(09 Sep, 2024)



Prime Minister's Visits to Singapore and Brunei Darussalam

For Prelims: Semiconductor,  India’s Semiconductor Mission, Green hydrogen, Global Biofuels Alliance, ASEAN-India Trade in Goods Agreement, Artificial Intelligence, Comprehensive Economic Cooperation Agreement, Foreign Direct Investment, East Asia Summit

For Mains: India’s Relations with Singapore, Importance of  Brunei for India’s Strategic Interests, Act East Policy, ASEAN-India Comprehensive Strategic Partnership

Source: HT

Why in News?

Recently, Prime Minister of India’s visits to Brunei Darussalam and Singapore have marked significant advancements in India's diplomatic and strategic engagements in Southeast Asia.

What are the Key Facts About Singapore and Brunei Darussalam?

  • Brunei Darussalam:
    • Location: Situated on the north-west of the island of Borneo. with a coastline of about 161-km along the South China Sea. It is bounded on the North by the South China Sea and on all the other sides by Malaysia.
    • Economy: Revenue is generated predominantly from crude oil and natural gas, with efforts towards economic diversification.
      • Third-largest oil producer in Southeast Asia; fourth-largest liquefied natural gas producer globally.
    • Brunei Darussalam's main exports consist of three major commodities - crude oil, petroleum products and liquefied natural gas - sold largely to Japan, the US and ASEAN countries.

  • Singapore:
    • Geography: Singapore is an island nation, consisting of one main island (Pulau Ujong) and 62 smaller islands. Its neighbors include Malaysia to the north and Indonesia to the south.
    • Historical Background:  Originally known as Tumasik, meaning "sea," the island was a key stop for traders. During the 14th century, Tumasik earned its new name, "Singapura" (meaning "The Lion City"). 
      • Singapore officially came under British rule in 1826. The Japanese took control of Singapore in 1942 during WW-II but handed back ownership to the British once they lost the war. 
      • In 1959, Singapore became self-governing, though Britain still controlled the country's military. The country finally gained full independence as the Republic of Singapore in 1965.
    • Government and Economy: Parliamentary republic. It is one of the strongest economies in Southeast Asia with significant sectors in banking and manufacturing. 

What were the Key Outcomes of PM’s Visit to Brunei Darussalam?

  • The PM visited the iconic Omar Ali Saifuddien Mosque in Bandar Seri Begawan, a symbol of Brunei’s Islamic heritage and is named after the 28th Sultan of Brunei.
  • India appreciated Brunei's support in hosting ISRO’s Telemetry Tracking and Telecommand (TTC) Station, with discussions on furthering cooperation under the renewed MoU.
  • Both nations underscored the importance of peaceful dispute resolution in the South China Sea in line with international law, particularly the UNCLOS 1982.
  • Both leaders stressed the urgent need to address climate change, with India supporting Brunei's efforts, including hosting the ASEAN Centre for Climate Change.
  • Earlier, India reduced its oil imports from Brunei in favor of Russian supplies. Now, discussions on long-term cooperation in liquefied natural gas (LNG) have been initiated.

What were the Key Outcomes of PM’s Visit to Singapore?

  • Semiconductor Ecosystem Partnership: An MoU was signed to develop a resilient semiconductor supply chain, marking a new area of bilateral cooperation. The MoU holds great geo-strategic significance due to the global importance of semiconductor chips in various technologies.
    • Singapore's semiconductor industry has been thriving since the 1970s, accounting for approximately 10% of global semiconductor output and 20% of semiconductor equipment production.
  • Comprehensive Strategic Partnership: India and Singapore have agreed to elevate their bilateral relationship to a 'Comprehensive Strategic Partnership,' broadening cooperation across various sectors. 
  • Cooperation in Sustainability: Both nations are set to collaborate on green hydrogen and ammonia projects, with a framework being developed to support these initiatives.
  • Digital Technologies: A MoU on digital technologies has been signed, aiming to deepen cooperation in data, AI, and cybersecurity. The establishment of a Cyber Policy Dialogue and the renewal of the MOU on Cybersecurity Cooperation are in progress.
  • Fintech Cooperation: India's UPI and Singapore's PayNow and TradeTrust initiative  are recognised for their role in facilitating paperless transactions and enhancing trade efficiencies.
  • Cultural Linkages: India also announced the upcoming inauguration of the Thiruvalluvar Cultural Centre in Singapore, celebrating the legacy of the Tamil saint Thiruvalluvar.
    • There is a mutual commitment to enhance cultural and people-to-people ties, recognizing the contributions of the Indian community in Singapore.

How are India’s Relations with Brunei Darussalam and Singapore?

  • Brunei Darussalam:
    • Political Relations: Diplomatic relations between India and Brunei Darussalam were established in 1984. Both nations share strong ties through cultural linkages and memberships in organizations like the United Nations, Non-Aligned Movement (NAM), Commonwealth, and ASEAN. 
      • The Sultan of Brunei, Sultan Haji Hassanal Bolkiah, is a strong advocate for close India-Brunei relations and has supported India’s 'Look East' and 'Act East' policies. 
      • Brunei has also supported India's international candidatures and played a key role in strengthening India-ASEAN relations as the ASEAN Country Coordinator from 2012 to 2015.
    • Commercial Relations: India’s main exports to Brunei include automobiles, transport equipment, rice, and spices. India is a major importer of crude oil from Brunei, with imports valued at approximately USD 500-600 million annually.
    • Indian Community:  The Indian diaspora in Brunei Darussalam spans well over decades, with the first arrivals in the 1930s with more than half being semi and unskilled workers in industries such as oil & gas, construction, and retail.
  • Singapore: 
    • Historical Connect: India and Singapore have deep historical ties spanning commerce, culture, and people-to-people connections over a millennium. 
      • The modern relationship traces back to Stamford Raffles (British East Indian administrator and founder of the port city of Singapore) establishing a trading post in Singapore in 1819, which later became a British colony governed from Kolkata until 1867
      • India was one of the first countries to recognise Singapore's independence in 1965.
    • Trade and Economic Cooperation:
      • Trade: Singapore is India's 6th largest trade partner, with a share of 3.2 % of India’s overall trade.
      • Investments: Since 2018-19, Singapore has been the largest contributor of FDI into India with top sectors being Services, Computer Software & Hardware, Trading, Telecommunications, and Drugs & Pharmaceuticals. 
      • Fintech: Commercial and technical arrangements have been made for RuPay card acceptance in Singapore. UPI-Paynow Linkage is a landmark cross-border Fintech development. 
        • Singapore is the first nation with which India has begun this cross-border Person-to-Person (P2P) payment facility.
    • Science and Technology Cooperation: The  ISRO has launched several Singaporean satellites, including Singapore's first indigenous built micro-satellite in 2011
    • Multilateral Cooperation: Singapore has joined the International Solar Alliance and Global Bio-fuel Alliance. The two are also part of multilateral groups like Indian Ocean Rim Association (IORA)
    • Indian Community: Ethnic Indians make up about 9.1% of Singapore's 3.9 million residents. Tamil is one of the four official languages of Singapore.

What is the Importance of Southeast Asian Countries for India’s Strategic Interests?

  • Act East Policy: PM’s visit to  Southeast Asian countries, aligns with India’s broader Act East Policy which seeks to strengthen ties with ASEAN countries and enhance India’s strategic footprint in Southeast Asia.
    • India is deepening its defense relationships in Southeast Asia, exemplified by agreements with the Philippines and collaborations with other nations like Vietnam and Indonesia
  • Geostrategic Location: Southeast Asia sits at a pivotal juncture in the Indo-Pacific region, a major hub for maritime trade routes like Maritime Silk Road. This strategic location is vital for India’s vision of a free, open, and inclusive Indo-Pacific.
  • Counterbalancing China: The region’s proximity to China makes it crucial for India’s efforts to counterbalance China's growing influence. Strengthening ties with Southeast Asian countries helps India maintain a strategic edge and support regional stability.
  • Economic Interests: Southeast Asia is home to some of the world’s fastest-growing economies (Malaysia, the Philippines, Thailand, and Vietnam), the region presents substantial economic opportunities for India.
  • Challenges Faced by India Face in SE Asia:
    • China’s assertive policies in the South China Sea complicate India’s efforts to promote regional stability and secure maritime routes critical for its trade.
    • China's proximity and economic power give it a natural advantage, making it challenging for India to match its influence in Southeast Asia.
    • SE Asia's political landscape is diverse, with varying degrees of alignment and resistance to China's influence, making a one-size-fits-all approach difficult for India.
    • While India is working on improving connectivity with Southeast Asia, existing infrastructure remains underdeveloped, hampering trade and people-to-people connections.

Way Forward

  • India shall enhance digital connectivity with SE Asia to boost collaboration in e-commerce, and fintech. India shall leverage its Information technology (IT) strengths to establish it as a regional technology hub, offering expertise in software, IT services, and digital innovation. 
  • India’s focus should be on diversifying supply chains to reduce reliance on China, promoting regional value chains to boost trade and investment  for greater economic resilience and integration.
  • Enhancing maritime security cooperation to address common threats like Maritime piracy, illegal fishing, and maritime terrorism.
  • India can consider developing a Maritime Southeast Asia–India Economic Corridor, to counter China’s BRI to enhance connectivity and cooperation in the region. 

Drishti Mains Question:

Q. Analyze the significance of elevating India-Singapore relations to a Comprehensive Strategic Partnership. What are the expected benefits across different sectors?

Q.What are the strategic benefits for India in expanding its relationship with ASEAN countries under the Act East Policy?

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims:

Q. Consider the following countries: (2018)

  1. Australia
  2. Canada
  3. China
  4. India
  5. Japan
  6. USA

Which of the above are among the ‘free-trade partners’ of ASEAN?

(a) 1, 2, 4 and 5

(b) 3, 4, 5 and 6

(c) 1, 3, 4 and 5

(d) 2, 3, 4 and 6

Ans: (c)

Q. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as (2016)

(a) G20

(b) ASEAN

(c) SCO

(d) SAARC

Ans: (b)


Mains

Q. Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (2016)


Concerns in Asset Reconstruction Companies (ARCs)

For Prelims: Asset Reconstruction Companies (ARCs), Non Performing Asset (NPAs), Assets Under Management (AUM), Retail NPAs, National Asset Reconstruction Company Ltd (NARCL), Insolvency and Bankruptcy Code (IBC), SARFAESI Act, 2002, Maidavolu Narasimham, Qualified Buyers.

For Mains: Challenges in Functioning of Asset Reconstruction Companies (ARCs) and Remedial Measures.

Source: LM

Why in News?

Recently, Asset Reconstruction Companies (ARCs) have experienced a slowdown in growth due to Non Performing Asset (NPAs) reaching a 12-year low of 2.8% in March 2024.

  • Ratings agency Crisil projects that assets under management (AUM) by ARCs will contract by 7-10% in 2024-25 after remaining unchanged in 2023-24.

What are the Concerns of Asset Reconstruction Companies (ARCs)?

  • Low Business Potential: The decrease in new non-performing corporate assets has driven ARCs to focus on smaller, less profitable retail loans.
    • Despite this shift, there has not been a notable increase in retail NPAs, which further restricts opportunities for ARCs.
  • Increased Investment Mandate: In October 2022, the Reserve Bank of India (RBI), directed ARCs to invest at least 15% of bank investments in security receipts or 2.5% of the total security receipts issued, whichever is higher.
  • Net Owned Funds Requirements: In October 2022, the RBI raised the minimum net owned funds requirement for ARCs from Rs 100 crore to Rs 300 crore to ensure that ARCs have robust balance sheets. 
    • This decision imposed additional constraints on ARCs' capital usage, with many struggling to meet the ₹300 crore requirement, leading to potential mergers or exits.
      • Net-owned funds are similar to net worth and are defined as the difference between what a company owns and owes.
  • Competition from NARCL: The establishment of the state-owned National Asset Reconstruction Company Ltd (NARCL) represents a significant challenge as NARCL offers security receipts that are guaranteed by the government which are more lucrative to financial institutions.
  • Regulatory Challenges: The RBI also mandated that ARCs must obtain approval from an independent advisory committee for all settlement proposals. 
    • This measure has led to delays in the approval of settlements, especially in retail loans, as advisory committees are cautious to avoid future scrutiny.
    •  Increased RBI scrutiny has hit major ARCs, with Edelweiss ARC banned from new loans for bypassing regulations through related group loans.
  • Trust Deficit: A trust deficit seems to have emerged between the regulator (RBI) and ARCs. 
    • The RBI has expressed concerns that some transactions may be helping defaulting promoters to regain control of their assets which amounts to circumventing the provisions of Section 29A of the Insolvency and Bankruptcy Code (IBC).
      • Section 29A of IBC bars defaulting promoters from bidding for their insolvent firms.

What are ARCs?

  • About: An asset reconstruction company (ARC) is a special type of financial institution that buys the debts of the bank at a mutually agreed value and attempts to recover the debts or associated securities by itself. 
  • Background of ARCs: The concept of ARCs was introduced by the Narsimham Committee – II (1998), leading to the establishment of ARCs under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002)
    • Presently, 27 ARCs are registered with the RBI, including notable ones like NARCL, Edelweiss ARC, and Arcil.
  • Registration and Regulation of ARCs: ARC is registered under the Companies Act, 2013 and must also be registered with the RBI under section 3 of the SARFAESI Act.
    • They function as per the SARFAESI Act and guidelines issued by the Reserve Bank of India.
  • Funding for ARCs: The required funds to purchase such debts (NPAs) can be raised from Qualified Buyers (QBs). QBs are the sole entities from whom an ARC can raise funds.
    • QBs include insurance companies, banks, state financial and industrial development corporations, trustees or ARCs registered under SARFAESI, and asset management companies registered with SEBI.
  • Working of the ARCs:
    • Asset Reconstruction: It involves acquiring a bank's or financial institution's rights in loans, advances, debentures, bonds, guarantees, or other credit facilities for recovery purposes, collectively referred to as 'financial assistance'.
      • ARCs buy distressed loans at a discount for cash or a combination of cash and security receipts, which can be redeemed within eight years.
    • Securitisation: It involves acquiring financial assets by issuing security receipts to Qualified Buyers.

Non-Performing Asset (NPA)

  • About: A loan is classified as an NPA when the loan payments have not been made for a minimum period of 90 days.
    • For agriculture, a loan is classified as an NPA if the principal or interest is not paid for two cropping seasons.
  • Types of NPAs: Banks classify NPAs into three categories based on how long the asset has been non-performing and the likelihood of recovering the dues.
    • Sub-standard Assets: A substandard asset is an asset classified as an NPA for a period less than or equal to 12 months.
    • Doubtful Assets: A doubtful asset is an asset that has been non-performing for a period exceeding 12 months.
    • Loss Assets: Assets that are uncollectible and where there is little, or no hope of recovery and that need to be fully written off.

Recent Changes in ARCs Regulations by RBI

  • Strengthening Governance Structure: RBI mandated that the chair of the board and at least half the directors in a board meeting must be independent directors to enhance corporate governance at ARCs.
  • Enhancing Transparency: ARCs must disclose their track record of returns generated for security receipt investors and collaborate with rating agencies for schemes launched over the past eight years to increase transparency.
  • Revised Investment Requirements: ARCs must invest in security receipts (SRs) at least 15% of the transferors' investment or 2.5% of the total receipts issued, whichever is higher, replacing the previous requirement of 15% of all receipts.

What Measures Can Be Taken to Address the Challenges Faced by ARCs?

  • Diversification of Asset Portfolios: ARCs should diversify their asset portfolios by exploring opportunities beyond traditional corporate and retail loans. 
    • This could include sectors like infrastructure, MSMEs, and stressed sectors that still have potential for recovery.
  • Improving Regulatory Transparency and Collaboration: ARCs should work closely with the RBI and other regulatory bodies to ensure transparent operations and compliance with all guidelines.
    • Establishing a standard code of conduct could also help improve trust and accountability.
  • Enhancing Efficiency in Settlements: To counter delays caused by the mandatory approval from independent advisory committees ARCs can employ technology such as AI-driven analytics which could help in faster evaluation, thus minimising delays while maintaining compliance.
  • Adopting Strategic Competition with NARCL: Private ARCs should focus on differentiating their services by offering specialised solutions tailored to niche markets or by focusing on faster recovery mechanisms.

Drishti Mains Question:

Q. Discuss the challenges faced by Asset Reconstruction Companies (ARCs) and suggest measures to enhance their effectiveness.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?(2017)

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

(d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

Ans: (b)


SBM Reduced Infant and Child Mortality

For Prelims: Swachh Bharat Mission (SBM), Infant Mortality Rate (IMR), Under-Five Mortality Rate (U5MR), Gram Panchayats, Swachh Bharat Kosh, UNICEF, Robot Bandicoot, Asian Enigma, Scheduled Castes (SC), Scheduled Tribes (ST).

For Mains: Significance and Achievements of Swachh Bharat Mission (SBM), Challenges Associated with SBM.

Source: DTE

Why in News?

Recently, Science journal Nature has published a study titled ‘Toilet construction under the Swachh Bharat Mission (SBM) and infant mortality in India’.

  • It analysed data from 35 states/Union territories and over 600 districts between 2011 and 2020.

What are the Key Findings of the Study?

  • Reduction in Infant Deaths: The Swachh Bharat Mission (SBM) potentially averted 60,000-70,000 infant deaths annually between 2011-2020.
    • Districts with over 30% of toilets constructed under SBM experienced 5.3 fewer infant deaths and 6.8 fewer child deaths per 1,000 births.
    • Every 10% increase in district-level toilet access after SBM correlated with a reduction in Infant Mortality Rate (IMR) by 0.9 points and Under-Five Mortality Rate (U5MR) by 1.1 points on average.
  • Accelerated Decline in IMR: During the post-SBM period, IMR reductions accelerated, with an 8-9% annual decline, compared to a 3% annual decline in the pre-SBM period (2000-2014).
  • Toilet Availability: The availability of toilets increased twofold, and open defecation declined from 60% to 19% in the first five years of SBM.
    • From 2014 to 2020, the government constructed 109 million household toilets and declared that more than 600,000 villages are open defecation free (ODF).
  • Additional Benefits of Improved Sanitation: Enhanced access to toilets has broader benefits, including women's safety, financial savings due to reduced medical expenses, and overall improved quality of life.
    • Families in ODF villages saved an average of Rs 50,000 annually on health costs.
  • SBM’s Unique Approach: SBM's approach of combining toilet construction with substantial investments in IEC (Information, Education, and Communication) and community engagement represent comprehensive strategies to deal with open defecation.

What is the Swachh Bharat Mission?

  • About SBM: It is a national-level cleanliness campaign announced by the Prime Minister on Independence Day 2014 and launched on 2nd October 2014, coinciding with Gandhi Jayanti.
  • Key Principles and Goals:
    • Toilet Construction: Building individual, cluster, and community toilets to eliminate or reduce open defecation, a major cause of child mortality.
    • Monitoring Usage: Establishing an accountable mechanism to monitor toilet use, not just construction.
    • Public Awareness: Promoting awareness about the drawbacks of open defecation and encouraging toilet use.
    • Behavioural Change: Aiming to change people's attitudes, mindsets, and behaviours toward sanitation through dedicated ground staff and campaigns.
    • Clean Villages: Maintaining cleanliness in villages and ensuring effective solid and liquid waste management through gram panchayats.
    • Water Supply: Installing water pipelines to ensure water supply to all households.
  • Funding and Budget Allocation: SBM had an average annual budget of approximately 1.25 billion USD from 2015 to 2020, reflecting the government’s substantial investment in improving national sanitation and public health outcomes.
  • Financial and Technical Support: Financial incentives provided by the central government to state governments for sanitation efforts, including toilet construction and waste management.
    • Swachh Bharat Kosh allows for public, corporate, and individual contributions for infrastructure purposes.
    • Swachh Bharat Preraks, volunteers recruited by Tata Trusts, monitor the progress of sanitation activities.

What is the Significance of the Swachh Bharat Mission (SBM)?

  • Key Public Health Intervention: Improved sanitation has been linked to significant declines in IMR globally, with similar trends observed in the United States and other Western countries in the early 1900s.
    • The research confirms that improved sanitation under SBM has been a critical factor in reducing IMR and U5MR in India.
  • Addressed the ‘Asian Enigma’: The study supports prior research on the ‘Asian Enigma,’ where India's high child stunting rates, despite economic progress, were linked to widespread open defecation.
    • The reduction in open defecation under SBM addresses this issue by improving sanitation, which is expected to have a long-term impact on reducing child stunting rates.
  • Economic Benefits: UNICEF reports that every rupee invested in SBM yields a return of Rs. 4.3 due to reduced healthcare costs, increased productivity etc.
    • If SBM achieved its aim of ending open defecation, with improved sanitation, the damage costs would be reduced to 2.7% of GDP. It would save Rs 8.1 trillion from the current situation.

What are the Challenges in Successful Implementation of SBM?

  • Behaviours Changes: Open defecation is viewed by many in rural India as healthier, cleaner, and sometimes religiously acceptable.
    • Children, particularly those under 15, practice open defecation more frequently.
  • Non-Functional Toilets: Empirical data suggest that toilets remain non-functional precisely because of inadequate or no water facility.
  • Pit Based Toilet: Most of these toilets are connected to a pit or a septic tank. The pit fills up in five to six years of continuous usage and cleaning of faecal material remains a challenge.
    • Unsafe stool disposal in open places is a major factor contributing to higher rates of diarrhoea and stunting.
  • Ignorance to Hand Hygiene: Hand hygiene is an essential cost-effective public health intervention, but its practice is inconsistent due to the lack of facilities (water, soap, handwashing space).
  • Challenges Faced by Marginalised Communities: Disadvantaged sections, including landless people, migrant labourers, and disabled persons, often lack access to toilets or find existing toilets inaccessible.

Way Forward

  • Maintenance of ODF Status: Post-declaration monitoring is necessary to maintain ODF status, as communities may revert to old practices.
    • There is a need for trained volunteers and incentives to monitor sanitation status.
  • Behavioural Change: To achieve behavioural change in society, a trained workforce is essential to engage communities in participatory self-analysis, educating them on the harmful effects of inadequate sanitation.
  • Manual Scavenging: Many marginalised communities are forced to clean toilets. Technology can play a key role in addressing this issue. E.g., Robot Bandicoot could help end the practice of manual scavenging.
  • Collaborations and Multi-Sectoral Efforts: Department of Drinking Water and Sanitation, Ministry of Health and Family Welfare, UNICEF, World Bank, and several NGOs should work in coordination to avoid duplicating efforts.

Drishti Mains Question:

Q.Discuss the recent achievements of the Swachh Bharat Mission (SBM). Highlight the challenges that still need to be addressed to ensure the long-term success of the mission.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q.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

Ans: (d)


Mains

Q.What are the impediments in disposing of the huge quantities of discarded solid waste which are continuously being generated? How do we safely remove the toxic wastes that have been accumulating in our habitable environment? (2021)

Q.“To ensure effective implementation of policies addressing the water, sanitation and hygiene needs the identification of the beneficiary segments is to be synchronised with anticipated outcomes.” Examine the statement in the context of the WASH scheme. (2017)

Q.How could social influence and persuasion contribute to the success of Swachh Bharat Abhiyan? (2016)


SC Calls for Uniform Demolition Guidelines

For Prelims: Supreme Court, Retributive Justice, Article 300A, Article 21, Geneva Convention, rule of law,

For Mains: Judiciary, Rule of Law, Demolition Drive and Rule of Law, Law Against Demolition Drives, Judgements & Cases.

Source: IE

Why in News?

The Supreme Court (SC) of India recently announced its intention to issue nationwide guidelines to regulate property demolitions, a move spurred by increasing concerns over the practice of "bulldozer justice."

  • The SC's intervention highlights a growing need for standardised due process to prevent arbitrary and potentially unjust demolitions.

Note: Bulldozer justice, a term refers to the practice of demolishing properties, often belonging to those accused of crimes, sometimes without following proper legal procedures.

Why is the Supreme Court Addressing Property Demolitions?

  • Context of the Move: The SC's decision comes amid widespread reports of property demolitions being used as a form of punitive justice (also known as Retributive Justice).
  • Local state governments have increasingly resorted to bulldozers to demolish properties of those accused of crimes, often bypassing established legal procedures.
  • Supreme Court’s Response: The SC emphasised that demolishing property solely based on accusations or convictions violates principles of due process and natural justice. This practice has raised concerns about its legality and fairness.
    • The SC criticised the practice of demolishing properties without proper legal procedures. They stressed that even a conviction does not justify demolition without adherence to legal norms.
    • The SC pointed out that guidelines are needed to ensure demolitions are carried out fairly and consistently across all states, especially in cases involving unauthorised constructions.

How will the Guidelines Affect Demolition Practices?

  • Pan-India Guidelines: The SC plans to establish broad guidelines applicable nationwide to ensure that demolitions are conducted in accordance with legal procedures.
    • These guidelines will cover aspects such as notice periods, opportunities for legal responses, and documentation requirements.
  • Addressing Arbitrary Actions: The guidelines aim to prevent arbitrary demolitions that could be motivated by extrajudicial reasons. By standardising procedures, the SC hopes to curb the misuse of demolition practices.
  • Impact on Legal Framework: The SC’s proposed guidelines could serve as a crucial check against the trend of "bulldozer justice."
    • They are expected to provide a uniform legal framework for property demolitions, ensuring adherence to due process.

What are the Concerns Regarding Demolition Drives?

  • Constitutional:
    • Article 300A of the Indian Constitution: Guarantees that no person shall be deprived of their property except by law. This provision emphasises that property can only be taken away following due process and under valid laws.
    • Article 21 of the Constitution: Guarantees that no person shall be deprived of life or personal liberty except according to a procedure established by law.
      • Immediate demolitions without due process violate the right to a dignified life and personal liberty.
    • Article 14 (Equality Before Law): Demolitions that disproportionately affect certain communities (like slum dwellers) can be challenged as discriminatory.
    • Article 19 (Freedom of Speech and Expression): Punitive demolitions targeting those expressing dissent or criticism can be seen as infringing on free speech rights.
    • Rule of Law: A fundamental principle of the Constitution, which mandates that actions of the state must comply with established legal procedures and respect for individual rights.
      • The misuse of legal instruments for suppression and control, rather than justice, undermines the rule of law. The administrative practice of demolishing properties without due process reflects this antithesis, warranting judicial scrutiny and intervention.
  • Geneva Convention and International Obligations: Article 87(3) of the Geneva Convention prohibits collective punishments. Such demolitions also violate Article 51(3) of the Indian Constitution, which mandates that India must respect international treaties and laws.
    • The Indian Constitution, much like any civilized society, does not recognize the concept of collective punishment.
      • Taking punitive actions against the family members of an accused, by demolishing their homes, does not align with the rule of law. The state cannot retaliate by committing another offense under the guise of justice.
  • Irreversible Damage: The emotional and financial toll of home demolitions is significant. Innocent family members who had no role in the alleged crimes suffer unnecessarily.
  • Targeting Marginalised Communities: The practice disproportionately impacts minority and marginalized communities, perpetuating social divisions and existing inequalities.
    • Victims of bulldozer justice are often left without resettlement options or compensation, exacerbating their suffering and marginalisation.
  • Erosion of Trust: The practice undermines public trust in political and legal institutions by bypassing established legal procedures.

What are the Other Judicial Pronouncements Related to Property Demolitions?

  • Maneka Gandhi vs. Union of India Case, 1978: The Supreme Court held that the phrase used in Article 21 is "procedure established by law" instead of "due process of law," which means the procedures must be free from arbitrariness and irrationality, and should be just, fair, and non-arbitrary.
    • Therefore, demolitions based on suspicion or unfounded allegations contradict the principles of justice, fairness, and non-arbitrariness.
  • Olga Tellis vs. Bombay Municipal Corporation Case, 1985: The Supreme Court affirmed that Article 21 of the Constitution, which guarantees the right to life, includes the right to livelihood and shelter. Thus, demolishing homes without due process infringes on constitutional rights.
  • K.T. Plantation (P) Ltd. V. State of Karnataka Case, 2011: Supreme Court ruled that the legislation providing for deprivation of property under Article 300-A must be just, fair, and reasonable.

What are the Guidelines for Demolitions Under Local Laws?

  • Rajasthan: Demolitions in Rajasthan are regulated under the Rajasthan Municipalities Act, 2009, and the Rajasthan Forest Act, 1953.
    • Due Process Requirements: Requires notice to be served to the alleged offender and provides an opportunity to make a written representation before property confiscation.
    • Specifies that only a Tehsildar can order eviction of trespassers, ensuring a formal process before property seizure.
  • Madhya Pradesh: Governed by the Madhya Pradesh Municipalities Act, 1961.
    • Due Process Requirements: Allows demolition of buildings constructed without permission but mandates prior notice to the owner to show cause before any demolition action.
  • Uttar Pradesh: Under the Uttar Pradesh Urban Planning and Development Act, 1973.
    • Due Process Requirements: Requires a notice to be issued to the property owner with a period of 15 to 40 days to respond before demolition. The owner has the right to appeal the order.
  • Delhi: Regulated by the Delhi Municipal Corporation Act, 1957 (DMC Act).
    • Due Process Requirements: Allow removal of unauthorized structures without prior notice under certain conditions.
    • It also mandates a reasonable opportunity for the owner to contest the demolition order and provides an appeal mechanism before the Appellate Tribunal.
  • Haryana: Governed by the Haryana Municipal Corporation Act, 1994.
    • Due Process Requirements: Similar to the DMC Act but provides a shorter period (three days) for initiating demolition. It also requires a reasonable opportunity for the owner to argue against the order.

Way Forward

  • Reinforce the Rule of Law: All state actions must strictly adhere to the law. Arbitrary demolitions driven by emotions or politics undermine the legal system and rights. Justice requires fair trials, due process, and established legal procedures, not swift retribution.
    • State actions must target individual wrongdoers, not entire families or communities. The legal system must separate criminal justice from collective punishment and uphold the presumption of innocence.
  • Strengthening Judicial Oversight: Establish specialised tribunals or courts to handle disputes related to property demolitions. These tribunals should have the power to review government decisions, grant injunctions, and award appropriate remedies.
  • Review of Existing Laws: Conduct a comprehensive review of existing laws and regulations related to property rights, urban planning, and land acquisition to identify any inconsistencies or ambiguities.
    • There is a need for clear, national guidelines to regulate demolitions, ensuring proper notice, hearings, and opportunities for appeal.
  • Alternative Dispute Resolution: Promote the use of alternative dispute resolution mechanisms, such as mediation and arbitration, to resolve disputes related to property rights and demolitions.
  • Rehabilitation: Develop comprehensive rehabilitation plans for individuals affected by demolitions, including provisions for alternative housing, livelihood support, and mental health services.

Drishti Mains Question:

Q. Discuss the challenges posed by arbitrary property demolitions in India and the role of the judiciary in regulating property demolitions.


Swachh Vayu Survekshan Award 2024

Source: PIB

Why in News?

Recently, the Union Minister of Environment, Forest & Climate Change, and Chief Minister of Rajasthan presented the Swachh Vayu Survekshan Award 2024, on the occasion of the International Day of Clean Air for Blue Skies (Swachh Vayu Diwas) at Jaipur.

Note:

  • Every year, the International Day of Clean Air for Blue Skies is celebrated on 7th September to raise awareness and facilitate actions to improve air quality.
  • It was declared so by the United Nations General Assembly (UNGA) in 2019.

What is the Swachh Vayu Survekshan Award 2024?

  • About Award:
    • The Swachh Vayu Survekshan Award, 2024, was presented to the best performing National Clean Air Campaign (NCAP) cities in three categories based on population. The winning cities are
      • Category-1 (population over 10 Lakhs): Surat, Jabalpur, and Agra.
      • Category-2 (population between 3-10 Lakhs): Firozabad, Amravati, and Jhansi.
      • Category-3(population under 3 Lakhs): Raebareli, Nalgonda, and Nalagarh.
    • The Municipal Commissioners of the winning cities were awarded with cash prizes, trophies, and certificates.
  • Swachh Vayu Survekshan (SVS):
    • About:
      • SVS is a new initiative by the Ministry of Environment, Forest and Climate Change (MoEFCC) to rank cities on the basis of air quality and implementation of activities approved under the city action plan (NCAP) in 131 non-attainment cities.
        • Cities are declared non-attainment if over a 5-year period they consistently do not meet the National Ambient Air Quality Standards (NAAQS) for PM10 or NO2.
    • The categorisation of cities has been based on the 2011 population census.
  • Criteria: The cities were assessed on eight major points:
    • Control of biomass
    • Municipal solid waste burning
    • Road dust
    • Dust from construction and demolition waste
    • Vehicular emissions
    • Industrial emissions
    • Public awareness
    • improvement in PM10 concentration

National Clean Air Campaign (NCAP)

  • About: The National Clean Air Programme (NCAP) aims to systematically address air pollution by engaging all stakeholders and ensuring necessary action.
    • 131 cities have been identified for the implementation of the city specific action plans under NCAP.
  • Target: It is the first-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target.
    • It seeks to cut the concentration of coarse (PM10) and fine particles (PM2.5) by at least 20% in the next five years (base year for comparison-2017).
  • Monitoring: The “PRANA” portal has also been launched by MoEFCC for
    • Monitoring implementation of NCAP.
    • Monitoring the action plans and implementation status of cities.
    • Sharing best practices adopted by cities for others to emulate

.

What are the Government Initiatives Regarding Clean Air?

UPSC Civil Services Examination, Previous Year Question (PYQ)

Q. How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? (2018)

1. The NGT has been established by an Act whereas the CPCB has been created by an executive order of the Government.

2. The NGT provides environmental justice and helps reduce the burden of litigation in the higher courts whereas the CPCB promotes cleanliness of streams and wells, and aims to improve the quality of air in the country.

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

Ans: (b)


Forum on China-Africa Cooperation Summit

Source: IE

Why in News?

Recently, the China hosted Forum on China-Africa Cooperation (FOCAC) summit in Beijing, attended by 53 African nations, showcased China's evolving approach amidst economic pressures and its efforts to strengthen its partnership with Africa.

What is the Forum on China-Africa Cooperation?

  • Origins: It was established in 2000 to formalise the strategic partnership between China and African nations, with a summit conducted every three years, with host alternating between China and an African member.
  • Participants: The FOCAC counts 53 African nations as its members, with the exception of Eswatini, which has diplomatic ties with Taiwan against China's "One China" Policy.
    • The African Union Commission, the continental bloc tasked with ensuring cooperation and economic integration across its member countries, is also a member.
  • Highlights of 2024 Summit: The summit's theme isJoining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future.”
    • Summit aims to address key issues such as governance, industrialization, agricultural upgradation, and furthering China’s Belt and Road Initiative (BRI) projects.
    • China pledged approximately USD 51 billion of funding to African countries, supporting 30 infrastructure projects across the continent.
    • The summit adopted the Beijing Declaration and the FOCAC-Beijing Action Plan (2025-27), focusing on deepening the China-Africa partnership.

China’s Relations with Africa

  • In 2023, trade between Africa and China reached USD 282 billion, according to the International Monetary Fund (IMF).
    • China accounts for 20% of Africa’s exports (primarily primary commodities like metals, mineral products and fuel) and 16% of African imports (mainly manufactured goods, electronics, and machinery).
    • The Tanzania-Zambia Railway, a transnational railway was China’s first major infrastructure project in Africa, marking a significant step in its engagement with the continent.
  • China's investments in Africa, particularly under the BRI, have been significant. African nations have often turned to China for funding due to fewer constraints compared to Western loans, but concerns about "debt trap diplomacy" have emerged, with critics alleging that China's massive loans could lead to geopolitical leverage.

What is India’s Current Engagement with Africa?

  • India-Africa Forum Summit (IAFS): The IAFS aimed at strengthening ties, has not been held since 2015. The Covid-19 pandemic delayed the fourth summit, initially planned for 2020.
  • Recent Initiatives: The 2018 guiding principles for Africa focus on prioritising Africa in Indian foreign policy and promoting trade, digital innovation, and climate cooperation.
  • Defence and Security: The India-Africa Defence Dialogue (IADD) highlights India’s commitment to security cooperation.
  • Economic Relations: India is the fourth largest trading partner for Africa with a bilateral trade of about USD 100 billion and cumulative investments of more than USD 75 billion.
  • Digital and Technological Cooperation: India is focusing on leveraging its expertise in digital public infrastructure to support Africa’s digital transformation.

Read more...

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims

Q. Consider the following statements: (2016)

The India-Africa Summit

  1. held in 2015 was the third such Summit
  2. was actually initiated by Jawaharlal Nehru in 1951

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

Ans: (a)


World’s Second Largest Diamond

Source: IE

Recently, a 2,492-carat diamond, the second-largest in the world, was discovered at the Karowe Diamond Mine in Botswana. The largest diamond ever found remains the Cullinan diamond, weighing 3,106 carats, which was discovered in South Africa in 1905.

  • The diamond was recovered using Mega Diamond Recovery (MDR) X-ray Transmission (XRT) technology which enhances the identification and preservation of large diamonds.
  • Botswana, a major diamond producer, relies heavily on the gem for 30% of its GDP and 80% of its exports
  • About Diamond:
    • Diamond, an allotrope of carbon, is the hardest naturally occurring substance on Earth. 
    • Formed in the Earth’s mantle and brought to the surface through volcanic activity, it is found in volcanic landforms like dykes and sills.
    • Uses: 
      • In jewelry, metal polishing, gem cutting, and industrial applications such as cutting edges for drills.
    • Key Locations in India: 
      • The Panna belt (Madhya Pradesh), Wajrakarur Kimberlite pipe, and the Krishna River basin (Andhra Pradesh)
      • The cutting and polishing industry is centered in Surat, Navsari, Ahmedabad, and Palampur.
    • Leading Producers: 
      • Russia, Botswana, Canada, Australia, South Africa, and the Democratic Republic of Congo (DRC).

Read More: Lab-Grown Diamonds 


Typhoon Shanshan

Source: TOI

Recently, Typhoon (Cyclone) Shanshan has hit Japan bringing heavy rains and strong winds, prompting airlines and railways to cancel multiple services.

  • Typhoons:
    • Typhoons are a type of tropical cyclone, which may also be referred to as hurricanes or cyclones depending on their location.
    • Cyclones are rapid inward air circulation around a low-pressure area. 
      • The air circulates in an anticlockwise direction in the Northern hemisphere and clockwise in the Southern hemisphere.
    • They are usually accompanied by violent storms and bad weather.
  • Naming of Cyclones:
    • The World Meteorological Organisation (WMO) has developed procedures to determine tropical cyclone names, which vary by region. 
    • Names are selected alphabetically, alternating between men's and women's names or following the alphabetical order of countries.
    • The naming process is conducted by regional tropical cyclone bodies, which establish pre-designated lists of names proposed by WMO Members' National Meteorological and Hydrological Services.
Cyclones Type Location
Typhoon China Sea and Pacific Ocean
Hurricane West Indian islands, Caribbean Sea, Atlantic Ocean
Tornado Guinea lands of West Africa, southern USA
Willy-willies North-western Australia
Tropical Cyclone Indian Ocean Region

Read more: Cyclone, New List of Names of Tropical Cyclones


Mega Oil Palm Plantation Drive 2024

Source: PIB

Recently, Mega Oil Palm Plantation Drive 2024 was conducted under the National Mission on Edible Oil-Oil Palm (NMEO-OP). Under this over 17 lakh oil palm saplings were planted across 15 states in India benefitting over 10,000 farmers.

  • It is organised by state governments in collaboration with leading oil palm processing companies.
  • The initiative has featured numerous awareness workshops, plantation campaigns, and promotional events, successfully raising awareness and engaging the farming community.
  • National Mission for Edible Oils – Oil Palm (NMEO-OP)
    • It was launched by the Government of India in August 2021.
    • It aims to expand oil palm cultivation and boost Crude Palm Oil (CPO) production by setting up a value chain ecosystem for development of the Oil Palm sector including viability price support.
    • India is the second-largest consumer of edible oil globally and one of its largest importers.
      • Andhra Pradesh, Telangana, Karnataka, Mizoram are the largest oil palm producing states in India.
    • India imported 16.5 million metric tons (MT) of edible oil in 2022-23.
      • Indonesia and Malaysia are the main global palm oil producers, followed by Thailand, Colombia, and Nigeria.

Read More...


Financial Stability and Development Council (FSDC)

Source: ET

Recently, the Financial Stability and Development Council's (FSDC) sub-committee, chaired by Reserve Bank of India (RBI) Governor convened to review significant global and domestic macroeconomic and financial developments.

  • It focused on inter-regulatory coordination and assessed potential risks to financial stability in light of emerging challenges such as global spillovers, cyber hazards, and climate change.
  • About FSDC:
  • FSDC Sub-Committee:
    • The FSDC is supported by a Sub-Committee (FSDC-SC), set up under the chairmanship of the Governor of RBI. It meets more often than the full FSDC.
    • It includes all FSDC members, four RBI Deputy Governors, and the Department of Economic Affairs (DEA) Additional Secretary.

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