Current Affairs 25 June 2024

CONTENTS

1. India-Russia Reciprocal Exchange of Logistics Agreement (RELOS) Finalization
2. Lithium
3. Government Considers New Bank for MSME Lending
4. Patna High Court Strikes Down Reservation Quota Increase
5. Successful Launch of SVOM Satellite
6. Namaqualand
7. Russell’s Viper

India-Russia Reciprocal Exchange of Logistics Agreement (RELOS) Finalization

Context:

The India-Russia mutual logistics agreement, known as the Reciprocal Exchange of Logistics Agreement (RELOS), is nearing finalization. This agreement will enhance military cooperation between India and Russia, encompassing joint exercises, training, and disaster relief operations.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. Reciprocal Exchange of Logistics Agreement (RELOS)
2. Evolution of India-Russia Relationship
3. Key Challenges in India-Russia Relations
4. Conclusion

Reciprocal Exchange of Logistics Agreement (RELOS)

Overview

• The Reciprocal Exchange of Logistics Agreement (RELOS) between India and Russia aims to enhance military cooperation between the two nations.
• This administrative arrangement is designed to streamline military logistics support, improving the efficiency and cost-effectiveness of joint operations and long-distance missions.

Significance

• Replenishment of Supplies: Facilitates the continuous, uninterrupted military presence by ensuring the replenishment of essential supplies such as fuel, rations, and spare parts.
• Berthing Facilities: Provides berthing facilities for troops, warships, and aircraft.
• Operational Applicability: Applicable during both wartime and peacetime missions.
• Utilisation of Logistics Networks: Enables smoother utilisation of the host nation’s existing logistics networks, enhancing the ability to respond swiftly to crises.
• Strategic Edge: Provides a strategic advantage to the military operations of both countries, thereby reducing overall mission costs.
• Maritime Outreach: Enhances India’s maritime outreach and influence in strategically important regions.
• Maritime Domain Awareness (MDA): Boosts MDA and shared logistics facilities, enabling better information exchange about maritime activities and improving situational awareness for both countries.

Geopolitical Impact

• Balance with Quad and Russia: Balances India’s logistics agreements with Quad countries and aligns with Russia’s non-Quad stance.
• Strengthening Presence: Strengthens Russian presence in the Indo-Pacific region without Quad involvement.
• Counterbalance: Counterbalances US influence and China’s regional role for both India and Russia.
• Arctic Engagements: India’s primary engagements in the Arctic focus on understanding the scientific interconnections between Arctic sea ice melting and changes in Indian monsoon systems.

Evolution of India-Russia Relationship

Historical Milestones

• Indo-Soviet Friendship Treaty of 1971: In the aftermath of the Indo-Pak war, Russia supported India, while the US and China backed Pakistan.
• Declaration on the India-Russia Strategic Partnership (2000): Marked a new era of enhanced cooperation across various sectors.
• Special and Privileged Strategic Partnership (2010): Elevated during the Russian President’s visit to India, highlighting deeper strategic ties.

Economic Ties

• Bilateral Trade: Significant trade volume, reaching approximately USD 13 billion in 2021-22.
• Trading Partners: Russia ranks as India’s seventh-largest trading partner, showing a substantial rise in trade relations.

Political and Security Engagements

• Inter-Governmental Commissions: Regular meetings focusing on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) and Military-Technical Cooperation (IRIGC-MTC).
• Defence and Security Relations: Regular Tri-Services exercise ‘INDRA’.
• Joint Military Programs:
  • BrahMos cruise missile program.
  • 5th generation fighter jet program.
  • Sukhoi Su-30MKI programme.
• Military Hardware:
  • S-400 Triumf.
  • Kamov Ka-226 (200 to be made in India under Make in India).
  • T-90S Bhishma.
  • INS Vikramaditya aircraft carrier program.
  • AK-203 Rifles.

Technological and Scientific Collaboration

• Historical Support: Soviet assistance in establishing institutions like the Bhilai Steel Plant and supporting India’s space program.
• Advanced Fields: Collaboration in nanotechnologies, quantum computing, and India’s manned spaceflight program (Gaganyaan).

Key Challenges in India-Russia Relations

Geopolitical Dynamics

• Closer Ties with China: Russia’s strategy to avoid conflicts on two fronts (West and China).
• Sino-Russian Cooperation: Increasing military and economic cooperation between China and Russia affecting India’s strategic interests.
• Improved Relations with Pakistan: Complications arising from stronger US-India ties, impacting India’s regional strategy.

Strategic Dilemmas

• Global Strategic Partnerships: India’s challenge in balancing its comprehensive global strategic partnership with the US and its special and privileged partnership with Russia.

Western Criticism

• Russian Invasion of Ukraine: India’s neutrality and continued economic cooperation with Moscow faced criticism from the West.

Defence Procurement

• Decline in Defence Purchases: India’s diversification of defence imports, reducing dependency on Russian arms and exploring other suppliers, potentially including Pakistan.

Conclusion

India and Russia have evolved their relationship from historical ties to a multifaceted partnership encompassing trade, defence, and advanced technology. Despite facing geopolitical challenges and strategic dilemmas, both nations continue to find common ground for cooperation, balancing their interests in a complex international landscape.

-Source: The Hindu

Lithium

Context:

Exploration of lithium in Chhattisgarh’s Korba district has moved a step further with one block advancing to the second round of auctions and promising deposits now being found in the initial exploration of another block.

Relevance:

Facts for Prelims

Dimensions of the Article:

1. News Summary
2. About Lithium
3. Uses

News Summary

Progress in Lithium Exploration:

• Chhattisgarh’s Korba District:
  • Advanced lithium exploration.
  • One block moved to the second auction round.
  • Another block shows promising deposits.

Recent Setbacks:

• Jammu and Kashmir’s Reasi District:
  • Auction canceled due to low investor interest.
• Manipur’s Kamjong District:
  • Exploration halted due to local resistance.
• Other Regions:
  • Manipur, Ladakh, and Assam saw less success in exploration.
  • Local resistance in Kamjong district.
  • Poor results in Ladakh’s Merak block.
  • Abandoned plans in Assam’s Dhubri and Kokrajhar districts.

Positive Developments:

• National Mineral Exploration Trust (NMET):
  • Funded a private company.
  • Found lithium deposits in Korba ranging from 168 to 295 ppm.
• Mines Ministry Auctions:
  • Since November, auctioned 38 critical mineral blocks.
  • Included lithium blocks in J&K and Chhattisgarh.
  • Korba block attracted investors; Reasi block did not and is being re-auctioned.

Preliminary Survey Results:

• Korba:
  • Lithium concentrations in bedrock samples from 10 to 2,000 ppm.
• Reasi:
  • Deposits exceeded 200 ppm.

International Ventures:

• Secured Assets Abroad:
  • Argentina’s Catamarca province through Khanij Bidesh India Limited (KABIL).
• Exploring Opportunities:
  • Sri Lanka and Australia.

About Lithium:

• Lithium is a soft, silver-white metal with the symbol Li and atomic number 3.
• It is the lightest of all the metals and the least dense solid element.
• It is highly reactive and flammable, and easily oxidizes in air or water.

Occurrence:

• Lithium is a rare element and is mostly found in minerals such as spodumene, lepidolite, and petalite.
• It is also found in brines and clays in certain regions of the world, such as the “Lithium Triangle” in South America, which includes Bolivia, Argentina, and Chile.

Uses:

Lithium has a range of industrial applications, including:

1. Lithium-ion batteries: It is a critical component of rechargeable batteries used in mobile devices, laptops, electric vehicles, and renewable energy storage systems.
2. Aerospace industry: Lithium is used in the manufacturing of aircraft parts due to its lightweight and strong structural properties.
3. Glass and ceramics: Lithium is used in the production of heat-resistant glass and ceramics, such as ovenware and laboratory equipment.
4. Pharmaceuticals: Lithium is used as a mood stabilizer in the treatment of bipolar disorder.
5. Lubricants: Lithium is used in greases and lubricants due to its ability to reduce friction and wear.

In conclusion, lithium is a rare and highly reactive metal that has a wide range of industrial applications, particularly in the manufacture of rechargeable batteries, aerospace industry, glass and ceramics, pharmaceuticals, and lubricants.

-Source: The Hindu

Government Considers New Bank for MSME Lending

Context:

The government is evaluating a proposal to establish a separate bank dedicated to direct lending for micro, small, and medium enterprises (MSMEs). This initiative aims to enhance credit availability in this under-served sector, thereby stimulating economic activity and job creation.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. New Bank to Bridge Credit Gap for MSMEs
2. MSMEs in India
3. Significance of MSMEs and Problems Faced

New Bank to Bridge Credit Gap for MSMEs

Government Plans

• The government is setting up a separate bank to directly lend to micro, small, and medium enterprises (MSMEs).
• The ownership structure, potentially a public-private partnership model, is under consideration.

Current Scheme

• Small Industries Development Bank of India (SIDBI):
  • Established in 1990, SIDBI primarily refinances banks lending to MSMEs to lower financing costs.
  • Major shareholders include:
    • Government of India (20.85%)
    • State Bank of India (15.65%)
    • Life Insurance Corporation of India (13.33%)
    • National Bank for Agriculture and Rural Development (9.36%)
  • SIDBI obtains low-cost funds from banks that fall short of priority sector lending (PSL) targets.
  • Growth depends on scheduled commercial banks meeting their PSL targets.
• Additional Lending Entities:
  • State financial corporations
  • State industrial development corporations

Need for a New Bank

• Current Credit Penetration:
  • MSME credit penetration is 14% in India compared to 50% in the US and 37% in China.
• Credit Gap:
  • There is a Rs 25 trillion credit gap in the Indian MSME sector.
  • Outstanding credit to MSMEs expanded by 20.9% to Rs 26 trillion by December 2023.
• Challenges:
  • Inadequate, untimely, and costly finance hinders MSMEs’ growth.
  • Large banks often fail to understand MSMEs’ specific needs.

MSMEs in India

Economic Importance

• MSMEs are crucial to employment generation, exports, and overall economic growth.
• They account for over 11 crore jobs and contribute around 27% of India’s GDP.
• The sector includes around 6.4 crore MSMEs, with 1.5 crore registered on the Udyam portal.
• MSMEs employ 23% of the Indian labor force, making them the second-largest employer after agriculture.
• They contribute 38.4% of the total manufacturing output and 45.03% of the country’s total exports.

Significance of MSMEs and Problems Faced

Importance

• Labor-intensive sector promoting inclusive growth, financial inclusion, and innovation.
• Backbone of the Indian economy with over 110 million jobs (23% of the labor force).
• Contribute 27% to India’s GDP, 38.4% to manufacturing output, and 45% to total exports.

Challenges

• Dwarfs vs. Infant Firms:
  • Dwarf firms consume vital resources but contribute less to job creation and economic growth.
• Funding Sources:
  • 90% of MSME funding comes from informal sources.
• Technology Integration:
  • Adoption of big data, AI, and virtual reality (Industry 4.0) in manufacturing is still in its infancy.
• Cleantech Innovation:
  • The sector lacks cleantech innovation and entrepreneurship, which can promote energy efficiency and transition to a circular and low-carbon economy.

-Source: The Hindu

Patna High Court Strikes Down Reservation Quota Increase

Context:

Recently, the Patna High Court invalidated the Bihar government’s decision to raise the reservation quota from 50% to 65% for Backward Classes (BC), Extremely Backward Classes (EBC), Scheduled Castes (SC), and Scheduled Tribes (ST) in educational institutions and government jobs.

Relevance:

GS II: Polity and Governance

Dimensions of the Article:

1. High Court’s Ruling on Bihar Reservation Quota
2. Need for Extended Reservation in Bihar
3. Constitutional Provisions on Reservation
4. Reservation not a fundamental Right
5. Reservation Related Developments in India
6. Way Forward

High Court’s Ruling on Bihar Reservation Quota

Context:

• November 2023 Notification: Bihar government increased the reservation quota for deprived castes from 50% to 65%.
• Reason: Based on a caste-based survey highlighting the need for better representation of BC, EBC, SC, and ST communities.
• Legislation: Bihar Assembly passed the Bihar Reservation Amendment Bill to implement the 65% quota.

Legal Challenge:

• PIL Filed: Challenging the increase beyond the 50% cap.
• Patna High Court Ruling:
  • Violation: The 65% quota breached the 50% limit set by the Supreme Court in the Indira Sawhney case (1992).
  • Reasoning: The decision was based on population proportion rather than “adequate representation” in jobs.
  • EWS Quota: Adding the 10% Economically Weaker Sections (EWS) quota pushed the total reservation to 75%, deemed unconstitutional.

Need for Extended Reservation in Bihar:

Economic Indicators:

• Per Capita Income: Lowest in the country, below USD 800 per year (30% of national average).
• Fertility Rate: Highest in India, with only 12% urban population (national average is 35%).
• College Density: Lowest in India; 30% of population below the poverty line.

Demographic Representation:

• SC, STs, and Backward Classes: Constitute 84.46% of the population but underrepresented in jobs and education.

Proposed Measures for Improvement:

Education:

• RTE Forum Recommendations:
  • Enhance early childhood development (ICDS centers).
  • Improve teacher training.
  • Shift to interactive and technology-integrated learning methods.

Skill Development and Employment:

• Skill-Building Programs: Aligned with industry needs.
• Entrepreneurship Programs: Through SIPB (Single-window Investment Promotion Board) to attract businesses and create jobs.

Infrastructure:

• Irrigation Systems: Improve to handle floods and droughts.
• Transport Network: Develop robust connections between rural and urban areas.

Social Inclusion:

• Women’s Empowerment:
  • Focus on education, skill development, and financial inclusion.
  • Increase workforce participation and achieve social equality.
• Law Enforcement:
  • Stricter enforcement to combat social stratification.
  • Promote social harmony.

Constitutional Provisions on Reservation

• Article 16(4) empowers the state to make any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the state, is not adequately represented in the services under the state.
• By way of the 77th Amendment Act, a new clause (4A) was added to Article 16, empowering the state to make provisions for reservation in matters of promotion to Scheduled Caste/Scheduled Tribe employees if the state feels they are not adequately represented in services.

Reservation not a fundamental Right

• It is a settled law, time and again reiterated by the Supreme Court, that there is no fundamental right to reservation or promotion under Article 16(4) or Article 16(4 A) of the Constitution.
• Rather they are enabling provisions for providing reservation, if the circumstances so warrant (Mukesh Kumar and Another vs State of Uttarakhand & Ors. 2020).
• However, these pronouncements no way understate the constitutional directive under Article 46.
• Article 46 mandates that the state shall promote with special care the educational and economic interests of the weaker sections of the people and in particular SCs and STs.
• However such provisions resulted in the ever-evolving jurisprudence of affirmative action in public employment.

Reservation Related Developments in India

Mandal storm

• Reservation in employment which was otherwise confined to SC and STs got extended to new section called the Other Backward Classes (OBCs).
• This was the basis of the recommendations of the Second Backward Class Commission as constituted, headed by B.P. Mandal.
• The Mandal Commission (1980) provided for 27% reservation to OBC in central services and public sector undertakings.
• This was over and above the existing 22.5% reservation for SCs and STs, was sought to be implemented by the V.P. Singh Government in 1990.
• The same was assailed in the Supreme Court resulting in the historic Indra Sawhney Judgment.

Indra Sawhney case, 1992

• In its landmark 1992 decision in Indra Sawhney vs Union of India, the Supreme Court had held that reservations under Article 16(4) could only be provided at the time of entry into government service but not in matters of promotion.
• It added that the principle would operate only prospectively and not affect promotions already made and that reservation already provided in promotions shall continue in operation for a period of five years from the date of the judgment.
• On June 17, 1995, Parliament, acting in its constituent capacity, adopted the seventy-seventh amendment by which clause (4A) was inserted into Article 16 to enable reservation to be made in promotion for SCs and STs.

The Constitution (Seventy-seventh Amendment) Act, 1995

• In Indra Sawhney Case, the Supreme Court had held that Article 16(4) of the Constitution of India does not authorise reservation in the matter of promotions.
• However, the judgment was not to affect the promotions already made and hence only prospective in operation, it was ruled.
• By the Constitution (Seventy-seventh Amendment) Act, 1995, which, Article 16(4-A), was inserted.
• It aimed to provide the State for making any provision for reservation in matters of promotion to any class or classes of posts in the services under the State.
• This was to be in favour of the SCs and the STs which, in the opinion of the State, are not adequately represented in the services under the State.
• Later, two more amendments were brought, one to ensure consequential seniority and another to secure carry forward of unfilled vacancies of a year.

M. Nagaraj case, 2006

• The constitutional validity of Art 16(4A) was upheld by the Supreme Court in the M. Nagaraj v. Union of India 2006 case; however, State is not bound to make such reservations in promotions.
• If the states seek to make reservation in promotions, then it must collect quantifiable data on three parameters
• The backwardness of the class
• The inadequacy of the representation of that class in public employment;
• The general efficiency of service would not be affected

Jarnail Singh vs Lachhmi Narain Gupta case, 2018

• In Jarnail Singh vs Lachhmi Narain Gupta case of 2018, the Supreme Court held that reservation in promotions does not require the state to collect quantifiable data on the backwardness of the Scheduled Castes and the Scheduled Tribes.
• The court upheld the argument that once various caste groups were listed as SC/ST, this automatically implied they were backward.
• That judgment had, while modifying the part of the Nagaraj verdict which required States to show quantifiable data to prove the ‘backwardness’ of a Scheduled Caste/Scheduled Tribe community to provide quota in promotion in public employment, rejected the Centre’s argument that Nagaraj misread the creamy layer concept by applying it to SC/ST.

The Constitution (103rd Amendment) Act, 2019

• The 10% reservation for Economically Weaker Sections (EWS) other SCs, STs and backward classes for government jobs and admission in educational institutions.
• This is currently under challenge before the Supreme Court which has referred the same to a constitution bench.
• This was a critical milestone to specifically include economic backwardness without social backwardness as is traditionally seen.

 Dr. Jaishri Laxmanrao Patil vs Chief Minister (2021)

• Despite the Indra Sawhney ruling, there have been attempts on the part of many States to breach the rule by way of expanding the reservation coverage.
• The Maharashtra Socially and Educationally Backward Classes Act 2018, (Maratha reservation law) came under challenge before the Supreme Court.
• This case was referred to a bench of five judges to question whether the 1992 judgment needs a relook.
• Interestingly, the Supreme Court affirmed the Indra Sawhney decision, and struck down Section 4(1)(a) and Section 4(1)(b) of the Act which provided 12% reservation for Marathas in educational institutions and 13% reservation in public employment respectively.
• This judgment gave out a strong message that some State governments blatantly disregard the stipulated ceiling on electoral gains rather than any exceptional circumstances.

Way Forward

• Assessing Current Representation: It is essential to evaluate the present representation of SC/ST/OBCs at various levels and departments. This data will help set specific targets for fulfilling reservation quotas.
• Merit and Relaxation System: Advocate for a system that emphasizes merit while providing some relaxation in qualifying marks for SC/ST/OBC candidates in promotions. This ensures that qualified candidates from these communities have a better chance while maintaining acceptable competency standards.
• Addressing Concerns: Acknowledge the issues related to unqualified candidates being promoted due to reservations.
• Training and Mentorship: Propose robust training and mentorship programs for promoted SC/ST/OBC employees to bridge any skill gaps and ensure they excel in their new roles.
• Temporary Measure: Highlight that reservations are a temporary measure aimed at achieving long-term social justice and equal opportunity in promotions.
• Parallel Initiatives: Advocate for simultaneous initiatives that enhance education and access to resources for these communities, ultimately leading to a scenario where reservations might not be required.

-Source: The Hindu

Successful Launch of SVOM Satellite

Context:

A Long March 2-C rocket launched from southwestern China, carrying the French-Chinese satellite Space Variable Objects Monitor (SVOM). The launch was recently completed successfully, marking a significant milestone in international space collaboration.

Relevance:

GS III: Science and Technology

Space Variable Objects Monitor (SVOM)

Overview:

• SVOM is a collaborative satellite project between France and China, specifically designed to detect and study gamma-ray bursts (GRBs).
• It was launched using a Long March-2C rocket from the Xichang Satellite Launch Center in Sichuan Province, China.
• Weighing 930 kilograms, the satellite is equipped with four instruments, two French and two Chinese.
• Positioned in an orbit over 600 kilometers above Earth, SVOM is expected to have a primary operational life of five years, with the potential to function for up to 20 years.

Gamma-Ray Bursts (GRBs):

• GRBs typically occur following the explosion of massive stars, at least 20 times larger than the sun, or from the fusion of compact stars.
• These bursts emit extremely bright cosmic beams, releasing energy equivalent to that of over a billion billion suns.
• Observing GRBs is akin to “looking back in time” due to the prolonged duration it takes for the light to reach Earth.
• The gamma-ray rays from GRBs carry information about the gas clouds and galaxies they pass through, providing valuable data on the history and evolution of the universe.
• GRBs are challenging to observe because they can appear randomly in the sky and last only a few seconds, often getting absorbed by Earth’s atmosphere. Probes in space are essential for capturing these bursts.

Significance of SVOM:

• SVOM is poised to uncover several mysteries surrounding GRBs, particularly by detecting the most distant and earliest GRBs in the universe.
• The data collected by SVOM will assist in testing physical laws under extreme conditions not replicable on Earth, offering deeper insights into the universe’s dynamics.

-Source: The Hindu

Namaqualand

Context:

Scientists recently discovered the world’s oldest inhabited termite mounds along the Buffels River in Namaqualand, dating back 34,000 years.

Relevance:

GS III: Species in News

Overview of Namaqualand:

Geography and Location:

• Namaqualand is a desert region situated in southwestern Africa.
• It extends from the Karas region of Namibia in the north to the Northern Cape province of South Africa in the south.
• Spanning from the Namib Desert in the west to the Kalahari in the east, it covers an area of approximately 400,000 square kilometers.

Subdivisions:

• The Namibian section, located north of the Orange River, is often referred to as Great Namaqualand.
• The South African section, south of the Orange River, is known as Little Namaqualand.

Climate and Vegetation:

• Namaqualand is characterized by its arid climate, with succulents being the predominant vegetation for much of the year due to their ability to store water and endure drought conditions.
• Most of the region’s rainfall occurs in the winter. When sufficient rain falls, the area bursts into bloom with wildflowers for a brief period in the spring.

Cultural and Historical Significance:

• Traditionally, the Nama people inhabited this region before it came under German occupation in the 19th century.
• The region is rich in copper deposits, which the Nama people mined for hundreds of years.

Economic Aspects:

• In the early 1900s, diamonds were discovered in various parts of Namaqualand, including the Sperrgebiet in Namibia and the Richtersveld in South Africa.

-Source: The Hindu

Russell’s Viper

Context:

All health centres and hospitals in Bangladesh have been ordered to stock anti-venom after reports of an increase in people being bitten by snakes, especially by the Russell’s viper.

Relevance:

GS III: Species in News

Overview of Russell’s Viper:

General Information:

• Type: Highly venomous terrestrial snake.
• Family: Viperidae.
• Scientific Name: Daboia russelii.
• Named After: Patrick Russell, a Scottish herpetologist who first described many of India’s snakes in the 1790s.

Significance:

• One of the “big four” deadliest snakes in India, along with the Common krait (Bungarus caeruleus), Indian Cobra (Naja naja), and Saw-scaled viper (Echis carinatus).

Distribution:

• Found in India, Sri Lanka, Bangladesh, Nepal, Myanmar, Thailand, Pakistan, Cambodia, Tibet, China (Guangxi, Guangdong), Taiwan, and Indonesia.

Habitat:

• Preferred Areas: Open, grassy, or bushy areas.
• Also Found In: Second-growth forests (scrub jungles), forested plantations, and farmland.
• Avoids: Dense forests.

Behavior and Impact:

• Major Cause of Snake Bite Deaths: Common in farmlands with high human and rodent activity.
• Avoidance of Humans: Generally avoids human contact and does not actively seek to bite people.
• Bite Incidents: Most bites happen when humans accidentally step on or handle the snake.
• Fatalities: Often result from delayed medical treatment.

Physical Features:

• Length: Can grow up to 1.5 meters.
• Coloration: Distinctive reddish-brown spots outlined in black and white.
• Head: Wide, triangular with small, overlapping scales, large nostrils, and small eyes with vertical pupils.
• Activity: Mainly nocturnal, active as the sun fades.
• Behavior: Sedentary, often staying in one place for several days unless disturbed.

Conservation Status:

• IUCN Red List: Least Concern.

-Source: The Hindu