Daily Prelims Notes 5 April 2024

April 5, 2024
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

5 April 2024

Table Of Contents

1. Army inducts indigenous Akashteer system

Subject: Science and tech

Section: Defence

Context:

The Army has started the induction of control and reporting systems under ‘Project Akashdeep’ to bolster its air defense capabilities.

More on news:

The deployment of the systems began with flagging off of the first batch of Control Centres from BEL Ghaziabad.
With 2024 designated as the ‘Year of Tech Absorption’, induction of Akashteer Control Centres will meet the current and futuristic requirements of complex air defense operations.

About Akashteer Project:

Developed by Bharat Electronics Limited (BEL), the project is aimed at significantly enhancing the operational efficiency and integration of the Army’s air defense mechanisms.
The Akashteer Project is a cutting-edge initiative designed to automate air defense control and reporting processes by digitizing the entire process.
Akashteer aims to revolutionize air defense operations by seamlessly integrating radar and communication systems at all levels into a unified network.

2. New map of universe may open a window to dark energy

Subject: Science and tech

Sec: Space

Context:

An international team of researchers has just released the most comprehensive “three-dimensional” map of the universe, which could reveal some clues about dark energy.

More on news:

The researchers have published its findings from the first year of observations by the Dark Energy Spectroscopic Instrument, or DESI, a unique piece of equipment that, once fitted over a telescope, can capture light from 5,000 galaxies at the same time.

About Dark Energy Spectroscopic Instrument (DESI):

Using DESI, which is mounted over the Mayall 4-Meter Telescope in Arizona, United States, researchers have been able to measure light from six million galaxies-some of which existed as far back as 11 billion years ago.
It aims to prepare the most detailed map of the universe as yet with very precise information about the distances between these galaxies.
The key thing is that we have been able to measure the distances between these galaxies with a very high degree of accuracy.
DESI is a collaboration of more than 900 researchers in institutions across the world.
From India, TIFR is the only participating institution.

About Dark Energy:

The hypothesis of dark energy comes mainly from the observed phenomenon of the universe expanding at a rapid rate.
The vast empty spaces between stars and galaxies have been measured to be expanding at an accelerating pace, despite the countervailing force of gravitation that has the effect of pulling things together.
It can reveal new fundamental forces at work, and could unravel our entire knowledge of the physical world.

3. Govt. hikes prices of essential medicines again, claims ‘it’s miniscule’

Subject: Schemes

Sec: Health

Context:

The National Pharmaceutical Pricing Authority (NPPA) implemented a slight increase of 0.00551 per cent in the Maximum Retail Price (MRP) of scheduled drug formulations for the fiscal year 2024–25, starting from April 1.

Details:

The adjustments aim to balance the cost of essential medicines with economic indicators, ensuring affordability while maintaining a stable pharmaceutical market.
This adjustment was made for 923 scheduled drug formulations and 65 retail formulations, as per the annual price revision based on the change in the Wholesale Price Index (WPI).
The adjustment reflects the annual change in the WPI during the calendar year 2023 compared to 2022, as reported by the office of the Economic Advisor, Department of Industry and Internal Trade, Ministry of Commerce and Industry.

Increase based on WPI:

Manufacturers are now permitted to adjust the Maximum Retail Price (MRP) of scheduled drug formulations in line with the recent Wholesale Price Index (WPI) change of 0.00551%, without needing prior government approval.
India regulates the prices of around 400 molecules and 960 formulations listed under the National List of Essential Medicines, and also monitors non-essential drug prices to prevent annual MRP increases exceeding 10%.
This policy, guided by the Drug Price Control Order (DPCO) of 2013, aligns price adjustments with WPI fluctuations.
The Health Ministry explained that the National Pharmaceutical Pricing Authority (NPPA) annually revises scheduled medicine prices based on WPI changes.

National Pharmaceutical Pricing Authority (NPPA):

The National Pharmaceutical Pricing Authority (NPPA), established by the Indian government in 1997 under the Ministry of Chemicals and Fertilizers, plays a crucial role in regulating drug prices.
It ensures that medicines are both accessible and affordable to the public, with the authority granted the power to mandate price increases of over 10% for drugs and devices listed on the National List of Essential Medicines (NLEM), all of which are under strict price regulation.
A notable shift in regulatory focus came with the introduction of the new National Pharmaceutical Pricing Policy in 2012 and the Drug Price Control Order (DPCO) in 2013.

National List of Essential Medicines:

The National List of Essential Medicines (NLEM) is a list released by the Ministry of Health and Family Welfare.
The medicines listed in the NLEM are sold below a price ceiling fixed by the National Pharmaceutical Pricing Authority (NPPA).
NPPA caps medicine prices and changes only based on wholesale price index-based inflation.
In India, it was framed on the lines of the Essential Medicines List (EML) released by the WHO.
The Ministry of Health and Family Welfare prepared and released the first National List of Essential Medicines of India in 1996 consisting of 279 medicines. This list was subsequently revised in 2003, 2011, 2015 and 2022.

Price hiked to save firms:

In a significant move in 2019, the National Pharmaceutical Pricing Authority (NPPA) leveraged its emergency powers to increase the ceiling prices of 21 essential drugs by 50%.
The Drug Price Control Order (DPCO) of 2013 permits an annual price adjustment for scheduled formulations in alignment with changes in the Wholesale Price Index (WPI).
Additionally, the NPPA sets the retail prices for new drugs for existing manufacturers of scheduled formulations under DPCO, 2013, aligning annual price increases with WPI revisions.
For non-scheduled formulations, manufacturers cannot increase the Maximum Retail Price (MRP) by more than 10% of the MRP from the preceding 12 months, with instances of overcharging being addressed by the NPPA as per DPCO 2013 provisions.

Dependence on China:

Despite India’s pharmaceutical industry being one of the most advanced among developing nations, ranking third globally in volume and 13th in value, it remains heavily reliant on China for bulk drugs and drug intermediates.
This dependency is significant, with about two-thirds of India’s total imports in this sector coming from China.
India has a significant role as a major exporter of bulk drugs, with the United States being the primary destination, followed by Brazil, Bangladesh, Turkey, China, the Netherlands, Nigeria, Vietnam, and Egypt.
India stands as a key supplier of bulk drugs to several developing countries, including Bangladesh, Nigeria, Vietnam, Egypt, Iran, and Pakistan, underscoring its substantial but complex position as both a major importer from China and a significant exporter, particularly to developing nations.

National List of Essential Medicines (NLEM)

The National List of Essential Medicines (NLEM) is a list released by the Ministry of Health and Family Welfare.
The medicines listed in the NLEM are sold below a price ceiling fixed by the National Pharmaceutical Pricing Authority (NPPA).
NPPA caps medicine prices and changes only based on wholesale price index-based inflation.
In India, it was framed on the lines of the Essential Medicines List (EML) released by the WHO.
The Ministry of Health and Family Welfare prepared and released the first National List of Essential Medicines of India in 1996 consisting of 279 medicines. This list was subsequently revised in 2003, 2011, 2015 and 2022.

Purpose:

Guide safe and effective treatment of priority disease conditions of a population.
Promote the rational use of medicines.
Optimize the available health resources of a country. It can also be a guiding document for:
State governments to prepare their list of essential medicines
Procurement and supply of medicines in the public sector.

Criteria for a Medicine to be Included in NLEM

Several factors are looked at before including a drug in the NLEM. These are:
Essentiality: A medicine may be essential considering the population at large and should fit into the definition mentioned earlier.
Changing disease burden: With time, the disease burden keeps changing in the country. At one point, TB might be more important to tackle. At the next moment, another disease like Covid-19 may become more important. So, the prevalent disease is considered while preparing the list.
Efficacy and Safety: The medicine must have “unequivocal” evidence of efficacy and wider acceptance based on its safety to be included in the list.
Cost-Effectiveness: The total price of the treatment must be considered while including the drug in NLEM. Only unit price may not be the best benchmark for this.
Fixed Dose Combinations (FDCs): The single-dose medicines are considered for inclusion in NLEM. FDCs are only included if they have a proven advantage concerning the therapeutic effect.
Turnover: High sales turnover alone is not considered a good benchmark for inclusion in the NLEM. Other factors are also required to be essentially considered for it.

When is a Medicine Deleted from NLEM?

A drug is deleted from the list if it gets banned in India. Also, it is removed if reports of concerns about drug safety emerge.
If medicine with better efficacy or favourable safety profile and better cost-effectiveness is now available, then it is removed from NLEM.

Source: TH

4. Next generation of medics to lead the fightback against AMR

Subject: Science and tech

Sec: Health

Antibiotics and Anti-microbial Resistance (AMR):

The discovery of antibiotics in the 1920s significantly advanced the treatment and cure of previously fatal diseases.
Antibiotics are widely known for their ability to combat bacterial infections, but their over prescription and misuse in animal and poultry industries have led to a crisis of antibiotic resistance.
The burden of antimicrobial resistance (AMR) in India is due to factors such as high disease prevalence, inadequate infection prevention, a burdened public health system, easy antibiotic access without prescriptions, lack of effective surveillance for drug resistance, insufficient awareness, and limited diagnostic resources.

‘Prescriber Today, Steward Tomorrow’ initiative:

In response to the AMR challenge, the AMR Declaration Trust and Rotaract Medicrew have initiated a venture to integrate antimicrobial stewardship into medical education and practice, targeting future medical professionals.
This initiative, ‘Prescriber Today, Steward Tomorrow’, aims to infuse the medical curriculum with comprehensive training on AMR and antimicrobial stewardship (AMS), promoting the rational use of antibiotics and preparing medical students to address AMR effectively.
Early medical education is critical in fostering a future where antimicrobial stewardship is integral to healthcare.

Source: TH

5. India got Wadge Bank in exchange for Katchatheevu: Tamil Nadu Congress

Subject: Geography

Sec: Mapping

Context:

The India-Sri Lanka international maritime boundary line (IMBL) was delineated by a 1974 agreement demarcating it in the Palk Strait and another 1976 agreement demarcating it in the Gulf of Mannar and Bay of Bengal.

India got more out of the Palk Bay than Sri Lanka did:

The 1974 agreement between India and Sri Lanka allocated the Palk Bay area, which comprises 2,100 square nautical miles, in a ratio favouring India (1.02:1), giving India a slightly larger share than an equal division.
Despite conceding Katchatheevu Island to Sri Lanka, India secured significant benefits from the 1974 agreement, as outlined in a 2018 India Quarterly article by N Manoharan and Madhumati Deshpande.
Two clauses in the 1974 Agreement aimed to protect Indian fishermen’s interests:
- Article 5 allowed the use of Katchatheevu for drying nets and fish and for pilgrimage, while
- Article 6 ensured the free movement of vessels in Palk Bay.
The allowance for fishing by Indian fishermen in Sri Lankan waters was not specified in the 1974 Agreement, leading to issues for the Tamil Nadu fishing community regarding Katchatheevu.
It was the subsequent 1976 Agreement that explicitly prohibited Indian fishermen from fishing in Sri Lankan waters, further complicating the situation.

Wadge bank:

The Wadge Bank is a resource-rich area south of Kanyakumari, noted for deep-sea fishing grounds and other resources. Its size is estimated at 3,000 to 4,000 square miles, contrasting significantly with the 285-acre Katchatheevu Island.
Historically, the Wadge Bank was a major tropical trawl fishery site, with commercial fishing activities by Sri Lankan fishermen dating back to at least the 1920s. Between May and October, it is considered a rich fishing ground with favourable weather conditions for fishing compared to European waters.

India got ownership over Wadge Bank:

The 1976 India-Sri Lanka maritime boundary agreement acknowledges India’s sovereignty over the Wadge Bank, located near Cape Comorin within India’s exclusive economic zone (EEZ), granting India sovereign rights over its resources.
As a result of the agreement, Sri Lankan fishermen and vessels are currently barred from fishing in the Wadge Bank, with the pact also securing India’s rights to explore for petroleum and other minerals in the area.
Initiatives by the Ministry of Petroleum and Natural Gas to explore oil in the Wadge Bank have met with resistance from Kanyakumari residents.
The agreement allowed Sri Lankan fishermen access to the Wadge Bank for fishing for a limited three-year period, licensing only six Sri Lankan vessels to catch 2,000 tonnes of fish annually.
This was followed by a five-year grace period during which India would sell 2,000 tonnes of fish annually to Sri Lanka at a mutually agreed price.
Former High Commissioner of India to Sri Lanka, Ashok K Kantha, highlighted the significance of the 1974 and 1976 agreements as foundational for subsequent maritime boundary clarifications and agreements with Sri Lanka and the Maldives, emphasizing their role in building relations.

6. Basel III Endgame

Subject: Economy

Sec: Monetary Policy

Basel III Endgame: Overview:
- The U.S. Federal Reserve has announced significant changes to a proposal for stricter bank capital requirements known as the “Basel III endgame.”
What is Basel and Why is it Contentious:
- The Basel Committee on Banking Supervision, convened by the Bank for International Settlements (BIS) in Basel, Switzerland, aims to ensure global regulators apply similar minimum capital standards for banks.
- Basel III standards, agreed after the 2008 global financial crisis, include capital, leverage, and liquidity requirements.
- The “endgame,” agreed upon in 2017, represents the final iteration of Basel III standards.
Proposed Changes:
- The U.S. proposal focuses on overhauling how banks assess risk and determine capital requirements.
- Main areas of focus include credit risk, market risk, and operational risk.
Credit Risk:
- Regulators aim to end banks’ use of internal risk models for determining capital against lending activities like mortgages and corporate loans.
- Federal Reserve Vice Chair Michael Barr cites the potential for banks’ internal models to underestimate risk.
Market Risk:
- Proposed changes include establishing new requirements for banks to assess risks from market fluctuations and trading losses.
- Regulators suggest that current market risk assessments may be understated.
Operational Risk:
- A key new area of focus is operational risk, covering potential losses from internal policy failures, management errors, legal costs, or external events.
- Regulators aim to replace existing internal models with a standardized approach to calculate capital levels.
Industry Concerns:
- Banks argue that the proposed changes would lead to unnecessary capital burdens and could impact the economy.
- They have lobbied against the project, citing concerns about higher costs and potential limitations on fee income.
- Some banks fear disproportionately higher capital requirements due to the proposed changes.
Regulatory Response:
- Regulators counter that banks are well-capitalized and can raise funds by retaining earnings for a short period.
- The Fed and other regulators are expected to reduce the impact of the proposal in a significant rewrite.
- Fed Chair Jerome Powell confirmed the expectation of “broad, material” changes to the plan.

The “Basel III endgame” represents a culmination of efforts to strengthen bank capital requirements globally.

The U.S. proposal, part of this initiative, aims to revise how banks assess and manage risks. While regulators stress the need for a robust financial system, banks argue that the changes could impose undue burdens. The ongoing review and expected revisions highlight the contentious nature of these regulatory reforms.

Basel Norms Overview:

Basel norms, or Basel accords, are international banking regulations issued by the Basel Committee on Banking Supervision.
They aim to coordinate banking regulations globally to strengthen the international banking system.

Basel Committee on Banking Supervision (BCBS):

The BCBS is the primary global standard setter for the prudential regulation of banks.
It provides a forum for cooperation on banking supervisory matters among central banks of different countries.
Established by Central Bank governors of the Group of Ten countries in 1974.
Expanded membership in 2009 and 2014; now has 45 members from 28 jurisdictions.

Objectives:

Enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide.
Ensure regulators globally apply similar minimum capital standards for banks.

Need for Basel Norms:

Banks lend to various borrowers, each carrying its own risk.
Banks utilize public deposits and market-raised funds (equity and debt), exposing them to default risks.
Basel norms are designed to mitigate these risks by requiring banks to maintain a certain percentage of capital as security.

Why Basel:

Basel is a city in Switzerland, home to the Bank for International Settlements (BIS).
BIS fosters cooperation among central banks toward financial stability and common banking regulation standards.
Founded in 1930.

Types of Basel Norms:

Basel-I:

Introduced in 1988, focused mainly on credit risk.
Defined capital and risk weights for assets; set minimum capital requirement at 8% of risk-weighted assets (RWA).
Example: Assets backed by collateral had lower risk weights than unsecured personal loans.
India adopted Basel-I guidelines in 1999.

Basel-II:

Published in 2004, these were refined versions of Basel I.
Based on three pillars:
Capital Adequacy Requirements (minimum 8% of risk assets).
Supervisory Review (better risk management for credit, market, and operational risks).
Market Discipline (increased disclosure requirements).
Basel II norms are yet to be fully implemented in India and overseas.

Basel-III:

Released in 2010 after the 2008 financial crisis.
Aims to promote a resilient banking system focusing on four parameters:
Capital:
Capital Adequacy Ratio to be maintained at 12.9%.
Minimum Tier 1 and Tier 2 capital ratios of 10.5% and 2% of risk-weighted assets respectively.
Leverage:
Leverage ratio at least 3% (ratio of tier-1 capital to average total assets).
Funding and Liquidity:
Liquidity Coverage Ratio (LCR): Banks to hold a buffer of high-quality liquid assets for 30-day stress scenarios.
Net Stable Funding Ratio (NSFR): Banks to maintain stable funding for off-balance-sheet assets over a one-year horizon.

Basel norms are crucial for ensuring the stability and resilience of the international banking system. They require banks to maintain adequate capital, manage risks effectively, and enhance transparency through disclosures. The ongoing evolution from Basel-I to Basel-II and Basel-III reflects the continuous efforts to address the complexities and challenges in the banking sector.

7. RBI Directive for Currency Derivatives

Subject: Economy

Sec: Financial Market

RBI Directive for Currency Derivatives:
- Effective from April 5, all market participants, including Foreign Portfolio Investors (FPIs), must declare any underlying position in the currency derivatives market.
- This declaration is necessary even for a single lot, or else all positions must be squared-off.
- Previously, FPIs were allowed to participate in Exchange-Traded Currency Derivatives (ETCD) without establishing “underlying exposure” in equities, bonds, or other financial instruments.
- FPIs could take long or short positions in all currency pairs up to a limit of $100 million across all recognized stock exchanges.
Impact on FPIs:
- FPIs, along with other market participants, have been crucial in providing liquidity to ETCD contracts listed on exchanges.
- Some FPIs and foreign brokers, particularly those engaged in prop trading or high-frequency trading, may now need to square off positions by April 5.
- Failure to comply could result in penal action.
- Custodians handling trades for FPIs are seeking clarity from the RBI regarding this directive.
Concerns and Confusion:
- The FPI community is confused and uncertain about the necessary actions to take.
- Large hedge funds and quant-based funds, active in the ETCD market, may have significant positions that require attention.
- Lack of clarity has led to a situation where many market participants are considering squared-off positions before the deadline.
Market Outlook:
- The market anticipates a shift towards a landscape dominated by hedgers, including exporters, importers, and FPIs.
- Banks and brokers, traditionally market makers, might consider their position in light of the new directive.
- The circular raises concerns of a reduction in liquidity if banks and brokers withdraw from the market.
Risk Factors:
- FPIs’ positioning in the USD-INR pair typically leans towards being long (more foreign currency, less rupee).
- With positive FPI flows into India and a current account deficit, the risk is perceived as Indian currency depreciation.

ETD – Exchange Traded Derivative:

An Exchange Traded Derivative is a standardized financial contract traded on stock exchanges in a regulated manner.
These derivatives are subject to rules drafted by market regulators such as the Securities and Exchange Board of India (SEBI).

Derivatives Overview:

Derivatives are financial contracts deriving their values from price fluctuations of underlying assets like stocks, currency, bonds, commodities, etc.
There are essentially two types of derivatives:
Exchange Traded Derivatives (ETDs):

Subject to standardized terms and conditions.
Traded on stock exchanges.

Over the Counter (OTC) Derivative:

Traded between private counter-parties.
Transactions occur directly between parties without a formal intermediary.

ETD Characteristics:

ETDs are standardized, meaning they have pre-defined terms and conditions.
Traded on regulated exchanges, ensuring transparency and market oversight.
Buyers and sellers of ETDs do not need to know each other, as the exchange acts as the counter-party for both sides.
Prices and terms are publicly available and visible on the exchange, allowing for price discovery and market liquidity.
ETDs often include various financial instruments such as futures and options contracts.

Examples of ETDs:

Futures Contracts: Agreements to buy or sell an asset at a future date for a specified price.
Options Contracts: Contracts giving the buyer the right (but not the obligation) to buy or sell an asset at a set price within a specific time frame.

Exchange Traded Derivatives play a crucial role in financial markets, providing investors with opportunities for risk management, speculation, and portfolio diversification. Their standardized nature and regulated trading environment contribute to market efficiency and transparency.

8. How are symbols allotted to political parties?

Subject: Polity

Sec: Elections

The Election Symbols (Reservation and Allotment) Order, 1968 empowers the Election Commission to recognise political parties and allot symbols.
An electoral or election symbol is a standardized symbol allocated to a political party.
They are used by the parties during their campaigning and are shown on Electronic Voting Machines (EVMs), where the voter chooses the symbol and votes for the associated party.
They were introduced to facilitate voting by illiterate people, who can’t read the name of the party while casting their votes.
In the 1960s, it was proposed that the regulation, reservation and allotment of electoral symbols should be done through a law of Parliament, i.e. Symbol Order.
In a response to this proposal, the ECI stated that the recognition of political parties is supervised by the provisions of Election Symbols (Reservation and Allotment) Order, 1968 and so will the allotment of symbols.
The Election Commission registers political parties for the purpose of elections and grants them recognition as national or state parties on the basis of their poll performance. The other parties are simply declared as registered-unrecognised parties.
The recognition determines their right to certain privileges like allocation of the party symbols, provision of time for political broadcasts on television and radio stations and access to electoral rolls.
Every national party and every state party is allotted a symbol exclusively reserved for its use throughout the country and the states respectively.
A recognised political party has a reserved symbol that is not allotted to any other candidate in any constituency. For registered but unrecognised political parties, one of the free symbols is allotted as a common symbol during an election if that party contests in two Lok Sabha constituencies or in 5% of seats to the Assembly of a State as the case may be.

What is the current issue?

Rule 10B of the Symbols Order provides that the concession of a common free symbol shall be available to a ‘registered unrecognised party’ for two general elections. Furthermore, a party shall be eligible for a common symbol in any subsequent general election if it had secured at least 1% of votes polled in the State on the previous occasion when the party availed of this facility. Such an unrecognised party should however apply for a symbol every time in the prescribed format. This application can be made any time during the period commencing six months prior to the expiry of the term of the Lok Sabha or State Assembly as the case may be. The symbols are thereafter allotted on a ‘first-come-first-served’ basis.

In the above cases, the NTK had secured more than 1% of votes in the last two elections with the common symbol of ‘Ganna Kisan’. However, since they applied for that symbol only in February 2024, the ECI had allotted that symbol to Bharatiya Praja Aikyata Party (BPAP), that had applied earlier, based on the ‘first-come-first-served’ rule. However, the BPAP has not contested elections in Tamil Nadu before. The VCK was declined allotment of a common symbol as it had failed to secure 1% of votes polled in the elections to the State Legislative Assembly in 2021. The VCK notably has one Lok Sabha MP and four MLAs in Tamil Nadu contesting on the ‘Pot’ symbol in 2019 and 2021 elections.

What can be the way forward?

The ECI has decided on the applications of NTK and VCK as per existing rules. However, it is counter intuitive from a layman’s perspective that the NTK which secured more than 6% of votes polled is not allotted the previous common symbol of its choice. It would be equally baffling for an average voter that the VCK which has elected representatives is ineligible to obtain a common symbol. The two VCK candidates have been eventually allotted the free symbol of ‘Pot’ by the respective returning officers.

The existing threshold for recognition of a party may continue. The candidates set up by recognised parties enjoy the advantage of being listed at the top of the ballot in the Electronic Voting Machine. Nevertheless, the ECI may consider amending the rules that registered unrecognised parties that secure at least 1% of votes polled in a previous election or have an elected representative in the Lok Sabha or State Assembly, shall have the right to be allotted a common symbol of their choice. This would ensure a fair weightage being given for their past electoral performance and strengthen the democratic process.

Election Symbols (Reservation and Allotment) Order, 1968:

Under Paragraph 15 of the Order, EC can decide disputes among rival groups or sections of a recognised political party staking claim to its name and symbol.
The EC is the only authority to decide issues on a dispute or a merger under the order. The Supreme Court (SC) upheld its validity in Sadiq Ali and another vs. ECI in 1971.
This applies to disputes in recognised national and state parties.
For splits in registered but unrecognised parties, the EC usually advises the warring factions to resolve their differences internally or to approach the court.
In almost all disputes decided by the EC so far, a clear majority of party delegates/office bearers, MPs and MLAs have supported one of the factions.
Before 1968, the EC issued notifications and executive orders under the Conduct of Election Rules, 1961.
The splinter group of the party – other than the group that got the party symbol – had to register itself as a separate party.
They could lay claim to national or state party status only on the basis of its performance in state or central elections after registration.

How many types of symbols are there?

As per the Election Symbols (Reservation and Allotment) (Amendment) Order, 2017, party symbols are either:

Reserved: Eight national parties and 64 state parties across the country have “reserved” symbols.
Free: The Election Commission also has a pool of nearly 200 “free” symbols that are allotted to the thousands of unrecognised regional parties that pop up before elections.

Types of Election Symbols

Reserved and Free Symbols: Symbols can be either reserved, exclusively assigned to recognized political parties, or ‘free’ symbols that can be chosen by unrecognised registered parties’ candidates. Unrecognized parties are those that haven’t met the criteria for state party recognition.
Exclusive Symbols: Recognized national and state parties are granted exclusive symbols, signifying their established status.

Symbol Selection by Parties

Preference Lists: Unrecognized parties provide a list of ten preferred symbols from the free symbol pool.
Proposal of New Symbols: Parties can propose up to three new symbols for consideration, provided they do not resemble reserved or free symbols, carry religious or communal connotations, or depict birds or animals.
Common Symbol Assignment: The ECI may allot a proposed symbol as a common symbol for the party if it deems it suitable.