Daily Prelims Notes 24 August 2024

Daily Prelims Notes

24 August 2024

Table Of Contents

1. Monetary Policy Shifts and Economic Indicators: Key Takeaways from the Jackson Hole Symposium
2. Finance Ministry’s New Mechanism to Facilitate FPIs’ Transition to FDI
3. Cauvery body seeks Centre’s nod to conduct environment assessment
4. World’s second-largest diamond found in Botswana
5. What is ‘Rail Force One’, the train PM Modi took from Poland to Ukraine?
6. ‘Misleading, marketing gimmick’: FSSAI announces curbs on dairy products being labelled as A2
7. I&B Ministry to support finalists of audio-visual contest
8. PM Wani revival: Trai proposes reduction in high Internet costs by telcos
9. Implement school safety guidelines, Centre tells States
10. India’s Space Sector Contributes ₹20000 Crore to GDP Over the Last Decade
11. Tanager-1: NASA’s New Satellite for Tracking Methane Emissions
12. NTCA’s Directive for Relocation of Forest Dwellers from Tiger Reserves: A Controversy
13. Supreme Court Clarifies Parliament’s Role in CAG Report Scrutiny

1. Monetary Policy Shifts and Economic Indicators: Key Takeaways from the Jackson Hole Symposium

Sub: Eco

Sec: Monetary Policy

• US Inflation Rate Data:
  • Inflation peaked at 9% in June 2022 due to various macroeconomic factors including the pandemic and supply chain disruptions.
  • As of July 2024, inflation has cooled down to 2.9%, indicating a recovery towards price stability.
• US Federal Funds Rate:
  • Sharp reduction in the Federal Funds Rate from 2.25% in September 2019 to near-zero levels during the height of the pandemic to stimulate the economy.
  • Gradual increases since then have brought the rate to 5.5% by September 2024, reflecting tightening monetary policy aimed at controlling inflation.
• US Unemployment Data:
  • Unemployment spiked to 14.8% in April 2020 as a direct consequence of the economic shutdowns during the pandemic.
  • The rate has since recovered to 4.3% by July 2024, signalling an improvement in the labor market.
• Fed Chief Jerome Powell’s Statement:
  • Powell stated that “the time has come” for monetary policy adjustment, strongly hinting at upcoming interest rate cuts.
  • Emphasized that the pace and timing of these cuts will be data-dependent, considering the evolving economic outlook and risks.
  • Significant market reactions followed: Bond yields dropped, the US dollar weakened, and stock markets surged in anticipation of a more accommodative monetary policy.
• Global Implications:
  • Expected to have global repercussions, with stock markets worldwide likely to react positively as they open.
• Comparison with India’s Monetary Policy:
  • Divergence in inflation targets: The US has a target of 2% while India’s target is 4%.
  • Interest rate adjustments: The US saw a more substantial rate hike, reflecting different economic conditions and policy priorities.
  • In India, RBI has been more cautious in cutting rates, partly due to the robust GDP growth and the need to keep inflation under control.

It is clear that monetary policy plays a crucial role in managing economic stability, and the signals from the US Fed are pivotal in shaping global economic trends.

What Is the Jackson Hole Economic Symposium?

• The Jackson Hole Economic Symposium is an annual symposium, sponsored by the Federal Reserve Bank of Kansas City since 1978, and held in Jackson Hole, Wyo., since 1981. Every year, the symposium focuses on an important economic issue that faces world economies. Participants include prominent central bankers and finance ministers, as well as academic luminaries and leading financial market players from around the world.1
• The symposium proceedings are closely followed by market participants, as unexpected remarks emanating from the heavyweights at the symposium have the potential to affect global stock and currency markets.

2. Finance Ministry’s New Mechanism to Facilitate FPIs’ Transition to FDI

Sub: Eco

Sec: External sector 

• Objective:
  • The Finance Ministry is developing a mechanism to allow certain Foreign Portfolio Investors (FPIs) greater flexibility in moving into the Foreign Direct Investment (FDI) category.
• Current Limitation:
  • FPIs are currently restricted to owning less than 10% in a listed firm. Any desire to own more than 10% requires FPIs to exit the FPI category and re-enter through the FDI route, which is a cumbersome process.
• Proposed Solution:
  • The new mechanism aims to simplify the transition from FPI to FDI, reducing friction and making it easier for FPIs to increase their stake in listed firms beyond the 10% cap.
• Impact on Foreign Investments:
  • This initiative is part of a broader effort to simplify norms surrounding FDI and overseas investments, thereby boosting foreign investment flows into India.
  • Currently, India attracts FDI inflows worth $70 billion annually, with aspirations to increase this figure.
• Budget Announcements:
  • Finance Minister highlighted in her recent Budget speech the need to simplify rules and regulations for FDI and overseas investments, promoting the use of the Indian Rupee as a currency for such investments.
• Capital Raising in Indian Rupees:
  • The Finance Ministry is considering allowing foreign investors from specific countries to raise capital in Indian Rupees.
  • This capital could then be invested in their home countries if there are strategic interests aligned with India.
  • For example, a Sri Lankan investor could raise money in Indian Rupees in India for investment in Sri Lanka.
• Amendment to FEMA:
  • Any move to allow the raising of capital in Indian Rupees would require an amendment to the Foreign Exchange Management Act (FEMA).

• Equity Exchange:
  • In early August, the Finance Ministry amended FEMA rules to allow the issuance or transfer of Indian firm equity instruments in exchange for equity instruments of foreign companies, facilitating smoother mergers and acquisitions.
• Downstream Investments:
  • The Finance Ministry recently clarified the treatment of downstream investments by entities owned by Overseas Citizens of India (OCI) on a non-repatriation basis, further simplifying the regulatory landscape for foreign investors.

Types of Investment

Downstream Investment:

• Downstream investment is a form of indirect Foreign Direct Investment (FDI) where an Indian company invests in another Indian company’s equity or capital.
• Entities Involved:
  • Foreign Owned and/or Controlled Company (FOCC): The Indian company that receives the foreign investment.
  • Subject Company: The company that receives the investment.
  • Investing Company: The company that invests in the subject company, typically owned or controlled by non-residents or non-resident entities.
• Regulations: Must comply with sectoral conditions on entry routes, conditionalities and caps, and the specific sectors in which the subject company operates.

Upstream Investment:

• Upstream investment refers to investments made in the early stages of a company or industry, such as exploration, production, and extraction of raw materials.
• Entities Involved: Typically involves companies or entities engaged in the extraction or production of resources, such as mining companies or oil and gas firms.
• Regulations: Subject to specific industry regulations, environmental laws, and government policies depending on the sector.

Greenfield Investment:

• Greenfield investment refers to investments made by a company in a new venture by constructing new facilities from the ground up in a foreign country.
• Entities Involved: Usually involves multinational corporations setting up new operations in a foreign country.
• Regulations: Requires compliance with local laws, land acquisition regulations, and environmental impact assessments.

Brownfield Investment:

• Brownfield investment involves a company investing in existing facilities or assets in a foreign country, typically through mergers and acquisitions.
• Entities Involved: Typically involves companies looking to expand their operations by acquiring existing businesses or facilities.
• Regulations: Must comply with anti-trust laws, due diligence, and regulatory approvals for mergers and acquisitions.

Horizontal Investment:

• Horizontal investment occurs when a company invests in the same industry or sector in a foreign country.
• Entities Involved: Involves companies looking to expand their market presence by replicating their business model in a foreign market.
• Regulations: Subject to competition laws and industry-specific regulations.

Vertical Investment:

• Vertical investment involves a company investing in a foreign business that operates at a different level of the supply chain.
• Entities Involved: Typically involves companies investing in suppliers or distributors in a foreign market.
• Regulations: Requires adherence to supply chain regulations and may involve anti-trust considerations.

3. Cauvery body seeks Centre’s nod to conduct environment assessment

Sub: Geo

Sec: Indian physical geo  

Context:

• Karnataka’s Cauvery Neeravari Nigam Limited (CNNL) is seeking approval from the Union Ministry of Environment to proceed with an Environmental Impact assessment (EIA) and develop an Environment Management Plan for the Mekedatu balancing reservoir-cum-drinking water project.
• Tamil Nadu is opposed to the project.

About Mekedatu Project:

• It is a multi-purpose (drinking water and power) project proposed by Karnataka, which involves building a balancing reservoir near Kanakapura in Ramanagara district, Karnataka.
• It is about 90 km away from Bengaluru and 4 km ahead of the border with Tamil Nadu.
• The project is proposed at the confluence of the Cauvery River with its tributary Arkavathi.
• The plan involves building a 99-metre-high, 735-metre-long concrete gravity dam, an underground powerhouse, and a water conductor system.
• The capacity of the dam is 66,000 TMC (thousand million cubic feet) of water

River Cauvery (Kaveri):

• It is known as ‘Ponni’ in Tamil, and it is the fourth-largest river in southern India.
• It is a sacred river of southern India. It rises on Brahmagiri Hill of the Western Ghats in southwestern Karnataka state, flows in a southeasterly direction through the states of Karnataka and Tamil Nadu, and descends the Eastern Ghats in a series of great falls and drains into the Bay of Bengal through Pondicherry.
• Left Bank Tributary: Arkavathi, Hemavathi, Shimsa, and Harangi.
• Right Bank Tributary: Lakshmantirtha, Suvarnavati, Noyil, Bhavani, Kabini, and Amaravathi.

Source: TH

4. World’s second-largest diamond found in Botswana

Sub: Geo

Sec: Eco geo 

Context:

• A 2,492-carat rough diamond, the second-largest ever found, was unearthed in Botswana at the Karowe mine, owned by Canadian firm Lucara Diamond.
• It is the largest find since the 3,106-carat Cullinan diamond, discovered in South Africa in 1905, parts of which are in the British Crown Jewels.
• The diamond was detected using Lucara’s Mega Diamond Recovery X-ray technology, implemented in 2017 to prevent damage during ore-crushing processes.

Significance for Botswana:

• This diamond is the largest ever discovered in Botswana, surpassing a 1,758-carat stone found at the same mine in 2019.
• Botswana, one of the world’s largest diamond producers, accounts for about 20% of global diamond production.

About Diamond:

• A diamond is a rare, naturally occurring mineral made up of pure carbon. The word diamond comes from the Greek word Adamas, which means indestructible.
• Diamond occurs in two types of deposits, primarily in igneous rocks of basic or ultrabasic composition and in alluvial deposits derived from the primary sources.
• Major Diamond Producing Countries: Russia, Botswana, Canada, South Africa, Democratic Republic of the Congo.
• Russia is the world’s largest producer of rough diamonds.

Diamond Industry in India:

• India is the world’s largest cutting and polishing centre for diamonds, accounting for over 90% of polished diamond manufacturing globally.
• According to Indian Minerals Yearbook 2019, diamond fields of India are grouped into four regions:
  • Central Indian tract of Madhya Pradesh, comprising Panna belt.
  • South Indian tract of Andhra Pradesh, comprising parts of Anantapur, Kadapa, Guntur, Krishna, Mahabubnagar and Kurnool districts.
  • Behradin-Kodavali area in Raipur district and Tokapal, Dugapal, etc. areas in Bastar district of Chhattisgarh.
  • Eastern Indian tract mostly of Odisha, lying between Mahanadi and Godavari valleys.
• In 2022, India ranks first among the top exporters in cut & polished diamonds.

Source: BBC

5. What is ‘Rail Force One’, the train PM Modi took from Poland to Ukraine?

Sub: IR

Sec: Places in news 

Context:

• On August 23, Prime Minister Narendra Modi arrived in Kyiv, Ukraine, by train from Poland, a method used by global leaders since Ukraine’s airspace closed after Russia’s invasion in February 2022.

The “Rail Force One” Train:

• The train, operated by Ukrainian Railways (Ukrzaliznytsia), is painted in the colours of Ukraine’s flag and features luxury compartments with modern amenities, such as king-size beds and flat screen TVs.
• The journey spans 700 kilometres, taking approximately 10 hours from Przemyśl Główny station in Poland to Kyiv.
• The train has been used by several world leaders, including US President Joe Biden, French President Emmanuel Macron, and Canadian Prime Minister Justin Trudeau, earning the nickname “Rail Force One.”

Symbolism of ‘Iron Diplomacy’:

• Ukraine’s Strategic Industries Minister, Alexander Kamyshin, has referred to the leaders’ train trips using the hashtag #IronDiplomacy, highlighting the diplomatic significance of these journeys.

Importance of Trains in Ukraine:

• Ukraine’s railway network has been crucial in the war, transporting aid and facilitating evacuations.
• Trains became essential for Ukrainians fleeing the conflict, with overcrowded carriages reflecting the urgency of escape.
• The railways have been a vital part of Ukraine’s infrastructure, both before and during the war, and have served as a key element of the country’s public relations and morale-boosting efforts.

Source: IE

6. ‘Misleading, marketing gimmick’: FSSAI announces curbs on dairy products being labelled as A2

Sub: Sci

Sec: Food

Context:

• The Food Safety and Standards Authority of India (FSSAI) has labelled the marketing of dairy products as ‘A2’ as misleading, stating that it does not conform to the Food Safety and Standards Act, 2006.
• FSSAI has directed manufacturers to stop using the ‘A1’ and ‘A2’ classifications on their products and to remove such labels. Manufacturers have six months to sell off existing inventory with pre-printed labels.

WHAT DO A1 AND A2 MEAN?

• A1 and A2 are specific proteins found in cow’s milk, though in different proportions depending on the breed of cattle.
• Casein is the most abundant protein in milk, accounting for around 80% of its protein content.
• Milk contains various types of casein, with beta-casein being the second most common. This protein exists in at least 13 different forms.
  • A1 beta-casein: This is found predominantly in milk from cow breeds that originated in northern Europe, such as Holstein, Friesian, Ayrshire, and British Shorthorn.
  • A2 beta-casein: This is mostly present in milk from breeds native to the Channel Islands and southern France, including Guernsey, Jersey, Charolais, and Limousin cows.
• While regular milk contains both A1 and A2 beta-casein, A2 milk is unique in that it contains only the A2 variant.
• In 2000, a milk company called a2 Corporation patented a genetic method for identifying cattle that would produce A2 milk.
• Market Impact:
  • The distinction between ‘A1’ and ‘A2’ dairy products is based on the structure of a protein called beta casein, but FSSAI suggests this difference does not justify the marketing claims.
  • Beta-casomorphin-7 (BCM-7) is a peptide released in the stomach during the digestion of A1 beta-casein. This is the reason some people believe that regular milk is less healthy than A2 milk.
  • Despite the FSSAI’s clarification, ghee labelled as ‘A2’ is widely available in the market, often at significantly higher prices, ranging from Rs 999 to Rs 2,790 per litre or kilogram.

International Perspectives:

• The European Food Safety Authority (EFSA) published a scientific review in 2009, stating there is no need to differentiate between ‘A1’ and ‘A2’ milk.
• The concept of ‘A2’ milk began with New Zealand’s a2 Corporation, but even the New Zealand Food Safety Authority emphasized that more research, particularly human trials, is needed to confirm any significant health differences between ‘A1’ and ‘A2’ milk.

Source: DTE

7. I&B Ministry to support finalists of audio-visual contest

Sub: Schemes

Sec: Msc

Context:

• The Union government will promote finalists of ‘Create in India Challenge-Season 1’ in the areas of animation, filmmaking, gaming, music, and visual arts, on global platforms, said the Information and Broadcasting Ministry.
• 25 events will be organised as part of ‘Create in India Challenge-Season 1’ of World Audio Visual & Entertainment Summit (WAVES).
• The first WAVES summit is to take place in Goa in November 2024.

About the initiative:

• I&B Ministry said it would give opportunities to all finalists of 25 events being organised this season to come together on the main WAVES platform and showcase their talent.
• They would also be able to participate in some of the biggest relevant platforms across the world.
• For instance, the winner in the animation filmmaking will be handheld to complete their project by tying up with some of the biggest production houses.
• Their final project will then be supported by the Ministry of I&B and taken to renowned festivals like Annecy animation film festival

About WAVES:

• It is an international summit organized by the Ministry of Information & Broadcasting.
• WAVES is a platform for collaboration, innovation, and discussions in the Media and Entertainment (M&E) industry.
• Its goals include boosting India’s creator economy, making India an attractive investment destination, and adapting to new industry trends.
• The initiative also aims to enhance India’s global presence in the M&E industry.
• It is supported by industry partners like the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Confederation of Indian Industries (CII).

Some of the challenges include:

• Battle of the Bands by Prasar Bharati: provides a platform for bands to experiment with combining modern music and traditional folk pieces.
• Symphony of India competition by Prasar Bharati will focus on skills of soloists and ensembles specialising in traditional Indian classical music.
• Animation Filmmakers competition: aims to provide participants with access to industry experts, mentorship, and networking opportunities.
• Anime Challenge: organised by the Media and Entertainment Association of India, includes various categories for participation, including Manga, Webtoon, and Anime.
• Game Jam: organised by the India Game Developer Conference (IGDC, aimed at igniting creativity and innovation in India’s burgeoning game development industry.

8. PM Wani revival: Trai proposes reduction in high Internet costs by telcos

Sub: Schemes

Sec: Awareness in IT

Context:

• The Telecom Regulatory Authority of India (TRAI) proposed reduction in broadband connection rates charged by telcos and Internet service providers (ISPs) from public data offices (PDOs) under the PM Wani programme.
• The proposal by TRAI, as part of the draft telecommunication tariff (70th Amendment) Order, 2024, aims at reviving the PM Wani programme.

Prime Minister Wi-Fi Access Network Interface (PM WANI) programme:

• The programme was launched by Department of Telecom in 2020 to democratise content distribution and broadband access at affordable rates through public WiFi hotspots.
• 4 elements of the Scheme:
  • Public Data Office (PDO): PDOs are local shops/ retailers, kiranawalas, storekeepers, etc that deploy public Wi-Fi hotspots and connect the last mile under the PM Wani programme.
  • Public Data Office Aggregator (PDOA): Entity that provides aggregation services, such as authorization and accounting, to PDOs, and facilitates them in providing services to the end users.
  • App Provider: App providers create mobile apps that help users find, register for, and connect to PM-WANI Wi-Fi hotspots.
  • Central Registry: The Centre for Development of Telematics manages the Central Registry, which keeps information about PDOs, PDOAs, and app providers.

Why does PM WANI need revival:

• The project did not take off as expected owing to the extremely high cost of connectivity charged by service providers from PDOs.
• Telcos and ISPs have been charging up to Rs 8 lakh a year from PDOs and public data office aggregators (PDOAs) for supplying Internet-leased lines, whereas broadband for personal use comes at rates starting at as low as Rs 300-400 a month.

Status of Wi-Fi hotspots under PM WANI:

• There are 207,642 deployed PM-Wani Wi-Fi hotspots in the country and 199 PDOAs and 111 app providers as of June 2024.
• This is below the target set by National Digital Communications Policy, 2018 to enable deployment of 5 million public Wi-Fi hotspots by 2020 and 10 million by December 2025.
• Also, Bharat 6G Vision has set the goal of 50 million public WiFi hotspots by 2030.

About TRAI:

• TRAI was established in 1997 by the Telecom Regulatory Authority of India Act, 1997 to regulate telecom services, including fixation/revision of tariffs for telecom services.
• It provides a fair and transparent policy environment which promotes a level playing field and facilitates fair competition.
• The TRAI consists of a chairperson, two whole-time members and two part-time members, all of which are appointed by the Government of India.
• Its headquarters is located in New Delhi.

9. Implement school safety guidelines, Centre tells States

Sub: Polity

Sec: Legislation in news

Context:

• In view of protests over the alleged sexual assault of two four-year-old girls at a school in Badlapur near Mumbai, the Union Education Ministry has directed all States and Union Territories to implement its guidelines to ensure safety and security of children in schools.
• The Ministry has also asked States and UTs to inform the status of notification of the guidelines that it had issued in 2021 in accordance with the POCSO Act.

 Guidelines on School Safety and Security

• It is a set of guidelines issued by Education ministry to fix accountability on the school management in matters of safety and security of children studying in government, government-aided and private schools. 
• They help in keeping children safe and secure in schools, and when they use school transport to commute to and from schools.
• The guidelines cover preventive education, accountability of various stakeholders, reporting procedure, legal provisions, support and counselling, and safe environment.
• It emphasizes ‘Zero Tolerance Policy’ against any negligence on the part of any individual or management when it comes to the safety and security of children in schools
• States and UTs were informed that they may incorporate additions/modifications to these guidelines, if deemed necessary.

Significance

• It makes different stakeholders aware about the acts, policies, procedures and guidelines already available on different aspects of safety and security – physical, socio-emotional, cognitive and specific to natural disasters as well.
• The guidelines focus on responsibility and early risk management which can contribute to minimization of safety issues.

10. India’s Space Sector Contributes ₹20000 Crore to GDP Over the Last Decade

Sub: Sci

Sec: Space sector

Why This Article Is in the News

India’s space sector has garnered significant attention due to its substantial contributions to the national economy, as highlighted during the National Space Day ( 23^rd Aug) celebrations. The event marked the first anniversary of Chandrayaan-3’s successful landing. Also, India’s approach to international collaboration in space research, particularly with China, has drawn attention following remarks made by ISRO officials during the National Space Day celebrations.

Economic Impact of the Space Sector

Over the past decade, India’s space sector has directly added approximately $24 billion (₹20,000 crore) to the country’s Gross Domestic Product (GDP). The sector also supported 96,000 jobs across both public and private sectors.

Productivity and Multiplier Effect

For every dollar generated by the space sector, there was a multiplier effect of $2.54 on the Indian economy. Furthermore, India’s space workforce has proven to be 2.5 times more productive than the broader industrial workforce in the country.

These findings were presented by Steve Bochinger, Affiliate Executive Adviser at Novaspace, a European consultancy, during the Space Day event. The study, commissioned by the Indian Space Research Organisation (ISRO), aimed to assess the socio-economic impact of the space sector from 2014 to 2023. The research was conducted by Indian firms econONE and Novaspace, involving interviews with representatives from 56 organizations across public and private sectors.

Strategic Stance on Collaborations and Future Missions

India’s Current Position on Collaborating with China

India’s space agency, ISRO, has indicated that it will consider collaborating with China on space research only if a need arises. ISRO Chairman S. Somanath and Minister of State for Space, Jitendra Singh, both emphasized that India is currently focusing on developing its own capabilities and does not see an immediate requirement for such collaboration.

Future Missions: Chandrayaan-4 and Technological Advancements

India’s upcoming Chandrayaan-4 mission, planned before 2030, aims to bring lunar soil samples back to Earth. This mission will be a significant demonstration of ISRO’s technological capabilities, including the ability to launch a rocket from another celestial body. The mission will showcase India’s growing competence in space exploration.

China’s Recent Achievements and Global Invitations

China’s recent success with the Chang’e 6 mission, which brought back lunar soil and rock samples from the moon’s far side, highlights its advancements in space exploration. China has invited global scientists to collaborate on studying these samples, but India is currently prioritizing its indigenous development and will only consider external collaboration if necessary.

11. Tanager-1: NASA’s New Satellite for Tracking Methane Emissions

Sub: Sci

Sec: Space sector

NASA, in collaboration with several organizations, has recently launched Tanager-1, a satellite designed to monitor methane and carbon dioxide emissions from space. This launch, which took place aboard a SpaceX Falcon 9 rocket, highlights the growing focus on tracking greenhouse gases to combat climate change.

Why is it in the News?

The launch of Tanager-1 follows the March debut of MethaneSAT, another satellite aimed at monitoring methane emissions. This development underscores the increasing importance of precise greenhouse gas tracking in addressing climate change. Tanager-1’s technology offers a new level of detail in measuring emissions, reflecting a significant advancement in environmental monitoring.

What is Tanager-1?

Tanager-1 is equipped with advanced imaging spectrometer technology developed at NASA’s Jet Propulsion Laboratory. This technology detects greenhouse gases by measuring the wavelengths of light reflected from Earth’s surface. Each gas absorbs specific wavelengths, creating unique spectral “fingerprints” that allow Tanager-1 to identify and quantify methane and carbon dioxide emissions.

Key Facts:

• Launch Date: Recent, aboard a SpaceX Falcon 9 rocket.
• Coverage: Scans 130,000 square kilometers of Earth’s surface daily.
• Capabilities: Measures emissions from individual facilities and equipment globally.
• Data Accessibility: Emission data will be publicly available online.

Purpose and Connection with Methane

The primary purpose of Tanager-1 is to enhance the detection and analysis of greenhouse gas emissions, particularly methane. By providing detailed data on gas plumes and their sources, the satellite aims to accelerate efforts to mitigate greenhouse gas emissions.

Methane is a potent greenhouse gas, significantly impacting global warming and air quality.

Methane and Climate Change

Methane is the second-largest contributor to global warming after carbon dioxide, responsible for about 30% of the Earth’s heating since the Industrial Revolution.

Over a 20-year period, methane is 80 times more effective at trapping heat than carbon dioxide. Additionally, methane contributes to ground-level ozone formation, which has severe health implications, including an estimated one million premature deaths annually.

Addressing methane emissions is critical, especially from fossil fuel operations, which account for approximately 40% of human-caused methane emissions. Monitoring and reducing these emissions is crucial for climate and public health.

12. NTCA’s Directive for Relocation of Forest Dwellers from Tiger Reserves: A Controversy

Sub: Env

Sec: Env legislation

Why This Article is in the News

The National Tiger Conservation Authority (NTCA) has recently mandated the relocation of nearly 4 lakh forest dwellers from 54 tiger reserves. This large-scale displacement is intended to ensure that Critical Tiger Habitats (CTHs) remain undisturbed for tiger conservation. The decision has sparked controversy due to its legal and ethical implications, particularly regarding the rights of the forest-dwelling communities.

NTCA’s Relocation Directive

Background and Scope

On June 19, 2024, the NTCA directed all 19 tiger-bearing states to prioritize the relocation of 89,800 families from 848 villages within CTHs. This would involve displacing around 4 lakh individuals, based on an average household size of 4.44. The relocation aims to preserve the integrity of the tiger habitats as mandated by Section 38V(4)(i) of the Wildlife Protection Act (WLPA) 1972.

Current Status

As of recent reports, 25,007 families have been relocated from 251 villages. The central Indian tribal belt, including states like Madhya Pradesh, Rajasthan, Maharashtra, and Chhattisgarh, is heavily affected due to its significant tribal population.

Legal and Procedural Concerns

Wildlife Protection Act and Forest Rights Act

The WLPA prohibits NTCA from interfering with local rights, particularly those of Scheduled Tribes. Similarly, the Forest Rights Act (FRA) requires the recognition and verification of forest rights before any relocation can occur. The NTCA’s directive is seen as conflicting with these legal provisions, raising concerns about its legality and the potential infringement on forest dwellers’ rights.

Historical Context and Issues

The process of establishing Tiger Reserves, which began under Project Tiger in 1973 and was formalized by the WLPA amendment in 2006, was intended to be democratic and scientific. However, the rapid notification of CTHs in 2007, with minimal adherence to legal requirements, has been criticized for its lack of transparency and compliance with the law.

Critical Tiger habitat

• These are core areas of tiger reserves and are identified under the Wild Life Protection Act (WLPA), 1972 based on scientific evidence.
• Such areas are required to be kept as inviolate for the purpose of tiger conservation, without affecting the rights of the Scheduled Tribes or such other forest dwellers.
• The notification of CTH is done by the state government in consultation with the expert committee constituted for the purpose.

Critical Wildlife Habitat

• Critical ‘wildlife’ habitats (CWLHs), on the other hand, are defined only in the Forest Rights Act, 2006.
• CWLHs are meant to be areas of national parks and wildlife sanctuaries that are required to be kept as inviolate for the purpose of wildlife conservation (not just tigers).
• Similar to CTH, the identification of CWLH is done based on scientific and objective criteria, but it mandatorily requires settlement of forest rights under FRA.
• Unlike CTHs, the notification of CWLHs can only be done with the consent of the Gram Sabhas and affected stakeholders.
• Post notification, the forest rights in CWLHs can be modified or resettled subject to certain conditions.

Relocation and Rehabilitation

Compensation and Rights

The relocation is being conducted under the Revised Guidelines for Project Tiger, with families offered a compensation package of Rs 15 lakh. However, this amount is considered insufficient and does not fully address the requirements of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (LARR) 2013.

According to LARR, fair compensation and comprehensive resettlement plans should include land, housing, and essential services, which are currently lacking in the NTCA’s plan.

Community and Legal Implications

The relocation process has faced criticism for its inadequate consideration of affected communities’ rights and the failure to ensure necessary infrastructure and services at relocation sites.

The Gram Sabhas, which are responsible for managing forest and wildlife resources within their customary boundaries, are concerned about the disregard for legal protections and the potential adverse effects on both tigers and tribal communities.

The NTCA’s directive to relocate a substantial number of forest dwellers from tiger reserves highlights a critical intersection of wildlife conservation and human rights. While aimed at protecting tiger habitats, the implementation of this directive raises significant legal, ethical, and practical challenges that need to be addressed to ensure compliance with laws and protection of affected communities.

Wildlife Protection Act (WPA), 1972

• Objective: The WPA aims to protect wildlife and their habitats, and prevent poaching and illegal trade of wildlife.
• Key Provisions:
  • Scheduled Species: The Act lists protected species in Schedules I-IV, with varying degrees of protection.
  • Protected Areas: Provisions for the creation of National Parks, Wildlife Sanctuaries, and Closed Areas.
  • Wildlife Crime: Defines offenses related to wildlife and stipulates penalties for violations.
  • Conservation Efforts: Establishes mechanisms for wildlife conservation and management, including the formation of State Wildlife Advisory Boards.
• Recent Amendments: Amendments to strengthen conservation measures, such as increased penalties for wildlife crimes.

 National Tiger Conservation Authority (NTCA)

• Establishment: Formed in 2005 under the Ministry of Environment, Forest and Climate Change (MoEFCC).
• Mandate: Responsible for implementing Project Tiger and overseeing tiger conservation efforts across India.
• Functions:
  • Policy and Planning: Formulates and implements policies for tiger conservation.
  • Monitoring and Evaluation: Monitors the status of tiger populations and the effectiveness of conservation programs.
  • Coordination: Coordinates with state governments and other agencies for tiger reserve management.
• Key Programs:
  • Tiger Reserves: Designates and manages Tiger Reserves across India.
  • Conservation Plans: Develops and updates Tiger Conservation Plans for each reserve.

Tigers in India

• Current Population: Estimated between 3,167 and 3,925 tigers as of recent surveys.
• Habitat: Tigers are found in various states, primarily in central and northern India, including key reserves such as Ranthambore, Kanha, Bandhavgarh, and Jim Corbett.
• Conservation Status: Classified as Endangered by the International Union for Conservation of Nature (IUCN). India is home to about 70% of the world’s tiger population.
• Major Threats:
  • Habitat Loss: Deforestation and encroachment reduce available tiger habitat.
  • Poaching: Illegal hunting for tiger parts and prey.
  • Human-Wildlife Conflict: Encroachment leads to conflicts with local communities.
• Conservation Efforts:
  • Project Tiger: Launched in 1973 to create Tiger Reserves and protect tiger habitats.
  • Protected Areas: Establishment of National Parks and Wildlife Sanctuaries.
  • Anti-Poaching Measures: Enhanced patrolling and legal measures to curb poaching.

13. Supreme Court Clarifies Parliament’s Role in CAG Report Scrutiny

Sub: Polity

Sec: National body

Context:

The Supreme Court recently quashed charges against a Karnataka-based private firm accused of the illegal sale of coal rejects, highlighting that reports from the Comptroller and Auditor General (CAG) are subject to scrutiny by Parliament. The case involved a report by the CAG that led to a Central Bureau of Investigation (CBI) inquiry before the report had been reviewed and finalized by Parliament.

Issue Overview: CAG Report and Illegal Coal Sale Allegations

The case revolves around a Joint Venture Agreement (JVA) between Karnataka Power Corporation Limited (KPCL) and Eastern Mineral and Trading Agency (EMTA) for coal mining and supply. Disputes arose over the washing and disposal of coal rejects, with allegations that coal worth ₹52.37 crore was misappropriated. The CAG’s report, which had yet to be scrutinized by Parliament, prompted the CBI to initiate an inquiry, resulting in charges against the firm involved.

Supreme Court’s Stance

• The Supreme Court ruled that the CBI’s inquiry was premature, as it was based on a CAG report that had not attained finality through parliamentary scrutiny.
• The Court emphasized that while the CAG is an independent constitutional body, its reports must be reviewed by Parliament, which may accept, reject, or partially accept the findings.
• The Court noted that the CAG’s observations could not be deemed conclusive until Parliament had the opportunity to review the report and related recommendations.

Constitutional Context and Legal Implications

• Under Article 151 of the Constitution, CAG reports are submitted to the President or Governor, who then present them to Parliament or the state legislature.
• These reports are examined by the Public Accounts Committee (PAC), which considers responses from relevant ministries before making recommendations to Parliament.
• The Supreme Court’s ruling reinforces the need for this legislative scrutiny to occur before any legal actions are based on CAG findings.

Implications for Future Cases

This ruling underscore the importance of parliamentary procedures in validating CAG reports before they are used in legal investigations or prosecutions.

It also serves as a reminder of the checks and balances inherent in India’s constitutional framework, ensuring that independent reports like those from the CAG undergo thorough review before influencing judicial proceedings.