PLI Schemes

Why in News?

Recently, the NITI Aayog has commenced work on evolving a set of objective criteria to track value addition by companies which avail financial rewards under Production-Linked Incentive (PLI) schemes.

• The empowered group of secretaries which was instituted in June 2020 was tasked with identifying the bottlenecks in PLI schemes, coordinating between states and companies for faster approvals, evaluating and ensuring quick investments in PLI schemes, and ensuring overall turnaround of projects.
• The group is chaired by the Cabinet Secretary, and has the Chief Executive Officer of NITI Aayog, the secretaries of Department for Promotion of Industry and Internal Trade, Department of Commerce, Department of Revenue, Department of Economic Affairs, and the Secretary of the concerned ministry as its members.

What is the Plan?

• Taking the lead in creating a centralised database to monitor progress in the PLI schemes across sectors, the NITI Aayog plans to rope in an external agency – state-owned IFCI Ltd or SIDBI – to design and prepare the database.
  • This database will capture value addition, actual exports against commitments made, and job creation.
• A dashboard to flag hurdles at the state level will also be created.

What are the Challenges Facing the PLI Scheme?

• No Common Set of Parameters:
  • There were no common set of parameters to understand the value addition by companies that have received or are likely to receive incentives under the PLI scheme.
  • At present, different ministries monitor the value addition of their respective PLI schemes and there is no way to compare two different schemes.
  • Also, there are various deliverables such as the number of jobs created, the rise in exports and quality improvement and there is no centralised database to gauge all these.
• Target for Companies for Incentives too Steep:
  • Departments and ministries which interact with companies operating in their sector also face certain specific issues.
    • For instance, at times, the target for companies to qualify for incentives are too steep.
• Domestic Companies Relied on One or Two Supply Chains:
  • Until last fiscal, only 3-4 companies managed to achieve the incremental sales targets to qualify for the PLI scheme from the fourteen companies that had been approved.
  • Unlike global companies, most domestic companies relied on one or two supply chains which have been severely disrupted and due to no fault of their own, these companies won’t qualify for the incentive.

What is the PLI Scheme?

• About:
  • The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher import substitution and employment generation.
  • The government has set aside Rs 1.97 lakh crore under the PLI schemes for various sectors and an additional allocation of Rs 19,500 crore was made towards PLI for solar PV modules in Budget 2022-23.
  • Launched in March 2020, the scheme initially targeted three industries:
    • Mobile and allied Component Manufacturing
    • Electrical Component Manufacturing and
    • Medical Devices
• Incentives Under the Scheme:
  • The incentives, calculated on the basis of incremental sales, range from as low as 1% for the electronics and technology products to as high as 20% for the manufacturing of critical key starting drugs and certain drug intermediaries.
  • In some sectors such as advanced chemistry cell batteries, textile products and the drone industry, the incentive to be given will be calculated on the basis of sales, performance and local value addition done over the period of five years.
• Sectors for the which PLI Scheme has been Announced:
  • So far, the government has announced PLI schemes for 14 sectors including automobile and auto components, electronics and IT hardware, telecom, pharmaceuticals, solar modules, metals and mining, textiles and apparel, white goods, drones, and advanced chemistry cell batteries.
• Objectives:
  • The Government introduced this scheme to reduce India’s dependence on China and other foreign countries.
  • It supports the labour-intensive sectors and aims to increase the employment ratio in India.
  • This scheme works to reduce down the import bills and boost up domestic production.
    • However, PLI Yojana invites foreign companies to set up their units in India and encourages domestic enterprises to expand their production units.

Source: IE

Protests Against Hindi in Northeastern States

Why in the News?

Recently, the Government of India provided that Hindi would be made compulsory up to Class 10 in the eight northeastern states.

• Hindi is described as “the language of India”.
• However, the move has been met with protests from various organisations in the Northeast. Also, several south Indian states have criticised the central government decision.
• Instead, these groups are supportive of three-language policy – English, Hindi and the local language.

What are the Arguments Presented by Northeastern Organization?

• Sixth Schedule: The state is protected by the Sixth Schedule of the Constitution and the Centre would not be able to impose Hindi on the students.
• Discrimination: Centre’s move will provide Hindi-speakers the economic, academic and administrative edge and let them control non-Hindi speaking regions of the country in the long run.

What is the Issue with Hindi Language and Identity?

• Linguistic Organization of States: In India most of the states have been formed on linguistic basis.
  • Conflicts over identity, especially over languages tend to be escalated due to limited resources in India.
• Examples of Linguistic Division: The status of language has been a critical issue that has caused division of states in the past.
  • Such states as Andhra Pradesh (1^st state formed on linguistic basis), Punjab and Gujarat were created due to statehood demand on linguistic basis.
• Instrument of Managing Conflict: Language policy is one method by which governments attempt to manage ethnic conflict.
  • Thus, to develop federal cooperation, autonomy of the states over language policy can be a more viable option than the imposition of a three language formula.

What is the Three-Language Formula & Its Need?

• About: Three-Language Formula was first proposed by Kothari Commision 1968. Under this scheme:
  • First language: It will be the mother tongue or regional language.
  • Second language: In Hindi speaking states, it will be other modern Indian languages or English. In non-Hindi speaking states, it will be Hindi or English.
  • Third Language: In Hindi speaking states, it will be English or a modern Indian language. In the non-Hindi speaking state, it will be English or a modern Indian language.
• Need: The primary aim is to promote multilingualism and national harmony.
  • The Kothari Committee’s report observes that learning languages is an important part of a child’s cognitive development.
• Modus Operandi: At the secondary stage, State governments were to adopt the three-language formula.
  • It included the study of a modern Indian language, preferably one of the southern languages, apart from Hindi and English in the Hindi-speaking States.
  • In the ‘non-Hindi speaking States’, Hindi should be studied along with the regional language and English.
• Issue in Implementation: The states in the hindi belt (such as in Uttar Pradesh and Bihar) could not promote learning of south Indian languages under a three language formula.
  • The states like Tamil Nadu, Puducherry and Tripura were not ready to teach Hindi in their school curriculum.
  • Instead they demanded autonomy of this issue.

Way Forward

• Unity in diversity has always been the strength of India. Therefore, in the context of identity associated with language and India being a federal polity, both center and states should follow cooperative models and avoid language hegemony/chauvinism.

Source: TH

Mediation in Judicial Process

Why in News?

While addressing the National Judicial Conference on Mediation and Information Technology, the President advocated the concept of Mediation in the Judicial Process.

What is Mediation?

• Mediation is a voluntary, binding process in which an impartial and neutral mediator facilitates disputing parties in reaching a settlement.
• A mediator does not impose a solution but creates a conducive environment in which disputing parties can resolve all their disputes.
• Mediation is a tried and tested alternative method of dispute resolution. It has proved to be a great success in the cities of Delhi, Ranchi, Jamshedpur, Nagpur, Chandigarh and Aurangabad.
• Mediation is a structured process where a neutral person uses specialised communication and negotiation techniques. Litigants participating in the mediation process have unequivocally endorsed it.
• It is a settlement process whereby disputing parties arrive at mutually acceptable agreements.
• Other than mediation there are some other dispute resolution methods such as Arbitration, Negotiation and Conciliation.

Who can be a Mediator?

• Any person who undergoes the required 40 hours training stipulated by the Mediation and Conciliation Project Committee of the Supreme Court (SC) can be a mediator.
• He also needs to have at least ten mediations resulting in a settlement and at least 20 mediations in all to be eligible to be accredited as a qualified mediator.

What is the Role of a Mediator?

• To be Impartial And Neutral.
• Manage interaction between the parties
• Facilitate communication between the parties.
• Identify barriers to an agreement.
• Identify interests of the parties.
• Develop terms of agreement.

What is the Significance of Mediation?

• Quick And Responsive.
• Economical.
• There is no extra cost.
• Harmonious settlement.
• Creating solutions and remedies.
• Confidential and informal.
• Parties controlling the proceedings.

What are some Challenges to the Process of Mediation?

• Lack of Codification: In January 2020, the SC in MR Krishna Murthi v. New India Assurance Co. Ltd pointed out the urgent need for enacting a uniform legislation for mediation in India.
• Apprehension towards mediation & Lack of Awareness – Mediation has never garnered sufficient reception among the legal fraternity.
  • In order to popularise mediation as a dispute resolution mechanism, training sessions and seminars should be conducted to familiarise judges with the benefits of mediation.
• Infrastructural Concerns and Quality Control– Improved emphasis on mediation will directly increase the workload on mediation centres which lack administrative strength.
  • This can lead to the languishing of cases that go against the basic tenet of mediation i.e. fast resolution of disputes.
  • To tackle this, the practice of mediation should be professionalised in India.
• Inconsistency between existing laws on Mediation– The Supreme Court in a case stated that the terms ‘mediation’ and ‘conciliation’ are synonymous with each other.
  • Contrastingly, the language of Section 89 of Code of Civil Procedure (CPC), 1908 shows that the legislative intent behind the section was to differentiate between mediation and conciliation.
  • Thus, the existing ambiguity has created a lot of vagueness in the process of mediation.

Way Forward

• The Covid-19 pandemic has increased the prominence of mediation as a means for dispute resolution. The plethora of cases initiated by the pandemic warrants a swift and effective redressal and mediation can be the perfect solution.
• However, there are a lot of challenges that restrict the effectiveness of mediation. The existing framework of having different mediation rules for different High Courts has further contributed to the element of uncertainty in the mediation process.
• Thus, the most important step towards recognizing mediation as an effective tool for resolution would be to enact a statute solely for mediation.
  • Mediation Bill, 2021 should be passed with all necessary inputs from all the stakeholders as soon as possible.
• The statute should strive towards addressing the concerns of enforcement and quality control.
• However, care and precaution should be taken to ensure that the legislation does not intrude into the autonomy of the parties engaging in mediation.
• The enactment should supplement the flexible nature of mediation and should help in standardising the procedures involved in mediation.
• Further, attempts should be made to promote mediation by making it a mandatory step before litigation.

Source: TH

Mullaperiyar Dam Issue

Why in News?

Recently, the Supreme Court ordered the reconstitution of the Mullaperiyar dam’s supervisory committee.

• The committee will include one technical expert each from Tamil Nadu and Kerala, the two States involved in the dispute concerning safety of the dam.

What was the Supreme Court Ruling?

• The court has empowered the panel with functions and powers on par with that of the National Dam Safety Authority (NDSA).
  • NDSA is a body envisaged under the Dam Safety Act, 2021.
• For any act of failure, “appropriate action” will be taken against the persons concerned not only for having violated the directions of the court but also under the Act
  • The act talks of one year imprisonment or fine or both for refusal to comply with directions of bodies formed under the law.
• As per the Supreme Court latest order, the two States are expected to nominate, within two weeks, one representative each to the supervisory committee, in addition to one nominee each.

What do we Know about the Mullaperiyar Dam?

• The Mullaperiyar, a 126-year-old dam, is located on the confluence of the Mullayar and Periyar rivers in Kerala’s Idukki district.
• The dam stands at the height of 53.66 metres and 365.85 metres in length.
• The dam is owned, operated and maintained by Tamil Nadu.
  • Tamil Nadu maintained it for several purposes, including irrigation, drinking water supply and hydro-power generation.

What is the Dispute?

• In late 1979, after the eruption of the controversy over the structural stability of the dam, it was decided at a tripartite meeting chaired by K. C. Thomas, the then Chairman of the Central Water Commission that the water level be lowered to 136 feet against the full reservoir level of 152 feet so that Tamil Nadu could take up strengthening measures.
• In 2006 and 2014 the Supreme Court held that the water level be raised to 142 feet, up to which Tamil Nadu stored water even last year (2021).
• The court’s judgment of 2014 also provided for the formation of the supervisory committee and the completion of the remaining work by Tamil Nadu.
  • But, there has been no end to litigation over the dam with Kerala witnessing landslides in recent years.
• Though there had been no reports of landslides in the vicinity of the dam site, the events in other parts of the State led to a renewed campaign against the dam.
• The Kerala government proposed that the existing dam be decommissioned and a fresh one be built
  • These options are not completely acceptable to Tamil Nadu which wants to complete the remaining strengthening work and restore the level to 152 feet.

Why is the Dam Safety Act?

• About:
  • The Dam Safety Act, 2021 came into force in December 2021.
  • The act is aimed at addressing the long-felt need for addressing issues concerning the safety of major dams all over the country.
  • It provides for surveillance, inspection, operation, and maintenance of certain dams for prevention of disasters related to dam failure, apart from institutional mechanisms to ensure their safe functioning.
  • The Act covers those dams having a height of over 15m and between 10m and 15m with certain stipulations.
• Create two National Institutions:
  • National Committee on Dam Safety (NCDS): It seeks to evolve dam safety policies and recommend necessary regulations, and the
  • National Dam Safety Authority (NDSA): It seeks to implement policies and address unresolved issues between the two States. The NDSA will be the regulatory body.
• Create two State Level Institutions:
  • The legislation also envisages the formation of State Dam Safety Organisations and State Committees on Dam Safety.
    • Dam owners will be held responsible for the construction, operation, maintenance, and supervision of dams.

How does the Dam Safety Act Affect Mullaperiyar?

• Since the act provides that the NDSA will perform the role of the State Dam Safety Organisation for a dam located in one State and used by another, the Mullaperiyar dam, strictly speaking, comes under the purview of the NDSA.
• Besides, the Supreme Court, which has been hearing petition after petition after its judgment in 2014, mooted the idea of extending the powers of its supervisory committee to take over charge of the safety and maintenance of the structure.

Source: TH

Enhanced Pinaka Mk-I Rocket System

Why in News?

The Enhanced Pinaka Mk-I Rocket System (EPRS) was successfully test fired in the Pokhran range in Rajasthan.

• As part of the same set of trials, the Area Denial Munition (ADM) was also successfully tested.
• The tests also validated the performance of different variants of munitions and fuzes that can be used in the Pinaka rocket system.
• ADMs are a category of ammunition used to prohibit the adversary from occupying or passing through a particular area.

What is EPRS?

• The EPRS is the upgraded version of the Pinaka variant that has been in service with the Indian Army for the last decade. 
  
  • The design and development has been carried out by Pune-based DRDO (Defence Research and Development Organisation) laboratories - Armament Research and Development Establishment (ARDE) and High Energy Materials Research Laboratory (HEMRL).
• The upgrades include advanced technologies enhancing the range to meet the emerging requirements of the battlefield.
• While the Mark-1 has a range of 38 km, the enhanced version of Mark-1 tested in the last fortnight has a range of 45 km with some key additional features.
• The new incarnation of pinaka represents one of the few examples of an evolutionary process being followed with an indigenous Indian weapon system.

Source: PIB

Sangeet Natak Akademi and Lalit Kala Akademi Awards

Why in News?

The Vice President bestowed the Sangeet Natak Akademi Fellowship and Sangeet Natak Awards for the year 2018 to 44 eminent artists (4 Fellows and 40 awardees).

• He also presented Fellowships and National Awards of Lalit Kala Akademi for the year 2021 to 23 people (3 Fellows and 20 National Awards).

What is Sangeet Natak Akademi Fellowship (Akademi Ratna) and Award?

• Sangeet Natak Akademi Fellowship:
  
  • The Sangeet Natak Akademi Fellowship is the highest honour conferred by Sangeet Natak Akademi without distinction of nationality, race, caste, religion, creed, or sex.
  • The Fellowship of the Akademi is the most prestigious and rare honour, which is restricted to 40 numbers at any given time.
  • The honour of Akademi Fellow carries a purse money of Rs.3,00,000/- (Rupees three lakh) along with a Tamrapatra and Angavastram.
• Sangeet Natak Akademi Awards:
  
  • The awards are given to the artists from the field of Music, Dance, Theatre, Traditional/Folk/Tribal Music/Dance/Theatre, Puppetry and Overall contribution/scholarship in the Performing Arts etc.
  • Akademi Puraskar carries Rs 1,00,000/- (Rupees one lakh) along with Tamrapatra and Angavastram.

What is the Lalit Kala Akademi Award?

• The National Lalit Kala Akademi awards are conferred to recognize individuals for their outstanding work in the field of art. The awardees are selected by an esteemed panel of judges, nominated by the Akademi.

Source: PIB

MoU Between SEBI and FRC Mongolia

Why in News?

Recently, the Union Cabinet has approved the proposal for a bilateral Memorandum of Understanding (MoU) between Securities and Exchange Board of India (SEBI) and Financial Regulatory Commission, Mongolia (FRC).

• FRC is Mongolia’s (non-bank) financial markets regulator.
• FRC, like SEBI, is a co-signatory to International Organization of Securities Commissions’ Multilateral MoU (IOSCO MMoU).

What is the MoU about?

• The proposed bilateral MoU would, in addition to contributing towards strengthening the information sharing framework leading to effective enforcement of securities laws, also help in establishing a technical assistance programme.
  
  • The IOSCO MMoU does not have under its scope the provision for technical assistance.
• The technical assistance programme would benefit the Authorities by way of consultations on matters relating to capital markets, capacity building activities and training programmes for the staff.

What is IOSCO?

• Founded: April 1983
• Headquarters: Madrid, Spain
  
  • IOSCO Asia Pacific Hub is located in Kuala Lumpur, Malaysia.
• About:
  
  • It is the international organization that brings together the world's securities regulators, covering more than 95% of the world’s securities markets, and is the global standard setter for the securities sector.
  • It works closely with the G20 (Group of Twenty) and the Financial Stability Board (FSB) in setting up the standards for strengthening the securities markets.
• Objectives:
  
  • The IOSCO Objectives and Principles of Securities Regulation have been endorsed by FSB as one of the key standards for sound financial systems.
  • IOSCO's enforcement role extends to matters of interpretation of International Financial Reporting Standards (IFRS), where IOSCO maintains a (confidential) database of enforcement actions taken by member agencies.
    
    • IFRS is an accounting standard that has been issued by the International Accounting Standards Board (IASB) with the objective of providing a common accounting language to increase transparency in the presentation of financial information.

Source: PIB