Current Affairs 16 September 2024

CONTENTS

1. Centralized Pension Payment System Approved for EPF Pensioners
2. PAC Reviews SEBI and TRAI Performance
3. India Increases Import Duty on Edible Oils to Support Local Farmers
4. PM Advocates for Global Collaboration at Green Hydrogen Conference
5. Eturunagaram Wildlife Sanctuary
6. Chamran-1 Research Satellite
7. Enemy Property

 Centralized Pension Payment System Approved for EPF Pensioners

Context:

Starting January 1, 2025, approximately 78 lakh Provident Fund (PF) pensioners under the Employees’ Pension Scheme, 1995 (EPS-95) will have the option to receive their pensions through any bank and any branch nationwide. This decision was part of a recent approval by the Union Labour Ministry, which aims to implement a Centralized Pension Payment System (CPPS) as a component of the Employees’ Provident Fund Organisation’s (EPFO) ongoing IT modernization project. This system is designed to simplify and enhance the pension disbursement process across India.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Reasons Behind New Pension System Initiative:
2. Status of Higher Wage Pension Applications
3. Union Government’s Stance on Pension Issues
4. Employees Pension Scheme (EPS)
5. Way Forward

Reasons Behind New Pension System Initiative:

• Migration and Transfer Issues: Currently, pensioners relocating must transfer their Pension Payment Orders between EPFO offices, leading to delays and payment issues.
• Limited Banking Options: Pension withdrawals are restricted to a few banks linked with the EPFO in each zone.
• Introduction of CPPS: The Centralized Public Pension System, endorsed by the Union Ministry of Labour and Employment, facilitates a smoother Aadhaar-linked payment system, eliminating the need for in-person verifications at banks and speeding up the pension release process.

Potential Benefits of the New Arrangement:

• Immediate Disbursement: Pensions will be directly credited immediately after government release, reducing administrative costs and delays.
• Reactions from Pensioners: K.P. Babu of the Chennai EPF Pensioners’ Welfare Association expressed cautious optimism about the new system, highlighting the need to see its effective implementation and whether it resolves existing issues.

Pensioners’ Satisfaction with the Announcement:

• Mixed Reactions: While the new system aims to streamline processes, many pensioners feel let down, hoping for enhancements similar to those given to government staff.
• Calls for Increased Pension: There have been persistent demands from various stakeholders, including MPs and trade unions, for an increase in the minimum pension amount, reflecting a strong desire for substantial improvement in pension benefits.

Status of Higher Wage Pension Applications

• Current Processing: The Employees’ Provident Fund Organisation (EPFO) is handling a significant backlog of pension applications on higher wages post the Supreme Court’s judgment in November 2022. As of August 7, 2024, only 8,401 Pension Payment Orders (PPOs) have been issued, including two for retirees predating September 1, 2014. Additionally, 89,235 demand notices were sent for arrears transfer, with 17.5 lakh applications submitted online—of which approximately 1.5 lakh were rejected.
• Expectations vs. Reality: Many pensioners anticipated a swift increase in pension following the judicial ruling permitting pensions on wages above the previous ceiling. However, the processing delays and high rejection rates have tempered expectations.

Union Government’s Stance on Pension Issues

• Minimum Pension Concerns: The government acknowledges the financial limitations but continues to increase its allocation for the Employee’s Pension Scheme (EPS-95) annually. Despite these efforts, there is ongoing debate about the adequacy of these increases.
• Funding Mechanism: The pension scheme is currently funded by 1.16% of the basic wages from the government, alongside a transfer of 8.33% of Provident Fund contributions from employers. The budget for this allocation is set to increase to ₹10,950 crore by 2024-25 from ₹8,785 crore in 2022-23.
• High Wage Pension Policy: Initially resistant due to concerns over fund sustainability, the EPFO still maintains a cautious approach towards granting pensions on higher wages. The organization argues that liberal payouts could jeopardize the financial health of the pension fund, despite no current cash flow issues.
• Documentation Challenges: There is also criticism of the EPFO’s requirements for historical documentation from claimants, which many find onerous and impractical.

Employees Pension Scheme (EPS):

• It is a social security scheme that was launched in 1995. It offers pension on disablement, widow pension, and pension for nominees.
• The scheme, provided by EPFO, makes provisions for pensions for the employees in the organized sector after the retirement at the age of 58 years.

Main features:

• Employees who are members of EPF automatically become members of EPS.
• Both employer and employee contribute 12% of employee’s monthly salary (basic wages plus dearness allowance) to the Employees’ Provident Fund (EPF) scheme.
• EPF scheme is mandatory for employees who draw a basic wage of Rs. 15,000 per month.
• Of the employer’s share of 12 %, 8.33 % is diverted towards the EPS.
• Central Govt. also contributes 1.16% of employees’ monthly salary.
• Maximum service for the calculation of service is 35 years.
• No pensioner can receive more than one EPF Pension.

Way Forward

• Increased Contributions: The Union government is considering significant increases in contributions to the Employee’s Pension Scheme-95 (EPS-95) along with raising the cap on Provident Fund (PF) contributions from the existing ₹15,000, which was set a decade ago.
• Investment Options for Employees: Echoing a proposal from former Union Finance Minister Arun Jaitley during the 2015 budget speech, the government might offer employees the choice to invest in either the Employee Provident Fund (EPF) or the National Pension System (NPS). This flexibility aims to address return on investment concerns.
• ETF Investments: Since 2015, the Employees’ Provident Fund Organisation (EPFO) has invested in exchange-traded funds (ETFs), diversifying investment strategies to enhance fund growth, as sanctioned by the Union Labour Ministry.
• Removing EPS-95 Exclusions: There is also a push to eliminate current restrictions that exclude employees who joined post-September 1, 2014, and who earn above the existing wage ceiling from EPS-95 benefits. The proposed change would ensure all employees are eligible for pension benefits regardless of their salary levels.

-Source: The Hindu

PAC Reviews SEBI and TRAI Performance

Context:

The Public Accounts Committee (PAC) has recently initiated an independent review of the performance of key regulatory authorities in India, specifically the Securities and Exchange Board of India (SEBI) and the Telecom Regulatory Authority of India (TRAI).

Relevance:

GS-II: Polity and Constitution (Constitutional Provisions, Parliamentary Committees)

Dimensions of the Article:

1. Public Accounts Committee’s History
2. About Securities and Exchange Board of India
3. About Telecom Regulatory Authority of India

Public Accounts Committee’s History

• The PAC website says the Committee on Public Accounts was first set up in 1921 in the wake of the Montague-Chelmsford Reforms.
• With the Constitution coming into force on January, 26, 1950, the Committee became a Parliamentary Committee functioning under the Speaker with a non-official Chairman appointed by the Speaker from among the Members of Lok Sabha elected to the Committee. But even then, a member from the ruling party continued to be Chairman.
• The Congress had the post until 1967, when Minoo Masani of Swatantra Party became Chairman. Since then, the PAC has always been headed by a member from the Opposition.

Key points about the PAC

• The Chairman of the Public Accounts Committee is appointed by the Speaker of Lok Sabha.
• The PAC is not an executive body and it can only make decisions that are advisory by nature.
• It presently comprises 22 members (15 members elected by the Lok Sabha Speaker, and 7 members elected by the Rajya Sabha Chairman) with a term of one year only.
• It was framed with the purpose of ascertaining whether money granted to the Government by the Parliament has been spent by the former within the “scope of demand” or not, the PAC restricts any Minister from being elected as a member of it.

Role of the PAC

• Holding the Executive to account for its use of public money is one the key roles of Parliament’s Public Accounts Committee (PAC), the “mother of all Parliamentary Committees”.
• The primary function of the PAC is to examine the accounts showing the appropriation of the sums granted by the House to meet the expenditure, the annual Finance Accounts of the government and, other such accounts laid before the House as the Committee may think fit except those relating to such Public Undertakings as are allotted to the Committee on Public Undertakings.
• Apart from the Reports of Comptroller and Auditor General of India (CAG) on Appropriation Accounts of the Government, the Committee examines the various Audit Reports of the CAG on revenue receipts, expenditure by various Ministries/Departments of Government and accounts of autonomous bodies.
• The Committee looks upon savings arising from incorrect estimating or other defects in procedure no more leniently than it does upon excesses.

What are the challenges faced by PAC?

• The PAC’s power to scrutinise expenditure provides for Parliamentary oversight over Executive decisions and acts as a check on slackness, negligence and even wrongdoing on the part of the Executive.
• However, the lack of technical expertise hinders the PAC’s examinations. Officers are sometimes able to dodge PAC summons, which has prompted suggestions that it should have the power to hand out harsher punishments.
• In 2016, the Institute of Public Auditors of India (IPAI) sought suo motu powers of investigation for the PAC. The PAC had also pitched for making the CAG and Auditor General (AG) accountable to Parliament.

About Securities and Exchange Board of India

• The Securities and Exchange Board of India (SEBI) is the regulator of the securities and commodity market in India owned by the Government of India.
• SEBI was established in 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.

The SEBI is managed by its members, which consists of the following:

• The chairman is nominated by the Union Government of India.
• Two members, i.e., Officers from the Union Finance Ministry.
• One member from the Reserve Bank of India.
• The remaining five members are nominated by the Union Government of India, out of them at least three shall be whole-time members.

SEBI has to be responsive to the needs of three groups, which constitute the market:

• issuers of securities
• investors
• market intermediaries

Functions of SEBI

SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi-executive.

• It drafts regulations in its legislative capacity.
• It conducts investigation and enforcement action in its executive function.
• It passes rulings and orders in its judicial capacity.
• Though this makes it very powerful, there is an appeal process to create accountability.
• There is a Securities Appellate Tribunal which is a three-member tribunal.
• A second appeal lies directly to the Supreme Court.

About Telecom Regulatory Authority of India

• In 1997, the Telecom Regulatory Authority of India Act, 1997, created the Telecom Regulatory Authority of India (TRAI).
• The Telecom Regulatory Authority of India (TRAI) has its headquarters in New Delhi.
• Two full-time members, two part-time members, and the chairperson of the TRAI are all chosen by the Indian government.

Functions of TRAI:

• The function of the TRAI is to make recommendations to the central government on matters related to service providers, Revocation of license for non-compliance , Measures to facilitate competition and promote efficiency in the operation of telecommunication services to facilitate their growth etc.
• Laying down the standards of quality of service to be provided by the service providers.
• Timely and officially notifying the rates at which the telecommunication services within India and outside India shall be provided under the TRAI Act, 1997.
• The recommendations of the TRAI are not binding upon the Central Government.

-Source: The Hindu

India Increases Import Duty on Edible Oils to Support Local Farmers

Context:

The Ministry of Finance has increased the import duty on edible oils from zero to 20%, resulting in a total effective duty of 27.5% when other components are added. This measure aims to bolster domestic oilseed farmers. This adjustment follows recent approvals for soybean procurement at the Minimum Support Price (MSP) in Maharashtra, Madhya Pradesh, Karnataka, and Telangana, highlighting a strategic effort to enhance local agricultural sectors.

Relevance:

GS III: Agriculture

Dimensions of the Article:

1. Overview of Edible Oils in India:
2. NITI Aayog’s Report on Edible Oil Self-Sufficiency
3. About India’s Oilseeds Production and Imports
4. Government Scheme-National Mission on Edible Oil-Oil Palm (NMEO-OP)

Overview of Edible Oils in India:

• Edible oils primarily include vegetable oils refined through processes like neutralization, bleaching, and deodorization to eliminate unwanted elements.
• Compared to animal fats, vegetable oils are preferred due to their higher content of unsaturated fatty acids.

Current State of Edible Oil Production in India:

• Production Volume: India is responsible for about 5-6% of global oilseeds production, equating to roughly 41.35 million tons from nine types of cultivated oilseeds during the 2022-23 period.
• Exports: The export volume for oil meals, oilseeds, and minor oils stood at approximately 3.46 million tons for the fiscal year 2022-23, valued at Rs 14,609 crores.

NITI Aayog’s Report on Edible Oil Self-Sufficiency:

• Report Overview: Released by NITI Aayog, the report provides an in-depth analysis of India’s edible oil sector and outlines potential future directions.
• Consumption Trends: There has been a significant increase in per capita edible oil consumption in India, now at 19.7 kg/year.
• Import Reliance: Due to domestic production constraints, India had to import 16.5 million tons of edible oils in 2022-23, meeting only 40-45% of its needs domestically.
• Self-Sufficiency Challenges: The report addresses the substantial challenge of achieving self-sufficiency in edible oils given current consumption and production trends.

Strategic Roadmap for Edible Oil Sector:

• Future Projections: By 2030, the supply of edible oil is expected to reach 16 million tons and 26.7 million tons by 2047 under a Business-As-Usual scenario.
• Key Strategies for Growth:
  • Crop Retention and Diversification: Encourages the cultivation of diverse oilseed crops.
  • Horizontal Expansion: Aims to increase the amount of land cultivated with specific oilseeds.
  • Vertical Expansion: Focuses on enhancing yields through improved agricultural practices and better seeds.
  • Trade Policy: Advocates for a dynamic trade policy to support balanced growth.
  • National Mission Enhancement: Suggests expanding the scope of the National Mission on Edible Oils to bolster the sector further.

About India’s Oilseeds Production and Imports

• India’s vegetable oil economy is world’s fourth largest after USA, China & Brazil.
• India is also third largest cultivator of oilseeds in the world and paradoxically meets into more than 50% requirement through imports.
• Major Oilseeds Producing Areas in India are: Rajasthan, Gujarat, Tamil Nadu, Madhya Pradesh, Haryana, Maharashtra, Karnataka, Andhra Pradesh.
• Due to diverse agro-climatic conditions and geographical locations, farmers are able to grow all the nine annual oilseeds viz. groundnut, rapeseed, soybean, sunflower, sesame, safflower, niger, castor and linseed.
• In India, oilseeds are second most important crop after cereals sharing 14% of the country’s gross cropped area and accounting for nearly 3% of GDP.
• Oilseed accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product and 10% value of all agricultural commodities.
• India needs a threefold increase in the oilseeds production in the next 35 years as – like pulses, oilseeds face severe challenges in terms of climatic stresses and unfavourable farming conditions.
• Oilseed cultivation is mainly undertaken on marginal land by resource poor farmers who are generally reluctant to provide necessary inputs for increasing the productivity.
• Nearly 82% of the oilseeds area fall under rainfed farming where climatic vagaries cause severe damage to crops.
• Out of the total requirement, 10.50 million tonnes are produced domestically from primary (Soybean, Rapeseed & Mustard, Groundnut, Sunflower, Safflower & Niger) and secondary sources (Oil palm, Coconut, Rice Bran, Cotton seeds & Tree Borne Oilseeds) and remaining 60%, is met through import.
• Despite the oilseed production of the country growing impressively, there exists a gap between the demand and supply of oilseeds, which has necessitated sizeable quantities of imports.

Government Scheme-National Mission on Edible Oil-Oil Palm (NMEO-OP)

• National Mission on Oilseeds and Oil Palm (NMOOP) was implemented during the 12th Five Year Plan, to expand the oil palm areas and increase the production of edible oils.
• It was later merged with the National Food Security Mission.
• NMEO-OP aims resolve to allow India to be independent or self-reliant in edible oil production.
• Through this mission, more than ₹11,000 crore will be invested in the edible oil ecosystem.
• The government will ensure that farmers get all needed facilities, from quality seeds to technology.
• Along with promoting the cultivation of oil palm, this mission will also expand the cultivation of our other traditional oilseed crops.

Need for NMEO-OP

• During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level of 18.90 million tonnes in 2011-12 and is likely to increase further.
• A substantial portion of our requirement of edible oil is met through import of palm oil from Indonesia and Malaysia.
• It is, therefore, necessary to exploit domestic resources to maximize production to ensure edible oil security for the country.

-Source: Indian Express

PM Advocates for Global Collaboration at Green Hydrogen Conference

Context:

At the second International Conference on Green Hydrogen 2024 (ICGH-2024) held virtually at Bharat Mandapam, New Delhi, the Prime Minister highlighted the critical need for international cooperation to enhance green hydrogen production. He stressed on the importance of reducing costs and advancing research and development in this sector to achieve global energy sustainability goals.

Relevance:

GS III: Environment and Ecology

Dimensions of the Article:

1. Summary of ICGH-2024 Achievements and Goals:
2. What is green hydrogen?

Summary of ICGH-2024 Achievements and Goals:

• India stands as one of the initial G20 countries to meet its Paris Agreement targets, achieving its green energy commitments nine years early, by 2021.
• The nation has set objectives to enhance non-fossil energy capacity to 500 gigawatts and slash carbon emissions by 1 billion tonnes by 2030.
• There has been a nearly 300% increase in India’s non-fossil fuel capacity over the last decade.

Strategic Developments in Green Hydrogen:

• Role of Green Hydrogen: Recognized as vital for decarbonizing sectors challenging to electrify, such as refineries and heavy transport.
• Energy Storage: Green Hydrogen is proposed as an effective storage method for excess renewable energy.

Initiatives and Calls for Action:

• Research and Collaboration: Calls were made for substantial investment in innovative research and for fostering partnerships between academia and the industry to support Green Hydrogen ventures.
• Leadership and Advocacy: The Prime Minister encouraged experts and scientists to advance the adoption of Green Hydrogen.
• Global Policy Alignment: Highlighted were the New Delhi G-20 Leaders’ declaration of five voluntary principles on Hydrogen, aimed at forming a cohesive global strategy.

Technical Innovations and Applications:

• Enhancing Efficiency: There was a specific focus on improving the efficiency of electrolysers and utilizing alternative resources like seawater and municipal wastewater for hydrogen production.
• Broader Application Spectrum: The potential for integrating Green Hydrogen in public transportation, maritime activities, and waterway systems was also discussed.

What is green hydrogen?

• A colourless, odourless, tasteless, non-toxic and highly combustible gaseous substance, hydrogen is the lightest, simplest and most abundant member of the family of chemical elements in the universe.
• But a colour — green — prefixed to it makes hydrogen the “fuel of the future”.
• The ‘green’ depends on how the electricity is generated to obtain the hydrogen, which does not emit greenhouse gas when burned.
• Green hydrogen is produced through electrolysis using renewable sources of energy such as solar, wind or hydel power.
• Hydrogen can be ‘grey’ and ‘blue’ too.
  • Grey hydrogen is generated through fossil fuels such as coal and gas and currently accounts for 95% of the total production in South Asia.
  • Blue hydrogen, too, is produced using electricity generated by burning fossil fuels but with technologies to prevent the carbon released in the process from entering the atmosphere.

Green Hydrogen Importance

• Hydrogen is being used across the United States, Russia, China, France and Germany. Countries like Japan desire to become a hydrogen economy in future.
• Green hydrogen can in future be used for
  • Electricity and drinking water generation, energy storage, transportation etc. 
  • Green hydrogen can be used to provide water to the crew members in space stations.
  • Energy storage- Compressed hydrogen tanks can store the energy longer and are easier to handle than lithium-ion batteries as they are lighter.
  • Transport and mobility- Hydrogen can be used in heavy transport, aviation and maritime transport.

What is the National Green Hydrogen Mission?

• The intent of the mission is to incentivise the commercial production of green hydrogen and make India a net exporter of the fuel.
•  The mission has laid out a target to develop green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum.
• This is alongside adding renewable energy capacity of about 125 GW (gigawatt) in the country.
  • This will entail the decarbonisation of the industrial, mobility and energy sectors; reducing dependence on imported fossil fuels and feedstock; developing indigenous manufacturing capabilities; creating employment opportunities; and developing new technologies such as efficient fuel cells.
• By 2030, the Centre hopes its investments will bring in investments worth ₹8 trillion and create over six lakh jobs. Moreover, about 50 MMT per annum of CO2 emissions are expected to be averted by 2030.
• As per its Nationally Determined Contribution (NDC) to meeting the goals of the Paris Agreement, India has committed to reduce emissions intensity of its GDP by 45% by 2030, from 2005 levels.

-Source: Live Mint

Eturunagaram Wildlife Sanctuary

Context:

Recently, as per the ‘sample plot analysis’, it has been surmised that approximately 50,000 trees were uprooted in 200 hectares of deep forest area along 2 km to 3 km length in Eturunagaram wildlife sanctuary.

Relevance:

Facts for Prelims

Eturunagaram Wildlife Sanctuary:

• Establishment: Designated as a wildlife sanctuary in 1953.
• Location: Situated near the border of Maharashtra, Chhattisgarh, and Telangana in India.
• Natural Features: The sanctuary is traversed by the perennial Dayyam Vagu, which divides it into two sections. The River Godavari also flows through the sanctuary.
• Vegetation: Characterized by tropical dry deciduous forests, with predominant growths of teak, bamboo, madhuca, and terminalia. The area is noted for its diverse climbers.
• Fauna: Hosts significant species such as the Indian gaur and the giant squirrel, along with other wildlife including tigers, leopards, jackals, sloth bears, panthers, wolves, wild dogs, chousingha, and sambar deer.
• Cultural Significance: Known for hosting Sammakkka Sarakka Jathra, one of Asia’s largest tribal gatherings, which occurs biennially.

-Source: The Hindu

Chamran-1 Research Satellite

Context:

Recently, Iran has successfully launched its research satellite, Chamran-1, into space.

Relevance:

Facts for Prelims

Chamran-1 Research Satellite:

• Origin: An Iranian research satellite developed by Iran Electronics Industries (SAIran) under the defense ministry, in collaboration with the Aerospace Research Institute and various private firms.
• Launch Details: Launched into a 550-kilometer altitude orbit using the Ghaem-100, a solid-fuel, three-stage satellite launcher developed by the Aerospace Force of the Islamic Revolutionary Guard Corps (IRGC).
• Mission Objectives: Primarily aimed at testing orbital maneuver technology and hardware/software systems. Secondary tasks include evaluating cold gas propulsion subsystems and navigation/attitude control systems in space.
• Physical Specifications: Weighs approximately 60 kilograms.

-Source: Times of India

Enemy Property

Context:

A parcel of land in Uttar Pradesh, previously belonging to the family of former Pakistan President Pervez Musharraf, is set to be auctioned under The Enemy Property Act.

Relevance:

GS II: Polity and Governance

About Enemy Property:

• The Enemy Property Act 1968 defined an ‘enemy’ as a country (and its citizens) that committed external aggression against India (i.e., Pakistan and China). 
• Properties owned by nationals of these countries who migrated during the Partition or post-1962 conflict fall under this category.
• Legal Framework: The 2017 amendment to the Enemy Property Act, initially established in 1968, and subsequent updates to related public premises laws, broadened the definition of what constitutes an ‘enemy’ to include legal heirs and successors regardless of their current nationality.
• Custodianship: Despite changes in the status or nationality of the original owners, these properties remain under the control of the Indian Custodian of Enemy Property.
• Statistical Insight: Uttar Pradesh holds the majority with 4,991 registered enemy properties, followed by Bengal and Delhi with 2,735 and 487 properties respectively.

-Source: Indian Express