically in cases where innocence is asserted, leading to a pardon.
Stay orders can be conditional or absolute.

When a stay order is granted?

The procedure for obtaining a stay order from the High Court is the same as for any lower Court.
Every Court has inherent authority to stay proceedings in any action where the plaintiff is in default or has disobeyed any lawful order of the Court.
Any other Court may issue a precept to the High Court, which is then ‘competent to execute such decree to attach any property belonging to the judgment-debtor and specified in the precept’.

What the 2018 bench ruled in the Asian Resurfacing case?

In 2018, a three-judge bench comprising Justices Adarsh Goel, Navin Sinha and Rohinton Nariman were deciding a batch of cases involving the Prevention of Corruption Act.
These batches of cases had one aspect in common, that the respective High Courts had granted a stay at some stage of trial.
Stay orders are passed for a court to temporarily halt a judicial proceeding, to secure the rights of a citizen.
Grant of stay invariably delays the trial, irrespective of which side benefits from it.
To address the big problem plaguing the criminal justice system, of undue delays in trials, the SC held that interim orders of stay at the High Court and Civil Court level will be only valid for six months.
At the end of this period, they will automatically be rescinded or “vacated”.

What was the impact of the 2018 ruling?

This ruling led to the various questions as follows:

First, whether the SC, under Article 142 of the Constitution (which allows the Supreme Court to pass any order to secure “complete justice”) can order automatic vacation of all interim orders of the HC of staying proceedings of Civil and Criminal cases on the expiry of a certain period?
Second, whether the SC, under Article 142 of the Constitution, can direct the HCs to decide pending cases in which interim orders of stay of proceedings have been granted on a day-to-day basis and within a fixed period?

On what grounds has the 2018 ruling been undone?

The five-judge bench held that constitutional courts should refrain from laying down precise timelines for deciding cases, highlighting the discretion that should be afforded to lower courts which are more aware of “grassroots issues”.
The SC also pointed out that courts often have different patterns when it comes to their pending caseload, and so the concerned court is best placed to decide which cases to prioritize.
The court also held that the bench in Asian Resurfacing did not have the power to set a six-month time limit for vacating stay orders.
The bench in Asian Resurfacing had invoked Article 142.
The court held that automatically vacating a stay order after six months would in fact “defeat justice” by nullifying interim orders that had been lawfully passed without hearing the parties.
The court said that the six-month time limit would amount to court-created legislation, which is impermissible.
Only the legislature has the power to decide if a category of cases should be decided within a specific amount of time.

About Article 226(3):

Justice Manoj Misra in his separate opinion drew attention to Article 226(3) of the Constitution, which already provides a two-week time limit for High Courts to consider an application for the vacation of an interim order.
If the application is not disposed of within those two weeks, Article 226(3) provides that the interim order will be vacated.
It is pointed out that this essentially provides a process for automatically vacating a stay order, so long as an application is filed in the first place.

10. ZSI names a newly discovered sea slug after President Murmu

Subject: Environment

Section: Species in news

Context:

The Zoological Survey of India (ZSI) discovered a new species of head-shield sea slug with a distinctive ruby red spot.
Found along the West Bengal (Digha) and Odisha (Udaipur) coasts.
Named Melanochlamys droupadi in honour of the President of India, Droupadi Murmu.

Species Characteristics:

Belongs to the Melanochlamys genus, notable for short, blunt, cylindrical body and smooth dorsal surface with two dorsal shields: anterior cephalic and posterior.
Unique features of Melanochlamys droupadi:
- The maximum length of 7 mm, Brownish-black colour with a ruby red spot at the hind end, Hermaphroditic, with a shell inside the body, and Typically found crawling in the intertidal zone, leaving crawl marks on sandy beaches.

Reproduction and Habitat:

The reproduction period is between November and January.
Located near Hospital Ghat, Old Digha, only 50 meters away from ZSI’s Marine Aquarium Regional Centre.

Conservation and Study:

Type specimens are deposited in the Marine Aquarium and Regional Centre, Digha, and Estuarine Biology and Regional Centre, Gopalpur.
The species exhibits behaviour like secreting transparent mucus for protection against sand grains and moving beneath smooth sand, rarely exposing its body.

Distribution and Significance:

Melanochlamys species are generally found in temperate regions of the Indo-Pacific Oceanic realm, with three species, including Melanochlamys droupadi, being truly tropical.
Other tropical species include Melanochlamys papillata from the Gulf of Thailand and Melanochlamys bengalensis from the West Bengal and Odisha coasts.
Their research highlights the unique adaptation mechanisms of Melanochlamys droupadi, contributing to the understanding of marine biodiversity in the region.

About Sea Slug:

Sea slug is a common name for some marine invertebrates with varying levels of resemblance to terrestrial slugs.
The name “sea slug” is often applied to nudibranchs and a paraphyletic set of other marine gastropods without apparent shells.

Source: TH

11. India’s leopard population rises to 13,874; M.P. on top

Subject: Environment

Section: Species in news

In the news:

India’s leopard population increased by 8% from 12,852 in 2018 to 13,874 in 2022, as reported by the Environment Ministry.
The exercise to estimate the population of leopards in India is in its fifth cycle (2022).
The National Tiger Conservation Authority and Wildlife Institute of India, in collaboration with state forest departments, focused on forested habitats within 18 tiger-range states, covering four major tiger conservation landscapes.

Details:

The highest leopard count was in Madhya Pradesh (3,907), followed by significant populations in Maharashtra (1,985), Karnataka (1,879), and Tamil Nadu (1,070).
However, Uttarakhand experienced a 22% decline in leopard numbers due to poaching and human-leopard conflicts.
On a positive note, Arunachal Pradesh, Assam, and West Bengal collectively saw a 150% increase in leopard numbers, reaching 349 animals.
Nagarajunasagar Srisailam in Andhra Pradesh, Panna and Satpura in Madhya Pradesh were the tiger reserves with the highest numbers of leopards.
The survey, which covered 20 States, focused on approximately 70% of the leopard’s expected habitat, including tiger reserves and protected forest areas.
Unlike tigers, leopards are more adaptable, often found in villages and cities, leading to conflicts with humans due to their tendency to prey on cattle.

Habitat conservation:

The report, authored by Qamar Qureshi of the Wildlife Institute of India, highlights that a third of India’s leopards reside within protected areas, emphasizing that conserving tiger reserves also benefits leopard habitats.
The study focused on forest regions surveyed in 2018, showing varied growth rates across different geographical areas: a 3.4% annual decline in the Shivalik hills and the Gangetic plains, while Central India and the Eastern Ghats, the Western Ghats along with the hills of the northeast, and the Brahmaputra flood plains experienced growth rates of 1.5%, 1%, and 1.3% per year, respectively.
The report suggests a stable leopard population over the last four years but with minimal growth, indicating possible impacts from human activities in multiple-use areas.
Significant findings include a decline in leopard numbers in the Ramnagar forest division (Uttarakhand) amidst a sharp increase in tiger populations.
Remarkably, 65% of leopards live outside protected areas in the Shivalik landscape, though both leopard and tiger populations have grown in Uttar Pradesh.
The notable increase in leopard numbers in the northeastern states was attributed to a “sampling artefact”, pointing out the lack of systematic surveys and fewer cameras in previous years.

Source: TH

12. International Big Cat Alliance headquarters will be in India; the Centre allocates Rs 150 crore

Subject: Environment

Section: Int Conventions

Context:

The Indian government announced the establishment of the International Big Cat Alliance (IBCA) on February 29, 2024, following an idea proposed by Prime Minister Narendra Modi in 2019.
The headquarters of IBCA will be located in India.

Details:

The Union Cabinet, led by Prime Minister Modi, approved a one-time budgetary support of Rs 150 crore for IBCA.
This funding is allocated for a five-year period from 2023-24 to 2027-28.

Big Cats Overview:

“Big Cat” refers to large species within the Felidae family, primarily those in the Panthera genus: Tiger (Panthera tigris), Lion (Panthera leo), Jaguar (Panthera onca), Leopard (Panthera pardus), Snow Leopard (Panthera uncia)
These species are capable of roaring, with the lion’s roar being the loudest, audible from 8-10 kilometres away.
The snow leopard was initially classified as Uncia uncia but was later reclassified into Panthera.
Although not part of the Panthera genus, Puma (Puma concolor) and Cheetah (Acinonyx jubatus) are commonly included in big cat listings.

Big Cats in the Indian Subcontinent:

Historically, the region has been home to several big cats: Bengal tiger, Asiatic lion, Indian leopard, Indian/Asiatic cheetah (declared extinct in 1952), Snow leopard.
In 2022, the Government of India initiated a program to reintroduce African cheetahs to Kuno National Park in Madhya Pradesh, aiming to revive the cheetah population in the country.

About the International Big Cat Alliance (IBCA)

Formation and Purpose
- The IBCA is envisioned as a coalition involving 96 big cat range countries, non-range countries interested in big cat conservation, conservation partners, scientific organizations, business groups, and corporates.
- The alliance aims to establish networks, develop synergies, and create a centralized platform for sharing successful conservation practices and resources.
- Its primary goal is to arrest the decline in big cat populations and reverse this trend through a multi-faceted approach.
Strategies and Objectives
- The IBCA will focus on knowledge sharing, capacity building, networking, advocacy, financial and resource support, research, technical assistance, education, and awareness.
- It seeks to mitigate the adverse effects of climate change and advocate for policy initiatives that align biodiversity conservation with local needs, contributing to the United Nations Sustainable Development Goals.
Organizational Structure
- The IBCA’s structure will include an Assembly of Members, a Standing Committee, and a Secretariat, with headquarters based in India.
- Its Framework of Agreement is modelled after the International Solar Alliance, another initiative proposed by Prime Minister Modi in 2015.
- The statute of the IBCA will be finalized by an International Steering Committee, which includes national focal points of founding member countries.
- An interim head of the IBCA Secretariat will be appointed by the Ministry of Environment, Forest and Climate Change (MoEFCC) until the IBCA appoints its Director-General during an Assembly meeting.
Funding and Support
- The Centre plans to seek contributions from bilateral and multilateral agencies, public sector organizations, national and international financial institutions, and donor agencies to support the IBCA’s initiatives.

13. India and South Africa block attempt to include ‘investment facilitation for development’ agreement at WTO meet

Subject: IR

Section: Int Organisation

Context:

Opposition to Investment facilitation for development (IFD) Agreement at WTO’s 13th Ministerial Conference.

Details:

The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) took place in Abu Dhabi, starting on February 26 and concluding on February 29.

Investment Facilitation for Development (IFD) Agreement:

The IFD Initiative was initiated in the spring of 2017 by developing and least-developed WTO members.
Its goal is to create a global agreement to enhance the investment and business climate, facilitating easier investment, daily business operations, and expansion for investors across all economic sectors.
- The agreement is plurilateral, based on the most-favoured-nation principle, and is open for all WTO members to join. Plurilateral agreements are binding only on the WTO members that accept them.
Over 120 countries supported the IFD agreement, aiming to integrate it into the WTO to improve the investment and business climate.
The agreement, advocated by a China-led group, sought to be made binding through Annexure-4 of the WTO.
Opposition by India and South Africa
- India and South Africa formally opposed the IFD agreement’s consideration at MC13, labelling it a non-trade issue outside the WTO’s framework.
- India argued that investment-related issues do not fall under the WTO’s jurisdiction, emphasizing that the Marrakesh Agreement requires explicit consensus for adopting new plurilateral agreements.
Consensus and Attempts to Persuade
- South Korea, a co-sponsor, acknowledged the need for consensus to incorporate the IFD agreement.
- Civil society organizations reported efforts by the WTO Secretariat to persuade opponents to withdraw their objections.
- WTO Director-General Ngozi Okonjo-Iweala mentioned the IFD agreement as a potential “deliverable.”
India’s Stance on Development Issues
- India emphasized the importance of addressing issues relevant to developing countries, insisting that new issues should not be considered unless previous decisions and mandates were fulfilled.
- India defended the principles of ‘Special and Differential Treatment’, asserting they are fundamental to the WTO’s objectives and not exceptions to its rules.

Source: DTE