Maratha Reservation Struck Down: SC

Why in News

Recently, the Supreme Court (SC) declared a Maharashtra law which provides reservation benefits to the Maratha community, taking the quota limit in the State in excess of 50%, as unconstitutional.

Key Points

• Background:
  
  • 2017: A 11-member commission headed by Retired Justice N G Gaikwad recommended Marathas should be given reservation under Socially and Educationally Backward Class (SEBC).
  • 2018: Maharashtra Assembly passed a Bill proposing 16% reservation for Maratha community.
  • 2018: The Bombay High Court while upholding the reservation pointed out that instead of 16% it should be reduced to 12% in education and 13%in jobs.
  • 2020: The SC stayed its implementation and referred the case to Chief Justice of India for a larger bench.
• Current Ruling:
  
  • Violation of Fundamental Rights:
    
    • A separate reservation for the Maratha community violates Articles 14 (right to equality) and 21 (due process of law).
    • Reservation breaching the 50% limit will create a society based on “caste rule”.
      
      • The Maratha reservation of 12% and 13% (in education and jobs) had increased the overall reservation ceiling to 64% and 65%, respectively.
      • In the Indira Sawhney judgment 1992, SC had categorically said 50% shall be the rule, only in certain exceptional and extraordinary situations for bringing far-flung and remote areas' population into mainstream said 50% rule can be relaxed.
  • No Further Benefits:
    
    • Appointments made under the Maratha quota following the Bombay High Court judgment endorsing the State law would hold, but they would get no further benefits.
  • Deprived States of the Power to Identify SEBCs:
    
    • There will only be a single list of SEBC with respect to each State and Union Territory notified by the President of India, and that States can only make recommendations for inclusion or exclusion, with any subsequent change to be made only by Parliament.
    • The Bench unanimously upheld the constitutional validity of the 102^nd Constitution Amendment but differed on the question whether it affected the power of states to identify SEBCs.
  • Direction to NCBC:
    
    • Asked the National Commission for Backward Classes (NCBC) to expedite the recommendation of SEBCs so that the President can publish the notification containing the list of SEBCs in relation to States and Union Territories expeditiously.

Source:TH

Waiving Intellectual Property Protection for Covid-19 Vaccines

Why in News

The United States has announced the support for waiving Intellectual Property (IP) protection for Covid-19 vaccines.

• The decision is a breakthrough in India and South Africa's attempts to get World Trade Organisation (WTO) member countries to agree to such a waiver to fight the pandemic equitably.

Key Points

• About:
  
  • The 1995 agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) requires ratifying countries to adopt a minimum standard of intellectual property rights to protect creators and promote innovation.
  • India and South Africa have proposed a waiver from the implementation and application of certain provisions of the TRIPS Agreement (waiving IP rights like patents, copyright, and trademarks) for prevention, containment or treatment of Covid-19.
  • If the waiver is granted, WTO member countries will not be under an obligation, for a temporary period, to either grant or enforce patents and other IP-related rights to Covid-19 drugs, vaccines, and other treatments.
    
    • This will immunise the measures adopted by countries to vaccinate their populations from claims of illegality under WTO law.
• Need to Waive Patents on Covid Vaccines:
  
  • Monopoly of Drug Companies: At present, only drug companies which own patents are authorised to manufacture Covid vaccines.
    
    • A lifting of patents will allow the formula to be shared with other companies.
  • Vaccine Cost: Once the formula is shared, any company which possesses the required technology and infrastructure can produce vaccines.
    
    • This will lead to cheaper and more generic versions of Covid vaccines and will be a big step in overcoming vaccine shortage.
  • Inequitable Distribution of Vaccines: This has opened up a glaring gap between developing and wealthier countries now.
    
    • The countries having surplus doses of vaccines have already vaccinated a considerable percentage of their population and are returning to normalcy.
    • Whereas, the poorer nations continue to face shortages, have overburdened healthcare systems and hundreds dying daily.
  • Against the Interests of the World: The longer Covid circulates in developing nations, there is a greater chance of more vaccine-resistant, deadly mutations of the virus emerging.
• Significance for India:
  
  • Help in Increasing Production: The bulk of the vaccine doses produced in India are taken up by foreign countries which could pay more for the doses.
    
    • This move can help scale up production to meet demand besides making the vaccines more affordable for everyone.
  • Preparation for the Third Wave: Indian authorities have stated that the third wave of the pandemic is inevitable.
    
    • Once the number of cases and deaths plateau, addressing shortages and making more affordable vaccines readily accessible could be the best way to prepare for the surge once again.
• Counter Arguments:
  
  • Vaccine Quality and Safety may get Compromised: Lifting of patents would be a compromise on control of safety and quality standards for vaccine manufacturing.
  • Disincentive Pharmaceutical Companies: Lifting of patents would be a huge deterrent to investing heavily on vaccine development during pandemics in the future.
  • Can Lead to Confusion: Eliminating those protections would undermine the global response to the pandemic, including ongoing effort to tackle new variants.
    
    • It will create confusion that could potentially undermine public confidence in vaccine safety, and create a barrier to information sharing.

Way Forward

• Waiving IP protections alone isn't enough to make vaccines available around the world. The countries must work with each other to expand manufacturing capabilities and support international vaccines.
• It’s important for both Indian manufacturers and the government to address concerns of patent holders to make sure that India’s vaccination drive is not compromised in any way.

Source: IE

RBI’s Measures to Fight Covid-Second Wave

Why in News

Recently, the Reserve Bank of India (RBI) announced a series of measures to support the nation’s fight against the second wave of Covid-19 infections.

• The measures form the first part of a calibrated and comprehensive strategy against the pandemic.
• Earlier in 2020 also the RBI took measures to help deal with the economic fall out of the pandemic.

Key Points

• Term Liquidity Facility for Supporting Healthcare Infrastructure:
  
  • Term Liquidity Facility of Rs. 50,000 crore with tenure of up to 3 years, at repo rate, to ease access to credit for providers of emergency health services.
  • Under the scheme, banks will provide fresh lending support to a wide range of entities, including vaccine manufacturers, importers/suppliers of vaccines and priority medical devices, hospitals/dispensaries, pathology labs, manufacturers and suppliers of oxygen and ventilators, and logistics firms.
  • These loans will continue to be classified under priority sector till repayment or maturity, whichever is earlier.
    
    • This lending facility will be available up to 31^st, March 2022.
• Special Long Term Repo Operations for Small Finance Banks:
  
  • RBI would conduct special three-year long-term repo operations (SLTRO) of Rs. 10,000 crore at repo rate for small finance banks (SFBs).
    
    • Long Term Repo Operation is a tool under which the central bank provides one-year to three-year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.
  • The SFBs would be able to deploy these funds for fresh lending of up to Rs. 10 lakh per borrower.
  • This is to provide further support to small business units, micro and small industries, and other unorganised sector entities adversely affected during the current wave of the pandemic.
• Priority Sector Lending:
  
  • Small Finance Banks (SFBs) are now permitted to regard fresh on-lending to Microfinance institutions (MFIs) with asset size up to Rs. 500 crore, as priority sector lending.
    
    • This facility will be available up to 31^st, March 2022.
• Credit flow to MSME Entrepreneurs:
  
  • To further incentivize inclusion of unbanked Micro, Small and Medium Enterprises (MSMEs) into banking system, exemption provided in February, 2021 wherein scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of Cash Reserve Ratio (CRR), is now extended to 31st December, 2021.
• Stress Resolution Framework 2.0:
  
  • This Framework is to relieve stress faced by most vulnerable categories of borrowers – namely individuals, borrowers and MSMEs.
  • Individuals, borrowers and MSMEs who have not availed any restructuring will be eligible to be considered under Resolution Framework 2.0.
  • For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, lending institutions can now extend residual tenure up to a total period of 2 years.
    
    • Lending institutions are now permitted to review working capital sanction limits, as a one-time measure.
• Floating Provisions and Countercyclical Provisioning Buffer:
  
  • In order to mitigate the pandemic related stress on banks and as a measure to enable capital conservation, banks are being allowed to utilise 100% of floating provisions held by them as 31^st December, 2020, for making specific provisions for Non-Performing Assets (NPAs).
  • Countercyclical provisioning buffers and floating provisions broadly refer to the specific amount that banks need to set aside in good times above the mandatory provisioning requirement as prescribed by RBI, these are used only in contingencies or extraordinary times of economic or system-wide downturns. Banks have started building such reserves since 2010.
• Relaxation of Overdraft Facility for States:
  
  • To enable the State governments to better manage their fiscal situation in terms of their cash flows and market borrowings, the maximum number of days of overdraft (OD) in a quarter is being increased from 36 to 50 days and the number of consecutive days of OD from 14 to 21 days.
    
    • This facility is available up to 30^th September, 2021.
    • Earlier, the Ways and Means Advance (WMA) limits of states were enhanced.
• Rationalization of Knowing Your Customer (KYC) Norms:
  
  • The RBI has also decided to extend the scope of video KYC (know-your-customer) or V-CIP (video-based customer identification process) for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of legal entities.

Way Forward

• In order to match the devastating speed of the virus, swift, wide-ranging, sequenced and well-timed actions which reach out to various sections, including the most vulnerable, have to be taken.
• India has mounted a valiant defence to ramp up vaccines and medical support while fighting rise in infections and mortalities in the second wave, after having flattened infections. Shoring up livelihoods and restoring normalcy in access to workplaces, education and incomes becomes an imperative in such a situation.

Source: PIB

Export of Organic Millets

Why in News

In a major boost to exports of organic products from the country, the first consignment of millets grown in the Himalayas would be exported to Denmark.

• APEDA (Agricultural and Processed Food Products Export Development Authority) has sourced ragi (finger millet), and jhingora (barnyard millet) from farmers in Uttarakhand for exports.
• At present, organic products are exported provided they are produced, processed, packed and labelled as per the requirements of the National Programme for Organic Production (NPOP).

Key Points

• National Programme for Organic Production (NPOP):
  
  • The NPOP has been implemented by APEDA since its inception in 2001 as notified under the Foreign Trade (Development and Regulations) Act, 1992.
  • NPOP covers standards for crops and their products, live stocks and poultry products, aquaculture, apiculture etc. The exports from the country are as per the provisions in NPOP.
  • The NPOP certification has been recognized by the European Union and Switzerland which enables India to export unprocessed plant products to these countries without the requirement of additional certification.
    
    • It also facilitates export of Indian organic products to the United Kingdom even in the post Brexit phase.
  • NPOP has also been recognized by the Food Safety Standard Authority of India (FSSAI) for trade of organic products in the domestic market.
  • Organic products covered under the bilateral agreement with NPOP need not to be recertified for import in India.
• Organic Farming:
  
  • According to FSSAI, ’organic farming’ is a system of farm design and management to create an ecosystem of agriculture production without the use of synthetic external inputs such as chemical fertilisers, pesticides and synthetic hormones or genetically modified organisms.
  • Related Initiatives:
    
    • Mission Organic Value Chain Development for North East Region (MOVCDNER).
    • Paramparagat Krishi Vikas Yojana (PKVY), etc.
  • The Indian state of Sikkim achieved the feat of being the world's first organic state and was awarded the UN Future Policy Gold Award 2018, also known as the Oscar for best policies.
• Status of India’s Export of Organic Food:
  
  • India’s export of organic food products rose by more than 51% to Rs. 7078 crore during April-February (2020-21) compared to the same period in the previous fiscal (2019-20). In terms of quantity, the exports of organic food products grew by 39%.
  • Oil cake meal is a major commodity of the organic product exports from the country followed by oil seeds, fruit pulps and purees, cereals & millets, spices, tea, medicinal plant products, dry fruits, sugar, pulses, coffee, essential oil etc.
  • India’s organic products have been exported to 58 countries including USA, European Union, Canada, Great Britain, Australia, Switzerland, Israel and South Korea.

Source: PIB

Model Insurance Villages

Why in News

The Insurance Regulatory and Development Authority of India (IRDAI) has mooted the concept of ‘Model Insurance Village (MIV)’ to boost insurance penetration in rural areas.

• According to the Economic Survey for 2020-21, India’s insurance penetration, which was at 2.71% in 2001, has steadily increased to 3.76% in 2019, but stayed much below the global average of 7.23%.
• Recently, the Parliament has passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%.

Key Points

• Concept of Model Insurance Village (MIV):
  
  • The idea is to offer comprehensive insurance protection to all the major insurable risks that villagers are exposed to and make available covers at affordable or subsidised cost.
  • In order to make the premium affordable, financial support needs to be explored through NABARD, other institutions, CSR (Corporate Social Responsibility) funds, government support and support from reinsurance companies.
  • It may be implemented in a minimum of 500 villages in different districts of the country in the first year and increased to 1,000 villages in the subsequent two years.
  • Every general insurance company and reinsurance company accepting general insurance business and having offices in India needs to be involved for piloting the concept.
• Possible Offerings under MIV:
  
  • Weather Index product or hybrid product combining weather index and indemnity-based insurance protection for various crops that remains uncovered under Pradhan Mantri Fasal Bima Yojna (PMFBY).
  • Flexible Farm Insurance Package Policies targeting comprehensive needs of crops, livestock, farmer, farm implements.
  • Separate products for high value agriculture, contract farming and corporate farming community as their needs are different.
  • States can be offered macro insurance covers based on predefined parametric weather indexes covering large complex risks arising out of natural catastrophes affecting the agriculture ecosystem and rural economy.
• Challenges in Spreading Insurance to Rural Areas:
  
  • Lack of awareness, limited choice of insurance products, absence of people-friendly and transparent claim settlement mechanisms, and weak network of insurance firms, are some of the issues and challenges in advancing growth of rural insurance business.

Source: IE

‘State of Working India 2021: One Year of Covid-­19’ Report

Why in News

A report titled ‘State of Working India 2021: One Year of Covid­19’ brought out annually by Azim Premji University’s Centre for Sustainable Employment, Bengaluru has been released.

• The report covers the period March 2020 to December 2020, dwells on the impact of one year of Covid­-19 on employment, incomes, inequality and poverty.

Key Points

• Impact on Employment:
  
  • 100 million jobs were lost during the April-May 2020 lockdown.
  • Though most of these workers had found employment by June 2020, about 15 million remained out of work.
• Impact on Income:
  
  • For an average household of four members, the monthly per capita income in October 2020 (Rs. 4,979) was still below its level in January 2020 (Rs. 5,989).
  • Monthly earnings of workers fell on an average by 17% during the pandemic, with self employed and informal salaried workers facing the highest loss of earnings.
• Informalisation:
  
  • Post-lockdown, nearly half of salaried workers had moved into informal work, either as self-employed (30%), casual wage (10%) or informal salaried (9%).
• Regressive Nature of Economic Impact:
  
  • The bottom 20% of households earned nothing in the months of April and May 2020.
  • On the other hand, the top 10% suffered the least during the lockdown, and only lost about 20% of their February income during the lockdown months.
• Disproportionate Impact on Women:
  
  • During the lockdown and in the post lockdown months, 61% of working men remained employed while 7% lost their job and did not return to work.
  • But in the case of women, only 19% remained employed while 47% suffered a permanent job loss, “not returning to work even by the end of 2020”.
• Increase in Poverty Rate:
  
  • The job loss and fall in earnings caused a large increase in poverty.
    
    • Households coped with the loss of income by decreasing their food intake, selling assets and borrowing informally from friends, relatives and money­lenders.
  • With 230 million falling below the national minimum wage threshold of Rs. 375 per day during the pandemic, poverty rate has “increased by 15 percentage points in rural and nearly 20 percentage points in urban areas”.

Suggestions

• As India confronts the second wave and what is possibly its worst humanitarian crisis in recent years, urgent policy measures are needed to support an already beleaguered population.
• The extra Public Distribution System (PDS) entitlements under Pradhan Mantri Garib Kalyan Yojana (PMGKY) need to be extended till the end of the year.
• Cash transfers of Rs. 5,000 for three months to as many vulnerable households as can be reached with the existing digital infrastructure, including but not limited to Jan Dhan accounts.
• MGNREGA (Mahatma National Gandhi Employment Guarantee Act) has played a vital role and its allocation needs to be expanded.
• A pilot urban employment programme can be launched in the worst hit districts, possibly focused on women workers.
• A Covid-19 hardship allowance of Rs. 30,000 (Rs.5,000 per month for six months) should be announced for 2.5 million Anganwadi and ASHA workers who have been at the frontlines of the grassroots fight against the virus.

Source: TH

SVAMITVA Scheme

Why in News

Recently, the Ministry of Panchayati Raj has released the new framework for implementation of the SVAMITVA Scheme.

• SVAMITVA stands for Survey of Villages and Mapping with Improvised Technology in Village Areas.

Key Points

• Launch: It is a center sector scheme which was launched nationally on the occasion of National Panchayati Raj Day on 24^th April 2021.
• Aim: To provide an integrated property validation solution for rural India.
• Features:
  
  • The demarcation of rural inhabited areas would be done using Drone survey and CORS (Continuously Operating Reference Stations) Networks which provides mapping accuracy of 5 cms.
    
    • This would provide the ‘record of rights’ to village household owners possessing houses in inhabited rural areas in villages.
  • It will cover around 6.62 Lakh villages of the entire country during 2021-2025.
• Objectives:
  
  • To bring financial stability to the citizens in rural India by enabling them to use their property as a financial asset for taking loans and other financial benefits.
  • Creation of accurate land records for rural planning.
  • Determination of property tax.
  • Creation of survey infrastructure and GIS (Geographic Information System) maps that can be leveraged by any department for their use.
  • To support in preparation of better-quality Gram Panchayat Development Plan (GPDP) by making use of GIS maps.
  • To reduce property related disputes and legal cases
• Nodal Ministry: Ministry of Panchayati Raj (MoPR)
  
  • Survey of India is a Technology Implementation Agency.

Source: PIB