Current Affairs 20 September 2024

CONTENTS

1. Approval for Simultaneous Elections in India
2. Re-evaluation of the Indus Waters Treaty
3. Climate Change Impacts Tea Prices in India
4. Union Cabinet Backs ISRO’s Vision 2047 with Substantial Funding
5. Real Estate Investment Trusts
6. NPS Vatsalya Scheme

Approval for Simultaneous Elections in India

Context:

The Union Cabinet has recently given its nod to a significant proposal that sets the stage for conducting simultaneous elections throughout India. This decision will synchronize the electoral schedule for the Lok Sabha, state Assemblies, and local bodies, aiming to streamline the electoral process.

Relevance:

GS II: Polity and Governance

Dimensions of the Article:

1. Key Recommendations for Simultaneous Elections
2. About ‘one-nation, one- election’
3. Historical background of ‘one-nation, one- election’
4. Merits of ‘one-nation, one- election’
5. Demerits of ‘one-nation, one- election’

Key Recommendations for Simultaneous Elections

• Constitutional Modification: Two bills proposed for amending the Constitution to enable simultaneous elections.
  • Bill 1: Proposes simultaneous elections for the Lok Sabha and State Assemblies without requiring state approval for the amendment.
  • Bill 2: Aims to synchronize municipal and panchayat elections with the Lok Sabha and state assembly elections, mandating that these local elections occur within 100 days of the national and state elections.

Ratification and Amendments Requirements

• State Ratification: Requires approval from at least half of the states.
• Major Amendments Proposed: Suggests 15 amendments to the Constitution, including:
  • Article 82A:  The first Bill recommended by the Kovind committee would begin by inserting a new Article 82A into the Constitution.  
  • Article 82A will establish the process by which the country will move to a system of simultaneous elections for Lok Sabha and state Assemblies. 
  • It has recommended that the power of Parliament under Article 327 should be expanded to include “conduct of simultaneous elections”. 
  • Article 83 and Article 172: It recommended that under Articles 83(4) and 172(4), the Lok Sabha or state Assembly that replaces the previous one will serve only for the remaining “unexpired term” before being dissolved again once simultaneous elections are conducted as scheduled. 
  • Article 324A: The committee has suggested the inclusion of a new Article 324A in the Constitution.  
  • This new article would empower Parliament to make laws to ensure that municipality and panchayat elections are held simultaneously with the Lok Sabha and state Assemblies. 

Electoral Management Enhancements

• Consolidated Electoral Roll and ID System: Mandates the Election Commission of India (ECI) to create a single electoral roll and election IDs in collaboration with State Election Commissions.
• Preparatory Measures: Directs the ECI to plan and prepare in advance for manpower, polling personnel, security forces, EVMs/VVPATs, etc., in coordination with State Election Commissions.

Provisions for Emergency Elections

• Procedures for a Hung Parliament or Assembly: Outlines the process for holding elections to complete the unexpired term in cases like a no-confidence motion.

Establishing a Uniform Electoral Cycle

• ‘Appointed Date’ Declaration: Proposes that the President set an ‘Appointed Date’ marking the start of a new electoral cycle after general elections.
• Syncing State Assembly Terms: All state assemblies will align their terms to end with the Lok Sabha’s term, regardless of their original election schedule, ensuring all conclude simultaneously at the next general elections.

Example: The next assembly elections in West Bengal (2026) and Karnataka (2028) would conclude these assemblies’ terms in May or June 2029, coinciding with the next Lok Sabha’s term. 

About ‘one-nation, one- election’

• The concept of “One Nation One Election” proposes the synchronization of elections for all states and the Lok Sabha within a five-year span. This entails restructuring the electoral cycle in India so that elections at both the state and central levels align. This would mean voters casting their ballots for members of both the Lok Sabha and state assemblies on a single day, concurrently or in phases if necessary.
• Recent developments have seen Prime Minister Narendra Modi advocating for “One Nation One Election,” underscoring its significance during the 80th All India Presiding Officers Conference.

Historical background of ‘one-nation, one- election’

• Historically, simultaneous elections have occurred in India in the years 1952, 1957, 1962, and 1967. However, this practice was discontinued following the dissolution of certain Legislative Assemblies in the late 1960s, leading to separate elections for the Centre and states.
• The idea of returning to simultaneous elections was initially suggested in the Election Commission’s 1983 report and was mentioned in the Law Commission’s 1999 report as well. Since 2014, the BJP government has ardently supported the notion.
• In 2018, the Law Commission released a draft report endorsing the implementation of simultaneous elections and suggesting necessary amendments to electoral laws and relevant Articles. The report addressed legal and constitutional challenges linked with conducting simultaneous elections and advocated for constitutional amendments ratified by at least 50% of the states.

Merits of ‘one-nation, one- election’

• Cost Reduction: The concurrent conduct of elections minimizes expenses associated with multiple elections, including time, labor, and financial costs, which arise due to movement of security personnel and diversion of state resources.
• Enhanced Voter Turnout: Simultaneous polls could potentially boost voter participation.
• Better Use of Security Forces: Frequent elections limit the availability of security forces for other crucial tasks.
• Focus on Governance: Continuous elections divert the focus of governance towards short-term electoral gains, sidelining long-term policies and programs.

Demerits of ‘one-nation, one- election’

• Constitutional and Anti-Federal Concerns: Critics argue that the move might impact the federal nature of the Indian political system, as national and state issues differ.
• Accountability: Fixed tenures might lead to a lack of accountability among government officials.
• Difficulty in Synchronization: Maintaining synchronized elections is challenging, especially given the likelihood of government assemblies losing confidence.
• Tampering with Democracy: Altering the election system could impact people’s democratic will.

-Source: Indian Express

Re-evaluation of the Indus Waters Treaty

Context:

India has recently issued a new formal notification to Pakistan with the intention of reviewing and possibly modifying the longstanding Indus Waters Treaty (IWT). This move follows a similar outreach from January 2023. The specific invocation of Article XII (3) within this latest notice indicates a clear intention by India to reexamine, and possibly amend, this 64-year-old agreement. This provision within the treaty allows for modifications only through a mutually ratified agreement between both nations, suggesting a diplomatic pathway forward for renegotiation.

Relevance:

GS-II: International Relations (India and its Neighborhood, International Treaties, Policies and Agreements affecting India’s Interests)

Dimensions of the Article:

1. India Seeks Reassessment of the Indus Waters Treaty
2. About the Indus Waters Treaty (IWT)
3. Indus River Basin

India Seeks Reassessment of the Indus Waters Treaty

• Background on the Demand:
  • Due to substantial and unforeseen shifts in circumstances, India has formally requested Pakistan to review the Indus Waters Treaty.
  • Persistent cross-border terrorism has also been mentioned as a significant reason for this reevaluation.
  • The formal notice emphasizes the need to reconsider the treaty’s obligations due to these unforeseen changes.
  • In January 2023, India had previously sent a notice to Pakistan seeking amendments to the treaty established in 1960.
• Justifications for the Renegotiation:
  • The request is grounded on “fundamental and unforeseen changes in circumstances,” necessitating a fresh evaluation of the treaty.
  • Issues prompting this include demographic shifts, environmental concerns, the pursuit of sustainable energy solutions to meet emission targets, and ongoing cross-border terrorism.
  • The appeal also addresses controversies surrounding two hydroelectric projects in Jammu & Kashmir—Kishanganga and Ratle—which are alleged by Pakistan to breach the treaty terms. These projects operate as run-of-the-river schemes, generating electricity without hindering the river’s flow.
• Catalysts for the January 2023 Notice:
  • The latest notice follows Pakistan’s objections to the aforementioned Indian hydroelectric initiatives.
  • Initially, Pakistan requested a “Neutral Expert” to mediate, but subsequently called for intervention by the Permanent Court of Arbitration (PCA).
  • India challenged this move as it deviates from the treaty’s stipulated conflict resolution process, which progresses from the Indus Commissioners to a Neutral Expert, and to the PCA as required.
  • The World Bank had paused the dual arbitration processes in 2016, advocating for a bilateral resolution.
  • Despite India’s efforts to engage from 2017 to 2022, no discussions took place, leading the World Bank in 2022 to resume both the Neutral Expert and PCA procedures, marking the first such initiative in over six decades.

About the Indus Waters Treaty (IWT)

• The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank, to use the water available in the Indus River and its tributaries.
• The Indus Waters Treaty (IWT) was signed in Karachi in 1960.
• The Treaty gives control over the waters of the three “eastern rivers” — the Beas, Ravi and Sutlej to India, while control over the waters of the three “western rivers” — the Indus, Chenab and Jhelum to Pakistan.
• India was allocated about 16% of the total water carried by the Indus system while Pakistan was allocated the remainder.
• The treaty allows India to use the Western River waters (the ones in Pakistan’s control) for limited irrigation use and unlimited non-consumptive use for such applications as power generation, navigation, floating of property, fish culture, etc.
• It lays down detailed regulations for India in building projects over the western rivers.
• The preamble of the treaty recognises the rights and obligations of each country in the optimum use of water from the Indus system in a spirit of goodwill, friendship and cooperation.

Indus River Basin

• The Indus River (also called the Sindhū) is one of the longest rivers in Asia and the longest river of Pakistan.
• It flows through China (western Tibet), India (Ladakh) and Pakistan.
• Its estimated annual flow is estimated to be twice that of the Nile River making it one of the largest rivers in the world in terms of annual flow.
• The Zanskar river is its left bank tributary in Ladakh.
• In the plains, its left bank tributary is the Panjnad which itself has five major tributaries, namely, the Chenab, Jhelum, the Ravi, the Beas, and the Sutlej.
• Its principal right bank tributaries are the Shyok, the Gilgit, the Kabul, the Gomal, and the Kurram.

-Source: Indian Express

Climate Change Impacts Tea Prices in India

Context:

The tea industry in India, particularly in Assam and West Bengal, has experienced a significant price surge of approximately 13% in 2024. This increase is directly attributed to a notable reduction in tea production this year. Analysts and industry experts point to extreme weather events and broader climate change as the primary causes behind the decreased yield. There is a growing consensus that urgent reforms are necessary to ensure the sustainability of tea production, which is being severely threatened by these environmental changes.

Relevance:

GS III: Agriculture

Dimensions of the Article:

1. Current Trends in the Indian Tea Industry
2. Challenges Facing the Tea Industry
3. Global Impact of Climate Change on the Tea Industry

Current Trends in the Indian Tea Industry

• Production Decline and Pricing: In 2024, tea production in West Bengal and Assam has decreased by 21% and 11% respectively, leading to a 13% surge in domestic tea prices. The decline mainly affects the first and second monsoon showers, which typically produce the highest quality teas, impacting the industry’s profitability.
• Export Market: There has been a 4% drop in export prices this year, presenting a challenge for the industry.
• Subsidies and Financial Impact: The industry has been awaiting promised subsidies from the Tea Board, which have not been disbursed, adding to the financial strain during a year of lowered production.

General Overview of the Tea Industry

• Global Standing: India is the world’s second-largest tea producer, after China, and is among the top five global tea exporters, contributing about 10% to global tea exports.
• Domestic Consumption: India consumes about 81% of its tea production domestically, unlike Kenya and Sri Lanka which export most of their production. The major tea-producing states include Assam, West Bengal, Tamil Nadu, and Kerala, collectively accounting for 97% of the national output.
• Export Composition: Predominantly, India exports black tea, which constitutes about 96% of all tea exports. Teas from Assam, Darjeeling, and Nilgiri are globally recognized as among the finest.

Challenges Facing the Tea Industry

• Environmental Impact: 2024 saw significant production disruptions due to extreme weather conditions, including excessive heat in May followed by flooding in Assam. This led to the lowest tea output for May in over a decade.
• Price Fluctuations: By July 2024, tea prices had increased by 47% since the beginning of the year, driven by production shortfalls.
• Pesticide Ban and Market Dynamics: The government’s ban on 20 pesticides has led to higher production costs due to the need for more expensive alternative pest control methods. Despite these challenges, demand for Indian tea has increased, particularly in countries like Russia, Ukraine, Belarus, Azerbaijan, and Kazakhstan.
• Impact on Small Tea Growers and Local Industry: Small Tea Growers (STGs), who manage less than one hectare each and contribute significantly to national production, are severely impacted by price drops and market shifts. The closure of approximately 13 to 14 tea gardens in regions like Dooars, Terai, and Darjeeling has affected over 11,000 workers and underscores the broader challenges faced by the industry.

Global Impact of Climate Change on the Tea Industry

• Rainfall Extremes: Tea cultivation, reliant on consistent rainfall, faces challenges from excessive rain leading to waterlogging, soil erosion, and reduced arable land, impacting tea plantation areas significantly.
• Drought Effects: Insufficient rainfall results in dust build-up on tea leaves, obstructing essential sunlight and adversely affecting tea production, particularly in India and China.
• Frost Damage: In colder regions like Rwanda and China, frost causes the tea leaves to freeze and break, resulting in significant leaf loss.
• Permafrost Instability: Areas with permafrost are seeing increased ground instability which heightens the risk of rock avalanches and landslides, potentially damaging tea plantations situated on hills.
• Production Costs and Quality: Global warming is escalating the difficulty and cost of tea production, with adverse effects on both the quality and quantity of tea, likely leading to increased consumer prices.

-Source: Indian Express

Union Cabinet Backs ISRO’s Vision 2047 with Substantial Funding

Context:

The Union Cabinet has sanctioned a substantial investment, amounting to over ₹22,750 crore, for the Indian Space Research Organisation (ISRO) to propel four key space missions anticipated in the coming years. This funding aligns with ISRO’s ambitious Vision 2047, aiming to advance India’s position in global space endeavors and foster technological innovations within the country’s aerospace sector.

Relevance:

GS III: Science and Technology

Dimensions of the Article:

1. Current Space Initiatives Approved by India’s Cabinet
2. Detailed Insights

Current Space Initiatives Approved by India’s Cabinet

• Chandrayaan-4 Mission: India’s fourth lunar expedition.
• Venus Orbiter Mission (VOM): A mission aiming to explore Venus.
• Bharatiya Antariksh Station (BAS): India’s upcoming indigenous space station project.
• Next Generation Launch Vehicle (NGLV): Development of a new launch vehicle.

Detailed Insights:

Chandrayaan-4 Mission

• Budget and Schedule: Set at ₹2,104.06 crore with a planned launch in 2027.
• Mission Costs Include:
  • Spacecraft development
  • Two Launch Vehicle Mark-3 (LVM-3) launches
  • External deep space network support
  • Design validation tests
• Objectives: The mission will remotely collect lunar rock samples and return them to Earth.
• Advancements: Builds on Chandrayaan-3’s technology with new features like lunar docking and precision landing.
• Goal: To enhance self-reliance in space technology and lay foundational tech for a future manned lunar mission by 2040.

Venus Orbiter Mission (VOM)

• Financials: Budgeted at ₹1,236 crore, with a launch target set for March 2028.
• Purpose: To send a spacecraft to Venus and study its atmosphere and geology.
• Importance: Offers insights into Venus’s development and its extreme greenhouse gas effects.

Bharatiya Antariksh Station (BAS)

• Funding: An additional ₹11,170 crore has been allocated.
• Timeline: First module, BAS-1, expected to launch by 2028 and complete by 2035.
• Objective: To operate a space station 400 km above Earth, supporting 15-20 day astronaut missions.
• Research Benefits: Will serve as a platform for experiments in microgravity, astronomy, and Earth observation.

Next Generation Launch Vehicle (NGLV)

• Investment: A total of ₹8,240 crore approved for the project.
• Development Timeline: First launch projected in 84 months, with the entire project spanning 96 months.
• Capabilities: Designed to be high payload, cost-effective, reusable, and commercially viable.
• Strategic Importance: Essential for deploying the Bharatiya Antariksh Station, featuring enhanced payload capacity and modular green propulsion technology.

-Source: Indian Express

Real Estate Investment Trusts

Context:

The Indian REITs Association (IRA) recently launched Data Benchmarking Institutions (DBIs) to provide investors with detailed information on real estate investment trusts (REITs).

Relevance:

GS III: Indian Economy

Real Estate Investment Trusts (REITs):

• REITs are entities that either own or finance profit-generating real estate properties across diverse sectors.
• They enable investors to pool funds together to invest in a variety of real estate projects.
• Functioning similarly to a mutual fund, these trusts manage a portfolio of properties that generate income, including offices, hotels, and shopping centers.
• Unlike typical real estate firms that focus on selling developed properties, REITs acquire and manage properties for operational income as part of their investment portfolio.
• Investors in a REIT hold fractional stakes in real estate, proportional to their investment, gaining access to real estate benefits without needing to buy whole properties.
• REITs are generally publicly traded, making them as liquid as stocks, a significant advantage over direct real estate investments.

REITs in India:

• Introduction and Regulation: Introduced in 2014, Indian REITs are regulated by the Securities and Exchange Board of India (SEBI).
• Qualification Criteria:
  • Income Distribution: At least 90% of income generated must be distributed to investors as dividends.
  • Revenue-Generating Investments: At least 80% of the REIT’s assets must be in revenue-generating properties.
  • Construction Investment Limit: No more than 10% of the investment can be in properties under construction.
  • Asset Requirement: A minimum asset base of Rs 500 crores is required.
  • Investment Restrictions: Investments in agricultural and vacant lands are prohibited.

-Source: The Hindu

NPS Vatsalya Scheme

Context:

Recently, the union Finance Minister officially launched the NPS Vatsalya scheme.

Relevance:

GS II: Government Policies and Interventions

Overview of NPS Vatsalya Scheme:

• Tailored extension of the National Pension Scheme (NPS) specifically designed for children.

Eligibility Criteria:

• Eligible participants include all minor citizens under the age of 18.
• Both the child and the parent must be Indian citizens and meet Know Your Customer (KYC) standards.
• Accounts are to be registered under the child’s name and managed by a parent or guardian, making the minor the beneficiary.
• Registration for the scheme is available through several authorized channels including major banks, India Post, Pension Funds, and e-NPS, under the oversight of the Pension Fund Regulatory Authority of India (PFRDA).
• Contributions: Starts at a minimum of Rs 1000 annually with no upper limit set for contributions.

Investment Options and Returns:

• PFRDA offers a diverse range of investment opportunities in government securities, corporate bonds, and equities, tailored to the risk tolerance and expected returns of the subscriber.

Conversion and Maturity:

• Upon reaching the age of majority, the account seamlessly transitions into a standard NPS account.

Withdrawal Guidelines:

• After maintaining the account for three years, partial withdrawals up to 25% of the corpus are permitted for specific needs such as education, medical expenses for severe illnesses, or significant disabilities.
• At age 18, beneficiaries can withdraw up to Rs 2.5 lakh entirely or, if the total exceeds this, withdraw 20% with the remaining 80% redirected towards an annuity purchase within the NPS.

Protocols upon Death of a Subscriber:

• Should the subscriber pass away, the entire account balance is transferred to the designated guardian or nominee. If the guardian subsequently passes away, a new guardian is required to complete a fresh KYC to take over the account management.
• In cases where both parents pass away, a legally appointed guardian can manage the funds without additional contributions until the child reaches 18 years of age.

-Source: The Hindu