[Revision] GS3: Environment, Conservation, Disaster-Management: Cyclone Hudhud,

Kashmir Floods, Clean India & Ganga

CSE-201450 mins Ago2 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. [Block-1] Disaster Management
1. Disaster#1: Cyclone Hudhud
1. Rescue operation: operation Lehar
2. Suggestions/ Precautions/reforms
3. Aint nothing called national calamity
4. Benefits of Ham radio
5. Social media in disaster Management
2. Disater#2: Kashmir floods
3. Mission Sahayata
4. Suggestion/ precaution/ reforms
2. [Block-2] Cleaning India and Ganga
1. B1: Swachh Bharat / Clean India campaign
1. Mechanism
2. Fodder/Issues / Challenges/ Solutions
3. Cleaninless: others initiatives
2. B2: Ganga cleanup problem
1. Can Ganga ever be cleaned?
2. Ganga Cleanup under Modi-raj
3. [Block-3] Yearbook type
1. MoEF: Fast track clearance
2. Biodiversity Management Committee
3. Misc. Yearbook / national Developments
4. [Block-4] Energy related
1. Chaibagan Timezone
2. Compact Fusion reactor
3. Others Energy related Developments
5. [Block-5] International
1. Other intetnational Developments
2. Epilogue
[Block-1] Disaster Management

Disaster#1: Cyclone Hudhud

Hudhud national bird of Israel. (IUCN status: Least concern)

Oman suggested this Cyclone name to IMD.
Hits Eastern coast ~mid-October 2014. Last year Phailin too came at same time.

Cyclone Hudhud: Path, area and intensity

Born

@Bay Bengal, West-Central region.

Speed

155-195 kmph.

Catalyst

deep depression over north Andaman Sea.

Target

AP and Odisha coast.

Even caused heavy rains in UP and Bihar.

People
affected

Avalanches and Blizzards in Nepal.

>3 lakh
Crowd Looting food trucks. Hoarding of milk and fuel.
But <30 people died thanks to disaster preparedness.

Environment

Economy

Bees and Birds migrate to other areas after shelter loss=> pollination
reduced in future.
Migrant Pelican and Painted storks couldnt visit Koleru lake.
3 lakh hecters of rice, sugarcane, corn and cashew damaged
Pharma units in Coastal Andhra Pradesh couldnt finish orders from
USA, EU = image hurt.
70k crores lost.
VAT-loss worth Rs.600 crore from petroleum companies alones.

Rescue operation: operation Lehar

Navy

Will lead the rescue efforts.

warships INS Ranjit, INS Shivalik and INS Airawat and fleet tanker INS
Shakti were readied with relief material for 5,000 personnel,
P8-I long-range maritime reconnaissance aircraft is on standby for carrying
out damage assessment once the cyclone passes and wind speeds
Gemini craft loaded with relief material and 20 rescue teams fanned out to
rescue people in flooded areas

Army

Lifejackets, engineer task forces on standby at Ranchi, Allahabad and

Secunderabad.

Airforce

C-17 Globemaster and five An-32 transport aircraft, Chetaks, Mi-8 helicopters, Mi17 medium-lift choppers

Coastguard 17 ships, two air cushion vessels and 13 aircraft in Eastern

NCMC
NDRF

National Crisis Management Committee (NCMC)

Chaired by Cabinet Secretary Ajit Seth.

Evacuated >10000 people.

Suggestions/ Precautions/reforms

1. Coastal states should Prepare a Blue book for standard operating procedure during
cyclones.
2. Target zero human and cattle casualty. Move them to safe location well ahead of time. If
they refuse, use police/military-FORCE.
3. Stop usage of rail lines, airways and highways in the area
4. Alerts on the ports and fishing areas
5. Backup/Stand-by system for electricity and communication system.
6. Empty the dam reservoirs to accommodate cyclonic water.
7. Use doppler radar for close monitoring.
8. Keep NDRF, armed forces and Navy on standby. Control rooms @District HQ.
9. Equip them with large wood and metal cutters.
10. Storage and food, drinking water, medicines and other relief material
11. Toll free numbers, Ham-radio operators, satellite phones to help people.
12. Andhra Pradesh Government thinking of Green-Cess to rebuild forest and mangroves.
13. Separate insurance products for disasters, similar to agro.insurance products.
Aint nothing called national calamity

Modi visits Visakhapatnam, did not declare Hudhud cyclone as a national calamity, only
gave Rs.1k crore assistant=>juntaa angry.
BUT There is nothing termed as National Calamity either in the Disaster Management
Act 2005 or in any other disaster management related notifications. (says Ex-ViceChairman of NDMA).
Title National calamity doesnt give state Government more financial assistance.
Even Uttarakhand Tsunami (2013) wasnt declared national calamity, only Rs.1000 crore
given in interim relief.
But afterwards, Union gave crores in indirect funding for rehabilitation. Even world bank
and ADB came to help.
So its a bogus misconception that if Hudhud not declared national calamity then state
Government wont get help.

Benefits of Ham radio

2 way communication, even when all other communication-channels are down during
disaster.
Local, regional and global connectivity between members.
No cost. Except initial assembly.
If Ham-radio every 5 km=> entire Andhra Pradesh could be covered. Much more
efficient handling of Hudhud.
Even datafiles and images can be shared- IF in small size.

India Written exam=> police verification =>license after 1 year delay. In USA its done in
3 days.
All these precaution are laughable because terrorists buy SIM cards with much ease.

Social media in disaster Management

Andhra Pradesh Government done following

setup facebook page to receive complaints about milk and petrol hoarding.
Setup www.hudhud.ap.gov.in for damage assessment.
Collecting destruction photos via whatsapp and facebook.
Creating volunteer network using Facebook and Twitter
Rallying up the college students in relief distributions.

Disater#2: Kashmir floods

Kashmir Floods: Areas affected

Reasons for flooding in J&K:
Natural

Unprecedented rains due to western disturbances

Changing rainfall pattern allover India. And IPCC believes this will increase.

Manmade

Unplanned urbanisation in J&K

55% of wetlands and river beds encroached.
Central Water commission not doing flood forecasts for J&K.

Mission Sahayata

Army led resruce and relief ops. In Kashmir floods.

More than 13k lives saved, 3k provided shelters.
Army too used social media applications such as Twitter, Facebook and WhatsApp to
reach out to the flood-affected people of Jammu and Kashmir
The BSNL worked on a war footing to restore the telecom network.

Suggestion/ precaution/ reforms

1. New National action plan for floods forecasting. (till now we are using program from
1953).
2. A separate disaster management plan for hill states- against cloudbursts and floods.
3. When water level recedes flood areas- diseases spreads. Need floating clinics, and
dispose man and animal carcasses soon.
4. SC says Army was doing commendable work but current rescue operations were too
inadequate for such a huge disaster.
5. Many refuse to leave their houses fearing looting by scavengers. Armys headache
increased in delivering food-ration to such people.
6. Armys own arms-ammunitions washed away in floods. While grenades became useless
but rifles can be reused by oiling.
7. Court records destroyed. There was no online/cloud backup. Need judicial
computerization ASAP across India.
8. Defense Food Research Laboratory (DFRL), Mysore is supplying ready-to-eat (RTE)
food to victims.
9. Modi himself in-charge of a rescue-relief committee. Celebrated in J&K instead and gave
~750 crore. Thinking of directly sending money to victims bank account but Omar
unhappy, wanted 44k crores.
10. Kashmir willow trees = cricket bats. But flood water destroyed the Raw wood stock in
factories.
11. Uttarakhand state government created an mobile APP with digital mapping of
Rudraprayag district. Itll help pilgrims get weather updates and emergency contact on
mobile phones. All state governments need to do similar.
Other disasters:

Someone shouted about fallen electric wire. Resultant stampede killed 100s. How to
prevent such man-made disasters?
Patna
Stampede

Cyclone
Nilofer

Large no. of entry and exit gates.

Sliding gates to provide more space.
Continuous crowd monitoring. Main focus: women and children
In Gujarat Coastal areas of Kutch and Saurashtra got heavy rainfall.
But NDRF moved people away from disaster area well in advance.
Besides Nilofar lost intentisity before hitting land, So not much damage.
Therefore, I dont consider it *that* important for exam like Hudhud, baaki
UPSC maalik hai.

[Block-2] Cleaning India and Ganga

B1: Swachh Bharat / Clean India campaign
To clean India by 2019 on Gandhis 150th Birthday.
Allotment over next 5 years
Rural ministry

1.3 lakh cr.+

Urban ministry

60k.crore +

State Government 25%

Corporate

CSR funding under Companies Act 2013

Total

~2 lakh cr.

Mechanism
1.
2.
3.
4.
5.
6.

First phase till Diwali- to generate mass movement

Eradication of manual scavenging
solid waste management- convert waste to wealth
Build toilets
Penalties like Singapore (although no decision yet).
Roping in religious leader like Baba Ramdev, Sri Sri, Muslim clerics and Catholic
bishops et al.
7. Roping in celebrities like Salman, Sachin, Priyanka Chopra, Kamal Hasan et al.

Fodder/Issues / Challenges/ Solutions

1. Lack of sanitation =>diseases=>poverty=>bogus human Development. Therefore,
cleanliness campaign should be extended to include health care too.
2. Most Indians are good at cleaning their surroundings and then, equally adept at dumping
the refuse.
3. Manual scavenging yet to be abolished on ground despite SC order.
4. Must de-stigmatise the act of cleaning. (from labelling the employee as Kachre-walla
to safai-walla mindset)
5. Break the caste-occupation link.
6. Safai Karmacharis be given permanent job and medical protection like firemen.
7. Citizen vigil group.
8. Total Sanitation Campaign and Nirmal Bharat Abhiyan= Decentralised, community-led
strategies=> but became hardware-supply target-driven programmes => low coverage
and usage. Modi must not repeat the same strategy.
9. Building toilets alone will not solve the problem of sanitation. It must be kept clean
otherwise no one will use.
10. Schools dont have enough funds to hire separate employees for cleaning toilets and IF
students are made to do this work, Media would sensationalize it in negative manner.
11. States like Kerala- after achieving high sanitation coverage still faced poor health
outcomes due to lack of treatment facilities when pits fill up. (problem of secondary
issues like treatment to filled pits after constructing toilets)
12. Total sanitation campaign and Nirmal Bharat Abhiyan: Government hoped itd be
decentralized community driven program but they became hardware-subsidy driven
solutions. (i.e. financial help to build toilets). But dirty/non-functional toilets = no one
uses.
13. Must imbibe the behavioural change i.e. youve to flush the sakaari toilet after using.
Need to combine Modis social-media followers + PR-machine with Panchayati raj
leaders.
14. Too many heads, lack of coordination. Potholes in roads + leftover construction material
lying on roadsides=> dirty water & garbage will accumulate. But who is to be held
responsible- Road contractor or safai Karmchari or Both? No proper accountability and
punishment mechanism.
15. Celebrity campaigning turned to Photo-opportunity. Will they regularly revisit the area to
ensure its kept clean?
16. Need comprehensive policy for sanitation. Perhaps a law like MNREGA, RTI and RTE
to make clean toilets a legal-right and responsibility.
Must learn lessons from elsewhere

Bangkok

waste management

Kampala

Urban farming

London

congestion tax

Madrid and Barcelona controlled pedestrianisation

Copenhagen

cycling tracks

Singapore

prohibitive litter fines.

Cleanliness: others initiatives

Swachhta
udhyami
Yojana

Under Social justice and empowerment ministry

Cheap Loans to Safai Karamcharis and Manual Scavengers for:
Community toilets.
Buying Sanitation related Vehicles.

Then beneficiary gets contract from municipality to run this toilet/vehicle and
earn living.
Women and children ministry
Making children ambassador of cleanliness. Poems, stories and games to
Bal Swachhta
inspire them.
mission
6 themes: clean food, water, toilet, personal hygiene, surrounding and
Anganwadis.

E-Toilet

Himachal

An Indian company Eram Scientific Ltd.

worlds cheapest unmanned, self-cleaning eToilet with inbuilt solar
panel, automatic flush-sensor, and metallic platform for schools.
Price ~1 lakh including insurance and warrenty.

Planning to become the ODF (open defecation free) State by 2019.

Indore

Rajasthan

Social experiment: School-children given whistle. They can blow it to

deter villages defecating in open.
Mrunal doubt: but what if there is a Gundaa-type male who beats up the
children for disturbing him? And then bribes the policemen not to take
action?
Wants to amend Panchayati Raj Act: If a person doesnt have toilet, he
cant contest local bodies election.

Shipping
container

If Government employees dont have toilets, their increments will be

withheld. (4 lakh teachers in Rajasthan and 10% of them = 40,000
teachers defecate in the open).

Turned to mobile-toilet unit by some filmmaker.

Although It came in Hindu but I dont consider it mains worthy.

Swachh
Vidhayala

Building toilets in schools. Two methods

Interested company/PSU/person can directly built toilets in their chosen
school.
Or they give money to Swachh Bharat kosh under HRD ministry.
From that kosh (fund), union will give money to states, to build toilets
@schools.
Target: separate toilet for girls within one year, in every school.

Effective sanitation service delivery is critical not only for health outcomes, but also for dignity,
livelihoods, safety and security. Elaborate 200 words.
B2: Ganga cleanup

Since mid-80s: Ganga Action Plan (GAP) but Epicfail.

2008: Ganga declared national river.
2014: Modis Namami Gange to clean Ganga by 2019.

Can Ganga ever be cleaned?

Yes it can be

River Rhine in Europe flows through six

countries and yet cleaned. Ganga going only
through 5 states.
UN experts suggestion- construct barrages
between Haridwar to Farakka. They can be

No it cant be

75% municipal waste goes to

Ganga.
Because most river-bank towns
dont have sewage treatment
facility. Will take ~3 years just to

opened and closed systematically to wash down

the silt, dilute the waste inflow, even permit
big-ship navigation.
Drinking Water ministry working to make all
villages on Ganga banks free from open
defecation.
NGT should cut down water-electricity of
polluting units.

setup.
Tehri dam and other dams
blocking sediments. Gangas
self-purifying ability hurt.
Juntaas apathy.
State
governments
of
Uttarakhand, Uttar Pradesh,
Bihar, Jharkhand and West
Bengal not rising above
political differences.
Too many heads, lack of
coordination. No single man with
vision like E.Sreedharan for
Delhi metro. (said SC)
If CPCB
stops
industrial
pollutant discharge then 30% of
river would be clean. But they
take bribes and allow it (said SC).

Ganga Cleanup under Modi-raj

Ganga
plan
Ganga
authority

1.
2.
3.
4.
5.
6.
7.
8.

rejuvenation By Ministry of Water Resources, River Development and Ganga

Rejuvenation
cleanup

Chairman = PM Modi
Vice chairman= Minister of Water resources (Uma Bharati)

Ashes cant be immesered on shallow banks anymore.

Flowers and coconut offerings will be mesh-trapped=> recycle=>holi colors + compost.
No sewage pipe will have an outlet into the river.
A Ganga Vahini Corps (ex-servicemen + NGOs) to keep vigil.
Ganga ghats will be beautified under River Front Management.
Programmes for afforestation, aquatic life and medical plants.
Cleanup of Ganga and its tributaries under one umbrella.
Ganga Manthan dialogue with stakeholders: spiritual leaders, NGOs, Policy makers,
academicians, Environmentalists etc.
9. Committees setup for sand mining, industrial pollution etc.
10. Continue analysis of sediments and water quality.
11. Focus: aviral dhara (uninterrupted flow) and nirmal dhara (clean flow) of Ganga.

New hydel projects must follow 3 rules:

1. Minimum quantum of environmental flow
2. Longitudinal river connectivity
3. Aviral dhara- continuous flow from river.
[Block-3] Yearbook type
MoEF: Fast track clearance

Ganga basin-5 states: industries to install emission monitoring systems.

Border: LAC 100kms, BRO permitted
Naxal: forest land 5ht. Convert for public buildings
Web portal for file clearance
GIS system forest clearance
CAMPA bodies (compensatory afforestation), training, awareness

Criticism of fast-track

Coal energy production increase=> environment hurt

We need 33% forest cover but Border, Naxal area= general approval given=>forest
destruction.
Green law panel (TSR Subramanium) => further dilution

Biodiversity Management Committee

Provided under BD act 2002.

1 chairman, 6 members, 1/3rd of them SC-ST-Women
Can demand fees under Nagoya protocol for Biodiversity database assess to private
companies.

Limitations

Some PRIs yet to setup these bodies. Fear erosion of authority.

Forest mafia and officials dont cooperate, want to rip-off all minor produce themselves.

Misc. Yearbook / national Developments

National Air Quality index, launched in 2014, October

Amur Falcon

AQI

Bharat Norms

Biocremation

Biodiversity
informatics

CSR for wildlife

corridors

Migratory bird from Siberia to Nagaland land.

Killed for meat. But this time more juntaa awareness hence less
nuisance.
For juntaa awareness generation against air pollution.
Air-quality index. Moniter cities above 10 lakh population. Cover all
India after 5 years.
Monitor 8 pollutants. Report health impact using a color coded chart.
Challenge: faulty instruments report lower pollution. Doesnt monitor
Benezene and other carcinogens. No accountability / conditional safety
mechanisms like stopping schools.
Bharat emission std.= max. pollutant that a vehicle can emit.
We are at stage-3 all India and stage4 in selected few cities.
Soumitra Committee recommends all India stage4 by 2017.
@vehicle mfg. companies=>fit catalytical converter, particulate filter
etc.
At oil refineries=> remove sulfur, olefin etc. impurities
But this requires truckload of cash=> impose Special fuel up gradation
CESS.
Cremation = using heat to dispose deadbody
Biocreamtion = using water+alkali+heat+pressure =>biochemical
hydrolysis=>body turned to liquid pulp. Uses less energy than
traditional cremation.
Legalized in USA and Canada.
Database / information Management system
About flora, fauna, medicinal herb, tribal practices etc.
Natural resources can be used efficiently for R&D and global
cooperation.
India among first countries to Development National BD information
outlook.
Karnataka state + private companies act=> companies buy land from
tribal and transfer land to forest dept for connecting the tiger habitats.
Itll be counted under 2% CSR Expenditure.

MacAfee, HP etc MNCs are agreed.

W.Bengal Government wants elephant vasectomy to prevent their

death by train during crop raids. SC did not like it.
Solutions
Stop agro encroachment in jungle areas.
Strict speed control in jungle area
Put Iron fences and Cut tall grass on blind corners
Censors to track movement on rail tracks.
Forest guards @night patrolling.

Elephant
trains

killer

Gangotri glacier

Gir lions

Green law panel

IndARC

Indira
Paryavaran
Bhavan
PM council

Is Melting because
Raktvarn, Chaturangi, and Thelu tributary glaciers of the Gangotri.
Theyre also melting and placed at a higher altitude than the Gangotri.
Moving towards its right => erosion and disintegration.
Shift them to MP?
Yes? Small area in Gir=> inbreeding, man-animal conflict, can be
wiped out in a disaster/disease.
No? MPs gun-culture, 450 tigers killed in a decade, lion-tiger coexistence not advisable.
TSR Subramanian, to Review 5 acts:
Wildlife (Protection) Act
Water (Prevention and Control of Pollution) Act
Forest ( Conservation) Act
Air (Prevention and Control of Pollution) Act
Environment protection Act
Indias first underwater moored observatory
set up in the Kongsfjorden fjord, in Norway near the North Pole
Study ocean current, salinity, temperature =>monsoon prediction.
Indias first net zero energy building. At Delhi
Bamboo-jute composite material for doors.
Ceiling tiles with recyclable content
UPVC windows.
on climate change
Began with UPA

Polavaram

Pthalates

Rhino dehorning

SAFAR

Zoo reform

Coordinate National Action Plan for Assessment, Adaptation and

Mitigation of Climate Change.
Chairman: PM + 17 members=18 members.
Includes forest minister, foreign minister, agro minister etc. total 13
environmentalists like RK Pachauri, other senior journalists and NGO
total 4
Link Godavari + Kirshna before they reach sea.
Store water @Polavaram dam, W.Godawari.
2014: ordinance to handover some Telangana villages to Andhra
Pradesh so this project can materialize. Hence protests over misuse of
presidents ordinance making power.
Used in air-fresheners
Toxic, carcinogen, suppress androgenic hormones.
USA banned but used in India.
Although UPSC unlikely ask specific shortnote on this but it can be
used as fodder that so and so stupid thing still allowed in India hence
we need better policy/law.
Rhino horn: Chinese medicine
De-horning in Namibia to stop poaching.
Anti-arguments
Horn needed for Foraging, fighting, protection
Poachers kill hornless-rhinos to stop wasting time tracking their
footsteps.
Keratin: regrow=> poaching continues.
SAFAR: System of Air Quality Forecasting and Research (SAFAR)
First installed in Delhi for CWG. Later in Pune
Can forcaste airquality 72 hours in advance.
+ UV index, Air-quality index, city pollution maps.
After white tiger kills mentally ill youth. Case study
One guard for each enclosure containing tiger, lion, hyena, jackal and
panther. But they had only wireless set and a whistle.
Tranquizer guns werent loaded and ready- precious 10-15 minutes
wasted.
Safety grill wasnt high enough. Hence that guy climbed up.
24/7 CCTV monitoring. Heavy fines on juntaa pelting stones and junk

food.
No large trees near walls, else animal may climb out.

[Block-4] Energy related

Chaibagan Timezone

Indian standard Time = Allahabad at 82.5 degree longitude

but if north-east India follows this timeline, they will see sunrise at 4:30 AM and sunset=
~3:30PM => their offices will have to burn tubelights to run till office hours end at
~5PM => higher electricity bill.
During British Raj, Assam had a separate Chaibagan timeline. They want similar
mechanism (separate timezone) from India.
pro: planning commission- separate timeline will save a lot of energy in North East,
maximum utilization of sunlight.
anti: practical problems in coordinating schedule of railway and airlines. A committee by
Department of science and technology says cost: benefit not that great.

Compact Fusion reactor

Who?
Fuel?

Lockheed Martin

Benefits?

Ultra-dense deuterium. Deuterium is an isotope of hydrogen, found in oceans.

Tritium (from natural lithium)
No radioactive waste
Compact size, Can power a navy ship.
Right now navy ships, submarines use large nuke fission reactors=> too heavy,
need more service-replacements.

Solar mission revamped

Who?

Ministry of New and Renewable Energy (MNRE)

Tranche-I 3000 MW
Tranche-II 5000 MW
Tranche-III 7000 MW

Total

15,000 MW renewable energy by 2019, March 31.

Eco Cooker benefits

Others Energy related Developments

AERB safety

Barmer
block

BHAVINI

Eco-cooker

Atomic energy regulatory board

Safety guidelines: short term, medium term, long term.
Long term deadline = Dec 2015.
Thar desert Rajasthan. Cambrian Age basin
1 billion barrels oil recoverable
Cairn India discovered.
PSU under DAE
Built a PFBR: Prototype Fast breeder reactor @ Kalpakkam, TN.
Fuel: uranium Oxide
Coolant: Liquid Sodium
Saves 70% than LPG stove
Closed circuit for Heat entrapment, modified burner to regulate gas flow.

Ideal for hostels, hotels etc.

1000 days of protest and 1000MW mark reached.

TN has Kudan + Kalpakkam.
Kudan uses Russian Voda-Voda reactor (water chool- water moderated)
Pressurized light water reactor
Visham software used.
Supply electricity to TN, Keral, Karn., Pudu

Kudankulam

Micro-grid

Net metering

NSRA

RAPS-5

2-3MW grid that gets power from renewable sources.

Can serve 5000 families in remote areas.
Model success @USA, should be replicated @India.
Put solar/wind panel @roof
Connect with DISCOM, sell them surplus electricity if any.
Meter Bill = incoming minus outgoing electricity. Depending on that
either you pay to company or company pays you.
Challenge: solar panel expensive. Long gestation before investment
recovered.
Nuke safety regulatory authority
Bill in 2011 but lapsed. Wanted to create a nuke safety council with PM as
chairman
AERB depends on DAE. CAG says autonomous body necessary.
Rawatbhatta Atomic power station. Continously operated for 765 days.
Tech: Pressurized heavy water reactor, by NPCIL.
Fuel: natural uranium
Cooling and moderator= heavy water.
Supplies electricity to Rajasthan, UP, Delhi etc.

Net Metering: Mechanism and Benefits

[Block-5] International
US-China climate deal

Paris Conference 2015, will decide post-Kyoto framework.

EU already announced deep emission cuts by 2025.
Hence US-China had to announce something before Paris- to claim moral high ground
and positive media-coverage, hence this treaty.

China

USA

Worlds largest carbon emitter (29%)

2nd largest (15%)

Agreed to reach peak carbon emission in 2030. After

that well start reducing carbon emission. (antiargument: no commitment about quantity).

20% of energy will be made from renewable sources viz Nuke,

solar and wind.

Both will cooperate in following:

Carbon capturing and sequestration (CCS)

In 2025, well emit 2628% less carbon than

2005 level.
80% reduction by 2050

Smart urbanization
Reduce Hydroflorocarbons (HFC) use in fridge and AC.

Indian angle?

We hardly emit 8% of world GHG.

Can make 18% of total electricity from renewable sources by 2030. (present 6%)
Cant manically pursue clean energy. If we want to achieve ~9% GDP growth rate- have
to rely on the cheap coal power.

Modi targets?

2x wind energy in next 5 years

20,000 MW Solar energy by 2020
Doubled the clean energy cess on coal.
1MW solar parks on canal banks, Ultra mega solar projects
Coal washeries, super critical coal technology

Other international Developments

Global Apollo
program

Montreal

UNEP-FI

UK brainchild. Want India, USA, EU etc. to join.

To Make renewable energy affordable.
Membership fees: spent 0.02% of GDP for clean energy.
Treaty has stopped use of CFCs. Ozone layer finally showing signs of
recovery. By 2075, itll fully recover @Antarctic.
Challenges: Carbon Tetrachloride still found in atmosphere, meaning
some third world companies using it illegally. Its a carcinogenic.
CFCs replaced with HFC. HFC dont harm Ozone but they create
Greenhouse effect.
United Nations Environment Programme Finance Initiative (UNEP-FI)
and Equator principles. 2005.
Banks and financial institutions cannot lend to companies doing
environment destruction.
2014: Adani developing coal port at Abbot Point in Australia.
HSBC, Citi, Golmand Sach etc. refused to finance this project citing
UNEP-FI.
Hardly 2-3 Indian lenders such as Yes Bank signed this treaty.

Ballast water

HEV

Earth
overshoot

Parafoil drone

Ships fill and dump the sea water in their ballast tanks to rebalance the
ship during cargo loading-unloading.
This ballast water brings harmful bacteria-virus and hurts fishes.
International martime org. formed a convention but most of the seafaring nations have not ratified it.
Hybrid electrical vehicles
Use both petrol and electricity.
e.g. Hondas Acura RLX.
Celebrated on August 2014 by a global-NGO.
Means we exhausted earths annual capacity to regenerate within 8
months. Now living off on next years quota.
In China. Basically a generator hanging from parachute
Sprinkles chemicals that freeze PM2.5 particles and makeem fall on
ground => smog cleared.

Parafoil Drone to clear Smog-Problem in China

Wrong theories:

Mantle
theory

plumes

Old
Climate formula

Old Textbook theory: magma gushes through narrow jets (mantle

plumes)=>volcano erupts.
But New seismology data and basic physics doesnt accept that such
jets actually exist.
New theory: There are large, slow, upward-moving lava-mantles.
They create volcanoes.
Is wrong
DDWW: dry gets drier, wet gets wetter only valid for water mass but
not land mass.

Epilogue

This concludes the [Revision] Series for Mains-2014. No further articles in this series.
All the revision notes are archived at Mrunal.org/UPSC#CSE-2014
I had plans for doing revision articles on polity, IR but humanly impossible in the given
time limit (just 12 days left when I write this).
Besides majority of those topics covered neatly and indexed properly at
Mrunal.org/Polity and Mrunal.org/Diplomacy respectively.
same way History, geography at Mrunal.org/history and Mrunal.org/GEOGRAPHY.

Best Prayers for the serious players, UPSC ,

, .
Tags: Rajtanil, shivaram

[Revision] GS3 Science-Tech: Biotechnology, Robotics, Nanotech, Computer/IT awareness,

Space-tech, Agro, Defense
CSE-20144 hours AgoLeave a Comment

For ACIO & Insurance AO

Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. [Block-1] Biotechnology
1. Biotechnology bill 2013
2. Genetically modified crops
3. Pro-GM-crops
4. Anti GM-crops
5. GM crops in India
2. [Block-2] Robotics
3. [Block-3] Nanotechnology
1. Google-X Nanoparticles
2. Nanotechnology: theory
4. [Block-4] computer / Internet related
1. Internet security
2. Hardware
3. APPS/Portals
5. [Block-5] Space-Tech
1. ISRO MARS Mission
2. IRNSS-Desi GPS
3. NASA and others
6. [Block-6] AGRO related
7. [Block-7] Defense
8. [Block-8] Physics, Chemistry, Misc.
[Block-1] Biotechnology
Meaning: utilizing biological process for industrial, medical, agricultural and other purposes.
Applications of Biotechnology
1. Affordable vaccines for variety of diseases for example rotavac: for rotavirus diarrhea.
Clinical trials for human papilloma virus HPV vaccine.
2. Elisa kit to detect Japanese encephalitis in humans and various diseases in fishes.
3. Typbar-TCV: typhoid vaccine by Bharat Biotech.
4. Bio-fortified crops with higher quantity of vitamins and micronutrients=> no more
malnutrition.
5. Transgenic drought resistant, pest-resistant crops for various aggro climatic zones of
India.
6. Biocontrol agents to remove weeds and pests from farm.

7. Improving yeast/fermentation process in bakery and desi-liquor industry.

8. Bio informatics: for providing information/database Management. Helps in faster is a
development and intersubjective coordination.
9. Biosensors for detecting gene mutation in predicting genetic disease in future
generations.
10. Bio prospecting program to use GIS and remote sensing to leverage bio resources of
North East and West ghats.
11. Cancer drugs from medicinal plants
Biotechnology bill 2013

Setup Biotechnology regulatory authority of India and its appellate tribunal

will replace genetic engineering approval committee (GEAC)
Will not replace the present setup clinical trial approval. (Drug controller General of
India DGCA)
Single window fast track clearance
Public consultation not mandatory.

will clear biotechnology application in three areas :

1. Agro, forest, fishes
2. human and animals
3. environment and industries
Genetically modified crops
Soil Bacteria Bacillus Thuringiensis=> take out crystal protein gene from it and insert in normal
brinjal=> Bt.Brinjal. If borer/pests/larvae attack they die because of toxic protein binds in their
guts.
GM-crops: to use or not to Use= endless argument
Pro-GM-crops
1. Drought and pest resistant.
2. Higher yield at low cost, because
GM-crops need less fertilziers and
pesticides.
3. Bt-cotton has doubled our bales
production in last decade.
4. vegggies can remain fresh for longer
time.

Anti GM-crops
1. Bt Brinjal releases Bt-toxin. Some clinical
trials show its toxic to humans. (counter:
Bt-toxin is broken down during digestion
in human, hence not harmful.)
2. farmers dont
cultivate
indigenous
varieties=> biodiversity loss. those desi
varieties might be needed in future to R&D
some new disease.

5. Genetically modified trees can even

suck up heavy metal and toxic
chemicals from soil.
6. Bio fortification: increasing vitamins
and micro-nutrients in staple crops=>
malnutrition removed.
7. China doing R&D for cotton, rice,
corn, tomatoes etc.
8. father of green revolution Norman
Borlaug recommends GM crops for
food security.
9. Genetically modified mosquitoes in
Brazil (Franken Skeeter): they kill
Aedes Aegypti
10. Mosquitoes=dengue reduced.

3. Banned in Europe. Stringent labelling

requirements. In India, veggies sold loose,
not possible to distinguish normal veggies
from GM-veggies.
4. Data are insufficient to prove that food
security increases after adopting GM crops.
5. Men should not try to play God.
6. SC appointed committee wants to stop new
GM trials for next 10 years.
7. Parliamentary committee says GM crop
benefit only rich farmers.

GM crops in India
Genetic engineering approval committee (GEAC) looks after the matter. Permitted field trials for
rice, cotton, brinjal, mustard etc. But Challenges:
1. its recommendations are not binding on the environment Ministry or the State
government
2. Even after GM-approval, state governments would refuse under pressure from
farmers/NGOs/Desi seed companies. (e.g. Gujarat state Government after Modi left.)
3. Committee does not meet on regular basis
4. Although FAO and WHO certified that GM crops are safe, >50% of farmland in third
world using GM crops. Still environment Ministry hesitant to approve, due to illinformed media and NGO pressure.
[Block-2] Robotics

Robotics: New Developments

Made of up actuator, links and chains.

For picking up objects, they use mechanical grippers, vacuum-grippers or advanced

mechanical finger.

History
40s Isaac Asimov first used the word Robotics.
60s first industrial robot Unimate

Application of Robotics
Dull/boring jobs

Dangerous jobs

Cleaning pipes, garbage etc.

Exploring stars and planets

Nuclear reactor
Bomb diffusion, gas leakage etc.

Precision jobs

Mfg. tiny circuit chips, electronics etc.

Surgery
Finding defective products on assembly lines

Notable robotic technology: List not exhaustive

ASIMO

Hondas humanoid robot

BITS Pilani

Acyut humanoid robot.

Chaturobot

DRDO+CAIR. Vision sensors to pick objects.

Da Vinci

GelSight
sensor

This robot can do surgery with very tiny incisions=> very less blood
loss=> faster healing and recovery.
Cost higher than manual surgery because very sophisticated one-time
instruments used.
New tactile sensor.
Made of transparent-synthetic rubber coating+ metallic paint.
It can capture surface geometry of any material.

Gives robot touch feeling so it can handle materials in more

sophisticate manner.

nuke Six legged robot for handling accident at nuclear power plants. Couldnt find
out its fancy name.

India
plants
ISRO

smartNAV robot for navigating moon surface in next manned mission.

MAARS

Modular advanced armed robotic system. Drone like killer-robots. They can
attack but only on human command.

QRIO

Quest for curiosity Sonys entertainment robot.

[Block-3] Nanotechnology
Google-X Nanoparticles

Google-X Nanoparticles: How do they work?

Pills containing Nano-particles.

Patient swallows the pill=> Nanoparticles enter blood=>movement monitoring by wristwatch sensor.

Using this vehicle, Medicine can be delivered to target site e.g. Cancer cell. OR doing
diagnosis of a blood-vessel.

Nanotechnology: theory
Nanometer= 10(-9) meter. At this level, material display special physical, chemical and biological
properties.
Applications:

Removing toxic chemicals from drinking water

Nano-composite plastic films for packaging. Can preserve food for longer duration.
Titanium dioxide nano coating can block ultraviolet radiation=> car color will not fade
over time.
Nano silver: antimicrobial agent, but dangerous to soil contamination
Carbon Nano-tubes: tear resistant textiles

Gold
Nano
particles

Nanoscope

detecting Alzheimers disease at an early age

Delivery drugs to specific site in body, without harming healthy organs.
Florescene microscope / Nanoscope won
Won Nobel chemistry prize 2014.
Earlier optical micrometers could show resolution upto 0.2 micrometres
only (=half the wavelength of light).
But Betzig, Moerner and Stefan Hell developed super-resolved
fluorescence microscope, which can show details in nanometers.

[Block-4] computer / Internet related

Internet security

COWL

Heart bleed bug

IoE

Shellshock/BASH
bug

Vishing

Confinement with Origin Web Labels (COWL)

Prevents browser javascripts from sending your information to
unauthorized third party.
Exploits open-SSL vulnerability
to spy on communication between user and server.
Can spy, but cant control machine.
Internet of everything
When everything connected with internet, controlled by internet.
Even murder possible e.g. shutting down pacemarkers, ventilators,
traffic signals etc.
Exploits bash (shell-command) softwares in Linux/Unix machines,
devices, even cars.
Can spy and control machine.
Any script kiddy with basic knowledge, can use. Hence more
dangerous
Voice phising to hack your bank account.
Person calls you pretending to be bank officer, then diverts you to a
fake toll-free number where you enter bank PIN/password.

Net neutrality

Internet service provider (ISP) should not priorities one type of traffic over others.
Example: In USA, AT&T, comcast etc. have oligopoly over broadband connection.
Suppose, AT&T offered google CEO that Ill display your website faster to my
customers than yahoo/bing websites IF you pay *** $commission$=> in this case net
neutrality is violated.
expert opine that India need not pursue net-netruality because we dont have any
oligopolies/monopolies ISPs. We should better focus on bringing down digital divide
first.

Digital certificates:

Website gives browser a digital certificate with public key.

Browser matches public key with websites private key.
If both match=> secured website=> safe to send bank / credit card info.
DEITY =>Controller of Certifying authorities=>digital certificates.

Digital certificate + Public key infra (PKI) + SSL (secure socket layer)=>encrypted
channel.
National Informatics Centre (NIC) gives digital certificates for Government websites.
But its Delhi office caught fire, hacker accessed backup data in Hyderabad office=>
security risk.

Hardware / inventions

Braigo Printer

cognitive
computing

a new type artificial intelligence/computer system. Just like brain, it learns

language and builds its knowledge.

Credit card sized mini-computer

Plug it to TV, add keyboard.
Can do most stuff like a normal computer- word processing, HDvideos, net-surfing etc.
25-35$ price depending on RAM/SD-card.

DRDO miniaturized embedded computer chip for missiles and

Raspberry Pi

System on Chips

Shubham Benerjee, 13 years old, Indian American.

Made braille printer using lego toy parts. Just $349 while commercial
Braille printers cost $1000
Intel providing capital now to launch consumer product.

aircrafts.
Has CPU, memory, IO devices everything fit into one.
Hardly 200 gms, 50% cheaper, 6-7 times more powerful than existing
models.

Mobile APPS and Web Portals

NIC portal for prisoners database management. Details of their family,
medical history, visitor history etc.

E-Prisonsuit

Facebook Internet
drones
Facebook
app

safety

During disasters, user can tick Im ok, his friends will be notified.

Google ILIA

KINECT

To laser-beam wireless internet over an area using Solar Powered

Drones. Reduce digital divide in third world.
Google wants to do similar using balloons (Project Loon).

Indian Language Internet alliance to serve digital content in desi

languages.
5 million new Indians added to mobile/internet every month but
dont know english.

Microsofts sign language translator. Converts sign language into spoken

words.

Safety PIN App

Map based application.

Helps you judge safety of your current location. Shop-timing,
rickshaw availability etc.
Red=danger, amber-less safe, green=safe.

Sandesh Pathak

Software app to deliver agro-message to illterate farmers via text-to-speech

from their phones.

Saransh tool

To compare CBSE schools, their students performance record. Both

teachers and parents will benefit.

[Block-5] Space-Tech
ISRO MARS Mission

300 days, 450 crores, 1350 kg, PSLV launch vehicle, Banglore command centre.
Five indictments for three studies:
1. Surface/geology: using (1)camera and (2)spectrometer.
2. (Particle) Environment: using (3)MENCA
3. Atmosphere: using (4)Photometer and (5)Methane sensor

Why good?

Soft power, Big PR exercise, will help us get space contracts from third world via
Antarix. Giveem Discount to buy votes at UNGA.
History created. First attempt, no coaching, yet success. Will Attract and retain talented
scientist. Less brain drain.
NASAs Maven = far costlier, only study upper atmosphere.
Technology has indirect uses in weather prediction, telemedicine etc.
Did not steal from poors mouth. Just 450 crore spent. Government has wasted far more
in IAY, MNREGA, ICDS etc.

IRNSS-Desi GPS

We rely on American GPS and Russian GLONASS. But they may deliberately feed us
wrong coordinates during war against them/their allies.
Hence Indian Regional Navigation Satellite System (IRNSS) to run Indian global
positioning system.
3+4=7 satellites @36k kms in sky=> can cover India + 1500 kms beyond borders.
2014, Oct: Third satellite IRNSS-B launched with PSLV. Command centre near
Banglore.
Std-service for all. Accuracy 20 meters.
Restricted service for military and Government.
+Disaster Management, Forest fire, fleet Management, missile navigation, cellphone
apps etc.

Other space Developments List not exhaustive:

Canadian

Cartosat-2C

Comet Siding
Spring

GAGAN

Gsat-16

GSLV MK3

INO

NISAR

Canada: its M3M (Maritime Monitoring and Messaging Micro-Satellite)

communications satellite. Wanted to launch via Russia using Soyuz
rocket.
But Ukrain crisis,so Canada doesnt want bad publicity, decided to
handover the project to ISRO. (via ISROs commercial arm Antrix).
To be launched from 2015 onwards
Earth observation with 62cm resolution
Originated from material left over during solar system formation.
Oct 2014: Comet travels close to Mars.
NASA, ISRO moved their spacecrafts to avoid hitting by this comet.
GPS aided Geo Augmented Navigation System (GAGAN)
Jointly by ISRO+AAI. Air-traffic control, flight-landing during bad
weather.
Existing INSAT-3E got old stopped working in March 2014.
So GSAT-16 for running DD-channels, private channels, internet and
radio in India.
This communication satellite will be launched from French Guiana using
EUs Ariane-5 launcher.
Can carry ~4500-5500 kg satellites= more powerful than existing PSLV
and GSLV systems
Then, We wont need to rely on EUs launch vehicles anymore.
Three stage, third stage is cryogenic.
Can places multiple satellites on different orbits.
Will help ISRO launch other nations satellites as well=> more $$ income.
India based neutrino observatory, 50k tonne magnetic detector.
Underground lab for particle physics and pure research in biology,
chemistry.
Bodi West hills, Theni district, Tamilnadu
By DST + DAE + BARC + TIFR and dozen other institutes.
NASA-ISRO synthetic aperture Radar mission for 2020
Measure land surface, ice surface, glacier, volcanoes

TMT
telescope

TOPS

NASA to give L-band, GPS etc.

ISRO to give S-Band, Launch vehicle etc.
Largest infrared, largest optical telescope.
12x times better than Hubble space telescope
Primary mirror 30 meters wide.
@Hawaii, will finish @2022.
India, Jap, US and Canada giving $$
India gave 1k crore, mirror coating, control system etc.
Terrestrial observation and predicting system by NASA
But an Indian scientist modified it for Indian farmers
Can predict floods, droughts and crop damage.
Will help farmers and agro-insurance companies make proper business
decisions.
TOPS+UID+DBT=> crop insurance money can reach right farmer
quickly.

NASA and others

NASA installed following gadgets on International space station
Rapidscat

CATS

3D printer

Rapidscat earth observation instrument

Purpose: hurricane, weather, ocean winds
Cloud Aerosol Transport System (CATS)
To measure cloud density and location.
Sent via SpaceXs Falcon-9 rocket + Dragon cargo spacecraft.
Will help printing emergency spareparts for ISS repair.

More of USA/EU

Titan submarine

Titan=Saturns moon.
Only two places in solar system, got liquid ocean: Titan + Earth.
NASA is developing a space submarine to explore ocean waters on

Titan.
Curiosity rover

Earth
Week

Found hematite containing rocks at mars. It may have provided chemicalenergy to microbes.

Science

ESA-Roestta

GEDI

Nextgen
spacecraft

Orion mission

RAISE mission

Space-weather

October 12 18.
NASA is inviting people around the world to observe the sky and
share photos
European space agency. Rosetta mission to deploy rover on a comet.
Name of rover= Philae
Name of comet = 67P / Churyumov-Gerasimenko.
Global Ecosystem Dynamics Investigation (GEDI) Lidar device (2018
launch)
3D mapping of forest.
Understand forests role in carbon cycle.
At present, NASA sends astronauts using Russian space shuttle.
Planning to get its own shuttle.
Will goto Mars.
Anyone can register name.
NASA will send it to mars using electronic chip in Orion spacefraft.
Rapid Acquisition Imaging Spectrograph Experiment (RAISE)
mission
Can Capture five images per second => more understanding about Sun
spot activity
UK setup a space weather station.
Space weather anomalies can cause power outages, GPS disruption,
Satellite damage etc.

Space accidents
Orbital science
corp.

Virgin Galactic

They were to deliver cargo to International space station for NASA.

But Antares rocket caught fire.
British billionaire Richard Bransons company.
Aims to fly people over 100km altitude=> few minutes of

weightlessness and see earth against blackness of space.

But its spaceshipTWO crashed due to fault in the feathering system. one
pilot dead.

Chinese moon missions

From 2007 onwards: ChangE-1, 2 and 3.

Moon rover Yutu malfunctioned.
2014: ChangE-5-T1: this is just a test mission before next official ChangE-5 mission.
2017: Change-5, a robotic mission to bring lunar soil and rock samples from Moon.
Only Russia and USA done this so far. China wants to be third country to accomplish
this.

Chinese satellites to flood space

70 Remote sensing, disaster prediction
20 Communication, military
30 Navigation
120 Total no. of satellites China wants to launch.

[Block-6] AGRO related

List not exhaustive
Bharatiya

Carbon-Lite pots

Clam fisheries

Paramparagat Krishi Vikas Pariyojana

To promote organic farming and its market linkages
CarbonLite Pots are made from plant starches, Theyre
biodegradable.
A 1,000 pots can supply 17 kg of carbon benefit, the same as
removing almost 1.5 cars off the road a day.
Available in various colors according to clients requirement.
Clam is a mollusk- found in both freshwater and saltwater.
Ashtamudi lake and estuary, Kerala. Ramsar wetland site
Clam fishery began in 80s. Exports to ASEAN nations
MoEF recognized it for excellence.

Family farming

Hyacinth

Hybrids

Hydrophone

Millets

Oil seeds

Pheromones

Pusa hydrogel

World food days theme- family famring- feeding the world, caring
the earth.
Family farmers = ~200 mn.ht. in India
They produce balanced died, safeguard agro-biodiversity. Important
for food security.
Government gives them subsidized loan, fertilziers, crop insurance,
SMS-service, weather prediction etc.
Aquatic weed,, native of brazil, spread across world. Damages fish
organs.
Indian herbicide: dried leaf powder of a medicinal plant called Coleus
amboinius/aromaticus (Karpooravalli or Omavalli in Tamil).
Mothan: banana hybrid
TTRI-2: Tea hybrid.
Hydropony= growing plants in non-soil mediums
Coconut husk, saw dust, rotten leaves used. = biodegradable
Invention: Carbonlite Pots
Examples: Sorghum, bajra, ragi.
Gluten free. Suitable for Celiac patients
Prevent diabetes, heart disease.
High fiber content=sugar release at slow even pace=helps diabetic
patients.
Low in fat content but rich in essential amino acids, VitB, Calcium
and micronutrients.
food processing=>special diet foods for exports=> good potential for
arid farmers.
Agro min. wants Rabi farmers to grow Oilseeds as intercrop
Better income + socio-economic status.
Less import of edible oil=>CAD, inflation controlled.
They attract the opposite sex for mating.
Indian Institute of Chemical Technology (IICT), Hyderabad
has developed synthetic pheromones designed to attract pests.
Once all pests mass trapped => kill them =>pest population control.

ICAR developed granular powder. Mix with soil + water=>gel that absorbs

and retains water for the crops.

Rashtriya Gokul
mission

Seed sovereignty

Suggest
reforms

Cattle-

Agro-forestry

Conserve indigenous cattle-breeds in scientific manner

Setup Rahstriya Kamdehnu breeding centre
MNCS control seed production and research. Traditional varieties not
persevered.
Need to regulation of private seeds and their pricing
Setup community seed banks
Feed security bill just like food security bill.
Clear policies on milk pricing, cross breeding, vet.doctors,
vaccination, NABARD-loans.

List the benefits of Agroforestry

Salient Features of National Agroforestry policy 2014

Benefits

Practice of cultivating trees on

farm.
Trees provide food, fodder,
wood, fuel and fertilizers.
Biomass, Biodiesel, Biochar
and Biogas production.
Carbon sequestration, climate
moderation etc.

Policy 2014

National level board; Agro ministry as nodal.

Simplify rules under FRA, PESA, Revenue dept
etc.
Land reforms, tenancy rights, computerize land
record
R&D as per agro-climatic zones. Grow suitable
trees accordingly.
Loans via NABARD, PPP funding, Awareness

through NGOs, school syllabus update and so on.

[Block-7] Defense

Nirbhay Missile
Only selected topics

Air-Independent
Propulsion

Contains 2nd gen. hydrogen fuel cell.

It contains 2nd generation hydrogen fuel cell.
Helps the submarine recharge its batteries underwater. Without
oxygen.
If no AIP system => Submarine will have to come on surface for
recharge => enemies can detect easily.
DRDO will fit the AIP system on Scorpene submarines. And later in

Project 75-I submarines.

Brahmos Mini

Dongfeng
missile

31-B

HUMSA-NG

Nirbhay

Nirbhik

Project 75I

Sniffer
molecule

dog

290 kms range at 2.8 Mach speed. (supersonic, faster than sound).
For navy submarines (Project 75I) and airforce (Su-30MKI)
Light weight just 1.5 tonne compared to ergular version.
Jointly Developed by India and Russia. Even thinking of exporting to
friendly nations.
Another Brahmos variant being developed with a near vertical dive
capability to shock the enemy hidden behind mountains.
upgraded version of its 10,000-km range Dongfeng missile 31-A
nuclear missile.
Can reach most American and European cities.
Exhibited on Chinas national day = October 1, 2014 to demonstrate.
Later plans for Dongfeng-41, range of 12,000 km, can hit any
American city.
U.S. plan to send 60 per cent of its military force to Asia by 2020,
Hence China is busy making so many long range missiles.
Hull mounted sonar (new generation).
For navy, to detect enemy-divers trying to attack harbors.
Sub sonic (below sound speed)
800+ kms, DRDO, nuke capable.
Land and sea variants planned
Based on Lakshya Dorone, can be controlled remotely.
Loitering missile, tree top missile (hard to detect on radar), seeker
missile (lock on after launch).
Revolver for women 0.32 bore. 6 bullts, Very light weight.
Indian ordinance factory, Kanpur.
Will Build 6 stealth submarines in India
Power: diesel-electric
Can do Land attack using Brahmos Mini
air-independent propulsion system
Nitro-aromitc compounds =>can be purchased easily to make bombs.
Indian institution of science (IISc) created a new polymer.
Its florescent-glow reduced in presence of TNT & other nitro aromatic

Xiaomi

compounds.
Spectrometer monitors this color change=>bomb detection.
Chiense Mobile maker.
It forwards IMEI, addressbook, text message to its Beijing server.
Hence IAF (Airforce) ordered personnel not to use this phone due to
security reasons.

[Block-8] Physics, Chemistry, Misc.

Confocal
microscope

God particle

Noble Physics

Sapphire glass

From CSIR funding

Broad Spectrum Confocal Microscope can generate 3D images of
objects.
Uses Infra-red beams and crystal fibres.
Imported machine: 4 cr. Desi machine ~1.5 cr.
2012: Higgs boson (God particle) discovered at CERN lab.
Stephen hawking says at 100 bn GeV the God particle could become
unstable, create a vaccum
decay that destroy entire universe.
Akasaki, Amano and Nakamura
Blue LED. Because Blue + Red + Green = white LED = energy
savings.
Compared to CFL, the LEDs 50% more efficient, no mercury, runs 45 times longer.
BEE led joint venture planning to sell LED at cheaper price.
Hardest material after diamonds.
Apply high heat to purified aluminimum oxide=>slice in thin
wafers=>sapphire glass.
Used in LED lighting, high-end jewellery, windows in submarine and
rockets.
Sapphire glass used in high-end mobile phones- it costs 4x times than
Gorilla Glass

Sarkaari initiatives (list not exhaustive)

CDSA

Clinical Development Services Agency (CDSA). For low cost & high quality
clinical development and services

INSPIRE

Innovation in Science Pursuit for Inspired Research programme for the youth.
To encourage them to join science.

KIRAN

Knowledge Initiative for Research and Nurturing to encourage women

scientists come back, who had to take career break/ changed city due to
marriage/childbirth earlier.

Newton-Bhabha Between UK and India for 3 societal challenges- Sustainable Cities and
Urbanisation, Public Health and Well Being, Energy-Water-Food Nexus.
Fund
Scientistteaching
program

scientists will have to compulsory teach kids @school and colleges for 12
hours a year. Without any extra salary. DST+CSIR got ~6k scientists.

SEAT

Scheme for Early Attraction of Talent. Youth will be award for their work, so
they can continue in science field.

SHE

Scholarship for Higher Education. Summer attachment / fellowship with

seniors.

Sindhu
Sadhana

Desi Oceanographic Research Vessel. Will help discovering food-energymineral resources in Indian ocean.

Next (and last revision) note: GS3: Environment and disaster Management.
All the revision notes are archived at Mrunal.org/UPSC#CSE-2014
[Revision] GS2/GS3: Public Health Special: Indigenization of Medical Technology,
Medical-Gadgets applications
CSE-20145 hours Ago1 Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. [Block-1] Diseases
1. D1: Ebola

1. Nigeria Model: How to end Ebola?

2. India and Ebola
2. D2: Malaria
3. D3: Kala-Azar: revised strategy
4. D4: TB related
5. D5: Pneumonia and Diarrhea:
6. D6: Dementia / Alzheimers
7. D7: LASIK Surgery
8. D8: Drug Pricing NPPA
9. D9: Drugs and diseases: misc.
2. [Block-2] Genetic Engineering related
3. [Block-3] Affecting entire community
4. [Block-4] Medical Gadgets
1. Celiac Kits
2. More inventions:
[Block-1] Disease
D1: Ebola

How Ebola Spreads

Originated in Ebola river near Congo

Hemorrhagic fever, gum bleeding, blood in stool-vomit.

Symptoms similar to malaria, cholera hence ELISA test to sure-confirm.

Fruit bats natural host. Bats, primates, antelopes, porcupines affected=> African-juntaa
eating those animals (bush-meat)=>disease spreads to humans.
Most affected: Liberia, Sierra Leone, Guinea, Nigeria.
Mosquitoes and air cant spread it.
Soap, bleach, sunlight will kill it.
Vaccines under trial: Zebov, Ebov, Oral AD5 etc.

Challenges:

Patients kept at home due to poverty and stigma.

UNMEER: UN Mission for Ebola Emergency Response (UNMEER). First ever in
history.
But WTO admitted, lack of funds and mismanagement.
Aussies unwilling to send volunteers, even imposed travel bans.

Nigeria Model: How to end Ebola?

Monitoring people with Ebola-like symptoms. Checking body temperature.

Tracking down everyone who came in contact of such people. Checking their temp. as
well.
Men, vehicles, mobile-hospital infra. Was already available for polio fight. Same used
here.
Flight crew and Airport officials trained.
>900 people monitored, only ~19 came Ebola positive. But this strict vigilance paid off,
& WHO declared Nigeria as Ebola free.

India and Ebola

1. We have only 1 nurse per 1000 people, very high population density + poor sanitation in
slums. Quarantine=mission impossible.
2. Called off the India-Africa summit (54 members) due to Ebola fear. (otherwise running
since 2008. This may help China bolster its image among Africans. Its sending men and
trial-vaccines.)
3. Has Setup Isolation facilities at airports. All incoming travelers being checked.
4. Shortage of PPE (personal protection equipment-full body suits) for health workers.
5. Australia imposed travel ban on Ebola hit nations. But India should not stop people
coming/going to Africa, ELSE others will follow the suit then no outsider will goto work
in Africa. Itll severally damage their economy and society.
D2: Malaria

Artimisinin Resistant Malaria

40 years back, Malaria parasites became resistant to Chloroquine.

Then doctors began prescribing Artemisinin.
But now certain ASEAN nations reporting Artemisinin drug resistant malaria cases.

Solutions:

Asia Pacific malaria alliance @Manila. India also a partner.

Sanofi working on Malaria vaccine. Will be ready by 2015 end.

Malaria
Hemozin-MRI
Detection
Traditional method to detect Malaria:Blood sample=>dye on microscope slide=>count parasites
in blood.
New method

Malaria parasite=>eats Hemoglobin from RBC=> releases Hemozin as waste product.

Using portable MRI (magnetic resonance imaging), you detect the amount of Hemozin in
blood sample=> Malaria confirmed.
Doesnt need any dye or chemicals. No human errors in counting parasites.

D3: Kala-Azar: revised strategy

Female sand fly + Leishmania parasite

Spleen, liver, bone-marrow affected
Second deadliest parasitic disease after Malaria.

Revised strategy:

WHO to give free Amphotericin B drug.

ICMRs rapid diagnosis kit.
Sarkaari insecticides to kill sand fly
Main focus on Bihar, JH, WB and Eastern.UP
Social workers like DOTS workers.

D4: TB related
Normal
TB

Caused by TB bacteria.
Can be treated with first generation drugs.

MDR-TB

XDR-TB

Multi-drug resistant TB. It develops when first line drugs are not taken
properly (person stops drugs with slight recovery).
MDR-TB has to be treated with second line drugs, Patient takes longer time
to recover.
25% of patients are India.
Govt. planning TB-survey with help of WHO+USAID.
Develops when second-line drugs are misused.
e.g. patient not finishing entire course, or doctor giving inappropriate
amount of drug

MDR-TB: Delamanid

Multi-drug resistant TB (MDR-TB) cant be cured with isoniazid / rifampicin.

WHO approved trials for a new drug: Delamanid.
Eli-Lily (American Pharma giant) transferred licenses for : Cycloserin and capreomycin
to help Indian companies mfg. them @affordable MRP.

D5: Pneumonia and Diarrhea:

Pneumonia

Diarrhea

Period

during and after neonatal period

occurs mainly after neonatal period.

Cause

<30% children get antibiotics

>600 million defecate in the open and

drink unhygienic water

Treatment

3-day antibiotic treatment

oral rehydration therapy
costing about Rs.25

Long
Term
immunization
prevention

D6: Dementia / Alzheimers

Nobel medicine 2014

OKeefe, Britt Moser, Edward Moser

Sanitation
exclusive breastfeeding for six
months

Brains positioning system, some cells improve spatial memory, cure Alzheimers
disease.

Whats Dementia?

Dementia is a degernative, Non-communicable brain disease.

Memory loss, impaired judgment, mood swings.
Alzheimers disease is the most common form of dementia
1 every 4 second in the world.
People should use food rich in Omega-3 fatty acids e.g. walnuts, fish, soybean and flax
seeds
Person with AB blood group=82% more chances of getting Dementia.

D7: LASIK Surgery

LASIK useful to those averse to using spectacles

Full form: Laser refractive surgery or laser-Assisted In-Situ Keratomileusis (LASIK).

LASIK can correct following defects

Myopia
Hyperopia
astigmatism
In LASIK, the laser removes tissues to reshape the curvature of the cornea. Therefore, the
cornea needs to have adequate thickness otherwise surgery cant be done.
Surgery done under TOPICAL anesthesia (And not general anesthesia).
Eligible patient: above 18 years. + spectacles power should remain unchanged for at least
one year.
After surgery, patient discharged immediately. He can resume work in 3-4 days.

D8: Drug Pricing NPPA

National pharmaceutical pricing authority

Control prices of 318 essential medicines under Essential commodities act=>Drug
price control order.
Pricing formula: take MRP of all companies >1% market share=>calculate their average
price. no company can sell above this price.
Controversy: when included 108 more drugs which are not in the national list of
essential medicines (NLEM). NPPAs logic- extraordinary circumstances.
Later Government revoked the order which empowered NPPA to do so in extraordinary
circumstances.

Now NPPA working to revise the original 318-walli NLEM list.

D9: Drugs and diseases: misc.

Albumin

ALS bucket

Artificial
blood

ARVS

Maintains filtration pressure of blood.

Essential during organ transplant surgery.
Each bottle costs 6k rupees. Need 10-30 bottles during liver transplant.
NPPA lowered its prices to make it affordable.
Amotrophic lateral sclerosis ALS. Neuro-disorder. Person cant speak,
move his limbs, swallow food etc.
ALS ice-bucket challenge, USA: pour bucket of ice-water on your head,
then nominate three others. Donate money if you cant finish challenge.
(although celebrities donate money despite finishing challenge- for
positive PR image).
For transferring only oxygen and CO2. cant do other functions of bloodlike clotting during wound.
Can be stored for long time. Compatible to all type of bloodgroups (ABO,
perhaps even Bombay Blood).
Two types
1.PFC- Perflorocarbons used in semiconductors.
2.HBOC- Hemoglobin based oxygen carriers
Anti-retroviral drugs shortage.
Theyre used for HIV/AIDS.
NHRC sent notice to Government.

Bombay
Bloodgroup

Extremely rare ABO group, first found among some Bombay folks.
doesnt have any A, B or H antigens.

De-worming

Albendazole tables given in Rashtriya Kishor Swasthya Karyakram.

American giant Gilead science gave license to 7 Indian pharma

companies
To mfg. Hepatitis C vaccine (Sofosbuvir) at affordable MRP for India.

HepC

JenVAC

Desi Vaccine Japanese encephalitis.

Till now relied on Chinese.

Leprosy

Polio

Rotavirus

Bacterial disease can be cured with multi-drug therapy since 90s.

But patients face social stigma. SC asked why this happening?
Baba Amtes Anandwan ashram to supports them, Mahrashtra. Amte had
won Templeton prize (Nobel equivalent for religion).
2014: India became Polio free because no case reported in last 3 years.
Till now weve used oral vaccine.
2015: should switch to injectable vaccine- to prevent any future incidents.
2016: should shift from trivalent to bi-valent vaccine just like rest of the
world.
Inside intestine, cause diarrhea, kills 1 lakh a year
Government to give free vaccine under Universal immunization program
(UIP) from 2015.

[Block-2] Genetic Engineering related

Stem cells

Stem cells can develop into any cell in body. They can be used to create new nerve cells
in brain disorders; new insulin producing cells in diabetes, rebuilding heart-muscles after
stroke and so on.
until now Stem cells were harvested from human embryos=> ethical moral opposition
by Christian groups in the West.
But, Yamanaka developed iPS cells from patients skin. They too can be used like stem
cells. Hence, no more need for embryos.

ACTN3

Biobots

Bioprinting

ACTN3 gene instructs the body to produce a specific muscle protein.

Affects athletic performance.
Everybody has two copies of this gene, one inherited from each parent
Using ATLAS test, parents can find whether child has this gene or not?
So, it can predict whether he can become a superstar athlete or not?
Although data alone insufficient.
made from nano tubes, direction control using magnets.
Application? Sending drug molecule to a desired location in body; eggfertilisation by putting sperm cell inside biobot.
tissue structure created using 3-D printer, then covered with cell
material. Such bio printed tissues and organs can be transplanted to

BRCA genes

Circadian
Bodyclock

patient.
3-D printed human body can be used for anatomy classes in medical
colleges.
Faulty BRCA gene=more chances of breast/ovary cancer.
Myriad genetics sells the test for >$3000. Angelina Jolie underwent
mastectomy surgery to remove breasts after test found faulty BRCA
genes in her body.
USA did not allow company to patent BRCA genes because its not
really an invention. But now company got patent in Australia.
In all human cells, there are four genes Cryptochrome, Period,
CLOCK, and BMAL1
Together they blood pressure, body temperature and rest-sleep cycles
etc.
This is called circadian clock. It keeps us in proper physiological
rhythm.

DNA
fingerprinting

for solving crime, identifying unclaimed dead bodies and paternity tests.
Although, apprehensions about possible misuse, high costs and simple errors.

Gene splicing

A method to transport DNA of one species to another using virus-bacterial

vehicle.

Genetic
engineering

A branch of biotechnology. To manipulate DNA code artificially.

Tailor-made plants and animals can be created.
Make bodies better, eliminate Hereditary diseases.

Project Gene sequencing helps in detecting diseases early-diabetes, cancer to

human genome name a few. Personalised medicine can be prepared according to genetic
make-up. This helps in speedy recovery.

Matchright
technology

Sickle
anemia

Cell

Mother + father => This technology creates a digital embryo=>

predicts possible genetic diseases.
Application? Before marriage, before choosing surrogate mother.
Hereditary. Indian Tribals most affected.
RBC sickle shaped, cant flow properly in vessels.
Modi asked Nobel winner iPS Stem cell researcher Yamanaka to cure
it, during Japan visit.

Synthetic
biology

Create microbial factories. These factories will produce drugs,

vaccines, chemicals.
e.g. producing artemisinin (anti-malarial drug0 using yeast.
May be in future even doing artificial photosynthesis to create food.

[Block-3] Affecting entire community

Ayush Mission

Cigar labelling

E-cigars

Family
planning

Global hunger
report

Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy

Increase raw material, drugs, hospitals, manpower
Penetrate in remote areas
Ayush good because Cheap, flexible, less side effects, accepted by large
public.
Till now: only 20% of packet area showing disturbing photos of throat
cancer.
From 1/4/15: companies will need to cover 80% of total packet area
showing warning and gory images.
Latest: ban on loose cigarette selling.
Electronic Nicotine Delivery Systems (ENDS).
Electronic pen that vaporizes liquid nicotine from cartridge. => no
secondary smoke.
E-cigars can still do organ damage, lung irritation, contain carcinogenic
compounds like Formaldehyde.
But companies trying to get more customers via attractive package,
flavors, deep-discounts.
Indian Government wants them banned, and setup 24/7 helpline
Quitline.
Female vasectomy more dangerous. Need to promote male vasectomy
but rural male-mindset opposed to idea.
Give no incentives/targets to sarkaari-doctors.
Stringent QC for drugs/equipment bough via tenders.
India rank 55/76. no. of malnourished declined thanks to MNREGA,
NRHM, ICDS etc but Brazil, Mexico etc. done better though having
similar GDP growth rate.
>50% women & children anemia. Hidden hunger responsible.
Solutions: iodized salt, fortified flour, biofortifiaction of crops, PDS

reform, Education.

Mental Health
Policy

National
Nutrition
Mission

New
Born
Action Plan

NOTTO

PNDT

Rural service

Tribal health

Financial help to patient and his caretaker.

HR: New cadre of sarkari employees called Mental Healthcare
providers, Train midwives, New PG courses, Funding to hospitals.
Law: Protect their Dignity and human rights. Mental healthcare bill
Oct 10 as Mental health day.
Reduce malnutrition among women-children in 200 most bogus
districts.
Anganwadi workers training, nutrition council @district, ICT-tablets for
data collection.
Reduce MMR from 29/1000 to 9/1000 or less (i.e. single digit)
By 2030
Using 6 strategies under existing Reproductive, Maternal Child Health
and Adolescent Plus (RMCHA+) framework.
Take Help from ASHA, NGOs and Philanthropists.
National Organ and Tissue Transplant Organization (NOTTO)
Special webportal to facilitate organ donations.
PNDT= Pre Conception and Pre Natal Diagnostic Techniques Act,
1994.
Prohibits using ultra-sonography to sex determination
But doctors using new methods in pretext of genetic testing to bypass
it.
Child sex ratio down to 918/1000.
Government made a new expert Committee to investigate + Beti
Bachao-Beti Padhao campaign.
Government thinking About mandatory rural posting for doctors.
Doctor lobby opposed: lack of infra. So super-specialist PG/MD
doctors wont be able to do anything even if posted. e.g. anesthesia,
cardiology, radiology, nephrology.
Anemia, malaria, TB, diarrhear
Need infra: housing, clean water, sanitation, electricity, road,
communication.
Use traditional healers to deliver ORS and anti-malaria drugs

Promote herbal medicine and AYUSH

Employ tribal youth in local health care service.

[Block-4] Medi-Gadgets, Indigenization of Technology

Celiac Kits

Celiac disease= when patient eats gluten (protein in what, rye, barley)- his body mounts
an immunological attack on small intestine=> nutrients cant be absorbed properly.
Long term leads to Diabetes type1.
No cure. Just use gluten free food. Two new
Two diagnostic kits by Indian researchers using Government funding.

Celiac
Microlisa

Celiac Card

based on indirect ELISA

For large hospitals with centralized labs and sufficient space for storing
large no. of smaples
Result in 20 minutes.
For small clinics without facilities.

More inventions:
AVMagnivisualizer

To detect cervical cancer in women by ICMR

Foreign devices 10 lakh, desi device only 10,000.

Cavilon

Runs on battery, can work in rural area, even healthworker with basic
training.

Cavilon= cut prevention cream / spray.

AIBA made cavilon compulsory for boxing matches. Apply 3 layers,
prevents cuts, provides moisture, can last upto 72 hours, no petroleum
jelly.

Inner You

RDB kit

Sravan Implant

Virtual Breast

By an Indian researcher Srinivas Murali in Switzerland.

wearable device that helps the user to track and manage his physical +
emotional health
monitors ECG, breathing, body-fat, stress levels and other and key
vital signs to smartphone and to your doctor.
reverse dot blot hybridization kit.
Thalassemia detection in kids and pregnant women
Imported kit too expensive, this kit only Rs.400
cochlear implant / bionic ear.
Imported= ~9 lakh. DRDOs Sravan implant just ~1.5 lakh rupees.
Undergoing clinical trials at the moment.
Mammogram tests not 100% accurate in detecting brest cancer.
New method: Ultrasound elstography has better detection rate.
To help surgeons get trained in this method, new software designedVirtual breast.

Next Revision note: GS3: Science and technology (non-medical type).

All the revision notes are archived at Mrunal.org/UPSC#CSE-2014

[Revision] GS3: Infrastructure, Coal Scam, BlackMoney, G20-BEPS, Bitcoins

Posted By Mrunal On 25/11/2014 @ 10:51 pm In CSE-2014 | 27 Comments

1. Prologue
2. [Block-1] PPP finance for Infra
3. [Block-2] Infra: Roads and Highways
1. R1: E-toll collection
2. R2: Highway finance PPP: BOT vs EPC
4. [Block-3] Infra: Aviation
1. A1: Draft aviation policy: 2014
2. A2: Aviation: No frills airport
5. [Block-4] Infra: Railways and Shipping
1. Fuel linked tariff policy
2. Rail tariff authority
3. USFD rail track security
4. Railways Green initiatives5. Infra: Shipping
6. [Block-5] Infra: Urban-Smart cities
1. REITs: Real Estate investment trusts
2. New schemes for urban / rural infra.
7. [Block-6] Energy: Coal
1. Coal SCAM
2. Coal Ordinance 2014
3. Coal: Pending reforms
8. [Block-7] Energy: Natural gas
1. Gas pricing
2. Pricing of natural resources
9. [Block-8]Money Laundering, Black Money, Bitcoins
1. Swiz Black money
2. Enforcement directorate (ED)
3. Tax administration reform commission (TARC)
4. G20 BEPS- Profit shifting: HOW?
1. Fiscal Imperialism: HOW?
2. Why BEPS bad?
5. GAAR and Shome
6. P-notes and CGT evasion
7. Bitcoins and Terror Finance
8. Rajanbhais stand on Bitcoin
10. [Block-9] Development vs Extremism
1. Sansad Adarsh Gram Yojana
2. MNREGA Act 2005
3. Van Bandhu Kalyan

Prologue
In the last part revision note on economy

Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Money laundering, Bitcoin, BEPS
Linkages between development and spread of extremism.
All the revision notes are archived at Mrunal.org/UPSC#CSE-2014

[Block-1] PPP finance for Infra

Infra is important because:
1. Population + Economic growth= heavy pressure on Transport + Energy +
communications.
2. So, if these 3 not improved = GDP bottleneck despite demographic dividend + poverty
rise + costly essential services.
3. No environmentally sustainable infrastructure= No inclusive growth
Whats Government role infra?

Planning for all regions Development. Otherwise fueling extremism/secessionism.

To control fiscal deficit, contracting out via PPP.
After PPP projects done, regulating to prevent monopolies and market failures.

PPP problems in India

Early 2000s: model success in highway, port, airports

Boom=overleveraged firm bidding for projects beyond their aukaat. They hoped if
epicfail, well ask for more time to complete project / redraw contract to get
concession/higher tolls.
But subprime crisis + inflation+ Government refused to re-draw PPP contracts /policy
paralysis / environment clearance delays=> projects unfinished=> NPA.

PPP solution in Budget 2014?

3P India inst. To make better contracts for PPP projects, with conditional flexibility
examples:

Traffic trigger: more traffic then allow operator to increase fees.

Re-equilibrium discount: to drivers IF highway operator doesnt improve service.
+ Survey asks Government to help NPA-firms to exit project. Let healthier firms
takeover.
Promote REITs, INVITS, Muni.bonds, IDF etc. for infra-finance.

[Block-2] Infra: Roads and Highways

R1: E-toll collection

Highway toll rates not uniform all over india.

Complaints of overcharging and under-reporting by private contractors
Manual operation =>long queues at toll booth.
2010: Nilekani Committee suggests electronic toll collection using RFID Radio
Frequency identification.
Separate company setup for this- Indian highways Management company ltd. E-toll
made mandatory for all new highway projects. will save 86k crore annually.

How does E-Toll work?

How does Electronic Toll Collection work?

Buy the prepaid fastag from ICICI/Axis bank. Affix it on car windshield.
There will be separate lane for RFID tag-walla vehicles. Simply ride through it and toll
money will be deducted from your pre-paid account.

NH8: Mumbai to Delhi total 26 toll plazas, imagine the time saved.

R2: Highway finance PPP: BOT vs EPC

PPP (BOT) mode

Build-operate-transfer

PPP (EPC) mode

Engineering, Procurement Construction

Contractor selected through competitive

bidding
He construction with money from his own
pocket, and recovers investment from tollcollection or annuity.

This model works fine when economy is

booming. But post subprime crisis, rising
NPA, problems in raising capital through
bank/sharemarket=>Firms not showing
interest in such PPP-BOT bidding.
Even existing projects delayed due to Cost
overruns.
Takes 18-20 months for project approval

Government pays a lump-sum price

for construction.
Contractor selected through bidding.
He is responsible for investigating,
designing and constructing the
project.
He must finish project within time
and
do
maintenance/service
regularly.
Modi Government road minister
Nitin Gadkari wants to shift to EPC
model for 2 years. Once economy
recovers and 3P India drafts proper
contracts, then back to PPP-BOT
model.

Just 3-4 months.

Capital goods sector scheme

Capital goods= heavy machinery used for mfg/construction.

2nd largest imported item after crude oil =high CAD So need to become self-reliant.
Government launched Scheme for Enhancement of Competitiveness of the Capital Goods
Sector
Setup machine tool parks, engineering facility for textile machinery and separate fund for
R&D via tech institutions.
Compulsory QC for earth movers (bulldozers).

[Block-3] Infra: Aviation

A1: Draft aviation policy: 2014

List AAI, Pawans Helicopters on stock exchange=> later disinvestment can be done.
AirIndia privatization not yet.
6 metropolitan airports to be developed into international hubs
Total ~130 airports today. Create more via PPP.
Boost NE connectivity =>no frills airport.
ATF cost 40% higher than other nations. Need to reduce taxes on it.
Incentivize MRO maintenance, repair, overhaul. (via land+taxes incentives)
create more jobs in aviation sectors. Bcoz 100 jobs in aviation => creates 600+ jobs
overall.

A2: Aviation: No frills airport

No Frills Airport= .

Need Air connectivity to backward regions but Low profitability remains a challange.
Therefore, No frills by AAI: no longues, no conveyor belts, single storey bulding
Can be built in 2-3 years, with <100 crore investment.
Approved @5 cities in Arun, Raj, Odi, Karna.

Others issues in Aviation:

49% FDI permitted; greenfield airport 150 from existing (100 kms)
USA aviation safety rating: cat1 to cat2= longer time in checking.

Predatory pricing by spice jet. DGCA notice

State VAT on ATF: 30-35% need to reduce

[Block-4] Infra: Railways and Shipping

Examine the need for re-structuring railways:

Only 31% total freight carried. Truck transport-more pollution and expensive.
Poor operating ratio 94%. Only 6 paisa in surplus
Compromise sanitation + safety
Populist budgets in past. Need Rs.50k cr. Every yr for next 10 years to finishem all.
Too many rail stoppages.

Pricing issues
Fuel linked tariff policy

Diesel , electricity=17% of total

cost
Railways Operating ratio 94%
Hence fuel adjustment component
(FAC): diesel ~7%; electric ~15%
Revised every 6 months. Fares can
be reduced if fuel becomes
cheaper.
Will improve rail income by 8k
crores.

Rail tariff authority

Railway makes 23 paisa loss per passenger,

per kilometre.
Chindu interim budget sets up the Rail Tariff
Authority (RTA).
Chairman + 4 members.
To advise Government on fares for both
passenger and good trains- factors: input cost.
Will reduce the cross subsidization.
Challenge: Under the Railway Act, only the
Railway Board can decide prices. Modi
railbudget silent.

USFD rail track security

indigenously developed ultra-sonic flaw detector

To detect breaks in the rail/weld of the tracks and allow preventative actions.
It measures Ultra Sonic pulse intervals to pinpoint the place of crack.
Can eve detect corrosion in the bottom of the tracks and the size of a crack,
Tracks can be inspected much quicker without blocking any trains.
Desi machine cost 2 lakhs; Imported machine- 2 crores;

Additionally: Bridges over unmanned crossing. RPF escort teams for passenger safety
Railways Green initiatives-

1. windmill, solar panels at each rail station.

2. Green curtain (chowkidari against urinators); Biotoilets with DRDO; 5% blending of
biodiesel.
3. Diamond quadrilateral to connect metros via highspeed rails.
4. Finance and operations
5. 100% FDI in rapid transit, highspeed, suburban and dedicated freight lines
6. PPP, BOT financing
7. 2% project cost to be given as commission if team finishes on time, says New
Railminister Suresh Prabhu.
8. Paperless ops in 5 years. Wifi in selected stations, next gen. reservation system.
9. Tourism: eco circuit, pilgrim circuit etc.
10. Rail univ. to provided dedicated skilled staff.
11. Separate parcel biz from passanger biz.
12. Abad-Mumbai metro: speed >300kmph, JICA help, need 60k crore.
13. Bibek Debroy panel for rail re-structuring, E.Sreedharan panel for transparency and
accountability
Infra: Shipping
Problems:

No ease of doing biz: 150 documents, 4 days clearance, 12 type of taxes.

Large vessels cannot dock; poor warehousing; 12 ports tonnage=Shanghai alone.

Project Sagarmala

Vajpayee Government (2003)

NHAI like Sagarmala Development authority
$$ via maritime cess, PPI, FDI (100% in port Development)
Better ports, inland water, coastal shipping.

Project Sethu samudram: shipping canal between Palk bay and Mannar gulf to reduce time and
fuel. Anti: will hurt biodiversity and religious sentiments.
[Block-5] Infra: Urban-Smart cities

Example: Surat water quality; Boston-gun shot sensors; Dublin-parking lots app; London
Mayor data mining twitter feeds.
50% Indian to live in cities by 2030. Indian Neo middle class wants better civic
amnesties.

Smart cities project= Urban ministry to build New satellite towns, upgrade existing.
Proposed sites: Manesar, Dholera etc.
Street light, water supply to swichoff on timers-Low carbon footprint.
Parking, traffic congestion, public transport using ICT tools.

Financing the smart city projects?

Government to pay 7k crore; municipal debt fund.

100% FDI norms relaxed. More concession to FDI investor, if 30% money spent on
poor/low income housing.

REITs: Real Estate investment trusts

REITs will be used for financing Smart cities

Real estate: home, office, township construction

Investment: by Indian, NRI, foreigners

Trust: like mutual fund.
Pooled money=> near completion projects=>lease/rent=>profit sharing according to units
held.
invITS: infra investment trust. Mechanism similar to REITS but pooled money invested
in ports, highways etc. money earned from service fees/tolls collected.
Benefits of both: investment opportunities, less gold consumption, new finance to recover
NPA, more infra.

New schemes for urban / rural infra.

Sardar Urban housing

Mission

Shyama prasad
Rurban

Muk.

Din Dayal Gram Jyoti

Subsumed Rajiv Awas

Ministry Housing & urban poverty
Slum free India (EWS, Low Income).
Financing via PPP + Interest subsidy
Curative (upgraded existing slums) and Preventive (dont
allow new sluma)

to give villages city like infra+skill training + economic opportunities

24/7 electricity to villages.

[Block-6] Energy: Coal

India got 4th largest reserve coal reserve, yet importing because:
1. Delayed environment clearances
2. Poor rail-linkages between coal mines and factories.
3. Cyclone Phalins impact on Mahanadi coalfields, coal scam And so on
DONE reforms in Coal sector
100% FDI in the power generation, transmission, distribution, trading
49% FDI in power exchanges
1. Fuel supply agreements (FSA) between Coal India and its clients. If Coal India cant
supply 80% of the guaranteed quantity, itll have to pay fine/ give imported coal.
2. Budget 2014 promised: coal supply to all plants setup by 2015, better rail connectivity,
super critical technology and coal washries.

3. Coal ordinance to fix complications arising from SCs cancelation of coal blocks.
Coal SCAM

1973: coal nationalization act private coal mining not allowed.

90s: Coal mines (Nationalization) act amended to allow captive mining. Private
companies can dig coal for their own steel, cement, power etc.
Companies got coal blocks allotted through a screening Committee. It has representatives
of coal-rail-power ministries, state Governments.
Problem: No price discovery mechanism, procedural lapses, non-transparency . Some
companies did not mine after allottment, They were hoping to sell the same block to
another company at higher price a-la 2G scam allover again.
2012: CAG reports loss to exchequer.
2014: Supreme Court cancelled all 214 blocks.

Coal Ordinance 2014

E-auction of coal blocks.

Auction money goes to state Government, where mine is= JHK, W.Bengal, Odisha,
Chhattisgarh etc.
Convicted companies cant bid. Other can companies can bid in e-auction. If license
cancelled earlier- need to pay additional levy
Only captive use, No trading
State utilities to get mines quota. (Because they dont have deep pockets to run for open
bidding against private companies).

Coal: Pending reforms

Investors afraid. Private cos backend infra in previous mines lost. Need clear long term
policy.
Indian government charges highest royalty in world, increases every 3rd year. Need to
reduce.
Coal India given soft-glove treatment in taxation, royalty and allocation. Private players
want equal treatment.
Allow only Large companies because they can afford underground mining=less
environment damage.
CIL & its 8 subsidiaries be modernized according to -TL Shankar Committee.
Stop administered pricing for coal.
Pass the Coal Nationalization bill 200 in Rajyasabha and amend MMDR act for
environment, rehab. Issues.
Adopt Green Law Panel recommendations when it comes.

[Block-7] Energy: Natural gas

Gas pricing

Imported gas: market determined price

Domestically produced gas: to be sold at Rangarajana formula.

Ranga price formula= Average (A,B), where

A= average of US, UK, Japan

B= price of imported gas to India.

Reliance controversy

Using above formula, Reliance gas price would rise from ~$4 => $8/mmbtu. Government
did not implement it because itd need to pay higher subsidy to fertilizer cos (methan
from natural gas=>Heber process=>Ammonia=>Urea and other nitro fertilizers.)
New update: Government to tweak Ranga formula where A= average of US, UK, Japan,
Canada and Russia.
Now the avg. will go down because Russia is a gas producer, prices cheap.
As per new formula, Reliance price rise to be from ~$4=>~$5.6

Pricing of natural resources

Constitution: Union owns all hydrocarbon resources. Auctioning since 99.

New exploration licensing policy (NELP-X) = 10th round, will provide uniform licensing
for oil, gas, coal-bed methan, shale gas. No need to get separate license for each.

Pricing of natural resources

Modified Revenue sharing contract

Existing Production sharing contracts

Government proposed this draft in 2014.

UPA adopted.

During bidding, the company has to indicate

First contractor recovers his investment by selling
how much of oil/gas/its money theyll share
oil/gas, after that he begins sharing Revenue with
with Government, during various stages of
Government.
production.
Immediately
when
production
start,
contractor has to deposit entire amount to an
ESCROW account, from there Government

takes its cut and remaining given to

contractor.
Problem: Reliance allegedly manipulating account
Problem: World price fluctuation, risk factor
books to show higher investment (gold plating) /
in exploration and yet contractor made to pay
wilful underproduction to share less Revenue
from day1.
with Government from KG-6 basin.

Vijay Kelkar panel recommendation

Till 2017: Production sharing contract linked to investment by company. First let the
company recover its investment then begin sharing revenue with Government.
Decide Gas price by linking it with international liquid petroleum products.
From 2017: move to market based gas pricing. Include oil and gas into GST framework.

[Block-8]Money Laundering, Black Money, Bitcoins

Concepts and definitions
Black money

Money
laundering

Tax
avoidance

Money originated from unaccounted sources.

Money hidden from tax authorities.
Process of creating an appearance
That money made from organized crime, actually came from a legitimate
source.
Money shown on record but deals made through legal loopholes to avoid
paying tax.
E.g. Vodafone buying Hutch India via a postbox company in Cayman
island, without paying Capital gains tax to India.
And SC had to let them go because matter outside Income Tax act
jurisdiction.
Tax avoider MNCs usually donot their hide cash in Swiz account. They
openly use the same money for further biz-expansion and even report it
during AGM/shareholder meetings and audit reports.
Although politicians and criminals may have provided them capital via
their blackmoney routed through a postbox FII in a tax haven.

Tax Evasion Money not shown on record, required taxes not paid. Criminal matter
Tax

company shifting tax-residence abroad to pay taxes at home. USA enacted new

inversion

law to counter them.

Round
tripping

Routing domestic investment through Mauritius to avoid taxes. Because of

loopholes in DTAA.

Swiz Black money

2006: A Liechtenstein bank employee gives list of names to Germany.

2009: Germany shares those names with India under DTAA.
2011: France gives list of customers in HSBC Geneva (Swiz.) to India.
2014: Indian Government refuses to divulge names till investigation is over. But has to
hand the names to SC in a sealed cover. Later revealed many names duplicate and
account balance NIL.
SC appointed MB Shah SIT investigating the matter.
2014, Oct.: After Burning hands in SC, Government refuses to sign OECDs MCAA
(Multilateral competent Authority Agreement) for automatic info-sharing on tax matters.
Reason given: India cant commit that information will be kept secret till investigation is
over.

Beyond that Swiz black money topic is mostly bol-bachan on how many DTAA signed, how
much money stashed etc. so instead lets focus on some easy to memorize hardcore points on how
to stop money laundering / black money.
Enforcement directorate (ED)
Under Revenue Department. HQ Delhi + regional offices.
ED Enforces two acts
FEMA 1999

PMLA 2002

Civil Act. ED got Quasi-judicial powers to impose penalties.

Criminal Act. ED can only

arrest, seize asset=>court will
decide.

Only RBI authorized agents can sell foreign currency

Quantitative restrictions on how much desi/foreign Prevention
currency you can bring in / takeout from India. (=>current laundering.
and capital account convertibility)

SC SIT recommendation:

of

money

ED can seize property under PMLA defined offenses of money laundering. But gundaalog coming with innovative ways to launder money, which are not defined in Babaadams PMLA.
o So, Need to expand PMLA Act.
o Amend Mines Act, IT acts, Customs act to allow EDs jurisdiction over them too.
o

Tax administration reform commission (TARC)

May 2014: TARC headed by Parthsarathi Shome, gave report. (now What would General Dong
sing for that man?)
1. Abolish Revenue Secretary post. It is manned by Generalist IAS officer. Taxation
requires subject specialization over finance, banking, commerce etc.
2. Merge CBDT and CBEC=> Central board of direct and indirect taxes. Businessmen who
evade indirect taxes, evade direct tax as well. Merger will help tracking them down more
effectively.
3. Replace PAN with CPAN (Common Permanent Account). Same number be used for
DEMAT, EPFO, custom-Excise passbook, service tax ID, VAT TIN no. and so on. That
way tax evasion difficult.
4. Treat tax payers as customers. 10% of Department budget be spent on customer
services. Separate ombudsman to teach lesson to rude IT officials.
5. Introduce TDS passbook, Issue tax refunds on time.
6. Customs department crucial role in tracking international money/gold/diamond
transactions. Empower them with ICT technology, RFID for Real time tracking of
shipping containers.
Additional: Adopt Direct Tax Code, Abolish Wealth tax. Because juntaa deliberately
undervaluing their property on paper, to evade wealth tax=> real estate black money game
begins from here.
G20 BEPS- Profit shifting: HOW?

MNCs have HQ in first world and subsidiaries in third world.

Subsidiaries (third world) send profit$ to parent company (first world) in form of
dividend, royalty and loan-interest payments.
Over the years, MNCs came up with 3 methods to shift these profits in such way, theyve
to pay minimum taxes
o In third world (usually the source of profit) AND
o In first world (usually the destination of profit).

Three methods for profit shifting:

1.Transfer pricing e.g. Vodafone- selling shares of one subsidiary (India call centre) to
another subsidiary in Mauritius at below market price. India gets less Capital gains tax,
and later Mauritius company sells those shares to third party @market price to make
windfall gain. Thus profit shifted from India to Mauritius. India (source country) got no
taxes. UK, Netherlands (destination countries, HQs of Vodafone) got no taxes.
2.Special purpose entity. Usually a postbox company in a tax haven. E.g. Hutch owned
Hutch-Essar via a postbox company CGP investment ltd. in Cayman island. This postbox
company later sold to Vodafone, thus Hutch Essar India became Vodafone India; while

India got no capital gains tax because matter outside IT act jurisdiction. Here too neither
India, UK, Netherlands got anything.
3.Hybrid mismatch. Showing same money as debt in one country and equity at second
country. Then juggling with shares vs bond to evade taxes.

Fiscal Imperialism: HOW?

In the GS2 IR/Economy revision note, we saw FATCA Act. Indian financial companies
need to collect data of American investors=> send data to CBDT=>to American IRS.
Such methods are labelled as new form of Fiscal imperialism. Because we (Indians)
required to do their work (of spying on American tax evaders in India) without getting
anything in return. No commission, no help to nab Swiz account holders etc.

Why BEPS bad?

Back to original topic: MNCs use three methods to shift profit from one country to
another, to reduce tax liability.
Tax avoided= Government got less money for public service- health, edu., defense.
Suffers.
Small desi players have to pay all taxes= cant compete with MNCs in predatory pricing
and deep discounts.
OECD gave 15point plan to combat this Base Erosion and Profit Shifting (BEPS). Basic
idea: that MNCs must pay taxes in the country where they make profit. And complex
formulas to such calculate tax liability.
2013: G20 finance ministers and governors of their central banks- endorsed idea but
disagreement on calculation formula.
2014: G20 summit @Brisbane
o Well finalize BEPS pact in 2015
o Well begin automatic exchange of Tax.info by 2016 or 17.

Content sufficient to handle 100-200 words question. Not much point in doing further PH.D
because pact is yet to be signed.
GAAR and Shome

Same Shome headed Tax administration reform commission

Tax evasion: hiding transaction, evading taxes, criminal matter.

Tax avoidance: showing transactions but using loop holes to avoid taxes. e.g. indirect
purchase of companies using post-box companies in tax havens (Vodafone-Hutch). Not
criminal directly because loophole used. e.g. Vodafone won in SC.

GAAR: General Anti Avoidance Rules.

IT commissioner take action against business deal made outside India, to avoid taxes.
He can send notice to Indian Citizen, NRI, Foreigners, to recover such money:
Even if theyre living outside India.
Even for retrospective deals i.e. deals happened before GAAR was implemented
Even if deals protected under any DTAA
Burden of proof lies with the party and not IT commissioner i.e. Company has to explain
their deal is genuine.
GAAR not a completely new invention. China, Australia, Canada, New Zealand,
Germany, France, S.America etc already have similar concepts.

Parthsarthi Shome Panel to review the GAAR rules.

IT commissioner should send notices only in rare cases- where he can recover more than
3 crore rupees.
GAAR should not be used for filling revenue shortfalls.
For retrospective cases- only recover tax dues. Dont demand additional penalty and
interest rate
Exempt the buying/selling of company shares from Capital gains tax.
Dont implement GAAR from 2014. Implement it from April 2016.

P-notes and CGT evasion

P-notes are used for money laundering and terror financing

P-Note = offshore derivative instrument

When a person wants to Invest in India but without registering with SEBI / getting PAN
card.
He indirectly invests money using Registered-FIIs via P-Notes. So he doesnt own any
shares, DEMAT account or has voting rights in the company.
~2 lakh crore rupees invested in India via P-notes.

Problems:

Hard to trace original investor- evasion of CGT. Black money.

Hot Money- comes quickly, leaves quickly creates heavy rise or fall in share market, so
even genuine investors money is lost.
Terrorist using P-notes to raise sharemarket then collapse it by quickly pulling out.

Reforms against P-Notes

SEBI classified Foreign portfolio investors (FPI) in 3 categories. Only CAT-1 and
selected groups in CAT-2 allowed to issue P-notes because theyre least risky & maintain
proper KYC in India and parent country.
Longterm: ban P-notes- says RBIs Tarapore Committee, Ex-NSA MK Narayan and
Finmin whitepaper.

Bitcoins and Terror Finance

3 ways to Acquire Bitcoins

Three ways to acquire bitcoins
Mining

Solve the crypto-algorithm created by Satoshi Nakomoto, using special computer

software. Hence called crypto-currency.

Bartering Sell something (desi liquor) to a bitcoin miner and get his coins.

Exchange

Exchange fiat currency (Rupees, Dollar etc) with a Bitcoins owner

(miner/barterguy).
But, Heavy volatility in Bitcoin exchange rates e.g.
1BTC =$200 in October 2013
1BTC= $1200 in Dec.2013

Bitcoin in money laundering / terror finance?

Bitcoin wallet to wallet transactions dont contain IP record or phone numbers or Bank account #
1. In gmail, your ip address, phone number etc. stored.. But in Bitcoin digital wallet- no
personal identity stored.
2. Bitcoin can be converted into dollars, via online Bitcoin exchange sites like Mt.Gox
3. 1+2=Bitcoin can be used for money laundering and terror-financing. Observe above
image.
Silkroad = name of online shopping site selling cocaine using Bitcoin currency. Although
arrested because website address=domain registration, DNS, IP records can be traced.
Rajanbhais stand on Bitcoin
Rajanbhais press statement in December 2013=sufficient to handle almost every question on
bitcoin
in
100-200
words.
What is Bitcoin?

Bitcoin is a Decentralised Digital Currency because no central bank has issued it.
Nobody monitering it.

Its a Virtual Currency generated by solving a crypto-algorithm. Bitcoin is not backed

by a fiat (legal order) or gold, silver, oil, diamonds or any other commodity. its just an
electronic code without any intrinsic value.

Bitcoin regulation?

SEBI, FMC, NSE, BSE etc. noone permitted trading of Bitcoin. Same position in China.
RBI has permitted no Forex dealers under FEMA to convert any currency with Bitcoin.
Mt.Gox & other Bitcoin Exchange website = their legal status unclear.

Bitcoin Dangers?
o
o
o
o
o

hacking, phishing, malware, password lost= cant be recovered. Because no phone

numbers/ personal details stored.
If you buy something using bitcoin, Consumer courts cannot help.
heavy volatility in Bitcoin to dollar exchange rate. Bad for investment.
Media reports that Bitcoin being used for illegal drug, money laundering, terrorfinancing. Youll unintentionally breach anti-money laundering / Anti-terror laws.
RBI still studying legal-regulatory angles. Rajanbhai has same stand on laxmicoin,
litecoins, bbqcoins, dogecoins etc.

[Block-9] Development vs Extremism

Some fodder points as fall back line, when nothing else comes in mind.
In such scenario, the answers thought-process should be Development scheme=>rural
infra improved=>less recruits for Maoists and even their existing cadres would surrender
to join mainstream to enjoy peaceful life.

Xaxa report
Picture worth 200 words. and for more visit Mrunal.org/Polity

Sansad Adarsh Gram Yojana

under Rural Development ministry.

MP adopts & develops one model village in their constituency by 2016 and two more by
2019
Unlike MPLADs, No money to be given. Only social mobilization and peoples power
e.g. celebrating girlchild, holding public officials accountable, cleanliness drive etc.
The model village will influence other villages nearby to do similar=> overall rural
Development.
PM adopted Jayapur, Varanasi.
Success depends on enthusiasm of MP, Villagers and district administration.

MNREGA Act 2005

under Rural Development ministry

Promises minimum 100 days of unskilled manual work, To each rural household, In a
financial year.

Problems

On the ground its not a panchayat-centric and demand driven program.

Gram Sabha unaware of powers. Social audits not done.
Shortage of Technical staff => Delay in work measurement => delay in payment.

At many places, males find higher wages in nearby towns. Only a few women come at
MNREGA sit =>worker shortage= Big MNREGA projects cant be done.
U w/o Q: universaliation without quality. Poor assets washed down on first rain.
PIL: against Art.14, 16, 23: State giving lower than minimum wages.
UPA itself reduced outlet from 40k to 33k.

Suggested reform

Budget 2014: will use MNREGA for productive agro assets, tourism infra.
Done: Wage: material ratio=> 60:40 to 51:49.
Done: 50% of works in water conservation projects.
Not done: only for backward areas.

Van Bandhu Kalyan

Gujarat scheme, officially called: Chief ministers 10 point program for Scheduled
Tribes. Jaitley budget announced it for all India.
Employment to Tribal families
Education- ITI, Hostel in tribal tehsil
Economy: market linkage to sell their handicraft.
Health: Chiranjivi Yojana, medical camps for anemia etc.
Housing for all tribal families
Safe Drinking water, Irrigation, watershed programs.
All weather roads (to habitats with population of 250 or more)
24/7 electricity, Urban Development, broadband connectivity in tribal tehsils.

All the revision notes are archived at Mrunal.org/UPSC#CSE-2014

Alternatively you can check in the top black menu=>Current=>revision note.

Article printed from Mrunal: http://mrunal.org

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- Mrunal - http://mrunal.org -

[Model Answers] World History Set#2: League of Nations, Unification of Germany & Italy,
Seeds of WW1 by Roman Saini
Posted By Mrunal On 24/11/2014 @ 5:53 pm In History | 89 Comments
1.
2.
3.
4.

Prologue
Q4. Germany vs Italy unification
Q5: Towards First World War
Q6: League of Nations

Prologue
Hi friends, this is Roman again. Hope your mains preparation are at its peak. I had the
opportunity to give a TEDXtalk on How to crack worlds toughest exam. Click me to watch it
on Youtube. Though I strongly feel watching the talk will be way better and highly enriching, yet
I have jotted down the keypoints here: (we do care about those who dont have high bandwidth
internet to watch youtube:)
1. You must either pursue your own dream or you will end helping others achieve theirs.
2. Competence is more important than confidence. Minimum 1000 hours practice essential
to become proficient.
3. Follow the Romans rituals : Eat, Exercise, Sleep for 7-10 hours; Dont drink desi liquor
or smoke as they hamper your memory formation and cognitive performance.
4. You have to be decisive. Youve to come out of your comfort zone, go against what your
loved ones want.
5. Stop arguing with others, especially with irrational people because they will bring you
down to their level and beat you with their experience.
6. Overcome SAD: Stress-Anxious-Depressed mentality.
7. Follow LAR: Logical, Argument and reasoning. Always have a rational outlook, Always
question everything.
8. Be more risk friendly: seduction of safety much more perilous than perception of risk.
Anyways, lets continue from where we had left. The model world history Q&A for Mains
exam. Please provide your valuable feedback in the comment section below. Earlier part
available http://Mrunal.org/history
Q4. Germany vs Italy unification

Q. Compare and contrast German unification with Italian unification, with special emphasis on
role of Bismarck and Cavour.
Ans. In the history of Europe, Both German and Italian unification were landmark events, with
certain
similarities
and
dissimilarities.
Similarities
1. Central theme was identical i.e struggle for national unity and its attainment.
2. Both began the period with disunity and harsh treatment at the Congress of Vienna in
1815. They made unsuccessful attempts in 1848 (instigated by French Revolution), and
finally attained unity at almost the same time with similar military operations in 1871.
3. Both unification occurred with support of strongest state in both nations, SardiniaPiedmont in Italy and Prussia in Germany.
4. Both protagonists Count Cavour (Italy) and Bismarck (Germany) opposed republican
system and supported strong monarchies.
5. Both states encountered initial resistance from stubborn Austria and were trying to throw
away Austrian yoke from their territories.
Dissimilarities: Resemblances between the two are superficial.
Points in favour of Bismarck:
1. Germany already had a greater measure of unity prevailing than Italy. There was no
foreign rule to be overthrown and no interferences from Popes side.
2. Piedmont was an extremely weak state, so Cavours task was far more difficult as he was
dependent on foreign aid for Italian Unification.
3. In contrast, Bismarck just needed neutrality of other states as Prussia already commanded
respect and prominent position in Germany. Zollverein provided economic unification
which was absent in Italy.
Points in favour of Cavour
1. Cavour had support of Italian people while Bismarck had to struggle and work against the
popular will and force unity upon a reluctant nation.
2. Cavour had full support of King Emmanuel II, while King William I supported Bismarck
bitterly and reluctantly.
3. Cavour had support of intellectuals such as Mazzini and Garibaldi, while Bismarck had to
do everything on his own, unaided and alone.
4. Bismarck had to wage two wars against two big European powers -Austria & France.
Austria was deeply entrenched in Germany and its expulsion would have caused much

more opposition in Europe as compared to in Italy. Hence, Bismark faced severe

diplomatic difficulties than Cavour.
Q5: Towards First World War
Q. Killing of Duke Ferdinand was the immediate cause for WWI, but the seeds were sown
decades back. Critically analyze.
Ans: On 28th July 1914, Austro-Hungary declared war on the Serbia, exactly one month after
the assassination of Duke Ferdinand. Although the war was between 2 countries, the whole
world came under its ambit only because of the seeds sown decades back through various treaties
and events:
Rise of Germany:

In 1871, German Unification significantly improved its industrial and economic power.
Germany became one of the largest producer in iron, steel, coke, dye and
pharmaceuticals, artificial dye and vied with the British Royal Navy for world naval
supremacy.
Arms race between Britain and Germany eventually extended to the rest of Europe. All
major powers began devoting their industrial base for defense production.

Bismarck

To protect infant Germany, Bismarck followed a policy of cautious continentalism.

Triple Alliance was signed among Germany, Austria, and Italy. But, this mutual
alliance system was militant in character.
Thus, Bismarck laid down a curtain between Western and Eastern Europe, creating an
environment of mutual suspicion among nations.

William II
Kaiser William II introduced the policy of Aggressive Imperialism and Weltpolitik (world
politics) with three objectives:
1. Interference in world politics
2. Expansion of Germany
3. Naval empowerment
This policy gave promotion to alliance system.

1. Triple Entente among Britain, France and Russia to counter the Germany led Triple
Alliance.
2. France and Russia Dual Alliance
3. Britain-Japan friendship treaty (1902)
Although remaining world was out of formal treaties. They too were dragged to serve their
colonial masters. Thus a deadly script was written on social, political, military and economic
developments, leading to conflicts like Eastern question and Balkan crisis and finally culminated
into WW1.
Q6: League of Nations

Q. What were the important features and achievements of League of Nation. Why do you think it
failed?
Ans. In his 14 point program for world peace, US President Woodrow Wilson, emphasized the
need of a global body to provide a forum for resolving international disputes and precluding
another world war. Thus League of Nations (LoP) born in Geneva with 31 members initially:
LoP had 3 mechanisms to settle disputes:
1. Call the 2 states and solve the predicament amicably. The offender nation would be
ordered to cede the territory of other state.
2. If the offender state refuted, League could put economic sanction on aggressor country by
severing the economic ties and pushing it towards bankruptcy.
3. If this too failed, League could permit physical sanctions i.e. combined military action
against the offender.
Achievements of the LON:
1. Solved the disputes among smaller countries such as Poland and Finland, Albania and
Czechoslovakia.
2. Rehabilitation of refugees of World War I.
3. LoNs Health organisation fought against the deadly diseases such as Chicken Pox and
Malaria. Later it became WHO. (1948)
4. Proposals for the protection of rights of minority their culture, language and religion e.g.
Karachi session 1931
Reasons for Failure:
1. Absence of big powers in initial years:
a. League did not invite Germany and Russia for membership; and America
eschewed itself from joining League.
b. These nations were the strongest & most capable of putting military pressure to
enforce Leagues ideology.
c. Britain & France were totally exhausted after WW-1 to enforce Leagues
ideology.
2. Adamancy of big powers in their personal issue e.g. Japan refused to listen to LoN on
Manchuria-issue (1931). Italy did the same on Ethiopia-issue.
Albeit, LoP had certain credit to its name, but due to such inherent weaknesses, inability to
enforce the territorial-rights and the unstable economic-political situation of the world, League of
Nations failed to fulfil its objective of maintaining the world order.

More questions later. In the meantime,

I can be reached at facebook.com/romansaini.official

For more articles by Roman Saini, visit unacademy-upsc.com

Article printed from Mrunal: http://mrunal.org

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Click here to print.
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- Mrunal - http://mrunal.org [Revision] GS3: Economy-Planning, Budgeting, Resource mobilization & Farm subsidies
Posted By Mrunal On 23/11/2014 @ 10:20 pm In CSE-2014 | 19 Comments
1. Prologue
2. [Block-1] Planning commission (PC) why replace?
1. Modis NDRC
2. Productivity commission
3. SriKrishnas FSLRC
4. New Financial sector regulators
5. PDMA Debt Management
6. PJ Nayak Committee
3. [Block-2] Budgeting reforms
1. Bud1: FM 4 kharchaa-Paani
2. Bud2: Feedback Loop
3. Bud3: Curbing fiscal deficit
1. FD1: Disinvestment Keypoints
2. FD2: Fuel subsidies curbed
3. FD2A: Diesel deregulation: benefits of
4. FD2B: Modified DBT
5. FD3: 10% cutdown in Non-plan Expenditure
4. [Block-3] Banking sector
1. B1: Why Monetary policy ineffective?
2. B2: Urjit Patels reforms 4Monetary Policy

3. B3: RajanBhais monetary policy

4. B4:Jan-Dhan
5. Nachiket Mor: financial inclusion
6. Small Banks and Payment banks
5. Misc.Short term reforms
6. [Block-4] Farm subsidies, buffer-stock, PDS
1. MSP, FCI, procurement
2. Fertilizer Subsidy reforms
3. Sugar pricing (Government intervention)
4. National Food security Act (NFSA)
Prologue
Revision of selected topics for GS3 syllabus:
1. Issues relating to planning, mobilization of resources
2. Government Budgeting.
3. Issues related to direct and indirect farm subsidies and minimum support prices; Public
Distribution System

lets begin from red circle no.1

Planning, budgeting and resource mobilization should be seen from three stage economic
reforms. (as suggested by Economic survey)
Duration Focus
Long
term

Action
Administrative
legislative
regulatory reforms

Mid-term Budgeting

Replacing Planning commission

setting up performance commission
Srikrishanas FSLRC
Feedback loop, performance
budgeting
Reducing fiscal deficit
Separate body for
public
Management

based

debt

Banking

Short
term

Stroke of
ministries

pen

@individual

Urjit monetary policy reform

Jan Dhan
Nachiket Small / payment banks

MoEF reforms in 100 days.

[Block-1] Planning commission (PC) why replace?

Structure functions = read from M.Laxmikanth. Planning commission sucks because:
1. Achieved >9% GDP growth-rate during 2005-07, thanks to American boom prior to subprime crisis, pretty much all nations of world experienced high growth. So 9% GDP did
not come from Monteks magic wand.
2. Post sub-prime crisis, failed to evoke the animal spirit in Indian economy. GDP going
down, inflation going up for 2008 to 2013.
3. Reduced poverty by doctoring the BPL-line. Tendulkar line says 27 crore BPL, if we use
Ranga line then 37 crore BPL. Planning commission brags reducing poverty line on
Tendus parameters.
4. Toothless body, cant hold State/union/ministries/departments accountable for failing to
achieve targets.
5. Hopes that CAG =>Public accounts Committee will take care accountability part. But
PAC too is pretty much toothless.
6. Failed to implement land reforms. Faulty policies for MSME, industrialization, Factorylabour law problems we saw in GS2 MFG revision note.
7. Office manned by Generalist IAS/IES with short tenure; panel members filled with
academicians and jholachhap NGOs. Need subject specialists with international exposure
like Rajanbhai.
8. Designed CSS with One size fits all approach and a few extra crores to NE/J&K/Hillstates and LWE.
9. But for long, it did not use pilot projects / sample testing / interaction with states.
10. Hence, IAY, ICDS etc. programs failed to show tangible result despite pumping crores.
11. Tried to bypass state Governments via NGO-funding, DRDA. Hence States
unenthusiastic about implementing Central-schemes named after you know who.
12. Only in 2013- reforms done like reducing # of CSS, 10% flexifund to states, direct
transfer of money to state consolidated fun etc. But its too late.
13. Shortcomings in planning commission => new bodies sprung up like PMs economic
advisory council, PMs project monitering group and so on=> more brains=> more lack
of coordination.

14. Modi says planning commission (PC) is beyond fixing- just like Gotham city and Delhi
city. Wants to replace it with a body similar to Chinas National Development reform
commission. (NDRC)
15. Moily says NDRC good for China but not suitable for federal nation like India. Better
restructure PC again by addressing above 13 bullets.
Modis NDRC
Modi wants to replace PC with a body like Chinas NDRC. (or atlest experts say so). Lets
Chinese NDRC doing following

India present system

Makes macro-economic policy

FM+RBI

Approves
projects

investment

&

construction CCI, FIPB and many other bodies @union and

state level.

Energy & oil policy

Oil ministry, DG Hydrocarbon

Looks after Poorer Western Provinces

Separate ministry for NE Development

Parent: State council headed by President of

Headed by PM. Disinvestment in ONGC, CIL etc .
China

In short, Chinese NDRC controls pretty much everything, just like a communist unitary
Government would want. Hence Moilys criticism- NDRC unsuitable for Federal India.
Productivity commission

Problem in Environment laws so TSR Subramanium Committee, Problem in railway so

Bibek Debroy Committee, problem in IPR so Prabah Sridevan Committee..such
piecemeal approach and firefighting must stop.
Economic survey says create a separate Statutory body called Productivity commission.
To Review laws, regulations, processes continuously.
Publish report cards of each ministry and department.
Advanced economies have such bodies.

SriKrishnas FSLRC
Recent scams and solutions taken

Sahara-scam

SEBI ordinance

NSEL scam

FMC shifted to FM

Saradha chitfund scam Plan to amend Chit fund act

Such piecemeal / firefighting approach => scamsters shift base from one sector to
another, use technicalities and loopholes to get stay orders & escape.
Hence we need comprehensive reform in financial rector regulators.
2011: Government setups Financial legislative reform commission under Justice BN
Srikrishna.
Gave two type of reforms (1) non-legislative (2) legislative

Legislative reforms:

Present: dozens of acts for banking, insurance, provided fund, forward market, NBFC
etc.
Srikrishna says repeal them all, and enact a new law Indian financial code. (IFC)
IFC will be a single, unified financial law with precise objectives; clear-cut jurisdictions
for fin.sector regulators with adequate checks and balances.

New Financial sector regulators

Financial sector legislative reform commission (FSLRC) recommended this

Present body

Replacement in Srikrishnas IFC

RBI
SEBI, FMC,
PFRDA

IRDA,

SAT (SEBI kaa Baap)

RBI for banking regulation and monetary policy

Separate public debt Management authority PDMA

All to be merged into a single UFA: Unified financial agency

FSAT: Financial sector appellate authority = UFA kaa baap.

Ombudsmans, consumer
FRA- Financial redressal agency to hear all complaints.
courts

FSDC

Same. But Oversee all of above.

Financial stability and Development council is under
Department of Economic affairs
FM + bosses of (RBI, SEBI, IRDA, PFRDA and FMC)

Work for Coordination, consultation and fin.literacy

Misc. bodies: data centre, resolution corp.

PDMA Debt Management

Present, RBI is the debt manager of the Government. = Conflict of interest.

Government releases Government securities (G-Sec) to borrow money from market. RBI
uses the same G-sec to control money supply = conflict of interest.
Srikrisha (FSLRC) proposed setting up separate public debt Management office.
(PDMA)

Should India setup separate PDMA?

Yes because

No because

13th FC (Kelkar) and FSLRC (Srikrishna)

recommend this path.Advanced economies Only RBI got necessary staff, infra and expertise to
like Sweden, NZ, German, Denmark etc. use manage debt of both union and state. No time for
this path. Central bank and debt trial-error with new body
Management office are separate.

No conflict of interest=Better Management

of public debt and better monetary policy

Separate PDMA cant stop conflict of

interest. Government can still force PSU
and sarkaari banks to buy G-sec, because
Government
=largest
shareholder=its
chamchaa-log in board of directors.
Economic survey calls this financial
repression

PJ Nayak Committee

Repeal bank nationalization and SBI act

Sell the shares of Public sector banks to newly setup Bank investment company. (BIC)
BIC to look after appointments, business strategies.
Until BIC done, setup Bank board bureau (BBB) to look after board-CMD appointments.
Age tenure reforms for upper Management.
Result: less Government control = more efficiency in banks.

now, lets focus on red-circle No.2

[Block-2] Budgeting reforms

Both rail and general budget 2014 covered under Mrunal.org/economy

But syllabus says budgeting. So, lets check three reforms in budgeting process.

Bud1: FM 4 kharchaa-Paani
Until now, Department got funding decided by two brains

Non-plan Expenditure = FM
Plan Expenditure = PC Planning commission.

Result: Sub optimal allocation, Diffused accountability, poor return on the money invested.
Solution: Budget making unified @FM, hell decide both plan and non-plan Expenditure.

Bud2: Feedback Loop

Economic Survey observed:

Government doubled the money spent on each child, in last 7 years.

Yet as per NGO Prathams ASEAR report, >50% of class5 kids cant read class2 book;
>50% of class8 kids cant do division.
Every year, ministries given higher funds than last year, irrespective of achievement.

Survey solution: Feedback loop mechanism in budgeting.

Budgeting reform: Feedback loop

After financial year is over, get an independent body to analyze ministry/Departments

performance.
Next years budget depending on performance card: increase fund/ decrease fund/ change
scheme features/ give bonus to babus / cut salaries of babus

Bud3: Curbing fiscal deficit

High Fiscal deficit bad because

Angle1

Government begins monetizing deficit i.e. RBI ordered to print new currency
notes to fulfill Governments debt=>rupees real value eroded=>inflation =>RBI
has to increase repo rate to curb inflation =>expensive home/business/vehicle
loans=> less purchase=>unemployment/pink slips in private sector.

Monetizing deficit=>inflation=>Real interest becomes negative if you invest in

bank/sharemarket- your savings will be eroded.
Junta invests in real estate=>black money
Junta invests in gold=>higher CAD=>expensive crude oil => expensive
petrol/diesel=>high inflation=>real interest become more negative =>vicious
cycle.

Angle2

Angle3

Government issuing more G-sec=> PSU and banks forced to buy them=> less
loans/capital for private businessman. =>Government has to relax FDI=>
Kiranawallaa unemployment, desi-artisan unemployment.
Government spends too much on Populist scheme=> infra sector finance left to
PPP=> higher tolls, higher light bills=> purchasing power down=>
unemployment / pink slips in private sector.

Therefore, FRBM act wants Government to do following

Reduce this

To this

Effective revenue deficit 0%

Fiscal deficit

By this

2015, 31st March 1.6% of GDP

3% of GDP 2017, 31st March 4.1% of GDP (>5 lakh cr)

So, what has Modi done to reduce fiscal deficit?

But present level is this

FD1: Disinvestment
FD2: Fuel subsidies cut down
FD3: 10% non-plan Expenditure cutdown

FD1: Disinvestment Keypoints

Pro: less Government control over board= more efficiency. Overstaffing, lossmaking
gone.
Anti: private sector cant cater poor, Government earning declines, selling assets to fillup
fiscal deficit is unhealthy.

Disinvestment in India

Permitted with 91s Industrial policy.

Then Rangarajan, GV Ramkrishan panels and various chillar Prime ministers

Government Disinvestment Policy

Vajpayee

UPA-1

UPA-2

Modi

Strategic PSU: no disinvestment

Non-strategic: phased
Profit making PSU: No disinvestment
Sick units to be revived
PSUs to be given more autonomy to make them profitable
Overall, not much Disinvestment given left allies opposition
All PSUs can be disinvested upto 49%. Meaning Government to keep 51%
ownership
Money earned from disinvestment=>NIF =>given to bank recapitalization,
metrorail, nuke energy, EXIM-NABARD-RRB
Target 40k cr but hardly 16k made because file-pendency and luckwarm
response in stock-exchange.
Later took CPSE-ETF solution. i.e. 10 CPSEs shares given to Portfolio
manager Golmand Sach. He issues New fund offer of Rs.10 each. You can
buy and re-sell it @stock-exchange, hence called Exchange traded funds.
6 bogus shutdown: HTM watches, Hindustan Photo films etc. Rs.1000
crore given for their VRS
5 loss making to be revived e.g. HMT Tools
NHPC, CIL, ONGC: 5-10% disinvestment via direct selling @Stock
exchange

FD2: Fuel subsidies curbed

When petrol, diesel, kerosene sold at below international price=> OMC losses (underrecovery)=>Government gives them oil bonds as subsidy payment.

2010 Kirit Parekh Committee says stop.

But LPG, Keroseneadministered prices continued.
Petrol deregulate: OMC+Petro Ministry to decide price
Diesel deregulation: Jan13. 50 paisa increased per month. Finally at deregulated @Oct
2014.

FD2A: Diesel deregulation: benefits of

Jan 2013: diesel price increased by 50 paisa each month.

Oct 2014: market linked. If international price go down, diesel to be cheaper.
Became Rs.3 cheaper than Sep.2014 => inflation goes down=> RBI may cut repo
rates=>cheaper loans=>more demand of goods and services=>GDP, jobs improve
Less subsidy burden=>less fiscal deficit=> Soverign credit rating improves=>more FDI,
FII to India.
Under recovery gone=>OMCs can do Biz.expansion, give better service.
Reliance-Essar can sell diesel. (till now relied on state-OMC bcoz they did not get
subsidy)
Junta to buy Fuel efficient car, no more blind purchase of diesel vehicles because it was
cheap.
More Usage of Public transport

FD2B: Modified DBT

DBT will help reducing LPG subsidy burden

2013: Aadhar Linked DBT (12 cylinders)

2014: Selected districts: Modified DBT. Dont need Aadhar. Even bank account no. /
LPG customer id sufficient. Rs.568 will be transferred.
1/1/15: all India implementation.
Will reduce subsidy burden by 15%. (LPG subsidy costs ~48k crore)
Additional reform underway: Government to give LPG subsidy on per kg basis rather
than per cylinder basis. Will help even migrants and slum-folks who buy small sized
cylinders. At present small cylinders dont get subsidy.

FD3: 10% cutdown in Non-plan Expenditure

At present Total Non plan: ~12 lakh crore | Plan: ~6 lakh crore
FM ordered following, for 2014-15
No 5-star hotels for conferences
Only cheapest fare air-travel
Freeze on new vehicles & appointments
Result: 10% reduction in non-plan => ~1.2 lakh crores saved.

[Block-3] Banking sector

Now lets focus on red-circle No.3

B1: Why Monetary policy ineffective?
In India, RBIs monetary policy fails to curb inflation because

People dont have many investment alternatives. Commercial banks have high deposits.
Repo rate change doesnt affect their money supply immediatly.
Monsoon uncertainty, cyclone, flood, draughts => Supply side constrains
Crude oil, gold prices outside RBI control
fiscal deficit, public borrowing, subsidy leakage=RBIs money supply calculations
disrupted
Unorganized money market; Shroff; lack of financial inclusion. RBI cant control their
interest rates.
Then how reform monetary policy? Ans. implement Urjit Patel Committee report.

B2: Urjit Patels reforms 4Monetary Policy

sorry, too much workload, no time to change Chindus photo.

Point#1: inflation targeting

Target=4% CPI, +/-2% Band [=control inflation in 2-6% range.]

Tool=Repo as policy rate, +/-1% spread in RR-Repo-MSF,
Time limit: 0/12/24 (months)=10/8/6% (CPI)
Strategy=keep repo higher than CPI.

Point#2: fixing accountability

Setup monetary policy Committee (MPC) headed by RBI governor, 3 insider (RBI
official) and 2 outsider members.
Decide policy by majority voting.
Issue public statement in case of failure.

Point#3: Government to help RBI

Stop administered prices (MSP), wages (MNREGA), interest rate (farm loans
Implement Vijay Kelkar fiscal consolidation report.
Religiously follow FRBM.

B3: RajanBhais monetary policy

Bi-monthly policy from April 2014 onwards(earlier every 45days)

Kept Repo unchanged to 8%. Although reduce SLR from 23% to 22% => banks left with
spare money to lend to private sector=>GDP growth.
Agreed to target CPI: 8% by Jan15; 6% by Jan 2016.
Oct 2014: CPI down to 6.45; meaning its working.
External challenges: 60% chances of El-Nino, Geopolitical problems in Ukraine, Syria,
Iraq & their possible impact on crude oil prices.

B4:Jan-Dhan

why fin.inclusion important for poverty removal=> check GS1 revision note.
Fin.inclusion attempts in past: Nationalization, RRB, Coop banks, BCA, Swabhiman,
Swavlamban, MFI (24%), No-frills account, 25% rural branch rule, BMB, Bandhan,
IDFC.
Still 49% families- no account; 55% rural dalits borrow from money lenders @34% rate.

What is Jan dhan?

six pillars of Jan Dhan Yojana

Dept of Fin services. 15/08/14; 7.5 cr families in 1 year; 6 pillars strategy

1.Sub-service area to cover 1000-1500 families within 5 kms distance

2.Each family 1 account, rupay debit card, 1 lakh accident cover, 5k overdraft if good
credit history.
3.fin.literacy campaign; 4.credit guarantee fund to cover losses 5.sell micro insurance
product 6. DBT.

Criticism of Jandhan

Insurance cover only if rupay card used every 45 days. (NPCL pays your premium,
NPCL runs Rupay)
Banking Correspondence Agent model: 2% commission, misconducts by RBI report.
47% BCA untraceable.

Hawala via smurfing (sending money overseas in small units) and money mules, fears
Rajanbhai.

Nachiket Mor: financial inclusion

Universal banking account for all residents by 2016

White label BCA (to tie up with multiple banks).
Affordable Investment and insurance products for poors.
Consumer protection in financial services. (Fin. Redressal agency)
Bank access within 15 minutes; Payment banks, Small banks, wholesale banks.

Small Banks and Payment banks

Rajanbhai wishes to launch these banks for greater financial inclusion under Nachikets report.
Small banks
Take deposit, give loan but small area of
operation.

Payment banks

Take deposit only current account,

saving account
No fixed deposit, no loans.

Customer money circulated as loan to MSME,

Only invest in G-sec. cant give loans
unorganized workers, small/margi. farmers.

MFI, NBFC can convert to small banks

Even individual with 10 years xp. In
bank/cooperative sector can apply
Requirements: 25%rural branching, 50%
loans to MSME

Focus:
Payment/remittances
for
poors, migrants, unorgnized sector.
Max. balance per customer=Rs.1 lakh

so far, we saw long term reform, med. term reform, now one last point:
Short term reforms
Slow environment clearance, cited as one of the main reason GDP decline. Environment ministry
did these reforms:
1. No environment clearance needed for following:
a. Border: LAC 100kms, BRO permitted
b. Naxal: forest land 5ht. Convert for public buildings
2. Ganga basin-5 states: industries to install emission monitoring systems.

3. Web portal for file clearance

4. GIS system forest clearance
5. TSR Subramium panel to review green laws=> long term reforms when report comes.
More points can be added by throwing statistics and schemes from 100 day reports by various
ministries. but revision cost-benefit not that good.
Misc. topics
GDP

New GDP calculation with base year with as 2011-12. Will include unorganized sector=>
higher GDP, because earlier they were not included

PPI

Producers price index to replace WPI. To replace WPI.

Will include service sector= broader coverage
Experimentation began in banking, postal, telecom and railways
Agro. Prices will be difficult to track though.

[Block-4] Farm subsidies, buffer-stock, PDS

MSP, FCI, procurement

Problems?

MNREGA+Rising income= more demand fruits, veggies, edible oil, milk, egg, protein
food.
But Government keeps cereal MSP high for farmer vote bank, cheaper electricity and
fertilizers=> more farmers grow cereals.
This Supply demand mismatch=food inflation from non-cereals.
FCI open ended procurement but lack of shortage capacity=Rotten grain.
Leakages in PDS=blackmoney + inflation.

Solutions?

@Farmer: Remove MSP, give direct cash transfer to farmers, include urea in NBS;
more R&D to raise productivity, farm mechanization (=more employment in
rent+repairs),
@FCI:
o Decentralized procurement: instead of FCI, states themselves procure and
distribute PDS. Started in 90s but only few states adopted.
o Existing: Private.entrp. guarantee scheme+ Grameen Bhandaran + 100% FDI in
warehouse, warehousing receipts to get bank loans; offload excess wheat/rice in
open market to curb prices.
@PDS: Food stamps/DBT to poor= no more leakage or hidden hunger; allows PDS
shows to sell other items to keep profit & reduce hoarding, online monitoring of stocks
etc.
@Retail: Reform APMC act. Allow- private years, farmer-SHG to direct sell, create
national market for agriculture (law), online info on pricing, no more market fees; stable
export policies.

lot More bolbachchan can be done but everything boils down to points given above.
Fertilizer Subsidy reforms

Nutrient based subsidy- on weight of macro/micro nutrients. Farmer gets tailormade

fertilizer as per soil requirements (using his soil-health card from budget 2014).
EPICFail because: Urea not covered, NBS subsidy not given quickly to companies.=>
excessive urea use=> soil NPK ratio disturbed; subsidy bill increased to 70k+cr.; higher
import=CAD; smuggling.

Sugar pricing (Government intervention)

State Government administered price (SAP) higher than unions MSP/FRP (fair
remunerative price)
Mill owners need to pay SAP to farmers=>losses because retail sugar price declining.

Mill owners in arrears: union giving interest free loans to them. (SEFESU scheme).
Ranga. Committee says stop SAP & adopt FRP.

National Food security Act (NFSA)

Easy and clichd topic but its bullets can be used as fallback line when out of content for a
generic question on poverty-hunger-issues.

NFSA: responsibilities of union and state Governments

97: TPDS, 2000: Antyodaya Anna; 2013: NFSA (under consumer affairs ministry)
Union: supply foodgrains; else give allowance to states
States: identify beneficiaries; give food else allowance
67% population covered.
Quota: AAY: 35kg for whole family, Priority 5kg per person

Entitlements

Rice 3; Wheat 2; coarse 1 Rs./kg

Preg: Free meals, 6k installment; Kids: free meals, take home rations.
Grievances redressal @distrct & state level; TPDS: ICT, doorstep delivery
Deadline: Oct14=>extended to April 2015, because very few states implemented,
because beneficiary identification problem. SECC survey yet to complete.
Full implementation: Haryana, Raj, Punjab total 5 states.

Criticism against NFSA

1. Hidden Hunger: only carbohydrates given but no vitamins and micronutrients. Global
hunger report says >50% Indian women and children have anemia. Solution?
o iodized salt, fortified flour, bio-fortification of crops (nutrifarms)
o National nutrition mission 2014 to reduce anemia
o EcoSurvey says give food stamps, letem buy whatever nutritious food they want.
Jene dreze counters- theyll buy Desi liquor.
2. Fiscal deficit: 1.15lakh crore burden=> 88k given to food security Act.
3. FCI storage capacity insufficient=>rotten grain=>inflation
4. GPS truck-tracking, CCTVno. Parliament Committee recommended this but not
implemented in NFSA.
5. Identifying beneficiaries biggest problem. SECC incomplete.
Donot confuse food act with Food security Mission: Under Agro ministry. Increase production
of 5: rice, wheat, pulses, millets and commercial crops.
Next revision article: GS3 Economy- Infrastructure and Black money.

Article printed from Mrunal: http://mrunal.org

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- Mrunal - http://mrunal.org [Revision] GS2: Economy- IR/Diplomacy/Treaties-Agreements affecting Indias ECONOMIC
INTERESTS
Posted By Mrunal On 22/11/2014 @ 7:19 pm In CSE-2014 | 15 Comments
1. Prologue
2. [Block 1] Economic Bodies-IMF, BRICS Bank, AIIB
1. Why IMF quota-governance reforms
2. Why need BRICS, AIIB?
3. BRICS Bank, Shanghai
4. AIIB, Beijing
5. UNICITRAL:
3. [Block-2] WTO, treaties affecting Indian interests
1. WTO: structure-function
2. WTO: SPS agreement
4. [Block-3] WTO AoA, Peace Clause, Food subsidies, TFA, Bali
1. WTO: AoA & De-Minimus
2. WTO: Bali Summit and Peace clause
3. WTO: TFA-Trade facilitation agreement
5. [Block-4] US Policy affecting Indian interests
1. Fed Tapering
2. Capital account liberalization/Convertibility
3. What is Capital account liberalization?
4. Capital acct.liberlization: anti arguments
5. Special 301 report
6. US FATCA Act (done)
7. USA Totalization pact (not done)
8. OCI-PIO reforms (during Modi visit)
6. [Block-5] ASEAN, SAARC, Pak
1. India-ASEAN FTA in services and investment

2. FTAs hurting Indian Economy: yes or no?

3. SAARC POWER Pact
4. MFN status in Pak
Prologue

Revision of selected IR/diplomacy topics affecting Indias Economic interests in GS2.

Next revision article: GS3- Planning, budgeting, resource mobilization.
G20 BEPS agreement=> in the upcoming separate revision note for GS3: money
laundering.

[Block 1] Economic Bodies-IMF, BRICS Bank, AIIB

Why IMF quota-governance reforms
Mains-2013 already asked question about world bank vs IMF so chances of another IMF
question dim. But IMF-quota reform also serves as fodder for the why AIIB/BRICS banks
setup? question. Hence useful. Lets check:

IMF .

Post WW2: Bretton Woods conference (44)=> World bank + IMF + GATT(=>WTO).
IMF Executive board decides members quota on GDP & other parameters.
Quota decides voting power.
USA: 18%; China 4% (Even though Chinese GDP running parallel to US); India-Russia
2.5%.
2008: Post-Subprime crisis= Western powers GDPs weakened.

2010: IMF reforms proposed (bracket shows votes needed to pass it)

Increase developing countries quota. (70%)

All directors be elected. No permanent chairs to US, Jap etc. (85%)

But neither passed because US+its allies control ~40% votes.

2014: Brisbane G20 communique expressed disappointment & urged Obama to get it
done.

Indian interests involved in IMF

reform
Present

2.44% 11th largest

After reform

2.75% 8th Largest

Why need BRICS, AIIB?

, .
1.
2.
3.
4.
5.
6.

Bretton woods lack of reforms. as stated above.

BRICS : 1/5th of GDP; 2/5th population.
Yet none of its citizen can hope to become IMF chairman given voting quotas.
But in BRICS bank chairman, President will be Russian and Indian respectively
Asia needs 800 billion$ every year till 2020. beyond World banks aukaat.
Subprime crisis, Fed Tapering => Dollar volatility affecting import/export of BRICS. So
they want to Reduce dollar domination, loans with less conditions.
7. Same reason for previous Development banks: Latin Bank of America, Chiang Mai
initiative, Bank of South, ADB.
BRICS Bank, Shanghai

AIIB, Beijing

6th summit Fortaleza 2014=>ops.to start

from 2016

AIIB: Asian infra investment bank

2014: MoU signed. start work from 15.
2014: China+21 member MoU=>2015 starts.

Five members, equal voting power (not in

China + 21 members. S.Korea, Aussie did not join.
IMF or AIIB.)

capital: 10 million x 5 members (hence

equal voting)

3
function:
loan
for
sus.Development, BoP crisis.

infra,

100 billion capital=>Shareholding based on

GDP.
Voting power based on shareholding.
China:1st, India: 2nd.
But, China to dilute shareholding when new
members come.
as name suggest: infra. investment projects
Structure: Board of governors >> directors >>
President (HQ: Beijing)

For BoP crisis: separate contingency 2013: Jinping s idea: make profit from forex reserve+
reserve: 100 billion. China gave highest. Silkroad finance+ U$ domination reduce.

Indian interests: BRICS Bank + AIIB

12th FYP: need $1 trillion infra investment. FDI alone cant fill.
Competition =cheaper loans.
World bank can focus on Africa=> export, piracy, extremism angles.

UNICITRAL:
As such 50 dozen UN related bodies, but UNICITRAL important due to Vodafone-Nokia tax
disputes.
Structure

United
Nations
Commission
on
International trade law
Core legal body 60s. (1966), budget from
UNGA
Decision by consensus rather than voting.
60 elected from UNGA (General
Assembly) for 6 years.

Functions

doesnt appoint arbitrators or private

judges
Drafts rules for arbitration. Private
Parties can use.
Drafts model trade laws & Helps
member adopt them.
Reduce legal obstacles, facilitate trade

Geographical quotas in membership.

Indian membership to expire in 2016.
Annual sessions @New York and Vienna
alternatively.

and investment

[Block-2] WTO, treaties affecting Indian interests

WTO: structure-function

Post ww2: Bretton Woods conference (44): Trinity of World bank (cheap loans 4
Development); IMF (BoP and exchange rates); GATT later became WTO (reduce intl.
trade barriers).
WTO Structure: ministerial conference (160); General council (Day2day, dispute res.) ;
DG 4 years, Geneva
Agreements: goods related; services related; IPR related; dispute

Settlement. A few Plurilateral agreements not signed by all.

WTO Want to reduce tariff and non-tariff barriers.

Absurd quality controls= one type of non-tariff barrier. WTO fixes it via SPS agreement
for food/bio items and TBT for non-food items.

SPS agreement important because Indian mango & American murgi (poultry)- from two angles:
1. GS2: agreements affecting Indian interest
2. GS3: food processing downstream issues.
WTO: SPS agreement

Sanitary and phytosanitary (SPS) measures

Allows members to ban import of xyz item, to protect its own local plant, animal and
human lives.
But QC (Quality control) must be scientific. FAO-Codex standards can be used. Higher
QC need scientific explanation.
Developing countries be given additional time to comply with SPS.

2014: SPS in news because

Mango

2014: EU trade commissioner banned Indian

Alphonso, eggplant etc.
Reason: fruit fly contamination in previous
shipment. (2013)

Murgi (Poultry)

2007: India bans US poultry

import
Reason: avian influenza danger to
local poultry.

Indian challenges ban:

USA challenges ban:

Fruit fly in 2013. But since 2014, only

APEDA certified Indian mangoes exported.
So more imminent danger.
SPS permits longer time to Development
countries to comply.

Even after ban, India saw multiple

outbreaks of bird flu.
So our poultry not responsible.

Verdict:
Verdict:EU officials will come to inspect then may
clear Indias ban.

WTO ruled IN US-favour because

India
couldnt
justify
ban
scientifically.
Although India can appeal further

to get taarikh pe taarikh.

Indian Interest:

Mango export earns Rs.1.5 billions, thousands Indian interest:

of farmers livelihood attached.
More competition for local poultry
EU Mango export: only 7% but negative
publicity = others may ban us. Then
cos. and farmers.
significant export decline.
(positive) More choice /cheaper
Pak. will steal our clients.
price for Indian customer.
(positive) export ban=more mangoes @local
market, cheap MRP

Same points can be used for Food processing industry- downstream issues/agreements in GS3.
[Block-3] WTO AoA, Peace Clause, Food subsidies, TFA, Bali
WTO: AoA & De-Minimus

WTO agreement on Agreement on Agriculture (AoA).

Wants members to reduce (1) import duty (2)export subsidy (3) domestic subsidy (amber
box)
Amber subsides: disrupt trade, promote excessive production e.g. fertilizer, seed,
electricity
WTO amber subsidy quota: developed 5% of 86-87s production; developing: 10%
L.D.C: exempt.
This is known as de-minimum limits.

India opposed because:

USAs 5% in 86 higher than our 10% in 86, because our agro production wasnt that
high.
Food prices doubled since 86. No provision for Inflation adjustment.
We need MSP and PDS for supporting farmers and poors respectively. (total subsidy bill
1.15 lakh crore for budget 2014. Out of that 88k for NFSA)

WTO: Bali Summit and Peace clause

9th conference Dec.2013. Bali package= 3 outcomes
1. L.D.C: other nations to give duty free quota free access to their products.

2. Trade facilitation agreement. But India refuses to sign hence third outcome3. Peace clause: WTO wont hear de-minimum quota disputes against developing nations
for 4-yrs. till Dec.2017 (11th Conf.). condition: said subsidy only for food security /
public stockholding.
WTO: TFA-Trade facilitation agreement
Following Picture worth 200 words:

.
TFA-Controversy

Deadline to sign: 31st/Jul/2014. WEF from 2015

Modi doesnt sign. Wants permanent solution to food subsidy quota.
Nov 2014: Obama Modi settlement. Peace clause extended for infinite time till solution
reached. Indias food programs wont be challenged in WTO disputes. In return Modi to
sign TFA.

[Block-4] US Policy affecting Indian interests

Fed Tapering

Meaning:

QE: US Fed Reserve begins purchase of bonds and subprime toxic assets=>new dollars
created=>help US-economy to bounce back.
Later unemployment rate down, inflation rise=> meaning US economy bounced back. No
need to create more dollars.
Fed Tapering: gradual cutting down in bond purchase program by US Fed.Reserve from
Jan 2014. It Reduces creation of new $$ money in system.

Fed tapering: impact

FIIs exist from India, to re-invest in USA. Rupee weakens. (Rs.65 in Sep2013 just on
rumor)
Rupee weakens=> Crude expensive, inflation, gold investment, CAD, rupee weakens.
Vicious cycle.
When Capital account surplus is less than Current account deficit=BoP crisis.
To combat BoP crisis, RBI has to sell its Forex reserve $$. In 91s BoP crisis, India did
not have enough forex, had to borrow $$ from IMF by pledging gold.
So to immunize India agaist Fed taperings negative impact, WE must augment forex
reserve and $$ inflow.

Steps taken to protect India

Currency swap with Japan; Dollar swap with OMC.

BRICS bank contingency fund ($100 bn.)
RBI raised interest rates on FCNR deposit (NRIs get more interest)
Fast track environment clearances to attract FDI (Moily-POSCO)

+ve Angle: Fed Taper=US economy improving=Indian Exports to improve. So, perhaps FT-fears
are exaggerated.
Some Hindu columnists even suggest we should begin Capital account liberalization to save
India against FT. Hence next topic becomes imp. for exam:
Capital account liberalization/Convertibility

Current Account C.

Capital Account C.

When Rupee is fully convertible into When Rupee is fully convertible into another currency, for
another currency, for CURRENT CAPITAL account transactions. And vice-versa. = capital
account transactions. And vice-versa. account convertibility.

Indian rupee fully convertible

on current account.
eg. Convert as many rupees as
you want for buy Ferraris in
dollars.

Partial because quota restrictions

eg. Individual Airline Company can borrow only
$300 million per year via ECB. so even if
Kingfisher got $400 million loan from America, it
cant covert it to $400 x 60 =whatever rupees,
ELSE ED will arrest them for FEMA violation.
Same way, Indian person cant invest more than
$75k abroad.
So, even If you have Rs.60 crore=> you can get
them converted to $1 crore dollar to park in

American bank/share market.

ELSE ED will arrest under FEMA violation.

What is Capital account liberalization?

Indian rupee is only partially convertible on capital account transactions with foreign
currency.
The process of reforming system to make partial=>full convertibility=>thats called
Capital account liberalization.
Steps: reforming FEMA, ECB, FDI and FII norms.

Do we need full capital account convertibility?

Yes

No

more $$ inflow to India via FDI, FII,

ECB=>Biz.expansion, GDP, jobs

IMF study didnt find such correlation

Indias inflation and GDP bottlenecks are from
monsoon, political reasons. And not because of
dollar$$ starvation.

Capital acct.liberlization: anti arguments

1. If companies allowed to borrow infinite $$ (and convert them to indian rupees) =>
bubble=> will burst during volatility, war. Because companys cash flow in Rupee, but
theyve to pay EMI in $$ => bubble burst like subprime crisis.
2. Malaysia, Thailand tried this in late 90s, epicfail even their large forex reserve couldnt
save economy.
3. China got largest forex reserve in world, yet theyre not trying so we shouldnt try either.
4. Tarapore committee recommended full capital account convertibility by 2000. but He
gave preconditions like reduce Fiscal deficit to 3.5%, NPA to 5%, CRR to 3% etc.
5. These conditions not yet met, hence TIME NOT RIPE for India to adopt full capital
account convertibility OR begin capital account liberalization.
Special 301 report


US trade act Section 301=> US trade rep. (USTR) have to prepare list of nations with IPR policy
negatively affecting US companies.
Priority
countries

foreign

Priority watch list

only 1 Ukraine. (Stick approach: Trade sanction, WTO approach)

India, China, Russia etc. (carrot approach: Grant, donation, training,
joint-raids.)

India in watch list from 1989. This is our 25th anniversary.

Why does US feels her IPR wont be protected in India:

Movie piracy: No anti-camcording law

Net piracy: No take down procedure
1.5lakh + cases pending for Trademark-patent infringement. Taarikh pe Taarikh.

Novartiss Glivec case. India did not permit ever greening its patent.
German Nexvar tablets: too expensive tables. India gave permission to an Indian co. to
produce cheaper generic version.

Latest Development: Out of cycle review in Oct.2014 after Modi meet. We may be dropped
from the watchlist.
US FATCA Act (done)

2010: Foreign Account Tax compliance Act (FATCA). To catch American tax-evaders
doing offshore investment.
2014: India and USA sign FATCA-Intergovt. agreement. (IGA)
Indian Financial intermediaries (Banks, mutual funds, insurance cos etc.) will have to
keep record of American investors=>(CBDT)=>American IRS.

If record not kept=>Penalty 30% tax

USA Totalization pact (not done)

US social security system: 5 lakh NRIs give $1 billion in taxes.

But NRI without full visa, return in 3-7 years, cant reclaim those contribution.
India wants totalization pact to help them. USA did not agree because Indian EPFO
format not compatible with theirs.

OCI-PIO reforms (during Modi visit)

OCI: you/your parents Indian. Lifelong visa free travel; no registration @any office
PIO: parent/gp/spouse india; 15 years valid; registration at office after 180 days
Modi to combine them both. PIO no need to visit police.
Online visa, outsourcing to reduce delay.
Other: Visa on arrival for American tourists, PBD-2015 to be held in Abad.

[Block-5] ASEAN, SAARC, Pak

India-ASEAN FTA in services and investment

2009-10: FTA in goods signed and implemented.

2014, Sep: FTA in services & investment signed. (talks since 2012).

It has 8+1+1 pattern

1: with Philippines to safeguard their IT/BPO.

1: with Indonesia to safeguard their service sector
8: agreements with remaining

Benefits?

Easy movement of money (investment) and manpower.

By 2015: trade to reach $100 billion
Joint review, dispute settlement
Stepping stone for future RCEP (regional comprehensive) with Assies, Chinese, Koreans,
Japs and NZ.

Challenges?

Philippines yet to ratify. It fears from Indian IT sector competition.

Mutual recognition of degrees not yet done. Easy movement of manpower difficult.
Modi plans a treaty to fix it.

FTAs hurting Indian Economy: yes or no?

Yes because

No because

Imports increased but exports did not.

Commerce
following:

Inverted duty structure: items

coming from FTA countries are
cheaper than local.
Hurting coconut, pepper, groundnut
farmers; Hurting desi soap-palm oil
mfg.

ministry

expert

Committee

says

Already have Sufficient safeguards to

prevent dumping.
We found no proof that ASEAN nations
dumping goods at cheaper price.
Desi stuff expensive because inflation,
expensive raw material, and NO EASE OF
DOING BUSINESS.

Conclusion: To get max. benefit from FTAs, India needs to become part of ASIAN value chain
i.e. import raw/intermediate goods=>process=>export elsewhere.
SAARC POWER Pact

SAARC nations import 30% energy requirements.

Increase per capital energy consumption=> HDI improves. (more education, mfg)
India imports hydel-energy from Bhutan; exports to Nepal-Bangladesh.
Grid connectivity= attach light-wires with each other for better electricity buying and
selling among nations. Further energy-integration with BCIM corridor of China.
SAARC Market for electricity agreement (SAME) signed @Delhi in 2014. Yet to be
ratified thou.
will setup SAARC energy grid including underwater line to Sri Lanka.
+ Power trade agreements + Renewable energy.

MFN status in Pak

WTOs GATT and GATS =MFN concept. If trade barrier lowered for most favored
country than it has to treat all its trading partners in same manner.
97: India gave MFN status to Pak.
But pak still keeps ~1000 items India cant export- textile, agro, automobile parts.
2012: new talks but stalled. 40% Paki workforce in textile, hence vote bank-lobbying
against India.

Next revision article: GS3- Planning, budgeting, resource mobilization.

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- Mrunal - http://mrunal.org [Revision] GS2 Economy: MAKE in India, Government
Manufacturing, Factories, Labour, Skill Development

Policies-Interventions

Posted By Mrunal On 21/11/2014 @ 10:12 pm In CSE-2014 | 40 Comments

1. Prologue
2. [Block 1] Policies
1. New Industrial policy 1991
2. National MFG policy 2011
3. National IT policy 2012
4. New Telecom Policy 2012
3. [Block-2] Make in India (MII)
1. Why Make in India?
2. MII: FIVE-mechanism
3. IPR protection (GS3)
4. [Block-3] Labor Factory reforms
1. Why need factory/labour reforms
2. Factory bill 2014
3. Small factories bill 2014
4. Apprentice bill 2014
5. Companies Act 2013
6. Companies Act: 4 statutory bodies
5. [Block-4] Schemes: Skill / Social security
1. Din Dayal Antyodaya
2. Jivan Praman
3. EPFO
4. RSBY revamped (soon)

for

5. Labour/Skill: Misc.Schemes
Prologue

Like I said in the first revision note: 4-5 points on selected topics. Assumption: you
already have read earlier articles. This is just like minute memory jogging.
GS2: schemes, policies, intervention = fifty dozen schemes. Im only making note of
things related to manufacturing sector.
Reason: MFG topic too hot given make in India. Even if directly not asked, still same
bullets can be used for poverty, hunger, empowerment related questions in GS to 3 and
essay as fall back line when you cant recall anything else.
Next coming revision note: GS2: IR related Economy- bodies & agreements.

[Block 1] Policies

fifty dozen policies but these useful to handle mfg/service sector related Qs.
New Industrial policy 1991
1. 48: Shyamas policy; 56: focus on PSU; 91: Liberated

2. 5 sectors need license: Tobacco, Desi liquor, Industrial explosive, Hazardous chemicals,
Defense electronics.
3. 3 reserved for PSU. Rail, Atomic mineral, Atomic energy.
4. PSU: Disinvestment permitted, MoU for op.flexibility, later various Ratna
5. FDI relaxed, 100% NRI investment permitted.
6. Tech parks for Software, electronic, hardware
7. To help M&A- MRTP removed, later CCI setup.
National MFG policy 2011
1.
2.
3.
4.
5.
6.
7.
8.

Increase MFGs share in GDP from present 15% to 25%. [though China 35%]
Create 100 million jobs in a decade.
MFG focus: employment intensive sectors- Textile, IT; MSME,
Simplify labour and environment laws=> Modi: factory, apprentice bills + green law
panel under TSR Subramanian
Skill Development via Polytechs=> Modi skill India, Din Dayal Antyo.
Setup Mfg promotion boards, NIMZ (invest & mfg)
Infra via PPP=> Modi: REITS, INVITs, 3P-India for contracts
Tax relief to startup co.s; skill Development via Polytechs.

National IT policy 2012

1. 1 e-literate person in each household.=> Modi Digital India mission for rural broadband.
2. 1 crore new IT personnel
3. Public services/softwares in Vernacular, PH friendly, transparency=>Modi E-kranti
system
4. Strong framework against cybercrime
5. Promote Cloud computing, open source software
6. Tax relief to IT startups. (just like mfg policy)
7. Target 2020: 300 billion$ revenue, 200$ exports.
8. Survey Suggestion: separate Department for service sector, divest service-sector PSU,
give collateral free loans to start up cos.
New Telecom Policy 2012
1. 2020: rural teledensity increase to 100 =>USOF Universal service obligation fund to
improve net connection in rural/naxal areas
2. Right to broadband with 2mbps speed=> NFON National optical fiber network to
connect 2.5 lakh Gram Panchayat.

3. Make Mobile a socio-economic empowerment=>UID link with SIM CARD. Future

vision Apple-pay like system, swipe mobile to pay/transfer money. no more rural
branches, BCA-agents.
4. All India mobile no. portability in 2015 (right now only circle wise. Total 22 circles)
5. Unified license for India. (no need to buy separate for each 22 circles)
6. spectrum delinked from license. Have to buy it separately.
7. Allot Spectrum in transparent, market determined price. Simplify M&A in telecom
industry.
8. Make India a global hub for telecom mfg., VoIP, Cloud computing. Modi=>Make in
India.
[Block-2] Make in India (MII)
Why Make in India?

India became Agrarian to => direct service economy. Not much focus on mfg. sector.
Agro gives 14% to GDP, employs 49% junta= disguised unemployment.
While MFG gives 15% to Indian GDP and 35% to Chinese.
IF MFG boost=>small farmers can shift to industry. poverty removal, land consolidation,
farm mechanization=high agro output.
3D-Strength = democracy, demographic dividend, demand in huge quantity.

MII: challenges

World economic forums Global competitiveness index: 71.

World bank Ease of doing business rank 142. (double of 71)

MII: FIVE-mechanism

Simplify processes: De-licensing and deregulation=> New Factories bill, eBiz poral to
apply online, industrial license valid for 3 years. Special team to guide first time investor.
Improve infra: New Industrial corridors authority, 3P-India, smart cities-REITs-INVITs
;Modi to get funds from US, China, Japan; BRICS bank, AIIB
Skilling: Skill India mission, Deen Dayal Antyodaya Yojana,
Focus on 30 mfg. sectors: autoparts, pharma-chemicals, leather-textile, miningconstruction, food-processing-hospitality etc. Here weve potential to become world top10; potential manpower and demand available.
Open up sectors: FDI in Defense 49% and Railways 100%
Protect IPR (below)

IPR protection (GS3)

Focus on five angles

1.Patent

innovative product / process for industrial use.=> DIPP=>Patent office.Indian

patent offices to connect online with other nations under Madrid Protocol,
automated applications and approvals.=>followup special 301 report revision

note for GS2-IR-Economy.

2.Industrial
design

registration for 10 years. Renewed again for 5 years.

3.Trademarks Automated registration of trade marks. Can be renewed for infinite time.
4.GI

Statutory GI registry body @Chennai. Foreign companies can register GI in India

under WTO-TRIPS agreement.

5.Copyright

HRD ministry

Side note: to counter us, China too launched Made in China scheme to give R&D, Tax sops to
Mfg-Sectors: aviation, biomedicine production, railway and ships, IT-electronics
[Block-3] Labor Factory reforms

again fifty dozen topics but these ones helpful for generic questions
Why need factory/labour reforms

44 union + >150 state acts=> conflicts, bribery, inspector raj

Industrial disputes act: >100 workers=need Government permission before firing =>
contractual labour without social security benefits (SSB).
Apprentice made to work like regular employee yet no SSB.
Owner can be arrested for petty issues like no spittoon.
Foreigners wont come to Make In India, unless these issues fixed.

Factory bill 2014

On Narendra Jadav Committee (2010)

Factory def: 20 workers if power used; 40 workers if not.
Women: nightshift with safety-transport provisions; can work on heavy machinery
unless pregnant/PH
Worker: Reforms in Overtime, paid leaves; right to cool drinking water, spittoon,
restrooms. Canteen depending on (#) of workers.
Owner: self-certification, can decide workweek, cant be arrested on small issues like no
restroom/cool water.
Benefit: women empowerment, no more bribery inspector raj

Small factories bill 2014

2000: 2nd National labour commission recommends separate law for small factories.
New bill 2014: for MSME with upto 40 workers.
Women can work on heavy machines.
Small one-room factories cant setup separate washroom, spitton etc. so theyre
allowed to have joint facilities with other small factories.
Self-compliance features similar to (non-small) Factories bill 2014

Apprentice bill 2014

Minimum age 14 years to join non-hazardous industry as an apprentice

Government to decide quota and training syllabus in each industry
Companies can accept non-engineer/diploma; fix workdays; multiple companies can join
to give pre-training.
Post-training a certification exam.
Web portal for self-certification; reasonable fines.
Benefit: flexibility to company, skilled youth to help make in India.

Additional topics:
#1: Modi scheme- Apprentice protstahan yojana: Government will contribute 50% of stipend
for first two years of training
#2: Self-compliance/ Self certification: CRITICISM

2013 National crime report: >350 workers died in boiler explosion.

Inspector-raj is necessary. Suppose Defective Boiler & other dangerous machines. Owner
himself wont work/check. May not hear complaints from workers & yet upload

everything tested OK self-certificate on portal. (keep that in mind for Ethics case
studies)
#3: random inspection

Modi reform: labour/factory inspection will be done on random lucky draw by

computers. (to ensure those self-compliance claims are right)
Inspector to upload report within 72 hours. => less opportunities for manipulation and
bribes.

Companies Act 2013

Replaced 56
3 types: one person, private (2-200), public ltd. (7-unlimited).
BoD reforms: min.15 directors in public ltd, 1/3rd independence, 1 woman, 1 Indian
resident.
Independent directors: performance review by AGM, 10 year term limits.
Whistleblower protection, internal and external audit mechanism, limits on CA about
how many firms they can audit per year.
Quorum requirements for AGM and board meetings
CSR: 2% of last 3 years avg.profit. Selected companies only e.g. above 5 crore net
profit /500 cr. Net worth, 1000 crore turnover.

Companies Act: 4 statutory bodies

1. Company law tribunal (NCLT) to reduce burden of HC. Directly approachable, 3 months
deadline to solve case. Appeal @NCLAT
2. NFRA: Financial reporting authority. Set accounting standards, power of civil court, can
punish CA and B.Com. ICAR doesnt like it.
3. Investor edu.+protection authority: financial literacy to prevent Saradha, sahara scams.
Chaired by Secretary of corp.affairs ministry
4. SFIO: given statutory status, power to search-seize, other agencies need to handover
witnesses and evidences.
[Block-4] Schemes: Skill / Social security

Following block covers only labour / skilling related schemes.

Im not going into all those health-education schemes. You may refer to them under
Ch.13 economic survey summaries under Mrunal.org/economy
Urban infra Development schemes=>under GS3 Economy revision note coming soon.

Din Dayal Antyodaya

Why?: 57 million worker shortage in 1st world by 2020.

Make in India useless without skilled workers. 10% of new workers skilled. (China 50%)

Rural component

Urban component

SGSY=>NRLM=>Ajeevika=>skill components: Din

Dayal Upa. Gramin Kaushalya Yoj.
15 age+; train 10 lakh youth in next 3 years;
setup training centre; international syllabus; PH
attention

HUPA: train 5 lakh every

year via Livelihood centres
via NSDC Corop.
vendor market training;
shelter for homeless
urban SHG: 10k loan;
enterprise loan interest
subsidy

Jivan Praman

Why? Pensioner need to submit physical life certificate every year- to show hes alive
and claim pension.
Jivan Praman = Aadhar-based Digital Life Certificate.
DEITY (Dept. of Electro.&IT) designed software.
Software reads pensioners Aadhar card, biometric data=> uploaded to server=> digital
life certificate generated.
Pension giving babu can access online and release pension.
Pensioner no need to physically visit office => less inconvenience and bribery
harassment. Dignity to elderly.

EPFO

UAN: Uniform account number for >4 crore subscribers: can view account, transaction
data, grievances redressal. No need to get new number when changing jobs.
LIN: Labour identification number for ~6 lakh employers. So they can file online
provident contribution, annual returns. Less inspector raj and harassment.
Assured Minimum Rs.1000 pension, compulsory EPS for upto 15k salary.

RSBY revamped (soon)

Rashtriya Swasthya Bima yojana.

Plans to merge Aam Admi Bima Yojana and India Gandhi old age pension with it
Smart card for unorganized workers.
3rd party audit, call centre for grievances

Labour/Skill: Misc.Schemes
Udaan

Skilling J&K youth by MHA+NSDC

SKill India

USAAD

Budget 2014.
Employability + entrepreneurial skill. (get job and give job)
Even traditional welder, carpenters, cobblers, masons be given training to
become suitable to Make in India.(e.g. pepperfry.com online furniture
shopping site- after delivery carpenter assembles at your home)
Skilling minority artisans
Kashmiri embroidery, bengali jardosi, sikh phulkari embroidary, buddhist
thangka paintings

Nai Manzil Skilling Madressa passouts to join main-stream (computer, english etc)
Varistha
pension
bima
HR Khan

60 and above
From 15th aug. 1 year validity

Committee on how to use unclaimed money from post-office, PPF etc. for elderly
welfare.

Next coming revision note: GS2: IR related Economy- bodies & agreements.

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[Revision] GS1 Economy: Urbanization, Globalization; Population, Poverty, Development

issues
Mains-20143 hours Ago1 Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. [Block-1] Urbanization, Globalization
1. Urbanization problems and remedies
2. Globalization: impact on Indian Society
3. Culture-Lifestyle: Good
4. Culture-Lifestyle: Bad
5. Eco-Env: GOOD
6. Eco-Env: BAD
3. [Block-2] Population, Poverty, Development issues
1. Human Development report (UNDP)
2. Financial inclusion for poverty removal
3. Population policy 2000
4. Demographic dividend
5. National youth policy 2014 (NYP)
6. Rangarajan Poverty line
7. Census 2011: facts when everything else fails
Prologue

For more, read their detailed interviews at Mrunal.org/Toppers

For GS1 to GS3, the Maximum Aukaat of any topic is 200 words, and the minimum time,
I take to research and write any GS-article is 2 days.
So, if I were to run full length articles on Cyclone Hudhud, relevance of planning
commission, Make in India, Clean India, Ganga cleaning etc. then mains would be over.
(Less than 3 weeks left while Im typing this).
In GS1 to 3: youll have to face minimum 75 different topics. (10 marks each x 25
questions per paper x 3 papers)

4-5 key points x 30 words on each = 120-150 words easily.

Therefore, Im preparing a final round of [Revision] notes for selected-topics I
consider important/useful for Mains-2014 GS paper 1 to 3. (Selected topics only because
I cant build Taj-Mahal in 23 days).
There wont be prelim-cum-mains-cum-interview coverage in those notes.Just streetsmart 3-5-7 keypoints on selected topics so it can be revised quickly and a jugaadu
100-200 words answer can be assembled in the exam hall.

Q. You used to upload those weekly topiclist and essay list. What happened to that?
Ans. Ill continue doing that. But Hardly 23 days left before Mains-2014. So, priorities shifted
temporarily.
Q. If question paper is already set, then should I stop reading newspaper?
Ans. No, you must read newspaper every day. Lot of direct/indirect fodder keeps coming. Itll
help you a lot in Essay and GS.
[Block-1] Urbanization, Globalization
Official GS1- syllabus says:
1. Urbanization, problems and their remedies
2. Globalization and its impact on Indian society.
As such these are easy topics with truckload of points in Geography books and web pages.

But if you take it casually -isme kya prepare karnaa=>you will waste lot of time in
recollecting and organizing points during exam. Then 5m and 10m questions cant be
finished in 4 minute & 7 minute timer respectively.
Therefore must memorize 4-5 points on every topic for Heropanti JudaadpantiTM in GS

Urbanization problems and remedies

Bollywood already released sufficient Study-material for Urbanization problem topic

Economic problems and remedies
Factor
Consequence
remedies
Under-employment,
Informal factory-labour reforms, RURBAN
1.Migrant inflow
employment, exploitation
mission (GS2*)
Skill India, Din Dayal
Antyodaya (GS2*)
Women: Nirbhaya-CCTV,
crime, drug abuse, alcoholism
self-defense, panic buttons,
2.UnderEmployment
Desi liquor, childlabour
toll free nos.
Organized crime: Policereforms
Black money, slums, illegal Tax-adm-reforms, BEPS, GAAR,
societies
PMLA (GS3*)
poor civic amnesties
Traffic
4.Muni. Insufficient funds
PPP, Smart cities, REITS, INVITs
congesion=>pollution
due2 black money
(GS3*)
garbage-diseases
3.High land prices

Urbanization: Environment problems and remedies

Factor

Consequence

1.High rent &

land prices

remedies
Pub.transport: BRTS, Metro
rail, car-pooling
Living peripheral area. Travel for
Awareness: A.Q.I., Bharat
hours on self-vehicle
Emission Norms (*GS3)
Pollution
Smart cities, Intelli-traffic
Management (*GS3)

2.Electricity
crisis

3.Slums

4.Gardens
buildings

&

diesel generator=pollution
Poors rely on firewood

Sewage=disease=>poverty.
Each disease poor family Rs.6000.
(time n wages lost)

net metering: put solarpanel

on roof-sell excess electricity
to company
More
nuke
plants
if
jholachhap NGOs permit
Clean India
Waste Management

Pesticides=no insect=sparrow chics

dead
Eco friendly buildings & gardening
Glass building=birds crash, no nest

(*) means more details about those remedies in upcoming revision notes on environment and
economy.
Globalization: impact on Indian Society
As such infinite topic. But few keypoints must be memorized to finish answers under 4/7
minutes timer.

Culture-religion-lifestyle angles: good and bad impact.

Economy and environment angles: good and bad impact.

Culture-Lifestyle: Good

English +IT + Internet=> youth from small town / villages=>social empowerment.

Job, Prosperity, Free flow of Ideas => social taboos & caste structure less rigid. e.g. Girl
can cremate fathers body.
Social networking, media, candle marches =>Nirbhaya campaign, More voices against
domestic violence, crime against women.

Indian literature, music, movies got international recognition and vice versa. Free flow of
ideas and influence both ways.
Fusion in fashion, food, lifestyle.

Culture-Lifestyle: Bad

Religious conversations via lure of money, Missionary-Naxal-NE-secessionist angles.

Middle-East Jihadi funding to Madressa.
Internet, Facebook, whatsapp: Brainwashed nsura youth to join ISIS; Riots in UP, Delhi;
piracy.
Decline of classical art, language, literature. (more money in English novel than
vernacular).
Valentines day, live-in relations, kiss-of-love, commodification of women, Pornography,
MMS-Voyeurism, vulgar reality shows, etc. angles
Divorce, Nuclear families, erosion of Alok Nath sanskaars in child upbringing in the
imported
Flaunting money in social gatherings (DJ, 50 types of soups)=> Materialized
society=>must get rich quickly, take bribes, exploitation, no empathy for poors, elderly
etc.
Fast-food, 247 social networking: obesity, lifestyle diseases; Bird-flu, HIV, Ebola

Eco-Env: GOOD

Trade liberalization employment.

Agrarian economy=>mfg | service economy=>better GDP and revenue collection =>
more social services=malnutrition decline (said Global hunger report)
MNC=cheaper and wide variety of goods=>power to customer.
FDI, FII, Crowdfunding= Indian startup companies.

Eco-Env: BAD

All points from urbanization table.

MNC Mining=> tribal land alienation, tribal culture society diminish
Resource exploitation Climate change=>flood nsuran, disasters=hurting Indians living
MNC=> desi artisans, small MSME hurt. Jobless growth, income inequality
Income inequality=>crime, child labor, desi liquor, drug abuse, domestic violence.

[Block-2] Population, Poverty, Development issues

GS1: Official syllabus says:
1. Population and associated issues.

2. Poverty and developmental issues.

Above subjects have many subtopics in theory and current. But Im focusing only on a few
topics that can be used in variety of scenarios-as last fallback line when you cant think of
anything and need 4-5 keypoints.
Human Development report (UNDP)
This report provides sufficient keypoints to assemble answers for many generic questions about
poverty and Development.

Poverty/Development: How to reduce vulnerability & build resilience?

Theme: reducing vulnerability and building resilience of human Development

India rank 135: lowest among BRICS except in Life expectancy.

4 culprits that increase vulnerability

1. Climate change (Food production down)

2. Conflict (ISIS, Syria, Pak-border shelling, Maoists, NE-secessionist raping and

murdering women in front of families)
3. Social unrest (Riots at UP,Delhi)
4. Economic crisis (inflation, unemployment: blue collar by policy paralysis and whitecollar
by subprime)
6 prescription to build resilience
1. Universal basic service: health (NHRM, NRUM, Health assurance), education (SSA,
MDM, RMSA), water supply, sanitation (Clean India) and public safety (Nirbhaya Fund,
policing).
2. Protect person @3 vulnerable stages of life:
a. First 1000 days after birth (vaccination programs, ICDS, newborn child action
plan)
b. When Entering workforce (skill India, din Dayal Antyodaya, Udaan, STAR,
NSDC)
c. When leaving workforce. (Jivan Praman certificate, NPS, Swavlamban, )
3. Social protection (80% of world lacks). Lack of social security = people sell their assets,
child labor.
4. Full employment (50% world informal jobs). Unemployment = crime, suicides; child
labour, malnutrition.
5. Include women, disabled and minorities in development.
6. Disaster preparedness. Else they worsen poverty, inequality, social unrest, climate
damage etc.
India specific prescription in HDI:
7. Spend 4% of GDP on social security including NREGA, universal primary health
coverage, old age and disabled pensions and child benefits
8. 1999 Odisha cyclone >10,000 dead but 2013 cyclone <50 dead. Political and
bureaucratic-will necessary.
Financial inclusion for poverty removal
Topic hot due to Jan Dhan and Nachiket.

Meaning: easy access to banking, loaning (credit), investment (beyond 4-9% return in
bank) and insurance (life and non-life)
Benefits: Savings turn to into investment. Loans to businessmen and
customers=>demand boost, GDP.

Investment and insurance =Protected against Unforseen circumstances.

Japan, S.Korea, USA all were @Indias current level but marched past in 60s thanks to
financial inclusion.
Lack of Fin.inclusion =>money lender, Ponzi scheme, MLM, Saradha Chit fund.
women Empowerment, Social harmony, less recruits for naxals
E-Payment: Cashless subsidies, payments, salaries= Governments Rs.1 lakh cr can be
saved (Mckinley study)

Population policy 2000

Control Population: get TFR: 2.1 (now 2.4) HOW?

Safe abortion, Sterilization

child, family planning. => ASHA and ASHOK workers.
Stable population @2045= stable growth rate, stable age composition

Get MMR: <100 / lakh birth (+nt 200 says UNDP). HOW?

Girl Marriage @20.

80% institutionalized deliveries=>Indira Matritva sahyog, mother child tracking, RCH,
Janani/Shishu suraksha, +need compulsory rural service for MBBS.
Compulsory registration of birth and death
HIV control, Universal immunization.=> National urban and rural health mission. +
upcoming national health assurance mission.

Demographic dividend

Majority of population in working age group

Age pyramid shows bulge in the working age-group
India: 65% below 35 age (says Modi.)
To reap dividend=> National Youth Policy, skill training necessary.

National youth policy 2014 (NYP)

Youth definition=15-29 years.

Ministry of Sports and Youth affairs to implement it
Will form a Youth Council to oversee implementation.
Policy to focus on 11 pillars. Ive consolidated those under five heads.
Education, employment, skill, entrepreneurship=> RMSA-RUSA, Sakshar Bharat, Skill
India program, Din Dayal Antyodaya, Apprentice bill, Venture fund for SC etc.
Participation in politics and governance=> PMRDF fellowship making young men nsura
of DM in naxal areas.

Inclusion,
Social
justice=>
Various
schemes
SC/ST/Women/Minorities/J&K/NE
social values, Community engagement, youth engagement
Healthy lifestyle, Sports.

for

skilling

Rangarajan Poverty line

Earlier: Tendulkar per capita Expenditure method: ~22% junta / 27 crore junta.
Ranga family of 5 monthly Expenditure: 7035 (U); 4860 I. now 37 crore junta poor.
Per person Per day Expenditure:47(U); Rs.32 I
Food Expenditure=Calorie +Protein + fat.
Includes food + nonfood items such as education, healthcare, clothing, transport, rent.
Bottom 35% rural junta always be considered poor. Same way for 25% for urban
Poverty ratios should be disengaged from entitlements under Government schemes.
NFSA (food security) act not on BPL-ness, but social-caste census etc.

Census 2011: facts when everything else fails

When everything else fails, one can always fall back to stupid statistics to create fish market in
GD and fillup 100-200 words in mains. Although its upto examiner to give marks on that.
Urban junta
Rural junta
Villages, total
Minorities
Literacy %
TFR
Birth rate

Deaths

Sex ratio
Population
growth rate

30% (exact 31.15%)

70% (percentage) and 80 crore (numbers)
6 lakh villages. (NOFN etc talk about broadband for 2.5 lakh gram
panchayats.)
(1) Muslims > (2) Christians > (3) Sikhs > (4) Buddhists > (5) Jains > (6) Parsi
Total 74, men 82, women 65
2.4. higher in rural than urban because they dont have TV said Khursheed.
21/1000
Death rate 7/1000
IMR: 42/1000; MMR: 178/1lakh (but I would go with UNDP number
200/1 lakh because its easy to remember)
Life expectancy: 66 years overall. Higher for women than men because
they consume less desi liquor.
943/1000 all age; 914/1000 for children
17.7%

Next [Revision]: GS2 Economy- Policies, schemes intervention for manufacturing sector.
[Revision] GS2 Economy: MAKE in India, Government Policies-Interventions for
Manufacturing, Factories, Labour, Skill Development
Mains-201437 mins Ago3 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. [Block 1] Policies
1. New Industrial policy 1991
2. National MFG policy 2011
3. National IT policy 2012
4. New Telecom Policy 2012
3. [Block-2] Make in India (MII)
1. Why Make in India?
2. MII: FIVE-mechanism
3. IPR protection (GS3)
4. [Block-3] Labor Factory reforms
1. Why need factory/labour reforms
2. Factory bill 2014
3. Small factories bill 2014
4. Apprentice bill 2014
5. Companies Act 2013
6. Companies Act: 4 statutory bodies
5. [Block-4] Schemes: Skill / Social security
1. Din Dayal Antyodaya
2. Jivan Praman
3. EPFO
4. RSBY revamped (soon)
5. Labour/Skill: Misc.Schemes
Prologue

Like I said in the first revision note: 4-5 points on selected topics. Assumption: you
already have read earlier articles. This is just like minute memory jogging.
GS2: schemes, policies, intervention = fifty dozen schemes. Im only making note of
things related to manufacturing sector.

Reason: MFG topic too hot given make in India. Even if directly not asked, still same
bullets can be used for poverty, hunger, empowerment related questions in GS to 3 and
essay as fall back line when you cant recall anything else.
Next coming revision note: GS2: IR related Economy- bodies & agreements.

[Block 1] Policies

fifty dozen policies but these useful to handle mfg/service sector related Qs.
New Industrial policy 1991
1. 48: Shyamas policy; 56: focus on PSU; 91: Liberated
2. 5 sectors need license: Tobacco, Desi liquor, Industrial explosive, Hazardous chemicals,
Defense electronics.
3. 3 reserved for PSU. Rail, Atomic mineral, Atomic energy.
4. PSU: Disinvestment permitted, MoU for op.flexibility, later various Ratna
5. FDI relaxed, 100% NRI investment permitted.
6. Tech parks for Software, electronic, hardware
7. To help M&A- MRTP removed, later CCI setup.

National MFG policy 2011

1.
2.
3.
4.
5.
6.
7.
8.

Increase MFGs share in GDP from present 15% to 25%. [though China 35%]
Create 100 million jobs in a decade.
MFG focus: employment intensive sectors- Textile, IT; MSME,
Simplify labour and environment laws=> Modi: factory, apprentice bills + green law
panel under TSR Subramanian
Skill Development via Polytechs=> Modi skill India, Din Dayal Antyo.
Setup Mfg promotion boards, NIMZ (invest & mfg)
Infra via PPP=> Modi: REITS, INVITs, 3P-India for contracts
Tax relief to startup co.s; skill Development via Polytechs.

National IT policy 2012

1. 1 e-literate person in each household.=> Modi Digital India mission for rural broadband.
2. 1 crore new IT personnel
3. Public services/softwares in Vernacular, PH friendly, transparency=>Modi E-kranti
system
4. Strong framework against cybercrime
5. Promote Cloud computing, open source software
6. Tax relief to IT startups. (just like mfg policy)
7. Target 2020: 300 billion$ revenue, 200$ exports.
8. Survey Suggestion: separate Department for service sector, divest service-sector PSU,
give collateral free loans to start up cos.
New Telecom Policy 2012
1. 2020: rural teledensity increase to 100 =>USOF Universal service obligation fund to
improve net connection in rural/naxal areas
2. Right to broadband with 2mbps speed=> NFON National optical fiber network to
connect 2.5 lakh Gram Panchayat.
3. Make Mobile a socio-economic empowerment=>UID link with SIM CARD. Future
vision Apple-pay like system, swipe mobile to pay/transfer money. no more rural
branches, BCA-agents.
4. All India mobile no. portability in 2015 (right now only circle wise. Total 22 circles)
5. Unified license for India. (no need to buy separate for each 22 circles)
6. spectrum delinked from license. Have to buy it separately.
7. Allot Spectrum in transparent, market determined price. Simplify M&A in telecom
industry.
8. Make India a global hub for telecom mfg., VoIP, Cloud computing. Modi=>Make in
India.

[Block-2] Make in India (MII)

Why Make in India?

India became Agrarian to => direct service economy. Not much focus on mfg. sector.
Agro gives 14% to GDP, employs 49% junta= disguised unemployment.
While MFG gives 15% to Indian GDP and 35% to Chinese.
IF MFG boost=>small farmers can shift to industry. poverty removal, land consolidation,
farm mechanization=high agro output.
3D-Strength = democracy, demographic dividend, demand in huge quantity.

MII: challenges

World economic forums Global competitiveness index: 71.

World bank Ease of doing business rank 142. (double of 71)

MII: FIVE-mechanism

Simplify processes: De-licensing and deregulation=> New Factories bill, eBiz poral to
apply online, industrial license valid for 3 years. Special team to guide first time investor.
Improve infra: New Industrial corridors authority, 3P-India, smart cities-REITs-INVITs
;Modi to get funds from US, China, Japan; BRICS bank, AIIB
Skilling: Skill India mission, Deen Dayal Antyodaya Yojana,
Focus on 30 mfg. sectors: autoparts, pharma-chemicals, leather-textile, miningconstruction, food-processing-hospitality etc. Here weve potential to become world top10; potential manpower and demand available.
Open up sectors: FDI in Defense 49% and Railways 100%
Protect IPR (below)

IPR protection (GS3)

Focus on five angles

1.Patent

innovative product / process for industrial use.=> DIPP=>Patent office.Indian

patent offices to connect online with other nations under Madrid Protocol,
automated applications and approvals.=>followup special 301 report revision
note for GS2-IR-Economy.

2.Industrial
registration for 10 years. Renewed again for 5 years.
design
3.Trademarks Automated registration of trade marks. Can be renewed for infinite time.
Statutory GI registry body @Chennai. Foreign companies can register GI in India
4.GI
under WTO-TRIPS agreement.
5.Copyright HRD ministry
Side note: to counter us, China too launched Made in China scheme to give R&D, Tax sops to
Mfg-Sectors: aviation, biomedicine production, railway and ships, IT-electronics
[Block-3] Labor Factory reforms

again fifty dozen topics but these ones helpful for generic questions
Why need factory/labour reforms

44 union + >150 state acts=> conflicts, bribery, inspector raj

Industrial disputes act: >100 workers=need Government permission before firing =>
contractual labour without social security benefits (SSB).
Apprentice made to work like regular employee yet no SSB.
Owner can be arrested for petty issues like no spittoon.
Foreigners wont come to Make In India, unless these issues fixed.

Factory bill 2014

On Narendra Jadav Committee (2010)

Factory def: 20 workers if power used; 40 workers if not.
Women: nightshift with safety-transport provisions; can work on heavy machinery
unless pregnant/PH
Worker: Reforms in Overtime, paid leaves; right to cool drinking water, spittoon,
restrooms. Canteen depending on (#) of workers.
Owner: self-certification, can decide workweek, cant be arrested on small issues like no
restroom/cool water.
Benefit: women empowerment, no more bribery inspector raj

Small factories bill 2014

2000: 2nd National labour commission recommends separate law for small factories.
New bill 2014: for MSME with upto 40 workers.
Women can work on heavy machines.
Small one-room factories cant setup separate washroom, spitton etc. so theyre
allowed to have joint facilities with other small factories.
Self-compliance features similar to (non-small) Factories bill 2014

Apprentice bill 2014

Minimum age 14 years to join non-hazardous industry as an apprentice

Government to decide quota and training syllabus in each industry
Companies can accept non-engineer/diploma; fix workdays; multiple companies can join
to give pre-training.
Post-training a certification exam.
Web portal for self-certification; reasonable fines.
Benefit: flexibility to company, skilled youth to help make in India.

Additional topics:
#1: Modi scheme- Apprentice protstahan yojana: Government will contribute 50% of stipend
for first two years of training
#2: Self-compliance/ Self certification: CRITICISM

2013 National crime report: >350 workers died in boiler explosion.

Inspector-raj is necessary. Suppose Defective Boiler & other dangerous machines. Owner
himself wont work/check. May not hear complaints from workers & yet upload

everything tested OK self-certificate on portal. (keep that in mind for Ethics case
studies)
#3: random inspection

Modi reform: labour/factory inspection will be done on random lucky draw by

computers. (to ensure those self-compliance claims are right)
Inspector to upload report within 72 hours. => less opportunities for manipulation and
bribes.

Companies Act 2013

Replaced 56
3 types: one person, private (2-200), public ltd. (7-unlimited).
BoD reforms: min.15 directors in public ltd, 1/3rd independence, 1 woman, 1 Indian
resident.
Independent directors: performance review by AGM, 10 year term limits.
Whistleblower protection, internal and external audit mechanism, limits on CA about
how many firms they can audit per year.
Quorum requirements for AGM and board meetings
CSR: 2% of last 3 years avg.profit. Selected companies only e.g. above 5 crore net
profit /500 cr. Net worth, 1000 crore turnover.

Companies Act: 4 statutory bodies

1. Company law tribunal (NCLT) to reduce burden of HC. Directly approachable, 3 months
deadline to solve case. Appeal @NCLAT
2. NFRA: Financial reporting authority. Set accounting standards, power of civil court, can
punish CA and B.Com. ICAR doesnt like it.
3. Investor edu.+protection authority: financial literacy to prevent Saradha, sahara scams.
Chaired by Secretary of corp.affairs ministry
4. SFIO: given statutory status, power to search-seize, other agencies need to handover
witnesses and evidences.
[Block-4] Schemes: Skill / Social security

Following block covers only labour / skilling related schemes.

Im not going into all those health-education schemes. You may refer to them under
Ch.13 economic survey summaries under Mrunal.org/economy
Urban infra Development schemes=>under GS3 Economy revision note coming soon.

Din Dayal Antyodaya

Why?: 57 million worker shortage in 1st world by 2020.

Make in India useless without skilled workers. 10% of new workers skilled. (China 50%)

Rural component

Urban component
HUPA: train 5 lakh every
year via Livelihood centres
SGSY=>NRLM=>Ajeevika=>skill components: Din
via NSDC Corop.
Dayal Upa. Gramin Kaushalya Yoj.
vendor market training;
15 age+; train 10 lakh youth in next 3 years;
shelter for homeless
setup training centre; international syllabus; PH
urban SHG: 10k loan;
attention
enterprise loan interest
subsidy

Jivan Praman

Why? Pensioner need to submit physical life certificate every year- to show hes alive
and claim pension.
Jivan Praman = Aadhar-based Digital Life Certificate.
DEITY (Dept. of Electro.&IT) designed software.
Software reads pensioners Aadhar card, biometric data=> uploaded to server=> digital
life certificate generated.
Pension giving babu can access online and release pension.
Pensioner no need to physically visit office => less inconvenience and bribery
harassment. Dignity to elderly.

EPFO

UAN: Uniform account number for >4 crore subscribers: can view account, transaction
data, grievances redressal. No need to get new number when changing jobs.
LIN: Labour identification number for ~6 lakh employers. So they can file online
provident contribution, annual returns. Less inspector raj and harassment.
Assured Minimum Rs.1000 pension, compulsory EPS for upto 15k salary.

RSBY revamped (soon)

Rashtriya Swasthya Bima yojana.

Plans to merge Aam Admi Bima Yojana and India Gandhi old age pension with it
Smart card for unorganized workers.
3rd party audit, call centre for grievances

Labour/Skill: Misc.Schemes
Udaan
Skilling J&K youth by MHA+NSDC
Budget 2014.
Employability + entrepreneurial skill. (get job and give job)
Even traditional welder, carpenters, cobblers, masons be given training to
SKill India
become suitable to Make in India.(e.g. pepperfry.com online furniture
shopping site- after delivery carpenter assembles at your home)

USAAD

Skilling minority artisans

Kashmiri embroidery, bengali jardosi, sikh phulkari embroidary, buddhist
thangka paintings

Nai Manzil Skilling Madressa passouts to join main-stream (computer, english etc)
Varistha
60 and above
pension
From 15th aug. 1 year validity
bima
Committee on how to use unclaimed money from post-office, PPF etc. for elderly
HR Khan
welfare.
Next coming revision note: GS2: IR related Economy- bodies & agreements.
Tags: Rajtanil, shivaram

[Diplomacy] AIIB: Asian Infrastructure Investment Bank- purpose, structure, Indias

interests- pro & anti arguments
Diplomacy2 weeks Ago58 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi

1. Background
2. AIIB: Chinese interest
1. #1: Make truckload of profit
2. #2: help in Maritime Silk policy
3. #3: Counter US-Japan dominated IMF+ADB
3. AIIB: Membership
1. Who has not joined?
2. AIIB Structure
3. Shareholding and Voting Power
4. Pro Arguments: India will benefit because
1. #1: something is better than nothing
2. #2: we do have voting power
3. #3: Africa will benefit
4. #4: Competition = cheaper loans
5. Anti-Arguments: India wont benefit bcoz:
1. #1: America says so
2. #2: bogus countries will benefit
3. #3: China doesnt listen to others
6. Mock Questions
Background

ADB report: till 2020, every year, ASIA needs ~$800 billion for infra-structure
investment.
Asian Development bank (ADB) itself cant lend more than $10 billion.
Bretton woods organisations (IMF and World bank) not interested in lending such large
fund to Asia alone.
Therefore, 11th(!) Jinping came up with idea to setup multilateral development bank to
lend money exclusively to Asia. (2013)

AIIB: Chinese interest

What are the real motives of China behind setting up Asian Infrastructure Investment Bank
(AIIB)?
#1: Make truckload of profit

China has a hugh forex reserve. Wants to make profit out it.
AIIBs total authorized Capital: $100 billion. Out of that, China willing to give 50%
capital=> bank circulate loan money => bank earns interest=>China gets truckload of
dividend for being largest shareholder.

#2: help in Maritime Silk policy

AIIB will finance rail-road-ports infrastructure along the ancient silk route.
Thus, itll help Chinas maritime Silk policy.

#3: Counter US-Japan dominated IMF+ADB

IMF not reforming its governance structure. The size of Chinese economy, same as USA.
Yet Chinese voting power in IMF = 1/3rd of American voting power.
In ADB, US+Japan =each has ~16% shareholding, while China has ~7%. Again China
resents their domination. (*numbers from Business-standard report).
Therefore, China wants to counter IMF+ADBs hegemony (domination) via
BRICS+AIIB.
Countering IMF= will also help to popularize use of Chinese Yuan instead of US dollar.

AIIB: Membership

Asian Infrastructure Investment Bank (AIIB)

Asian Infrastructure Investment Bank (AIIB) has total 22 members= China + 21 others who
signed MoU. Lets count:
12. Myanmar
13. Nepal
1. Bangladesh
2. Brunei
3. Cambodia
4. China
5. India
6. Indonesia (later joined)
7. Kazakhstan
8. Kuwait
9. Laos
10. Malaysia
11. Mongolia

14. Oman
15. Pakistan
16. Philippines
17. Qatar
18. Singapore
19. Sri Lanka
20. Thailand
21. Uzbekistan
22. Vietnam

Who has not joined?

Bhutan, Tajikistan, Kyrgyzstan not part of the bank

Initially Indonesia didnot attend MoU signing ceremony. But later it joined.
South Korea, Australia did not attend MoU signing ceremony. Reports say, USA played
behind the curtains to force them not to join this bank.

AIIB Structure
HQ: Beijing; 3-tier structure
Highest Decision Making body.
Board
of
Voting power according to share holding
Governors
Shareholding according to GDP
Board
Directors

of

Board of Governors, will elect these directors.

Theyll decide budget and submit reports to Board of Governors

He is the president of Board of directors.

Person with long experience and ethical integrity in banking
/economics / finance.
Hell be selected on merit.
Responsible for Day to day administration, hire and fire staff.
He can appoint vice President to reduce work load.

President

Notes:

2014, Oct: at present only MoU is signed. Bank is yet to begin operations.
2015: Article of association will be signed. Then structure-function and voting power will
become clear.

Shareholding and Voting Power

Indian newspapers are giving different numbers. Therefore, Im relying on Xinhua for
authentic information on this China-led bank:

Authorized capital is 100 billion USD

China willing to give 50% of that = 50 billion.
But China said they dont want to be single majority shareholder and In future, they will
gradually dilute Chinese shareholding when new members join.
Shareholding to be decided on GDP adjusted for Purchasing Power parity (PPP).
Accordingly, China largest and India second largest shareholder.

Pro Arguments: India will benefit because

#1: something is better than nothing

12th Five year plan says we need $1 trillion dollar investment in infrastructure.
While Modi is relaxing FDI, promoting Make in India, striving for ease of doing
business; Modi met Chinese, Japanese and American leaders to invest in India and so on.
But still, $1 trillion is a huge amount, so whatever few billions dollars we get as soft
loan from AIIB, BRICS bank or xyz other institution- is good.

#2: we do have voting power

India will be the 2nd largest subscriber to AIIB.

Besides we have good relations with other asian countries that are in AIIB but are not
best friends of China.
So collectively, well have sufficient voting power in the board, to counter any moves
hurting Indian interest.

#3: Africa will benefit

Since AIIB will loan to Asian countries, itll slightly reduce world banks pressure to
finance Asian projects. Then World bank can divert more funds to Africa.
African development is also in Indias best interest because:
o Indian exports will increase
o Terror networks will weaken
o Sea-piracy will decrease.

#4: Competition = cheaper loans

ADB often accused of a slow-moving bureaucracy- gives loans too late and with too
many strings attached.
China brags that AIIB will have a clean, simplified and efficient bureaucracy.
October 2014: World Bank President Jim Yong Kim began internal restructuring,
reducing staff salary and perks. It means things are not hunky dory with world bank
(same going with Yahoo).
The entry of AIIB will further increase the competition, catalyze the reforms in other
Multilateral banks- perhaps theyll reduce interest rates, EMIs and may even begin
telemarketing for Sovereign loans!

Anti-Arguments: India wont benefit bcoz:

#1: America says so

AIIBs objectives are ambiguous

AIIB lacks transparency.

#2: bogus countries will benefit

In past, China loaned to countries without good-governance or respect for human rights
or functional democracy or environmental safety: Pakistan, Myanmar and many African
autocracies to name a few.
Using AIIB, China will try to legitimize such funding in the name of infrastructure
development.

Counter argument: in past even ADB loans to Cambodia and Laos have been misused,
ethnic minorities were displaced for infra-projects. so, AIIB= villain, and ADB+World
bank = saints, such sterotyping is wrong.

#3: China doesnt listen to others

2014, July: South Korea proposed- we should setup AIIB Headquarter in Seoul or
Songdo- to reduce the fears of US, Japan and Western powers.
But Jinping rejected the idea and setup HQ in Beijing. This is one of the reasons why
South Korea did not come to MoU signing.
China may use the same strong-arm tactics in future as well e.g. AIIBS giving loan to
project in PoK and India protests.

Timeline: AIIB
2013
11th Jinping says lets open a new bank.
2014, June S.Korea wants HQ in S.Korea, but Jinping decides Beijing.
2014, Oct MoU signed among China and 21 nations to setup AIIB.
Mock Questions
CSAT MCQs:
1. twisting the facts to create 2TF, 3TF, even 5TF questions example: AIIB HQ is Seoul;
Chairman is Jim Yong Kim, India is 3rd largest shareholder, Australia has joined, Laos is
the only ASEAN country not to join and so on. Then youll be asked to find out the
correct statements.
2. Interchanging facts between AIIB and BRICS bank to create more true/false type
questions.
3. Match the following: Bank vs HQ, Bank vs Chairman, Bank vs Members
Mains examination
Answer
following
200
GS2: Important international institutions, structure, mandate.

word

each:

1. Compare and contrast the structure and purpose of BRICS bank and AIIB. [In 2013
mains, similar question on IMF vs world bank, was asked.]
2. Has India made a right choice by joining China-led AIIB? Justify your stand. 200 words.
3. Does India need AIIB? (Similar one liner question asked in Mains 2009)
GS3: infrastructure / resource mobilization

1. Discuss the role and the importance of Multilateral Development banks for Infrastructure
finance in India.

[SAARC] Education- Delhi Declaration, Energy- SAME Agreement, Cultural Capital

Bamiyan
Diplomacy3 weeks Ago39 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.

Prologue
SAARC#1: Delhi declaration on Education
SAARC#2: Energy cooperation & SAME agreement
SAARC#3: Cultural Capital Bamiyan

Prologue

SAARC related three current affairs topics in news during September and October 2014.
for background theory on SAARC organization visit Mrunal.org/diplomacy
Relevance: UPSC GS Mains paper 2: Bilateral, regional and global groupings and
agreements involving India and/or affecting Indias interests. + CSAT MCQs on
Bamiyan given UPSCs affection for Buddhism.

SAARC#1: Delhi declaration on Education

Origin?

2014, Oct: SAARC education ministers meeting held at Delhi.

They issued a joint statement called SAARC Delhi declaration on education.

Delhi declaration on Education

Education for all

Students from disadvantaged groups, cannot finish education or gain vocational skills,
due to discrimination and poverty. Therefore, well adopt inclusive education policy.
Well increase budget provisions for above inclusive education, Gender equitable
education and higher education.
Thus, well achieve Education for all / Universalization of education (= in long term less
terrorist-recruits for ISI).

But how?

School dropouts in 15-24 age group, will be given vocational training / distance
education.
Promote Massive Open Online Course, e-learning, ICT tools for learning.
Mutual recognition of paper degrees, Harmonize of academic standards. So migrant
workers can get job easily in another SAARC member-country.

Each member will share its best education practices and secret coaching class material
with others.

Colleges

Each SAARC nation will develop an accreditation system. So foreign students can know
the bogus colleges before applying.
Student and faculty exchange programs among SAARC members.
Linkages between universities, R&D bodies and think tanks.
(facebook) networking among scientists, students and organizations.
Four years back, we had setup South Asian university in Delhi. Lets promote it institute
of excellence.

In Future:

Well Formulate post-2015 education development goals. Expert group will meet in
2015, June for this.
Next meeting of education ministers @Maldives.

Mock Question (GS2): Discuss the importance of Education and cultural diplomacy to
strengthen relationship between the SAARC countries. 200 words.
SAARC#2: Energy cooperation & SAME agreement

Salient Features: SAARC Market of Electricity (SAME) Agreement

Why SAARC Energy grid?
1. SAARC nations 30% energy needs met through imports.
2. Direct correlation between Per capita electricity consumption vs Human Development
index (HDI). But SAARC regions per capita consumption very low (128 units)
compared to world average (3045 units).
3. ADB report says SAARC energy trade will increase people to people and economic ties
among the SAARC nations.
4. At present, India is imports hydro-electricity from Bhutan (1500MW)
5. India exports electricity to Nepal (150 MW) and Bangladesh (500MW)
6. Rivers can flow in one direction but energy can flow in any direction of our choice.
Therefore, Once SAARC energy grid is setup, deeper cooperation is possible. For
example:
7. Bangladesh is in dire need of electricity. During irrigation season, it has to reduce power
to manufacturing industries, to supply electricity to agriculture belt. But with a gridnetwork, it could import North East Indias hydroelectric power.
8. Same way, Sri Lanka / Tamilnadus offshore wind energy could be sold to Nepal or
Afghanistan.
9. Under BCIM forum (Bangladesh-China-India-Myanmar), China proposed energy
cooperation. If SAARC-grid setup, then a large electric network of SAARC+BCIM =
cheaper electricity = per capita consumption will increase = better HDI for all countries.
SAME agreement
1.
2.
3.
4.
5.

SAARC Market of Electricity (SAME) Agreement.

Finalized at New Delhi meeting of SAARC energy ministers. (2014, October)
Aims to setup a SAARC energy grid
This grid will help transferring electricity among SAARC-nations.
Focus on 3 pronged strategy:
I. Harness both conventional and renewable energy.
II. Build inter-connected transmission grids
III. Power trade agreements.
6. + building underwater DC line to Shri Lanka.
7. Will come into force after all members ratify it.
Timeline of events
2005
SAARC energy ministers 1st meeting.
2010
They begin deliberation on Energy cooperation agreement.
2014,
SAARC energy ministers finalized the agreement at Delhi. (Pakis did not come

Oct

2014,
Nov

though).
Although Pakis recently signed a separate agreement to import electricity from
Central Asia via Afghanistan.
SAARC summit in Kathmandu, Nepal.
Theme: Deeper integration for peace and prosperity.
Members will sign this agreement.

Mock Question (GS2): Discuss the scope of energy cooperation among SAARC nations and
examine the importance of SAME Agreement in this regard. 200 words
SAARC#3: Cultural Capital Bamiyan

Bamiyan Afghanistan: SAARCs cultural capital for 2015

Timeline: Cultural capitals of SAARC
2001 Taliban blow up Buddhas two ancient statues in Bamiyan, Afghanistan.
2015 Bamiyan will become SAARC Cultural capital from April 2015 onwards.
2016 Dhaka will become SAARC cultural capital.
Bamiyan: Background theory for MCQs

Bamiyan is the valley between hindu kush and Koh-i-baba mountain ranges
Located on ancient silk route

Part of Kushana empire (till 1st century AD) -> saffarids -> Ghazani (11th century AD)
Capital of Huns in 5th AD
Cultural city of Hazara ethnic people.
Notable sites: Buddha cliffs, caves of monks and shar-i-gholghola (city of sighs)

Buddhas cliff
Monks caves
There were 3 Buddhas statues
Located behind those statues.
engraved in the cliff (6th century AD)
The worlds earliest oil paintings, Buddhist
Style: Gandhar school.
statues and manuscripts found here.
One of them was worlds tallest
Taliban used these caves to store their
standing statue of Buddha.
weapons.

For background theory on SAARC organization visit

[HRD] Din Dayal Antyodaya Yojana: Skill Training for Urban and Rural Poors + 100 days
of HRD ministry
Economy3 weeks Ago29 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Why Din Dayal Antyodaya Yojana (DAY)?
2. S1: Rural Deen Dayal
3. S2: URBAN Deen Dayal
1. 6 Components of DDUAY scheme
4. Deen Dayal ties up with NSDC
5. NRLM and NULM
6. 100 days of HRD ministry under Modi Government
7. Mock Questions
Why Din Dayal Antyodaya Yojana (DAY)?

To provide Skill training to poors in cities and villages. Unemployment gone, poverty
gone.
By 2020, developed nations will have shortage of ~57 million workers. Foreign
companies will have to outsource work elsewhere.
Modi wants them to Make in India. BUT companies want four things first:
1. Ease of doing business- file clearance without suitcase-raj.
2. Stable taxation policy.

3. Industrial location factors that we saw under Geography.

4. Cheap but skilled labour force. (India will have ~47 million new workers by
2020).
Every year, 12 million Indians join workforce but out of them only 10% are skilled. In
EU (70%), China (50%)
Therefore, success of Make in India, will depend on success of Din Dayal Antyodaya
Yojana.

Scheme basic facts

City-folks: Ministry of Housing & Urban Poverty Alleviation (HUPA)
Who?
Villagers: Rural Development ministry.

When?

2014, September: Scheme Announced. September 25 will be celebrated as

Antyodaya Diwas in memory of Deen Dayal Upadhyaya
Rural: starts from 2014 itself.
Urban: starts from 2016.

Why? Skill training to poors in both cities and villages.

S1: Rural Deen Dayal

If Poor farmer Bhuvan doesnt want to pay Lagaan, he better get skill training & change
profession

Official
name

Eligibility

Target

Deen Dayal Upadhyaya Grameen Kaushalya Yojana.

SGSY=> renamed to NRLM => renamed to Aajeevika.
Aajeevika has a subcomponent for skill Development => It isrenamed as
this Deen Dayal scheme.
Rural folks- 15 years age and above.
In the erstwhile Aajeevika skill Development component, the eligibility was
18 years.
Train 10 lakh rural youth
In next 3 years (by 2017)

Government will setup training centres in rural areas.

Training syllabus will be descend on international standards, so that rural youth can work
in the foreign companies coming to India under Prime ministers Make in India
campaign.
Special attention to physically disabled persons.

S2: URBAN Deen Dayal

If Self-employed Rangeela Amir Khan wants to leave ticket-black business & start an honest
life, he better get skill training
Official name Deen Dayal Upadhyay Antyodaya Yojana (DAY)
Eligibility
Urban Poors
Target
Every year, train 5 lakh people
6 Components of DDUAY scheme
1. Setup City livelihood centres with Rs.10 lakh grant.
2. Give training to each urban poor via those centres. Government will spent Rs.15k-18k on
training each of them. Yearly target: 5 lakh persons.

3. Form Urban Self Help Groups (SHG). Give Bank linkage and Rs.10,000 to each such
group.
4. Setup Vendor markets, and give skill training to vendors as well.
5. Construction of permanent shelters for urban homeless + other essential services.
6. Help poors setup enterprises. Give them loan At 7% interest rate.
Enterprises
Interest Subsidy (Rs.)
Individual micro-enterprise Rs. 2 lakh
Group Enterprises
Rs. 10 lakh
Deen Dayal ties up with NSDC

HUPA signed MoU with NSDC-National Skill Development Corporation (NSDC)

NSDC will training to poor, according to market needs, via its training centres.
NSDC will also help in identification of beneficiaries besides certification of training
programmes through Sector Skill Councils (SSCs).
Sector Skill Councils SSCs: They are industry led bodies. They define Standards and
Syllabus for different training program in given industrial sector.
NSDC will identify beneficiaries and design their training program with help of above
SSCs.
Thus, NSDC-HUPA tie up will help in speedy and result oriented implementation of
Deen Dayal Antyodaya Yojana.

NRLM and NULM

Whats the difference?
NRLM
NRUM
Original name Swarnjayanti Gram Swarozgar Yojana
Swarnajayanti Sahari Swarojgar Yojana
(SGSY).
Later renamed to National Rural Livelihood Mission
National urban livelihoods mission
(NRLM)
May be the IAS in HUPA ministry
doesnt want to harass UPSC aspirants,
Finally renamed to Aajeevika.
therefore did not device a fancy name
parallel to Aajeevika.
Housing & Urban Poverty Alleviation
Rural Development ministry
(HUPA) Ministry
By 2024, get one person (preferably woman)
Self-help groups: bank credit +
from each household, into an income
subsidies + skill training
generating Self-help groups (SHG).
street vendors also get easy loans

By Giving (Bank loans + subsidy + training) to

those SHG.
It had a sub-component for training rural
youth. Named Aajeevika Skill Development
Program (ASDP) Now that sub-component is
renamed into Deen Dayal Upadhyaya Grameen
Kaushalya Yojana.

and skill training

Shelters for the homeless.

I think sooner or later, Modi will shut down or subsume these two old schemes into the new Din
Dayal scheme.
Economic Survey observation:

Aajeevika Scheme worked fine for agarbatti, pottery, tailoring and other small business
activities.
But at some places, Government made too much infrastructure investment compared to
scope of the given business activity.

Aajeevika: Budget 2014

Under Aajiveeka, Women-SHG in backward districts get loans at cheaper interest rate.
Budget 2014 increased the number of backward districts under this scheme.

Loan interest rate Before 2014

after
4%
In 150 most backward district +100 more added = 250
7%
Remaining districts
interest rate unchanged (7%)
More districts to get Cheaper SHG-loans. Additionally, Budget 2014 also announced Start Up
Village Entrepreneurship Programme for rural youth.
100 days of HRD ministry under Modi Government
Just a quick reference table prepared from this PIB report.
pib.nic.in/release/release.asp?relid=109585
Schemes for for girls
Beti Bachao Beti Department of School Education and Literacy (DSEL), supported the Ministry
Padhao
of Women and Child Development for roll out in 100 districts.
Swami
Single Girl Child Scholarship for Research in Social Sciences

Vivekananda
UDAAN
(CBSE)
PRAGATI
(AICTE)

UGC Junior Research Fellowship @ Rs. 8,000/10,000/- per month.

to enable backward girls to move to post-school education in Science and

Maths.
Providing Assistance for Girls Advancement in Technical Education
Initiativeone girl per family whose family income < 6 lakhs p.a on merit at the
qualifying examination to pursue technical education.

other schemes
Saksham

Scholarships to differently abled students to pursue technical education.

scholarships to students from North East Region whose parental income is
Ishan Uday
below Rs. 4.5 lakh per annum for college education.
Ishn Viks
Visit/Internship at IIT/NIT/IISER by students of NE region.
to focus on the quality of foundational learning.
Padhe
Bharat
a sub-component of Sarva Shiksha Abhiyan(SSA)
Badhe Bharat

SWAYAM

Study Webs of Active-Learning for Young Aspiring Minds

Professors of IITs/IIMs/Central universities will offer online courses
to citizens of our country.

National E-Library Digital books to all citizens.

Mock Questions
CSAT MCQs: interchanging facts between Din Dayal vs Ajeevika vs NRUM to design trap
statements. For example:

Din Dayal Antyodaya scheme is meant for subsidized grains to widows and destitute.
DDUAY falls under Skill Development ministry.
Under its rural component, Government aims to train 5 lakh persons per year.
DDUAY will subsume UDAAN scheme for J&K youth.

And so onThen youll be asked to idenify Which of the above statements are correct? Only 1
and 2; only 2 and 3; and so on.
Mains:
1. Success of Make in India, will depend on success of Din Dayal Antyodaya Yojana.
Elaborate. 200 words.

2. Write a note on the salient features of DDUAY Yojana / NRUM / NRLM / those fifty
dozen new schemes of HRD under 100 days. (Although I doubt whether UPSC will ask
such cheap and easy questions in mains. Except ofcourse under a double-bluff
backbreaking moveTM.)
[HRD] Government Intervention for Skill development, issues from design &
implementation for GS Mains2
Economy3 weeks Ago12 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.
8.
9.

Prologue
Whatre the problems?
Whatre the solutions?
#1: define skill development
#2: Decide Outcomes
#3: Cash-funding on outcomes
#4: Motivate both trainee and trainer
#5: Monitor beneficiaries
Appendix: NSDA vs NSDC

Prologue

2013, December: Panel to rationalize various skill Development schemes. It gave report
in 2014, October.
Relevance: GS Mains 2: Government policies and interventions for development in
various sectors and issues arising out of their design and implementation.
It will be a funny and fruitful exercise if you replace the word skill/skill development
in the below article and substitute with any other word like poverty / unemployment /
rural /education / nutrition / healthcare. Then same fodder can be applied to variety of
questions and essay.

Panel Composition:

S.Ramdorai, The chairman of NSDA- National Skill Development agency. Mind itNSDA and not NSDC.
Officials from two-dozen ministries.

Whatre the problems?

1. Total 22 ministries running parallel schemes for Skill development- textile, commerce,
HRD, labour and so on.
2. States have created their own State Skill Development Missions (SSDMs)
3. Each of them has different norms for eligibility criteria, training duration,
scholarship/subsidy to beneficiary, outcomes, monitoring and tracking mechanism.
4. This leads to Resource wastage, while some beneficiaries get multiple benefits for
undergoing same type of training.
Whatre the solutions?
NSDA panel gave five point someone strategy:

How to design a scheme properly? NSDA Panels 5 Point strategy

1. First define what exactly is skill development?
2. Second, decide outcomes or success parameters
3. Third, give cash funding only based on the outcomes.

4. Fourth, motivate both trainer and the trainee.

5. Fifth- monitor the beneficiaries of all the Rajiv Gandhi skill LELO yojanas.
#1: define skill development
Panel identified four types of skill development:
Gives training to fresh entrants / no0bs so they became sellable in labor
market.
Fresher
Give them minimum 200 hours of training.

Re-skilling

upgrading skill of a person already doing some job / business.

Giveem minimum 80 hours of training.

Recognition Giving paper degrees and fancy certificates to skilled person.

College
Running formal education courses like diplomas and degrees.

If a given scheme is not doing ONE of the FOUR things listed above, then its not a skill
Development scheme.
In case, you are wondering how can we play word-replacement game on this? Well,
Defining a parameter has always been a controversial exercise. Recall the new Poverty
line design by Rangarajan and how the NATION (Arnab Goswami) and RANGA (the
villain) were unhappy because of that.
Same goes for defining malnutrition, Education under Sarva Sikha Abhiyan, productive
assets under MNREGA and so on.

#2: Decide Outcomes

At present, the ministries measure success outcome of their schemes on two parameters only:
1. How many people got training?
2. How many crores spent?
Panel says we must measure outcomes in a more rational manner:
1. Did the person get job after training?
2. For how long was he able to retain that job? [e.g. Youngman got fancy certificate under
some training scheme and got job in an automobile company. But he was thrown out in
less than a month for he lacks the specific job-skills, then the scheme is a failure.]
3. If a person was already in job/business, then, after getting training in our scheme,
whether his income increase or not?

How can we play word-replacement game in this?

Consider education scheme Sarva Siksha Abhiyan. It measures outcomes on how many
teacher employed, no. of students enrolled, no. of buildings constructed.
But a rational outcome can measured from NGO Prathams survey i.e. can a 5th Standard
kid read a textbook and solve math sums of 2nd standard or not?

#3: Cash-funding on outcomes

Panel recommends- first do a time study and cost study of the given training
program.
Then, Decide scheme costs on Per trainee, on per hour basis.
Government should release the fund money based on OUTCOMES. e.g. 100 people
trained but only 50 got job, then funding= 50 people x cost per person x no. of training
hours.
Result: cost cut down and fiscal deficit reduced.
This cost-cutting formula will not apply to Home ministrys UDAAN Scheme for J&K
youth training. Because its main purpose is national-integration.

#4: Motivate both trainee and trainer

Motivate trainer (teacher)

Trainer /teacher will Rs. 3000 bonus if 70% of his batch-students achieve the outcomes.
Rs. 5,000 bonus, if 90% of students achieve outcomes.
This will motivate the trainers to focus more on the individual beneficiaries.
This type of incentives already present in healthcare sector e.g. ASHA-workers get
additional bonus for Vasectomy, DOTS program and on.
But, we can adopt the same for school Teachers under Sarva Siksha Abhiyan, if 70% or
90% of their students pass Prathams test, teacher get salary bonus.

Motivate Trainee (student)

Panel says, beneficiary must be give minimum 1,000 rupees security deposit. Itll be
refunded at the end of program.
This will ensure only Serious players join the program, attend all lectures, learn the
concepts and make handwritten notes seriously.
Although hard to adopt in other sectors e.g. asking BPL family to give refundable deposit
before their kid joins a posh school under 25% reservation quota under right to education
act. OR asking a TB patient to deposit 1000 rupees to ensure he takes DOTS pills on
regular basis!

#5: Monitor beneficiaries

In Government schemes, outcome is measured in how many crores spent and under the budget
rules, department has to return unspent money after 31st March. Leads to following angles
1. March rush: from April to December laziness. From January to March suddenly the
ministries will run dozens of camps and seminars to spend money in haste, before 31st
March comes.
2. Bogus beneficiaries and corruption.
3. Same person getting multiple training /scholarship from multiple ministries for similar
type of training.
Therefore, panel says we must setup Management Information System(MIS) and Adhar cards to
track beneficiaries and their careers. Now, Take this as a framework answer to any of the
questions asked on social schemes- how to fix its design and implementation!
Appendix: NSDA vs NSDC
Whats the difference?
NSDA
NSDC
National skill development Agency
National skill development Corporation
Born in 2013
Born in 2009
100%
Government
owned
Not for profit Company under the
Autonomous body.
Companies Act
Earlier this was Prime ministers
Ownership: 51% private ; 49% Finance
national council on skill development
ministry
(PMNCSD).

Advisory and Coordination work for

Union, States, NSDC, international
donors and private companies.
Run national database for labor
market information.
Ensure
SC,
ST,
OBC,
women/minorities

Mock Questions for Mains (GS2)

Give skill training to 150 million Indians

by 2022.
Some websites say 500 million. But Actual
target to cover 30% of the 500 million
people by 2022. So 0.3 x 500=150 million.

Discuss the problem areas in the design and implementation of Skill development
schemes in India. List the necessary modifications in them to reap full demographic
dividend. 200 words.
Same question for education, healthcare, handicraft, tribal-Development and other
sectors.

[RPA] Paid News, Election commission Guidelines, why Amend RPA, Ethics in Journalism
polity3 weeks Ago16 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1.
2.
3.
4.
5.
6.
7.
8.

Prologue
What is paid news?
Why is Paid news bad?
What has Election commission done?
What has press council done?
Suggest further reforms
Challenges ahead
Appendix: Expenditure and Deposit limits

Prologue

Topic in news: 2014, October because Chief Election Commissioner (CEC) said we
need to amend RPA, make paid news an election offense with minimum 2 years jail time
and candidates disqualification.
Relevance in UPSC civil service Exam?
o CSAT: Expenditure limits related MCQs
o GS2: Salient features of the Representation of Peoples Act.
o GS4: Case studies involving ethics in journalism.
o Essay: Fodder for Media -pillar of democracy and topics of similar theme.

What is paid news?

It is a news article, editorial or headline banner.

Appearing in print/electronic media.
For which the editor, journalist OR media-house has accepted cash or kind.
Some examples of Paid news:

Newspaper publishing a banner headline on FrontPage stating that a Mr. X is

ready to create history in the __ election. But reporter has not presented any news
item related to this headline.
o News item stating that one candidate is getting the support of each and every
section of society and that he would win elections from the constituency.
o

Why is Paid news bad?

1. Election Commission (EC) has setup limits on election Expenditure. But if rich
candidates are secretly paying media houses for favorable reporting, then poor candidates
dont get a level playing field in election campaigning.
2. Reduces voter turnout. Since Paid news creates an atmosphere that only Mr.X will win,
then some of supporters of Mr.Y, wont goto polling-booth, thinking their time and vote
will be wasted anyways.
3. Thus, Paid news prevents voters from selecting right candidate.
What has Election commission done to stop paid news?

Suggest the steps to curb Paid news during elections

1. Under Representation of Peoples Act (RPA) 48 hours before the polling, media cannot
display any news that can influence the voters. (else jail 2 years)
2. Media cannot run exit polls until the election polling phases are complete. if in doubt,
they should seek permission of District election officer.
3. EC has ordered the District Collectors to meet with Political Parties and media houses, to
inform them about consequences of surrogate advertising and Paid News.

4. EC has setup MCMC Committee at every district and state level. MCMC=Media
Certification & Monitoring Committee.
5. This Committee is made up of Returning officer, representatives from I&B ministries.
6. They scrutinize all media coverage within their jurisdiction.
7. If they suspect a paid news or surrogate news, they seek explanation from respective
candidate.
8. If reply unsatisfactory, then they include money spend on the paid news, in candidates
election Expenditure.
9. EC has also written to Press council of India to set clear guidelines and punishment.
What has press council done?
Theyve issued following guidelines
1. Advertisement and news items should be set in different fonts.
2. News should carry credit line / source. Ads should carry disclaimers.
3. newspapers should not exaggerated reports about any candidate/party or incident during
the elections
4. Newspaper should not leave out any important point raised by a candidate.
5. Should not promote feelings of hatred between people about religion, race, caste,
community or language.
6. Must not publish unverified allegations against any candidate/party.
7. Must not accept any inducement/money/gift/hospitality/facilities from any candidate or
party.
8. Press shall not accept/publish any advertisement at the cost of public exchequer regarding
achievements of a party/government in power.
News Broadcasters Association
They also issued similar guidelines like PCI. Additionally following points given:
1. News broadcasters should maintain a clear distinction between editorial and expert
opinion carried on their news channels.
2. must not broadcast any hate speech
3. All paid content should be clearly marked as Paid Advertisement or Paid Content
4. Exit polls: should explain the methodology used, the sample size, the margin of error, the
fieldwork dates, and data used. Broadcasters should also disclose how vote shares are
converted to seat shares.
Suggest further reforms

CEC has proposed following:

1. Right now, Paid news is not an electoral offense. In worst case scenario, candidate will be
considered guilty for exceeding election Expenditure limits. In that case he just has to pay
fine. No disqualification, No deterrence.
2. Therefore, we need to amend Representation of Peoples act 1951, to make paid news
an electoral offense, with minimum 2 years jailtime and disqualification of candidate.
3. Government ads before polls, should be considered paid news. (recall the Madhav
menon said Government should not display ads before election except job-tender and
public safety.)
4. Enact a law for opinion polls conducted by TV channels.
5. Additionally, we need to make clear guidelines on election Expenditure because:
a. Candidates poll Expenditure is counted from the day he files nomination.
Therefore, politicians spend crores on media-campaign before filing nomination.
(some of them even delay nomination till last date).
b. Poll Expenditure limits is for candidates and none for political parties. This rule is
also misused.
Challenges ahead
1. It is very difficult to prove paid news because money transfer done via Hawala and
sometimes in kind e.g. land-allotment after election, free wine-n-dine, luxury phones,
tours.
2. Contractual employment in media houses- journalist dont truly have independence.
Editors and Media owners enjoy too much discretionary powers.
3. Companies with political affiliations. They enter in private treaties with media house.
Product advertisement contracts given, in exchange of biased reporting during elections.
4. Companies with political affiliations themselves, own media-houses and news channels.
Therefore, nuisance of paid new can be fixed only by self-regulation of political parties and
media houses. RPA-amendment alone, will be insufficient.
Appendix
Election Expenditure limits
State
Lok Sabha
Vidhan Sabha
Large states: MP, UP, WB etc. 70 lakh
28 lakh
North East & hill states
53 lakh (incl.Goa & other small states) 20 lakh
Above limits are decided under representation of peoples act 1951=> conduct of election rules,
1961.

Deposit amount for Lok Sabha elections

Category
Lok Sabha (Rs.) Vidhan Sabha (Rs.)
Gen/OBC
25,000
10,000
SC/ST=50% less than above. 12,500
5,000
above limits are decided by Representation of Peoples Act 1951=> section 34/1/b.
If the candidate fails to get a minimum of one-sixth of the total valid votes polled=> deposit
taken away, sent to treasury.
Mock Question (GS2): Paid news is a tantamount to committing a fraud on the voters. Discuss
the steps taken by Election commission of India to curb this malpractice and suggest reforms in
Representation of Peoples act, if any. 200 words.
Visit Mrunal.org/Polity for entire Archive of Polity, RPA and election related articles
[Elections] NR Madhava Menon Committee report on Government advertizements in
Media
polity3 weeks Ago11 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1.
2.
3.
4.

1: NGOs PIL (2003)

2: UPA-Governments reply
3: Supreme Court order (2014, April)
4: Madhava Menon report (2014, October)

1: NGOs PIL (2003)

1. Government advertisements even carry photos of ruling party leaders (SoniaG), try to
create impression as if she is responsible for public goods.
2. When ruling party uses public money to gain personal political mileage in government
ads, it violates following articles
a. Article 14. [Equality before the law];
b. Article 21 because public money diverted for partisan use. This is one type of
arbitrary executive action that undermines liberty of the citizens.
c. Therefore citizen can seek remedy in Supreme Court, under Article 32.
2: UPA-Governments reply

1. NGO petitioner is exaggerating the matter. After all 60% of the Govt. ads deal with job
recruitment, public tender and notices.
2. Ads are not done for personal publicity but for informing junta about sarkari schemes
named after *you know who*.
3. That way, junta can make informed decisions.
3: Supreme Court order (2014, April)
1. Canada, Australia have official policy to regulate Govt. ads and prevent their abuse.
2. But India doesnt have such policy- to decide which ads are meant for public awareness
purpose and which ads have political motive.
3. Hence we form Committee under N.R.Madhava Menon* to study best practices across
the world and recommend guidelines for sarkaari-ads.
4. Committee to give report within three months.
Committee members
N.R. Madhava Menon Ex-Director, National Judicial Academy, Bhopal.
Ranjit Kumar
Solicitor-General
T.K. Viswanathan
Ex-Law Secretary
4: Madhava Menon report (2014, October)

Major recommendations of Madhava Menon Committee on Govt. ads

Government ads must not display following:

Stop glorification of political figure or party in power- especially on the eve of elections.
Donor publish photos political leaders (except President/Prime Minister or
Governor/Chief Minister)
Donor name of the political parties including ruling party.
No political symbol/logo/flag.
No website links to political parties or political leader.
No attack on opposition parties.

Government ads should cover only following:

1. Ads related to government responsibilities, public safety, awareness.
2. Government ads shall maintain political neutrality. Display message in objective and fair
manner.
3. Prior to elections, display no Government ads, except following:
a. Law and order related
b. Public health, disaster precaution, safety advisories
c. Job applications, tender-contract advertisements
4. During Nehru, Gandhi or xyz anniversary, multiple ministries, departments and PSUs run
separate advertisements, thus wasting public money. For such anniversaries/
commemorations, issue only single advertisement.
5. Additionally: setup an Ombudsman to check violation of these guidelines.

If congress elected back in power, they wont be able to do this

Mock Question (GS2): The use of government advertising as a tool for political propaganda,
especially during election time, has been a key concern in many democracies. List the
suggestions made by Madhav Menon panel to address this issue in India. 200 words.
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
[GS3] Development vs Extremism: Xaxa Committee report, Tribal land alienation
polity3 weeks Ago10 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. Prologue
2. What was purpose of Xaxa Committee?
1. Land acquisition: Problems found:
2. Land Acquisition: Suggestions given
3. Mining in tribal areas
4. Linkage with Extremism
3. Appendix: Tribal insurgency
4. Appendix 2: Constitutional & Legal protection

5. Mock Questions for Mains

Prologue

Topic in News: As such Xaxa Committee was formed in 2013 and gave report in May
2014. But Indian express released detailed report in October 2014 hence in news.

Relevance in UPSC Mains Exam:

GS3: Linkages between development and spread of extremism.

GS2: Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
GS2: mechanisms, laws, institutions and Bodies constituted for the protection and
betterment of these vulnerable sections (including ST)

What was purpose of Xaxa Committee?

1. 2005: UPA had setup Sachar Committee to Muslim communitys socio-economiceducational status.
2. 2013: On the similar pattern, UPA-II setup Committee under Virginius Xaxa. He was a
member of NAC (National advisory council).
3. To study the socio-economic, health and educational status of tribals.
4. To suggest policy initiatives and interventions for tribal-upliftment.
5. 2014: Gave report.

Major recommendations of Xaxa Committee

Land acquisition: Problems found:
1. Government notifies rural areas as urban areas to keep them out of PESA coverage.
2. The PPP (Public private partnership) model, is simply a backdoor method of tribal land
alienation.
3. Government agencies acquire land for public purpose but later transfer it to private
companies at throwaway prices.
4. Government has signed such MoUs with companies, Government officials became
dealers and negotiators of tribal land. Neutrality of the State is forgotten.
5. In scheduled areas, tribals land cannot be transferred to non-tribals. YET Cabinet
Committee on Investment (CCI) sometimes hastens project-files which directly
/indirectly violate this provision.
6. Development projects lead to influx of outsiders to tribal areas, thus harm tribal interests
by money landing activities and pollution.
Land Acquisition: Suggestions given
1. Prevent all kinds of tribal land alienation
2. Gram Sabhas consent compulsory for any type of land acquisition. Even if the
government wants land for its own use.

3. If anyone obtains Gram Sabhas consent fraudulently = impose penalties and cancel such
projects.
4. Empower Gram sabhas to restore alienated land back to original owner, even while case
is pending in court. This will discourage non-tribal buyers from committing frauds.
5. Earlier Vijay Kelkal Committee suggested that unused Government land should be sold
off/leased off to get more money and reduce fiscal deficit. Xaxa asks Government to use
such land for tribal-resettlement.
6. Promote small sized water-harvesting structures instead for large dams.
7. Impose penalties on officials, if delayed implementation of Forest Rights Act or PESA.
Mining in tribal areas
1. After mines are exhausted, return the land back to original owner. Amend the CoalBearing Areas Act, 1957 to implement this.
2. In Andhra Pradesh, tribal-cooperative societies are can do mining activities. Other states
need to adopt same model.
3. In Scheduled Areas, only permit tribals to exploit mineral resources.
4. Future policy makers should learn lessons from Niyamagiri episode.
Linkage with Extremism
1.
2.
3.
4.

There is no legal basis for terming anything a Naxal offence.

Yet many tribals are arrested for protesting against developmental projects.
Thus, laws are used as tools of tribal oppression.
Appoint a judicial commission to investigate such naxal cases registered against tribals
and their (non-tribal) supporters.
5. Avoid making Salwa Judum like policies to combat left wing extremism.
Epilogue: Modi unlikely to implement any of this, because he wants to give rapid push to
highways, mining and industrial corridors, while Xaxa suggesting tough norms for land
acquisition. Nonetheless, provides sufficient fodder for Mains GS.
Appendix: Tribal insurgency
just some fodder points based on a book review in thehindu
Under British rule:

The British passed Forest Acts (1878, 1927) banned -shifting cultivation, foraging,
grazing and hunting in Indian jungles.
British kept the tribal areas under their direct administration through Governors and kept
their forest almost intact until they left India.

This negatively affected the livelihoods of tribes- leading to rebellions.

The British branded their protests as savage attacks, and usedextreme violence to
impose Colonial-civilisation on these savages.
Konds of Odisha- they spill blood to worship their deity under Meriah rite. But British
branded it as human sacrifice.

Under Free India:

Since 1980s, Central and Eastern India became the perfect guerrilla terrain for the
Naxalites.
This region is home to a large tribal population. The Maoist movement spread in these
tribal belts because they Promised to end their historical marginalisation; and managed to
build intimacy with local people, overriding differences of caste or tribe.
UPA Government took away nearly 1.2 lakh ht. of forest land and gave it to MNCs for
mining and power projects.
Tribal made to work in the most dangerous parts of mines and steel plants, for petty
wages. Thus, even the new civilised Indian are keeping them as primitive as possible.

Appendix 2: Constitutional & Legal protection

Constitutional protection to ST: List not exhaustive
Article How tribals protected?
15/4
State can make special provisions for advancement of SEBC, SC and ST.
As such citizen can freely move, reside and aquire property in any part of India. BUT
19/5
State can impose restrictions to protect the ST. Example- forbidding non-tribals from
purchasing land from tribal.
23
Human trafficking prohibited.
Linguistic minority has right to conserve its language and culture. Many ST
29
communities are also linguistic minorities.
Madhya Pradesh, Odisha, Chhattisgarh and JHK need to appoint a minister for tribal
164
welfare.
330, 332 Reservation for SC-ST in Lok Sabha and Vidhan Sabha.
334
Above reservation valid only for ten years.
335
Reservation for SC-ST in Government jobs.
338A
National commission for ST, appointed by President.
after 10 years from Constitution, President shall appoint a Commission to prepare
339/1
report on Scheduled areas and ST. So far two commissions setup UN Dhebar (1961)
and Dilip Singh Bhuria (2002)
Special provisions for 11 states. Including tribal-protection in Gujarat, Maharashtra,
371
NE etc.

Schedule How tribals protected?

5th
Tribal areas in nine states. Governors given special powers.
th
6
Autonomous district councils in AMTM = Assam, Tripura, Meghalaya and Mizoram

Legal protection to ST: Just brief overview

Law How tribals protected?
PESA or Panchayats (Extension to the Scheduled Areas) Act
State Government have to give certain political, administrative and financial powers
to local governments in tribal areas.
1996
50% seats reserved for tribals.
All chairpersons must be tribals (@gram, tehsil, district level bodies).

2006

Forest rights act

Tribals given land ownership, if they can prove they/their ancestors have been
tilling the land beyond x years.
Gram Sabha/ community rights over forest, forest produce, IPR on traditional
medicine etc.

Mock Questions for Mains

Answer following in 200 words each:
1. The problem of tribal land alienation and its linkages with extremism, can be best solved
with Implementation of Xaxa Committee report. Expand on the assertion made.
2. Discuss the Constitutional provisions for protection and development of Tribal areas in
India.
3. Mention any three tribal areas in India. Whatre the main components of Governments
tribal development program? (UPSC asked this in 1988.)
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
[Model Answers] World History Set#1: American, French & Industrial revolution by
Roman Saini
History3 weeks Ago32 Comments
For Indian History, I recommend
Spectrum- Rajiv Ahir

1.
2.
3.
4.
5.

Prologue
Q1. Fall of Bastille
Q2. American Revolution & Crony Capitalism
Q3. Industrial revolution
About the author

Prologue

Hey friends, this is Dr.Roman Saini (AIR-18, CSE-2013). Im undergoing Foundation

Course at LBSNAA, Mussoorie and having an awesome time -will share all the fun
details soon.
Since, mains is merely 50 days away, I thought of providing some model answers which
can act as a benchmark for your preparation and help you write better answer.
Since these are model answers, you (in fact myself included) will not be able to
replicate them in the examination hall due to paucity of time, extreme pressure and
inability to recall each and every tiny bit of information.
Therefore, the aim is to achieve 70-80% of the level of these answers and even if you
Miss 2-3 points here and there, it doesnt make a difference.
After all UPSC is a competitive examination- the only thing that matters is you should be
able to write and perform better than the most other candidates.
Anyway without further ado, here are the standard answers to 3 questions in world
history. I will be sharing more answers soon, as I find time from the hectic schedule at
LBSNAA.

Q1. Fall of Bastille

Q. The fall of Bastille was not just the fall of a fort but the beginning of French revolution.
Substantiate. (200 words)
Brainstorm points: Fort cum prison, loot arms, free prisoners; motivate masses; form militia
against Kings army; Municipality.
The Event:

Fall of bastille was not merely destruction of a building, rather it was an outlet to the
underlying deep resentment and hatred of people of France towards the existing order.
Bastille was fort-cum-prison. In 1789, the representatives of national assembly attacked
Bastille, gathered arms and ammunition and released political prisoners, who, later took
active part to propel the French revolution.

Major Outcomes:

1. Provided final thrust to the already excited masses. As the news spread, people gained
courage to stand up against the existing feudal order, attacked their Manors in different
parts of France.
2. To suppress the rebellion, King planned to gather troops in Paris. In retaliation, people
formed Militia which later turned into national guards.
3. Formation of national army under the command of national assembly (under
Lafayatte).This shifted the power from Louis XVI to the common men.
4. The upbeat national assembly gave many revolutionary proposals, including new
constitution that further diminished Kings authority.
5. As Paris became the epicentre of the movement and refuge of the masses, Municipal
Corporation of Paris was setup to provide new administrative structure.
Thus, Fall of Bastille proved to be the victory of the common people against the autocracy and
aristocracy. For the first time in the history of France, monarchy was under direct threat. All
these factors culminated into the birth of French revolution, leading to abomination of
aristocratic privileges and establishment of new social order based on Democratic principles.
Q2. American Revolution & Crony Capitalism
Q. Crony capitalism, mercantilism and welfare of mother nation on the expense of colony was
the main driving force behind the American Revolution. Elaborate with relevant incidents. (200
words)
Brainstorm points: Navigation law, war with France and huge debt, trade/exim-restrictions,
cant sell to France-Germany, Tea party, taxes without representation.
Ans. American Revolution was inspired by several socio-economic-political factors &
intellectual awareness of the masses, but the main factor was the economic exploitation of
American colonies by the British.
1. It all started with Navigation law (1651) that required American ships to compulsorily
sail towards Britain ports. Further developments worsened the already bad situation.
2. Though Britain won against France, but lost a hefty amount of money. To overcome the
huge debt, Grenville Policy came into picture. It imposed old restrictions such as
navigational law, and new taxes like Sugar, Stamp, and Quartering Act. Consequentially,
gave birth to revolutionaries like Sons and daughters of Liberty.
3. Trade Regulations- colonies could trade only with British. They could not sell their
products to German & French, who were ready to pay higher prices than the British.
4. Industrial Regulations- heavy industries could not be established in America.
5. Townshend Acts and EXIM Act gave Britain the complete monopoly over export-import
of certain products such as potato, tobacco, sugarcane.

6. Lord Norths Tea Policy: increased duty on tea trade, provided direct favoritism to
mercantilism, and led to the Boston Tea Party.
7. Rockingham Declaratory Act- gave British parliament all the rights to impose taxes on
American colonies. Americans wanted no taxation without representation.
These suppressive policies of British mercantilism backfired and united all the 13 American
colonies who shared the common thread of discrimination, suffering and resentment at the hand
of British Empire, thus culminating to the American Revolution.
Q3. Industrial revolution
Q. Do you agree that the biggest revolution in human history is Industrial Revolution? Why was
England the epicentre of Industrial Revolution? (300 words)
Brainstorm points: mass production, inventions, capital, transport-communication, cast-iron,
agro-commercialization; England epicentre because- Government, navy, raw material, colonies.
Ans. Industrial revolution was an epoch marking era of human history, a paradigm shift that
began in 1700s and continued in 1800s. It forever changed the way mankind operated. It was
marked by gigantic and path breaking technological innovations that completely transformed the
economic, social, cultural, political and industrial fields in following ways:
1. Mass production at an unprecedented scale: Huge private investments, large mass of
laborers coupled with spinning jenny, power loom & other ground-breaking inventions.
They gave tremendous boost to industrial production, particularly in textile sectors.
2. Communication and transport: Development of railway, macadamised roads, penny
posts, steam engine, steam boat (by Fulton), flying shuttle (boost to energy sector) led to
faster transportation of labour and goods making them cheaper and affordable.
3. Iron & steel industry was the essential driving force behind tools, ships and buildings
industry. The discovery of cheaper & easier method to produce cast iron, gave a new
Philip to all these sectors.
4. Commercialization of agriculture: Innovative agricultural methods like crop rotation;
manure pattern; disappearance of Serfdom, enclosure act reforms. They gave boost to
cotton, opium, indigo and other cash crops.
Gauging by the sheer number of changes it transpired, industrial revolution can be considered the
largest revolution in human history. It ushered new critical thinking, scientific temperament and
application of logic and reason in the society; lead to innovation in every field, transformed the
basic socio-politico-economic structure of society and thus changed the course human history.
England was epicentre of Industrial Revolution because:

1.
2.
3.
4.
5.

Stable political government backed by a mighty navy.

Abundance of Coal and iron- the crucial raw materials for industrialization.
Availability of investment from both private citizens and colonial exploits.
Colonies served as a source for raw materials and marketplace for manufactured goods.
Commercialization of agriculture through innovations, enclosure act, disappearance of
serfdom, access to huge market in colonies.

About the author

Roman has got 730/1750 in Mains, which is 4th highest written score in CSE 2013. You
can read his strategy in the earlier interview with Mrunal (click me).
For
doubts
on
CSE-preparation,
Visit
Romans
Facebook
page:
http://facebook.com/romansaini.official
How to go about preparation in general, how to write essay, how to read Hindu, Yojana,
how to retain information, how to write good answers or any specific topic in general?
Roman has uploaded video-tutorials at youtube.com/unacademy

For more articles on History, visit Mrunal.org/history.

[Rights Issue] Supreme Court Guidelines on Fake Encounters and Undertrial prisoners
polity4 weeks Ago21 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. P1: SC Guidelines- Fake encounters
1. Background
2. Supreme Court Guidelines 2014
3. Counter-view:
2. P2: SC Guidelines- Freeing the under trials:
1. Basics
2. CrPC Reform already done
3. Counterview
4. Suggest Long term reforms?
P1: Fake encounters / Extra Judicial killings

Topic in news: 2014, September, Week4

Relevance
1. (GSM2): Transparency and accountability.

2. (GSM3): Challenges to internal security.

3. (GSM4): fodder for ethics case studies. Youre a cop, there is criminal involved in
rape-murder, public outcry, seniors have pressured and ensured you that even if
you do fake-encounter, no action will be taken against you.
Background

In the mid90s, Mumbai Police killed more than 100 criminals in encounters, to help
Bollywood make cookie cutter movies about them on yearly basis.
An NGO named PUCL (Peoples Union for Civil Liberties) did not like it, so they went
to Highcourt in the late 90s.
Highcourt issued a few guidelines but NGO still unsatisfied, went to Supreme Court,
hiring Prashan Bhushan as their lawyer.
CJI R.M.Lodha appointed Amicus Curie Gopal Sankaranarayanan andfinally in 2014,
September:

Supreme Court Guidelines 2014

Supreme Court guidelines to prevent Fake encounters

1. Art. 21: Right to live with dignity, is applied to all
2. State had no right to take the law in its hands by way of extra-judicial killings. Fake
encounter is a state sponsored Terrorism.
3. Police cannot commit murder in name of encounter- not even at order of seniors and
politicians.
4. If Injured criminal found alive, he must be given full medical attention.
5. After any encounter, FIR must be lodged and Family members must be notified
immediately.
6. Policemen must surrender their weapons and ammunition for forensic analysis.
7. Dead criminals fingerprints must be preserved and matched with his weapons.
8. Dead criminals handwash test- to detect gunpowder. (to verify that he indeed fired
weapon).
9. Then CID or Police officer from another station must finish inquiry- including scientific
evidences, intelligence tip-offs, whether criminal was given medical aid after the shoot
out or notand so on.
10. Even after this inquiry, Magistrate can launch separate inquiry and must finish it within 3
months.
11. If family members are still dissatisfied with magisterial inquiry, they can approach
sessions judge.
12. Every 6 months, the state DGP (Director General of Police) must report list of encounters
to NHRC (National human rights commission) i.e. at January and July.
13. No Gallantry award or out-of-turn promotion to Policemen for doing encounters,
UNLESS their bravery is established beyond doubt.
14. Restructure police training, to infuse basic human values.
15. Devoted countries have strict guidelines for police officials on use of firearms. Court
ordered Government to imbibe such good practices in police manual.
16. Follow guidelines under Universal Declaration of Human rights (UDHR) to prevent
extra-legal killings.
17. Adopt Minnesota Protocol to investigate extra-legal killings.
18. Yes, Police has to deal with hardcore criminals, extremists, terrorists, drug peddlers,
smugglers and organised mafias but they must be brought to justice by following the rule
of law.
Counter-view:
We should downplay fake encounter because:
In Indian police- the expediency / firefighting is taking over the professionalism and ethics,
due to

Rising crime wave

o Systematic constrains- Police has to go through lengthy legal process involving arrest,
interrogation, charge sheet and court trial.
o 24/7 media scrutiny and therefore pressure from politicians to deliver instant-justice.
o

In such scenario, senior police officers order fake-encounters, to tone down public criticism.

Habitual offenders in violent crimes- sometimes theyve to be neutralised swiftly, to save

the society from further nuisance. Otherwise hell even get bail or run operations from
within the jail like many Bahubali dons do in Uttar Pradesh and Bihar.
Besides, a large number of policemen have also lost their lives in such encounters,
especially in the naxalite areas. Therefore, we need to take a balanced view of factors.
We do not be assured that even new guidelines- will put an end to police manipulation or
recklessness
For example- Sometimes ministers and senior bureaucrats dictate the magisterial
inquiries from behind the curtain. Such inquiry are therefore, just an eyewash.
We must implement full police reforms and make police posting-transfers outside
MLA/politician influence.
Good conduct cannot be engendered only through deterrence and punishment. We need
to cultivate a respect for human dignity in the society. After all, policemen are also part
of the society.

Mock Question (GS2): Transparency of action and accountability alone can check abuse of
police power. In this regard, discuss the recent guidelines of Supreme court meant to stop fake
encounters. 200 words.

Stupid
Encounters
Year 2013
Policemen
Civilians

Statistics

on

Injured Killed
~1200 ~50
>200
>100

Stupid statistics: complaints against police

Year 2013
No.
Complaints against police
>50,000
Out of them ___ fake complaints >25,000

Policemen dismissed from service ~550

Policemen given major punishment ~4000
P2: SC Guidelines: Freeing the under trials, CrPC 436-A
Topic
news

in

2014, September, Week3

Relevance

(GSM2): mechanisms, laws for the protection of vulnerable sections.

(Because most under-trials are poor, lower caste and minorities who cannot
afford bail bonds and good lawyers.)
(GSM4): fodder for ethics case studies.

Basics

Under-trial is a prisoner, accused of committing a crime, but yet to be convicted.

There are 2.5 lakh under-trial prisoners in India. They make up 70% of prison population
in India (as of 2013)
Reasons for high number of under-trials:
a. High number of arrests. Because sometimes police too employs spray and pray
tactic.
b. Trial goes on for years, conviction rate is dismal.
c. Poor accused cant pay bail bond or hire good lawyers.

CrPC Reform already done

Supreme Court Guidelines on undertrial prisoners

2005: CrPC amended with New section 436A. Under-trial person must be released, IF he
has spent 50% of the period of their sentence, if he was convicted.
But still, CrPC provisions are not fully implemented.
Therefore, SC ordered following (in 2014, September)
o Free all the undertrials IF theyve spent half the sentence, except cases where
highest penalty is death.
o Ordered the judicial officers to begin survey of under-trials in jails- from October
1st, 2014, and file report to their respective high courts.
o Then Judge can free the under-trial on his personal bond with or without sureties.
o Ordered Union government to prepare a fast-track road map for entire criminal
justice system.

Counterview
Not many under trials will benefit from this SC-judgment. Because:

as per National crime records, ~40% of under trials have spent ~3 months in jail.
o And most of them are booked for cases that have sentence of 2 years or more. So they are
not yet eligible for the 50% time spent rule.
o ~22% of under-trials are booked for murder cases. In Murder cases, highest penalty is
death sentence, so, theyre not eligible for Rajiv Gandhi Jail khaali kardo yojnaa.
o

Suggest Long term reforms?

If Police doesnt file chargesheet in 90 days of arrest, the person should be released.
Majority of the undertrials are illiterate, lower castes and minorities- who cannot afford
bailbonds or good lawyers. While theyre given free-legal-aid but it is insufficient.
There should be a dedicated centrally sponsored scheme and cadre of lawyers to fight
their cases.

Profile of Under-trial prisoners in India

Educationwise % % Caste/religionwise %
illiterate
30% Muslims
21%
Studied upto class10 43% SC
22%
ST
13%

Need to Increase no. of judicial officers in lower courts.

Computerization of judicial records. In Jammu and Kashmir floods destroyed all paper
records, now theyll have to rework entire database again. Had they saved everything
online- preferably on a secured cloud network spread across India or world, problem
would not have occurred.

Mock Question (GS2): High proportion of undertrials is a reflection of the pathological failure
of the criminal justice system. In this regard, list the recent directive by Supreme court of India
and suggest long term reforms, if any. 200 words.
Timeline of Events: Under-trials
1973 Criminal Procedure Code, 1973 (CrPC) was enacted.
CrPC amended. New section 436A, requires that Undertrial person must be released, IF
2005
he has spent 50% of the period of their sentence (if he was convicted.)
2013 2.5 lakh undertrials in India. They form ~70% of jail population.
2014,
SC orders new guideline to free the under-trials.
Sep
2014, Judicial officers began survey of the prisoners, to assess the number of under-trials

Oct

eligible under Supreme court guideline.

Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.

Tags: Rajtanil, Rights-Issues
[Public Health] NPPA, Drug Price control, Sravan Implant, Cigarette packing rules update
Public Health4 weeks Ago30 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. NPPA: National Pharmaceutical Pricing Authority
1. Drug pricing controversy
2. Scene 1: NPPA price controls begins (Dec 2013)
3. Scene 2: NPPA tries to go beyond its mandate
4. Scene 3: NPPA humiliated*
5. Behind the curtains
3. Sravan implant
4. Cigar-Labelling
Prologue
Current affairs related to public health, during September Week1 to October Week3.

Part1: Mother, Children, Hunger, Nutrition related.

Part2: Policy / Mission: Mental health, Ayush
Part3: Selling related: NPPA, Sravan implant, Cigar labelling. Youre here.

NPPA: National Pharmaceutical Pricing Authority

Topic in News Sept. 2014
(GSM2) Statutory, regulatory and various quasi-judicial bodies
Relevance
Q.Write a short note on National Pharmaceutical Pricing Authority(NPPA). 100 words.

NPPA is an Attached office under Department of Chemical and petrochemical, under

Ministry of chemicals, fertilisers and pharmaceuticals. (and not under health
Department)

Motto: Affordable medicine for all.

Functions

Under Essential commodities Act (ECA), Government had issued Drug price control
order.
NPPA enforce this Drug price control order.
It monitors drugs production, availability, import-export database
Tries to prevent shortage of drugs.
Advices Government on drug policy.
Doesnt deal with drug licensing or clinical trials. Those functions are under Drugs
control general of India (DGCI) under health ministry.

Drug pricing controversy

Gist of NPPA Drug price control controversy

Relevance: (GSM3) issues relating to intellectual property rights.
Scene 1: NPPA price controls begins (Dec 2013)

Government passes drug price control order. (DPCO)

Earlier a Committee had prepared the National list of essential medicines (NLEM) with
total 348 drugs. NPPA begins controlling their price.

Drug pricing formula

Take MRP of all companies having >1% market share.

Take average of those MRPs.
No company can sell drug at price above that ceiling.

But Mind it: This formula applies only to those 348 drugs.
Scene 2: NPPA tries to go beyond its mandate

2014, May month: NPPA issued new price control order on ~108 non-scheduled
medicines, dealing with heart, diabetes, TB and cancer.

Arguments from both sides:

NPPA says
Pharma companies say
Yes, those drugs are not in the NLEM list, but under Drug Those 108 drugs are not in
price control order (DPCO-2013) paragraph 19, Ive the NLEM, and there is no shortage.
powers to control prices of drugs outside NLEM-list during Therefore, youve no authority to
shortage, emergency and extraordinary circumstances.
control their prices.

Matter goes to Delhi Highcourt. Taarikh pe TaarikhFast forward to:

Scene 3: NPPA humiliated*

*Just like Indian cricket team in every second or third match.

2014, September: Government revokes that paragraph 19 from Drug price control order.
Therefore, NPPA automatically lost power to control prices of those 108 drugs which are
not in the NLEM-list. (National list of essential medicine).

Consequence of Government decision

Drug
Price Before After Sep14
Glivec (Novartis) 8500
1 lakh
Veenat (NATCO) 8500
11,500
Plavix
147
1,615
But NPPA is not sitting idle.

NPPA began updating the NLEM list on Government advice. (in other words, theyll try
to add those 108 drugs within NLEM, and thus get automatic power to control their
prices as well.)
Last time, NPPA updated the list 8 years ago, but it came into effect 4 years ago. So it
remains to be seen how long it takes this time.

Obviously, pharma companies dont like this. Hence more court cases ahead, topic to
remain in news forever to harass UPSC aspirants and B.Pharma grads. in job and MBA
interviews.

Behind the curtains

Scene1: USA has put India under priority watch list in the Special 301 report
because of the unfavorable IPR regime. Pharma MNCs always criticize India for
unfavorable patent and pricing rules.
Scene2: Government removed price control (to benefit those pharma MNCs) just before
Modi visited USA in September 2014.
Scene3: USA began out of turn review of India under special 301 report in October
2014.

If you connect the dots: Modi revoked drug control to get India out of the watchlist in special
301 report. Consequences?

Drugs will get expensive

Pharma MNCs may increase investment and thereby jobs in India.

Although it doesnt mean Pharma MNCs only operate to rob and loot everyone on 24/7 basis. In
2014, September. Gilead (US co.) signed agreement with 7 Indian pharma companies, permitting
them mfg. and sell Hepatitis C drug (Sofosbuvir/Sovaldi) at an affordable price in India.
Sravan implant
Topic in News Sep.W3, 2014
(GSM3) Indigenization of technology
Relevance
Q. Write a note on Sravan Implant. 100 words

Sravan cochlear implant

10 lakh Indians suffering from hearing loss. 10,000 newborn with same problem.
Cochlear implant / bionic ear: It gives hearing perception to such patients.
Problem? Imported device costs nearly 8 lakh rupees.
Solution? DRDO, Armed forces medical college and other Indian labs have produced a
cheap device named Sravan Implant.
It has two units (1) Cochlear implant (2) speech processor.
Costing ~1-1.5 lakh rupees = cheapest in the world but without compromising quality.
It is not for sale yet. Theyve filed clinical trial application to DGCI (Drug controller
general of India).

Cigar-Labelling
Topic in News October W3, 2014
Essay fodder / Interview.
Relevance

India had signed and ratified WHO Framework Convention on Tobacco Control
But so far has not complied with the minimum rules.

why India sucks on WHO parameters?

Other countries
India
Cigar packs need to display pictorial warning on both sides of Only 1 side. Covering only 20%
the pack
area

Recent report even says India sucks the most among SAARC nations in packagewarning.

Consequences: social cost of tobacco use= Rs.~1.5 lakh crores in cancer and death
(2011)
Solution: Finally Government woke up and amended the Tobacco products packaging
rules. (in Oct 2014)

W.E.F. from 1st April 2015:

Every cigarette packet will carry the statutory warning on both sides, covering total 80%
area.
with photo of throat cancer (60% space)
With message in English, Hindi or any Indian language. (25% space)
Benefit? Customer most likely to notice those gory images and give up smoking sooner
or later.

Criticism
1. Most rural men use bidis, they dont contain such labels.
2. Most urban youth too cheap to buy entire packet. They only buy 1-2 cigarates loose from
the vendor. Hence unlikely to see the gory images
3. Ban on smoking in public places, is not strictly enforced.
Tags: shivaram
[Entry of Europeans] Thuggee in British India, Whistleblower Maharaja Nandakumar,
Tipu Sultan
History1 month Ago24 Comments
For Indian History, I recommend
Spectrum- Rajiv Ahir
1.
2.
3.
4.

Prologue
Thuggee in British India
Maharaja Nandakumar: 1st Whistleblower of India?
Tipu Sultan and his Ring vs. East India Company

Prologue

Im in process of restructuring new and old articles to make site more revision friendly.
You can see the entire Archive at Mrunal.org/history

In this page, Im combining topics of Entry of Europeans and upto 1857 Mutiny.
For background theory, refer to Class11 Tamilnadu historybook from download section.

Anyways, three topics in (Hindu) news, from that Entry of Europeans section:

Sep 2014: Thuggee in British India

Sep 2014: Maharaja Nandkumar
May 2014: Tipu Sultan and his ring.

Thuggee in British India

Relevance:

UPSCs fondness for asking random GK type Qs once in a while- e.g. was Hiuen Tsang
robbed or not?
Oneliner fodder for the essay: India has benefitted from Colonialism (because thuggy
was abolished) and even its counterargument because thugs joined that profession due
to heavy debt / jobloss under British raj.

Famous persons vs Thugs

Bandits attacked his caravan near Ganges. Wanted to sacrifice him to their
Hiuen Tsang
goddess. (7th Cent)
Jalaluddin
Expelled ~1000 thugs from Delhi (1920)
Khilji
Kabir
Used thugs as metaphors to show Gods deceit.
Nanak
His Janamsakhi texts also mention thuggary.
Augrangzeb
Ordered execution of Phansigar.
Who were these thugs?

Roamed on highways. Trapped victims with drug-laced laddu, looted their belongings
and murdered.
Main targets: Company sepoys, merchants and pilgrims.
Looted horses and weapons given to local rulers for protection, and even bribed the
city officials.
Even used the loot, to repay their agriculture debt to Zamindars!
Thugs came From all strata of society. They were not limited to a single caste or religion.
Many of them were sepoys in Mughal army, who lost jobs under British Empire.
Thuggee was a seasonal occupation. They left the village after the autumn harvest
(Oct-Nov) and returned June-July before the rains.

How did the British wiped out thuggee in India?

East India Company passed a regulation. If Zamindar did not inform the company about
1810
thug activities, hed be punished.
1930 Government authorised Captain Sleeman to wipe out thugs.
1839 Captain Sleeman succeeded but jailing and hanging most of the thugs.
Ref: September 2014, TheHindu review of a book Thuggee: Banditry and the British in Early
Nineteenth-Century India: Kim A. Wagner.

Maharaja Nandakumar: 1st Whistleblower of British India?

He was a revenue officer under the Nawab of Bengal

Helped British during Battle of Plassey (1757),

Year 1775
Nandakumar
Hasting

Made allegations that Governor General Hastings accepted bribes from Nawab and
others.
No, Nandakumar himself paying bribes to others, to malign my image!

Later, company officials arrange a puppet Indian to file a forgery case against
Nandakumar.
During that era, Indian vs. Indian cases were not to be heard by British judges.
But still a British judge presided over Nandakumar forgery case and awarded death
sentence. (Curiously that judge was a close friend of Hastings)
Maharaja Nandakumar was hanged in full public view at the Hoogly river banks near
Kolkata.
Edmund Burke, Lord Macaulay and other eminent British described Nandakumars
hanging as a judicial murder.

Moral of the story: unless there is a whistleblower protection act, you shouldnt take on
your boss.
Why in news: His turban will be displayed in Kolkatas Victorias hall. (September
2014)

Tipu Sultan vs. East India Company

Father: Haidar Ali

Tipu Named after Sufi Saint Tipu Sultan Auliya. Nickname Tiger of Mysore.
Kingdom: Mysore, Karnataka
Capital: Shri Rangapatnnam.
Tipu was a Muslim, but THEHINDU (May 13, 2014) claims he was Catholic in his
religious outlook!

Tipu buildings:

Summer palace at Bangalore

Tipu did not build the Sri Rangpatnam. It was built by a Feudal lord in 16th century

Tipu Military prowess

Wrote a military manual: Fathul Mujhahidin

Manufactured rockets, artillery and firearms.

Anglo Mysore Wars

Year Outcome
1767 Haidar Ali defeated British
Maratha, Nizam and Haider formed tripartite alliance to protect French at Mahe
against the British
But Maratha (Bhosle & Scindia) and Nizam made peace with British & left fight.
1780
Hairdar died, Tipu carried the fight & defeated the British =>Treaty of Manglore
1784. It restored status quo.

1790

Governor General Cornwallis made alliance with Marathas and Nizam, finally
defeated Tipu
Treaty of Shri Rangpatanam, where Tipu gave 50% of his territory, 3 crore rupees
and 2 sons to Lord Cornwallis as hostages (to ensure 3 crores were paid in regular
installments.)

1799

Tipu tried to set alliance with Arab, Turks and Afghans to defeat the British but
failed.
To create alliance with the French, Tipu setup a Jacobian club of republican ideas.
Napoleon was pleased & sent a friendly letter, later a few soldiers came to aid Tipu
in fourth war.
Wellesley asked Tipu to join subsidiary alliance, but he declined. This led to fourth
Anglo Mysore war, Tipu died defeating Fort Sri Rangapattinam.

Arthur Wellesley (Lord Wellesleys brother) took away Tipus ring, made of gold, has
written Ram in Hindi.
Later, the British deported Tipus family to Calcutta, distributed part of the territory to
Nizam, & setup a 5 year old puppet king Manmohan Singh Krishnaraja III @Mysore, and
signed subsidiary alliance with him.

Auction of Tipus ring and swords

2003 Vijay Mallya purchased Tipus sword from a London auction for ~1.5 crore rupees
2014 An unknown bidder purchased Tipus ring from a London auction for ~1.4 crore rupees.

Mock Questions
Q1. As per the Treaty of Srirangapattinam
A.
B.
C.
D.

Tipu Sultan had to give up part of his territory Nizam, Marathas and East India company
Tipu Sultan had to give his two sons as hostages to Hastings
Both A and B
Neither A nor B

Q2. What of the following steps were taken by Lord Cornwallis?

1. Tripartite alliance with Nizam and Marathas to fight against the French
2. Gave judicial powers to district collectors.

3. Removed all Indians from judicial positions

Correct statements are:
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q3. Lord Wellesley __.

1. Adopted non-interventionist policy in India.
2. Was confident that Napoleon will not intervene in India to aid Tipu Sultan.
3. Played major role in creation of Agra Province and Madras presidency
Incorrect statements are:
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Correct Answers for above MCQs:

1. D both wrong. Alliance made to fight against Mysore and Tipu gave sons to Cornwallis.
2. D- none of them. Read Tamilnadu class12 Chapter 2 on Cornwallis.
3. A-1 and 2 incorrect. Mind it, youve to find wrong statements in this question. Read
Tamilnadu class12 chapter3 on Wellesley.
Mains/interview
1. (Interview) Whenever there is auction of items related to Tipu, Gandhi & other
prominent historic figures, some Indians demand that government of India should bring
back those items. But there is no dearth of such collectible items. Can you think of
arguments both in favor and against this demand?
2. (interview) From British point of view, which Governor General or Viceroy can be
considered THE MOST Effective administrator of India, and why?
[Public Health] National Health Policy 2014- Salient Features & National AYUSH Mission
(NAM)
Public Health4 weeks Ago8 Comments

For ACIO & Insurance AO

Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. National Mental Health Policy 2014
3. National AYUSH mission (NAM)
Prologue
Current affairs related to public health, during September Week1 to October Week3.

Part1: Mother, Children, Hunger, Nutrition related.

Part2: Policy / Mission: Mental health, Ayush. Youre here.
Part3: Selling related: NPPA, Sravan, Cigar labelling.

National Mental Health Policy 2014

Topic in news Oct W2, 2014.
(GSM2) Services relating to Health.
Relevance
Q. Examine the need for a national mental health policy and list the salient features of the
new mental health policy 2014. 200 words.
Why need a new policy?

During British-raj: Acts for Lunacy and Asylum. But they only dealt with custody
while ignoring human rights of such patients.
Late 80s: Government enacted Mental Health Act, but many deficiencies, hence not
implemented.
Hardly 3500 psychiatrists in country.
Indian society still stigmatises patients with even curable psychiatric diseases. Therefore,
relatives delay or deny the treatment.
WHO predicts: by 2020, 20% of Indias population would suffer from some form of
mental illness. (and the number likely rise further if Bollywood continues mindless
remakes of South Indian movies and reality shows like Big Boss.)

Salient features of National Mental Health Policy 2014

Salient Features of National Mental Health Policy 2014

Affordable Access

There is bi-directional relationship of mental illness and poverty.

Therefore, policy will have pro-Poor focus besides creamy layer families can afford
mental healthcare.
Caregivers of mentally-ill patients, will be given financial support.

Manpower

At district hospitals, new cadre of Government employees called mental healthcare

providers.
Auxiliary midwives will be given training for mental healthcare.
New masters and diploma courses, to increase paramedics in mental healthcare.

Buildings

Government will give fund to modernize existing hospitals, open mental healthcare wards
in them.
Each state will have a center of excellence on the lines of National Institute of Mental
Health and Neuro Sciences (NIMHANS), Bangalore
Will setup Small mental health centres within communities
Will reform mental hospitals to ensure dignity and human rights of women, children and
old people.

Execution

Mental healthcare bill in 6 months.

Mental Health Action Plan 365 with specific roles for the Centre, States, local bodies and
civil society.
Programs to combat drug abuse and alcoholism.
Universal Health Assurance Mission (UHAM) will include mental illnesses.

De-stigmatization

Attempted suicides will be decriminalized.

October 10 to be observed as National Mental Health Day.
Awareness campaigns
o To remove stigma associated with mental illness.
o To highlight the symptoms and remedies of depression, schizophrenia, bipolar
syndrome.

National AYUSH mission (NAM)

Topic in news SepW3, 2014.
(GSM2) Departments of the Government; Services relating to Health
Relevance
Ayush Department

1995: Government created a separate Department for Indian system of medicines.

2003: renamed it into AYUSH Ayurveda, Yoga and Naturopathy, Unani, Siddha and
Homoeopathy
Latest addition: Sowa rigpa / Amchi. It is the traditional medicine system in Himachal
and Ladakh.
Ayush Department promotes education, awareness, research and quality control of these
systems.

National Ayush Mission (NAM) 2014

Approved with following features:

Increase in number of AYUSH:

o Education institutions and manpower
o Hospitals, pharmacies, labs, dispensaries
o Raw material and drugs

Penetrate AYUSH more in the far flung areas.

Benefits of AYUSH: cheap, flexible, less side effects, accepted by large public.
Tags: shivaram
Public Health] Global Hunger report, Hidden Hunger, National Nutrition Mission,
Newborn action plan,
Public Health4 weeks Ago31 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.
8.

Prologue
Global hunger report, Child malnutrition
What is Hidden hunger?
India Newborn Action Plan (INAP)
National Nutrition Mission
Fixing RBSK and WIFS
Expert group on PNDT
Tribal health problems

Prologue
Current affairs related to public health, during September Week1 to October Week3.

Part1: Mother, Children, Hunger, Nutrition related. Youre here

Part2: Policy / Mission: Mental health, Ayush.
Part3: Selling related: NPPA, Sravan, Cigar labelling.

Relevance in Mains GS2 syllabus:

Issues relating to poverty and hunger

Issues relating to development and management of Social Sector/Services relating to

Health, Education, Human Resources.

Global hunger report, Child malnutrition

What? global hunger index released
by the International Food Policy Research Institute (IFPRI), the global think tank on food
Who?
security.
When October W2, 2014.

Global Hunger report, India & Hidden Hunger

Indias ranking
2013 63rd
55th out of 76 countries
2014
Ahead of Bangladesh and Pak

Behind Nepal and Sri Lanka

Global Hunger report uses 3 parameters (equal weight)

Parameter
India
2005: ~45% of total children
Underweight children
2013: ~31% (meaning reduced)

Undernourished people

Child mortality under 5

2004-06: ~22%
2011-13: 17% (also reduced)
2005: ~8%
2014: ~6% (meaning this also reduced)

Indias progress
1. No. of underweight/ malnourished have declined. Mainly due to MNREGA, NRHM,
ICDS and other schemes.
2. This happened because fast growing economies increase investment in social sector
programs. Similar phenomenon seen in Brazil and China.
Does it mean everything is hunky dory?
1. In comparison to India, other countries on similar GDP/growth rate have pulled out more
people from Hunger- example Venezuela, Mexico, Cuba, Ghana, Thailand and Vietnam
all achieving more than 55% increase in their GHI score.
2. The report took dataset from a UNICEF report which took data from a health ministry
survey.
3. This thinktank hasnt done separate survey of its own for crosschecking (Whether
malnutrition in India is indeed reduced or not?)
4. Other survey results conducted earlier show differing numbers. The current report
numbers cannot be taken as the final number.
5. Moreover, state-wise differences are not yet known.
6. Highest no. of under5 underweight children live in India.
7. 70% of Indian children are anemic.
8. Hidden hunger still continues.
What is Hidden hunger?

If Government give free/ subsidized wheat and rice then hunger will be eliminated only
from energy / carbohydrates angles.
But Deficiency in micronutrients and vitamins will continue. This is hidden hunger.
Every third person in world suffers from Hidden hunger. (total 2 billion)

Why hidden hunger?

During adolescence, pregnancy- higher amount of micronutrient needed but people lack
the money / awareness to change died habits accordingly.
Solutions: iodized salt, fortified flour, bio-fortification of crops, PDS reform, Education.

Hidden Hunger in India (as per Global hunger

report)
Iodine deficiency
25%
Anemia among pregnant women
54%
Anemia among children under 5
59%
Vit.A deficiency
62%
(GS2) Mock Question: What is Hidden Hunger? List the initiatives taken by Government to
tackle Hidden hunger and suggest further reforms, if any. 200 words.
India Newborn Action Plan (INAP)
We already saw the IMR, MMR and MDG related statistics under Ch.13 of Economic survey.
So, lets check some new initiatives in this regard:
India Newborn Action Plan (INAP)
When? 2014, September W3
Who? Health ministry
7 lakh newborn die each year in India.
Why
At present, Infant mortality rate: 29 deaths per 1000
What?

How?

Target: reduce IMR to a single digit by 2030. (i.e. 9 deaths or less).

Will implement this via existing Reproductive, Maternal Child Health and
Adolescent Plus (RMCHA+) framework
With 6 strategies

6 strategies of INAP
4. care of healthy newborns
1. preconception and antenatal care
2. care during labour and child birth
3. immediate newborn care

5. care of small and sick newborns

6. care beyond newborn survival.

Will also take Help from ASHA workers, Indian academy of pediatricians, NGOs and
philanthropists like Bill Gates.
(GS2) Mock Question: Discuss the salient features of Newborn Action Plan. 100 words.
National Nutrition Mission
When?
Who?

2014, January
Health ministry
To reduce malnutrition among women and children under age of 3Target: 200 high
Why
burden district
Criticism One component not yet implemented: reducing Anaemia among adolescent girls.
Training Anganwadi workersNutrition councils at District level
How?

ICT for monitoring progress: Anganwadi workers to collect child data using tablet /
mobile.

Fixing RBSK and WIFS

RBSK

WIFS
Rashtriya Bal Swasthya Karyakram
New-borns to 18-year-olds are screened for
4Ds birth defects, diseases, deficiencies,
development delays and disabilities
Testing done via schools and Anganwadi
centres

Weekly
Iron
Folic
acid
Supplementation
To reduce anemia among girls by
giving Iron folic acid (IFA) tablets
on weekly basis.

So whats the problem?

No. of children covered under these schemes are less than the no. of children under Midday meal enrollment.
Meaning, lot of kids yet to benefit from these two schemes.

Therefore, HRD ministry asked all States and UTs for effective convergence among RBSK and
the WIFS with the three main school education programmes viz
1. Sarva Shiksha Abhiyan (SSA)
2. Mid Day Meal (MDM)
3. Rashtriya Madhyamik Shiksha Abhiyan (RMSA)
Other Reforms taken to prevent Maternal and Child deaths

International

Childbirth

Building
ASHA

June 2014: WHO, UNICEF and partners joined hands to end newborn and
stillbirth deaths by 2035.
Countries have to set newborn action plans- to provide quality care to
children.
Government gives conditional cash transfer to pregnant woman, ONLY IF
undergoes regular checkups, diet and medicines. Free transport to healthcare
centres.
Promoting family planning through ASHA workers.
14000 newborn care centres. Roughly 3 to 4 per district.
For extreme medical cases- ~550 special newborn care units.

Worker makes home visit and educate new mothers on breastfeeding benefits,
sanitation etc.

Expert group on PNDT

Who? Health Ministry
Minister has setup an Expert group
to examine new methods used for sex determination (so that PNDT act can be
What?
amended to ban those new techniques.)
PNDT= Pre Conception and Pre Natal Diagnostic Techniques Act, 1994.

But why do we need to review PNDT act?

Census child sex ratio
1971 964/1000
2011 918/1000

PNDT was made in 1994, ~20 years have passed but child sex ratio is not improved.

PNDT prohibits the use of ultra-sound machines for sex-determination.

Nowadays, Doctors using new methods under the guise of genetic disorder testing to
bypass the law.
Hence the need to find out those new techniques and update PNDT act to prohibit them.

More points:
1. SC in Sept,2014 ordered better implementation of the act.
2. 100 district of GJ, MH, HN and PN (low sex ratio states) have been selected for beti
bachao beti padhao abhiyan.
3. PNDT empowers State and district committees to book the offenders. MPs should be
involved in to keep check such Committees.
Tribal health problems
Generic and never ending topic. Following points/fodder based on one Hindu editorial.
Tribal lag behind in all nation averages on health, literacy, education and income.
Tribal women
Tribal children
Anemia, high level of mortality and Under 5 mortality among Tribals, is higher than other
morbidity
communities.
80% tribal women under-weight
>50%
Other issues
1. Starvation deaths still reported in tribal aeras
2. The chronic diseases such as hypertension and diabetes- rising among tribal.
3. High prevalence of malaria, TB, diarrhea
But why all these problems?
1. Most tribals defecates in the open => lack of sanitation =>diarrhea and gastrointestinal
problems.
2. 33% of tribals dont get clean drinking water.
3. Illiteracy and lack of health education
4. Government setup Primary Health Centres (PHCs) in tribal areas but staff vacant due to
naxal problem.
5. Drugs, transport, electricity, communication infrastructure is lacking.

6. Displacement during mining projects. Most tribal groups are traditionally huntergatherers. They are not accustomed to agriculture. Combine this with Illiteracy =>poverty
=> Dependence on PDS for survival=> hidden hunger=>less immunity from diseases.
Whatre the Solutions?
1. Tribals rely on Traditional healers. So they should be trained to dispense ORS for
diarrhea and anti-malarial pills and send patients to the PHC in a timely manner.
2. Tribal youth trained as community health workers or nurses. This will create incentive for
them to stay work in their own communities- rather than migrating to cities in search of
petty labour work.
3. A successful example is the Adivasi hospital in the Nilgiris, where the management and
most staff (except the doctors) are tribal.
4. Offer more diverse range of food items in PDS with macro and micronutrients to tackle
the hidden hunger.
5. Infrastructure for housing, clean water, toilets, electricity, road and communication.
6. Further research on herbal medicines, promote Ayush.
Tags: shivaram
[Space-Tech] P1/3: (IRNSS) Indian Regional Navigation Satellite System- Desi GPS for
Drunk drivers
Space-Tech1 month Ago69 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.
8.

What is IRNSS?
7 Satellites of IRNSS
IRNSS-C launch
Benefits of IRNSS Desi-GPS system?
Why waste money building Desi GPS?
GAGAN
Appendix1: IRNSS-Scientific principle
Appendix 2: Russian GLONASS

What is IRNSS?

Indian Regional Navigation Satellite System (IRNSS).

2006: Government approved project with ~Rs.1500 crores.

American Global positioning system has 24 orbiting satellites, a global network of

ground stations. Thus GPS covers every part of the world.
But, given this small budget, it is beyond ISROs aukaat to maintain 24 satellites to cover
entire globe,
Therefore, our Desi GPS will use just seven satellites, and try to cover India + 1,500 km
beyond its borders.
HQ: ISRO Navigation Centre at Byalalu, near Bangalore. Itll control this system.

7 Satellites of IRNSS
These three of the satellites will be placed over the equator, in the
geostationary orbit.
3 satellites
they match the Earths rotation and therefore appear from the ground to

remain at a fixed position in the sky.

+4
satellites

will be in pairs in two inclined geosynchronous orbits.

From the ground, these satellites will appear to travel in figures of 8 during
the course of a day.

All seven IRNSS satellites will be at a height of about 36,000 km, taking a whole day to
circle the Earth.
In future, we can add more satellites to increase coverage surrounding India. and with
God willing, one day 25-30 satellites to cover entire earth, just like American-GPS.

So far 3 out 7 satellites launched

IRNSS-A
IRNSS-B
IRNSS-C
When
Jul. 2013
April 2014
Oct. 2014
Where
Satish Dawan Space Centre in Sriharikota, Andhra
Using PSLV* C22
C24
C26
*PSLV: Polar Satellite Launch vehicle.
IRNSS-C launch
(Mains-GS3) Q.Write a shortnote on the importance of IRNSS-C satellite launch 100
words.
WHEN? October 2014. Hence the need for publishing this stupid article.
WHERE? Satish Dawan Space Centre in Sriharikota.
HOW? using Polar Satellite Launch Vehicle (PSLV C26)
Carried two payloads
A: Device to send navigation signal to users
What?
B: C-band transponders to help in laser ranging. (to help Military / artillery
range estimation)

In next two years, remaining satellites will be launch, and Desi-GPS system will become
operational.
Benefits of IRNSS Desi-GPS system?
(Mains-GS3) Discuss the benefits of IRNSS system 200 words.

IRNSS will offer two services:

Two
services

Standard Positioning Service: that will be accessible to anyone

Restricted Service: Will be available only to the military and other
government-authorized users.

American GPS: 15 metersOur IRNSS: 20 meters.

The standard GPS receiver (in your smartphones and tablets) will not work
with IRNSS.
Equipment
Youll need a special receiver equipment to use navigation data from
Accuracy

Will serve both civil and military users.

Will provide time-location coordinates on land, sea and air.
Cell phone apps- for mapping, driving, hiking in jungle and remote areas. And if you use
it with Idea-internet then rickshaw-walla cant make you ullu.
Forest department: Putting out wildfire, tracking endangered animals.
Fleet Management e.g. taxi or truck company can monitor whether their driver is on right
path or not.
Disaster Management.
During war: naval fleet Management, missile navigation etc.

Why waste money building Desi GPS?

Interview question: Why should Indian Government waste money on IRNSS? Why not
simply use American GPS at a fraction of that cost?

At present only three countries have fully functional global navigation systems. (EUs Galileo
system yet to become fully operational)
USA GPS
Russia GLONASS (more under appendix)
China Beidou

To deploy a global navigation system, you need to setup lots of satellites hovering around
the world, so they can scan and sent pinpoint location of anywhere to anywhere.
During the Iraq war, the Americans sent wrong GPS signals to the Iraqi jets and missiles,
therefore Iraqis could not attack Americans forces in a precise manner.
Moral of the story = Dont rely on other peoples navigation system.
For the short term, We (India) have designed our missiles and fighter jets to can use both
GPS (American) and GLONASS (Russian) signals for navigation.
o So if we want to attack America or its ally Pakistan, we can rely on GLONASS
o And if we want to attack Russia or its ally China, we can rely on American GPS.
But for long term, we will need our own Desi-GPS system.

Same reason why we need Anti-satellite missiles, to shoot down videsi-GPS systems
during war.

GAGAN
(Mains-GS3) Write a short note on GAGAN system. 100 words

Global Positioning System Aided Geo Augmented Navigation System (GAGAN) for
civil aviation purposes.
GPS aided geo augmented navigation (gagan)
It is a joint effort by the ISRO and the Airports Authority Of India (AAI).
Its main use is to help Air traffic control and helps pilots fly / land aircrafts in bad
weather.
But as the name suggests GPS aided meaning it is not a separate independent
navigation system.
It depends on GPS (American navigation system). Therefore we need IRNSS for long
term solution.

Appendix1: IRNSS-Scientific principle

Since IRNSS project will still take two years to complete= Topic remains important for scientific
principle MCQs in CSAT prelim 2015, 2016 and even 2017 (because even in 2017, Hindu will
keep doing mahimaa-gaan every once in a while). So, lets finish the scientific principle once
and for all.
Microwaves: how they help in GPSing?

IRNSS satellites use two microwave frequency bands: L5 and S.

These microwaves travel at speed of light.
Your receiver (the GPS-like gadget) will calculate the delay between microwaves
transmission and its reception = thus you get coordinates on earth.

Atomic Clocks

For above microwave-calculation, Navigation satellites have to periodically transmit their

precise position in orbit with exact time.
For this, we cant fit Timex or Sonata watches in the satellite. They need to carry
extremely accurate clocks with long shelf-life.
Therefore, Each IRNSS satellite is equipped with rubidium atomic clocks, to keep
precise time.

Appendix2: Russian GLONASS

This is an old topic from 2012. Dead horse resurrects because of IRSNSS.
MCQs relevance: similarities and differences between American GPS, GLONASS and IRNSS.

Glonass is Russias Global Navigation Satellite System.

It provides location and time information anywhere in the planet.
Glonass is an alternative to the U.S.-controlled Global Positioning System (GPS).
2012: Mohan-Putin signed agreement for use of GLONASS.
GLONASS navigation system will allow Indian missiles, to strike within half a metre of
distant targets= very accurate.
GLONASS is fitted on Nuclear submarine Chakra= killer combo.

iPhone 4S mobile supports both GPS and GLONASS.

You can use it to know distance covered during jogging etc.
Finding shortest possible route during travel

Keep track of your school-buses, transport trucks etc.

Civilian use

Commercial use

Tags: shivaram, space-tech

[Space-Tech] P2/3: NISAR 2020, GSLV-MK-3, GSAT-16 and LAM
Space-Tech1 month Ago28 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.

Prologue
NISAR Mission 2020: to measure land surface
GSAT-16: Communication satellite
GSLV-Mark 3 for FAT satellites in future
Liquid Apogee Motor (LAM) to drive vehicle carefully

Prologue
Combining space-tech related topics from September W1 to October W3, in three part series
1. IRNSS: the desi GPS
2. Stuff send to space: NISAR-mission, GSLV-6, GSAT MK-3
3. Stuff build on land: TMT, INO, TOPS

Apart from this lot of ball by ball commentary happened- Comet Siding spring, ESAs Rosetta
Mission, NASAs Orion mission, Lunar Eclipse, Blood moon. But I dont consider them much
important for Mains-2014. Although Ive noted them down, will release them later under prelim
space-tech series 2015.
NISAR Mission 2020: to measure land surface
Topic in News: October W1, 2014

Full name NASA-ISRO Synthetic Aperture Radar (NISAR) mission

Launch Year 2020
Whats the purpose of this mission?

Measure the changes on earths land surface, ice surface, glaciers, earthquakes and
volcanoes.
Find causes and consequences of such changes.
NISAR will be the first satellite mission to use two different radar frequencies (L-band
and S-band). Hence It can capture resolution even less than a centimeter of earths
surface.

Whats the utility of such data?

Understanding climate change

Predicting natural disasters in advance.

Wholl provide what?

NASA
L-band
synthetic aperture radar (SAR)
GPS
Subsystems: Payload, Communication
Solid state recorder

ISRO

S-Band
Launch Vehicle
Spacecraft bus

Mock Question (GS3) Write a short note on NISAR MISSION 100 words.
GSAT-16: Communication satellite
Topic in News: SepW2, 2014

Existing system: INSAT-3E at 55 Degree East Longitude.

INSAT-3E is a communication satellite that powers DD and private TV channels,
internet and radio signals.
But INSAT-3E is getting old and outdated. Stopped working in March 2014, after serving
for almost a decade.
Solution? = replace it with GSAT-16

GSAT-16: Facts and Features:

Launch
2015, June
Communication satellite
Type
For TV, radio and internet

Weight
3100 kg
Launch Vehicle European Ariane-5 launcher
Mock Question (GS3): Discuss the features and utility of GSAT-16 (100 words.)
GSLV-Mark 3 for FAT satellites in future
Topic in news: Oct W3, 2014 (Because ISRO planning launch in next 45 days)

First understand the difference

PSLV

GSLV
Geosynchronous
satellite
launch
Polar satellite launch vehicle
vehicle
First launch 1993
2001.
Can carry upto 1600 kg satellite
2500kg
Used for launching Indian remote sensing satellites (IRS) For launching Indian National
such
as
CARTOSAT,
RISAT,
OCEANSAT, satellites (INSAT) such as INSAT 2E,
RESOURCESAT
3A., GSAT-2,8,12.
Latest version is PSLV-XL. Can carry upto 1750 kg. It
Next version is GSLV MK-3
was used to launch Chandrayaan, RISAT. And in future,

itll be used for Mars mission as well.

What is GSLV Mk-3?
Latest version of GSLV -Geosynchronous satellite launch vehicle.
so, Whats the difference?
(ordinary)
GSLV Mk-3
GSLV
Can carry upto 4500-5000 kg satellites, such as INSAT-4 class. (Old
articles in Hindu said upto 4000, but new articles say 4500-5000)
Carry
upto
Until now, we relied on EUs Arianespace launch vehicle to send those
2500 kg
INSAT-4 satellites.
In future, it ma
49 meters tall
414 tonnes

Just 42.4 meters- Shorter than ordinary GSLV.

629 tonnes.

Nov-Dec 2014: ISRO planning a test-launch it, using a dummy crew module.

GSLV MK-3 is a three stage vehicle.

1st stage Solid propellant
2nd stage Liquid Propellant
3rd stage Cryogenic Engine. (although during test-launch, ISRO wont use this)
GSLV MK-3 has multi-mission launch capabilities:

GTO (geo transfer orbit)

LEO (low earth orbit), Polar
Intermediate circular orbits.
Therefore it can be used for launching satellites into different orbits, according to Mission
requirement.
Thus, GSLV MK-3 will make ISRO a competitive player in commercial launches of
foreign satellites (and earn million$$).

Mock Question (GS3): GSLV MK-3 will augment the both communication and commercial
operations ISRO. Elaborate (100 words.)
Liquid Apogee Motor (LAM) to drive vehicle carefully

Topic in News: Sep W2, 2014

There are two types of launch engines:
once fired continue to be in operation till their fuel burns off.
Solid
We cant control its velocity or direction.
fuel

Liquid
fuel

They can be shut off once the spacecraft achieves the desired velocity
We can restart the engine several times if required. Thus it is possible to
change satellites orbit with precision.

LAM- Liquid Apogee Motor: is a special device on such liquid-fuel powered engines.
LAM Helps moving the satellite to the precise orbit.
LAM uses following chemicals: Helium gas, Nitrogen Tetroxide, Monomethyle
Hydrazine
ISRO originally designed this instrument for INSAT-2 and other communication satellite.
Recently, ISRO used LAM on its Mars orbiter and on IRNSS satellites.

Mock Question (GS3): What is the utility of Liquid Apogee Motor (LAM) module
developed by ISRO? (100 words.)
Tags: shivaram, space-tech
[Space-Tech] P3/3: Thirty Meter Telescope, Indias Neutrino Observatory, NASA-TOPS
Space-Tech1 month Ago15 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.

Prologue
30-meter telescope (TMT)
India based Neutrino Observatory (INO)
TOPS: Terrestrial Observation and Predicting System (TOPS)

Prologue
Combining space-tech related topics from September W1 to October W3, in three part series
1. IRNSS: the desi GPS
2. Stuff send to space: NISAR-mission, GSLV-6, GSAT MK-3
3. Stuff build on land: TMT, INO, TOPS

Apart from this lot of ball by ball commentary happened- Comet Siding spring, ESAs Rosetta
Mission, NASAs Orion mission, Lunar Eclipse, Blood moon. But I dont consider them much
important for Mains-2014. Although Ive noted them down, will release them later for prelim
space-tech series.
Thirty meter telescope (TMT)
Topic in News: Oct W1, 2014. (As such an old topic but keeps resurfacing on Hindu every once
in a while.)

What?

Thirty Meter Telescope (Because its primary mirror is 30m wide)

Worlds largest infrared telescope
World largest optical telescope (because its primary mirror is 30m wide.)
although this record will be soon broken, when European Extremely Large

telescope is build. (42m mirror)

Why?

Where?

TMT is 12 times better than Hubble space telescope.

Therefore, can search for stars that are less bright or farther from Earth.
TMT will help finding most distant and oldest stars that were born after Big
Bang. Thus we can learn more about the origin of the universe.
Mauna Kea volcano summit, in Hawaii.
Controversy: Project will harm the habitat of Rare Weiku bug.

Who? India, Japan, US, China and Canada.

2010: Pact signed
When?
2022: project will be finished.
Cost:

1.5 billion$

Indias contribution to TMT project

10% finance (1000 crore rupees).

India will develop the control system, sensors, fabrication, actuator systems of this
telescope.
Godrej and other Indian private companies will do the mirror-coating and polishing of
this telescope.
Indian astronomers will be allowed to use this telescope for the time proportional to
Indias contribution (10%). Japanese will get to use it for 25% and so on.

Mock Question (GS3): Write a note on Thirty Meter Telescope and Indias contribution to
this project. 200 words.
India based Neutrino Observatory (INO)
Topic in news: Sep W3, 2014

What?

Function?

Where?
Who?

Mega science project under 12th Five year plan.

To setup an underground lab for pure science.
INO lab has 50,000 tonnes magnetic detector and an Iron Calorimeter (ICAL)
detector.
To study neutrinos and particle physics.
Later can be used for doing under-ground experiments in pure research in
biology, physics and chemistry as well.

Bodi west hills, Theni district, South Tamilnadu

jointly funded by the Department of Atomic Energy (DAE) and the
Department of Science and Technology (DST)
BARC, Tata institute of Fundamental research (TIFR) and dozen other chillar

Indian research institutes.

Location factors:
(for hardcore-geology MCQs in CDS and CAPF)

To detect Neutrino and their reactions, the lab has to be at least 1000 m below surface, to
reduce natural cosmic radiation.
Mountains of South India, are most ideal for this lab, because theyve dense rock (mostly
gneiss) while the Himalayas are mostly metamorphic sedimentary rock with only pockets
of gneiss.
Bodi west hills is made up of Charnockite (hardest rock known.) Earthquake risk
minimum.
Hence better than hills in Karnataka, because theyve more schistic type rocks, the rocks.

Mock Question (GS3): Write a short note on features and functions of INO Neutrino
observatory.
TOPS: Terrestrial Observation and Predicting System (TOPS)
Topic in news: Sep W4, 2014

Who?

What?

Ramakrishna Nemani, an Indian scientist in NASA-National Aeronautics and Space

Administration.
He modified NASA technology to help Indian farmers against floods, droughts, climate
change and smooth implementation of crop-insurance. hence important from two angles:
1. (GS3): e-technology in the aid of farmers

2. (GS3): indigenization of technology

How? Terrestrial Observation and Predicting System (TOPS)
What is TOPS?
TOPS system collects weather and climate data using
1.
2.
3.
4.

satellite remote sensing

ground weather stations
Human inputs and
using climatic forecasting and ecosystem models

Ya, but What is the benefit of such data?

1. Helps categorizing agro-regions according to climate risk. Thus, Crop production and
loss can be determine in advance.
2. Both farmer and Insurance companies can make business decisions accordingly.
3. Ensures that right amount of crop insurance reaches the right farmer. (By linking
computerized land records, Adhar, Jan Dhan bank account.)
Mock Question (GS3): Discuss the potential utilities of NASA-TOPS system in Indian
agriculture.
[Entry of Europeans] Thuggee in British India, Whistleblower Maharaja Nandakumar,
Tipu Sultan
History1 month Ago24 Comments
For Indian History, I recommend
Spectrum- Rajiv Ahir
1.
2.
3.
4.

Prologue
Thuggee in British India
Maharaja Nandakumar: 1st Whistleblower of India?
Tipu Sultan and his Ring vs. East India Company

Prologue

Im in process of restructuring new and old articles to make site more revision friendly.
You can see the entire Archive at Mrunal.org/history

In this page, Im combining topics of Entry of Europeans and upto 1857 Mutiny.
For background theory, refer to Class11 Tamilnadu historybook from download section.

Anyways, three topics in (Hindu) news, from that Entry of Europeans section:

Sep 2014: Thuggee in British India

Sep 2014: Maharaja Nandkumar
May 2014: Tipu Sultan and his ring.

Thuggee in British India

Relevance:

UPSCs fondness for asking random GK type Qs once in a while- e.g. was Hiuen Tsang
robbed or not?
Oneliner fodder for the essay: India has benefitted from Colonialism (because thuggy
was abolished) and even its counterargument because thugs joined that profession due
to heavy debt / jobloss under British raj.

Famous persons vs Thugs

Bandits attacked his caravan near Ganges. Wanted to sacrifice him to their
Hiuen Tsang
goddess. (7th Cent)
Jalaluddin
Expelled ~1000 thugs from Delhi (1920)
Khilji
Kabir
Used thugs as metaphors to show Gods deceit.
Nanak
His Janamsakhi texts also mention thuggary.
Augrangzeb
Ordered execution of Phansigar.
Who were these thugs?

Roamed on highways. Trapped victims with drug-laced laddu, looted their belongings
and murdered.
Main targets: Company sepoys, merchants and pilgrims.
Looted horses and weapons given to local rulers for protection, and even bribed the
city officials.
Even used the loot, to repay their agriculture debt to Zamindars!
Thugs came From all strata of society. They were not limited to a single caste or religion.
Many of them were sepoys in Mughal army, who lost jobs under British Empire.
Thuggee was a seasonal occupation. They left the village after the autumn harvest
(Oct-Nov) and returned June-July before the rains.

How did the British wiped out thuggee in India?

East India Company passed a regulation. If Zamindar did not inform the company about
1810
thug activities, hed be punished.
1930 Government authorised Captain Sleeman to wipe out thugs.
1839 Captain Sleeman succeeded but jailing and hanging most of the thugs.
Ref: September 2014, TheHindu review of a book Thuggee: Banditry and the British in Early
Nineteenth-Century India: Kim A. Wagner.

Maharaja Nandakumar: 1st Whistleblower of British India?

He was a revenue officer under the Nawab of Bengal

Helped British during Battle of Plassey (1757),

Year 1775
Nandakumar
Hasting

Made allegations that Governor General Hastings accepted bribes from Nawab and
others.
No, Nandakumar himself paying bribes to others, to malign my image!

Later, company officials arrange a puppet Indian to file a forgery case against
Nandakumar.
During that era, Indian vs. Indian cases were not to be heard by British judges.
But still a British judge presided over Nandakumar forgery case and awarded death
sentence. (Curiously that judge was a close friend of Hastings)
Maharaja Nandakumar was hanged in full public view at the Hoogly river banks near
Kolkata.
Edmund Burke, Lord Macaulay and other eminent British described Nandakumars
hanging as a judicial murder.

Moral of the story: unless there is a whistleblower protection act, you shouldnt take on
your boss.
Why in news: His turban will be displayed in Kolkatas Victorias hall. (September
2014)

Tipu Sultan vs. East India Company

Father: Haidar Ali

Tipu Named after Sufi Saint Tipu Sultan Auliya. Nickname Tiger of Mysore.
Kingdom: Mysore, Karnataka
Capital: Shri Rangapatnnam.
Tipu was a Muslim, but THEHINDU (May 13, 2014) claims he was Catholic in his
religious outlook!

Tipu buildings:

Summer palace at Bangalore

Tipu did not build the Sri Rangpatnam. It was built by a Feudal lord in 16th century

Tipu Military prowess

Wrote a military manual: Fathul Mujhahidin

Manufactured rockets, artillery and firearms.

Anglo Mysore Wars

Year Outcome
1767 Haidar Ali defeated British
Maratha, Nizam and Haider formed tripartite alliance to protect French at Mahe
against the British
But Maratha (Bhosle & Scindia) and Nizam made peace with British & left fight.
1780
Hairdar died, Tipu carried the fight & defeated the British =>Treaty of Manglore
1784. It restored status quo.

1790

Governor General Cornwallis made alliance with Marathas and Nizam, finally
defeated Tipu
Treaty of Shri Rangpatanam, where Tipu gave 50% of his territory, 3 crore rupees
and 2 sons to Lord Cornwallis as hostages (to ensure 3 crores were paid in regular
installments.)

1799

Tipu tried to set alliance with Arab, Turks and Afghans to defeat the British but
failed.
To create alliance with the French, Tipu setup a Jacobian club of republican ideas.
Napoleon was pleased & sent a friendly letter, later a few soldiers came to aid Tipu
in fourth war.
Wellesley asked Tipu to join subsidiary alliance, but he declined. This led to fourth
Anglo Mysore war, Tipu died defeating Fort Sri Rangapattinam.

Arthur Wellesley (Lord Wellesleys brother) took away Tipus ring, made of gold, has
written Ram in Hindi.
Later, the British deported Tipus family to Calcutta, distributed part of the territory to
Nizam, & setup a 5 year old puppet king Manmohan Singh Krishnaraja III @Mysore, and
signed subsidiary alliance with him.

Auction of Tipus ring and swords

2003 Vijay Mallya purchased Tipus sword from a London auction for ~1.5 crore rupees
2014 An unknown bidder purchased Tipus ring from a London auction for ~1.4 crore rupees.

Mock Questions
Q1. As per the Treaty of Srirangapattinam
A.
B.
C.
D.

Tipu Sultan had to give up part of his territory Nizam, Marathas and East India company
Tipu Sultan had to give his two sons as hostages to Hastings
Both A and B
Neither A nor B

Q2. What of the following steps were taken by Lord Cornwallis?

1. Tripartite alliance with Nizam and Marathas to fight against the French
2. Gave judicial powers to district collectors.

3. Removed all Indians from judicial positions

Correct statements are:
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q3. Lord Wellesley __.

1. Adopted non-interventionist policy in India.
2. Was confident that Napoleon will not intervene in India to aid Tipu Sultan.
3. Played major role in creation of Agra Province and Madras presidency
Incorrect statements are:
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Correct Answers for above MCQs:

1. D both wrong. Alliance made to fight against Mysore and Tipu gave sons to Cornwallis.
2. D- none of them. Read Tamilnadu class12 Chapter 2 on Cornwallis.
3. A-1 and 2 incorrect. Mind it, youve to find wrong statements in this question. Read
Tamilnadu class12 chapter3 on Wellesley.
Mains/interview
1. (Interview) Whenever there is auction of items related to Tipu, Gandhi & other
prominent historic figures, some Indians demand that government of India should bring
back those items. But there is no dearth of such collectible items. Can you think of
arguments both in favor and against this demand?
2. (interview) From British point of view, which Governor General or Viceroy can be
considered THE MOST Effective administrator of India, and why?
[Nobel] 2014 Winners: Physics, Chemistry, Medicine, Economics, Literature, PeaceMalala, Satyarthi
PIN1 month Ago72 Comments

For ACIO & Insurance AO

Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Nobel Prize Theory
2. Nobel Physics 2014
1. BEE to promote LED:
3. Nobel Medicine 2014
4. Noble Chemistry 2014
1. Confocal microscope
5. Nobel Economics 2014
6. Nobel Peace Prize 2014
1. Kailash Satyarthi
2. Malala Yousafzai
3. Tokenism in Peace prize 2014?
7. Noble Literature 2014
8. Nobel 2014: Quick revision Table
9. Nobel winners with Indian Connection
10. Mock Questions
Nobel Prize Theory

1896: Dynamite inventor Alfred Nobel (Sweden) died. He left a fund to give awards in 5
categories: Physics, Chemistry, Medicine, Literature, and Peace. Later 6th Category
added: Economics.
1901: started. Maximum 3 persons can be awarded in each category.
A person must be alive to be nominated.
Nobel prize recipients are called laureates.
Nobel prizes are announced in advance but actual medals given on December 10, the
anniversary of Alfred Nobels death.
They get medal, diploma, and 8-million Swedish kroner (SEK) = ~ $1.1 million

Who gives the money?

All except Economics medal fund created by Dynamite inventor Alfred Nobel, Sweden.
Economics
From Bank of Sweden (Riksbank)

Where is the award party held?

Oslo, Norway
The Nobel Peace Prize given here.
Stockholm, Sweden Physics, Chemistry, Medicine, Literature and Economics medals given here.

Inscriptions on Nobel medal?

Economics
No inscription
Peace
For the peace and brotherhood of men.
Physics, Chemistry, Medicine And they who bettered life on earth by new found mastery.
Nobel Physics 2014
Names

Contribution
First, Red and Green LEDs were invented. But still white light
1. Isamu
Akasaki
couldnot be produced.
(Japan)
20 years ago, these three invented Blue LED (light emitting
2. Hiroshi
diode) using Indiaum Gallium Nitride semiconductor (InGaN)
Amano(Japan)
Blue +Red + Green = White LED light produced, hence LED
3. Shuji Nakamura
became popular.
(US)
Today LEDs are the most efficient source of light.

Without invention of Blue LED, we could never get white LED light!
2013 Nobel Physics: sub-atomic particles.

BEE to promote LED:

We should use LED because theyre
o
o
o
o
o

50% more energy efficient than CFL

does not use mercury, unlike CFL.
Lifespan 4-5 times more than CFLs
Uses 1/10 energy of an incandescent bulb.
Yet produces same amount of light.

Challenge: high cost than CFL and bulbs. Therefore, Bureau of Energy Efficiency (BEE) under
the Ministry of Power, came up with following ideas:
o
o
o
o
o
o

Give financial support to all states- to promote LED use.

Under Rajiv Gandhi Grameen Vidyuthikaran Yojana (RGGVY): Give LED bulbs to BPL
families.
Electricity distribution firms should sign pacts with LED companies. To supply LED
bulbs at discounted rates to their consumers.
For example BEE + EESL (a JV of PSUs) began selling LED bulbs to households at
Rs.10 instead of MRP of Rs.400.
The electricity distribution companies then repays EESL, over a period of 5 to 8.
BEE will launch a labelling programme and awareness campaign for LED.

Nobel Medicine 2014

Names

Contribution
Discovering the brains positioning system.
Certain Nerve cells become active to enhance our
spatial memory
1. John OKeefe (UK)
Only then, we can remember things and their exact
2. MayBritt
Moser
place around us.
(Norway)
In Alzheimers disease patient loses his spatial
3. Edvard Moser(Norway)
memory as well.
These 3 scientists research will help fixing that.
Hence Nobel.

2013 Nobel Medicine: how substances move within a cell.

2012 Nobel Medicine to Gurdon and Yamanaka for iPS stem cells. Important because
Modi during his Japan visit, asked Yamanaka to cure sickle cell anaemia.

Noble Chemistry 2014

Names
Contribution
1. Eric Betzig (US)
Earlier optical micrometers could show resolution upto 0.2
2. William Moerner
micrometres only (=half the wavelength of light)..
(US)
But these 3 gentlemen developed super-resolved fluorescence
3. Stefan
Hell
microscope, which can show details in nanometers.
(Germany)
Hence the Nobel.

2013 Nobel Chemistry: computer model to predict chemical reactions- to make new
drugs.

now lets check a Related topic from October week 2, 2014:

Confocal microscope
Relevance: (GSM3) Achievements of Indians in science & technology; indigenization of
technology

Indian scientists designed this microscope

Using funding from CSIR Council for Scientific and Industrial Research.
Broad Spectrum Confocal Microscope can generate 3D images of objects.
Uses Infra-red beams and patented crystal fibres.
Imported microscope of this quality =4 cr.
Desi microscope: ~1.5 cr.

Nobel Economics 2014

Jean Tirole (France)

If Government doesnt regulate private firms => Private monopoly=> new players cant
enter => lack of competition => high prices => market failure.
Jean designed frameworks on how should Government regulate private telecom, banking,
mfg. industry etc. without nationalizing them. How to prevent cartels and monopolies.
Following his model, many developing countries began disinvestment and privatization
of Public sector units in the 80s and 80s.
Economics Nobel is given by Swedens Central bank.
2013 Nobel: How market prices of bonds/stocks/real-estate move.

Nobel Peace Prize 2014

Given jointly to Kailash Satyarthi (India) and Malala Yousafzai (Pakistan).

Kailash Satyarthi

Electrical Engineer from Madhya Pradesh.

Head of Bachpan Bachao Andolan (BBA) the Save Childhood Movement
freed 80,000 children from factories, brick-kilns, carpet making and other bonded labour
jobs. Even sustained attacks from local mafia while doing that.
helped in their education and rehabilitation.
Member of UNESCO group on Education for all.
Wants the world leaders to include child-slavery abolition in PostHas won Robert F. Kennedy International Human Rights Award (US) and several such
civilian award in Spain, Italy and Europe.
Government of India never gave him any Padma award.
European Government nominated him for this Nobel Prize.

Only three people from India got Peace Nobel

1979: Mother Teresa

2007: RK Pachauri with Al Gore (climate change)
2014: Satyarthi.

Malala Yousafzai
Only two pakistanis won Nobel so far.

1979: Physics- Abdus Salam for subatomic particles

2014: Peace- Malala for advocating girl education.

Malala is youngest person to win Nobel (age 17). Broke record of Lawrence Braggs (25 years
old, Physics noble-1915).

She hails from Village Mingora, Swat Valley, Pakistan.

Wrote a BBC-blog pseudonym Gul Makai (2009).
Advocated girl child education in Pakistan. Hence Talibans did not like it. NOT ONE
BIT. so, they shot her in the head.
Government sent her to UK for treatment. Currently living in Birmingham, crusading for
education via speeches, books, and social media.

Malala has written following Books:

1. Im Malala (co-author Christina Lamb)

2. Malala: the girl who stood up for education and changed the world (co-author Patricia
McCormick).
Tokenism in Peace prize 2014?

2013 Peace prize given to Organization for the Prohibition of Chemical Weapons.
(OPCW)- Therefore still important for GS2: International bodies. UPSC occasionally ask
stuff after it becomes outdated, same happened with Chandrayan.
Anyways, back to the topic- 2014: Malala and Satyarthi got peace prize. Some people see
Joint Prize to an Indian and a Pakistani- as a symbolic-gesture to stop the border
tension.
But Nobel Committee clarified, this wasnt linked with India-Pak LoC firing at all.
Malala selection done in context of ISIS extremism.
Satyarthi was a genuine activist nominated by European parliament. (And not a
Jholachhap NGO working with NAC or planning commission.)
Both were less controversial than other contenders- Edward Snowden, Pope Francis.
Nobel Committees message is: Hindus, Muslims, Indians, Pakistanis all need to join a
common struggle for education and against extremism.

Noble Literature 2014

Patrick Modi-ano (France)

Novelist who write on themes of WW2, Nazi occupation.

Famous book: Missing person
2013 Nobel: Canadas Alice Munro for short stories

Nobel 2014: Quick revision Table

1.
2.
3.
4.
5.
6.

1
2
3
4
5
6

Category Names
1. Isamu Akasaki (Japan)
2. Hiroshi Amano(Japan)
Physics
3. Shuji Nakamura (US)

Medicine

Chemistry

1. John OKeefe (UK)

2. MayBritt
Moser
(Norway)
3. Edvard Moser(Norway)
1. Eric Betzig (US)
2. William Moerner (US)
3. Stefan Hell (Germany)

Economics Jean Tirole (France)

Peace

Contribution

Blue LED invention

Red + green + blue = white
Cells that create brains positioning system.
This system Help us remember exact
places of things
Can help in Alzheimers disease
Microscope: Super-resolved fluorescence
Nanometer resolution

How to prevent
competition.

monopolies

1. Malala Yousafzai (Pak)

2. Kailash Satyarthi (India) Child rights, child education

Literature Patrick Modiano (France)

Novels on anti-Nazi, WW2 themes.

Nobel winners with Indian Connection

Year Winner
Category
1902 Ronald Ross, born in Almora. Malaria research
Medicine
1907 Rudyard Kipling, born in Mumbai
Literature
1913 Rabindranath Tagore
Literature
1930 Sir C.V. Raman, Bharat Ratna
Physics
1968 Dr. Hargobind Khorana
Medicine
1979 Mother Teresa (Macedonia) worked in Kolkata. Bharat Ratna Peace

and

facilitate

1983 Subrahmanyam Chandrasekhar

1998 Dr.Amartya Sen, Bharat Ratna
2001 VS Naipul (Trinidad and Tobago)
2007 Dr. RK Pachauri (with Al Gore) for climate change work
2009 Venkatraman Venky Ramakrishnan Ribosome
2014 Kailash Satyarthi Child rights activist

Physics
Economics
Literature
Peace
Chemistry
Peace

Mock Questions
MCQ
1. Non-UPSC exams: trivial GK on winner vs nationality, winner vs category, facts from
theory. Indian connection table.
2. CSAT: principles behind LED light, brains positioning system, match the following
winner with invention; microeconomics definitions about monopoly, oligopoly etc.
Mains
1. IFoS Mains: They ask shortnotes about persons in news (PIN) so all winners and their
contribution important.
2. CSE Mains: indirect questions about LED / energy savings ; child-rights and childeducation related laws/schemes/bodies in India; CCI structure function and so on.
For more persons in news (PIN), visit Mrunal.org/PIN
Tags: shivaram
[Banking] PM Jan Dhan Yojana: Salient Features, Benefits, Limitations & truckload of
criticism
Economy1 month Ago139 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.

Prologue
Disturbing numbers
PMJDY: Salient Features:
Jan-Dhan: Benefits, Pro-Arguments
Criticism / Anti-Arguments
1. Multiple accounts to get more insurance

2. Money laundering
3. Insurance thuggary in small fonts
4. BCA model is EPICFAIL
5. DBT Epicfail => vicious cycle
6. Mock Questions
Prologue
Topics part of the [Current] series

August: scheme launched

September week3: Rajanbhai finds faults in Jan Dhan scheme while speaking in a
seminar. Taking cue from him, all the columnists have jumped in a competition who
can criticize this scheme more?

Disturbing numbers
Lack of financial inclusion in India
Only
Of Indian households have bank accounts (Census 2011)
59%
Of the bank accounts are not operated at all. Most probably those accounts opened part
50%
of MNREGA and other campaigns.
~46,000 Villages have bank branches. (total villages are above 6 lakhs.)
Villages have Banking Correspondent Agents (BCA) . But this model is epicfail, well
3.3 lakh
see it further in this article.
34%
is the average loan interest charged by local money lenders.
55%
Of Rural Dalit families have to borrow money from local moneylenders / Shroffs.
Is the average loan-interest rate charged by Private microfinance institutions
(MFIs).
24%
by 2010, Microfinance agents even started goondagiri to recover loan money,
and this model began to decline.

It doesnt mean Government and RBI havent nothing. Since independence, they have launched
many initiatives for financial inclusion- Bank Nationalization, Regional Rural banks, cooperative
banks, Banking correspondence agent, Swabhiman, Swavlamban, Microfinance, No-frills
account,
25%
rural branch rule,
Bharatiya Mahila
Bank and so
on.
You can read more details about them under Mrunal.org/economy particularly under the
[Nachiket Mor] Committee article series. Anyways, moving on:
PMJDY: Salient Features:

Who
Department of Financial Services under Finance ministry
When
15th August 2015
Purpose se Financial inclusion
Target
Open bank accounts for 7.5 crore families in one year.
motto
Meraa Khaataa Bhagya Vidhata

PMJDY scheme has 6 pillars in two phases

Phase 1: Three pillars (2014 to 2015, 15th August)

Country will be divided into sub-service areas (SSA)
1.Service
Each SSA will cover 1000-1500 households
area
Each household will have a banking outlet within 5 km distance.

2.Account

3.Literacy

Each household will have atleast one bank account.

Even minors of 10 years and above age, can open.
With a Rupay debit card
Rs. 1 lakh accident cover per account. Conditions:
o 1 individual and multiple bank accounts = still maximum 1 lakh cover
o 1 family, husband-wife separate accounts= each gets 1 lakh cover.
If you open account before 26th January 2015, youll get additional
Rs.30,000 life insurance cover.
If your good credit history for first 6 months=>Rs.5,000 overdraft facility. If
same family has multiple accounts then only 1 account gets this benefit- first
preference to womans account.

Financial literacy programmes to make juntaa aware of benefits of saving and

investing money properly.

Phase 2: Next Three pillars (2015 to 2018)

Credit guarantee fund- to cover losses in overdrafts. (Because some villagers might
4.CGF
use overdraft for desi liquor and then default in repayment)
5.Insurance If JDY account holder is interested, he can buy micro insurance product.
Earlier Government launched Swavalamban Yojana to make unorgnized
sector workers join NPS scheme.
Those people will get NPS-pension directly in these Jan-Dhan accounts.
6.DBT
Government will also try for direct benefit transfer (DBT) i.e. sending
scheme-subsidy money directly to beneficiaries jan-dhan accounts.

How to open Jan Dhan account?

if you already have a bank account, no need to apply again. Just get a ruPay debit card,
and you get automatically enrolled into this system.
Jan Dhan accounts are put under Core Banking solution (CBS) platform, therefore it can
be transferred from one branch to another, as per your request.
if you dont have any account, open a new account with any one of the following
documents: Aadhar Voters card, Driving licenses, PAN, Passport etc.

Small account

If a person doesnt have any official documents, still bank can open its account- with just
his photo and signature.

But such account will be called Small account. RBI has put following restrictions on
them

1.
2.
3.
4.

not more than 1 lakh rupee loan per year

cannot withdraw more than 10,000 rupees per month.
cannot deposit more than 50,000 rupees in account
Valid for 12 month only.

Jan-Dhan Yojana: Benefits, Pro-Arguments

Will aid financial inclusion, will rescue villagers from the clutches of evil money lenders.
You can cite those disturbing numbers to justify your pro stand in the group
discussion (GD) when other candidates (brainwashed by theHindu) try to create fish
market in GD by criticizing everything under the sun.
Could boost household savings rate similar to Bank Nationalization in 1960s.
Direct Benefit transfer (DBT) money will flow into those accounts (and from there again
as loans to other needy people.) Thus savings will turn into capital. Subsidy leakage
will decline.
Will increase Insurance penetration.
Overdraft only after monitoring performance => win-win, rare chances of NPA/defaults.

Jan-Dhan Yojana: Criticism / Anti-Arguments

Prime Ministers Jan Dhan Yojana (PMJDY) will fail because:

Rajans worry: money laundering and Multiple Accounts in Jan Dhan Yojana
Multiple accounts to get more insurance
Rajanbhai is concerned that:

Jan Dhan scheme gives Rs. 1 lakh insurance on each account.

To get large insurance or overdraft facility, same person might open multiple accounts in
multiple banks- one with Aadhar card, one with PAN card, one with voters card.
Sarkaari banks may also overlook nuisance, in order to meet their targets. Recall the
earlier article on PJ Nayak Committee. Since Government is the majority shareholder in
sakaari banks=> Chairman and board of directors have pressure from Government =>
they pressurize bank staffs to enroll maximum bank accounts so that Modi can brag about
it during his Madison square speech.
RBI suggestion: banks should establish a single information sharing system to weed out
such multiple accounts.
Counter argument: State bank of India has made clear guidelines that even if multiple
accounts of same person, he will get only 1 lakh cover. And since all accounts are put
under Core banking solution (CBS) platform = duplication / mischief unlikely.

Money laundering

Rajanbhai is also worried that JDY accounts could be used for money laundering and Hawala
operations.

Smurfing

Money
mules

Hawala Operators can spilt the whole amount (say 1 crore) into several small
units into several JDY accounts
Then send money overseas without coming under the watchful eyes of
Income tax or Enforcement directorate.
Just like those Drug mules who ingest condom packed with narcotic drugs
and deliver it to other country via airplanes.
Money mules= individuals with JDY accounts, who facilitate Hawala
operators to send money via their account.

Insurance thuggary in small fonts

Jan Dhan gives you free accident insurance cover worth Rs.1 lakh.
But there is a secret condition- you must use RuPay debit card atleast once every 45 days.
This is not be possible for poor families in remote tribal areas. So, theyll lose the benefit
due to inactivity.

Why this secret condition?

Because insurance money doesnt fall from sky. Even if youre getting it for free, still
someone has to pay the premium, right? In this case, Modi is not paying the premium.
(Because he wants to keep fiscal deficit low).
Your premium is paid by NPCI. National Payments Corporation of India owns the rupay
card system. Therefore, they want you to frequently use the card.

BCA model is EPICFAIL

Just like a coaching walla doesnt finish syllabus if students are less, BCA will run away if
commission is low

Jan Dhan aims to divide entry country into sub-service areas (SSA)
Within those SSA, each household will have a banking outlet within 5 km distance.

Since banks cannot open branches everywhere, Government aims to achieve this target
via Banking Business Correspondence Agents (BCA) or Bank Mitra.

Whatre the Problem with BCA model?

1. They get 2% commission on each transaction. Monthly income ~2000 rupees.
2. As a result, they quickly lose interest in this game, being some other side jobs. So, BCA
are never available when customer needs them. 47% of the BCA are untraceable. (says
RBI survey)
3. Allegations of malpractice. For example
1. For opening new account, they ask separate 100 rupees as service charge
(although no bank or RBI has authorized such payment).
2. Some BCA ask separate commission / bakshish from illiterate villagers for
withdrawing money from account (beyond the official 2%)
3. For loan processing too, they demand separate commission, outside banks
knowledge.
Jan-Dhan relies on the failed BC model=> Jan dhan will fail as well.
DBT Epicfail => vicious cycle
PMJDY aims to make all scheme-subsidy payments directly to Jan-Dhan bank accounts. But this
Direct benefit transfer (DBT) itself is a failure because:

Aadhaar project is yet to cover all residents.

Aadhar project facing court cases, because UIDAI is not a statutory body, backed by any
law.
UPA Government had to admit in court that Aadhar-number is not compulsory get
Sarkaari-scheme benefits=> Juntaa wont be motivated to get Aadhar cards=> Jan Dhan
will have trouble transferring money.
AT BCA level, Biometric authentication (finger scan) = showing 25-30% errors. So
citizens will have difficulty in withdrawing money even if theyve Aadhar card.

Now if you join the dots

DotBCA will get 2% commission on transaction
A
Dot- DBT will fail = junta wont get much money in Jan-Dhan accounts and there are
B
fingerprint problem=less transactions.
Prime Minister Modi believes in free-market economy and minimum governance.
Dot Similarly state governments too, will reduce their subsidy burden to comply with
C
FRBM act.

Gradually, less subsidies on food, fertilizer and fuel. So, even if DBT works fine,
juntaa wont get much money in their accounts =less transaction= less commission
to Bank Mitra.

Join Dots A+B+C = BCA (Bank Mitra / Banking correspondence agent) will get very
low commission, hell lose interest and service quality will declining- just like those
coaching wallas, who dont finish syllabus if batch strength is low.
Bad customer experience= People cant use Ru-pay cards every 45 days = insurance
protection also gone = further negative experience = Jan Dhan accounts will become
dormant. Households will again resume saving money in gold or wasting on desi liquor.

Misc. Anti arguments

1. JDY is just old wine (no frills account) in new bottle (Jan Dhan Account). when earlier
scheme didnot improve financial inclusion, there is no chance, new one will succeed.
2. Systematic and well planned reforms necessary- as recommended by Nachiket Mor
Committee- payment banks, wholesale banks, UEBA etc. But Government is in haste to
capture media attention.
Counter-arguments

Rural incomes will improve because of other Government schemes- skill India, make in
India etc.
So, People will use bank accounts, even if Government gives them no subsidies / DBT /
MNREGA.
With penetration of mobile, internet banking and digital literacy, people will be able to
make transactions online. BCA will become irrelevant.

Therefore, even if Aadhar card, DBT or BCA model fails, it is not necessary that Jan Dhan will
automatically fail.
Mock Questions about PM Jan Dhan Yojana
MCQs

In bank and RBI exams- MCQs about trivial facts and figures. Exampleo On which day was JDY launched?
o How many accounts will be opened in one year?
o How much overdraft offered?
o What is the motto of this scheme etc.

In CSAT-2015: theyll give you a few statements about JDYs salient features. Youll
have to find correct of them. Only 1 and 2; only 1, 2 and 4.and so on.

Mains
Answer following in 200 words each
1. Though ambitious, PMJDY faces certain operational difficulties. Elaborate
2. Discuss the initiatives taken since the independence, for the financial inclusion of rural
families.
3. Enumerate the salient features and benefits of PMJDY.
Interview/ GD: PMJDY- pro and anti-arguments. And what steps should be taken to ensure its
success.
Tags: shivaram
[Banking] P.J.Nayak Committee 51% shareholding, Gopalkrishna Committee HR reforms
in Banks & Non-Banks
Economy1 month Ago17 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. T1: PJ Nayak Committee on Board governance
1. Reform #1: Repeal laws
2. Reform #2: Bank Investment Company
3. Reform #3: Temporary BBB
4. Misc. Reform #1: Age and tenure reforms
5. Misc. Reform #2: Private shareholding
3. Nayak Pro arguments
1. #1: competitiveness
2. #2: CVC-CAG-Risk aversion
3. #3: Fiscal repression and Profitability
4. #4: Bailouts
5. Nayak Anti-arguments
4. T2: FM wants 52% shareholding in banks
5. T3: Gopalkrishna Committee on Capacity building
1. Reform #1: Recruitment

2. Reform #2: Training

3. Reform #3: Staff-Transfer
6. Mock Questions
Prologue
Combining three topics of current affairs 2014

May Week2: PJ Nayak Committee report

Sept. Week2: FM proposal for 52% shareholding in banks
Sept. Week4: RBI Gopalkrishna Committee report

T1: PJ Nayak Committee on Board governance

Who is PJ Nayak?
Axis Bank, Ex-Chairman.
Whats the purpose of his Committee?
RBI setup this Committee to review the governance of Board of Banks in India. (Published in
May 2014)
Gist of the matter?
1. In Sarkaari banks, Government owns >50% shares.
2. Therefore Government has majority voting power.
3. So, it can appoint (inefficient but ustaad-in-chamchaagiri) type people as board directors
and CMDs as per its own whims and fancies. Result: Scams like syndicate bank, and
overall inefficiency.
4. Nayak says Government should transfer its shares to Bank investment Company (BIC),
with functional autonomy. (Then Government wont be able to appoint directors as per
its own whims and fancies) thus Sarkaari banks Governance will improve.

Gist of Nayak Committee recommendations

Reform #1: Repeal laws
Nayak recommends Government to repeal following laws
1. Bank nationalization Act (1970, 1980)
2. SBI Act, SBI subsidiaries Act
Because above acts require Government to keep shareholding >50%, and appoints CMDs and
board directors. Once these acts are repealed.
Reform #2: Bank Investment Company
Once those acts are repealed

Step1: Government should setup a Bank Investment Company (BIC), under Companies
act, 2013. As a Core investment company.
Step2: Government should transfer its shares of Sarkaari banks, to BIC.
Step3: Register all Sarkaari banks as subsidiary companies of BIC, under Companies
act. (Because now BIC owns >50% shares in those company, so BIC is the parent
Holding company and those banks became BICs subsidiary companies).
consequently all banks will become ltd. E.g. Punjab national bank=> Punjab national
bank ltd.

Implications?
1. BIC will have the voting powers to appoint Board of directors and other policy decision
during AGM of shareholders.
2. Government will sign an agreement with BIC, promising the autonomy. (that were
majority shareholders in BIC, but we wont interfere In your work- when you select
directors, CMDs for those subsidiary banks.)
3. This is not an entirely new concept. In UK, Government has setup UKFI (UK Financial
investment ltd.) for the same purpose.
Reform #3: Temporary BBB

When Bank investment company (BIC) will own >50% shares in those Sarkaari banks,
itll have the power to appoint Board of directors (And via them appoint the CMD).
But this requires repealing some acts = time consuming exercise because parliament
sessions are not held 24/7/365.
But, we cant wait that long, because Syndicate bank scam requires quick reform.

Therefore, Nayak recommends following temporary solution:

Until BIC is born, Government should setup a Bank Boards Bureau (BBB) at Mumbai.
This BBB will be madeup of Senior bankers. (3 members + 1 chairman; 3 years tenure)
Theyll advice on all board appointment, bank chairman/CMD and Executive directors.
Once BIC is setup, this BBB will be dissolved.

Misc. Reform #1: Age and tenure reforms

Figures not important, except for bank exams

category
age limit
minimum age for CEO, CMD, directors etc. 21
upper age for CEO/CMD
65
upper age: whole time directors
65
upper age: part time directors
70

Figures not important, except for bank exams

category
tenure limit
Chairman
minimum 5 years
executive directors
3 years
part time directors
7 years
cooling off period between re-appointment at same bank 5 years
cooling off period between re-appointment at any bank 2 years
Misc. Reform #2: Private shareholding

At present: an individual person/Mutual fund etc. cannot own more than 5% shares in a
Sarkaari bank. (At maximum 10%- after RBI permission).
Nayak proposes following reforms:

Increase the shareholding limits (figures not important)

category
all financial institutions
New category: Authorised Bank Investors (ABI). Itll include

permitted shareholding in
bank
upto 10%

15% if he is board

pension funds, mutual funds, ETF etc. approved by RBI

member
20% if he is not a
board member

Nayak Pro arguments

Nayak recommendations should be adopted because:
#1: competitiveness
Private bank

Sarkaari bank
Chairmans pay not linked with
profitability.
chairmans pay packages linked with bank
He is appointed not for his talent
profit.
but because he is in the good
Hence hell always focused on raising
books of Government.
customer base, telemarketing, advertisement,
He is not as blood-thirsty for
trying to sell maximum loans and so on.
profit, like a private banks
chairman.

#2: CVC-CAG-Risk aversion

Private banks: only RBI supervision. They dont fall under purview of CVC-CAG-RTI.
Sarkaari banks: Since Government holds >50%, these Sarkaari banks are also
answerable to RTI, CVC and CAG, apart from RBI.
Consequently, senior bankers become cautious. They avoid taking bold- business
decisions.
All decisions taken by Committee mindset to dodge responsibility. Hence Sarkaari
banks dont make large profit.
So, it is necessary to liberate them from clutches of CVC-CAG-RTI.
Therefore, Nayaks recommendation should be implemented- Government should reduce
its shareholding to below 50% (by transferring shares to BIC and signing an autonomy
agreement.)

#3: Fiscal repression and Profitability

private banks
Sarkaari banks
They reinvest profit in branch
They invest profit in G-sec. (Government
expansion, advertisement etc.
securities)

They do not invest profit in G-sec.

(except for SLR requirements)
Because G-Sec pays ~8% return, so
better invest the money in any other
activity thatd bring more than 8%
return

Because Government control their board of

directors.
so, Government indirectly forces bank to
purchase its G-sec (so that they can run
more schemes named after you know who)
Same is done with LIC, EPFO and other
institutions, where Government is majority
shareholder.
Economic survey calls this phenomenon
fiscal repression.
Consequence: these institutions never make
large profit because they always make
safe-investment in G-sec.

To stop this nuisance of fiscal repression, it is necessary that Government holds <50% shares
in any Banks.
#4: Bailouts
1. Earlier, Government had forced Sarkaari banks to use their money to bailout loss making
UTI and IDBI.
2. Sarkaari banks forced to give cheap loans to FCI, so that FCI can purchase foodgrains at
a high Minimum support price (MSP)- to keep the farmer-votebank happy.
3. Sarkaari banks forced to waive debts of farmers before election.
While all this may sound good to votebank and socialism but in the long term it harms the
system at large.
1. UTI-IDBI became complacent that even if we mismanage, theyll bail us out. (Same goes
with AirIndia).
2. Farmers dont cultivate pulses, oilseeds or vegetables. But only wheat and rice because
FCI is paying them large MSP. Result: veggie-shortage and food inflation.
3. Farmers dont repay loans on time, hoping Government will waive their debts just before
elections.
Again, to stop such nuisance, it is necessary that Government holds <50% shares in any Banks.
Nayak Anti-arguments

that Nayak recommendations must not be implemented AND Government must continue holding
>50% shareholding in the Sarkaari banks because

Subprime crisis, LIBOR scam, Global financial meltdown: all this happened because of
MNC-Banks and financial conglomerates outside Government control.
Only 40,000 out of 6 lakh villages, have bank branches. If Nayak recommendations
accepted then all banks will run only with profit-motive, no one will setup branches in
villages. Then, financial inclusion cant be achieved.
Counter argument: RBI rule requires all banks to setup 25% of branches in rural areas
If CVC-CAG oversight is gone, it is possible these banks will connive with corporate
borrowers and money laundering. (Recall the cobra post sting on ICICI etc. private
banks)

T2: FM wants 52% shareholding in banks

As per the Bank nationalization acts, Government shareholding must not fall below 51% in
Sarkaari (Public sector) banks.
Some Examples:
Sarkaari Bank
Government shareholding
BoB
56.26%
Central Bank of India 88.63%
SBI
58.60%
PNB
58.87%
So whats new?
2010

2014,
September

Government decided- its minimum shareholding in any public sector bank, must
not fall below 58%
Finance ministry has sent a proposal to cabinet- to reduce shareholding to 52%.
implications
1. Government gets money by selling excess shares=helps filling up the fiscal
deficit pothole.
2. Government may give back that money to Sarkaari banks as capital to
meet the capital requirements BASEL-3 norms.

T3: Gopalkrishna Committee on Capacity building

Who is G.Gopalkrishna?

Earlier he was Executive director of RBI. HE couldnt get promotion to Dy.Governor post, so
resigned.
Whats Purpose of his Committee?
RBI setup this Committee for Capacity building in banks and non-banks.
Gist of the matter?

PJ Nayak= improve efficiency via reforms in Government shareholding and board of

directors.
But what about reforms at field level? What about transparency-bank loan scandals,
issues in recruitment-transfer-appointment process?
Therefore, Rajanbhai had appointed G.Gopalkrishna Committee
Sep 2014: Committee submitted report
Dec 2014: likely to be implemented.

Lets check its major recommendations:

Reform #1: Recruitment

Common Bank aptitude test (BAT)

Should be conducted online
BAT score should be used for for entry-level recruitments in banks.

Reform #2: Training

Each bank should have a chief leaning officer. Hell provide coaching-mentoring in
leadership Development.
Top management in public sector banks are close to retirement and risk-averse. These
banks need younger people, lateral entry and diversification
NIBM, IIBF, CAFRAL etc. should provide specialized training for foreign exchange
rules, treasury Management, online security etc.
Banks should send staff to deputation in institutes, or even abroad- to enhance their skills.

Reform #3: Staff-Transfer

in Sarkaari banks there is shortage of manpower at mid-executive level because talented

officers leave to join private banks and NBFCs.
Syndicate bank loan scam.
Ex-CJI Sathasivam also complained the same- short tenure not sufficient to bring large
scale reforms- in judiciary.

In this backdrop, bank-transfer policy indeed needs to be revamped. Gopalkrishna recommends

that:

Bank should not transfer staff in a mechanical manner.

Transfer should be done to provide good leaders across geography.
Posts that have high concentration of power- the transfer should be done on need-basis
rather putting fixed-terms on it.

You can read the entire report on RBI official site click me. Truckload of fodder for bank
interviews and group discussion.
Mock Questions
MCQ
1. Match the following- Committee names on one side and purpose on the other side.
2. List of recommendations given by xyz Committee. Then youve to figure out which
statements are correct- only 1 and 2, only 1,2 and 4
Civil service Mains exam
For UPSC mains, PJ Nayak important, but Gopalkrishna may be ignored.
1. Write a note on the recommendations of PJ Nayak Committee. (they asked similar
question about Damodaran Committee few years back)
2. To make public sector banks competitive and profitable, there is a need to revamp its
board governance. Examine the recommendations of PJ Nayak Committee in this regard.
3. Discuss the arguments made in favor and against the reducing of Government
shareholding in public sector banks.
Interview/ GD
1. Argument in favor and against reducing Government shareholding?
2. What steps are necessary to make public sector banks be made as profitable and
competitive as private sector banks?
3. (Bank-interview) Suggest manpower and HR reforms in public sector banks.

Tags: Rajtanil

[Disinvestment] Timeline, Methods, Pro & Anti Arguments, Modi Policy on PSU reforms
and Disinvestment
Economy1 month Ago9 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.
8.

Prologue
Disinvestment Timeline in India
Two methods of disinvestment
Retail investors participation? Hardly!
Disinvestment: arguments in favor and against
Modi-Reform1: Disinvesting NHPC, Coal India, ONGC
Modi Reform2: Revive 5 and shut down 6
Mock Questions

Prologue
Combining Disinvestment theory and current affairs topics scattered around
1.
2.
3.
4.

Akshay Dhadda and Ashok Charans entries under the erstwhile write2win competition.
Sept.Week2: Disinterment in NHPC, Coal India and ONGC
Sept. Week3: Two Methods of disinvestment- benefits and limitations.
Sept. Week4: Government to shut down 5 PSUs and revive 6.

Disinvestment Timeline in India

Disinvestment: When Government sells its shares of a PSU, to private sector company /
individual.
Privatization: when Government sells so many shares, that it no longer remains the
majority shareholder of the given PSU.

Interim budget, Government announced 20% disinvestment in selected PSUs.

Their shares were sold to Mutual funds and financial institutions (UTI, EPFO,
LIC etc.)

Government decides to sells shares to FIIs, PSU employees and banks.

1991

1992
1993

Rangarajan Committee suggests:

1. 49% disinvestment in PSUs reserved for public sector

2. 74% disinvestment in all other PSUs

1996

19982000

Government did not implement.

Disinvestment commission under GV Ramakrishna. It was a non-statutory, advisory
body (similar to UPAs NAC).
Vajpayee Government classifies PSUs into two parts
1. Strategic: arms-ammunition, railway, nuke energy etc.=> here we wont do
disinvestment
2. Non-strategic: those not in above category.=> here we will do disinvestment
in a phased manner. Hindustan Zinc, BALCO, Maruti Disinvestment taken up.
To implement above policy, Department of disinvestment setup under Finance
ministry. (first there was disinvestment ministry, then department.not going into all
ball by ball commentary)
UPA comes into power, Common Minimum program (CMP) updates disinvestment
policy

2004

Sick PSUs will be revived

No disinvestment in profit making PSUs
PSUs will get commercial autonomy

Whatever Money Government earns from selling its PSU shares- itll goto National
investment fund (NIF). Click me to read more about it.
Disinvestment remains stagnant because Left allies of the UPA Government stonewall
2005-09
everything.
UPA-2 without left parties. Government resumes disinvestment process.
2009
All PSUs can be disinvested, but upper limit: 49%
onwards
Disinvestment Method: only public offer.
2005

Chindu wanted to earn 40,000 crores via disinvestment of Indian Oil, BHEL, NHPC,
Neyveli lignite etc. but hardly managed to get ~16,000 crores. Main reasons for
#EPICFAIL:
2013-14

1. Oil ministry, mining ministry, trade unions opposed the move, files were
delayed.
2. Lukewarm response from investors because sharemarket was down due to
internal & external factors.

2014

Modi cabinet approves disinvestment in NHPC, Coal India, ONGC

6 EPICFAIL PSUs will be closed down.
5 loss making but viable PSUs will be revived.

Two methods of disinvestment

IIP
Via stock exchange
Via Institutional placement program. Directly selling
the shares to another company / institution / mutual Directly selling shares on stock exchange
fund or other large player.
Faster, needs less clearances.
SEBI requires in each PSU,
minimum 25% shares be held by
public.
Requires more clearances.
Hence Government using this
method to quickly comply with
SEBI norms.
Friendly to institutional investors (Mutual funds,
Friendly to retail investors.
pension /insurance funds etc.)
Retail investors participation? Hardly!

So, In theory, disinvestment via stock exchange = retail investors should be able to
purchase those sarkaari shares.
But, after disinvestment, the market price and issue price of the company shares start
converging.
Therefore, a retail investor cannot reap the benefit (by selling it to third party at higher
price). Hell have to wait for medium to long term before company share prices begin to
rise again.
But retail investors dont like to wait that long, hence disinvestment doesnt generate
interest of retail investors.

Solution: ETF exchange traded funds. Click me to learn more about it.
Disinvestment: arguments in favor and against
Against
In Favour
Socialist / leftist ideology: private sector
Such Government controlled units

cannot achieve equal distribution of

resources for all classes.
Private enterprises only focus on profit
maximization. They wont cater poor
people.
Therefore Government needs to control all
or some industrial sectors.

Governments dividend income will

decline. (Because theyll have less shares).
Consequently, Fiscal deficit will increase.

A survey
indicated 0.5%
retail
participation (i.e. Aam Admi investment)
in equity market.
Meaning, only Large corporates and
financial institutions will benefit from this
drive.
Itll not help in financial inclusion

cannot compete in free market

economy due to political interference
and price control mechanisms.
Ultimately more public money is
wasted in running these loss making
entities.

Whatever dividend Government

earned so far- compared to that,
Government has spent far more crores
rupees to revive these PSUs.
There is no point in throwing good
money after bad money.

Absurd logic, that just because

corporates will benefit, we shouldnt
begin disinvestment.
Government already taken plenty of
initiatives on financial inclusion front.

The funds received from disinvestment are used

to finance fiscal deficit. This is unhealthy Need amendments in FRBM act to ensure this
practise, like selling family gold to buy daily dose doesnt happen.
of desi liquor.
After disinvestment employees of PSUs
Overstaffing = One of the main
will loss their jobs
reasons why PSUs dont make
If board of directors have many private
optimum profit. At some point weve
sector experts- they may approve plans to
to swallow the bitter pill.
reduce staff strength, to increase
Besides, such employees are given
profitability.
attractive VRS offers.
Dragging the logic too far. Unlikely to happen
in todays world. CCI is always watching and
Disinvestment would lead to private monopolies
punishing the firms that try to create
monopoly or oligopoly.
Allegations that PSEs are sold cheap to preferred
That used to happen in 90s era, when
parties e.g. BALCO
Government sold shares to specific

private companies at an arbitrary price.

But, Unlikely to happen if shares
directly sold via stock exchange. +
CAG, Media very active these days.

To complete the disinvestment targets,

Government asks one PSUs to buy shares
of another PSU.
e.g. ordering LIC to buy ONGCs
Need for a clear policy on disinvestment to
sharesIski topi uske sir pe. In such
stop this practice.
cases, disinvestment doesnt decrease
Government
control
over
those
companies.

Speed of Disinvestment
Should India adopt rapid pace of disinvestment/privatization or move with a slow pace? Taking
example of disinvestment process of other countries:
Disinvestment Speed
1993: Czech Republic disinvested ~1000 state owned enterprises.
Russia did same.
Rapid speed
Results were disappointing in both the cases.
Hence rapid approach= not recommended for India

Slow speed
Middle
speed

China- after more Open Door Policy in 1978.

But speed too slow- thousands of enterprises still under Government
ownership.

Most suitable for India

Modi PSU-reform1: Disinvesting NHPC, Coal India, ONGC

Data not important except for random GK in non-UPSC exams & interviews
Approved
Org
underMinistry govt.shareholding
Issues
disinvestment
Has 20 hydroelectric power
NHPC Power
86%
11.36%
stations.

Coal
India
Ltd

coal

~90%

Labour union strike may bring

down
share
price.
So
Government maynot earn
truckload of cash from selling
these coal India shares.

Maharatna PSU
If Government clears the gas
price policy, ONGCs share
prices will go up (And after
that Government should sell
it- to earn truckload of cash).

10%

ONGC petroleum

~69%

Unable to recover dues from

electricity utility companies=>
company making huge losses.
Hence it share price wont
fetch truckload of cash to
Government.

5%

Note: in PSUs, Government owns the shares, in the name of President of India.
Modi PSU-reform2: Revive 5 and shut down 6
2014, Sep. week2: Union Government finished reviewing 11 PSUs: 5 worth savings and 6 worth
closing.
Names not important except for random GK in bank exams
6 epicfails beyond saving
1.
2.
3.
4.
5.
6.

Hindustan Photo Films

HMT Bearings
HMT Watches
HMT Chinar Watches
Hindustan Cables.
Tungabhadra Steel Products Ltd

These will be given 1000 crore rupees to give VRS to employees

then shut down operations. Total employees ~3600

5 worth saving
1. HMT Machine Tools
2. Heavy
Engineering
Corporation
3. NEPA
4. Nagaland Paper &
Pulp Co
5. Triveni Structurals

October week2: HMT watches in news, because theyve tied up with flipkart.com to sell away
the remaining stock of wrist watches.

Mock Questions
MCQs:
1. Non-UPSC exams: Trivial fact based questions- In September 2014, Government
approved closing down Which of the following companies? How many crores does
Government want to make from disinvestment?
2. CSAT: assertion-reasoning, cause consequences type. Which of the statements are
correct about disinvestment process in India / NIF etc.
Mains: Answer following in 200 words each:
1. Outline the main objectives and achievements of the policy of disinvestment in India?
[Mains 2002]
2. The Public sector undertakings have lost relevance in the post 1991 Indian economy. Do
you agree? Justify your stand.

3. Public sector undertakings in India, have often been criticized for their poor efficiency
and low profitability. Examine the reasons and suggest remedies.
Tags: shivaram
[Infrastructure] Aviation Sector: No Frills Airport, ATF-tax reforms, Predatory Pricing,
Safety Rating
Economy1 month Ago9 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. Economic Survey Cli1: Aviation basics
3. Aviation Current Affairs 2014
1. A1: US downgrades Indias aviation safety rating
2. A2: Predatory Pricing by Airlines
3. A3: AirIndia joints star alliance
4. A4: No Frills Airports
5. A5: Need for ATF tax reforms
Prologue

GS3 Syllabus: Infrastructure: Energy, Ports, Roads, Airports, And Railways etc. So,
combining new and old topics related to aviation-sector in this one page for quicker
revision.
Some of these topics not directly relevant to mains but have utility in bank MCQs and
interviews. Readers discretion advised.

Economic Survey Ch11: Aviation basics

Airport Authority of India
DGCA
PSU: miniratna category
directorate general of civil aviation
Sovereign Air traffic controller of
it is the regulatory body of civil aviation
India.
registers of civil aircrafts
Total 125 airports and 26 civil enclaves
gives license to pilots
at defence airports.
supervises gliding clubs
Manages
international
airports,
Investigates of minor accidents (so that
domestic airports, and custom airports.
MEDIA can create a BIG news out of it.)
Maintenance of cargo terminals,

passenger terminals, radars, runaways

etc.

implements Chicago Convention

How to start new airline?

FDI in Aviation
1. first get NOC from Civil Aviation
ministry
1. Foreign investors: upto 49%
2. Home ministry checks background of
2. NRI: 100% investment
individual promoters
3. FDI in cargo operations: 100%
3. Then flight clearance from DGCA
4. helicopter services: 100%
Directorate General of Civil Aviation.
New players in Indian market
Greenfield vs Brownfield
1. AirAsia (Tata 30%+ Malasian Airline
AirAsia 49% + Telestra 21%)
1. Greenfield= built from scratch on
2. Air Costa
undeveloped land.
3. Etihad (Abu Dhabi) invested 24% in
2. Brownfield= rebuilt or expanded on an
Jet Airways.
existing facilities.
4. Quickjet Cargo Airlines
5. Ligare Aviation

Greenfield airport reforms

Current policy: Greenfield airport cant be developed within 150 kms of existing airport.
Jul 2014: Civil aviation ministry says well permit, IF, existing airport unable to meet
traffic requirement.

Budget 2014: Aviation announcements

Will develop new airports in Tier I and Tier II

will Implement them via PPP / Airport Authority of India (AAI)

Aviation Current Affairs 2014 (Jan, to Sept.)

A1: US downgrades Indias aviation safety rating
Topic in news: Jan-Feb 2014

US Federal Aviation Administration (FAA)

They reduced Indias safety rating from Category #1 to Category #2; meaning were as
bogus as Ghana and Bangladesh.

Hell, even Pakistani Airlines are safer than India!

Main reasons cited

1. India doesnt have sufficient number of Flight operation inspectors.
2. Indias aviation regulator Directorate General of Civil Aviation (DGCA) does not meet
the safety standards set by ICAO. [as we saw earlier this post has become retirement
house for IAS.]
3. (conspiracy theory) America intentionally downgraded the safety rating to teach us a
lesson for the Devyani Khobragade controversy.
Consequences:

When Indian flights go to USA, their officers will do more safety checking = more time
will be wasted, inconvenience to Desi passengers.
Jet airways share prices fell down.
Domino effect: Singapores aviation authority also started inspecting Indian aircrafts.
The aviation regulators of EU, Japan, UAE may also reduce our rating leading to more
timewaste and inconvenience to passengers.

New update in September 2014 (Week2)

Indias DGCA [Directorate-General of Civil Aviation] says weve addressed those

deficiencies.
He is hopeful that in a month or two, we should move back from Category II to Category
I

A2: Predatory Pricing by Airlines

Topic in News April 2014

Interview questions:
1. What is predatory pricing: how is it good/bad for business/ economy?
2. Why is Spicejet accused of predatory pricing?
3. What has DGCA done in this regard?
What is Predatory Pricing?

Means deliberately selling product below the cost price, to eliminate competition.
Usually predatory pricing is done by firms with deep pockets (like Walmart), because
they can afford to make such temporary losses.
in short, it may appear good to customers- because products available @cheap rate
But in long term, the firm establishes monopoly and starts exploiting the same customers.

Sometimes the strategy misfires, company makes heavy losses (e.g. AirDeccan and
Kingfisher).

Why Spicejet accused of Predatory pricing?

Theyve launched a scheme Rajiv Gandhi One Rupee Air ticket

Sounds good? but there are hidden terms and conditions

1. Offer valid only if you book tickets during April 1 to 3.

2. Only one or two seats offered in each flight under One rupee scheme.

So this is both predatory pricing + misguiding customers.

Spicejet already making losses, and now theyve launched this scheme=> other aviation
companies will also be forced to launch similar schemes to stay on competition =>
everyone starts bleeding and making losses=> ultimately some get on verge of collapse
like Kingfisher= staff salary not paid, loss EMIs not paid, Bank NPA increases and so
on.

What has DGCA done?

Directorate General of Civil Aviation (DGCA) is empowered to take action against such
predatory pricing (under Aircraft rule #135)
He has ordered Spicejet to immediately stop this scheme.

A3: AirIndia joints star alliance

Topic in News: July 2014

Star Alliance, the worlds largest network of airlines. Lufthansa, Air India,
Airchina.total 27 members.
Air India latest member to join (2014, July).
These members coordinate arrival and departure times with each other => passengers
waiting time reduced.
Joint ticketing, check-in and baggage facilities => smoother and faster travel experience.

Benefits to AirIndias premium customers:

1.
2.
3.
4.

Will get frequent flyer benefits irrespective of airline chosen.

Access to more than 1,000 lounges across the global network.
increased baggage allowance
Priority boarding and baggage delivery.

A4: No Frills Airports

Topic
in
news:
Septeber
Week2,
2014
Q. Write a shortnote on features and significance of No-frills airports. 200 words.

No frills airport features:

1. Government wants air connectivity to remote / backward areas. But profitability is
always a challenge, hence private sector not interested.
2. Therefore Airport authority of India (AAI) will develop No Frills airports at such places,
with only basic safety and security features.
3. No fancy lounges with airconditoners, no aerobridges, no carousels or conveyor belts for
luggage. Single storey building without any posh glass-steel elevators.hence
operational costs will be low.
4. AAI will be able finish these airports in2-3 years, with just 85-90 crore investment in
each. Itll be able to squeeze profit even with very few passengers.
5. 2014, September Week2: Government approved no-frills airports in five cities:
Not essential to cite all places in mains:
Arunachal Pradesh 1.Tezu
Rajasthan
2.Kishangarsh, near Ajmer
Odisha
3.Jharsuguda
Karnataka
4.Hubli and (5) Belgaum
In future, Government may give sops / tax benefits to private airlines, if they operate flights here.

A5: Need for ATF tax reforms

Q.Discuss the need for reform in ATF tax structure 100 words.

Airlines spend ~50% of the revenues on Aviation turbine fuel (ATF).

State Governments levy VAT on ATF.
Rates vary across states- lowest is Andhra Pradesh (1%), while some states charge ~3035%.
Indias ATF taxes are among the highest in World.
Wilful defaulter Totally Awesome Vijay Mallya has repeatedly blamed high ATF tax for
losses in Kingfisher.
Topic in news because Union has urged the State governments to rationalize their
respective ATF taxes to a uniform level.
State Governments yet to respond. West Bengal, Chhattisgarh and Jharkhand most likely
to oppose this move.

Tags: Economic Survey 2013, Rajtanil, shivaram

[Bill Summary] Road Safety & Transport Bill 2014- salient features, provisions, penalties,
graded point system
polity1 month Ago23 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. Why need for new Road act?
2. Road Safety and Transport Bill 2014
1. #1: setup new authorities
2. #2: Reform License, permits and policies
3. #3: increase Punishments
4. #4 Graded Point System for penalties
3. Health ministrys suggestion on Road safety bill
4. Mock Questions
Why need for new Road act?
Some Disturbing Facts:

One accident every minute and one Indian dead every four minute (From such accidents)
Every year, 1.38 lakh Indians die in road accidents

Road death rate= ~17 deaths per 1 lakh population.

The Social cost of those deaths ~Rs 1 Lakh Crore.
63% of those deaths occur on National and State Highways.

Ya, but Why need new act?

1988: Motor Vehicle Act was made. It has outlived its utility because:
1. Drunk drivers murder dozens yet Taarikh pe Taarikh and bailouts. Even if convicted,
fines and jailtime too low to act as deterrent.
2. Urban areas = too many vehicles, congested roads, heavy traffic => traffic violations.
3. Corruption at both RTO-license and traffic police level.
4. Lack of effective road engineering, faulty Detailed project reports (DPRs) => more
accidents.
5. Need for road safety education and training.
The old act doesnt cover these aspects. Therefore, we need a holistic Act at par with
international acts in road sectors. After the death of Ex-Union Rural Development minister
Gopinath Munde in a road accident, Government finally woke up and began working towards a
new Act.
Road Safety and Transport Bill 2014

By Road transport and highway ministry.

This new draft bill drafted using good practices from 6 advanced countries USA,
Canada, Singapore, Japan, Germany and the UK.
Bill to be tabled in the Winter session of parliament.
lets check its salient features

#1: setup new authorities

Two new statutory bodies:
This Independent Agency will set regulations for motor
vehicle and road safety.
o Will finance road/vehicle safety programs
o Will be Accountable to Parliament.
o

1. Motor Vehicle Regulation &

Road Safety Authority of India

2. National Road Transport &

Multimodal
Coordination
Authority

To develop integrated transport systems & multi- modal

hubs.
o Will strive for feeder system and last mile connectivity.
o Thus, itll also help Make in India, by providing
o

seamless movement of goods and people across states

and across rail-road transport modes.

#2: Reform License, permits and policies

Unified biometric system to avoid duplication.
o To curb the corruption and agent-nuisance at RTO license
offices, Government will create Automated driving test.
o Then license exam work can be outsourced to private companies
o Although it remains to be seen if those private license-testing
companies will fall under RTI or will they also dodge RTI just like
IBPS (Bank exam) and Prometric (CAT exam designer)?
o

Unified
Driver
Licensing System

Unified
Vehicle
Registration System

To Facilitate Easy transfer of vehicles across states.

o Will make it difficult to evade taxes.
o

Two-tier permit system : national and intrastate permit.

o Will reduce the corruption and redtapes faced by truck transport
companies.
o

Public
passenger
Transport
Goods Transport &
National
Freight
Policy

Will create Simplified permits and single portal clearances

o Will Identify and develop freight networks
o Will Indirectly reduce inflation (due to cheaper transport cost)
o

#3: increase Punishments

List not exhaustive and exact facts not important
Causing child death
3 lakh fine + minimum 7years
Upto 50,000 fine
Diving under influence of drugs or
6 months to 1 year imprisonment
desi liquor
or both
Rash driving

License will be cancelled

(like that Child-bus driver in Kamal Hassan Movie
Hindustani)
Using vehicle in unsafe condition
1 lakh fine or 1 year jail or both
Faulty mfg. design of vehicle

Company will have to pay 5 lakh fine per vehicle.

Drunk driving

Traffic signal violated 3 times

Using mobile while driving

License will be suspended for 6 months

25,000 rupees fine | 3 months jail time | Or both
If caught again then higher fine.
15,000 fine
License cancelled for 1 month
Compulsory refresher course
Fine upto 10,000.
License cancelled for 1 month
Compulsory refresher course

#4 Graded Point System for penalties

When you do shopping with credit card. Youre given points, later you can redeem
those points for discount/gifts etc.
Similar concept in traffic violation, called Graded point system

List not exhaustive

Offense
Using vehicle in unsafe condition
no seat belt

Using vehicles without registration

violating traffic signals
desi liquor influence

Penalty Points
2 points each

3 points each

Penalty points remain in your account for 3 years.

If you earn total 12 points, your license will be suspended for a year.
If you get 12 points for second time then license will be suspended for five years.

Overall Vision of the Bill:

1. Reduce road accident deaths by 2 lakhs in next five years- via those hefty fines and
jailtime.
2. Improve GDP by 4% because of safe road transport
3. Create 10 lakh new jobs (via those outsourced license tests, and indirectly via GDP
improvement and subsequent investment in road-transport sector).
Health ministrys suggestion on Road safety bill
1.
2.
3.
4.
5.
6.

long distance drivers must take mandatory rest during the course of their journey.
psychiatric evaluation of heavy vehicle drivers.
heavy penalty for drunk driving and use of mobile phones while driving
Enforcement low beam headlights and horn related rules
Drivers should be asked to pledge organ donation when they apply for license.
Regular medical check-up for drivers

7. Properly designed pedestrian crossings and speed breakers

8. Provide ambulances along highways
9. Dont sell petrol unless two-wheeler driver is wearing helmats.
Criticism by Truck lobby
Truck Union did not like this bill. NOT ONE BIT. They give following reasons:
1. Fines are too high. Will promote even more corruption. e.g. Driver will offer 1000/- to
cop to let him go, instead of paying 2500 under the law. And Cop will be more willing,
because 1000 rupees.
2. Bad roads, traffic congestion and low quality vehicle-technology lead to accidents.
Higher fines are not solution to accident problem, UNLESS youre going to fix the stupid
roads first.
3. Truck industry already bleeding due to low margin and heavy costs of operation.
4. By and large, truck drivers follow traffic rules. The main culprits are those rich-brats with
BMWs- they should be made to pay heavy fines.
Mock Questions
CSAT Prelim: which of the given is a statutory body? Which of the following are the provisions
under Road Safety bill 2014 -they will give you some of the good sounding suggestions which
are not part of the bill (e.g. mandatory sleep for truckdrivers), youve to eliminate accordingly.
Mains
1. Write a note on the salient features of the draft bill on Motor vehicles and suggest further
amendments in it. 200 words.
2. Discuss the need for the National Road Policy? What are the reasons for high accident
deaths in India? How does the draft Motor Vehicle act address those issues? 200 words.
Tags: Laws, shivaram
[Parliament] Leader of Opposition (LoP) appointment controversy, 10% Rule,
Consequences
polity1 month Ago43 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. Leader of Opposition (LoP) in India Parliament

2.
3.
4.
5.

10% rule: episodes in past?

LoP and Appointment Committees
Arguments: Government vs Opposition
Mock questions

Leader of Opposition (LoP) in India Parliament

1977: The leaders of opposition in Lok Sabha and Rajya Sabha were given statutory
recognition.
They provides constructive criticism of the govt. policies.
Gets same salaries and allowances that are equivalent to a Cabinet minister paid by the
govt.
To become leader of opposition, a political party needs atleast 10% strength of the house.

House
total 10% seat means Who is the LoP?
Rajya Sabha 245 25
Ghulam Nabi Azad. Because Congress got 67 seats.
Lok Sabha 543 55
None because Congi 44, AIADMK 37.

Congress got only 44 seats in Lok Sabha. Even if you count the whole UPA alliance- its
60 members.
But LoP is given only to party leader and not to alliance leader.
Therefore, neither congress nor the UPA leader can be declared as the leader of
opposition in Lok Sabha.

10% rule: episodes in past?

Between
why
1952- 1969 (some newspapers
Congress had large majority
say 1952-77)
1980-84
Same
TDP leader was made Leader of opposition, although TDP had
1984-89
3 seats less than 10% rule.

Congress citing that TDP-episode to stake claims over LoP seat in 2014.
Final judge: UPSC Speaker of Lok Sabha.
She said No party will get LoP seat this time, because none has won the required 55
seats.

LoP and Appointment Committees

LoP required in following Committees

PM + Home minister + leader of opposition in LS
Although 2003 CVC act says, if no LoP then leader of single largest party can be
CVC
made part of the Committee.
But same act also says if vacancy in Committee, still appointment can be done.

CIC

NHRC

Lokpal

NJAC

PM + Union minister + Leader of opposition in LS

RTI Act says leader of the single largest party in the Lok Sabha. (Doesnt make
10% requirement).
PM+ Home minister + speaker of LS + dept. chair of RS + leader of Opposition
of LS + leader of Opposition of RS
As per Protection of Human rights act 1993.- if vacancy in Committee, still
appointment can be done.
PM + CJI +speaker of LS + leader of opposition in LS + eminent jurist
Even here, if vacancy in Committee, still appointment can be made as per Lokpal
Act 2013.
CJI +2 SC judges + law minister + 2 eminent jurist
2 eminent jurist would be recommended by (PM + CJI + leader of opposition in
LS)

Arguments: Government vs Opposition?

Government
Congi
GV Mavalankar,First Lok Sabha
speaker- he said main opposition

partys strength must equal the quorum

Since quorum rule =10% of total
membership

Therefore, LoP must be from party

with minimum 10% seats.
This rule is incorporated in Direction
121(1) in Parliament (facilities) act
1998.

Theyre citing Parliament Act of 1977Norms regarding the salary allowances of

leader of Opposition.
It says leader of single largest party in
the opposition would get the LoP post.
(So there is no 10% requirement
mentioned in it!)

Earlier even during Congi-raj when LoP is necessary to ensure public confidence in
they had majority, they did not give candidate selection in the high posts.

LoP seats to <10% walla (Except

TDP).
Since Speaker has given ruling, the
matter is closed.

Side notes: 2nd ARC even said setup a Civil service Board- for transfer posting of top babus.
The members of this Committee, will be selected by PM and LoP.
Mock questions

CSAT Prelim: Theyll give a list and ask you to find which members are part of ___
selection Committee. For example- Lokpal selection Committee includes which of the
following membersOnly 1 and 2, Only 1,3 and 4. And so on.
For lower level exams, GK type question- who is the LoP in Rajya Sabha? Who was the
first speaker of Lok Sabha?

Mains (GS2)
1. Discuss the origin of the 10% strength rule to become Leader of Opposition in Indian
Parliament. 100 words.
2. Discussion the importance of the Leader of Opposition in Indian polity. 200 words
3. Democratic government demands not only a parliamentary majority but also a
parliamentary minority. Elaborate in 200 words.
Tags: Elections, Rajtanil
[Federalism] Finance Commission: States demand for 50% share; Delimitation in
Telangana & Andhra Pradesh
polity1 month Ago13 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. Prologue
2. P1: Finance Commission (FC)
1. Fourteenth Finance commission & fifty percent Tax sharing
2. Why do states want 50% share?
3. P2: Delimitation in Telangana and Andhra Pradesh
4. Mock Questions

Prologue
Following topics combined Together
1. Frontline July 2014 articles: demands of states to increase sharing in central taxes
2. Sep 2014, Week2: Telangana wants 50% share from Central taxes
3. Sep 2014, Week2: Delimitation exercise in Telangana and Andhra Pradesh
Finance Commission (FC)
13th FC
14th FC
Chairman Vijay Kelkar
Chairman YV Reddy
Recommendations Effective for
2015-20 (i.e. from 1st April 2015)
2010-15
Gave states 32% share in Central Yet to give report, but some states want 50%. Hence topic
taxes
in news.
Basic Structure functions- read from Laxmikanth chapter 41.

FC has 4 people
FC looks into 4 tasks
1. Distribution of taxes
2. Grant in aid principles
3. Augment state Consolidate fund, to help local governance bodies
4. Any other matters referred by President.

Function no.1 to 3 are cliched,hence UPSC examiner usually ask 4th function (that 14th FC will
look into which of the given subjects? A|B|C|D.
14th FC will look of following subjects, referred by President:
1.
2.
3.
4.
5.
6.

Pricing of public utilities (electricity, water) in independent manner?

Review fiscal deficit and subsidies of both Union and states. How to reduce them?
Disinvestment
GST- how to implement?
Telangana Andhra Pradesh- resource distribution
funds for disaster Management, Climate change, sustainable Development

Fourteenth Finance commission & fifty percent Tax sharing

13th Finance Commission had given 32% share in Central tax to States. As expected, states want
more share from 14th Commission.
Demands to 14th Finance commission (2015-2020)
50% from central taxes e.g. Madhya Pradesh, Telangana
Union should also share cash earned in telecom spectrum auction, cess
Most states
and surcharges.

ErstwhileUnited Andhra

Telangana

39% (and not 50%) Because at that time, Congi Government @both
union and state.
Hence they did not want to create more burden on union. That way,
union would left with more money to launch schemes named after you
know who.
50% from central taxes.
Finance commission is deciding allotment based on 1971 census data.

We wantem to use Census 2011 data.

Note: 50% doesnt mean Telangana individually wants 50% of the whole Union taxes. Theyre
demanding 50% vertical distribution.

Vertical distribution
Horizontal
distribution

Out of Central taxes, TOTAL 50% money be allotted to all states.

But FC will decide
From those 50%, which state will get how much money?
Finance commission will decide that as well.

Why do states want 50% share?

32% share not enough to meet non-plan expenditure of the states. Example
1. staff salary and pension to teachers, doctors, police
2. Public roads and buildings maintenance
3. Irrigation and flood control etc.

Adding insult to the injury, Union wants the States to bring down Effective revenue
deficit to 0% under the FRBM act.
Therefore, most states are forced to reduce statePSC recruitment. Many jobs are
outsourced, staff hired on non-permanent basis or fixed salaries, leading to more court
litigations and protests. (e.g. teachers recruitment in Gujarat, Kashmir, Bihar,
everywhere.)
During high GDP growth years, unions tax collection increased, yet theyre not giving
out more money in non-plan grants.
Over the years, centrally sponsored schemes (CSS) have increased. And percentage wise,
states are required to share more and more burden e.g. Sarva shiksha Abhiyan, states
share increased from 15% to 40%
Under 7th Schedule, States are given subjects which dont fetch truckload of revenue.
(compared to Union subjects such as IT, Customs, Excise)

Some reforms in Central schemes

All the money will be directly given to states (and not to DRDA and jholaachhap NGOs)
States some flexibility in implementing CSS according to their needs.

For More on that, refer to economic survey ch13 summaries.

P2: Delimitation in Telangana and Andhra Pradesh

What is Delimitation?

Article 82: After every Census, Parliament enacts a Delimitation commission, and Union
Government appoints that commission.
This Commission demarcates the boundaries of territorial Constituencies.
Main consequence is: the SC/ST Constituencies get altered.
For example Ram Vilas Paswan used to contest from Hajipur LokSabha seat (reserved
for SC), but after 2002s delimitation exercise, it got de-reserved. While in some other
area, the un-reserved Constituency area may get split or merged with another reserve
Constituency.

Q.Does it change total no. of LokSabha and Rajya Sabha seats?

Ans. No. Because as per a Constitution amendment, total no. of Lok Sabha seats and Vidhan
Sabha seats will remain fixed as per 1971 Census. [Till the census after 2026].
Q.Who are exempted from this exercise?
Ans. J&K and Union territories.
Q. Composition of Delimitation commission?

The last Delimitation commission was setup in 2002

Chairman- retired CJI
CEC and State Election commissioners as Ex-officio members.
For the given state, Delimitation commission takes help from total 10 associate
members. But theyve no voting rights in the meeting:

5 MP from given state, nominated by LokSabha speaker

5 MLA from given state, nominated by Vidhan Sabha speaker.
Delimitation Commissions orders cannot be questioned in any court. (pretty awesome huh!)
But these order get implemented from the date which president decides.
Its report is put on the table of LokSabha and Vidhan Sabha- but they cannot make any
modifications in it.
Why delimitation in Andhra Pradesh and Telangana?

As per Andhra Pradesh State reorganization act 2014.

Vidhan Sabha seats Lok Sabha Seats
Andhra Pradesh 225
25
Telangana
153
17

But to implement this, someone needs to draw boundaries of those Constituencies and
decide which of them will be reserved for SC/ST.
Therefore, Reorganization act mandates EC to setup a delimitation Committee.
Jan 2015: EC and Delimitation commission will become active in this work.
2019 elections will be done according to its verdict.
Experts believe No. of SC MLA Constituencies will increase in both states assemblies
(Because of new Census 2011 data).
BUT No change in the number of SC and ST Lok Sabha seats in both the States.
(Because its fixed till 2026)
Anyways, right now EC too busy with state assembly elections at Haryana and
Maharashtra (October), and later at J&K & Jharkhand (December). Hence this project is
not in their high-priority list.

Mock Questions
CSAT Prelim: usually one MCQ with multiple statements about structure function of these
bodies then youre asked to find correct/incorrect e.g. only 1 and 2 right, only 1, 2 and 3 right.
(Mains- GS2) Answer following in 100 words each
1. How are electoral constituencies delimited for Parliamentary elections in India? (1996
Mains)
2. Describe the methods of delimiting constituencies for parliamentary elections in India.
(2003 Mains)
(Mains- GS2) Answer following in 200 words each
1. Certain states have requested Finance commission to provide 50% allotment from Union
taxes. Discuss the rationale behind their demand.
2. What do you know about 14th Finance Commission? (they asked identical question in
Mains 2000, for 11th FC)
3. What is a Finance Commission? Discuss the main functions of the State Finance
Commission. (2004 Mains)
4. Distinguish between the status, organization and specific roles of the Planning
Commission and the Finance Commission in India.(Main 1989)

Tags: Bodies, Rajtanil

[Women Rights] Nirbhaya Centres, Victim friendly Courts &IPC 376-E: Death Penalty for
Rapists
polity1 month Ago7 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. Prologue
2. W1: Nirbhaya Centres
1. Timeline of events
2. Salient features of Nirbhaya centres:
3. Criticism against Nirbhya Centre project
3. W2: Courts vs Rape victims
1. Sakshi guidelines not followed
2. Loose Character
3. Quality of a good judge
4. IPC 376-E: Death Penalty for Rapists vs Jholachhap NGOs
5. Mock Questions
Prologue

Relevance? General Studies (Mains) Paper2: Laws, institutions and Bodies constituted
for the protection and betterment of vulnerable sections (which includes women and
children).
For above section, Im combining three topics from current affairs:

1. September week2: Nirbhya Centres

2. September Week3: Making Indian courts rape-victim friendly
3. April 2014: Jholachhap NGOs oppose Death penalty in Shakti mill rape case.
W1: Nirbhaya Centres
Timeline of events
2012,
Delhi Gangrape
December
Government setup Nirbhaya fund with 1000 crores, to support women
2013,
safety projects such as CCTV @public places, GPS-Emergency buttons in
Budget
public vehicles, toll free numbers and defense classes.

2014, July

2014,
September

Fund is non-lapsable. Although hardly any money spent so far.

Government announced setting up 660 rape crisis centres across India,

called Nirbhaya centres
Funding from Ministry of Women and Child Development.
Although not to totally new reform in the world. Such centres have been
setup in Malaysia, Bangladesh, Thailand since mid 90s.

Opened in Puducherry and Uttar Pradesh.

Salient features of Nirbhaya centres:

Dedicated one-stop location for women in crisis.

For Victims of all type of absues: rape, molestation, domestic violence.
Has trained staff to provide
Food, clothes and temporary shelter.
Medical assistance, Psycho-social support and counselling
Retired police officer at every center. Hell help the victim lodge FIR and record
statements.
Panel of Lawyers in each centre, to give legal aid.
Video conferencing (For court hearings)

Criticism against Nirbhya Centre project

1. Government setting up centres only at district level. Poor / abandoned women cannot
afford to travel village to district HQ. Atleast there should be provision for travel
assistance/ volunteers at village level.
2. Earlier Domestic violence Act 2005, provided for Protection officers- but theyre not
functioning properly in every state. So, what are the chances of these retired police
officers helping rape victims?
3. No special arrangements for child victims.
4. Instead of setting such new centres, Government should revamp the local thana and
primary health centres to help victims.
W2: Courts vs Rape victims
Summary of a Hindu column- on How to make Indian courts friendly to victims of sex-abuse?
Sakshi guidelines not followed

2004: Sakshi Guidelines, Supreme court ordered following

In the case of Child sex abuse, the defence lawyer has to first give written list of
questions to judge. Then Judge will decide which questions are relevant to the case, and
permit defense lawyer to ask them to victim. But often these guidelines are ignored.
Videotaped interview of childs testimony. No need for child to court.
During hearing, Judge should give breaks to child as and when required.

Additionally

During the hearing, victim should not made to face the accused
There should be a screen or a one-way mirror or video conferencing to shield her.
Sessions courts are formidable and intimidating spaces. There should be special rooms to
conduct hearing on child victims.

Loose Character

and most importantly, need to debar such lawyers

Even if there is material record to show that the victim was habituated to sexual
intercourse, Judge should not make inference like the victim is a girl of loose moral
character.
Because it casts a lifelong stigma on the victim. Besides, it is the accused and not the
victim of sex crime who is facing the trial.
1996: Supreme court did not permit any questions regarding the victims past sexual
history.

Quality of a good judge

Only lady judges should preside over rape and child abuse cases.
But its a mistake to presume that all lady judges are equally sensitive to victims. Biology
alone doesnt determine sensitivity.
Judge should be confident and well versed in case laws. If judge lacks in confidence,
hell be cowed down intimidating and time-waste tactics of defence lawyers.
Often, the poor victims cannot afford to travel repeatedly for the hearings. Judge should
ensure that Victims deposition is finished on the same day- even if it means sitting
beyond court hours.
Some judges even permit victim to wait in his chamber. That way defense lawyer and his
lukhkhaa-parties cannot intimidate her indirectly in the court premises. Such small
gestures, help reducing victims trauma.
In the hostile court environment, Victim looks upto the Judge to protect her. Therefore, A
judge is duty-bound to maintain the delicate balance between: right to fair trial of the
accused vs right to dignity of the victim

W3: IPC 376-E: Death Penalty for Rapists vs Jholachhap NGOs

(Interview) What do you know about section 376/E in the IPC? Do you agree with the
demands by certain (jholachhap) activists that it is retributive in nature and therefore
should be repealed?
Background:

After the Nirbhaya case in Dec 2012, government forms Justice Verma Committee.
Based on his recommendation, Criminal laws amendment bill 2013 tabled in parliament
and passed by both houses.
April 2013: President signed.

According to these amendments,

Certain new offenses included. you can read list on PRSIndia click me

Penalties increased in existing laws (IPC, SC-ST, IT act etc.) you can read the list on
PRSIndia: click me
One of them is IPC Section 376(E). It provides maximum death penalty for repeat
offence of rape.

Present controversy:

July 2013: A call centre employee raped in Shakti mills.

August 2013: photojournalist raped in Shakti mills by the same criminals.
April 2014: Mumbai session courts awards death penalty to the three rapists- because
they were repeat offenders under 376/E.

pro 376-E argument

anti (=no death penalty)

(Mrunal this is height of stupidity but have to
write).The Jholachhap NGOs argue that 376-E
applies only after rapist is convicted in one offense,
Death penalty prevent recidivism
spends 7-10 years in jail, then comes out rapes
(=when criminal repeats offense
again.only then he can be called repeat offender
after coming out of jail)
under 376E and get death penalty.
Hence 376/E is wrongly applied in this case because
both crimes were done in same year.
The three men have already been
sentenced to life imprisonment in
the telephone operators gang rape
case. after that judge heart the
photojournalist case=>376E applies.
Shakti mills
criminals
were
emboldened since police did not
catch them in previous call-center
case. This case definitely deserves
application of 376/E.

Rather than 376/E, these criminals should be given

life sentence for gang rape under 376D.

Originally, Justice JS Verma Committee had

recommended only maximum life imprisonment in
Section 376E amendment.
But succumbing to public and media pressure,
government replaced it with death penalty.

The repetition of crime by accused

itself can be seen as repetition of Death sentence is not going to diminish violence against
defying law, if he would not been women which is deeply rooted in unequal and
caught, he would have continue with discriminatory practices.
his heinous acts.
There is no certainty that an accused 376E prevents any possibility of improvement /reform of
will be reformed after passing the accused.

sentence.
Death penalty is meant to show that
respect of women is important in
our society, where rape is not just
another crime in the law-book.
Mock Questions
(GS2) Comment on following statements, 200 words each
1.

To help the women in crisis, much needs to be done beyond piecemeal gestures such as
Nirbhaya fund and Nirbhaya centres.
2. Laws and institutional arrangements alone are insufficient to reduce the trauma of the
victims of sex-abuse.
Write Essay on following topics:
1. Todays victims are tomorrows perpetrators hidden in plain sight. (UNICEF- in context
that child victims of extreme violence in their early years, end up as perpetrators
themselves.)
2. When women are safe, nations are safe
3. Has Indian Society has become silent to injustices?
4. Can girl-child grow without fear in India?
5. Only sustained and systematic efforts in families, communities and in society can end
violence against women.
Tags: Rajtanil, Rights-Issues
[Women Rights] Essay Fodder: Emma Watson on Gender equality, Views of new NCW
Chief
polity1 month Ago4 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. Prologue
2. Emma Watson: Gender equality
1. What is Feminism?
2. Gender Equality: What and Why?
3. Men too face Gender inequality

4. Gender stereotypes
3. Views of New NCW chief:
4. Mock Questions
Prologue
Combining two topics from current affairs- mainly for Essay fodder.

September week2: Emma Watson speech on Gender equality

October Week1: Views of new NCW chairman

Emma Watson: Gender equality

Emma Watson, former star of Harry Potter movie series and now UN women global goodwill
ambassador. Her speech for UN campaign HeForShe to end gender inequality.

What is Feminism?

Feminism by definition is the belief that men and women should have equal rights and
opportunities.

It is the theory of political, economic and social equality of the sexes.

It doesnt mean men are inferior.
A Feminist doesnt mean aggressive, man hater person.

Gender Equality: What and Why?

Gender Equality is achieved when
1. Women are paid equally as men, and given equal social respect.
2. Women are allowed to take decision about themselves, their education, career and family
planning.
3. Women are allowed to participate in nations policy making.
Such, gender equality will bring more true and complete version of human being. BUT, no
country in the world, has achieved gender equality.

The reform process is so slow in Africa, itd take 2086 before all African girls get
enrolled in secondary school.
Gender sensitiveness and gender-equality needs equal participation from men. It cant be
achieved by creating awareness among women alone.
Men should join the campaign for gender inequality, so that their mothers, sisters and
daughters can live free from prejudice.

Men too face Gender inequality

Issue of Gender equality is not just confined to women but its issue of male community as well.
Men do not enjoy gender equality either. For example:

Father is less valued as a parent than mother in the society.

Men prefer to suffer rather to ask for help for fear it will make him less of man
Men are fragile and insecure by a distorted sense of male success.
Higher suicide rate in men

Gender stereotypes
Gender Sterotypes put restriction on both men and women. For example

Girls are prevented to join sports and boys are prevented to express their feelings
Liberating men from such stereotypes can bring freedom to women.
If men dont have to be aggressive in order to be accepted, women wont feel compelled
to be submissive.
Both men and women should feel free to be sensitive.

Both men and women should feel free to be strong

Gender should be seen as a spectrum instead of two sets of opposing ideals.
We should stop defining each other by what we are not, and start defining ourselves by
who we are.

Sidenote: India has contributed $1 million to UN womens body. Official name: United Nations
Entity for Gender Equality and the Empowerment of Women. India founding member.
Contributed 1 billion$ for its 2014 budget
Views of New NCW chief:
Lalitha Kumaramangalam, Chairperson of the National Commission for Women (NCW) gave an
interview,
providing
some
more
fodder
on
the
same
topic:
About Love Jihad

It is a social problem and not religious one. Intermarriages are becoming common and
society is bound to resist any such change.
There are a little over 800 women for 1,000 men. Extrapolate that to the countrys
population. There are just not enough women. Hence we see cases of one woman being
married off to more than one man and bride-buying in Punjab, Haryana and even
northern Uttar Pradesh, irrespective of castes and religions

About
Khap
Panchayats:
Even if the Courts, Police, and NCW protect a couple seeking help from Khap Panchayat, they
would still be on the run for the rest of their lives because society is not ready to change its
mindset.
Violence

Violence against women, is not confined to rape and beating at home.

Malnutrition, lewd SMSs, cybercrimes, deprivation, no sanitation facilities in schools,
along highways, these are all examples of violence too

Her wishes:

That Womens Reservation Bill would be tabled in the winter session of Parliament and
Nirbhaya fund is utilized properly.
That NCW be given more powers to enforce its recommendations.

Mock Questions
Write essay on following topics

1. The gender equality will bring more true and complete version of human being
2. Daughter aversion. (Context- deep seated patriarchal mindsets leading to the preference
for sons over daughters.)
3. Not only women but men also need to participate on an equal footing in gender justice.
4. Healthy mothers and healthy children are crucial for India to realize the demographic
dividend. (Melinda Gates)
5. The promise of women empowerment is hollow without breaking away from gender
stereotypes first.
6. Gender is a matter of culture without which either a man or a woman cannot lead a
harmonious life.
Tags: Rajtanil, Rights-Issues
[Internal Security] Maoist Surrenders, 100 Days of Home ministry
polity1 month Ago12 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. Prologue
2. Maoists facing Human Resource crisis
1. Why Maoists surrender
2. Problems in Maoist Surrender scheme
1. Fake surrenders
2. Sudden Change of heart? hard to believe!
3. Too old to get re-skilled
3. Suggestions
3. Home Ministry: 100 days reforms
1. Maritime security
2. Maoism/LWE
3. Border security
4. Police reforms
5. Online visa
Prologue
In September Current Affairs- Two topics related to the internal security topic in Gereral
Studies Mains paper 2 and interviews.
Maoists facing Human Resource crisis

2013 and 2014: Maoist central Committee admitted their cadres deserting in large
numbers, theyre unable to recruit new cadres. While CRPF deployment size has
increased.
2014 (till August) 260 Maoists surrendered.
It proves their rank and file is getting disillusion about the whole idea of capturing power
through violence.

Why Maoists surrendering?

1. More than 3 decades of struggle, yet Maoists have made no tangible results. Some of
them simply fedup with jungle life.
2. Theyve indiscriminately killed villagers, wantonly destroyed road, school, panchyat and
telecom infrastructure. Theyre unable to charm teenagers with revolutionary songs and
dance to join the gang.
3. For any revolution, peoples support is the cornerstone but Maoists are fast loosing that
ground.
4. Many leaders joined the gang at an impressionable teenage years. But now persuasion
from police, village elders, seeing the fast pace of urban Development, age of mobileinternet, theyre slowly getting de-brainwashed from Maoist ideology. .
5. Maoist leaders sexually exploit women cadres.
6. Maoist Lovebirds not allowed to get married unless they undergo vasectomy. Because
they dalam has to move fast through jungles, pregnant women and infants seen as
liability.
7. Regionalism has crept into their system as well. Maoist leaders in Jharkhand and
Chhattisgarh resent the arm-chair leaders from Andhra Pradesh dictating everything in
the organization and enjoy 5-star lifestyle in the jungles of Junglemahal.
8. Union and State Governments have announced very lucrative Surrender and
rehabilitation scheme (S &R) to maoists who surrender, especially with weapons.
9. Theyre paid money for weapon surrendered, loans and vocational training to start a new
life and monthly stipend for the first few years.
10. Latest initiative: All India services officers (IAS, IPS and IFoS) from 8 Maoist affected
states will join mid-career training in Chhattisgarh Academy of Administration. Their
mutual experience sharing will further aid in the fight against Maoists.
Surrender scheme: Criticism
Fake surrenders

At some areas, Policemen forcing innocent tribal youths to make fake-surrenders- to win
praise from seniors and perhaps to fullfil surrender quota allotted to their station.

Police trying to play tribal vs non-tribal divide amongst Maoist cadres. But in long term it
may hurt the social-harmony in tribal areas.

Sudden Change of heart? hard to believe!

The top maoist leaders have spent their youthlife terrorizing villagers and murdering
policemen. So, its hard to believe suddenly one day they had change of heart and want to
start a new life! They must be punished for those crimes.
Consider this 45 years old Maoist leader- Gudsa Usendi. He was the mastermind of
2013s Jitan Ghati massacre, killed ~30 people, including Congress leader Mahendra
Karma of Chhattisgarh.

Top Maoist Leader Gudsa Usendi surrenders with wife

January 2014: he surrenders with his wife. Most probably because Chhattisgarh forces
would kill him in encounter others.
Curiously, his area of operation =Chhattisgarh but he surrendered in Andhra Pradesh
where Surrender-rehab package is higher.

Too old to get re-skilled

Senior Maoist leaders surrendering due to age and deteriorating health hence unable to
live hide in jungle areas. So, theyre getting a VRS at public money.
Such old men cant be re-skilled, unlike a 18-27 years old youngman. So they become
local bahubali and join politics- thus society continues to be harmed.
Some of them may pretend to live civilian life but continue to act as city-spy, recruiter
and PR agency of their jungle gang.

Suggestions

Government must do psycho-analysis or intellectual-sifting of such people. Unless their

surrender leads to great damage to maoist organization, they should not be given this
VRS package.
Government must not become complacent. This opportunity must be seized to improve
infrastructure and reduce socio-economic gap on those red-corridor areas, and liberate
more jungles from Maoist control. Then Maoist movement will automatically fail
forever.

Home Ministry: 100 days reforms

Summary of the reforms initiated by Home Affairs ministry in 100 days, after Modi became PM.
Maritime security

3 States: Gujarat, Andhra Pradesh and West Bengal have completed Colour Coding of
fishing vessels.
Color coding will help coastal police, coast guard and Navy in identifying root and origin
of and boat

They can also differentiate fishing vessels from neighboring states and foreign vessels

Boat owner has to bear the color cost. State marine fisheries dept. oversees the project

Maoism/LWE

An Integrated Action Plan to appeal the Maoists and militants to lay down arms.
BSF and SSB will raise two battalions to rehabilitate such militants, who lay down arms.
Well erect >2000 mobile phone towers in the Maoist affected areas.

Border security

Environment Ministry has exempted all Border Infrastructure Projects within a 100
kilometers periphery of the International Borders from Environmental Clearance. This
will speed up the process of modernizing border fences, outposts and infrastructure.
Promise to implement world class Border Infrastructure Projects

Police reforms:

All States asked to achieve gender equality in police force- ensure 33% police posts are
filled up with women [up to the rank of Sub-Inspector]
Initiated a Police Reforms & Modernization programme, and increased budget allocation
for it.

Online visa

Online Visa Application System for total 152 missions in various countries.
MHA has started Visa on Arrival facility at 9 airports- to give boost to tourism.
Taskforce setup to solve visa-problems of (Hindu) minorities in Pakistan and Bangladesh,
when they visit India.

Tags: Internal-Security, Rajtanil

[Modi Diplomacy] Part 4/4: Summit Style diplomacy with Japan, China, USAachievements and limitations
Diplomacy1 month Ago13 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. Summit-style diplomacy
1. Strategic relations
2. Trade & investment
3. Infrastructure
4. Railways
5. Transport corridors
6. Nuke Energy
7. Environment and disaster Management
8. Space science public health
9. Culture tourism
3. Limitations of Summit Style diplomacy

Prologue
So far weve covered three meetings of Modi with
1.
2.
3.
4.

Japan- PM Shinzo Abe

China- President Xi Jinping
USA- President Barack Obama
Fourth and last part- just a recap cum quick revision table of above three parts.

Summit-style diplomacy
Meaning, Leaders of two countries, meet face to face, to resolve bilateral issues.
Benefits of Summit style diplomacy
1. Generally, International conflicts arise due to non-transparency, suspicion and trustdeficit.
2. But, when two leaders meet face to face, it allows personalization of relationship, adds
warmth between two nations, creates positive atmosphere ahd reduces tensions and
misunderstandings.
3. Easier to convey issues face to face, behind the closed doors.
On that parameter, lets check progress made by meeting the leaders of Japan, China and USA.
Ive not written all the agreements here, just those easy to memorize.
Strategic relations
Topic
mantra

Japan
Tokyo
declaration

gang membership to
NSG,
MTCR,
yes
Wassenaar,
Australia
group
disarmament
yes
Support
UNSC
yes
permanent membership
Terrorism

China
Inch towards miles

USA
Chalein saath, saath: Forward
together we go

yes

yes

yes

yes

yes

denounce it in zero
all forms
against it

tolerance

disable LeT, JeM, Dcompany, Al-Qaeda and

Haqqani network

maritime- anti piracy,

freedom of navigation, yes
narcotics

yes

border issues

will clear the LAC

NA
matter soon.

monitor
returning
Iraq/Syria

NA
civilians
from silent

exercise

intel sharing for ISIS

Malabar
Naval
ex.
upgraded
help setup Defense univ.

yes

silent

may
Malabar
regularly

join

want stable Afghanistan yes

yes
asked
N.Korea
to
yes

denuclearize
japan to sell USdefense trade
2
amphibian
aircraft

yes
Joint
army
exercise.
Navy-airforce
ex. soon.

yes
yes
Defense
cooperation
extended for 10 years.

pact

Trade & investment

Topic

Japan

investment
Billion USD

import-export

China
35
double FDI in 5
years
20
Japan plus team
in PMO

41

China will facilitate entry of Bilateral trade to be

India will export rareIndian goods to decrease increased from $100 to
earth chloride
trade deficit
$500 billion.

trade
RCEP collaboration
agreements
invited
for
Yes
make in India
Infrastructure

USA

collaborate for Doha round

Will sort out TFA mess.

Yes

Yes

Japan

China
50 billion yen loan to
IIFCL
Industrial cities in Guj,
Maharashtra, UP and
MP.

USA
Two
industrial
parks in Guj +
Maharashtra
sister pacts with
Abad and Gujarat

USA will help in 3 smart

cities- Allahabad, Ajmer and
Vishakhapatnam

Railways
Japan

China
bullet train AbadMumbai
feasibility
study
Metro between Gurgaon
and Bawal
Dholera
airport
+
Alaang ship breaking

USA
train 100 Indians for
heavy haul transport
Rail university
Chennai-Bang-Mysore
speed to 160 kmph
High speed rail projectpilot studies.

USA to share
practices
in
Management

best
rail

Transport corridors
Japan

China
will
finish
existing
industrial corridors in
India

BCIM corridor: agreed to

move forward
Maritime silk road: Modi
says not yet.

USA
USA invited us to

New silk road

India-Pacific
Economic corridor

Nuke Energy
Japan

China

USA

speedup
the
consultation
begin New contact group setup, to sort the nuke
joint LNG procurement will
liability issue.
clean coal technology consultation
solar parks @Rajasthan

Environment and disaster Management

Japan

China
Ganga cleaning (all
three agreed)
desalination @Gujarat
Jap to host disaster
Management summit

USA
CBDR
Hydrological
data
sharing for floods.

$1 billion credit line to

import such renewable
energy products in India

Space science public health

Topic

Japan

China

USA
Ebola alliance
India pledges 12 million
USD
Vaccine action Program
for dengue, malaria, TB.

healthcarescience

Space

science fellowship
Jap
volunteer
just bolbachchan
nurses in Mizoram

applauded
via asia-pacific regional
mission
as
agency
achievement.

Mars
Asias NISAR mission 2021

Culture tourism
Japan

China

Kyoto Varanasi pact.

JENESYS 2.0 for youth
exchange

USA
visit India year in China
and then vice versa
Hiuen Tsang tourist circuit
new route for Kailash
Mansarowar
joint production of movies
exchange 200 youth per
year
language teachers

2015: Visa on arrival

for US citizens

Limitations of Summit Style diplomacy

1. Few hours of meeting between two leaders, alone cannot solve intrinsic disputes.
2. It requires lot of background homework and collaboration between ministerial staff,
defence heads and experts from think tank.

3. As such Modi meetings were mostly successful in Nepal, Japan, Australia, China and
USA. However, some issues unsolved, for example:
Unresolved issues / at most lip-service
Japan Nuclear deal
Trade deficit. It remains to be seen when and how China actually facilitates entry
of Indian goods in their market.
Border dispute: although both agreed to clarify LAC, but immediate escalations
China
did not stop- Chinese soldiers kept encroaching Chumar region during the same
period.

USA

NSA-spying. Internet governance.

Trans-pacific partnership (TPP) and Trade in services agreement (TiSA) exclude
India.
Pakistans role in Afghanistan and terrorism.
Special 301 report, IPR, Drug patent rights.
WTO-Trade facilitation agreement
H1B visa, Totalization pact

Overall:
Summit level diplomacy can help in creating a conducive environment at beginning. But longterm vision and follow up action needed to solve long term issues.
Tags: IR-Modi, Rajtanil
[Modi Diplomacy] Part 3/4: USA Visit- Strategic, Economic, Energy agreements, outcomes
Diplomacy1 month Ago40 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.

Mind map: India-USA after Modi visit

Strategic relations
Economy and Trade
Environment-Energy
Space-Science-public health
Overall
Sidetopics

1. Modi @Madison Square

2. Modi reform: OIC, PIO, NRI
3. Totalization pact with USA
4. Why Modi did not pledge troops/jets against ISIS?
8. Mock questions

Mind map: India-USA after Modi visit

Strategic relations

Gang
membership

Terrorists

Defense

misc.

Since 2010, Obama said he supports Indias entry to various nonproliferation regimes- Nuclear Suppliers Group (NSG), the Missile
Technology Control Regime (MTCR), the Wassenaar Arrangement and the
Australia Group
But this time he specifically said, India meets the requirements to join
MTCR and NSG
Obama supports India as permanent member in UNSC. (although he keeps
saying that since 2010 no solid steps taken.)
Both Agreed to dismantle terror and criminal networks like LeT, JeM, Dcompany, Al-Qaeda and Haqqani network. [Observe they specifically
listed Dawood's D-company.]
Asked Pakis to bring perpetrators of the 26/11/2008 terrorist attack in
Mumbai to justice
Both will monitor citizens coming from conflict zones of Syria and Iraq.
(because some of them may be terrorists in disguise).
Both to work for women empowerment in Afghanistan. Modi cautioned
USA not to withdraw troops quickly from Afghanistan else ISIS story will
repeat here as well.
Intelligence sharing against ISIS network.
Will combat fake-currency, narcotics, cyber-crimes, piracy.
Defense cooperation Agreement (2008): extended for another 10 years.
Now itll expire in 2025. This was done after India increased Defense FDI
from 26% to 49%
Will upgrade US-India Malabar naval exercise. (meaning perhaps larger
deployments and/or regular participation from more countries.)
USA to help in Indias planned National Defence University.
Asked North Korea to denuclearize.
Trilateral discussion involving US-India-Jap. Foreign ministers.

Did not work out:

USA invited India to join war against ISIS, but India limited its help upto intelligence
sharing.
Indian cabinet yet to approve 15,000 crore rupee worth US defense deals involving
o Apache attack helicopters
o Chinook heavylift helicopters

Javelin Anti-tank guided missiles.

Economy and Trade: India-USA

Bilateral trade
present

$100 billion

target= five times $500 billion (but no deadlines)

Joint vision statement called Chalein saath, saath: Forward together we go- Both will find
mutually rewarding ways to collaborate in trade, investment and technology

CEO

investment

Infra

transport

misc.

Modi met top-US business leaders- assured them stable tax policies and
reduced bureaucratic intervention.
Modi invited US businessmen to invest in India Make in India. (more in a
separate article later about Make in India).
India-US CEO forum will be re-invigorated.
USA will invest 41 Billion$ in India, in next 3 years.
Indo US investment initiative- using Indias Finance ministry and USAs
Treasury department. Theyll focus on infrastructure finance and capital
market.
USA will help in 3 smart cities- Allahabad, Ajmer and Vishakhapatnam
PPP in Advanced manufacturing, starting from Early 2015.
USA to share best practices in rail Management.
USA via its New Silk Road and India-Pacific Economic Corridor, will help
India get freer flow of commerce and energy with its Asian neighbors.
India pitched for totalisation pact for NRI contributions to US social security
fund. but it could not be signed (more under sidetopic segment)
Agreed to resolve the stalemate in WTO-Bali summits trade facilitation
agreement.
RBI and US Fed reserve will partner in oversight of financial institutions. So
future financial crisis can be tackled in effective manner.

Energy and Environment

Nuke Energy

2008: Nuke dead signed

2010: Nuclear liability law in India. Foreign suppliers will have to pay money if nukedisaster because of defective technology or equipment. As result, American nuke
companies like GE and Westinghouse hesitant to invest in India.
2014: Modi meet, new contact group setup, to solve the issue

PACE

U.S.-India Partnership to Advance Clean Energy (PACE).

PEACE

Promoting Energy Access through Clean Energy (PEACE)

UNFCC

Both will work for post-Kyoto agreement at 2015 UNFCC summit @Paris, France.

Clean
energy

sanitation

$1 billion to purchase clean energy technology, especially solar.

US-India climate fellowship program.
MoU for $1 billion finance for renewable energy exports to India.
USA will be Indias partner country in Technology Summit in November
2014.
USAID will assist in Swachh Bharat Abhiyan WASH alliance- Water,
Sanitation, and Hygiene (WASH) Alliance
USA will help setting clean water and sewage facility in 500 cities.

Public health, Science, Space

Ebola: India pledged 12 million USD to fight ebola. Joint training of
personnel.
USA: will help reducing IMR, MMR in India.
India-US vaccin action Prorgam for dengue, malaria, TB.
Health
Drug companies wanted Modi to make patent laws friendly to them. But
Modi maintained- they should produce cheap-affordable drugs (rather than
doing Patent ever-greening by slightly changing the composition of original
molecules.)
SWAYAM

Study Webs of Active-Learning for Young Aspiring Minds- online education

program. Will offer post-graduation programs.

GIAN

Global Initiative of Academic Networks in Higher Education. To collaborate

between scientists an businessmen.
Every year, India will invite 1000 American academics to teach in Indian
universities.

NASA-ISRO Synthetic Aperture Radar (NISAR) mission, to be launched in

2021. Separate article later.

Space

Culture tourism

2015: India introduces visa-on-arrival for U.S. citizens

Efforts to make United States Global Entry Program available to Indian citizens.

Overall: Modi USA visit

success

1. Vowed
to
destroy
LeT,
Dawoods D-company etc.
2. Obama
Specifically
listed
MTCR and NSG where India
is eligible to join.
3. Defense cooperation agreement
extended for 10 years.
4. Contact group to finally sort out
obstacles in nuke deal.
5. Modis Meeting with Top 10
Business tycoons and 41 billion
dollar investment promise.
6. Modi managed to connect with
NRI crowd at Madison square.
Combined with Reforms in OIC,
PIO, visa on arrival- So in
future- tourism boost.

failure
1. While Obama has repeatedly accepted Indias
rise, economic prosperity, and contribution to
regional and global peace, but it did not lead to
an upgraded relationship.
2. Two years from now- new President will be
elected (perhaps Hilary Clinton or Bobby
Jindal) then may be USA will change its
mindeset.
3. 2010: Obama visits India, says the same thingswe welcome you @MTCR, UNSC etc. but no
concentrate steps taken.
4. Counterview: From American point of view:
even after they got us NSG-waiver, their
companies havent been able to reap benefits
because of the nuke liability law. Hence once
burned, twice shy of helping India.
5. Special 301 report, WTO-TFA agreement issues
unresolved.
6. Defense purchase deal for helicopters and antitank missiles did not materialize.

Sidetopics
Modi Address @Madison Square, New York
1. Indian diaspora has earned a lot of respect and great identity for INDIA in the world.
2. America is the Oldest democratic country and INDIA is the biggest democratic country
3. USA has people living from all parts of the world and Indian people migrate to all
countries of the world

We got three precious things

1.Democracy

not just the biggest asset but a hope of 120 million people

2.Demographic dividend 65% population under 35 years age. But skill Development necessary
3.Demand

world sees India as a big market for manufacturing and consumption.

Development
1. Government alone cant bring development. Peoples participation essential.
2. There were Freedom fighters before Gandhi- they all fought and died. But Gandhi turned
it into a mass movement- everyone from a sweeper to weaver to doctor felt part of the
freedom struggle.
3. Same way, we need to turn Development into a mass revolution
4. Every citizen should feel that they do their job best-will contribute to the nation.
Events and targets
2015

PRavasi Bharatiya Diwas @Ahmedabad, Gujarat

Vision 2020 export nurses, teachers and other skilled personnel from India
2019

150th Birth anniversary of Gandhi. well achieve 100% sanitation

Achievements and initiatives

1. ISROs Mars mission travelled 650 Million Km at Rs 7/Km.
2. PM Jan Dhan Yogana we have 4 Crores New accounts, junta deposits ~1500 crore
rupees.
3. Make in India Program: attract forieng companies to setup low cost production units here,
ease of doing business
4. mygov.in where junta can give suggestions.
5. New committee to strike off outdated laws.
6. Clean INDIA program, Ganga cleaning- because it provides livelihoods to ~40 crore
Indians.
Modi reform: OIC, PIO, NRI
Note: Detailed table given in M.Laxmikanths Polity book-chapter on citizenship page 6.5
onwards. following, is just an overview:

Refer Laxmikanth for more.

OCI

PIO

If you or your parents were Indian If your parents, grandparents or spouse were Indian
citizen once upon a time.
citizen once upon a time.
Lifelong visa-free travel.

card Valid only for 15 years.

No need to register at any office. If staying beyond 180 days in a single visit, youve to
Doesnt matter how long you want to register Foreigners Regional Registration or Police
stay in India.
station.

Modi reforms
1.
2.
3.
4.
5.

Well combine PIO and OCI. Well even cover spouses.

PIO card-walla wont have to report to police.
US citizens can get long term visas to India
US tourists can get visa on arrival in India
Online visa and visa-outsourcing to reduce delays.

Totalization pact with USA

5 lakh NRIs contribute ~1 billion$ in taxes, to USAs social security system. (~15% of
salary)
Many of them dont have full immigrant visa and have to leave USA after 3-7 years.
But as per US social security norms, if a person doesnt work for 10 years continuously
in USA, his social security contributions are forfeited.
Since 2007, India trying to solve this issue by signing a totalization pact with USA. We
already have such agreements with 17 countries including Australia.
But Americans dont agree, saying Indian social security system (administered by EPFO)
is not compatible with their hi-fi system.

Why Modi did not pledge troops/jets against ISIS?

Detailed article on ISIS later, this is
What is not possible?

just

newspaper

editorial

gist:

1. Sending Indian troops in Middle East = not going to happen. Because Iraqi PM said no to
foreign troop movement.
2. India can providing Fuel and Logistic support to American bomber planes. In 91s gulf
war, PM Chandra Shekhar did this, and was criticized a lot, by the opposition parties.

3. But this time, ISIS beheading= everyone is outraged= less chances of criticism or vote
bank politics, even if Modi agreed for refueling.
4. But, USA doesnt need India for fuel-logistic support. Other Middle Eastern states
already providing that.
What is possible?
1. Sharing intelligence and blocking IS attempts to enlist Indian Muslims to join their war.
2. 40 countries already agreed for such help to USA. Modi agreed for the same.
Mock questions
200 words each.
1. Discuss the roadblocks that prevent the manifestation of natural alliance between India
and USA.
2. Write a note on Indo-US cooperation in the fields of healthcare, energy and space
exploration.
3. Evaluate the Strategic importance of Prime ministers visit to USA in 2014.
4. India has made a right decide by not sending troops or fighter jets against ISIS. Do you
agree? Justify your stand.
Tags: IR-Modi, Rajtanil
[Modi Diplomacy] UNGA Speeches of Narendra Modi and Barack Obama
Diplomacy1 month Ago16 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. Modis UNGA 2014 Speech
1. India and its philosophy
2. Democracy everywhere
3. To Pakistan
4. Terrorism
5. Three spaces
6. Need for UN reforms
7. Poverty
8. Climate change
3. Obamas UNGA speech

1.
2.
3.
4.
5.
6.

World has achieved following:

World faces these challenges:
World needs these reforms:
Environment
On terrorism
How to end extremism?

Prologue
[Modi diplomacy] => USA visit=> Subpart= these UN General Assembly (UNGA) speeches.
Plenty of essay fodder for peace, IR and globalization related topics.
Modis UNGA 2014 Speech

India and its philosophy

India= one-sixth of humanity.

Undergoing rapid socio-economic transformation rarely seen in history.
Every nations world view is shaped by philosophical tradition. Ours is Vasudheva
Kutumbkam i.e. Indias ancient wisdom sees the world as one family.
Hence we strive for co-existence, cooperation, openness, diversity and multilateralism.

Democracy everywhere

Today, there is a surge to democracy across the world

Afghanistan proved to Talibans that democracy will prevail.
Nepal Maoists have left violence and working towards democratic Constitution.
Bhutans young democracy is flourishing as well.
Democracy finding a voice in West Asia and North Africa; Tunisias success makes us
believe that it is possible
We can see a trend towards Peace and stability everywhere- Africa, Latin America, Asia
and beyond.

To Pakistan

Kashmir is a bilateral issue, (Sharif) raising it at UN platform, wont solve it.

Instead of asking for Kashmir plebiscites and referendums, we need to solve J&K flood
problems. India even offered help to PoK (but Paki Government is too arrogant to accept
it.)
India prepared to engage in a serious bilateral dialogue with Pakistan in a peaceful
atmosphere, without the shadow of terrorism.
But Pakistan must also take its responsibility seriously to create an appropriate (peaceful)
environment for it.

Terrorism

World is witnessing tensions and turmoil rarely seen in recent history.

There are no major wars, but tensions and conflicts abound. (Recall Pope said similarpiecemeal third world war)
Europe faces risk of new division.
West Asia = extremism at its zenith.
Africa= rising terrorism + Ebola health crisis.
Asia= Maritime security and resource exploitation (indirect reference to claims over
South China sea)
Terrorism is taking new shape and new name.
No country, big or small, in the north or the south, east or west, is free from its threat.
But we are still hobbled by our politics, we are making distinction between good and bad
terrorists?
Yes, India wants to combat terrorism in West Asia- because itll affect countries near and
far.
But this should involve the support of all countries in the region. (= need to include Iran
+ Russia, may be even Syria.)
Even today, some states (=Pakistan) provide sanctuaries to terrorists, and use terrorism as
their state policy.

But we should put aside our differences and adopt the Comprehensive Convention on
International Terrorism.

Three spaces

On the one side, we say that our destinies are inter-linked, but we still think in terms of
zero sum game- If the other nation benefits, I stand to lose.
In todays inter-depended world, the countries are more united as world, but still we are
divided in various groupings.
While seas, space and cyber space are new avenues of prosperity. They too becoming
theatre of conflicts (China testing anti-satellite missile, NSA-spying, Chinese hackers,
Russian hackers and so on)
Therefore, need for United Nations, is stronger than before.
Not a single country (=America) can decide the fate of the world. We should work
together to ensure that all countries observe international rules and norms.
Must work for global disarmament and non-proliferation.

Need for UN reforms

Institutions that reflect the imperatives of 20th century wont be effective in the 21st
century. (UN, IMF, world bank et al)
Therefore, Nations grouping themselves into G9, G20. Why cant we become G1 or GAll (using UN platform)?
United Nations, and Security Council must become more democratic and participative.
(said similar in Tokyo declaration)
Else, they will become irrelevant and we wont be able to solve future crisis (such as
WW3 or ISIS v.2.0 or Subprime 2.0)
Developing countries provide most of the soldiers (blue helmets) to UN Peacekeeping
mission. They must be involved in decision making of UN peace keeping plans.

Poverty

International trade agreement should accommodate concerns of everyone. (with respect

to Bali Summit, TFA and Food security)
Our policy should be mutually supportive, not mutually damaging.

we need concrete international action

because
billion juntaa without access to __.
2.5
sanitation
1.3
electricity

1.1

water

For Post-2015 Development Agenda- poverty removal must get highest priority.
Climate change

Common but differentiated responsibilities. (Meaning first world should provide

truckload of funds to third world and transfer secret james bond technology to combat
climate change.)
India is prepared to share its technology and capabilities. We even announced a free
satellite for the SAARC countries.
Energy not consumed is the cleanest energy. We need to change our lifestyles
accordingly.
Even without reckless (resource) consumption we can still achieve same level of
development.
Sustainable development doesnt mean that economies will suffer; these economies will
take on a different character.
Indians respect for nature as part of spiritualism, all natural bounties are sacred.
Listed benefits of Yoga and asked for designating International Yoga Day.

Obamas UNGA speech

World has achieved following:

Free access to Information at any part of the world

Extreme poverty has reduced
More countries under democracy.
World economy continues to grow.
UN and other Institutions provide platform for the nations to resolve their dispute
peacefully.

World faces these challenges:

Ebola in west Africa

Russian aggression in Europe reminds how Imperial nations trampled small ones in
pursuit of territorial ambition in the past.
Terrorists in Syria and Iraq.
Iinternational system has failed to keep pace with an interconnected world.
Public healthcare system in third world gets insufficient funding.
rise of intolerance and sectarianism

World needs these reforms:

It is our collective responsibility to confront global problems

We must reject fatalism or cynicism in human affairs.
We must come together to reject the cancer of violent extremism.
All the nations must observe and enforce international norms
Nations should uphold the path of diplomacy and peace and the ideals of UN
@Russia: bigger nations should not be able to bully smaller ones.
People should be able to choose their own future (e.g. Hongkong protests)
We should solve our problems together, in a spirit of mutual interests and mutual respect
Must mobilize all countries to fight against Ebola, and increase global health security for
long term.
Nations should find common ground based on principles and not power equations.
Only then we can make enormous progress.
USA pursuing diplomatic solution to Irans nuclear projects.
Territorial disputes should be resolved according to international law.

Environment

Need to reduce carbon emissions and increase clean energy investments.

Well help developing nations in this. But every major power must join.

in other words, China and India should also bear the burden. Dont expect first world
alone to send truckload of money and secret james bond technology.

On terrorism

Terrorism is not a new weapon, it was used by all manner of groups who failed to come
to power through public support.
Extremist ideology has shifted from Afghanistan to Middle East and North Africa.
Because 25% of their youth have no job; food and water; corruption is rampant; and
sectarian conflicts high.
One of them is ISIS: Theyve perverted Islam, one of the worlds great religions. They
have a nightmarish vision to divide world into adherents and infidels, employing most
brutal methods and genocides.

How will USA fight ISIS?

America will not base its entire foreign policy on reacting to terrorism.
But well deny safe havens to al Qaeda and its associated forces.
ISIS beheading No grievance justifies these actions. There can be no reasoning no
negotiation with this brand of evil.
The only language understood by killers like this is the language of force.
>40 nations have joined coalition to fight ISIL. well will train and equip forces to fight
ISIL and cut of their finance and manpower from abroad.

How to end extremism?

All great religions have to accommodate faith with a modern, multicultural world.
Dont tolerate Clerics who call upon people to harm innocents because of their
different religion.
No children should be educated to hate other people. We must stop this corruption of
young minds by violent ideology.
We must provide alternative vision to young minds so that they do not become terrorist
or suicide bombers.
When young people do not have choice but to choose from dictators and extremism, no
counter-terrorism strategy can be worked out
When young people have the tools to succeed good schools and education then society
will flourish. Arab government should focus on this.
Entrepreneurship, civil society, education and youth are the best antidote to violence.
Peace is not merely the absence of war, but the presence of a better life.

Need women participation in schools, economy and parliament.

Allow civil society to flourish- allow people to freely express their views and organized
themselves peacefully.
In Iraq young men started library, in Tunisia secular government is formed, Senegal has a
Strong civil society, Malaysia has become advanced economy, genuine democracy in
Indonesia.
Thus, ultimately, No external power (=America) but only the People themselves can
bring about a transformation of hearts and minds.

Tags: IR-Modi, Rajtanil

[Diplomacy] Chinas Maritime Silk Road initiative, Purpose, Salient Features, Indias
stand
Diplomacy2 months Ago12 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. What is MSR initiative?
2. Why New Maritime Silk Road?
3. How to implement Maritime Silk Road? (2+7)
1. TWO = consensus on two issues
2. SEVEN proposals
4. Indias stand on Maritime Silk Road?
5. New updates
What is MSR initiative?
Old topic, carving out separate article for continuity in revision of another topic i.e. Xis
India
visit.
In 2013, both leaders of China announced this initiative:
1. President Xi Jinping @Shanghai Cooperation Organization (SCO) summit in Bishkek.
2. PM (Premier) Li Keqiang @ASEAN+China summit in Brunei.
Objectives
1. Connect 12 inland Chinese regions with 14 neighboring countries. (revive ancient silk
road)
2. Get new export markets
3. Secure lanes to import raw material.

4. Counter the influence of USA and Russia.

Why New Maritime Silk Road?
Yes why does China want to build New Silk road? Why not simply build military naval ports in
chillar nations like Pakistan and SriLanka and nuke India and USA to obliteration!?

#1: Economic reasons

Subprime crisis => global economic crisis => Fed Tapering=> less FDI and import orders
from US and EU.
Result? Chinas Export & FDI driven economic model is losing its effect.
China needs to find new export markets (those 14 neighbor countries).
Just like we have India vs Bharat- similarly China has Rich Coastal areas vs poorly
developed interior regions.
The growing disparity between Coastal China vs Inland China = creating social
problems, helping extremists and junta demanding for democracy. Hence China needs to
develop those 12 inland regions (mostly located in Western Part of China).

#2: Defusing tension

Since 2011, because of South China Sea dispute, Chinas relations became bitter withCambodia, Laos, Thailand, Malaysia, Japan. New Silk Road policy seems to be aimed at
defusing tensions- via soft language and economic offer.
This can be seen as Chinas olive branch to ASEAN countries.

#3: Countering US+Russia

China wants to counter / balance following:

1.
2.
3.
4.

USAs Pivot Policy in Asia Pacific

USAs proposed Trans-Pacific Partnership (TPP)
U.S. support for democratic transition in Myanmar
USAs security cooperation with Singapore, the Philippines, Indonesia, Malaysia,
Thailand and Brunei.
5. Russias proposed Customs Union (now Crimea will giveem access Black sea and
Suez Canal.)
#4: Strategic supply lines

Strait of Malacca= pirate infested waters but >80% of imports to China come from this
route. China wants to secure this lane.
China wants to gain access to Bengal Bay and Indian Ocean = Need better relations with
Myanmar and ASEAN.

How to implement Maritime Silk Road? (2+7)

The gist of New Maritime Silk Route is
1. Develop port cities along the silk route
a. above the wind region: Indian Ocean
b. Below the wind region: Malacca, South China Sea, Java Sea and Far East.
2. Via these port cities, link Asia and Africa with Chinese hinterland.
This will be implemented via 2+7 cooperation framework.
TWO = consensus on two issues

#1:
Strategic
relation

1. Strategic relations with good neighbors.

2. Signed strategic partnership agreements with Kyrgyzstan and
Turkmenistan.

#2:
Economic
cooperation

With chillar countries in Central Asia, China signed preferential trade

agreements, gave them cheap loans.
Heavy investments via Chinese PSUs. Mainly in energy (oil-gas
pipelines) and transport (railway, highway and ports).
Joint infrastructure projects (rail-road-ports)
Even proposed Asian Infrastructural Investment Bank. Its offices will

be setup in the capital cities of various Maritime silk road countries.

SEVEN proposals
1. sign China-ASEAN good neighbor treaty
2. get maximum benefit from China ASEAN FTA
3. Conclude RCEP by 2015. China led Regional Comprehensive Economic Partnership
(RCEP)= the FTA between ASEAN and China, Japan, South Korea, India, Australia and
New Zealand); eliminate trade barriers.
4. Regional financial cooperation (to prevent subprime/ BoP crisis) recall that China gave
maximum funding to BRICS Banks emergency fund against Fed Tapering.
5. Maritime cooperation- Already working on Gwadar (Pak), Hambantota (SriLanka) and
Chittagong (Bangladesh). Proposal for Bangladesh-China-India-Myanmar (BCIM)
corridor
6. security cooperation
7. People to people contact for culture, science and environment.
Indias stand on Maritime Silk Road?

As per PTI reports, the Chinese Officials discussed this with NSA Shivshankar Menon
and asked India to join in the Maritime Silk road (MSR) project.
But then Mohan got too busy denying Modi ki Lahar, Sanjay Baru ki Kitaab, with
Elections hence MSR decision postponed.

Presently, India has two opposite options:

a. Work together with China, letem gain presence in Indian ocean and reap the collateral
economic benefits from this project.
b. Dont work with China, and prevent Chinese influence in Indian Ocean.
The Next government will take the final decision.
New updates
1. Xi invited India, Sri Lanka and Maldives to join Maritime Silk road (MSR) initiative
2. But Modi remained non-committal, saying it requires mutual trust, stability, respect, free
flow of commerce and ideas.
3. In other words, if China opens up its economy to indian goods and services, helps
reducing Indias trade deficit, maintains peace @border region, then well consider
joining M.S.R.

Mock Questions
Answer following in 200 words each:
1. What is Chinas new Maritime Silk Road Policy? How is it different from its String of
Pearls strategy sufficient?
2. Discuss Indias strategic and economic interests in Maritime Silk Roa proposal. Should
India accept President Xis invitation to join it?
Tags: IR-Modi, Rajtanil
[Modi Diplomacy] Part 1/4: Japan Visit, Tokyo Declaration, US-2 Amphibian aircraft,
JENESYS 2.0 Kyoto Varanasi Pact
Diplomacy2 months Ago63 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.
8.

Prologue
Mindmap: Gist of Modis Japan visit
Strategic: India-Japan
Economy: India-Japan
Energy-Environment: India-Japan
Science-Space-Healthcare
People 2 People: India-Japan
Side topics
1. #1: Indo-Jap Nuclear deal
2. #2: Japan doesnt like MAT. NOT ONE BIT
3. #3: US-2 Amphibian aircraft
9. Mock questions
Prologue
Total four part article-series
1.
2.
3.
4.

Modi Japan visit

Xis India Visit
Modi US visit
Comparative table of above three, with Overall analysis/ success / failure.

As such all these summits had lot of photo-ops, symbolic gestures like Modi feeding fishes,
visiting temple, drinking tea in Japan, Modi says India not land of snake charmers but Mouse
players, Modi asks Indians living in Japan to bring their friends on India tour.. But Im
focusing only on six key areas:
1.
2.
3.
4.
5.
6.

Strategic (Defense Related)

Trade, Investment, Economy
Energy And Environment
Science, Research, Space, Healthcare
People 2 People and Misc.
Side Topics, If Any

Lets begin.
Mindmap: Gist of Modis Japan visit

Tokyo Declaration 2014: India Japan

Strategic: India-Japan
Meetings with item songs
1. Japan is now Indias strategic partner (= civil + defense ties)
2. Japan will intensify 2+2 strategic dialogue with India, involving foreign and defense
Secretaries. Japan also has similar with US, Australia, Russia and France.
3. Regular meetings between their National Security Advisors.
4. Trilateral Defense meeting between India-Japan-USA.
Defense and desi liquor- Trade
1. 1998: Japan had banned sale of HAL and other Indian defense companies (due to
Pokhran test). After Modi visit, they lifted ban from HAL and 5 other cos.
2. Japan will sale US-2 amphibian aircrafts and its secret technology to India.
3. This will be Japans first overseas military sale in 50 years.
Exercises to get 8 pack abs
1. Japan will hold regular exercise with Indian navy and coast guards
2. Japan will participate in India-US Malabar naval exercise.
International bodies
1. Both want urgent reforms in UNSC- for increasing no. of permanent and non-permanent
members.
2. Japan will help India get FULL membership in four international export control regimes
a. Nuclear Suppliers Group
b. Missile Technology Control Regime
c. Wassenaar Arrangement
d. Australia Group
Misc.filler
1.
2.
3.
4.

Denounced terrorism in all forms.

Asked N.Korea to stop nuke proliferation.
Welcomed UN negotiations for Iran nuke issue,
Pledged support for Afghanistan rebuilding. (Just like 3 times-camera zooming is prerequisite in every saas-bahu serial, Afghanistan-rebuilding is pre-requisite in all
bilateral meetings involving India.)

Economy: India-Japan
India

Japan
India will supply rare earth chloride to
to Japan- for making defence and high
tech electronics.
At present, China biggest producer of
rare earth, limits exports to safeguard its
local mfg. units
Modi to setup Japan+ Management
team in PMO, to help Japanese
investors in India. Team will have 2
Japanese members.
will reform tax, environment clearance
for ease of doing business.

Japan will Investment $35 billion smart

cities, bullet trains, Ganga Cleaning,
health-women etc. in next five years.
Double the Japanese FDI in 5 years
50 billion yen loan to IIFCL (India
Infrastructure Finance corp. ltd) for PPP
projects

collaborate on Regional Comprehensive

Economic
Partnership
(RCEP)
negotiations

Transport
1.
2.
3.
4.

Joint Feasibility Study for bullet train between Ahmedabad Mumbai.

Mass rapid transit system between Gurgaon and Bawal (HN)
Japan will help upgrading the existing semi-high speed railways in India.
@Gujarat: New Dholera International airport + Alang ship-breaking yard upgrade.

Industrial corridors:
5. Will help finishing the ongoing industrial corridor projects. Click me to see economic
survey summary on this:
6. Western Dedicated Freight Corridor (DFC)
7. Delhi-Mumbai Industrial Corridor (DMIC)
8. Chennai-Bengaluru Industrial Corridor (CBIC)
9. Will setup Industrial cities / townships in Gujarat, Maharashtra, UP and Madhya Pradesh
10. Japanese industrial townships will give benefits similar or higher than SEZ and NIMZs in
India.

Agro / village related:

11. Japan will setup food value chains via PPP
12. Japan will give advanced irrigation system and farming machines.
13. Japanese Champions of Societal Manufacturing (CSM) Project- for mfg sector in India.
Within this, Japan will also run Village Buddha project to help SHG groups in villages.
Misc.
14. Smart Community projects, the Logistics Data Bank project
15. @North East: Road connectivity, Forest resource Management, water supply
improvement.
Energy-Environment: India-Japan
Energy to light bidi
1. Speed up nuclear deal negotiations
2. Jointly procure LNG
3. Tie up in oil-gas exploration.
4. Collaboration for environment friendly coal tech such as
5. Coal-fired power generation technology
6. Clean Coal Technology (CCT).
7. Super-critical coal-fired power project in Meja, UP.
8. Super critical thermal power plant in Barauni, Bihar.
9. @Gujarat: Canal top solar power plants
10. @Rajasthan: Mega Solar Power project at Neemrana
Misc.
11. will assist in cleaning Ganga
12. @Gujarat: Seawater Desalination project at Dahej.
13. Japan will host 3rd UN Disaster Management conference @Sendai (March 2015) to
adopt new framework after Hyogo.
Science-Space-Healthcare

1.
2.
3.
4.
5.

Outer space exploration via Asia-Pacific Regional Space Agency Forum (APRSAF)
ICT initiatives, internet security.
Joint ocean studies.
Science Fellowship programs for youth.
+lot other fancy research things that I dont bother copying from original Tokyo
Declaration statement.

People 2 People: India-Japan

1. Kyoto-Varanasi partnership agreement: to develop Varanasi just like Japans historical
city Kyoto.
2. JENESYS 2.0 program: Exchanging ~1300 youth
3. Japan Overseas Cooperation Volunteer (JOCV): will send nurses to Mizoram.
4. Will promote Tourism, youth exchange, skill Development and other fancy things.
And finally, Abe agreed to visit India in 2015 to return the favour of harassing UPSC aspirants.
Side topics
So far, we checked the points related to the so called Tokyo declaration between India and
Japan during Modi visit. Now some related sidetopics:
#1: Indo-Jap Nuclear deal
Why does India want nuke deal with Japan?
1. Weve put 10 out of 21 nuke reactors under IAEA supervision. They can be run on
imported Uranium.
2. Ailing Jap. Nuke industry after Fukushima disaster. Will get boost by signing agreements
with India.
3. Japanese companies supply critical components to nuclear powerplants of GE and Areva
etc.
4. If we can get Japanese components and technology, itll greatly increase our nuclearelectricity generation.
5. Japan has huge stockpile of reprocessed plutonium.
What are the challenges then?
Japan
India
Wants India to sign Comprehensive Nuclear-Test-Ban No we wont sign such
Treaty (CTBT) and Non-proliferation treaty.
stupid agreements. We want
Nuke disarmament is a major issue in their domestic to have freedom of doing

politics. (Just like psedo-secularism in Indian politics).

nuclear tests.
If Japanese PM signs nuke deals with India, and India
doesnt commit to CBDT/NPT, itll be difficult for Abes
party to win future elections. just like Sharif cant win
elections without making stupid remarks over Kashmir.

We want to reprocess the

No, we cannot allow that.
spent fuel (for testing nuke
weapons.)
India should accept inspection beyond the current IAEA Not acceptable. We cant
safeguards. i.e. if we sell you fissile material or James Bond secret allow you / anyone else to
technology then allow us to inspect both your defense and civilian inspect our defense nuclear
nuke programs.
programs.
In short, India not willing to accept more obligations than what weve agreed under 2008s
Nuclear Suppliers Group (NSG) waiver agreement.
Q.Then How to convenience Japan to sell nuke material and Technology to India?

India should gain membership into export control regimes NSG, Missile Technology
Control Regime (MTCR), Australia Group, and the Wassenaar Arrangement.
2015 will be the 70th anniversary of the Hiroshima and Nagasaki bombings.
At that time, Modi should launch a new nuclear disarmament initiative with Japan.
Above steps, will create good faith & then nuclear deal can be made.

#2: Japan doesnt like MAT. NOT ONE BIT

Current Minimum Alternate Tax rates in India
Indian companies
Japanese and other foreign cos.
19.06%
19.06%
20.01 (with edu. cess+surcharge) 19.44%

Japan wants India to exempt Japanese mfg. companies from MAT.

This will facilitate more investment in India- worth Rs.2-lakh crore in India over the next
five years
In recent years, Japanese private investment is declining due to high labour costs in India
and industrial unrest e.g. at Manesars Maruti plant.

#3: US-2 Amphibian aircraft

Japan Maritime self-defense force uses this plane. (They dont have a full-fledged army
or navy.)
Amphibian aircraft meaning it can land both on land as well as water.
Can help rescuing victims from martime accidents.
Can transport Indian troops to places with no landing strip or shore- especially in farflung islands in Andaman, Nicobar, and Lakshadweep.
STOL: short takeoff and landing space required.
Can cover distance of 4500 kms, at speed >450 kmph without needing refueling.
This will be the first time since WW2, that Japan will make an overseas military sale.

Mock questions
Q1. Write a note on the salient features of Tokyo declaration 2014. (200 words)
Ans.

Signed on 1st September 2014

By Indian PM Modi and Japanese PM Shinzo Abe.
for India Japan Special Strategic and Global Partnership
Remaining points- well pick a few from defense, economy, environment, people-2people given above, and youll reach 200 words easily.

Q2. Discuss the opportunities and challenges before India-Japan nuclear deal. 200 words
Q3. Discuss the significance of the agreements signed between India and Japan during the
first official visit of PM Narendra Modi recently. 200 words

Q4. Write a note on the objective, structure and functions of following in 100 words each:
a.
b.
c.
d.

Nuclear Suppliers Group

Missile Technology Control Regime
Wassenaar Arrangement
Australia Group

Q5. Answer following in 100 words each

1. Kyoto Varanasi agreement
2. JENESYS 2.0 program
3. Significance of US-2 Amphibian aircraft for Indian Navy.
Tags: IR-Modi, Rajtanil
[Diplomacy] Shanghai Cooperation Organisation (SCO): Dushanbe Summit 2014, Should
India Join SCO?
Diplomacy2 months Ago34 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
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What is SCO?
SCO: Dushanbe Summit 2014
Why India must join SCO?
Why India shouldnt join SCO?

What is SCO?

Shanghai Cooperation Organisation (SCO)

2001: Founded in Shanghai.

Nations associated with SCO

Members
Observers
1. Afghanistan
1. China,
2. India
2. Kazakhstan,
3. Iran
3. Kyrgyzstan,
4. Mongolia
4. Russia,
5. Pakistan
5. Tajikistan,

Dialogue Partners
1. Belarus
2. Sri Lanka
3. Turkey

6. Uzbekistan.

Activities

Mutual cooperation to fight again terrorism, separatism and extremism in Central Asia
Joint military exercise such as Peace mission 2014 in China
Even seen as Chinese counter against NATO.

SCO: Dushanbe Summit 2014

Held at Tajikistans capital Dushanbe. Outcomes:
1.
2.
3.
4.
5.
6.

We dont want to create military political alliance like NATO.

But regional security is our top priority.
Well fight against terrorism, extremism, and drug trafficking.
Well fight against INTERNET TERRORISM.
Later well sign an Anti-extremism treaty.
After NATO-withdrawal, If Afghanistan becomes a failed state again, then SCO
nations will have to face disaster.
7. (Americas) missile defense shield programs are undermining global stability.
8. 2015: well jointly celebrate the 70th Anniversary of WW2. Russia will hold the SCO
presidency
9. formalized the legal, administrative and financial requirements for admitting new SCO
members.
10. Now itll be possible for India, Pakistan and Iran to join SCO.
11. Education, research, cultural exchanges and other fancy things.
Why India must join SCO?
1. Energy cooperation in the region TAPI strategic link in its extended neighborhood and
South Asia. (already discussed in earlier article)
2. SCO provides an alternative regional platform to discuss the Afghan issue. Because India
has no veto power in SCO.
3. If Pakistan joins SCO, then we must join- to ensure we can rebutt any stupid
motions/resolutions put forward by Pakis on the SCO table.
4. Indian interest in International North-South Transport Corridor to connect Mumbai with
Abbas port in Iran. This route is shorter than the existing Suez Canal and the
Mediterranean Sea
Why India shouldnt join SCO?

1. Not much compatibility between Indias security interest vs Chinese security interest.
2. China does not look upon Paki sponsored anti-India organizations such as Pakistans
Inter-Services Intelligence, Afghan Taliban, Haqqani Network such as the Lashkar-eTayiba the Jaish-e-Mohammad, the Harkt-ul-Jihad-al-Islami and the Harkat-ulMujahideen.
3. So, if India tries to move any resolution / blockade against such groups, the motion will
not garner support from China and its puppet nations SCO.
Internal security principle differs
India
SCO members
Police should be the first weapon against internal They use army as first weapon to
security problems- like Naxals and secessionists.
handle internal security problems.
China itself a Cyber bully

Terrorists now using cyberspace to recruit new people, hack websites and even planning
financial terrorism. SCO can help fighting against them.
But one of our main cyber security threats= (State-sponsored) Chinese hackers.
So, itll be futile exercise to cooperate with China dominated SCO.

Tags: IR-Bodies-Asia, Rajtanil

[Modi Diplomacy] Part 2/3: Chinese President Eleventh (haha) Xi Jinpings India Visit
Diplomacy2 months Ago66 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
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3.
4.
5.
6.
7.
8.

Mindmap: Xis India Visit

Strategic Agreements
Economy pacts
Transport related
Energy, Environment
Tourism, People2People
Overall
Side-Topics
1. India without Tibetan Leverage
2. Xis Sri Lanka visit
3. India vs China: defense comparison

Mindmap: President Xis Visit to India (2014)

Mindmap: Xi Jinping India visit Outcome

Strategic Agreements
Inch towards miles

Fancy term by Modi

Inch (India and China) towards Miles (Millennium of Exceptional Synergy).
With every inch we cover, we can rewrite history of humanity.
With every mile we cross will go a long way in making this planet a better place.

Border issues

2013: Both the countries have signed a Border Defence Cooperation Agreement (BDCA)
in 2013 to ensure peace and tranquility at the LAC.
2014, Aug: National Security Advisor Ajit Doval went to China to finalise the
arrangements for Chinese President Xi Jinpings visit to India.
Next stage: Exchanging maps Line of Actual Control (LAC).
During Modi-Xi Meeting: Lot of bolbachchan': will resolve differences through
Panchsheel, A climate of mutual trust and confidence is made; we respect each other`s
sensitivities and concerns; and, peace and stability etc.

Narendra Modi:

Requested Xi to resume the stalled process of clarifying the LAC (Line of actual control)
and an early settlement of the boundary question.
Discussed Chinas stapled visa policy for Arunachal Pradesh and Trans Border Rivers.
Agreed that hell not allow Anti-China activities in India (e.g. Tibet militant groups)
Until we find out final solution to border problem, both sides will maintain peace and
tranquility in the border areas.

Chumar Standoff

Where? Chumar village inLadakh area, Near Himachal Pradesh border. China says its
our land, they keep coming here on foot and through helicopters. Even constructing a
road, though Indian army destroyed it recently.
Why in News? Because the Chinese soldiers entered here during Xis visit.
But 72 hours after the Joint statement of Modi and Xi, the Chinese troops began
withdrawal.
Recent reports say, theyve also ceased the road construction work here.

UN reforms

Well strengthen the central role of United Nations. This goes along with Modis stand
that we need to get out the G4, G20 etc. mentality.
China supports Indias wish for UN reforms and UNSC reform.
Developing countries need to be given greater voice in UN Decision Making. Well
work closely @BRICS, G20 etc to achieve this.

Exercise to get 8-pack abs

fourth joint army training at a mutually convenient time,

Well hold navy/airforce joint exercise
Area of cooperation: peace-keeping, counter-terrorism, naval escort, maritime security,
humanitarian rescue, disaster mitigation, personnel training, and think tank
communication.

Routine lip-service
Terrorism
Both Agreed for zero tolerance against terrorism.
will share information about cross border illegal trade in narcotics, weapons,
Smuggling
wildlife.
Maritime
cooperation for security, anti-piracy, freedom of navigation
Nuke weapons yes well work for disarmament and arms control.
Turmoil
Bilateral consultations on Afghanistan, West Asia, Africa, Central Asia and
countries
Counter-terrorism.
Economy pacts
Import export

China will take steps to facilitate entry of Indian products in China, thereby balancing the
bilateral trade. (Right now India has large trade-deficit with China, ~35 billion USD).
For above purpose, China will establish strong links between Indian IT companies and
Chinese enterprises, smooth registration of Indian drugs, releasing Indian movies in
Chinese cinema, selling Indian tour packages to Chinese and so on.
Commercial Bank of China will give loan to IndiGO for new aircrafts.
MoUs signed between Chinas Export Import bank vs SBI, ICICI, for giving billions
USD in loans and importing Chinese products in India.
MoU between Reliance and Huwei

Infra / Industries
China to setup two industrial
parks
Gujarat
Power equipment
Maharashtra Automobile parts.

These two industrial parks will be similar to the Chinese manufacturing hub Shenzen.
China will invest US$ 20 billion in next five years in Indian infra. (Japan pledged 35
billion$ in investment + 50 billion Yen as loan)

Sister pacts
Sister states Guangdong Gujarat
Sister cities Guangzhou Ahmedabad
Above will cooperate for trade, environment, education, health, science, tourism.

More Bolbachchan
have common interests in Doha round. So will cooperate to ensure
treaties are made in our favour.
Strategic
Economic to explore new areas for economic cooperation, joint projects, smart
Dialogue (SED)
cities.
Joint Economic Group
to facilitate bilateral trade and economic cooperation.
WTO

Transport related
Chinese Cooperation in Indian Railways

Training 100 people for heavy haul transport

Chennai-Bangalore-Mysore section: its speed will be increased to 160 kmph
Redevelop two rail stations on pilot basis.
High speed rail project- feasibility studies + financing part.
Setup Railway University.

BCIM corridor

will connect Kunming (SW China)- Kolkata (India) Mandalay (Myanmar)

Dhaka|Chittagong (Bangladesh)
Southwest China = landlocked, poor. In recent times many knife-stabbing attacks made
by Uighur extremists [Ethnic minority in Xinjiang province in North West region].
China hopes, BCIM corridor will boost trade-tourism, thereby reducing poverty. Then,
youth will remain in mainstream. Extremists will find hard to get new recruits and
supporters.
December 2013, had official talk with India in this regard.
2014: Modi and Xi too discussed BCIM corridor and agreed that itll bring collective
prosperity

Maritime Silk road (MSR)

Xi invited India to join Maritime Silk road (MSR) initiative. Click me to know more
about this project.
But Modi remained non-committal, saying it requires mutual trust, stability, respect, free
flow of commerce and ideas.
In other words, if China opens up its economy to indian goods and services, helps
reducing Indias trade deficit, maintains peace @border region, then well consider
joining M.S.R.

Energy, Environment
1. Nuke Energy Pact: Will start consultations between the Department of Atomic Energy of
India and the China Atomic Energy Authority.
2. Will promote clean energy.
3. Common stand on climate change CBDR i.e. first world should spend more money and
efforts. Well work together @UN Framework Convention on Climate Change in 2015 to
ensure this.
4. Disaster Management: Better sharing of flood-season hydrological data, and emergency
management
Tourism, People2People
Tourism years
2015 Visit India year (in China)
2016 Visit China year (in India)

During these phase, both sides will do tourism promotion to increase no. of visitors.
China will help India promote its tourism products in China, particularly the routes
associated with Chinese monk-scholar Xuan Zang (Hiuen Tsang)s India journey of 7th
century.

Kailash Mansarovar:

The existing route goes through Uttarakhand.

China agreed to opening a new route through Nathu-La to Kailash Mansarovar. Itll give
following Benefits:
Road quality is better. Less bumpy rides for older pilgrims.
Route is safe even in rainy season. Less danger of landslides and blockades.
Will help more pilgrims to travel at shorter duration.
Counterview: north Indians will first have to travel to sikkim and from there to
Mt.Kailash so journey expense will increase.

Exchange offer on TV

2015-19: well exchange 200 youth per year.

Exchanges between the museums and other cultural institutions.
China will host Indian Buddhist art exhibitions.
China will partner in Delhi International Book Fair 2016.
Will mutually support teaching national languages in each others countries- Chinese in
India and Hindi in China.

Bollywood Movies aka South Indian remakes:

MoU for joint production of movies.

China will be a guest in Indian International Film Festival 2014.

Finally, Xi invited Pranab to visit China, so that we can return favor of harassing Chinese civil
service aspirants.
Overall
India became more assertive:

During Japan visit Modi indirectly refereed countries with an 18th century expansionist
mind-set: encroaching on other countries, intruding in others waters, invading other
countries and capturing territory.
Same way, Pranab signed Oil exploration and defence deals with Vietnam.
Thus, India became more assertive, pursuing its course without worrying about Chinese
reaction.
During Xis visit- positive outcomes on border, economy and culture.
Chumar resolved tacitly, without creating lot of media bravado.

China stopped worrying

After Modis US visit, Chinese official newspaper concluded following:

India will pursue non-aligned yet all-round foreign policy.

Therefore, India will not develop ties with USA, at expense of China.
Although border issues unsorted but itll not hamper cooperation in trade and
Development between India-China.
China should worry more about USAs Pivot to Asia strategy, under which:
a. Japan- ~40,000 American soldiers to be stationed
b. S.Korea: ~30,000
c. Australia: 2500
India will not be in the picture frame of USAs Trans-pacific partnership (TPP). Hence
USA (And not India) will act as an obstacle to Chinas economic rise.

Negative:

Earlier reports indicated, Xi would announce 100 billon$ investment.

During Xi visit, 16 agreements yet just 20 billion investment. (Japs giving 35).
MSR did not materialize.
Hard to believe that Chumar incident happened without Xis knowledge and approval.
Perhaps it was Xis way of showing displeasure over Pranab signing oil deals with
Vietnam.

Side-Topics
India without Tibetan Leverage
Gist of the matter: Chinese are cozying up with Tibet. So in long term, we may not have Tibet
issue to arm-twist China to get things done.
China vs Dalai lama
Before

nowadays
Making polite references to Dalai lama in
their Government newspapers.
Chinese official would call him
Acknowledging Dalai Lamas religious
Splittists and his followers as
status.
terrorists
Talking with his envoys- on how to bring
him back to Tibet.
Tibetan protests and self-immolations
increasing in 2008 because of Beijing
Olympic and media attention.

Migrant Han Chinese controlling Tibetan

economy.
Government
pumped
billions
in
infrastructure.

Security was tight.

China looked at Tibet as a trouble region.

Tibetan economy growing at 12%, Junta

back to business and jobs. Hence protests
declined.
Security is reduced.

China portraying Tibet as a Buddhist tourist

destination.

Indias position on Tibet:

India diplomats sheltered Dalai Lama and Tibetan refugees as some sort leverage
against China.
But India has already recognized to One China and does not recognize a Free Tibet.
So most of the leverage is gone.
And once Dalai Lama returns to Tibet, the leverage will vanish entirely.
Benefit: If Dalai Lama returns to China, then it may lead to clearing of some historical
burden of misunderstandings, China may stop cozying with Pakis and the secessionist
leaders in North East. (Because Chinese use that as leverage against India)

Xis Sri Lanka visit

Xi visited Sri Lanka, while on his way to India:
1. Called Sri-Lanka a Pearl in the Indian Ocean. But maintained that China has no plans
of containing India through any so called strings of pearl strategy.
2. Opposed Foreign intervention in Sri Lankas internal affairs. (e.g. India and UNHRC)
3. Invited Sri-Lanka (And Maldives) to join Maritime silk road (MSR)
4. Began FTA negotiation with Sri Lanka.
5. 30 agreements
6. Since 2009: in invested ~4 billion in Sri Lankan infra.. Additional $1.4-billion port city
development project + several infrastructure projects.
7. Final phase of power plant in Noracholai, in Shri Lankas North-west.
Will Sri Lanka really benefit from sitting in Chinas lap?
1. Chinese gives loans at expensive interest rate to Sri Lanka. While India spend truckload
of money in grants. (i.e. no need to repay).
2. Sri Lanka owns ~200 billion loan money to China.
3. FTA with China will ruin Sri-Lankan economy. Because Cheap Chinese goods will flood
their market. And in return, Sri Lanka doesnt have much to export to Chinese
consumers!

4. On the contrary, Sri-Lanka gained immensely with CEPA with India.

5. Sri Lanka tried to play China card against India, but they should remember, that during
natural and man-made disasters, only the immediate neighbor will come to rescue.
India vs China: defense comparison
Sector
Defense
budget
Troops
Submarines
Warships
Fighter jets
Battle tanks

China

India

>130 billion USD

~38 billion USD

2.2 million
56( 5 nuke powered)
75 (1 aircraft carrier under trial)
>1600
>7000
Large arsenal

1.3 million
14(1 nuke powered)
>30 (2 aircraft carriers)
>550
>3000

Missiles

ICBM (intercontinental ballistic

Limited arsenalNo ICBM and SLBMAgnimissiles)
V (5000 kms) but still under testing.
SLBM (submarine launched):
upto 7200 kms range

Mock Questions
Answer following in 200 words each
1. Unless the LAC issue is clarified, India-China cannot move towards Millennium of
Exceptional Synergy. Do you agree? Justify your stand.
2. Success of a bilateral visit, cannot be measured in financial terms alone. Elaborate.
3. Discuss Indias strategic and economic interests in joining Maritime silkroad and SCO.
4. List the measures announced during Presidents Xis India visit for trade deficit,
infrastructure and tourism.
Tags: IR-Modi, Rajtanil
[Diplomacy] Al-Qaeda Threat to India, US Report on Indias Counter-terrorism measures,
Border security Management
Diplomacy2 months Ago12 Comments
For ACIO & Insurance AO

Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi

1.
2.
3.
4.

D1: US report on Indian Counter Terrorism measures

D2: Al-Qaeda threat to India: should we worry?
D3: Border security Management: Gujarat
D4: Letting states have foreign relations

D1: US report on Indian Counter Terrorism measures

Who prepared this report?

National Consortium for the Study of Terrorism and Responses to Terrorism (START).
Provides an overview of Fodder points for General Studies Mains paper 3: internal
security, border Management.

(-ve) Negative points

1. 2013: ~400 people died in terror attacks in India. Out of them ~200 from Maoist attacks.
Numbers higher than 2012 = meaning India is still a soft target.
2. Did not pass any anti-terror law in 2013, despite point #1.
3. Still relies on old laws viz. Unlawful Activities (Prevention) Act (1967), the SAARC
Convention on Suppression of Terrorism Act (1993) etc.
4. After 26/11, planned to setup a National Counterterrorism Centre, but states opposed
hence postponed.
5. India continuously building fences on Pak & Bangla borders but still illegal migration
continues through rural areas.
6. Terrorists backed by Pakistan still a problem in J&K. Pak itself violated line of control
many times. Pak yet to bring 26/11 perpetrators to justice.
7. Drug smuggling through Punjab border, this money used for terror financing.
8. Indo-Nepal border & Maritime borders still porous.
9. US official complaint that despite sharing intelligence, Indian agencies donot take
followup action quickly. Especially in terror-finance cases.
10. Govt. does not have procedures to freeze assets of terrorist suspects immediately.
11. Poor Inter-agency coordination at various level in center and state
12. Whistle blower protection inadequate in the intelligence agencies / counter-terror finance
operations.
13. Lack of comprehensive policy against extremists in NE or Naxals in Red corridor.
14. Social media is used for creating communal unrest (e.g. Muzaffarnagar riots after
facebook clips).
Horrendous Attacks in India Last Year

2013 Place
Feb Hyderabad shopping area
April Banglore BJP office
May Sukhma attack

Detail
IM. 17 dead
al-Ummah terrorist organization. 18
injured
Maoist wiped out congress leadership of
Chhattisgarh.

Mahabodhi Temple, UNSECO heritage site in

IM. 5 injured.
Bodh Gaya, in Bihar
Hiarangar Police station, J&K + Army camp 10 died. attack just before Nawaz-Mohan
Sep
Samba
meeting in NY.
Oct Modi rally in Patna
IM. 6 dead, 85 injured.
July

(+ve) Positive Points

1. Setup a Multi-Agency Centre for enhancing intelligence gathering and sharing.
2. Plan for National Intelligence Grid (NATGRID). Itll link intelligence related databases
in different ministries and departments.
3. Participated in US India Homeland security dialogue in Washington. Regular exchange
of officials and training.
4. Signed treaty with USA for Information exchange for aviation security
5. Member of FATF (Financial Action Task Force) on Money Laundering. Also part of
similar grouping in Eurasia and Asia.
6. Passed Prevention of Money Laundering Act on 2012
7. Criminalized terror-financing according to International standards.
8. Ordered Jholachhap NGOs to report source of their foreign donations.
9. Founding member of Global Counterterrorism Forum (GCTF)
10. Obtained cooperation from Nepal, Bangladesh to arrest terrorists.
11. High profile arrests: Abdul Karim Tunda and Yasin Bhatkal. Paresh Barua got death
sentence in Bangladesh (although escaped to Myanmar.)
12. Various developmental schemes in the Naxal -affected areas.
13. Surrender cum-Rehabilitation schemes for naxals and extremists.
14. Schemes for modernizing education + infrastructure in Madrassas. This will help
countering jihadi elements.
D2: Al-Qaeda threat to India: should we worry?
In Sep 2014, Al-Qaeda leader Ayman al-Zawahiri, released a video with the concept of
Ghazwa-e-Hind i.e. final battle to conquer India by a jihadi army.
Why India should not worry?

1. Nothing novel about such declaration. As Pakistan-based jihadists have been talking
about Ghazwa-e-Hind long before al-Qaeda showed up.
2. 80 Indians have reportedly joined jihadists in Syria and Iraq, but the figure is smaller than
that for Australia, Britain and France.
3. Al-Qaedas own splinter group IS has eclipsed Al-Qaeda. IS now controls parts of Syria
and Iraq.
4. Hence, Al-Zawahiris first public message in two years, appears to be a desperate
gamble, to keep the morale of its troops. (like a regional politician who wants to stay in
news by creating some controversy.)
5. As Modi pointed out in the interview, India Muslims are patriotic and will not join such
terror-organizations.
Why India should worry?
1. Al-Qaeda is an organized, intelligent, and patient group.
1. AL-Qaedas weakening image in the world may trigger it to attack massively to prove its
strength
2. Competitive dynamics between terrorist groups can be dangerous.
3. U.S. drone strikes in Pakistan between 2008 and 2010, decimated al-Qaedas largely
Arab leadership and elevated Pakistanis into senior positions. Resulting ng into
Pakistanization of Al-Qaeda. These Paki leaders in Al-Qaeda have their agendas for
Kashmir.
4. Recent video in Urdu (replacing Arabic) to gain foothold in Indian subcontinent.
5. Al-Qaeda views India as a ripe opportunity both as a recruitment source and a target.
6. India has a large, marginalised Muslim population, and incidents of communal violence
in recent times.
7. India has porous borders with weak states-(Pakistan, Nepal, Myanmar, Bangladesh et al)
who have sheltered terrorists in past.
8. India becoming a major partner of the United States. Al-Qaeda doesnt like it. Not one
bit.
9. Indias police and counterterrorism institutions dont have sufficient man and material
resources.
10. Among SAARC nations, intelligence sharing is insufficient.
D3: Border security Management: Gujarat
Topic in news Sep-2014: Following reforms taken: (aka fodder for GS3)
1. Men from Puggie community are expert in reading camel footprints. They belong to
Kutch and Banaskantha districts of Gujarat.

2. Theyve been recruited to trace the movement of smugglers, terrorists and refugees
across western border through desert.
3. Police has enrolled more friends of police in border villages- to act as informants.
4. For coastal security the security forces are keeping surveillance on fisher-communities
including Hindus- because some of them were caught by Pakis, brainwashed and then
released back to India- they supply sensitive information to Pakis in lure of money.
5. Stringent identity verification of fishermen and those returning from Dubai and Karanchi
via sea route.
6. Intelligence agencies keep a tab on terror website, online groups, people returning from
specific countries and dollar transactions. Because dollar transactions give footprints of
any terror activity.
D4: Letting states have foreign relations
Topic in news Sep-2014:
1. After LPG reforms the CMs of Andhra Pradesh and Karnataka actively sought out FDI
from MNCs. As as result, Hyderabad and Banglore have developed as IT hubs.
2. On similar lines, the then Chief Minister Modi began hosting Vibrant Gujarat summits to
attract investment in his state.
3. Therefore, all state Government should actively seekout FDI and establish directrelations with foreign Governments- many American states do the same- they setup
standalone offices in foreign nations to boost trade-tourism to their home state.
4. Since 80s- Even the authoritarian Chinese leadership has permitted their provinces to
establish sub-regional links with other Asian countries. As a result, Yunan is thriving as a
trade hub.
Challenges?
1. Border states- what if Pakistan wanted to invest in Punjab or China in Arunanchal or
Bangladesh in W.Bengal? Even if they wanted purely economic relations, the security
aspects will overshadow and the Union Government may not allow the deals.
2. While Madhya Pradesh, Gujarat, Maharashtra and other big states can afford to host
investors summits, the interior and backward states cant host such lavish events -given
the lack of event managers, rail-road-air connectivity, media publicity etc. Union
Government needs to help them.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-India-O, Rajtanil

[Current] Environment SepW2: Elephant Killer Trains, IndARC, Ozone Rocovering,

House Sparrows, Snakebite deaths, Dolphins, Sturgeons, Langurs
Current Affairs Weekly2 months Ago61 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Elephant Killer trains
2. House sparrow Population decline
3. Indo Pacific Hump-Backed Dolphins
4. Wild Chinese Sturgeons
5. Deaths from Snake bites
6. Langurs are multiple species
7. Ozone layer recovering thanks to Montreal
8. IndARC
9. Ministry of Earth Science: 100 days
10. Suggested Rabi crop reforms by Agro ministry
11. New hybrids: Tea and Banana
Elephant Killer trains

Sterilize them, No elephants =No deaths, says W.Bengal Government!

Topic in news because W.Bengal Government cameup with a Tughlakhi idea- sterilization to
control elephant population, to reduce train accidents! Thankfully, Supreme Court has stopped
them.
Suggest reforms:
1. Put danger signs near Elephant areas- so Locopilot proceeds carefully.
2. Order locopilots to drive at 25 kmph speed through such areas. Install GPS and speed
tracking instruments.
3. Konkan Railway developed sensor to detect debris on tracks. Similar devices can be
installed to track elephant presence on tracks.
4. Iron fences at blind curves.
5. Cutdown tall grass near tracks- to improve locopilots vision and judgment, especially
during night.
6. After climbing up, the elephant hesitates in climbing down the track, even if the train is
approaching- due to the steep slope, it cannot make judgment. Therefore, tracks in such
areas, should not have steep slopes.

7. Almost all accidents occurred between 6PM to 6AM. Forest guards must petrol
accordingly and alert locopilots, if elephant herds spotted near tracks. But this is only
done at Buxa forest.
8. Stop passengers from disposing food garbage from train windows in forest areas.
9. Rail-road expansion is inevitable, but should be done scientifically to ensure minimum
habitat fragmentation.
10. In Assam and West Bengal, paddy fields near railway tracks attract the elephants for
raiding the crops and water. These elephants are used to human tactics such as
crackers, drum beating, fire, lights etc. So, even with train sound, they behave carefree.
11. Long term reform requires preventing agrarian encroachment in jungle areas, stopping
habitat destruction, providing sufficient food and water in wildlife sanctuaries so
elephants dont venture out.
House sparrow Population decline

House sparrows found around the world, except in the Polar Regions.
IUCN status: Least concern
March 20 World Sparrow Day. (from 2010 onwards)
Declared state bird of Delhi.
Have a symbiotic relationship with humans for the past 10,000 years. Hence their
disappearance hints rapid degradation of environment.

Why sparrows disappearing from cities?

Cause
Consequence
1. Vegetation loss
2. Although posh families doing gardening, but they
Insects gone, less food.
use too much chemicals, no insects survive.
While adult sparrow can
3. Mosquito and insect repellents
survive on grains, but young
4. 1962: Rachael Carsons book Silent Springchicks insects for protein.
discussed how insecticides are becoming biocides
and killing many organisms directly and indirectly.
5. Grains being stored in plastic bags instead of jute
bags
6. Even if grains rotting at railway stations, sparrows Less food for sparrows
avoid it due to pesticides. Even in microlevels,
pesticides can kill it.
7. Less trees, more Concrete buildings, AC windows Sparrows cant make nests.

without gaps and ridges

8. Glass panels in buildings- reflecting the images of
Sparrows mistake them for real
nearby trees.
trees- crash while flying.
9. Vehicles: Noise and air pollution
10. Electromagnetic Radiation from cell towers, wifi Negative impact on bird life cycle.
etc.

Sparrows are resilient, they migrate to safer zones, feed at public granaries, market
places, ports and rail stations, nest at nearby sites and adapt to stabilize their population.
But gradually, all such places are becoming unsuitable for the sparrows.

Some State birds GK

STATE
OFFICIAL STATE BIRD
Jammu and Kashmir Black Necked Crane
Haryana
Black Francolin
Gujarat
Greater Flamingo
Maharashtra
Yellow Footed Green Pigeon.
Delhi
House-sparrow
Indo Pacific Hump-Backed Dolphins

IUCN: Near threatened.

Spotted near Chennai coastline, and shallow waters, when sea is relatively calm.
Occasionally, They also enter estuaries, lagoons and mangrove swamps in search of
food..
Population Declining because
o Gillnets and other harmful fishing gear
o Faecal coliforms in estuaries: hard for organisms to survive.

Wild Chinese Sturgeons

IUCN Status: Critically endangered, Hardly 100 left.

a rare species of fish in China- in Yangtze and Pearl Rivers.
Lived since the age of dinosaurs.
Nicknamed aquatic pandas.
They swim all the way from rivers to the sea, to lay eggs.
But this became difficult after construction of numerous dams, and increased boat traffic
for inland navigation.
Last year, no natural reproduction hence at the risk of extinction.

Deaths from Snake bites

, , !

In India, there are 300 different snake species=> 66 are venomous=> 61 of them rare.
4 Major killers: Spectacled cobra, Russels viper, Saw scaled Viper, Common Krait.
Telangana and Andhra Pradesh= highest number of snake bites.

Reason and challenges:

Juntaa lacks awareness about snakes, their habitat and habits.

Junk filled neighborhoods => rats breed => snakes come for food.
Garbage dump not cleaned regularly => snakes useem for shelter.
Agrarian encroachment in jungle area. Snakes dont bite humans unless they feel
threatened.
Anti-venom very expensive, ~3000 rupees per shot.

Pharma companies only manufacture anti-venoms against those 4 killers. Lack of

research against venom of other species.

Illiterate villagers take patient to quacks and witchdoctors.

Lack of transport and communication infrastructure in interior part. Victim dies before
reaching hospital in time.

If victim arrives late, the doctor gives him large dose of anti-venom- sometimes leading
to side effects, shock and death.

First-aid in Snake Bite

1. To control anxiety, reassure the victim that death is not imminent and medical care is
available.
2. Otherwise, hell panic=> heart rate increase=> venom spreads through blood more
quickly.
3. Remove shoes, rings, watches, jewelry and tight clothing.
4. Immobilize the victims bitten limb using a splint and lightly put a bandage.
5. Be prepared for cardiopulmonary resuscitation (CPR).
6. Do not freeze or apply extreme cold to the area of bite.
7. Do not apply any kind herbal or folk remedy.
8. Do not attempt to suck out venom with your mouth.
9. Do not give the victim alcohol, drugs, tea, coffee etc.
Langurs are multiple species

IUCN: Least Concern.

Found across Asia- can survive in Himalayan highlands, Western Ghats rainforest and
even Rajasthans desert.
But, it is not a single species, Semnopithecus entellus (Hanuman Langur) consist of at
least four distinct species.

Only for information, else ?

Langur species
habitat
Semnopithecus entellus (Hanuman Langur) across north India
S. priam
drier parts of peninsular India
S. hypoleucos
mostly in the Western Ghats
S.Schistaceus
Himalayas but genetic profiling still undergoing.

Their feeding, migration behavior varies.

Need to assess status of each population, to make customized conversation plans for each
of them.

Ozone layer recovering thanks to Montreal

Ozone gas in stratosphere prevents 99.5% entry of UV radiation (255nm) on earth.

Chlorofluorocarbons / freons: non-reactive, non-flammable, non-toxic. Used in
Refrigerators, spray cans, insulation foam and propellant.
Once theyre released in atmosphere, they reach stratosphere=> react with UV=> release
Chlorine free radicals => Ozone broken.
1980s: Scientists realized Chlorofluorocarbons (CFCs) reach had damaged Ozone layer
above Antarctica. Result?
o Skin cancer, Cataract, Sunburns
o Phytoplanktons die=> fish population declines.
o Soil Moisutre content declines, plant proteins are mutated=> plant growth
affected.
o Fibers and Wall paints fade faster.
Late 80s: Montreal Protocol signed, to cut down use of
o chlorofluorocarbons (CFCs) / freons
o Halons in fire-extinguishers
2014: CFC has declined by 90%, Ozone layer showing signs of recovery- as per United
Nations Environment Program (UNEP) and the World Meteorological Organization
(WMO).
This will also prevented 2 million skin cancer cases per year.
2050: Ozone Layer will recover near mid-latitudes
2075: Ozone layer will recover near Antarctic.

Challenges:
1. CFCs are replaced with HFCs (Hydroflurocarbons). Although HFCs dont deplete Ozone
layer but theyre greenhouse gases, hence contribute to global warming.
2. Researchers found Carbon tetrachloride increased in atmosphere. This is a banned ozonedepleting carcinogenic solvent.
3. Meaning, some companies in the third world countries are still using it illegally, as a
cheaper alternative to HFCs.
IndARC

IndARC to monitor Arctic climate cycles, its impact on Monsoon

Indias first underwater moored observatory

set up in the Kongsfjorden fjord, in Norway near the North Pole
This place is ~1000 kms away from North Pole, its considered a natural laboratory for
studying the Arctic climate variability, because it gets climatic signals from both Arctic
and Atlantic Oceans.

Benefits:
1. Realtime data collection on Ocean currents, salinity, temperature etc.
2. To understand the Arctic climate process .
3. Because Arctic glacier melting will trigger changes in weather patterns and ocean
currents.
4. Thus, it can affect Indian monsoon system as well.
5. Designed by:
1. Earth System Science Organisation (ESSO)
2. National Centre for Antarctic and Ocean Research (NCAOR)
Ministry of Earth Science: 100 days

Issued agro-meterological advisory to millions of farmers

Setup 1.1 petaflop High Performance Computing system for weather and climate
forecasts.
Completed the City Weather Forecast projects in 300+cities

Place
What
Vaishnodevi
heliport Aviation Weather Operating System (AWOS)
Hyderabad
International Training Centre in Operational Oceanography
Kerala
Coastal Zone Management Plans (CZMP)
TN and Andhra
Shoreline changes maps prepared
Pradesh
IndARC: First Arctic Mooring system off the Norway coast (as we
Norway
discussed in previous topic.)
first Indo-US joint oceanographic expedition in the Bay of Bengal for
USA
research on Monsoon
Suggested Rabi crop reforms by Agro ministry

We import edible oil worth ~60,000 crores per year.

Last year, delayed rainfall led to less cultivation of oilseeds.
Therefore, agriculture ministry has suggested following reforms for this Rabi season
However, hope of sowing coverage for oilseeds crops during rabi sowing has been raised,
due to recent delay in rains.
Suggestions from Agro-ministry to states for sowing of oil-seeds

States
Oil-seed crops
duration
Rainfed areas of Assam, Chattisgarh, Eastern UP and
rapeseeds/mustard After paddy crop
Bihar
linseed
and After
kharif
Madhya Pradesh and Maharashtra
safflower
crops
Haryana, Punjab, Western UP and Bihar
sunflower
After Rabi crops
Gujarat, Karnataka and Andhra Pradesh.
Ground nut
During rabi
Benefits:

The oilseeds crops can be cultivated very easily as an inter-crop.

This will increase farmers income + socio-economic status.
Less dependence on import of edible oil.

New hybrids: Tea and Banana

Mothan

TTRI-2

New hybrid of Banana.

By National research centre for Banana
High yield even on marginal lands.
Tolerant to leaf spot, wilt and other dieases.
Tea clone variety
By tea research association.
35% higher yield than previous version TTRI-1.

Tags: Rajtanil
[Rights Issue] Bezbaruah Commission on plight of North Eastern People, Nido Tania
murder
polity2 months Ago40 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
Topic important for UPSC Mains, because in 2014:
1. Nido Tania death
2. Mary Kom and plight of North Eastern sportsmen.

2014, January: Arunanchal Student Nido Tania- asked for address in Delhi, was mocked
for his look and hairstyle. Fight breaks out, he is killed.
Home minister formed a Commission under retired IAS M P Bezbaruah
To look into concerns of people hailing from north-eastern states living and working in
other parts of the country.
2014, Aug: Bezbaruah recommends following:

Salient Recommendations for safety of NE people working in Rest of India

Major reforms by Bezbaruah commission
Social
Government should setup a dedicated facebook, whatsapp, helpline and email
media
support for reaching out to North Eastern people living in rest of India.
Set up a dedicate panel of lawyers to fight cases for North Eastern vitcims.
Lawyers
50% of these lawyers should be women.

Awareness

Police
Relief
Sports

Legal awareness campaigns in the areas of Delhi with significant

concentration of North Easterners.
Rights awareness lectures for the NE-freshers in JNU, DU and other
universities

Nodal police stations for North Easterners. So the police officer can immediately
register FIR instead of asking the victim to go to other stations.
Relief fund for helping victims of hate crime, giving money to their relatives
to dispose body, travelling from faraway parts of North East etc.

Sports ministry should hold regular national/international sports events in the

Northeast

Stadiums in each state of NE.

All these reforms are to be implemented in a phased manner

Timeframe for Reforms
Immediate 6 months to 1 year
Short term 1 to 1.5 years
Long term 1.5 to 3 years
September 2014: Home minister ordered chief secretaries of all states to implement this report.
Tags: Rajtanil, Rights-Issues
[Space] ISRO Mars Orbiter Mission (MoM) Mangalyaan: Payloads, Purpose, Argument
favor & against
Space-Tech2 months Ago49 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.

Prologue
Mars Planet: Basics
Mars: Past missions
MoM (ISRO) vs MAVEN (NASA)
1. MoMs Launch Vehicle
2. MoM @Mars
3. Payloads and purpose?
5. Do we need Mars Mission?
1. Anti-Arguments
2. Pro-arguments
1. #1: cash will be recovered
2. #2: Soft Power
3. #3: Did not steal from poors month
4. #4: Making History
5. #5: Misc.
6. Mock Questions
7. Correct Answers for the MCQs
Prologue

Old article, just updating a few bits after Mangalyaan reached Mars in September 2014.
There is no dearth of ball by ball commentary and technical articles in newspaper, but for
the exam focus should be on: basics, purpose, pros and cons.
Otherwise September seems to be the busiest and tiresome month of 2014 for competitive
aspirants- Modi Government launching a new scheme-committee-initiative every day, SC
giving a new landmark verdict every day, newspapers are littered with columns on
foreign relations, Ebola, Mars, ISIS, J&K floods, Scotland and what not.

Mars Planet: Basics

Has two moons: Phobos and Deimos

4th planet from Sun
2nd smallest planet in the Solar system after Mercury.
Diameter: ~6800 kms (Mars); Earth (~12700 kms)
Volume wise, ~8 Mars would fit inside our Earth.
One Martian day: 24 hours 37 minutes
One Martian year: 687 days
Mars is also tilted on its axis (25 degrees).
Mars gravity 1/10th of Earth.
When Sun and Mars are in opposite direction, it can be easily observed from Earth.

How far is Mars from Earth?

shortest
farthest
56 million kms 400 million kms, when both are on opposite sides of solar system.
Mars: Past missions
List is not exhaustive
Success
USSR Mars orbiter (70s)

#EPICFAILS
USSR: Korabl series, Mars 1969 series,
Phobos Grunt

USA / NASA

Marine series (~mid 60s)

Viking series (mid 70s)
Pathfinder (~mid 90s)
Rovers: Spirt, Opportunity (2003)
Phoenix (2007)
Curiosity (2011)

USA Mariner series before mid-60s

Maven (2013-14)

European Space Agency (2003) Beagal lender Japans Nozomi- failed to enter Mars orbit
(although images lost)
(1998-2003)
ISROs Mars Orbitor Mission (2013-14)
MoM (ISRO) vs MAVEN (NASA)
ISROs MoM
Mars Orbitor Mission
launch vehicle=PSLV
launched on 5th Nov 2013
reached Mars on 24th Sep 2014
launched from Sriharikota, Andhra
Rs.450 crore
~1,350 kg
Doing three studies:

NASAs Maven
Mars Atmosphere and Volatile Evolution Mission
(MAVEN)
Atlas V rockets. (more powerful than PSLV)
18th Nov 2013
Reached Mars on 21st Sep 2014.
launched from Cape Canaveral in Florida, US.
$671 million
??

1. Surface/geology: using camera

and spectrometer.
2. (Particle) Environment: using
MENCA
3. Atmosphere: using Photometer
and Methane sensor
has five instruments/payloads

Only study Martian (upper) atmosphere.

based on that data: Itll give clues about
martian climate, geologic, and geochemical
conditions over time
Will find the answer: Did Mars ever had
suitable environment to support life?

has eight instrument- spectrograph, magnetometer, ion

analyzer etc.
The spacecraft may also provide communications
relay support for future Mars landers and rovers.

MoMs Launch Vehicle

PSLV
GSLV
Polar satellite launch vehicle Geosynchronous satellite launch vehicle
Can carry upto 1600 kg satellite 2500kg
ISRO had used PSLV XL (C25) launch vehicle to launch the Mangalyaan (Mars spacecraft).
Why?

1. At that time, GSLV tests were not successful. Last time they tried GSLV to launch
GSAT-14 satellite and failed because of fuel leak. (Aug 2013)
2. Mangalyaan weighs ~1300 kg. PSLV can easily carry this weight.
3. PSLV is tried and tested technology.
Factoids

MoM/Mangalyaan: first Indian spacecraft to cross Earths escape velocity of 11.2 km per
second.
Mangalyaan traveled for ~300 days, covering ~65 crore kilometers, and reached Martian
orbit in September 2014.
Mangalyan is not the fastest spacecraft to reach Mars. Others are far ahead of It, in terms
of speed. For example- European Space Agencys Mars mission (2003) reached Mars in
~210 days.
MoM cost 7 rupees per kms to reach Mars.

MoM @Mars

Nov 2013: MoM Launched from Sriharikota, Andhra Pradesh

Sep 2014: MoM reached Mars orbit

MoM in Mars Orbit

Periapsis: nearest point
~420 kms
Apoapsis: farthest point
~77,000 kms
time to finish one circle of Mars ~73 hours / ~ 3 days.
Orbit inclination
150 degrees
Payloads and purpose?

Q. What is the purpose of sending MoM?

Ans. To find out composition of Mars SAM (Surface Atmosphere Minerals), using five
payloads/instruments:
Study
Mars

Payload

detail

Surface

1.Color Camera

2.MENCA
Gandhi

3.Methane
Sensor
Atmosphere

4.Photometer

Minerals

5.Spectrometer

Mars Color camera.

Study surface, dust storms etc.
Take photos of Mars satellites: Phobos and Deimos.
Mars Exospheric Neutral Composition Analyzer.
To study neutral gas atoms in the Martian atmosphere.
Methane Sensor for Mars (MSM).
If methane + water detected=possible that at some point of
time, Mars had supported life form.
Lyman Alpha Photometer (LAP).
To Measure hydrogen and deuterium.
Deuterium = heavier than hydrogen.Water made from
heavy hydrogen is heavier and hence it evaporates
differently.
Knowing Hydrogen : Deuterium ratio will help answer
how did water vanish from Mars?
Thermal Infrared Imaging spectrometer (TIS). To study
mineral resources of Mars
And to help UPSC update its Mains GS1 syllabus:
Distribution of key natural resources across the Earth AND
Mars.

ISTRAC

ISRO Telemetry, Tracking & Command Network @Banglore.

Previously tracked and commanded Chandrayaan-1
Now doing the same for Mars orbiter.

Do we need Mars Mission?

(For Group Discussion GD/Interview)

Anti-Arguments
1. Crores of rupee wasted- could be used to feed millions of hungry people in India.
Millions of children suffering from malnutrition, half the junta doesnt have toilets- Modi
himself highlighting this issue in his every speech.
2. Better get those thousands of ISRO scientists and engineers to comeup with new
technology to fix malnutrition and malnutrition.
3. ISROs budget is better spent to meet Indias communication needs and bring down
digital divide.
4. Even Airtel has sued ISRO for not meeting its contract obligations. So, ISRO better focus
on present rather than doing some mars research whose benefits can materialize may be
after 100-200 years.
5. ISRO has installed a fancy methane detector in this spacecraft. But NASAs curiosity
rover data has already concluded that Mars environment doesnt contain methane. ISRO
is only doing gaddha majoori (donkey labour). Counter argument: NASAs Curiosity
rover measured presence of methane in a small area. But ISRO will scan entire Martian
environment to detect Methane.
6. GSLV testing has not giving positive result yet. Had they waited for GSLV testing to
finish- Mars Mission could be done in 2016. (Even Chandrayan-2 project is stalled due to
this GSLV problem). But it seems ISRO chairman wants media publicity before retiring,
so made he all the haste to launch Mars Mission in 2013 using PSLV (instead of GSLV).
7. Less of a scientific pursuit and more of a space race with China- me too going on Mars.
First India should overtake China in terms of GDP and poverty removal.
8. Britain, Japan, World Bank etc. reduce the donation to India thinking since India has lot
of money of run such Mars adventures, they must have money to take care of their poors
as well.
(To drag the argument further non-seriously)
1. This is just publicity stunt to divert attention from real issues. Earlier Chandryaan found
traces of water on Moon, then Aaj-tak etc. Hindi channels ran 24/7 reports for weeks. In
the meantime government can go scot free with bigger scams and inflation.
2. And most importantly, the youngsters have to mugup one more stupid topic for the
competitive exams. The financial cost of combined man-hours wasted in studying such
topics= alone worth 13% of GDP, so much for Demographic dividend.
Pro-arguments
#1: cash will be recovered

At the core of Anti arguments= Cash that ISRO has wasted in this Mars project. But in reality
its an investment that will be recovered within a few decades, How?
1. Many countries in Asia, Africa and Latin America are seeing good economic growth. But
they lack skilled manpower, technology and budget to setup their own launch vehicles
and premier space agencies.
2. But they too need satellites for communication and military. So, they outsource the
satellite launch/survey work to established players.
3. ISROs commercial Arm ANTRIX makes annual profit of ~100 crore rupees from such
outsourced contracts.
4. ISRO spent only 450 crore rupees. NASA has spent billions of dollars on Mars. This
Makes ISRO world-famous as a prudent cost saving space agency= more clients via its
commercial arm ANTRIX = more money incoming.
So, we can see this Mars mission as ISROs 450 crore rupees advertisement / PR campaign- to
impress those potential clients and get more contracts=> money will be recovered and profit
will be made.
#2: Soft Power
As ISRO establishes reputation, gets more contracts from third world- it can be used as a tool to
exercise soft power. How?
give

take

personnel /technology exchange

programs with developing countries
giving discounts on their space
projects/infrastructure

their support for Indias claim to Permanent

seat in UNSC
their votes in our favour whenever
Kashmir/Arunachal issues popup in UN
General Assembly
Oil-gas exploration contracts in their
territory and so on.

In short, there is more to international relations than what meets the eyes. 450 crore is a very
petty amount to accomplish many diplomatic victories- [compared to the thousands of crore
rupees weve given to Bangladesh, Myanmar, Nepal and Bhutan via soft loans so they dont
shelter terrorists and secessionists on their soil.]
#3: Did not steal from poors month

1. Government spends barely ~0.35% of budget on space programs. And even out of that
~0.35% allocation, ISRO spent only 8% on Mars Missions. There are plenty of
government schemes with way bigger budgetary allotments for poor people. So its not
like government stopped/reduced expenditure on some xyz scheme for poors to fund
ISROs Mars adventure.
2. Agreed, poverty should be removed, and everyone must get food security. But the
proposed food security bill will need ~1-2 lakh crores rupees every year.
3. Even If ISRO didnt spend 450 crores on Mars, the money thus saved- wont make a big
contribution to food security anyways.
#4: Making History

Until now, only three agencies had succeeded in Mars Mission

1. European Space Agency (ESA) of European consortium,
2. National Aeronautics and Space Administration (NASA) of the US
3. Roscosmos of Russia
4. And ISRO became the fourth one.
Even USA, Japan and China failed to reach mars in their first attempt.
Overall, 51 missions made so far, only 21 have succeeded.
ISROs Mars mission succeeded in its first attempt (that too without coaching), hence its
a milestone in the history of space explorations.
Even China has applauded this event as pride of Asia.

#5: Misc.
1. Will attract talented desi scientist/engineers to join ISRO. Thus, braindrain will decline.
2. Data gathered from ISROs mission, can be used to send manned mission (astronauts) on
Mars later, with collaboration of NASA etc.
3. The technology used in this mission has potential application in weather forecast,
computer tech, health-medicine etc. in future.
4. Space research is not waste of time. 1999 Odisha cyclone killed >10000 people. But 2013
cyclone Phalin killed very few, because Indian satellite gave accurate weather prediction
about where and when the storm would hit. Space research has given immense benefits to
Agriculture, education, fisheries and defense. (Counter argument: then send more
weather/education satellites- not spacecrafts to Moon and Mars!)
5. Humanity would not have progressed, if we had not taken such leaps into the unknown.
And space is indeed the biggest unknown out there.
Mock Questions
Q1. Mars is larger / higher than Earth in terms of

1.
2.
3.
4.

gravity
diameter
no. of moons
days in a year

Correct choices
A.
B.
C.
D.

All of them
Only 3 and 4
Only 1, 3 and 4
None of them

Q2. Which of the following missions have failed to reach Mars?

1. Viking
2. Phobos
3. Nozomi
Correct choices
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them

Q3. Why did ISROs Mangalyaan or MoM used PSLV instead of GSLV as launch vehicle?
a.
b.
c.
d.

PSLV can carry more weight than GSLV

PSLV could carry MoMs weight and had proven track record of success.
Both A and B
Neither A nor B

Q4. Similarities between ISROs MoM and NASAs MAVEN missions?

1. Both lack Land rovers
2. Both aim to study Martian atmosphere
3. Both were launched and reached Mars in the same months.
Correct statements are
A. Only 1 and 2
B. Only 2 and 3

C. Only 1 and 3
D. All of them
Q5. Whats the purpose of ISROs Mars mission?
1. Study its surface
2. study its atmosphere
3. Study its mineral composition
Correct statements are
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them

Q6. Incorrect pairs of ISRO Mars payloads vs. purpose

1. MENCA: Methane and Natural gas
2. Spectrometer: study surface and dust storms
3. Photometer: Study Hydrogen and deuterium
Answer choices
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Mains
1. India, a country faced with plethora of socio-economic problems, should not involve in
space race with developed countries. Do you agree? Justify your stand. 200 words
2. Discuss the importance of ISROs MoM Mission as a milestone event in the space
exploration programs of India. 200 words.
3. Write an Essay: The hunger of exploration and the thrill of discovery are not for the fainthearted.
Correct Answers for the MCQs
1. B: only 3 (moons) and 4 (year)
2. B: 2 and 3 phobos and nazomi

3.
4.
5.
6.

only B
D all correct
D study SAM: Surface-atmosphere minerals
A: 1 and 2 wrong. MENCA is for neutral gas, not Natural gas.

Tags: space-tech
[Defense Diplomacy] Defense FDI relaxed, Navy War-room leak, Exercise Komodo
Diplomacy2 months Ago69 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. D1: Exercise Komodo
2. D2: Defense FDI reformed
3. D3: Navy War-room leak & Transfer of Technology contracts
D1: Exercise Komodo

@Indonesia (28th March to 3rd April) 2014

Navies of many countries: India, Indonesia, USA, China, Russia etc.
India has sent INS Sukanya with Chetak helicopter.

This exercise will benefit in future operations for:

1.
2.
3.
4.

Humanitarian Assistance
Disaster Relief, civilian rescue
Oil Leakage Control
Sports and Social Interaction among defence personnel.

D2: Defense FDI reformed (Sep 2014)

Reforms In the Defense Sector FDI in India
Old policy
New policy
49% govt. approval
Above 49% also allowed, if access to modern
FDI
26%
and state of art technology
FII

banned

24% automatic approval

Allowed FPI, FII, QFI, NRI, foreign venture

capital investment.
Only 24% because hot money and sometimes
hard to trace real owners.

Single Indian resident to have

NO such requirement
51% share
Three years lock-in period on
Duration
No such requirement.
foreign investor.
JV

Who approves what?

Investment limit Approving agency
Upto 1200 crore FIPB
>1200 crore
CCEA
>49% FDI
CCS (cabinet committee on security)
Challenges in Defence FDI
1. 49% FDI means the foreigner still cant get management control of the Joint ventures
with Indian companies.
2. Hence theyll be hesitant in transferring the proprietary technology to India.
3. This was the same reason why old policy did not attract large investmnt.
4. Secondly, Government has yet to notify what constitutes modern and state of art
technology, (because there more than 49% FDI permitted, and foreign companies may
get attract to invest and transfer secret technology.)
D2: Defense Procurement:
Defense
Acquisition
Council
(DAC)
is
chaired
This DAC cleared following proposals (in August 2014):

by

Defense

Minister.

1. Stopped the tender process to import helicopters for army. (perhaps dont want to burn
hands again like UPA did with AgustaWestland)
2. Instead, Government will now buy 400 desi helicopters from Hindustan Aeronautics Ltd.
for moving men and material in border region.
3. Will induct 118 new (Desi) Arjun tanks.
4. Will produce Self Propelled (SP) guns to mount on Arjun tank- this will give us
advantage in swift desert battles in Rajasthan and Western Border.
5. Will upgrade six submarines.

D3: Navy War-room leak & Transfer of Technology contracts

(Interview)
1. What do you know about the Navy War room leak case? What is the present status?
2. What are your views on transfer of technology (ToT) contract?
What is Navy war room leak?

This is about spy scandal in purchase of Scorpene submarines from France.

Directorate of Naval operations in New Delhi is known as Navy war room.
Ravi Shankaran, a retired Naval officer cum London-based arms dealer cum relative of
then Navy chief Arun Prakash.
Ravi acquired certain sensitive documents from Navy war room, and leaked them to
Thales (French company that makes Scorpene submarines).
Another middleman Abhishek Verma helped transferring money.

Year 2005:

Then Defence minister Pranab Mukharjee approved the deal.

Navy conducts a secret inquiry, dismisses three officers but nothing reported to courts or
CBI.
Media exposes the scam. CBI starts inquiry but at turtle speed.

Year 2007

Prashan Bhushan filed PIL.

Delhi HC orders CBI to make haste.
CBI interrogates Ravis partners, and finds out Ravi escaped India without any valid
travel documents. He may be hiding in UK, Sweden or some other European country.

2010

2013
March
2014

CBI locates him in UK, gets an arrest warrant.

Ravi surrenders to London court.
British Secretary of State signs Ravis extradition treaty.
Ravi challenges it in London court.
London high court rules in favour of Ravi, that he cannot be extradited to
India.

Transfer of technology (ToT) contract?

These Scorpene Submarines were to be acquired under transfer of technology (ToT)

contract.
Meaning, the seller company (Thales, France) will not only sell the product
(submarine), but also handover the technology of its critical components.

But, until now the problem was= Seller Company [Original equipment manufacturer/OEM]
would demand

That we must pay them additional license fees/royalty for such tech.transfer. and OR
That our local companies (Defence factor/DRDO etc) CANNOT export or sell items
produced with such technology.

But, Defense Procurement Procedure (DPP) 2013 has fixed this issue (atleast in theory!)
DPP-2013 says that:
1. The TOT should be provided without licence fee
2. There should be no restriction on domestic production, sale or export- of any items
manufactured with help of such ToT technologies.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-India-O, Rajtanil
[Diplomacy] India-ASEAN: Relation, FTAs in Goods, services and investment
Diplomacy2 months Ago23 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. ASEAN: Origin
1. Musyawarah & Mufakat
2. TAC Treaty
3. Timeline: Growth of ASEAN since 90s
1. ASEAN Community (2015)
2. ASEAN Performance: GOOD
3. ASEAN Performance: NOT so GOOD
4. Chinese Arm twisting
4. India-ASEAN Relations

1. Why ASEAN important for India?

2. India-ASEAN FTAs: A Timeline
3. India ASEAN FTA in Goods
4. India ASEAN FTA in services and investment
5. Benefits of FTA in services and investment?
5. Mock Questions for Mains
Prologue

This is an old article, Ive only updated the bottom part of it (FTA in services and
investment)
As such that FTA topic was part of September week1 current series but for better revision
of theory + trade relations, Ive fitted it into this old article.

ASEAN: Origin

Recall the Article on Colonization of Asia. We had seen how the British, French and
Americans had colonized almost entire South Asia.
After Second World War, most of these colonies attained independence. But they also
had internal dispute regarding territories and borders.
One such dispute was Indonesia-Malaysia conflict over the Borneo islands.
This conflict + the then ongoing Vietnam War raised fears of increased external
involvement in the newly independent states.
They feared that south east region would become a theatre of western vs. communist
ideologies
Hence they decided to form a common platform:
To resolve bilateral issues among themselves
Present a collective front to the world.
1967, five countries signed Bangkok declaration to form the Association of Southeast
Asian Nations (ASEAN), later another 5 joined. Thus today ASEAN has 10 members

List of 10 ASEAN nations

6. Brunei
1.
2.
3.
4.
5.

Indonesia (ASEAN HQ is here, in Jakarta)

Malaysia
Philippines
Singapore
Thailand

7. Cambodia
8. Laos
9. Vietnam

10. Myanmar

Musyawarah & Mufakat

ASEAN follows the principle of ASEAN way. Meaning,
1.
2.
3.
4.
5.

Musyawarah And Mufakat [deliberation and consensus]

dont use force/confrontation
dont interfere in the internal matters of states
Informal discussion
minimal institutionalization

To achieve the ASEAN way, Treaty of Amity and Cooperation in Southeast Asia (TAC) was
signed.
TAC Treaty
It provides the guiding principles of ASEAN
1.
2.
3.
4.
5.

theyll not interfere in the internal affairs of one another,

theyll not use threat or use of force to settle differences / disputes
theyll settle of differences or disputes by peaceful means,
Theyll effectively cooperate among themselves.
theyll mutually respect each others independence, sovereignty, equality, territorial
integrity and national identity
6. Every State has right lead its national existence free from external interference,
subversion or coercion,
India had signed TAC treaty with ASEAN in 2003.
Timeline: Growth of ASEAN since 90s
1994 ASEAN regional forum (ARF). already discussed in separate article click me
ASEAN+3 is formed to increase regional integration. This includes
1997

1. China
2. Japan
3. South Korea

2002 Treaty to control haze pollution in South East Asia

2006 ASEAN gets observer status in UNGA (General assembly)

2007 Cebu declaration for energy securities and renewable energy.
Chiang Mai Initiative (CMI)
2010

Asean Human Rights Declaration

21st ASEAN Summit in Phnom Penh Combodia with theme:ASEAN: One
Community, One Destiny

22nd ASEAN summit in Brunei, theme: Our People, Our Future Together.

2012

2013

It is a currency swap agreement among ASEAN +3,

It provides emergency liquidity to those economies during crises.

2015 ASEAN community will be setup.

ASEAN Community (2015)
Similar to European Union. will be setup in 2015 and will have three pillars
1. ASEAN Political Security Community
2. ASEAN Economic Community
3. ASEAN Socio-Cultural Community
ASEAN Performance: GOOD
ASEAN has a mixed record of achievements since its formation.
ASEAN performed well here:
Successfully maintaining peace in the region. e.g. during Thailand and Cambodia
Peace
conflict over Preah Vihear temple (2011)
Has made comprehensive deals like

Economy

ASEAN Free Trade Area (AFTA)

ASEAN Comprehensive Investment Area(ACIA)
Chiang Mai Initiative (CMI)
Aims to setup the ASEAN Economic Community 2015, having a single market
and production base.

ASEAN Performance: NOT so GOOD

ASEAN didnot perform well here

Economy
ASEAN Failed to prevent the 1997 financial crisis.
ASEAN has been too soft on the authoritarian regime of Myanmar.
Despite call from international community it didnt suspend Myanmar or
put economic sanction on it during the military regimes crackdown on
Human
peaceful protestors.
rights
2012: ASEAN released declaration on Human rights. But led to lot of
protests from civil society and NGOs. They terms it as just another piece of
paper.

Environment

In 2002, ASEAN came up with Treaty to control haze pollution in South

East Asia. still there were outbreaks of Haze in 2005 and 06.
ASEAN also has mechanism for wildlife protection. Yet it hasnt
drastically reduced the illegal trade in endangered species (especially for
medicine).

Chinese Arm twisting

ASEAN is becoming a victim of Chinese assertiveness/pseudo-bullying. for example in the the
meeting of ASEAN (Dec 2012@ Phnom Penh), no joint communique was issued-for the first
time in the 45 years of history of ASEAN Summits. WHY? Because

Cambodia (host of the summit) is an ally of China

China did not want the joint communique text to mention South China Sea as a standing
conflict.
but other gang members- Vietnam, Philippines, Malaysia and Brunei wanted the text to
contain their respective grievances regarding territorial issues with China.
In wake of such unprecedented influencing of China into the ASEAN matters, the
ASEAN is looking towards India like never before.
India is being seen as the counter balance to China at the ASEAN platform.

Now, lets focus on:

India-ASEAN Relations
Combined Population ~1.8 billion = ~1/4th of total world population
Combined GDP
~4 trillion USD
Two way investment 40+ billion dollars in past decade

India is actively contributing to ASEAN+1, the ASEAN Regional Forum (ARF), the East
Asia Summit (EAS) and the ASEAN Defense Ministers Meeting (ADMM) Plus etc.
We have institutionalized annual summits, ministerial consultations; and nearly 25
mechanisms for dialogue and cooperation.

Timeline of India-ASEAN relations

1990 India starts engaging with ASEAN, part of Look East Policy.
1992 India becomes a sectoral dialogue partner of ASEAN
1996 India becomes full dialogue partner of ASEAN
2002 India starts having annual summits with ASEAN
India accedes to the Treaty of Amity and Cooperation in Southeast Asia (TAC)India signs
2003
counter-terrorism declaration with ASEAN.
FTA* in goods signed
2009
This established Free Trade Area established between India-ASEAN.
2010

FTA in goods becomes effective

20th Anniversary of ASEAN-India Dialogue.

ASEAN India Commemorative Summit is held.
Now India becomes a strategic partner of ASEAN
FTA* in services and investment- talks concluded

2012

2014

FTA in services and investment signed- by all ASEAN nations with India. Except
Philippines.

Why ASEAN important for India?

Strategically
1. ASEAN nations are at the intersections of major land and sea routes.
2. The Future architecture of Asia is going to be shaped by the US, China and India.
3. Maritime boundary disputes between China and a number of ASEAN countries; claims
over South China Sea hence those ASEAN countries look towards India as a
counterbalance against China.
4. For India, a stronger posturing at ASEAN provides its stature as a global power. After all,
without becoming a strong regional player first, we cannot dream of becoming global
power!
Energy

1. ASEAN countries, particularly Myanmar, Vietnam and Malaysia can potentially

contribute to Indias energy security.
2. Oil and natural gas deposits in the South China Sea region.
3. India and several ASEAN countries are net importers of hydrocarbon. They need to
develop alternative energy sources. But R&D in renewable =need truckload of ca$H
hence regional cooperation essential for financing those projects.
Economy
1.
2.
3.
4.

In terms of income, India-ASEAN community is roughly the size of the EU

In terms of Trade, India-ASEAN community NAFTA.
The ASEAN is Indias fourth-largest trading partner after the EU, the US and China.
India ASEAN is slated to grow faster than the rest of the world due to a favorable
demographic profile and growing market for goods and services.
5. Indias trade relations are shifting from West economies towards the East, comprising of
Japan, China, Korea and ASEAN.
6. India-ASEAN linkage provides for large-scale movement of people, capital, ideas and
creativity.
For Indian States
1. The coastal states: West Bengal, Orissa, Andhra Pradesh and Tamil Nadu are looking to
rebuild maritime links with ASEAN nations to boost their own trade and economy.
2. Union government is also building infrastructure while in the Northeastern states so they
can engage in commerce with South East Asian nations.
Diseases
Pandemics and disease are no longer limited to national boundaries and have assumed a transnational dimension. SARS and H1N1 virus have in recent times afflicted the region. Hence
cooperation is essential between India-ASEAN.
Now lets take a look @India-ASEAN trade relations
India-ASEAN FTAs: A Timeline
Timeline of India ASEAN FTAs
2009
India ASEAN FTA in goods signed.
2010
India-ASEAN FTA in goods became effective.
2012
India ASEAN FTA in services and investment-talks concluded.
2013,
Indian Cabinet approved FTA in services. (Those ASEAN nations need to get such

December

2014, Sep

FTAs approved from their respective parliaments.)

Nine out of ten ASEAN countries have signed FTA in services and
investment, with India.
Only Philippines remains. Philippines opposed saying itll harm their
domestic service sector given the Indias expertise (and cheapness) in the
services sector.

Trade volume
Year Trade /expectation (USD)
2012
75 billion
By 2015 100 billion
By 2022 200 billion
India ASEAN FTA in Goods
1. Signed in 2009, effective from 2012.
2. Before this agreement, the India-ASEAN annual trade was ~30 billion but quickly
jumped to ~75 billion$ in 2012.
3. Main products: metal parts and components, electronic components, processed fruits,
ceramics, gloves and knittings, fertilizers, chemicals like fatty alcohol, coconut and
vegetable oil, refined glycerine.
4. But did India benefit from this? Answer is no.
5. Cheaper palm oil from ASEAN = hurting local producers in Kerala.
6. Our groundnut and pepper farmers also suffering due to cheaper ASEAN imports.
7. Hence over all, the goods import from ASEAN nations increased but our exports did not
increase. Consequently, trade deficit between India-ASEAN widened.
8. Thus India did not benefit much from FTA in goods.
9. However, FTA in services may help in reducing trade deficit with ASEAN, because
weve comparative advantage over them in education, healthcare, IT-software,
Accountancy and consultancy services.
India ASEAN FTA in services and investment

1.

This Trade agreement in services and investment =follows 8+1+1 pattern.

Meaning, agreement provides 3 separate arrangements for:
For

8 = all ASEAN countries except Indonesia and Philippines

countries
2.
For
Indonesia
3.
For
Philippines

10. Special terms because services sector is vital for their economies, and
theyre worried their local service sector will be hurt while competing with
Indias strong services sector.
11. Philippines most worried because ~50% of their workforce in IT sector*

*recall we are facing similar issue in FTA in Goods, because of cheaper plantation
products from ASEAN
Although India is not putting all eggs in one FTA basket. Were also doing bilateral trade
agreements with individual countries in the region. for example

FTA already done

1. Singapore (CECA in 05)

2. Malaysia (CECA in 11)

In process

1. Indonesia
2. Thailand

Benefits of FTA in services and investment?

1. Will facilitate the moment of manpower and investment between India and ASEAN.
2. Will help reducing our trade deficit with ASEAN. (Because in the goods sector, we are
importing more and exporting less. Service sector will be reverse.)
3. Will boost the trade between India and ASEAN to $100 billion by 2015.
4. Provides joint review, dispute settlement and other mechanisms to iron out problems.
5. Contains an annex on Movement of Natural persons- Business Visitors, Managers,
Executives Specialists and Contractual Service Suppliers. This annex will help provide
facilitate movement of Indian service professional in ASEAN countries.
6. This will be a stepping stone in moving towards the regional comprehensive economic
partnership (RCEP) pact.
7. RCEP is to be signed between ASEAN and its six Australia, China, India, Japan,
South Korea and New Zealand.
8. The agreement will also facilitate investments in both regions
Indian investors want to enter ASEAN for ASEAN investors want to enter India for
1. IT
1. construction services
2. automobiles
2. Transportation services.
3. engineering
3. engineering services

4. Pharmaceuticals

4. shipping

Mock Questions for Mains

Write a note on following, 200 words each:
1. The ASEAN way of musyawarah and mufakat resonates with Indias foreign policy and
world view. Elaborate
2. Explain the importance of ASEAN for Indias look east policy
3. Enumerate the strategic and economic interests of India in South East Asia. How can
ASEAN help achieving them?
4. A healthy relation with ASEAN nations can help transform the Indian economy in
general and Northeast India in particular. Explain
5. There is tremendous scope for India to leverage its soft power in South East Asia.
Elaborate.
6. Chinese assertiveness in ASEAN is both an opportunity and a challenge for India.
Comment.
7. While India had signed a FTA in goods with ASEAN in 2009, the two sides have
recently concluded a FTA in services. Examine the impact of 2009 FTA in goods and
analyze the future potential of FTA in services and investment.
8. Provide an account of Indias increasing involvement in the South East Asian region.
9. Write a note on Indian Diaspora in South East Asia.
10. India ASEAN vision 2020
[Current] Economy SepW1: Wilful Defaulters, MNREGA
Competitiveness Index, BSNL-MTNL Merger, Gold Account scheme

reformed,

Economy2 months Ago35 Comments

For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. E1: Wilful defaulter?
1. Vinod wisdom on wilful defaulters
2. E2: Coinage Act & right to issue Rs.1 note
3. E3: Gold account scheme
4. E4: MNREGA: Sweeping changes
1. Proposed: MNREGA only for backward districts?
2. Proposed: Changing labor to material ratio
5. E5: MPLADS & toilet building

Global

6. E7: PDS Reforms: Lessons from Delhi

7. E8: Commerce Ministry on IPR and FDI
8. E9: Global competiveness index 2014
9. E10: MSME speech: fodder material
10. E11: BSNL, MTNL merger
11. E12: Indias Sovereign rating
E1: Wilful defaulter?
Who is wilful defaulter?
Person/company, who has taken loan from any scheduled commercial bank or financial
institution, and
1.
2.
3.
4.

Has capacity to repay the loan / installment but not repaying the loan.
Has diverted loan money for other purpose.
Has not utilized the loan money for the actual purpose (for which they had taken the loan)
Has sold off the mortgaged assets (in exchange of which, they had taken the loan.)

In simple terms: Has the moolah + but doesnt want to pay + used the money in desi liquor +
makes the collateral vanish = Wilful defaulter.
Why in news?

Mallya owes ~7,000 crores in loan repayment to total 17 banks.

September week1: United Bank of India became the first bank to Kingfisher Airlines and
its promoter Vijay Mallya as wilful defaulters.

Implication after Wilful defaulter branding?

1. Once a lender announces as person/company as wilful defaulter- their names are sent to
RBI and credit information companies such as CIBIL.
2. This way, all other banks and NBFCs are warned not to lend any more money to such
totally awesome person.
3. As per SEBI order: Willful defaulters cant raise money from capital market i.e. they
cannot issue fresh IPO or bonds.
4. In Sep-2014, Rajan issued new directive- from nowon, if person doesnt repay loan then
extract it from guarantors. And if those guarantors dont repay the loan then declare
them as wilful defaulters as well.
Vinod wisdom on wilful defaulters

Former Comptroller and Auditor General (CAG) Vinod Rai gave following commentary:
1. Public sector banks have large NPA because cronies have used political connections to
get loans- even for unviable business projects.
2. These cronies didnot have the financial knowledge or business acumen to deliver the
product / service.
3. Kingfisher loan default is just a small trickle- many others like him.
4. Solution: need to make bank board members appointment more transparent
E2: Coinage Act & right to issue Rs.1 note

Who prints what?

RBI
Union Government
issue bank notes from Rs. 2 till Rs. 10,000 sole right to mint coins of all denominations.
Hum notes mein jeethe hain
Hum chillar party hain
Then who prints notes less than Rs 2?

1940: Currency ordinance empowered Government to print one rupee note.

Later, ordinance was repealed. And in 2011: new Coinage act came.
Under this act, union Government can mint coins upto Rs.1000
And as per law ministrys interpretation one rupee is included in it.
Besides, as per RBI act 1934- RBI doesnt have the power to issue one rupee note.
Side note: they have stopped printing one rupee and two rupee notes. Only the existing
notes in circulation.

E3: Gold account scheme

Who? MMTC-PAMP- one of the gold refining companies in India.
What? Gold Metal account scheme. Yet to obtain all clearances though.
You can deposit gold jewelry, coin, biscuit etc. Company will melt and sell it. You get
Features
interest payment (in gold). Thus, on maturity, you get a heavier coin /biscuit.
Junta deposits gold- company utilizes it for productive purpose. Thus gold supply will
Benefit
increase. Lower gold imports. Lower current account deficit.
E4: MNREGA: Sweeping changes

Rural Development ministry has updated MNREGA guidelines.

To mitigate drought and water scarcity in rural India.

As per new guidelines:

50% of all MNREGA works should be for water conservation works like check dam
construction, de-silting of traditional water bodies, minor irrigation tanks and canals.
51% of the wagepayment must be made to unskilled laborers. Remaining upto 49%
may be done by Skilled laborers. (if skilled laborers are required for check dams, minor
irrigation tanks with machinery)
Fund transfer to states via E-payment platform
Fund transfer just in time basis so that laborers wage payment are not delayed beyond
one week in any case.

Proposed: MNREGA only for backward districts?

Rural development minister said that MNREGA should not be required in areas having
high growth rate, high percapita income.
MNREGA is required only in areas with large tribal or poor population.
In other words, Modi Government is planning to confine MNREGA only to backward
areas.
Although theyll need to amend the act for this, but theyve began ground exercise of
identifying the blocks using 2011 Census and planning commissions Backwardness
index.

Proposed: Changing labor to material ratio

Labour to material ratio
Components UPA Rural ministrys New proposal
Labor
60 51
Material
40 49
Total
100 100

Proposed changes
Favor

Against
Most states have not even used the
Will permit greater use of (permanent) material.
40% material quota Expenditure. So
Perhaps paving way for machinary and
increasing it to 49% wont benefit.
contractors- so that permanent durable assets can
Will decline poor peoples wage
be created.
share in the scheme.

E5: MPLADS & toilet building

Under the MPLADS, each MP can recommend works to the tune of Rs 5 crore annually
to the district collector in his or her constituency.
2nd Administrative reform commission: absolish MPLADS because it breaches the
separation of powers between executive and legislature. But SC ruled in 2010 it is not a
breach.

Topic in news because

Planning and statistics ministry urged all MPs to make toilet construction their top
priority this year.
PM has repeatedly emphasized the importance of separate toilet facility for girl child
education.
MPLADS funds could also be used to install bio-digesters (DRDO) for sarkaari schools.

NSS survey: Households

toilets
Hindu
Muslim
Christian and Sikhs

without
47%
31%
16%

Challenges ahead:
1. Since 86, weve provided money to build toilets in rural India.
2. But rural men consider its more healthier to go out. until that mentality is fixed, merely
throwing money wont help.
3. Same even in schools, if toilets are built but not cleaned properly, the children will still
go out.
E7: PDS Reforms: Lessons from Delhi
What

Delhi Government decided to allow

ration shop owners to sale non-PDS
items from their outlets
Mobile recharge coupens, DTH
cards, consumer durables, even ATM
and railway tickets.

Why
To solve shopkeepers problems:
Low profit margin on foodgrain and other
subsidized items.
o Shop Rent and labour cost too high in
Delhi.
o Hence they wanted to sell non-PDS items.
Now theyll keep the shop open throughout
o

business hours. Poors will benefit.

E8: Commerce Ministry on IPR and FDI

Regarding IPR

At present, India has a strong IPR framework, fully compliant with WTO norms.
But we dont have a separate IPR policy.
American pharma, solar companies, Special-301 reports keep rasiing the issue of
intellectual property rights (IPR)

Therefore, Commerce ministry decided two things

Separate IPR policy in next four months.

Setup a think tank to handle IPR matters more effectively.

Regarding Multibrand FDI

UPA Government permitted 51% FDI in multibrand retail, with certain caveat.
So far only one proposal cleared: Tesco(UK).
The new Commerce minister says we are against multibrand FDI. But no formal
notification yet given to scrap the FDI.
Her reason- there are no pending applications for FDI approval. (hence no need for
notification, because everyone knows we are against it so other MNCs wont waste time
in applying anyways.)

E9: Global competiveness index 2014

World Economic Forum (WEF) releases Global competitiveness index. (HQ: Geneva,
Switzerland).
(as expected), India lost 11 places than previous report. Current rank 71st.
Among BRICS nations: China>Russia>South Africa>Brazil>India
Top three: Switerland, Singapore, USA
It can be taken as a measure of knowing the sustainability of the growth.
When GCI 2013 was released, govt. was defensive against the rankings. It said, the
indicators keep changing and it targets mostly MSME sector. It is not right to single out a
single measure.
But now govt is taking steps to ease doing business- formed the Damodharan committee
to give recommendations to improve business climate in the country.

Some of the reasons, why we suck in this report?

1. Complex taxation structure.

2. Obtaining business permits and plant construction permits.
3. Multiple tax rates and complex paper work in various states. Procedure far burdernsome
than international standards.
4. Complicated procedures to get environment clearance and building permissions.
E10: MSME speech: fodder material
Some fodder points from Ministers speech
Why MSME important

Obstacles before MSME

Lack of skilled workforce.
MSME sector vital 90% of
Skilled youth moving towards service sector and
non-farm workforce
MNCs.
45% of manufacturing output
Unorganized nature and poor work conditions
and 40% of total exports of
Compared to Thailand, Brazil etc. we have very
country.
low number of new start up companies in MSME
PM I-day address stressed to
segment.
have
Make
in
India
Lack of collaboration between MSME vs training
environment.
institutions.

Reforms taken:

Skill India Mission

Make in India campaign.
31 Sector Skill Centres to set standards for job profiles.
Government began amendments in Apprenticeship Act and factories act.

E11: BSNL, MTNL merger

BSNL Serves All India except Delhi and Mumbai
MTNL Serves Delhi and Mumbai

Government wants to merge BSNL and MTNL into a national telecommunication

services company.
Deadline: 2015, June-July.

Challenges to this merger

1. MTNL has large debt. Government will have to give it soft loans to clear the debts first,
before merging with BSNL.
2. MTNL is a listed company. Its shares will have to be de-listed from the stock-exchange.
Need clearance under SEBI and Companies Act 2013.
3. MTNL employees get higher salary than BSNL.
4. Both MTNL and BSNL are overstaffed, if you compare their salary as % of company
5. revenue. (Compared to private telecom companies of similar revenue).
6. Therefore, Atleast 1 lakh BSNL employees and 20,000 MTNL employees need to be
given VRS- imagine the legal and trade union hurdles!
E12: Indias Sovereign rating
Agency Rating Meaning
Moodys BAA3 Stable outlook.
S&P
BBB- Lowest investment grade. Negative outlook.
Fitch
BBB- Stable outlook.
Why in news? Fitch representatives met with Finance ministry officials. Theyd inspect the
database and reforms and may upgrade the rating.
[Economy] BRICS Bank, IMF Governance Reforms
Diplomacy2 months Ago28 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. BRICS Bank vs IMF and World Bank
1. How much money does BRICS bank have?
2. BRICS Contingency reserve
3. Why BRICS Bank born?
4. BRICS Bank not a totally new concept!
2. IMF Quota & Governance: Need for reforms
BRICS Bank vs IMF and World Bank
Basics compared: IMF, World Bank, BRICS
Data
IMF
World Bank
By
which
Bretton Woods, USA
summit?

BRICS Bank
6th BRICS summit at
Fortaleza, Brazil

Year

1944

HQ
members

Washington
188

2014, July. Although ops

may by 2016.
Shanghai, China.
only five

188 (IBRD); 172 (IDA)

Differs
according
to
voting
Different voting powers
All five members have
shareholding and other
power
based on Quota system.
equal voting power.
criteria
IBRD, IDA, IFC and
components

MIGA
loans
for
Loans
to
solve
Poverty reduction to
infrastructure and
Balance of Payment
3% by 2030.
sustainable
(BoP) crisis.
Soft
loans
for
development
technical assistance
development
projects
Purpose
in policy making
projects.
helping country in
surveillance
over
Promoting foreign
balance
of
International
investment
and
payment
(BoP)
economy
international trade.
crisis

How much money does BRICS bank have?

Initial subscribed capital
50 billion (each member gave 10 billion)
Initial authorized capital
100 billion
Contingency reserve arrangement (CRA) 100 billion
BRICS Contingency reserve
It is meant to help member nations fight against Balance of Payment crisis (possible because of
Fed Tapering click me to know more.)
Who gave how much to contingency fund?
China
41 billion
Brazil, India, Russia 18 billion each of them
S.Africa
5 billion.
Why BRICS Bank born?

1. BRICS nations have become as big economic power- collectively 1/5th of World GDP
and 2/5th of world population. They want to solidify and demonstrate their strength with
help of this new development bank.
2. BRICS nations are disenchanted with Bretton-Woods institutions viz World bank, IMF,
GATT (which later became WTO).
3. Since their inception in 1944, the IMF and World Bank have not reformed their
governance structure, to give more voting and voice to emerging economies. Both
dominated by USA and developed countries. Both are out of sync with the new dynamics
of world economy.
4. Will help defending these five economies from volatility in dollar exchange rate.
5. Will help financing high tech projects, infrastructure and sustainable Development in
member nations.
6. Although IMF and World Bank provides loans but with various conditions imposed.
BRICS nations want loan but without having to follow such dictates from the developed
world.
7. In BRICS bank, the First chairman of the board of governors will be a Russian. First
President of the bank will be an Indian. This is difficult in World bank and IMF given
the lobbying and uneven voting power.
8. In the long run, itll make Chinese Yuan as an alternative to US Dollar- for global
financial system. Then USA / West imposed sanctions against any BRICS will become
less effective.
9. RBI Governor Rajan- we did not setup BRICS bank to challenge World bank and IMF.
This bank is setup only to provide patient money to BRICS nations, because World
Bank and IMF are taking too much time to reform themselves.
BRICS Bank not a totally new concept!
others have done it in the past
When Where
Why/Who?
Development Bank of Latin
60s
Andean Nations
America
10 ASEAN + China, S.Koera and Japan.
To setup currency swap pacts during Asian currency
2000s Chiang Mai initiative.
crisis.
2009 Bank of South

Latin American countries, due to dissatisfaction with US

dominated IMF & World Bank.

Mock Questions: BRICS Development Bank marks a fundamental change in global economic
and political power. Elaborate 200 words.

IMF Quota & Governance: Need for reforms

Old
topic
from
April
2014.
Shifting
it
here
for
better
revision.
Topic was in news because G-20 countries gave an ultimatum to USA to bring reforms in IMF.
Q. Examine the need for reforms in International Monetary Fund (IMF). What will India
gain
from
this?
(200
words)
IMF was born from Bretton Woods conference to stabilize currency exchange rates and help
members during Balance of Payment Crisis. But given its unequal voting power mechanism,
IMF doesnt always serve the interests of poor & developing countries, hence requires two set of
reforms:
#1: IMF reform in quota

IMF Executive board decides the Quota of each member based on various parameters
including GDP and tariff barriers.
Higher quota gives higher voting rights and borrowing permissions.
But formula is designed in such way US has ~18% quota, G7 collectively own >40%
while India and Russia have barely ~2.5% each.
BRICS, G20 and emerging market economies are against this scheme especially after
Subprime crisis and declined economic strength of USA & G7.
2010: Board increases quota of developing countries albeit mainly by decreasing the
quota of poor countries.
Obstacle: 70% votes required to implement this reform. Not 70 nations, but the nations
who collectively own 70% quota- USA, Germany, Japan et al. Hence quota reform is
pending.

#2: IMF reform in governance

Currently in Executive board, 5 out 24 directors are permanently decided by five largest
quota holders.
2010: new reforms proposed:
o Board composition will be reviewed every 8 years.
o All directors be elected, no permanent chairs.

Obstacle: Requires 85% votes in favour, hence governance reform is pending as well.

#3: Indias Gain

o

India wants IMF to raise the fund resources, give higher quota and powers to BRICS
nations.

If 2010s quota & governance reforms are implemented, Indias quota will rise from
2.445 to 2.75% i.e. 11th rank to 8th rank, thus giving more voting rights, borrowing
capacity and more say in the Decision Making.

~240

words.

.
Tags: IR-Bodies-Asia, shivaram
[Current] Environment & Agro SepW1: Green laws panel, Fast track initiatives, RAPS-5,
NEERA, Gold Ore Tailing
Current Affairs Weekly2 months Ago40 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. E1: Green Law panel
2. E2: Fast track initiatives: Environment ministry
1. CAMPA Order, 2014
2. Pollution control

3.
4.
5.
6.
7.
8.
9.

3. New Tiger Reserve

4. Border roads
5. Naxal areas
E3: Fast track environment = dangerous
E4: RAPS-5
E5: Mangroves variety change in Sundarbans
E6: Gold Ore Tailing
E7: Neera Sap
E8: Fast track initiatives: Agriculture ministry
E9: 19th Livestock census

E1: Green Law panel

Chairman: TSR Subramanian, (former Cabinet Secretary) + 3 members whose names and
designations are not important for exams.
To review 5 acts (chronology wise)
Act
Year
Wildlife (Protection) Act
1972
Water (Prevention and Control of Pollution) Act 1974
Forest ( Conservation) Act
1980
Air (Prevention and Control of Pollution) Act 1981

Environment (Protection) Act

1986

Will also suggest, how to amend existing laws to incorporate various court orders.
Review amendments to the Wildlife (Protection) Act, to ensure its compliance with
Convention on International Trade in Endangered Species of Wild Fauna and Flora (
CITES). The amendments are pending in Rajya Sabha
Deadline: 2 months. (setup in Aug2014)

E2: Fast track initiatives: Environment ministry

Summary of this PIB page: pib.nic.in/newsite/erelease.aspx?relid=109249
CAMPA Order, 2014

Will setup CAMPA bodies at union and state level.

State level bodies will use the CAMPA funds for compensatory afforestation, wildlife
protection, village rehabilitation, training-awareness etc.
National CAMPA body will keep 5% fund aside for monitering schemes etc.

Faster file clearance

Industries can submit applications online, for Environment and Forest
Clearances.
Webportal

Regional
bodies

EIA

Minimum human interface

Projects will be cleared in timebound and transparent manner.
MoEF has delegated powers to the Regional Empowered Committees
(REC).
Theyll clear all the environment clearance files for projects upto 40 ht.
As a result, 90% of the file clearance will be finished at regional level.

For Environment impact assessment, the State level bodies are given more
territorial jurisdiction.

Pollution control

Five States of the Ganga Basin e.g. Uttarakhand, Uttar Pradesh, Bihar, Jharkhand and
West Bengal.
In these five states, MoEF has ordered the highly polluting Industries to install system to
moniter emission and effluents online.

Overall, India has >3,000 highly polluting industries. Most of them dont have such
online system. MoEF has asked State Pollution Control Boards to implement this by
2015.
Cement: India is second largest producer of cement. MoEF has tightened the emission
norms for Particulate Matter, Sulphur Dioxide, Oxides of Nitrogen, Wastewater and
Storm water.

New Tiger Reserve

Government has notified Bor, Maharashtra- as the 47th tiger reserve of India.
River: Bor, districts: Nagpur and Wardha districts; Mountains: Satpura-Maikal
Bor sanctuary provides corridor between Tadoba-Andhari and Pench Tiger Reserves of
the State.

Border roads

Forest conservation act 1980.

Under this Act, MoEF has granted general approval for diverting forest land to widen
border roads- for areas within 100 kms of LAC.
Border road orgazniation will built all these roads.

Naxal areas
Under Forest conversation act 1980, MoEF passed following order:

General approval to all road projects- except those in protect forest areas.
Upto 5 hectares of forest land can be diverted for construction of schools, police station,
health centre, telephone lines, water supply etc. total 15 type of projects.
This will rapidly improve infrastructure and provide economic opportunities for local
public. Thus less new recruits for Maoists.

E3: Fast track environment = dangerous

As expected, when Environment ministry began fast track approach to Environment clearancetheHindu columnists didnt like it. NOT ONE BIT. Their arguments are:
1. Modi Government has reconstituted National Board for Wildlife (NBWL) without NGO
members- as required under Wildlife protection act.
2. Government has eased the environment clearance conditions on coal projects. although
this will increase coal production and electricity generation -but at expense of
environment.

3. Forest (Conservation Act), 1980 expressly prohibits conversion of forest land to nonforest use without the Centres nod. But MoEF has given general approval to all roadprojects in border and naxal areas.
4. National forest policy wants 33% forest cover, but presently we have ~21% of area under
forest. If MOEF continues with such blanket general approvals, then forest area will
decrease.
5. MoEFs Genetic Engineering Appraisal Committee (GEAC) has cleared field-trials for
certain GM-crops. But the minutes of the meeting not published.
6. Government reduced the public hearing requirements for Environment Impact
Assessment (EIA).
7. Government has setup green laws review panel under TSR Subramnian. Once they give
report, Government will further dilute the provisions of various environmental laws- in
guise of promoting Development and economy.
8. Government also promised to release a new policy to speed up eco-clearance. This too
will hurt the environment.
E4: RAPS-5
Q. Significance of RAPS-5 as a nuclear energy milestone in India. (100 words)
RAPS

Rawatbhatta Atomic Power Station

Continuous Operation for 765 days. Proves that India can generate nuke power
Record
in safe and reliable manner.
Technology
Pressurised Heavy Water Reactor ( Indigenous) by NAPCIL.
Fuel
Natural Uranium
Cooling
Heavy Water
Moderator
Heavy Water
Supplies Power Rajasthan, Uttar Pradesh, Delhi, Haryana, Punjab, Jammu & Kashmir,
to
Himachal Pradesh, Chandigarh and Uttrakhand.
6 constructed
Number
of
2 reactors under construction
reactors
Largest number of reactors in a single site.

E5: Mangroves variety change in Sundarbans

Two varities in Sundarbans
Avicennia variety
Ceriops decandra
Aka Kalo Baine
Garan
Has high tolerance to salt Isless salt tolerant

Declining

This species has increased in Sunderban

This hints, waters PH levels are changing and mangrove forest is adapting accordingly.
This may also change the biodiversity and gene-variation in Sundarban.

E6: Gold Ore Tailing

GOT, is the waste material after separating gold from the gangue of gold ore.
Why in news? Hutti Gold Mines Ltd. (HGML). Its a PSU under Karnataka state.
HGML is the only producer of primary gold in the country.
It sold tonnes of Gold Ore Tailing (GOT) to a private company, at throwaway price,
from Chitradurga district.
PSU gave Reasons for selling off the GOT at throwaway price
o GOT has high cyanide content, causes water pollution.
o We needed space to expand the existing mines.
o We had clearance from Indian bureau of mines (IBM)

Mock Question: Find correct statement(s) about Gold ore trailing.

A.
B.
C.
D.

GOT, is the waste material after separating gold from the gangue of gold ore.
GOT has high level of cyanide.
Both A and B
Neither A nor B

E7: Neera Sap

Neera / Kalprasa is the sweet sap tapped from the coconut spathe
Good for diaebetic patients, because coconut sugar has low glycemic index.
Usage: ready-to-serve drink. Or making sugar without lime.
Why in news? Because Coconut Development Board (CDB) of the Agriculture Ministry.
They want to promote Neera as a health drink.
At present, only Kerala is tapping the Neera sap.
But with Government support, this segment can create ~25 lakh new jobs and increase
farmers income by 10 times.

Potential market
Our competitors
US, Canada, Norway, S.Korea etc countries with of high Indonesia, Thailand, Srilanka,
income health conscious juntaa.
Philippines
E8: Fast track initiatives: Agriculture ministry

From this PIB report: pib.nic.in/release/release.asp?relid=109251

Overall, boring yearbook type details. Memorize as much as you can- for fodder here and there
in GS3.

Rastriya Krishi Vikas Yojana (RKVY) to promote use of organic farming, reduce
chemical fertilizer usages.
100 mobile soil testing laboratories
5 new customised fertilizers
Saffron Park at Pampore (J&K) for processing, packing, e-auction of saffron.
Chaman initiative: to map horticulture crops via remote sensing (Satellites).

National Agroforestry Policy 2014:

meet the demand of timber, food, fuel, fodder, fertilizer, fibre and other agroforestry
products;
o Conserve the natural resources and forest;
o Increase the forest/tree cover.
o

Areas with 50% rainfall deficit= Government will give them 50% subsidy in diesel and seeds.
Waived duty on import of soy-extract, oil cakes of groundnut, sunflower etc. Thus, farmers will
be able to give more nutrient feed to cattle.
Union has asked states to keep fruits and veggies outsider the purview of Mandi/APMC
regulation.
Animal husbandry
199 million Bovine population in India
14%
Of world bovine population in India
37
Well recognized indigenous breeds of cattle
13
Well recognized breeds of buffaloes
National Kamdhenu Breeding Centre is being set up to protect indigenous breeds.
AMUL and NDDB have placed order of 36 new rail-milk tankers. This will help in rapid and
safer movement of milk across India.
National Blue Revolution
o

Will fill up gaps in fish seed and feed

Will introduce new technology for aquaculture

o Will be implement via fisherman-farmer cooperative.
o

New Institutes for Agriculture:

Institutes of excellence on thepattern of Indian
Assam and Jharkhand
Agriculture Research Institute,Pusa.
An Agriculture University
Andhra Pradesh and Rajasthan
Horticulture university
Telangana and Haryana
Indian Institute of Biotechnology
Ranchi
to develop modern cultivation techniques
centres of excellences with Dutch help
for fruits and veggies.
E9: 19th Livestock census

Who? Dept of Animal husbandry, dairy and fisheries

Under Agro ministry
This census began in 1919, done every five years.
19th Census (2012) published in Sep2014.

Compared to 2007:

Highest increase in livestock (%wise): Gujarat > UP > Assam

Sheep, goat, donkey, camel, mithun and pig population declined
Female cow, female buffalo and Yak population increased.
Overall ~3.3% decline in Livestock population.

Anyways, this data is just like the National Health Profile Report. Overall, Hardly any direct
material / points for prelims or mains. But indirect questions may come- for example, examine
the reasons behind decline in population, Foot-n-Mouth disease, MERS virus, what remedies
should be taken etc.etc.
Tags: shivaram
[Social Reformers] Dr. B.R. Ambedkar, Ayyankali, Chinnaswami Bharathi
Uncategorized2 months Ago1 Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Dr. Bhimrao Ambedkar (1891-1956)

2. Ayyankali (1863-1941)
3. Chinnaswami Subramanya Bharathi
Dr. Bhimrao Ambedkar (1891-1956)
Summary of Pranabs memorial lecture

Born at Mahu, Madhya Pradesh

Higher education in Baroda, Columbia and London.
Dr. Ambedkar was a recipient of the Bharat Ratna, educationist, Constitutional expert,
legal luminary, social reformer and political leader.

Sector

Dr.Ambedkars work
PhD thesis The Evolution of Provincial Finance in British India
Federal distribution
(1923)
of Taxes
This paper gave academic basis for the Finance Commission of India

Banking

Labour welfare

Energy

Helped the Royal Commission on Indian Currency & Finance in

1925
Wrote a book The Problem of the Rupee- Its Problems and Its
Solution
Those ideas were incorporated in RBI act, 1934
Labor minister in Viceroys council
Reduced factory working hours from 12 to 8 (1942)
Gave the idea setting up of employment Exchange
Helped setting up Central Technical Power Board
Later evolved into National Power Grid System

Pivotal role in setting up

Irrigation

legal

Central Water Irrigation and Navigation Commission.

Damodar Valley project, Hirakud project and Sone river project.
Chairman of Constitution Drafting Committee
Saw Indian Constitution as a powerful instrument of socio-economic
transformation.
Hence added the provisions for full accountability of the
Government, checks and balances, protection of fundamental rights,
independent institutions.

Journals

1. Mook Nayak (Marathi)

2. Bahishkrit Bharat
3. Prabhuddha Bharat
1. Annihilation of Caste (1936)
2. Thoughts on Pakistan
3. Mr. Gandhi and emancipation of untouchables

Books

Organizations

1. Bahishkrit Hitkarni sabha (1924)

2. Siddhartha college in Mumbai
3. Peoples Education Society (1945)

Politics

As Law minister in free India, he Introduced Hindu Code bill to

apply Hindu laws uniformly throughout India.

Independent labour party (1936)

Republican Party (1956)

Ayyankali (1863-1941)
Topic in news because 152nd Birth Anniversary and Modi gave speech.

Ayyankali belonged to Pulaya agricultural labor community of Kerala

Was a labour leader and social reformer.
Fought for dalit rights in Tranvacore kingdom.
But never allowed bitterness to creep into the social fabric.
Ayyankali formed Sadhu Jana Paripalana Sangham and Kayal Sammelan.
Gandhi was impressed with his work, and came to meet him.

Modi

Local leaders:
Ayyankali also formed Kayal Sammelan- to hold
meetings in boats (1913)
Because the Travancore King did not allow
No, Ayaankali did not form that
Dalits to organize meetings on land.
organization. It was KP Kurrupan.
This was turning point in Dalit movement,
similar to Gandhis Dandi march.

Chinnaswami Subramanya Bharathi

Q.write a 100 words note on the contribution of Chinnaswami Bharathi,in india's struggle
for independence.

Freedom fighter, Poet, social reformer from Tamilnadu.

1907: During "Surat split" he joined the extremist wing led by Tilak and Aurobindo. (in
other words, did not like the moderates' ideas of prayer and petition)
Through his poem, he advocated women empowerment, caste reforms, social equity and
equality.
1908: French gave him political asylum in Puducherry (1908-1918). Composed patriotic
songs and revolutionary poems for Aurobindo's journals.
Also called "Mahakavi Bharathiyar"
Person in news because BJP wants his Varanasi house to be converted into a national
monument.

Religion] Shuddhi Sabha, Tanzim Bodies, Tablighi Jamat, Deobandh, Love Jihad
History2 months Ago1 Comment
For Indian History, I recommend
Spectrum- Rajiv Ahir

1. Shuddhi sabhas and tanzim bodies

2. Tablighi Jamat and Deobandh
3. Love Jihad
Shuddhi sabhas and tanzim bodies

Earlier, if a Hindu converted to another religion, he was not allowed to return back.
Swami Shradhananda and Swami Dayananda Saraswati propagated suddhi movement- to
accept people back to Hindiusm, who had earlier changed religion under pressure or
coercion.
1921: Moplah reballion in Malabar. Hindu-Muslim harmony was lost, leading to chain
reactions in India.
1920s: Arya Samaj began Shuddhi campaign. Particularly for converting Malkhana
Rajputs back into Kshtriyas.
As a counter responce- Muslim leaders begin Tanzim (organization) and Tablighi
(propoganda / religious proselytisation) movement in N.India.
Tanzim-Tabligh were mean to promote muslim prayers, orgnization and culture.
Dr.Saifudin Kitchlew important leader.

Gandhi on religious conversions

B.R. Ambedkar and Pandita Ramabai Saraswati in Maharashtra had resorted to

conversion as a form of protest against the iniquities of the Hindu caste society
Gandh said real conversion proceeded from the heart and a heart conversion was
impossible without an intelligent grasp of ones faith
Gandhi did not reject conversion, but disapproved religion-conversion done via force or
inducements.

Tablighi Jamat and Deobandh

why in news? Its leader Maulana Zubair Hasan died recently.

Tablighi Jamat movement started as off-shoot of Deoband movement in North India

to reform Islamic traditions during British era.
By Mohmmad Kandhlawi in 1926,and then transformed into a missionary organisation.
The movement followed fundamentals of sunni Islam.
It has been a pacifist organisation,
stays away from political issues
spread across many countries including UK, France, Canada and Central Asian countries.

by the way, what is Deoband movement?

The name Doband is came from a town in UP- Deoband

Pan-Islamic movement, led by Nationalist Muslims like Sibli Nomani, Nantovi and
Gangoi.
Were against the partition of Pakistan along religious lines.
Democratic, anti-imperialist, progressive interpretation of Islamic tradition, political
freedom and equality.

Love Jihad
ofcourse this is not part of mains syllabus. But, some eccentric UPSC interview panel-members
asking such things.

Love Jihad

Hitler
Deoband

is an alleged conspiracy by Muslim men to entice, marry and convert

Hindu women to Islam.
BJP, RSS, ABVP, BJP yuva morcha et al, have joined hands to fight love
jihad in Western Uttar Pradesh.

Made similar allegations in his book Mein Kampf. That Jew men were trapping
German Christian women, thus polluting their racial purity.
If a boy/girl converts religion just for the sake of marriage, it is illegal. If

Sunni clerics

Hindu girls are forced into Islam, that is also illegal.

urged Muslim youths to avoid such a (marriage) situation that gave the
BJP an opportunity to target the entire community.
A few isolated cases of inter-religion marriage.
But Media and political parties are sensationalizing it.
There is no such systematic campaign by Muslims to convert Hindu
women.

UP
said in Highcourt, there is no Love-jihad in UP. (only Goonda-raj and NakalGovernment maafia)
Maneka
Have not received any such complaint so far, in ministry of women and child.
Gandhi
Rajnath Singh Home minister is yet to study this term.
Mrunal
We need following reform:
Few yearsback, Madhya Pradesh CM Shivraj Singh gave a suggestion -all the state assembly
elections and parliament elections should be done simultaneously. Right now, there is some
election or byelection here and there every few months, and as a result
1. Parties 24/7 involved in appeasement, sensationlization, communalism, pseudosecularism, casteism, regionalism. But, none of them remembers Godhara, Love Jihad or
Muzaffarnagar etc. once the election is over.
2. even if party wants to reform (say leaving all communal-secular-caste thing and focus on
rebuilding party with development agenda), yet there is not enough timegap- because
there is some stupid election around the corner. so they have to fall back yet again to
same communal-secular-caste thing as to stay in the debate.
3. Lot of black money spent, to win such elections.
4. Both Union and state governments announce lot of election-freebies, waste public money
in newspaper ads to showcase their achievements- just before the model code of conduct
begins.
5. and When it comes to taking bold steps like petrol price hike, railway fare hike or
removing LPG subsidies- they use the same model code of conduct as an excuse for
not doing so.
Follow up to that1. One person should be allowed to contest from one place only (so there is no vacant post
and bypolls when they resign from one seat).
2. there should be no by-polls anywhere. If someone is dead, arrested or resigns from the
seat, consider it empty till the five year cycle ends. Because absence or presence of one

MP/MLA doesnt really affect ground development. Government can handover the
MPLADS funds district administration directly- after all theyre the ones responsible to
implementation.
Tags: Rajtanil

[Judiciary] Ex-CJI to Governor, Doctrine of Postponement, Lawyer database, Urdu 2nd

Official
polity2 months Ago99 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1. EX-Cji as Kerala governor
1. Anti-arguments
2. Pro-arguments
3. Justice Sathasivam notable judgments
2. Doctrine of Postponement
3. Lawyer databank to select judges
4. SC 2013 rules on Death convicts
5. Urdu as 2nd official language
EX-Cji as kerala governor
Why controversy? Ex-CJI Sathasivam was made Governor of Kerala, after Sheilas resignation.
Criticism
Sathasivam defends
Fali Nariman:This is most improper and Other CJIs do arbitration or consultation work for
unfortunate. I do not appreciate or approve of corporates after retirement. (and mint crores of
the idea of a former SC judge accepting a rupees.) However, I was planning to do farming at
sinecure appointment, like that of a village. But since President has offered this
Governor. [Sinecure= An office that involves position, Ive accepted. I never lobbied to get this
minimal duties].
job.
When I did that case, noone knew Amit
Sathasivam had given relief to Amit Shah in
Shah would become a BJP President. So
fake encounter case, so Modi offered him gift
there is no quid-pro-quo.
of Governoship.
I never gave clean chit to Shah. I had

shifted sorabuddin case to Maharashtra.

Anti-arguments
Ex-CJI should not be made Governor because:
1. Independent judiciary is the basic feature of Constitution. But when Judges seek jobs or a
seat in Parliament from the Executive, this basic feature is not fullfilled.
2. Promise of such post-retirement job can jeopardise the autonomy and accountability of
the judiciary.
3. This can create breach in balance of separation of powers.
4. After retirement judges get appointed to Lokpal, NHRC etc. but those positions are
eligibility requirements and autonomy in functioning.
5. Governors post is seen as an executive patronage- typical reserved for retiring
politicians.
6. Earlier retired judges of HC became governors. But this is the first time a retired CJI, got
this job!
7. Sathasivam was also a candidate for Lokpal job. So by giving him Governorship, Modi
took him out of the race.
8. Breach of protocol: In the order of precedence, 1st Prez, 2nd VP, 6th CJI, 8th: Governor
outside their state. So, CJI should not accept such lower job. It is beneath his dignity.
Note: as per India Yearbook Ch.32: order of precedence is following:
1.
2.
3.
4.
5.

President
VP
PM
Governor in their respective states
Former presidents

5A.Dy.PM
6.
CJI
and
Speaker
of
Loksabha
7. Leader of Opposition in LS and RS, and ~half dozen others (list not important for the present
topic)
7A:
Holder
of
Bharat
Ratna
8: Governors outside their state.
Pro-arguments
There is nothing wrong in CJI becoming governor because:

1. Post of governor is a constitutional post. SC is a constitional body.

2. Punchhi commission: Governorship should not be given to person active in politics.
3. A Former CJI will be an expert in constitutional matters- provides him to utilise his
expertise in public service. This can be a healthy trend.
4. There is no breach of protocol if retired CJI accept a lesser post, because he has retired.
5. President chose to accept the Modis proposal as there is no constitutional bar in such
appointment.
Suggested reforms
1. Tribunals and commissions should be manned by a separate cadre of judges. (Instead of
dolling out these jobs to retired judges- and opening floodgates for such criticism.) Govt
should amend constitution for this.
2. There should be cooling-off period of atleast two years before retired judges takeup any
sarkaari position.
3. Union government should stop treating Governor job as a sinecure for party members,
sympathisers and loyalists.
Justice Sathasivam notable judgments:
1. Use of natural resources through Public Sector Undertakings.
2. Commuted the death sentence of Sikh terrorist Bhullar- on the ground that there was
inordinate delay in disposal of their mercy petitions by the President.
3. Upheld Bollywood actor Sanjay Dutts conviction in 93 Mumbai blasts.
4. Included NOTA in EVM
5. Made it mandatory for candidates to fill ALL columns in nomination papers. (=> Modi
had to admit he is married.)
Doctrine of Postponement

2010: Home ministry made advisory on media reporting by police. But still no proper
regulation.
2012: SC said, Judiciary can impose a temporary freeze on media report- of a particular
case. IF such media-reporting is hurting the rights of the accused. This is called
Doctrine of Postponement
(at that time, it was silent on victim)
But, Excessive media coverage of crime and court proceeding =Victims rights are
jeopardized.
2014: some NGO files PIL.
SC says- Yes, Media has right to freedom of speech (#19) but Victim also has right to
live with dignity.(#21)

Therefore, SC appointed Gopal Sankarnarayan as amicus curiae, and has sought

responses from the Union, states and UTs about this issue.

Lawyer databank to select judges

Union law minister listed following judicial reforms during some ceremony:
1. Case pendency increased due to lack of manpower and infrastructure. ~4400 posts lying
vacant.
2. Weve increased no. of high court judges by 25%
3. We should maintain a databank on the performance of young lawyers. So later we can
select the best among them- for judges post.
4. We need to promote alternative dispute resolution mechanism-so cases can be settled
outside courts.
5. Digitisation- computerization of courts.
SC 2013 rules on Death convicts

2013 SC rule, for hearing death convicts petition- Three judges bench will decide. But
such petitions are heard secretly in judges chamber.
2014: the Bombay blast mastermind Yakub Memon doesnt like this. NOT ONE BIT. So,
he files writ petition in SC, demanded a death convict should be given every chance to be
heard in an open court, instead of deciding secretly in judges chamber.
SC verdict: we will hear all the cases of review petition of death convicts in an open court
with a bench of 3 judges.
If prior petitions were heard by less than 3 judges bench, such death convicts can request
CJI to setup new 3 judges bench.

Urdu as 2nd official language

Hindi is the official state language of Uttar Pradesh (1951s act).

1989: UP legislature amended that act to make Urdu, the second official language of the
State.
this time, UP Hindi Sahitya Sammelan did not like it. Not one bit. So they went to SC.
Their argument- once a state adopts Hindi as official language, it cannot adopt any other
language.
2014, SC ruled following:
As per Article 345, state legislature may adopt
o one or more languages
o OR Hindi
o As official language of the state.

Constitution makers mentioned Hindi separately, only to promote its use.

Otherwise, article 345 doesnt impose any restriction on the states to use Hindi only.
Article 347 prescribes that a language can be made official upon the satisfaction of the
President. But that is an independent process.
Delhis official language is Hindi, yet, even they adopted Punjabi and Urdu as officially
recognized languages. Similar scenario in Bihar, Haryana, Jharkhand, Madhya Pradesh
and Uttarakhand.
In short, there was no constitutional bar against a state government. If they already have
Hindi as official language, Constitution doesnt stop them from declaring other language
as second official language.
Therefore, please stop wasting courts time and UPSC aspirants time with all such
petitions.

Tags: Judgement, Rajtanil

[Laws] DESI liquor special edition Kerala, Mizoram & IPS Training, Tribal insurgency
polity2 months Ago23 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1.
2.
3.
4.

Mizoram permits DESI liquor

Kerala wants to ban DESI Liquor
IPS training academy bans DESI liquor
Tribal insurgency in pre and post-independent India

Mizoram permits DESI liquor

1995: Mizoram passed law to completely ban liquor.

But later Government feels that total prohibition has harmed the state- because juntaa
still drinking Deshi and dying because of hooch. (Zahrili-sharaab).
2014: new act, lifts total prohibition from the state.
Now anyone above 21 years can drink- both deshi as well as videshi liquor. But hell
need permit.
New act raised fines and jail-terms for all type of drinking related offences.
Any citizen can arrest drunkards but they have to hand them over to police or Excise and
Narcotics officials.

Kerala wants to ban DESI Liquor

New liquor policy to apply total prohibition within 10 years in phased manner
Anti-Government argument

Pro arguments
Kerala has highest per capita consumption of
liquor- families are broken, household
savings are eroded.
Constitution doesnt provide Fundamental
individual discipline and not State
Right to sell liquor to those bar owners. They
discipline is what is required.
were given licenses and the State has right to
The policy will also affect state
cancel licenses.
income and tourism industry- lakhs
Liquor is outside the purview of commerce
of people employed directly and
in art19.
indirectly.
State has power to impose restriction on
liquor trade, or create its own agency to sell
liquor. This doesnt violate art14 (equality
before law).

Anyways, Under this policy, State Government planned to cancel bar licences of all
hotels below the category of five-star (from 12-September onwards).
Obviously, those bar owners did not like it, NOT ONE BIT. so they went to HC and then
to SC.

SC stayed the govt. order because of following reasons:

flaw in the policy- drunkards can still goto five star hotels or the zero star Toddy shops!
Policy is discriminatory and against constitutional right of equality if state wants to
impose prohibition then ban should be equally imposed on all the liquor selling shopsirrespective of stars.
Only 10% of the govt. outlet will be closed every year.
Govt. should educate the mass against harmful effects of liquor before the sudden and
outright ban on the small liquor shop.

IPS training academy bans DESI liquor

Aruna Bahuguna: first lady director of Sardar Vallabhbhai Patel National Police
Academy (SVPNPA), Hyderabad.
SVPNPA = place where IPS probationers are trained.
But recently a trainee IPS died after drowning in the swimming pool, under the influence
of liquor.
Therefore, Director has banned all types of liquor in the academy.

Tribal insurgency in pre and post-independent India

just some fodder points based on a book review in thehindu
Under British rule:

The British passed Forest Acts (1878, 1927) banned -shifting cultivation, foraging,
grazing and hunting in Indian jungles.
British kept the tribal areas under their direct administration through Governors and kept
their forest almost intact until they left India.
This negatively affected the livelihoods of tribes- leading to rebellions.
The British branded their protests as savage attacks, and used extreme violence to
impose Colonial-civilisation on these savages.
Konds of Odisha- they spill blood to worship their deity under Meriah rite. But British
branded it as human sacrifice.

Under Free India:

Since 1980s, Central and Eastern India became the perfect guerrilla terrain for the
Naxalites.
This region is home to a large tribal population. The Maoist movement spread in these
tribal belts because they Promised to end their historical marginalisation; and managed to
build intimacy with local people, overriding differences of caste or tribe.
UPA Government took away nearly 1.2 lakh ht. of forest land and gave it to MNCs for
mining and power projects.
Tribal made to work in the most dangerous parts of mines and steel plants, for petty
wages. Thus, even the new civilised Indian are keeping them as primitive as possible.

Tags: Laws, Rajtanil

[Current] Education SepW1: UGC vs. IIT controversy, Sarvapallis contribution, Teachers
day speech summaries
Current Affairs Weekly2 months Ago31 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.

UGC vs IIT controversy

Dr. Sarvepalli Radhakrishnan
President speech on teachers day
PM Modis speech on teachers day

5. HRD ministers speech

UGC vs IIT controversy
Why controversy

2014, August: The UGC has directed all academic institutions to follow the 10+2+3
model, under the National Education Policy.
UGC sent this direction to IITs as well.
But IIT directors did not like it. NOT ONE BIT.

IIT-Arguments: UGC mustnot interfere because:

We are governed by the IIT Act, 1961.

The apex body for all IITs is the IIT Council.
The UGC and AICTE chairmen are members of the IIT Council. So at max, UGC
chairman should only raise matter to IIT Council, rather than writing to all IITs.
The UGCs Education Policy is based on old commissions like, Radhakrishanan
commission and Kothari commission on higher education.
Their Baba-adam time ideas are not suited for dynamic institutions like IITs.
IITs have evolved a unique model for higher education in science stream- Even many
international institutions envy it.
In this model, All students engineering and science are admitted through the same
entrance process.
Then a set of 10 courses in natural sciences, engineering sciences, technical arts, social
sciences and humanities is taken by all students.
IIT awards degree based on credit system and not based on the number of years
completed.
An intelligent student can register for more credits and graduate earlier than usual.
This is not possible in a rigid 10+2+3 program of U.G.C.
So, instead of asking us to follow their model, they should follow our model, to
encourage a vibrant academic environment and help desi-universities compete at the
international level.

Dr. Sarvapalli Radhakrishnan

What was his contribution to British and post-independent India? 100 words

Taught philosophy in Madras Presidency college. Later served as VC of BHU and DU.
Had met Gandhi and Tagore, wrote many articles to propagate their ideas.

Was a member of Indian education service (IES)- he toured in India and Britain, met with
college students and spread ideas of nationalism, even at risk of losing his sarkaari job.
Chief of UNESCOs University Education Commission
Indians ambassador to Moscow.
Served as VP twice in the 50s. Asked Eisenhower to jointly work for peace with India.
Served as President from 1962 to 1967
During Chinese invasion, even suggested Nehru to replace Krishna menon- because
Menon did not enjoy confidence of the three service chiefs. (Later, Menon was made to
resign- but we had already lost the war).
5th Sep: his birthday celebrated as teachers day

President on teachers day

5
Indias teachers day
sep
8
International literacy
sep Development.

day,

UNSECO.

Theme 2014:

Literacy

and sustainable

What did President say?

World Problems

How teacher can help?

Teach values of ruth, tolerance, integrity,
secularism and inclusiveness to the kids.
violence, terrorism, intolerance and
Make them knowledgeable and worthy global
environmental degradation
citizens.

Teachers influence the life of students by being their role models.

Teachers are the beacons of light who guide and motivate students throughout their
academic life and even beyond.
Teacher impart not only knowledge and learning but also our traditional values.
Gandhi, believed that student interest in learning is sustained not only by the subject but
also by the teachers quality.
Hence we need to improve teaching quality and learning outcomes in our schools.
Challenge: salary, working conditions.
Government initiatives for 2014:
o Sarva Shikha abhiyan ~29k crores.
o Rashtriya Madhyamik Shiksha Abhiyan ~5k crore.
o New School Assessment Programme
o Pandit Madan Mohan Malviya New Teachers Training Programme

setting up virtual classrooms as Communication Linked Interface for Cultivating

Knowledge (CLICK)
o Toilet, drinking water facilities in schools.
o

PM Modi on teachers day

Importance to girls education. An educated girl, educates two more families.

Concern over higher drop-out ratio among girls in rural, due to unavailability of separate
toilet facilities in schools
A teacher can play important role through a persons life. Teacher-student relationship
must be nurtured.
Education should become a force for the nations character building.
Children can contribute to nation-building through cleanliness, saving electricity and
water.
in Japan, the teachers and students together keep the school clean this is part of their
character building. Can we not make it a part of our national character building?
Will launch a programme on the lines of Vaanche Gujarat (Read Gujarat).Digital India
mission to reduce digital divide.
Nation building should be a national movement and every citizen should be associated
with it.
eminent citizens- doctors, lawyers, Cas, should try to teach at least one period a week in a
nearby school.
why many bright students do not want to become teachers. good teachers are in short
supply. India is a young nation. Cant India dream of exporting teachers of high calibre?
Ask any great person in the world about the success in the life he or she will definitely
tell two things. First this is my mothers contribution and second, my teachers
contribution.
Today, everything is done by Google Guru and you have the habit to go to Google if you
have a question- Although one gets the information but not the knowledge. (therefore,
google cannot replace a teacher).
Sports and outdoor activities are important.
Inspirational lives of great personalities can shape our character. He advised students to
read biographies of great people.

HRD Minister on Teachers day

Devotion to a teacher is devotion to God. (Shwetashwatar Upanishad)

Guruwe Kalyan Mitra Mahayan Buddhism (Teacher is a friend who strives to bring
about our well-albeing)
Teachers purpose is not to create students in her own image, but to develop students who
can create their own image.

Teacher doesnot simply graduate students, he graduate lives, and builds the character of a
whole civilization.
The most accomplished scholars should teach the youngest students
School is the first formal socializing experience of the child.
Schools reflect deeply embedded cultural beliefs.
If our teacher is not a few steps ahead of time, the society will not be ahead.
Asking questions is more important than finding answers.
Solutions must be developed locally, not by arm-chair specialists but by teachers and
practitioners. Often the next big achievement comes out of such creative disequilibrium!
Focus on new teaching methods-Interactive pedagogies, projects with communities,
context based learning transcending the text, peer learning.

Tags: Rajtanil
[Current] SepW1: Public Health- Ebola, Cavilon, Kala-Azar Revised strategy, Free
Rotavirus vaccine, XDR-TB, BRCA genes, NOTTO
Public Health2 months Ago92 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Mains Questions
2. GS4: Ethics Case study on Ebola
1. H1: Ebola virus outbreak
2. H2: Kala Azar-revised strategy
3. H3: Cavilon for Boxers
4. H4: Free Rotavirus vaccine
5. H5: Sickle Cell Anemia
6. H6: XDR-TB
7. H7: TB: Email + Survey
8. H8: BRCA genes Patented in Australia
9. H9: Eye donation
10. H10: NOTTO
11. H11: Misc. Developments
3. Mock MCQs
4. Correct Answers for the MCQs
Mains Questions
100 words each

1.
2.
3.
4.
5.

What do you understand by Cavilon application in Boxing?

Discuss in brief, the salient features of revised strategy against Kala Azar.
Write a shortnote on Ebola outbreak.
What is Sickle Cell Anemia? How can stem cell research help in combating it?
NOTTO: structure and functions.

GS4: Ethics Case study on Ebola

You are Head of Centre for Disease Control. After the PATH clinical trials that misused norms
to test drugs on innocent children, there has been new regulations that prevent use of unknown
drugs on people. Now, there is a severe outbreak of Ebola-disease. No vaccine known. Only
experimental drug in the market. It has shown some severe side effects. Patients hanging within
the limits of death and life, can even die just because a wrong drug was given to them. A false
symptom due to some other disease can lead to complications with the administering of this new
experimental drug. There is no time for a systematic clinical trial and introduction of the AntiEbola drug.
What will you do, justify with reasons?
1. There is a difference between giving experimental drugs and illegal trials of drugs. Lives
can be saved, therefore experimental drug should be permitted in this case.
2. There are lot of risks. People can lose lives. This is just like the PATHclinical trials.
There is a process for everything.
3. Something else.
H1: Ebola virus outbreak

Its called Ebola because first cases reported near Ebola River in Congo back in mid
70s.
Ebola virus, causes hemorrhagic fever. Death rate upto 90%

Symptoms: fever, gum-bleeding,nose-bleeding, red spots on body, blood in stool and

vomit.
Similar symptoms seen in malaria, cholera, typhoid etc. Hence need to perform ELISA
test or other Antigen detection tests to confirm Ebola.
Affects: humans, monkeys, gorillas and chimpanzees.

Ebola: Myths and truths

spreads via
doesnt spread via
1. Fruit bats considered to be natural hosts of
this virus.
2. Virus spread from wild animals like
primates, bats, antelopes and porcupines to
1. Doesnt spread by Air-unlike flu
people.
(Stanford univ)
3. Then from people to people via blood and
2. Mosquito bite
secretions.
3. money, swimming pool, groceries
4. Even by physical contact with dead body!
4. Ebola easily killed by soap, bleach,
5. Even via semen / sexual intercourse- 7
sunlight or drying. (says PIB)
weeks after recovery.
6. Nations affected Liberia, Sierra Leone,
Guinea, Nigeria.

Ebola Treatment?

Several vaccines are being tested, but none are available for clinical use.
WHO had allowed use of experimental drugs to save lives but it is not successful yet.
World and UNICEF donated supplies worth million$.
In India, the Tourist returning from the affected countries are being observed for
symptoms and their blood is being tested. So far everyone is healthy.

H2: Kala Azar-revised strategy

Also known visceral leishmaniasis. caused by Parasite: Leishmania

Spread by female sand-fly (it bites for blood meal)
Affects spleen, liver and bone marrow. (Parasite cannot synthesize iron containing haem
molecule on its own. So, it attacks those organs in search of hemoglobin.)
In terms of death record by parasitic diseases: #1 Malaria and #2 is Kala Azar.

Revised strategy by Health ministry

Treatment

Pyrethroid

Notifiable
disease

Focus

Social
support

Kala Azar drugs are expensive (and toxic). But WHO will give free supply
of Liposomal Amphoterecin B. This is an intravenous drug, helps reducing
human reservoir of infection.
Indian Council of Medical Research (ICMR) has developed Rapid
Diagnosis kits for Kala Azar.
Commercial vaccines still under trial.
Sand fly is the vector of Kala Azar.
Government will supply this Pyrethoid insecticide to spray on walls, to kill
sand flies.
Government has declared Kala Azar a notifiable disease
Meaning, all sarkaari & private doctrs have to alert the state health
authorities whenever they encounter a Kala-Azar patient.
four states Bihar, Jharkhand, West Bengal and Eastern UP.
Bihar alone counts for 80% cases
Government will focus in these regions.
To recover, youve to finish 28 days drug course.
This requires social support- similar to TB-DOTS workers.

H3: Cavilon for Boxers

Important because remember that stupid cricket related Q in mains-2013. (+ the fact that Mary
Kom in news due to bollywood movie.)

Back in mid-80s, commonwealth games introduced protective headgears in boxing

matches.
2013: AIBA decided to do away with headguards for elite men category.
Logic? without headgear there will be lesser concussions as lesser force is needed to
knockout. Headgears are still allowed for women, as they cannot hit with so much force
like men.
Nonetheless, some boxes and coaches worried abt injury.
Thats why AIBA made Cavilon compulsory.
Cavilon is brand name of a cut-prevention cream / spray.
Boxers have to apply minimum 3 layers of this cream on entire face.
This cream helps in preventing cuts, provides moisture and increases medical tapes
adherence.
Can last upto 72 hours, contains no petroloeum jelly.

H4: Free Rotavirus vaccine

What is Rotavirus?

Grows in the intestinal cells, Causes diarrhea.

Called rotavirus because under microscope, it looks like a tiny wheel with spokes.

Why nuisance?

Kills 52 infants per 1000 livebirths per year

Causes diarrhea that indirectly kills atleast 1 lakh each year.
Vaccine too expensive, aam-juntaa cant afford it.

Whats the Solution to Rotavirus problem?

Government decided to add Rotavirus vaccine in the Universal Immunization Programme

(UIP) from 2015 onwards.
Rota-vaccine will be given as an additional dose along with the DPT (diphtheria,
pertussis, tetanus)s first, second and third doses.

H5: Sickle Cell Anemia

Sickle Cell Anemia is a hereditary disease and stays for whole lifetime.
Prevalent among Indian tribals.
Normal Red blood corpuscles(RBCs) have disk/donut shape.
But in this diseases, body produces sickle shaped Red Blood Cells (RBCs).
These RBCs have abnormal life cycle, oxygen carrying capacity etc.
During his Japan visit, Modi met Shinya Yamanaka asked him to work on Sickle Cell
Anemia.
Shinya Yamanaka has won Nobel Prize for Medicine (2012), for his research in stemcells. More details in this old article click me.

But How can stem cell therapy help?

Sickle cell can be used by bone-marrow transplant.

New bone marrow will begin synthesizing health (donut) shaped RBC.
But this transplant is very costly and riskly.
Yamanakas Noble winning research had created iPS cell- these cells behave like stem
cells.
We can program iPS cells to create a mass of bone marrow.
Then, Transplant it into patient and his sickle cell anemia will be cured.

H6: XDR-TB
Normal
TB

MDR-TB

XDR-TB

Caused by TB bacteria.
Can be treated with first generation drugs.
Multi-drug resistant TB. It develops when first line drugs are not taken
properly.
MDR-TB has to be treated with second line drugs, Patient takes longer time
to recover.
Develops when second-line drugs are misused. (e.g. patient not finishing
entire course, or doctor giving inappropriate amount of drug)

H7: TB: Email + Survey

TB email

Health ministry wants to create an Email repository between doctors and government.
Help TB patients if doctors know of the latest treatment and protocols.
Help to devise new strategies to combat MDR TB
Research data transmission between ICMR, Doctors and international bodies.

TB survey

first TB survey conducted in India in 1914-16

In entire world ~4 lakh TB patients are multi-drug resistant (MDR-TB).
25% of them in India alone.
Now, an even bigger Extensively drug-resistant TB (XDR-TB) has emerged.
Health ministry will launch a new survey, with help of with WHO and USAID
This survey will have ever sample size (5000+ patients) all over India.
The patients to be surveyed are both first time and retreatment cases.
Their resistance levels against 13 anti-TB drugs would be observed.

H8: BRCA genes Patented in Australia

BRCA1 and BRCA2 human genes used for diagnosing breast and ovarian cancers.
(BRCA= BReast CAncer).
If a woman has mutation (fault) in BRCA 1 or 2= higher risk of breast/ovarian cancer.
Mid 90s: Myriad Genetics ltd. Got its patent, and established monopoly for selling BRCA
gene testing. Each test costs >3000$.

Through this test, Hollywood Actress Angelina Jolie found she had BRCA1 gene=>
underwent mastectomy surgery to remove her Brests.
2013: US Supreme court nullified this patent saying that isolating a DNA from human
body doesnt count as innovation therefore, doesnt deserve patent rights.
Now Myriad Genetics applied for same patent in Australia and Australian court has
awarded the patent.

H9: Eye donation

Why problem?
4.5 crore blind. WHO says by 2020, this number will double because of higher population
World
and life expectancy.
India 1.2 crore blind. (largest population in world)

Cornea donation can help them BUT

Every year # of corneas
what we need 1 lakh
What we get 17,000 only. And out them, hardly 50% used.
What are the Solutions to Eye donation shortage?

National Organ and Tissue Transplant Organization (NOTTO) setup under DG health
services under Helath ministry.
Soon, NOTTO will launch a dedicated webportal to provide transparent interface
between donors and recipients of all organs including cornea.
Health ministry also asked HRD ministry to include organ-donation topic in school text
books
National Eye Donation Fortnight: Its an annual event organised by the National
Programme for Control of Blindness, during August-September.

What do you know about Eye donation?

Takes hardly 10-15 minutes

Doctor can visit home and remove it. No need to bring dead body to the eye bank or
hospital.
Leaves no scar marks on deadbody
One healthy person can thus give eye sight to two blind persons.

H10: NOTTO

National Organ and Tissue Transplantation organization- HQ: Safdarjung

Hospital,Delhi. ~150 crores.
Itll provide ICT-enabled interface between organ donor and recipient, via call centre and
webportal.
In first phase- will cover only Kidney cases.
Will provide a state-of-the-art transplantation operation.
Govt will also setup regional bodies with similar features. NOTTO will coordinate
among them.

H11: Misc. Developments

Leprosy

Suicide

Bacterial disease. Also called Hansens disease.

Multi-drug therapy available in 81.
Yet, patients continue to suffer and face social stigma.
Supreme Court has asked the government to explain is this happening?
National Institute of Mental Health and Neuro Sciences (NIMHANS) on
launched a website dedicated to suicide prevention.
in collaboration with the White Swan Foundation.

Mock MCQs
Q1. Consider following statements
1. Ebola virus got its name because of a river in Congo
2. Both sand flies and mosquitos are vectors of Ebola Virus.
3. Ebola can spread via sexual intercourse.
Answer choices
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q2. Which of the following are vulnerable to Ebola virus

1. Humans
2. Gorillas

3. Chimpanzees
Answer:
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them

Q3. Consider following statements about Kala Azar:

1. Kala Azar is caused by Leishmania bacteria which are spread to humans via male sand
flies
2. In India, the worst affected states are Telangana, Andhra Pradesh, Maharashtra and
Odisha.
3. Kala Azar is a notifiable disease in India.
incorrect statements are
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q4. Consider following statements about Rotavirus

1. Rotavirus causes diarrhea
2. These virus primarily affect the medular region of the brain in infants.
3. Rotavirus vaccine is yet to be developed.
the incorrect statements are
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q5. What is XDR TB?

A. TB that is resistant to first line antibiotics
B. TB that is resistant to second line antibiotics
C. TB developed because of HIV

D. None of above.
Q6. What is Cavilon?
A.
B.
C.
D.

Name of an anti-Ebola vaccine going under clinical trials.

An insecticide to kill sandflies which are responsible for Kala Azar
A new drug as a replacement of Diclofenac, to save vulture population
A cut prevention cream for boxers.

Q7. What are BRCA genes?

A.
B.
C.
D.

Genes only found in Caucasian people and responsible for their fair skin.
Genes only found in Indian tribal and responsible for their sickle cell anemia.
Their mutation indicates possibility of Brest or ovarian cancer in future.
None of Above.

Q8. Hensens disease is caused by

A.
B.
C.
D.

virus
parasite
bacteria
fungi

Q9. Health minister recently talked about a NOTTO web portal. What is the purpose of it?
A. Facilitating the doctors to report the notifiable dieses to Government authorities online.
B. Registration of transgendered people for medical checkup before granting them OBC
certificate.
C. Checking up the Travelers from Liberia, Sierra-Leon etc. for possible Ebola cases.
D. Providing transparent interact between organ donors and recipients
Q10: which of the following is/are incorrectly matched?
1.
2.
3.
4.

Liberia: Bomako
Sierra Leone: Conakry
Guinea: Free town
Nigeria: Abuja

Incorrect pairs are

A. Only 1 and 2
B. Only 1, 2 and 3

C. Only 2, 3 and 4
D. None of them
Q11. which of the following can kill Ebola virus?
1.
2.
3.
4.

Chewing neem or tulsi leaves

Soap
bleach
sunlight

Correct choices
A.
B.
C.
D.

Only 1 and 2
Only 1, 2 and 3
Only 2, 3 and 4
None of them

Correct Answers for the MCQs

1. C: 1 and 3 correct.
2. D: All of them can get Ebola
3. A: 1 and 2 are incorrect about Kala Azar.
4. B: 2 and 3 are incorrect.
5. B 2nd line
6. D cut prevention
7. C cancer
8. C bacteria
9. D organ donation
10. 1, 2 and 3 are wrong. Refer to school atlas for correct pairs.
11. C: 2,3 and 4 are correct as per PIB. There is *no* scientific proof that chewing neem/tulsi
leaves can kill Ebola, except chain-message in whatsapp and random readers comments
below newswebsite-articles.
Tags: shivaram
[Diplomacy] India Nepal Power trade Agreement (PTA): Features, issues; Bhutan Hydro
Love-n-Hate
Diplomacy2 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi

1.
2.
3.
4.

D1: India-Nepal agreements during Modi visit

D2: Power Trade agreement (PTA) with Nepal
D3: India-Bhutan: Hydropower sharing
D4: Indian Intervention in Bhutan Politics

D1: Power Trade agreement (PTA) with Nepal

Happened in September 2014, after Prime Minister Narendra Modi came back from Nepal.

Now any Nepali public or private entity can sell electricity to India.
India wanted to setup a joint venture Company with Nepal- for trading electricity. But
Nepali Government did not agree.
India even offered to help developing Nepals hydro-electricity power but their political
factions disagreed.
Modi has earlier said- Nepal has immense hydropower and just be selling electricity to
India, they can become a developed country(!)

Features of PTA with Nepal

Includes
Doesnt
electricity power trade, cross-border transmission, inter- Indian investment in Nepali
connection and grid-connectivity
power sector.

Dont confuse
Power trade agreement
Power Development pact
Between respective Governments of Nepal Between GMR India with Nepali Government to
and India
develop Karnali hydropower.
Signed with consensus of Maoists and other Nepali maoists dont like this, not one bit so
political factions of Nepal.
theyve began protests.
D2: India-Nepal agreements during Modi visit
India Nepal Agreements during Modi visit (Aug2014)
HIT Highways, Information ways, Transways.
Infrastructure
Modi promised them $1 billion loan for infrastructure and energy projects

Border

Will form Boundary working group to construct boundary pillars.

Joint commission on border issues

Energy

Transport

3 MoU
Trade
Misc.

Raxaul-Amlekhgunj petroleum pipeline

Hydel projects- Upper Karnali (Nepal and GMR), Arun III, Upper
Marsyangdi and Tamakoshi III
Cross border railways at 5 border points, 4 integrated check posts
Bridges over Mahakali river at Mahendra nagar
India to allow 3 additional air entries Janakpur, Bhairahawa, Nepalgunj
Pancheshwar Developmental Authority
Tourism in Nepal
Doordarshan and Nepal TV

India will remove quantitative restrictions on Nepalese products.

Grant to provide iodized salt to Nepalis.
Donated 2500 kgs of Sandlewood to Pashupatinath temple.

D3: India Bhutan Love n Hate over Hydroprojects

Topic in news because during April 2014, India and Bhutan signed a new Inter-Governmental
Agreement
for
hydro
projects.
Sequence of Events

2006: India Bhutan signed agreement. India promised to develop 10,000 MW

hydropower in Bhutan. Bhutan promised theyll export surplus electricity to India by
2020.

Following three already supplying electricity to

India
336 MW
Chukha project
60 MW
Kurichu project
1020 MW
Tala project
1416 MW
Total

Following will supplying electricity from

2018
1200 MW
Punatsangchu-I
1020 MW
Punatsangchu-II

Mangdehchu
Total

720 MW
2940 MW

New Agreements in April 2014

Kholongchu project 600 MW
180 MW
Bunakha project
570 MW
Wangchu project
Chamkarchu project 770 MW
2120 MW
Total
numbers not important but these are all run of the river type dam. They dont store water in
reservoirs, hence less problem of siltation and ecological damage.
D4: Indian Intervention in Bhutan Politics

1. Bhutanese economy is based on agriculture, forestry and tourism. But major of GDP
comes from construction and hydro-electricity.
2. India is the only importer of Bhutanese Hydroelectricity.
3. We also supply them Bhutan laborers, food imports and defense equipment.
4. But relations turned sour during previous PM Jigme Thinleys inclination towards China.
Chinese Angle

2008: China begins Border settlement talks with Bhutan.

China asked Bhutan to give 250 sq.km from North Bhutan. And offered to give 500
sq.km area from China in return.
But this smaller 250 sq.km area is in Chumbi valley- @tri-junction of Bhutan, India and
China.
If China sets up base here, they can easily penetrate India and cut off North Eastern India
from rest of the country.
Fortunately Bhutan government declined the offer.
2012: RIO+20 summit. Chinese leaders again made offer PM Jigme Thinley , he
responded positively.

India alarmed, begins teaching lesson to Bhutan

1. Until now we gave Aid/donation to Bhutan for building their Hydroplants. But now we
stopped giving free aid. Only loans for Bhutan.
2. Stopped kerosene and cooking gas subsidy.
3. Subprime crisis=> declined tourists. GDP stagnates. No money to repay Indian loans.
4. So far Bhutan PM completed only 3 Hydro project = not sufficient production to cover
the costs.
5. Cannot give any more subsidy on Kerosene and cooking gas =>Bhutanese juntaa
protests. 2013 General election in Bhutan, they vote new Prime Minister Tshering
Thogbay.
PM Tshering Thogbay visits India & promises Ill remain in my aukaat, will not take any
decision against Indian security interests. India is satisfied, and stops teaching lesson
1. Announced Rs.500 crore economic aid. (aid=dont have to repay loan principal /
interest.)
2. Restored subsidy on kerosene and cooking gas
3. Promised additional HEP projects with help of Indian public sector undertaking.

Fast forward to April 2014: we signed agreement for Chukha, Kurichu, Tala projects.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-Modi, Rajtanil
[Speech Summaries] Vice President on Emerging Asia, Europe & Iran
Diplomacy2 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. VP speech: Europe and Emerging Asia
2. VP speech: India-Iran
Vice President speech: Europe and Emerging Asia
Historical perspective:

The Eurasian landmass, historically considered as two continents

Since a long time, Europe was familiar with Asian lands, military prowess, empires,
manufactures.
Then Portuguese dis covered Cape of Good Hope. Europeans began naked colonisation
of Asia, using trade companies.

Century Was century of ___.

19th
Europe
20th
USA
21st
Asia
Rising Asia, Emerging Asia
Historian Niall Ferguson has identified 6 qualities that contributed to the rise of the West,
1.
2.
3.
4.
5.
6.

Competition
Science
property rights
Medicine
Consumer society
work ethics (GS4)

But, these six qualities are no longer monopoly of the West.

China, India slowly imbibing them and rising as global powers.

ADB projection: By 2050, Asia would contribute 50% of the world GDP and investment;
Asias per capita income will be similar to Europeans.

Challenges for Emerging Asia:

Religious and Cultural diversity and complexity- posing challenge to social cohesiveness.
Asia needs high growth rate to reduce poverty, combat climate change and ensure food
security.
Most Asian Governments face challenge of corruption and inefficiency.
Rivalry among regional power, delays the ushering of the Asian century.
Nonetheless, both Europe and USA are worried about losing their economic domination
against Emerging Asia.

Why Europe Falling?

PIGS-Sovereign debt crisis, has weakened the economic grip of EU.

High level of unemployment, ageing population.
Energy dependence on middle east and Russia.
Declining natural resources and Military clout.
Social conflicts because of migrants and minorities.

Why Asia-Europe need synergy?

Asia
needs technology and specialized skills;

Europe
Europe
needs
markets,
workforce and investments.

Large and small democracies- face challenge of terrorism, cyberSame

crimes, drug trafficking, money laundering, natural disasters.
But, the relationship between the two continents will have to be one of a multilateral framework
of
equals.
Ref: http://pib.nic.in/release/release.asp?relid=109650
VP speech: India-Iran
Historical perspective:

Close relationship between Avestan or Old Persian and Vedic Sanskrit language.
Persian had remained court language in India for a long time.

During Mughal period, there were 7 times more Persian readers in India than in Iran.
A Mughal miniature painting depicting Jahangir embracing Shah Abass I of Persia
symbolises peace and harmony between India and Iran.
1823: Raja Ram Mohan Roy published 1st Persian newspaper in the world..
Indian languages like, Bengali, Marathi and Urdu have deep linkages with Persian
language

Modern
Iran is geo-politically important to India because:

times:

1. Irans location on the Persian Gulf littoral

2. Irans location on the western borders of Pakistan and Afghanistan.
3. Iran being a major source of hydrocarbons
With birth of Pakistan, the common border between India and Iran ceased to exist.

Although weve signed Treaty of Friendship but Indo-Iran relationship have faced mutual
neglect for a long time.
This diplomatic-distance increased with the Cold War. India remained non-aligned while
Iran joined various military pacts and alliances.
In 1971s war, Iran maintained neutral.
India retained a carefully balanced position in the long Iran Iraq War.
90s: strains in relation after Irans comments on Jammu and Kashmir.
Mid 90s: bilateral visits by leaders of both nations.
2003: Iranian President was chief guest for Indias Republic Day.

Future ahead:
1.
2.
3.
4.
5.
6.

Need to enhance cooperation in energy sector

Jointly work for Peace and stability in Afghanistan
Cooperation for the Chabahar port.
North-South corridor- from Iran to central Asia to Europe
Under sea gas-pipeline from southern Iran to West coast of India
Sea- Navigation freedom in Persian gulf and strait of Hormuz.

Ref:http://pib.nic.in/release/release.asp?relid=109631
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-India-O, Rajtanil

[Diplomacy] Nalanda University & Arunanchal Railways

Diplomacy3 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. D1: Nalanda University
2. D2: Railway link to Arunanchal Pradesh
D1: Nalanda University
Nalanda: Ancient times

During the rule of Kumargupta of Gupta dynasty.

Mahayana monks Asnaga and Vasubandhu said to have found Nalanda in 400-500AD
Chinese pilgrim Hiuen Tsang, came during Harshas reign, gave detail account of
Nalanda University.
o Nalanda was a huge monastic-educational establishment.
o Teaching done in Sanskrit.
o Primary teaching focus: Mahayana Buddhism, yet included other secular
subjects as well- Like, Grammar, logic, epistemology and sciences.
o Active discussions and debates were taking place.
o Harsha is said to have invited a thousand learned monks of Nalanda to take part in
the philosophical assembly at Kanauj.
Another Chinese scholar, Itsing, mentioned that Nalanda housed 2,000 students, was
funded by revenues of 200 villages.
Thus university continued to be the centre of intellectual activity till the 12th century
1193 AD: Turkish ruler Qutbuddin Aibaks general Bakhtiyar Khilji destroyed Nalanda
University.

Nalanda: Modern times

2006: President Kalam proposed setting up this university as an international learning

institute, a link between the past, present and future, a channel for knowledge exchange
between scholars of the world
Singapore, China, Thailand and Australia have contributed funds.
university came into existence by a special act The Nalanda University Act
2012: Noble Laureate Amartya Sen was appointed the Chancellor
Total 7 schools- including ecology, environment and historical studies.
2020: will become fully operational, with campus in Rajgir foothills.

Until then, temporary classes at Rajgir convention hall, students will live in a hotel.
Foreign minister Sushma Swaraj inaugurated in 2014, September.
University aims to become a research university, not a teaching university.

D2: Railway link to Arunanchal Pradesh

Q. Discuss the importance of rail connectivity to Arunanchal Pradesh and the recent
initiatives
taken
therein.
(100
words)

In recent years, China has extended its railway network upto Xigaze- close to Sikkim;
now planning to extend rail links upto Sino-Indian border just across Tawang Valley in
western Arunachal Pradesh.
Therefore, Indian rail connectivity to Arunachal becomes top-strategic priority.
During peace times, itd help boosting trade, tourism, connectivity and thus national
integration.
During war, same can be utilized for moving troops, food, ratio and ammunition.
However, since late 80s, Arunachal had barely 1.25kms railway in East Kameng district.
In 2014, Northeast Frontier Railway finished rail station @Naharlagun, barely 10 km
away from capital Itanagar. This links Arunachal to Assam and from there to rest of
India.

~107 words. Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International
relations (IR) for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-India-O, Rajtanil
Food Security Act: Salient features, Benefits, Entitlements, grievances redressal system &
criticism
Economy3 months Ago69 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.
8.

Prologue
National Food security Act
Prices and Entitlements under NFSA
Grievance Redressal Mechanism:
Deadlines under Food security Act
Implementation in States/UT
Targeted PDS system reformed
Limitation of NFSA:

Prologue
Economic Survey Chapter 8: Agriculture and Food Management. SIX subparts:
1.
2.
3.
4.
5.
6.

Fertilizer subsidy & schemes, Budget-2014 announcement

Minimum support pricing
National food security act (NFSA)
WTO Bali Summit
APMC reforms, National market for agriculture, NSEL crisis
El Nino and its impact on Indian monsoon

National Food security Act

India: Per capita availability of Food
foodgrain ~185kg
edible oil ~16kg
milk
295 gm/day (higher than world avg.)
eggs
55/year
Fruits
172gm/day

Vegetables 350gm/day

Timeline

1997

Antyoday Anna Yojana

25 kg foodgrain per family
Rice price: Rs.3/kg
Wheat price: Rs.2/kg

National food security act passed. Todays topic of discussion

2000

2013

Targeted Public distribution system (TPDS)

Two tier pricing structure: BPL and APL.
State Governments decide BPL and APL based Planning commission

Responsibility under Food security act

UNION
STATE
allot foodgrains to states as per
identifying the eligible households
their requirement
transport food grain to states
Deliver it to beneficiaries.
if stock insufficient, then give food if cant deliver foodgrains to beneficiaries, pay them food
allowance to states
allowance. (Union will decide the rates).

67% of Indian population covered.

State Governments have to identify the households in such manner that 75% rural + 50%
urban population covered.
States can use data from socio-economic and caste census (SECC). click me for more
details

Who gets what? Prices and Entitlements in NFSA

Ration card in the name of eldest woman of household. If not available then eldest man

Quantitative entitlements
Household
Theyll get __ Foodgrain
Antyodaya Anna Yojana (AAY)i.e. bottom strata of BPL population 35 kg for entire family
Priority household
5 kg per person

Who gets what & how much?

Foodgrain
Rice
Wheat
Coarse grains

households will pay Rs. ___ per kg

3
2
1
free meals @Anganwadi
Women preg/lactating*(6 months post
Rs.6000 in installments
birth)
child: 6 month upto 6 years

free meal @Anganwadi

free midday meal at school
take-home rations

child 6 years to 14 years

in case of non-availability of foodgrains

Union will give Food security allowance to

states
states will give to beneficiaries

*Assistance to pregnant women under NFSA, is similar to Indira Gandhi Matrutva Shayog
Yojana, under which pregnant women are given Rs.4000 in 3 installments
Grievance Redressal Mechanism:

Supervise all entitlements

evaluate implementation of this act
Power of civil court, punish + penalty up to Rs.5000
1 chairman+ 5 members + 1 secretary

First point for complaint under NFSA

State Food commission

District
officer

grievance

Redressal

Further appeal to State food officer

+ call centres and helplines

Targeted PDS system reformed

Grievance redressal mechanisms at district and state levels.

TPDS stores license- first preference will be given to panchayats, SHGs and
cooperatives.
Doorstep delivery of food-grains to TPDS outlets.
ICT tools to ensure transparency
Introduction of schemes like, Aadhar cards, direct cash transfer, food coupons for
targeted beneficiaries (recommended by Kaushik basu committee)

Deadlines under Food security Act

Law came into force
July 2013, 5th
Deadline to identify eligible households
July 2014 (i.e. within a year)
BJP Government Extended household-identification deadline to October 2014
State/UT who already implemented
Full
1.
2.
3.
4.
5.

Haryana
Rajasthan
Punjab
Chhattisgarh
Maharashtra

partial
1. Delhi
2. Chandigarh
3. Himachal Pradesh
4. Karnataka
5. Madhya Pradesh
6. Bihar

Limitation of NFSA:
(List not exhaustive)
1. High fiscal burden- subsidy cost above 1.25 lakh crore rupees per year. (Budget 2014
allotted 1.15 lakh crores, out of that, 88000 crore specially for Food security act.)
2. Government will have to keep large stock of foodgrains but FCI storage capacity
insufficient.
3. If so much food grains kept out of open market (and under FCI godowns)=> food
inflation, middle class will suffer.

4. Government may have to import foodgrain during drought years => additional current
account deficit.(CAD)
5. An Adult needs ~14kg foodgrain. While NFSA gives only 5 kg per person to Priority
households- cruel joke and marketing gimmick.
6. Focusing only cereal. What about pulses (to give protein), edible oil (to give fat), fruits,
vegetables (for vitamin) and milk- to combat malnutrition?
7. Malnutrition has its connections with lack of sanitation and medical facilities in rural
areas. NFSA alone insufficient.
8. Parliamentary standing Committee has recommended GPS tracking of trucks, CCTVs in
go-downs to prevent diversion. But this are not implemented.
9. identifying households eligible for this scheme = big challenge
10. Section 44 of the act: During natural calamity and wars- Union and state govt. will not be
responsible for non-supply of foods.
11. Stopping institutional corruption in state PDS machinery = mission impossible #6.
12. Modi decided to shut down planning commission because the renovation Cost was too
high. Same is the problem with this entire PDS system- it needs to be shut down,
Government should simply give foodstamp / DBT to poors, letem buy whatever food
they want from open market. These beneficiaries / entitlements/ mai-bap-raj must end.
13. Economic survey: it doesnt openly say that NFSA is Bogus, but recommends food
stamps be given to poors because (free) market economies use that mechanism.
Tags: Economic Survey 2013, Rajtanil
[Economy] WTO: Bali Summit, Trade Facilitation Agreement (TFA), De-minimus level,
10% Subsidy Limit, Why Modi Opposed?
Economy3 months Ago161 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.

Prologue
WTO: Structure and functions
Tariff and Non-Tariff Barriers to Trade
WTO agreements
Agreement on Agriculture (AoA)
1. Green. Blue and Amber subsidies
2. Amber box: De Minimus limits
6. What is Bali summit and Peace clause?
7. What is Trade Facilitation Agreement?
8. Why Modi opposed Trade Facilitation Agreement

Prologue
Consider this a Fork of the Economic Survey chapter 9 on Agriculture and food production.
WTO: Structure and functions
Q. Write a note on origin, structure and functions of WTO? 200 words
1944: Bretton Woods summit leads to birth of three institutions
Institution KEY IDEA
World
Cheap loans for development projects in third world
bank
IMF
Balance of payment and Exchange rates
To reduce barriers to international trade.
Bretton Woods wanted to setup an international trade organization (ITO) but
USA did not ratify.
Thus, GATT was born as a stopgap arrangement.
GATT
General Agreement on Tariffs and Trade.
GATTs Uruguay round of talks => Marrakesh Treaty94=> World trade
organization (WTO) born in 1995, India founding member.

WTO structure

MinisterialConference

GeneralCouncil

Supreme Decision Making body

160 members, Latest member Yemen (Capital: Sanaa)
Meets once every two years,
deliberates on trade agreements
Appoints Director general
day to day Decision Making body
Meets regularly at Geneva.
implements decision of ministerial conferences
Has Representative from each member state.

has two bodies, with separate chairmen

1. Dispute settlement body
2. Trade policy review body

Below general council, there are Committees on individual

agreements and annexes- Anti dumping, Subsidies &

countervailing measures (SCM) etc.

DirectorGeneral

Roberto Azevdo
Appointed by ministerial conference
Has four years term.
heads the Secretariat at Geneva

WTO Functions
1. Ensure the developing countries benefit from world trade, especially the least Developed
countries.
2. Reduce barriers to international trade both tariff barriers and non-tariff barriers.
3. Get the members Enter into multilateral trade agreements to achieve above objectives.
4. Provide forum for negotiation and dispute settlement for the members, if the agreements
are violated.
5. Cooperate with UN, World and IMF for a global economic policy that improves
livelihood, protects environment and promotes sustainable Development.
Tariff and Non-Tariff Barriers to Trade
All countries want to protect domestic industries and prevent entry of foreign players. So, they
create two types of barriers to International trade:
Tariff
Barrier

If US President Obama imposes 56% custom duty on Indian Cars.

If Obama tries to restrict entry of Indian cars without imposing heavy taxes on
Indian cars, for example

Non-Tariff
Barrier

1. Subsidies: Giving free electricity to Detroit car manufacturers. OR If

American residents buy American made cars, Obama administration will pay
50% of your vehicle insurance premium, and so on.
2. Public Procurement: Making rule that only American companies can fillup
tender for new sarkaari cars.
3. Other obstacles like not giving custom clearance quickly. Putting quota on
each exporter country and so on.

World Trade organization (WTO) aims to reduce such tariff and non-tariff barriers to
international trade.

But what if China starts manufacturing cheap cars with poor breaks, bad steering and
carcinogenic paint. Can Obama ban such dangerous foreign products? Does WTO permit
that?
Yes, WTO made two special agreements for safety:

Non-food products Technical Barriers to Trade Agreement (TBT)

Sanitary and Phytosanitary Measures Agreement (SPS)
Food Products
EU had banned Indian Alphonso under this provision.

WTO agreements

Gist of the whole controversy surrounding India, WTO and TFA

Q. Write a note on WTO agreements 200 words
Five categories of agreements (or 6, depending on which book you refer!)
T1: Goods
1. General Agreement on Tariffs and Trade (GATT)
2. Agreements on
a. Agriculture
b. Textile
c. Antidumping
3. Safety / quality checks related
a. Sanitary and phytosanitary agreement (SPS)
b. Technical barriers to trade (TBT)
4. Trade related investment measures (TRIMS)
5. Subsidies and countervailing measures (SCM)
T2: Services

General Agreement on Trade in Services (GATS)

To ensure that services import/export enjoys the same principles of free and fair trade,
just like the trade in goods.

T3: IPR

Trade related intellectual property rights (TRIPS)

Protects seven categories of IPR viz.

1.
2.
3.
4.

copyrights
patents
trademarks
Geographical indicators

5. industrial designs
6. integrated circuit layout-designs
7. Trade secrets

T4: Dispute settlement

to enforce the trade agreements and commitments made by individual member country
once a complaint is filed, first, the parties are allowed to sort the issue through mutual
consultation

If that fails, formal adjudication by an expert panel.

T5: Policy review

Periodically, WTO carries out audit/inspection/review of the trade

policy of member states and gives them constructive feedback.

T6:
plurilateral
agreements
Not signed by all countries:
1. Civil aircrafts
2. government
procurement
3. Dairy Products
4. Bovine meat

~204 words
WTO has many other agreements but hard to memorize and fit into a 200 word answer anyways.
For exams in 2014-17, the important agreement is AoA. (Because itll stay in news due to 10%
food subsidy issue)
Agreement on Agriculture (AoA)

WTOs Agreement on agriculture (AoA) has three pillars

Pillar
What they want from member states?
1.Market access
reduce import duties

2.export competition reduce export subsidies

3.domestic support reduce Amber box subsides
AoA classifies subsidies into two parts:
DOMESTIC SUBSIDY
EXPORT SUBSIDIES
mostly by third world to keep help mostly by first world, to keep their MNC-corporatized
farmers and keep vote bank happy
farmer lobby happy.
to increase food production, food to capture Foreign market by flooding their cheaper
security
products
India doesnt give much export subsidies to farmersexcept a select horticulture and floriculture Items
AoA further classifies them into 3 parts
AoA wants members to reduce export subsides
1. GREEN
2. BLUE
3. AMBER (WTO wants to reduce
these subsidies)

developed countries: cut by 36%

Developing: by 24%
Least developed: not applicable.

Green blue and Amber subsidies

Just like traffic signal has three colors: green (GO), orange (caution) and red (STOP).
Similarly, WTO classifies DOMESTIC AGRICULTURE subsides into three categories:
green (GO), blue and amber (reduce).
There is no RED box meaning WTO doesnt wish to completely STOP subsides,
because it is impractical anyways!

Box

subsidies
Subsidies that dont disrupt trade balance OR
Only cause minimum damage to trade balance.
E.g. agriculture research-development, extension services, farmer training
GREEN
programs, pest-disease control program, flood/drought relief money paid to
farmers etc.
WTO Limit: nothing. Governments can give as much as they want.

BLUE

Amber type Subsidies that aim to limit production.

Subsidies that dont increase with production. For example subsidies linked with
acreage or number of animals.
Very few countries use blue box- Iceland, Norway, Slovenia etc.

WTO limit: Nothing.

Subsidies that disturb trade balance like, subsidies on fertilizers, seeds, power
and irrigation.
They distort trade balance because they encourage excessive
production,therefore given countrys product becomes cheaper than others, in
the international market.
WTO limits: yes- explained below

AMBER

Amber box: De Minimus limits

Q. Explain De-Minimus limits in WTOs agreement on agriculture. Why is India opposed to
it? (200 words)

Under WTOs agreement on agriculture (AoA), domestic-subsidies are classified into

three groups: Green, Blue and Amber.

Amber box subsidies create trade distortion because they encourage excessive production
e.g. fertilizers, seeds, electricity and irrigation subsidies.

Therefore, WTO wants to limit the amber box subsidies.

De Minimus is the Minimal amounts of Amber box subsides permitted by WTO, even
though they distort trade.
De minimus limits are calculated on the agriculture production of the given member state
in 1986-88.

Country
De-Minimus: Amber box subsides quota
Developed
5% of agriculture production in 1986-88
Developing
10%
Least developed Exempted.**
** Besides if theyre L.D.C=> theyve no AUKAAT to give truckload of subsidies anyways.
Why is India opposed?

India fears itll have to cut down its food subsidy to comply with WTOs De-minimus level
1. In 1986: USA agriculture production was far ahead of India. So, their 5% De-minimus
quota will be far bigger than our 10% quota (in absolute figures).
2. Input costs have skyrocketed in these decades. But, De-minimus doesnt consider
inflation factor.
3. So, if India has to limit its (Amber box) agro. subsides to a non-inflation adjusted 86s
production, we cannot continue the MSP to farmers or food security to poors.
4. These subsidized foodgrains are meant for feeding the poors only, they do not distort
international trade.
~190 words
Indias subsidy Expenditure in Crores (Rs.)

Subsidy component RE-2013 BE-2014

Food

92000

115000

Petroleum

85480

63427

Fertilizer

67971

72970

Ranking 2013: Food > Petroleum > Fertilizer

Ranking 2014: Food > Fertilizer > Petroleum
What is Bali summit and Peace clause?
Q. What is hell is Bali Package and Peace clause? (200 words)

December 2013: 9th WTO ministerial conference held at Bali, Indonesia

Bali Package is the collection of three prime outcomes of this summit.

Trade
facilitation
agreement

To cut down the red tape in customs clearance

Exporters from Least developing countries, will get Duty free, quota
free (DFQF) access to markets in foreign countries.

this lead to peace clause, explained below

LDC exports
food stockholding

as per the original Agreement on agriculture (AoA), the developed and developing
countries have to keep their Amber box subsidies within De-minimus level i.e. 5% and
10% of their agriculture production in 1986-88 respectively.
India opposed this base year and limits, because itd make impossible to implement the
food security programs for the poor and MSP for the farmers.
Therefore, as a measure of temporary relief, Bali summit enacted a peace clause for the
AoA

Salient features of Peace Clause

No member, can drag any developing country to Dispute settlement mechanism of WTO.
for violation of De-minimus limits in AoA
Provided that the said developing country

1. is paying subsidies for staple foodcrops

o for public stockholding program

For food security purpose.

2. is providing annual information of its food security Program to WTO.
3. Permanent solution will be taken no later than 11th ministerial conference i.e. at
December 2017.
o

~215 words.
What is Trade Facilitation Agreement?

Manniram is happy knowing that Modi has refused to sign TFA!

Q. Write a note on the salient features of Trade facilitation agreement (200 words)
ORIGIN 9th WTO ministerial conference held at Bali, Indonesia in 2013
AIM
reduce red tapes and bureaucratic hassles in customs clearance
Under TFA, Every member:
1. Will have to publish a detailed list of procedure for import-export, fees, inspection rules,
penalties etc.
2. Minimize the proof documents and clearance required for customs clearance.
3. Make all the information available on INTERNET to foreign traders, governments and
interested parties
4. Provide electronic payment of fees, duties, taxes.

5. Setup a single window mechanism to help trader submits all documents at a single pointpreferably online.
6. Trader should be notified immediately, If goods are detained at customs.
7. Provide faster customs clearance to perishable goods (Fruits, veggies, flowers).
8. Member must not ask foreign traders to compulsorily route their applications/fees via
local customs brokers/middlemen.
9. Give Advance ruling, as and where applicable. (Recall advance ruling provision on taxes,
under Budget-2014.)
Least developed countries
Theyll get financial and technical help to comply with above rules.
New Bodies under TFA
LEVEL
body to implement Trade facilitation agreement
Every nation will have to setup a Committee on Trade Facilitation.
itll implement this agreement and coordination with the
NATIONAL
international body

INTERNATIONAL

WTO will setup a Committee on Trade Facilitation

all members can participate
Itll will provide dispute settlement for violation of any provisions
under this agreement.
will elect its separate chairman
Will meet at least once every year, review agreement every four
years.

Benefits of TFA:
A simplified customs clearance mechanism will boost international trade, and thereby it will
will increase in global GDP $1 trillion (~Rs 60 lakh crore)
will create more jobs
21 million

Deadlines under TFA

deadline to sign TFA
2014, July, 31stBut India refused.
Agreement becomes effective from 2015

~280 words. But in exam, all points cant recalled so itll automatically FIT the 200 words
limit!
Why Modi opposed Trade Facilitation Agreement
Q. Why has India refused to sign Trade Facilitation agreement? (200 words)

WTOs Trade Facilitation agreement (TFA) aims reduce the redtape and bureaucratic
hassles in customs clearance and thereby facilitate international trade.
But, TFA maintains that it doesnt diminish the rights and obligations of members
under other agreements of WTO.
For example, under the Agreement on Agriculture (AoA) if a developing country is
giving Amber box subsidies beyond 10% of its national agriculture production (base year
1986), THEN other members will be justified in putting trade sanction or WTOcomplaint against the said country.
2013: In Bali Summit, the then UPA Government agreed to sign TFA, after WTO Peace
clause, which gave temporary exemption to developing countries from 10% de-minimus
provision until 2017.
2014: Change of regime,

Modi Government has refused to sign TFA before deadline (31st July 2014), because:
1. Once India has signed TFA, the developed countries may stonewall her demands for a
rational change in base year and ceiling limits on agro. Subsidies.
2. Then India will have to cut down agro. Subsidies in MSP and food security programs,
else theyll put sanctions on us, soon as Peace-clause temporary deadline is over in
2017!
3. And yet, well have to keep giving them easy customs clearance because we signed the
TFA!
Therefore, Government has decided to use TFA signature as a Bargaining Chip for a
permanent solution of food subsidies issue.
~220 words
Tags: Economic Survey 2013, Rajtanil
[Geography] El Nino, Its Impact on Indian monsoon, Indian Agriculture (+points from
Economic survey)
Geography3 months Ago58 Comments

For ACIO & Insurance AO

Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1.
2.
3.
4.
5.
6.
7.
8.
9.

Prologue
What happens in a Normal Year?
What happens in La Nina Year?
What happens in an El Nino year?
What is Southern Oscillation?
How does El Nino affect Indian Monsoon?
El Nino 2014 and India
Will El Nino 2014 hurt Indian GDP?
Do we really need to fear El Nino 2014?
1. Arguments: why we dont need to fear El Nino?
2. Arguments: why we should worry about El Nino?
10. Economic Survey Points on El-Nino
Prologue
This is an old article from Current Affairs from April Week3 (16th to 22nd). Ive updated it further
with points from Economic Survey Ch.8 on agriculture to create a separate standalone article.
before
reading
further,
practice
following
UPSC General Studies (Mains) Answer following in 200 words each.

questions:

1. (GS1) What is El Nino? How does it affect India and World?

2. (GS1) Explain in brief, the impact of La Nina on Indian monsoon
3. (GS3) Discuss the structure and functions of Biodiversity Management Committees
under Biodiversity Act 2002? Evaluate their success in India.
Interview
1. The fear about El Nino on Indian Economy is overhyped. Do you agree?
What happens in a Normal Year?

Peru Current = Humboldt Current = Cold Current.

During normal year two things are STRONG
o Cold Peru Current
o Trade Winds
As a result, cold water is dragged from Peru towards Australia. (observe following
image)

Result of this exchange?

In above image, the red (warm) water region around Australia is called Western Pacific
Pool (WPP)
WPP = low pressure = warm air ascends = cloud formation = rain over North Australia
This air also joins walker cell and begins descending near Peru.
Descending air = anti-cyclonic condition = high pressure = stability = no cloud/rain =
Drought in Atacama Desert.

So in a way two cycles are created

@Peru cold water upwelling brings nutrient to surface=
below the Moving of water from
more lunch for Plankton= more fishes = good for Peru
water
Peru to Australia.
fishermen.
above
Moving of air from Warm water + low atmospheric pressure = good rainfall over
water
Australia towards Peru. Australia & Indonesia.
Ok, we learned what happens in Normal year. Now lets check
What happens in La Nina Year?
same things as in a normal year, but those two things become even stronger
1. Cold Peru Current
2. Trade Winds
Result?

Too many fishes @Peru coast, oversupply of fishes= prices become dirt cheap
Too much rain / flood over Australia and Indonesia.

Now coming to the main topic:

What happens in an El Nino year?

Observe

following

image:

two things become WEAK

1. Cold Peru Current
2. Trade Winds
As result, cold water is not dragged from Peru to Australia.
But reverse happens warm water is dragged from Australia towards Peru.
Consequently, warm water + low pressure condition develops in the Eastern Pacific
(Peru) and Cold condition + high pressure in Western Pacific (Australia).

Since Pressure is inversely related with amount of rainfall, the results are following
1.
2.
3.
4.
5.

Rain & Floods @Peru, Atkama and even Southern USA

Drought @Northern Australia, Indonesia- even bushfires.
Storms and Hurricanes in East Pacific.
Coral bleaching (high temperature coral dies)
(for MCQ) El Nino decreases earths rotation rate, decreases Coriolis force and increases
length of day. (La Nina creates opposite). How? Because El Nino changes the wind
pattern, hence Earth needs change speed to conserve its angular momentum of EarthAtmospheric system.

What is El Nino?

Warming of Pacific Ocean

Near Western coast of Peru and Ecuador.
Occurs @every 3-4 years; [In theory, it should occur @every 12 years].
Its impact usually lasts for 9-12-18-24 months.
It weakens the trade winds and changes in Southern Oscillation, thereby affects the
rainfall pattern across the world.

What is Southern Oscillation?

Alternating of (tropical) sea level pressure

Between the eastern and western hemispheres.

We measure Southern Oscillation by observing the pressure difference between

1. Tahiti (French Polynesia) and
2. Darwin (Australia).
Impact of Southern Oscillation (SO)?
Low Index
Smaller pressure difference between (tropical) oceans
of Eastern vs. Western Hemisphere

High SO
Higher pressure
difference

associated with El Nino hence the name ENSO = El Nino-Sothern

La Nina
Oscillation
Weak trade winds
Strong trade winds
poor monsoon
good monsoon

How does El Nino affect Indian Monsoon?

El Nino-Southern Oscillation (ENSO) water circulation happens between Australia and

Peru
But the wind movement is part of larger atmospheric circulation hence affects the
rainfaill over India. But how?

We learned that During normal year, the warm water moves towards Australia, this pool of warm
water is called Western Pacific Pool (WPP). From WPP air rises above and moves towards two
walker cells
1. Towards Peru coast = this affects rainfall in South America.
2. Towards Mascarene High Pressure zone near East Africa. = This affect Indian monsoon.

DURING NORMAL YEAR

DURING EL NINO YEAR
strong WPP
weak WPP
strong trade winds
weak trade winds
strong Mascarene High
weakening of winds flowing towards Mascarene
Strong push for moisture laden
high
winds towards India
weak push to Monsoon winds towards India
good rain
Less rainfall / weak monsoon.
During La Nina years, this push is
even stronger = heavy rain and floods.
El Nino= Little boy in Spanish.
Hence its opposite is called

La Nina (little girl)

El Vejo= old man, but La Nina
more popular term nowadays.

El Nino 2014 and India

El Nino caused severe drought in India (2009-10).

Sugar price were highest in 30 year history.

Similar drought situation in Australia, Southeast

Asia and Africa. (And floods in Brazil and USA
Midwest.)
Such condition prevails for 9-24 months.

India Meteorological Department (IMD) has predicted below normal monsoon for
2014.
RBI Governor Raghuram Rajan too has warned about the negative impact of El Nino (in
his last monetary policy press conference.)
Poor monsoon / drought like condition = commodities prices will rise especially sugar,
pulses and edible oil. Government needs to stock them up, put restriction on exports,
before black marketers start hoarding.
Farmers need to device alternate farming strategy, change the seeds and irrigation
strategy for the drought like situation.

NEED TO WORRY

DONT NEED TO WORRY

Area depending on Ganga for
Area without irrigation, and totally dependent
irrigation. Because so far
on monsoon.
Gangas water is above its 10
Western India region especially oilseeds, pulses
year average.
and cotton=> high cost of raw material will
Area with alternative irrigation
have negative impact on their manufacturing
solutions (bore well, watersheds,
sectors also.
drip irrigation)

Oilseed and pulses- will have to import them.

wheat price, because FCI has

more than sufficient stock

Will El Nino 2014 hurt Indian GDP?

Merrill Lynch predicated following:
2014 (without El Nino)
good rainfall
inflation declines to ~7%

2014 with El Nino

poor rainfaill / drought like condition
inflation raises to ~10%
To combat inflation, RBI will further increase REPO rate
if inflation declines=> RBI will reduce
(OR RBI will not decrease REPO Rate) => either way
repo
rate=>cheaper
loans=>more
expensive loans => less business expansion => low GDP
business expansion =>more GDP.
growth.
GDP growth rate will increase
low GDP growth rate

2013 = 4.7%
2014 = 5.4%

Do we really need to fear El Nino 2014?

2013 = 4.7%
2014 = ~3.95%

answer is both YES and NO.

Arguments: why we dont need to fear El Nino:
1. Only Strong El Nino affects India negatively. But this time WMO predicted Weak El
Nino.
2. Private Weather Agencies predict only 30% chance of El nino.
3. Not Every El Nino year caused drought in India in the past.
4. Under British Raj and even in 50s era, a drought under El Nino = Millions would die in
starvation and suicide because of moneylenders.
5. But thats not the same India we live in today. ~40% of the farmlands are irrigated; FCI
has large buffer stock of foodgrains; Government has sufficient money to announce
financial packages to drought hit farmers; RBI has sufficient Forex reserve to finance any
emergency food imports; we enjoy goodwill among all developed countries for even
food-aid free of cost.
6. Only IF terrorists blowup all FCI godowns, Black maketeers hoard every last gram of
remaining onions and foodgrains, RBIs forex reserve gets completely empty because of
Fed Tapering..THEN and only THEN El Nino can create havoc on India.
7. El Nino Southern Oscillation = natural phenomenon for redistribution of excess heat.
Humans cannot control or modify this cycle. In theory we can stop El Nino by dropping
10m thick iceberg size of a United States, into the Peru coast- but thats impractical. So,
Instead of fearing El Nino, we must learn to predict and adapt to its consequences.
Arguments: why we should worry about El Nino 2014

Even if El Nino doesnt happen, the mere rumor of El Nino drives up the prices in
commodity market because of the speculative investors. For example, global prices of
Cocoa are high right now- not because of less production but because of El Nino
speculation.
It is true we enjoy good will among developed countries for getting free food aid. But this
time,
o Australia- second largest export of wheat theyre already facing drought because
of Pre-El Nino type condition.
o US Midwest =called Granary of the world for wheat and corn. But they too face
flood danger from El Nino.
India is second largest producer of sugar, rice and wheat in the world. 90% of Rice comes
from Asia.

Combine all these isolated facts with IPCCs latest report on climate change

Erratic Rainfall, melting of Himalayan glaciers, frequent flooding, draughts, storms and cyclones
=> Food insecurity for large population.

United Nations World Meteorological Organization predicted a weak El Nino by the

middle of 2014.
It depends on when exactly during mid 2014 this happens because

IF El Nino happens by summer

IF El Nio happens by fall season

(August to October.)

Then India will be worst affected because of low

Then India will escape without injuries.
monsoon during June- September.
Economic Survey Points on El Nino
From Ch8. Agriculture
What is El-Nino?
1. El Nio effect occurs when surface temperatures in the Pacific Ocean continuously rise
above average for several months, which in turn adversely affects weather in many parts
of the world.
2. El Nino occurs every 3-5 years.
3. South-west (SW) monsoon (from June to September) accounts for ~75% rainfall. Any
shortage here.
4. El Nino often begins to form during June-August, and typically lasts 9-12 months.
Where India should worry?
El Ninos impact will be felt the most at
1.
2.
3.
4.

rainfed regions of central, south, and north-west India

Maharashtra, Gujarat, Rajasthan, Karnataka, Jharkhand, and Bihar.
rice, soybean, cotton, maize, jowar, groundnut, and sugarcane will be affected.
kharif pulses and oilseed

Why India shouldnt worry?

1. While the majority of drought years in India coincide with the occurence of the El Nio,
the reverse link is not that strong. (meaning, El nino doesnt always lead to Drought)
2. For example, in 1997, when the impact of El Nio was reported to be the worst, India had
2 per cent higher than normal rainfall

3. In the past decade, the El Nio occurred in 2002, 2004, 2006, and 2009
4. But 2002-03 was the only year that India showed negative agri sector growth with
average rainfall dropping 20 per cent below normal.
5. The last four occurrences of El Nio reveals that the impact was more in the kharif
season.
6. Government has placed contingency measures in about 500 districts.
7. Central Water Commission (CWC) reflect a better status of water availability.
Mock question
Q1. What is El Nino? How does it affect India and World? (200 words)

El Nino is an Oceanic and Atmospheric phenomenon that leads to unusual warming of

water in the Peru coast.
Consequently, warm water + low pressure condition develops in the Eastern Pacific
(Peru) and Cold condition + high pressure in Western Pacific (Australia).

Since Pressure is inversely related with amount of rainfall, El Nino causes draught
situation in Australia and South East Asia.
El Nino also leads to reversal of pressure difference between Indian and Pacific Oceanknown as Southern Oscillation.
El Nino Southern Oscillation (ENSO) weakens the Trade winds, consequently less push
to the South Western Monsoon Winds from Mascarene High to India, and therefore poor
monsoon.

To India

Drought condition decreases the agriculture output, leads to food inflation.

Declined supply of cotton, oilseeds and sugarcane negatively affects the textile, edible oil
and food processing industries respectively.

To World

Drought situation over South East Asia and Australia hurts rice and wheat cultivation
respectively.
Warm condition over Peru coast: unsuitable for Plankton population, thus bad for fishing
industry. Birds migrate in search of fishes, thus less guano dropping for Fertilizer
industry in Peru and Ecuador.
Flood situation in South America & US Midwest lead to decline in coffee-cocoa and
corn-wheat production respectively.

~220
words
Q2. Explain in brief, the impact of La Nina on Indian monsoon (200 words)
Thats your homework.
Tags: Economic Survey 2013, Rajtanil
[Infrastructure] Project Sagarmala, Port Infrastructure in India, Problems & Reforms
Economy3 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. What is Project Sagarmala?
2. Port Infrastructure bottlenecks
What is Project Sagarmala?

Chinas String of Pearls = aims to surround India by developing ports in neighbor

countries and possible convert them in military base at later stage.
But Project Sagarmala only aims to improve Indias maritime infrastructure by
modernizing existing major and minor ports of India and setting up new ports.

In 2003, then PM Vajpayee proposed Project Sagarmala with following features:

1. Setup Sagarmala Development Authority (Similar to National highway authority of
India)
2. Will get money via Maritime development cess. (5 paise per kg on cargo)
3. Will improve ports, shipping industry, inland water transport, coastal shipping.
4. PPP and FDI to gather more inve$tment.
Two Initiatives by NDA Government
To link Palk Bay with Gulf of Mannar and facilitate maritime trade
Project
through it
Sethusamudram
To modernize minor and major ports of India; + setup new ports. ($22
Project Sagarmala
billion USD)
2004: UPA comes in power, hence Sagarmala project shelved. Anyways, BJP no BJP; Sagarmala
No Sagarmala- but the fact is Indias port infrastructure is in bad shape and needs urgent
upgrades. This leads to next topic:
D3: Port Infrastructure bottlenecks
(GS3) Q. Examine the bottlenecks in Indian port infrastructure and list the initiative taken
in recent times to address this issue. (200 words.)
Reasons:
1. High clearance time at Indian ports- any ship entering India has to sign ~150 documents,
multiple inspection layers and tariff rates.
2. As a result, Indian ports have high turn-around time compared to others. (India -4 days,
China -12 hours, Singapore 4 hours)
3. Absence of large scale warehousing facility and mechanization- especially for
foodgrains.
4. Tonnage of all 12 ports combined cannot compete with Shanghai alone.
5. Indian shipping industry subjected to 12 type of taxes. Tax per ton of cargo, is very high.
6. Large vessels cannot enter in Indian ports. They dock at Sri Lanka, and send cargo via
smaller vessels.

7. Desi Corporates hire foreign ships at higher cost because domestic shipbuilding industry
is underdeveloped. Indian ships carry less than 10% of Indian cargo to foreign countries.
8. As per merchant shipping Act, Indian flag bearing ships must be manned by Indian
maritime officers but there is shortage of trained personnel. In the international Cargo
MNCs- majority of the officers belong to China, Philippines, Turkey and Ukraine.
9. Only 3 LNG terminals -Hazira, Dahej @Gujarat and Kochi @Kerala.
10. Port trust cannot regulate their own tariff, Ports in India need third party neutral regulator.
11. Problems of land acquisition and environmental clearances while setting up new ports.
12. India is lacks expertise to develop maritime infrastructure- this is visible not only at
domestic level but also abroad at Chabhar (Iran) and Sittwe in Myanmar as part of
Kaladan project.
Steps taken
1. Shipping ministry formed new Committee to setup two major ports
a. Sagar, West Bengal.
b. Dugarajapatnam, Andhra Pradesh Simandhra.
2. Together theyll add new port capacity of 100 MTPA.
3. Established Indian maritime university @Chennai, with campuses in Kochi, Kandla,
Kolkata, Mumbai to address the manpower issue.
4. 100% FDI permitted for port development projects (automatic route), along with reliefs
in Income tax for such investors.
5. 12th FYP aims to add ~2500 MTPA port capacity.
6. PPP projects approved at Mumbai, Ennore, Kandla and Kolkata ports DBFOT- Design,
Build, Finance, Operate and Transfer basis.
7. Released guidelines on New Land Policy for Major Ports- to help them leverage their
land resources for commercial advantage.
8. Ford signed an MoU to export the cars from Chennai plant via Ennore Port for next ten
years.
9. Tadadi, Karnataka: proposal to setup a new Greenfield Seaport here.
10. 4th Container Terminal at JN Port
11. Automatic Identification System (AIS) system and Vessel Traffic Management Services
(VTMS) in all the Ports.
12. Statutory body: DG Shipping to implement Merchant Shipping Act and perform
regulatory functions (Like DGCA in aviation sector)
Total ~400 words, but you can selectively lift points to pack them in 200 words. lets try
Q. Examine the bottlenecks in Indian port infrastructure and list the initiative taken in
recent times to address this issue. (200 words.)

Reasons:
1. High clearance time, almost a dozen type of taxes and nearly 150 document verification.
As a result Indian ports have high turn-around time compared to China and Singapore.
2. Absence of large scale warehousing facility and mechanization.
3. Tonnage of all Indias 12 ports combined cannot compete with Shanghai alone
4. Large vessels cannot enter Indian ports. They dock at Sri Lanka, and send cargo via
smaller vessels.
5. Corporates hire foreign ships at higher cost because domestic shipbuilding industry is
underdeveloped.
6. Shortage of Indian maritime officers.
7. Only 3 LNG terminals -Hazira, Dahej and Kochi
8. Issues related to tariff regulation, land acquisition and environmental clearances while
setting up new ports.
Steps taken
1. Shipping ministry formed Committee to setup two major ports
a. Sagar, West Bengal.
b. Dugarajapatnam, Simandhra.
2. Established Indian maritime university @Chennai, with campuses at various port cities
3. 100% FDI permitted for port development projects (automatic route), along with tax
concessions.
4. 12th FYP aims to add ~2500 MTPA port capacity.
5. PPP projects approved at Mumbai, Ennore, Kandla and Kolkata ports.
6. Signed MoU with Ford to export cars via Ennore Port.
7. Proposal to setup a greenfield seaport @Tadadi, Karnataka.
8. 4th Container Terminal at Jawaharlal Nehru Port.
9. Automatic Identification System (AIS) system and Vessel Traffic Management Services
(VTMS) in all the Ports.
~230 words.
Side notes
Major ports
Minor Ports
under Union government
State government (+Private sector)
controlled under Indian Ports Act
So far weve 13 major ports: six on east coast, seven on west coast.

West Coast
1. Kandla (Gujarat)
2. Mumbai (Maharashtra)
3. Jawaharlal Nehru (Maharashtra)
4. Marmugao (Goa)
5. New Mangalore (Karnataka)
6. Cochin (Kerala)
7. Panaji (Goa)

East Coast
1.
2.
3.
4.
5.
6.

V O Chidambaranar, Tuticorin (Tamil Nadu)

Chennai (Tamil Nadu)
Ennore (Tamil Nadu)
Visakhapatnam (Andhra Pradesh)
Paradip (Orissa)
Kolkata-Haldia (West Bengal)

New ports (proposed), both @East Coast:

1. Sagar, West Bengal.
2. Dugarajapatnam, Andhra Pradesh.

Mock Questions
Answer following in 200 words each
1. (GS3) Examine the bottlenecks in Indian port infrastructure and list the initiative taken to
address this issue in recent times.
2. What is Project Sagarmala? How is different than Chinas Strings of Pearls strategy?
Tags: Economic Survey 2013, Rajtanil

[India-China] Democracy in China: Why cant it work?

Diplomacy4 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. D1: Chinese Democracy wont work, says Xi Jinping
2. D2: Sino-Indian partnership in Afghanistan post NATO withdrawal
D1: Chinese Democracy = wont work, says their President
Chinese President Xi Jinping recently stated that multiparty system /democracy doesnt suit
China..
He gave following arguments:
1. Every country has right to develop its own political system
2. We tried Constitutional monarchy, imperial restoration, parliamentary system, a multiparty system and a presidential system.
3. But none of them worked.
4. Only Communist regime gave peace n prosperity to China.
5. Our aim is to build a socialist market economy,
6. We will uphold social equity and justice, promote all-round development of the people,
pursue peaceful development.
7. We should not copy the political system of west. Theyre not suitable for China and will
lead to catastrophic consequences.
8. The fruit (of Democracy) may look the same, but the taste is quite different, Because of
our unique historical and social conditions
(He made this speech during his official trip to Europe).
Background: Democracy in China- was there any?
1912
Dr. Sun Yat Sen overthrew monarchy
from 30s
Nationalist government
to 40s
government formed a Constitution that provided for Two-party system.
(like USA has- Democrats vs Republicans.)
1947
But it did not work due to extreme hatred between Nationalist (under Chiang
Kai Shek) versus communist party (under Mao)

Nationalist government (Chiang Kai-shek) runs away to China while Mao

establishes Peoples republic of China under communist party.

From the 80s, Chinese started a process of economic liberalization under the
leadership of Deng Xiaoping.

1949

80s

Last year, Xi Jinping became the new President.

Many believed Xi will be the new avatar of Deng Xiaopoing.
While Xi Jingping did continue the economic liberalization but he too wants to maintain
tight communist control over China and its people.
To avoid anti-corruption movements (like in Tunisia and elsewhere during Arab Spring)he has taken tough action against corrupt politbureau members and their families.
But at the same time, he also took action to silence the civil society members- who were
demanding transparency and right to information type reforms.

(Interview Question) If you were the ambassador of India to China, would you agree/disagree
with him that Democracy in China- is impossible! What will be your response to this
conversation?
Points to consider:
1. Growing economic liberalization = junta will become richer = demand for freedom and
democracy will grow, especially among the younger generation.
2. So itll be difficult to adopt economic reforms while simultaneously maintaining
authoritarianism.
3. Even the previous PM Wen Jiabao said that China needs to embrace democracy and
political reforms- that alone will help redistribute the wealth more evenly among the
Chinese people.
4. Besides, democracy gives equal opportunity to its minorities living in its periphery. This
will create an ameliorating situation in separatists in Uighur and Tibet region.
5. So, in that way, China would be more peaceful internally than today without needing to
use all its force and resources to quell those separatists movements.
D2: Sino-Indian partnership in Afghanistan post NATO withdrawal
Q. Discuss the obstacles & opportunities of Sino-Indian partnership in Afghanistan after
NATO withdrawal. (200 words)
Obstacles

1. China doesnt perceive Afghanistan under Sharia law as a threat, they even opened
communication with Afghan-Taliban.
2. Chinas main goal is not to preserve democracy in but to simply prevent extremism in
Xinjiang while exploiting mineral resources of Afghanistan.
3. On the other side, India want a democratic Afghanistan, free from clutches religious
extremism.
4. But Sino-Pak relation may also act as deterrent against Sino-Indian cooperation in
Afghanistan.
5. Pakistan does not want a powerful Afghanistan, as it will resurface demands of carving
out pakhtoonistan from Western Pakistan.
6. Economic development is panacea of social political trouble in Afghanistan. But Chinese
investment ($200 ml) in is less than Indian ($3 billion). So, if security concerns worsens
China can afford to leave, while India will have to bear heavy losses.
7. China wants Afghan dialogue through Shanghai Cooperation Organisation, but India is
not a member of SCO.
Opportunities

Joint-infrastructure projects roads and electricity

Provide alternative employment to opium farmers of Afghanistan through commercial
farming.
Access to sea-ports through Karakoram highway.
Economic corridor- Afghan Ladakh- Xinjiang to boost Afghan economy
Joint Security corps in Afghanistan to prevent cross border terrorism.

The stability of Afghanistan is in the interest of both China and India, but their perspective to
measure the gravity of the matter and the solution differ fundamentally. China and India can
complement each other, as one as economic power and other as icon of good will in Afghanistan,
to reconstruct Afghanistan for better future.
~240
words.
Ref: based on the EPW article India, China and Coming US drawdown in Afghanistan, April
5,
2013..
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-Modi, Rajtanil
Budget] Advance Pricing Agreement, Arms Length, Vodafone Transfer Pricing, DTC,
GAAR, Advance Tax ruling explained

Economy4 months Ago399 Comments

For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. Capital Gains Tax (CGT)
1. CGT & Withholding norms (TDS)
2. Vodafone CGT
3. IT Act 1961: Clarification (2012)
3. Direct Tax Code (DTC)
1. DTC and Indirect transfers
2. Direct taxes: DTC vs. Budget-2014
4. Tax Avoidance and GAAR
1. What is GAAR?
2. Shome Panel on GAAR
5. What is Transfer Pricing?
1. Vodafone Transfer Pricing Issue
2. Budget 2014: transfer pricing reforms
3. What is Advance Pricing Agreement?
4. Roll back provision
6. What is Arms Length Price?
7. Advance ruling
1. Authority for Advance Ruling (AAR)
2. Other Tax reform bodies under Budget 2014
8. Appendix
1. A1: CGT: Short term vs Long term
2. A2: What happened to Vodafone case?
Prologue
Sidenote: Madhya Pradesh MPPSC prelim hallticket uploaded click me.
After Budget 2014, six terms in news:
1.
2.
3.
4.
5.
6.

Transfer Pricing
Advanced Pricing agreements (APA), roll back provision
Arms length price
Advance Tax Ruling
Direct tax code
GAAR, Shome Panel

All of them aim to reduce tax litigation, have direct-indirect connection with Vodafone case. So
lets refresh those old concepts.
What is Capital Gains Tax (CGT)?

is a direct tax
Levied on profit, when you sell capital assets (shares, gold etc)
Matter falls under IT department, because its a direct tax.

Capital gains Tax Application:

applies to
doesnt apply to
1. shares, bonds, Mutual fund etc. financial
assets
2. land, house, office, building, factory,
1. Agricultural land
machinery
2. Personal articles such as furniture,
3. gold, diamond, jewelry, precious stones
cloths, belt, shoes, wallet etc.
and metals.
4. archaeological collection, drawings,
paintings, sculptures etc.

More given in the appendix, about short term vs long term CGT.
CGT & Withholding norms (TDS)

Assume Kishor Biyani wants to sell Pantaloon company to Kumar Mangalam Birla at
profit of 1000 crore and has to pay 100 crore CGT to income tax department.
In real life, seller (Kishor) himself doesnt need to pay 100 Crore CGT to Government.
Buyer (Birla) will have to keep aside 100 crore for government, and pay only 1000100=900 crores to Biyani. Observe following photo

This is called withholding norms or Tax deduction at source (TDS).

Question: If income tax department doesnt get the tax, then whom should they send noticeBuyer or Seller?
Ans. Buyer. Birla in Pantaloon deal and Vodafone in Hutch deal.
Vodafone CGT

Hutchison (Hongkong) own a company called CGP investment Holding ltd, (Cayman
Island)
CGP owns 67% shares of Hutch-Essar India.
Vodafone (HQ London), tells its subsidiary in Netherland, to purchase Cayman Island
Company from Hutch (Hongkong) for the price of 11 billion dollars (~55k crore rupee
that time)
Now Vodafone owns CGP, therefore, and thus indirectly owns Hutch-Essar India also.
Because CGP owned 67% shares of Hutch Essar India.

Ok so whats happening?

A buyer (Vodafone) has (indirectly) purchased shares (of an Indian company) from a
seller (Hutch).
So, does Buyer (Vodafone) have to pay Capital Gains Tax, in India?

CGT applies or not?

Vodafones version
Income Tax Department says
Weve
not
purchased
CGP is a post box company in a tax haven. It doesnt
Hutch
Essar,
we
produce any mobile phones or desi-liquor bottles,

purchased CGP.
CGP is not an Indian
company, so you cannot
demand any tax from us.

then why have you given 55k crores for it?

Obviously, to control those 67% shares in HutchEssar India!
therefore, CGPs valuation is based on an Indian
asset (shares of Hutch-Essar)
Therefore, we can, and we will demand capital gains
tax.

Matter goes to Income tax Appellate tribunal (ITAT) and then to court:
Taarikh Pe Taarikh
Year court judgment
Bombay Highcourt says government right, Vodafone wrong.
2010
orders Vodafone to pay the taxes

2012

Supreme Court says government wrong, Vodafone right.

Under the current Income Tax act 1961, Income tax Department has NO
jurisdiction in this matter, when companies trading assets outside India (CGP ltd in
Cayman Islands).

Then Finance Minister Pranab doesnt like it. Not one bit. So, he issues a clarification in IT act.
IT Act 1961: Clarification (2012)

We can demand Capital gains Tax, when a foreign company is sold. IF that foreign
companys value is derived from Indian Assets. (e.g. CGP valued at 55k crore, because it
owned HutchEssar Indias shares).
Then, for tax purpose, well consider them Indian companies, and demand capital gains
tax.
This provision will apply to all deals from 1962 onwards (hence called Retrospective.)

So, even after winning case in Supreme court, Vodafone trouble did not end.
Income tax department again sends notice for the same Capital gains tax.
Direct Tax Code (DTC)
Direct Tax Code aims to replace the Income Tax Act of 1961

Timeline of Direct Tax Code

DTC Bill introduced. Sent to Parliaments standing Committee on Finance.
2010
Committee proposed changed.
2014,
Chindu uploads revised (draft) Direct Tax Code 2013 on Finance ministry website, to
March
seek juntaas opinion on it.
2014, May Direct Tax bill lapses with THE END of 15th Lok Sabha.
Then, should we prepare DTC for exams?
Yes, because
1. Economic survey 2013: recommended implementing DTC.
2. Budget 2014: Jaitley said well implement DTC, after reviewing juntaas comments and
consulting with experts.
DTC and Indirect transfers
DTC aims to fix discrepancies in Income Tax Act, so that Vodafone like cases, do not happen
again. Under DTC:

Indirect (asset) transfers will be taxed in India, IF the companies involved, have at least
50 percent of their assets located in India.
For example, Vodafone bought CGP investment ltd for ~55k crore rupees, because CGP
owned 67% shares of Hutch-Essar India.
Therefore, income tax department can demand Capital gains tax from Vodafone. (recall:
Buyer pays CGT)

Limitation: what if they create three separate post box companies each owning 30-30-30%!
DTC also provided tax on software Royalties (with respect to that Nokia case click me)
Direct taxes: DTC vs. Budget-2014
Comparision: Budget provisions vs DTC proposals
taxable income
Budget 2014
10
2.5 lakh to 5 lakh
20
>5 lakh-upto 10 lakh
30
>10 lakh

>10 crore

dividend >1 crore

DTC proposed
2 lakh to 5 lakh slab: 10%
20%
30%
35%
additional 10%

Wealth tax on both:

1% Wealth Tax,For assets Yes, but only
physical assets.
above 30 lakhs

on

1. physical assets (gold, real estate

etc)
2. financial assets (shares, bonds,
MF etc)

DTC also provide plus higher slabs to senior citizens, and many other technical reforms.
More on budget 2014s direct-indirect taxes in separate articles. So far weve learned;
what is CGT, How Vodafone avoided CGT, Whats the provisions in DTC to prevent
such cases in future?

Moving to next topic

Tax Avoidance and GAAR
Whats the difference?
Tax Evasion
Tax Avoidance
Income, sell-purchase is hidden from tax all deals open- mentioned in their account books and
authorities.
shareholder meetings.
Example: builder sells a property for 10
Example: this Vodafone case. They purchased an
lakh, but accept only 1 lakh via cheque,
Indian company (Hutch-Essar) via purchasing an
remaining 9 lakh via cash. (to evade stamp
intermediary company (CGP) in a tax haven.
duty).
Income tax Act has grey areas, loopholes for
this.
Income tax act already has clear cut
Recall Supreme court ruled in favor of
penalties for this.
Vodafone because matter outside IT depts
jurisdiction.

Vodafone isnt the only company that has avoided tax.

More cases of (alleged) Tax Avoidance
MNC giant
Bought Indian Company Via intermediary in
Vodafone
Hutch Essay
Cayman Island
Sanofi Aventis Shantha biotech
French
General Electric GenPact India.
Luxemburg
Vedanta
Sesa Goa
Cyprus

Like ^this, MNC giants have avoided ~40,000 crore rupees of capital gains Tax from
India. This money could have been used for financing fiscal deficit, inflation control, and
Sarkaari schemes!
Therefore, Government decided to make new rules to stop this menace.

And, thus we come to next topic:

What is GAAR?

General Anti Avoidance Rules.

Originally mentioned in Budget 2012. They were to be implemented from 1/4/2014.
IT commissioner take action against business deal made outside India, to avoid taxes.
He can send notice to Indian Citizen, NRI, Foreigners, to recover such money:
o Even if theyre living outside India.
o Even for retrospective deals i.e. deals happened before GAAR was implemented
o Even if deals protected under any Double taxation avoidance agreement treaty.
Burden of proof lies with the party and not IT commissioner i.e. Company has to explain
their deal is genuine.
IT commissioner has to decide the case within 12 months. Aggrieved party can approach
Dispute resolution Panel (DRP) => Income Tax Appellate Tribunal (ITAT) => HC and
finally Supreme Court.
GAAR not a completely new invention. China, Australia, Canada, New Zealand,
Germany, France, S.America etc already have similar concepts.

Obviously MNCs wouldnt like it. Not one bit. They lobbied hard, finally government setup a
panel under Parthsarthi Shome Panel to review the GAAR rules.
Shome Panel on GAAR
Recommended following:
1. IT commissioner should send notices only in rare cases- where he can recover more than
3 crore rupees.
2. GAAR should not be used for filling revenue shortfalls. Revenue shortfall occurs when
governments revenue collection is less than expected because of inflation, policy
paralysis, global slowdown etc. So in such cases, GAAR should not be used for
extracting more money from corporates to finance Bogus Sarkaari schemes.
3. For retrospective cases- only recover tax dues. Dont demand additional penalty and
interest rate on such retrospective cases.

4. Exempt the buying/selling of company shares from Capital gains tax. Better just increase
the Securities Transaction Tax (STT) on buying/selling of such shares. Then, there is no
litigation about CGT evasion via post box company. Problem permanently solved.
5. Dont implement GAAR from 2014. Implement it from April 2016.
For more GAAR features, pro and anti arguments click me

What would General Dong (Amrish Puri) sing for this gentleman?
What happened after Shome?
Budget 2013 Chindu says well implement GAAR from 1/4/2016
Chindu says following

Sept 2013

GAAR notices only for deals after 31st august 2010

GAAR notices, only if benefit more than 3 crores.
GAAR will be effective from 1st April 2015
IT officials will have to first send show cause notice and person will be
given opportunity to present his side.

Budget 2014
Nirmala
Sitharaman

Jaitley silent on GAAR

Minister of State for Finance.
After budget, she replied in parliament, GAAR will be applicable from
1st April 2015.
Investors get scared, BSE-SENSEX collapses by ~350 points.

Shaktikanta
Das

Revenue Secretary
To calm down the market, he said please donot interpreted that GAAR
will be implemented from 1st April 2015. New government yet to look at
the issue in detail!

So far, we learned
1. CGT, Vodafone Hutch deal.
2. DTC, GAAR to prevent Vodafone like cases in future.
Now next two topics: Transfer pricing and advance ruling. These are also in context of Vodafone
What is Transfer Pricing?
Recall the original concept of CGT & TDS:

When a capital asset (shares) are transferred from seller (Kishor Biyani) to Buyer
(K.M.Birla) => then Buyer has to withhold / deduct the capital gains tax for government.
Biyani and Birla are two unique businessmen / promoters. So, when share transferred
from one person to another, we can hope the share price are decided by market forces of
supply, demand and speculation.
BUT WHAT IF two subsidiary companies transfer shares to each other, and play
mischief.

Vodafone Transfer Pricing Issue

Vodafone London has two subsidiaries:
1. Mauritius: Vodafone Teleservices India Holding Mauritius.
2. India: (Call center) Vodafone India Services (VISPL)

Two version
What Vodafone says?

What IT Dept. says

Real Market price of those shares = ~1550
crores.
Vodafones Indian arm deliberately sold its
shares at a lower price of ~250 cr.
(undervaluation of ~1300 crore.)
2008: Indian arm sells its shares to
This is one type of hidden loan or secret profit
Mauritius for ~Rs. 250 crores
transfer from Indian arm to Mauritius arm.
Mauritius arm says we bought
HOW? Well Mauritius arm could sell those
shares to infuse new capital in the
shares again to a third party at market price
Indian arm.
and make profit.
So in a way, Mauritius will make GAINS
(in future), and we want capital GAINS Tax
on it!
Thus CGT + penalty + interest = ~Rs.3700
demanded.

In short,
1. Vodafone transferred its call centre shares from India to Mauritius at an undervalued
price
2. this was one type of hidden loan / secret transfer of profit.
3. IT dept wants capital gains tax on this.
Thats the Vodafone Transfer Pricing issue. Case pending in Income Tax Appellate Tribunal
(ITAT).
Shell India, also caught in similar controversy.
Budget 2014: transfer pricing reforms
Jaitley made new reforms in Budget 2014, to reduce the transfer pricing related litigations, and
enhance MNC confidence to invest in India.
What is Advance Pricing Agreement?
Advance pricing agreement (APA) is an agreement between:
1. Tax payer (Vodafone)
2. Tax authority (IT department)
For deciding transfer price OR arms length price in advance.
For example:

Vodafone CEO

Hello IT commissioner sir, I wish to transfer ___ no. of shares of Indian

call centre to Mauritius arm @___ Rs. per share on ___ date.
Weve decided this transfer price, by taking arithmetic mean of share
prices at BSE for last one year.
So, are you OK with this pricing (and the consequent tax)?

IT
Yes, but Only if __ bottles of desi liquor are provided to our staff.
Commissioner
But Im a foreigner, I do not know any local dens! I can get you finest Vodka,
Vodafone CEO
Cognac and Champaign!
IT
Thats not my problem. We only prefer Swadeshi. IF you want to operate in
commissioner India, then you have to respect our culture (GS1) and tradition.
Enough cheap jokes back to topic:

APA concept introduced in Income Tax Act from 2012.

Ok then what is Jaitleys innovation in 2014?

Roll back provision

Means, If Vodafone and IT Dept. sign an APA agreement right now, its (share pricing)
methodology can be applied for solving pending cases upto last four years.
APA: Rollback
before
after budget 2014
Only previous one years data Jailed permitted use of multi-year data for better comparative
could be used for deciding the analysis. (so that pending litigations upto last 4 years can be
price.
decided)
on a related topic:
What is Arms Length Price?

Arms length price, is the price at which two unrelated parties will make a deal. (Say
Kishor selling shares to Birla at 1000 crores).
Since these two parties are unrelated, hence market forces of supply-demand will work,
the (share) price will be rational.
So, government will get the full tax it deserves.

BUT

When MNC giants one subsidiary company makes deal with another subsidiary
company- theyre related with each other (because main boss is the MNC).
In this case, deal pricing may not be rational.
Government may not get full tax it deserves.

Therefore, government wants to ensure that following two prices are same. For example:
Inter-company price / Transfer price
Arms length price
when Vodafones Mauritius arm sells its Indian call Price at which Kishore would trade his
centre shares to Vodafones Netherlands arm
Vodafone callcentre shares with Birla?
Lets try a Mains questions:
Q. Discuss advance pricing agreements, and their role in promoting foreign investment in
India. (200 words)

1. When two subsidiary companies of the same MNC giant, make a deal, there are chances
of price manipulation to reduce tax liability, as it allegedly happened when Vodafones
Indian arm transferred the shares to Mauritius arm. Resulting into a lengthy litigation
between Vodafone and Income tax department of India.
2. 2012: Government provided for advance pricing agreement in Income tax Act.
3. APA is an agreement between tax payers and tax authorities.
4. It validates the transfer pricing between two interrelated companies and ensures that it is
equivalent to an arms length price.
5. 2014: Government further reformed APA system, to provide roll back in APA
agreements. Now APA agreements can sort out pending litigations up to past four years
using multi-year data analysis for share pricing.
6. Thus, APA is a win-win situation for both parties- tax authorities get their legitimate dues
and companies become immune to future litigations. This clarity and continuity in tax
policies will aid in bringing more foreign investment in India.
(~170 words)
Advance Tax ruling

Jaitley also discussed this in budget-2014.

This topic not directly related to Vodafone.
But its easy to make silly mistakes between APA vs advance ruling. so lets check it out:

What is Advance Tax Ruling?

Suppose a foreign company enters India via Joint Venture / Subsidiary / etc.
But India has a complex tax structure, the foreign company may need clarification in
advance, on the Taxes that may apply to its business.

To help foreign companies, Government setup a body called.

Authority for Advance Ruling (AAR)

Its a statutory body Under IT Act. Started from 1993.

composition: Retired SC judge and two government officials (of Addl.Secretary rank)
Foreign company can file application to AAR, to seek clarification on its tax
liabilities.(Fees: 2500 rupees.)
Timeframe: AAR has to reply within 6 months.
AAR ruling binding on both company (Tax payer) and Income tax department. IT
officials cannot send notices/raids if AAR already rules in advance that xyz matter is
exempted. (Although IT officials can approach HC and SC to challange AAR rulings)

Thus, AAR provides clarity on tax structure in India. Promotes Ease of Doing business.
Speedy decisions, Avoids lengthy court litigations.

Ok then whats new?

Reform: Advance Ruling
BEFORE
After budget 2014
only (nonresident) Foreign companies could approach AAR to Even Indian companies can
seek coaching clarification.
approach AAR.
Other Tax reform bodies under Budget 2014
Committee 4 Tax clarity
High level Committee under CBDT
High Level Committee to interact with
trade and industry on a regular basis.
to find out which tax laws require further
before IT officials launch any fresh
clarification.
cases for retrospective tax demands,
Based on the recommendations of the
theyll have to seek permission from
Committee, CBDT and CBEC shall issue
this Committee.
appropriate clarifications. Timeframe:
within 2 months.

Apart from this, Economic Survey and Jaitley mentioned many bodies such as
productivity commission, Expenditure Management commission etc. But well see them
in future articles because theyre not directly related with tax litigations like Vodafone.
More than 4 lakh crore worth tax money cases stuck in litigations. In this article, my
purpose was to cover the bodies/reform thatll aid in that regard.

Appendix
Some side topics:
A1: CGT: Short term vs Long term
How much CGT do you have to pay? That depends on Duration.
condition
CGT rate
Suppose I bought a gold-bar, diamond, house, Picassos
Short term capital gains tax.
painting or DEBT-mutual fund today, and sell It in less than
it is added to your income
three years (with profit)
So then tax depending on

income tax slab (10, 20,

30%)
same case, but I sell after three years (with profit)

Long term capital gains tax (20%)

Meaning, two CGT rates depend on duration for which, you own the asset.
But there is slight change, if you buy/sell shares and (Equity) mutual funds:

SHORT TERM LONG TERM

within 1 year
after 1 year
CGT: 15%
exempted
Side note:

Equity mutual funds: people pool their money, and mutual fund manager invests it in
shares.
Debt mutual funds: people poor their money, and mutual fund manager invests it in
bonds.

Q. Does 3% education cess apply?

Yes education cess applies.
A2: What happened to Vodafone case?
So far Vodafone is caught up in two cases
Hutch Essar CGT
Transfer pricing of call centre
Government
demanding
~20k
crore
in
Government
demanding
CGT+interest+ penalty
~3700 crore rupees
SC ruled in favor of Vodafone but Government
In Dec 2013, ITAT gave stay
brought clarification in IT act, to give retrospective
order for six months.
notice.

Chindu

In August 2013, Chindu offered Conciliation (e.g no need to pay 20k crore, just pay
___ crore in ___ installments, and IT dept will free you from this case.)
Initially Vodafone agreed, but then demanded conciliation Discount for both Hutch
case + call centre transfer pricing case.

we can give you discount for Hutch case (because SC in your favor),

But in the transfer pricing case well not give you any discount, because
youre completely at fault.

Vodafone Then I want both dispute to be settled outside India, under UNICITRAL law.
Chindu Sorry, cant accept. (thus, conciliation talks collapsed)
Then I want this dispute be handled under India-Netherlands Bilateral Investment
Vodafone
Protection and Promotion Agreement. (BIPA)
That agreement will not protect you on that call centre case. Youve deliberately
Chindu
undervalued share prices.
Vodafone Only time will tell.

April 2014: Vodafone Sends notice to government in April, 2014, wanting the case
handled by an International arbitrator at London, as per the provisions of Netherland
BIPA.
June 2014: Government appointed former Chief Justice of India R. C. Lahoti as
arbitrator. Hell look only at Hutch CGT case. And NOT at the call centre transfer pricing
(Because that matter still pending.)

Ill set Mock MCQS later. My first priority is to cover the Content of budget + economic
Survey.
Tags: shivaram
[Architecture] Buddhist Rock Cut Caves, Tantric Satvahana kings and Buddhist Cholas
History5 months Ago126 Comments
For Indian History, I recommend
Spectrum- Rajiv Ahir

1. Types of Buddist Buildings

2. H1: Buddhist Rock cut caves
1. Karle Caves, Pune
2. Kanheri, Mumbai
3. Bhaja, Pune
4. Pandavleni, Nasik
3. H2: Chola patronized Buddhism too!
4. H3: Tantric Worshipper Satvahan Kings
5. H4: Satvahan Architecture
6. H5: Sculpture @Sarnath

7. CSAT Sample MCQs

8. Answers to mock MCQs
Buddhist Buildings
Rock cut caves
Ajanta, Kanheri, Karle etc.in Maharashtra (more details under next topic)
Viharas
Residential quarters for Monks.
Satvahan renovated Amaravati Stupa.
Amaravati Stupa is largest in South India. Marbles used instead of
Stupas
bricks and stones. its Inner side has engraving of Buddhas life.
This is the word used for
Chaityas
Chaityagriha

Sangharamas

or

Temple
Worship place
assembly halls with a stupa (scroll down and see the photo of Karle
caves, and youll understand)

Buddhist monastery and school.

H1: Buddhist Rock cut caves

Q. Write a note on the Satvahana Rock cut caves (200 words) OR
Q. Write a short note on Buddhist Rock cut caves in India (200 words)
Note: there are many Buddhist caves, Im listed only a few good & easy to remember caves
associated with Satvahan that way it can be fit into both type of questions.
Satvahana kings were Hindus but patronized Buddhism as well & built Buddhist rock cut caves
in Western India, particularly the Pune-Nasik-Mumbai region.
Karle Caves, Pune

Largest Chaitya-griha among all Buddhist monuments in India

Has a huge lion pillars in front of Chaitya-griha. (only two caves have this design- Karla
and Kanheri)
stupa has cylindrical drum shape
Octagone shaped pillars behind Stupa, without any decoration

Kanheri, Mumbai

Second largest Chaityagriha in India, after Karle caves.

Lion Pillars at the Entrance. (Just like Karle caves)
Podhis: water cisterns for rainwater harvesting
Images of both Standing Buddha and sitting Buddha flanked by Bodhisattvas
Famous Satvahan king Gautamiputra Satakarnis name mentioned in the inscriptions
here.
Vihara for resting monks with rock cut seats and benches.

Bhaja, Pune

Hinayana faith
has Wooden ceiling over Chaitya-griha.
Stupa has a hole on top, for inserting wooden umbrella.
Verandaha has wooden reliefs showing royal women driving chariots over a demon.

Pandavleni, Nasik

Also known as Pandavas caves

Inscriptions mention King Gautamiputra Satakarnis mother Gautami Balasri had
financed the construction of third cave.
Contains a panel depicting Buddhas Mahaparinirvana

Ajanta, Aurangabad

Carved on a Horse shoe shaped rock pillar

Paintings depict Jataka stories.
Cave no. 9 and 10 attributed to Satvahan Kings
Hieun Tsang did not visit them but mentioned in his journal.

~208 words.
Satvahana Dynasty: sidenotes / GK

Puranic literature calls them Andhra-jati.

Greek Ambassador Megasthenes book Indica says- Satvahan had a might army and 30
forts.
Ptolemys book also mentions Satvahan ports in Deccan.
Satvahan coins have ship images, showing their maritime prowess.
In Satvahan sites, we find coins of Roman king Tiberius. Meaning Satvahan traded with
Romans.
Founder king: Simuka
Most famous King: Gautamiputra Satakarni, he defeated following armies (or at least
bragged so in his facebook profile).

English Indian name

Scythian Saka (Rudradaman 1 was main king)
Greek Yavan
Parthian Pallav

He did not consider women inferior to man. Infact he calls himself son of Gautami
Balasri (similar to Sanjay Leela Bhansali)
Notable cities: Capital Amaravati (Guntur district), Paithan (Aurungabad district),
Vaijayanthi (N.Kanara)
Satvahana kings enforced 4 fold caste system. They were Brahmins and hated Kshatriyas,
because they considered Saka, Yavan and Pallav as degraded Kshatriya clans. (Ref.
RC Majmudars book)
Fall of empire: Successors of Gautamiputra Satakarni were weak. So, the Abihar and
Vakatak kings took away their territories, just like SP and BSP took away Uttar Pradesh
from Congress.

H2: Chola patronized Buddhism too!

Context: Article in Frontline May 2014, Issue #10

Why important? UPSC examiners fondness for asking questions related to Buddhism
and Jainism, whether its CSAT, CAPF or CDS.

copper plates

Since 1st Century AD, South Indian kings had been using Copper plates to preserve their
charters, genealogy and other official records.
Some of these copper plates are preserved in Leiden University of Netherlands, hence
called Leiden plates.

Who were Sailendra Kings?

These Mahayan Buddhist kings ruled over the straits of Java, Sumatra, Bali, Cambodia
and Malaya. They had good relations with Pala (Bengal) and Chola (Tamilnadu).
They had constructed a Buddhist Vihara at Nagapattinam, Tamilnadu. (area under Chola
control)
Name of this Vihara: Chulamanivarmavihara. [all these details given in both Frontline
as well as Tamilnadu Class11, Page 84].

Chola Copper plates:

King Rajaraja Chola 1 had issued a Charter to provide money to this Vihara (recorded in
copper plates, language: Tamil and Sanskrit.)
Accordingly, taxes from 26 villages, were given to this Buddhist Vihara. These taxes
included, tax on water, marriage, grazing, textile, pottery etc.

Conditions on Vihara
For this tax sharing, Rajaraja laid following conditions on the Vihara administrators:
1. Will have to work on canals, wells and irrigation of those villages.
2. Will have to plant trees, groves & other civic amnesties
This charter is unique because:

Historians believed that Chola kings patronized only Shaivism, Because of the Shivatemples they constructed around Thanjavur.
But this charter proves Chola kings had tolerance towards other religions as well.

H3: Tantric Worshipper Satvahan Kings

Emperor Ashok (Buddhist) controlled Satvahan kings (Brahmin).

Satvahan Kings ruled Kondapur region between 3rd BCE to 3rd CE (Andhra Pradesh)
Archaeological Survey of India (ASI) gathered new evidences, which shows Satvahan
kings were followers of Tantric cult.

ASIs Kondapur excavations

ASI, 2009-11

ASI, 2014
Found images of Lajja Gowri the Fertility Goddess
Found Stupa & other
for Tantric worshippers. Meaning Satvahan kings
Buddhist structures
followed Tantric Cult.
Hence
believed
Alters & animal bones. Meaning Satvahan kings
Kondapur is a Buddhist
scarified animals to seek male child.

site.

Kaolin (lime+clay) image of a Brahmin priest embracing

the king

H4: Satvahan Architecture

They patronized both Hinduism & (Mahayan) Buddhism. Now, ASI confirms they also
patronized Tantricism as well.
Patronized both Prakrit and Sanskrit Literature. King Hala himself wrote a Prakrit poem
book Sattasai.
ok but if Satvahan kings were Brahmins, then why did they patronize Buddhism and
Prakrit?

1. Political Expediency: After all, they were under control of Buddhist Emperor Ashok!
2. Because they were secular.
Anyways, Satvahan kings constructed all types of Buddhist monuments in Andhra and
Maharashtra region.
H5: Sculpture @Sarnath

Sarnath= Varansi, UP.

Other names: Rishipatna and Mrigdava or Mrigadaya.
Lord Buddha gave his first semon here.
11th Tirthankar died here, hence the place is sacred for Jains as well
Sarnath reached zenith during Gupta period (4 to 6th AD)

Foreign travellers to Sarnath

Fa-Hien
Chandragupta-I
Hiuen Tsang Harshavardhan
Ya, but why in News?

Archaeological Survey of India (ASI) was doing excavation in Feb 2014 and Found
sculptures in Sarnath.
Art form: Gupta art of Sarnath school.
This sculpture depicts the scene of Buddhas descent from Tusita heaven, where he
believed to have given sermon to his mother Mayadevi. From heaven he descended to
Sankassa (modern day city of Sankisa,UP)

CSAT Sample MCQs

WARNING: Donot try these questions without mugging up Tamilnadu Class11 and 12
History textbook (click me for free download).
Otherwise, you might get demoralized for getting too many wrong answers.

Q1. In his rock edicts, Asoka talks about ___.

A.
B.
C.
D.

The effects of Kalinga war but doesnt tell the reasons why he waged that war.
Recommends human treatment only for slaves but not prisoners of heinous crimes.
Both A and B
Neither A nor B

Q2. Which of the following contributed to decline of Buddhism in India

1. Buddhist monks and scholars adopted Sanskrit from 1st AD onwards.
2. Intermarriage among Brahmin and Buddhist royal families.
3. Rise of Shankaracharya
Correct choices
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them

Q3. Who followed Mahayan sect?

1. Harsha
2. Hiuen Tsang
3. Kanishka
Correct choice
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them

Q4. Correct pairs

A. Nalanda University: Mahayana

B. Valabhi University: Hinyana

C. Both A and B
D. Neither A nor B
Q5. Satvahana kings patronized ___.
1.
2.
3.
4.
5.

Prakrit
Sanskrit
Hinduism
Buddhism
Tantricism

Answer choice
A.
B.
C.
D.

only 1 and 4
only 2 and 3
Only 1, 4 and 5
All of them

Q6. From Hiuen Tsangs travelogues, we find that

1. Satvahan kings had a mighty army and 30 forts.
2. Kanshika had banned non-vegetarian food in his kingdom.
3. Under the influence of Buddhism, Harsha has banned the cruel and barbaric punishments
to prisoners.
Answer choices
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q7. Which of the following can be found in a rock cut cave?

1. Vihara
2. Stupa
3. Chaityagriha
Answer choices
a. Only 1 and 2

b. Only 2 and 3
c. Only 1 and 3
d. all of them
Q8. Which of the following contributed to building of Buddhist rock cut caves?
1. Satvahan Kings
2. Chalukya Kings
3. Pallava Kings
Answer choices
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
all of them

Q9. Which of the following cave contains largest Chaitya-griha?

a.
b.
c.
d.

Ajivika
Kenheri
Pandalena
Karle

Q10. Feature of Karle caves?

1. wooden ceiling over Stupa
2. Lion pillars at the entrance
3. Largest Chaitya-griha
Correct statements
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
only 3

Q11. What is/are the historic importance of Karle and Kanheri?

A. Both have mountain passes that connected Deccan plateau to Western ports.
B. Both have Rock cut caves with large Chairya-griha and Lion pillars.
C. Both A and B

D. Neither A nor B
Q12. Correct statements about Nagapattinam Vihara in Tamilnadu
A. It was built by Chola emperor Rajaraja 1
B. Sailendra Kings of Sumatra had made an official charter to pay for the expenses of
running this Vihara.
C. Both A and B
D. Neither A nor B
Mains and interview
1. Write a note on the Satvahan Rock cut caves (200 words)
2. Write a short note on Buddhist Rock cut caves in India (200 words)
Answers to mock MCQs
1. Only A correct. (Tamilnadu History book class 11, page 64.)
2. D- all of them. Statement 1 is right. (ref. Tamilnadu class11, page77). 2 and 3 correct as
per RC Majmudar because intermarriage= Brahmin scholars entered royal courts of
Buddhist kings and preached that Buddha was an incarnation of Vishnu.
Shankaracharyas efforts led to monasteries in Mysore, Dwaraka, Puri and Badrinath.
3. D-All of them. Kanishka actively propagated Mahayana. (TN Class11, Page82). Hiuen
Tsang converted Harsha to Mahayana. (same book, page 115.)
4. C both right. (TN Class11, Page 118)
5. D-All of them.
6. D-None of them. (same TN book, page 115, 116)
7. D-all of them (Read the Buddhist cave topic again).
8. A- 1 and 2 only. Pallava Kings (Mahendravarma et al built Jain cave temples. Ref TN
class 11, Page 124)
9. D-Karle
10. B 2 and 3. Karle = Lion + largest griha
11. C- Both A and B. A statement is right as per TN Class11, Page5. And statement B right,
as we saw this the article.
12. D Both wrong. Sailendra built and Chola shared taxes
Visit Mrunal.org/HISTORY for entire Archive of History-Culture related articles published so
far.
[Elections] EVM Totalizer, VVPAT, Form20, Voter Confidentiality, Ballot Unit, Control
Unit, Auxilliary Display Unit

polity5 months Ago131 Comments

For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
1.
2.
3.
4.
5.

P1: Electronic Voting Machine (EVM): Basics

P2: Voter verifiable paper audit trail (VVPAT)
P3: EVM Totalizer to prevent Voter Victimization?
CSAT Sample MCQs
Correct answers for MCQs

P1: Electronic Voting Machine (EVM): Basics

EVM is madeup of two units
1. Control unit (CU)
o with the presiding officer.
o Its memory lasts for ten years (even without constant electricity supply).
o Its chip as date-time stamping facility to find out when exactly the keys were
pressed.
o Additional unit that can be attached with CU
1. Auxiliary display unit (ADU): to view the data, if the original display
panel of Control Unit gets damaged.
2. EVM totalizer: can be attached to upto 14 Control units
2. Balloting unit (BU)
o one unit has 16 buttons, maximum 4 units can be joined
o means 16 x 4 =64 candidates.
o if >64 candidates then paper ballot system has to be used.
o Additionally, we can attached a VVPAT unit with BU

Components of an Electronic Voting Machine (EVM)

EVM: Other features
1. If one unit malfunctions, no need to re-start polling again. You can join a spare EVM &
resume public from the queue.
2. Programming code is Burnt into the microprocessor chip (P-ROM). This fused
program cannot be overwritten, altered or copied.
3. It has no networking connectivity, so hacking via LAN/wifi is impossible. [American
EVM can be controled through network & remote control.].
4. EVM randomization: noone knows the serial number of EVMs in advance, before theyre
shipped to the booth.
5. Invalid votes impossible because you cannot give vote to more than one candidate for
given election. (in paper-ballot some idiots would put stamp on multiple candidates =
invalid votes.)
6. Same EVM can be simultaneously used for both LokSabha + Vidhansabha elections. (in
such case, youll have to press vote button for two names. and there will be two NOTA
buttons as well. Observe following photo)

Yes, same EVM can be used simultaneously for two elections!

EVM makes Booth capturing difficult because
1. EVM can record maximum five votes per minute. So the Goonda-gang will need 30
minutes to put 150 votes, but within that time, Police party will come.
2. Booth officials can press Close button on control unit, then EVM will not accept any
data. Goonda-gang cannot register any bogus votes.
3. If circuit/memory re-wired, unit will stop functioning.
EVM: Misc. features & GK
Limitations
If more than 64 candidates, then paper-ballot has to be used.

Energy supply

Manufacturer

First usage

Can record maximum 3840 votes.

Can record only 5 votes per minute.
Alkaline battery
Battery leaking not possible
Even if battery malfunctions, memory storage wont be affected.
Bharat Electronics Ltd., Bangalore
Electronic Corporation of India Ltd., Hyderabad
1982: Keralas Parur assembly bye-elections
1998: State assembly elections of MP, Rajasthan and Delhi
Also used by Bhutan and Nepal

Blind voters have three options:

1. Cast vote with help of companion (applies to all physical disabled- their companion can
come all the way to voting box)
2. Balloting unit itself has stickers in Braille language. (done in Maharashtra, Punjab,
Kerala etc.)
3. Presiding Officer gives Braille encoded dummy ballot paper to blind voter. Voter finds
the serial number of his preferred candidates. Then goes to hut, presses button on EVM
P2: Voter verifiable paper audit trail (VVPAT)

Features of VVPAT

When voter presses EVM button, printer generates a paper slip

This paper slip contains
o serial number of voter
o name and symbol of the candidate for whom the vote has been cast.
paper slip will remain visible to the voter for seven seconds, through a glass-covered
window.
Then itll automatically fall in a sealed box.
Later EC can use these slips for crosschecking / physical verification of votes during
recounting.

but why do we need it?

Some parties allege that EVM machines can be manipulated.

VVPAT is developed to clear an air over authenticity of the EVMs (Electronic Voting
Machine).
Helps physical verification /crosschecking votes.
Will help to resolve the election disputes.

Timeline

2013: SC ordered EC to introduce VVPAT in phased manner in 2014 general election.

2013, Sep: VVPAT first tried in Noksen constituency in Nagaland

P3: EVM Totalizar: Form 20 vs Voter confidentiality

As per India Conduct of Election rules
Form
under
Provision
No.
Rule#
When EVM did not have NOTA option, and If voter wanted to
exercise NOTA, he had to fill this form.
17(A)
This form would contain his name and signature= voter 49-O
confidentiality compromised.

20

Form 20, is the final result sheet. It shows polling station-wise

results.
This will also compromise voter confidentiality.
56/C/2/C
observe following screenshot of form-20 for Junagadh parliamentary
Constituency, LokSabha election 2014

How does Form-20 compromise Voter confidentiality?

Form 20 is given to the polling agents of candidates.

Form 20 also uploaded on the official EC-sites of given state. (in this case,
ceo.gujarat.gov.in)
Banej polling booth, Gir forest (Junagadh constituency)= only single voter Mahant
Bharatdas Darshandas.
It is obvious Mahant voted for BJP. Form 20 has exposed his secret vote.
Now, Congressi-karyakartaa may vandalize Mahants house, property and may even
break his expensive sun-glasses to take revenge.
In other words, if a single person votes in EVM then his secrecy will be compromised
because of form-20.
In the same photo, observe that Sr.No.2 Biliyat village didnt give a single vote to
Congressi candidate Punjabhai Bhimabhai Vansh.
So, it is possible to find out which polling station/village/hamlet was in favor of which
candidate.
Then politicians/ goons / feudal lords might harass the villagers accordingly.

in short, Form20 + EVM=> post electoral voter victimization possible.

In paper-ballot system, this was difficult. Because during counting, the officials will randomly
mix the ballot papers to conceal the voting preference of individual polling stations.
But how can EVM Totalizer help?

EVM Totalizer can count votes of multiple Electronic Voting Machines (EVMs)
simultaneously.
That way EC official will only record total votes in all EVMs, and not individual EVM
from each polling booth
EVM Totalizers prototype ready. EC even tested it in UP bypoll (2009).
Manufacturers:
o Bharat Electronic ltd
o Electronics corporation of India
EVM totalizer is connected to EVMs via cable. Can do sum of all votes from 14 EVM
simultaneously.

Why EVM Totalizer not implemented?

To use EVM totalizer, we need to change format of Form-20

but Form-20 format designed as per Rule 56/C/2/C of Conduct of Elections Rules,
1961
but Conduct of Elections Rules, 1961 designed as per Representation of People Act
(RPA) 1951.
Therefore, to adopt nationwide EVM totalizer system, we need to amend RPA Act.

CSAT Sample MCQs

Q1. Consider following statements about EVM
1. To discourage booth capturing, the EVMs are designed in such way that one EVM can
record only 1 vote per two minutes.
2. When you press blue button, your vote is stored at two places- one in the balloting unit
and second backup in the control unit.
3. EVM control unit needs constant electricity supply from a built in battery otherwise its
memory will be wiped out.
The correct statements are:
A. Only 1 and 2
B. Only 2 and 3

C. Only 1 and 3
D. None of them
Q2. Which of the following is/are incorrect methods of assembling an EVM?
1. Attach VVPAT attached to control unit
2. Attach auxiliary display unit to control unit
3. Attach EVM totalizer to balloting units
Answer choices
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
all of them

Q3. Which of the following are essential components of an EVM, without which process of
voting and counting is impossible?
1.
2.
3.
4.
5.

Balloting unit
VVPAT
Control unit
EVM totalizer
Auxiliary display unit

Correct choices are

a.
b.
c.
d.
e.

only 1, 2 and 3
only 1 and 3
only 1, 3 and 5
only 1, 2, 3 and 4
all of them

Q4. Consider following statements about EVM

1. In emergency, EVMs can be run on the lead-battery used in sarkaari-jeeps.
2. EVMs can record a maximum of 6400 votes.
3. Single Balloting unit can cater to a maximum of 64 candidates.
Correct statements are
A. Only 1 and 2

B. Only 2 and 3
C. Only 1 and 3
D. None of them
Q5. What is the use of form 20 in the elections?
A. earlier, to use NOTA, you had to fillup this form
B. Police and defense personnel use this form to cast postal ballot
C. To file nomination, the candidate has to fillup his income, assets, criminal cases etc. as
per the format given in this form.
D. EC will show polling station wise result according to this form.
Q6. Following are imaginary headlines in a newspaper. Which one of them will get the
CEC nervous?
a. A Banglore techie-blogger claims he can overwrite the code in EVM circuit via wifi to
make it record 6000 votes in a minute.
b. Sadhu Yadav asked 70 of his goons to file nominations along with him in the same
Constituency. IB report says he also has plans for booth capturing.
c. Sadhu Yadav has hired the techie mentioned in option A, and is planning for booth
hacking through OB van of a media channel.
d. None of the above.
Correct answers for MCQs
1. D none of them correct
2. C 1 and 3 are wrong connections
3. Only 1 and 3- balloting unit and control unit without them voting impossible. Even if
other instruments are absent, still you can conduct elections and count votes.
4. D none of them
5. D- polling station wise result
6. B- more than 64 candidates = paper balloting. And booth capturing is easier in paper
ballot system compared to EVM, hence it should give highest stress to CEC. Option A
and C are junk because EVM cannot be hacked via wifi to record more than 3840 votes
irrespective of what Banglore techie brags.
Mains and Interview Questions

Mains: What is EVM totalizer? How can it prevent the post-electoral voter victimization?
200 words.

Interview: First VVPAT and now the columnists are demanding EVM totalizer. Cant we
simply do addition via EXCEL spreadsheet? Whats the need of one more stupid
machine?

Tags: Elections, Rajtanil

USA] FATCA: Foreign Account Tax Compliance Act- salient features, implications on
India
Diplomacy5 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. D1: FATCA Treaty India US
2. D2: US-Work permit for H1B Visa Spouses
D1: FATCA Treaty India US
(GS2/GS3-money laundering) Discuss in brief, the salient features and benefits of Indo-US
FATCA agreement (200 words)

2010: American Congress enacted Foreign Account Tax compliance Act (FATCA) to
keep a tab on American citizens and companies investing abroad to evade taxes.
To implement this Act, US Government signs inter-governmental agreement (IGA) with
the other countries, to get information about American investors.
2014, April: India and USA signed an FATCA-IGA agreement.

Features
1. Will come in effect from 1st July 2014.
2. All Indian Financial intermediaries (Banks, mutual funds, insurance cos etc.) will have to
keep record of American investors- not just US citizens but even US green card holders
and US residents.
3. These American investors will be classified in three categories:
Categories in FATCA
ACCOUNT WITH FEATURE
Less than $50,000 Exempted from reporting
Between $50,000- $1 India will share their information to USAs IRS (internal revenue service)
through CBDT (Central Board of Direct Taxes).
million

Above $1 million

Exempted: Accounts of US government entities, US Federal reserve and retirement

funds.

For Noncompliance, Indian FI will have to pay 30% of the withholding tax to USA.

~170 words

What is US FATCA Act?

FATCA: Side notes
FATCA agreements have to models
MODEL1
MODEL2
Desi Financial institutions (banks, Mutual funds etc) will sent Desi FI will directly send info
report to their Government (CBDT)=> matter forwarded to=> to
American
IRS
tax
American IRS
department
India has signed this type of agreement with USA

D8: USA: Work permit to H1B Spouses

(Interview Q.) What is H1B Visa? How is it different from Green card? Why has USA
planning
to
give
work
permit
to
spouses
of
H1B?
What is H1B visa?

Non-immigrant visa Granted to skilled professionals

Employer must be American
Specialty occupation, related to field of study (graduation).
Minimum wages according to US laws.

How is it different from Green Card?

Green card holder = permanent RESIDENT of USA. (Not Citizen.) He can apply for
Citizenship.
Indian Professionals usually have following dream: H1B visa => Green Card =>
Permanent citizenship.
But the lust for H1B declined in the recent times because:
o Too long waiting period before green card (Because there are specific quotas.)
o Subprime crisis => Salaries down, even jobs lost.
And their spouses face problem another problem.
o They dont get H1B visa. Unless they get degree related job from American
employer.
o They get H4 Visa. With H4 visa you can get driving license and bank account but
not work permit in USA.
o In most cases, Indian-Chinese-Philippines Husband has H1B visa, wife is H4 stay
at home=> social isolation, family tension, money problem, domestic abuse and
suicides.

As a result, International migrant skilled professionals are preferring other countries over USA,
where both husband and wife can get work permits without hassles. Google, Facebook and other
giants demanding reforms in American system.
US Immigration Bill 2013

Aims to fix this problem by granting work permits even to the spouses of such H1B
holders.
That way both husband + wife can work, less money problem, less family tension, can
afford to wait n watch for green card.
Itll help American companies attract & retain highly skilled foreign workers.
Upper house (Senate) passed this bill

But stuck in Lower house (House of Representatives), Republican Party opposed.

So, in the meantime, President Obama aims temporary solution via department of homeland
security. How?
1. @Those already with H1B visa and applied for Green card
2. Their H4 visa spouses can apply to Dept. of Homeland security to get work permit.
Even above rule is not yet implemented. Department of Homeland security only proposed this
rule on website, to seek public comments.
Impact on India?
Obamas
solution

temporary

97,000 H4 visa
spouses.
Many of them
Indian,
theyll
benefit.

US Congresss Immigration reform bill

Itll give work permit to H4 spouses, ONLY if American

spouses are treated in same manner in the said country.
(reciprocity)
Since India doesnt give automatic work permit to spouses of
American migrant workers. So Indians unlikely to benefit,
except if Modi reforms the Indian visa system.

Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-Modi, Rajtanil
[Current]May W2/P1: Environment & Biodiversity: Polavaram Project, Kudankulam
milestone, Turtle vs Tortoise, Dancing frog, Elephant shrew, Dwarf Gecko
Current Affairs Weekly5 months Ago102 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Prologue
2. E1: Polavaram Project
1. Polavaram Project Authority (PPA)
2. Polavaram Ordinance
3. Anti-ordinance arguments
3. E2: Kudankulam: 1000 MW mark

1. Kudankulam nuke plant: SC rejects plea to appoint panel

4. E3: Star Tortoise vs Olive Ridley Turtle
5. E4: [Newfound] Dancing frogs in Western Ghats
1. Dwarf Gecko, Maharashtra
2. Sengi Elephant Shrew, Africa
6. E5: Lake Kolleru & its bird sanctuary
7. E6: Hyacinth: hazard to fishes
8. E7: Jhum cultivation: pros and cons
1. Favor of Jhum cultivation
2. Against Jhum cultivation
9. Mock Questions
10. Answers
Prologue
Current Affairs May 2014, Week2 (8 to 14th)
1.
2.
3.
4.
5.

Environment Biodiversity: youre here

History Culture: coming soon
Polity: coming soon
Economy: coming soon
IR/diplomacy: after prelims. Reason: hardly anything asked from it in prelims.

Questions to consider:
Mains General Studies
1. (GS1) Jhum cultivation, though primitive in methods, is an ancient way of keeping
harmony with nature. Comment (200 words.)
2. (GS2) List the Constitutional provisions of ordinance powers of the president. Narrate
recent cases where it has been used.
Interview
1. What is Polvaram project? Why is it in controversy? should it be scrapped off?
2. What is Polavaram ordinance? Why are critiques arguing that Presidents ordinance
power has been misused in this case?
3. Why is Kudankulam nuclear plant unique than other nuclear plants in India?
4. Do you know the difference between a tortoise and a turtle?
5. Can you name any new species found in India during year 2014?
E1: Polavaram Project

Official name: Indira Sagar Multipurpose project

Purpose:
1. To interlink Godavari (Polavaram) & Krishna (Vijaywada) just before they merge into
sea. (observe map)
2. Store water @ Polavaram dam, West Godavari district.
3. Irrigate ~3 lakh ht.
4. general 950+ MW electricity
5. Supply Water to Visakhapatanam & Vizag steel plant.
Polavaram Project time line

1941: idea came.

2004: Andhra CM YSR Reddy revives the demand for Polavaram Project
2009: Andhra government requests the Union government to start this project.
Union declares it a national project & puts it under Ministry of Water resource.
Odisha & Chhatisgarh dont like this. NOT ONE BIT. They got Supreme Court.

Party

ODISHA

Why objection to Polavaram DAM?

Height of this dam should be low.
else, our Malkangiri forest area will be submerged in water. (~650
ht.)
How? Because Godavari is fed from Sabari and Sileru rivers in
Odisha.

CHHATTISGARH Dam will submerge villages along Sabari river. (~800 ht.)

TELANGANA
EIA

Dam will submerge villages of Khammam district.Polvaram project wont

give any water to us.
Environmental impact assessment (EIA) says >250 villages and >1.5 lakh
villagers will be affected.

Case pending in SC, Taarikh pe taarikh. ok then why in news?

Polavaram Project Authority (PPA)
1. May 1, 2014, Cabinet cleared proposal to setup Polavaram Project Authority (PPA) for
solving objection by other states and arranging investment for this project.
1. CEO (IAS), Government of India will appoint
2. Chief Secretary of Andhra & Telangana will be nominated members. [Later
Andhra CM requested Modi to remove Telangana chief Secretary from this body,
because entire project area now falls under Andhra only.]
3. +Chief engineers from water, power Department
2. Union is empowered to create such bodies under Interstate River Water Disputes Act,
1956. But it is not a Statutory body until parliament approves.
Polavaram Ordinance

May 29, 2014: President promulgated an ordinance, to amend the Andhra Pradesh
reorganization act.
This alters boundaries between Andhra & Telangana. thus transfers ~250 villages from
Khammam district of Telangana to Andhra Pradesh
To help building Polavaram project. (these villages will get submerged)
Telangana opposed.
Andhra state assembly passed a resolution, asking Union to create a new law on
Polavaram project. (To replace that ordinance).

Anti-ordinance arguments
1. As per Supreme Courts interpretation of Art.123, ordinance can be issued only in
extraordinary situation. Polavaram is not extraordinary, government could put this matter
in parliament after a week. (When President was making joint address to both houses).
2. President cannot promulgate ordinance to amend Constitution. Only parliament can do
so. On the same logic, Article 3 says parliament, by law, can form a new state or alter
boundries. Hence this matter was outside Presidents ordinance power.
3. Even for the sake of arguments, lets believe President has ordinance powers to change
boundary. But even then he did not obtain the opinion of state legislative assemblies
before doing signing this ordinance.

4. This sets a wrong precedence, next time ruling government may alter bounders in the
states were it sits in opposition, citing Polavaram case study.
Pro-ordinance arguments
1. This is not a Constitutional amendment.
2. Every-time fresh reference is not necessary to seek opinion of the concerned state
legislative assemblies.
E2: Kudankulam: 1000 MW mark
Technology

Supplier

Voda Voda Energo Reactor (VVER)= water cooled, water moderated energy
reactor.
Atomstroyexports, Russia supplied both uranium and the the VVER
technology.
Atomstroyexport is a subsidiary of Russian PSU Rosatom.

light water reactor

Pressurized water reactor
VISWAM
Uranium
1. Tamil Nadu
2. Karnataka
3. Kerala
Beneficiaries
4. Puducherry
Type
Sub-Type
software
Fuel

NPCIL will sell electricity to them at Rs.3.50 per unit. All the unallocated
electricity belongs to Union government.
Timeline :Nuke reactors
1969
2002
2011
2013
2014,
May

Tarapur, with US help.

Kudankulam construction begins
Peoples Movement Against Nuclear Energy (PMANE) begins protests against
Kudankulam project.
Attained critical capacity. This is Indias 21 st reactor.
Protest completes 1000 days.
Supreme court rejects their plea to appoint another safety Committee for
Kudankulam

2014,
June

Tamilnadu becomes first state to have two operational nuke plants viz.
Kudankulam and Kalpakkam.
Kudankulam becomes first nuclear plant to attain 1000MW capacity
Other desi nuke reactors have capacity of 700MW only.
Tata Mundra Thermal plant 800MW

States with highest nuclear energy (October 2013 data)

State rank
1. Tamilnadu
2. Maharashtra
3. Rajasthan
4. Gujarat, Karnataka and Uttar Pradhesh

Nuke power (MW)

1440
1400
1180
each with 880

Reasons for delay in reaching 1000MW mark:

1. So far India used Pressurized Heavy Water reactor technology. But Kudankulam uses
Light water reactor technology. So NPCIL engineers had to buy coaching material to
learn how to use new technology.
2. After Fukushima incident, NPCIL had to build additional safety measures.
3. Anti-Kudankulam protests, court cases.
Kudankulam nuke plant: SC rejects plea to appoint panel
2013

Anti-nuclear activist G. Sundarrajan filed petition in Supreme court, alleging that Atomic
energy regulatory board (AERB) made haste in clearing the Kudankulam plant in
Tamilnadu.
Supreme court permitted construction of Kudankulam plant, but gave strict guidelines for
disaster management, environmental protection, nuclear leakage, regular inspection @3
months interval etc.

In May 2014

G. Sudar Rajan again went to SC, demanding a committee under Ex-AERB chief
A.Gopalakrishnan to supervise the plant.
But Supreme Court on Thursday rejected the plea to appoint any expert team- AERB,
NPCIL sufficient. It is not necessary to appoint SITs and Committees everywhere.

E3: Star Tortoise vs Olive Ridley Turtle

Why in news:
a. Olive ridley turtles: hatching Tamilnadu
b. Indian Star Tortoise: Kerala officials arresting smugglers.

Indian Star Tortoise

Olive Ridley Turtle
spends most lifetime on land
in water
Comes near water for drinking &
comes to land mainly for mating and eggcleaning.
laying

Cannot swim in deep water.

Can
hence doesnt migrate over long

distance
Shell (carapace) is rounded dome, allows
cannot hide body inside shell dome (observe photo)
them to hide for protection.
Mostly herbivorous: eat cactus, grass, weed
Omnivorous: eat both sea-plants & fish
for moisture.
feet are short, bent, have claw like structure Webbed feet. No nails. Evolved for sailing long
to climb rocky land.
distance.
Natural habitat: Rain shadow area of
Atlantic, Pacific and Indian Ocean.
Marayur forest, Kerala
Warm Ocean preferred. Hence confined to
Prefer dry area, shrubs-grassland
30 Degree north to 15 Degree South.
forest.
life span: beyond 80 years (in captivity)
IUCN status: Least concern

Threats:
1. Smuggled as exotic pet due to
small size & distinct shell.
2. Habitat loss due to bush fires, cattle
grazing, floods.
3. meat used in some dishes

reptile of Chelonian family

20-30-50 years
IUCN status: Vulnerable
Threats:
1. egg harvest by men
2. egg predation by dogs & birds
3. Fishing trawls use fine nets, accidently catch
babies.
4. habitat destruction, climate change affecting
mating and migration routes.
5. skin for belts and purses. (Although reduced
because of CITES)
same

Related topic: whats the difference between Ghariyal and crocodile? Take that as home work!
E4: [Newfound] Dancing frogs in Western Ghats

Official name: Micrixalus kottigeharensis

Location: only in Western Ghats MH, KN, TN and Kerala. Western Ghats global
amphibian hot-spot. 180+ amphibian species endemic to Western Ghats.
Who found them? Delhi University professor Sathyabhama Biju (previously found
purple frogs)

Why called Dancing frogs?

Male frog dance to attract females. Technical term: foot flagging.

Usually male frogs use croaking sound to attract females
But these dancing frogs Size too small: almost like a bee. Hence their croaking is
barely hearable in the fast flowing streams of Western Ghats. Hence dancing style as an
adaptation.
These frogs evolved 85 million years ago, but only 11 species from this family were
discover till yet.
Threat: perennial streams are drying out. Agriculture encroachment.

Following two species Gecko and shrew were found in June, but Ive have included them in May
edition for continuity in revision.

Dwarf Gecko, Maharashtra

Sengi Elephant Shrew, Africa
Special feature: rounded pupil in their
Macroscelides micus: new species of
eyes. Other geckos have cat like eyes.
Sengi / elephant shrew found in
Official name: Cnemaspis Girii.
Namibian desert
Discovered by disciples of Dr. Varad
have monogamous relationship
Giri of Bombay Natural History Society
Unique feature: round-ears that look like
(hence the name Girii)
miniature elephant.
Autotomy: when an animal discards one
Called Afrotheria i.e. a diverse group
of its body organs to ward off predators.
of animals that have African origin e.g.
Gecko discards its tail, later grows it
Elephant, Sengis, sea cows etc.
back.

E5: Lake Kolleru & its bird sanctuary

Why in news? Migratory Pelican birds arrived in Kolleru bird sanctuary. [IUCN status: Least
concern].

Location: Lake Kolleru in Andhra Pradesh.

its a fresh water lake
Its a Ramsar wetland site
located near coast but not a lagoon
Enclosed between mouths of Godavari & Krishna Rivers.
gets water from Bedameru and Tammileru streams (they get water from Krishna &
Godavari)
Many islands on this lake.
Pallava era copper plates found from the lake.

Threats to Lake Kolleru?

1. Industrial waste and fertilizers polluting the lake. They promote growth of weed and
hyacinth*. Not good for fishes.
2. Farmers setup artificial saline ponds for hatching fish and prawn. This saline water
pollutes ground water.
3. Borewells in the nearby farms = water table down = salt water intrusion
E6: Hyacinth: hazard to fishes
These green plants float on the water.
WHAT
NATIVE TO South America and Central America
wetland species use Hyacinth leaves are food source
GOOD
fishes hide in the roots to avoid predators

BAD

Excessive growth of this plant prevents sunlight from reaching water.

Planktons cannot grow in wetland, Damage to entire food chain.

E7: Jhum cultivation: pros and cons

of course we all know what is Jhuming but topic in news, because someone wrote an article in
Thehindu to glamorize jhuming technique.
What is Jhum cultivation?

Farmers slash and burn a patch of land, start growing food crops.
When soil fertility declines they shift to another place, burning the jungle again.

For various names for Jhum, refer to NCERT Geography class 10, chapter 4.

Favor of Jhum cultivation

1. Uses forests natural cycle of regeneration.
2. Organic farming, doesnt use pesticides or chemical fertilizers. Trees burned to provide
potash to the soil
3. Cooperation: after jhuming, the land distributed among farmers.
4. Jhum causes only temporary loss of jungle. Because once monsoon over, the farmers
abandon the land. Jungle regenerates quickly.
5. The Jhum cycle normally runs for around 6-10 years. i.e. when farmers return to the same
patch of land and burn forest again.
6. During those 6-10 years, same jungle provide forest produce to the tribals.
7. Contrary to that, monoculture plantation causes permanent loss of forest, due to chemical
inputs.
8. so once, you cut down a forest to raise monoculture plantation, you cannot reconvert the
same land into natural forest again.
9. Jhuming done in steep hill slopes where sedentary cultivation not possible. So its a
reflex to physiographical characters of the North east.
10. overall, Jhum economically productive + ecologically sustainable
(~150 words)
Against Jhum cultivation
1. If you leave the jungle for ten years, itll regenerate. But nowadays farmers come back in
jut ~5 years. Not enough time for the forest to regenerate.
2. North eastern forest are major carbon sinks, home to biodiversity. Must be protected.
3. Jhum farming families always suffer food, fuel and fodder problems, leading to poverty
and malnutrition.
4. tons of biomass gets loss due to burning of tress.
5. Tree burning leads to:
I. higher CO2, NO2 and other Greenhouse gases (GHGs). This wasnt an issue in
ancient times (when there was no industrialization). But we cannot afford more
GHG in modern era.
II. higher run off of rainwater. hence draught, drinking water shortage.
III. we cannot find oaks, bamboo and teak forests in many regions of North East- only
deciduous scrubs left. this erodes biodiversity of the region.
IV. soil erosion, siltation in dams.
(~150 words)

Mock Questions
Q1. Consider following statements about jhum cultivation
1.
2.
3.
4.

When cycle of shifting cultivation becomes shorter, the biomass of the soil increases.
In Jhuming, trees are burnt to provide potash nutrient to the soil.
In theory, jhuming is less harmful to ecology than monoculture plantations.
Tribals of Andaman-nicobar donot use jhuming or slash-n-burn technique.

Answer choices
a.
b.
c.
d.

only 1, 2 and 4
only 2 and 4
only 2 and 3
only 2, 3 and 4

Q2. Consider following statements about Indian star tortoise

1. Its a critically endangered terrestrial life form
2. Lives on the East coast but migrates to rain shadow areas of Kerala for laying eggs.
3. Its a carnivore creature that feeds on insects and mites.
Incorrect statements are
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them

Q3. Correct statements about Tortoise and turtle?

1. Turtle is usually herbivore, tortoise is usually omnivore
2. Tortoise prefers terrestrial habitat, turtle prefers aquatic habitat
3. Compared to turtles, the Tortoise has a very short life span.
Incorrect statements are
A.
B.
C.
D.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q4. In the year 2014, certain new species were in news. Which of them can be found in
Maharahstra?
1. Elephant-shrew
2. Dancing frogs
3. dwarf geckos
Correct pairs are
1.
2.
3.
4.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q5. Which of the following state governments are officially opposed to Polavaram Project?
1.
2.
3.
4.
5.
6.

Telangana
Odisha
Tamilnadu
Maharahstra
Chhatisgarh
Jharkhand

Correct choices
A.
B.
C.
D.

only 1, 2 and 5
only 1,3 and 4
only 1, 4 and 5
all of them

Q6. Correct statements about Polavaram Project

1.
2.
3.
4.

official name is Rajiv Sagar project

Will build a dam in Khammam district, in Telengana.
This dam will interlink Godavari, Krishna and the Pennar river.
None of above

Q7. In May 2014, President of India promulgated an ordinance related to Polavaram

project. What was its purpose?
A. Specifying the water and electricity sharing formula among the stakeholder states
B. for Constitution of Polavaram Project Authority.

C. Transferring villages from Andhra to Telangana.

D. Transferring villages from Telangana to Andhra.
Q8. Consider following statements about Kudankulam project
1. It uses Voda Voda Energo reactor.
2. It runs on light water technology using Viswam software.
3. This technology imported from Russia while Uranium imported from Canada
Correct statements are
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q9. Which of the following are beneficiary of electricity from Kudankulam project?
a.
b.
c.
d.

Tamilnadu, Kerala, Karnataka, Andhra

Tamilnadu, Kerala, Karnataka, Telangana
Tamilnadu, Kerala, Karnataka, Andhra, Telangana
Tamil Nadu, Kerala, Karnataka, Puducherry.

Q10. Tamilnadu is the __

a.
b.
c.
d.

First state in India to have operational nuclear powerplants in two places.

state with highest generation of nuclear energy
Both A and B
Neither A nor B

Q11. If youre the chief conservator of forests of Tamilnadu, which of the following will be
your top priority?
a. Stationing more guards for olive Ridley hatching site at Rushikulaya.
b. Protection of new found species of elephant shrew.
c. Rehabilitation of primitive tribal groups of the Nilgiris, for construction of Polavaram
project
d. None of above
Q12. In 2014, a new species of dwarf gecko was found in Maharashtra. Why is it unique
than the ordinary geckos?

a.
b.
c.
d.

it lacks the autotomy ability

it has cat-like eyes
Both A and B
Neither A nor B

Q13. Kolleru bird sanctuary is enclosed between the mouths of ____ and ____ Rivers.
a.
b.
c.
d.

Godavari, Pennar
Krishna, Pennar
Godavari, Krishna,
Pennar, Polvaram

Q14. Which of the following measures will help in biodiversity preservation of Lake
Kolleru?
1. introduction of aquatic plant species called Hyacinth, in this wetland habitat
2. Providing subsidy to the fisherman in surrounding villages to create artificial ponds for
prawn hatching.
3. Requesting UNFCC Secretariat to grant Ramsar Wetland site Status to Lake Kolleru.
Correct choices
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Mains General Studies

1. (GS1) Jhum cultivation, though primitive in methods, is an ancient way of keeping
harmony with nature. Comment (200 words.)
2. (GS2) List the Constitutional provisions of ordinance powers of the president. Narrate
recent cases where it has been used. (200 words)
Interview
1. What is Polvaram project? Why is it in controversy? should it be scrapped off?
2. What is Polavaram ordinance? Why are critiques arguing that Presidents ordinance
power has been misused in this case?
3. Why is Kudankulam nuclear plant unique than other nuclear plants in India?
4. Do you know the difference between a tortoise and a turtle?
5. Can you name any new species found in India during year 2014?

Answers
1. Ans C. shorter jhuming cycle means less biomass because forest cannot regenerate
quickly. so #1 is wrong. #4 is wrong as per NCERT class10 chapter 4. We are left with
answer (C) only 2 and 3 correct.
2. D. All of them wrong.
3. C. 1 and 3 wrong.
4. B. only 2 and 3 i.e. frogs and geckos.
5. C. Telangana, Odisha and Chhattisgarh
6. D. None of above
7. D. villages from Telangana to Andhra
8. A. only 1 and 2 right
9. D. Tamil Nadu, Kerala, Karnataka, Puducherry.
10. C both correct. two places and highest production
11. D. none of above. Rushikulaya is in Odisha.
12. D. none
13. C. Godavari and Krishna
14. D. none of them. It is already recognized as Ramsar wetland site.
Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far.
Tags: Rajtanil
[Pollution] Bharat Emission Standards, Saumitra Chaudhuri Committee, Alternative Fuels
Pros & Cons
Environment5 months Ago78 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Timeline: Vehicle emission control in India
2. What is Bharat emission standards?
1. Sulfur lead content vs Bharat norms:
2. Why additional Levy on petrol/diesel?
3. Bharat Standards: limitations
4. Flash point in Diesel
3. Alternative Fuels
1. #1: Methanol
2. #2: Ethanol

3. #3: Hydrogen fuel

4. #4: CNG: Compressed Natural gas
5. #5: LPG-Liquefied Petroleum gas
6. #6: Hybrid and electric vehicles (HEV)
4. Suggestions to reduce tailpipe pollution
5. Mock Questions:
6. Correct answers
Timeline: Vehicle emission control in India
Vehicle emission norms introduced in India
1991
SC order government to introduce Euro norms like pollution control regime.
1999
2000
Bharat State emission standard I introduced.
onwards
Dr. R.A. Mashelkar Committee drafted Auto Fuel Policy.
2003
Recommended adopting Bharat stage 3 and stage 4 fuel standards.

Auto Fuel Policy 2003 implemented.

Bharat 3 standards introduced in 13 major cities.

By 2010 entire India under Bharat stage 3.

Petroleum ministry had setup Saumitra Chaudhuri Committee for Auto fuel
vision policy 2025
Saumitra is was a member of planning commission. (not anymore because
Montek & Co. gave resignation to Modi)

2005
2010

Dec 2012

2014, May Saumitra Chaudhri gave recommendations. Hence in news.

What are Bharat emission standards?

Euro norms define the maximum limit of pollutant that a vehicle can emit. (CO2,
nitrogen oxide, sulfur and suspended particulate matter)
If vehicle emits more than this limit, it cannot be sold in Europe.
In India, we follow Euro norms under the label Bharat stage norms. we are gradually
implementing them in more and more cities

higher stage means less emission (just for reference, exact numbers not important for
exam)
Euro normBharat Stage
limit of RSPM*
India implements from
I (1)
0.14
2000: nation wide
II (2)
0.08
2005: nation wide
III (3)
0.05
2010: nation wide
2010:
2011: 7 cities
IV (4)
0.025
2014: 24 more cities#
2017: (All India)#
V (5)
VI (6)

0.005
0.0025

2022 (All India)#

after 2024 (All India)#

#as per Saumitra Committee recommendation.

*Respirable suspended particulate matter (RSPM)

Sulfur lead content vs Bharat norms:

To reduce emission from vehicle, weve to fit catalytic converter, particulate filter, &
other fancy devices in its exhaustion system.
But the chemical catalysts in such devices get immobilized in presence of lead/sulphur.

Therefore, fuel should have minimal quantity of lead and sulfur. Else, youll have to
replace those fancy devices too often.
Lead: we are already selling lead-free petrol. Since year 2000 only lead free petrol sold
in India.
sulfur: the Bharat norms give following limits:

year
particles per million (ppm) in diesel
present (BS3) 350
2017 (BS4) 50 (already done in BS4 cities)
2020 (BS5) 10
Why additional Levy on petrol/diesel?
To implement Bharat norms, weve to do two things:
To Vehicle manufacturers
To Oil refineries
Youve fit catalytic converter, particulate filter & other You produce fuel with less sulfur,
fancy gadgets in the engine. This will decrease soot & olefin
&
other
impurities.
pollutants.
(especially for Bharat stage 5)
ok, Not a problem because these companies already fitting Problem because refiners have to
such equipments in engine, before exporting vehicles to buy machines and technology
Europe. (due to higher level Euro standards)
worth Rs.~80,000 crore.

Government can arrange cash for refineries, by imposing 75 Paise special fuel
upgradation cess on Petrol and Diesel. (says Sumitra Committee)
Send this cash to Oil Industry Development Board (OIDB)
Then, OIDB will upgrade the refineries to Bharat stage 4 and 5.
Previously, recall Famous lawyer Harish Salve reported to supreme court and asked for
30% cess on private diesel vehicles. and that money should be used for implementing
Bharat stage 5 and 6.

Taxation: Misc. recommendations

Import duty should be 0% on both LNG and crude oil.

States VAT should be reduced on CNG sale (to promote CNG vehicles)

Bharat Standards: limitations

1. Four refineries in the North East- Guwahati, Digboi, Numaligarh and Bongaigaon- their
equipment outdated, cannot produce BS4, BS5 quality fuels.

2. Government designated only a few cities under BS-4 standards. BS-4 vehicles more
expensive than BS3. Hence public buys BS3 vehicles from peripheral towns to evade
registration taxes.
3. BS3 fuel is cheaper than BS4 fuel.
4. On older vehicles, we need to fit catalytic after-treatment devices to reduce their
emission. But government & public not pursuing this project enthusiastically.
5. Our diesel to petrol usage ratio is almost (4.5): 1 hence more pollution. This ratio is low
in USA, Europe and Japan.
Flash point in Diesel

It is the lowest temperature at which a fuel starts turning into vapor (which will later
ignite)
Flash point of diesel is set at 35 degree C. (under both BS3 and BS4.)
Some journalist argue that 35 degree is too dangerous. Because in India, temperature
often above 40 degree celcius (Even EU has flash point limit 55 C, despite having cold
climate.)
Sumitra rejects this hypothesis, because even tropical countries like Brazil and Argentina
have lower flash points. The temperature in and around the engine of the vehicle is well
over 100 C much above the highest flash point prescribed anywhere in the world.
Hence 35 degree flash point doesnt automatically mean explosion.

Misc. terms from his report

Olefin
Cetane
number

These are unsaturated alkanes. We need to reduce their quantity in fuel, to reduce
pollution.
It is a measure of diesel quality. Lower the cetane number, diesel will produce
more smoke.

Alternative Fuels
Overall, Saumitra report is three things
1. Bharat norms: implementing next stage
2. taxation issues
3. Alternative fuels- for reducing petrol and diesel consumption. Here, he give pros and
cons of each alternative.
#1: Methanol
Good points

Bad points

Methanol is readily biodegradable in both

aerobic (oxygen present) and anaerobic
(oxygen absent) environments.
is an alternative fuel for internal
combustion engines
Can be used directly or by blending with
petrol
Used in racing cars in many countries, even
in China.

Methanol has a high toxicity in

humans.
Even 10 ml pure methanol can cause
permanent blindness. (recall those
hooch liquor victims)
Methanol fire burns invisibly, while
petrol burns with a visible flame.
So difficult to detect methanol fire
hazard.
Pure methanol is corrosive to engine
and fuel lines

Mrunal notes: Additional pros, cons and facts can be gathered for each alternative fuel via
google books, Britannica etc. but then article will become 5 miles long and will take another five
days to finish. And yet there is no guarantee that itll have sufficient facts to solve a possible
UPSC MCQ! Therefore, Ive confined myself only to the facts mentioned in Saumitra report,
nothing beyond that. But youre free to dig through all angles.
#2: Ethanol

is an organic solvent
Ethanol itself burns cleaner and burns more completely than petrol.
Ethanol can be derived from Sugar cane juice and molasses.
Molasses is the byproduct when sugar cane juice converted to sugar.

Timeline of Ethanol blending program in India

2001 Government permitted adding Ethanol in petrol. Pilot project in Uttar Pradesh.
2006 5% Ethanol Blended Petrol (EBP) began in most states, except JK and North East.
National biofuel policy. Now oil companies required to blend atleast 5% ethanol
with petrol.
2008
But project mostly #EPICFAIL. Most companies not blending more than 2%
ethanol, because ethanol not easily available at reasonable price.
2017 Sumitra Committee proposed 20% ethanol blending by 2017
Case study: Brazils ethanol blending program

Started in mid-70s
Their car-engines designed such way, they use even upto 18% ethanol blending. (Exact
figures not important but for MCQ the examiner may twist statement saying car engine

cannot run properly if ethanol blending more than 10%then you should know it is an
incorrect statement.)
#3: Hydrogen fuel
Bad points:
1. Cost of hydrogen pipeline is 15x times more expensive than a CNG/LPG pipeline.
2. Hence, only few areas of USA have hydrogen pipeline.
3. In the entire world hardly 200 hydrogen refiling stations by 2013. (rank: N.America >
Asia > South America)
4. Hydrogen burns with colorless odorless flame, hence hard to detect leakage.
Hydrogen Vision 2020 (GIFT)

Ministry of New and Renewable Energy (MNRE)s Green Initiatives for Future
Transport (GIFT)
It has vision 2020 for Hydrogen.
Aim: sell Hydrogen at cost of 60-70 per kg
Build pipelines and refilling stations for hydrogen fuel.
Get at least 1 lakh hydrogen vehicles on Indian road
Safety regulation, laws and codes.

#4: CNG: Compressed Natural gas

Favor

Against
CNG filling station requires
investment than petrol pump.

CNG emits far less pollutants than

petrol or diesel
Public not ready to buy CNG kits/vehicles
CNG doesnt have carcinogens like because
Benzene.
1. Lack of CNG filling stations in many
Success story in Delhi and Mumbai
highways.
CNG-public transport.
2. Price difference between CNG vs
petrol/diesel not that big.

#5: LPG-Liquefied Petroleum gas

more

LPG is predominantly propane and butane. Propane constitutes 30-99%.

LPG can be derived from.

refining crude oil

o natural gas
Hence no risk of single source dependence
LPG is globally surplus because of Natural Gas production.
In some countries, LPG is called Auto-Gas and used in taxis e.g. Korea, Turkey,
Russia, Poland and Italy.
o

Good points
bad points
emits far less pollutants than petrol or diesel
Today, cost per km for LPG car is
Unlike CNG, the LPG does not require
almost equals petrol car.
elaborate gas grid-network or compressor
So there is no cost-advantage to
station at refueling stations.
make public shift from petrol cars
Therefore, LPG refilling station can be opened
to LPG cars.
with less investment. Cheaper in long run.

#6: Hybrid and electric vehicles (HEV)

HEVs have both internal combustion (running on petrol) and electricity.

Both USA and China planning to add 1-5 million new HEV vehicles by 2020.
India should also work on this. More details in old article click me

Suggestions to reduce tailpipe pollution

List not exhaustive. Ive lifted only a few non-technical, easy to memorize points from his report.

1. BEE (Bureau of energy efficiency) labels on vehicles to show their fuel efficiency.
2. We need to replace the existing PUC system to a more reliable computerized system.
3. We need to link vehicle insurance with pollution. (i.e. higher pollution vehicle should be
ordered to pay higher premium for same coverage)
4. Give subsidy, tax-benefit to vehicle owners to retrofit their engines with newly emission
control devices
5. Impose higher taxes on old vehicles, because they emit more gases.
6. More tax on diesel guzzling SUV cars.
7. Less tax on hybrid cars, CNG vehicles.
8. Use chemical markers to detect adulteration of diesel/petrol with kerosene. Make oil
companies responsible for fuel quality at their station.
Mock Questions:
Correct statements
Q1. Petroleum ministry had setup Saumitra Chaudhari Committee for ___.
a.
b.
c.
d.

Diesel subsidy pricing in India

Petrol taxation in India
Implementation of Bharat stage 4 norms.
Auto fuel vision policy 2025

Q2. Suppose two cars are of identical size and body. One produced India and another in Europe.
Which of the following is/are correct:
a.
b.
c.
d.

Euro IV car causes less pollution than Bharat V car.

Euro III car causes more pollution than Bharat III car.
Both A and B
Neither A nor B

Q3. At present, every city of India is under ___ norm.

a.
b.
c.
d.

Bharat stage VI or higher

Bharat stage II of higher
Bharat stage III or higher
Bharat stage IV or higher

Q4. To comply with higher level Bharat norms, oil refineries need to produce diesel with less
sulphur content because
a. It is an air pollutant
b. It deactivates the catalysts in particulate filter & other emission reduction devices fitted in
the vehicles.
c. Both A and B
d. Neither A nor B
Q5. Consider following statements about flashpoint:
1. Flashpoint is the temperature at which fuel catches fire.
2. Indian diesel has flashpoint of 35 degree celcius.
3. Higher the flashpoint, less dangerous the fuel.
Correct statement
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q6. Consider following statements

1. To improve the quality of petrol and diesel, refineries will have to add Olefin into them
from Bharat stage IV onwards.
2. Diesel with higher Cetane number is considered to be of lower quality.

3. National biofuel policy 2008 requires Oil refineries to blend at least 5% ethanol with
petrol.
Incorrect statements are
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q7. Consider following statements about Methanol

1. Pure Methanol can be used in treatment of retinal glaucoma
2. Methanol is biodegradable in aerobic environment but not in anaerobic environment.
3. In many countries, methanol is used as a fuel in race cars, including China.
Incorrect statements are
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Q8. Consider following statements

1. CNG is not a safe fuel because contains traces of carcinogens such as Benzene in vapor
form.
2. In the whole world, North America has highest number of Hydrogen refilling stations
3. Pure hydrogen fuel burns with blue flame hence provides highest amount of energy per
kg, than any other fuel.
Incorrect statements are
a.
b.
c.
d.

Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them

Mains
General Studies Mains paper 3 Syllabus topic: Environmental Pollution.

1. Write a note on the salient recommendations of Saumitra Chaudhary Committee on auto

fuels (200 words).
2. What is Indias Hydrogen Vision 2020? (100 words)
3. What are alternative fuels? Why is it impractical to adopt most of them in India? (200
words).
4. What is Bharat Stage emission standards? Discuss the challenges in their implementation.
(200 words).
5. To minimize vehicular pollution, Bharat norms alone are not sufficient. Comment. (200
words).
Correct answers
1. C-auto fuel vision policy
2. D neither correct. Because Both Euro and Bharat norms are same. And higher stage
means less pollution.
3. C-Bharat Stage 3 or higher
4. C both reasons correct
5. B only 2 and 3 correct.
6. A- 1 and 2 wrong. Olefin causes more pollution. Higher cetane is better quality.
7. A- 1 and 2 wrong. Methanol itself can cause blindness even in minute quantity, how can
you treat glaucoma with it! Second statement is also wrong.
8. C- 1 and 3 wrong. CNG doesnt have benzene and hydrogen flame colorless.
Tags: energy
[Bodies] Lokpal Selection Rules No. 10, Search Committee, Selection Committee, SC
verdict
polity5 months Ago120 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
What is the Relevance of this issue with UPSC Mains exam?

(GS2): Statutory, regulatory and various quasi-judicial bodies

(GS2): transparency and accountability
(GS4): challenges of corruption

Timeline / Sequence of events

December 2013: Lokpal and Lokayukta act passed. Lokpal will consist of

one chairman
Four judicial members
Four non-judicial members

2014,
January
1:
President
gave
assent
to
2014, May week1: NGO-petition against Lokpal selection rules (Rule 10) in SC.
Problem with Existing Provisions (Rule 10)

Lokpal recruitment involves two Committees

Search Committee

selection Committee

this

bill.

Theyll shortlist the eligible candidates for selection as

Will decide the final names.
Lokpal chairman and members.
Search Committee will have 1 chairman + 7 members
total five people
from following professional categories (total 8 people)
1. administrators
1. Prime minister
2. representatives of the law enforcement
2. Speaker, Lok Sabha
agencies
3. Leader of Opposition, Lok Sabha
3. bankers
4. Chief Justice of India CJI OR a
4. judicial officers
judge nominated by him
5. legal professionals
5. One Eminent Jurist.
6. eminent persons in public life
at least 50% members of search Committee will be SC,
no such reservation
ST, OBC, minorities and women.
As per the rules, search Committee can to
shortlist candidates only from the list given by
Selection Committee has two options
Central government!
so there is no freedom in searching!
1. We can Select toppers(!) among
only those whore in the good books of ruling
the shortlisted candidates by
party, theyll get shortlisted.
search Committee.
When Lokpal is selected among such
2. we can even select people not
candidates, he is less likely to be impartial and
shortlisted
by
the
search
strict while dealing against political corruption.
Committee.
Thus, entire process is illegal, arbitrary and
against Article 14 of the constitution

Justice KT Thomas: quits the Search

Committee post because selection Committee
can pick even outsiders also. then whats the
point of shortlisting?
Legal expert Fali Nariman: declined to join
as member of search Committee for all these
stupid rules

No transparency. At least names of eligible

candidates should be put on website one week
before final selection.
Government even reduced Work-experience

Govt. chose a practicing lawyer

(PP Rao) as an eminent jurist.
Now, four sitting judges of
supreme court are in race for to
be chosen as Lokpal.
So, there would be conflict of
interest when a practicing lawyer
has to select a sitting judge of
Supreme Court.

criteria for shortlisting candidates.

Outcome of NGO petition?

Supreme court observed

(UPA) government replied

well re-examine the section rules
Selection process is made in such way
in the meantime, Well not appoint any lokpal
that itll undermine the independence and
chairman or member (this will be done after
autonomy of the Lokpal.
new government is elected i.e. Modi).

June 15, 2014: Modi government began reforming search/selection rules of UPA government.
Department of Personnel and Training (DoPT) working on this.
Mock Question
Q3. Correct statements about Lokpal
1. Its 9 persons body. Four of which, have to be judicial members and among them one
must be an eminent jurist.
2. Eminent jurist in the Lokpal selection panel is nominated by CJI.
3. Law Secretary acts as the convenor cum member Secretary of the Lokpal search
Committee.
Answer choices
a.
b.
c.
d.

only 1 and 2
only 2 and 3
only 1 and 3
none of them

Interview Question: What is the present mechanism for selection of Lokpal? Why did Supreme
Court find deficiencies in it?
Tags: Bodies, Rajtanil
[Freedom Struggle] Bhagat Singh bogus FIR, Tatya Tope 200th Anniversary, Ghadhar
Party 100 years
History5 months Ago31 Comments

For Indian History, I recommend

Spectrum- Rajiv Ahir
1.
2.
3.
4.
5.

Tatya Tope: 200th Birth Anniversary

Bhagat Singh: Bogus FIR
Ghadar Party
Mock Questions for CSAT
Correct answers

Tatya Tope: 200th Birth Anniversary

full name: Ramchandra Pandurang Tope

1814: Born near Nasik, in a Brahmin family. So, 2014 marks his 200th birth anniversary
therefore Tatya Tope automatically most important for UPSC!

(GS1) Discuss in brief, the Role of Tatya Tope in Indias struggle for independence. (100
words)
1. Last Peshwa Bajirao II=> his adopted son Nana Saheb. Nana Saheb had two trusted
generals: Tatya Tope and Azimulla.
2. During the 1857 mutiny, Nana Saheb and Tatya liberated Kanpur from the British
3. Later, Nana Saheb sent Tatya Tope with 20,000 men to aid Jhansi queen Laxmibai
4. Tatya and Laxmibai together captured Gwalior but they could not save Jhansi from Sir
Hugh Rose.
5. Tatya was an expert in guerrilla warfare. He led attacks in Rajputana, Malwa,
Panchmahal and Banswara districts.
6. In Panchmahal he aimed to organize the Bhils against the British.
(95 words)
After thistwo versions about Tatyas death:
Version #1: Tatya was not hanged
Madhya Pradesh
textbook

state

school

Tatyas descendent Parag Topes

book Operation Red Lotus

Tatya lookalike was hanged in Shivpuri, MP.

The original Tatya killed in action (KIA) in a battle.
Tatya had died in battle in Chhipa Baroda, near Guna.
Tatya was living under disguise, using different
names like Ram Singh, Jeel Jung, Rao Singh.
British officer had not seen Tatya, but East India

company had put a big bounty on Tatyas head.

Therefore, Major Meade captured a wrong guy and
hanged him to claim the reward and applaud.
After Tatyas death, Nana Saheb fought in Awadh,
later retreated into Himalayas.

Version #2: Tatya was hanged

1859, April: Tatyas own comrade ManSingh informed the British about his hideout.
Tatya was arrested and hanged.
May 2014: MP Governor Ram Naresh Yadav says Version#2 is right i.e. Tatya was
hanged.
Governor Yadav aims to publish a book Tatya Tope: Ek Swatantrata Sangram Senani,
to correct the error in MP school textbooks.

PS: Tamilnadu class11 textbook also agrees with Governor Yadav. Page 107, Tatya hanged for
Kanpur massacre.
Bhagat Singh: Bogus FIR
Timeline: Bhagat Singh
1907,
Born. Studied in Dayanand Anglo Vedic High School of Arya Samaj.
Sept
Visited the Jaliawalla massacre site
1919
Joined National college, Lahore
1923
Runs away from home to avoid marriage
1924
HRA founded. Later renamed to HSRA Hindustan republican association. Founding
1924, Oct
members: Bismil, Jogesh Chandra and Sachin Sanyal.
HRA/HSRA members loot cash of British Railways in Kakori, UP. Bismil,
1925
Ashfaqullah, Rajendra Lahiri and Roshan Singh were hanged for this.
1928,
HSRA recruits new members, including Bhagat Singh.
Sept
Lahore SP Scott orders brutal lathicharge on Lala Lajpat Rai during protests against
1928,
Oct-Nov Simon commission. HSRA decides to avenge his death.
1. Bhagat Singh, Sukhdev, Azad and Rajguru plan to kill SP Scott
2. But they kill DSP J.P. Saunders, because Jai Gopal identified wrong official
1928, Dec
3. FIR registered in the Anarkali Police station of Lahore.
1929,

Bhagat Singh and Batukeshwar Dutt threw bomb in the Central assembly, Delhi to

April

protest against
Public safety bill: Mainly to stop Communist movement in India by cutting it off from
British & foreign communist organizations.
Trade dispute bill: jail and fine for striking workers and trade unions.
After bombing, they voluntarily surrendered.
(As per Britannica, He bombed to protest against Defense of India Act.)
Bhagat had met Batukeshwar while working in Hindi daily Pratap in Kanpur
For this bombing, they got life sentence. (Bhagat hanged for Saunders).

1931

Bhagat Singh wrote a pamphel Why am I an Atheist while in jail.

From Bhagat singhs letters and writings, we can see he was influenced by Karl Marx,
Mazzini, Garibaldi, Tolstoy, Rousseau, Voltaire and Gorky.

1931, FebruaryGandhi-Irwin Pact (Delhi Pact). Lord Irwin rejected Gandhis demand of
commuting Bhagat Singhs death penalty to life sentence. Chandrasekhar Azad killed in a police
encounter in Allahabad, Alfred park.1931, March 23Hanged along with Rajguru & Sukhdev, at
Shadman Chawk, Lahore. for the Lahore Conspiracy case i.e. Murder of Saunders.
Yes, but Why in news?

May 2014: A Lahore lawyer found out the original FIR from Anarkali Police station.
The original FIR doesnt mention the names of any individual. But it only describes the
physical looks of the assailants.
So, it seems British officials would have added the names later.
Special tribunal had awarded death sentence to Bhagat Singh, without listening to 450
eye witnesses
Bhagat singhs lawyers were not given opportunity to cross examine the eye witnesses
Special tribunal promulgated an ordinance which stopped Bhagat singh from appealing in
High Court.

Now this Lahore Lawyer Imtiaz Qureshi, has filled a petition in Highcourt to prove Bhagat
Singhs innocence in this case.
Ghadar Party

Q. [GS Mains Paper 1] Write a note on the historic contributions of Ghadar party in
Indias
struggle
for
independence.
(10
marks
|
200
words)
First brainstorm for ideas:
1. Are all years important? no, just focus on three: 1913 (setup), 1914: Komagata
2. Are all freedom fighters important? no, just focus on four: Hardayal, Premanand, Bhkana,
Ras Bihari
3. Canada, oppression
4. journal
5. mutiny idea- ship arrests
6. Ras Bihari fails,
7. two parties in India
Now
Answer keypoints

lets

create

200

words

During early 1900s, Canadian govt. had started imposing restriction on the immigration
and political rights of South Asians.
1913: Lala Hardayal, Bhai Parmananda and Sohan sigh Bhakhna setup Hindi Association
of Pacific Coast.
They started weekly journal Ghadar, in English and vernacular languages to expose
British exploitation of Indian economy and promote Nationalism among masses. Thus,
became famous as Ghadar party.
1914: Gadar leaders called upon all Indians abroad to return to India and wage an armed
revolt against the British- akin to 1857s mutiny.
But British authorities became alert, passed orders to detain people. This led to arrest of
Ghadarites from Namsang and Toshamaru ships.
1914: Komagata Maru ship was carrying Sikh immigrants to Canada. But Canada did not
allow them to enter. Ship returned Kolkata, but Immigrants refused to go back to Punjab.
Clashes with police, several deaths.
Later Rash Bihari Bose tried to wage an armed revolt but failed.
They also setup Kirti Kisan Party for workers and peasants in Punjab; Revolutionary
Party of India in Bengal and UP.

Despite their repeated failures and oppression under British, Ghadhar party created a feelings of
unity, sacrifice, nationalism and internationalism among the masses within India and abroad.
~205 words.
C2: Naduvattam jail, Tamilnadu

1604: Portuguese visit Nilgiris.

1850s: 2nd Opium war.
British arrested some Chinese, brought them to Naduvattam Jail.
When these Chinese were released, they settled in this area itself.
Started tea and Cinchona plantation. Cinchona used to fight malaria.

Mock Questions for CSAT

Q1. Correct statements about Bhagat Singh
a. He, Batukeshwar Dutt and Azad were the founding members of HRA.
b. He and Rajguru had surrendered after throwing bomb in Central assembly building.
c. He threw bomb in Central Assembly building to protest against Rowlett Act and Simon
Commission.
d. None of above
Q2. Bhagat Singh had bombed Central assembly building to protest against Public safety
bill and trade dispute bill. What was the purpose of public safety bill?
a. It aimed to curtail the sale of chemicals that could be used in making explosives and
firearms.
b. It aimed to curtail the Nationalist movement in India by empowering British police with
powers akin to those under Rowlett Act.
c. It aimed to curtail the communist activity in India by cutting it off from foreign
organizations.
d. None of above.
Q3. What did Tatya Tope do in 1857 mutiny?
1. With Laxmibai, he captured Gwalior.
2. With Begum Hazrat Mahal, he liberated Kanpur from British
3. Tried to organize Bhils of Panchamahal region against the British
Correct choices
a.
b.
c.
d.

only 1 and 2
only 1 and 3
only 2 and 3
All of them

Mains and Interview

1. (GSM1) Discuss the role of Bhagat Singh in freedom struggle of India. Why is there a
view he was hanged for a false case? (200 words)
2. (GSM1) Discuss in brief, the role of Tatya Tope in Indias first struggle for
independence. (100 words)
Correct answers
1. D none
2. C for communist
3. b only 1 and 3
Tags: Freedom-Struggle, Rajtanil
[Economy] Participatory Notes (P-Notes), Hedge Funds, New Limits on FII, FPI, REFI
explained
Economy5 months Ago97 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
1. Foreign Investment rules: SEBI Vs RBI
1. SEBI new classification of FPI
2. SEBI: Alternative investment fund (AIF) classification
2. What are Hedge funds?
3. Difference between Hedge Fund & Mutual fund
4. What is Participatory Note (P-Notes)?
1. Why Ban Participatory Notes (P-notes)?
2. P-Notes, Money laundering & Terror Financing
3. P-notes and CGT evasion
5. Appendix: How Hedge funds make money?
1. #1: Short selling
2. #2: Leverage
3. #3: Arbitrage
6. Mock Question
7. Correct Answers for MCQs
FII rules: SEBI Vs RBI
SEBI
FPI: Foreign portfolio investor

RBI
ReFI:

Registered

Foreign

effective from June 1, 2014

Includes

FII: Foreign institutional investor, their sub-accounts

QFI: Qualified Foreign Investor

NRI excluded
Can trade in Indian shares, bonds, debentures, derivatives
SEBI: investment limit

Portfolio Investor
effective from March 19, 2014

same as SEBI

same as SEBI
same as SEBI

investment limit
cannot buy treasury bills
can hold maximum 10% shares in a company
Government bonds:
Doesnt apply retrospectively. Example If FII HSBC
25 billion
already owns 11% of Infosys shares (before 1/June/2014),
corporate bonds: 51
they dont need to sell 1% to get back in 10% limited.
billion
(FMC rule) Cannot become board of director in any
Indian commodity exchange.

have to register themselves as FPI, in any SEBI-approved

Designated Depository Participants (DDP)

further classification into three categories (Given below)
nope
SEBI new classification of Foreign investors
Foreign Portfolio Investors (FPI), New classification is based on two criteria:
1. Risk profile: less risky means better category
2. KYC compliance: better Know Your customer compliance means better category
FPI: Classification
Foreign government.
Foreign governments financial Institutions (e.g. American equivalents of UTI,
EPFO, LIC)
CAT I
This is category 1 because least risky and best KYC compliance in their home
country.
Can issue/buy/sell Participatory Notes (P-Notes)
CAT II

Foreign countrys Mutual Fund, Pension Fund, University endowment fund

Can issue/buy/sell Participatory Notes (P-Notes), except certain risky institution

listed by SEBI.

CAT
III

Not in CAT I and CAT II. Example Hedge funds (also known as alternative
investment fund).
in otherwords, highly risky and less KYC compliance type FII are put here.
Cannot issue participatory notes by themselves.
Cannot subscribe/buy/sell to P-notes issued by CAT I or CAT II.
cannot do above things even indirectly. (because SEBI order says so)

Donot confuse between these FPI vs alternative investment funds

SEBI: Alternative investment fund (AIF) classification
AIF
Examples
impact on Economy
Category
1. angel investors
2. venture capital funds,
3. small and medium
enterprises
(SME) Positive. They help new entrepreneurs, startup
1
companies and infra. Development
funds,
4. social venture funds
infrastructure funds
Those not in the category 1 or
2
Mixed. They use leverage only for day to day
requirements. Hence less dangerous than Hedge
Private equity funds
Funds. (leverage explained in appendix).
debt funds

Hedge funds

They pose systematic risk to Indian market, due to

complex trading strategies. (explained in the
Appendix)

What are Hedge funds?

Youre aware of the mutual funds (MF): you invest money in MF, they invest money in
share market and give you profit, after cutting their commission.
Hedge fund is a similar investment game, where High net worth individuals (HNI) pool
their money into high risky games to earn high return on investment.

But their trading-techniques are far more complex than mutual funds, hence Hedge funds
can make money even with sharemarket going down.

Difference between Hedge Fund & Mutual fund

Hedge Fund
Mutual fund
Only High Net worth Individual (HNI) can enter this
game
Any investor welcome.e.g. SBI mutual
fund Rs.100 minimum investment
Indian hedge fund: 1 crore rupees (SEBI rule)
required!
Foreign (offshore) hedge fund: 5 lakhs dollars
SEBI registers them Alternative Investment fund- registered as Asset Management
Category III.
companies (AMC)
They prefer to invest in risky bonds and shares (Because
They usually stick to shares and bonds
high risk=high return) e.g. Shares of Kingfisher and C
of reliable companies.
graded Bonds of Somalian Government.
They apply techniques such as leverage, short
selling and arbitrage to make high profit
(explained in the appendix of this article).
Mutual funds provide high return only
So, even when sharemarket is going down, Hedge
when sharemarket is going up.
Fund would continue giving high return to
investor.

They also play in derivative instruments such as

P-notes (explained after few para.)
although hedge funds can no longer play in Pnotes. Because SEBI classified foreign hedge
funds into CAT III FPI.

As such, they dont play into

P-notes.
But if foreign mutual fund
given CAT II status, they may
play in P-notes.

Indian: Karvi Capital, Motilal Oswald, IIFL,

UTI, Reliance Money, SBI mutual
Edelweiss etc.
fund etc.
Foreign: Goldman Sachs, JP Morgan
SEBI regulation not strict.
If Hedge fund manager pooled 100 crore from
investors, he can speculate in securities worth 200
crores. (Twice the amount)
But for T+2 system only meaning within two
days he should settle the transaction.

SEBI regulation very strict.

A mutual fund manager cannot
do high level speculation like a
hedge fund manager.

What is Participatory Note (P-Notes)?

Tom Cruz wants to get maximum return on the investment in quickest possible time.
For this, Tom will have to find risky securities (shares/bonds) in third world countries,
then invest money from one country to another quickly, depending on how sharemarket
moves.
In India, no one can invest in sharemarket without getting PAN card + DEMAD account
first. Other nations too have similar mechanism.
But if Tom tries to get PAN card and DEMAT account in each third world country, then
his profit will decline- given the cost of running branch office, staff salary, DEMAT fees
etc. in each country.
So, to take a shortcut, Tom will contact some middleman who is already registered as
an FII, has PAN card & DEMAT in India. e.g. HSBC.
Tom gives money to HSBC, with instruction buy A, B and C shares/bonds in X, Y and Z
quantity.
HSBC buys Indian shares. Theyll be stored in DEMAT account of HSBC, and wont be
given to Tom.
But HSBC then gives a receipt to Tom listing the shares/bonds purchased on his behalf
and stored in HSBCs DEMAT account.
This receipt is called Participatory Note.

Technically, it is called offshore derivative instrument. Observe the words

Because foreigner owning something in India, without coming to India or

opening office in India.
Because this receipt doesnt have value of its own.
It derives its value from the market value of shares/bonds held by
DERIVATIVE
HSBC. Today it may be worth $1000, tomorrow $12000 depending on
how the prices of Indian securities move.
OFFSHORE

INSTRUMENT Self-explanatory- this is one type of financial instrument to invest abroad.

1992: SEBI had permitted P-notes, to boost foreign investment in India, after BoP crisis
of 1991.
P-note owner doesnt own the shares. (because theyre in the DEMAT account of that
intermediary FII)
P-Note owner doesnt have voting rights in the shareholder meetings

Where is the profit in P-notes?

Tom has two options
1. Wait and watch. If the price of those shares go up, call up HSBC to sell them. HSBC
returns principal + profit to Tom, after cutting commission. Tom returns the P-note
receipt to HSBC.
2. Sell this P-note receipt to another foreigner say Jerry. Then Jerry again has same two
options.
Why Ban Participatory Notes (P-notes)?

As of March 2014, Foreigners invested ~Rs. 2 lakh crore in India via P-notes. (this is
13% of the total FII money coming in India)
As such the FII has to disclose P-note owner data to SEBI on quarterly basis (every 3
months). But often, within 3 months the P-notes would have changed many hands (e.g
Tom to Jerry to Micky to Goofy).
Thus P-note investments are Anonymous. Hard to trace the owner. Can be used for
money laundering and terror financing.
Hot Money: can leave Indian market very soon based on just one phone call from Tom
Cruz to HSBC. Hot money creates heavy rise or fall in share market, so even genuine
investors money is lost.
e.g. Tom continuously buys Infosys shares, they goup to Rs.3000 per share. So, you
(indian) also buy, thinking Infosys will go even higher to 3500, and Ill make profit.
But suddenly tom sells everything, to invest in China for better return.
Now infosys sells not even for 2000. Then you (Indian investor) lost 1000.

P-Notes, Money laundering & Terror Financing

Finance Ministry Whitepaper: Indians first send their money to Cayman Islands,
British Virgin Islands, Switzerland, or Luxembourg via Hawala operators. Then, their
agents convert rupees to dollars, re-invest it in Indian market through P-notes. It is
possible to hide the identity of the ultimate beneficiaries, because of these multiple
layers. Thus, P-notes are used in money laundering.
Ex-National security Advisor MK Narayan: Terrorists are using P-notes to invest in
Indian stockmarket, and using the same profits to finance terror operations against India.
They may use this mechanism to first boost Indian stockexchage, then collapse it by
quickly pulling out money from the market. Doubt: how can a poor Pakistan afford
creating volatility in Indian market? Ans. Via printing fake Indian currency, converting it
to dollars in a tax haven, to buy P-notes via a post office company!
RBIs Tarapore Committee: Recommended Banning P-notes for national security and
to stabilize stock exchanges

P-notes and CGT evasion

Capital Gains tax is a direct tax levied on profit from sale of shares/bonds/gold etc.
It is possible to evade capital gains tax via P-notes. Observe:

With P-Notes
Tom can buy Indian shares via FII via p-notes.

Tom sells this P-note to Jerry @profit.

Jerry** doesnt need to pay CGT to Indian
Government, because we cannot trace what
Tom did with that piece of paper in USA!
Even if P-note is sold 10 times to 10
different people, we cannot get CGT.
Well get CGT only once, when the said pnote owner instructs the FII to sell the
shares from its Indian DEMAT account/
portfolio.

Without P-notes
Tom and Jerry have to get
PAN+DEMAT. Only then, they can
buy/sell Indian shares.

If Tom sells his shares to Jerry (and

makes profit), then Jerry** will have
to pay Capital gains tax to India.
Because Income tax official can trace
it by monitoring the DEMAT activity
of both accounts.

**In theory, the seller has to pay the Capital gain tax (Tom Cruz in our case). but in
reality the buyer (Jerry) has to cut down the amount from payment to Tom, and give

directly to government. Recall the Tax deduction at source (TDS) concept in Nokia
controversy article click me.
Parthsarathi
Shome

Government must tax such P-note holders from next budget 2014.
Shome is a tax expert, he earlier chaired the Committee on GAAR.

Appendix: How Hedge funds make money?

Suppose, Mr.Tom Cruz runs a hedge fund for High net worth Individuals (HNI) Arnold
Schwarzenegger and Leonardo di Caprio.
To get maximum return in quickest possible time, Hedge Fund manager Tom Cruz will
apply three techniques:

#1: Short selling

Suppose Facebook shares are selling at $1200 dollars.

Tom Cruz borrows 5000 facebook shares from a broker Bruce Willis, for two days; and
immediately sells them in share market.

Now, Facebook share price will fall to say $1000 (imagine sudden supply of new onions
in the market)
Tom buys 5000 facebook shares @$1000 from another investor, and returns them to
broker Bruce Willis.
Whats Toms profit here:

Price per share quantity total

Tom Sold
1200
5000
(+) 60,00,000 (because he received $$)
Tom bought back 1000
5000
(-) 50,00,000 (because he paid $$)
Toms profit
$10,00,000

You can see this is a risky game. Sometimes share price may not fall down but increase
(because of some other player doing large purchases). In that case Tom will lose money
(because hell have to buy higher priced shares and return to Broker Bruce Willis.) ad
Broker Bruce Willis will make profit. (Because he will receive shares whose market price
has now increased.)
For short-selling trick to yield result, you need massive quantity of shares. (If I sell 1 kilo
onion from my kitchen, it wont bring down prices in the Mandi. I need atleast a 1000
kilo, to change the supply-demand and prices.)
Therefore, Hedge funds dont accept aam-admi in their game. They only allow High
Networth Individual to join the game, who can finance such large purchases and have
deep pockets to suffer large losses.

#2: Leverage
Suppose Tom has only $500 and wants to bet in $1000 worth shares.
his own pocket
$500
borrows from a friend @10% interest $500 ($50 in interest later repaid)
total with Tom
$1000
Tom uses this $1000, to purchase shares from Broker Bruce Willis. Now suppose same shares
price goes up** and Tom is able to sell them @$1200.
Whats Toms profit here?
Earned (+) $1200 by selling shares
invested (-) $500 from his own pocket
borrowed (-)$500 principal to friend
interest (-) $50 interest to friend

Profit

$150

** Shares price can go up for variety of reasons.

company expected to make good profit (and thereby declare bigger dividends)
there are talks of merger / acquisition of that company
If Tom himself starts buying large amount of shares (imagine scarcity of onions).

Again, this is a risky game, if Share prices doesnt rise, Tom will make huge losses (Because
hell have to return $550 to the friend at some point).
#3: Arbitrage
When same thing sells for different rates in two markets, Tom can take advantage of arbitrage, to
make profit.
New York stock exchange California Stock Exchange
Some investor is willing to make future-contract: Ill buy
1000 facebook shares @ $1200 3 months from now.
1 facebook share sells
He wants future contract because right now he doesnt have
@1000 (on todays date)
money or xyz reason.

In this case, Tom will purchase 1000 shares of Facebook from NY and simultaneously make
future contract with Californian investors ok Ill sell you the shares @ $1200 after three
months.
This Toms profit: $200 x 1000 Nos. = $2 lakh Dollars.
Although in real life, the arbitrage is so narrow Tom will have to apply leverage, to make
significant profit. Example

NewYork: $1000 / per Facebook share

California: $1002 / per Facebook share.

Here only $2 profit per share

If Tom wants to make $2,00,000 profit, he will have to buy 1 lakh No. of shares.
But he may not have that much money in his own pocket, to purchase such large quantity.
In that case, Tom will need to borrow additional money from friend to play this game
(refer the Leverage concept again.)

With advent of online trading, the arbitrage has decreased to decimal points. say $1000.38 in NY
and $1000.40 in Cali. So, here Tom has to buy even bigger quantity (Ten lakh shares) to see
substantial profit. Tom Cruz may have excellent brain but hed need High Networth Individuals
like Arnold & Leonardo to provide him the necessary funding. Thus, Hedge funds emerged.
Going even complex:

NewYork: $1002 / per Facebook share

California: $1002 / per Facebook share

How can Tom make money here?

Hell first apply Short selling technique in New York so that Facebook price falls down
at 1000. ($2 profit)
Then he uses arbitrage between NY and Cali to make additional profit. ($2)
So 2+2 = 4$ profit per share. Imagine if he bought 1 lakh shares like this.

Mock Question
Q1. Find correct statements about the new classification of foreign portfolio investors by
SEBI
1. the entities with higher risk profile and lower KYC compliance, are put under category
Three
2. alternative investment funds are put under category one
3. University endowment funds are put under category Two
Answer choice
1.
2.
3.
4.

only 1 and 2
only 2 and 3
only 1 and 3
All of them

Q2. Find the incorrect statements about the classification of alternative investment funds
by SEBI
1. Entities with positive externality on Indian economy, are put under category three
2. infrastructure funds are put under category two
3. hedge funds are classified as alternative investment funds category III.
Answer choice

1.
2.
3.
4.

only 2
only 1 and 2
only 2 and 3
only 1 and 3

Q3. What are the consequences if SEBI/RBI doesnt put any restrictions on foreign
portfolio investors?
1. Dollar to rupee exchange rate may become volatile
2. Indian Sensex may become volatile
3. India may run into another balance of payments crisis
Answer choice
1.
2.
3.
4.

only 1 and 2
only 2 and 3
only 1 and 3
All of them

Q4. Find incorrect statement

1. An foreign portfolio investors can buy only a fixed quantity of government bonds in
India, but hes free to buy as many corporate bonds as he wishes.
2. A foreign portfolio investor can demand position in the board of directors of a
commodity trading exchange, if owns sufficient number of shares of the said exchange.
3. Both A and B
4. neither A nor B
Q5. Consider following statements
1. An NRI need not register himself as a foreign portfolio investors, if he wishes to buy
corporate bonds
2. An NRI need needs to register himself as a foreign portfolio investors, if he wishes to buy
government bonds
3. An NRI is prohibited from buying Treasury bills.
Which of them are incorrect?
1.
2.
3.
4.

Only 2
only 1 and 2
only 2 and 3
only 1 and 3

Q6. Consider following statements about Hedge Funds

1. A middle class Indian family cannot invest in Hedge Funds.
2. In theory, Hedge fund can provide good return even during slowdown in sharemarket.
3. Given their risky profile, SEBI doesnt permit foreign hedge funds to operate in India.
Which of them are correct?
1.
2.
3.
4.

Only 3
only 1 and 2
only 2 and 3
only 1 and 3

Q7. P-Notes is a/an ____.

1.
2.
3.
4.

Alternative investment instrument

Alternative derivative instrument
Offshore derivative instrument
Offshore equity instrument

Q8. Who uses P-notes?

1. Entities that want to raise capital from abroad but cant, due to ADR/GDR/ECB related
norms.
2. Entities that want to raise capital from abroad but cant because of ECB norms.
3. Entities that want to invest in a securities market abroad, but want to maintain anonymity.
4. Entities that want to invest in a sector where Foreign direct investment is prohibited.
Q9. As per SEBI norms
1. Foreigners are completely prohibited from using p-notes to invest in India.
2. Only NRIs can use P-notes to invest in India.
3. IF a person wants to invest via P-notes, he needs to get a PAN card first.
Which of them are correct?
1.
2.
3.
4.

only 1 and 2
only 2 and 3
only 1 and 3
None of them

Q10. In stockmarket, what do you understand by the term Leverage?

1.
2.
3.
4.

Seeking to increase returns by borrowing funds.

process of selling securitis that the seller does not own.
Profit from the price differentials between the two markets.
Buying securities from the primary market to sell them at higher prices in secondary
market.

Q11. In stockmarket, what do you understand by the term Stag investor?

1.
2.
3.
4.

Seeking to increase returns by borrowing funds.

process of selling shares of a security that the seller does not own.
Profit from the price differentials between the two markets.
Buying securities from the primary market to sell them at higher prices in secondary
market.

Q12. In stockmarket, what do you understand by the term Arbitrage?

1.
2.
3.
4.

A broker offering option on a share selling contract.

Profit due to difference between two stock indexes e.g. SENSEX vs NIFTY.
Profit from the price difference of securities between the two markets.
Buying securities from the primary market to sell them at higher prices in secondary
market.

Mains & Interview

1. (GS3) What is Participatory note? Why does it pose challenge to the fight against money
laundering and terror finance?
2. (interview) SEBI should completely ban P-notes. Whats your opinion?
Correct Answers for MCQs
1. Answer C only 1 and 3 correct. Alternative investment fund is a different thing
2. Answer A. You were required to find the incorrect statement viz. statement #2
3. D all of them.
4. Answer C. You were required to find incorrect statement.
5. Answer C only 2 and 3 are wrong.
6. Answer B. 1 and 2 correct.
7. P note: offshore derivative.
8. Answer C maintain anonymity.
9. D none of them correct.
10. A. increase returns by borrowing funds
11. D

12. C price difference between two markets.

Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.
Tags: finance
[UN Report] Arab Integration- Meaning, Opportunities, Challenges, Implications
Diplomacy5 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Topic in news because recently UNs Economic and Social Commission (ECOSOC) released a
Report: Arab Integration: A 21st century development imperative. Frontline magazine also ran
a
story.
(Interview Q)
1. What do you understand by the Arab Integration?
2. Why is Arab integration necessary?
3. What are the obstacle to Arab Integration?
What is Arab Integration?
As
per
the
Arab Integration means

recent

report

by

UNESCO,

West

Asia

1. Enhancing the Greater Arab Free Trade Area (GAFTA)

2. Setting up free Arab citizenship area / common Arab labour market
3. Setting up Arab customs unions.
Why Arab Integration?
Around the world, even the greatest powers have become part of larger entities in order to
manage globalization (e.g. France, Germany under EU; even Japan). Therefore, Arabian
countries will also benefit by the same.
#1: foreign interference

Happening since the time of WW1 -Sykes-Picot Agreement (Asia Minor agreement)=
divided Arab countries in sphere of influence between Britain and France.
During the scramble for Africa, the Arab countries were also colonized.

Fragmented Arab nations =more susceptible to foreign interference of US, Russia and
China.
Many Arab countries now host major foreign military bases or are under the sway of
foreign powers in other respects.
In a way, Syria and Libya became the new Cold war fronts for US vs Russia.
Palestine issue still unsolved.
Israeli nuclear arsenal is a growing threat to the security of the region as a whole. Israel
even threatened to use nuclear weapons against Arab capitals

HUMAN DEVELOPMENT

Lack of integration =poor economies = low HDI.

Foreign interference = sectarian violence, corrupt puppet regimes.
Rampant corruption, unemployment, poverty and social injustice
Divides between urban-rural, shia-sunni also negatively hurting HDI.
subprime crisis in USA =remittances declined.

EXTREMISM

poor economics + corrupt regimes=> extremist groups have emerged.

They adopt radical and exclusionary doctrines based on narrow interpretation of Islam.
Theyre intolerant towards freedoms, especially for women and non-Muslims.
because of these, >50% of refugees in the world comes from the Arab region

Arab Spring

popular uprising against the corrupt regimes=> tyrants dethroned

But the interim governments / army rulers were not capable of fixing economy.
Cross border trade difficult because non-tariff barriers + high cost of transport.
Hence all those Arab Spring countries now witnessing even more unemployment, food
inflation and poor GDP growth rate.
Therefore proactive measures needed for arab integration before situation deteriorates
and those old regimes come back in power again.

Obstacles to Arab Integration

#1: Absence of political will.

The core idea of Arab integration = Removing tarrif barriers, provide free labour
movement across border.
But Rich Arab nations fear this will only benefit least developed countries (L.D.C) at the
expense of the most affluent countries.

Their tax revenues will decline, local junta will become unemployed due to cheap
migrant laborers, Shia vs Sunni etc.
Constant claim by Western media that Arabs are incapable of democracy.

#2: Foreign interference:

Unresolved Palestine issue and interference of foreign powers (US and Israel)
Egypt and Jordan have full trade & diplomatic relations with Israel = independent
Palestine country is impossible.
USA gives Military aid to Israel and Egypt, provides nuclear umbrella to Saudi Arabias
monarchy, armed rebels in Libya (weapons later went to Jihadists); while Russia-China
tacitly support Syria
In short, Arab regional peace= Mission impossible#6.

Follow-up questions
a. What will be the positive impact of Arab Integration for India?
b. Should we also explore the possibility of SAARC integration? What will be the
benefits / obstacles?
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-Bodies-World, Rajtanil
[Architecture] Arab Serai restoration, Rani ki Vaav UNESCO Heritage, Bara Imambara
Shrine, Bidriware Metalcraft
History6 months Ago1 Comment
For Indian History, I recommend
Spectrum- Rajiv Ahir

Arab Serai: Restoration by ASI

Rani ki Vaav, Patan
Bara Imambara shrine
Bidriware Metal craft
Arab Serai: Restoration by ASI

Why in news? Because Archaeological Survey of India (ASI) began its restoration along with
Aga Khan Trust for Culture (AKTC)
A travellers lodge / inn (Serai) located near Humayuns tomb in New Delhi.
It has 150-feet high gateway and chambers on either side of the entrance
Humayuns first wife (Haji) Bega Begum built Arab Serai (1560-61 AD)
Had barrack for Persian scholars and craftsmen. But local people used the noun Arab to
describe every alien. Hence the name Arab Serai.

Arab Serai Served as halting point for people travelling to Agra via Grand Truck Road.
Later Humayun married again to Hamida Banu- who gave birth to Akbar.
During 1857 mutiny, Bahadur Shah Zafar was given advice to hide in this Arab Serai. But he
chose to hide in Humauyns tomb along with his three sons.
Rudyard Kipling also visited Arab Serai.
During Akbars reign the Persian craftsmen also lived in Arab Serai, while building
Humayuns tomb.

Humayuns Tomb

UNESCO Cultural heritage status? YES

has ~150 graves of ruling family. Hence called the NECROPOLIS OF THE MUGHAL
DYNASTY
Financer: (Haji) Bega Begum (Humayuns widow and Akbars step mother)
Architect: Mirak Mirza
Time: 14 years after Humayuns death. (~1570)
Material: red sandstone + marble borders
Humayuns tomb is prime example of Mughal Architecture. Mughal Architecture was
inspired from Persian Architecture.

Mock MCQ Questions from above topics

Q1. Correct statements about Arab Serai
Sher Shah Suri built it on grand truck road as a halting point between Delhi and Kabul.
Its a prime example of Arab Architecture in India.
Both A and B
Neither A nor B
Q2. Find incorrect statement(s)
While both Humayuns Tomb and Arab Serai were built by Humauns widow, the former
enjoys UNESCO cultural heritage status but the later doesnt.
Arab serai is called the necropolis of mughal dynasty because during 1857, at this place,
British murdered three sons of Bahadur Shah Zafar & deported him to Burma, thus
putting a full stop on Mughal dynasty.
Both A and B
Neither A nor B
Correct Answers:
D neither A nor B right.
B is wrong. (question asked you to find wrong statement)
Rani ki Vaav, Patan
Why in news? Because Government nominated this site + Himalayan park for UNESCO
heritage site status.
Vaav= stepwell.
Patan, was capital of Solanki dynasty(chalukyas) in Gujarat.
1063: Quyeen Udayamati built this Rani ki Vaav, in memory of her husband Bhimdev
Solanki, the founder of Solanki dynasty.

The step well was used for collecting water, socialisation and spiritual bathing.
has sculptures of Vishnu.
Update: yes, it won the UNESCO heritage status.
Bara Imambara shrine
Why in news? Because shrine administration made a new dress code- women must cover their
head while entering this place. Critiques say the timing of this dress code was politically
motivated.
Bara= big and Imambara = shrine
During Muharram, Shia muslims mourn at this shrine.
Located in Lucknow, Uttar Pradesh.
built by Asaf-ud-daula, son of suja-ud-daula (nawab-wazir of awadh) in 1784
The complex includes large Asafi mosque, tomb of Asaf-ud-daula and a step-well.
The architecture reflects maturation of Mughal design.
Bidriware Metal craft

Bidriware, Irani, Bahmani Kings, Bidar, Karnataka

Topic in news because this Ancient map of Bidar found in London.
12th Century, Irani artists came to India, with Khwaja Moinudin Chisty.
Some of them found patronage under Bahmani kings of Bidar, Karnataka.
They make vessels of Zinc-Copper alloy.
Decorate it with gold and silver engravings, finally a special treatment with local mud.

Thus, these vessels have a magnificent black color.

Famous monuments in Bidar: Ahmad Shah Walis Bidar fort, Rangin Mahal, Bahamani
tombs, Gurunanak Zira.
Visit Mrunal.org/HISTORY For more articles on History and Culture.
Tags: Architecture, Rajtanil
[Architecture] Angkor Vat, Buddhas Bowl, Timbuktu Mausoleum
History6 months AgoLeave a Comment
For Indian History, I recommend
Spectrum- Rajiv Ahir

Buddhas bowl in Afghanistan

Angkor Vat Google Street view
Timbuktu mausoleum
Buddhas bowl in Afghanistan
In National Museum of Afghanistan, 400 kilo granite bowl
Experts believed it to be Lord Buddhas begging bowl.
Chinese pilgrims Fa Hien and Hiuen Tsang noted about this bowl in their diaries.
How is it reach to Kabul? Lord Buddha donated the bowl to people of Vaishali before going
to Kushinagar (UP) for Parinirvana
Then, Kanishka took it to Peshawar => Gandhar (Kandahar) => finally 20 th century,
President Najibdullah placed the bowl in National Museum in Kabul.
(1883) British scholar & ASIs first director Sir Alexander Cunningham reported this bowl
during his Afghanistan visit.
2001: Taliban had ordered to destroy all Buddhist artifacts of Kabul Museum, but bowl
survived because of Quranic verses (in Arabic) inscribed on its inner-outer surface.

RJD leaders demanded in parliament to bring back this bowl to Vaishali.

May 2014: ASI expert went to Afghanistan for study the authenticity and age of the bowl.
June 2014: ASI expert certified that its not Buddhas begging bowl, because
This (Afghani) bowl is just 500 years ago. Lord Buddha lived ~2500 years ago.
Buddhas messages were written in Pali language using Brahmi characters.
But this bowl has Arabic characters etched on it. In Buddhas era, Arabic script did
not exist.

Mock Questions from this Topic

Q6. Correct statements about Lord Buddhas begging bowl
He had donated it to his principle disciple Mahakashyap before the parinirvana

Chinese pilgrim Fa Hien noted about this bowl in his journal.

Chinese pilgrim Hiuen Tsang noted about this bowl in his journal.
Correct choices
only 1 and 2
only 1 and 3
only 2 and 3
None of them
Q7. In 2014, ASI team went to Kabul to inspect an artifact. Why have they rejected the
claim that its Buddhas begging bowl?
Real bowl of Buddha ought to have inscription written in Brahmi language using Pali
characters, but this Kabuli bowl doesnt.
The shape and measurements of authentic bowl given in Chinese Pilgrim Fa-Hiens journal,
doesnt match with this Kabul bowl.
This Kabul bowl is made out of a unique granite stone that is found nowhere Indian
subcontinent.
Correct choices
only 1 and 2
only 1 and 3
only 2 and 3
None of them
Correct Answer
C only 2 and 3 correct.
D. None of them are correct reasons. Pali language in Brahmi script.

Interview Question: In parliament certain MPs had demanding that Buddhas begging bowl be
brought from Kabul National museum to India. What has government of India done in this
regard?
Angkor Vat Google Street view

WHERE?
WHAT?
WHEN?
WHO?
FOR
WHOM?

Cambodia
Angkor (city), Wat (temple ground) = city of temples
12th Centaury
King Suryavarman II, Khmer dynasty.
Lord Vishnu. Largest religious complex in the world, dedicated to him. Influence of
Kalinga temple style. Even Kurukshetra battled and Churning of sea milk depicted
here.

Why in news?
Google Street View mapped >90000 images of Angkor vat.
You can view at home, 360 degree tour. (Same available for Mt.Fiji and Tajhmahal)
So far this is the largest digital capturing of any world heritage site.
for more on google street view trekker- read the old sci-tech compilation.
Timbuktu mausoleum
Why in news? Militant groups named Ansar Dine destroyed some of these mausoleums.
UNESCO created special fund to restore them.
Timbuktu is an ancient city in northern Mali, Africa.
Timbuktu mausoleums are world heritage sites, built by Songhay empire (15th-16th century).
Timbuktus mosques were sign of early Islam penetration in Africa.
Visit Mrunal.org/HISTORY For more articles on History and Culture.
Tags: Architecture
[Nuclear Diplomacy] Indias No first use Nuclear weapon policy vs Paks conditional sign
to NPT
Diplomacy6 months Ago91 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
D1: Indias No First Use (NFU) Police for Nuke weapons

D2: Pakistan: Conditional NPT signature

D1: No First USE policy for nuke weapons
Topic is in news because BJP Manifesto called for updating the NFU policy.
Q1. Discuss in brief the No first use Nuclear weapon policy of India, and examine the
needs for reform in it. (200 words)
What is NFU?
In 1998, After Pokharan II, PM Vajpayee declared Indias No-first use (NFU) policy to
pacify the world leaders.
As per NFU, India will retaliate with nuclear strike, IF the aggressors use nuclear, chemical
or biological weapons against us.
YES to reforms?
Our conventional military might alone is sufficient to obliterate the Pakistan in future
conflicts. Therefore, Pakistan began developing small sized, portable Tactical Nuclear
Weapons (TNW) such as Nasr missile system.
Given political instability in Pakistan, if these TNW are stolen or outsourced to terrorists,
we cannot wait for them to First nuke attack before applying NFU.
In case of a full scale war with China, even if they use no nuclear weapons, our ground forces
will be overwhelmed. In such situation, sticking to NFU will be illogical.
NO to reforms?
Paki nuke establishment cannot survive the first round from India. So, if we revoke NFU,
Pakistan will get more scared and tempted to adopt First Nuclear Use policy.
2013: Paki Army doctrine updated & their homegrown militancy was listed as biggest
threat to national security. If Indias NFU changes, theyll revert the doctrine.
NFU helped India get civil nuclear technology, despite being a non-member of NSG and
non-signatory of NTPT.
2014: Nuclear Security Summit at Hague, PM Singh called for an International No-first Use
doctrine. If we now change NFU, it will contradict the Indias good image of peaceloving and responsible nuclear power.

FUD will send negative signal to China, with whom we need to sort out border issues and
improve trade-ties.
First use doctrine (FUD) requires 24/7 preparedness and carries risk of unauthorised nuclear
use via miscommunication.
~280 words but you can skip a few points to fit this in 200 words.
Timeline: India-Pakistan Nuclear capability
Non-proliferation Treaty (NPT). Non signatory= India, Israel, Pakistan, South Sudan and
1968
North Korea.
1974 Pokharan-I
Pokharan IIVajpayee promised Parliament that India would not be the first to use nuclear
1998
weapons.
1999 National Security Adviser (NSA) Brajesh Mishra drafted NFU policy.
Vajpayee Government formally adopts Indias nuclear doctrine
Well not threaten to use nuclear weapons against non-nuclear states (=negative
security assurance),
2003

Well launch a massive nuke retaliation if weapons of mass destruction are used against
India or its armed forces.

(Later amended) that even in case of chemical and biological attack, well use nuclear
retaliation.
2005 Indo US nuclear deal.
NSG ends the ban on nuclear trade with India. Permits supply of any nuclear equipment
2008
and material for civilian use.
India has stockpile of ~100 warheads
Weve sufficient weapon-grade plutonium for 100+ warheads. Beyond that we need more
plutonium from fast breeder reactor at Kalpakkam.
Indias nuclear doctrine calls for all 3 spheres- air, water and land attack capabilities.
D2: Pakistan: Conditional NPT signature
Why in news? Because in a recent seminar, Paki Atomic Energy Commission (PAEC) Chairman
said
Were
ready
to
sign
NPT.
Non-Proliferation of Nuclear Weapons (NPT)

Agreement in force from 1970

classifies the countries into two categories
NPT categorization
Nuclear Weapons States

Non-Nuclear
States

Weapons

Countries that tested nuke bombs before 1st January 1967.

Everyone else.
meaning Only P5: U.S., U.K., France, China and the Soviet
Union
They can continue to possess the nuclear weapons for the time being. Promised not to acquire
But ultimately theyll have to begin disarmament.
nuclear weapons.
Sequent of Events after NPT
1974 India conducts nuclear test @Pokhran.
1975 Dr. A.Q. Khan steals Uranium technology from Netherlands to Pak.
Group of Nuclear exporter countries met at London, to put export controls on such Non1975 Nuclear Weapon countries. Otherwise NPT would become meaningless. This gang later
transforms into NSG.
1992 Nuclear Supply Group (NSG) releases dual-use guideline.
Dual use guideline:
IF a given material/technology has dual use i.e. in making nuke bomb + in making nuclear
reactors for energy
THEN Nuclear supplier country can export / transfer it to another country
ONLY IF the recipient country (e.g India) promises not to use it for nuclear explosion OR in
unsafe nuke reactors.
But still, NSG approval necessary before such export/transfer begins.
In other words, by dual use guideline, NSG aims to prevent spread of sensitive nuke
technology to problematic countries such as N.Korea and Pakistan.
Sequence of Events
1998
May
India again tests nuclear bombs in Pokhran
second week

1998 May last

Pakistan PM Sharif also tests nuclear bombs to show we are also in the race.
week
2005
Indo US nuclear deal signed.
NSG gave permission to India to buy nuclear material and technology for its
2008
civilian energy program. Despite the fact that India hasnt signed NPT.
After NSG waiver, one by one, France, UK, Canada, S.Korea, Nambia, Argentina et al
signed nuclear treaties with India, promising to supply fissile material / technology / both.
Pakistan doesnt like this,-not-one-bit.
For a while, Pakistan also lobbied for similar treaty with US/UK but no success because of
the Dual use guideline- no sane country in the world, is willing to sell Pakistanis any
nuke material or technology.
So, Pakistan comes up with a new mind-game cum timepass talk, called Conditional NPT
signature
Pakistans says we are ready to sign NPT, BUT with following condition.
NPT has two classification: nuke weapon countries (tested bombs before 1967), non-nuke
weapon countries.
Although we tested first nuke-bomb only in 1998 STILL give us membership in nuke
weapon country category.
Why does Pak. Want to join NPT?
Theyre facing electricity shortage. Want to develop nuclear plants.
Like India, Pakistan wanted exceptional treaty with US and NSG-waiver, without signing the
NPT. But thats unlikely to happen due to Dual use guideline. Pakistan is facing
nuclear Apartheid because of its tainted past like Dr. AQ Khan the nuclear thief,
Sheltering Osama and so on.
So now Pak planning to join NPT. That way Pak can legitimately demand NSG-waiver for
buying fissile material and technology.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-India-O, Rajtanil

[Diplomacy] International Court of Justice (ICJ) & Marshall Islands Case against India
Diplomacy6 months Ago4 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
ICJ: Structure Functions
Marshal Islands case against India @ICJ
Marshall Islands Arguments:
What next for nuclear states?
ICJ Structure Functions
Mock Q. Write a note on the structure and functions of ICJ. Why has Marshall Islands
filled a case against India in ICJ? (200 words)
ICJ-Structure
The International Court of Justice (ICJ) is the main judicial organ of the United Nations.
Setup under UN Charter of 1945.
Permanent seat at Hague, Netherlands
Has its own international secretariat, outside UN Secretariat.
Official court languages: French and English.
ICJ-Judges
Total 15
elected for nine year term
By UN General Assembly + UNSC. Must get absolute majority at both bodies.
eligible for re-election
ICJ-Functions

Settle legal disputes submitted by States.

As such, its Judgment is final. No mechanism for further appeal. But ultimately judgment has
to be enforced by UNSC, therefore it is possible to veto ICJ judgments.
Advices UN and its special agencies on legal questions referred to it.
Marshall Islands case
After WW2, USA had setup a military base in Marshall Islands in Pacific to test nuclear and
hydrogen bombs.
This led to ecological destruction, and radiation contamination on the islands and its
residents.
2014: Marshall Island government filed a case in ICJ against the nine nuclear weapon states
alleging theyve continued nuclear race and did not begin nuclear disarmament despite
obligations under NPT.
Though India, Pakistan, Israel & N.Korea are not parties to NPT, theyre also included in the
case, on the argument that disarmament provision of NPT apply to all nations as a
customary international law.
~210 words
Side notes
ICJ = World court. Do not confuse it with ICC International criminal court. Weve already
seen ICC structure functions two years ago click me
Do not confuse between official languages of ICJ vs UN.
ICJ

UN
Arabic

French
Official language
English

Chinese
English
French

Russian
Spanish
French
Working language Same as above
English
ICJ is the only principle organ of UN that is not @New York.
Marshall Islands case against India @ICJ
(Interview Q.) Why has Marshall Island filled a case against India and other countries
@International
court
of
justice?
Marshall Islands Located @Micronesia group of Islands in Pacific Ocean.

Timeline Marshal Islands

Capital
Majuro.
Before WW1 German Colony
After WW1 Japanese Colony

After WW2 USA Military Base. Later ran under Trusteeship of UN

1991
Finally joined UN as a free country.
What is their problem?
From 1946 to 1958, USA conducted 67 nuclear tests on these islands
Even destroyed one of the islands by testing a hydrogen bomb.
Consequently, Marshall Islands became one of the most contaminated sites in the world
April 2014: filed a case in International Court of Justice (ICJ) against nine nuclear weapon
states viz.
Parties to NPT Non-parties to NPT
USA
India
Russia
Israel
UK
Pakistan
France
North Korea
China
Collectively these nine nations have >17000 nuclear warheads.
Marshall Islands Arguments:
1970: NPT came into force. It provides
Non-nuclear states will not acquire nuclear weapons
Nuclear states will aim for disarmament.
But those who signed NPT, havent stopped nuclear arms race or started nuclear
disarmament. Thus, theyve breached NPT Article 6.
Yes, India, Pakistan, Israel and N.Korea have not signed NPT, but still, the disarmament
provision of NPT also apply to them as a customary international law. Yet, by continuing
nuclear arms race, they too have breached the international law.

Besides, India, Pakistan and UK have accepted compulsory jurisdiction of ICJ. Hence theyre
answerable in this court irrespective of whether theyre party of NPT or not.
We dont want any compensation.
We only want the ICJ court to order those 9 nation to begin nuclear disarmament.
What next for nuclear states?
Those 9 countries will have to prove in court theyre committed towards nuclear
disarmament, otherwise ICJ might pronounce a legally binding verdict on disarmament.
But, Israel already stated we are not party to NPT, this case has no legs. India/ Pak may
take the same line.
India has accepted ICJs compulsory jurisdiction. But only with respect to multilateral
treaties. But since we are not party to NPT, ICJ cannot exercise jurisdiction over us.
North Korea may not even bother sending lawyer to defend themselves @ICJ.
China may even say NPT has been extended to infinite time, there is no deadline to begin
disarmament.
USA and Russia might argue in the court, were sincerely taking steps for nuclear
disarmament viz.
Strategic Arms Limitation Talks (SALT) of 1970s
Strategic Arms Reduction Treaty (START) from 2010
Tags: IR-Bodies-World, Rajtanil
[Current] May-Week1/P3: Economy- Financial resolution authority, Reena Benerjee
Committee on Bancassurance, Minor Bank accounts, Enforcement day
Current Affairs Weekly5 months Ago58 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue

Bancassurance: Reena Benerjee Committee

Deposit Insurance and Credit Guarantee Corporation (DICGC)
Function1: Deposit insurance
Function2: Credit guarantee
FRA (Financial Resolution Authority)
Difference: FRA vs FRA
What is Financial Stability and Development Council (FSDC)?
Enforcement Directorate
ED: Functions
ED: Future reforms
Hindi translation of technical terms
CSAT mock questions
Answers to Mock CSAT questions
Prologue
Those inquiring about Hindu science tech compilation, yes theyll come but not in a next few
weeks. Present schedule is
Remaining of June: [Current] series + Toppers interviews
Most of the July will be spent in doing Budget + Summaries of Economy survey. (Survey
alone is a project worth ~20 days headache).
After that Hindu science techs number will come. Thats probably July end or August
beginning.
anyways, Continuing from where we had left. Current Affairs May week1 (1-7)
History, Culture, Polity (coming soon)

Economy (youre here)

Diplomacy (done click me)
Questions
CSAT MCQ given at bottom of this article
Mains exam
(GS2) Write note on the Financial Stability and Development Council (FSDC): 100
words.
(GS2) Write a note on the organization and functions of Enforcement directorate.
Suggest measures for improvement of this body. 200 words
(GS3) What is Enforcement Directorate? How does it help combating terror finance
and money laundering? 200 words.
Interview
Why is RBI and IRDA having disagreement over Bancassurance model? Which
model is better for financial inclusion in India?
Recently, some Committee suggested setting up a Financial Resolution Authority?
What will it do? Who will benefit from this?
Bancassurance: Reena Benerjee Committee
First understand the meaning of Bancassurance, and difference between Agent model vs Broker
model from earlier article click me.
Agent model Bank ties up with only 1 life + 1 non-life insurance company
Broker model Bank is free to sell products of multiple insurance companies.
As such broker model good, because customer gets choice, less chances of mis-selling. Hence
IRDA and Finance ministry wanted Sarkaari banks to move from Agent model to Broker model.
But there is loophole. Consider following example:
Agent model
SBI bank ties up with SBI life insurance.

Broker model
SBI ties up with LIC, orient life
insurance, SBI insurance and many

other companies.
Bank staff only ordered to sell SBI life insurance to all Still SBI Bank officers can force staff to
bank customers. Chances of mis-selling high because promote only SBI insurance products=>
performance bonus depend on sales-target.
mis-selling chances high.
To prevent this abuse, IRDA gave two guidelines:
25% sales cap to Promoter Companys insurance company. Meaning, if SBI bank staff sells
100 crore worth policies, then only 25 cr. Worth policies should have been sold from SBI
insurance. Other 75 cr. Worth policies from LIC, Orient life insurance etc.
Bank should hire separate staff for insurance business. (to prevent mis-selling by banking
staff, under the threat of performance bonus.)
Rajan didnt like it.
NOT one bit.
Rajan feels IRDA Chairman TS Vijayan should not give orders to banks about how to
conduct their business, this is RBIs turf.
War of words and indirect taunting during seminar / memorial lectures started.
Finally, April 2014, finance ministry setup Reena Benerjee Committee to sort the mess. (Ms.
Reena = General Manager in RBI)
Committees interim report suggested following:
Gradual sales cap
1st year
75%
2nd year
60%
3rd
50%
4th
35%
5th year end 25%
Committee doesnt want separate recruitment of insurance staff within bank. Because itll
raise cost of operation.

Then to maintain the same profit margin, banks will start charging more fees on ATM, Credit
card etc. They may also reduce the interest paid on savings or fixed deposit. Ultimately
customer will suffer.
Banks should not be forced to adopt Broker model. Decision should be left to the board of
directors of the given bank. No single model is good for every business setup.
RBI doesnt allow stock brokers to run banking operations, then why should IRDA force
Bankers to become brokers? Its illogical.
in other words, Reena Benerjee committee has endorsed Rajans side. IRDA Chairman seems to
have lost this round of territorial domination.
Some factoids /side notes
Insurance density = ratio of premium to population (per capita)
For India insurance density =$9, China 50+. Therefore India has less insurance penetration
than China.
55,000+ bank branches of Public sector banks, have not sold any insurance policy. Therefore
we cannot hope that broker model bancassurance will automatically fix the problem of
low insurance density.
Public awareness also necessary for improving insurance penetration.
Itll be better if IRDA+RBI worked together rather than making it a question of
ego/territorial supremacy.
Deposit Insurance and Credit Guarantee Corporation (DICGC)
Current topic is Financial Resolution Authority but before going into this topic, weve to
understand what is DICGC.
HQ: Mumbai.
DICGC is a corporation setup by act of parliament. (means it is not a company registered
under companies act).
RBI completely owns DICGC.
RBI has four dy. Governors. One of them functions as the chairman of DICGC.

Ownership
Chronology
Organization
Ownership
1978
DICGC
100% RBI
Act of 1981 (setup in
EXIM bank
100% Government
1982)
July 1982
NABARD
Govt.99.3% + RBI 0.7%
National
housing
1988
100% RBI
Bank
Sarkaari banks and financial institutions like SBI,
1990
SIDBI
LIC, IDBI
Mind it: weve only four All India financial institutions (AIFI) viz. EXIM, NABARD, NHB and
SIDBI.
Anyways, back to Deposit Insurance and Credit Guarantee Corporation (DICGC). From the
name, we can see it has two functions
1. Deposit insurance
2. Credit guarantee
Function1: Deposit insurance
You buy car insurance, so youre protected against theft or accident of your car.
But what about insurance of the money youve deposited in the bank account?
Yes, banks have to keep aside some money as backup, in CRR and SLR.
But still what if there is a massive crisis, nobody repays a single paisa of loan. Bank has to
completely shut down its operation? (situation similar to American Subprime crisis)
What if bank itself involved in a massive fraud and RBI cancels its license.
In such cases, what is the guarantee that youll get back money from your
savings/current/fixed deposit account?
To protect the bank customers in such scenario, government had enacted Deposit insurance
Act in the 60s.

Under this act, every bank has to compulsorily take insurance from DICGC. (Just under
Motor Vehicle act, it is compulsory to get car insurance.)
Every bank means every commercial bank (public, private, foreign bank), cooperative bank
and regional rural bank (RRB).
So, when bank fails / shuts down- DICGC will give money to depositors (maximum 1 lakh
per depositor).
Of course, money doesnt fall from sky, if you get health insurance then youve to pay
premium right?
Same way, Bank itself has to pay the premium to DICGC. (They cannot deduct this charge
from your bank account or interest.) only then DICGC can come to rescue during crisis.
RBI can inspect the banks on DICGCs behalf to make sure theyve taken adequate
precautions in running the bank.
First function is clear. Now the second function.
Function2: Credit guarantee
What if bank has given loan to a farmer but he cannot repay it because of the bad monsoon?
And government also doesnt come up with some debt waiver scheme?
Then banks will not give loans to farmers next time. Agriculture production will decline.
Therefore, DICGS also gives guarantee to bank, So, if farmer doesnt repay his loan, well
pay you (Bank) the loan money.This is credit guarantee, one type of insurance.
In 2014, Bharatiya Mahila bank announced theyll give loans upto Rs.1 crore to female
entrepreneurs, without any collateral.
Suppose, a lady businessman cannot repay the loan, then what will Mahila bank do? They
cannot even attach her property (because loan given without collateral)!
But Mahila bank doesnt need to worry because theyre given credit guarantee by Credit
Guarantee Fund Trust for Micro and Small enterprises (CGTMSE) fund is under MSME
ministry. (and not this DICGC)
Anyways, DICGC is an old topic. Why in news?

Because a Committee recommended converting this body into a new body called
FRA (Financial Resolution Authority)
Financial Stability and Development Council (FSDC) => they setup a panel under Anand
Sinha (RBI Dy.Governor) + Arvind Mayaram (Finance Secretary ).
This Sinha-Mayaram panel recommended creating Financial Resolution Authority FRA.
Functions:
Solve crisis in all financial institutions. Not just banking, but non-banking financial
institutions also e.g. Muthoot Gold Loans, Reliance Mutual funds.
FRA will protect all depositors (in banks) and all investors (in non-banking function financial
institutions)
FRA will subsume the above Deposit Insurance and Credit Guarantee Corporation (DICGC)
WE need to create FRA, because all financial markets are interconnected. A crisis in banking
sector, can have negative fallout even on share market (and thereby mutual funds), and
vice versa.
This FRA will be independent of govt. and financial regulators (such as RBI, SEBI, IRDA)
FRA can prevent bank failure, and reduce damage to economy
Apart from insurance premium, FRA can also arrange money by issuing bonds (And that
bond-money can be used for resucing the failed bank/institution.
Difference: FRA vs FRA
FRA
FRA
Financial redressal agency
Financial resolution authority
BN Srikrishna (FSLRC under Finmin) and Nahicket Sinha-Mayaram panel under FSDC
Mor Committee (RBI) recommended this.
recommended this.
For
consumer
protection
in
financial
For preventing collapse of financial
products/services
in
banking,
insurance,
institutions -both banking and non-banking.
sharemarket etc.
By the way

What is Financial Stability and Development Council (FSDC)?

Structure
Secretariat office in Economic affairs department under Finmin.
Chairman : Finance minister himself
Members:
Financial sector regulators viz. RBI, SEBI, IRDA, PFRDA and FMC. (FMC is latest
member. Included in December 2013)
Secretaries from finance ministry
Chief Economic Advisor in finance ministry.
Functions
Setup in 2010
For coordination among regulatory bodies in financial sector. But it cannot override the
decision taken by an independent regulator (SEBI, RBI) etc. in their own territory.
This body is only for coordination, consultation via meetings. (Desi liquor and item songs
options)
It has a sub-committee chaired by RBI governor. This is the first stop for dispute resolution
among regulators.
Coordinates with international bodies
Promotes financial literacy and financial inclusion.
Macro prudential supervision
~120 words.
Enforcement Directorate
This organization is important for GS2 (ministries & department) + GS3 (money laundering)

Why in news? Because 1st May 2014 was Enforcement day and President gave speech.
Structure and Functions of ED.
ED functions under Revenue department of Finance ministry.
ED Gets officers from custom and excise, Income tax department and various police
agencies.
HQ: Delhi. Offices spread across India
ED: Functions
ED enforces two acts
FEMA 1999
PMLA 2002
Civil law
Criminal law
Foreign Exchange Management Act. Two
basic premises
Only RBI authorized dealers
buy/sell foreign currency

can
Prevention of money laundering Act.

Quantitative restrictions on how many

dollars etc. foreign currency you can
bring/takeout from India. (RBI
decides this)
ED can impose penalty: 3x time the money
ED can only investigate, arrest the suspects, attach
involved. Meaning ED itself has quasitheir assets. Court will decide punishment, and all
judicial powers here (i.e. giving punishment
such assets will be alloted to government.
like a court)
In Dec 2013, ED raided owner of
In 2014 alone, ED attached assets worth 1000+
buysellbit.co.in located in Abad
crores.
(Mahim Gupta)
Because RBI has not yet legalized
Bitcoins, yet this gentleman was
selling bitcoins to people in
exchange of rupees. So in a way he
was acting as Forex agent without
license from RBI!
ED: Future reforms

+ ED also investigating people who had given

money to that Abad gentleman Mahim
Gupta for buying bitcoins. Because bitcoins
are anonymous, can be used for terror
financing and money laundering. hence ED
got powers to investigate under PMLA.

(Ive copied following points from Presidents speech and you can directly cut-paste them
on any question related to reform/measures taken to combat money laundering/terror
financing)
Today, money laundering is a global phenomenon. Black money (in Rupee) is converted into
dollars, then invested in foreign banks/real estate/ coal mines (like Madhu Koda did).
Therefore international cooperation needed to curb cross-border money laundering and terror
financing
We already have joined Financial Action Task Force (FATF). HQ: Paris, which act against
international money laundering.
Weve also joined similar bodies in Europe and Asia viz. Eurasian Group on Combating
Money Laundering and Financing of Terrorism (EAG), and the Asia Pacific Group on
Money Laundering (APG)
2002: we enacted Prevention of Money Laundering Act (PMLA),2002. Its parallel with
recommendations of FATF
ED should utilize the multilateral cooperation from FATF, EAG and APG.
ED should adopt cutting edge technology for cyber forensic, communication and information
infrastructure
Government should provide ED with more funds, technology, man-power particularly legal
experts
Hindi translations of technical terms
Civil law

Credit Guarantee

Criminal law

Deposit Insurance and Credit Guarantee Corporation

Enforcement directorate

Financial redressal agency

financial resolution authority

Financial Stability and Development Council

Foreign exchange

Minor account

Money laundering

multilateral cooperation

PMLA

Terror Financing

Bitcoin

CSAT mock questions

Q1. (UPSC 2007) The national housing bank (NHB) was setup in India as a wholly owned
subsidiary of which of the following bank?
State bank of India
Reserve Bank of India
ICICI
LIC
Q2. (UPSC 2004) Find Correct Statement(s)
NHB, the apex institution of housing finance in India, was setup as a wholly owned
subsidiary of RBI
Small industries development bank of India was established as a wholly owned subsidiary of
the Industrial development bank of India
Both A and B
Neither A nor B
Q3. Which of the following are fully owned by RBI?
NHB, EXIM, NABARD, DICGC

NABARD, EXIM, SIDBI

NHB, SIDBI and NABARD
NHB, DICGC
Q4. Correct Chronology (From old to young)
NABARD, SIDBI, NHB , EXIM
EXIM, NHB, NABARD, SIDBI
EXIM, SIDBI, NHB, NABARD
EXIM, NABARD, NHB , SIDBI
Q5. Which of the following are legally required to get insurance on customer deposits?
Newly licensed banks of Bandhan and IDFC
Cooperative banks and regional rural banks.
Foreign banks and private sector commercial banks
Merchant Banks
Answer choices
only 1 and 3
only 1, 2 and 4
only 1, 3 and 4
only 1, 2 and 3
Q6. as per the latest guidelines of RBI for minor persons
Minors can open new bank accounts only with mother as first guardian, and in her
death/separation father as guardian.
Minors are permitted to open all type of bank accounts that an adult person can open.

Both A and B
Neither A nor B.
Q7. Find correct statement:
Insurance density is defined as the ratio of number of insurance policy holders per 1000
persons
Insurance density is defined as the ratio of number of insurance policy holders per square km
of habitable area of a country.
Insurance density is defined as the ratio of premium to population.
Insurance density is defined as the ratio of population to premium.
Q8. find correct statement about Deposit Insurance and Credit Guarantee Corporation
(DICGC)
DICGC protects all the depositors of a bank, except current account holders.
DICGC protects the bank against default by female entrepreneurs without collateral.
DICGC protects the bank against default by exporters
None of above.
Q9. What will be the functions of the proposed financial resolution authority?
Consumer grievance redressal in financial market
Dispute resolution and coordination among various financial regulators
Macro prudential supervision over primary and secondary market under the capital market.
Rescuing the depositors and investors in all financial institutions during a crisis.
Q10. Correct statements regarding Foreign Exchange Management Act and
Prevention of money laundering Act.
ED enforces PMLA while RBI enforces FEMA

Under PMLA, ED enjoys quasi-judicial powers to impose direct penalty on the hawala
operators.
Both FEMA and PMLA are criminal laws
Answer choices
Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them
Q11. If a person opens an online portal to facilitate the buying/selling bitcoins in lieu of
rupees, he is can be investigated under
Foreign Exchange Management Act.
Prevention of money laundering Act.
Both A and B.
Neither A nor B because there is no legal framework in India to deal with Bitcoin, yet.
Q12. Consider following statements about Financial Stability and Development Council
(FSDC)
Its Chairman is Finance minister and Vice chairman is RBI governor.
It is the supreme body of Indian financial sector regulators which can give a binding order to
sort out territorial disputes between any two regulators.
It aims to promote financial literacy and financial inclusion.
Answer choices
only 1
only 3
all of them

None of them
Mains and interview
Mains exam
(GS2) Write note on the Financial Stability and Development Council (FSDC): 100
words.
(GS2) Write a note on the organization and functions of Enforcement directorate.
Suggest measures for improvement of this body. 200 words
(GS3) What is Enforcement Directorate? How does it help combating terror finance
and money laundering? 200 words.
Interview
Are you in favor of RBIs latest move of allowing Children to open bank accounts
without adult supervision? Yes / No / why?
Why is RBI and IRDA having disagreement over Bancassurance model? Which
model is better for financial inclusion in India?
Recently, some Committee suggested setting up a Financial Resolution Authority?
What will it do? Who will benefit from this?
Answers to Mock CSAT questions
RBI totally 0wns NHB hence answer a
Only first statement correct hence answer 1a
Only NHB and DICGC fully owned by RBI hence answer d
Answer d
Merchant bank is not a bank under banking regulation act. It is an NBFC registered to
SEBI, looking after IPO-underwriting etc. Therefore, it doesnt fall under Deposit
insurance act. Answer d:only 1,2 and 3.
Minor can open without guardian, so A wrong. They cannot open current account unlike an
adult, so B wrong. Hence answer D

Answer Premium to population

Answer D. none is right. DICGC protects all type of bank accounts. DICGC protects banks
against farm-loan defaults. But DICGC doesnt protect bank again female entrepreneur
default or exporter default. There are separate bodies to look after them: CGTMSE and
ECGC respectively.
Answer is D.
None of them answer D.
Option C, hell be investigated under both. recall Mahim Gupta case.
Option B, only 3 is correct.
Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far.
[Economy] Special 301 Report, Priority List, Implication on India, Nexvar case,
Compulsory License, Patent Evergreening, IPR protection, USTR explained
Economy6 months Ago106 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
What is Special 301 report?
Priority List countries for 2014s Report
Why India in Priority watch list of Special 301 report?
#1: Movie piracy
#2: Internet piracy
#3: Ever Greening: Novartis Judgement
#4: Compulsory license: Nexvar Judgement
#5: Drug price control
#6: Trademarks and Counterfeiting

Negative Implications for India?

Why China in Priority Watch list of Special 301 report?
Why Russia in Priority Watch list of Special 301 report?
Mock Questions for CSAT
Mock question for Mains
Correct Answers for MCQs
What is Special 301 report?
Under US Trade Act 1974, Section 301
Office of US Trade representative (USTR) has to prepare a list of countries, whose IPR
regime has negative impact on American products.
Section 306: US government can put sanctions on such countries listed under Section 301
report.
Therefore, USTR office prepares an annual report, after conducting public hearings, where
private sector lobbyists and foreign government representatives can participate.
Result= Special 301 report. It contains list of countries with weak IPR regimes (Intellectual
property rights).
In Special 301 report, countries classified into following groups:
Priority foreign country (only Ukraine)
1
Priority watch list (India, China, Russa etc.) 10
Watch list
27
not in watch list
44
Total countries reviewed in 2014 (1+2+3)
82*
*82 because its a time consumer exercise, USTR doesnt have the time and mood to review all
countries of the world, every year. They only focus on important trading partner. Same reason
N.Korea or Iran not any list.
Priority countries for 2014s Report

If a country is put under Priority, US administration will focus all its attention- both carrot and
stick approach to make that culprit country fix its IPR regime

Priority Watchlist countries

Priority foreign countries
Total ten: Algeria, Argentina, Chile, China,
India, Indonesia, Pakistan, Russia, Thailand, and only one: Ukraine
Venezuela.
USA will use Carrot approach to reform their
Sticks approach. (punishment)
IPR regime.
for example, Gives grants, donations,
training, and gadgets to officials in legal,
police, customs, patent departments of
that country.
trade sanctions under Section 306 of US
Trade Act
Invites judges, bureaucrats and businessmen
for a paid-trip to USA and observe its
even WTO dispute resolution mechanism
IPR regime.
Free distance learning modules in multiple
languages- for patent laws, WTO-TRIPS

agreement etc.
facilitating raids for internet piracy, movie
piracy across continents
conferences and desi liquor parties
India is in this list since the beginning of
Special 301 reports in 1989.
2014 marks 25th year silver jubilee of our
awesomeness,
thus
automatically
important for UPSC.

India was only once in this list- during 1994

At present only Ukraine on the list but USA

has postponed the sanctions, due to CrimeaRussia crisis.
American MNC lobbyists were demanding
put India on this list and impose sanctions. But
USTR did not do so, hoping Modi will fix it.

Why India in Priority watch list of Special 301 report?

USTR gave following Official reasons:
#1: Movie piracy
India doesnt have separate Anti-Camcording law. i.e. if a person is found with a video
camera in cinema hall, he must be arrested for attempted piracy. US, Canada, Philippines
etc. have type of laws.
2013: Andhra Film industry developed i-moviecop App for mobiles, to help citizens directly
report video piracy to concerned authorities. Model needs to be replicated at national
level.
#2: Internet piracy
2015: India will have second largest Internet users in the world. (McKinney projections)
Yet, Indian government doesnt have special takedown procedures against pirate website.
Internet pirates not given severe punishment. Cases go on for years.
#3: Ever Greening: Novartis Judgement

In Novartis/ Glivec case, we saw that Novartis attempt to get renew its patent by making
superficial changes in the drug molecule structure.
Supreme court prohibited this evergreening patent scam.
But Pharma MNC-lobbyists portrayed this case in a different tone to USTR as if Indian
judiciary & laws biased against Foreigners.
Therefore USTR mentioned in Special 301 report- Indian Patent Act prevents innovation.
If Pharma-MNC are not allowed to re-register patents (on the accusations of ever
greening) then they can never design new drug molecules with less side effects, less
toxicity, longer expiry date etc.
Therefore, USA wants Indian government to amend its Patent Act. Especially Section 3/d
dealing with evergreening.
#4: Compulsory license: NEXVAR judgement
Nexvar =German Company Bayer Pharmas Patented drug for liver & kidney cancers.
2008: Bayer got patent in India. Its 120 tablet pack costs more than 2.5 lakh rupees.
2012: NATCO Pharma (Hyderabad) sought permission to produce generic version of the
same drug Sorofenib Tosylate, to sell at cheap price.
NATCO argument
Bayers argument
Bayers drug too expensive. Indian public cannot We dont want to setup mfg. plants in
afford. They could sell it cheap by setting up India, because itd be loss making from
manufacturing plant @ India.
business point of view.
Indias Controller-General of Patents ordered following:
Give Compulsory license to NATCO Hyderabad to produce the said patented drug.
Because he has powers to do so under Indias patent act Section 84.
He ordered NATCO to pay 6% royalty to Bayer.
NATCO will have to sell it at ~9000 rupees / Per 120 tablets.
Bayer later appealed to Intellectual Property Appellate Board (IPAB) but defeated.

Again MNC-Pharma lobbyists portrayed this case in a different tone to USTR as if Indian
patent office is biased against Foreigners.
Therefore Special 301 report criticized that Indian patent act & compulsory license provision
hurt foreign companies in Pharma and Green energy sector.
#5: Drug price control
Drug Price Control Order (DPCO) 2013
It imposes MRP restriction 348 essential drugs.
But some drugs can be sold at higher price, IF they are manufactured in India using Indian
technology.
But Foreign companies have to sell the same drug at a price fixed by National
Pharmaceutical Pricing Authority (NPPA)
Again hurts the IPR of Pharma MNCs.
#6: Trademarks and Counterfeiting
India has backlog of 1.5 lakh+ cases related to trademark misuse.
Even FICCI report says trademark owner lose nearly 12 billion dollars per year because of
counterfeit products in Indian market.
Most vulnerable industries: automobile spare parts, liquor, computer hardware, personal
goods, packaged foods, mobile phones, and tobacco products.
US Customs dept. report says India is the top supplier of counterfeit pharmaceuticals to USA.
India doesnt have separate law to punish trade secret violations. It relies on an outdated
Contracts Act.
To sum up,
Indian IPR regime is not stable, not predictable, doesnt nurture incentivize innovation.
Indian laws appears to favor local companies. Thus preventing a free competition by
Innovative foreign companies.

Therefore, India has to be put under Priority watchlist

Negative Implications for India?
No negative implications for the time being. Because
Priority Watch List Country

Priority Foreign Country

Foreign MNC wanted USTR to put India in this
India is here since the beginning of
category. But USTR maintained status quo (by
Special 301 report. There is nothing new.
keeping India in Priority watch list.)
If a country is here, USA only uses
If country is here, USA will impose sanctions and or
Carrot bilateral talks, training, funding,
WTO dispute resolution.
and consultation.
USA did not move India to the priority foreign country (Danger zone), because they hope
new government will address the issues. Even they knew Congis wont come in power
again.
As such, USTR reviews the trading partners on annual basis. But for India, USTR has
planned an Out-of-Cycle Review (OCR) of India, in fall 2014 (i.e. Late September 2014).
So, if Modi takes strong initiatives to enforce IPR in MNCs favor, well be removed even
from the priority watch list- just like South Korea, Philippines etc.
Worst case scenario: Modi continues status quo, Obama puts India on priority foreign
country status =puts sanctions under US trade law. Then India can retaliate by dragging
them to WTO, after all, our patent regime is compliant with TRIPS (Trade related
intellectual property rights). Besides India can also adopt tit-for-tat, sanctions for sanction
then USA industries will be hurt more. Hence Worst case scenario unlikely.
Critiques even say
Special 301 report violates WTO principles. Because it permits US government to take
unilateral actions against any country. Despite the fact that USA, India, China all have
agreed to sort disputes through WTO dispute resolution mechanism.
Americans have just kept the carrot dangling, by keeping India in the Priority Watch List,
so that the threat remains. And, OCRs are nothing but keeping the pressure on, so US will
continue to play their games with Modi or whoever else comes in power. Americans only
concerned with maximizing their profit. (Hardeep Singh Puri, Ex-UN representative.)

Anyways, we must not feel guilty for in being in the priority watch list because China-Russia
also in the same list. So this #tag should be brandished with pride and patriotism, we are no less
awesome than their economies. But out of curiosity.
Why China in Priority Watch list of Special 301 report?
Value wise, 93% of counterfeit products coming to USA, are made in China. (US customs
Department report.)
Even before America Companys patent expires, Chinas FDA will grant permission to
Chinese pharma companies to begin generic drug manufacturing for local sales.
Chinese government takes no input from foreign stakeholders while amending patent laws or
copyright laws. Their law making process is very opaque.
Chinese competitors steal trade secrets US Company offices located in China yet they go scot
free in the Chinese courts.
Genuine American goods see very low sales in China, even compared to other countries that
have less Purchasing power than Chinese public.
Chinese E-commerce sites sell counterfeit DVDs, books, journals, electronics. Yet Chinese
authorities take no action. At most, warning given to e-commerce website to remove such
listing. But then it re-appears within few hours.
In USA, Hollywood producers 25% income comes from box office and 75% from (genuine)
home-DVD sales. But from China, his 90% income comes from box office and only 10%
from genuine DVD sales. It proves China is the mother of all video piracy activities in
the world.
Why Russia in Priority Watch list of Special 301 report?
Russia is home to many piracy websites that distribute video, mp3, software and games
throughout the world illegally.
Russia also produces counterfeit medicine, car parts and electronics. Even exports to Eastern
Europe. (Not much to Asia because China already captured the market here!)
Russian e-commerce sites sell counterfeit products.

So far, only two cases resulted in conviction. But In both cases, accused went to higher court
and their sentence was suspended. In other words, Russian courts = Taarikh pe Taarikh.
And Russian pirates = as awesome as Indian politicians.
Hardly any raids conducted on pirates. Government agencies seem apathetic to protect IPR of
foreign companies.
Pakistan also in Priority Watch List in 2014- Mainly for video piracy.
Mock Questions for CSAT
Q1. Apart from India, which of the following countries have been put under Priority
watch list under USAs Special 301 report for the year 2014?
China
Pakistan
Russia
Correct choice
Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them
Q2. Which of the following countries have been put under Priority Foreign country list
under USAs Special 301 report for the year 2014?
Syria
North Korea
Iran
Correct choice
Only 1 and 2

Only 2 and 3
Only 1 and 3
None of them
Q3. One of the reasons why USTR included India under the priority watchlist in its
Special 301 report:
Indian laws permit ever greening of patents by domestic companies but deny the same to
Foreign companies.
India is the biggest supplier of counterfeit medicines to USA.
Sun Pharmaceuticals plant in Punjab was violating quality guidelines set by US-FDA.
None of above
Q4. One of the reasons why USTR included India under the priority watchlist in its
Special 301 report:
India did not support USA sponsored resolutions to condemn Syria and South Sudan in
United Nations general assembly.
India imposed anti-dumping duty on American solar panels.
Indias drug price control order gives exemption to certain domestically manufactured
medicines.
None of above
Q5. Which of the following statements are correct?
US Trade Act permits their government to impose sanctions on Priority foreign countries
listed under USTRs special 301 report.
Apart from India, Ukraine is also in priority foreign country list
Despite Ukraine being a Priority foreign country under Special 301 report, USA has
deferred sanctions on Ukraine, given the ongoing Crimean crisis.
Correct choice

Only 1 and 2
Only 2 and 3
Only 1 and 3
All of them
Q6.Correct statements about Compulsory License in Patent law?
It is an Authorization given to a third party to manufacture a patented invention at cheaper
price, without original patent owners willful consent.
As such, Compulsory License is not permitted under Indian Patents Act, but SC has
permitted it in Nexvar case for larger public interest.
Both A and B
Neither A nor B
Q7. Incorrect statements about Ever Greening in Patent law?
It is a practice of extending patents on pharmaceutical products by making slight changes to a
drug molecule.
Indian Patent Act prohibits ever greening but permits compulsory licensing.
Both A and B
Neither A nor B
Q8. Indian Patent Controller General gave compulsory license to NATCO to manufacture
Bayer pharmas anti-cancer drug Nexvar, because _____.
Bayer pharma was evergreening the patent of the drug molecule.
Bayer pharma had forged clinical trial records to obtain the patent.
Bayer pharma had obtained patent only for Germany and not for India.
Bayer pharma was selling patented drug at an unaffordable price to Indian patients.
Q9. Novartis lost patent right over its anti-cancer drug Glivec in India, because ____.

Novartis was selling imported drug at an unaffordable price to Indian patients.

Novartis had forged clinical trial records to obtain the patent.
Novartis had obtained patent only for Switzerland and not for India.
Novartis was evergreening the patent of the drug molecule.
Mock question for Mains
General Studies Paper II: Syllabus topic Effect of policies of developing countries on Indias
interests.
Q.What is special 301 report? Why is India kept in the Priority Watch list, in this report?
(200
words)
Ans.
Under Section 301 of US Trade Act, the office of US Trade representative (USTR) prepares a
list of countries whose Intellectual property right regime (IPR) has negative impact on American
products. Among such countries, special attention given to two groups:
Priority watch list countries
Priority foreign countries
USA uses carrot policy to incentivize IPR reforms sticks policy to force IPR reforms e.g.
e.g. funding, training, capacity building, bilateral putting trade sanctions, approaching WTO
exchanges and conferences.
dispute resolution.
For 2014, India is kept in Priority watchlist because:
Doesnt have separate Anti-Camcording law to combat video piracy.
Doesnt have special takedown procedures against piracy websites
Indian Patents Act prohibits Ever greening of patents. As a result, Novartis lost patent of
anti-cancer drug Glivec. USTR interprets it as an obstacle to IPR of MNCs.
India permitted a domestic company NATCO to produce cheaper generic version of Bayer
Pharmas patented drug Nexvar. USTR interprets such Compulsory licensing as an
obstacle to IPR of MNCs.
Indias Drug Price Control Order 2013, permits certain Indian manufactured drugs to be sold
at higher price. Same relaxation not given to foreign companies.

India is the top supplier of counterfeit pharmaceuticals to USA. Patent holder lose billions of
dollar each year due to counterfeit / pirated products.
Thus, Indias IPR regime is not conductive for innovation by foreigners- at least in USTRs
interpretation, hence put under Priority watch list of Special 301 report. ~230 words
Correct Answers for MCQs
D- All of them as awesome as India as far as IPR regime goes.
D none of them even have enough skilled human resources to manufacture counterfeit
goods or do online piracy. Only Ukraine in priority foreign country list.
USTR official reason is B. biggest supplier of fake medicine
USTR official reason is C. drug price control.
C only 1 and 3 right.
Only A correct. B is wrong because Indian Patent Act provides for Compulsory licensing
under Section 84
D Neither A nor B is incorrect.
D compulsory license was given because Bayer was not selling its invention to public at
reasonable and affordable price.
D Novartis ever greening
Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.
Tags: Rajtanil, World-Economy
[Current] April-Week4-P1: Polity, Culture, Environment: Vulture Restaurant, Avalanche
Mitigation, Mangar Forest, Supreme Court on Sting operation, Mattu Gulla
Current Affairs Weekly6 months Ago36 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue

Polity
P1: Supreme Court guidelines on Sting Operation
Timeline/Sequence of Events
SC observation on Sting-Ops
Law commission Observations
P2: NR MadhavaMenon Panel for Sarkari Ads
Environment Biodiversity (EnB)
E1: Avalanche Mitigation
E2: Jackfruit =Food security in Climate change
E3: Mattu gulla & Vengeri brinjals
States with Highest # of GI tags
Brinjal / Eggplant Factoids:
E4: Vulture restaurant
E5: More birds: Short eared Owl & Houbura Bustard
E6: Mangar forest NCZ
E7: Rainbow warrior 3
Mock MCQs
Correct Answers for MCQs
Prologue
Civil service exam notification will come on 31 st May 2014, Saturday. UPSC has officially
announced this information on their website.
Anyways, continuing from where we had left: Current affairs April Week4 (23rd to 30th)

Polity, Environment, Culture: Youre here.

Economy: Done
International Relations (IR)/ Diplomacy: Done.
General studies paper 3
List the factors responsible for avalanches and suggest measures for disaster mitigation for it.
(200 words)
Interview
Ex-CM Arvind Kejriwal had asked Delhi juntaa to carry sting operation against corrupt
officials. Do we need a law to immunize such freelance Sting operators from
persecution? What is Supreme courts observation on sting operations?
Some NGO filled a PIL against government ads, and Supreme court setup a panel. Dont you
think Supreme court is doing judicial overreach by setting up panels, taskforces and
SITs for everything? Doesnt the executive have a prerogative to do anything?
Both in 2013 and 2014, Greenpeace activists were arrested for protesting against Russia.
Whats is their problem exactly?
What is the controversy surrounding Padmanbhaswami temple? What has Supreme court
done in this regard?
Polity
Supreme Court verdict on two important matters- sting operations and government
advertisements.
P1: Supreme Court guidelines on Sting Operation
Should come as handy fodder points in GS-4 Ethics paper case studies related to Sting
operations.
Timeline/Sequence of Events
Basically Taarikh pe Taarikh, 2003s matter dragged all the way to 2014.

2003: Environment Minister of Dilip Singh Judev caught on tape accepting bribe for clearing
mining projects in Orissa, Chhattisgarh and Jharkhand. CBI lodged FIR against the
businessman and journalist who carried this sting operation. Charge: they abetted
corruption. Hence punishable upto five years under prevention of corruption act.
2008: Sting operators went to Delhi High court, but HC refused to grant relief. So they went
to Supreme Court.
2014, April: Supreme Court said Delhi HC is right. FIR is right. CBI is free to investigate
against you for abetting corruption.
SC observation on Sting-Ops
US-law enforcement agencies conduct sting operation against drug lords, to gather
evidences. Theyre admissible in (their) court.
In US, UK and Canada sting operations are usually deemed a legal method of law
enforcement. But with safeguards. They differentiate between Sting operations vs
Entrapment.
But in India, Sting operation is NOT a legal method of law enforcement. (CBI/ACB cannot
randomly lay traps against any public servant, just to check whether he is honest or not.
Such sting operation or honey-trapping is legally forbidden. Recall the [Ethics] article
series)
We dont have law for regulating sting ops = possible to abuse the process.
Therefore, sting operator (journalist) deserves no blanket immunity from criminal
prosecution, Even if the sting was done for larger public good.
If person does sting op. for monetary reasons to expose another person, he shall be
prosecuted under Prevention of Corruption Act for abetment or under Section 120 IPC
depending on nature of sting op.
But a journalist / citizen who has no remote benefits from the sting ops- they cannot be
prosecuted.
We need to look @motive of the person conducting the sting-ops. If he has stakes in the
process, if he has monetary gains from exposing others, then he can be prosecuted as
well.

Sometimes sting operator lures the person to commit crime, assuring full secrecy &
cooperation, and then secretly records him committing the crime. This raises legal, moral
and ethical questions about the sting operator because the person may not have
committed the crime / bribery if he was not given enticement (by the Sting operator
journalist).
Law commission Observations
Without Sting ops, juntaa would have never learnt about many economic and political scams.
But in recent times, Sting ops done to increase the channel viewership, settle political scores,
harm corporate interests and malign reputation.
This shakes peoples faith in the institutions and create an atmosphere of cynicism.
Reality shows that expose infidelity of a spouse, boyfriend = against the right to privacy
(Article 21). They serve no public interest. Article 19s Press freedom is not meant for
this type of nonsense.
Cable Television Networks (Regulation) Act, 1995 says no program can be transmitted if it
contains obscene / defamatory content.
P2: NR MadhavaMenon Panel for Sarkari Ads
NGOs PIL (2003)
Government advertisements even carry photos of ruling party leaders (SoniaG), try to create
impression as if she is responsible for public goods.
When ruling party uses public money to gain personal political mileage in government ads, it
violates following articles
Article 14. [Equality before the law];
Article 21 because public money diverted for partisan use. This is one type of arbitrary
executive action that undermines liberty of the citizens.
Therefore citizen can seek remedy in Supreme Court, under Article 32.
Governments reply

NGO petitioner is exaggerating the matter. After all 60% of the Govt. ads deal with job
recruitment, public tender and notices.
Ads are not done for personal publicity but for informing junta about sarkari schemes named
after *you know who*.
That way, junta can make informed decisions.
Supreme Court order (2014)
Canada, Australia have official policy to regulate Govt. ads and prevent their abuse.
But India doesnt have such policy
Hence we form Committee under N.R.Madhava Menon (former Director, National Judicial
Academy, Bhopal) to study best practices across the world and recommend guidelines for
sarkaari-ads.
Committee to give report within three months.
Environment Biodiversity (EnB)
E1: Avalanche Mitigation
Topic in news because in April 2014, ~dozen Nepali Sherpa died during an avalanche in Mt.
Everest base camp. This lead to protests and other sherpas refusing to guide the tourists.
Q. List the factors responsible for avalanches and suggest disaster mitigation measures.
(200 words)
Rapid downslope movement of snow, rocks and debris- is called Avalanche.
Large avalanches have speed of upto 200kmph, resulting in massive destruction of forests,
highways, houses and power lines.
Factors
Whenever gravitational force exceed the mechanical strength of snow cover- avalanche occurs.
This happens by triggers- natural and artificial
Natural triggers

Artificial triggers

Skiing and mountaineering

Large mass of fresh snowfall

Deforestation

blizzards

loud sounds

Global Warming, Rain

Shouts

earthquakes

machine noise
sonic booms

Mitigation in Avalanche prone Areas

Dont construct buildings for winter occupancy
Avoid construction of power lines, highways and railroads. It they must be constructed then
design for minimum impact.
It is possible to forecast avalanche, by studying Snow deposition data, heat input, slope
angle.
Use Remote sensing technology & satellite imagery to obtain such data.
Only allow agriculture and recreational activities during summer and spring.
Use explosives to create smaller, controlled avalanches and thus avoid building up of snow
for large unpredictable destructive avalanches.
Quick response teams (QRT) from local administration and NDRF, with standard Avalanche
equipment and devices like GPS, Radio Beacons, shovels and sniffer dogs.
~180 words.
Already done:
Snow and Avalanche Study Establishment (SASE) : forecasts snow avalanches
Border road organization (BRO): keeps the highway paths clear after avalanches- particularly
the Rohtang Pass and Baralachla Pass.
Factoids:

Most Avalanche victims die of suffocation (lack of oxygen) and not hypothermia (extreme
cold temperature)
After 35 minutes, the survival chance is 30%
After two hours, survival change is ~0%
Therefore self-rescue or companion rescue is vital, because NDRF / sarkaari help will take
hours to reach.
E2: Jackfruit =Food security in Climate change
Why in news?
Earlier IPCC and World bank warned that climate change will create food shortage & even
subsequent wars.
Researchers say Jackfruit will be useful alternative to wheat, corn and other staple crops,
during such food shortage.
Hence we need to prepare MCQ worthy info. about Jackfruit.
Originated from India, Then Spread to South Asian countries
Jackfruit is a member of mulberry family.
Largest edible fruit, Also called poor mans fruit
Can survive drought, frost, pest, high temperature.
Jackfruit is a dicot plant.
Jackfruit is unisexual plant.
Unisexual
Bisexual
Jackfruit, Corn, watermelon, Papaya, Cucumber. mustard, hibiscus, rose, petunia
Jackfruit is an example of multiple fruit. Other examples: pineapple, mulberry and fig.
Because ovary of multiple flowers are fused together & produce the giant fruit.
One tree of Jackfruit bears 150-250 fruits. Each weighing between 5 to 45 kilos.

Even seeds can be eaten.

High calories but no cholesterol or saturated fat
Rich in potassium, calcium, and iron.
Mostly Grown in South western states of India, coastal areas, Himalayan foothills.
Climate requirement: Humid tropical
Soil: Sandy, stony, laterite soil

E3: Mattu gulla & Vengeri brinjals

Although not directly food security but these two can also aid because theyre resistant to
adverse weather and climate.
Besides, Hindu has been talking about these brinjal varieties every once in a while so they
become automatically sacred and important anyways.

Mattu Gulla
Vengeri Brinjal
Mattu village, Udipi district, Karnataka
Kerala
GI tag

Farmers dont grow it during monsoon because they want to Can be grown throughout year as
use the farm for paddy (rice) cultivation.
backyard vegetable
green color
Purple color
round ball shape
Cylindrical shape
Disease resistance
same
Northern Indias brinjal = violet-pink color, egg shape. They are badane variety.
States with Highest # of GI tags
(As of May 2014)
Karnataka
32
Tamil Nadu
24
Andhra Pradesh 22
Kerala
20
Brinjal / Eggplant Factoids:
Potato, tomato and brinjal are three different species but all belong to the same genus. (NCERT
Class11)
Fruit/vegetable? Native to
South America, Andes mountain range.Portuguese introduced it in
Potato vegetable
India.
Tomato Fruit*
South & central America
Brinjal Fruit*
India, Sri Lanka
*Fruit comes from Ovaries part and contains seed.
Synonyms: Brinjal = India ; Eggplant = USA; Aubergine =UK.
Brinjal is a transplanted vegetable. Seeds grown in nursery, then seedlings translated in main
field.
Low calorie, high potassium

Kidney patients should avoid too much Brinjal because it contains oxalates. Oxalates can
crystalize in body fluids.
Can grow on all types of soil but prefers loam / clay.
When brinjal is cut, its white portion becomes brown. Because its phenolic enzyme gets
oxidized in presence of air.
E4: Vulture restaurant

Vulture = scavengers, feed on dead carcasses

But farmers use diclofenac drug on cattle.

Diclofenac is a non-steroidal anti-inflammatory drug (NSAID)

Vultures eat such dead cattle => its kidney fails due to diclofenac => IUCN status: Critically
Endangered
Therefore activists have started Vulture restaurants in Africa, India, Pakistan and Nepal.
Farmers send dead cattle, staff examines then carcass left in open field for vultures.
This is an example of in-situ conservation. (Ex-situ conservation example would be = put
vultures in Cage then feed them carcass.)
Similar restaurants even Tasmanian Devil by Australia. (IUCN Endangered)
Why in news? Because Gadchiroli forest department also started a vulture restaurant.
E5: More birds: Short eared Owl & Houbura Bustard
Short eared owl
IUCN Status: Least Concern.
It has fluffy feathers on head that look like ears, hence the name.
Hunt by day and night. Other owls dont.
Crepuscular: active during twilight.
Unlike other owl species, short-eared owls hunt by night and day
Found in grasslands, wetlands of most continents.
Threat: ground nest = dogs, fox etc.
Houbara Bustard
IUCN status Vulnerable
Mind it: Great Indian Bustard = Critically Endangered while Houbara is just vulnerable.
Habitat: arid, semi-desert. In Western India, Pak and Afghanistan.

Threat: Men hunt them as Game in W.Asia. Its meat considered an aphrodisiac (Sex tonic).
Recently a Saudi prince alone killed ~2000 of them within ~20 days vacation
E6: Mangar forest NCZ
Mangar Forest: Last Natural forest near Delhi. Just 50 kms
Mangar Bani forest grove = considered sacred by local Gujjars.
Only forest in Haryana that has Dhau trees.
Timeline / Sequence of Events
2005: The National Capital Region Planning Board (NCRPB) declared it as natural
conservation zone (NCZ), prohibiting construction and tourism.
2012: revised guidelines to allow tourism, parks and resorts construction.
2014: PMO asked NCRPB to take approval from MoEF before moving ahead with this new
plan.
Why protect Mangar forest?
recently Black eagle spotted. only once in last 100 years.
Dhak trees only found here in the entire Haryana.
Ground water recharge for Gurgaon and Faidabad
Habitat for leopards coming from Sariska, Rajasthan.
Buffer for Asola sanctuary. (this is the only wildlife sanctuary under Delhi Government.).
Mind it: Sultanpur Bird Sanctuary belongs to Haryana government.
E7: Rainbow warrior 3

Arctic has 13% of worlds oil and 30% of gas. But until now, thick ice cover=difficult to
extract.
Global warming= ice became thin, Russian PSU Gazprom began drilling oil in Barents Sea
in Arctic region.
April 2014, Gazprom sent first shipment of this artic oil to Netherland.
Greenpeace NGO sent a ship Rainbow warrior III to create rastaa roko against Russian
ship. They tried to stop Russain ship from unloading oil at Rotterdam port.
But Netherland police has arrested Greenpeace activists, hence in news.
Greenpeace argument:
Arctic ecosystem too fragile, hence offshore oil drilling bad. But Putin gave permission to
Gazprome without any EIA.
Europe should not buy oil from Russia, because it strengthens Putins hand, he uses the
money to destabilize the region (Ukraine).
Mock MCQs

Q1.Find correct statements about jackfruit

Jackfruit is native to Indonesia.
Jackfruit is an example of Dicot plant
Jackfruit is a multiple fruit.
Jackfruit is a bisexual flowering species.
Answer choice
only 1 and 2
only 2 and 3
only 1, 2 and 4
None.
Q2. Correct statements about Potato, Tomato and Brinjal
All three belong to same genus
Atleast two of them native to India
Atleast two of them are fruits
Correct statements
only 1 and 2
only 1 and 3
only 2 and 3.
None
Q3. Which of the following state has highest number of GI registrations?
Tamil Nadu
Andhra Pradesh

Karnataka
Uttar Pradesh
Q4. Find Incorrect statements
There are no sacred groves in Aravalli hills.
There are no wildlife sanctuaries under Delhi Government.
Both A and B
Neither A no B
Q5. Which of the following is/are examples of in-situ conservation?
Government sets up vulture restaurants.
Government sets up captive breeding facilities for vultures.
Both A and B
Neither A nor B
Q6. Which of the following will help in Vulture conservation program?
Ban meloxicam and diclofenac.
Vasectomy program for feral dogs.
Ban the burial of dead animals
Correct choices
Only 1 and 2
Only 1 and 3
Only 2 and 3
Only 3
Q7. In his travelogues, Ibn Batuttas travelogues mentions

that He had gifted White slaves to Mohd.Tughlaq

that He was attacked by Hindu bandits
Riches of Padmanabhswami temple.
Answer
only 3
Only 1 and 2
Only 2 and 3
All
Q8. Which of the following can cause avalanches?
Shouting
sonic booms
Earthquakes
Answer choice
Only 3
Only 1 and 3
Only 2 and 3
All of them
Correct Answers for MCQs
Opt B. Only 2 and 3 correct
Opt B. only 1 and 3 correct.
C. Karnataka
C.Both A and B incorrect.

Only A
C only 2 and 3.
1 is wrong because Meloxicam is a safe alternative to diclofenac. Government needs
to encourage use of Meloxicam.
2 is right because Controlling Feral dog population helps in two ways. (i) Less
competition for food among scavengers. (ii) Often farmers poison the dead cattle
carcass to kill those dogs to prevent spread of rabies and dog bites to children. But
vultures too accidently eat such poisoned carcasses and die. Therefore controlling
feral dog population also aids in vulture conservation. Source: Nepals official
plan.
3 is right. Nepals official plan noted that burial of dead cattle / pets causes declined
food resource and hence declined population of vultures.
Some candidate may drag the logic that non-burial of diclofenac treated cattle = lead
to vulture decline. But from the previous official answerkeys, weve seen that
UPSC examiners usually dont drag the logic that far e.g. RBI as Bankers Bank
C.All three correct if you dig google books. UPSC had been asking this type of questions in
last CDS and CSAT. But cost: benefit is terrible, and youre not required to tick 100/100
to get selected. So dont push luck in negative marking.
D all of them can cause avalanches, as per NDMA manual.
Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far.
Tags: Rajtanil
[Current] April-Week4-P2: Economy- WTO SPS Agreement EU Ban on Indian Mango,
HDFC Bank Foreign Investment FII problem, SC guideline on Cheque bouncing, RBIs
Public Key infrastructure (PKI)
Current Affairs Weekly6 months Ago90 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue

E1: [WTO SPS Agreement] EU Ban on Indian Mangoes

Mango Ban: Timeline / Sequence of Events
Indias stand on EU Mango Ban
Anti-Arguments
Preventive measures against Fruit Fly
Sample question for Mains
E2: [Banking] HDFC Bank vs FIPB: Foreign investment Problem
Foreign investment in banking sector
What is HDFCs problem?
RBIs interpretation
HDFCs own interpretation
E3: [Banking] Cheque Bouncing: SC guideline for faster case trial
E4: [Banking] RBI- Public Key Infrastructure in Online Banking
Timeline: Payment system in India
What is Digital signature / E-Signature?
What is Public Key Infrastructure (PKI)?
Prologue
Lord Curzon was to upload notification on 17th May but hasnt done so, therefore Delhis
rumor market became active with variety of conspiracy theories.
But irrespective of what changes UPSC makes in the notification / syllabus youll have to
prepare history, geography, science, economy, polity and IR anyways. So stop the
timepass and focus on the core areas of general studies. Just ~three months left before
prelims.

Same way, Staff selection (SSC) aspirants you should be practicing maths, reasoning,
English and GA instead of wasting time speculating the exam dates and whether Modi
will reduce the vacancies or not.
Mary Kom doesnt stop practicing just but there are three vacancies- Gold, Silver and Bronze;
Nor she waits until the match date and venue are announced.
Anyways coming to the topic at hand: Current affairs April Week4 (23rd to 30th)
Polity, History, Culture, Environment: Coming soon
Economy: youre here.
International Relations (IR)/ Diplomacy: Done.
General studies paper 2:
What is SPS agreement? Is EU justified in banning Indian Alphonso under SPS agreement?
(200 words)
Interview:
Can we say EU Ban on Indian mangoes is an example of non-tariff barrier in WTO? What is
the permanent solution to Mango fruitfly problem?
Whats the present limit for foreign investment in Indian banks?
Why is FIPB delaying the permission to HDFC for additional foreign investment?
Why does Cheque bouncing case fall under Negotiable instrument act?
Can you name any other Negotiable instruments apart from Cheques?
Are you aware of the new guidelines of Supreme Court, for quick disposal for cheque
bouncing cases?
What is digital signature? What is public key infrastructure (PKI)? Why does RBI panel
recommend they should be compulsory for all banks?
E1: [WTO SPS Agreement] EU Ban on Indian Mangoes

All over the world, Governments impose barriers to protect domestic industries and prevent entry
of foreign players. These trade barriers are of two types:
Tariff
Barrier

If US President Obama imposes 56% custom duty on Indian Cars.

If Obama tries to restrict entry of Indian cars without imposing heavy taxes on Indian
cars, for example

Non-Tariff
Barrier

Subsidies: Giving free electricity to Detroit car manufacturers. OR If American

residents buy American made cars, Obama administration will pay 50% of
your vehicle insurance premium, and so on.
Public Procurement: Making rule that only American companies can fillup
tender for new sarkaari cars.
Other obstacles like not giving custom clearance quickly. Putting quota on each
exporter country and so on.

World Trade organization (WTO) aims to reduce such tariff and non-tariff barriers to
international trade.
Countries sign WTO agreements, if any country violates, WTO can impose penalty.
As such WTO has ~five dozen agreements but main three are
GATT: General Agreement on Tariffs and trade
1.Goods
GATS: General Agreement on Trade in Services
2.Services
3.Intellectual property TRIPS: Trade-Related Aspects of Intellectual Property Rights
By the way, what if China starts manufacturing cheap cars with poor breaks, bad steering and
carcinogenic paint. Can Obama ban such dangerous foreign products? Does WTO permit that?
Yes, WTO made two special agreements for safety:
Non-food products Technical Barriers to Trade Agreement (TBT)
Sanitary and Phytosanitary Measures Agreement (SPS)
Food Products
Since our topic is EUs Mango ban, lets focus on SPS agreement.
Under SPS provisions, WTOs Member states can impose trade barrier on foreign goods, to
protect their own human, plant, animal lives from harmful food additives, pests and microbes.

Mango Ban: Timeline / Sequence of Events

March 2014: EU Plant healthcare Committee found fruit flies in ~200 Indian shipments.
April 2014: EU Trade Commissioner temporarily banned Alphonso mangoes, eggplants, taro
plant, bitter gourd and snake gourd.
This temporary ban extends from 1st May 2014 upto 31st December 2015.
UK traders and opposition parties have opposed this ban. Because England= large south
Asian diaspora customers that enjoys Indian mangoes. Business more than 10 million
euros.
Although Pakistani mango farmers are delighted. They hope to cash this opportunity by
exporting their inferior Mango varieties to EU. (In past, even Paki mangoes were banned
because their ban has been lifted.)
Indias stand on EU Mango Ban
India has threatened to drag EU to WTO. Because
From 1st April 2014, Indian Government made it compulsory that only APEDA certified
food processing / packing houses can export fruits/vegetables from India.
Only after thorough inspection, testing and labelling by trained personnel at such houses, the
mango (or any other fruit/veggies) can be exported.
So there is no danger of fruit flies any more. (from 1st April onwards)
We had also informed EUs SPS Committee about our new strict export rule, in advance.
But still EU officials acted in haste. Yes theyve found 200 shipments with fruitflies. But
those boxes were exported way back in 2013. Weve reformed and strengthened our
quality measures since then.
So, there was no imminent danger anymore. It wasnt going to cause some deadly virus
outbreak.
Yes SPS agreement says countries can impose ban on product that can harm humans, plants
or animals. BUT at the same time SPS also gives leniency to developing countries (like
India)- gives them more time frame for adopting quality measures when there is no
imminent danger.

Thus, EU has blatantly violated WTOs SPS agreement and India is justified in complainng to
WTO.
Anti-Arguments
Some experts / apologists say India shouldnt drag EU to WTO because
Itll have negative consequences in the ongoing talks for India-EU Free trade agreement that
is pending since 2007.
India-EU relations will turn sour.
Indias Mango export to EU is barely 5% of Indias total mango export to world. Hardly any
money or business is lost.
This is good news for Indian customers because more mangoes in local market = cheaper
price.
But these jholachhap columnists dont understand its not about money but brand-image and
negative Publicity. Itll reduce demand of Indian food products among health conscious
customers in USA, Canada even Middle East. Then our agriculture & fish export business will
be severely hurt, affecting the livelihood of crores of Indian farmers and fishermen.
Preventive measures against Fruit Fly
Agricultural & Processed Food Products Export Development Authority (APEDA) is a statutory
body under Commerce Ministry. It has prescribed following measures for mango exports:

Sex traps: On the mango trees, hang plastic bowls with chemicals like Methyle
Euginol/Cuelure. Male Fruitflies mistake it for pheromones of female fly. Hence they
come and get trapped. Benefit: Mangoes dont get contaminated with
pesticides/chemicals. Otherwise EU-walla will again reject on pesticide/cancer angle.
Hot bath: dipping mangoes in 52 Degree hot water with Sodium Hypo Chloride (= bleach,
acts as sanitizer) for 2-3 minutes. This kills any larvae of fruitfly within mango pulp.
Sort these mangoes into three grades. Each mango should be placed in polystyrene netted
sleeves to prevent bruising and subsequent microbial growth.
From 1st April 2014 onwards, fruits and vegetables can be exported from India ONLY if theyre
packed in an APEDA certified packing house.
More about shortcoming / obstacles ot Indian food processing / exports, HACCP compliance etc
are covered in Mrunal.org/Economy under [Food processing] Section.
Sample question for Mains

Q. What is SPS agreement? Is EU justified in banning Indian Alphonso under SPS

agreement? (200 words)
Meaning
Sanitary and Phytosanitary Measures (SPS) is an agreement under WTO to permit member
states
to protect their plant, animal and human lives
from harmful food additives, microbes and pests,
By putting reasonable trade restrictions on foreign goods.
Safeguards under SPS
Member states have to harmonize their national food safety standards with WHO-FAOs
codex standards.
Member can choose higher quality standards than CODEX, only on scientific grounds.
Aggrieved countries can also approach WTOs dispute settlement mechanism.
Developing countries can request SPS Committee to grant additional time for for
compliance.
EU Ban:
In April 2014, EU Trade commissioner imposed a temporary ban on Indian Alphonso and 4
vegetables upto December 2015, citing fruit fly contamination in previous shipments.
Ban is unjustified because:
The said fruitfly contaminated shipments were sent in 2013.
As per new rule by Government of India, from 1st April 2014, only APEDA certified food
packing houses can export fruits & vegetables from India.
We had notified EUs SPS Committee about this reform, in advance.
There was no imminent danger of spread of deadly disease or pest attack anymore.

India, as a developing country deserves longer time frame to comply with international food
standards.
Yet, EUs trade commissioner has acted in haste and arbitrary manner to impose this ban. It goes
against the letter and spirit of SPS agreement.
~230 words
E2: [Banking] HDFC Bank vs FIPB: Foreign investment Problem
Timeline: HDFCs rise
Hasmukhbhai Parekh opens Housing Development Finance Corporation Limited (HDFC
1977 ltd.) as a non-banking financial company (NBFC) to provide home loans. At present ~75%
of HDFC ltd.s shares are owned by foreign institutional investors (FII).
1993 HDFC get license to open Bank (for more on new bank licenses, click me)
1994 HDFC Bank starts operation.
Foreign investment in banking sector
via automatic route
Upto
49%
Upto
74%

meaning, dont need permission from Foreign Investment Promotion Board

(FIPB)
with government approval
meaning, after permission from FIPB

What is HDFCs problem?

HDFC ltd. (Parekh-walli non-banking financial company) = they own ~22% shares of HDFC
Bank.
But 75% shares of this HDFC ltd (NBFC) itself owned by FIIs.
RBI says since majority of HDFC ltd. Shared owned by foreigners => HDFC ltd (Parekhwalli NBFC) itself is a foreign company.
So, when HDFC ltd (NBFC) owns 22% in HDFC Bank = that also counts as Foreign
investment.
RBIs interpretation
Shareholding In HDFC Bank
I. HDFC ltd (NBFC)
22%
52%
Foreign holding II. Other FIIs
Total Foreign investment (I + II) 74%
Indian investors
26%
Desi holding

HDFC Banks total shares

100%

Rajan: Since Foreign holding in HDFC Bank is already 74%, we cannot allow any
foreigner/NRI/PIO to purchase any more shares of HDFC bank. Otherwise itll cross the 74%
limit.
HDFCs own interpretation
Shareholding In HDFC Bank
Foreign holding FIIs
52%
HDFC ltd. (NBFC) 22%
Desi holding
Desi investors
26%
HDFC Banks total shares
100%
HDFC Bank says:
In 2009, government made new rule about downstream investment i.e. if one desi company
owned by foreigners, and it invests in another desi company = that counts as foreign
investment.
It is true that HDFC ltd (NBFC) is owned by foreign investors (75%)
It is true that HDFC ltd (NBFC) owns 22% shares in HDFC Bank.
But HDFC (NBFC) bought HDFC Banks shares BEFORE 2009. (i.e. way back in
1993-94 when RBI Gave license to open HDFC bank)
HDFC

Rajan

Hence RBI/FIPB cannot apply that Downstream foreign investment rule in

retrospective manner to things happened before 2009!
This is like if tomorrow Government makes a new law to give death penalty for all
liquor mafias- that doesnt mean a bootlegger caught in 2005 will also get hanged!
Youre right, Laws / rules cannot be applied retrospectively. But thats only for
criminal matters.
This is a civil /commercial matter.
No point in arguing with you. Let FIPB decide!

HDFC

At present 52% of my banks share owned by foreigners (as per my logic).

Now I want FIPBs permission to raise foreign holding to 67.55%. FIPB must give

this permission because Im within the 74% limit.

Ive asked law ministrys opinion. But given the model code of conduct (and usual policy
FIPB
paralysis) theyve not given their opinion yet. Hence file pending.
E3: [Banking] Cheque Bouncing: SC guideline for faster case trial
Negotiable instrument are the alternative equivalent of fiat money. (Rupee, Dollar Yen, Yuan
etc.)
Indian laws recognize three type of Negotiable instruments:
Cheques
Promissory Notes (*Mind the term, its not participatory notes)
Bill of exchange
Government enacted Negotiable instrument Act, to safeguard the parties in this game e.g
Buyer-seller, payee-drawer and banks.
But legal loopholes in this act = taarikh pe taarikh = 40 lakh cheque bouncing cases stuck in
the courts right now.
To fix this problem, Supreme Court issued new guidelines (April 2014):
Once magistrate receives complaint, he shall issue summons to accused person on the same
day.
Summon should be issued via both post + email.
Once the accused person appears in court, Magistrate should give him option pay the
amount + reasonable interest and case will be disposed immediately on the same day.
If he doesnt comply, then start proceedings with day to day trial.
Finish cross-examination of witnesses within three months.
Victims and witnesses dont need to appear in court every time. They can send reply via
affidavit.
E4: [Banking] RBI- Public Key Infrastructure in Online Banking

Jan 2014: Rajan forms an expert group under Anil Kumar Sharma for Public Key
infrastructure in Banking Payment system.
April 2014: gave report hence in news.
Timeline: Payment system in India
Magnetic Ink Character Recognition (MICR) technology introduced, to prevent
cheque frauds.
1986

MICR code is written at bottom of cheque with special ink that contains
magnetisable particles
Based on Damle Committee recommendations.
Electronic Clearing Service (ECS) introduced. This provides automatic credit and debit
for certain services. example

1994

Automatic money transfer from companys bank account => salary / pension in
employees bank account, dividend in shareholders bank account.
Income tax refunds

2004
2005
2008
2008,
Oct.
2009

2010

2013

Automatic payment of monthly phone bills, electricity bills and insurance premium
from your bank account at prefixed date.
Real Time Gross Settlement (RTGS) System for online money transfer above Rs.2
lakhs.
National Electronic Funds Transfer (NEFT) System. by the way NEFT vs RTGS already
explained click me
National Electronic Clearing Service (NECS) to look after ECS system.
Mobile banking system
Pre-paid Payment Systems permitted (like Airtel money). Already explained click me
Cheque Truncation System (CTS) introduced. Physical movement of Cheque, no
longer required. Already explained click me
CTS uses the PKI authentication.
Government also amended Negotiable Instrument Act, to give legal validity to CTS
system.
White label ATMs. Already explained click me

What is Digital signature / E-Signature?

can be used to authenticate the identity of message sender
cannot be imitated by someone else;
Theyre legally recognized under IT Act 2000
IT Act also provides Non-repudiation of digitally signed message. Meaning sender cannot
deny at a later time that he has not signed it.
What is Public Key Infrastructure (PKI)?

It is a combination of
Technology = hardware + software

Stakeholders = certificate authority, verifying authority, buyer, seller, bank, client etc.
Legal components = agreements between above stakeholders
Processes, practices, policies
PKI binds the identity of the private key with the corresponding public key.
PKI makes it difficult for hackers to commit frauds.
Uses PKI
Real-Time Gross Settlement (RTGS)

Doesnt use PKI

National Electronic Fund Transfer (NEFT)

CBLO: Collaterised
Obligation

Borrowing

and

Lending

MICR Clearing
ECS

Forex Clearing
Government Securities Clearing
Cheque Truncation System (CTS)
Value wise most transaction done here
Less

Less
Volume wise, max. transaction done
here

RBI panel has suggested that all online transaction must have two-factor authentication with
Public Key infrastructure.
For corporate clients/RTGS etc.
Username password AND

For aam junta

Username password AND

Digital signature with Public key infrastructure (PKI)

One Time password (OTP) via

SMS

OR
OR
give them EMV like card with Chip and PIN.
(EMV=Europay, MasterCard and Visa) Because it
also has PKI and two factor authentication (chip +
PIN).

Username password AND

Aadhar

enabled

biometric

Panel recommended, implement this in three stages: short

term, medium And long term.

authentication
Banks already have this feature in
netbanking
account.
Panel
recommended that it should
support
as
many
popular
browsers & many mobile
devices as possible

Digital Signature Certificate (DSCs) should be issued

for five year. (right now just three years validity)
Reduce the application cost of DSC

Simplify the renewal process for DSC

Fine-tune the KYC process for DSC
@those aspiring to become Bank specialist Officer (IT) they should read the entire report
thoroughly.
Its
available
on
www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=759
It contains details of various cyber-attacks, preventive measures in SBI and ICICI netbanking
and all other technical aspects of online money transactions.
Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far
[Economy] Nokia Tax Row: Royalty Payment, Chennai Plant, Finland DTAA, Microsoft
Takeover, UNICITRAL, TDS, Withholding Tax explained
Economy6 months Ago80 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
Royalties: Drain of wealth
#1: Quantitative restriction on royalties
#2: Tax on Royalties paid

Royalties: TDS (Tax deduction at source)

What Happened in Nokia Royalty case?
Timeline: Nokia Royalty Case
Nokias excuses
Nokias current legal-strategy
UNCITRAL / Nokia BIPA
JayaLalithas problem?
Mock Questions
Prologue
Update I had to make some fixes in the site theme. IF the site is not displayed properly in your
browser

clear
cache
(control+shift+del
key
together).
for more troubleshoot click me
UPSC (Mains) General Studies Paper 2:
Write a note on the structure and functions of UNCITRAL.
Interview questions:
What do you know about the tax controversy of Nokias Chennai plant?
How is Nokias tax dispute different or similar to Vodafone-Hutch controversy?
Will this affect takeover by Microsoft?
Royalties: Drain of wealth
Whenever MNCs setup subsidiary companies in 3rd world countries, they keep design patents
in first world Headquarter in USA, UK etc.
Example, in case of Nokia, all design patents, software patents are held by main boss
company in Finland.

So, whenever Nokias subsidiary companies in India, Pakistan or Somalia manufacture any
handset=> royalty is paid to its parent company in Finland.
After subtracting such royalty payment, staff salary, lightbill, office rent, raw material cost
etc.=> profit left.
Higher the royalty=less profit for subsidiary (Indian) company= less corporate tax for Indian
government and dividend to Indian shareholders (if any.)
To prevent this Drain of wealth through royalties, Indian Government uses two methods:
Quantitative restriction on royalties
tax on foreign parent that earns royalties
Lets check them one by one:
#1: Quantitative restriction on royalties
ProductSales
on

occurring

Indian soil
Exported abroad

maximum royalty that can be paid to foreign parent

if foreign company gave us technology if
no
transfer
transfer
5%
1%
8%
2%

technology

In other words, if foreign company transfers technology to its Indian subsidiary- we allow
them to take back more royalties as a gesture of goodwill.
Maximum 8% means if one Nokia phone sells for Rs.1000, then Nokia(India) can sent upto
80 rupees to its Finland parent, as royalty payment.
#2: Tax on Royalties paid
When Indian subsidiary sends royalty ca$h to foreign parent, The foreign parent company has to
pay (direct) tax on it. (because this is one type of income earned from India.)
TDS on Royalties varies as per DTAA
Royalty tax
company
if India has Double taxation avoidance agreement (DTAA) with
that country

on

foreign

10% (In case of Finland)

If India doesnt have DTAA with that country

15-20% (in case of USA)

25%

Royalties: TDS (Tax deduction at source)

Tax on Royalty Payment (in theory)

Lets assume Nokia India sold handsets worth xyz crore and has to pay Rs.25,000 crore to
Finland parent as royalty for the software patents in those mobile phones.

Tax on Royalty Payment (in Real Life / TDS)

IN THEORY

Finland Company receives Rs.25,000

crore.
Finland Company sends 10% royalty
tax to Income tax department of
India. (=Rs.2500 crore)

IN REAL LIFE (TDS)

Nokias Indian company withholds the Rs.2500
crore royalty tax. Sends it directly to our
Income Tax department.
The remaining 25000 minus 2500 = Rs.22,500
crore rupees are sent to Finland parent as
royalty payments.
This TDS- tax deduction at source. Americans
call it tax withholding.
Newspapers use these terms interchangeablysometimes TDS, sometimes withholding tax.

What Happened in Nokia Royalty case?

Nokia Finland owns the patent for mobile software used in Nokia GSM handsets.

Between 2006 to 2013, Nokia India sent 5 billion Dollars (=~25,000 crore rupees) to its
Finland parent as royalty payment for that software.
Obviously Income tax department deserves 10% TDS on this =Rs.2500 crores. (as per
DTAA with Finland.)
Numbers not important. Hindu says 2080, Hindu sometimes even says 21000 crore (i.e.
approx. total amount sent). DeccanChronicle says Rs.25,000 crore dispute and 10% =
2500 as TDS liability. I pick 2500 because its easy to remember.
Anyways who needs to pay this amount? Nokia India. (recall the TDS concept we just
learned, sender has to withhold money.)
But Nokia India didnt cut TDS. Nokia India didnt pay our Income Tax department Rs.2500
crores as tax on royalty payment. hence this controversy.
Since Nokia did not pay taxes on time, IT department puts 100% penalty + interest rate= now
more than 6500 crore needs to be paid.(as of Dec 2013)
Timeline: Nokia Royalty Case
1995 Nokia begins operations in India. Sets up offices in Mumbai, Chennai etc.
Nokia starts Factory in Tamilnadus SriPerumbudur SEZ near Chennai. (hence
2006
newspapers call it Chennai factory or Chennai plant.)
2010 India and Finland signs Double Taxation avoidance agreement (DTAA)
Income tax officials raid Nokias factory in SriPerumbudur SEZ.
2013,
Jan.

They demand Rs.2080 crore as tax on royalty payments.

Nokia did not comply.
IT department freezes the bank accounts of Nokia

2013,
Sept.

2013,
Dec.

2014,

Microsoft agrees to buy Nokia for 7.2 billion USD.

Delhi HC freezes Nokia Indias assets, in other words they cannot be transferred to
Microsoft. But Nokia India comes with Jugaad, well keep Chennai plant out
of the Microsoft deal
IT department digs deeper and finds another TDS fraud in copyrights payments.
Total liability: 6500 in software royalty + 4500 in copyright payment to another
corp. of Nokia
Nokia sends letter to Mohan for resolving this matter under Finland India Bilateral

May

Investment Treaty (BIT).

Nokias excuses
yes, India-Finland DTAA permits 10% TDS on Royalties
BUT Mobile software are not listed in that Royalty definition under DTAA.
For us, mobile software is a raw material, so how can you demand tax on money paid to
purchase it from Finland?
Since our factory is in SEZ, we dont need to cut TDS on royalty payments to Finland.
At max well pay you Rs.3000 crores to resolve this tax dispute.
Weve also played role in Indias growth story. We gave employment to more than 30,000
Indians. In Chennai plant alone, 8000 people work, 20% of them women. (Again
numbers not important, sometimes Hindu says 8000, sometimes it says 6500.)
Weve invested more than 650 million Euros in India. We are not a scam company.
But IF you continue treating MNC giants like Nokia and Vodafone as scam companies, then
itll reduce incoming FDI to India.
Nokias current legal-strategy
If Nokias Chennai plant is auctioned = itll barely fetch Rs.2000-3000 crores.
But If Nokia honestly pays TDS (penalty+ interest) to IT Dept= more than 6500 crores.
Therefore, Nokia is prepared for the worst possible scenario: let the case continue in court
taarikh pe taarikh. If we are defeated, well only lose the Chennai factory. Still our 6500
MINUS 3000 = 3500 crores will be saved.
Therefore, Nokia has kept Chennai plant outside the Microsoft Deal.
Meaning, Microsoft will takeover Nokias all factories, offices, staff BUT not Chennai plant.
Nokia has even offered voluntary retirement scheme (VRS) to Chennai factory workers.
Theyll also get entrepreneurship training under Nokias Bridge program.

Chennai plant will continue production as Subcontracter / outsourced factory. Theyll

supply handsets to Microsoft owned Nokia brand.
So, even if Nokia is defeated in Indian court, Microsoft will have no legal liabilities, no
obligation to give the tax money.
And finally, some miracle (or suitcase-baazi) could happen and newly elected government
may give relief to Nokia, and whole matter will be put in cold storage.
UNCITRAL
May 2014: Nokia sends letter to Mohan for resolving this royalty tax matter under Finland India
Bilateral Investment Treaty (BIT). This BIT treaty provides that if dispute cannot be resolved in
three months after notice THEN
Option Party can approach local court => we already learned Nokias present strategy here. (aka
A
Taarikh pe Taarikh, at max auction the factory). AND/OR
Option
Party can approach for arbitration under UNCITRAL.
B
UNCITRAL is also in news because of Vodafones never ending legal disputes. Therefore,
UNCITRAL becomes important for UPSC general studies paper II last point of syllabus
Important International institutions, agencies and fora- their structure, mandate.
Mock Question
Q. Write a note on the structure and functions of UNCITRAL (200 words)
United Nations Commission on International trade law is the core legal body of UN setup in late
60s. (1966)
Structure:
60 members elected from UNGA (General Assembly)
Term: six years. Half of the members expire every three years.
Election Quotas to ensure geographical representation from entire world.
India is also a member. Its term will expire in 2016.

Unlike IMF, here the Members dont have to bear additional financial burden. UNCITRALs
budget is entirely paid by UN General Assembly.
Even Non-member states, international / regional bodies can participate
Annual sessions @New York and Vienna alternatively.
Decision by consensus rather than voting.
Functions
Reduce legal obstacles, facilitate smooth flow of international trade and investment
harmonize trade laws of all countries
Drafts model trade laws on import-export, international payment, e-commerce, international
arbitration, public procurement etc. Helps member countries to adopt them.
Coordination with other international, regional and national bodies for trade laws.
Drafts rules for arbitration for dispute resolution. Parties (companies or states) can use these
rules as guiding principles to settle their disputes.
Other than that, UNCITRAL itself doesnt appoint arbitrators or private judges to sort any
disputes
~210 words.
Side notes
Quota system in UNCITRAL election
GEOGRAPHICAL REGION QUOTA SEATS
Africa
14
Asia
14
East Europe
8
West Europe
14
Latin America + Caribbean
10
Total membership
60
JayaLalithas problem?

Jayalalitha demands tax saying Nokia didnot furnish Export PROOFs!

So far we learned whats Chindus problem (= Nokia India did not cut TDS on Royalty
payment to Finland) => UNCITRAL.
But even Tamilnadu government has sent a separate notice to Nokia India.
So, whats Jayalalthas problem? Ans. VAT evasion.
We learned that Nokias factory is located in Sri Perumbudur Special economic zones (SEZ).
In SEZ, factories are given tax relief for a first few years.
Accordingly, Nokia was given following tax reliefs / conessions:
(Central) TAX IF HANDSETS ARE EXPORTED
0%
Excise duty
Export Duty 1%
But these tax reliefs apply ONLY if Nokia Indias handsets are exported abroad.
If theyre sold in domestic Indian market, then Tamilnadu government can demand Value
Added tax (VAT).
Jayalathia

(TN Nokia India has not given us proof that all handsets were exported. We

government)

Nokias excuse

believe many were sold in domestic Indian market. Therefore we demand

~2400 crores as VAT
document proofs = nearly 16 lakh pages. Obviously we cant send them all.
Better send your officials to inspect it in our office!

April 2014, Madras High court order

Nokia India will have to deposit 10% =240 crores.
Tamilnadu commercial tax department have to inspect records and pass order.
GK
NOKIA CEO from Manipal university.
Rajiv Suri
Satya Nadella Microsoft CEO. By the way, his father was an IAS.
capital of Finland
Helsinki
Mock Questions
Q1. Which of the following is an illustration of Tax withholding Norms?
After receiving royalties from its Indian subsidiary, Nokia Finland sends tax proceeds to
Indian government.
While selling ABC Company to Vodafone London, Hutch Hongkong withholds xyz crores as
Capital gains tax (CGT) and pays to Indian government.
While buying ABC Company from Hutch Hongkong, Vodafone London withholds xyz
crores as Capital gains tax (CGT) and pays to Indian government.
None of above
Q2. Why are Nokia India and Income tax department involved in a court litigation just
before takeover by Microsoft?
Because while selling the company to Microsoft, Nokia did not pay capital gains tax (CGT)
to IT Department of India.
Because while buying the company from Nokia, Microsoft did not withhold capital gains tax
(CGT) for IT department of India.

Because Nokia Finland sold its shares of Nokia India ltd. to Microsoft via a post office
company in Cayman Islands to evade capital gains tax (CGT) from IT department of
India.
None of Above.
Q3. Consider following statements about the Tax on Royalties paid to foreign entities.
It is an example of Indirect Tax
In real life, it is collected from the receiver and not from the sender.
It is 100% exempted in case of royalties sent to countries that have DTAA agreement with
India.
It is 100% exempted in case of royalties sent to NRI authors that pay regular Income tax in
India.
Answer choices
only 1 and 3
only 2 and 3
Only 1, 3 and 4.
None
Q4. Correct statements about United Nations Commission on International trade law.
All the member states of IMF are ex-officio members of UNCITRAL.
Indias membership to UNCITRAL expired in January 2014.
Only sovereign states can approach UNCITRAL for arbitration.
None of above.
Q5. When Nokia or Vodafone says we want arbitration under UNCITRAL to settle our
tax dispute with Indian government, it means ___.
We want our case to be heard at UNCITRALs international trade law court located in
Vienna.

We want UNCITRAL appointed Foreign Judge to resolve the dispute.

We want UNCITRALs executive body to settle this case.
None of above
Official answers
C: the buyer has to withhold tax & pay to government. TDS=tax withholding norm.
D: None of above. Nokia = royalty TDS matter
D: None. All statements are wrong
D: None of above
D: None of above
Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.
Tags: Rajtanil, taxation
[Water Diplomacy] Teesta River Agreement between India & Bangladesh: Why
Controversy?
Diplomacy6 months Ago87 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
As such an old topic but came in news against because Mamatas election rallies in India &
Protests in Bangladesh.
Geography of Teesta River
Teesta originates from Kangse Glacier, Charamu Lake in Sikkim, most of its catchment area
lies in India.
It enters Bangladesh, joins Brahmaputra, and ends in Bay of Bengal.
After Brahmapurta, Ganges and Meghna; Teesta is the 4th largest river in Bangladesh.
Sequence of events:

W.Bengal government began constructing a barrage and catchment area on Teesta.

Bangladesh opposed, because their rice bowl Rangpur region depends on Teesta.
To pacify them, India began negotiation.
1983: India- Bangladesh concluded and ad-hoc agreement on Teesta
Who gets how much?
Water share from Teesta
India
39%
Bangladesh 36%
Unallocated 25%
But problem unsolved, because Bangladesh wanted equal sharing.
1984: Joint-river commission appointed to collect hydrological data & suggest a rational
method for water sharing.
Commission recommended increasing Bangladeshs share, on logic that W.Bengals barrage
is very close to Bangladesh border (~90 km). Some water will penetrate underground and
benefit both countries anyways.
New formula proposed
Water share from Teesta
India
42.5%
Bangladesh 37.5%
Unallocated 20% for the river (otherwise nothing will reach to Bay of Bengal!)
2010:

Bangladesh: Teesta Watersharing to Terrorism

Jamaat-ud-Dawah (JuD) calls Pakistani poliitcal establishment to stop Indians from
constructing dams on rivers flowing to Pakistan, raise the matter in UN, asked civil
society(!) to support this cause. And even suggested that Kashmiri Mujahideen should be
given a Free hand to destroy Bhakra dam!
In other words, Hafiz Saeed is using economy/farmers plight as a new propaganda tool to
promote terrorism. (May be because Paki youth is also hooked up on facebook &
whatsapp, hard to get new recruits by preaching religious extremism!)
Sep. 2011
Mohan plans to visit Bangladesh, sign accords for Teesta and Land border disputes.
He invited five state CM that share border with Bangladesh, to join him in this visit.

But on eleventh hour, W.Bengal CM Mamata Banerjee dropped from this visit to protest
against Teesta sharing agreement.
W.Bengal CM Mamathas position:
This treaty will dry out Northern region of W.Bengal & hurt Indian farmers.
1998: Bangladeshs largest irrigation project Teesta Barrage began. With help of this
water, Bangladeshi farmers already have three cropping seasons per year.
So, they dont deserve any more water.
At that time, Trinmool Congress was the single largest coalition partner in UPA, therefore
Mohan had to drop the Teesta accord. He could only sign Land boundary agreement with
Bangladesh.
^Ok this is upto 2011. why is the topic in news in 2014?
March 2014
BIMSTEC summit held at Nay Pyi Taw in Myanmar. Mohan assured Haseena about early
conclusion of Teesta accord.
April 2014
On Indian side

On Bangladeshi side
Terrorist Parties like Jamaat-e-Islami & their supporters
Mamatha tells voters to teach a
like Khalida Zia have started Dharna pradarshan in
lesson to Congies.
Dhakas Jantar Mantar.
Because otherwise next Congi
PM will sign Teesta accord
=
Northern
parts
of
W.Bengal will become dry,
water shortage for drinking
and irrigation.

Their claim India has reduced releasing water from

Teesta but Hasinas Secular Bangladesh Awami
League party is doing nothing to get fair share from
Teesta. Bangladeshi paddy farmers are suffering!
(Recall the same propaganda by Jamaat-ud-Dawah
(JuD) in Pakistan in 2010.

May 2014
Bangladesh PM Hasina says Indias central government (Mohan) was sincere, but Mamata
raised objections hence the deal could not be signed.
September 2014

Hasina will visit India. Irrespective of whether Teesta accord is signed or not- topic will keep
re-appearing in THEHINDU and hence will remain important for UPSC Mains-2014 &
Interview 2014.
Mock Question
Q.Early conclusion of Teesta accord is in the strategic interest of India. Elaborate. (200
words)

Teesta originates from Sikkim & joins Bramhaputra in Bangladesh. It is an important

irrigation source for paddy farmers on both sides.
In the 80s, India & Bangladesh signed ad-hoc agreement to share 39% & 36% of Teesta
water respectively.
Later, Joint river water commission was setup to collect hydrological data & suggest a
rational method for water sharing.
2011: New formula proposed- India & Bangladesh to get 42.5% and 37.5% respectively.
But due to opposition from West Bengal state government, and its CM being the single
largest coalition partner in UPA, this deal could not materialize during PM Manmohan
Singhs official visit to Bangladesh in 2011.
2014: Bangladeshi Extremist outfits like Jamaat-e-Islami have tied with Opposition leader
Khalida Zia. They began large scale protests & political mobilization against current PM
Sheikh Hasina, for her failure to carry out Teesta accord, hurting Paddy farmers &
selling their country to India.
In past, Jamaat-ud-Dawa & Hafiz Saeed have used similar propaganda tactics to promote
hatred among Pakistanis against Indian dams.

PM Hasina is an important ally of India. She has adopted zero tolerance policy against AntiIndian terror outfits. Only under her regime, HuJI terror leaders were arrested, ULFA was
banned & its chief Paresh Barua was awarded death penalty.
Without such liberal-secular regimes in neighboring countries, India cannot become terrorfree.
Therefore India needs to take proactive steps for early conclusion of Teesta agreement, to
show itself as a good neighbor and prevent resurgence of extremist parties in
neighborhood.
~265
words.
(counting
a,
an,
&,
the
etc.)
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-b4Modi, Rajtanil
[Freedom Struggle]
Consequences

Suhrawardy-Sarat

Bose

agreement,

Bengal

Pact,

Features,

History6 months Ago76 Comments

For Indian History, I recommend
Spectrum- Rajiv Ahir

Events leading to Bengal Pact

Bengal Pact: Features
Why Bengal Pact failed?
Events leading to Bengal Pact
Hussain Shaheed Suhrawardy, then CM of Bengal supported the Two nation theory and
Pakistan. But He feared India will get Bengals industrialized regions and Calcutta, while
(East) Pakistan will only get the poor-backward areas of Bengal.
Bengali Hindu leader Sarat Chandra Bose believed that division of Bengal between India and
Pakistan, will ruin its culture and economy.
But Since Hindus would not agree to a United Bengal joining Pakistan and Muslims would
not agree to a United Bengal joining India, therefore Suharawardy and Sarat Bose

decided to carve out a Sovereign nation United Bengal, free from both India and
Pakistan, and jointly run by both Hindus and Muslims.
They sought Gandhis help, Gandhi supported this idea in hope to counter Jinnahs two
nation theory. But maintained that all decisions for united Bengal should be taken on
mutual consent among Hindus and Muslims.
Therefore, Suharawardy and Sarat Bose drafted an agreement. This is known as Bengal Pact or
Suhrawardi-Sarat Bose agreement or Sarat Formula on 20th May 1947.

Bengal Pact: Features

Bengal would become an independent state
Bengals Constitution will be drafted by an assembly of 16 Muslims, 14 Hindus= 30
members.
Interim government with Muslim CM and Hindu Home minister, until this Constitution is
drafted.
Proportional representation of Hindus and Muslims in the legislature.
A candidate who wins majority votes of his own community and 25% votes of other
community, would be declared elected
Hindus (including Scheduled Caste Hindus) and Muslims will have equal share in military
and Police jobs.
Why Bengal Pact failed?

Assam CM Gopinath Bordoloi complained Mountbatten, if Bengal became a separate

country, Assam will be cutoff from India & Calcutta port. This will ruin Assams tea
business & economy.
Jinnah agreed to separate Bengal country IF Congress gave him WHOLE Punjab.
Obviously, Congress, Nehru and Patel opposed.
Shyamaprasad Mukharjees Hindu Mahasabha also started Bengali Hindu Homeland
Movement for creation of separate state for Bengali Hindus within Indian dominion.
Bengals Muslim league also backtracked, we agree to formation of Pakistan and Muslim
dominated Bengali areas joining (east) Pakistan. We have nothing to do with demand for
separate Bengal country made by Suharawardy and Sarat Bose.
Seeing no consensus among Congress and Muslim league for united Bengal, Lord
Mountbatten decided to partition Bengal between India and Pakistan.
Now, picture becomes clear that Calcutta will go to India. Chief Minister Suharawardy fears
that Hindu will kill him because of his involvement in Direct action Day. He runs away
to Dubai Dhaka, abandoning the plan of United Bengal nation and accepts to live under
Jinnahs (East) Pakistan (Where he would later become the Prime Minister.)
Now, Sarat Chandra Bose is isolated. He seeks Gandhis support
But Nehru and Patel requested Gandhi not to support Sarat Bose on this matter. Therefore,
Gandhi asked Sarat to abandon the idea of United Bengal nation.
And thus, Suhrawardi-Sarat Bose agreement = #EPICFAIL
Mock Question
(GS1) Q. Examine the events leading to Suharawardi-Sarat Bose agreement, why did it fail
to create United Bengal nation? (200 words)
Event leading to:
Muslim league leader and Bengal CM Suharawardi was in favour of creation of Pakistan, but
feared that rich areas of Bengal will go to India.
Congress leader Subhash Chandra Bose feared division of Bengal will ruin its economy and
culture.

Since neither Hindu nor Muslims would agree to a United Bengal joining either Pakistan
OR India respectively, the only solution was a United Bengal- free from India and
Pakistan.
Thus Suharawardi-Sarat Bose agreement / Bengal pact was signed in May 1947, with following
features
Bengal would become an independent state
Its Constitution will be drafted by a joint assembly of Hindus and Muslims.
Hindus and Muslims will get Proportional representation in legislature but equal share in
military and Police jobs.
Why failed?
Opposition from Assam that itd cut their link to Calcutta port and rest of India.
Jinnah accepted with caveats, But Congress and Hindu Mahasabha opposed vehemently.
June 1947: Given the lack of consensus, Mountbattens partition plan divided Bengal
between India and Pakistan. Both Congress and Muslim League accepted.
Suharawardi stepped down as CM, left for Dhaka.
Isolated Sarat Bose did not get support from Gandhi due to opposition from Nehru and Patel.
Thus, Suharawardi-Sarat Boses movement fizzed out and their dream for a United Bengal
nation
could
not
materialize.
~190
words
Ref:
Frontline May 2, 2014. Page 106.
Tushar Gandhis book Lets kill Gandhi, Chapter 10 A Lonesome Mahatma Page 300 to
304
Tags: Rajtanil
[Current] April-Week3-P2: Geography, Enviornment:
Committees, Critically Endangered Indian Birds

Biodiversity

Management

Current Affairs Weekly7 months Ago101 Comments

For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
E1: Biodiversity Management Committees
E2: 15 Indian birds globally endangered
Prologue
Current Affairs from April Week3 (16th to 22nd). Total three parts
History, Polity, Economy: Coming soon
Geography, Environment, Biodiversity (Youre here)
International Relations (IR)/ Diplomacy. Done click me
E1: Biodiversity Management Committees
Topic in news because EPW ran a story about it on 19th April 2014.
Q. Discuss the structure and functions of Biodiversity Management Committees under
Biodiversity Act 2002? Evaluate their success in India. (200 words)
Biological Diversity Act 2002 mandates all local bodies to setup Biodiversity Management
Committees (BMC).
Structure: One Chairperson, Six Members: 1/3rd of nominated should be women, SC/ST
reservation as per state demography.
Functions:
Preserve and promote local biodiversity- breeds of birds, animals and plants.
Prepare Peoples Biodiversity Register (PBR)- an Electronic database with inputs from
locals.
Maintain data medicinal plants/resources used by local Vaidhya (traditional healer).
Advice State & National Biodiversity Boards on matters related to local biodiversity.

Under Nagoya Protocol of Convention on Biodiversity (CBD), they can collect fees for
granting access to Biodiversity register to researchers and commercial companies.
Why limited success:
The legal/IPR status of PBR register is in grey area, leading to frivolous litigations.
For example, In Madhya Pradesh, Chindwara BMC filed a case against Coal India,
demanding profit sharing on the premise that coal is a biological resource.
In some states, Panchayati Raj Institutions (PRI) have refused to form BMCs fearing erosion
of their authority over minor forest produce.
State Forest departments, Forest traders & mining lobby dont cooperate with BMC for the
similar reason.
UNDP and UNEP have allotted separate funding for BMCs but money not utilized given the
administrative red-tapes in India.
Given these limited finance, decision making powers and non-cooperation from others, the
BMCs are reduced to mere data gathering bodies; and have failed to catalyze Sustainable
development in Rural India. (Except a few Cinderella stories and glorified case studies Yojana
and
Kurukshetra)
~230 words
E2: 15 Indian birds globally endangered
Topic in news because Hindu ran a story and UPSC has a nasty habit of asking MCQs related to
Endangeredness of xyz bird/animal.
Bengal
Florican

Critically
Endangered

Great
Indian Critically
Bustard
Endangered

Himalayan Terai (UP, Assam, Arunachal Pradesh

farmers destroy Grasslands and scrub forests
few birds in Kutch, Maharashtra, Deccan, Rajasthan,
Andhra, Karnataka.
Almost disappeared from Haryana, Punjab, Orissa, Uttar
Pradesh and Tamil Nadu
Mine workers lost jobs after closure of Gwalior mine=>
resorted o poaching in Ghatigaon sanctuary.

Egg collecting in Andhra and Karnataka

Bustards like monsoon crops Sorghum Millet etc but
now farmers grow cash crops- sugarcane, cotton etc
thanks to irrigation.
mining, quarrying, power projects
Eucalyptus, Juliflora etc exotic tree species by Forest
Department
Kutch and Rajasthan

Sociable
Lapwing

critically
endangered

Farmers destroy Grasslands and scrub forests = less moth

= less birds.
lay eggs on ground-nests. theyre destroyed by grazing
sheeps and goats.
hunting by nomadic tribes.
Eastern Ghat Andhra, South MP

Jerdons
Courser

critically
endangered

farmers destroy Grasslands and scrub forests

Habitat fragmentation by Telugu-Ganga Canal in
Cuddapah District of Andhra
Madhya Pradesh, Maharashtra, Odisha.
Central Indias deciduous forest

Forest Owlet

Critically
Endangered

fuel-fodder collection
tribal use their eggs, feathers, bones for drum making.
Agro-chemicals reduce insect, rodent population.
North East and Bangladesh

Spoon-billed Critically
Sandpiper Endangered

wetland destruction due to dams

foxes and dogs destroy their nests

Siberian Crane

Critically
Endangered

Migratory to Keoladeo sanctuary, Rajasthan.

Wetland destruction
North East India, Bhutan, Myanmar
White-bellied Critically
Heron
Endangered

wetland destruction for tea plantations

Poaching in Namdapha National park
forest fires, hydroelectric projects
also called Pondicherry

Red-headed
Vulture

Critically
Endangered

Gujarat, North East, Himalayan foothills

Diclofenac drug to animals=> dead animal eaten by
Vulture => vulture kidney fail by Diclofenac.
originally from Christmas island, Australia.

Christmas
Island
Frigate

Andaman and Nicobar islands

Critically
Endangered

overfishing + marine pollution in Andaman sea

Non-Native species yellow ants=> baby crabs killed
=> less food for frigate.
Gujarat, Rajasthan and Maharashtra

Lesser Florican Endangered

farmers destroy Grasslands and scrub forests
North Western India
Egyptian
Vulture

electrocution (by powerlines)

Endangered
collisions with wind turbines,
and ofcourse Diclofenac
Assam and Bihar.

Greater
Adjutant
(stork)

Endangered

Since they eat carcasses and small animals- people cut

the trees to get rid of them from societies and
colonies.
food chemicals in dumpsters

Masked
Finfoot

Endangered

North East India

(duck)

riverine destroyed for tea plantation

illegal felling of trees
dam construction- siltation
hunting eggs and chicks
Himalayas & North East

Wood Snipe

Vulnerable
Habitat destroyed for tea plantation & jhoom cultivation

Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far.
Tags: Rajtanil
[Judgement] Goa Illegal Iron Ore Mining, MB Shah Commission, CR Babu Panel
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
Sequences of events:
Government formed M.B.Shah Commission. To investigate illegal mining of iron &
manganese in 6 states.
2012: Shah gives report
Environment ministry temporarily suspended mining in Goa.
Supreme Court ordered ban on mining
SC formed panel under C.R.Babu, to suggest annual limit on iron ore extraction from Goa.
Now CR Babu gave interim report.
What are CR Babus interim recommendations?
Supreme court should lift the ban on iron ore mining in Goa.

BUT put restriction/cap- Max. 20 million tonnes per year.

Create permanent fund from mining companies profit. Use this cash to benefit of local junta.
Impose cess on mining activity.
Use this cess money to setup an ecological centre. This centre will monitor ecosystem in
mining areas.
setup mineral corporation. (in other words, let PSU extract ore, and prohibit private
companies)
Dont give new mining permission without adequate regulatory and technological measures.
Conduct study before settingup new plants of low-grade iron ore.
Why Illegal mining= bad?
Huge loss to state revenue due to illegal mining.
An increase in dust pollution, deforestation.
more health disorders
Landscape degraded, soil fertility declines, agricultural productivity lost.
Extensive degradation of landscape
Negative hydrological systems in the mining belt.
Development Vs. Environment: Similar issues
oil extraction near Virgunga nation park.this park is home of mountain gorillas
CONGO
(rare and endangered)
oil extraction near Lake Kivu (between Uganda and Kivu). This site is close to
UGANDA
river niles source.
equatorial forest cut down to make space for Palm oil cultivation. Even leading to
INDONESIA
forest fires.
Tags: Judgement, Rajtanil
[Rights Issue] Abolishing Manual Scavenging, Supreme Court verdict

polity7 months AgoLeave a Comment

For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
Q. Write a note on the legal initiatives taken to prohibit manual scavenging in recent times.
200 words.
In 2013, Parliament enacted a law to prohibit manual scavenging and for the rehabilitation of the
existing people in this inhumane work.
Salient Features of the Act:
D.M. to ensure no person employed in the manual scavenging within his jurisdiction.
Provide them photo-identity cards, loan subsidy and skill development training to start a new
vocation; scholarship for children and housing for the families.
Make a list of dry latrine and demolish them in time bound manner.
Local governance bodies need to construct latrines within 3 years
In case of Violation: 1 year imprisonment + Rs.50,000 fine.
Central, state monitoring authority and vigilance commission (under D.M.) to monitor
implementation of the act.
In 2014, Supreme Court issued following Mandamus to Union and States that:
Even in emergency, No one should be forced to clean sewers without safety gear.
Compensation: Rs. 10 lakh to families of persons died in sewerage work- from 1993
onwards.
Railways should end manual scavenging on the tracks, within timebound framework.
Provide dignified livelihood to women engaged in this trade.
Donot create red-tapes, provide these victims their legitimate dues.
~191 words.

Side notes:
The practice of manual scavenging is a violation of the rights guaranteed under Art.14, 17, 21
and 47
But still, today ~12 lakh people in this work, 95% of them Dalits.
Even Railways, PSUs, Army and military engineering works organizations (informally)
employ Manual scavengers
1989 National ST/ST finance and development corporation.
National scheme for rehabilitation of Manual scavengers.
1992
2003: CAG notes that despite spending 600 cr. in this, no visible progress made.
1993 National Commission for Safai Karmachari
Dry latrine prohibition Act. (Because Dry latrines have to be manually cleaned. So if there
1993
are no dry laterines, then there is no need for manual scavengers)
1997 Above act finally implemented. (But only in a few states).
MANDAMUS writ petition was filed by Safai Karamchari Andolan (Civil society org.)
2003
they demanded dry latrine + manual scavenging = violation of 14, 17, 21 and 23
2013
Government enacted the law. (that we discussed in answer)
March: SC delivered verdict on that Mandamus writ (of 2003). Chief Justice P.
2014
Sathasivam himself headed the bench.
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
Tags: Rajtanil, Rights-Issues
[Elections] Indelible Ink, Registered Party, Star Campaigner, Deposit Amount, RPA
Section 126, 130
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
P1: RPA Section 126-A and 130: Modis Selfi
P2: Indelible ink: Principle

P3: Booth Officer

P4: Benefits of registered political party
P5: Election Deposit Lost
P1: RPA Section 126-A and 130: Modis Selfi
Topic important because
after voting in Ahmedabad, Narendra Modi gave a press conference while brandishing his
election symbol. He even took a selfi on his mobile phone and published it twitter. For
this act, Modi was booked RPA.
Therefore, topic becomes important for UPSC General Studies Mains paper II syllabus:
Salient features of the Representation of Peoples Act (RPA)

Representation of Peoples act 1951 provisions

Section 126
48 hours before conclusion of polls, No person
can
hold public meetings / processions
display/ publishing any election matter on
TV, radio, theatrical performance,
musical shows etc.

Section 130
Prohibits following activities near polling
booth (100 meters distance)
canvassing : meaning asking public for
favorable vote
asking people not to vote for a particular
candidate
Displaying
any
sign/symbol.

election

related

Non-cognizable offence i.e. Police cannot arrest Cognizable offence- police can arrest without
without court permission
court permission
2 years or fine or both
only fine upto Rs.250
Congress demanded that Modi be booked
Modi was booked under this section
under this section as well and immediately
arrested.
After this incident, Ahmedabad Crime branch investigated and sent a report to EC.
IndiaTV(!) said crime branch gave clean chit to Modi because press conference happened
100m outside the polling area hence no violation done. Police yet to file any chargesheet.
Sample Question: Under representation of peoples act
Canvassing near the polling booth is a non-cognizable offense.
No person can publicize election matter through TV, radio etc. 72 hours before the
conclusion of polls.
Both A and B
Neither A nor B
Mains (GS2) Question: List the salient features of Section 126 and 130 of the Representation of
Peoples act 1951. 200 words.
P2: Indelible ink: Principle
Indelible= cannot be removed.
Chemical: silver nitrate. 5 ml vial can mark 350 voters.
Principle:
Silver nitrate is colorless soluble salt.
When it is put on skin, Silver nitrate reacts with the salt present on skin
Forms silver chloride. (a metallic salt)
in the meantime, solvent alcohol evaporates in air.

Silver chloride is not soluble in water, and clings to your skin.

It cannot be washed off with soap, water, alchol, nail polish removal etc.
You must wait for few weeks until dead skin cells fall off.
Production?
Factory: Mysore Paint and Warnish ltd. (public sector company). only supplier.
Where? left forefinger of voter => any other finger of left hand=> right forefinger=> right
hand any other finger
if no fingers=> left arm or right arm.
Apart from India- Philippines, Indonesia, Mali etc also use it.
Chemical used: silver nitrate
which stains the skin on exposure to ultraviolet light, leaving a mark that is impossible to
wash off removed only as external skin cells are replaced
It may also contain a solvent such as alcohol to allow for faster drying, especially when used
with dipping bottles,
It may also contain a biocide to ensure bacteria arent transferred from voter to voter.
In India, ink dries up in 60 seconds and remain for few months
P3: Booth Officer
He is the Representative of Election Commission at the Grass-Root Level.
Appointed as per provisions of Representation of People Act, 1950.
From amongst the officers of the Govt. /Semi Govt. /Local Bodies.
He is the custodian of EVM @ polling booth.
Responsible for distributing voter identification slips to people. (Previously work done by
political parties=complaints.)
Helps citizen get voter cards.

Keeps electoral rolls updated- removes duplicate entries.

P4: Benefits of registered political party
can accept donations (but government company cannot give election fund)
gets first preference to pick symbol (Independent candidate cannot)
Need only one proposer while filling nomination form
Gets one copy of electoral rolls free. (in general election)
Gets two copies of electoral rolls free (when rolls are revised)
Can broadcast/telecast facilities over Akashvani/Doordarshan during general elections.
Can nominate Star Campaigners during General Elections.
Star Campaigners
Travel expenses of star campaigners are not to be accounted for in the election expense accounts
of candidates of their party.
party
National / state Un-recognized party
Can have how many star campaigners? 40
20
Eligibility conditions
Meet any one of the following conditions:
State party
3% seats in leg. Assembly, (minimum 3)

National Party
Minimum 2% seats in Lok Sabha (11)From atleast
three different states

Won 1 LS seat for every 25 LS seats in the

6% votes in four states (+4 seats in Lok Sabha)
state
Polled minimum 8% votes during
Enjoys state party status in 4 states or more.
(national/state) election
Got 6% votes (+ 1 Lok Sabha OR two
leg.assembly seats)

Must fullfill these conditions for all subsequent Lokshabha or State elections. Else, they lose
their status.
Present status: 2014 (Before modi came into
power)
National Parties
6
47
State Parties
1563
Unrecognized Parties
1616
Total Registered Parties
P5: Election Deposit
Deposit amount for Lok Sabha
elections
Category
Deposit Amt (Rs.)
Gen/OBC
25,000
SC/ST
12,500
If the candidate fails to get a minimum of one-sixth of the total valid votes polled=> deposit
taken away, sent to treasury.
Mock Questions
Q1. Correct statements about Voter verifiable paper audit trail (VVPAT)
It generates paper slip containing serial number and individual votes-directly at State
Election Commissions headquarter for the purpose of cross-verification.
First successful trial was done during last assembly elections in New Delhi
Both A and B
Neither A nor B
Q2. Name of the chemical compound used in Indelible Ink Marker Pens during Elections
and Pulse-Polio Campaigns.
Lead Acetate
Silver Nitrate

Chromium Sulphate
Zink Bromide
Q3. Why is Silver nitrate used in Indelible ink?
it directly penetrates inside skin pores
When it comes in contact of skin, it forms a metallic salt that cannot be washed off.
It forms an insoluble dye when exposed to air and Sunlight.
None of Above.
Q4. Incorrect statements about Star campaigners in an election?
Only national parties such as Congress and BJP, can nominated star campaigners.
Travel expenses of star campaigners are not to be accounted for in the election expense
accounts of candidates of their party.
All Star campaigners are eligible to get minimum Y category security cover.
Answer choices
only 1 and 2
only 2 and 3
only 1 and 3
None of them
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
Tags: Elections, Rajtanil
[Human rights] Rwanda Genocide, Rohingya Migrants & Chagos People
Diplomacy7 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi

D1: Rwanda Genocide & French involvement

D2: Rohingya illegal migrants in India
D3: Chagos people: Rehabilitation
D1: Rwanda Genocide & French involvement
(Interview Q.) What do you know about Rwanda Genocide? Why has France decided not
to participate in its remembrance event?
Rwanda is a landlocked country in central Africa
Its Capital is Kigali
Population composition: Hutus majority, Tutsi Minority.

Events leading to Genocide

Originally Rwanda was German colony.
Post
WW1

1959
1962

But after defeat of Germany in WW1, it was transferred to Belgium.

Belgium favoured Tutsi over Hutus- divide and rule.
Hutu revolution, lot of Tutsi forced to flee country. Later form a rebel group called RPF
(Rwandan Patriotic Front).
Rwanda gained independence Hutu dominate government.

1992

Tutsi rebels invaded Rwanda from Uganda.Ceasefire agreement between Rwandan

govt. and RPF. Transition govt. formed, now Hutu (majority) extremist angry, they
want a pure Hutu state.

Late
1992

Tension increased between Hutus (majority) vs and Tutsi (Minority)

The (Hutu) president of Rwanda shot dead. Civil war erupts.

1994

April 6 to July 18: Hutu extremist (Interahamwe) try to eliminate entire Tutsi
population.

~8 lakh people killed in this genocide.

Tutsi also retaliated, the war ended when Tutsi rebels defeated Hutu militia, took control over
Rwanda and forced Hutus to flee to Congo as refugee.

World leaders turned blind eye

France, Belgium, USA and UN kept silence on the genocide.

Many countries refused to acknowledge it as a genocide, or putting any sanctions /

condemnation against the Rwanda government.
UN Security Council delayed sending UN peace keeping force in Rwanda (UNAMIR).
UN approved French intervention in Rwanda for humanisation purpose. But French forces
helped some of the genocide plotters to escape.
Verdict
1995: International Criminal Tribunal for Rwanda (ICTR) @Tanzania beings trial.
2008: 3 Rwandan military officers convicted for plotting genocide
French Connection
France maintained close diplomatic ties with Hutu dominated govt. ever since they gained
independence in 62.
During 1994s civil war, France sent forces only after it felt that Tutsi rebels (minority) will
defeat the Hutu militia (Majority)
France saved many Hutu plotters of Genocide, even gave them shelter/asylum in France

Some even blame that France was actively knew and helped Hutus to plot this genocide.
Remembrance event
1994 = Genocide happened, therefore 2014 = 20th anniversary.
In April 2014, The remembrance ceremony was held
but Rwandas President (Paul Kagame) barred French Ambassador from participating.
Rwandan President accuses that French were involved in planning the genocide, therefore
have no moral right to participate in this remembrance event.
In retaliation, France also cancelled visit of his Justice Minister to Rwanda.
Earlier, Vice President of India gave a speech at WW-I seminar. He mentioned that the
outcomes of WWI still haunts the world even today. This is one such example. Genocide was
the extreme outcome of the hatred brewed between Hutu & Tutsi by the imperial powers during
& after WW1.

D2: Rohingya illegal migrants in India

Q. Examine the problem Rohingya migrant influx in India and suggest remedies. [100
words]
Rohingya Muslims are illegally migrating to India via Bangladesh, due to on-going tussle with
Buddhist in their native land, Rakhine in Myanmar. However, Indian authorities cannot sent
them back because neither Myanmar or Bangladesh willing to recognizes them.
Some of these migrants involved with Lashkar-e-Toiba & other militant groups active in
Chittagong hills in Bangladesh, who to use the plight of Rohingyas to increase hostility
among India, Bangladesh and Myanmar.
LeT even created an outfit Difa-E-Muslman in Myanmar for this.
Suggestions:
Rohingya migrants in India need to be segregated, rehabilitated.
Indian authorities should negotiate the issue with Myanmar for their possible resettlement.
India should also ask UN Human rights council to intervene.
India should firmly spell that no state should evade its responsibility of giving protection and
equal
rights
to
its
minority
population.

~130

D3: Chagos people: Rehabilitation

words.

Chagos Island archipelago = ~70 islands between Madives and Maurititus (Indian ocean)
Diego Garcia=largest island of Chagos Archipelago.
Chagos Islands are under British Overseas territories. (other examples Falkland Islands and
Gibraltar.)
Chagossian islands are coral islands with rich biodiversity. British declared them as worlds
largest Marine reserve in 2010.
Back in 70s, UK had evicted local tribes to make room for US military base in Diego Garcia.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-Bodies-World, Rajtanil
[Judgement] Mullaperiyar dam controversy, Why doesnt Kerala want Tamilnadu to raise
dam height?
polity7 months AgoLeave a Comment

For Indian Polity, I recommend

M.Laxmikanth: Indian Polity :
Gist of the matter is just three points
Tamilnadu operates the dam in Kerala. wants to increase water level in it.
Kerala worries that dam will get destroyed anytime soon due to old age or earthquake. Hence
enacted a law to decrease water level in it.
Supreme court says Kerala law is wrong, Tamilnadu is right.
What is MullaperyarDam?
Type: a masonry gravity dam.
River: confluence of Periyar river and Mullayar river
place: Thekkady, Kerala. The dam site is in Kerala but is leased to TN
Provides irrigation to South Tamil Nadu (~2 lakh acres)
Periyar river originates from Ananamalai Hills and Joins sea near Ernakulam
TN has right to utilise and maintain the dam.

Timeline: of the Mullaperiyar dam:

The British (Madras presidency) built Mullaperiyar dam with a lease agreement with
1886
Kingdom of Travancore for 999 years.
1970 Governments of Kerala and Tamilnadu ratified this agreement.
Why controversy:
In mid-70s, Kerala became worried about leakage from the dam and wanted Tamilnadu to
repair it.
Kerala govt. communicated with union.
Union government directed Tamilnadu state government to
Repair this dam.
Keep water level in the dam at 145 feet.
Now, Union believed there is no longer any danger to the structure.

2006: SC allowed Tamilandu to raise water height to 152 feet after strengthening the dam.
(Total height of the dam is 176 feet).
But Kerala passed a law the Kerala Irrigation and Water Conservation (Amendment) Act,
2006, to prevent the neighboring State (TN) from raising the water level beyond 136 feet.
Tamilnadu challenged Keralas dam height law in Supreme court.

Keralas stand
Tamilnadus stand
if Mullaperiyar dam gets destroyed, it will also
damage its Idduki dam down the course
Without raising water level in this dam,
Idduki is the largest source of hydroelectricity in
we cannot sustain our agriculture and
Kerala
drinking water requirement.
The broken Mullaperiyar dam can also damage
Periyar National park and Periyar tiger reserve.
this 119 year old dam poses danger to life and Weve done adequate work to strengthen
property nearly 4 million people downstream
the dam structure.
There was a minor earthquake near dam site. Infact, Tremors were very minor. No danger to
we want to reduce water level further to 120 feet.
dam.
2010: Kerala demanded that entire dam be dismantled Disagreed. For itll take lot time to setup
and we construct a new, stronger dam. (Kerala was new dam, what about the farm-irrigation
ready to pay entire expense)
in the meantime?

2010: Justice Anand Committee says dam is safe. Mullaperiyar dam poses no danger to idduki
dam.
May 2014: Supreme Court order
Kerala dam Law of 2006 is unconstitutional and void.
Because Mullaperiyar is a dispute between two states. In such disputes, one state legislature
cannot unilaterally enact law in its own favor.
Besides, in 2006 we had allowed Tamilandu to raise water height. By enacting g this law,
Kerala is interfering with our judicial function.
Permitted Tamilnadu to increase water level upto 142 feet. (present ~136ft)
June 2014:
Union government decided to setup a Committee to supervise this water rising.
Kerala planning to file a review petition in SC.
Kerala assembly requested President of India to refer the matter to the Supreme Court under
Article 143
Mock Questions
Q1. Consider following statements about Mullaperiyar dam
its built on the Mullaperiyar river which originates from Annamallai hills
At present, Tamilnadu owns and operates the dam
Maharaja of Travancore had built this dam by taking a lease from Madras presidency.
The incorrect statements are
only 1 and 2
only 2 and 3
only 1 and 3
none of them

Q2. Which of the following is a plausible way to resolve Mullaperiyar dam controversy
If Tamilnadu pays electricity tax dues to Kerala state government, for using the
hydroelectricity of Mullaperiyar dam
If Tamilnadu pays compensation to displaced Keralites living in the upstream, before
increasing the height of this dam
If Tamilnadu agrees to divert part of the water from this dam to Kerala farmers in Idduki and
other downstream regions.
None of them
Interview Question: What is the controversy surrounding Mullaperiyar dam? What is SCs
latest judgment on it? What is the permanent solution to this issue?
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Tags: Judgement, Rajtanil
[Judgement] Pramati Judgement: Right to mother tounge vs Right to run English Medium
Schools
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
P1: [SC order] Mother tongue education in Karnataka
P2: Pramati Judgement: RTE doesnt apply to Minority schools
P1: [SC order] Mother tongue education in Karnataka
Newspapers have made a simple matter too complex. Moral of the story is just two points:
Karnataka government wants every kid be educated in Non-English medium for class1 to
4.
Private school-walla wants English Medium from class1 itself. Supreme Court says
theyve right to do so.

Now lets get into technical details:

1994: Karnataka government orders following
From class 1 to 4: student should be taught Kannada OR Mother tongue (Tulu, Kodagu,
Konkani etc) only.
after class 5, student can shift to English medium or any other medium
Private schools (English medium) did not like this order. NOT ONE BIT.
Matter goes to Karnataka High court
School owners
Karnataka governments defense
Class 1 to 4 students (and their parents)
Article 350A: State needs to provide facility
have right to choose medium of
for mother tongue education @primary
instruction in class1 to 4.
school.
They should be allowed to pick English
In a previous case, SC upheld that State
medium also.
government has right to prescribe
Hence Karnataka governments order is
medium of instruction in schools.
constitutionally ultra vires.
Taarikh pe Taarikhfast forward to 2008 Karnataka high court ruled that

19/1/G

Right to carry any occupation. (English medium) school owners have right to carry
occupation (i.e. running English medium school.)
State cannot force them to teach them only in mother tongue (tulu etc.) or Kannada.
Right to free and compulsory education.

21A
But that also implies freedom to choose (English) medium, even in primary school.
Religious freedom=> right to establish and maintain institutions for religious and
charitable purposes.
26/A

29/1
29/2

Charitable- indirectly includes educational institutions also. (whether minority or

majority, both have this right) so theyre free to pick their medium.
Religious and linguistic minorities have right to setup their own educational institution.
theyre also free to pick their medium.
no citizen can be denied admission to an educational institution only on the grounds of
language

Given these Constitutional provisions. Karnataka HC ordered that

for government schools, government funded Government recognized private (self-financed)
private schools
schools
state can order them to teach Kannada as one Government cannot force them to teach in mother
of the languages
tongue or Kannada.
This time, Karnataka State government did not like it. NOT ONE BIT. So they went to Supreme
Court. Again Taarikh pe Taarikh. Finally May 6, 2014 The Supreme Court ordered following:
(and Hence the topic in news for May week1)
Q1. What does Mother tongue mean? Wholl decide a childs mother tongue?
SC order:
Mother tongue doesnt mean the language which the child is comfortable with.
Parent/guardian of the child will decide his mother tongue.
Q2. Does a student or a parent has a right to choose a medium of instruction at primary
school?
SC order
Yes, under Article 19/1/a: Freedom of speech and expression. Under this, a child (and his
parent/guardian on his behalf) can chose the medium even at primary school. State cannot
impose any language on them.
Under 19/1/g: right to carry occupation. So (English medium) school owners also have right
to run their business (of running English medium school). State government cannot force
them to teach in mother tongue (tulu etc) or Kannada at primary level.
And Article 21 or 21A is irrelevant here.
Q3. IF state government forces the schools to teach in a specific language, does it affect
fundamental rights Article 14, 19, 29 or 30?
SC order:
yes it affects fundamental rights under those articles
And therefore, an aggrieved citizen can approach court to seek relief.

Q4. What is the meaning of Government recognized school? Only sarkaari schools or
private (Self-financed) schools also counted in it?
SC order: all schools counted in it:
government schools
government aided private schools
Self-financed private schools (if government has granted recognition) to them
Q6. Can government compel linguistic minorities to choose only their mother tongue in
government recognized primary schools?
SC order: No. (Union or state) Government doesnt have such powers.
In other words, Karnataka government cannot order any school to teach only in mother tongue
or Kannada. The said school has freedom to teach in any medium (Even English medium.)
P2: Pramati Judgement: RTE doesnt apply to Minority schools
Supreme court gave this Judgment in May 2014, in a petition of Pramati Educational and
Cultural trust (Karnataka based).
All minority schools are outside the purview right to education act.
In other words, poor students (from majority section) cannot claim 25% reservation in
minority schools, despite what RTE says.
It doesnt matter whether such minority schools get government funding or not. They still
dont fall under RTE act because Article 30/1.
Supreme Court upheld Article 21A (right to education) and right to education act 2009 are
constitutionally valid, but theyre subject to Article 30.
Does State have right to enforce reservation in minority institutions?
Article Provision
State can declare reservation in self-financed institutes, for socially and economically
15(5) backward classes. (But they cannot enforce it on minority institutes, as per Pramati
Judgement.)
Right to free and compulsory education. And to enforce this right government enacted
21A
right to education act 2009, which provided minimum 25% reservation to poor kids in

every
school.
but as per Pramati Judgement, this doesnt apply to minority schools.
Right to occupation. Minority school owners have right to occupation i.e. running
19/1 school for minorities. Government cannot force them to admit students from majority
group (religious or linguistic).
Fundamental right of all minorities to establish and administer educational institutions of
30 (1)
their choice. This is the basis of Pramati Judgement.
Mock Questions
Sample MCQ: What is Pramati Judgement?
Article 21A is part of the basic structure of Constitution
The state is empowered to enforce reservation in any private institution to implement Article
21A
The state is empowered to enforce reservation even on linguistic and religious basis, to
implement Article 21A.
The state cannot interfere in minority institutions to enforce Article 21A.
Suppose, government orders English medium school owners to teach only in vernacular
mother tongues such as Hindi, Tamil etc. then which articles can the school owners use to
get relief from HC or SC?
Article 21 and 21A
19/1/a and 19/1/g
Article 21A and 19/1/g
They cant do anything because government is constitutionally empowered to do so under
Article 350A.
Ans.
DState
cant
enforce
21A
in
minority
GS2 (Mains): Answer following each in 200 words and ~7 minutes

institutions.

Pramati Judgment has curtailed the right of the state to implement right to education.
comment
States power to enforce reservation under 15/5, 21A or RTE, is not absolute. Comment

The state has no right to impose mother tongue in primary schools. Elaborate.
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
Tags: Judgement, Rajtanil
Syria] British aid to Syrian Rebels, Geneva-II conference, Indias Stakes
Diplomacy7 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Syrian Crisis: Background
Main rebels against Prez. Assad
Why UK stopped giving Aid?
Why UK resumed giving aid?
Indias stakes in Syria
Geneva II conference
Syrian Crisis: Background
Syrian Civil war has its roots in Arab Spring movement against corrupt/ ineffective regimes.
Nowadays, it has turned into sectarian war between Shia Prez. Bashar Al Assad (Alawite) vs
Sunni Rebels.
Both sides getting foreign support
Two factions
Syrian Govt.
Russia (because of its diaspora & Naval base)
Iran, Iraq, Lebanons Hezbollah (Shia support)
China- has economic ties. Stays away from voting
against Syria in UN.

Anti-Syrian Govt (Rebels)

USA, UK, Israel, EU
Saudi Arabia, Qatar,
(Sunni Support)
Al Qaida

Turkey

1 lakh+ killed, 20 lakh+ fled the country. Latest reports show traces of Chlorine Gas attack in
streets.
Nobel Peace prize 2014 winner Organization for the Prevention of Chemical Weapons
(OPCW) has started new investigation.
Main rebels against President Bashar Al-Assad

Moderate/Secular
Free Syrian Army (FSA)

Extremist/Non-Secular
Al-Nusra

Syrian National Coalition

Islamic Front.
(SNC)
mostly ex-soldiers
Affiliated with Al-Qaeda.
US, UK etc. support them with They get funding from Sunni-extremist groups in Middle east.

non-lethal aid: food, tent, and But When they run out of diesel/ammo, they loot the godowns
medicines.
of secular rebels. After all theyre Extremists!
Why UK stopped giving Aid?
USA, UK, France etc. have formed a group Friends of Syria (FOS, total 11 nations)
They help Free Syrian Army (FSA) AND Syrian National Coalition (SNC). Because these
rebels are secular / moderate / believe in democracy.
December 2013: Islamic Front (non-secular) looted arms depot of Free Syrian Army
(secular rebels). They took away 2000 AK rifles, rocket launchers, at least 200 tons of
ammunition and 100 military vehicles.
USA, UK fear their supplies will reach Al-Qaeda, Hence stopped giving aid to Free Syrian
army (FSA).
Why UK resumed giving aid?
2014: @the recent meeting, (Secular) Syrian rebels requested the FOS to supply weapons to
fight against Prez.Basar-al-Assads forces, else victory impossible.
While FOS (Those 11 countries) agreed to help but unlike Salman Khan, none made any
commitment because they fear weapons may reach Al-Qaeda terrorists. (Same reason
why India doesnt directly give weapons to Afghanistan troops. click me)
But UK has decided take some measure, especially after reports of Assads chemical weapon
attacks on Children:
Well resume atleast non-lethal aid to those moderate/secular rebels. (30 million pounds
worth)
Well also give diplomatic mission status to Syrian National Coalition.
Well send aid to areas where UN cannot reach.
Examples of Non-lethal aid
Laptops
Satellite phones

Pickup trucks, diesel

Portable generators
Clothing, ration, tents and Medicine.
USA also planning to do same, send aid via NGOs instead of UN.
Indias stakes in Syria
Unlike Russia, We dont have much diaspora or any military base in Syria.
We hardly import any oil/ gas from Syria
Assad supports Indias claim for permanent seat @UNSC.
Weve have invested millions in Syrian power & steel sector to keep him in good humor.
Experts believe Rebels will control 2/3rd of Syrias territory & energy resources- if status
quo maintained. Then India can say goodbye to money invested/loaned to Assad.
As such our stand similar to China: We dont support military intervention (by UN/USA) in
Syria.
For energy security we want both Iran (Shia) and Saudi Arab (Sunni). Since both are against
each other on Syria issue, we have to talk neutral.
We want both Assad and Rebels to renounce violence.
We Want Peaceful resolution through dialogue, at Geneva-II conference (International
Conference on Syria).
Geneva II conference
UN sponsored
@ Monteux, Switzerland
Started from January 2014.
Aims to bring both Syrian government and rebel forces on negotiation table.

Overall, their plan is to get Assad resign, setup a transitional government with
representatives from both sides, and then hold fresh elections. (At least this is USAs
plan, but Russia opposes.)
India participating but doesnt articulate a clear stand except the usual peaceful dialogue
between stakeholders.
Iran not invited (actually invited then UN withdrew invitation)
Mock Questions
Q1. Correct statement(s) related to Shia and Sunni.
Their main difference is: after the death of Prophet, Shia chose Abu Bakr as the Caliph while
Sunni chose Prophet Muhammads son-in-law Ali as Caliph.
The Mughal kings were Shia Muslims.
Both A and B
Neither A nor B
Q2. Which of the following dont share border with Syria?
Israel
Iraq
Iran
Saudi Arabia
Correct choices
only 2 and 4
only 3 and 4
only 1, 2 and 4
only 1, 3 and 4
Correct Answers:

Both Wrong.
Sunni: Prophets companion Abu Bakr; Shia = Prophets Son in Law Ali.
Mughals were Sunni Muslims:Two separate google books confirm this. Ref1 and
Ref2
Point is, youre not required to tick 100/100. So dont go by gut feeling else dig grave
through negative marking.
B-Iran and Saudi donot share border with Syria.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-India-N, Rajtanil
[Diplomacy] New Cold War- Meaning, Reasons, Timeline
Diplomacy7 months Ago65 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
What is NEW Cold War?
Afghani get Russian weapons on Indian money
What is NEW Cold War?
Some Essay / Interview fodder points from Frontline May 2, 2014 column A new Cold
War?
Cold war-meaning:
A state of political hostility
from 1945 until 1990
between countries led by the Soviet Union and countries led by the United States.
1949

North Atlantic Treaty Organization setup as counterweight to Soviet armies in

central and eastern Europe after Second World War.

1954
1955
1990

October
1990

President Khrushchev himself asks NATO to include Russia in its membership,

hoping this would stop the useless Expenditure on arms race. But USA refused.
West Germany joins NATO. Angry USSR sets up Warsaw Treaty Organization.
President Gorbachev proposed both NATO and Warsaw be dissolved. Joint
maintenance of peace. USSR will not intervene in the affairs of other socialist
countries. And thus lets end Cold war. But USA refused.
To facilitate re-unification of Germany, USSR withdraws troops from Eastern
Germany. At that time, USA promised, NATO will not move eastward anymore.
(Therefore, Russia calls it American-betrayal because NATO is constantly setting
bases in Eastern Europe.)

December
USSR and Warsaw pact collapse.
1991
NATO intervenes in Yugoslavian war
1995
Poland, Hungary, Czech Republic, Latvia, Lithuania, Estonia, Croatia and Albania
1997-2009
joined NATO
NATO includes Poland, Hungar and Czech. American Diplomat George Kenna
coins the term- New Cold War- I think it is the beginning of a new Cold
War. I think the Russians will gradually react quite adversely and it will
1998
affect their policies. I think it is a tragic mistake.

2001onwards

Historians agree that NATO enlargement post-cold war= ill conceived, ill-timed,
and ill-suited for the modern world.
Kyrgyzstan, Turkmenistan, Tajikstan and Uzbekistan provide base and refueling
facilities to NATO troops for Afghanistan war.

Thus, every member state of ex-USSR, is now falling under NATO influence. Putin gets worried
because of this encirclement, and hits back by taking over Crimea from Ukraine. Obama tries
to teach him a lesson, by
suspending Russia from G8
Moving NATO military assets in Black sea.
Asking EU to cut financial ties with Russia. Although Sweden, France reluctant because
they want to sell defense equipment to Russia for billions of dollars.
But why is USA doing this?

Cold war= competition between Capitalism and Communism. Today, even Russia and China
adopted capitalist methods. So not really any ideological opposition. But the triad of USA, EU
and Japan are unhappy because:
Russia = largest oil and gas reserves
China= largest forex reserve. Biggest Buyer of Russian crude oil.
If they came together via BRICS, then Triads monopoly, influence on WTO and IMF will
be gone.
Russias next move?
Russia can sell Sukhoi SU-35 fighter jets to China
Russia can refuse to side with US on Iran and Syria.
Russia-China start trading via their domestic currencies rather than using Dollars. This will
weaken the dollar.
Afghani get Russian weapons on Indian money
(GS2) Recently, India decided to pay Russia for the arms and ammunition sold to
Afghanistan. Discuss the rationale behind this move. (200 words)
2011: India signed Strategic Partnership Agreement (SPA) with Afghanistan, promised to
look after their security demands including arms, ammunition and training.
Since USA and NATO are withdrawing, India needed to step in and fulfill its pledge under
SPA.
Challenges:
India does not have surplus weapons that can be supplied to Afghanistan.
Even if we have surplus weapons- itll be unwise to give them to Afghanistan. Because they
may get smuggled to Pakistans Tribal areas OR Kashmir- then Pak can claim Indian
hand in the terror attacks.
Lack of easy surface transport connectivity.
Temporary solution

India asked Russia to supply arms to Afghanistan, India will pay for it.
India will only finance choppers, artillery guns, armored truck and tanks. Russia will supply
AK rifles on its own.
This is a temporary solution because India cannot substitute USA or NATO forces in
Afghanistan. Unlike USA, we dont have deep pockets, Unlike NATO-nations, we dont
want to send our troops on Afghan soil. (like Rajiv Gandhi did in SriLanka).
Permanent solution
Collaborate with Russia, Iran, Turkmenistan, Uzbekistan and Tajikistan- ask them to look
after the security detail in Afghanistan. Taliban are threat to each of them.
Joint mining & human resource development projects with China. A prosperous Afghanistan
means less new recruits for Taliban.
~230 words.

Tags: IR-India-O, Rajtanil

[Bodies] Judicial Appointment Commission (JAC), Fixed Tenure for Chief Justice of India
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
P1: Judicial appointment commission
P2: Fixed Tenure for CJI?

P1: Judicial appointment commission

At present, the judges in SC/HC are selected via a collegium method. But this method is
opaque, and lacks accountability. Therefore, Parliamentary Standing Committee on Law
and Justice recommended creating JAC.
In December 2013, UPA cabinet cleared two bills related to this.
Bill #1: 120th Constitutional Amendment bill 2013
Adds two new Articles to Constitution
124A: JAC composition will be created by an ordinary act
New Article 124B: JAC functions listed here.
additionally,
till modify Article 124(2) President shall appoint judges on recommendation of Judicial
appointment commission (JAC)
will amend 217: Appointment of HC judges
will amend 222: transfer of HC judges
will amend 231: common court for two or more states and provision related to judgestransfer in such case. (e.g Seemandhra and Telangana)
Terms and functions will be defined in Constitution itself.
so they cannot be amended later on without 2/3rd majority in parliament.
Bill
#2:
Judicial
appointments
This ordinary bill/Act will define the composition of JAC
Chief Justice of India as chairman
Two Supreme court judges
Law minister
Law Secretary (as convenor)

commission

Bill

2013

Two eminent persons (PM+Opposition leader+CJI will select them)

Rajya Sabha has passed this bill. But with dissolution of 15th Lok Sabha, bill lapsed. (Ref.
PRSINDIA link)Introduced in Rajya Sabha but referred to standing Committee on law. Current
status: PENDING. (Ref. PRSINDIA Link)
Overall, JAC will have two functions:
Will replace the collegium system of appointing SC/HC judges
Recommend transfer of judges from one high court to another.
parliamentary panels recommendations
three eminent persons in the commission

Did UPA cabinet

accept it?
only two eminent
persons

At least one out of them should be an SC/ST/OBC/woman/minority,

NO
preferably by rotation.
~800 judges in the highcourt. So, itll be better to have state level JAC for
NO
their appointment.
if judge dies/ steps down then JAC should be informed within a month so
yes
new recruitment can be done
JAC should be informed 6 months in advance about the upcoming
yes
retirements and vacancies in SC/HC
P2: Chief Justice of India: Fixed tenure or not?
At present, CJI is selected on the seniority principle.
Different opinions on fixed tenures
40th CJI-P. Sathasivam
41st CJI R.M.Lodha
recommended 2years fixed term for CJI and Chief
no need for fixed tenure to CJI.
justices of high courts.
Average tenure of Supreme Court
A short tenure does not provide space to CJI to
judges is less than four years
implement any reforms or decisions
no CJI appointed before age of 55. and they retired
at age of 65 they dont have much time left.

if one judge is given two years fixed

term then other judges may not
get any chance to become CJI.

In last 20 years we saw 16 CJI

out of them only 4 had tenure more than 2 years

If law is enacted to make tenure of CJI

fixed, itll undermine independence of
some less than one year.(Sathasivam himself only
judiciary
9 months tenure!)
one CJI had even less than a months tenure!!
Judicial institutions run on discipline.
Since CJI is frequently changed, he cannot implement
full scale judicial reforms, which require his personal
supervision for longer period.

if good people with impeccable

character are appointed judges
then everything will work out
smoothly.
if the kith and kin of the judges practice
in the same court, then bar council should
take action against them.

14th Report of the Law Commission (Motilal Staved )

This JAC formation will not bring any change if its basic criterion for selection will be same
as earlier principle of seniority.
CJI selection should be different from the method of selection of other judges of SC and HC
In past, CJIs could not serve their best capacity, because of limited tenure they retired too
soon.
Due to seniority principle, many deserving judges retire before they can become CJI
JAC should fix this issue by selecting most competent person in administrative, judicial and
leadership skills; social and constitutional philosophy, instead of just focusing on
seniority.
Mock Questions
Q1. Consider following Constitutional amendments
118th: Changes under Article 16 about reservation.
119th: transfer of territories between India and Bangladesh

120th: judicial appointment commission

Which of them are correctly matched?
only 1 and 2
only 2 and 3
only 1 and 3
none of them
Q2. Suppose JAC was created then
President would appoint CJI and other judges in supreme court, as per JAC recommendations
Governor would appoint judges of high court as per JAC recommendations.
Both A and B
Neither A nor B
Q3. Suppose, PM wants to reduce salaries of the judges of SC, what should he do?
get President to declare financial emergency
get article 125 amended
Either A or B
It is not possible because their salaries are charged upon the consolidated fund of India hence
outside parliaments scope.
Q4. Suppose, PM wants that President should appoint judges of SC/HC only from the
names shortlisted by PMO, THEN, which articles will he need to modify?
124 and 125
217 and 218
124 and 217
It is not possible because of the collegium system.

Interview Question: Should CJI have fixed tenure of 2 years- CJI Lodha says no, Ex-CJI
Sathasivam
says
yes.
Whats
your
stand?
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
Tags: Bodies, Rajtanil
[Bodies] CBI needs no prior sanction and Prasar Bharati needs autonomy
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
P1: CBI needs no Prior sanction
P2: Prasar Bharati Autonomy
P1: CBI needs no Prior sanction
Whats the relevance of this topic to UPSC Syllabus?
(GSM2): transparency and accountability
(GSM4): challenges of corruption.
Present system
CBI derives powers under Delhi Special Police Establishment Act 1946
But as per Section 6A of this act, CBI cannot conduct preliminary inquiry against Joint
Secretary or higher rank officers without central governments approval.
But government doesnt give approval on time, officers get away scot free.
Two petitions filed against this Section 6A:
By Subramanian Swamy (2G fame)
By an NGO: Centre for PIL
Supreme Court ruled that Section 6A ___.

Hampers the action against high-level corruption (by senior civil servant).
6A can be used to shield corrupt officers.
6A violates Article 14 of equality before law. Public servants high position doesnt give him
immunity from equal treatment
Therefore 6A is unconstitutional, we declare it null and void.
Besides, under Prevention of Corruption Act (PCA), the investigating agency has to take
sanction from concerned authority before starting prosecution. So, no need to carve out
additional and special protection to senior civil servants
Impact of SC Judgement?
In coalgate, UPA government had rejected rejected preliminary inquiry against former coal
secretary. Now CBI can begin investigation against him.
There are many similar cases pending because central govt. had not granted sanction. But
now, CBI is empowered to act against such senior IAS officials without any delay- be it
2G scam, coal, common wealth games and Adarsh scam.
Conclusion:
SC judgment will reduce govt. interference in CBI investigation.
But it cannot bear the real fruits until the CBI is granted autonomy in its appointments,
finance and functioning.
P2: Prasar Bharati Autonomy
Topic important because:
From Modis interview, DD channel edited out some portions related to Priyanka Vadra,
allegedly on the order of Manish Tewari (Ex-Congress minister for information and
broadcasting.)
GS Mains paper 2 syllabus: Statutory bodies.
Present setup:
Prasar Bharati statutory autonomous body

It is the public service broadcaster of India

It has two arms: DD and AIR.
Prasar Bharati Board includes
1 chairman
6 part time members (eminent persons selected by Union government)
DG of AIR
DG of Doordarshan (IAS Officer. Service controlled by Personnel minstry)
DG of All India Radio (Indian information and broadcasting service. Service controlled by
personnel ministry)
Representative from I&B ministry.
What Reforms needed in Prasar Bharti?
Sam Pitroda Committee (Jan 2014) recommended following:
Full autonomy to Prasar Bharati for administration and finance.
Include Professionals in the Prasar Bharati Board.
Prasar Bharati be allowed to recruit its own officers (instead of importing IAS & other
bureaucrats on deputation
Setup Prasar Bahrati connect
itll be a Prasar bharati arm
independent of Doordarshan and All India Radio
will manage social media initiatives
Prasar Bharti owns large patches of land across India- for short wave radio transmitters. That
technology is old. Sell such land
Setup a parliamentary committee to monitor Prasar Bharati (means, all parties can have a say
into Prasar Bharati affairs.)

change funding pattern as following:

Government
20%
Private investment. Especially for developing back infrastructure 40%
Commercialize some activities
40%
Total funding
100%
Mock Questions
Sample MCQ: Find incorrect statements about Prasar Bharati
It is a statutory body under ministry of Ministry of Communications.
It overseas the working of doordarshan but not All India radio (AIR)
Both A and B
Neither A nor B
GS Mains paper 2 | 200 words | 7 minutes for each question
Write a note on the structure of Prasar bharati and suggest measures to strengthen its
autonomy.
Supreme court order voiding the Section 6A of the Delhi Special Police Establishment Act
is a landmark event in the fight against higher level corruption. Comment.
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
Tags: Bodies, Rajtanil
[Security] Plight of Paramilitary forces, Home Ministry Reforms, Chhattisgarh Maoist
Attack 2014
polity7 months Ago1 Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
P1: Plight of paramilitary forces

P2: Chhattisgarh attack

P1: Plight of paramilitary forces
Syllabus point: (GS3) Various Security forces and agencies and their mandate
Context: Frontline ran an article in May 2014 issue
While frontline has used the word paramilitary throughout their article, you must keep in mind,
we have only three paramilitary forces as per the official definition by government of India. (Ref:
Business Standard 2011)
Paramilitary forces
Central armed police forces
Their chief is a military officer Their DG is an IPS officer.
CRPF (Central reserve Police Force)
Assam Rifles

ITBP (Indo-Tibetan Border Police Force)

Special Frontier Force

BSF (Border Security Force)

Coast Guard

SSB (Shashtra Seema Bal)

CISF (Central industrial security force)

Why these forces are DEMORALIZED?

High attrition rate resignation and voluntary retirement. (>16k left in last 3 years)
Shortage of man power = heavy workload.
15-18 hours continuous duty, sometimes not even allowed to sit down (e.g. CISF jawans on
airport).
Suicides and Fratricide i.e. soldiers killing their colleagues and seniors in frustration. >400
died in last 5 years.
If a soldier dies on duty, his family doesnt receive compensation on time.
Top post occupied by IPS officers, who dont understand the plight of the force. They just
consider it as timepass short stint.

Often, no family accommodate at posting areas. Even education, healthcare, water and
electricity is erratic in their government quarters.
There is no concept of peace posting. No break in duty. 80% of the personnel never get to
live with their family during entire posting.
Career promotion system not as smoothly organized as in army. These officers donot get
same pay and perks like others in Organized Group-A central services.
No hardship allowance or risk allowance (recently HM agreed to fix this)
even when transferred, they dont get transfer allowance.
Steps taken by government so far:
Under Modi-sarkar (June 2014)
Hardship allowance in naxal area will be similar to what they get in J&K and North East.
(meaning a constable will get ~8000 extra per month)
After completing tenure in naxal area, they will get posting in the area of their choice.
(Inspired from American model in Afghanistan)
Out of turn promotion for exceptional service and bravery.
Side note: Home ministry renamed naxal division to Left wing extremism (LWE) division
Under UPA:
Monetary benefits under Modified Assured Career Progression (MACP) given after 12,24
and 36 years of service. In other words, even if you dont get promotion, you still get
higher pay-scale.
Grievance redressal mechanism
Improved living condition
STD calling facility to family members.
Better Risk allowance
Yoga, meditation, canteen and recreational facilities

Mock Interview Question: If youre made the Home minister of India, whatll you do to boost
the morale of personnel deployed in naxal areas?.
P2: Chhattisgarh attack
Major attacks in in recent times:
2010
Dantewara: Biggest attack on CRPF, more than 70 personnel killed.
2013
Entire Congress state-leadership wiped out in an ambushed Bastar, Chhatigarh.
CRPF was deployed to protect on-going road works in Sukma dist.,
March
Chhastisgarh.
2014
Maoists surrounded them, killed 15 personnel + 1 civilian.
Why this recent Attack?
This area-corridor is corridor used by rebels to enter and leave chhatisgarh.
But on going Lok Sabha election preparation => increase deployment of police => Maoists
nervous.
To send a fear message to locals: dont vote in election (OR vote in favour of the candidate
we recommend.)
This was TCOC attack (Tactical counter offensive campaign). Basically, Maoists will run a
gang run for 3-4 months- theyll ambush security personnel for looting weapons. This
March-June period provides them good forest cover to hide movement from drones and
police informants.
What went wrong?
Personnel did not follow the standard operating procedure (SOP). They should have taken a
different travel route every day.
Downplayed the warning/information from MHA and local people.
Failed to learn from past mistakes. deficit of Training-Technology and leadership.
Universal Service Obligation Fund (USOF) not fully utilized = lack of mobile connectivity in
red corridor.

NTRO (Natioanal Technical Reconnaissance Organisation) operates Israeli Drones for

surveillance. But their airbase is in Hyderabad=> drones cannot travel long. + shortage of
pilots.
Lack of coordination between CRPF and state police
Future strategy: (List not exhaustive)
Deploy women police officers in moist-hit areas => reduce human rights violence cases,
better communication with locals => reduce base for Maoist
NTROs drone base should be moved closer to rebel strongholds in Chattisgarh and
Jharkhand.
Better coordination among intelligence agency with security agencies. (which is never going
to happen.)
Equip CRPF modern weaponry and training and cutting edge technology for intelligence.
Increase recruitment of local tribals in state police service.
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far
[Elections] Voting rights of Defense personnel, Postal Ballot, Proxy Voting, Election
Expenditure
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
P1: Voting rights of Defence Personnel
P2: President didnt cast his vote
P3: Who pays for Lok Sabha election?
P1: Voting rights of Defence Personnel
Q. Discuss in brief, the provisions relating Voting rights of Defence personnel, and recent
SC
verdict
on
it.
(200
words)
A defence personnel can vote in his native home Constituency via two methods:

POSTAL BALLOT self-explanatory. But process increases the cost of election. (RPA Act
1951)
PROXY VOTING i.e. fillup a form (13F) to nominate another person to vote on his behalf
at home. But process is cumbersome and violates the principle of secrecy in voting.
(Election Act 2003)
Later, EC permitted defence personnel to cast vote in their area of posting, IF he is serving there
for at least three years and living with his family.
In many constituencies of J&K and North-East, the defence personnel outnumbere the local
population. So if they were allowed to cast votes in the area of posting, itll potentially change
the electoral outcome. Therefore EC made three years safeguard, this was upheld in PunjabHaryana
HC
(2013)
Recently SC-verdict amended above EC rule:
Defence personnel have right to vote and Election Commission cannot impede it
IF they were posted at a peace station since 1 January, 2014, they can cast their vote in their
constituency of posting. Same applies to family members living with them. EC cannot
force them to in native home Constituency via postal or proxy voting.
SC ordered government to send list of such peace station to EC.
SC ordered EC to prohibit political parties from campaigning at such peace stations.
~230
words.
Related
topic:
Service
Voters
Election commission permits Service voters to cast vote via post / proxy. The examples of
Service votes are:
Personnel employed under Government of India but posted outside (embassy staff,
diplomats)
Defence / police forces of union
Armed police force of state, serving outside the state.
P2: President didnt cast his vote
Why some Presidents vote & some dont?
Presidents
Did they vote in Lok Sabha election?

Before
KR
Presidents did not vote in Lok Sabha elections.
Narayan
KR Narayan
first president to cast his vote, waited in the queue like an ordinary citizen.
(1998)
Dr.
APJ
Kalam
Yes, from special polling center setup within Rashtrapati Bhavan.
Pratibha
Earlier he was planning to vote via postal ballot for his Constituency South
Kolkata. (if he had done so, hed be the first President to use postal
Pranab
ballot)
But ultimately, decided not to vote, to keep neutrality.
P3: Who pays for Lok Sabha election?
Activity
Cost Bourne by
Lok Sabha Election
Union government
Law & Order maintenance during election State governments
How much did Union pay?
Exact
figures
not
important
Election cost in Crores
1952
10.45
2004
1114
2009
1483
2014
3426
There is steep increase in the Expenditure, why?
Inflation: reflects in fuel, electricity, stationary items.
More political parties, more Independent candidates contesting polls. Their record keeping
also costs money.
Voter awareness campaigns
More voters= More voter slips have to be distributed- count the stationary, staff cost.

EC had introduced Voter Verified Paper Audit Trail (VVPAT)

Another study claim Candidates themselves have spent more than 40,000 crore rupees in election
campaign (including desi liquor).
Mock questions
Q1. Which of the following is/are incorrect?
Since Independence, Indian Presidents have a long tradition of voting through a special
polling booth within Rashtrapati bhawan.
President Pranab Mukharjee is the first President of India who did not vote cast vote in Lok
Sabha election.
Both A and B
Neither A nor B
Q2. Who pays for the cost of EVMs Lok Sabha election?
Union
Union and States bear 50:50 sharing
Each state depending on number of polling booths
Money from a special election fund, where each state has to contribute depending on number
of Lok Sabha seats in their territory.
Q3. Who pays for the cost of law and order maintenance during Lok Sabha election in a
Constituency?
Union
Given state government
Money from a special election fund, where each state has to contribute depending on number
of Lok Sabha seats in their territory.
Both Union and States bear the cost in 50:50, except J&K and hill states where it is 90:10
Correct Answers

C Both A and B are incorrect. long tradition implies that from 50s till now every President
has voted through special booth. Hence incorrect.
A Union pays
B state pays
Tags: Elections, Rajtanil
[Judgement] Code for Compulsory Costs- to teach lesson to frequent litigators
polity7 months Ago1 Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
Historic Background
What is Code for Compulsory Costs?
Why do we need Code for compulsory costs?
Anti-arguments
Historic Background
SAHARA opened two companies and issued OFCD (optionally fully convertible debentures)
to public without permission from SEBI
(2011) SEBI ordered them to refund money with 15% interest to public and show receipts of
refund to SEBI
SAHARA did not comply, went to SAT and then SC. Even after SAT and SC ruled in favor
of SEBI, the SAHARA company did not refund all the money. Hence Subrato arrested.
2014: case is not yet sorted out. only taarikh pe taarikh while the investors money not
refunded.
Supreme court observed:
For every order passed by the SEBI, Sahara has filed petition to securities appellate tribunal
(SAT) and then to Supreme Court.

Sahara even filled petitions to get stay orders from Allahabad High court. Even though High
Courts have no jurisdiction on SEBI!!
In last two years, 81 days of Supreme court wasted only on hearing SAHARA case.
Now SAHARA lawyers even accuse SC judges of Bias against Subrato!
To put an end to such frivolous litigations, tomfoolery and badass thuggary, Supreme court
requested parliament to frame a Code for Compulsory Costs.
What is Code for Compulsory Costs?
Under this system, IF a compulsive litigant (like Sahara) gets defeated,
it will have to pay money to the winner (in this case SEBI),
to compensate for wasting time and peace of mind.
as deterrence against frivolous litigations in future
Why do we need Code for compulsory costs?
#because process is abused
Both government and rich people file petition to higher court whenever theyre defeated.
They also file new petition in the same court or in other courts to get stay order against
the verdict.
These people have nothing to lose and deep pockets to hire lawyers. They derive their
strength from abuse of the legal process.
This practice and pattern is so rampant that in most cases, disputes which ought to have been
settled in no time at all before the first court of incidence, are prolonged endlessly, for
years and years, from court to court, up to the Supreme Court.
Whenever Court time lost, its is a direct loss to the nation.
#because Victim deserves to be paid
In frivolous litigations, innocent person suffer from long drawn battle, whilst the case is
pending, without any fault on his part.

Victim pays for the litigation, from out of his savings (or borrowings), worrying that the
other side may trick him into defeat.
Victim spends invaluable time briefing his lawyer, gathering evidences. He could have spent
that time at office or with family, had the other party had not filed such frivolous cases.
Therefore, victim deserves to be compensated.
#Govt is compulsive litigant
Government bodies litigate endlessly all the way to Supreme Court, just because of the lack
of responsibility to take decisions.
Sometimes itd seem that all administrative and executive decision-making are being left to
the courts.
Prime example UPSC : whenever CIC passes any order against UPSC, they goto Delhi High
court and then to Supreme court. Matter goes on for years, petitioner cannot sustain the
cost while UPSC hires best lawyers on public money.
Anti-arguments
We dont need any Code of compulsory cost because:
Judge can throwout such frivolous cases and put heavy fine on the litigant. (it has been many
times, even in PILs.)
Under Indias civil procedure code (CPC) high courts can impose compensatory costs for
frivolous civil suits. But maximum penalty is Rs.3000. Parliament needs to enhance this
penalty via CPC amendment. Hence there is no need for a separate Code of compulsory
cost?
Constitution allows the SC to issue any order necessary for doing complete justice. So
even without any separate laws or codes, SC is free to impose heavy fines on idiots.
District and sessions court judges also need to be proactive in nipping the frivilous litigations
in bud. This requires reform in entire judicial process, not just one new code.
Mock Questions
Sample MCQ: In 2014, during Sahara verdict, SC judges requested parliament to draft a
Code for compulsory costs. What is the purpose of this code?

Corporate giants will be required to pay higher court fees.

In addition to court fees, the corporate giants will have to pay for utilizing judge-hours.
If defeated in a civil matter, a corporate giant will have to pay higher penalty than ordinary
citizen.
If defeated, the compulsive litigant will have to pay compensation to the other party.
Sample MCQ: If parliament passes a code for compulsory costs for the judiciary, what
will be its implication?
Courts will have additional funds available to undertake recruitment and infrastructure
upgrades
Government departments & Corporates will have to pay additional fees every time they go in
appeal.
Poor people will be exempted from paying any court fees or lawyer fees.
None of above
Correct Answers:
D- if compulsive litigant defeated
D-none of above
Mains Exam: Examine the need & benefits of implementing a Code of compulsory costs in
legal process. 200 words.
Tags: Judgement, Rajtanil
[Rights issue] Transgender: reservation quota, property inheritance rights after Supreme
Court Judgement
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
Historic Background

Constitution vs Transgender community

Article 14 | Article 15 | Article 16 | Article 19 | Article 21 | Article 51 (DPSP)
SC Judgment on TG (April 2014)
Transgender rights: elsewhere in world
Historic Background
Ancient text: TG are mentioned but never in poor offensive light.
Medieval times: TG held important positions in royal courts.
British India: Discrimination starts. Criminal Tribes Act 1871-labelled Hijras = criminal
tribes, habitual offenders. They could be arrested without warrant, jailtime upto two
years.
Constitution vs Transgender community
Article 14
Equality before the law or the equal protection of the laws within the territory of India.
But Indians laws only recognized two genders: male and female, then provide for marriage,
adoption, inheritance, succession and taxation and welfare legislations accordingly.
Since TG dont in the binary gender of male vs female. Theyre denied equal protection of
law.
For example, TG are subjected to molestation, forced anal sex, gang rapes and public
stripping but police wouldnt lodge FIR under IPC.
Article 15
State shall not discriminate against any citizen on grounds of sex.
Access to shops, public restaurants, hotels, theatres and other public places.
But TG are denied entry to such public places and treated as outcasts & beggars.
Article 16

Equal opportunity for all citizens for public employment. But given the socio-economiceducational backwardness, TG donot stand equal chance against male and female
applicants in competitive exams for entry in government service or educational
institutions.
Article 19
Deals with six freedoms.
Identifying ones gender= right to speech & expression, but TG are denied- theyve to pick
either male or female identity.
Society also prohibits TG the right to reside and practice any profession throughout the
country.
Article 21
Protection of life and liberty- and all the derivative rights such as right to livelidhood, health,
dignity etc. are denied to TG community.
Article 51 (DPSP)
State need to respect international laws and treaties.
India has ratified both UN declaration and human rights and International Covenant on Civil
and Political Rights, 1966.
Both of those treaties provide equal treatment to all- including TG.
But Indian government hasnt taken steps to ensure this.
Successive Governments have also failed to implement other Directive principles of state
policies (DPSP) related to equal justice, living wage, standard of living for TG community. In
the backdrop of these discriminations, NALSA had filed writ petition in Supreme Court. (2012)
with two demands:
That TG should be recognized as a separate gender. (Aadhar and a few other documents have
this provisions but by and large no option for third gender.)
That TG should be given all the fundamental rights available to other male and female
citizens of India.

National Legal Services Authority (NALSA) is a body established under Legal Services
Authority Act. They provides free legal services to the weaker and other marginalized sections of
the society.
SC Judgment on TG (April 2014)
Supreme Court granted following rights to Transgender and order Union & State governments to
implement them:
TG have all fundamental rights available to Indian citizens, including free and compulsory
education
TG have right to form family, adopt children and inherit property.
Government shall provide formal identity to third gender- in passports, licenses and ration
cards.
Government shall treat them as socially and educationally backward class, eligible for
reservation in government jobs and educational institutions.
Social welfare schemes, healthcare programs, separate HIV surveillance Centres and public
toilets.
For identification of TG- Psychological test and not the biological test will be used.
Noone can be forced to undergo sex-change surgery to fit in the male or female gender.
Public awareness campaigns to end social stigma, fear, shame, depression and suicidal
tendencies among TG. Make TG feel theyre also part and parcel of social life. Dont
treat them as untouchables.
Implement these within six months.
Justice K.S. Radhakrishnan & Justice A.K. Sikri
Transgender rights: elsewhere in world
provides workplace protection to LGBT community (2013)
USA
recognized them as third gender.(2013)
AUSTRALIA
First European country to recognize third gender. Birth-certificate provides
GERMANY
three categories-male, female or intermediate.
Argentina, Portugal, Uruguay and 20 such countries have progressive laws
S. AMERICA

NEPAL
ARGENTINA

NETHERLANDS

ELSEWHERE

for them.
Third gender column in passport and census forms.
Sex change operation is a legal right.
person can change sex in passport & other documents even without
undergoing tests
Third gender column in birth certificate etc. person can change sex in
documents without undergoing test or surgery.
In many countries, there is no third gender column in official documents
In some countries, Person must undergo sterilisation before their third
gender identity is recognised.

Mock question
[GS2] Syllabus topic: Mechanisms, laws, institutions and Bodies constituted for the protection
and betterment of vulnerable sections.
Q. Supreme Courts recognition of the third gender, is a turning point in the struggle for
rights of transgender people. Comment (200 words)
Mrunal comments: There are many ways to write this answer, as long as SC judgment salient
features are included.
Transgender (TG) find honourable mentions in ancient texts, held important positions in
royal courts of medieval India.
But since colonial times theyve been treated as criminal tribes and unwanted elements.
Our Constitution provided fundamental rights to all citizens of India irrespective of their sex.
But Indian laws, bureaucratic machinery and society still recognize only male and female
identities.
As a result, TG are ignored in welfare measures under DPSP, fundamental rights under Art
14, 15, 16, 19 and 21; and other legal rights.
Given this non-enforcement, they are forced to live on alms, engage in sex industry; thus
become more vulnerable to HIV and poverty cycle.

India had signed UN Human rights declaration and other international treaties that provide
for equal rights to all, irrespective of gender
But successive governments failed to implement them in context of TG.
In this backdrop, SC gave following verdict in NALSA petition:
(Indian) TG have all fundamental and legal rights available to Indian citizens, including right
to form family, adopt children and inherit property.
Government shall provide formal identity to third gender- in passports, licenses and ration
cards
Treat them as socially and educationally backward class- eligible for reservation quotas.
Separate welfare schemes, medical care & public toilets
Public awareness campaigns to end social stigma.
Implement this order in six months.
The plight of TG stems not because Mother Nature created them differently but because
government and society failed to accept them. SC judgment aims to end this discrimination, and
therefore a red letter event in their struggle for human rights.
~270 words
Side notes
Naz foundation case
NALSA case
Sexual rights of LGBT community
Constitutional & legal rights of TG community
Main argument: Section 377 of IPC is Main Argument: TG are not given fundamental
unconstitutional.
rights under Art.14, 15,16, 19 and 21
case defeated
won
Homosexuality is still a crime under 377 TG have all fundamental rights and legal rights.
(December 2013 SC judgment)
(April 2014 SC Judgement)
YOGYAKARTA PRINCIPLES
2006: A group of Human right experts met at a university in Yogyakarta, Indonesia.

They framed certain principles- for universal human rights, including for TG & other sexual
minorities.
UN bodies, Regional Human Rights Bodies, National Courts, Government Commissions and
the etc. have endorsed the Yogyakarta Principles
Names given to Transgenders in various parts of India
TG of Tamilnadu. Aravan was son of Arjun and Nagakanya
Aravani
Jogtas/Jogappas Maharashtra and Karnataka.
Delhi and Northern India
Kinnars
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
Tags: Rajtanil, Rights-Issues
[Temples] Hoysala Architecture, Padmanabhaswamy treasure, Australian Nataraja
History7 months Ago1 Comment
For Indian History, I recommend
Spectrum- Rajiv Ahir

Hoysala Temple Architecture

Kirtinarayan Temple (Hoysala)
Padmanbhaswami temple Controversy
Temple Treasures
Gopal Subraminums Report
Australian Nataraja from Chola temple
Hoysala Temple Architecture
Topic
in
news
because
ASI
restored
Kirtinarayan
(GS1) Q.Write a short note on Hoysala Temple Architecture (200 words)
Location
Peak during 11th to 14th centuries in Karnataka.

Temple.

Most Temples concentrated in Hassan, Chikmanglur and Mysore districts.

Notable examples:
Chenna-Kesava Temple @Belure (Vishnu)
Hoysaleshwara temple @Halebit (Shiva)
Both nominated for UNESCO heritage status.
MATERIAL

Soapstone, granite, schist stone and wood

Sculpture are carved on schist stone is soft when quarried but hardens when exposed to air,
thus preserving the fine details for a long period.
DEITIES
Shaiva, Vaisnava and Jain- depending on village demography.

There are even twin-temples with both Shiva and Vishnu, indicating that devotees of
Shaivism and Vainshnavism didnot have bitter rivalry- at least until the fall of Hoysala
empire.
Style
Temple base is star shaped, and not square shaped
Open Mandapa, closed by a compound wall.
Miniature shrines within compound wall
Temple wall profusely decorated with royals, sages, dancers and even Kamasutra figures.
Gopuram usually seven storey
Two Vimana and three Vimana structure- made from single granite.
~170 words
Kirtinarayan Temple (Hoysala)

Location: Talakkad near Mysore, in Karnataka.

By Hoysala king, Vishnuvardhan after defeating Cholas. (1117 A.D.)
features: single granite vimana, huge statue of Nandi, open mandapa, garb griha.
Mughals and natual calamity had destroyed it.
Monument was submerged due to rise in water table and weight of sand dunes.
Why in news? Because ASI has restored it.
Padmanbhaswami temple Controversy
Location: Thiruvanthanpuram, Kerala
Architecture: Dravidian style
Deity: God Vishnu in his Anantshayana posture (sleeping on Shesh-naag)
8th century Tamil Alwar literature-Divya Prabandha, mentions this temple.
Village sabha controlled temples property. Later Nair feudal lords controlled the
1050 CE
temple.
14th
Moroccan Traveler Ibn Batuta visited this area. Wrote about Vishnus idol, its eyes
Century
were made of rubies that lit like lanterns during night.
1750
Maharaja of Travancore worshiped this Deity.
onwards
Travancore tried to declare itself a sovereign nation but #EPICFAIL, had to join
1947
India.
Ex-IPS officer files writ petition, questioning the Royal familys right over this
2007
temple.
Kerala HC ordered State government to take over the temple administration. The
2011, Jan
royal family approaches Supreme Court.
SC gives stay order on Kerala HC. But ordered ASI to open the secret chambers and
2011, May
make asset list.
2014, April Amicus Curie report detailing the mischief in temple asset management.
Temple Treasures
Has total six secret chambers (Kallaras). From A to F

Chamber B not opened, has Cobra lock on it. People fear itll be bring bad omen. (On
History Channel, they even claim Chamber B may have Alien technology that can
bring disaster on earth like in Hollywood movies!)
Napoleonic era coins
East India company gold Mohur coins (total 17 kilos!)
Gold chains, crowns, rubies, plates, status.
Overall more than 1 trillion rupees worth assets. Richest temple in the world.
Gopal Subraminums Report
Supreme Court Amicus Curae Gopal Subraminums report says
Gold plating machine found @temple. And One of the locker trunk was not locked. Meaning
staff is replacing real gold asset with fake ones.
Temple trustees didnt maintain any account of gifts/donations in last 30 years, nor filed any
IT returns.
Locker B needs to be opened. Because there are reports that it has already been opened in
past, photographs were taken (to show the assets to foreign buyers in black market).
Hence temple staff creating rumors that itll create black omen. (may be Locker Bs
assets already sold off in the blackmarket!)
Even two new lockers found: G and H. Open them as well.
Large scale conspiracy- Dead rickshaw driver, acid thrown on one employee. Police not
doing anything- perhaps Royal rule predominate the social psyche of local juntaa.
CAG should audit.
What has Supreme Court done?
Appointed team of auditors under ex-CAG Vinod Rai (2G fame).
Appointed an IAS officer as executive officer of the temple.
Ordered the temple management not to transfer or sell any property until further order.

Next hearing in August 2014.

Mock Question: In his travelogues, Ibn Batuttas travelogues mentions
that He had gifted White slaves to Mohd.Tughlaq
that He was attacked by Hindu bandits
Riches of Padmanabhswami temple.
Answer
only 3
Only 1 and 2
Only 2 and 3
All
Australian Nataraja
Background: Two Chola temples in Tamilnadu
1.Sundaresvara, in Suthamalli
2.Sapthakanni temple in Sripuranthan,
close to Gangai-konda-cholapuram [one of the capital close to the Brihadeeswarar temple of
cities of the Chola kings.]
Chola period.
Total 18 ancient bronze sculptures were stolen from these temples.
One of them was a Bronze Nataraja idol from Chola period, from ^that second temple, and
was smuggled to Australia.
Australia will return Nataraja idol under its own Protection of Movable Cultural Heritage
Act,
Australia, as a signatory to a UNESCO convention on the illicit import, export and transfer of
ownership of cultural property.
features of the UNESCO convention:
Countries should keep National inventory/register of cultural goods.

Train to police, custom officers about fight against illicit trading of cultural objects.
Visit Mrunal.org/HISTORY For more articles on History and Culture.
Tags: Architecture, Rajtanil
[Judgement] Comptroller & Auditor General (CAG)s right to audit private companies
polity7 months AgoLeave a Comment
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
Sequence of Events
Supreme court ruled following:
Anti-Arguments
Private sectors CAG audit in past
Sequence of Events
Telecom companies have to share some part of their annual revenue with government: 6-10%
as license fees and 2-3% as spectrum usage charges.
2009, the department of telecommunications (DoT) ordered private auditors to check the
account books of some telecom companies. These private auditors were selected by
CAG.
They found some telecom companies had under-reported revenues, to pay less license fees
and spectrum fees to government of India.
June 2012: DoT issued notice to Airtel, Vodafone, Reliance and Tata to pay ~1600 crores.
Telecom companies went to TDSAT (the Telecom Disputes Settlement and Appellate
Tribunal) but defeated.
They went to SC,but SC directed them to approach Delhi HC first
Jan 2014: Delhi HC says DoT is right. CAG can audit such companies.

Companies goto SC again

April 2014: SC says Delhi HC is right = DoT is right.
Supreme court ruled following:
Natural resources (such as spectrum) belong to people. Whenever Union, State, Local bodies
or private entities are exploiting natural resources => theyre accountable to people and to
the Parliament.
In Natural resources, there is proliferation of PPP agreements, Revenue sharing agreementsbe it spectrum, oil, gas or mining. Therefore public interest is involved.
CAG is not carrying out this audit under Companies act.
CAG has to merely check whether companies paid the legitimate revenue share to
government or not? whether they paid their due share in licence fee and spectrum charges
or not?
Because every unlawful gain by company is a loss to Consolidated fund of India.
Therefore, CAG has right to audit money trails that come to Consolidated Fund of India.
Ordered Vodafone and Airtel to submit all account records to CAG.
Justice K S Radhakrishnan and Justice Vikramajit Sen.
Anti-Arguments
Made by Corporate lawyers and right wing columnists:
Weve not underreported anything. Licenses fees = 6 to 10% (telecome revenue). But these
CAG empanelled auditors give logic that License fees = 6 to 10% (total telecom revenue,
even that coming from non-telecom revenue!) Hence theyre wrongfully blaming us.
Were are not public sector undertakings (PSUs). We cannot be audited by CAG. At max,
our account books can be examined by shareholders under Companies Act, and IT
department under IT act.
Art.149 says CAG can audit accounts of union and states and of any other authority or body
as prescribed under the any law made by parliament. But parliament has made no such
law to audit private telecom companies by CAG. So DoTs executive decision is invalid.

SCs logic is every penny that comes to Consolidated fund of India, needs to be audited. So
on that logic, every company, every tax payer will fall under CAG audit.
By SCs logic, every company/individual engaged in natural resources will be subjected to
CAG audit- be it mining, power, oil-n-gas, highway, ports, television or internet service
providers.
Companies already face multiple audits by multiple agencies (DoT, TRAI, CCI, FMC, Sebi
and now CAG).
Companies will need to spend additional money on staff and record keeping. Itll hurt profit
margins.
Among foreign investors, there is already negative perception that India has too many rules
and regulation, hence not a good country for doing business. This new ruling will add
to that negative perception, will decrease the incoming FDI/FII.
In previous cases, Court already permitted CAG to audit electricity distribution companies
(Kejri) and GMR airport development. With this new verdict, CAG will get jurisdiction
inflation i.e. an institution is given powers to acquire more powers. Not good for balance
of powers and economy.
Because of CAG activism, IAS officers avoid taking decisions altogether. Similarly CAG
will make top business executives risk-avoiders. Then Company can never grow.
Private sectors CAG audit in past
Timeline of Events
Delhi HC permitted CAG to audit electricity distribution companies.
Power
Not yet. And now government also stopped giving highway PPP projects.
Roads
Private port owners have to share revenue with government. But CAG hasnot yet
Ports
audited.
Oil
and
Yes, doing audit of Reliance KG-D6 basin.
Gas
2005: PPP project for Delhi airport development. CAG found government gave this
Aviation
PPP project at throwaway prices to GMR. Leading to loss of ~1.6 lakh crore.
Spectrum CAG found that Raja is totally awesome.
Mock question (GS2)

What is the audit jurisdiction of CAG under Art 149? How is it expended by recent SC
verdict on telecom companies? (200 words)
Original provisions
Art 149 of the Constitution empowers CAG to audit the accounts of Union, States and other
bodies as prescribed by any law of parliament. Accordingly, CAG audits following accounts:
Consolidated funds of Union, States and UT with legislative assemblies
Contingency and Public Accounts of Union and States
Departmental undertakings, Government companies and other bodies financed by Union or
State.
Expansion under SC verdict
For spectrum usage, telecom companies have to share part of their annual revenue with
government as license fees and spectrum usage fees.
But in 2009, CAG empaneled private auditors found some telecom companies have been
under-reporting their annual revenue to pay less fees to government.
DoT ordered those companies to cough up the money but Case went to TRAI, TDSAT, Delhi
HC and finally Supreme court of India
The SC verdict has expended the scope of Art.149 in following manner:
Natural resources such as spectrum, oil, gas and minerals- belong to people.
Whenever Union, State, Local bodies or private entities are exploiting natural resources,
theyre accountable to people via Parliament.
Although CAG doesnt have powers to audit any private sector companies under Companies
act.
But when private sector is exploiting natural resources under PPP or revenue sharing
agreements, every unlawful gain by company is a loss to consolidated fund of India.
Therefore, CAG has right to audit the receipts of private sector companies that share revenue
with the government for use of spectrum.

~240 words
Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.
Tags: Judgement, Rajtanil
[United Nations] UN Security Sector Reforms (SSR): What & Why?
Diplomacy7 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
DONOT confuse this topic with UN Security council (Veto-body) reform.
Background
UN carter mandates every member to either troops or equivalent money in UN Peacekeeping
operations (PKOs).
The share depends on countrys economy & status in global governance.
While developed countries usually send money, developing countries such as India, Pak,
Bangladesh send troops. Because troopers gets more salary in UN, than in Parent country.
We are the largest troop contributor in PKO, have participated in 46 out 70 UN missions,
send 1.7 lakh soldiers and lost >150 of them.
Why UN Security Sector Reforms (SSR)?
Security forces play a pivotal role in ensuring human rights and justice to all, particularly
during civil war, natural disasters and other humanitarian crisis.
These Security forces include International peacekeeping forces, National troops, police, jail
authorities, intelligence agencies, border patrol, and even non state actors such as private
security contractors.
2007: UN Secretary General setup Security Sector reform (SSR) task force to make these
forces more accountable to people and to the rule of law.
April 2014: India presented its stand to SSR taskforce. Taskforce released first draft
resolution (known as Resolution 2151), accepting most of the recommendations by India.

Indias stand on SSR reforms:

In Africa, the deployment of UN peacekeeping force operations (PKO), is often seen as
Neo-Colonialism, hence doesnt get cooperation from locals.
Therefore, UN & (White) donor countries should keep minimum external footprint during
peacekeeping ops.
Instead we should ensure sustainable national ownership of the SSR process.
In other words, the strife-ridden (African) host countries should decide mandate the
functions/mandate of UN Peacekeeping troopers and how much Desi liquor quota should
be alloted to those foreign troopers.
(White) donor countries should not be calling the shots. (Poor) Host country should decide
their own Priorities.
SSR reform should also focus on post-conflict peacebuilding.
Meaning, After peace agreement is signed (Between xyz African government vs rebels),
Peacekeeping operations should focus on maintenance of public order until situation
returns to normalcy (instead of immediately packing the bags and leaving- to save UN
budget.)
UN peacekeeping mission should be run in cost-effective manner and not with cost-cutting
mindset.
Without political reforms at national (African country level) and International (UNSC) level,
any police, military reforms/charters will be hollow and unsustainable.
Sometimes soldiers of local ethnic majority dominate the peacekeeping corps, thereby act
discriminately and turn blind eye to human rights abuse.
Therefore, we should ensure impartial recruitments in peacekeeping forces.
UNSC Resolution 2151 on SSR
Included most of the points made by India
Bulk of the UN peacekeeping ops take place in Africa.
Here, SSR play crucial role in peace, stability, poverty removal and good governance.

The Sovereign (host African) country should decide the mandate of (international)
peacekeeping forces.
If Rule of law is strictly enforced, many civil wars & conflicts can be prevented.
Therefore, UN should help not only during crisis but also for long term capacity building of
these (African) armies, police, jail authorities, border patrol, immigration service and
judiciary.
UN should also help in rehabilitation of former rebels, child soldiers, victims; disarmament
of weapons; arms embargo; combat organized crime and corruption; ensure gender
justice etc.
SSR requires broader political reforms with participation of civil society and jholachhap
NGOs.
Include more women in security forces, exclude (African) mass rapists, mass murders and
child right abusers from joining national security forces (usually after peace agreement
between African rebels and bogus government such criminals get plump posting in the
army and police.)
Mock Question
Examine the need for Security Sector Reform (SSR), and discuss the stand of India and
UNSC
on
this
issue
(200
words)
Why need?
Security forces are essential to ensure human rights and justice to all, particularly during civil
war, natural disasters and other humanitarian crisis.
In last decade UN sent nearly a dozen peacekeeping Ops in Africa- they played a pivotal role
in peace, stability, poverty removal and good governance,
but even after peace agreements between government and rebels these African countries
have relapsed in turmoil (e.g. South Sudan)
To make peoples live safer, these UN missions must become more accountable and
effective.
Therefore, in 2007 UN Secretary General setup a task force on Security sector reforms (SSR)
Indias stand

To prevent the feeling of Neo-Colonization in (African) host countries, UN should keep its
footprint minimal during peacekeeping operations.
We should ensure sustainable national ownership of the SSR process- host country should
decide the mandate of UN ops based on their political priorities.
UN peacekeeping mission should be run in cost-effective manner and not with cost-cutting
mindset.
They should ensure public order until normalcy is brought.
Clean and Impartial recruitment in (national) security forces, to protect the human rights of
ethnic minorities.
UNSC Resolution: more points
In addition to above points by India, UNSC resolution in 2014, also includes following:
Long term capacity building of armies, police, jail authorities, border patrol, immigration &
judiciary.
Rehabilitation of former rebels, child soldiers and victims.
Disarmament & arms embargo
combat organized crime and corruption
Broader political reforms with participation of civil society.
Gender justice, more women in security forces.
~250
words.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-Bodies-World, Rajtanil
[Women in History] Hazrat Mahal, Laxmibai, Ahlyabai Holkar, Jijabai, Rani Rudramma
& more
History7 months Ago90 Comments

For Indian History, I recommend

Spectrum- Rajiv Ahir

Hazrat Mahal: 135th Anniversary

Eminent Women in Indian History
Hazrat Mahal: 135th Anniversary
Hazrat Mahal = 135th Anniversary, hence she automatically becomes important for UPSC Mains
2014.
Just
like
Maulana
Azad
in
Mains-2013
Q.Write a note about the contribution of Begam Hazrat Mahal in Indias struggle for
Independence.
(200
words)
1856 under Doctrine of Lapse, Lord Dalhousie exiled the Nawab wajid Ali shah of Awadh to
Calcutta. His wife, Begum Hazrat Mahal took the charge of the state, and played a prominent
role in the mutiny of 1857
Provided Leadership to rebels of Lucknow, and fought in the name of her minor son Birjis
Qadr.
In the war of Alambaug, herself fought against British troops.
Assisted Nana Saheb in Kanpur.
Lord Dalhousie asked the help of Nepals Rana Jang Bahadur and offered areas of Gorakhpur
and Awadh in return. Begum countered Dalhousies move by offering the Rana three
more province of Awadh apart from Gorakhpur.
Assisted Maulvi Ahmedullah (Danka Shah) against attack on Shahjahanpur (Firozabad) and
defeated Henry Lawrence.
British again attacked great force, she was defeated but escaped to Nepal.
British offered pension to her if she gave up her claim on throne for his son. But Begam
denied and chose to live in Nepal, where she died in 1879.
Begum Hazrat Mahal fought with great fervor, showed exceptional courage and organisational
skills. She had ability to unite people from different class and provided an instrumental
leadership during Indias first struggle for independence.
~200 words.

Eminent Women in Indian History

Every year, Women and child Development Ministry gives Stree-Shakti Purarskars. Winners not
*that* important but the historic women associated with them= important for MCQ. Where they
belong to, what time era they lived in? (Exact years not important. But chronology is).
WHEN WHERE WHO
100-300 TN

12591289

WHAT
character in Tamil epic Silapathikaram

Kannagi

Madurais Pandyan king murdered her husband, she

took revenge by putting a curse on the city.
ruler of Kaktiya dynasty, in Andhra Pardesh (capital
Warangal) in 13th century.

Andhra Rani Rudramma

defended her kigdom against Cholas and Yadavas.

mother of Shivaji the founder of Maratha empire.

15981674

MH

17251795

MP

18281858

UP

Mata Jijabai
also known as rajmata Jijabai Bhosle,
queen of Malwa kingdom, after death of her husband

Rani Ahlyabai
Holkar
Rani Laxmibai

patron of Hindu temples.

we already know why she is famous
Naga spiritual leader and freedom fighter.
1932: Imprisoned for life at age 16

19151993

Manipur

Rani Gaidinliu
Zeliang.

1947: released
Nehru gave her title Rani
Got Padma Bhushan

Mock MCQs:
Q1. Correct Pair
Rani Rudramma: Kerala
Rani Ahlyabai Holkar: Maharashtra

Rani Gaidinliu Zeliang: Assam

None of Above
Q2. Correct Chronology: (1) Rani Gaidinliu Zeliang; (2) Rani Ahlyabai Holkar; (3) Mata Jijabai;
(4) Rani Rudramma
1234
2143
2134
4321
Correct answers:
None of above
D- 4321
Tags: Freedom-Struggle, Rajtanil
[Current] April-Week2-P2: Economy: SEBI guideline on Crowdfunding, Public-Sector
Banks CMD post bifurcation, IRDA ambulance project, mains answerwriting practice
Current Affairs Weekly7 months Ago53 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
E2: Crowdfunding- Need SEBI guidelines
E3: Bifurcation of CMD post in Banks
E4: IRDAs highway ambulance pilot project
Prologue
Current events in 2014 April Week2 (8-15th)

Part 1/3: Environment, Polity, Polity, History and Culture: Coming soon.
Part 2/3: Economy= youre here. (nokia taxation deserves separate article, coming soon)
Part 3/3: Diplomacy-international relations. Done click me
Before reading further, answer following questions:
UPSC Mains General Studies Paper 2 (200 words and 7 minutes for each question):
Examine the need for reforms in IMF. What will India gain from this?
Explain Crowdfunding and examine the need for SEBI regulation of this activity in
India.
Interviews:
Whats the difference between Crowdfunding and Crowdsourcing?
What are the limitations of crowd funding?
Whats the difference between Chairman and MD?
Why is Raghuram Rajan insisting that Public sector banks should keep the post of
Chairman and MD separate?
Why is Chindu opposed to Rajans idea?
Recently IRDA launched highway ambulance pilot project in Hyderabad. Why
should IRDA bother with such things? Shouldnt this be left to health department?
E2: Crowdfunding- Need SEBI guidelines
Q.Explain Crowdfunding and examine the need for SEBI regulation of this activity in
India. (200 words)
Meaning:
Crowd funding is the process of soliciting money from general public, for business purpose.
But outside the traditional mechanism to raise capital i.e. Debt or Equity.
Characteristics:

Entrepreneur retains 100% ownership, patents and copyrights.

Ideal for startup tech/IT entrepreneurs, budding music composers and authors- who may not
get easy access to capital via traditional sources viz. IPO, Venture fund, Angel investor or
Bank loans.
Crowd doesnt always receive share in the profit, dividend or interest.
Often rewards are symbolic e.g. patron photo on the company website, free sample
products, software copies, concert passes etc.
Need for SEBI regulation:
In India, crowd funding was on small scale mainly for artistic ventures- music CDs, novels,
documentary movies etc.
But recently, entrepreneurs seeking funds for renewable energy projects, IT-gadgets and even
promising guaranteed returns to public after break-even point.
Scamsters may enter this field for money-laundering and dupe gullible small investors.
We already have SEBI ordinance, Prevention of Fraudulent and Unfair Trade Practices
Regulations to deal with them. But since crowdfunding is mainly done via social
networking sites and foreign web platforms such as kickstart.com, hence separate
guidelines necessary.
Young entrepreneurs should get easy access to capital but simultaneously we need a safe
environment for small-investors: post Sahara, NSEL and Saradha scams.
Even International Organization of Securities Commission (IOSCO) recently called for
greater checks on Crowdfunding.
Consequently, SEBI, as a member of IOSCO began framing guidelines for crowdfunding.
~250 words
Crowdfunding vs Crowdsourcing
(Interview Q) Whats the difference between Crowdfunding and Crowdsourcing?
Whatre the benefits and limitations of Crowdfunding?

CROWDFUNDING
CROWDSOURCING
crowd + funding = pooling juntas fund to crowd + out sourcing= outsourcing the work of a
launch a business = crowdfunding.
traditional employee to aam-juntaa
Profit motive is present in most cases Profit motive may or may not be present. ExampleIll sell this product/technology at later seeking public help to prepare tsunami missing
stage.
persons database.
You seek cash from juntaa to start new Here youre not seeking cash from juntaa but giving
business.
them some work to perform.
What are the limitations of crowd funding?
#easier said than done

The conventional method of operating crowd funding is following:

you open an account at a crowd funding site such as kickstarter.com

There you Post an article/video explaining your business project and write an amount say I
need 1000 $.
kickstart.com will let you use their advertisement platform for a fixed deadline (e.g. 30 days)
Within that much time if juntaa doesnt pledge total 1000$ then youre gonecase. You dont
get a single penny.
If you decide to run Solo campaign e.g. open your own blog/website and seek funding=
hard to gain google search engine visibility quickly. In that case even 10$ wont come in
a year.
>50% of the projects fail to attract the minimum investment required.
Some Backers dont give money but pledge support in other forms e.g. Ill ask my
facebook friends to read about your products, Ill post review video on youtube etc. But
often their enthusiasm fades away after few weeks.
#social media following
You need high presence on facebook/twitter/social media to attract such juntaa.
Therefore, its easier for Yoyo Honey Singh to get crowdfunding for his next music album
than Anoop Jalota.
#hard to get advice
For business loans, project financing- chartered accountants can help you.
For IPO- investment bankers and underwriters can help you.
But similar consultancy services is absent in crowdfunding, especially in Third World
countries
So, you have to go by trial and error and google searching- which is not always suited to your
requirements.
Much of your time and creative talent is wasted in attracting in the juntaa to fund your
project rather than working on the project itself.

E3: Bifurcation of CMD post in Banks

(interview)
Whats the difference between Chairman and MD?
Why is Rajan insisting that Public sector banks should keep the post of Chairman and MD
separate?
Why is Chindu opposed to Rajans idea?
CHAIRMAN
MANAGING DIRECTOR (MD)
IPO => Shareholders=> general meeting=> Board
of directors elected.
Board of director appoints the MD.
the chairman = head of the board of director
they form overall policies of the company, decide
how much of the profit should be re-invested in
the company and how much should be given to
shareholders as dividend.
long term vision

MD looks after day to day

operations of the company- just
like chief Secretary looks after
state administration.
Day to day firefighting.

In public sector banks of India- the post is combined: Chairman + MD = CMD.

favour

simplicity in management
efficiency in decision making

Two power centres (Chairman vs

MD)= lack of coordination,
powerplay, Someones ego gets
hurt like JaiKant Shikre. Hence
better let only one person have
both posts.
Eliminates possible politics and ego
clash between two people at the top

against CMD post

Conflict of interest. Chairman needs to see the
interest of shareholders, while MD has to see the
interest of company. Often both are not the same.
example company wants bigger portion of the
profit should be re-invested while shareholder
want bigger portion of the profit as dividend.

Same person is holding two seats= Leads to

dictorship.

Germany, Netherlands have laws that same person

cannot hold both posts.
in USA many high profile scams by CMD=
government looking to bifurcate the post.

Why does RBI Governor Raghuram Rajan want CMD to be bifurcated into two separate
posts?
The CMD of Indian PSU banks enjoys absolute powers.
in Public sector banks, board of director mere rubber stamps of CMD. Hence bifurcation of
CMD post = Board will be empowered.
Once RBI allowed Global Trust Banks chairman to hold MD position as well=> bank gets
involved in Ketan Parkesh Scam=> collapse and merged with Oriental Bank of
Commerce.
2004: RBIs A S Ganguly Committee recommended the bifurcation of the CMD post in
Banks.
Private sector banks started implementing.
But Finance ministry didnot implement it in Public sector banks.
Why did Chindu reject Rajans idea?

CMD of public sector banks does not enjoy absolute powers. Theyre accountable to
government of India (because government is majority shareholder).
CMDs of public sector banks are thorough professionals, having long experience in the
banking sector. Theyre not scamsters like Rajan believes!
Bifurcation of CMD post may lead to Sonia vs Mohan rubberstamp situation like Sanjay
Baru explained in his book The Accidental Prime Minister : The Making and Unmaking
of Manmohan Singh.
E4: IRDAs highway ambulance pilot project
Background
Road accidents = loss to all type of insurance companies: vehicle insurance + health
insurance + life insurance.
For every 100 rupee premium earned, the insurance companies end up paying 140 rupees.
Hence IRDA started this project
IRDAs ambulance project
pilot study @ Hyderabad- Vijaynagar highway
Collaboration with insurance company, NHAI, police, doctors and IT professionals.
24/7 mobile police van with speed gun, breath analyzer and other gadgets to prevent rash
driving under the influence of desi liquor.
High-tech ambulance to provide emergency relief during highway accidents.
Both Police van and ambulance available at every 50 km of this route. Centralized
coordination via call centre @Hyderabad- even tie up with insurance companies for quick
clearance of claims.
Benefits of this pilot project:
understanding accident patterns in India
Design long term solution for accident prevention, medical relief and insurance claims.

Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far.
Tags: Rajtanil
UN Bodies] ECOSOC, UNESCO, UN-IOC- structure, functions, mandate
Diplomacy7 months Ago69 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
D1: UN-IOC Sports for development and Peace
D2: UNSECO and International literacy day
D3: UN-IOC Sports for development and Peace
D1: UN ECOSOC structure Function
Q. Write a short note on the structure & function of UN-ECOSOC (100 words)
Since UN ECOSOC had released this Arab integration report (and it appeared in Hindu &
Frontline)
hence
this
Chillar
body
becomes
super
important!
anyways,
lets
frame
the
answer:
Answer
key
points
Economic and Social council (ECOSOC) is one of the six principle organs of United Nations.
Structure
ECOSOC membership is based on geographical representation. Out of 54 seats, specific
quotas fixed for Africa, Asia, Europe, Latin America, Europe etc.
Theyre elected from General Assembly for a term of three years.
Four UNSC members US, UK, Russia and France- are reelected continuously, because they
provide majority of the funding to ECOSOC.
Decisions by simple majority vote.
Presidency changes annually.
NGOs also given Consultative status.

Functions
Direct and coordinate the economic, social, humanitarian, and cultural activities of the UN
and its agencies; sends progress reports and resolutions to UNGA.
Conduct studies pertaining to human rights, narcotics, population, demographic change,
social development, status of women, role of sci-tech etc.
~130
Answer Ref:

words.

NIOS Political Science Module: Chapter 32, Page 340-41

Britannica Page
UNSECO & International literacy day
Q. Write a note on structure and functions of UNESCO and international literacy day 200
words.
UNESCO (UN educational scientific and cultural organization):
Specialized agency of UN, HQ- Paris
Structure of UNESCO
Member states meet every 2 years.
General
conference

Vote on policies, programs, budget

Elect executive board, DG every 4 years.

Executive board 58 members. Overall Management of UNESCO
Director General. Head of the organization
DG
&
Secretariat
Secretariat and staff- drawn from civil servants of member states.
UNESCO Objectives:
International collaboration through education, science and culture interactions
Promote values of UN charter: rule of law, justice, human rights, fundamental freedom
Peace, eradicate poverty, sustainable development

UNESCO: 5 Function / Programs:

Education
For all
Natural science
promote curiosity and learning
Social and human science
To solve the social challenges
Culture
To foster Cultural diversity
Communication and information To promote Inclusive knowledge.
UNESCO: International Literacy day
UNDP report says ~880 million illiterate adults in the world. 2/3rd of them women.
On the 8th September, 1965, Education ministers met in Tehran, to discuss world literacy
problem.
Hence that day celebrated as International literacy day.
2014: theme Literacy and sustainable Development.
UNESCO celebrates this day to remind the world that
Literacy is a human right and the foundation of all learning.
To mobilize public support against illiteracy.
~219 words
D3: UN-IOC Sports for development and Peace
UN and IOC has signed an agreement Sports for development and Peace
To use sports for promoting peace and economic development.
Features
Joint sporting initiatives with help of International Olympics Committee and its allies vs.
UN, its member states, Specialized agencies and goodwill ambassadors (like Suresh
Kalmadi and Sheila Dixit.)
Educate youth via sports: learn while you play
Sports to increase interaction of margined society with rest of the world .

In conflict areas like Syria and S.Sudan, Sports can help restore some normalcy.
Sports can motivate children to enroll in schools.
Sports can empower girls, give them leadership skills.
Even HIV, drug abuse and environment protection messages can be taught via sports.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-Bodies-World, Rajtanil
[Treaty] Arms Trade treaty, Features, Indias stand on ATT
Diplomacy7 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Arms Trade treaty is an old topic (2012) but resurfaced in news again, because some countries
ratified
this
treaty
in
April-2014.
Q. Discuss the salient features of Arms Trade treaty and Indias stand on it (200 words)
Features of Arms Trade Treaty (ATT):
Aims to prevent diversion of arms for crimes and genocides.
By curbing illicit trade of conventional firearms, tanks, artillery, attack helicopters, warships,
missiles and ammunitions.
Puts obligations on both importing and exporting country.
Importers have to provide detail about usage of arms purchased, and assure the exporting
country about compliance with this treaty.
Exporting nation prevent arms transfer, if they suspect possible usage in genocides or crimes
against humanity.
Mechanism for information sharing among member states to prevent diversion of the arms.
Indias stand on ATT

India abstained from voting on this UN treaty, because:

Treaty speaks about crime and genocide but does not boldly underline the diversion of
weapons to terrorist and non-state actors. In past, USA and its allies have armed of rebels
in Nicaragua, Syria, Libya, even, Al-Qaeda in Afghanistan.
Treaty is biased: puts higher responsibility on importer country than exporter.
Exporting nation can stop arms-ammunition supply, citing reason of poor compliance with
the treaty. This is open to misuse- during diplomatic rifts such as Devyani case.
IAEA and OPCW have mechanism to check compliance. But such strong verification
mechanism is absent in ATT.
Does not explicitly cover drones and grenades.
India always favored disarmament and regulations over international trade of weapons. But ATT
is neither inclusive nor balanced in nature. Therefore, India has abstained.
~230 words.
Side notes:
Some Disturbing numbers:
More than 12 billion bullets manufactured each year (more than enough to kill every human
on earth- total h uman population is ~7 billion.)
Almost 30 million people have to flee their homes each year, because of the armed conflicts
in third world
60% of the human rights violations involve use of small arms
75% of Worlds weapons are supplied by just six countries: P5 + Germany
Signing vs Ratification
Every treaty / convention has two stages:
Passing/Signing the treaty (in United nations). This ATT treaty is already passed in UN.
Ratifying the treaty (in your countrys parliament). This ATT treaty will come into force if
atleast 50 countries ratified it.

Stage #1: Passing in UN

>150 voted yes= so treaty is passed.
YES
Iran, Syria and North Korea (as the common sense suggests!)
NO
India, China, Russia, Egypt, Myanmar, Saudi Arabia and Sri Lanka abstained.
India is among the top-importers so it is understandable we dont like it
ABSTAINED
but even China and Russia (top exporters) they also dont like it.
Means thorough revision of ATT necessary.
Stage #2: Ratifying @Parliament
ATT will come into force once 50 countries ratify it
Meaning you put this treaty on the table of your parliament, when majority of the MP vote
YES, then you send a file back to UN office=> that means xyz treaty is both SIGNED
and ratified by our country.
As of April 2014 (week1), total 18 countries have ratified this treaty.
5 out of top-10 arms exporters chillar parties
Bulgaria
Croatia
Denmark
Britain
France
Germany
Italy
Spain

El Salvador
Estonia
Finland
Hungary
Ireland
Latvia
Malta

Romania
Slovakia
Slovenia
In USA- this ATT treaty yet to be ratified. Many senators oppose it. Why?
American Gun Companies dont like this treaty (after all, they make truckload of cash
exporting weapons to rebels and mass-murderers in Africa)
(So, as the common sense suggests), theyd have paid suitcases to Senators, to oppose this
ratification in US Congress.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-Bodies-World, Rajtanil
[Economy] New Bank Licences: Bandhan, IDFC, Bharatiya Mahila Bank; Differential
Bank licences, Bimal Jalan Committee, Narsimhan Committee; arguments favor against,
Bank nationalization, Historic evolution of Banking sector in India
Economy7 months Ago136 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
Banking sector in British India
Birth of RBI
Banking sector Post Independence
Narsimhan Committee I (1991)
Bank licences: 1st Round (1993)
Narsimhan Committee II (1998)

New Bank licences 2nd round (2001)

New Bank licences 3rd Round (2013-14)
Bandhan Microfinance and IDFC
In principle approval
What is Differential licenses?
New Private banks: Pro and Against arguments
Bharatiya Mahila Bank (2013)
How is it a Mahila Bank?
Business plan of Mahila Bank?
Why Mahila Bank is mere publicity stunt?
Prologue
important: SSC has uploaded halltickets for reexamintion of CGL-2013 to be held on 27th
April. Respective players check your regional SSC sites accordingly. now coming to the
subject
Bandhan and IDFC got new licences, you already know that. its just two line current affairs. but
for SBI /UPSC interviews, we need to some background information for questions like:
After Sahara Scam and NSEL crisis, why should we risk giving bank licences to private
companies? In fact why not simply nationalize the existing private sector banks so they
cannot do any scams!?
We already have large banks such as SBI, ICICI, BoB- all of them having pan-India
presence, capable of fulfilling the goal of financial inclusion, then why is there a need to
get new private sector banks?
To answer such Devils advocate type interview questions, we need to go back in history:
Banking sector in British India
There were two types of banks

British Banks
Swadeshi Banks
First, East India company establishes
three Presidencies in IndiaParallel to British banks, Indian banks also setupBombay, Bengal and Madras
Allahabad Bank, Punjab national bank
(PNB), Bank of Baroda (BoB), Canara bank
Three Presidency banks setup in those
etc.
cities. Later merged into one
Imperial bank (21)=> SBI (55)
Target audience= big merchants, particularly rawTheir target audience = British army, civil
material exporters in Bombay and Madras
servants and judges
Presidency.
Overall, neither British Banks nor Swadeshi banks helped in the financial inclusion of poor
people, they still had to rely on local money lenders and Zamindars.
Birth of RBI
By early 30s, there were >1200 banks in India!
But all of them under Companies law- there was no banking regulation, no RBI, no SLR,
CRR, repo rate, reverse repo rate etc. So the Civil service & BankPO aspirants of that era,
were relatively Stress free compared to present generation.
Problem starts with Great American depression (29) => sharemarket and companies of US
and Europe collapse= raw material import declines = desi merchants cannot repay loan
EMIs = Indians banks starts collapsing one by one.
therefore, British Indian government setups Reserve bank of India to supervise over these
banks (34)
Banking sector Post Independence

Click to Enlarge

from mid-50 onwards, there is gradual expansion of banking sector in India

SBI, ICICI, PNB, BoB all start opening more and more branches.
but still target audience= merchants, urban (upper) middle class and industrial houses
Branches increased? YES
Rural penetration? NO

Did they help aid in Five year plans like giving cheap loans to farmers and microenterprises? NO
All these banks were in the hands of industralists. (who owned majority shareholding => can
vote majority of board of directors=> banks policy decision will only be made to suit
those industrialists e.g. opening branches near factory-townships, giving loans @cheap
rate for setting up new factories and so on.)
Nationalization
Government gets impatient with ^all this.
starts nationalizing banks (By taking over the ownership from those industrialists)
Year How many? who?
55 1
Imperial bank (SBI)
69 14
banks with >50 cr. deposits.
80 6
banks with >200 cr. deposits (Andra, Vijaya, Oriental bank of commerce etc.)
Nationalization: more problems
In theory, nationalization =government becomes majority shareholding in those banks =>
government can pick board of director of her choice = bank takes decisions to suit
governments Five year plan requirements= everyones happy, right? nope
In reality, nationalization =created more problem than it solved. for example
Now all the board members = politicians, their relatives, retired IAS/IPS etc. Result?
Professionalism =nope, sycophancy=yes.
Banks were forced to give loans @throwaway prices to farmers/ small enterprises, sometimes
even cost of giving loan (staff salary, light bill, office rent etc.) would be higher than the
profit involved.
Local politician interfered in operations. Run loan mela in our Constituency, open all
branches in RaiBareily and Amethi only, pass applications of our chamcha-log. They
would get lakhs of rupees @4% interest rate (to buy cattle) and then circulate the same
money to farmers @36% interest rate and so on
When banks tried to recover loan money from such political elements, t heyd get stay order
from courts, then taarikh pe taarikh.

This politicization even came into Bank employee unions- theyd always demand higher
wages and lower working hours, irrespective of how much profit bank made.
adding insult to injury, RBI kept the CRR and SLR very high (15 & 40% respectively)
=very less money left for banks to lend.
Business man cannot get easy loans = no business expansion =export declines =in a way all
this contributed to the Balance of Payment crisis (BoP) in 1991.
moral of the story = nationalization is not a solution even if Sahara, NSEL, Ramalinga Raju,
Ketan Parekh, Harshad Mehta or Mr.XYZ is doing scam- that doesnt mean you should
nationalize everything.
Narsimhan Committee I (1991)
By government of India in 1991. It recommended following:
recommendation
result?
Government / RBI mustnot regulate the banks
loan interest rates. Banks should be allowed to RBI adopts BENCHMARK PRIME LENDING
decide their home loan, bike loan etc rates by RATE (BPLR) => nowadays Base rate system.
themselves.
setup Debt recovery tribunals. so loan
DRT setup in 1993 => later SARFAESI Act in
defaulters cannot get stay orders from courts,
2002 to give them more powers.
no more Taarikh pe taarikh
done. banks can open branches anywhere. only
Liberate Branch expansion policy. Let the
condition 25% of the new branches each year
banks open branches outside Raibarely and
must be setup in rural areas. For more read
Amethi also.
Nachiket Committee article.
Reduce CRR and SLR so banks are left with
Done, gradually reduced. from (15,40)=>(4,23)
more money to lend.
NBFC regulatory framework
done
done, SBI shares sold, nowadays government
government should reduce its shareholding
owns ~60%. (this facilitates entry of
from public sector banks.
professionals in the board of directors)
Allow entry of private sector banks and done, leads to first round of bank licences,
foreign banks.
explained below:
Bank licences: 1st Round (1993)

RBI invites application 1993

New private banks start Operation: 1994-95 onwards
Total ten private banks given licences: 6 still running + 4 closed down.
6 running
ICICI
HDFC
UTI=>became Axis bank (2007)
IDBI
Indus
DCB
All of above running successfully, so that gives us positive arguments- that not all private
entities are seamstress. in fact, ICICI, HDFC, Axis = top banks of India, even have presences
abroad, employ lakhs of people. Hence no harm in giving bank licences to private players.
4 closed down
Bank

merged with why?

recall Ketan Parekh- he took money from Madhupura cooperative
Global
Oriental bank Bank, Abad and used it to run scam in Sharemarket. Same Ketan had
Trust Bank of Commerce also taken some money from Global Trust bank also=> news stories
=>junta panics and runs to take out all money=> business collapsed.
Bank
of Centurion
loss making. hardly any depositors and loan takers, couldnt stand in
Punjab
bank
competition against SBI, ICICI, BoB etc.
Centurion
HDFC
same as above
bank
Times
HDFC
same as above
Bank
These four #EPICFAIL banks give us the negative arguments that private companies must not
be given bank licences. Because they can also close down like ^these, creating panic among the
clients, blood pressure, heart attacks and suicides.

Anyways, moving on
Narsimhan Committee II (1998)
Introduce Voluntary retirement scheme (VRS) in public sector banks.
Legal reforms for loan recovery. =>SARFAESI 2002
Computerization, electronic fund transfer, legal framework
Payment and Settlement Act=>Retail (ECS, NEFT, Card) + Wholesale (RTGS)
Continue allowing entry of private banks and foreign banks.
New Bank licences 2nd round (2001)
2001: applications invited
2003-04: winners launch banks.
From the earlier #EPICFAIL of those four banks, RBI also learned lesson.
This time RBI gave licence only two strongest contenders:
Kotak Mahindra
Yes Bank
New Bank licences 3rd Round (2013-14)
2010: Finance minister says we need to give more licences.
2013, February: RBI invites applications with following conditions:
Conditions/guidelines for new bank licence application:
must include class 10-12-college marksheet, school leaving certificate and three passport
sized photos
10 years successful work-ex (=Fit and proper criteria)
minimum capital Rs.5 billion

Will have to get shares listed on stock exchange within three years, bring down voting rights
to 15% within 12 years. why?
say Anil Ambani gets licence, in the beginning hed have ~100% ownership and decision
making. But in the long run such one man game show = not good in banking sector. So
hell have to get the shares listed within three years.
once shares are listed, junta starts buying those shares= they elect the board of directors
(BoD) and then BoD makes policy decisions of the bank, appoints CEO and top
executives and so on.
By 15 years, Anil should sell majority of his shares to junta- so that he holds barely ~40% or
less of the bank shares = he cannot have lot of say in banks decision making = bank
doesnt run according to his whims and fancies =rational decision making.
Anyways moving on to the rules
foreign shareholding must not be more than 49% (for the first five years)
50% of the directors should be independent (=not chosen by majority shareholder e.g. Anil)
Such bank must not invest in shares/bonds of its parent group (e.g. Anils telecom/electricity
business)
must have viable business plan
must open atleast 25% branches in the unbanked rural areas. (as per latest census there are
~10000 such places)
Have to comply with PSL (priority sector lending) norms.
Many other technical rules but for descriptive/interview answer- above 9-points sufficient.
Total 26 applied, including Anil Ambani, Birla, Bajaj, Tata, Muthoot, Indian post.
later two left (TATA, Videocon)
+ one came (KC Land and finance ltd.)
Thus 25 left.
Bimal Jalan Committee

Now Rajan had to decide winners among those 25 applicants.

Sep 2013: Rajan sets up RBI High level advisory Committee to process those applications.
Bimal Jalan (Chairman) Former RBI governor
Ex-RBI Deputy Governor
Usha Thorat
Ex-Sebi chairman
C B Bhave
RBI board member
Nachiket Mor
Important: Bharatiya Mahila Bank also launched in Sep13 (but its public sector bank, has
nothing to do with this third round of Bank licences or Bimal Jalan Committee)
Anyways, moving on
November 2013 Bimal first meeting
February 2014 Bimal submits report
March 2014
Rajan fears Election commissions model code of conduct, seeks their approval.
st
31 March
EC gives approval
st
2 April
Two winners announced. (Bandhan Microfinance and IDFC)
Bandhan Microfinance and IDFC
Bandhan Microfinance

IDFC (Infrastructure Development and Financial

Corporation)
Mumbai
infrastructure finance company
Rajiv Lall

West Bengal
Micro-finance company
Chandra Shekhar Ghosh
net worth 1100 Cr., 45% branches in rural
net worth 21000 cr., but rural presence low.
areas
These two are given only in-principle approval. Meaning
In principle approval
Within 18 months
must get net worth Rs.1000 crore
Must open 25% branches in unbanked rural areas.

once they fulfill above conditions, RBI will give them licence under Banking Regulation Act,
1949 [Sec.22(1)]
Once they get licence under BRA, then we can open current account, savings account etc.
RBI has also prohibited the promoters (Ghosh and Lall) to hold CEO position in their respective
banks. This is meant to prevent conflict of interest. Because in past, Global Trust banks CEO
Ramesh Gelli was accused of involved in Ketan Parekh scam.
Curiously though Yes Banks promoter Rana Kapoor enjoys both MD and CEO position in his
bank!
India post
For Indian postal department, Bimal Jalan said RBI should consult separately with
government and give licence if necessary.
Kumar Mangalam Birlas name involved in Coal block scam, Anil Ambani in 2G case, hence
licence not given.
What is Differential licences?
Total 25 applied, but only two won so what about the remaining 23 contenders? Will they get
any consolation prize? Yes.
Rajan said they can later apply for Differential bank licences.
Differential bank licences = for opening payment banks, wholesale banks etc (whore not
full banks like SBI, PNB etc.)
for more on these differential banks read following articles on Nachiket Committee:
Wholesale Banks
Payment Banks
New Private banks: Pro and Against arguments
Anti arguments

Pro arguments
Existing banks not sufficient for 100% financial
There is no need for additional private
inclusion.
banks, existing banks sufficient.

only one in two Indians have bank account

Only one in seven Indians gets loan from banks
(others have to rely on the evil money lenders
who charge 36% compound interest rate!)
As per Census 2011
Only 67% of Urban households getting banking
services.

well in that case, government should

launch some Rajiv Gandhi scheme to open
bank accounts for everyone, there is no
need to get new private banks! Besides,
these two (Bandhan and IDFC) are too
small to be any relevant in financial
inclusion.

As per your own table, Bandhan already

has 45% of her branches in rural area as
microfinance company, then why do they
need bank licence? Theyre already doing
financial inclusion!

Only 54% Rural households getting banking

services.
Throwing sakaari money, subsidies and schemes
to solve every problem = bad idea. Business
has to become vibrant by itself.
It

is true both Bandhan and IDFC are

mosquitos compared to elephants like SBI
and ICICI but every maestro was an amateur
someday.
as a Microfinance company, Bandhan cannot
open savings account / current account etc
(Because they dont have bank licence)
as a result, such microfinance companies have to
borrow money from other banks, NABARD
etc @12-15% interest + have to maintain
profit margin=> they give loans to poor
people yes, but at 23-25% interest rate.

but if same Microfinance company was given

bank licencee, they can accept publics
deposit money under savings account ~4%
interest, fixed deposit ~9% interest =>
cheaper way to arrange loan money. can give
loans to poors at reasonable rate like 10-15%
In the first round, ten banks were given The same licensing round gave us giants like ICICI,
licence,
four
of
them
closed Axis bank and HDFC. It is wrong to think every
down..private sector cannot compete private player is out there only to bully, loot and
with existing giants. They try to take steal.

shortcuts, hence all the scams.

RBI has taken quick and firm action against those
The same ICICI Bank, HDFC Bank and
three banks. And the inquiry revealed it wasnt the
Axis Bank were caught violating KYC
mass scale organized money laundering operation but
norms and doing money laundering case in
irregularity on part of certain branch managers to
the Cobra post sting operation.
overcome the targets.
These two small players cannot even
They dont need to open ATMs anyways, because of
afford to launch all India ATM network,
the White label ATM scheme.
forget about opening branch offices.
In the early 90s, all nationalized banks were heading
towards #EPICFAIL, so to correct the course, RBI
had to get in more players to breed competition.
RBI should gave given licences to more
Same is not the case today- two new banks are good
applicants, like they did in the 90s (ten
enough. If Rajan gave licence to 15-20 applicants at
licences).
once => too much competition => predatory pricing
like in aviation industry => smaller players will be
wiped out.
In the end, Business is all about the survival of the
Public sector banks are already bleeding
fittest. Public sector banks and their trade unions
because of the heavy marketing and teaser
should learn to perform or perish. Customer deserves
rates offered by Private banks. Two more
better services. Just to make life easier for sarkaari
such banks will increase the misery of the
banks, we must not prevent the entry of private
public sector banks.
sector.
Just two new banks cannot create Subprime crisis.
Rajans American ideas of free market,
RBI is much more vigilant and strict than their
wholesale banks, differential licenses etc.
American counter part US feds. It is wrong to assume
will ruin Indian banking sector and
that Rajan comes from America so he is
Economy. What works in USA need not
automatically an evil capitalist, and all the
automatically work in India as well. This
hushiyaari (smartness) is with Newspaper
will lead to subprime crisis like disaster.
columnists in The***** only.
More pro-con arguments can be added, post them in comments below!
Bharatiya Mahila Bank (2013)
This has nothing to do with Bimal Jalan Committee or third round of private bank licences. But
to confuse you in MCQs, the examiner will deliberately include some facts related to Mahila
bank. Therefore, you must know the basics:

Budget 2013: Chindu announced to open this bank with 1000 crore Rs. (=100% State Owned
/ public sector bank.)
Keep in mind, Chindu also setup Nirbhaya fund for women security initiatives. But thats
separate 1000 crore fund and this is separate 1000 crore bank. (tricky MCQ)
Concept is not new: Pakistan and Tanzania already setup such banks in past.
MBN Rao Panel prepared blue print (he was chief of Canara bank)
Sept. 2013: licence given
November 2013: bank launched on Indira Gandhis bday.
HQ= Delhi but since assembly election was going on, hence to follow the model code of
conduct, they launched the bank from Mumbai
How is it a Mahila Bank?
Boss Usha Anantha-Subramanian =woman
Board of Directors=all women.
but staff = male + female
mid-level staff from BoB, PNB on deputation= male + female.
Customers (Depositors) = male + female. (no distinction among them, both get same interest
rate on their savings account / FD etc.)
BUT Loan giving => predominantly to women.
Women entrepreneurs can get loans up to Rs 1 crore without collateral (meaning they dont
have to mortgage their house/factory/jewellary)
kitchen loans, education loans, small home-based catering businesses
Projects for Skill development, financial literacy among women.
hence the name Mahila Bank- because itll predominantly cater the credit needs of women
entrepreneurs and Self help groups.
Business plan of Mahila Bank?

By March 2014: 25 branches in capitals/major cities of India

25% branches in unbanked rural areas.
By 2020: 700+ branches; 60k cr business
Software
as such most desi banks use finacle core-banking software designed by Infosys
But this Mahila bank got Core Banking Software by FIS (American Co.)
(^ya this type of GK essential for IT-graduates for the bank interview stage.)
Why Mahila Bank is mere publicity stunt?
(Interview Q.) Bharatiya Mahila Bank is a mere symbolic exercise for feel good publicity.
Do you agree? Yes/No and Why?
I already mentioned the Positive points 1 cr. loan without collateral, skill development for
women etc.
But in Group discussion/ interview, you need to be aware of the negative points as well, in case
the other party decides to play Devils advocate.
Mahila Bank is mere tokenism, without substance because:
SBI, PNB, BoB better suited, they have pan-India presence including in rural areas. Govt.
already majority shareholder. Could have launched the 1 crore without collateral scheme
without Mahila Bank.
25% rural branching: duplication of effort.
In the first phase focus on state capitals and UT = real need of women financial inclusion is
in rural areas and not those big cities.
Mid-level executives all imported from BoB, PNB etc. such deputed staff usually dont
have or motivation to put their blood and sweat in making this new bank successful.
Their loyalty remains with their own parent bank only.

Theyre offering 4.5%/5% interest rate on savings account but pan India presence necessary,
otherwise customers wont feel attracted. Besides private banks like Kotak already
offering 6%
Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.
Tags: Banking
[Current] April-Week1-P1: Economy-Monetary Policy update,GI Tagging for Kanauj
Attar,Predatory Pricing by Spicejet, BIS new labelling guidlines for electronics
Current Affairs Weekly7 months Ago25 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
[Act 1] Economy
E1: RBI: Monetary Policy April 2014
E2: GI Tagging & EC model code
#1: Dharmavaram Pattu Silk Sarees: Andhra
#2: Kannauj Attar, UP
#3: Muradabad Metal craft UP
#4: Saharanpur woodcraft, UP
#5: Firozabad Glassware, UP
E3: Predatory pricing by Aviation Companies
E4: BIS New labelling guidelines for Electronics
[Act 1] Economy
Current Affairs for April week 1 (1st to 7th April). Total three parts
Part 1/3: Economy= Youre here. (bank license topic discussed separately)
Part 2/3: Environment, Biodiversity, Polity and Culture click me

Part 3/3: Diplomacy-international relations (click me)

E1: RBI: Monetary Policy April 2014
Make sure you know the theory of repo, reverse repo, LAF, MSF, CRR, SLR, if not then
click me
28th Jan 2014: Monetary policy (and Rajan said hed update it after two months = Feb,
March)
1st April 2014: monetary policy update
Key rates unchanged:

Bank Rate
9%
Marginal standing facility (MSF) 9%
Repo rate (policy rate)
8%
LAF
Reverse Repo rate
7%
Reserve ratios Cash Reserve ratio (CRR)
4%

Statutory liquidity ratio (SLR)

23%

These rates are one and same like previous update (Feb 2014).
Rajan did not change the policy rate (repo rate) for the following reasons

Yes, inflation has declined but not sufficient enough where repo rate should be reduced.
Rajan fears that even in 2015, (CPI) inflation will not go below 8%, because
Geo-political developments (like Ukrain) and their (negative) impact on crude oil, gold &
other international commodity prices.
El Nino effect = less monsoon = less food production
fuel, fertilizer and electricity subsidies = more money supply (from governments side)

MSP (Minimum support prices) on foodgrains. = more money supply (from governments
side)
Other measures
Accepted some recommendations of Urjit Patel Committee, like targeting CPI (combined)
inflation. Detailed coverage of Urjit Patel, pros/cons discussed already in earlier article
click me.
KYC norms are being simplified for Foreign Portfolio Investors. (FIIs)
To reduce volatility of FII investment in Government securities (G-Sec), Rajan made new
rule- those FIIs can only invest in G-sec only with maturity of one year or above.
will allow more companies /entities to get Banking correspondence (BC) license.
Rajans other projections:

2013-14 2014-15
GDP growth rate% 5
5-6
CAD as % of GDP 2%

Minimum Balance
Rajan asked banks not to levy penal charges on customer, if he doesnt maintain minimum
balance. (but bank may suspend his facilities on until he puts money)
Counter argument:= since banks have to incur expenses for record maintenance, staff salary
even on such non-minimum balance dormant accounts. So banks will raise the charges on
ATM, Debit card etc. on all customers, to cover those losses and keep profit margin
same.
Table: Penalty rates at the moment:
Bank
Min. Balance necessary (monthly) penalty (Urban) Penalty (rural)
1000
204
102
SBI
ICICI
10000 (Urban)
250-350
250-350
HDFC
5000 (rural)
KOTAK MAHINDRA
1.5 lakh
350
HSBC
2 lakh
500
Citibank
E2: GI Tagging & EC model code

What is Geographical indicator tag, what benefit does it offer? = already covered in my old
article Click ME
Geographical indications (GI) registry is one type of quasi-judicial body.
But as per Election commissions model code of conduct, even they had to pause giving new
GI-registration.
Following is the list of product awaiting GI registration:

Dharmavaram handloom silk sari Andhra

Firozabad glass
UP
Kannauj perfume
UP
Moradabad metal craft
UP
Saharanpur woodcraft
UP
These places/items become important at two places
MCQ : theory / static content
GS Mains Paper 1: (Geography) location factor of various industries.
#1: Dharmavaram Pattu Silk Sarees: Andhra
Location factors:
Climate: semi-arid tropical = less rainfall = good because silk yarn breaks easily in rainy
weather.
Water quality-soft = best suited for degumming and dying the silk.
Raw silk as such as harsh and unsuitable for dye treatment.
Hence it is subjected to degumming treatment= soak in boiling water with soap and soda ash.
But if water is hard, then soap/soda wont dissolve easily. Thats why soft water essential.
>1000 ft. above sea level = temperature ~25-40 degree = good atmosphere for labor. Because
Dharmavaram silk is essentially handloom woven and not power loom.
This town is ~50 kms away from Anantapur in the Rayalaseema region of Andhra Pradesh=
good transportation facilities
Raw material:
100% pure mulberry silk only. (no mixing with cotton etc.)
Zari brought from Surat. (lightweight, non-perisable) hence silk industry doesnt need to be
setup near Surats zari. PS: Surat Zari also enjoys GI status.
Designs:

Lepakshi temple murals (near Anatapur)

various flora, fauna and epic scenes.
Acid Dye (theory)
Acid dyes can easily color protein fibres like silk and wool. (Hence acid dyes used in silk
industry and not alkaline dyes).
Acid dye colors highly durable and can last upto 50 years.
Applied generally in the presence of an organic or inorganic acid and hence are called acid
dyes.
After dyeing phase is over, workers mix Sodium Hydroxide to remaining dye => acid
neutralized=> effluent discarded in the drainage. Hence the process eco-friendly. No
chemical diseases reported in the region.
Product:
Silk Pattu Sarees And Paavadas for grand occasions
also for Bharath Natyam and Kuchipudi dancers.
#2: Kannauj Attar, UP
History:
(ya this type of stupid MCQs are asked whether abc ancient text mention xyz thing or not?.dig
last CDS and CSAT- Kalhans Rajtarangini and Huen Tstang respectively.)
Perfume dates back to over 5,000 years to the Indus valley civilization. Excavation of
perfume distillation sites.
Perfumes even mentioned in ancient Pali and Islamic texts.
1St AD: Greek text Periplus mentions sandalwood imported from India.
~600AD: Emperor Harshvardhan made Kannauj his capital and encouraged the perfume
industry. Some perfumer makers were so influential, they were allowed to mint their own
coins!

~1550AD: In Aain-e-Akbari, Abul Fazal mentions Emperor Akbar was fond of perfumes.
His court chamber was continuously scented.
~1600AD: Tojak-e-Jahangiri, claims that queen Noorjahan invented a perfume called
rooah-e-gulab.
Science/Botany
Perfumes are essential oils from flowers, mixed with a base material.
Essential oils are volatile, liquid aroma compounds, usually sourced from plants. Essential
oils are not oils in a strict sense, but have oil like properties e.g. poor solubility in water.
Essential oils often have an pleasant odour, hence used in food flavouring and perfumery.
Raw material: base
Base is the liquid in which flowers are sunk to extract the essential oil.
Sandalwood oil is the best base for attar making. (source: Karnataka and Kerala)
but scarcity of sandalwood= sky high prices, hence traditional perfumer makers nowdays use
artificial chemical base such as liquid paraffin and Di-Octyl Phthalate (DOP)- for making
cheaper attars.
Attars are made using the centuries old copper vessels called Deg (Kettle) or Still and
Bhapka (Receiver).
The Deg & Bhapka system is based on hydro-distillation technique.
Raw material: flowers:
Local crops of Kannauj= Jasmine, Kadamb, Merigold, Henna etc. remaining flowers brought
from other states.
Rose
Khus
Chameli
Raat Rani
Kewra
Saffron

Hathras and Aligarh in Uttar Pradesh and Palanpur in Himachal Pradesh

Bharatpur (Rajasthan)
Chandoli in Jaunpur district,
Viaywara district (Andhra Pradesh),
Burahanpur, Ganjam in Orissa
Jammu & Kashmir.

Spices and herbs North-East States of India and Himalaya

Products: Fragrances (attars), incense sticks, dhoop/hawan material, gulkand (made of rose
petals and sugar), Rose water and scent sprays.
#3: Muradabad Metal craft UP
History:
Mughals brought Kansa (an alloy of copper, zinc and tin) from Iran, Turkey, Egypt. Some
migrants also settled here and started crafting kitchen utensils.
Designs influenced from Iranian style. Usually, king travelling on elephant, Mughal
monuments etc.
Present city established during Akbars time.
boost in demand due to Kanuaj Attar business (perfume bottles).
today >2000 cr export, >25000 cr artisans employed.
Science
Brass= 60% copper + 40% Zinc but proportion can be varied according to product.
Bass has low melting point (~900C) = easy to melt and moult.
Electroplating technique used for changing surface properties
#4: Saharanpur woodcraft, UP
Raw material
wood/timber of mango, rosewood and shesham
Timber should be less than 15% moisture content = become seasoned.
Seasoning process- drying of timber to remove the moisture contained in walls of the wood
cells.
Design:

Srinagar Woodcraft geometrical designs

Mysore woodcraft
human and animal motifs
Saharanpur woodcraft Monuments of Sultanate & Mughal age, grapevines, floral patterns.
Wax polish used to increase brightness.
Earlier woodcrafting done manually with handtools, nowadays use of machinery.
Products: Coat Hangers, Cupboards, Dressing Tables, Embroidery Frames, Table Tops, Tea
Carts.
#5: Firozabad Glassware, UP
Raw material:
Soda ash and Silica
Techniques:
Glass ware manufactured using mouth blown technique
The artisans use to roll glass layer on wooden rods, which were cut into the shape of bangles
nowhere else done in the world
Hence Firozabad = World Glass Bangles Capital.
Products: glass bangles, chandeliers, glass status of gods and goddess
E3: Predatory pricing by Aviation Companies

Interview questions:
What is predatory pricing: how is it good/bad for business/ economy?
Why is Spicejet accused of predatory pricing?
What has DGCA done in this regard?
What is Predatory Pricing?
Means deliberately selling product below the cost price, to eliminate competition.
Usually predatory pricing is done by firms with deep pockets (like Walmart), because they
can afford to make such temporary losses.

in short, it may appear good to customers- because products available @cheap rate
But in long term, the firm establishes monopoly and starts exploiting the same customers.
Sometimes the strategy misfires, company makes heavy losses (e.g. AirDeccan and
Kingfisher).
Why Spicejet accused of Predatory pricing?
Theyve launched a scheme Rajiv Gandhi One Rupee Air ticket
Sounds good? but there are hidden terms and conditions
Offer valid only if you book tickets during April 1 to 3.
Only one or two seats offered in each flight under One rupee scheme.
So this is both predatory pricing + misguiding customers.
Spicejet already making losses, and now theyve launched this scheme=> other aviation
companies will also be forced to launch similar schemes to stay on competition =>
everyone starts bleeding and making losses=> ultimately some get on verge of collapse
like Kingfisher= staff salary not paid, loss EMIs not paid, Bank NPA increases and so
on.
What has DGCA done?
Directorate General of Civil Aviation (DGCA) is empowered to take action against such
predatory pricing (under Aircraft rule #135)
He has ordered Spicejet to immediately stop this scheme.
E4: BIS New labelling guidelines for Electronics
Q. (GS2-Regulatory bodies) What is BIS? Why is the electronics industry opposed its new
labelling guidelines? (200 marks)
Bureau of Indian standards is a statutory body under Consumer affairs ministry, to set the
quality standardization criteria for consumer goods.
It has recently updated the labelling guidelines for IT & electronics industry- for products
such as printers, scanners, wireless keyboards, set-top boxes and microwave ovens.

Earlier companies had to merely put stickers on the products.

But as per new guidelines, BIS requires them to screen print, emboss or engrave the labels
onto the product and its packaging material.
Manufacturers also need increase their font size such that product description is clearly
visible.
IT & electronics Industry is opposed to this guideline because:
Increase in the production cost. In certain cases almost by 100%.
BIS ordered the companies to implement this from April 2014, a deadline almost impossible
to achieve.
Difficult to engrave certificates on some delicate gadgets such camera, tablets and mobiles.
No apparent benefit to customers.
No such labelling rules followed anywhere else in the world.
~170 words.
Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far.
Tags: Rajtanil
[Current] April-Week1-P2: Environment, Polity, Culture: IPCC Latest Report,Cess on
Diesel Cars,Sahara Dust Storm
Current Affairs Weekly7 months Ago60 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
[Act 2] Environment and biodiversity (EnB)
B1: Robber crab-Habitat destruction
B2: Long billed Vultures

B3: Olive Ridley Mass Hatching lights OFF!

B4: Moving Gir Lions to Madhya Pradesh: pros and cons
B5: Cess on Diesel Cars to fight pollution?
B6: Sahara Dust Storm in London
B7: IPCC latest report
B8: is it the time to close Digboi refinery?
[Act 3] Polity related Current Affairs
P2: Relevance of NIA? (federalism/internal security)
Prologue
Current Affairs for April week 1 (1st to 7th April). Total three parts
Part 1/3: Economy= coming soon
Part 2/3: Environment, Biodiversity, Polity and Culture= Youre here.
Part 3/3: Diplomacy-international relations (click me)
Before reading further, think about these interview questions:
From zoology/environment point of view, is this viable to move lions away from their natural
habitat in Gir?
We should impose Cess on Diesel Cars, and use that money to fight pollution. Do you agree?
Given its low output and low profitability, dont you think Digboi refinery should be closed
down, And instead put focus on hydro-electrical potential of North East?
What do you know about section 376/E in the IPC? Do you agree with the demands by
certain (jholachhap) activists that it is retributive in nature and therefore should be
repealed?
Recently Delhi HC rapped both NIA and Delhi police for giving conflicting versions on IM
blast case. Do you think the whole setting NIA is flawed? If not, then what corrective
measures are necessary?

[Act 2] Environment and biodiversity (EnB)

B1: Robber crab-Habitat destruction

IUCN status: DATA DEFICIENT.
Where? only in the forest of Andaman and Nicobar
it is the largest land crab [adult can be as long as 1 meter and weigh 4.5 kilos]
Also called coconut crabs, because they climb trees, cut coconuts and descend to eat it.
Threats
habitat destruction post Tsunami
Nicobar folks dont eat them due to

Protection status
IUCN- its under list of DATA DEFICIENT.
Wildlife protection Act= under Schedule I.

social taboo but the youth of

Andaman eats them.

Meaning it is illegal to hunt them. But juntaa of

Andaman Nicobar unaware.

B2: Long billed Vultures

IUCN status: Critically Endangered
Where? only in Nilgiri hills [North-Eastern slops]
other vulture species in Nilgiris=White-backed vulture, King vulture and Egyptian vulture
Threat: anti-inflammatory drug (Diclofenac) used in cattle. When vultures eat such dead
cattle, it causes renal (kidney) failure in the vulture => death.
Solution? = educate farmers to use another drug called Meloxicam
B3: Olive Ridley Mass Hatching lights OFF!
IUCN status: endangered
Found in warm waters of Indian, Pacific and Atlantic ocean.
Odisha coast= largest mass hatching site.
Gahirmatha Marine Sanctuary along the coastline of Kendrapara district.
Arribada = mass nesting of female olive ridley turtles
Breeding season: November to May. After ~50 days, the eggs hatch and baby turtles move
towards the beach.
But only 1/1000 survive and reach adulthood.
Yes, but why in news? Because
Officials have ordered the people to turn off their lights during hatching. Why?
Once Baby turtles (Hatchlings) come out of the sand nest, they move towards sea.
BUT if they see bright light (coming from those houses), they move towards houses instead
of diving into the sea.
Thats why civilians ordered to turn off the lights during night.

Additionally, officials have also installed nets surrounding these nests to prevent the babies
from moving towards land.
B4: Moving Gir Lions to Madhya Pradesh: pros and cons
IUCN Status: Endangered.
Why in news?
Last year, the Uttar Pradesh government received the approval of the Central Zoo Authority
to set up a lion safari in 50 acres of forestland, just 5 km from Etawah town.
Follow-up to that event, recently Modi vs Akhilesh verbal spat about lions vs hyenas during
election campaign.
(Interview Q) From zoology/environment point of view, is it viable to move lions away from
their natural habitat?
yes because

no because
Gir has been traditional habitat of
Gujarats lions come from a very narrow genetic
lions since centuries.
base of about 25 animals.
smaller area= more chances of in-breeding = genetic
disorders=species becomes extinct.
With rise of lion population in Gir, man-animal
conflict are increasing, there is need to shift
some of the population elsewhere.

If all of them concentrated in one place, risk of

extinction increases, in the case of natural
disaster or epidemic in Gir.

Rampant poaching and gun culture

of MP. More than 450 tigers
killed in last decade.
MPs main agenda is tourism
promotion rather than wildlife
conservation.
In MP- Tiger and Lion co-existence
risky.
National Wildlife board had formed
a panel to decide about
translocation of lions.
But their panel members were
mostly Tiger experts, not lion.
No study about how lions react to
trans-location.

Sequence of events:
National Board of Wild Life took decision to translocate Gir lions.
War of words between Gujarat and MP.
Supreme Court PIL, court says yes shift Gir lions to MP. (2013) this is one example of
wildlife judicial activism.
The action plan of Lion translocation:
From Gir Sanctuary Gujarat to Kuno Sanctuary Madhya Pradesh.
25-year-long translocation programme.
In next two years, 5-10 lions will be sent to MP. (60-70% of them will be females)
Then every 3-5 years, a few more males would be sent.
Sophisticated radio collars for all lions, constant surveillance by forest officials.
B5: Cess on Diesel Cars to fight pollution?
First whats the difference between Cess and Surcharge?
surcharge
tax on tax

cess
same
taken on tax liability + surcharge. and for a
calculated only on tax liability
specific purpose e.g highway renovation,
higher education or xyz.
suppose youve to pay Rs.1 lakh as income tax Suppose education cess is 3%. Cess is
and government demands 10% surcharge then calculated on tax + surcharge.= 3% of Rs.1.10
total tax to paid = 1.10 lakh
lakhs.=3300 rupees.
meaning finally youll have to pay
income tax + surcharge (on IT) + Cess (on IT+Surcharge)
=113300
Anyways, coming to the main topic, why in news?

Famous advocate Harish Salve assists Forest bench of Supreme court as Amicus curiae. He
presents a report- that
Every year 3000 kids die in Delhi alone because of air pollution.
Diesel is main culprit- produces 10x times more carcinogenic particles than petrol.
diesel consumption is high because its cheaper than petrol (due to subsidies).
Therefore, 30% cess should be levied on private diesel vehicles.
and this money should be used for three things:
producing clean diesel [that has only 10ppm sulphur]
Introduce Euro V and Euro VI norms.
strengthen public transport system (buses and metros)
Supreme Court panel forwards this recommendation to Finance ministry. But Chindu says
no,we cannot levy any environmental cess on diesel cars. because..
Barely 13% of total automobiles in India are private diesel vehicleS = hardly any cess
money will come.
We already have started reducing diesel subsidies in phased manners.
Soon there wont be a big difference between the prices of diesel vs petrol.
Desi automobile sector already facing slowdown and negative growth. if we impose 30%
cess, itd hurt the sales of diesel cars and SUVs.
Side note: What is Euro V and Euro VI norms?
These norms define the maximum limit of pollutant that a vehicle can emit. (CO2, nitrogen
oxide, sulfer and suspended particulate matter)
If vehicle emits more than this limit, it cannot be sold in Europe.
In Euro norms, as we move higher, the limits become stricter. Observe
Euro norm limit of respirable suspended particulate matter (RSPM)

Euro I
Euro II
Euro III
Euro IV
Euro V
Euro IV

0.14
0.08
0.05
0.025
0.005
0.0025

What about India?

We follow Euro norms under the lable Bharat stage norms.
13 major cities of India Bharat stage 4 norms
rest of India
Bharat Stage 3 norms.
B6: Sahara Dust Storm in London

Sahara Desert dust brings smog to UK

During summer, the Sahara desert undergoes low pressure depression => dust lifted upwards
and flies towards Europe and America

locally this is called Simoom or poison wind, because it causes heat strokes.
In April 2014: a large mass of this dust storm fell over London, hence in news.
good

bad
Continuous and large scale dust storm decreases
total soil fertility=forcing villagers to migrate to
Provides phosphate nutrients to Amazon soil.
cities. This happened in USA during 40s, more
than 2.5 million people migrated to California.
Provides
nutrients
to
plankton
in
Poor visibility, smog like situation.
Mediterranean sea.
reduces the surface temperature sea and
Dirt accumulation on vehicles, windows,
lowers the possibilities of hurricane
houses =millions cost every year.
Harmattan wind carries this dust in NigerAllergic reaction in people suffering from
brining soil nutrients K, Mg and Ca.
asthama= loss of productive man-hours
dust particles directly reflect sunlight
Carries pathogens that destroy coral reefs.
backinto space, thus reducing amount of heat
coming to Earths surface- this has both
Brings iron minerals into sea water = causes
positive and negative impacts on long term
algal blooms.
climate.
B7: IPCC latest report
Assessment Report (AR) Year
1st
1990
2nd
1995
3rd
2001
4th
2007
5th
Yet To Publish Entirely. (Only 2/3 Parts Published)
IPCC 5th Assessment Report (AR5)
Three groups working to prepare this report
group
No.
1
2

working on

Published?

On physical science and climate change

September, 2013
Adaption measures [Impact, Adaption and March 2014 (hence in news during
vulnerability]
April 2014)

Mitigation measures

yet to be published

So now we come to the report that is making news=> Report on Adaptation measures under
5th assessment report. Since this is only a small part of the big report yet to come => so, dont
waste time doing lot of Ph.D majoori (labour) in this report.
Overall it says following:
Soil moisture will decline globally => dry regions will become even more drier => global
drought =>food shortage.
Temperature has risen 0.2 cel since Industrial revolution.
Climate change is inevitable challenge, but if we understand the challenge correctly then we
can better tackle it.
But, Science can help in adaptation and risk reduction. for example:
Problem
SCIENTIFIC SOLUTION
Sea
Level
Build coastal barriers and plant mangroves
Rise
Agriculture climate resilient seeds and agri-technology
Water
Water-conservation, desalination.
Natural
Invest in technology for early detection of cyclones, flood and droughts=>
Disaster
training of personnel, take precautionary measures.
Impact on India?
The poor and developing countries of tropical regions are the most vulnerable of the climate
change.
Small island countries of Indian Ocean, like, Maldives, Mauritius and Shri Lanka, will
migrate to India as climate refugee. (India has made such agreements with these
countries)
Indian coastal cities will face danger of submergence.
Erratic Rainfall, melting of Himalayan glaciers, frequent flooding, draughts, storms and
cyclones.
Food insecurity for large population.

New diseases and weather patterns.

B8: is it the time to close Digboi refinery?
Digboi refinery is in news because of election- the politicians make claims and counter-claim on
how UPA/Assam government has slowly destroyed the profitability of this refinery.
First the theory
Petroleum reserves form in sedimentary basins.
The flora and fauna decompose under heavy pressure and temperature => crude oil + natural
gas.
Digboi oil field = Sedimentary rocks of Brahmputra valley in Assam.
Digboi refinery = First oil well of India. oldest and (perhaps) lowest output in world.
Refinery hasnt been upgraded, on a verge of financial-collapse due to shortage of man and
raw material (crude oil)
if refinery closes=> unemployment to the surrounding area (those rickshaw-walla, teavendors and so on)
(Interview Q.) Given its low output and low profitability, dont you think Digboi refinery
should be closed down, And instead put focus on hydro-electrical potential of North East?
Points to consider:
First, make a fresh assessment- whether it is feasible to continue running this refinery.
If the technological upgrades can solve the man-power crunch and increase the production
levels, then no need to close down the refinery.
It is true that North-East region has high potential for development of Hydro-electric power
station,
But we need to be cautious while exploiting this potential.
We shouldnt forget that Hydro-electricity has long gestation period and damaging effect on
surrounding environment and leads to forcible migration/rehabilitation of hundreds of
families.

Hydro-electric plants interfere with the natural flow of the river drainage
Haphazard development of the dams on the upper course of river had catalysed the
Uttrakhand flood disaster.
Besides, North Eastern region is home of many pristine forest tracts, national parks and rare
flora and fauna. The forests have spiritual value for indigenous tribal people.
[Act 3] Polity related Current Affairs
Ive skipped two topics related Supreme Court judgements: mercy petition and Jat reservation.
Both quite lengthy, require standalone articles later.
P2: Relevance of NIA? (federalism/internal security)
(Interview Q) Recently Delhi HC rapped both NIA and Delhi police for giving conflicting
versions on IM blast case. Do you think the whole setting NIA is flawed? If not, then what
corrective measures are necessary?
Background:
2008: 26/11 Mumbai terror attack
Government enacted National Investigation act 2008
2009: NIA came into existence. (on the lines of FBI)
NIA is a federal agency, can supersede state police in the investigation and trial. (only for the
offenses given in its act- e.g. hijacking, bomb blasts, attacks on nuclear site etc.
Problem? Law and order is a state subject. Unlike USA, our Constitution doesnt have the
concept of federal crimes.
Relevance of NIA?
Positive:
cracked the right wing extremism cases (Samjauta express, mecca masjid, and ajmer sharif
Swami Asimanand). Counter: CBI arrested swami
>150 terrorists arrested in last three years by NIA. Counter: NIA itself has arrested hardly
~45 terrorists. remaining were arrested by state agencies / CBI then handed over.

2011: NIA successfully arrested master minds of Delhi High Court blasts.
Has probed the wider conspiracy behind the 26/11 attacks. Counter: but interestingly none of
the accused are in NIAs custody!
2014: Cracked the Bodh Gaya blast case.
Negative:
Even after its birth in 2009, Majority of terror cases attacks were solved by State agencies. For
example:
Israeli diplomat car blast
2010
Delhi Special cell
Shootout near Jama Masjid before commonwealth
2010
games
German Bakery, Pune
2010
Maharashtra Anti-Terrorism Squad
Mumbai serial blasts
2011
(ATS)
Pune blasts
2012
NIA has barely 450 men, hardly any trained investigators in forensic science, cyber security
and bomb blast analysis.
23 out of 48 cases not charge sheeted so far.
Solutions?
Increase staff.
Hire forensic, anti-bomb squad and cyber-security experts- even from outside.
Top officials and chief should be selected in open and transparent manner.
Should not be given more powers without amendment of the Constitution.
Alternatively, Central government can take the consensus of state governments and convert
NIA into a joint anti-terror agency made-up of best officers from Union agencies and
State agencies.
Tags: Rajtanil
[Middle-East] Palestine becomes UN Non-Member Observer, Hamas-Fatah Join hands in
Unity Deal

Diplomacy7 months Ago68 Comments

For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
D1: Palestine wants to join UN bodies
D2: Israel-Palestine: HAMAS-FATAH Unity Deal
D1: Palestine wants to join UN bodies
Background
for the full historic coverage of Israel-Palestine, read my earlier article click me
2012: Palestine given UN Non-Member observer status, and thus become eligible to sign 63
international treaties.
Now, Palestine wants Israel to release final group of Palestinian prisoners.
But Israel not complying, and USA also failed to convince Israel.
Therefore, to mount pressure on Israel, the Palestine President Abbas wants to join 15 UN
agencies and international treaties such as Vienna Convention on diplomatic relations,
child rights, anti-torture, anti-corruption convention and so on.
How will it help? Under Geneva conventions, Palestine can file complaints against Israel, for
its human rights violations and illegal settlements activities.

Interview Q1: What will the impact on India?

India has been historically backing rights of people of Palestine, PLO (Palestine Liberation
Organisation) is also member of NAM.
However, in the recent years, India is proactively engaged with Israel- for cooperation in
defence and agriculture. Theyre our 3th largest military supplier, including radars and
AEW&C (airborne early warning and control systems). Therefore, we have lower down
the voice against Israel.
But If Palestine will become member of UN agencies than it will be difficult for India to
walk on the tight rope and which side to lean towards.
Obviously, India should stand for human rights and just treatment for the Palestinians, but a
firm stand on any side should be according to need of the time.
Interview Q2: Whatll be impact on USA / Israel?

Not any immediate effect.

But If Palestine will be successful in filing case against Israel in ICC or ICJ under any of
those conventions, then itll be difficult for USA to protect Israel.
Therefore, US Secretary of State John Kerry has asked Palestinian President Mohd. Abbas to
withdraw his applications to join those treaty conventions. (Also Abbas rejected Kerrys
request.)
As of now, other UNSC permanent members have not come forward for the support of either
Israel or Palestine
But if Russia or China would come forward to back Palestine than the situation might take a
turn for the worse, in the already tense gulf region.
And Russia will probably do so, just to distract world-attention from Ukraine, and put USA
on defensive about Israel.
In that situation, USA will have to flex its muscle to manoeuvre the international community
to not to act against Israel.
D2: Israel-Palestine: HAMAS-FATAH Unity Deal (Apr 14)

Interview Q. Why have Fatah and Hamas signed Unity deal? Whatll be its implication on
Israel-Palestine relations?
Hamas and Fatah =two rival factions of PLO (Palestine Liberation Organization).
2006: Hamas wins Palestine election but failed to form government
2007: rift between Hamas and Fatah => civil war.
Both factions tried to reconcile in 2011 and 12 but no help.
Hamas
not important

Fatah
Its leader Mahmood Abbas is the current
President of Palestine authority.

Dominates Gaza & Coastal areas. Mostly poor & Dominates West Bank area.
isolated regions.
populous and rich.
Refuses to recognize Israel as a sovereign country.
Moderate views than Hamas.
Uses violent methods to teach Israelis a lesson.
Undergoing crisis period due to lack of money and
political support.
Egyptian army supports them.
Egyptian army wiped out their supporters (Muslim
brotherhood) and supply tunnels to Gaza.
Even Qatar has stopped supporting Hamas.

Most

Fast forward to current issue

July 2013: Peace talks begin between Israel & Palestine, USA plays mediator.
These talks had deadline of nine months (=end in April 2014.)
But peace talks failed because:
PARTY

Action
Israel has not released our prisoners. Well now apply to join 15 UN agencies
and international treaties such as Vienna Convention on diplomatic
relations, child rights, anti-torture, anti-corruption convention and so on.

PALESTINE
Then well complain about Israel in those bodies.
Switzerland has even supported that Palestine can join Geneva Convention!
Palestine is trying to bully me under those stupid conventions
ISRAEL

USA

Now for tit for tat. Every month we collect taxes from Palestines junta and
pay $100 million to Palestine authority. But since youve applied to those
UN bodies & secretly negotiating with terror outfits like Hamas, now well
withhold that tax money
first time publically blamed Israel for failure of talks Because Israels decision to
build 700 more settlements in Palestinian territory

Anyways, just one day before the talk deadline in April 2014, Hamas and Fatah propose to sign a
peace agreement, with following features:
We recognize Israel as a country (but of 1967 borders)

We Renounce violence
We Acceptance of previous Israel- Palestine agreement 2011 and Hamas-Fatah agreement
2012
Well hold election within 6 months.
Why USA-Israel unhappy with this Unity Deal between Hamas & Fatah?
USA and Israel have declared Hamas as a militant/ terrorist organization. Hence direct
negotiation with Hamas is against their official policy.
USA declared that the pact is unhelpful and paused the talks.
Some expert believe this is a tactic by Palestine leader Mahmood Abbas. He has not formally
signed this treaty yet. This is a ploy to force Israel to release those $100 tax money.
Israels stand: if Abbas signs this Unity Pact with Hamas=> well hold him reasonable for
every rocket fired towards Israeli settlements.
EU Stand: Hamas is still a terror outfit under EU laws. Well recognize any deal between
Israel-Palestine ONLY if Palestine is ruled by a non-violent regime.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-India-N, Rajtanil
[Diplomacy] MFN Status for India in Pakistan: Meaning, implications; Reforms in MEA,
APF-HR conference
Diplomacy8 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
D1: If Pakistan gives MFN Status to India
D2: Reforms in Ministry of External Affairs
D3: APF-Human rights conference 2014

D1: If Pakistan gives MFN Status to India

Q. What is MFN? What benefits could Indian gain by MFN-status in Pakistan? Why
hasnt
the
deal
materialized
yet?
(200
words)
Meaning?
Most Favoured Nation status is the first step towards trade agreements between two
countries.
MFN means every time a country lowers a trade barrier for its most favoured nation, then it
has to do treat all its trading partners in the same manner whether rich or poor, weak
or strong, large or small.
Benefits?
In 1997, India granted MFN status to Pakistan, but they have not reciprocated back.
Pakistan still maintains a negative list of ~1000 thousand items that India cannot export,
including agricultural goods, textile and automobile parts.
If Pakistan gave MFN status to India, we could export these items in their domestic market.
Thus, MFN status can facilitate economic prosperity and betterment of relations. The
economic-interdependency may also thawing tension between India-Pak.
Why stalled?
As such, Pakistan was to grant the MFN status to India by December 2012. But the process
got delayed due to active lobbying by Pakistans agricultural groups, textile and
automobile industries. 40% of the Pakistani workforce is employed in Textile industry
alone. They fear the flood of Indian goods will render them jobless.
The unstable political situation and tension at the Indo-Pak border have further aggravated
the situation and delayed the consensus.
Although Pakistan high commissioner has assured MFN status will be given after the
formation of new government.
~216 words
D2: Reforms in MEA/IFS?

(Interview Q) What reforms are necessary in the Indian Foreign Service to help them
effectively handle the diplomatic issues of contemporary times?
Restructure Ministry of External Affairs via following:
Empower Foreign Secretary to handle economic and trade related matters.
Create new political-military affairs division within the MEA.
Allow officers from all India and Central services, intelligence and the armed forces in it.
(and not just IFS officers.)
Assign a dedicated trade expert with every Indian mission / embassy.
At present, main focus of IFS training is protocol, discipline, hierarchy, out of tune with
contemporary realities.
Indias foreign policy should be inclusive, should not confine only within MEA. Get shared
opinion of various ministries and Departments
+ involve academia and think tanks.
Ref: Amitabh Mattos column in TheHindu A new foreign Policy agenda.
D3: APF: Human rights conference 2014
1991: UNs Paris principles- to establish norms for various human rights bodies across
world.
Later, an International coordination Committee of National Human Rights Institutions setup.
This Committee has 4 regional networks, one of them is Asia Pacific forum (APF) with 21
member-nations.
2014, Sep: Indias national human rights commission headed the conference of this body, at
New Delhi.
Outcomes of this Human rights conference
Until now NHRCs have focused on human rights violations by state actors

But, economic scenario has changed, weve to focus on human rights violations by
companies- pollution, tribal-displacement, sweatshops, labour exploitation and negativeexternalities created by MNCs.
For Prevention of Torture , well create a working group including the NGOs.
Members agreed to use a five-pronged strategy to protect human rights from 2015 to 2020:
Gender equality, peace , security, Business, Vulnerable groups-children, women, the
disabled, the elderly and displaced persons.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-b4Modi, Rajtanil
[Elections] Twin Nominations, Primaries Method of selecting candidates-why Rahul failed?
polity8 months Ago86 Comments
For Indian Polity, I recommend
M.Laxmikanth: Indian Polity :
P1: Twin Nominations in Election
P2: Primaries Method of nominating candidates
P1: Twin Nominations in Election
[GS2] Q. List the provisions related to Twin nomination in the RPA Act and examine the
need
for
reforms
in
it.
(100
words)
Provisions in RPA:
Section 33: Candidate can contest from two Constituencies.
Section 70: He has to give up one seat, if he wins both.
Misuse of Sec.33 & 70:
To increase the odds of winning, some candidates contest from two seats.
But if and when he wins, he has to vacate one.

This results in a by-election for vacated seat, wastage of manpower & public-money, and
erosion of voters faith & interest in electoral process.
Therefore, Twin nomination is against the fundamental principles of representative
democracy.
Suggested reforms:
Repeal the provision of twin nomination from RPA Act OR
Make the candidate bear entire cost of by-election.
~110 words.
P2: Primaries Method for nominating candidates
(GS2) Comparing Constitution: Examine the merits & demerits of replacing first past
to post method with primaries method in Indian elections.
(Interview question) What do you understand by Rahul Gandhis Primaries method
for giving tickets? Why does it work well in USA but fails in India?
Primaries method = a way to shortlisting the contestants. There are 4 types of primary election
methods in USA, with difference in each state. But, I am taking the two most common:
Closed primary election
Only Karyakarta (Party-workers) can vote for candidates among their own party.
The highest voted candidate then contest for run-off election (against other party)..
Suppose, Manish Tewari, Kapil Sibbal and Sheila Dixit want to contest from Chandani
Chowk. Then Congi workers (from this area), will do internal-voting.
if Sibbal gets max votes of local Congi workers, then he will get ticket from this Chandni
Chowk. (And fight against BJP, AAP candidates= at that time, entire junta will come to
vote).
Benefit: increases internal democracy in a party.
Open primary election

Everyone in the area, can vote for all candidates in that area. (This is only for shortlisting the
BEST candidate from each party.)
The highest voted candidates from each party then proceed to run-off election. e.g. Sibbal
among congies, Harshwardhan among BJP and Kerjiwal among AAP.
Benefit: reduces the chances of reduce the chances of hung parliament or coalition
government. because non-serious candidates are eliminated.
Rahulbabas #EPICFAIL
Congress party Vice President Rahul Gandhi had decided to give tickets to Congi aspirants
via (Closed) primary method. But first he wanted to test this method at few
Constituencies, including Vadodara in Gujarat.
One Mr. Narendra Ravat won primaries election in Vadodara. So he should be given Congi
ticket for this seat.
But then Modi himself decided to Twin contest from here=> Ravat replced by
Madhusudan Mistry.
Anyways names not important- just taking them for explanation. Million dollar question is,
WHY primary method works in USA but failed in India (despite Rahulbabas best intention for
internal democracy within Congress)?
should India adopt this method?
Works in USA because

USA has two party-polity system.

So, easier to choose candidate from 2
parties. (whether you adopt open or
closed system)

USA is wealthy and not as populous as

India. They can afford this game.

EPICFAIL in India because

India has multi-party system.
CLOSED PRIMARY: will be hard/
gimmickry, because sometimes there is no
internal competition within party. (BSP,
RJD etc.)
OPEN PRIMARY: will be hard for small
parties and minorities to win primary if big
parties puts large no of candidates in a
ballot.
IF we amend Constitution to run open
primaries method, then weve to run two
stage election -first to shortlist candidates

from each party, then second stage election

to select final winner.
But this will be way too expensive given the
sheer number of polling booths and voters.
India follows political ideology based politics.
Party and its policies matter.

USA follows personality based politics.

Face/character/persona/policies of an
individual Candidate matters.

At max, what matters is CASTE/RELIGION

of the candidate, before giving him ticket
MP/ MLAs are merely stamping yes/no/abstain
from any motion in legislature depending
on party whips.
Therefore, it doesnt matter that much who is
local candidate- as long as junta has faith
in the party. .

Visit Mrunal.org/Polity for entire Archive of Polity articles published so far.

Tags: Elections, Rajtanil

[Diplomacy] UNHRC resolution against Sri Lanka: Why India abstained?

Diplomacy8 months Ago27 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Timeline of Events
Resolution game: sometimes yes, sometimes No
Why India abstained from Voting?
#1: same thing can happen to us
#2: Pakistan-China

#3: Abstain = line open both sides

#4: US/EU can go the hell
#5: Congress wont win Tamilnadu anyways
#6: Desi Tamils & Lankan Tamils are not BEST friends
Sri Lanka vs LTTE: Timeline of Events
Prabhakaran killed. LTTE-Sri Lankan Civil war ends. Total >1 lakh died in a civil war that
lasted more than 25 years.
India gives 8000 cr. for rehabilitation of Tamils in Northern Sri Lanka. Projects for
2010
housing, powerplant and HRD.
Lessons Learnt and Reconciliation Commission report (LLRC):
2009

Sri Lankan government had appointed this commission.

This sarkaari commission says- hardly any human rights violation by Sri Lankan
army. Just few crimes by individuals soldiers.
2011

Gave recommendation for Tamil rehab.

But we all know the sacred rule of forming committees= their report MUST NOT be
implemented.
USA, UNHRC consider this junk report and want fresh international inquiry. (2014)
But India believes lets just implement this report and move on.
UN report says thousands of civilians killed because of government shelling/bombing.

2011
Lankan army defends saying LTTE were using civilians are human shields.
Resolution game: Sometimes yes, Sometimes no
Year UNHRC resolution said

2009

We commend (applaud) Sri Lankan government for their reliefrehab work.

(although) focused only on the abuses done by LTTE (and not by

Indias
vote

USA

FAVOR

??

government)
Didnt mention international inquiry (=in other words, no need for
international inquiry).
India favoured, thinking that Lankan government will honestly
rehabilitate the Tamils.
We Censure (condemn) Sri Lankan government for their human
rights violations.
2012

Sri Lankan government has setup internal inquiry to probe human FAVOR
rights violation BUT were dissatisfied with their work.

FAVOR

We want an international inquiry in this matter

Human rights violation in Sri Lanka were not State sponsored.
(In other words, government didnt do anything wrong)
2013

2014

Government should implement the recommendations of the

FAVOR
reconciliation commission.

FAVOR

No need for separate investigation of human rights abuse (Atleast

for now)
SETUP an (independent) international inquiry for human rights
ABSTAINS FAVOR
abuse during LTTE-War.

This 2014 resolution wants

Investigation into war crimes / human rights violation during 2002-09 period (when LTTEGovernment war was on peak.)
Office of the High commissioner of Human rights (OHCHR) will conduct this investigation.
Although that Sarkari-LLRC (Lessons Learnt and Reconciliation Commission) investigated
this period (2002-09) but still fresh investigation will be made.
Why India abstained from Voting?
in last two resolutions, India voted in favour of USA backed resolutions against Sri Lanka.
(Mind the wording: IF youre voting in favour of resolution= you are voting AGAINST Sri
Lanka).
#1: same thing can happen to us

India opposed to this resolution because it would undermine sovereignty of Shri Lanka. (In
the long run, some other country may want to invoke similar resolution on India, saying
your army violating human rights in JK / NE; or CRPF violating human rights while
fighting Maoists, so we want to setup an International inquiry).
None of our neighbours have voted in favour of this resolution.
None of Asian countries have voted in favour of this resolution. [Except South Korea].
Because ^everyone has similar Domestic problems- no one wants international inquiry
on human rights.
So there was no need for India become human rights champion by voting in favour of this
resolution.
Besides, India has never voted in favour such international-inquiries. We respect the
sovereignty of every nation.
Even, in past when we voted in favour of resolutions that were against Sri Lanka, we had
tried to persuade UNHRC to water down the criticism/censures against Sri Lanka.
So by abstaining this time, we havent dramatically made U-turn in our stand on issue. All
we want is Sri Lanka to rehabilitate Tamils.
#2: Paki-Chini
Neither Pakistan NOR China voted in favour of this resolution. (= they also dont want
international inquiry).
So, IF we vote in favour= unhappy Sri Lanka would grow closer ties with Pak and China.
#3: Abstain = line open both sides
USA, its allies in Latin America and Africa, voted in favour (of setting international
inquiry for Sri Lanka).
Voting in Favor / Against = lines are drawn, you know who is the enemy, who is the friend.
But Abstained = space available for future manoeuvring (India can get close to Sri Lanka or
Close to USA- depending on how Chinese wind blows in Arabian sea and whether Sri
Lanka dances on their tunes).

#4: US/EU can go the hell

Recall the Dushmani4Devyani angle under Fed Tapering article.
When American regulatory bodies (Aviation, Trade, Pharma) are hellbent on teaching
Indians a lesson, we dont need to keep USA in good humour by voting in favour of
America sponsored resolution against Sri Lanka.
Besides, US/EU needs India anyways, for economic reasons and as a counterweight against
China.
Therefore, Indias stand on this resolution = unlikely to create bitterness in our relationship
with US/EU.
#5: Congi wont win Tamilnadu anyways
In past, UPA government had political pressure from its allies in Tamilnadu. So, till last
minute, Government will not show its cards (Whether we want to vote in favour OR
against.)
But this time, Congress also knows their game is over, Tamils are not voting them back in
power anyways. Both Karunanidhi and Jailalitha have their own plans (either third front
OR Modi depending on how the wind blows.)
Given these reasons, government saw no reason to vote in FAVOUR of this resolution. (mind
the reasoning= voting in favour of resolution = we are voting against Sri Lankan
government)
At the same time, didnt vote AGAINST this resolution = to keep our diplomatic options
open for future.
+ the next reason:
#6: Desi Tamils & Lankan Tamils are not BEST friends
2014 month Lankan Navy arrested ___ Indian Fishermen.
Jan
38
Feb
29
March
24
It was the Lankan Tamil fishermen who had been requesting Lankan NAVY to arrest Indian
(Tamil) fishermen hunting in their (Lankan) territorial waters.

Indian and SriLankan Tamil fishermen are increasingly becoming hostile to each other for
fishing right.
For lip service, the political parties and business organizations of Tamilnadu they demand
rehabilitation of Sri Lankan Tamils.
But in real life- they hardly contribute any money or manpower for this.
In other words, ground reality is different. The plight of Sri Lankan Tamils = gradually
becoming a political rhetoric in South India (just like Ram Mandir in North India).
Juntaa has moved on- the issues of the day are- employment, growth, inflation,
corruption and women security. So, what Union does on Lankan issue- unlikely to affect
poll outcome.
Given above reasons: India has made the right diplomatic move by abstaining from this voting.
PS: Chindu said we should have voted in favour.
Mock Question: Discuss Indias stand on the latest UNHRC resolution against Sri Lanka.
Do you agree that India has fully changed its foreign policy on Sri Lanka with this? (200
words)
Key points to include
What recent resolution wants: international investigation on Human rights violation during
LTTE-Government war between 2002 to 2009.
Why India abstained: Sovereignty, China-Pak angle, Abstain=both lines open; Ignore Congi
angle.
Why it is not a full U-turn of our Sri Lankan policy: (i) even when we voted, we tried to
water down previous resolutions (ii) have always respected sovereignty (iii) still
giving aid to Sri Lanka for Tamil rehab.
Side notes:
For the latest resolution: Although India abstained from voting, still resolution was passed
because 23 favour.
Official name of this resolution: Promoting reconciliation, accountability and human rights
in Sri Lanka.

Navi Pillay: UN Commissioner to Human rights. She visited Sri Lanka in 2013, unhappy
with progress on Tamil rehab. Told Sri Lankan government to setup a credible inquiry by
2014. Government didnt comply, hence this new resolution in March 2014.
Navi Pillay is not an Indian citizen. She was born in South Africa, has Tamil roots in India.
HQ of UNHRC = Geneva
Total members = 47
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
Tags: IR-b4Modi, Rajtanil
[Current] March-Week4-P3: Economy, E-Governance, Essays- SEBI ordinance, EPFO
permanent Account, Green E-Clearance, Nirbhik Revolver, National Games
Current Affairs Weekly8 months Ago33 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
[Act 5] Economy
E1: SEBI ordinance
E2: Bank of India: Instant Money Transfer Scheme
E3: EPFO- Permanent Account Number
[Act 6] Yearbook / PIB / E-Gov type
Y1: Green E-Clearance
Y2: PPP in TB
Y3: Nirbheek Revolver
Y4: Should we stop National games?

[Act 7] Essay Fodder from VP Speeches

F1: Education related Essay points
F2: Culture, Diversity, Democracy
Mock Questions
Prologue
Before reading this article, practice writing following topics THEN compare your answer with
the points given in the article.
Essay (each in 2500 words and three hours)
Relevance of University education in 21st Century.
Relevance of culture and tradition in the age of globalization.
GS Mains Paper II
Answer following in 100 words each (~4 minutes, 5 marks)
(Regulatory bodies) Enumerate the powers invested to SEBI under the recent presidential
ordinance.
(E-gov) Write a note on the importance of Green E-Clearance project.
(Health) Discuss in brief, the benefits and challenges in involving public private partnership
to combat Tuberculosis.
[Act 5] Economy
Im not covering RBI bank license (because we are at March week4, License topic will
covered next time under April Week1)
E1: SEBI ordinance
In 2013, Government had introduced Securities Laws (amendment) Bill, 2013. But it
couldnt be passed, but since the matter was of urgent importance, government decided to
implement the provisions as an ordinance.
In March 2014, For the third time, Government extended this ordinance.

The silent features of the bill/ordinance:

Empowers SEBI to investigate, raid and attach bank account and properties.
If a person doesnt comply with SEBI order, SEBI can arrest him without approaching the
court.
If any entity gathers funds of 100 crore OR above from juntaa, itll be called Collective
investment scheme. (=indirectly it means company will fall under jurisdiction of SEBI,
because SEBI regulates after Collective investment schemes.) This is necessary because
Sahara says, our scheme was above 100 crore but we are not a CIS, hence SEBI doesnt
have jurisdiction over us
SEBI can further expand the definition of Collective Investment funds through regulations.
Individuals and companies being probed by SEBI can settle their pending investigations.
SEBI can sign agreements with foreign financial regulators for exchange of information.
Fast track courts for speedy trials of pending SEBI cases.
What was the need to promulgate through ordinance?
Given the nuisance of Sahara and thousands of fake Ponzi schemes running in the country =
SEBI needs more powers.
therefore government came up with the bill.
But bill couldnt be passed due to Dysfunctional parliamentary sessions.
Art 123 of Constitution empowers President to issue ordinance during recess of parliament.
Thus, The Securities Laws (amendment) Bill, 2013 promulgated as ordinance for 3th time.
Timeline
Jul 13
original ordinance (1st time)
Sep 13
ordinance extended (2nd time)
January 14 bill lapsed
March 2014 Ordinance extended. (3rd time)
E2: Bank of India: Instant Money Transfer Scheme

Situation:
You want to send money to Mr.X but he doesnt have bank account / ATM.
Ask his mobile number.
in Bank of Indias instant money transfer portal- you type his phone number, secret code,
cash amount.
He gets a secret SMS (4 digit PIN)
He goes to IMT enabled ATM. Types his mobile number, sender code and SMS pin
thus money transferred.
Benefits
Non-card holder can access money transfer through formal banking.
Increase financial inclusion
Faster and reliable money transfer
E3: EPFO- Permanent Account Number
Problem
When a person changes job, he had to get new account number. Then transfer money from
previous account to new account
Every more than 10 lakh such applications filed.
Result: Inconvenience to customer. Many of them permanently close EPFO account and
invest money in some scheme by private insurance/mutual fund/pension type companies.
= EPFOs client gone.
Solution:
Now EPFO will give universal account number (UAN) to all subscribers
so even if you change job, your account number remains the same (just like bank account or
PAN card)

C-DAC [Centre for Development of Advanced Computing] will develop the technology.
[Act 6] Yearbook / PIB / E-Gov type
Four topics: green e-clearance, PPP in TB, Nirbhik Revoler and National games.
Y1: Green E-Clearance
Q. Write a note on the importance of Green E-Clearance project. (100 words)
In recent times, more than 100 infrastructure projects worth Rs.4 lakh crores were stalled due
to lack of Environmental clearances.
National Highways Authority of India had even moved the Supreme Court against the
environment ministry for delaying clearances.
In the backdrop of logjam, the Project Monitoring Group (PMG) decided setup an online
portal- Green e-clearance for infrastructure projects.
It will become operational from July 1, 2014.
A company can upload all required documents on the website for approval from respective
department.
Company can also check the status of their application.
Clearances will be awarded within the stipulated time period.
This will make process of green clearances faster, more predictable; will improve
infrastructure and will boost the confidence of entrepreneurs and investors.
~130 words.
Y2: PPP in TB
Q. Discuss in brief, the benefits and challenges in involving public private partnership to
combat Tuberculosis. (100 words)
Benefits:
Public sector health care institutions face shortage of quality human resources. More than
60% of the TB patients receive treatment from private sector anyways.

Therefore, Partnership with private sector will bring uniformity in planning and quality of TB
control program.
Challenges:
Private sector has poor compliance with the Revised National TB Control Programmes
(RNTCP).
They dont monitor patients regularity, nor check patients adherence to Drug course
completion. This increases the number of drug-resistant TB cases.
Sometimes, private medical providers use inappropriate tests and prescriptions, leading to
rising patient costs and incorrect diagnosis.
~98 words.
Y3: Nirbheek Revolver

By Indian Ordinance Factory.

For self-protection of women. Name inspired from Nirbhaya, the victim of Dec 2012
gangrape.

This is the first Indian gun designed especially for women.

0.32 bore, weighs only 500 gms. (regular version weigh 750 gms)
Can fire six bullets in succession.
Doesnt jam unlike pistols.
Men can also buy it, but factory will give first priority women.
Limitation: Too expensive >Rs.1.2 lakhs. Cheaper alternatives like pepper sprays. And more
importantly, if state became strict enforcing law and order, women wouldnt need to
carry such weapons / devices anyways.
Side theory: What is BORE vs caliber?
Bore
Internal diameter
guns barrel.
for pistols, revolvers

Caliber
of

same
for rifles. (Although there is no rule- even pistol can be expressed in
calibre 0.45 calibre revolver.)
Expressed in mm or inches.

Expressed in inches
Nirbhik revolver is 0.32
INSAS rifle = 5.56 mm caliber (= 0.22 inches)
bore.
Y4: Should we stop National games?

(Interview) Q. recently Sports Authority of India (SAI) proposed to scrap the national
games. Is it a right move?
Background:
National games are held once in every two years.
2009: 35th National games were to be held @Kerala
but postponed because Kerala yet to finish building stadiums.
In this context, SAI suggested two things to India Olympic Association
scrap the national games altogether OR

Hold this 35th tournament @SAI centers.

Opinion:
National games is premier sporting event of India, therefore should not be scrapped.
But the venue / time can be shifted.
Kerala can host the event in some other year, when their stadiums are fully functional.
If the national games are scraped- itd would discourage the sports community and
undermine the governments commitment towards development of Sports and Youth in
India.
[Act 7] Essay Fodder from VP Speeches
in last week of March 2014, Vice President made two speeches, both contained lot of good
points for essay.
VP@AMU: pib.nic.in/newsite/PrintRelease.aspx?relid=104719
VP@
International
conference
on
pib.nic.in/newsite/PrintRelease.aspx?relid=104674

Traditional

Culture:

F1: Education related Essay points

University:
Universities are not a modern novelty. They have existed in all civilisations from ancient
Greece and ancient India, to Medieval Egypt, Morocco and Europe.
Universities emerged whenever human thought processes evolved to the point of asking
questions that go beyond primary needs of human existence.
Universities are expected to offer a depth and breadth of vision not available in the rush of
everyday life.
University is a place that not only produces knowledge but also produces doubt
University is a place that is creative and unruly, home to polyphony of voices.

University has a practical objective: to impart skills to get a job or a better job, to improve
prospects in life. For the latter reason, University syllabus must respond to the
requirements of the age.
But our universities have turned into degree awarding machines. This doesnt benefit youth,
they do not receive sufficient guidance on career options at the school leaving stage and
therefore drift through a degree course aimlessly. (and then give UPSC exam)
University Professors are not focusing on quality teaching. They do not evoking the interest
of the students, or encourage them to critical and innovative thinking. The curiosity latent
in every young mind is not awakened.
Teacher and Teaching
No man can be a good teacher unless he has feelings of warm affection towards his pupils
and a genuine desire to impart to them what he himself believes to be of value.
Teaching should be a calling of aptitude and choice rather than of necessity.
21st century education must have two ingredients
globalisation of education standards
up-gradation of skills
Quotes:

Ibn
Khaldun
??

The pasture of stupidity is unwholesome for mankind and the evil of falsehood
is to be fought with enlightened speculation;
hence the need both for critical insight, and for lifting the veil of ignorance.
Teaching should be a calling of aptitude and choice rather than of necessity.

F2: Culture, Diversity, Democracy

Indian diversity and tolerance:
Three interconnected ideas:
We must repudiate the idea that the state belongs to the dominant group / majority.

Nation building policies must try to recognize and accommodate diversity. Instead of
assimilating every group and excluding groups that refuse to assimilate.
We must acknowledge the historic injustice and make amends for it.
Freedom and anarchy
Freedom is not synonymous with anarchic behavior
Freedom doesnt mean arbitrary demands undermining the very purpose of democracy.
Those who wrote grammars of democracy in earlier or modern times did not visualize
anarchy as a valid option.
Social customs
Social customs usually represent the crystallization of occasion-specific requirements;
Social customs are neither sacred nor immutable.
From other (foreign) societies we can learn that practical correction can be made in (idiotic)
social customs without transgressing Core values of society.
Tradition
A tradition means anything that is handed down from the past generation to the present.
Traditions are not independently self-productive or self-elaborating.
Mankind cannot live without traditions
Mankind cannot live satisfactorily with all traditions it receives from past generation.
Therefore, Traditions are both persistent and disrupted.
Traditions are indispensable.
Traditions do not impede forward movement of societies. They lend authenticity to them.
Human societies retain traditions, not because they love it but because they grasp that they
could not survive without those tradition.
We must remember that tradition and modernity are not antipodes.(opposites)

We must try to locate valuable tradition and adapt it into the framework of modernity
We should examine the past with critical thinking and not just for adulation (praise).
Therefore, we should avoid imaginary glory and chauvinism / jingoism.
Globalisation
Ours is a world characterized by globalization of values and culture.
While globalization alienates us from our root, but at the same time, provides opportunity to
learn from the experience and practices of others.
Globalization erodes national cultures and traditions.
Migrants introduce greater complexity and heterogeneity to societies.
Thus, Migrants help the host-society become progressive, multicultural and poly-ethnic.
Mock Questions
Not framing MCQs this time because Im saving them for a full-fledged 100 MCQ mock test
for later.
Essay
Relevance of University education in 21st Century.
Relevance of culture and tradition in the age of globalization.
General Studies paper 1 (GS1)
Discuss the Cultural importance of Menhir sites in India (100 words)
Why is Rakhigarhi site an important Archaeological milestone in India? (100 words)
General Studies paper 2 (GS2)
List the provisions related to Twin nomination in the RPA Act and examine the need for
reforms in it. (100 words)
Discuss in brief, the provisions relating Voting rights of Defence personnel, and recent SC
verdict on it. (200 words)

Write a note on the legal initiates taken to prohibit manual scavenging in recent times. (200
words)
Examine the need for further empowerment of SEBI, and discuss the provisions of recent
ordinance for it. (200 words)
Discuss Indias stand on the latest UNHRC resolution against Sri Lanka. Do you agree that
India has fully changed its foreign policy on Sri Lanka with this? (200 words)
Write a brief note on Indias foreign policy under the Prime minister Manmohan Singh. (200
words)
What is MFN status? What benefits could Indian gain by MFN-status in Pakistan? Why
hasnt the deal materialized yet? (200 words)
Discuss the importance of rail connectivity to Arunanchal Pradesh and the recent initiatives
taken therein. (100 words)
Enumerate the powers invested to SEBI under the recent presidential ordinance.
Write a note on the importance of Green E-Clearance project. (100 words)
Discuss in brief, the benefits and challenges in involving public private partnership to combat
Tuberculosis. (100 words)
Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations published so
far.
Tags: Rajtanil
[Ancient-India] Rakhigarhi-Biggest Harappan Site, Muziris Ports, Pratihar Mint, Menhir
sites
miscellaneous8 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Rakhhigarhi-the biggest Harappan site
Menhirs sites in Mizoram

Muziris Port
Pratihar Mint in Haryana
Rakhigarhi, the biggest Harappan site
~2000 sites of Indus valley civilization in India, Pakistan and Afghanistan.
Till now, the largest site: Mheonjo-daro, in Pakistan.
Now the largest site= Rakhigarhi, Hayana
India

Pak
Mohenjo-daro (2nd largest)

largest = Rakhhigarhi (Haryana)

Harappa
5th largest= Dholavira (Gujarat)
Ganweriwala.

Why Rakhigarhi important?

from Indiatoday
Industrial centre of Indus valley civilisation.
A seal and a potsherd, both inscribed with the Harappan script.
Previously, Archiologists believed that Early Harappan civilization phase begin from 3500
BCE
But new sites from Haryana are as old as 5000 BECAUSE (Farmana, Girawad and Mitathal)
Now Expert think that Harppan civilization originated from Ghagagar basin in Haryana and
then spread towards Indus Valley civilization in Western India and Pakistan.
Rakhigarhi is best example for the expert to prove above concept.
Menhirs sites in Mizoram

Menhir means a large standing stone.

They contain embossed figures of humans, animals and weapons.
Found in Mizoram, Andhra and Myanmar. (even in South America and Eastern Europe).
Mizo people have protected these sites for ages, despite having no exact knowledge of their
meaning / origin.
Mizo script is barely 100 years old. Previous events are unwritten, orally passed through
folklore and songs. Therefore, Menhirs are important source of decoding the early history
and culture of this region. (Although yet to be deciphered.)
WHY IN NEWS? Culture ministry has declared the Menhirs, its surrounding caves and
forest as protected areas.
Side notes:
Exact place: Vangchhia village, Champhai district, Mizoram.
In Mizoram, Villagers call the site Kawtchhuah Ropui (The Great Gateway).
~170 Menhirs found. Each ~6 ft.
The site lies on the bank of the Tiau River

Taiu river separates India and Myanmar.

Muziris Port

Muziris: lost Roman Port town, excavated near Pattanam, Kerala.

Murizirs finds mention in ancient Roman and Tamil texts.
Setup during Iron age, Roman trade during 1 to 4th BC
Traded with Alexandria (N.Africa)
Later Portuguese built St.Thomas fort here. Tipu Sultan destroyed it (1790)
Items found: Chera coins, pottery, Frankincense (Aromatic gum), gold filament and semiprecious stones.
DNA samples are being checked to find who lived here? Dravids, European or Africans.
LIDAR: light detection and ranging. The Oxford Archaeologists are using this technique to
map the surface of Muziris/Pattanram port.
Pratihar Mint in Haryana

full
report:
http://pib.nic.in/newsite/erelease.aspx?relid=104424
He has given a long PH.D thesis. You need to extract only MCQ worthy points.
Majra village, Haryana.
Pratihara period mint found. (mint = A factory where money is coined by authority of the
government.)
First of its kind ever found in the country.
worked during 8-11th century
Pratihar King MihiraBhoja. HQ=Kannauj, Ruled over northern and central India.
Visit Mrunal.org/HISTORY For more articles on History and Culture.
Tags: Architecture, Rajtanil
[Festivals] JalliKattu Supreme Court Ban, Anayottam Race, Anavaal Pidi & other South
Indian festivals
History8 months Ago1 Comment
For Indian History, I recommend
Spectrum- Rajiv Ahir

JalliKattu: Guidelines by SC + Government

Anayottam race
Anavaal pidi Ritual
In this article, we shall see certain South Indian festivals.
JalliKattu: Guidelines by SC + Government
UPDATE: In May 2014, SC Banned Jallikattu altogether, this article was written before that
happened.
Q.What is Jaliikattu? List the guidelines set by Supreme court (SC) and Government of
India(GoI) for organizing of this festival. (200 words)
Meaning:

Jaliikattu is a bull taming sport

organised in the January-July period as part of Pongal harvest festival celebration since the
Sangam age.
Coin bags & other prizes are tied to bulls horn, then bull is made to run through a narrow
passage, men try to tame it and grab the prizes.
Earlier, Animal welfare board of India and PETA filled separate petitions in Supreme Court,
demanding complete ban of Jaliikattu since it involves cruelty to animals.
SC Direction:
Hold Jallikattu five months a year but only after permission from District Collector.
Bulls must be monitored by Animal welfare board officers to ensure no steroids or
performance enhancing drugs are given.
Only 4 men against 1 bull.
Dont allow Spectators in the ring.
Double barricades to protect innocent bystanders.
Medical teams to treat the wounded men and animals.
Guidelines by GoI
2011: Environment ministry issued notification banning the exhibition & training of Bulls as
performing animals. Although in 2014, Removed Bulls from that list.
In addition to the SC guidelines, Government directed district administration to ensure no
unnecessary harm was caused to bulls.
Organisers have to deposit Rs.5 lakh and Rs.2 lakh for each death and serious injury case
respectively.
Physical examination of Bulls before the event, ensure no steroids or drugs are given to the
bulls.
~220 words.

Side notes

Jallikatu= Salli kassu (coins) + Kattu (meaning a package) tied to the horns of the bulls as
the prize money.
Timeline of Events
Animal welfare board of India filled case in SC, asking for complete ban of Jallikattu
2008
under Prevention of Cruelty to animals act.
2008SC bans Jallikattu festival.
09
2009 Tamilnadu enacts a law to regulate Jallikattu (so they can ask SC to revoke the ban.)
PETA reports that despite SC guideline and Tamilandu Act, the cruelty continues. For
example, to ensure bull behaves aggressively, organizers injure its tail, put chilli powder
2013
in its eyes, they even feed desi liquor to the bull. When bull behaves violently, crowd
gangs up and beats it mercilessly. PETA made documentary, and asked SC for complete

ban of this festival.

Bull as performance animals
1998: Environment ministry banned the training and exhibition of bears, monkeys, tigers,
panthers and lions
2011: added Bulls in that list. (Meaning organizers cannot train bulls for Jallikattu.)
10 April 2014: Removed bulls from that list. (Obvious angle = vote bank to please the rural
population of TN before general election in their Constituencies).
Arguments in Court
Jallikattu advocates
PETA advocates
This is sport and not circus
Jallikattu has became an industry or circus- otherwise
performance hence Bulls
in ancient times, it was held only during Pongal,
shouldnt be in the list.
now theyre holding it 5-6 months in a year!
Interview: Culture traditions and religious sentiments apart, Do you think JalliKattu should be
banned completely?
Anayottam race
Why in News? Because its held during this time!
It a traditional elephant race performed at Guruvayur temple at Kerala.
The race marks the beginning of annual Guruvayur festival in Feb-March.
The winning elephant gets honour to carry Thidambu (idol of Guruvayurappan) on all special
occasions for one year.
Btw, Jallikattu = bull taming festival in Tamilnadu.
Anavaal pidi Ritual
Where? Kerala
What? Catching elephants tail festival.
Elephant is freed of chains, it bought to the temple in Kollam.

Devotees chase it for 100m to catch its tail.

Symbolism: childhood pranks of the Ganesha and Kartikeya.
Tags: Festivals, Rajtanil
[World History] Gandhi in South Africa, Transvaal March, Zulu War, Boer War, civil
rights movement
History8 months Ago2 Comments
For Indian History, I recommend
Spectrum- Rajiv Ahir

Gandhi in South Africa

Gandhi: 1890s till 1900s
Gandhi in Boer War (1899)
Gandhi in Zulu Wars (1906)
1913-14: The Peak of protests
Transvaal March 1913
Sugarcane Protests
December Enquiry
Evaluation of Gandhi in S.Africa
#1: Gandhi as an Integrationist
#2: Gandhi, the Feminist
#3: Gandhi the Mahatma
#4: Gandhi vs his Critiques
#5: Gandhi, the British Patriot

#6: Gandhis Kesar-e-Hind

Gandhi in South Africa
Topic in news because Ramachandra Guha released a new book -Gandhi Before India. Later
EPW put a review article about this book.
And previously even PIB ran an article on Transvaal March (we saw that already)
But Since UPSC included world history in General studies Mains paper I-hence topic
becomes important- what did Gandhi do before coming to India? How did he fight the
imperialist powers in South Africa?
Gandhi: 1890s till 1900s

1893: Gandhi Arrives in South Africa, to fight Dadabhai Abdullas case.

Indian businessmen admired him for his fluency in English, legal matters and Gujarati
background.
But Gandhi did not serve only those rich businessmen. He also fought cases for indentured
laborers- mainly permit renewal type litigations.
Interestingly, he was the only Indian barrister practicing in Natal. Hence very busy with
work.
thrown out of a train from Durban to Pretoria, despite having a valid ticket to travel in the
first class.
1894 founded Natal India Congress and became its first Secretary.
1899 another Indian barrister Rahim Karim Khan arrived.
1893

Gandhis workload decreased, he starts spending more time reading about religion, politics.
How did they influence Gandhi?
authors
Henry David
concept of Civil Disobedience
Thoreau
Unto his last ideas of simple living, community living. Work by hands
John Ruskin
better than by machines. (same reflect in his Hind Swaraj later on).
Ralf
Waldo
concept of Individualism
Emerson
The kingdom of God is within you.
Tolstoy

Gandhi in Boer War (1899)

Transvaal was rich in gold, so British plotted to overthrow Boer government.
This led to the Boer War (1899)=>Boers were defeated but they continued to live here.
During Boer war, Gandhi served from British side, as an assistant superintendent of the
Indian volunteer stretcher-bearer corps.
Gandhi earned Boer war medal for his services.
He wrote in the autobiography:

When the war was declared, my personal sympathies were all with the Boers, but my loyalty to
the British rule drove me to participation with the British in that war. I felt that, if I demanded
rights as a British citizen, it was also my duty, as such to participate in the defence of the British
Empire. so I collected together as many comrades as possible, and with very great difficulty got
their services accepted as an ambulance corps.
Phoenix Farm
1904: Inspired by Tolstoy, Gandhi setups Phoenix farm. There he begins treating all ailments
and preaching and writing about hygiene, sanitation, good diet, natural cures, and sexual
abstinence. This sheds an important light on the origin of Gandhi Ashrams in India.
1904: starts printing newspaper Indian Opinion from his farm.
Gandhi in Zulu Wars (1906)
British attacked Zulu population and made them serve as labour in the diamond mines across
Southern Africa.
In 1906, the Zulu Rebellion broke out in Natal province of South Africa
Zulus demanded land rights and abolition of heavy taxes.
However, the whites declared war against the Zulus.
In this Zulu war/rebellion, Gandhi (Again) served from British side, as the officer in charge
of the Indian volunteer ambulance corps and earned Zulu War Medal for his services.
Fight against Registration Act
190607
1908
1909

A new law required Indians to carry registration certificates all the time. Gandhi begins
first passive resistance campaign / Satyagraha. He asks people to burn their certificates.
Gandhi arrested for this campaign against registration act
Gandhi travels to London, finally Transvaal registration act repealed.

1913-14: The Peak of protests

Supreme Court in Cape Town nullified all non-Christian marriages, and declared all
Indian wives as mistress and their kids as bastards.
March
1913

April
1913
May
1913
June
1913

Gandhi immediately demanded a change in the law, declaring that declaring that
Any nation that fails to protect the honour of its women, any individual who
fails to protect the honour of his wife is considered lower in level than a brute.
Kasturba spearheaded a passive resistance. Women volunteered to go to jail on their
own initiative.
South African Unions PM General Smuts introduced even harsher immigration bill.
The bill included an ongoing provision for the 3 poll tax
Gandhi demands poll tax and marriage issues be settled together. All Indians and
Transvaal and Natal rally up behind him. But the immigration bill soon passed.
King gives assent to bill and it became an Act.

Sep
1913
Oct
1913

Gandhi launches the passive resistance courts arrest along with his followersincluding women.
5000 Indian coal miners of northern Natal go on strike. Gandhi and his co-workers
were instrumental in encouraging the strike.

The coal miners strike provided the committed mass of supporters to Gandhi.
His movement gains attention of Indian press, Gandhi starts receiving funds from Gokhale,
Aurobindo Ghosh and Wealthy Indians, even from princely states of India.
This money helped him to launch a long Transaaval march- arranging food and supplies for
those protestors and their families.
Transvaal March 1913
Along with 2000 Natal coal miners, Gandhi began March towards Transvaal. At that time,
crossing border from Natal to Transvaal required Permit- But they crossed border without
permit.
Gen. Smuts downplayed this march thinking itd soon collapse. (Just like how Lord Irwin
thought Dandi Salt March would be an #EPICFAIL).
But since the protest did not collapse, General Smuts ordered police to arrest coal miners.
Miners were sent to hard labour camps. Gandhi was thrown into Jail again.
SA2: Transvaal March
Q. Discuss the events leading to Transvaal March and how they helped transforming
Gandhi
as
a
mass
leader?
(10
marks
|
200
words)
Topic
important
because
completed
100
years
in
2013.
First brainstorm for ideas
What was the problem of Indians in S.Africa?
registration
migration difficult
marriage invalid
Gen. Smut wasnt listening. Transval march=>Gen.Smut Listened.

If he transformed as mass leader then in what wisdom did he gain during Transval March?
Now lets frame the answer
Events Leading Transvaal March:
Since the early years of his stay in S.Africa, Gandhi had tried Moderate methods of prayers
and petition to oppose the discriminating laws against Indians, but often he failed.
1906: A legislation in Transvaal, required the Indians to register themselves and carry
registration certificates at all times.
Gandhi initiated passive resistance or satyagraha and called the Indians to burn their
certificates in public.
Later, the authorities even imposed restriction on the inter-provincial movement of Indians,
and declared their Hindu marriages legally invalid.
Finally in 1913, Gandhi launched a March from Natal to Transvaal, crossing the border
illegally. These Marchers were sent to jail and treated brutally. But the struggle paid off,
and under Gen.Smut-Gandhi agreement, most of their demands were accepted.

Gandhis transformation
Tolstoy farm and Phoenix farm were precursor to Gandhis ashrams in India.

He learned that civil disobedience and passive resistance were more effective than traditional
moderate methods of prayers and petition.
Gained experienced of leading people from both genders, different religions, caste and social
classes while facing resistance from both enemy and followers.
This experience made him bold enough to take hard decisions even at the peak of the
enthusiasm of the followers e.g Calling off the NCM due to chauri-chaura incident.
~209 words. Anyways, back to the topic:
Sugarcane Protests
Time: mid-November 1913, after Arrest of Gandhi.
Place: Coastal areas of Natal, Sugar plantations.
Now here also, Indian laborers went on strike and began marching towards towns. This
protest was wholly self-organised, they were inspired from the news of Transvaal March
and Gandhis arrest.
Although they called Gandhi their Raja (king!) but methods were not always Gandhian.
Often these angry strikers would burnt plantations, attack policemen with knives, sticks and
stones. Many injured and died.
The Indian laborers in Durban also began similar protests.
Overall, their demands were:
Abolish poll tax
Right to free travel without permit.
Voting rights.
Release Gandhi from jail
As the common sense suggests- General Smuts refused and called in the army to teach them a
lesson.
December Inquiry

Protest gains momentum. Large amount of donations from India.

Even Viceroy Hardinge (India) criticized the South African government.
December Under pressure, General Smuts orders an enquiry commission. Himself wrote
You cant put twenty thousand Indians into jail.
1913
March 1914 Commission report says following:
Indian laborers are important for South African economy
Give them permit for three years (instead of asking them to renew it every year.)
All Indian marriage be legally recognized.
Abolish 3 poll tax
June 1914 Government enacted the law to implement this report.
July 1914 Gandhi leaves for England. and from there, to India.
General Smut quotes
Gandhi approached me on a number of small administrative points, some of which I could meet
him on, and as a result, the saint has left our shores I sincerely hope for ever.
Evaluation of Gandhi in S.Africa
#1: Gandhi as an Integrationist
During South African struggle, Gandhi took help of Hindus, Muslims, Christian, Jews,
Tamils, Parsi and even Chinese immigrants.
He sought the best in all, believed people of different backgrounds can living together in a
united spirit.
This experience made him believe that all faiths can lead to salvation.
Gandhi was thus different than his contemporaries.
Indian Congress embraced all different races and religions but in the beginning Congress was
very elitist-upper caste male dominated body.

Although Gokhale and Dadabhai Naoroji were free of sectarian and caste bias, but they lived
very privileged life.
Contrary to them, Gandhi embraced a wide range of castes, races, religions- both male and
female, and integrated them into the struggle in South Africa- he united all Asians and
Africans, and not just the Indians.
#2: Gandhi, the Feminist
The idea of a woman going to jail had been unthinkable for male, upper-caste Indian
nationalists.
But with Gandhis passive resistance in S.Africa, this became a common phenomenon, he
asked women to join the protests and court arrests. [was influenced by feminist Millie
Polak]
Thus, Gandhi played a catalyst in the entry of Indian women in political protests and freedom
struggle.
#3: Gandhi the Mahatma
Gandhis long time friend Pranjivan Mehta used this title, in a letter to GK Gokhale (1912)
He wrote, Mahatma Gandhi was one of those rare men who are occasionally born to elevate
humanity in the land of their birth
Guha compares the Gandhi-Mehta relationship to that of Marx and Engels.
#4: Gandhi vs his Critiques
During the Indian freedom struggle, we know that many revolutionaries and even Congress
leaders did not fully approve Gandhian methods.
Similarly even in S.Africa, Gandhi faced critiques- main among them was a Tamil Journalist
PS Aiyar.
Gandhi
PS Aiyar
Indian should be given right to free movement
not just Transvaal, Indian should get right to free
within Transvaal region- without requiring any
movement throughout South Africa.
permits.
was against the 3 poll tax on Indian laborers.
No, we should immediately launch a mass

But he wanted to protest in Gradual Stages:

movement to pressurize the government

into abolishing the tax.

First we send petition to Government,

less talking and more doing
then mass meeting,
then petition to British parliament
if still no solution then we refuse to pay
this tax.
thus in the later phase of the movement, the bad relation between Gandhi and Aiyer radicalized
the movement- with poors on Aiyars side and white / blue collar Indians on Gandhis side.
#5: Gandhi, the British Patriot
Until the 1920s, Gandhi was an ardent British patriot
He felt the British Empire embodied the principles of equality and liberty that he believed in.
He considered General Smuts racist policies in South Africa as an aberration, rather than a
defining trait of the British Empire.
Gandhi saw British Raj as benevolent rather than tyrannical; despite its flaws, British Raj had
been good for India (compared to the rule by native princes), and that the ideals of the
British constitution merited the loyalty of all British subjects across the globe, white,
black and Indian alike.
Gandhi even declared that he and his fellow Indians were proud to be under the British
Crown, and England will prove Indias deliverer.
Gandhi participated in Boer and Zulu wars hoping itd earn the trust of British authorities
that Indians and Asians were indeed loyal subjects of his majesty, and theyll be treated
equally in South Africa.
Some historians even argue, Gandhi participated in these wars with hope that itd end the
struggle in South Africa and help him return India.
#6: Gandhis Kesar-e-Hind
1915: Gandhi returned to India, Lord Hardinge awarded Kesar-e-Hind medal for his services in
ambulance corps during South Africa.

1920: During Khilafat movement, Gandhi returned these medals to Viceroy Chelmsford and
wrote,
It is not without a pang that I return the Kaisar-i-Hind gold medal granted to me by your
predecessor (Lord Hardinge) for my humanitarian work in South Africa, the Zulu War
medal granted in South Africa for my services as officer in charge of the Indian volunteer
ambulance corps in 1906 and the Boer War medal for my services as assistant
superintendent of the Indian volunteer stretcher-bearer corps during the Boer War of
1899-1900.
I venture to return these medals in pursuance of the scheme of non-cooperation inaugurated
today in connection with the Khilafat movement. Valuable as these honours have been to
me, I cannot wear them with an easy conscience so long as my Mussalman countrymen
have to labour under a wrong done to their religious sentiment.
Events that have happened during the past one month have confirmed me in the opinion that
the Imperial Government have acted in the Khilafat matter in an unscrupulous, immoral
and unjust manner and have been moving from wrong to wrong in order to defend their
immorality. I can retain neither respect nor affection for such a Government.
Mrunal comments: For MCQs, keep in mind Gandhi earned these medals for work in Zulu and
Boer wars (and not WW1), and returned these medals for NCM in connection with Khilafat
movement specifically. (As evident from his own letter above.) Because at some pages in
Wikipedia and other books- they claim Gandhi got this medal for service in WW1 and returned
them for Jaliawalan massacre = thats incorrect.
Overall:
Inclusion of Women, all races and religions = must for success in a political struggle.
His Ashrams as a meeting and training ground for all of them.
Passive resistance, civil disobedience = more successful than violent methods.
There will be critiques and setbacks but perseverance will lead to success.
Made General Smuts to abolish poll tax, legally recognize Indian marriage, and give
lengthier permits.
Because of his achievements in South Africa, Gandhi could return to India as an Indian
national hero with an established reputation- elicit support from Congress, other leaders
and Indian people.

Until 1920s, a British patriot, as seen from his participation in Zulu wars and Boer Wars. But
later disillusioned by the British raj in India.
Now Ramchandra Guha is planning to write next book about Gandhis work in India from 191548.
Mock Questions (200 words each)
In South Africa, Gandhi fought against policies of General Smuts and not against the
British empire. comment.
Discuss in brief- South Africa as the experiment lab of Gandhian methods.
Write a note on how South Africa turned Mohandas into Mahatma.
Why did Gandhi fought against the colonial powers in South Africa? Evaluate his
achievements and failures therein.
Tags: Jack-Sparrow
Current] March-Week3-Part1: History, Culture, Environment-Biodiversity, Polity topics:
Rhino dehorning, Western Ghat notification, Chagos rehabilitation, RPA, UID-Biometric
data
Current Affairs Weekly8 months Ago91 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
Mains answer writing Practice for March 2014: Week3
[Act I] Environment and Biodiversity (EnB) related
E1: Rhino Poaching Problem vs Dehorning solution
E2: Great Himalayan National Park: UNESCO nomination
E3: Western Ghats: Draft notification
E4: Chagos people: Rehabilitation

E5: Natural Aerosols: effect on Monsoon

[Act II] Polity Related
P1: RPA Section 8 vs. Law commissions recommendation
P2: UID Biometric data= Not for solving crime
Prologue
So far, I had released two PIB compilations for March 2014, week1 and week2.
But in March week3, week4- hardly any good topics in PIBs official site.
So from now on, Ive decided to combine PIB + selective topics from Hindu and
Indian Express. Henceforth under the tag [Current].
Theyll be released on weekly basis (most probably on Sunday or Monday)
These compilations will contain summary of
PIB.NIC.IN (Almost all important topics)
TheHindu (only few selected topics)
IndianExpress (only few selected topics)
These [Current] compilations will NOT contain following:
Person in news (PIN) / Sports related data because itll be put under separate [PIN2014], before SSC CGL re-exam.
Sci-tech related items, because theyll be separately done in sci-tech compilation.
Long Topics that require standalone full-fledged articles e.g. Ukrain, capital account
liberalization or xyz other big topic.
Clichd topics and ball by ball commentaries.
Important:
Just because Mrunal.org will release weekly current affairs, doesnt mean you are free
to stop reading newspapers. This is mere supplement and not substitute of any

newspaper. Im not covering each and every MCQ worthy topic here. Just a few
that I feel most important ones.
After the closure of write2win competition, got many requests from readers to create
a new system, to aid the players from small town and village (who may not get
access to pib etc on daily basis). So this is the new system (in infant stage at this
moment. May expand in future in terms of topic coverage)
anyways
lets
see
what
happened
in
March
Week
3
(15-21).
Part 1: deals with history, culture, EnB and Polity. (youre on this page)
Part 2: deals with Economy, IR/Diplomacy and MCQs. (click me)
Mains answer writing Practice for March 2014: Week3
Before starting to read this article, DO write following mock-question (the sample
answers are embedded in this article itself)
Question
wordlimit
Is Dehorning a viable solution to stop Rhino poaching in India? Justify
200
your stand.
List the salient features of Draft notification on Western Ghats ecologically
100
sensitive areas.
Examine the deficiency in Section 8 of RPA act and list the remedies
200
suggested by Law commission.
Discuss in brief the Registered Foreign Portfolio Investor (RFPI) scheme. 100
Examine the problem Rohingya migrant influx in India and suggest
100
remedies.
Write a note on Sino-India Strategic economic dialogue.
200
List the salient features and benefits of OTBA scheme.
100
[Act I] Environment and Biodiversity (EnB) related
five topics: Rhino dehorning, UNESCO nomination for Great Himalayan Park, Western
Ghat notification, Chagos islands and natural aerosols.
E1: Rhino Poaching Problem vs Dehorning solution
Q. Is Dehorning a viable solution to stop Rhino poaching? Justify your stand. [10
marks | 200 words]

Rhino-horns are used in traditional Chinese medicine and decorative trophies. This illegal
trade is so lucrative, poachers have begun using AK-47. While Rhinos are indeed being
killed for their horns, and theoretically, dehorning ought to save them. But dehorning is
not the lasting solution, because:
Rhinos need horns for foraging food, digging waterholes, breaking branches; females
need them to protect their calves from predators, males need them to fight other
males claiming territorial domination for mating. Therefore, Dehorning will
increase their vulnerability from both humans and wild predators.
If a dehorned Rhino is hiding in a thick bush, or roaming in dark night, the poacher
may kill it anyways.
Poachers often have to spend weeks to track a rhinos footsteps before the actual
hunt. So, African poachers deliberately kill de-horned rhinos, to avoid tracking
these useless targets in future.
Rhino Horn is not a bone but keratin- like human fingernails and hairs, and can
grow back. In Africa, Poacher even hunt such de-horned rhinos to extract those
few grams of partially re-grown horns.
Instead of separating Rhinos from their horns, they should be protected with firm hands.
Use local people for Rhino protection and intel.inputs about poachers.
Equip forest guards with GPS, sensors, night vision cameras and sophisticated
weapons.
Satellite tagging and drones for surveillance.
Stricter punishments and speedy trials.
(~230 words)
Side notes:
As per IUCN: Indian rhinos = Vulnerable. (not critically endangered)
Assam the first state of India to have shoot@sight orders against poachers.

Some activists even demand that NH37 (now NH-715) should be closed for five
hours every day- during peak animal movement. (Anti arguments: will hurt Hurt
tourism industry and create hardship for people in Assam, Nagaland and Manipur)
Rhino horn is not same material as Elephant tusk. Rhino horn is made of keratin,
just like human hairs and nails.
Namibia was the first country in world to initiate de-horning of Rhinos. Many other
African nations followed the same suit.
Rhinos have three toes in each foot. (hence theyre not same as pigs, camels etc-who
have two toes).
on that three toes logic, Rhinos closest relatives= zebra, horses and tapirs.
English vocabulary:
A group of ___ is called __
Rhino
crash
crows
murder
Fish
School
Bats
Colony
bees
swarm
Lions
pride
hyenas
clan
wolves
pack
E2: Great Himalayan National Park: UNESCO nomination
why in News? March 2014: Government nominated it for UNESCO heritage site,
because of its fragile ecology and inaccessibility.
located In Kullu, Himachal Pradesh
At the height of 1500-6000m. Climate: Western Himalayan temperate and alpine
type.
Rare species found in the park
Also has glaciers.

Rivers: Tirthan, Sainj, Jiwa Nal, and Parvati. (all get water from glaciers)
Sanctuaries near the park: Sainj, Tirthan
UPSCs unwritten rule dictates that we mugup the species found in this park and their
endangeredness for MCQ!

Species
IUCN classification
Blue
Sheep
/
least concern. Bhutan, China, India, Myanmar.
Bharal
Snow Leopard
Endangered
Himalayan Brown
least concern.
Bear
Himalayan Tahr near threatened. one type of goat.
Endangered. Musk produced by Males. Used in cosmetic/perfume
Musk Deer
industry. Also found in China.
Kalij
Pheasant
least concern
(Bird)
Cheer
Pheasant
vulnerable
(Bird)
Himalayan Griffon least concern. [note: Indian vulture (long billed) is critically
Vulture
endangered but this Griffon is least concern, as per IUCN.
Golden Eagle
Least concern. Note: Bald Eagle is the national bird of USA.
E3: Western Ghats: Draft notification
Q. Discuss in brief the Draft notification on Western Ghats ecologically sensitive
areas. [100 words]
MoEF published this draft, based on Kasturirangan committees recommendations for
protection of Western Ghats.
Salient features
In Ecologically sensitive areas:
New hydropower projects only after EIA
Permitted orange category industries but with strict vigil.
Diversion of forest land for non-forest purpose: information must be provided in
public domain.
Gram Sabha consent necessary for all new projects.
Following activities are prohibited in the Ecologically Sensitive areas
New thermal power plants

mining, quarrying and sand mining. Existing mines will be phased out within five
years.
Any new Red category of industries. (Categorization will be decided by pollution
control board)
Building and township projects beyond specified size.
Enforcement:
Under State governments, pollution control board and forest departments.
MoEF will setup a dedicated Monitoring Centre for Western Ghats
Penalty:
Any violation will be punished under Environment (Protection) Act, 1986.
~130 words.
Btw,Why controversy over this draft?
Kasturirangan committee wanted creation of ecologically sensitive areas (ECA) in
Western Ghats
The villages are to be declared as ECA if they have more than 20% ecologically
sensitive areas in their boundaries.
But this draft notification removed agriculture, plantation and settlement from ECA
definition. (to benefit some regions in Kerala, because of farmers protests)
Environment activists have challenged this in in National Green Tribunal.
E4: Chagos people: Rehabilitation

Chagos Island archipelago = ~70 islands between Madives and Maurititus (Indian
ocean)
Diego Garcia=largest island of Chagos Archipelago.
Chagos Islands are under British Overseas territories. (other examples Falkland
Islands and Gibraltar.)
Chagossian islands are coral islands with rich biodiversity. British declared them as
worlds largest Marine reserve in 2010.
Back in 70s, UK had evicted local tribes to make room for US military base in Diego
Garcia.
Why in news? Because Now British govt. is planning for resettlement of chagossian
communities + eco-fishing, tourism, industrial development on the islands.
E5: Natural Aerosols: effect on Monsoon
Aerosols: tiny particles of either soli/liquid, suspended in atmosphere.

Natural aerosols: sea-salt, water vapour, dust, ash from volcanoes, organic material:
spores, bacteria, pollen.
Artificial aerosols: particles of pollutants like, smoke, ashes.
How aerosols effect rain fall?
Dust absorbs radiation from sun and heats the atmosphere=> low pressure condition
over land.
These pockets of low pressure attract south-west monsoon winds into the region.
Scientists observe that dust from West Asia to India=>helps in monsoon. IF more
dust particles from W.Asia and N.Africa blow towards India, then more rain to
India.
[Act II] Polity Related
two topics: RPA section 8 and UIDAI.
P1: RPA Section 8 vs. Law commissions recommendation
Q. Examine the deficiency in Section 8 of RPA act and list the remedies suggested by
Law commission. (10 marks | 200 words.)
Representation of Peoples act, 1951 Section 8 provides that Any person convicted in
any offence, cannot contest election for 6 years.
But sitting MPs and MLAs can continue in the office, if they file an appeal in higher
court against such conviction in 3 months. [Section 8(4) of RPA Act]
Over the years, this loophole has indirectly aided the criminalization of politics in
India, because trials run forever while MP/MLAs continue enjoying the
privileges.
In 2013, SC declared Section 8 (4) of RPA act as unconstitutional and void. [Lily
Thomas Vs. Union of India]
Because as per Article 101 & 190 of Indian Constitution, the seat of sitting Member
of parliament & state legislator get vacant upon disqualification.

Therefore, Parliament has no right to delay the date of disqualification- by making

such exemptions via RPA Act.
Dec 2013: SC ordered Law commission to examine this issue. Law commission gave
these recommendations:
Sitting MP/MLAs should be disqualified, when chargesheet is filled in court, without
waiting for the conviction.
Disqualify such person for six years. (unless he is acquitted later)
This will apply only to punishment of 5 years or more.
Sufficient judicial scrutiny /safeguards, to avoid misuse of this provision by
ruling/opposite parties.
Criminal cases against sitting MPs and MLA should be put on day-to-day hearing.
Trial should be completed in a year.
P2: UID Biometric data= Not for solving crime
UID = 12 digit unique number
UID database contains following biometric information: Facial images, Finger prints,
iris images
How can it be used to solve crime?
By matching finger prints through forensic lab.
Facial information, iris image for CCTV footage.
Why in news?
In an unsolved rape case in Goa, Some fingerprints recovered from crime scene.
Magistrate ordered UIDAI to share biometric details of all Goans with CBI- to
identify the culprit.
UIDAI went to Bombay HC and then to SC against this order.
Why UIDAI opposing it?

UIDAIs policy= biometric data cannot be shared to any agency without consent of
the card holder
If data is shared for Goa rape case, then many other will demand the same.
UIDAI data has 0.057% chances of false identification, but when multiplied with 60
crore residents data= there is chance of innocent man arrested.
UIDAI has been developed for civilian use and not for forensic purpose.
There are already some PILs in Supereme court about right to privacy. So, until that
matter is settled, we cannot share biometric data with anyone.
It will lead to erosion of trust towards UIDAI among people, who have voluntarily
applied for Aadhar cards.
What is Supreme Courts stand?
Government / UIDAI cannot share biometric database with any third party
WITHOUT permission from original card holder.
Even if a person doesnt have Aadhar card / UID number, STILL government
CANNOT deny him any scheme benefit.
Tags: Rajtanil
[Current] March-Week3-Part2: Economy, Diplomacy related: RFPI Investors, CPSE
Exchange Traded Funds, GSDP, Rohingya Migrants, ICANN control, OTBA scheme
Current Affairs Weekly8 months Ago33 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
[Act 4] Economy Related
E1: RBI: RFPI = FII + QFI
E2: RBI: more banks can import gold under 80/20 rule
E3: CPSE-ETF Exchange Traded Funds

E4: State GSDP: Chindu feels something fishy

E5: Gas Pricing postponed on EC order
[Act 5] Diplomacy / International relation (IR) related
D1: Indo-China: Economic Dialogue and IT Pact
D2: Rohingya illegal migrants in India
D3: USA hands over ICANN to world
[Act 6] Misc:
M1: OTBA scheme
M2: Sports-New format of Hockey
Mock MCQs
Part
1:
deals
with
history,
culture,
EnB
and
Polity.(click
Part 2: deals with Economy, IR/Diplomacy and MCQs. (youre on this page)

me)

[Act 4] Economy Related

Five topics: RFPI, 80/20 rule, GSDP, CPSE-ETF, Gas pricing delayed
E1: RBI: RFPI = FII + QFI
Until now
After RBIs reform in Mar.14
Two type of Foreign portfolio
investors
FII:

Foreign
investor

institutional

Now just one: REFI. Registered Foreign Portfolio Investor

(RFPI)

QFI: Qualified Foreign Investor

REFI: Salient features?
Can buy and sell desi shares and debentures (via broker)

Can participate in disinvestment. (= can buy PSU shares of government- be it State or

Central)
Can buy/sell Government bonds and Corporate bonds. (as per investment limits decided by
authorities)
Government bonds Upto 25 billion USD
Corporate bonds Upto 51 billion.
These limits donot apply for NRIs.
Scheme Will become effective from 1/April/2014.
Benefits?
This Simplification will attract more capital inflows in India. (earlier there were separate
limitations and registrations for FII vs QFI = headache, redtape)
More capital inflow=indirectly immunize our economy against the negative impact of
American Fed Tapering.
Important: under Balance of Payment (BoP): the REFI investment will count undeR capital
account (inflow.) BUT the profit/interest/dividend earned by such people will be
considered as Current account outflow.
Current account
Capital account
Profit interest dividend (outgoing). REFI investment (incoming)
E2: RBI: more banks can import gold under 80/20 rule
Background:
2012-13: Current Account deficit (CAD) went as high as 88 Billion USD.
To decrease this CAD, Government increased import duty on gold to 10% [so that import
decreases]
August 2013: RBI launched 80:20 scheme. Under this scheme, an entity can import gold on
condition that 20% of it will be exported back (=80% left for domestic use).
March 2014:

Until now only six banks were permitted to import gold under this.
RBI permitted some private banks to import gold under this scheme. (Axis, Kotak, Indus and
Yes bank)
Result?
Will help gold jewelry exporters.
Will it raise CAD? Not much because our CAD for 2013-14 will be ~45 billion USD. (so its
not that big 88 billion dollars in 2012. hence relaxation can be made.)
E3: CPSE-ETF Exchange Traded Funds
Think of EFT is one basket.
In this basket, Government puts its shares of 10 public sector understakings (PSUs) or
Central Public Sector Enterprises (CPSE) e.g. ONC, GAIL, BEL.
Fund manager Goldman Sachs takes a knife and cut this ETF basket into smaller pieces
worth Rs.10 each.
These small pieces are put on sale at stock exchange so, aam-juntaa can buy it. (minimum
order has to be Rs.5000)
Hence called CPSE-ETF (Exchange traded funds)
Benefit
@Aam Juntaa: First time investor will get tax benefit under Rajiv Gandhi Equity Savings
Scheme.(upto Rs.50k)
@Government : this is one type of disinvestment, governments shares are being sold to
private players. CPSE-ETF will help government fetch around ~16 crore rupees.
E4: State GSDP: Chindu feels something fishy
GSDP= Gross State Domestic Product. (= in other words States GDP)
Central Statistics Office (CSO) calculates this.

National GDP will be higher than GSDP of States. Because it also counts output from sectors
that donot belong to States. (e.g. Bombay high)
~90% of national GDP is madeup of States GSDP.
Ya but why in news? Because Chindu suspects th at some states deliberately send
exaggerated data to CSO to show their states GDP is awesome.
Therefore, Chindu has ordered CSO to cross check the data as soon as possible.
E5: Gas Pricing postponed on EC order
Rangarajan formula explained Long time ago
Government wanted to implement Rangas formula from 1/April/2014 (would have doubled
the prices)
According to Rangas system, gas rates will be changed four times a year (=in each quarter).
Pricing will be based on 12-month average of global rates and LNG import prices.
But EC denied.
Criticism: sends a wrong signal to the global investor community about the policy
framework
[Act 5] Diplomacy / International relation (IR) related
Three Topics: Indochina Economic Dialogue, Rohingya Migrants In India, USA-ICANN Control
D1: Indo-China: Economic Dialogue and IT Pact
Q. Write a note on Sino-India Strategic economic dialogue. (200 words)
Apart from border issues, Sino-China relation is plagued by two major issues (1) Trade deficit on
Indian side (2) China deliberately restricting the entry of Indian goods and services in its
domestic market, via tarrif and non-tarrif barriers
2010: both signed an agreement to hold strategic economic dialogue every year, to resolve
these issues. Apart from India, only USA has such arrangement with China.
2014: 3th round of talks in Delhi. It revolved around following topics:

Reducing Indias trade deficit with China- giving more market access to Indian Pharma and
IT industries in China.
Within same week, India-China signed an MoU/IT pact. Under this pact, China agreed to
assist Indian IT sector in their domestic market.
Infrastructure cooperation: China agreed to assist to infrastructure development in India,
especially high-speed rail corridors.
improving bilateral investments
Developing counter strategy against two-US backed agreements TPP, TTIP because they are
designed to keep China, India and other emerging economies from WTO talks.
Sidenotes:
Trans-Pacific Partnership (TPP)

TPP

Agreement is between US and Indo-Pacific countries like, Australia, New Zealand,

Japan, Singapore, Malaysia, Brunei, Vietnam, Chile, Canada, Mexico and Peru.
India has not joined TPP but ASEAN-led RCEP (Regional Comprehensive
Partnership) which does not demand labour reforms.
Trans-Atlantic Trade and Investment Partnership

TTIP
Agreement between US and EU, to boost trade between them.
D2: Rohingya illegal migrants in India
Q. Examine the problem Rohingya migrant influx in India and suggest remedies. [100
words]
Rohingya Muslims are illegally migrating to India via Bangladesh, due to on-going tussle with
Buddhist in their native land, Rakhine in Myanmar. However, Indian authorities cannot sent
them back because neither Myanmar or Bangladesh willing to recognizes them.
Some of these migrants involved with Lashkar-e-Toiba & other militant groups active in
Chittagong hills in Bangladesh, who to use the plight of Rohingyas to increase hostility
among India, Bangladesh and Myanmar.
LeT even created an outfit Difa-E-Muslman in Myanmar for this.

Suggestions:
Rohingya migrants in India need to be segregated, rehabilitated.
Indian authorities should negotiate the issue with Myanmar for their possible resettlement.
India should also ask UN Human rights council to intervene.
India should firmly spell that no state should evade its responsibility of giving protection and
equal rights to its minority population.
~130 words.

D3: USA hands over ICANN to world

What is ICANN?
Internet Corporation for Assigned Names and Numbers. HQ: near Los Angeles.
ICANN is a non-profit corporation, manages internet protocol (IP) numbers and Domain
name system (DNS).
Example: Yahoo.com (domain name) and 67.195.160.76 (IP address).
Domain name service (DNS) provides translation between that domain name vs IP addresses.
so aam-juntaa doesnt need to mugup the list of IP address for any website.
US control over ICANN:
ICANN works under contract of US dept. of commerce.
Mar 2014: Commerce department decide itd not renew the contract. (Expires in Sep15). But
instead, they asked ICANN to design new plan to run this system, with globalparticipation of stakeholders across the world.
Why is US giving up control over ICANN:
Now USA thinks that Internet should run under global internet governance (!!) and defend
the right to free speech.
However, its decision came after wide opposition by countries against US snooping/NSASnowden controversy. Great opposition by Brazil. Germany went on to declare separate
European internet.
Impact on World
The impact of this decision depends upon the how and what alternative mechanism would be
conceived by the international leaders.
China and Russia want to have internet under auspice of international organisation like UN
or ITU, through which it can be regulated as well as constrained.
Indias stand?
India welcomed US decision.

India wants democratisation of internet with freedom of expression. (and measures to stop its
misuse e.g. hate speech.)
India fears that US, Russia and China together may form an alternative mechanism that
fulfils their own interest- something akin to UNSC/veto power.
India favours internet governance under a multi-lateral UN body, whose stake-holders are not
from government but from civil society, academia and businesses.
[Act 6] Misc:
Lot can be added, but just focusing on two important developments. (PIN, books-authors-awards
type news will be release separately later on.)
M1: OTBA scheme
Also known as Rajiv Gandhi kitaab se copy karo yojana
Q. List the salient features and benefits of OTBA scheme. [100 words]
Salient features:
CBSE has introduced Open Textbook Based Assessment (OTBA) in class 9th and 11th this
year on experimental basis.
Under this mechanism, students are allowed to carry and use textbooks inside the exam-hall.
The questions will not be verbatim from the given book. They will teststudents ability to
comprehend.
Benefits:
Relief from the burden of cramming the contents of textbooks. break from rote learning.
Students can think beyond syllabus.
Students can acquire skill of information processing, analysis and comprehension.
~80 words.
M2: Sports-New format of Hockey
by International Hockey Federation

To make the game more interesting and attract young audience.

Before: 2 x 35 minutes = 70 minutes
Now: 4 x 15 minutes = 60 minutes
40-second break after every penalty corner and a goal
Will be applicable to Champions trophy, world league, 2016 Rio Olympics and all other
major tournaments.
Mock MCQs
Q1. Correct statements about Tablighi Jamat?
It was an off-shoot of Muslim League to work in the religion, educational field.
Bara Inambara was established by Tablighi Jamat Leaders for propagation of Islamic
teachings.
both A and B
Neither A nor B
Q2: Find Incorrect Matches
Rani ki Vaav: in Dilwara temples at Mt.Abu for religious bathing of Jains.
Bara Imambara: Hyderabad based, Mughal Architecture.
Anayottam Race: Bull cart race in Tamilnadu during Pongal.
Timbuktu mausoleums: Islamic Architecture, in Mauritania in West Africa.
Answer choice:
only 1 and 2
only 3 and 4
only 1, 3 and 4
All of them

Q3. Find incorrect statements

Indian Rhinos are classified as Critically endangered species.
A rhino horn is made up of Keratin and hence incapable of regeneration.
Female Indian Rhinos dont have horns while African female rhinos have horns.
Indian rhinos have one horn and three toes while African rhinos have two horns and two toes.
Answer choice:
only 1 and 2
only 2 and 4
only 1, 3 and 4
All of them
Q4. Which of the following species are found in the Temperate-Alpine climate of India?
Blue sheep
Tahr
Golden Eagle
Griffon Vulture
Answer choice:
only 1 and 2
only 2 and 4
only 1, 3 and 4
All of them
Q5. Which of the following is a critically endangered species in India?
Himalayan Brown Bear

Kalij Pheasant
Himalayan Griffon Vulture
Golden Eagle
Answer choice:
only 1 and 2
only 2 and 4
only 1, 3 and 4
None of them
Q6. Chagos island Archipelago
is located in Caribbean sea, between Jamaica and Nicaragua.
is a French overseas territory
both A and B
Neither A nor B
Q7. Find incorrect statements
According to Representation of Peoples Act, Any person convicted in any offence, cannot
contest election for six years.
In Lily Thomas vs Union of India (2013), Supreme court raised this limit to seven years for
sitting MPs.
In its latest report, Law commission has recommended raising this limit to eight years.
Answer choices
only 1 and 2
only 2 and 3
only 1 and 3

All of them.
Q8. For every resident enrolled, UID database contains:
16 digit unique number allotted to him
his finger prints
his iris image
his facial image
his blood group
Height, weight and identification marks on body.
Answer choices
1234
2345
234
All except 1 and 6
Q9. IF Supreme court allowed Police to access UID database, it may help in solving:
a crime scene where fingerprints were found
a crime scene where blood, semen, saliva or hairs were found.
both A and B
neither A nor B
Q10. Find correct statements about Registered Foreign Portfolio Investor (RFPI).
This is the new category created by SEBI, to replace erstwhile QFIs
They can invest in corporate bonds but not in government bonds
Both A and B

Neither A nor B
Q11. Which of the following is an example of transaction under Current Account of the
Balance of Payment?
Shares purchased by RFPI
Government bonds purchased by RFPI
Earnings of RFPI on their investments.
None of Above
Q12. Correct statements
If we combine the GSDP of all states, itll be higher than the national GDP.
Instead of 80/20 rule on Gold import, Had RBI implemented 20/80 rule, theoretically, itd
reduce our trade deficit.
Both A and B
Neither A nor B
Q13. Correct statements about CPSE-ETF
Theyre called Exchange traded funds because investment has to be made in Rupees but
dividiends are paid in dollars at the prevailing exchange rate on the given day.
For the trading of CPSE-ETF in domestic market, ICICI is the fund manager and in
American market, Goldman Sach is made the fund manager.
Both A and B
Neither A nor B
Mains answer writing practice
Question

Marks

Is Dehorning a viable solution to stop Rhino poaching in India? Justify

10
your stand.

Word
limit
200

List the salient features of Draft notification on Western Ghats ecologically

5
sensitive areas.
Examine the deficiency in Section 8 of RPA act and list the remedies
10
suggested by Law commission.
Discuss in brief the Registered Foreign Portfolio Investor (RFPI) scheme.
5
Examine the problem Rohingya migrant influx in India and suggest
5
remedies.
Write a note on Sino-India Strategic economic dialogue.
10
List the salient features and benefits of OTBA scheme.
5

100
200
100
100
200
100

Correct answers for the MCQs

D all wrong
D all wrong
D all wrong
D all of them found.
D none of them critically endangered.
D both wrong.
B only 2 and 3 wrong.
C only 234
only A- fingerprints
D both wrong
C only. Money invested= capital, money earned = current.
B only. 20/80 = youve to export 80% of the gold imported so yes itll reduce trade deficit.
D. Both Wrong
Visit Mrunal.org/current for entire Archive weekly current affairs compilations published so far.
Tags: Rajtanil

[USA] Obama reforms NSA after Snowden & hands over ICANN to World
Diplomacy8 months AgoLeave a Comment
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Obamas NSA reforms
Obama handsover over ICANN to world
D1: Obamas NSA reforms
Interview Questions:
What do you know about NSA snoop gate?
How is President Obama planning to fix it?
What do you know about Patriot Act and Freedom Act?
Do you think we too need these type of acts- to fight against anti-national elements and
misuse of social networking media by them?

click to enlarge
Background
falls under
Agency
defense department
NSA: National security agency
FBI: Federal bureau of Investigation Justice department
Independent.
CIA: Central Intelligence agency

What is NSA controversy?

There are two separate controversies here:
215 program
Project PRISM
From the documents leaked by Edward Snowden, it
2001: after 9/11, Patriot Act
appears that NSA-walla made (powerpoint)
enacted.
presentations to facebook, google, AT&T and
other giants.
Under section 215 of this act,
NSA/FBI could order phone
companies such as Verizon and
AT&T to provide call records
(without court order).
They can even store it for five
years.
Later stage, NSA systematically
stored almost all call records on
mass-scale, then to filter out
the sensitive talks between
terror cells.

NSA told these executives, We have powers under

section 215 to intercept not only telephones but
also chats, emails, VoIP, email attachmentseverything- both within USA and even outside
USA! Therefore you must help us.
NSAs logic is = since 2G/3G/Broadband internet
also works via phone lines so we have powers
to moniter it!
Then starts all snooping and scandals. NSA begins
watching over Chinese leaders, Germanys
Angela Markel and so on.

Under the Patriot Act, NSA/FBI doesnt need to prove any terrorist connection, to being
the recording.
They only need to show that information is relevant and further investigation is necessary.
Hence the provisions of Patriot Act were misused by NSA for bulk collection of all call
records- both within USA and outside USA.
Obamas reforms:
After much furore against NSA, both at domestic and international level, President Obama
decided to clean up the mess.
He decided to stop this practice of systematically storing Americans telephone data. (under
Section 215 of the Patriot Act)
NSA will not record all telephones BUT itll require telephone companies to keep such
metadata.

And Intelligence agencies would then have to get court approval to access specific records
(meaning, Americans are still being monitored!)
Limitations of Obama reform
Obama is firing from the shoulder of Congress.
He wants Congress to amend Patriot Act in such way that
NSA cannot bulk collect data
but phone companies will still have to record such data
and later NSA can access it with Court permission.
Thats all.
But Patriot Act gives draconian powers to Intel agencies, section 215 is mere a tip of an
iceberg.
For example, Section 315 empowers CIA to bulk collect records of international money
transfers from any private company like Western Union. Other provisions to intercept
(postal) mails and so on.
Thus, as long as the fundamental premise of Patriot Act remains the same (that Government
doesnt need to prove any connection to a terrorist).. Until then, powers will be
misused, and mass collection of private data will continue.
By the way,
Difference: Patriot Act vs Freedom Act
PATRIOT ACT
FREEDOM ACT
After 9/11 attack on World Trade after NSA snoopgate, 215 program, project prism,
Centre.
Snowden leaks (=all thanks to misuse of Patriot act)
passed in 2001
This bill was introduced in 2013. Yet to be passed.
Aims to give superpowers to US Aims to curtail those superpowers given under Patriot
agencies to fight against terrorism.
Act.
This is a new bill by Republican party. Although

democrats also support it because of angry junta.

President Obama will sign (If the bill is passed in both
President Bush signed it
houses of US Congress.)

D2: Obama hands over ICANN to world

What is ICANN?
Internet Corporation for Assigned Names and Numbers. HQ: near Los Angeles.
ICANN is a non-profit corporation, manages internet protocol (IP) numbers and Domain
name system (DNS).
Example: Yahoo.com (domain name) and 67.195.160.76 (IP address).
Domain name service (DNS) provides translation between that domain name vs IP addresses.
so aam-juntaa doesnt need to mugup the list of IP address for any website.
US control over ICANN:
ICANN works under contract of US dept. of commerce.
Mar 2014: Commerce department decide itd not renew the contract. (Expires in Sep15). But
instead, they asked ICANN to design new plan to run this system, with globalparticipation of stakeholders across the world.
Why is US giving up control over ICANN:
Now USA thinks that Internet should run under global internet governance (!!) and defend
the right to free speech.
However, its decision came after wide opposition by countries against US snooping/NSASnowden controversy. Great opposition by Brazil. Germany went on to declare separate
European internet.
Impact on World
The impact of this decision depends upon the how and what alternative mechanism would be
conceived by the international leaders.
China and Russia want to have internet under auspice of international organisation like UN
or ITU, through which it can be regulated as well as constrained.
Indias stand?
India welcomed US decision.

India wants democratisation of internet with freedom of expression. (and measures to stop its
misuse e.g. hate speech.)
India fears that US, Russia and China together may form an alternative mechanism that
fulfils their own interest- something akin to UNSC/veto power.
India favours internet governance under a multi-lateral UN body, whose stake-holders are not
from government but from civil society, academia and businesses.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR)
for Mains GS2 paper of UPSC Civil service Exam.
Tags: IR-Modi, Rajtanil
[Fed Tapering:Part1 of 2] Meaning of Fed Tapering, its Negative Impact on Indian
Economy, Worst case scenarios, Balance of Payment Crisis, explained
Economy8 months Ago70 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
What is Fed tapering
Why is it called Fed Tapering?
How can Fed Tapering affect India?
Worst case scenario [WCS] by Fed Tapering
WCS1: Hot money gone / Flight of Capital
WCS2: Weaker Rupee= bigger CAD + bigger inflation
WCS3: Exports may not increase
Dushmani 4DEVYANI= less EXPORTs
Special 301 report & Priority status= less EXPORTs
BoP crisis: How can that happen?

Can Fed Tapering really cause BoP crisis?

Prologue
you already know about Quantitative easing and its impact on Indian economy. Click me. So
far we know that:
in this article, well learn the basics of Fed tapering and its (possible) negative impacts on
Indian Economy.
in the next article= Steps taken by RBI +Government to immunize Indian economy against
the negative impacts of Fed Tapering (currency swap agreements etc.) click me
What is Fed tapering

In the first article, we saw that:

Subprime crisis:
Investors money stuck in mortgage backed securities and other toxic assets.
You may visualize this as a Draught of dollars.
Quantitative Easing

American RBI (US Feds) launched a program to buy toxic assets and government securities
from market.
Result? Dollar supply increased. (Because central bank is buying stuff from someone and
paying them in dollars.)
You may visualize this as American RBI opened all gates of the dam to send maximum
quantity of water (dollars) to American farmers. Although lot of that water- went to
Chinese and Indian farmers as well!
QE was carried out in three phases. Finally in Dec 2012, Chairman Ben Bernanke
announced that hell stop this water-supply when EITHER unemployment rate is <6.5%
OR inflation is >2.5%. Because each condition implies that American farmers are
booming, hence no need to give them lot of irrigation water (dollars) under Rajiv Gandhi
Sinchaai yojana Quantitative Easing.
Dec 2013: Finally Chairman Ben Bernanke sees American farms are booming, there is no
need to release lot of water from dam (dollar supply). [in reality unemployment rate
became lower than 6.5%]
So, he starts closing dam-gates one after another. Result? water supply (dollar) reduced. This
is fed tapering. Observe
Time
Bond Buying Program (Billion USD)
Dec 2013 85
Jan 2014 75
Feb 2014 65
March 2014 55
At this rate, canal doors should completely shut down @October 2014. (Because now the new
Chairman Jenet Yellen is reducing the water supply (dollars) by 10 billion USD per month.)
Why is it called Fed Tapering?

In above graph, observe that the Width of canal / graph is decreasing constantly. (in other
words, Dollar supply is decreasing).
Tapering is a mechanical term, to describe such constant decrease in width.
And since this is being done by US Federal Reserve, so we call it Fed Tapering.
Formal definition: Fed tapering is the gradual reduction in the bond buying program of the
US Federal Reserves.
How can Fed Tapering affect India?
From Mexican drugloards to Hongkong smugglers to Russian arms dealers to Italian Mafias
to Indian Bookies n Match fixers- everyone uses dollars. So any increase OR decrease in
dollar supply affects all economies.
In last article, we saw the effect of Quantitative Easing (=increased dollar supply) on Indian
Economy.
Let me summarize that in a table:
Indian point of Dollar
view
Supply

FDI-FII ExchangeRate

Export

Rs.
Strong
Quant. Easing

HIGH

Increase

becomes

09=50

Down
due
to
Subprime
Greece/Eurozone crisis.

10=44
Since QE = increase dollar supply and Fed tapering= decrease in dollar supply, so by common
sense, every effect should become reverse, right?
Indian point Dollar
of view
Supply

FDI-FII ExchangeRate

Export

Rs. Becomes Strong

Quant.
Easing

HIGH

Increase

2009: $1=50 rupees.

Down
due
toSubprime
Greece/Eurozone crisis.

2010: $1=44 rupees.

Rs. Becomes Weak
March13: $1=55
Fed Tapering Medium

Decrease

Not as high as expected. (more

May 13(rumor of Fed given in later paragraphs)
tapering starts)
Sep 13: $1=66 Rs.

Lets not waste more time in ball by ball commentary and jump directly to:
Worst case scenario [WCS] by Fed Tapering
Every once in a while, Rajan and Chindu make press statements that Indian economy is
strong enough to survive the negative effects of Fed tapering.
Meaning, atleast one expert in the whole world -believes that Indian economy is bogus and
well be thoroughly devastated by Fed Tapering. (otherwise Rajan/Chindu did not have to
keep giving such explanations to media.)
So lets check the possible worst case scenarios. How can Fed tapering hurt Indian economy?
WCS1: Hot money gone / Flight of Capital
FIIs takeout their money from India to reinvest in USA (Because Fed tapering implies that
US economy is recovering. So, American investors may want to re-invest in USA.)
Result?
Sharemarket may go down (may even crash- if there is largescale exit of FIIs)=> desi
investors money lost.
Rupee will weaken further. How?
Suppose an American FII (say Morgan Stanley) invested in Reliance infra.shares. But now he
wants to exit.
Morgan sells those shares= get gets paid in rupees
But he wants to re-invest money in USA = he needs dollars. Not rupees. Therefore, hell sell
those rupees to get dollars (onion).
Supply of onion Decreased because of fed tapering. (recall those dam gates are being closed
(dollars)
one by one)
Demand of onion
Increased because FII is exiting from Indian market.
(dollars)
Onion (dollar) gets more expensive. $1=65=>$1=70.. In other words,
Result?
dollar strengthens and rupee weakens.
WCS2: Weaker Rupee= bigger CAD + bigger inflation

FII gone = Rupee weakens

While weak rupee = good news for Exporters. But bad news for importers.
Weaker rupee = weve to pay more amount of rupees, to get same amount of crude oil =
Current Account deficit (CAD) gets Higher. Rupee weakens further.
As crude oil gets more expensive =petrol diesel gets more expensive= transport charges
increase= milk, veggies everything gets more expensive. (Including raw material.)
Raw material gets expensive= input cost of exporters increased = they cannot fully take
advantage of the new demand created by USA customers/US importers.
WCS3: Exports may not increase
Fed tapering = US feds has started decreasing water supply (dollar) from their canal (Bondbuying program). This implies that USA economy is recovering. So, If US economy is
recovering = American juntaa will buy more = Indian exporters will see more demand. (This is
the positive thinking assumption.) but there are two errors in this positive thinking.
Weak rupee = expensive crude oil =Cost of raw material increases. Hence our export prices
may not get that competitive yet, (compared to China, Thailand etc.)
Dushmani 4 DEVYANI (Explained below)
Dushmani 4DEVYANI= less EXPORTs
American MNCs love India only as long as we are their call center guys and allow them to
open malls and e-commerce sites in India.
But as soon as our companies compete in their hometurf @USA, these American MNCs will
use every trick in the book to prevent our entry.
Indian government mishandled Devyani case- annoyed the Obama administration, creating
some bitterness in relations.
Now, American business lobbyists are using this negative-sentiment to get American
regulatory bodies to teach us a lesson and get tit-for-tat. Observe:
US
Lesson taught to Indians during Feb 2014
body
USFAA Federal Aviation administration. In Feb 2014, They reduced Indias airline safety

ratings from level I to level II.

When Indian flights go to USA, their officers will do more safety checking = more
time will be wasted, inconvenience to Desi passengers.
Jet airways share prices fell down.
Domino effect: Singapores aviation authority also started inspecting Indian
aircrafts.
The aviation regulators of EU, Japan, UAE will also reduce our rating.
Consequences: Indian aviation will not bring *that much* dollars as expected.
Theyve Have cancelled licenses of Ranbaxys Punjab and Gujarat factories.Feb 2014:
USFDA commissioner came to India to inspect our pharma companies. USFDAs
USFDA
activism = hurts our pharma companies, negative publicity = less export orders (From
US customers, as well as EU, Japan- everwhere.)= less export = higher CAD.
United States Trade Representative. They lodged complaint against India, for giving
solar subsidies to desi companies. (Since Indian government gives subsides to local
USTR companies under national solar mission program= American solar systems
automatically become expensive in India= cannot compete. Thus India is violating the
non-tariff barriers principle of WTO.
USITC Given below
US International Trade Commission (USITC)
It is a quasi-judicial body.
US government uses their report to decide trade policy.
Hence, if USITC writes negative report about India, then well suffer indirectly in future (if
Obama imposes tariff and non-tariff barriers on Indian goods and services).
At present USITC is conducting a hearing about How Indian trade policies affect US jobs.
Special 301 report & Priority status= less EXPORTs
United States Trade Representative (USTR) writes this report.
Deals with IPR (intellectual property rights) related matters.
US government also uses this report to decide future trade policy.

Experts believe, India will also get negative review in this 301 report. Because Indian
authorities have hurt the IP-interests of Pharma MNCs. For example
Novartis
Bayers
pharma

SC rejected patent claim over their blood cancer drug (Glivec)

Indian Patent office allowed NATCO to product the same blood cancer drug
(NEXAVAR).

If we get negative review in Special 301 report = USTR can classify India as Priority
foreign country
Priority tag sounds VIP right? Nope infact it is bad news.
Because USTR has powers to penalize priority countries e.g they can to impose higher
duty/taxes and quota restrictions on Indian exports to USA. (and WTO may not help
India in this case.)
Since USA accounts for ~12% Indian exports. So imagine the negative consequences on
Balance of Trade (Because export will decline).
Ofcourse, one can argue that Indian drugs are bad quality or that Indian IPR/Patent law sucks.
Therefore, USAs actions are justified. But we are the same country since last three years- yet
until now American regulatory bodies did not take any action. BUT ONLY after Devyani case
and within just one month (February 2014) , they suddenly start all this regulatory activism=>
something fishy, revenge mindset, will hurt Indian exporters.
BoP crisis: how can that happen?
In the worst-of-the-worst-case scenario, Fed tapering may cause Balance of Payment (BoP) crisis
in India. How?
First lets understand some background theory: when and how can BoP crisis happen?
Balance of Payment is a systematic record of all economic transactions between residents
and non-residents of a country.
BoP is divided into two parts. Current vs Capital. (and incoming vs outgoing money in
each of them). click on following chart.

In each of them, further weve incoming money (credit) and outgoing money (Debit).
For the sake of understanding, lets observe a BoP data from 2012-13 (USD million dollars).
[Table] BoP Current Account [2012-13]
Current Account, Million dollars
Credit + Debit - Net
300000 500000 -200000
Visible Goods
services
150000 80000 +70000
Invisible Income (Profit, Interest, Dividend) 10000 30000 -20000
Transfers (Remittance)
68000 4000 +64000
Balance of Current Account
528000 614000 -88,000
In other words, we had Current Account deficit of 88 billion $ in 2012-13.
[Table] BoP: Capital account
capital account
Credit + Debit - Net
FDI
215000 170000 45000
investment
FII
175000 150000 25000
150000 120000 30000
Borrowing Government +private
Bank Capital Non-resident bank accounts 83000 67000 16000
+89300
Total Capital acct.
In otherwords, we had Current account surplus of ~90 billion $ in 2012-13. Now lets do total

Million USD
2012-13
-88000
Current
+89300
Capital
Error Omission +2689
+4000 (Approx.)
Overall
What happens to this overall surplus 4 billion USD? Three things can happen
Then +4 billion USD = more supply of onions (dollarS) in the Desi
Forex market. This will change in rupee-dollar exchange rate, because
Do nothing.
of laws of supply n demand.
Give them to IMF Balance of payment will become zero.
RBI should put
them in forex Same as above.
reserve.
We took the third option. Observe.
Million USD
2012-13
-88000
A.Current account
89300
B.Capital account
2689
C.Error Omission
+4000 (Approx.)
Overall (from A+B+C)
Overall surplus sent to RBIs forex reserve -4000
0
Balance of Payment
Meaning, as long as Capital account has more money than Current account, well have surplus.
But what happens IF we dont have surplus (i.e. capital account has less money than current
account)?
It happened in 1991s BoP crisis. Observe the data
1991 (Apr-Sep) Million $$
-6634
Current
+4808
Capital
Overall Balance -1826

In above table, We dont have any surplus! See we had deficit of ~2 billion USD. (=pothole
is created).
IF we want to get final Balance of payment ZERO then someone (Rajan, Mohan, Chindu,
Rajesh Khanna or Shakti Kapoor) must pour in +2 billion US dollars to fillup this
pothole.
But in the 1991, RBI did not have sufficient forex reserve to fillup this pothole with dollars.
(RBI had barely ~730 million USD, while pothole was ~2 billion).
If this pothole is not filled up, then what will happen?
Extreme shortage of onions (dollars) in Indian forex market. => price of 1 onion(dollar) will
go as high as 500 Rupees or even more!
Then, We wont have dollars to pay for our crude oil imports= economy collapses.
This is called Balance of Payment (BoP) crisis. Solution? We had to pledge ~65 tonnes of gold
to IMF to borrow ~2.3 billion USD. That money was used to fillup the BoP pothole. We also
initiated LPG reforms, to ensure that in future we have sufficient capital surplus so BoP crisis
doesnt happen again. Enough flashback of 91, Back to original moving:
Can Fed Tapering *REALLY* cause BoP crisis?
There are three pre-conditions for BoP crisis to happen:
Huge current account deficit. (i.e. lot money outgoing in crude oil / gold / xyz imports while
exports dont bring enough dollars)
Capital account surplus is not big enough to fill that Current Account deficit. (i.e. less money
coming via FDI, FII, ECB, NRI-bank deposits.)
RBI doesnt have enough forex reserve to fill up the pothole created by #2 MINUS #1.
Preconditions
Crisis?

4BoP

#1:
Huge
current
account deficit

Worst case scenario under Fed Tapering

Precondition
met?

Dushmani 4Devyani angle, + weak rupee=input

cost high. So export may not bring that much
Yes, definitely
dollar.
Outgoing dollars high because of crude oil + gold

imports

#2: Capital inflow not

big enough.

= CAD will be huge.

Fed tapering= dollar supply decreased = less FII
than earlier era (under Quantitative easing era)
Yes, may be
FII may pullout existing money from Indian
market, to re-invest in USA or elsewhere.
Not correct. RBI has sufficient backup
RBIs own Forex reserve: ~300 billion USD

#3: RBI doesnt have

forex reserve.

BRICS bank backup: 100 billion

Hell NO!

Japan Currency swap backup: 50 billion

= total atleast 450 billion USD backup. (more details
after few paras.)
Meaning,
Fed Tapering unlikely to cause BoP Crisis v2.0 in India
because THIRD pre-condition is not met. (And thats because RBI DOES have large forex
reserve + backup to fillup the pothole.)
Nonetheless, prevention is better than cure. In the next article, well see the steps taken by RBI
+Government ot immunize Indian economy against the negative impact of Fed Tapering.
Courtesy: Mr.Shivaram G. for inputs.
Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.
Tags: shivaram, World-Economy
Fed Tapering:Part2 of 2] Measures to immunize Indian Economy against negative impacts
of Fed Tapering, Currency Swap, Dollar Swap, FCNR swap, Brics bank explained
Economy8 months Ago37 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi

Prologue
Desi Vaccine against Fed Tapering?
Volatility in Forex market: Why should Rajan intervene?
[More onions 1] BRICS bank
[More onions 2] Currency Swap agreement with Japan
[More onions 3] Dollar swap for Oil companies
[More onions 4] FCNR swap
Summary
Mock Questions
Prologue
So far, we learned
What is Quantitative Easing click me
What is fed tapering? What will be its (negative) consequences on Indian economy? click me
Now third important question (for GS2): what has RBI (and Government) done to immunize
Indian economy against the negative impacts of Fed tapering.
Desi Vaccine against Fed Tapering?
Fed Taperings worst case negative outcome = BoP crisis. BoP crisis needs three pre-conditions.
Hence RBI and Government must to stop those pre-conditions from happening.
BoP
Crisis
How to stop?
precondition
RBI helped oil companies to arrange dollars easily. (dollar swap facility)
1.Huge CAD
2.Low
surplus

Capital

Govt. took some initiatives / subsidies / schemes to boost exports. (not

going into details here, or article will run 5 miles long)
Govt: relaxed FDI norms, changed environment minister to quickly give
clearance to POSCO etc.; set up Project monitoring group in PMO to

hasten file clearance. (all these done to boost investors confidence so

more FDI, FII can come, despite fed tapering)
RBI reformed FCNR-accounts, so NRIs can earn more interest from
their (dollar) deposits in desi banks.
3.Backup against
Explained below.
BoP/volatility
Mismatch between Current account vs capital account, creates two negative outcomes
In every case: Rupee weakens because onion (dollar) supply gets low in the market. (in
other words volatility in Forex market.)
in Worst case: BoP crisis.
Volatility in Forex market: Why should Rajan intervene?
There are two types of exchange rate regimes
FIXED EXCHANGE RATE REGIME
FLOATING (OR FLEXIBLE)
RBI fixes the exchange rate say $1=50 Rs. If you cant
RBI doesnt fix the exchange rates. It
get dollars at that price, you can walk in Rajans cabin,
lets the market forces of supplydeposit fifty rupees and get one dollar from his forexdemand to decide the exchange rate.
reserve.
Discontinued after 1992-93, because RBI did not have
enough Forex reserve to fullfill its commitment. (thanks Started from 1993.
to BoP crisis)

But free market mechanisms have their limitation. Sometimes there is extreme volatility
because of speculation or external events. Say 1$=50 Rs., tomorrow 1$=60 Rs., next day
its $1=70 rupees. Such volatility =bad for business planning, importers/exporters cannot
make long term projections.
Therefore, in case of extreme volatility, RBI does intervene. For example,
May-Sep 2013: Rumors of Fed tapering => large outflow of FII => rupee was weakeningalmost near 69-70 level.
At that time, Rajan started selling onions (dollars) from his own his own godown (forex
reserve storage)=> onion (dollar) supply increased , prices fell down and rupee went back
to 63-65 range.

MEANING, IF Rajan wants to immunize Indian economy against the bad effects of FED
TAPERING (=Exchange rate volatility and BoP crisis), then
He must build large stock of onions (dollars) in his godown (forex reserve). AND OR
He must make deals with others, who will supply him onions (dollars) in case of emergency
(e.g. IMF, BRICS, Japan etc.)
To accomplish ^this, following big steps taken in recent times.

[More onions 1] BRICS bank

March 2013: BRICS leaders decided to setup set up a Development Bank.
Benefit:
funding infrastructure projects in member nations.
Member nation can get funding from it, in case of financial crisis/BoP crisis. For this
purpose, BRICS bank will have a separate emergency-fund of 100 billion USD.
Ok but where did these 100 billion dollar came from?

41
China
18
Russia
18
India
18
Brazil
South Africa 5
100
total Bn
Limitation: will start operating from 2015.

[More onions 2] Currency Swap agreement with Japan

Currency swap agreement are signed between RBI and Bank of Japan.
Benefit: in case of emergency, RBI can get dollars from Japan and vice versa. How?
Crisis in India
Crisis in Japan
Rajan sends rupee suitcases to Japan, they send Bank of Japan will sent Yen suitcases to India,
back dollar suitcases (@reasonable price). Upto Rajan will send them dollar suitcases in return.
50 billion dollars.
(upto 50 billion dollars.)
In short, Currency swap= you scratch my back with dollars, Ill scratch yours (incase of BoP
crisis or Volatility in exchange rates).
It is not a new thing- we already have this type of agreement with Japan since a long time.
BUT, given the fear of Fed Tapering, we increased the amount of this backup plan.
Upto sept. 2013 15 billion$ currency swap agreement.
Sep13
Increased it to 50 billion$ (because rupee was moving towards 65-70 range.)

Additionally,
Weve Currency swap agreement with Bhutan ($ 100 million).
China also interested in currency swap agreement with India, but formal-deal yet to be signed
China already has currency swap agreement with S.Korea, HongKong, Malayasia, Indonesia,
Singapore, Iceland, Newzeland and even chillar countries like Belarus, Uzbekistan and
Mongolia.
India should also explore the same find more gangmembers to join Desi Currency swap
club.
[More onions 3] Dollar swap for Oil companies
IOC, HPCL and BPCL: these three oil companies alone need ~8.5 billion US dollars every
month to import crude oil.
August 2013: 1$= ~69 Rs. (Given the fears of fed tapering).
So, RBI announced dollar swap facility for those oil companies.
Mechanism is similar to currency swap:
Oil companies give rupees to RBI and get dollars in return.
After few months, theyll have to return those dollars. (i.e. Oil company will have to buy
fresh dollars from some xyz forex trader, give it to RBI and get their rupee suitcases
back).
In April 2014: theyll have to return ~12 billion USD to RBI.
How does dollar swap help?
Well, its curbs volatility in the market. Recall the time when (Ex) Delhi CM Sheila Dixit used to
open those outlets to sell onions and daals during heavy price rise. Only difference- you did not
need to return onions back to Sheila at later date. but Oil cos will need to return onions (dollars)
to Rajan at later date.
[More onions 4] FCNR swap

FCNR = foreign currency non-resident (FCNR) deposits. In simplest words- NRI depositing
dollars into Indian banks. This is considered one type incoming capital. (FII, FDI, External
commercial borrowing (ECB) are some other examples of incoming capital).
Sep 2013: Rajan FCNR swap scheme. Features
Desi banks sell their dollars (i.e. those NRI bank despoits) to RBI and get rupees in return.
After three years, they can go back, deposit rupees and get those dollars back (with priciing
mechanism in such way that bank ends up getting 3.5% profit on its dollar deposit to
RBI.)
How does it help?
Desi Banks gave dollars to RBI = RBIs forex reserve augmented. (by atleast 35 billion
USD)
And during BoP crisis or exchange rate volatility, Rajan can use those bucket full of dollars
to douse the fire.
More points can added on what steps were taken to immunize India economy against fed
tapering. But at max, the aukaat of this topic is two hundred words in GS2 / GS3. For that, I
think weve gathered sufficient points. Economy is not about ball by ball commentary or Ph.D
Summary
Fed tapering is the gradual reduction in the bond purchase program of US Federal Reserve. This
will reduce the dollar supply in the system, and hence will have consequences for every
economy, including Indian.
The possible negative impacts on Indian Economy:
Flight of Capital of FII, stock market crash, erosion of Indian investors money.
High CAD, Weakening of rupee, and subsequent fuel inflation
Exports may not pickup, despite weak rupee and strong consumer demand in USA.
Steps taken to Immunize Indian economy against Fed Tapering:
RBI: dollar swap for OMC, Currency Swap with bank of Japan, FCRN reforms.

Govt: fast tracking of projects, environment clearance, FDI reforms to boost the confidence
of investors and keep the flow of foreign capital steady. Additionally, India has
contributed in settingup BRICS bank with a contingency fund of $100 billions.
Overall, our forex reserves are large enough and fundamentals of economy are strong. Hence the
fears about negative consequences of Fed tapering are unfounded.
+Election => more money incoming, may be more investment after new (less bogus)
government forms.
Mock Questions
Q1. Quantitative Easing was a special method adopted by US Federal reserve to
Decrease inflation in US Economy
Decrease fiscal deficit of US Administration
Strengthen US Dollar against major international currencies
None of Above
Q2. Under Fed Tapering program, US Federal reserve will
Sell the Mortgage backed securities and other toxic assets that it had purchased during the
Quantitative Easing round.
Sell the Treasury bond and other gilt-edged securities that it had purchased during
Quantitative Easing round.
Both A and B
Neither A nor B
Q3. Correct statements
Quantitative easing involves purchase of assets by US Feds.
Fed tapering involves sell of assets by US Feds.
Fed tapering involves purchase of assets by US Feds.
Fed Tapering involves reduction in the purchase of assets by US feds.

Answer choices
only 1 and 2
only 2 and 3
only 3 and 4
only 1 and 4
Q4. HAD India started quantitative easing program instead of USA. Then what could have
happened?
Rupee would have strengthened against Dollar
Indian exporters would have benefitted.
Rupee would have weakened against Rupee.
Indian importers would have benefitted.
Answer choices
only 1 and 2
only 2 and 3
only 3 and 4
only 1 and 4
Q5. HAD India started Fed Tapering program instead of USA. Then what could have
happened?
Rupee would have strengthened against Dollar
Indian exporters would have benefitted.
Rupee would have weakened against Rupee.
American exporters would have benefitted.
Answer choices

only 1 and 2
only 2 and 3
only 3 and 4
only 1 and 4
Q6. Which of the following can be considered an example of Quantitative Easing in India?
IF RBI decreases repo rate for commercial banks.
IF RBI raises repo rate for commercial banks.
IF RBI decreases the PSL requirement of commercial banks.
IF RBI purchases NPA assets of commercial banks.
Q7. Correct difference between Quantitative Easing and Fed tapering:
Former strengthens domestic currency against foreign currencies while latter weakens
domestic currency against foreign currencies
Former weakens domestic currency against foreign currencies while latter strengthens
domestic currency against foreign currencies
Former creates disinflation while latter creates inflation.
None of Above
Q8. If there is only ONE country in the whole world, and its central bank initiates
quantitative easing, what will be the consequence?
Purchasing power of that currency will decline
Purchasing power of that currency will increase
Economy will move towards hyperinflation
Economy will move towards disinflation
Answer choices

only 1
only 1 and 3
only 4
only 2 and 4
Q9. Under the recently concluded Currency Swap Agreement between Japan and India.
Bank of Japan will accept rupees and give dollars to the Reserve Bank of India (RBI)
JICA will give dollars to Indian infrastructure companies for import of capital goods.
Indias central bank will take yen and send rupees to the Bank of Japan.
This swap arrangement will become operative if foreign exchange reserves deplete in either
country.
Answer choice
Only 1 and 2
Only 2 and 3
Only 1 and 4
Only 3 and 4
Mains / Descriptive
The fears about negative impact of Fed tapering on Indian economy, are unfounded. Do
you agree? Justify your stand (10m | 200 words)
Differentiate between Quantitative easing and Fed Tapering. Do you agree that both were
harmful to Indian Economy? Justify your stand. (10m | 200 words.)
Discuss Quantitative easing and its impact on Indian Economy. 5m 100 words
Discuss Fed Tapering and its impact on Indian Economy. 5m 100 words
Interview

With respect to QE-FT program, Raghuram Rajan said US should worry about the effects of
its policies on the rest of the world. We would like to live in a world where countries take
into account the effect of their policies on other countries and do what is right, rather
than what is just right given the circumstances of their own country. So, if you were the
Chairman of US Federal reserve, would you do the same things that Ben Bernanke and
Jenet Yellan have done, or would do you anything different?
Apart from the measures that are already taken- what else should be done to immunize Indian
economy against fed tapering and any such thing in future?
Answer
D None
D neither.
D 1 and 4
B 2 and 3, RBI doing QE = rupee supply increased=>rupee weakens=>exporters benefit.
D. 1 and 4 RBI doing FT = rupee supply decrease = rupee strengthens, dollar weakens= good
for American exporters.
D. purchase of NPA assets.
B. QE = weakens, FT = strengthens. (supply-demand.)
B. 1 and 3. QE = large money supply in the system= purchasing power declines,
hyperinflation.
C. 1 and 4.
Courtesy: Mr.Shivaram G. for inputs.
Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.
Tags: shivaram, World-Economy
Security] Need for Hijacking Policy, MH-370, Infrasound, Transponder
polity8 months Ago105 Comments

For Indian Polity, I recommend

M.Laxmikanth: Indian Polity :
#1: MH 370 & Anti-hijacking Policy in India
#2: Tourist visa on arrival
#3: energy coop with Sudan + USA
PIB Misc.
Mock MCQ Questions
#1: MH 370 & Anti-hijacking Policy in India
8th March 2014: A Passenger flight of Malaysian Airlines from Kuala Lumpur to Beijing
disappeared.
you can read all conspiracy theories on Dailymail click me
Lets focus on two MCQ worthy topics
Transponder
Transponder = device on airplane. It reports an aircrafts altitude, speed, direction etc. to
ground controllers and nearby aircraft.
also, Helps radar to detect the plane.
When plane is on ground, the staff can turn it off. (to prevent wrong signal confusions.)
But MH-370s transponder was turned off whil it was in air. => someone had hijacked it and
perhaps wanted to use it as plane-missile like in 9/11 attack.
Infrasound
Comprehensive Nuclear-Test-Ban Treaty Organisation(CTBTO) = HQ Vienna.
It monitors infrasounds to detect nuclear explosions.
If a large plane had crashed, their infrasonic sensors would have detected it as well.

by the way, Infrasound is produced by both

Natural Sources
volcanoes

Man Made Sources

nuclear bombs

earthquakes

mining operations

meteors

chemicals explosions

storms

aircrafts

auroras

rocket launches

elephants use it for communication.

wind turbines (causes headache)

Infrasound are Low frequency sounds (<20Hz) =travel farther than high frequency sounds =
ideal for long distance communication.
Anyways, India has deployed INS Saryu, INS Kumbhir and INS Kesari + two Dornier aircrafts
to search MH-370 wreckage.

Indias Policy against Hijacking (2005)

(topic becomes important given the MH-370 Development)
Hijacked plane can be shot down, IF there is evidence that
itll be used for 9/11 like attack.
it is carrying weapons of mass destruction.
The decision to shoot down the plane will be taken by panel of PM, Defence minister and a
high ranking IAF officer.
If plane is high-jacked on Indian soil, the security agency can prevent its take off.
NO negotiations with hijackers on their demands.
If at all talks are started- itll be for preventing loss of life or ending the incident.
Hijacking = act of terror. Death penalty for hijackers.
Other than that:
International convention on Anti-Hijacking: Tokyo, Hague, Montreal.
India made Anti-high-jacking act, 1982 too old. New bill made in 2010- but pending.
#2: Tourist visa on arrival
Under Ministry of Home Affairs.
2010
scheme started for five countries
2011
six more added
2014, Feb 180 countries
Why in news? Because PIB says it lead to boost in tourists.
Mechanism for (Tourist) Visa on Arrival
Following applicable from Sep14 for 180 countries:
Foreigner has to apply online (3 days before arriving to India)

When he reaches India, pays 60$ fees, goes through biometric identification and gets the
(Tourist) Visa.
Validity: 30 days, Cannot be renewed. He must leave after that.
But why should India give Visa on Arrival?
Will boost tourism and business
Can help us earn >40 billion USD by 2017
Challenges: women security, bad infrastructure, unhygienic places.
Before 2014

from Sep.2014
Visa on arrival facility available to tourists
from 180 countries. Including
US (Despite Devyani!)

~40 countries eligible for visa on arrival.

China (Despite Dushmani!)

UK
UAE
Bangladesh

Not eligible for Visa on Arrival [security reason]

Pakistan
Sudan
Afghanistan
Iran
Iraq
Nigeria
Somalia

Same continued.

Sri Lanka
Tourists from these countries need to apply for visa
through Indian embassies in their country.
By the way, India is not the first country in the world to have Visa on arrival facility.
Following countries already offer this facility: Japan, Finland, Singapore, Indonesia,
Luxembourg, New Zealand, Cambodia, Vietnam, the Philippines, Laos and Myanmar.
#3: energy coop with Sudan + USA
India USA
Recently meeting held Under PACE-R (Partnership to Advance Clean Energy Research and
development).
More details under my old article click me
India Sudan
India will help Sudan develop renewable energy resources -wind, solar, biomass and small
hydro-plants.
training, resource assessment via our national research institutes + IREDA
Indian Renewable Energy Development Agency (IREDA)
Under ministry of new and renewable energy
It is an non-banking financial institution, to finance renewable energy projects in the country.
Some additional fodder
Despite Sundans close relations with Paki, they shared a cordial reletions with us sinc
freedom.
During WW2, Indian troops sacrificed in liberation of Sudan.
In past India has backed Sudan, when others tried to pass resolution against Sudan.
India have 25% stake in oil field in South Sudan.

PIB Misc.
core banking solution /software of RBI
helps auctioning of government securities (G-Sec)
E-KUBER

was in news- because government decided to re-purchase some

securities (via RBI)
What will happen to money supply when RBI purchases g-sec
from market? money supply increased or decreased? Think
about it!
Office of Registrar General & Census Commissioner = falls
under Ministry of Home Affairs.
recently held workshop

CIVIL REGISTRATION

Issue: at present ~80% of births and ~65% of deaths get officially

registered. need to increase this to 100% by 2020
Need for web based portal for uniform civil registration
throughout India.
exhibition jointly organized by aviation ministry + FICCI

INDIA AVIATION-2014

at Hyderabad
theme: Enhancing air connectivity

BOOK: SUNRISE AND

by Hindi poet Dr. Ravindranath Shrivastva. (Padmashree)
SLUMS
national Archives of India falls under culture ministry. Celebrated 124th bday in March 2014
Mock MCQ Questions
Q1. Correct statement about Tourist visa on arrival scheme?
This scheme is launched by Ministry of overseas affairs in 2014.
India is the first country in the world to have Visa on arrival facility.
Tourist from every country except Pakistan, Afghanistan and Somalia are eligible f or this
scheme.

Answer choices
only 1 and 2
only 2 and 3
only 1 and 3
None of them
Q2. Correct statement
The matters related to registration of birth and deaths fall under Ministry of Health and
Family welfare.
12th Five year plan wants to achieve universal registration of births and deaths by the end of
2017.
Both A and B
Neither A nor B
Q3. Correct statements about Infrasounds
Infrasound are inaudible to humans to audible to elephants.
Auroras and meteors can produce infrasounds.
They are ideal for short distance communication because they can travel a path than high
frequency sounds.
Answer choices
only 1 and 2
only 2 and 3
only 1 and 3
All of them
Q4. What is the utility of a Transponder device on an airplane?

It is a technical instrument inside blackbox that prevents data from being destroyed when
plane crashes.
Pilot uses this device to turn on the Auto-Pilot mode while the aircraft is at high altitude.
It reports an aircrafts altitude, speed, direction to ground controllers and nearby aircrafts.
None of Above.
Tags: Internal-Security, Rajtanil
[Economy] Quantitative Easing: Meaning, phases, Impacts on Indian Economy, RupeeDollar Exchange rate, Pros & Cons, Positive & Negative aspects explained
Economy8 months Ago119 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
Characters in QE movie
[Act I] Subprime crisis: toxic assets (2007)
[Act II] Quantitative Easing (2008)
Why cant LOW repo rate solve problem?
Quantitative Easing: Electronic Money OUT OF THIN AIR
Concept#1: QE = NOT OMO
Concept #2: QE = NOT Monetized Debt
[PHASE] Quantitative Easing Phase 1
QE PH1: Impact on FDI / FII
QE PH1: Impact on Exchange Rates
[PHASE] Quantitative Easing Phase 2

[PHASE] Quantitative Easing Phase 3

When will Ben stop QE?
Summary of Quantitative Easing
QE: Good or Bad? (American point of view)
QE: Good or Bad? (Indian point of view)
Prologue
Next article is Fed tapering and its impact on Indian Economy.
But to learn fed tapering, first we need to understand Quantitative easing (QE) AND its
impact on Indian economy.
Topic itself doesnt require more than 15-20 minutes to understand. IF your basics are clear.
So make sure youve read previous articles:
RBI monetary policy: quantitative and qualitative tools. Click me
Debt vs equity click me
Securitization & Shadow banks click me
Characters in QE movie
Since this is American story, our routine characters (Mohan/Chindu) wont have big roles in this
script. Let me introduce the main protagonists in QE/FT game:

Ben Bernanke
Leonardo
DiCaprio
Tom Cruise

when Quantitative easing started, He was the boss of American RBI (Chairman
of US Federal reserves.) Right now Fed Chairman= Jenet Yellen.
As such a Hollywood actor. But assume he works in Citigroups retail banking
operations. i.e. serving American middleclass and small businessmen.
As such a Hollywood actor. But assume he also works at Citigroups Investment
operations i.e.

American share market investments

as foreign institutional investment (FII) in India, China and other countries.
[Act I] Subprime crisis: toxic assets (2007)
Subprime crisis = American banks gave home loan to people who did not have aukaat to
repay money. These Borrowers stopped paying installment and the banking system
collapses.
^this is the crudest, simplest explanation. Most of you know this already.
But to understand Quantitative Easing and Fed Tapering, we need a little deeper
understanding of what exactly happened in subprime crisis? Especailly: mortgage based
securities / toxic assets.
He has the aukaat the repay loan
Prime borrower
Sub-prime borrower He doesnt have the aukaat to repay loan.

Initially, American Retail Banker Mr.Leonardo only lends money to prime borrowers. And
for repayment-guarantee, he orders customers to mortgage their property i.e. if I dont
repay loan, you can take away my house.

Thus, Leo has a big pile of mortgage property files say 100 files x 1 lakh dollar worth
property each = $100 lakh.
He gives these files to Tom Cruise, the investment banker.
Tom prints out 10 lakh bonds, worth $10 each, offering say 4% interest rate. Sells them at
American market. We call them mortgaged backed securities (MBS).
Mortgage
backed

Because theyre backedup by those loan-papers. If anything bad happens, Tom

can attach those homes, auction then, and return money to those bond-holders.
Any piece of paper, that promises to pay some money to someone at someday =
is called security.

Securities
Shares, bonds, IPOs, debentures.these are all examples of securities. Places
where theyre bought and sold, we call it securities market.
Apart from MBS, they had collateralized debt obligations (CDO), collateralized loan
obligations (CLO) and so on. What are they? Not important for exam because too old
topic. Just know that, lot of Securities were created, that were backed up by those
mortgaged home.
In USA, (sarkaari) treasury bonds offer interest rate of ~2% Obviously, investors will be
interested in Toms MBS (since it offers 4% return).
Tom Cruise, the Leonardo please get me more loan papers. So, I can printout more MBS
investment banker securities! And our citigroup makes even more profit!
Leonardo,
the
But Im already done giving loans to every prime borrower.
retail banker
Then give loans to people who do not have the aukaat to repay loans
Tom
(Subprime borrowers). If they dont repay, well mortgage property their
property. In short, our gameplan is safe and secure. Nothing to worry.
Leo
Starts giving loan to sub-prime borrowers.
Later, one by one, sub-prime borrowers stop EMI payments.
But, Tom still has to pay 4% interest to those investors for those mortage backed securities
(MBS). So, Tom attaches the houses of loan-defaulters. He tries to auction them, to
recover loan money and pay off those stupid investors.

But since there is such oversupply of mortgaged properties, that real-estate market
collapses. Imagine fifty Titanics full of onion is dumped at @Mumbai port- whatll be the
price then?
Same is the situation in American real-estate sector. Original loan amount was $1 lakh but
right now, noone is ready to pay even $30,000 for the same home.
As a result, even HONEST (prime) borrowers feel cheated. Why should I continue to repay
my loan, IF my house is not even worth 30000 dollars? So, he also stops giving EMI. =>
more default=> more crash @real-estate.
The Fall of MBS
Thus, within overnight, mortgage backed securities (MBS) have become fancy tissue papers.
Because unlike Salman Khan, Tom Cruise cannot keep his commitment to pay interest to
investors.
What do we have now?
Mortgaged homes that dont fetch good prices in auction.
Mortgage backed securities (MBS), collateralized debt obligations (CDO) and other fancy
papers that commend no price in the sharemarket / securities market.
Lets collectively call them TOXIC Assets. (In India, we may have called them NPA, nonperforming assets.)
Consequences on World economy
Due to these toxic assets, lot of investors money stuck. Share market collapses. Businesses
collapse. Less demand => less jobs => less import of goods and services=> Indian,
Chinese every exporter / call center also suffers.
American FIIs pullout their money from Indian, Chinese, European markets to fill up the
losses at home. (Recall, Some Tom Cruise also look after FII operations in India, perhaps
with help of Anil Jhakkas Kapoor.) => even more slowdown in global economy.
This also acts as catalyst in PIGS crisis / Greece Sovereign debt crisis (click me)= even more
slowdown in world economy.
[Act II] Quantitative Easing (2008)

So far
American economy collapsed thanks to subprime crisis.
Banking / financial institutions (like CITIGROUP) have truckload of TOXIC assets. (or
NPA)
Investors money is stuck.
Banks are not giving loans to new customers (fearing more toxic assets and loan-default). So,
whether its prime borrower or sub-prim borrower- no body getting no more money => no
business expansion => no new jobs => no salary=> no demand=> no sales / import.
Why cant LOW repo rate solve problem?
How can American RBI (US Federal reserve) fix this mess caused by Subprime crisis? One
solution will be:
Central Bank should lend (new) money to Retail banks at very cheap interest rate.
Then Retail banks will also start giving cheap loans to customers=> business expansion =>
more jobs => more salary => more demand => people buy more=> economy back on
track.
Indian RBI uses Repo rate for this. [click me for more]
American RBI uses Federal Fund rate for this. [although mechanism bit different but not
really important for exam. So let's not waste time here]
In the 90s, American federal fund rate = used to be in the range of 4-6%. (To crudely put, IF
American banks borrowed money from American RBI (US Feds), then American bank will have
to pay 4-6% much interest rate.)
Ben Barnanake indeed reduced the interest rate- close to 0% but it didnot workout exactly as
planned. Why?

Scene #1: NRI Alok Naths Business woos

(Recall hes the Boss of American RBI /Chairman of US Fed).Ok fellas, Im
Ben Bernanke reducing American federal fund rate to 0.25%. Come on! Take loans from me
and distribute among your clients.
Leo (American Im going to borrows truckload of dollars from American RBI because its
retail Banker) available at throwaway prices! Have to pay just 0.25% interest rate.
NRI Alok Nath I want to open a marriage-bureau. Please give me loan.
Im giving no loans to anyone! Im sick and tired of loan defaults. I want to
Leo
take no more risk.
Lekin Betaa, youve borrowed truckload of cash from American RBI (US
NRI Alok Nath Feds). Whatre you going to do with all that money? uskaa achaar daaloge
kya?
Ill do following things with this dollars I got from American RBI
Ill simply invest part of those dollars in US (Sarkaari) Treasury bonds.
They are considered the safest investment option. They offer ~2%
interest, So my profit is 2-0.25=1.75%. Well something is better than
nothing.

Leo

Ill give part of those dollars to my buddy Tom Cruise, hell invest them in
India, China and other markets as FII. Perhaps hell get ~8% return.
So, our profit is 8-0.25=7.75%. Again something better than nothing.
Invest part of them in gold
Redistribute some of the dollars as dividends among my shareholders. That
way price of citigroup shares go up, and my buddy Tom will again
create a new financial product out of that to make more money!

buy off smaller banks, so I get monopoly in the banking business.

NRI Alok Nath Ok, then Im ready to pay 10% interest. Please give me loan.
Sorry uncle-ji. I dont want to take any risk from any borrower. I already have
Leo
lot of toxic assets on my plate. Please, try at some other bank.
NRI Alok Nath (leaves the office, but not without giving aashirwaad to Leonardo DiCaprio).
Scene#2: how to make banks lend money?
Location: Ben Bernankes cabin at US federal Reserves (=American RBI)

(observing the data of industrial output, employment, GDP everything. )Although Ive
reduced the interest rates, Why is the economy not improving, why is there no business
Ben
expansion? Why are no new jobs created? Aha.Leonardo DiCaprio is the culprit. He is not
passing on my cheap dollars to loan seekers.
(calls up Leo) Man you Stop this nonsense right now, and give loans to those needy
Ben
American folks.
Not gonna happen. Have lot of toxic assets in my account books. If I give loan to anyone,
Leo
and he defaults, my Citi group will collapse completely.
But man, those toxic assets are Tom Cruises problem. If I recall correctly, youMr.Leonardo-Retail banker- you gave loan files to the investment arm of Citibank, so
Ben
Tom must have paid some money to you, right? How come your department has toxic
assets?
You see we are not a simple bank. We are a Financial institution. Some of our organs
under jurisdiction of American RBI, some organs under regulation of American
SEBI, with operations in India, China etc. under jurisdiction of their RBIs and their
SEBIs.
Leo
Its lot more complicated financial jugglery than you can fathom (iss ki topi uss ke sar
pe). But right now we are in mess due to those toxic assets. In short, difficult to
pass loans to customers.
(agitated, but has to find solution quick, before system collapses further)OK Leonardo. How
Ben about I buy the toxic assets Citigroup and all other financial jugglers institutions. Then, will
you give loans to those needy customers? Please?
Leo Fair enough.

Quantitative Easing: Electronic Money OUT OF THIN AIR

So far, Ben agreed to buy off toxic assets of citigroup and other banks. But Ben doesnt want
to waste time printing that much paper currency or coins. He simply types an amount in
his super computer at US feds office. And that much (electronic) dollars are
automatically created in the banking system.
When Leonardo (and other retail bankers) sell their TOXIC ASSETS to Ben, Mr.Ben will
transfer dollar in their account via netbanking.
ok, so, what is happening here? Money supply increased or decreased?
Ans. Increased.
Because Charlie and other retail bankers sold their tomatoes (toxic assets) to Ben. Ben paid
in dollars. So money supply increased (in the sense that now retail Bankers have more
money to lend to customers.)

Does it mean Ben is buying tissue papers in exchange of dollar? (After those MBS/Toxic
assets are not much money right?) Well Ben hopes that once economy recovers, those
mortgaged houses could fetch higher prices in auction, then he can sell MBS to private
investors and recover the money.
This is called quantitative easing
Quantitative Quantity of money increased.
stress / tension of Banks decreased. because American RBI (US feds) took away
Easing
their toxic assets
For MCQ: please keep following concepts in mind
Concept#1: QE = NOT OMO
OPEN
MARKET
QUANTITATIVE EASING (QE)
OPERATION (OMO)
American RBI sells OR buys
government
securities
American RBI buys securities, including those TOXIC assets.
(treasury bonds) from the
market.
If they buy=> money Since theyre only BUYING=> money supply increased. No If
supply increased
no But.
QE Cannot decrease money supply. (Well you have to do a
If they sell=> money separate thing called fed tapering, well see that soon.) For
supply decreased.
moment, know that QE only INCREASES money supply. QE
itself cannot decrease money supply.
Concept #2: QE = NOT Monetized Debt
MONETIZING THE DEBT
QUANT.EASING (QE)
President Obama wants more dollars to
American RBI buying toxic assets from those
settle his sarkaari debt. (fiscal
banks and financial institutions like
deficit, budget deficit whatever.)
Lehman brothers.
He prints treasury bonds=> gives to
American RBI (US Feds)
e.g 100 Billion $ treasury bonds promising

[They also bought treasury bonds from

market, but main focus was to remove
"toxic assets" from system].

2% interest rate for ten years.

Then American RBI (US feds), prints that
much dollar Currency and gives
suitcases to Obama.
This is called Monetizing the debt.
American RBI takes securities from American RBI takes (toxic) securities from
government and creates more money.
those bankers, and creates more money.
Increases the money supply in the system.
same
Anyways, lets move on: Quantitative Easing was done in three phases, starting from 2008.

Click to Enlarge
[PHASE] Quantitative Easing Phase 1
Note: these dates and numbers are not important for exam. Ive listed them only to demonstrate
how events unfolded.

Nov 2008

American RBI (US Feds) starts buying mortgage backed securities (MBS) (= those
TOXIC Assets).

Each month $100 billion worth toxic assets bought. [+some treasury bonds].
Collectively, well call them Securities
Meaning $100 billion new fresh money injected in the system each month.
March
2010

Phase 1 of QE ends. US feds bought total $1.7 trillion dollars worth securities.

Now Ben waits for result. He thinks his plan is TOTALLY AWESOME, those toxic assets
are out of the banking sector, now those retail banks ought to be giving more loans to
Alok Naths => more business expansion =>more jobs=>economy must have bounced
back.
But when Ben analyses the data, hardly anything has improved! Industrial production sucks,
unemployment rates are high, GDP growth is low. Why havent things changed?
because retail bankers (Leonardo), is not quickly processing the loan applications of needy
Americans.
Leo is happy that his own toxic assets are cleared. But he still doesnt want to take risk of
giving loans to people. He continues investing money in treasury bonds, gold, (+Tom
Cruise investing dollars to foreign countries sharemarket as FII).
QE PH1: Impact on FDI / FII
Quantitative Easing => Dollar supply increased in American market.
Ben Bernanke hoped these dollars will be given as loans to American people, so they can
start new business, create more jobs, produce more goods and services..
But lot of these dollars did not reach the hands of common Americans.
#1: FDI inflows increased in emerging economies
Big businesses like Apple, Microsoft, wallmart=> They got cheap loans, but they did not
invest it for business expansion in America.
Because American juntaa did not have the money to buy their products in large amount. So
these MNCs started exploring Asian market for new customers.
They thought lets produce phones, camera, laptop and softwares within Asia rather than in
USA to save transport costs.

So, MNCs used cheap dollar loans for setting new factories / offices in Asian countries.
Result: FDI inflows increased for Asian countries including India, China.
#2: FII inflows increased in emerging economies
MNC type financial institutions (FI) such as Deutsche Securities, Bank of America,
Morgan Stanley, Goldman Sach, JP Morgan Chase, Citizenbank etc.
They reduced investing in American sharemarket (because nobody buying anything,
companies dont make large profit, hardly any dividends. So why bother in American
sharemarket?)
So, these FIIs took Dollars from America and invested in share/bond/equities/IPO in IndiaChina and other emerging economies.
Result FII inflows also increased in the emerging economies.
QE PH1: Impact on Exchange Rates
So far, we know Quantitative easing increased the FDI, FII inflows in emerging market
economies.
what could have happened to exchange rates? Did Rupee strengthen or weaken? Did Dollar
strengthen or weaken?
Ans. Since dollar supply increased (compared to rupee), then Dollar weakens and rupee
strengthen. Observe.
Month
1$=__ rupees 1 Rs.=___ $
Jan 2009
50
0.02
October 2009
46
0.0217
March 2010 (when QE1 ended) 44
0.0227
Meaning
Dollar weakened Rupee strengthened
So what do you see? IS Rupee strengthening or weakening?
Ans. Rupee Strengths, Dollar weakens.
Why? Because if those FDI/FII players want to invest in India, they need to convert their Dollars
into rupees.

Imagine dollars are apples.

Prices of apple vs Rupee are decided by laws of supply and demand.
If few apples=> each apple will sell for 50 rupees.
If more apples=> each apple will sell for 44 rupees. (more the quantity, cheaper the product.)
Same happened with all major currencies in world yen, yuan, euro, pound, rupee they
strengthened while dollar Weakened.
Is it good or bad?
Ans. Depends
If
Dollar
Implications
weakens:
American
Bad because he has to give more dollars to buy same amt of Indian products. []
importer
American
Good, because now American products cheaper (for Indian importers) = more
exporter
demand of American exports.
Indian Exporter Bad
Indian importer Good.
Enough of Phase 1, lets move to
[PHASE] Quantitative Easing Phase 2
Location: Bens cabin @American RBI office (i.e. US Federal reserve)
Ben check data on GDP, loan disbursement, industrial production, inflation, unemployment etc.
Hardly anything has improved.
What has Ben Done What did Leonardo do
I bought off Toxic I used most of those dollars to buy treasury bonds, gold, and foreign
assets (MBS) from Leo investment rather than givingem as loans to needy American people.
Leo (any American retail bank) is still not processing loan applications quickly. Because there
are no prime borrowers- left! Almost everyone is broke / subprime thanks to recession.
Besides, given the FDI, FII outflows from USA, local companies are not getting any capital to
expand business.

Let me fix this. Ill buy off all those treasury bonds from the market. Then
where will Leo (American retail banks) investment their money, huh?
Theyll HAVE TO loan money to needy Americans.[To put this in technical
terms- Ben's move will decrease the bond yields for Leo, making it less
profitable for him to continue in bond game. Leo will then lend money to
needy Americans for better returns.]
November Ben starts buying (long term) US Treasury bonds from market. He plans to buy total
$600 billion dollars worth bonds during QE phase 2.
2010
June 2011 The QE2 phase ends.
Ben

Is money supply increased or decreased?

Increased. Because Ben is buying sarkaari bonds from investors, and giving them dollars as
payment. Thereby increasing money in the system. [What will happen if Ben started
selling treasury bonds? Will money supply increase or decrease? think about it].
anyways, Ben awaits for result. Analyzes the data. There is some improvement but lot needs
to be done. So, later he starts third phase.
Effect of QE2
Again same as last time- FDI, FII inflow increased in emerging economies. Dollar remained
weak compared to foreign currencies.
2010-11
$1=__ Rs.
Nov 2010 44
March 2011 45
June 2011 45.3
You can see rupee almost steady at around 44-45. Meaning dollar kept coming to Indian market
in form of FDI and FII. (Thats why rupee demand was higher, and rupee remained strong.)
[PHASE] Quantitative Easing Phase 3
Ben Bernankes situation is like that of a senior UPSC player stuck in a vicious cycle of
prelim-mains-interview. His best intentions and efforts are not yielding positive results.
Life is in stalemate. Everyone else is winning and making money.
Ben decides to give third attempt with full preparation- he starts buying both toxic assets
(MBS) as well as Treasury bills. [to increase money supply in the market, hope at least
some of the dollars will reach to needy American folks.]

September
2012
December
2012

Ben starts buying $40 billion worth toxic assets (mortgage backed
securities/MBS) each month
Ben also promised hell keep fed fund rate (their repo rate) at 0% till 2015.
Ben starts buying $45 billion worth Treasury Bills each month. (+40 bn worth
MBS)=45+40= total $85 billion dollars injected in the system every month= dollar
supply increased.

Finally someone (most probably an American civil service aspirant) sends facebook message to
Ben:

Dear Sir-ji,
For how long, will you keep throwing more and more money like a defeated gambler?
For how long, will you keep creating more and more (electronic) dollars out of thin air and let
them vanish in India, China and other third world countries?
Man Im sick and tired of mugging up your QE data for stupid competitive exams. Please stop
this nonsense ASAP.
Sincerely,
A concerned American citizen.
Ben finally gains some enlightenment, I cannot go on like this forever! Have to stop QE at some
point.
When will Ben stop QE?
target

Bens thought process

If inflation gets higher than 2.5%, Ill stop QE. Because (moderate) rise in
Inflation 2.5% inflation =juntaa is buying more (hence the demand side inflation)= economy
has recovered. And since economy has recovered, QE should be stopped.
If unemployment get lower than 6.5%, Ill stop QE. Because less
Unemployment
unemployment = definitely there is business expansion = American economy
6.5%
Has recovered. No more need for QE.
Meaning EITHER inflation >2.5% OR unemployment <6.5%, then I stop QE. Ben had
decided these targets in December 2012.
But Ben cannot suddenly stop Quantitative Easing on one fine morning. He has to slowly
reduce it and then stop, otherwise negative consequences in the economy.
When Ben starts reducing QE, we call it Fed Tapering. More details in next article.
Summary of Quantitative Easing
Quantitative easing [QE] was a novel expansionist monetary policy to contain the negative
impact of subprime crisis and put American economy back on growth track.
[expansionist because money supply increased]

Under QE, US Federal reserve (Feds), started purchasing both toxic assets (mortgage backed
securities /MBS) and gilt edged securities (treasury bonds) to increase dollar liquidity in
the market.
QE was started in 2008, was carried out in three phases.
US feds have decided that QE will be stopped when EITHER unemployment rate is less than
6.5% OR inflation is higher than 2.5%.
QE will not be stopped suddenly. QE will be reduced gradually. This gradual reduction in
Quantiative Easing / bond buying pogrom is called Fed Tapering.
QE: Good or Bad? (American point of view)
POSITIVE
NEGATIVE
Removed toxic assets from American banksBanks did not lend all of the dollars
stimulating them to lend more to American folks.
to American folks.
Within USA, It didnt stimulate as
much economic growth as Ben
More dollars= Easier access to credit / capital =>
had hoped.
business expansion=> more jobs=> more demand
(Because salary in hand) => sales increased,
Most of the new jobs were created
economy booms.
in foreign countries, rather than
in USA.
Not really. Once investors were
forced out of treasury bond
game, they started putting
Bens (Sarkaari) Treasury Bond buying program:
money in gold.
now investors had to look out for new avenues to
pump money i.e. corporate bonds, equities,
As a result: within 2008 to 11, gold
IPOs=
more
capital
for
American
prices soared from ~850$ to
businessman=business
expansion
=more
~1900
dollars!
[=
gold
jobs=growth.
expensive even for India= our
Current
account
deficit
increased.]
American exporters couldnot get
easy loans from banks to
Dollar weakened against foreign currencies, benefiting
expand production. => still
the American exporters.
could not compete with Asian
giants pricewise.

Besides, Weak dollar= bad For

American importers. => higher
Current Account deficit for
USA.
Big banks/financial institutions
used these dollars to buy off
small loss making banks. Thus
banking
sector
became
oligopoly.

Today largest 0.2% of American

banks control more than 70%
of bank assets in America.
QE: Good or Bad? (Indian point of view)
Two main reasons why it was (mostly) bad
#1: Nuisance Hot Money
Recall Tom Cruise, the investment banker / FII.
Hell pump money into Indian share market. Say in ABC Infra. Company. Tom keeps buying
and buying= Prices of the shares go higher and higher -1000, 1200, 1500..(supply,
demand and speculation).
The desi investors (aam admi), also buy those shares @1500, hoping its price will rise to
2000 rupees next week.
But within a week, Tom Cruise (FII)s expert tell him to invest in Xyz Chinese Companys
shares for better returns. For these billion dollar FIIs, even return difference of 2% will
translates to millions. Hence they move money from one nation to another at rapid speed.
So Tom immediately sells ABC infra shares to pullout his (rupee) money, gets them
converted to yuan and buys Chinese company shares.
Then ABC shares suddenly collapse- barely 700-800 rupees. (supply-demand-speculation)
As a result, desi investors (aam admi)s money is lost [because they had bought @1500].
This nuisance of FII hotmoney= one of the biggest reason why sharemarket has gone up and
down in a volatile manner in recent years.

#2: Headache for Exporters, Importers & RBI

In above point, we saw how FII rapidly inject and pull out their money from a country =>
exchange rates become volatile. (After all, its dollar vs rupee supply demand.)
Although QE = dollar supply increased = rupee should strengthen. But given the above
nuisance of FII Hot money, rupee would keep fluctuating. (and weve to blame Mohan
also- because policy paralysis= provokes FIIs to pullout money.)
when exchange rates keep fluctuating (say today 1$=55 Rs. and tomorrow $1=65 Rs.), this is
not conductive for business planning- neither for importer nor for exporter because they
cannot decide their calculations about input cost, taxes, profit margin, everything gets
messed up. Long term business planning is mission impossible (thanks to Tom cruise this
time!).
Then RBI has to intervene to keep the exchange rates stable. How? Recall Apples, fridges
and Urjit Patel click me
Anyways, lets check positive and negative impact of US Quantitative easing on Indian
economy.
POSITIVE

NEGATIVE
FII investment were mostly hot money theyd
During the initial phase: More dollar
pull out from our market, as soon as they saw
supply=>More
FII,
FDI
even slightly better returns in another country.
investment
= lot of ups and downs, volatile share market.
This helped in business expansion=
more jobs, more production more
GDP growth.

Rupee strengthened against dollar. (e.g

$1=Rs.50 to$1=Rs.40). Good for
importers.

FDI: in the early phase [2008-10], we had not

relaxed FDI rules. So we couldnt attract as
much FDI (From USA) like other emerging
economies.
In the later part of QE era (mid 2012 onwards), all
the positive factors were lost because of
domestic inflation and policy paralysis.
Leading to decline in FDI/FII (compared to
what we deserved)
Bad for exporters and call centers
Plus, they were already seeing less orders due to
recession like situation in US and EU during
this era. So, rupee strengthening = adding insult

to their injury.
2012: FII injected ~18 billion USD in
They would have invested even more if there was no
Indian market. (That too despite policy
policy paralysis / GAAR controversy.
paralysis, GAAR controversy.)
Cheaper dollar helped Indian corporates Indias external debt increased (especially when later
to borrow from abroad.
1$=became close to Rs.65)
RBIs forex reserves increased. Because Forex reserve increased only for the first two years of
cheap dollars, RBI could collect more by QE. Later hardly any improvement, in fact forex
selling its rupee reserves in exchange of reserve declined in 2013 (when RBI tried to stop rupee
dollars.
downfall by selling its own dollars in market)
With inputs from Mr.Shivaram G.
Mock questions, after we are done with fed tapering in next article.
Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.
Tags: shivaram, World-Economy
[Diplomacy] BIMSTEC Third Summit at Nay Pyi Taw, Outcomes, Obstacles, Trans border
Connectivity, BCIM Corridor
Diplomacy8 months Ago54 Comments
For ACIO & Insurance AO
Maths: Fast-track Rajesh Verma Reasoning: RS Agrawal English: SP Bakshi
Prologue
Outcomes: 3rd BIMSTEC summit
Why is BIMSTEC important for India?
Potential: Trans border Connectivity
Obstacles
What has China done in BIMSTEC countries?
What has India done for BIMSTEC?
Mock Questions

Prologue
There are two types of summits in the world:
High profile such as Climate change summit under UNFCC; ASEAN, G20 etc. (something
that directly/ indirect/y hurts @all three levels of exam)
Chillar summits like this BIMSTEC. For them- dont spend two days in PH.D. Focus on the
following four areas only and finish within two hours.
brief history, location &
that is usually newspaper + MEA briefs
theme
Highlight of PM/foreign
that is usually uploaded @PIB/MEA
ministers speech.
outcome
that is usually uploaded on given summits official site
That is usually C.Rajamohan.
Analysis/criticism: at most
finish
within
two
columnist.

IDSA-walla will write when they want to write. You need to

finish summits before it gets too stale, and youve too
many other topics on your plate, then youll lose the
mood to cover this one.

Anyways, lets check BIMSTEC summit on those parameters.

1997

2004

2004
2008
2014,
March
??

Formed in 1997, as BIST-EC(Bangladesh, India, Shri Lanka and Thailand economic

cooperation),
Renamed as BIMSTEC after Nepal and Bhutan Joined.
BIMSTEC (Bay of Bangal Initiative for Multisectoral Technical and Economic
Cooperation)
Total seven: India, Bangladesh, Bhutan, Nepal, Myanmar, Shri Lanka, Thailand
BIMSTEC free trade area agreement (FTA) talks start
2nd Summit @Delhi
3rd Summit @ Nay Pyi Taw (New Capital of Myanmar.)THEME: Partnership for
Harmony and Prosperity.
Nepal will host the 4th Summit (cycle continues in alphabetical order.)

Outcomes: 3rd BIMSTEC summit

Hardly any Major outcome, but anyways, here it goes:

Well setup Permanent Secretariat @Dhaka, Bangladesh
2015 = declared as a Year of BIMSTEC Tourism.
Well try to conclude the BIMSTEC Free Trade Agreement (FTA) in Goods by the end of
2014. [and then extend it to investment and services as well.]
Well try to ratify convention related to
international terrorism
trans-national organized crime
drug trafficking

Well try to get everyone sign BIMSTEC Convention on Mutual Legal Assistance in
Criminal Matters.
Filler lip service:
(Following words are common whether it is BIMSTEC or Burkina Paso, Kenya or Canada).
MSME partnership, technology transfer
energy cooperation
business visa
fisheries, agro, livestock, healthcare (traditional medicine): joint R&D
Poverty Alleviation
cross border crime and terrorism
And most importantly, sustainable development (= Desi liquor.)
so far we are done with (A) basics (B) outcome / highlight. Now comes the analysis/evaluation
part.
Why is BIMSTEC important for India?

SAARC

ASEAN
BIMSTEC

Paki Hostility. SAARC is like a big neighborhood- with India at center and
small/poor countries on periphery. This peripheral nations struggle on both economic
and political fronts. India did try to lead them but Paki Hostility prevents any
collective efforts.
Chinese bullying. Besides, we are not member countries of ASEAN.
at least here, India can play Big brother without (direct) influence of Pak or
China.
BIMSTEC = look East for India; Look West for Thailand.

Potential: Trans border Connectivity

BIMSTEC= 20% of worlds junta, GDP >2.5 Trillion USD = big market for Indian exports +
Manipur can be promoted for medical tourism. Buddhist heritage sites for religious
tourism and so on.

BIMSTEC = a route to connect the South Asia with Southeast Asia. Observe:
Chennai 2 Bangkok

Chennai (India) Dawei (Myanmar) Bangkok (Thailand).

(sea/land corridor)
India-Myanmar-Thailand Trilateral Highway

IMT Trilateral
will complete by 2016
will connect Kunming (SW China)- Kolkata (India) Mandalay
(Myanmar) Dhaka|Chittagong (Bangladesh)

BCIM corridor

Southwest China = landlocked, poor, suffering from knife attacks

from the Uyghur extremism coming from NorthWest province
of Xinjiang.
China hopes, BCIM corridor will boost trade-tourism, thereby
reducing poverty and extremism in its Southwest region.

Andaman
islands.

Nicobar

ASEAN Master Plan

for Connectivity

December 2013, had official talk with India in this regard.

Trans-shipment hub.
many foreign investors interested.
to help the ASEAN community [Similar to European Union. will
be setup in 2015.]
Kaladan Multi-Modal Transit Transport Facility
by the Ministry of External Affairs

Kaladan

Haldia/Kolkata Port=> Sittwe Port (Myanmar) => Kaladan River=>

Road transport to Mizoram.
in other words, This project aim to provide alternate connectivity
between eastern ports of India vs Mizoram via Myanmar.
will complete by 2016.

Even Asian Development Bank (ADB), Japan and USA have shown interest in financing some
of these projects.
Obstacles
Although BIMSTEC offers lot of potential, but it has remained as ineffective as SAARC.
The relatively rich /powerful countries = India and Thailand. If they take lead, others will
follow.
But in recent times, Thailand is caught up in internal coups, political riots = their leadership
doesnt really have the time / mood to look at bigger issues outside their national border.
Infect, Thailands lady PM did not even attend this latest summit, because of ongoing
turmoil.
If India takes the lead catalyst role, then rest of them will follow. But India has remained
passive.
Most of the transport project that we saw above= theyre incomplete, just paper-talk, lip
service, stuck for one reason or another.
Now compare Indias laziness with China.

What has China done in BIMSTEC countries?

China already has special economic agreement with most BIMSTEC members (Except
Bhutan and India)
China uses Yunnan province as base for connecting with BIMSTEC. For example:
They Completed oil and gas pipelines linking Yunnan (China) with Arakan coast
(Myanmar). That too within four years. We cannot finish even a highway project
with this much time.
They have plans to high-speed train links from Yunnan (China) into Thailand,
Myanmar and Bangladesh.

Sri
Lanka:
Nepal

China helped upgrading Colombo port; another port project in Hambantota; soon
planning to sign FTA and so on.
Chinas Qinghai-Tibet Railway. Nepal itself want connectivity upto Kathmandu. dry
port in Larcha in Nepal

List not exhaustive, This was just tip of an iceberg.

What has India done for BIMSTEC?
India looks after four key areas under BIMSTEC : Environment; Terrorism; Transport; Tourism;
(=ETTT)

Environment
Energy
Education/Public
Health

Trade
Crime
Misc.

Indias National Tsunami Early Warning Centre is providing early

warnings
BIMSTEC Centre for Weather and Climate in Noida
BIMSTEC Energy Centre in Bengaluru
We give scholarship to students from BIMSTEC countries- including
AYUSH, traditional medicine related research.
Truckload of fancy coop in agriculture, public health, biotech, IT,
human resource development and others
Well soon launch direct shipping line to Myanmar to improve our
maritime links with BIMSTEC.
India spearheaded the negotiations related to counter terrorism, drug
trafficking, organized crime etc.
BIMSTECs permanent Secretariat will be setup in Dhaka. Well pay
32% Expenditure for running this one.

ok done many thing. But Asli maal comes from trade relations, oil-energy-gas pipelines. Thats
where India lags behind China.
Our North Eastern states dont have good rail-road connectivity with rest of India.
Public sector has been lax in developing such infra @NE region.
Private sector is not interested in developing such infra. @NE region.
We saw how Manipur can be promoted as a hub for medical tourism. But Manipur is often
subjected to Economic blockades by outfits= even LPG and petrol prices skyrocket.
This negative publicity hurts tourism potential.
Our Government needs to fundamentally change the way it looks and treats North East.
Otherwise, all these talks about trans-national corridors will remain hollow.
Mock Questions

Q1. Correct statements

All BIMSTEC countries have coastlines along with Bay of Bengal
All BIMSTEC countries are also members of ASEAN
Both A and B
neither A nor B
Q2. Correct statements about Third BIMSTEC summit held at Nay Pyi Taw in Myanmar.
Nay Pyi Taw is the capital of Myanmar
Cambodia was inducted as a member state of BIMSTEC.
2015 was declared as The Year of BIMSTEC Tourism
Answer choices
only 1 and 2
only 2 and 3
only 1 and 3
all of them
Q3. Recently, Indian and Chinese official met for initiating BCIM corridor project. This
project aims to connect
Beijing, Chennai, Mandalay, Dhaka
Banglore, Chennai, Indore, Mumbai
Kunming, Kolkata, Mandalay, Chittagong
None of Above
Q4. Correct Statements by Kaladan Multi-Modal Transit Transport Facility
This is a joint initiative by Shipping ministries of India and Myanmar

To setup new ports at Dugarajapatnam (Andhra) and Kaladan (Myanmar).

This project will also provide Rail-Road connectivity from Myanmar to Manipur.
Answer choice
only 1 and 2
only 2 and 3
only 1 and 3
None of them
Descriptive [GS2]
Answer in 200 words each
Trans-border connectivity with South East Asian countries is essential for both Indias
strategic as well as economic interests. Elaborate.
BIMSTEC could be a potential game-changer for the north-eastern Indias quest for
prosperity. Elaborate.
Write a note on following (i) Kaladan Multi-Modal Transit Transport Facility (ii) BCIM
corridor
Answers to MCQs: 1D; 2C; 3C; 4D
Ref
Inputs from Ms.Rajtanil Solanki.
MEA: for history, PM speech, steps, outcome
C. RajaMohan: for Analysis
Visit Mrunal.org/diplomacy for more articles on International relations/ Diplomacy.
Tags: IR-Bodies-Asia