Windfall Gains Tax, Akal Takht and Cash Reserve Ratio

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Disaster and disaster management

What’s the ongoing story: When a fire at a government hospital killed 18 newborns in Jhansi last month, the headlines were all too familiar – a possible short circuit, a healthcare system operating beyond capacity, and high-level probes to fix responsibility.

Key Points to Ponder:

• Facts and Data’s given on Fire Safety in India by Ministry of Home Affairs, National Crime Records Bureau (NCRB) and India Risk Surveys-Know the facts

• Fire Services is a State subject or Concurrent Subject or Union Subject?

• What is the key to fire safety?

• National Building Code (NBC) of India, 2016 and Fire and Life Safety-Know the provisions

• Ministry of Urban Development, Model Building by Laws 2016 and Fire Safety-Connect the dot

• What National Disaster Management Authority (NDMA) says on Fire and Fire Safety?

• Supreme Court of India’s Guidelines on Fire Safety-Know in Detail

• What were the main causes of hospital fires in India as highlighted in the article?

• Analyse the role of government agencies in overseeing fire safety compliance in healthcare institutions.

• What impact do hospital fires have on public trust in healthcare systems?

• Critically analyze the fire safety norms for hospitals in India. Are they adequate?

• Discuss the recommendation of making fire NOCs mandatory for all healthcare institutions, regardless of size.

• How can policies be restructured to ensure accountability for fire-related fatalities in hospitals?

Key Takeaways:

• 11 prominent incidents examined over five years resulted in 107 deaths. Most fires occurred during the Covid-19 pandemic (2020-2022), which overstretched the healthcare system. These incidents are only a fraction of the 105 reported hospital fires between January 2020 and October 2024.

• Common Causes: At least 8 out of 11 fires were attributed to poor maintenance of electrical equipment. Lack of fire safety measures: Most hospitals lacked essentials like fire extinguishers, sprinklers, smoke alarms, and trained staff. Violations of building codes: Hospitals often operated in unauthorized or improperly modified structures, some regularized for a fee.

• Prolonged judicial process: Accused individuals, including hospital owners and doctors, were granted bail in almost all cases. 7 out of 11 court cases remain pending. Many accused have resumed medical practice or management roles. Minimal criminal action in government hospitals: For instance, in Maharashtra’s Bhandara district hospital, no criminal cases were filed.

• Neglect of safety protocols: Examples include outdated fire equipment, insufficient exits, and overcrowding. Gujarat’s Patel Welfare Hospital submitted false records of fire safety compliance. Maharashtra’s Ahmednagar Civil Hospital ignored recommendations for a firefighting system due to fund shortages. Fires caused by outdated or overused devices (e.g., ventilators and generators) were common.

• Regulatory lapses: Hospitals operated with expired or non-existent fire safety certificates. Some facilities, like Delhi’s Baby Care New Born Hospital, did not require a fire NOC under existing laws. Unauthorized structures were often regularized for a fee, increasing fire risks. Gujarat’s Shrey Hospital and Patel Welfare Hospital were cited for such practices. Authorities failed to monitor compliance or act against lapses, even after warnings or audits.

• Fires underscore the overburdened healthcare system and lack of preparedness during emergencies like the pandemic. Many incidents occurred in government-run hospitals with inadequate infrastructure and oversight. Calls for reforms, such as requiring fire NOCs for all hospitals, remain unimplemented in places like Delhi.

Do You Know:

• Fire safety in India is governed by a comprehensive framework of standards and regulations aimed at preventing and mitigating fire-related incidents. The primary guidelines are encapsulated in the National Building Code (NBC) of India, complemented by various initiatives undertaken by the government to enhance fire safety across the nation.

• The NBC, published by the Bureau of Indian Standards (BIS), serves as a foundational document providing guidelines for the design, construction, and maintenance of buildings to ensure safety, including fire safety measures. Part IV of the NBC specifically addresses ‘Fire and Life Safety,’ outlining requirements such as:
—Building Design and Materials: Recommendations on the use of fire-resistant materials and construction techniques to prevent the spread of fire.
—Fire Detection and Suppression Systems: Specifications for installing fire alarms, sprinkler systems, and other firefighting equipment.
—Means of Egress: Design criteria for safe evacuation routes, including the number and placement of exits, staircases, and signage.

• The latest edition, NBC 2016, incorporates modern advancements and lessons learned from past incidents to enhance fire safety protocols.

• Recognizing the critical importance of fire safety, the Indian government has implemented several measures:
—Model Fire Safety Bill 2019: Introduced to establish a uniform legal framework for fire safety across states, this bill emphasizes the maintenance and regulation of fire services. However, adoption has been inconsistent, with some states yet to implement its provisions.
—Scheme for Expansion and Modernization of Fire Services (2023-2026): Launched to strengthen state fire services, this scheme focuses on upgrading infrastructure, procuring modern equipment, and enhancing training programs for firefighters.
—Fire and Life Safety Guidelines (2020): Circulated by the Ministry of Health, these guidelines mandate third-party accreditation for fire safety and the creation of Fire Response Plans (FRP) in healthcare facilities to ensure preparedness against fire hazards

Other Important Articles Covering the same topic:

📍In Our Opinion: Frequent fire tragedies speak of criminal abdications, disrespect for sanctity of human life

Assam Govt bans beef at restaurants, gatherings

Syllabus:

Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Main Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

What’s the ongoing story: Assam Chief Minister Himanta Biswa Sarma announced a complete ban on the public consumption of beef in the state — including in restaurants and community gatherings.

Key Points to Ponder:

• What is Assam Cattle Preservation (Amendment) Act, 2021?

• Assam Cattle Preservation (Amendment) Act, 2021-Know key provisions

• Discuss the implications of banning public beef consumption in Assam on religious, cultural, and socio-political harmony in the state.

• Analyse the socio-cultural impact of the Assam government’s beef ban on minority communities, referencing population demographics from the 2011 Census.

• Examine the role of political rhetoric and legislation in shaping communal and electoral dynamics in Assam, with specific reference to the beef consumption debate.

• Evaluate the ethical considerations involved in balancing cultural sensitivities and individual freedoms when legislating bans like the prohibition of beef consumption.

• The consumption of beef and related laws often stir debates on personal freedoms and religious sentiments. Critically examine how such laws balance individual rights with community interests under the framework of the Indian Constitution.

Key Takeaways:

• According to the latest decision, beef cannot be served in any hotels, restaurant or community functions — whether religious or otherwise. According to the CM, provisions to this effect will be added to the existing Assam Cattle Preservation Act, 2021.

• The law in Assam currently bars the sale and purchase of beef and beef products in areas “predominantly inhabited by Hindu, Jain, Sikh and other non-beef eating communities”, or “within a radius of 5 km” of any temple or sattra (Vaishnavite monasteries).

• The Assam Cattle Preservation Act legislation was initially meant to be applicable to all cattle (cows, bulls, bullocks, buffaloes). Before it became a law, buffaloes were removed from the definition. While it prohibits slaughter of a cow under any circumstances, other cattle can be slaughtered subject to a “fit for slaughter” certificate.

• According to the 2011 Census, 34.22 percent of Assam’s population are Muslim while 3.74 percent are Christian.

Do You Know:

• Vaishnavism, particularly the Neo-Vaishnavism movement initiated by Srimanta Sankardeva in the 15th and 16th centuries, has significantly influenced Assam’s cultural and religious landscape. This movement emphasized devotion to Lord Krishna and advocated for a society free from caste distinctions and certain ritualistic practices. The establishment of sattras (Vaishnavite monasteries) became central to this religious and cultural renaissance.

• In contemporary times, the influence of Vaishnavism is evident in legislative measures such as the Assam Cattle Preservation Act of 2021. This Act prohibits the slaughter and sale of beef in areas predominantly inhabited by non-beef-eating communities, including Hindus, Jains, and Sikhs, and within a five-kilometer radius of temples or sattras. The inclusion of sattras in this legislation underscores the enduring impact of Vaishnavism on societal norms and legal frameworks in Assam.

Other Important Articles Covering the same topic:

📍Explained: The political significance of Assam’s Sattras

Previous Year UPSC Prelims Question Covering similar theme:
1.With reference to the famous Sattriya dance, consider the following statements: (2014)
1. Sattriya is a combination of music, dance and drama.
2. It is a centuries-old living tradition of Vaishnavities of Assam.
3. It is based on classical Ragas and Talas of devotional songs composed by Tulsidas, Kabir and Mirabai.
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3

IN PARLIAMENT

Railways (Amendment) Bill a move to privatisation, says Opp

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

What’s the ongoing story: Debating the Railways (Amendment) Bill 2024 in the Lok Sabha, Opposition members on Wednesday said that the Bill would have a negative impact on the autonomy of railways and that it increases the potential for its privatisation.

Key Points to Ponder:

• What is the Railways (Amendment) Bill 2024?

• Analyse the potential implications of the Railways (Amendment) Bill, 2024 on the autonomy and functioning of Indian Railways. Discuss whether these changes align with the objectives of improving efficiency and passenger amenities.

• The Railways (Amendment) Bill, 2024 has sparked debates on potential privatization of the Indian Railways. Critically assess the pros and cons of privatizing key sectors of public transportation like railways in a welfare-oriented state like India.

• The discontinuation of rail fare concessions for senior citizens, journalists, and SC/ST/OBC students has been criticized. Evaluate the social and economic impact of such decisions, particularly in the context of inclusive development.

• Opposition members suggested that an all-party consultation should have been conducted before introducing the Railways (Amendment) Bill, 2024. Discuss the importance of stakeholder consultation in drafting and passing significant legislative reforms.

• With rail accidents being a persistent concern, how can the government balance modernization, cost reduction, and safety in the Indian Railways system? Provide recommendations.

Key Takeaways:

• Moving the Bill, Union Railways Minister Ashwini Vaishnaw Wednesday said that the first passenger rail service in India was started in 1853, and in 1890, the Railways Act was enacted. The Railway Board Act was passed in 1905. Now the government has decided to merge the Indian Railways Board Act, 1905 with the Railways Act, 1989 into the one unified law — the Railways (Amendment) Bill, 2024.

• Congress MP Manoj Kumar said that this Bill, if passed, will have a negative impact on the autonomy of railways. This Bill also increases potential for privatisation, he said.

• Participating in the day-long debate on the Bill in the Lok Sabha, several opposition members, including NK Premachandran of the RSP, demanded that the government resume offering rail fare concessions to senior citizens.

Do You Know:

• The ‘Railways Act, 1989’ governs the functioning and administration of the Indian Railways, including provisions for organising the Railways into zones for administrative convenience. The ‘Indian Railway Board Act, 1905’ established the Railway Board as the central authority to oversee Indian Railways. Under this Act, the central government may delegate its powers and functions concerning Railways to the Board.

• On August 9, 2024, the ‘Railways (Amendment) Bill, 2024’ was introduced in the Lok Sabha. This Bill seeks to repeal the 1905 Act and integrate its provisions related to the Railway Board into the 1989 Act. According to the Bill’s Statement of Objects and Reasons, this move aims to streamline the legal framework and eliminate the need to refer to two separate laws.
Other Important Articles Covering the same topic:
📍The Railways (Amendment) Bill, 2024
Previous Year UPSC Prelims Question Covering similar theme:
2.With reference to bio-toilets used by the Indian Railways, consider the following statements: (2015)
1. The decomposition of human waste in the bio toilets is initiated by a fungal inoculum.
2. Ammonia and water vapour are the only end products in this decomposition which are released into the atmosphere.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

EXPRESS NETWORK

Two male cheetahs released back into the wild at Kuno

Syllabus:

Preliminary Examination: General issues on Environmental ecology, Bio-diversity and Climate Change

Mains Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: Project Cheetah, which saw the introduction of the African sub-species of the wild cat in India, completed two years on September 17.

Key Points to Ponder:

• Cheetah in India- Background

• Extinction of Cheetah from Indian Landscape-know the reasons

• Action Plan for Introduction of Cheetah in India-Important Highlights

• What is the Reintroduction of the cheetah in India plan?

• Map Work India-Kuno Palpur National Park (Madhya Pradesh)

• Discuss the significance of the Kuno Cheetah Reintroduction Project in restoring India’s ecological heritage.

• Highlight the challenges faced in reintroducing a species to its natural habitat and measures taken to mitigate these challenges.

• Evaluate the role of international collaborations and phased implementation in the success of wildlife reintroduction programs, using the Kuno Cheetah Project as a case study.

• Analyse the potential impact of co-predators like leopards on the reintroduction of cheetahs in Kuno National Park.

• Discuss how veterinary science, such as prophylactic vaccinations, plays a critical role in wildlife conservation projects. Illustrate with examples from the Kuno Cheetah Reintroduction Project.

• “Wildlife conservation can act as a catalyst for eco-tourism and local development.” Critically examine this statement in the context of the Kuno National Park and the Cheetah Project.

Key Takeaways:

• The ambitious project has two overarching objectives. First, to establish a stable, breeding population of cheetahs in central India. Two, to use cheetahs as an umbrella species to restore open natural ecosystems such as scrubs, savannahs, grasslands, and degraded forests.

• A deficit in the prey base is one of the biggest challenges facing the project. The project’s latest annual report has found that the density of chital, the primary prey for cheetahs (and leopards), has declined from 23.43 animals per sq km in 2021 to 17.5 animals per sq km in 2024. The current population of chital in Kuno National Park is about 6,700.

• The leopard population would need about 23,600 prey animals and cheetahs about 3,120 prey animals, annually. “With the current population of chital (6700), and other prey (about 100 ungulates), there is a huge deficit of prey in Kuno National Park,” Project Cheetah’s annual report said.

• The report has prescribed immediate intervention by way of prey augmentation at Kuno as well as Gandhi Sagar, the next home for cheetah translocation. According to Chellam, this reflects poorly on the project management given that in 2022, Kuno was specifically chosen due to its prey density. “What has happened to drastically change the ground situation in such a short period of time?”, he asked.

• Experiences from the project so far have shown that the free-ranging cheetahs often ventured far and wide, often crossing state boundaries or entering human habitats. An analysis of their movements using radio collars showed that Veera travelled a distance of 5.82 km daily, while Pawan travelled 4.75 km daily, on average. Veera often ventured into territorial forests outside the national park. These insights have brought into spotlight the interstate landscape conservation plans.

Do You Know:

• Cheetahs are among the oldest of the big cat species, with its ancestors going back about 8.5 million years. It is listed as “vulnerable” by the World Conservation Union (IUCN) Red List of Threatened Species. Two subspecies, the Asiatic cheetah and the Northwest African cheetah, are listed as “critically endangered”.

• Project Cheetah began with the intercontinental translocation of African cheetahs from Namibia and South Africa to the Kuno National Park in Madhya Pradesh. This translocation took place in two batches of eight and then 12 cheetahs.

• These cheetahs were initially kept in soft-release bomas, small enclosures inside the national park to get them adapted to the local environment. Although confined to an area of roughly 1 sq km, the cheetahs hunted live prey inside these bomas. While some cheetahs were later released in the wild, they were later brought back into the enclosures. Mating within the translocated cohort of cheetahs led to the birth of 17 cubs.

• Of the 20 translocated cheetahs, eight (40 per cent) have died due to a variety of reasons, from attacks during mating to septicaemia caused by tick infestation under the cheetahs’ radio collars. Of the 17 cubs, five (29 per cent) have also perished. As of today, 24 cheetahs (12 adults and cubs each) survive.

Other Important Articles Covering the same topic:

📍The 360° UPSC Debate: Project Cheetah — Is it problematic, or is it too early to judge?

Previous Year UPSC Prelims Question Covering similar theme:
3.Consider the following: (2012)
1. Black-necked crane
2. Cheetah
3. Flying squirrel
4. Snow leopard
Which of the above are naturally found in India?
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4

Under layers of soil, 80 sandstone pillars and a slice of Patna’s Mauryan-era past

Syllabus:

Preliminary Examination: History of India

Main Examination: General Studies I: Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to modern times.

What’s the ongoing story: Over the last few days, a rectangular patch of open ground at the Mauryan archaeological site of Kumhrar, a little over five km from the Patna railway station, has come alive with engineers and workers drawing circles on the ground with white powder.

Key Points to Ponder:

• Map Work-Kumhrar Site

• Discuss the significance of the 80-pillar hall at Kumhrar in understanding the architectural and cultural legacy of the Mauryan Empire.

• Critically examine the challenges faced by the Archaeological Survey of India in conserving ancient heritage sites like Kumhrar. Suggest measures to address these challenges.

• The reopening of the Kumhrar site is expected to boost tourism in the region. Analyze the potential benefits and challenges of promoting archaeological tourism in India.

• Examine the role of Pataliputra as a political and religious centre during the Mauryan Empire, with special reference to the third Buddhist Council.

• Evaluate the role of modern technology in preserving archaeological sites, citing the example of Kumhrar and the measures taken by the ASI.

• Discuss the administrative structure of the Mauryan Empire and its significance in the evolution of governance in ancient India.

• Analyse the economic policies of the Mauryan Empire with a focus on trade, taxation, and infrastructure development.

• Explain the contributions of the Mauryan Empire to Indian art and architecture, with special reference to the Ashokan pillars and stupas.

Key Takeaways:

• In 2004-2005, the Archaeological Survey of India (ASI) had covered up the area with soil after the rising water table submerged the pillar stumps. Now, 20 years later, the ASI has decided to uncover the pillars that are a key part of the evidence linking Pataliputra, the seat of the Mauryan empire, to present-day Patna.

• Historians believe that it was here, in this open-air hall, with its 80 pillars standing on a wooden floor and holding up a wooden ceiling, that Emperor Ashoka, who ruled between 268 and 280 BCE, called a decisive meeting of the third Buddhist Council to unify the faction-ridden Buddhist sangha.

• Bijoy Kumar Chaudhary, historian and former director of the Patna-based K P Jayaswal Research Institute that played a key role in excavating the pillars in the 1960s, said, “Though historians have not been conclusive about the exact time of construction of the 80-pillar hall, it surely belongs to the Mauryan period (321-185 BCE). King Ashoka is said to have called the third Buddhist Council here. Its reopening will surely evoke interest around the world and further establish and affirm the importance of Pataliputra as the seat of power of the great Mauryan empire.”

Do You Know:

• Chandragupta Maurya’s own achievements too, were very significant. He was the architect of an empire that controlled the plains of both the Indus and the Ganga, and which stretched until the eastern and western oceans. With Pataliputra at its imperial centre, the Mauryan Empire for the first time unified most of South Asia.

• Chandragupta laid the foundations of an extensive and efficient system of centralised administration and tax-collection that formed the bases of his empire. Trade and agriculture were reformed and regulated with the building of infrastructure and standardisation of weights and measures, and provisions were made for a large standing army.

• Chandragupta’s political mentor and chief adviser was Chanakya, also known as Kautilya and Vishnugupta, to whom is attributed the legendary Arthashastra, the pioneering Indian treatise on political science, statecraft, military strategy, and economy.

Other Important Articles Covering the same topic:

📍Alexander and Chandragupta Maurya: A short history of war, empire, and greatness

Practice UPSC Prelims Question Covering similar theme:
4. The third Buddhist Council, believed to have been held at the Kumhrar site, was convened by which ruler?
(a) Chandragupta Maurya
(b) Bindusara
(c) Ashoka
(d) Samudragupta

THE EDITORIAL PAGE

Don’t panic on population

Syllabus:

Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Main Examination: General Studies I: population and associated issues

What’s the ongoing story: Amitabh Kundu Writes: Demographic parameters have traditionally been considered as stable — unlike socioeconomic indicators, they change only in the long run. The narrative of the demographic dragon eating up all the benefits of development due to uncontrolled fertility has, however, changed within a decade into concerns that labour shortage could decelerate economic growth. 

Key Points to Ponder:

• Discuss the socioeconomic implications of achieving below-replacement fertility rates in India. Highlight the challenges and potential solutions for balancing population growth and economic development.

• Analyse the role of interstate migration in addressing regional labour shortages in India. What policy measures are required to facilitate labour mobility and reduce administrative barriers?

• Examine the concerns of southern states regarding political representation and fund allocation in the context of population weightage. Suggest alternate approaches to address these concerns.

• Critically evaluate the challenges posed by an ageing population in India. Suggest policy measures to improve healthcare, social security, and employment for the elderly.

• The demographic transition offers opportunities for increasing women’s workforce participation. Discuss the barriers and strategies for enhancing women’s role in the labour market in India.

• Compare India’s demographic trends with those of developed economies like Japan and South Korea. What lessons can India learn in terms of managing ageing populations and labour shortages?

• Discuss how urbanization trends can affect labour mobility and economic opportunities in India. What role does infrastructure play in ensuring equitable development?

• The article highlights the need for skill development among semi-employed and informal workers. Suggest strategies to integrate this workforce into modern manufacturing and service sectors.

Key Takeaways:

• Demographic parameters are traditionally stable, changing over the long term. The narrative around uncontrolled fertility has shifted to concerns about labour shortages potentially decelerating economic growth. India’s population is projected to cross 1.6 billion by 2060, making increased fertility politically contentious.

• RSS chief Mohan Bhagwat’s advocacy for three or more children per couple, drawing parallels with developed economies, is considered problematic for India. Increasing fertility through political exhortations is unlikely to work, particularly in states like Kerala, Karnataka, Tamil Nadu, and Punjab, where the TFR has fallen below 1.9.

• Labour shortages due to demographic transition can be addressed through interstate migration and targeted skill development. Simplifying migration procedures and removing barriers to interstate labour mobility, particularly those imposed during COVID-19, is essential. Improved working and living conditions for migrants can ensure balanced labour availability across regions.

• Fertility disparities across communities are diminishing. The TFR for Muslims, while higher than other groups, has seen a rapid decline. Educational, social, and economic policies could achieve parity in TFR among Muslims, Scheduled Castes, and Scheduled Tribes with other communities within two decades.

• Southern states face challenges in political representation and financial devolution due to declining population shares. Alternative methods focusing on administrative efficiency instead of population should be proposed to ensure fair representation.

• A sharp fertility decline and resultant labour shortages are unlikely in the near future. TFR in Kerala has marginally increased, and other states are stabilizing around the replacement level. Some districts will remain above replacement TFR until 2036.Labour shortages can be addressed through short- and long-term labour mobility mechanisms.

• Women’s work participation rates remain below those of most developing economies. Demographic transitions can open up opportunities for skill development and increased workforce participation among women.

• A significant segment of India’s workforce is stuck in low-productivity, informal activities. Economic growth in modern manufacturing and tertiary activities can facilitate a shift to more productive employment. The labour market stress can catalyse skill development among semi-employed and home-based workers.

Do You Know:

• Population issues are under discussion again with reports suggesting the possibility of the Census being carried out next year. The delimitation exercise for Parliamentary seats is likely to be conducted thereafter. The Chief Ministers of Andhra Pradesh and Tamil Nadu, possibly concerned about the likely reduction in representatives from their states to Parliament, have gone to the extent of saying that they would advise their people to have more children.

• Population plays an important role in determining the flow of resources from the Centre to the states. The Finance Commission, set up once in five years, decides the extent of the flow of resources and also how they are distributed among states. In deciding the allocation to states, population is one criterion.

• Another important response would be to seek accelerated economic growth in the states that have lagged behind. Several efforts are currently been made in this respect — the aspirational district initiative, for instance.

• Let us briefly look at India’s population scenario. Its population is expected to peak at about 170 crore around 2070 and decline thereafter. Population growth is often measured by the total fertility rate (TFR) which is the number of children a woman would have if she followed the current fertility pattern. India, as a whole, has reached a TFR of 2, just below the replacement fertility rate of 2.1 which means that a mother would be replaced by a daughter. Nearly two-thirds of the population resides in states that have replacement or lower fertility rate, while about a third reside in states that have higher than replacement-level fertility.

• TFR varies considerably among Indian states — from a low of 1.5 to 3.0 according to NFHS 5. There are two ways to reduce this divergence — increase TFR in the states where it is low and/or reduce TFR in the states where it is high. Any effort to raise the fertility rate of low TFR states is unwise. India, as a country, is overpopulated.

Other Important Articles Covering the same topic:

📍Why scrutiny of lower fertility rates isn’t the answer to the delimitation crisis

Practice UPSC Prelims Question Covering similar theme:
5. Which parameter is highlighted as causing disadvantage for southern states in fund allocation by the Finance Commission?
(a) Literacy rates
(b) Population weightage
(c) Industrial output
(d) Agricultural productivity

EXPLAINED

Windfall gains tax on oil put to rest: the move and its significance

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: The government on Monday (December 2) withdrew the windfall gains tax on domestic production of crude oil and export of diesel, petrol, and aviation turbine fuel (ATF), scrapping the levy that was introduced 30 months ago amid a surge in the prices of crude oil and key fuels in the international market in the wake of Russia’s invasion of Ukraine.

Key Points to Ponder:

• What was the windfall gains tax and why was it imposed?

• Discuss the rationale behind the introduction of the windfall gains tax in India and analyse the reasons for its withdrawal?

• Examine the impact of global energy crises, such as the Russia-Ukraine war, on India’s energy policies. How should India balance its energy security with the need for predictable taxation regimes?

• Analyse the contribution of windfall gains tax to India’s fiscal revenue. Was it an effective tool for revenue generation, and what alternatives could be explored?

• Explain how international events, such as the surge in crude oil prices, influence domestic policy decisions. Provide examples from the windfall gains tax regime in India.

Key Takeaways:

• The country’s oil industry was understood to have been against the windfall tax regime even when it was introduced. Those against the tax argued that it limited profitability of publicly listed companies, and created an environment that discouraged efforts to increase oil production in a country that depends on imports to meet over 85 per cent of its oil needs. The frequent review of the levies, it was argued, made the taxation unpredictable.

• The scrapping of the windfall gains tax may not have any notable impact on the financials of domestic oil producers like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL), and major fuel exporters like Reliance Industries (RIL) and Nayara Energy (NEL). It does, however, have value as a signal of reliable and predictable taxation.
—It also signals that the Indian government is now confident in the view that a hard-to-manage surge in oil and fuel prices and supply shocks are unlikely going forward.

Do You Know:

• “Windfall gains tax” was a term used to describe cesses under the ambit of central excise imposed on fuel exports and domestic crude oil production, to tax super-normal profits of fuel exporters and oil producers.

• In case of domestic crude oil and ATF exports, the windfall gains tax was in the form of Special Additional Excise Duty (SAED), while on diesel and petrol, it was a combination of SAED and Additional Excise Duty (AED), the latter also known as Road and Infrastructure Cess (RIC).

• The duties are reviewed every fortnight based on the movement in margins on fuels in the international market and global crude oil prices. In the first revision itself, the levy on petrol was reduced to nil and was not hiked since.

• These levies were first imposed on July 1, 2022, due to the surge in global oil and fuel prices in the aftermath of Russia’s invasion of Ukraine. As the price of crude oil produced in India is benchmarked to international prices, domestic oil prices also went through the roof.

Other Important Articles Covering the same topic:

📍Windfall tax on diesel, ATF fuel exports slashed again: How do current rates compare with initial levels?

Akal Takht and the SAD

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies I: Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to modern times.

What’s the ongoing story: President of the Shiromani Akali Dal (SAD) Sukhbir Singh Badal was shot at on Wednesday at the entrance to the Golden Temple where he was on guard duty.

Badal, who was on a wheelchair with his fractured right foot in a cast when the attacker approached him, was not hurt.

Key Points to Ponder:

• When and why was the Akal Takht established?

• How did the Akal Takht function after the passing of the tenth and last Guru, Guru Gobind Singh?

• How is the Jathedar (head) of the Akal Takht appointed?

• How does the Akal Takht hand out religious punishment?

• What is the relationship between the Shiromani Akali Dal (which Sukhbir Singh Badal leads), and the SGPC (which appoints the Akal Takht Jathedar)?

• How has SAD control over the SGPC impacted its relationship with the Akal Takht Jathedar?

Key Takeaways:

• The former Deputy Chief Minister of Punjab has been awarded religious punishment by the Akal Takht, the supreme temporal seat of the Sikhs, for the alleged misrule of the SAD government from 2007 to 2017.

• Other members of the then Cabinet are also performing atonement on the order of the Akal Takht by cleaning bathrooms and utensils, etc.

• As the head of the highest seat of temporal power of the Sikhs, the Jathedar of the Akal Takht is the supreme temporal and religious authority of the Sikhs, and the final word on the affairs of the community.

• The Jathedar must be baptised, possess deep knowledge of Sikh history and scriptures, and should be free from moral shortcomings.

• Any person who identifies as a Sikh can be summoned to the Akal Takht, tried, and sentenced. Dr Sarabjinder Singh, Dean, Guru Nanak Dev University and Jagat Guru Nanak Dev Punjab State Open University, said that the Akal Takht’s justice applies only to those who voluntarily submit to its authority.

Do You Know:

• The Akal Takht, which faces the Harmandir Sahib in the Golden Temple complex, was established by the sixth Sikh master Guru Hargobind in 1606 following the execution of his father, Guru Arjan Dev, by the Mughals.

• According to Sikh Studies scholar Amarjit Singh of Guru Nanak Dev University, Amritsar, Guru Hargobind used this platform for governance, and is believed to have issued the first directive (Hukamnama) from here, urging Sikh congregations to contribute horses and weapons to the Panth.

• The Guru is said to have requested two swords, symbolising miri (temporal power) and piri (spirituality). The sword representing miri was slightly shorter, indicating the primacy of spiritual authority over temporal power.

• The Akal Takht was also a symbol and representation of the Sikh defiance of Mughal authority. Historian Joginder Singh, a former professor at Guru Nanak Dev University, who has written extensively on Sikh history, noted that the 12-foot-high platform of the Akal Takht symbolised a challenge to the Mughal government in Agra (and later Delhi), where Emperor Jahangir (1605-27), on whose order Guru
Arjan Dev was executed, sat on an 11-foot-high throne, and forbade anyone else from doing so.

• The Akal Takht became the focal point for Sikhs during the difficult period following the execution of Banda Singh Bahadur, the general of the Khalsa army, in 1716, Prof Amarjit Singh said.

• As the Sikhs faced massive persecution from the Mughal state, members of the community would gather at the Akal Takht on Baisakhi and Diwali for Sarbat Khalsa assemblies where crucial decisions would be made.

• The tradition of the Sarbat Khalsa continued, and one of the last assemblies was convened by Maharaja Ranjit Singh (1801-39), the founder of the Sikh empire, in 1805 to deliberate on supporting the Maratha prince of Indore, Jaswant Rao Holkar, against the British.

Other Important Articles Covering the same topic:

📍The story of an hour, featuring Sukhbir Badal the guard at Golden Temple

Production cap, chemicals ban: Why global plastic treaty talks collapsed

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: The week-long global talks in Busan, South Korea, on curbing plastic pollution ended Sunday in failure to adopt a final legally binding treaty as countries could not reach an agreement on how to regulate plastic production.

Key Points to Ponder:

• Why did the talks fail?

• What does the treaty’s draft text say?

• What was India’s stance?

Key Takeaways:

• The main dispute was regarding the demand for production cap goals in the final treaty along with clear language on the elimination of certain plastic chemicals and products. This demand was mainly pushed by a coalition of more than 100 countries which includes African nations, Latin American nations and most of the European Union.

• However, a coalition of “like-minded countries” including Saudi Arabia, Kuwait, Russia, and Iran opposed the inclusion of provisions on plastic production cuts, arguing they were beyond the mandate of the 2022 resolution to end plastic pollution.

• The draft text reflected both points of consensus and contention. Points of consensus included proposing a ban on open dumping and open burning for sustainable waste management. The draft text also provided clear definitions of plastic and plastic products, but it did not reflect definitions of contentious issues such as microplastics, nano plastics, primary plastic polymers, and recycling.

• Despite a pushback from the Arab group of countries led by Saudi Arabia and Kuwait, the draft text included options to include a goal to reduce plastic after the treaty is finalised. References to single-use plastics and short-lived plastics were also included.

Do You Know:

• India’s stance and interventions centred on issues such as the varying responsibilities of countries in addressing plastic pollution, keeping in focus the right to development of countries and the need for the provision of technical and financial assistance to manage plastic waste. It also stressed that the scope of the treaty should be well-defined to not overlap with existing multilateral environmental agreements.

• India outlined its stance in the opening plenary. Its delegation said any legally binding treaty must recognise the need for support to developing countries through finance and technology transfer. At the outset it made clear it did not support any articles on “supply”, referring to the discussions surrounding curbing production. India said the sustainable level of production at a global or national level was not well-defined and may become a method for imposing a cap on the production of products, chemicals, or primary polymers.

Other Important Articles Covering the same topic:

📍Why the world needs a global plastic treaty

Previous Year UPSC Prelims Question Covering similar theme:
6. In India, ‘extend producer responsibility’ was introduced as an important feature in which of the following? (2019)
(a) The Bio-medical Waste (Management and Handling) Rules, 1998
(b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999
(c) The e-Waste (Management and Handling) Rules, 2011
(d) The Food Safety and Standard Regulations, 2011

ECONOMY

Will Reserve Bank go for a CRR cut?

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: The Reserve Bank of India’s three-day monetary policy review started on Wednesday (December 4). Although there seems to be a broad consensus that the repo rate — the rate at which RBI lends to other banks — is likely to remain unchanged at 6.5 per cent, there is an expectation that the central bank may announce a cut in the cash reserve ratio (CRR).

Key Points to Ponder:

• What is Cash Reserve Ratio?

• Will RBI announce a cut in CRR on December 6?

• What will be the impact of a CRR cut?

• When did the RBI last reduce the CRR?

Key Takeaways:

• The CRR is the percentage of a bank’s total deposits that it is required to maintain in liquid cash with the RBI as a reserve. The CRR percentage is determined by the RBI from time to time. At present, it is fixed at 4.5 per cent. Banks do not get any interest on this amount.

• While the RBI’s Monetary Policy Committee (MPC) decides on the repo rate and policy stance, the responsibility of liquidity measures lies solely with the RBI.

• The RBI may reduce the CRR either by 25 basis points (bps) or 50 bps, analysts said. One basis point is one-hundredth of a percentage point. This would be the first cut in the CRR in more than 4.5 years.

• The RBI has been selling dollars in the forex market to check the rupee volatility caused due to continued Foreign Portfolio Investors (FPI) selling and strengthening of the US dollar.

• Since October 1, the rupee has depreciated nearly 1 per cent against the dollar. The country’s forex reserves have fallen by nearly $45 billion between October 4 and November 22, on account of RBI’s intervention in the forex market to stabilise the rupee.

Do You Know:

• If RBI decides to cut the CRR by 50 bps, it would free up Rs 1.10 lakh crore to Rs 1.2 lakh crore of bank liquidity parked with the RBI. In case of a 25 bps reduction, Rs 55 crore to Rs 60 crore of additional funds will be available with banks.

• The surplus liquidity can be used by banks for lending, which would help spur economic growth.

• The Reserve Bank had last cut the CRR in March 2020 during Covid. It reduced the CRR from 4 per on March 28, 2020, after keeping it unchanged at 3 per cent for the previous seven years. Since March 2020, the CRR has been raised three times. It was last changed to 4.5 per cent on May 21, 2022.

Other Important Articles Covering the same topic:

📍Everyday Economics: What is the RBI’s MPC, and what does it do?

Previous Yea UPSC Prelims Question Covering similar theme:
7. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (2017)
1. It decides the RBI’s benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only

PRELIMS ANSWER KEY

1. (b)  2. (d) 3. (b) 4. (C) 5. (b) 6. (C) 7.(a)

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