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  • 11 Jan 2024
  • 48 min read
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Indian Economy

Concerns over Insolvency and Bankruptcy Code, 2016

For Prelims: Insolvency and Bankruptcy Code (IBC) 2016, National Company Law Tribunal , Financial Stability Report (FSR), Reserve Bank of India (RBI), Insolvency and Bankruptcy Board of India

For Mains: Challenges faced by the IBC, Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Source: TH

Why in News?

The Insolvency and Bankruptcy Code (IBC) came into effect in 2016 to achieve several objectives, including maximizing the value of debtor's assets, promoting entrepreneurship, ensuring timely resolution of cases, and balancing the interests of stakeholders.

  • However, recent developments have raised concerns about the effectiveness of the code and the resolution process.

What are the Key Issues with the IBC?

  • Low Repayment Percentage:
    • The resolution plan approval process typically involves only about 15% payment by the purchaser, and repayment can take years without any further interest collected by the banks according to the financial stability report (FSR) released by Reserve Bank of India (RBI) in 2023.
      • This has raised questions about the effectiveness of the repayment process.
  • Settlement and Recovery:
    • Recent settlements and resolutions, such as the Reliance Communications Infrastructure Ltd. (RCIL) case, have raised concerns due to the low settlement amounts and extended resolution periods.
      • For example, the settlement for RCIL amounted to a mere 0.92% of the debt, and it took four years to complete the resolution plan, far beyond the stipulated maximum of 330 days.
      • The Financial Creditors (FCs) should ideally get principal and interest.
    • Time-consuming processes for identifying and acknowledging defaults contribute to reduced recovery rates. It hampers the timely initiation of resolution proceedings, contributing to reduced recovery rates.
  • Haircuts and Recovery Rates:
    • The concept of "haircuts," which involves writing off loans and accrued interest, has gained prominence.
    • After resolutions, borrowers and Insolvency Professionals (IPs) remain wealthy, while lenders suffer and banks are absolved from liability, as only companies are declared insolvent, not the owners, leading to depositors being the losers.
      • This has resulted in low recovery rates for financial creditors, with some cases realizing as little as 5% of the loan outstanding.

  • Realizable Value:
    • The FSR released by the RBI in 2023 highlights the low realizable value to creditors, with banks or financial creditors recovering an average of just 10-15% in NCLT-settled cases of large corporates. However, the RBI says the creditors realize 168.5% of the liquidation value and 86.3% of the fair value.
      • As per the FSR, out of 597 liquidations, against the claim of Rs 1,32,888 crore, the amount realised was 3% of the claims admitted.
      • While banks collect up-to-date interest on loans to farmers, students, MSMEs and on housing, including penalty interest for delays, corporates are treated differently.
    • The amount realized from liquidations has also been minimal, raising concerns about the recovery process.
  • Regulatory Concerns:
    • Regulatory Reports:
      • The FSR has highlighted several concerns regarding the Corporate Insolvency Process (CIRP).
      • The report indicates that the admitted claims are less than the dues, and banks or financial creditors are recovering only a fraction of the liquidation value and fair value.
    • Parliamentary Standing Committee Report:
      • The 32nd report of the Parliamentary Standing Committee on Finance has raised concerns about low recovery rates, with haircuts as much as 95% and the delay in the resolution process with more than 71% of cases pending for more than 180 days clearly points towards a deviation from the original objective of the code intended by the Parliament, and issues with Resolution Professionals (RPs) and Insolvency Professionals (IPs).
        • It also recommends the need for a professional code of conduct for the Committee of Creditors (COCs) and fixing a ceiling on haircuts.
  • Limited Judicial Bench Strength:
    • The IBC resolution process is impeded by a shortage of judges, resulting in a deceleration of case processing. This, in turn, contributes to prolonged resolution times.

What are the Key Highlights of the Insolvency and Bankruptcy Code, 2016?

  • About:
    • The Insolvency and Bankruptcy Code (IBC), 2016 provides a framework for resolving the bankruptcy and insolvency of companies, individuals, and partnerships in a time bound manner.
      • Insolvency is a state where the liabilities of an individual or an organization exceeds its asset and that entity is unable to raise enough cash to meet its obligations or debts as they become due for payment.
      • Bankruptcy is when a person or company is legally declared incapable of paying their due and payable bills.
    • The Insolvency and Bankruptcy Code (Amendment) Act, 2021 amends the Insolvency and Bankruptcy Code, 2016.
      • This amendment aims to provide an efficient alternative insolvency resolution framework for corporate persons classified as micro, small and medium enterprises (MSMEs) under the code.
      • It aims for ensuring quicker, cost-effective and value maximizing outcomes for all the stakeholders.
  • Objectives:
    • Maximizing the value of debtor’s assets.
    • Promoting entrepreneurship.
    • Ensuring timely and effective resolution of cases.
    • Balancing the interests of all stakeholders.
    • Facilitating a competitive market and economy.
    • Providing a framework for cross-border insolvency cases.
  • IBC Proceedings:
    • Insolvency and Bankruptcy Board of India (IBBI):
      • IBBI serves as the regulatory authority overseeing insolvency proceedings in India.
        • The IBBI's Chairperson and three whole-time members are appointed by the government and are experts in the fields of finance, law, and insolvency.
          • It also has ex-officio members.
    • Adjudication of Proceedings:
      • National Companies Law Tribunal (NCLT) adjudicates proceedings for companies.
      • Debt Recovery Tribunal (DRT) handles proceedings for individuals.
        • Courts play a pivotal role in approving the initiation of the resolution process, appointing professionals, and endorsing the final decisions of creditors.
    • Procedure for Insolvency Resolution under the Code:
      • Initiated by either the debtor or creditor upon default.
      • Insolvency professionals manage the process, providing financial information to creditors and overseeing debtor asset management.
      • A 180-day period prohibits legal action against the debtor during the resolution process.
    • Committee of Creditors (CoC):
      • Formed by insolvency professionals, the CoC comprises financial creditors.
        • The CoC determines the fate of outstanding debts, deciding on debt revival, repayment schedule changes, or asset liquidation.
      • Failure to decide within 180 days leads to the debtor's assets going into liquidation.
    • Liquidation Process:
      • Proceeds from the sale of the debtor’s assets are distributed in the following order of order:
        • First insolvency resolution costs, including the remuneration to the insolvency professional, second secured creditors, whose loans are backed by collateral and third dues to workers, other employees, forth unsecured creditors.

Way Forward

  • Implement measures to ensure a higher repayment percentage in the resolution plans. This may involve stricter evaluation criteria for approving plans, emphasizing the need for a substantial upfront payment by the purchaser, and incentivizing timely repayments.
    • RBI's decision to implement a maximum ceiling of credit to a single corporate house at Rs 10,000 crore is crucial for reducing the burden of banks during write-offs.
  • As the original objectives have not been fulfilled, a full review of IBC and NCLTs is urgently needed.
  • Reevaluate the concept of "haircuts" and implement measures to prevent abuse by promoters. Introduce safeguards that ensure a fair distribution of losses between promoters and financial creditors.
  • Enhance transparency in the resolution process by ensuring regular updates on the status of cases and reasons for delays.
Biodiversity & Environment

Varied Progress in Clean Air Target

For Prelims: Varied Progress in Clean Air Target, National Clean Air Programme (NCAP), Indo-Gangetic Plain (IGP), Meteorology, Central Pollution Control Board (CPCB).

For Mains: Varied Progress in Clean Air Target, Environmental pollution and degradation.

Source: TH

Why in News?

Recently, the Climate Trends and Respirer Living Sciences have conducted a study, revealing that the majority of cities are far from the clean air targets of the India’s National Clean Air Programme (NCAP).

Note

Climate Trends and Respirer Living Sciences are both involved in the NCAP Tracker, an online hub for updates on India's clean air policy.

  • Climate Trends is a research-based consulting and capacity building initiative that focuses on environment, climate change, and sustainable development.
  • Respirer Living Sciences is a climate-tech startup partner to the Government of India. It supported the Centre of Excellence ATMAN on Clean Air Technologies which was established at IIT Kanpur.

What are the Key Highlights of the Study?

  • PM2.5 Reduction Disparities:
    • Among 49 cities with consistent PM2.5 data over five years, only 27 cities showed a decline in PM2.5 levels, while merely four cities met or surpassed the targeted decline as per National Clean Air Campaign (NCAP) Goals.
      • The NCAP's goal is to reduce average particulate matter (PM) concentrations by 40% by 2026 in 131 cities.
      • Initially aimed for a 20-40% reduction by 2024, the target was later extended to 2026.
  • Mixed Progress Across Cities:
    • While some cities like Varanasi, Agra, and Jodhpur exhibited significant reductions in PM2.5 levels, others, including Delhi, reported marginal declines (only 5.9%) or even increased pollution loads.
      • Varanasi showed the most substantial reduction with a 72% average decrease in PM2.5 levels and a 69% reduction in PM10 levels from 2019 to 2023.
  • Regional Vulnerabilities:
    • The Indo-Gangetic Plain (IGP) remains highly vulnerable to elevated particulate matter concentrations, hosting around 18 of the top 20 most polluted cities for PM2.5.
      • Only Guwahati and Rourkela, outside the IGP, were among the 20 most polluted cities for PM 2.5.
  • Monitoring Challenges:
    • The availability and distribution of continuous ambient air quality monitors significantly influence annual pollutant concentrations.
    • However, many Indian cities lack an adequate number of such monitoring stations.
    • While cities such as Mumbai and Delhi have several such stations, most Indian cities have only a handful.
      • Only four of the 92 cities have more than 10 such stations.
  • Factors Impacting Pollution:
    • Variations in pollution levels can be attributed to geographical locations, diverse emission sources, meteorological influences, and the interplay between emissions and Meteorology, requiring further investigation.

What is the National Clean Air Programme?

  • It was launched by the Ministry of Environment, Forests and Climate Change (MoEFCC) in January 2019.
  • It is the first-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target.
  • The NCAP's goal is to reduce average particulate matter (PM) concentrations by 40% by 2026 in 131 cities. Initially aimed for a 20-40% reduction by 2024, the target was later extended to 2026
  • It covers 131 non-attainment cities which were identified by the Central Pollution Control Board (CPCB).
    • Non-attainment cities are those that have fallen short of the National Ambient Air Quality Standards (NAAQS) for over five years.
      • NAAQs are the standards for ambient air quality with reference to various identified pollutant notified by the CPCB under the Air (Prevention and Control of Pollution) Act, 1981.
      • List of pollutants under NAAQS: PM10, PM2.5, SO2, NO2, CO, NH3, Ozone, Lead, Benzene, Benzo-Pyrene, Arsenic and Nickel.
  • PRANA ( Portal for Regulation of Air-pollution in Non-Attainment cities), is a portal for monitoring of implementation of NCAP.

What are the Initiatives Taken for Controlling Air Pollution?

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims

Q. In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? (2016)

  1. Carbon dioxide
  2. Carbon monoxide
  3. Nitrogen dioxide
  4. Sulfur dioxide
  5. Methane

Select the correct answer using the code given below:

(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 1, 4 and 5 only
(d) 1, 2, 3, 4 and 5

Ans: (b)

Mains

Q. Describe the key points of the revised Global Air Quality Guidelines (AQGs) recently released by the World Health Organisation (WHO). How are these different from its last update in 2005? What changes in India’s National Clean Air Programme are required to achieve revised standards? (2021)

Governance

Website Blocking by the Government

For Prelims: Section 69A of the Information Technology (IT) Act, 2000, Right to Information (RTI), Terrorism, Hate Speech, Freedom of Expression.

For Mains: Website Blocking by the Government, Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Source: TH

Why in News?

Website blocking orders have grown over a 100-fold from 2013 to October 2023, shows a reply to a Right to Information (RTI) application.

What are the Trends of the Website Blocking Orders in India?

  • The Union government issued 62 website blocking orders in 2013, and in 2023, 6,954 till October.
  • These orders are issued under Section 69A of the Information Technology (IT) Act, 2000.
  • The increase in website blocking orders has occurred alongside a significant rise in internet use, especially since the substantial reduction in mobile data prices in 2016.
  • Most of the web pages blocked are likely to be individual posts, videos or profiles.
  • Location of web/application servers are traced on immediate basis as and when required or in case they are not complying with the laws of the land or they are required to be blocked as per court orders.

What is the Legal Framework within the Government to Block Websites or Online Contents?

  • Information Technology Act, 2000:
    • In India, the IT Act, 2000, as amended from time to time, governs all activities related to the use of computer resources.
    • It covers all ‘intermediaries’ who play a role in the use of computer resources and electronic records.
  • Section 69 of the IT Act:
    • It confers on the Central and State governments the power to issue directions “to intercept, monitor or decrypt any information generated, transmitted, received or stored in any computer resource”.
    • The grounds on which these powers may be exercised are:
      • In the interest of the sovereignty or integrity of India, defence of India, the security of the state.
      • Friendly relations with foreign states.
      • Public order, or for preventing incitement to the commission of any cognizable offence relating to these.
      • For investigating any offence.

Why the Government Blocks Websites and what are the Challenges in Blocking them?

  • Government website blocking is primarily driven by concerns related to national security, public order, and legal regulations.
  • It aims to counter threats such as Terrorism, Hate Speech, or illegal content.
  • However, this practice encounters various challenges. Users can easily circumvent blocks using tools like VPNs, making enforcement difficult.
    • VPN stands for "Virtual Private Network" and describes the opportunity to establish a protected network connection when using public networks.
  • Website blocking has become much harder due to evolutions in the encryption technologies used by Web browsers and firms, increasingly blurring the level of visibility that Internet providers have on their users’ activity.

What are the Implications of Blocking Websites by the Government?

  • Impact on Freedom of Expression:
    • Website blocking, especially when not transparently justified, can raise concerns about Freedom of Expression. It is crucial to strike a balance between protecting national interests and safeguarding citizens' rights to express their opinions.
  • Impact on Information Access:
    • Blocking websites may hinder access to valuable information and diverse perspectives. This can limit the public's ability to stay informed about various issues and make well-rounded decisions.
    • If the government blocks websites without due diligence, it may unintentionally impede the dissemination of knowledge and hinder the public's right to access information.
  • Economic Consequences:
    • Blocking websites can have economic repercussions, especially if it disrupts the operations of legitimate businesses hosted on those platforms.
    • Businesses and entrepreneurs may face challenges if their websites are blocked, impacting not only their revenue but also potentially stifling innovation and economic growth.
  • Public Perception and Trust:
    • The government's decisions to block websites can shape public perception and trust in its ability to uphold democratic values.
    • If the public perceives website blocking as arbitrary or unjustified, it can lead to a loss of trust in government institutions, potentially impacting overall civic engagement.

Way Forward

  • To enhance the efficiency of website blocking, collaboration with major CDNs (Content Delivery Network), such as Amazon Web Services, Google Cloud, and Cloudflare, could be explored. CDNs play a significant role in content distribution and may provide more effective mechanisms for blocking specific content.
  • While governments seek to address genuine threats through website blocking, careful consideration and transparent, accountable processes are essential to mitigate the potential adverse impacts on freedom of expression, businesses, and public trust.
Agriculture

Decline of Saffron Production in Kashmir

For Prelims: Saffron, Geographical Indication (GI) Tag, North East Center for Technology Application and Reach.

For Mains: Government Policies & Interventions, Saffron Cultivation and its Importance.

Source: DTE

Why in News?

The Saffron fields of Kashmir, known for producing the world's costliest spice, are facing a severe crisis due to the encroachment of cement factories.

  • Despite ranking as the second-largest saffron producer globally, with an average annual production of 11-12 tonnes, after Iran, the region's saffron industry is weakening, presenting economic challenges for local farmers.

What Factors Contribute to the Decline in Saffron Production?

  • Proximity to Cement Factories:
    • Cement factories in close proximity to saffron fields emit large volumes of dust, damaging both quality and quantity of saffron yield.
      • Saffron fields in Pulwama, have witnessed a 60% decline in cultivation in the last 20 years due to cement pollution.
  • Impact of Cement Dust:
    • Delicate saffron flowers are adversely affected by cement dust containing harmful gasses like nitrogen oxides, sulphur dioxide, and carbon monoxide.
    • Large volumes of cement dust also results in decreased chlorophyll, clogged stomata (tiny pores in plant tissue that allow for gas exchange) in leaves, interrupted light absorption and gas diffusion, inducing early leaf fall and resulting in stunted growth.
      • Cement dust negatively impacts crocin responsible for the color of saffron) content, affecting color, medicinal properties, and cosmetic benefits of Kashmiri saffron.
  • Environmental Factors:
    • Climate change, unexpected rainfall, and land diversion for housing and industries contribute to reduced saffron production.
      • Usage of machines for ploughing also affects saffron cultivation, which is highly dependent on a favorable climate.
  • Lack of Government Intervention:
    • Farmers have resisted the establishment of cement factories near saffron fields since 2005, citing environmental concerns.
      • Despite protests and appeals, authorities have permitted cement industries to operate in close proximity to saffron cultivation.
  • Market Challenges:
    • Saffron farmers face financial difficulties as the spice's market becomes less lucrative.
      • Farmers express concern over declining prices, quantity, and quality, leading to a bleak future for the industry.

What are the Key Facts About the Kashmiri Saffron?

  • Saffron Production and Price:
    • Saffron production has long been restricted to a limited geographical area in the Union territory of Jammu & Kashmir.
      • Pampore region, in India, commonly known as Saffron bowl of Kashmir, is the main contributor to saffron production.
    • The saffron spice, extracted from the stigma (male reproductive part) of the saffron flower (Crocus sativus L), is known as kong in Kashmiri, zaffran in Urdu, and kesar in Hindi.
      • Kashmiri kesar is highly valued, selling at Rs 3 lakhs per kilogram.
      • A gram of kesar is obtained from approximately 160-180 flowers, requiring extensive labor.
  • Season:
    • In India, saffron Corms (seeds) are cultivated during the months of June and July and at some places in August and September.
    • It starts flowering in October.
  • Cultivation Conditions:
    • Altitude: Saffron grows well at an altitude of 2000 meters above sea level. It needs a photoperiod (sunlight) of 12 hours.
    • Soil: It grows in many different soil types but thrives best in calcareous (soil that has calcium carbonate in abundance), humus-rich and well-drained soil with a pH between 6 and 8.
    • Climate: For saffron cultivation, we need an explicit climatological summer and winter with temperatures ranging from no more than 35 or 40oC in summer to about –15 or –20oC in winter.
    • Rainfall: It also requires adequate rainfall that is 1000-1500 mm per annum.
  • Crocin Content and Color:
    • Kashmiri kesar contains 8% of crocin, while the rest of the varieties contain 5-6% of the element.
  • Benefits of Kashmiri Saffron:
    • It is known for medicinal properties such as lowering blood pressure, treating anemia, migraines, and aiding insomnia.
    • Possesses cosmetic benefits, enhancing skin quality, reducing pigmentation, and minimizing spots.
    • Integral part of traditional dishes and it is widely used in beverages, confectionery, dairy products, and food coloring.
  • Recognition:

Initiatives in India to Promote Saffron Production

  • National Saffron Mission:
    • The NSM was launched in 2010-11 to support the cultivation of saffron in Jammu and Kashmir. The mission was part of the Rashtriya Krishi Vikas Yojana (RKVY) and aimed to improve the socio-economic status of the people living in Kashmir.
  • North East Centre For Technology Application and Reach (NECTAR):
    • It is an autonomous body under the Department of Science & Technology, Government of India supported a pilot project to explore the feasibility of growing saffron in the North East region of India, with the same quality and higher quantity.

Way Forward

  • Implement and enforce strict environmental regulations to mitigate the impact of cement factories on saffron fields.
    • Ensure regular monitoring and penalties for industries contributing to pollution near saffron cultivation areas.
  • Facilitate collaboration between the government and saffron growers to address concerns and find sustainable solutions.
  • Support initiatives for diversifying the livelihoods of saffron farmers, offering alternative sources of income.
  • Allocate funds for research and development in saffron cultivation, focusing on creating varieties resilient to environmental challenges.
    • Invest in technology that minimizes the impact of pollutants on saffron crops, ensuring sustainable growth and maintaining quality.

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. The FAO accords the status of ‘Globally Important Agricultural Heritage System (GIAHS)’ to traditional agricultural systems. What is the overall goal of this initiative? (2016)

  1. To provide modern technology, training in modern farming methods and financial support to local communities of identified GIAHS so as to greatly enhance their agricultural productivity.
  2. To identify and safeguard eco-friendly traditional farm practices and their associated landscapes, agricultural biodiversity and knowledge systems of the local communities.
  3. To provide Geographical Indication status to all the varieties of agricultural produce in such identified GIAHS.

Select the correct answer using the code given below:

(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Ans: (b)

Important Facts For Prelims

ISRO Tests Polymer Electrolyte Membrane Fuel Cell

Source: TH

Why in News?

The Indian Space Research Organisation (ISRO) successfully tested a 100 W class Polymer Electrolyte Membrane Fuel Cell (PEMFC) based Power System aboard the orbital platform, POEM3.

What are the Major Takaways from the Recent PEMFC Test?

  • Technology Tested: ISRO tested a 100-watt class PEMFC, which converts hydrogen and oxygen into electricity, water, and heat. This technology offers several advantages over traditional power sources in space, including:
    • High Efficiency: PEMFCs convert fuel directly into electricity, resulting in significantly higher efficiency compared to batteries.
    • Clean Operation: PEMFCs produce only water as a byproduct, eliminating the need for complex waste management systems.
      • The water produced by the PEMFC can be used for onboard consumption or for electrolysis to generate additional oxygen.
  • Test Platform: The PEMFC was tested In orbital platform, POEM3, launched aboard PSLV-C58 on 1st January, 2024.
    • POEM3 serves as a platform for testing new technologies in space under real-world conditions.
  • Implications for Future Missions: The successful test of the PEMFC paves the way for several exciting possibilities for future space missions:
    • Powering the Indian Space Station: The high efficiency and water production capabilities of PEMFCs make them ideal for powering the proposed Indian space station.
    • Deep Space Exploration: PEMFCs can provide a reliable and sustainable source of power for long-duration missions to deep space destinations like Mars.

Note

ISRO also noted that it has qualified 10 Ah Silicon–Graphite anode based high energy density Li-ion cells as a low weight and low cost alternative to present cells being used.

What is a Fuel Cell?

  • About: A fuel cell is an electrochemical device that converts the chemical energy of a fuel (like hydrogen) and an oxidant (like oxygen) directly into electricity.
    • Unlike batteries, which store chemical energy that gets converted to electrical energy, fuel cells continuously produce electricity as long as they are supplied with fuel and oxidant.
  • Major Types of Fuel Cells:
    • Polymer Electrolyte Membrane Fuel Cells: They use a thin, solid polymer membrane as the electrolyte and are well-suited for portable applications.
    • Solid Oxide Fuel Cells (SOFCs): SOFCs use a ceramic electrolyte that can operate at high temperatures. They are highly efficient but are more expensive and complex than PEMFCs.
    • Alkaline Fuel Cells (AFCs): AFCs use a liquid electrolyte made of potassium hydroxide (KOH). They are less efficient than PEMFCs and SOFCs but are less expensive and can be more tolerant of impurities in the fuel.

  • Applications of Fuel Cells:
    • Transportation: Fuel cells can be used to power electric vehicles, boats, and even airplanes.
      • Fuel cells can also power space missions, providing electrical power for spacecraft, and a dependable energy source for long-duration missions.
      • Highly efficient with zero emissions, making them ideal for space missions
    • Portable Power: Fuel cells can be used to power laptop computers, cell phones, and other portable devices.
    • Stationary Power: Fuel cells can be used to power homes, businesses, and even entire cities.

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. Hydrogen fuel cell vehicles produce one of the following as “exhaust” (2010)

(a) NH3
(b) CH4
(c) H2O 
(d) H2O2

Ans: (c)

Important Facts For Prelims

India and Saudi Arabia Sign Bilateral Haj Agreement 2024

Source: PIB

Why in News?

The Indian government has recently signed a Bilateral Haj Agreement for the year 2024 with the Kingdom of Saudi Arabia (KSA), marking a significant development in the facilitation of the annual Haj pilgrimage.

  • The agreement sets a total quota of 1,75,025 pilgrims from India for Haj 2024, with 1,40,020 seats reserved for the Haj Committee of India and 35,005 for Haj Group Operators.
  • The agreement also appreciates and supports the initiative of the Indian government to encourage the participation of women pilgrims without a Mehram(Male Companion).

What are the Key Highlights of the Haj Pilgrimage?

  • The Hajj is a sacred pilgrimage to the holy city of Mecca in Saudi Arabia that every adult Muslim must make at least once in their lifetime. It is one of the five pillars of Islam.
    • The Other Pillars of Islam:
      • Shahada (Faith): The declaration of faith in the oneness of God and the acceptance of Muhammad as God's prophet.
      • Salah (Prayer): Performing the five daily prayers facing the Kaaba in Mecca.
      • Zakat (Charity): Giving a portion of one's wealth to those in need.
      • Sawm (Fasting): Fasting during the month of Ramadan.
  • It takes place during Dhu'al-Hijjah, the final month of the Islamic calendar, and is performed over five to six days.
  • The pilgrims wear simple white garments (Ihram) to symbolize equality and purity.
  • The pilgrims circle the Kaaba, a black cubic structure at the Grand Mosque, seven times in a counter-clockwise direction, and kiss or touch the Black Stone on its corner.
    • This ritual is called Tawaf, which means "going round and round" in Arabic.

Haj pilgrimage for the Indian Pilgrims

  • Haj pilgrimage for the Indian Pilgrims is conducted either through Haj Committee of India (HCoI), which is a statutory organization under the administrative control of Ministry of Minority Affairs or through the Haj Group Organisers (HGOs) duly approved by Ministry.
    • The Ministry of Minority Affairs is the nodal ministry to conduct Haj pilgrimage in India.
  • The Haj Committee of India (HCI) was established in 2002 under the Haj Committee Act, 2002.
    • All aspects of the arrangements for the HCI pilgrims in Saudi Arabia are coordinated by the Consulate General of India (CGI), Jeddah, Saudi Arabia.

Rapid Fire

World Hindi Day

World Hindi Day, observed annually on January 10, honors the vast contributions of Hindi speakers and the language's global significance.

  • Hindi was first spoken at the United Nations General Assembly in 1949. The inaugural World Hindi Diwas took place in 2006 under the leadership of Dr. Manmohan Singh. Since then, January 10 has been observed as World Hindi Day everywhere.
  • According to Article 343 of the Indian Constitution, Hindi written in Devanagari script is the official language of the union.
  • Hindi belongs to the Indo-Aryan branch of the Indo-European language group.
  • The World Hindi Secretariat building was inaugurated in Port Louis, Mauritius in 2018.
  • The National Hindi Day is celebrated every year in India on September 14 to mark the day of adoption of Hindi as the official language by the Constituent Assembly of India in 1949.
  • After Mandarin and English, it is observed that Hindi is the third-most spoken language in the world.

Read more: Vishwa Hindi Diwas

Rapid Fire

Privileges Committee to Seek Responses from Suspended Rajya Sabha MPs

Recently, the Privileges Committee of the Rajya Sabha, decided to seek responses from 11 members suspended on charges of breach of privilege during the recently concluded Winter Session of Parliament.

  • The procedure for dealing with questions of privilege in Rajya Sabha is laid down in Rules 187 to 203 of the Rules of Procedure and Conduct of Business in the Council of States.
    • A question of privilege may be raised in the House only after obtaining the consent of the Chairman.
  • Parliament and its Committees, along with their members, possess rights, privileges, and immunities necessary for efficient functioning. However, these rights are limited to what is essential for parliamentary function, not exempting members from general societal obligations.
  • The Privilege Committee is a Standing Committee. It examines the cases of breach of the privileges of the House and its members and recommends appropriate action.
    • The Lok Sabha committee has 15 members, while the Rajya Sabha committee has 10 members.

Read more: Privilege Motion

Important Facts For Prelims

US Religious Freedom Designations

Source: TH

Why in News?

The United States Secretary of State recently declared a list of countries designated as "Countries of Particular Concern(CPCs)", ‘Special Watch List (SWL)’ countries and ‘Entities of Particular Concern(EPCs)’ due to violations of religious freedom.

What are the US Religious Freedom Designations?

  • About:
    • The United States Commission on International Religious Freedom (USCIRF) recommends countries to the Secretary of State for designation as CPCs.
      • The US acknowledges ongoing religious freedom violations in countries not officially designated. Governments are urged to halt abuses such as attacks on religious minorities, communal violence, prolonged imprisonments for peaceful expression, transnational repression, and calls to violence against religious communities.

Note

  • Earlier, the USCIRF in its 2023 report, designated India as a CPC, citing severe violations of religious freedom against various religious minorities, especially Muslims, Christians, and Dalits.
  • The Indian government rejected the report as ‘biased and motivated’. The government also defended its commitment to protect and promote the rights and freedoms of all its citizens, regardless of their faith.
  • Criteria for the Designation:
    • The US emphasizes that promoting the freedom of religion or belief has been a fundamental goal of US foreign policy since the enactment of the International Religious Freedom Act (IRFA) in 1998.
  • Criteria for Designation of Countries in Different Categories
    • CPCs: When the governments of the countries engage in or tolerate “systematic, ongoing, and egregious violations” of the right to freedom of religion or belief under IRFA 1998.
    • SWL: It is based on the governments’ perpetration or toleration of severe religious freedom violations.
    • EPCs: For systematic, ongoing, and egregious religious freedom violations.
  • Countries Designated for Religious Freedom Violations in 2024:
    • Countries of Particular Concern:
      • The designated countries include China, North Korea, Pakistan, Cuba, Eritrea, Iran, Nicaragua, Russia, Saudi Arabia, Tajikistan, Turkmenistan, and Myanmar.
    • Special Watch List Countries:
      • Algeria, Azerbaijan, the Central African Republic, Comoros, and Vietnam are labeled as "Special Watch List countries".
    • Entities of Particular Concern:
      • Terrorist organizations such as al-Shabab, Boko Haram, Hayat Tahrir al-Sham, the Houthis, ISIS-Sahel, ISIS-West Africa, al-Qa’ida affiliate Jamaat Nasr al-Islam wal-Muslimin, and the Taliban are designated as "Entities of Particular Concern."

State of Freedom of Religion

  • India:
    • The Indian Constitution's Articles 25-28 guarantee freedom of religion as a fundamental right. The Constitution also states that India is a secular state and does not declare any religion as the country's official religion.
      • Article 25 (Freedom of conscience and free profession, practice and propagation of religion).
      • Article 26 (Freedom to manage religious affairs).
      • Article 27 (Freedom as to payment of taxes for promotion of any religion).
      • Article 28 (Freedom as to attendance at religious instruction or religious worship in certain educational institutions).
    • Further, Article 29 and 30 of the Constitution deal with the protection of interests of minorities.
  • Globally:
    • Article 18 of the Universal Declaration of Human Rights affirms that, “Everyone has the right to freedom of thought, conscience and religion; this right includes freedom to change his religion or belief, and freedom, either alone or in community with others and in public or private, to manifest his religion or belief in teaching, practice, worship and observance.”
Rapid Fire

Nanoplastic Contamination in Bottled Water

The latest United States study reveals an alarming reality about bottled water, uncovering the presence of hundreds of thousands of nanoplastic particles underscoring potential health risks.

  • Each liter of bottled water contains 110,000 to 370,000 nanoplastic particles. About 90% of these particles are nanosized, posing a higher risk to human health.
  • Nanoplastics are even smaller than microplastics, ranging below 1 micrometer in size.
    • Unlike microplastics (ranging between 5 millimeters and 1 micrometer), nanoplastics can move from the intestines and lungs directly into the bloodstream before reaching the heart and brain.
  • The study found that common plastics in bottled water such as polyamide, polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate (PET) could play a significant role in micro-nano plastics exposure from bottled waters.
    • PET used in disposable beverage bottles could leach into water when exposed to heat or squeezed.

Read more: Impact of Microplastics on Gut Microbiomes

Rapid Fire

High Court Nod: Yakshagana Mela Reinstates All-Night Shows

The over-a-century old Yakshagana mela, the Kateel Durgaparameshwari Prasadita Yakshagana Mandali, in Dakshina Kannada will revert to all-night shows from 14th January, 2024 after the High Court of Karnataka gave the go-ahead, subject to adherence to Noise Pollution (Regulation and Control) Rules, 2000.

  • Yakshagana is a dance-drama performance unique to Karnataka. It traditionally featured men portraying all roles. But, women are now part of these troupes.
  • Key elements include episodic stories from Hindu epics like Ramayana or Mahabharata.
    • Musical instruments like Chande, Harmonium, Maddale, Taala, and flute accompany these performances.
  • Various renowned troupes such as Saligrama Mela, Dharmasthala Mela, and Mandarthi Mela showcase Yakshagana throughout the year.

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