Context

• The growth of international trade has underscored the importance of effective regulation to address the complex challenges of cross-border insolvency.
• A predictable insolvency framework is essential for developing economic stability, attracting foreign investments, and enabling corporate restructuring.
• However, India’s historical and current approaches to insolvency law have struggled to address cross-border complexities 

Historical Evolution of Insolvency Laws in India

• Colonial Era
  • The Indian Insolvency Act of 1848 was the country’s first insolvency law, followed by the Presidency-Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920.
  • While these laws provided a structure for managing domestic insolvencies, they were ill-equipped to handle cross-border cases, leaving a critical gap in the legal system.
• Post-Independence
  • Post-independence, these laws remained largely unchanged despite recommendations from the Third Law Commission in 1964 for modernisation.
  • It was only in the 1990s, driven by economic liberalization and globalisation, that the need for a comprehensive insolvency law, including provisions for cross-border cases, gained national attention.
  • Committees like the Eradi Committee (2000), Mitra Committee (2001), and Irani Committee (2005) advocated for the adoption of the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency, 1997.
• Introduction of the Insolvency and Bankruptcy Code (IBC)
  • The Insolvency and Bankruptcy Code (IBC), introduced in 2016, marked a significant step forward, focusing on domestic insolvency.
  • However, despite the inclusion of Sections 234 and 235 to address cross-border insolvency, these provisions remain dormant due to the lack of reciprocal agreements and government notification, rendering them legally unenforceable.

Challenges in India's Existing Cross-Border Insolvency Framework

• Dormant Provisions in the IBC
  • Sections 234 and 235 of the IBC, introduced to manage cross-border insolvency cases, have been rendered ineffective due to their dormant status.
  • Section 234 allows the Indian government to enter into reciprocal agreements with foreign countries to enforce insolvency resolutions, while Section 235 outlines the procedure for seeking cooperation from foreign courts through letters of request.
  • However, these provisions are yet to be operationalised because of two primary issues:
    • India has not established reciprocal arrangements with any foreign jurisdiction. These agreements are vital for enabling mutual recognition and enforcement of insolvency proceedings.
    • Without such agreements, the implementation of Section 234 remains impractical.
  • Sections 234 and 235 have not been notified by the government, rendering them legally unenforceable.
  • This inaction has left a critical gap in India's insolvency framework, forcing courts and stakeholders to rely on ad hoc solutions.
• Judicial Challenges
  • Limited Powers of the NCLT
    • The National Company Law Tribunal (NCLT) is the primary adjudicating authority for insolvency matters under the IBC.
    • However, it lacks the power to recognise or enforce foreign insolvency judgments. This limitation hampers its ability to address cross-border insolvency comprehensively.
    • Additionally, Rule 11 of the NCLAT Rules, 2016, which could allow the NCLT to exercise inherent jurisdiction and facilitate comity with foreign courts, has not been implemented for IBC matters.
  • Dependence on Ad Hoc Protocols
    • In the absence of a formal framework, Indian courts have resorted to ad hoc cross-border insolvency protocols.
    • While these have been helpful in individual cases, such as Jet Airways (India) Limited vs. State Bank of India (2019), they are temporary solutions.
    • These protocols increase the judicial burden, elevate transaction costs, and delay resolutions, often reducing the value of a debtor’s assets.
  • Outdated Communication Mechanisms
    • Communication between Indian and foreign courts in insolvency matters is inefficient and outdated.
    • Traditional methods of issuing letters of request lack the transparency and speed required for resolving complex cross-border cases.
    • This creates additional delays, increasing uncertainty for stakeholders.
• Regulatory and Legislative Shortcomings
  • Unclear Framework for Recognition of Foreign Proceedings
    • Unlike countries that have adopted the UNCITRAL Model Law on Cross-Border Insolvency, India does not have a clear mechanism for recognising foreign insolvency proceedings.
    • This results in inconsistent judicial decisions, as courts often rely on discretionary powers or general principles of comity.
  • Inadequate Coordination with Foreign Jurisdictions
    • Cross-border insolvency cases often require seamless coordination between domestic and foreign jurisdictions.
    • However, India's lack of a structured framework for judicial cooperation undermines the efficiency and fairness of insolvency proceedings.

Case Study: State Bank of India vs. Jet Airways (India) Limited (2019)

• The Jet Airways case is a landmark example of the challenges posed by India’s inadequate cross-border insolvency framework. The NCLT highlighted two major issues:
• The absence of a reciprocal agreement between India and the Netherlands made it impossible to enforce insolvency proceedings in the latter jurisdiction.
• Sections 234 and 235, which could have addressed these issues, were deemed “dead letters” due to their non-operational status.
• Although an ad hoc cross-border insolvency protocol was developed to coordinate proceedings between Indian and Dutch administrators, this solution was neither sustainable nor efficient. 

Recommendations for Reform

• Adopting the UNCITRAL Model Law:
  • The model law offers a structured and internationally recognised framework for managing cross-border insolvencies.
  • Its adoption would enhance predictability, improve efficiency, and strengthen investor confidence in India’s insolvency regime.
• Modernising Judicial Communication
  • Outdated communication methods between Indian and foreign courts hinder the resolution of cross-border insolvency cases.
  • Implementing the Judicial Insolvency Network (JIN) Guidelines (2016) and its Modalities of Court-to-Court Communication (2018) would modernise judicial coordination, enhance transparency, and streamline cross-border insolvency proceedings.
• Expanding the Powers of the NCLT
  • Section 60(5) of the IBC restricts civil courts from exercising jurisdiction over insolvency matters, making the NCLT the sole adjudicating authority.
  • However, the NCLT lacks the authority to recognize or enforce foreign judgments, limiting its effectiveness.
  • Expanding the NCLT’s powers and implementing Rule 11 of the NCLAT Rules, 2016, would enable it to address cross-border insolvency issues comprehensively.

Conclusion

• India’s economic integration with the global market necessitates a robust cross-border insolvency framework.
• While the IBC has laid a strong foundation for managing domestic insolvencies, its limitations in addressing cross-border cases remain a significant challenge.
• Adopting the UNCITRAL Model Law, modernising judicial communication, and empowering the NCLT are crucial steps toward bridging this gap.

Why in news?

China has approved the construction of the world’s largest hydropower project on the Yarlung Tsangpo river in Tibet, with a capacity of 60,000 MW, three times that of the Three Gorges Dam.

The river flows into Arunachal Pradesh as the Siang, into Assam as the Brahmaputra, and then into Bangladesh before reaching the Bay of Bengal.

The project is expected to have a significant impact on the livelihoods, ecology, and water availability for millions downstream.

India has consistently expressed concerns to China about such projects, emphasizing the need for transparency and consultation to protect downstream states’ interests.

What’s in today’s article?

• Yarlung Tsangpo Project
• Specific concerns for India
• Existing coordination mechanism on transboundary rivers between India and China
• Options available to India

Yarlung Tsangpo Project

• About
  • The Yarlung Tsangpo hydropower project is set to be the world’s largest hydropower project, planned at the "Great Bend" of the river in Medog county, Tibet, where it makes a U-turn before entering Arunachal Pradesh.
  • The project is part of China’s 14th Five-Year Plan (2021-2025).
• Location and Planning Stage
  • According to experts, the project’s location has been strategically chosen. Recent activities, including funding allocation, construction of smaller dams, and changes in upstream land use, suggest the project is in an advanced planning phase, with visible construction expected soon.
• China's Goals for the Yarlung Tsangpo Project
  • China aims to use the Yarlung Tsangpo project to reduce reliance on conventional energy sources and achieve net carbon neutrality by 2060.
  • The river’s steep descent from the mountains provides an ideal flow rate for hydroelectricity generation, making it a prime location for such a mega project.
• Scale of China's Dams and Environmental Concerns
  • China’s recent dams, including the Three Gorges Dam, highlight the massive scale of its hydropower ambitions.
  • However, these projects have raised significant environmental concerns.
  • The Three Gorges Dam, for instance, has altered gravity anomaly maps due to the immense weight of stored water, caused severe ecological impacts, and even triggered earthquakes.
  • Additionally, over a million people were displaced due to changes in river morphology.
  • The Yarlung Tsangpo project could replicate these environmental and social risks on a larger scale, posing significant challenges for downstream regions.

Specific concerns for India

• Impact on Water Flow to India
  • The proposed dam could significantly affect water flow from China to India, a lower riparian state, as most of the water in the Brahmaputra system originates in Tibet.
  • Any alteration in water flow could disrupt agriculture and water availability in India.
• Interruption of Silt and Biodiversity
  • Large dams often block the flow of silt, essential for agriculture, and cause changes in river flow, adversely affecting local biodiversity.
  • These disruptions could have long-term ecological and agricultural consequences for the region.
• Earthquake-Prone and Fragile Ecology
  • The region is one of the most ecologically fragile and earthquake-prone areas in the world.
  • A large dam in this zone increases the risk of catastrophic events.
  • For instance, the 2004 Parechu Lake landslide in Tibet, which later burst in 2005, highlights the dangers of water accumulation in unstable regions, despite timely coordination to mitigate damage.
• Need for Coordination and Concerns Over Cooperation
  • Effective coordination and real-time exchange of information between countries are crucial to prevent disasters.
  • However, China has shown reluctance to cooperate with lower riparian states like India.
  • Similar concerns have been observed in the Mekong river basin, where China’s 12 large dams have negatively impacted downstream nations.

Existing coordination mechanism on transboundary rivers between India and China

• India and China have several agreements for cooperation on transboundary rivers:
  • Umbrella MoU (2013): Covers overall cooperation on transboundary rivers and has no expiry date. However, no activity is currently being undertaken under this agreement.
  • Brahmaputra MoU: Signed for data sharing and renewable every five years. It lapsed in 2023, and its renewal is under process via diplomatic channels.
  • Sutlej MoU: Initiated after the 2004 Parechu Lake incident but does not provide year-round data. This MoU is also pending renewal.
• Expert Level Mechanism (2006)
  • This mechanism facilitates annual meetings between India and China to discuss transboundary river issues.
  • However, interruptions have occurred in recent years.
• Challenges in Cooperation
  • China has been reluctant to share data consistently, with interruptions noted during the 2017 Doklam crisis and the 2020 Ladakh standoff.
• International Framework
  • While neither India nor China is a signatory to the 1997 UN Convention on the Law of the Non-Navigational Uses of International Watercourses, both countries abide by its key principles.
  • These include equitable and reasonable water use and ensuring that actions of one country do not significantly harm another.
• Need for Enhanced Cooperation
  • Given the limited avenues of coordination and the potential risks posed by mega projects like the Yarlung Tsangpo dam, robust mechanisms and renewed agreements are critical for preventing disputes and ensuring regional stability.

Options available to India

• Limited Scope of Understanding
  • India and China have a narrow and limited understanding when it comes to transboundary river issues.
  • China has been unwilling to agree to any commitments that could address India’s concerns comprehensively.
• China’s Standard Response
  • China often claims its hydropower projects are run-of-the-river, implying minimal water impounding and limited downstream impact.
  • However, India views these assertions sceptically.
• India’s Need for Public Challenges
  • India must challenge China’s statements, including the recent claim that the Tsangpo mega dam would have no downstream impacts.
  • Without publicly countering such narratives, these projects could become faits accomplis, creating long-term challenges for India.
• Honest Dialogue and Dissuasion
  • India should push for an honest dialogue with China and attempt to dissuade them from pursuing large-scale projects like the Tsangpo mega dam.
• Elevating Water as a Key Issue
  • Water-related concerns should become a significant focus in India’s engagement with China.
  • India needs to clearly convey that disregarding its interests and concerns will negatively impact bilateral relations.

Why in news?

Five years after the Transgender Persons (Protection of Rights) Act, 2019 was enacted, the Karnataka High Court intervened to allow a transgender woman to change her name and gender on her birth certificate.

This step was necessary as she was earlier denied the change, despite such provisions being explicitly allowed under the 2019 Act and its rules.

What’s in today’s article?

• Transgender Persons (Protection of Rights) Act, 2019
• Background of the case
• Karnataka HC's Ruling
• Application Process for Certificate of Identity

Transgender Persons (Protection of Rights) Act, 2019

• About
  • The act allows transgender individuals to obtain a "certificate of identity" (Section 6) and revise it after sex-reassignment surgery (Section 7).
  • The Act mandates that gender recorded on this certificate must appear on all official documents.
  • It also explicitly permits changing the first name and gender in the birth certificate and other identity documents based on this certificate.
• Rules and Procedures Under the 2020 Rules
  • The Transgender Persons (Protection of Rights) Rules, 2020 outline the procedure for obtaining the certificate and include a list of official documents eligible for revision, with the "Birth Certificate" as the first entry.

Background of the case

• Ms. X vs. State of Karnataka (2024)
  • In X vs. State of Karnataka (2024), the petitioner, diagnosed with gender dysphoria, underwent sex-reassignment surgery and changed her name to align her official documents with her gender identity.
  • She successfully updated her Aadhaar card, driving license, and passport but faced rejection when applying to change her name and gender on her birth certificate.
• Registrar’s Rejection
  • The Registrar of Births and Deaths in Mangalore denied her request, citing Section 15 of the Registration of Births and Deaths Act, 1969.
  • The provision permits changes to birth certificates only if the information is "erroneous" or entered "fraudulently or incorrectly."
• Challenge in Karnataka High Court
  • The petitioner challenged the restrictive interpretation of Section 15, arguing that it curtailed her right to life with dignity under Article 21 of the Constitution.
  • She emphasized that inconsistent documentation creates a “dual life,” exposing her to harassment and discrimination.
• State's Argument
  • The Karnataka government maintained that the Registrar was bound by the limitations of the 1969 Act, which does not explicitly allow changes for reasons like gender identity updates.

Karnataka HC's Ruling

• Conflict Between the 1969 Act and the 2019 Act
  • The Registration of Births and Deaths Act, 1969 restricts changes to birth certificates to cases of “erroneous,” “fraudulent,” or “incorrect” entries (Section 15).
  • However, the Karnataka HC found this general law to be in conflict with the Transgender Persons Act, 2019, a special law aimed at protecting transgender rights.
• Legal Principle: Special Law Prevails Over General Law
  • The HC applied the principle of generalia specialibus non-derogant ("the special shall prevail over the general"), holding that the specific provisions of the 2019 Act override the general provisions of the 1969 Act.
  • This interpretation ensures that the broader objectives of the 2019 Act are not obstructed by older general laws.
• HC's Ruling
  • The Karnataka HC directed the Registrar to recognize certificates issued under the Transgender Persons Act and update birth certificates with the revised name and gender identity.
  • The court also emphasized that this must be followed “until suitable amendments are made to the 1969 Act.”

Application Process for Certificate of Identity

• Application Process
  • Under the Transgender Persons Rules, individuals must file an application with the District Magistrate (DM) along with an affidavit declaring their gender identity.
  • The DM will process the affidavit and issue an identification number as proof of application.
  • Within 30 days, the DM will either issue the certificate of identity and a transgender identity card or reject the application with reasons.
• Revised Certificate for Post-Surgery Applicants
  • Transgender individuals who undergo reassignment surgery can request a medical certificate from the Medical Superintendent or Chief Medical Officer.
  • Using this medical certificate, they can reapply to the DM for a revised certificate of identity, which must be issued within 15 days.
• Exemption for Pre-Act Changes
  • Individuals who recorded a change in gender before the Act came into force are not required to apply for a certificate of identity under the Act.
• Obligation to Update Official Documents
  • Authorities responsible for issuing official documents (e.g., Aadhaar, driving license, birth certificate) must update the name, gender, photograph, or any related information within 15 days of receiving an application from a transgender person with a valid certificate of identity.

What’s in Today’s Article?

• Introduction (Context, About USDISE+)
• Key Highlights of the Report by USDISE (Basic Amenities, Challenges, etc.)
• Conclusion

Introduction:

• The latest data from the Unified District Information System for Education Plus (UDISE+) highlights critical aspects of India’s school infrastructure and enrolment trends.
  • UDISE+ is one of the largest Management Information Systems initiated by Department of School Education and Literacy, Ministry of Education.
• These findings shed light on both improvements and persistent challenges in the education system.

Single-Teacher and Zero Enrolment Schools:

• The number of single-teacher schools in India has decreased from 1,18,190 in 2022-23 to 1,10,971 in 2023-24, marking a reduction of 7,219 schools.
• This decline has also been accompanied by a drop in student enrolment in these schools, which fell from 47.43 lakh to 39.94 lakh over the same period.
• On the other hand, the number of schools with zero enrolments has seen a worrying increase.
• From 10,294 schools in 2022-23, the count rose to 12,954 schools in 2023-24, an increase of 2,660 schools. States such as West Bengal (3,254 schools), Rajasthan (2,167 schools), and Telangana (2,097 schools) report the highest numbers.
• Officials attribute this phenomenon to the possibility of schools awaiting new batches of students; however, if enrolment fails to resume, these schools risk closure.

Basic Amenities in Schools:

• Among India’s 14.71 lakh schools, infrastructural gaps remain evident:
• Electricity:
  • 1.52 lakh schools still lack functional electricity.
  • Government schools account for the majority, with 9.12 lakh out of 10.17 lakh government schools having functional electricity.
• Drinking Water:
  • While 14.47 lakh schools claim to have drinking water facilities, only 14.11 lakh have them functional.
  • Approximately 24,580 schools lack any drinking water facility.
• Toilets:
  • Of 14.71 lakh schools, 14.50 lakh have toilets, but 14.04 lakh are functional.
  • Government schools constitute the majority of the 67,000 schools operating without functional toilets.
• Access for Differently-Abled Students:
  • Only 33.2% of government schools have disabled-friendly toilets, and of these, only 30.6% are functional.
  • 77% of schools have ramps, but just 52.3% have ramps with handrails, limiting accessibility.
• Technology & Co-Curricular Activities:
  • 50% of schools lack access to functional computers for teaching.
  • Only 17.5% of schools have dedicated arts and crafts rooms, with government schools lagging further at 9.9%.
  • Among schools with secondary sections, only 1.6 lakh out of 2.86 lakh have integrated science laboratories.
• Renewable Energy Adoption:
  • The uptake of solar panels in schools is minimal, with only 1.54 lakh schools (10.5%) equipped with solar energy systems.
  • Government schools fare worse, with only 8.8% (89,746 schools) having installed solar panels.
• Regional Disparities:
  • Madhya Pradesh leads in the number of single-teacher schools (13,198), followed by Andhra Pradesh (12,611).
  • West Bengal has the highest number of schools with zero enrolments, a trend that raises concerns about the viability of these institutions.

Conclusion:

• While there have been some improvements, such as the decline in single-teacher schools, challenges like the rise in zero-enrolment schools, lack of basic amenities, and inadequate facilities for differently-abled students continue to persist.
• Addressing these issues requires a focused approach involving infrastructure upgrades, increased teacher deployment, and better accessibility measures to ensure quality education for all.
• The UDISE+ data serves as a vital tool to identify gaps and shape policies aimed at transforming India’s educational landscape.

Why in News?

The Government of India released the draft Digital Personal Data Protection Rules, 2025, under the Digital Data Protection Act, 2023, outlining provisions for data privacy, compliance, and processing mechanisms.

What’s in Today’s Article?

• Major Provisions of the Draft Rules
• Industry and Expert Reactions
• Penalties and Enforcement
• Conclusion

Major Provisions of the Draft Rules:

• Parental consent for children's data:
  • Verification required: Social media and online platforms must obtain verifiable parental consent before children create accounts.
  • Identity validation: Parents' age and identity must be validated through government-issued identity proof.
  • Exception: Health, mental health establishments, education institutions, and daycare centers are exempt from this requirement.
• Role and responsibilities of data fiduciaries:
  • Definition of data fiduciaries:
    • Entities collecting and processing personal data are categorised as "Data Fiduciaries."
    • Significant Data Fiduciaries (SDFs) are those processing high volumes or sensitive data, impacting national sovereignty, security, or public order.
  • Data retention: Data can only be retained for the duration of consent and must be deleted afterward.
  • Security measures: Fiduciaries must ensure encryption, access control, and monitoring for unauthorised access.
• Consent management:
  • Consent managers: Entities entrusted to manage consent records must comply with robust verification processes.
  • Grievance redressal: Data fiduciaries must establish mechanisms to address grievances and allow withdrawal of consent.
• Data localisation:
  • Reintroduction: Localisation mandates restrict transferring certain personal and traffic data outside India.
  • Oversight: A government-formed committee will determine the categories of data restricted from cross-border transfer.
• Data breach reporting:
  • Intimation obligations: In case of a breach, fiduciaries must inform affected users and the Data Protection Board promptly, detailing its nature, timing, and mitigation measures.
  • Uniform treatment of breaches: No differentiation between minor and major breaches; all require reporting.
• Safeguards for government data processing:
  • Lawful processing: Government agencies must process citizen data lawfully, with specific safeguards outlined to address concerns over exemptions for national security and public order.

Industry and Expert Reactions:

• Compliance challenges:
  • Complex consent management: Maintaining consent records and ensuring opt-out mechanisms may require redesigning existing platforms and systems.
  • Infrastructure investments: Organisations need to overhaul data collection, storage, and lifecycle practices to comply with the rules.
• Ambiguity in security standards: Experts have raised concerns about the lack of detailed guidance on security practices, potentially leading to varied interpretations.
• Data localisation controversy: Global tech giants like Meta and Google have expressed concerns over the implications of data localisation on service delivery.

Penalties and Enforcement:

• Fines: Non-compliance with safeguards or failure to prevent data breaches can attract penalties of up to Rs 250 crore.
• Consent manager violations: Repeat violations by consent managers may lead to suspension or cancellation of their registration.

Conclusion:

• The draft Digital Personal Data Protection Rules, 2025, aim to strengthen India’s data privacy framework while addressing challenges for businesses and individuals.
• The reintroduction of data localisation and emphasis on consent management mark significant developments, but clarity on implementation and compliance mechanisms remains crucial.

Context

• Cash transfers have long been part of social protection schemes across the globe, designed to address specific challenges like poverty, health access, and education.
• India’s National Social Assistance Programme (NSAP), one of the oldest cash transfer initiatives, exemplifies this by providing pensions to vulnerable populations such as the elderly, widowed, and disabled.
• However, recent trends reveal that cash transfers have evolved from targeted safety nets to political tools used as a panacea for a wide array of social and economic challenges.
• While they have gained popularity among political parties, their efficacy in addressing underlying issues remains questionable.

The Rise of Cash Transfers in Indian Politics

• In recent years, cash transfer schemes have become a favoured strategy for political parties to secure electoral success.
• For instance, incumbent governments in Maharashtra and Jharkhand successfully utilised cash transfer schemes targeted at women voters, contributing significantly to their re-election.
• Similarly, states like Telangana and Odisha adopted cash transfers to address agrarian distress, a model later expanded by the central government through the PM-KISAN scheme in 2019.
• These schemes have since been extended to tackle unemployment, with several states implementing or promising direct financial assistance for the unemployed.
• The appeal of cash transfers lies in their simplicity and immediacy.
• With the expansion of financial inclusion, these schemes are easy to implement and provide direct, tangible benefits to voters, bypassing bureaucratic inefficiencies and middlemen.
• Additionally, their fungible and unconditional nature makes them highly attractive to beneficiaries.
• For politicians, they offer a direct connection with the electorate, enhancing their popularity and electoral prospects.

Arguments Against the Cash Transfer Policy: The Problematic Assumptions

• Cash Transfers Solve Root Problems
  • A prevalent belief is that direct financial assistance can effectively resolve issues like poverty, unemployment, and agrarian distress.
  • However, this assumption overlooks the multi-dimensional nature of these problems.
  • Poverty, for instance, is influenced by factors such as lack of education, inadequate healthcare, and limited access to infrastructure.
  • Similarly, agrarian distress arises from systemic challenges, including outdated farming techniques, volatile markets, and inadequate policy support.
  • Cash transfers provide temporary relief but fail to address the structural issues underlying these crises.
• Universality Equals Effectiveness
  • Another flawed assumption is that cash transfers, being fungible and universal, inherently meet the diverse needs of beneficiaries.
  • While their unconditional nature provides flexibility, it also limits their capacity to address specific issues effectively. For example, a farmer receiving cash under an agrarian distress scheme might use it for immediate household expenses rather than investing in agricultural inputs or modern equipment.
  • Similarly, unemployed youth might use funds for consumption rather than skill development or entrepreneurship.
  • The universal application of cash transfers disregards the varied and nuanced needs of different demographic groups.
• Cash Transfers Bypass Bureaucratic Inefficiencies
  • While cash transfers do circumvent some layers of bureaucracy and reduce the role of intermediaries, they are not immune to implementation challenges.
  • Issues such as exclusion errors, where eligible beneficiaries are left out, and inclusion errors, where ineligible individuals receive benefits, are common.
  • These errors undermine the fairness and effectiveness of such schemes.
  • Additionally, the dependence on robust financial infrastructure and digital literacy excludes marginalised populations, particularly in rural areas where access to banking services remains limited.
• Political Success Equals Policy Success
  • Perhaps the most problematic assumption is the conflation of political and policy success.
  • The electoral gains achieved through cash transfers are often seen as evidence of their effectiveness.
  • However, this ignores the broader metrics of success, such as improvements in human development indicators, economic growth, or social equity.
  • Political parties focus on the immediate popularity boost from cash transfers without evaluating their long-term impact or sustainability.

Arguments Supporting the Cash Transfer Policy

• Empowering Women Through Direct Transfers
  • India’s performance in global indices of gender equality reveals a stark reality.
  • Ranked 129 out of 146 countries in the 2023 Global Gender Gap report, India has seen a declining trend in women’s workforce participation despite robust economic growth.
  • Direct cash transfers to women have shown promise in dismantling barriers to education, employment, and dignified living.
  • For instance, the Delhi government’s 2019 initiative of free bus rides for women resulted in a 24% increase in employment among women from marginalized communities, as reported in a 2023 independent study.
  • This program illustrates how targeted subsidies can empower women by providing affordable mobility, a critical factor in accessing work and education.
• Broader Impact on Society
  • Over the last decade, the Delhi government has introduced multiple subsidies, such as free electricity and water, aimed at enhancing the quality of life for lower- and middle-income groups.
  • These measures not only act as social safety nets but also stimulate economic demand by boosting purchasing power.
  • Contrary to fears of misuse, global evidence suggests that beneficiaries of cash transfers prioritise essential expenses such as nutrition, education, and healthcare.
  • A study across 119 developing countries found recipients of unconditional cash assistance programs improved their quality of life significantly, underscoring the utility of such schemes in addressing poverty and inequality.
• Balancing Welfare with Development
  • The concern that welfare schemes might divert resources from critical investments in infrastructure and human capital is valid but context-dependent.
  • The Delhi Model provides an instructive case. Approximately 40% of its annual budget is allocated to health and education, leading to significant improvements in these sectors.
  • Delhi now boasts some of the best government schools and public healthcare systems in India.
  • Simultaneously, the state has made significant strides in infrastructure development, from doubling the Delhi Metro’s length to expanding green mobility through e-buses.
  • These achievements demonstrate that welfare schemes and developmental investments can coexist, provided there is prudent fiscal management.

Way Forward: Rethinking the Assumptions

• The problematic assumptions underpinning the over-reliance on cash transfers highlight the need for a paradigm shift in policy design.
• Cash transfers should be viewed as one component of a broader strategy, complementing investments in infrastructure, education, healthcare, and social services.
• Policymakers must recognise that sustainable solutions require time, effort, and collaboration across stakeholders.
• Without addressing these flawed assumptions, cash transfers risk becoming a superficial fix rather than a transformative tool for development.

Conclusion

• While cash transfers have their merits, their overuse as a political tool risks undermining the very objectives they aim to achieve.
• The need of the hour is a more balanced understanding of the role of cash transfers in social welfare.
• Rather than being viewed as quick-fix solutions, they should be integrated into broader strategies aimed at strengthening social safety nets and addressing systemic issues.
• This requires prioritising investments in critical sectors and designing interventions that go beyond electoral gains to achieve sustainable development outcomes.

Why in news?

The Uttarakhand government on December 8 inaugurated the winter Char Dham circuit, aimed at drawing tourists to the state in the off-season winter months.

What’s in today’s article?

• Char Dham: Sacred Shrines of the Garhwal Himalayas
• Char Dham All Weather Highway Development Project
• Promoting Winter Char Dham Tourism
• Various Concerns
• Recommendations and Actions

Char Dham: Sacred Shrines of the Garhwal Himalayas

• The Revered Char Dham Shrines
  • Located in Uttarakhand’s Garhwal Himalayas, the Char Dham comprises Gangotri, Yamunotri, Kedarnath, and Badrinath.
  • These shrines attract lakhs of pilgrims annually from May to November, contributing significantly to the state’s economy.
• Winter Inaccessibility and Alternate Seats
  • Heavy snowfall during winter makes the shrines inaccessible, leading to their seasonal closure.
  • Deities are relocated to lower-altitude winter seats:
    • Gangotri: Mukhba, Uttarkashi
    • Yamunotri: Kharsali, Uttarkashi
    • Kedarnath: Omkareshwar Temple, Ukhimath, Rudraprayag
    • Badrinath: Pandukeshwar, Chamoli

Char Dham All Weather Highway Development Project

• It is a highway expansion project to widen 889 km of hill roads to provide all-weather connectivity in the Char Dham circuit.
• The project, envisaged in 2016, covers Uttarakhand’s four major shrines — Badrinath, Kedarnath, Gangotri and Yamunotri — in the upper Himalayas.
• 

Promoting Winter Char Dham Tourism

• Off-season tourism
  • Winter Char Dham attracts pilgrims during the off-season to boost tourism.
  • As of December 30, 15,314 pilgrims visited the winter shrines, with Omkareshwar Temple receiving the highest footfall (6,482), followed by Pandukeshwar (5,104), Mukhba (3,114), and Kharsali (614).
• Changing Uttarakhand’s Image
  • Beyond a Summer Destination
    • The winter Char Dham aims to position Uttarakhand as a year-round destination.
    • Tourists are encouraged to explore lesser-known spots near the winter abodes of the Char Dham shrines.
  • ‘Sun Tourism’ Initiative
    • Leveraging clear skies and fresh air during North India’s smog-filled winters, the state seeks to attract visitors.
    • The initiative is expected to boost the state’s economy and reinvigorate tourism in the off-season.
  • Economic Significance of Char Dham
    • The Char Dham generates over Rs 200 crore daily for Uttarakhand’s economy during the pilgrimage season.
    • Winter tourism is yet to see substantial growth, but officials are optimistic about increased footfall as the season progresses.

Various Concerns

• Impact of Overcrowding and Commercialisation
  • Unchecked increase in pilgrimage numbers leads to overcrowding, environmental degradation, and the commercialisation of sacred sites.
  • Strain on local infrastructure and fragile ecosystems disrupts the sanctity of holy places.
• Winter Wildlife Disturbance
  • Winter traffic affects rare and threatened wildlife like snow leopards and mountain sheep, as they descend to lower altitudes for food and water.
  • Shy animals face disruptions due to human presence in sensitive areas.
• Harsh Terrain and Weather Risks
  • Safety, security, and public health are key concerns for pilgrims during harsh winter conditions in Uttarakhand’s mountainous regions.

Recommendations and Actions

• Sustainable Yatra Management
  • A sustainable approach is needed to balance pilgrimage with environmental preservation.
  • Proper management can mitigate the negative impacts of increased footfall.
• Carrying Capacity Assessment
  • The National Green Tribunal instructed the state to ascertain the Char Dham’s carrying capacity.
  • The Uttarakhand Pollution Control Board has engaged the Wildlife Institute of India to study and report on this within a year.

Why in news?

Air India has become the first Indian airline to offer Wi-Fi internet connectivity on select domestic and international flights. Initially, the service will be free on select domestic flights during a limited introductory period, with plans to expand to other aircraft in the fleet.

What’s in today’s article?

• Air India Expands Wi-Fi Services to Domestic Flights
• Technologies Behind In-Flight Connectivity
• How In-Flight Wi-Fi Works?
• Costs and Challenges of Installing In-Flight Wi-Fi

Air India Expands Wi-Fi Services to Domestic Flights

• Air India will now offer Wi-Fi connectivity on its Airbus A350, Boeing 787-9, and select Airbus A321neo aircraft.
• These aircraft, including those inherited from Vistara after their merger in November 2024, are equipped with the necessary hardware to provide onboard internet.
• Previously, Vistara offered this service on select international flights via Nelco and Panasonic Avionics Corporation, a collaboration now extended to Air India’s domestic flights.
• Passengers can access Wi-Fi by enabling it on their devices, connecting to the 'Air India Wi-Fi' network, and entering their PNR and last name on the redirected portal.
• This rollout, initially part of a pilot program on international flights, represents a significant step in Air India's ambition to enhance passenger experience and align with global standards.

Technologies Behind In-Flight Connectivity

• Ground-Based Cellular Towers (Air-to-Ground Technology)
  • Utilizes antennae, typically mounted on the aircraft’s belly, to connect with nearby ground towers.
  • Functions similarly to how devices access wireless internet on the ground.
  • Offers stable connectivity unless the aircraft flies over large water bodies, deserted land, or areas with sparse cellular towers.
  • Limited by the availability of ground towers.
• Satellite-Based Connectivity
  • Internet is transmitted from ground stations to aircraft via satellites, using antennae on top of the aircraft.
  • Provides broader coverage, especially over regions without ground towers, such as oceans or remote areas.
  • Increasingly popular due to its wider and more reliable coverage.

How In-Flight Wi-Fi Works?

• 
• Signal Transmission Inside the Aircraft
  • Passengers’ devices connect to multiple Wi-Fi antennae located in the cabin.
  • Signals are sent from these antennae to an onboard server.
  • This process is common for both ATG and satellite-based systems.
• Satellite-Based Connectivity Process
  • Signals from the onboard server are transmitted via an antenna on top of the aircraft to a satellite.
  • The satellite relays the signals to a ground station/teleport.
  • Response signals follow the reverse path back to the aircraft through the satellite.
• Air-to-Ground (ATG) Connectivity Process
  • Signals from the onboard server are directly sent to ground cellular towers using an antenna beneath the aircraft.
  • Towers respond by transmitting signals back to the aircraft.
• Speed Limitations and Future Developments
  • In-flight Wi-Fi is slower than ground internet, but advancements in technology are gradually improving its speed and reliability.

Costs and Challenges of Installing In-Flight Wi-Fi

• Equipment Installation Costs
  • Airlines face high initial costs to install antennae on aircraft.
  • Retrofitting older planes can disrupt operations, making installation on new aircraft more practical.
  • Air India's $400-million retrofit programme presents an opportunity to equip older planes with Wi-Fi as part of the overhaul.
• Existing Wi-Fi-Enabled Aircraft
  • Air India’s current Wi-Fi-enabled planes are newer models, already equipped with the necessary hardware, unlike its older legacy fleet.
• Global Practices for Onboard Wi-Fi
  • Many airlines offer a small volume of free Wi-Fi before charging customers for data packs, which are often expensive.
  • Some provide free or unlimited Wi-Fi to loyalty programme members, as well as business and first-class passengers.
• Air India’s Current Approach
  • Air India is offering free Wi-Fi for a limited introductory period but has not disclosed when charges will apply.
• Future Revenue Potential
  • Growing demand for in-flight Internet positions it as a lucrative ancillary revenue stream.
  • Complimentary Wi-Fi for economy class passengers is unlikely to become a widespread practice in the near to medium term due to high installation costs.

Why in News?

The Central government has announced the formation of an expert panel to revise the constituents of the country’s Wholesale Price Index (WPI).

What’s in Today’s Article?

• About Inflation (Meaning, How it is calculated)
• About (WPI, Meaning, How it is calculated, Components, Difference from CPI, etc.)
• News Summary

What is Inflation?

• Inflation is basically the general rise in the price of goods and services and the decline in purchasing power of people.
• This means that when inflation rises (without an equivalent rise in your income), one is able to buy lesser things than previously, or one has to pay more money for the same stuff now.
• A “rising” inflation rate implies that the rate (at which the prices rise) itself is increasing.
  • In other words, imagine a scenario where the inflation rate was 1% in March, 2% in April and then 4% in May and 7% in June.

What is Wholesale Price Index?

• Wholesale Price Index, or WPI, measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses.
  • Wholesale market is only for goods, one cannot buy services on a wholesale basis.
• It is used to track the supply and demand dynamics in industry, manufacturing and construction.
• The index is released by the Economic Advisor in the Ministry of Commerce and Industry every month.
• The quantum of rise in the WPI month-after-month is used to measure the level of wholesale inflation in the economy.

How is WPI calculated?

• The index is based on the wholesale prices of number of relevant commodities
• The commodities are chosen based on their significance in the region.
  • These represent different strata of the economy and are expected to provide a comprehensive WPI value.
• Number of commodities: 697 items
• Base year: 2011-12

Major Components of WPI:

• ‘Primary articles’ (22.62%) is a major component of WPI, further subdivided into Food Articles and Non-Food Articles:
  • Food Articles: Cereals, Paddy, Wheat, Pulses, Vegetables, Fruits, Milk, Eggs, Meat & Fish, etc.
  • Non-Food Articles: Oil Seeds, Minerals and Crude Petroleum.
• The next major basket in WPI is Fuel & Power (13.15%), which tracks price movements in Petrol, Diesel and LPG.
• The biggest basket is Manufactured Goods (64.23%). It spans across a variety of manufactured products such as Textiles, Apparels, Paper, Chemicals, Plastic, Cement, Metals, and more.
• Manufactured Goods basket also includes manufactured food products such as Sugar, Tobacco Products, Vegetable and Animal Oils, and Fats.

What are Headline and Core Inflation?

• Headline inflation refers to the change in value of all goods in the basket.
• Core inflation excludes food and fuel items from headline inflation.
• Since the prices of fuel and food items tend to fluctuate and create ‘noise’ in inflation computation, core inflation is less volatile than headline inflation.
• Headline inflation is more relevant for developing countries like India where fuel and food items account for 30-40% of the basket.

What is the Major Difference Between WPI and CPI?

• While WPI keeps track of the wholesale price of goods, the CPI (Consumer Price Index) measures the average price that households pay for a basket of different goods and services.

Why Reserve Bank of India Adopted CPI over WPI?

• On the recommendation of the Urjit Patel Committee (2014), the RBI adopted CPI as the key measure of inflation. Earlier, RBI had given more weightage to WPI as the key measure of inflation for all policy purposes.
• CPI focuses on the change in the cost of living at the consumer’s end, whereas the WPI focuses on the inflation of the economy as a whole.
• For common people, i.e. consumers, it is the CPI that is more relevant than the WPI. CPI also covers the service sector.
• Through CPI, the RBI can increase the span of monetary control and monitor inflation better.
• Therefore, the RBI linked CPI for fixing interest rates in India. 

News Summary:

• The Union Government has announced the formation of an 18-member expert panel to revise the Wholesale Price Index (WPI) and consider transitioning to a Producers' Price Index (PPI).
• This move reflects the structural changes in India’s economy since the WPI's current base year of 2011-12, with a new base year proposed as 2022-23.
• The working group will be led by Ramesh Chand, a member of NITI Aayog.
• Members include officials from various ministries (Statistics, Finance, Petroleum, and Agriculture), representatives from the Reserve Bank of India (RBI), and private sector economists.
• The panel has been tasked to submit its final report by June 30, 2026, to the Office of the Economic Adviser in the Ministry of Commerce and Industry.
• Key Objectives:
  • Enhance the reliability of indices to better reflect economic changes.
  • Address statistical and computational challenges in transitioning to PPI.
• Significance of the Move:
  • This initiative marks a significant step in aligning India’s price measurement tools with global standards.
  • The shift from WPI to PPI aims to offer a more comprehensive reflection of price trends at the producer level, aiding policymakers and industries alike in economic planning.

Why in the News?

The Union Ministry of Environment, Forest and Climate Change has amended the rules governing the selection of experts to the Genetic Engineering Appraisal Committee (GEAC).

What’s in Today’s Article?

• About GM Crops (Meaning, Benefits, Concerns, etc.)
• Regulations in India (Laws/Bodies Related to GM Crops)
• News Summary

About Genetically Modified (GM) Crops:

• Genetically Modified (GM) crops are plants whose DNA has been altered through genetic engineering techniques to introduce desirable traits.
  • These traits may include resistance to pests, diseases, or environmental conditions, improved nutritional content, or increased yield.
• Unlike traditional crossbreeding methods, genetic modification allows for the direct manipulation of a plant’s genetic material, often incorporating genes from different species to achieve specific results.
• Benefits of GM Crops:
  • Increased Yield: GM crops can produce higher yields, contributing to food security.
  • Pest and Disease Resistance: Crops can be engineered to be resistant to specific pests and diseases, reducing the need for chemical pesticides.
  • Herbicide Tolerance: Some GM crops are designed to withstand certain herbicides, making weed control more effective.
  • Enhanced Nutritional Content: Crops can be modified to contain higher levels of essential nutrients, addressing malnutrition in developing countries.
  • Environmental Benefits: Reduced need for chemical inputs can lower the environmental impact of agriculture.
• Concerns / Controversies w.r.t. GM Crops:
  • Environmental Impact: There is ongoing debate about the potential for GM crops to affect non-target species and lead to a reduction in biodiversity.
  • Health Concerns: While extensive research indicates that GM foods are safe to eat, public concern about potential long-term health effects persists.
  • Economic Issues: GM seeds are often patented, leading to concerns about corporate control over the food supply and the economic impact on small-scale farmers.
  • Ethical and Labeling Issues: There are ethical debates surrounding the manipulation of genetic material, and many advocate for clear labeling of GM products to inform consumer choice.

Regulations w.r.t. GM Crops in India:

• The adoption and regulation of GM crops vary globally. In some countries, GM crops are widely grown and consumed, while others have stringent regulations or outright bans.
• In India, the Ministry of Environment, Forest, and Climate Change oversees all activities, operations, and products associated with genetically modified organisms.
• These are regulated under the Environment (Protection) Act, 1986.
• The Genetic Engineering Appraisal Committee (GEAC), part of MoEFCC, has the authority to review, monitor, and approve all GMO-related activities, including import, export, transportation, manufacture, use, and sale.
  • GEAC is a statutory body established under the Environment Act, 1986.
• Additionally, GM foods must comply with the regulations set by the Food Safety and Standards Authority of India (FSSAI).
• Currently, cotton is the only GM crop approved for commercial cultivation in India. 

News Summary:

• The Union Ministry of Environment, Forest, and Climate Change has introduced new rules mandating experts on the Genetic Engineering Appraisal Committee (GEAC) to disclose any potential conflict of interest.
• Disclosure of Conflicts:
  • Expert members must disclose any direct or indirect association with matters being discussed in GEAC meetings.
  • Experts are expected to recuse themselves from discussions unless specifically requested by the committee.
• Background Checks:
  • Selected members must submit detailed forms listing their professional affiliations from the past decade.
• Supreme Court Directive:
  • The amendments follow a Supreme Court directive from July 2023, which required the Centre to formulate a national policy on GM crops.
  • The court highlighted the need for a process to address conflicts of interest after allegations surfaced regarding links between committee members and biotech companies like Monsanto (now Bayer CropScience).
• Context of GM Mustard:
  • The rules come in the wake of the Centre’s controversial 2022 decision granting conditional approval for GM mustard crops.
  • The Supreme Court delivered a split verdict on this decision, leaving the final resolution to a future bench.
• Significance:
  • These measures aim to enhance the credibility of the GEAC by ensuring that decisions on GM crops are transparent, unbiased, and free from external influence.
  • This move addresses long-standing concerns over corporate affiliations influencing policy and regulatory decisions in India's GM crop sector.

Context

• In recent years, the Chief Ministers of Andhra Pradesh and Tamil Nadu have voiced concerns over the implications of the proposed delimitation exercise and the potential loss of parliamentary seats for southern states.
• This development, driven by the south’s advanced fertility transition, highlights a complex intersection of demography, politics, and regional equity.
• The debate sheds light on the challenges of balancing population trends with political representation, alongside broader questions about fertility policies and their socio-economic impact.

Fertility Transition and Political Representation

• Fertility Transition
  • The southern states of India, including Andhra Pradesh and Tamil Nadu, have excelled in achieving lower fertility rates, reflecting successful family planning initiatives.
  • However, this demographic success inadvertently poses a political disadvantage.
  • The delimitation exercise, which adjusts parliamentary representation based on population, could reduce the number of seats for states with declining populations, thereby diminishing their political influence.
  • This issue underscores a fundamental tension in India’s federal structure: the ideal of "one person, one vote" clashes with the reality of demographic disparities.
• The Debate on Political Representation
  • As Mr. Naidu and Mr. Stalin have pointed out, this dynamic can create perverse incentives, encouraging policies that promote higher fertility to preserve political representation.
  • While Mr. Naidu suggested revisiting policies that incentivise larger families, Mr. Stalin humorously proposed aiming for significantly more children.
  • These remarks highlight the absurdity and complexity of addressing regional imbalances in political representation through demographic measures.

Lessons from Global Experiences

• International examples, such as China’s one-child policy, offer critical insights into the unintended consequences of fertility regulation.
• While China successfully curbed population growth, the policy led to significant challenges, including a skewed sex ratio, a rising dependency burden, and an irreversible decline in fertility rates.
• Similarly, countries like Japan and South Korea, despite implementing pro-natalist policies, have struggled to reverse declining fertility trends.
• These cases demonstrate that fertility transitions, once achieved, are rarely reversible through state intervention.
• India must tread cautiously to avoid repeating such mistakes. Quick-fix regulatory measures aimed at increasing fertility could disrupt the natural demographic transition, creating long-term socio-economic and cultural challenges.

The Debate on Demographic Disparity: Challenges and Implications

• The North-South Demographic Divide
  • The southern states, including Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka, have undergone significant demographic transitions over the past decades.
  • These states have achieved lower fertility rates, higher literacy levels, better healthcare outcomes, and robust economic growth.
  • This is largely due to sustained investments in education, family planning, and infrastructure, alongside proactive governance.
  • In contrast, many northern states, such as Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan, continue to grapple with higher fertility rates, lower literacy levels, and slower socio-economic progress.
  • This demographic divide has led to an uneven population growth trajectory, with northern states accounting for a larger share of India’s overall population.
• Increasing Debate on Political Representation
  • When parliamentary representation is determined solely by population size, the southern states stand to lose seats due to their slower population growth, while the northern states gain political clout.
  • This imbalance creates a paradox where states that have achieved population stabilisation and socio-economic development are penalised, while those with higher population growth are rewarded.
• Implications for Federal Equity
  • This demographic disparity poses significant challenges to the principles of federal equity.
  • Southern states, which contribute disproportionately to India’s GDP and have lower dependency burdens, may feel marginalised if their political representation diminishes.
  • This could lead to a sense of alienation and undermine the cooperative spirit necessary for India’s federal system to function effectively.
  • At its core, the issue raises a critical question: should population size alone determine political representation, or should other factors, such as a state’s developmental achievements and contributions to national growth, also be considered?
• Gendered Implications
  • Encouraging higher fertility rates raises critical questions about the role of women in society and women bear the brunt of reproduction, often at significant personal and professional costs.
  • Policies aimed at reversing fertility decline must prioritize comprehensive social support systems, including childcare, healthcare, and compensation for women’s reproductive labour.

Potential Solutions for Equity

• Weighted Representation
  • One potential solution is to introduce weighted representation, where factors such as literacy rates, healthcare outcomes, and economic contributions are considered alongside population size.
  • This would ensure that states are rewarded for their developmental achievements rather than penalised for lower population growth.
• Revisiting Delimitation Criteria
  • The delimitation exercise could be restructured to include demographic and socio-economic indicators as additional criteria for seat allocation.
  • For instance, states that have achieved population stabilization could receive a baseline level of representation, preventing significant reductions in their parliamentary seats.
• Inter-Regional Redistribution
  • To address the immediate demographic divide, policies could promote greater inter-regional migration.
  • Encouraging labour mobility between northern and southern states could help balance population densities and foster economic integration, thereby reducing the regional divide over time.
• Fiscal Incentives for Development
  • Beyond representation, fiscal policies could incentivize lagging states to invest in family planning, education, and healthcare.
  • By addressing the root causes of high population growth, these policies would help reduce the demographic divide in the long term.

Way Forward: Balancing Unity and Diversity and Evolution of the Role of Federalism

• Balancing Unity
  • The issue of regional disparities in political representation is not merely a technical challenge but a test of India’s commitment to federal unity and equity.
  • Southern states have legitimate concerns about being underrepresented despite their developmental contributions, while northern states argue that their larger populations warrant greater representation.
  • Striking a balance between these perspectives requires innovative and inclusive policymaking.
• Evolution of the Role of Federalism
  • India’s federal system must evolve to accommodate its demographic realities while preserving the principles of unity and equity.
  • Recognising regional disparities and addressing them proactively will strengthen trust among states and ensure that all regions feel equally valued in the national decision-making process.
  • By doing so, India can uphold the spirit of cooperative federalism and create a more balanced and inclusive framework for governance.

Conclusion

• The debate over fertility and representation reflects broader challenges in managing India’s demographic transition.
• Balancing political representation with demographic realities requires innovative solutions that prioritise equity, sustainability, and gender justice.
• Ultimately, the focus must shift from reversing fertility trends to creating a fair and inclusive framework for governance that respects the diversity and achievements of India’s states.

Why in News?

Cabinet approves extension of One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy for the period from 01.01.2025 till further orders to ensure sustainable availability of DAP at affordable prices to the farmers.

What’s in Today’s Article?

• Key Decision of the Union Cabinet
• Fertilizer Price Dynamics
• Challenges for the Fertilizer Industry
• Government’s Strategy
• Future Outlook

Key Decision of the Union Cabinet:

• Extension of subsidy: The Centre has extended the Rs 3,500 per tonne special subsidy on di-ammonium phosphate (DAP) for one more year, effective from January 1, 2025, to December 31, 2025.
• Objective: The decision aims to stabilize farmgate prices and shield farmers from price volatility caused by the rupee's depreciation against the US dollar.

Fertilizer Price Dynamics:

• MRP caps on fertilizers:
  • The government has informally frozen the maximum retail price (MRP) of non-urea fertilizers despite their decontrolled status.
  • Current MRPs:
    • DAP: Rs 1,350 per 50-kg bag
    • Complex fertilizers: Rs 1,300 to Rs 1,600 per bag, depending on the composition.
  • The government’s subsidy on DAP is Rs 21,911 per tonne, along with the Rs 3,500 special concession.
• Impact of currency depreciation:
  • The rupee’s fall against the dollar has raised the cost of imported fertilizers.
  • Current import costs:
    • Landed price of DAP: Rs 54,160 per tonne, up from Rs 52,960 three months ago.
    • Total cost after additional expenses (e.g., customs, handling, and dealer margins): Rs 65,000 per tonne.

Challenges for the Fertilizer Industry:

• Viability concerns:
  • Fertilizer companies face unviable import economics unless:
    • The government increases subsidies.
    • Companies are allowed to revise MRPs upward.
  • Even with the extended subsidy, companies estimate a shortfall of Rs 1,500 per tonne due to currency depreciation.
• Stock levels:
  • Current stocks of DAP (9.2 lakh tonnes) and complex fertilizers (23.7 lakh tonnes) are below last year’s levels.
  • Insufficient imports may lead to supply challenges for the next kharif season (June-July 2025).

Government’s Strategy:

• Compensation for imports:
  • On September 20, 2024, the government approved compensation for DAP imports above a benchmark landed price of $559.71 per tonne.
  • However, these calculations were based on an exchange rate of Rs 83.23 per dollar, which has since fallen below Rs 85.7.
• Fiscal implications:
  • The extended subsidy will cost the government an additional Rs 6,475 crore.
  • Any MRP hike is expected to have minimal political implications, given that major agriculture states are not going to polls soon and the current DAP consumption season is over.

Future Outlook:

• Immediate priority: Ensuring adequate fertilizer availability for the kharif season by securing imports of both finished fertilizers and raw materials.
• The government’s ability to balance fiscal constraints, industry viability, and farmer affordability will be critical in the coming months.

Why in news?

On New Year’s Day, Russian natural gas exports to Europe via Soviet-era pipelines through Ukraine were stopped as the transit deal expired, with no agreement reached between Moscow and Kyiv. This marks the end of Russia’s oldest gas route to Europe.

The Ukrainian government justified its decision as necessary for national security amid the military conflict.

What’s in today’s article?

• Urengoy-Pomary-Uzhgorod Pipeline Overview
• Volume of gas supplied through Ukraine
• Possible impact
• Options available to the buyers

Urengoy-Pomary-Uzhgorod Pipeline Overview

• 
• The pipeline transports gas from Siberia through Sudzha, located in Russia's Kursk region, now under Ukrainian military control.
• It flows through Ukraine to Slovakia, branching into the Czech Republic and Austria.
• Transdniestria, bordering Ukraine, receives Russian gas via Ukraine.

Volume of gas supplied through Ukraine

• Decline in Russia's Gas Exports to Europe
  • Russia's gas supply to Europe has drastically reduced since the invasion of Ukraine in February 2022.
  • Moscow's share of the European gas market, once 35%, has dropped to 8%.
• Diminished Gas Transit via Ukraine
  • By December 2024, the EU received less than 14 bcm of gas via Ukraine, a sharp decline from 65 bcm/year in 2020.
  • Ukraine earns $800 million to $1 billion annually in transit fees, while Russia could earn approximately $5 billion from sales via Ukraine in 2024.
• Europe's Energy Diversification
  • The European Union has offset the loss of Russian gas with liquefied natural gas (LNG) and non-Russian pipeline imports.
  • Competitors like Norway, the United States, and Qatar have gained market share at Russia's expense.

Possible Impact

• Impact on Russia and Gazprom
  • Economic Losses: Ukraine faces a loss of $800 million annually in transit fees, while Gazprom loses nearly $5 billion in gas sales.
  • Decline in Gas Exports: Russian gas transit through Ukraine fell from 65 bcm in 2020 to about 15 bcm in 2023.
  • Collapse of European Market Share: At its peak, Russia controlled 35% of Europe’s gas market, but the war has significantly eroded this dominance.
• Impact on EU
  • Countries affected
    • The Ukraine route serves Austria and Slovakia. Austria received most of its gas via Ukraine, while Slovakia takes around 3 bcm from Gazprom per year, about two-thirds of its needs.
    • Slovakia has said the loss of Russian supply would not hit its consumption and that it has diversified supply contracts.
    • Ukraine’s gas supply remains unaffected as it no longer relies on Russian transit gas.
  • Market Impact
    • EU gas prices reached record highs in 2022 but are unlikely to repeat due to the small remaining volumes of Russian gas and reduced dependency.
    • The European Union has offset the loss of Russian gas with liquefied natural gas (LNG) and non-Russian pipeline imports.
    • Competitors like Norway, the United States, and Qatar have gained market share at Russia's expense.

Options available to the buyers

• Shutting Down Other Pipelines
  • Yamal-Europe Pipeline: Closed via Belarus.
  • Nord Stream Pipeline: Severely damaged in 2022.
• Alternative Routes and Adjustments
  • TurkStream Pipeline: Russia continues to export gas via TurkStream, supplying Turkey, Hungary, and Serbia.
  • European Union’s Shift: EU countries have diversified their energy sources to reduce dependency on Russian gas since 2022.
    • Slovakia: Diversifies gas supply from Hungary, Austria, the Czech Republic, and Poland.
    • Austria: Secured alternative supplies and prepared for the transition.
    • Czech Republic: Tapping into German pipelines, exempt from German gas levies, and supporting Slovakia with transit and storage capacities.
  • Moldova’s Challenges: Moldova, severely affected, plans to cut gas usage by a third.
    • Russia supplies Moldova with about 2 bcm of gas per year. It is piped via Ukraine to the breakaway region of Transdniestria where it is used to generate cheap power that is sold to government-controlled parts of Moldova.
    • Moldova has diversified its sources and will reduce gas consumption by a third starting January 1.

Why in news?

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme until 2025-26.

The schemes have been allocated an enhanced outlay of ₹69,515.71 crore for the period 2021-22 to 2025-26.

What’s in today’s article?

• Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Key features of the PMFBY
• Restructured Weather-Based Crop Insurance Scheme
• Crop insurance scheme gets Rs 69,515 crore boost

Pradhan Mantri Fasal Bima Yojana (PMFBY)

• About:
• A scheme of the Ministry of Agriculture & Farmers Welfare, PMFBY is an insurance service for farmers for their yields, launched in 2016.
• The new Crop Insurance Scheme is in line with the One Nation One Scheme theme. 
• The PMFBY replaced the previous two schemes: the National Agricultural Insurance Scheme (NAIS) and the Modified NAIS.
• It has incorporated the best features of all previous schemes while eliminating all previous shortcomings.
• Objectives:
• To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests and diseases.
• To stabilise the income of farmers to ensure their continuance in farming.
• To encourage farmers to adopt innovative and modern agricultural practices.
• To ensure flow of credit to the agriculture sector.

Key features of the PMFBY

• Premium rates
• There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops (winter sown).
• In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
• Area based approach
• The Scheme will be implemented on an 'Area Approach basis,' i.e., Defined Areas for each notified crop for widespread calamities,
• The unit of insurance shall be Village/Village Panchayat level for major crops and for other crops it may be a unit of size above the level of Village/Village Panchayat.
• It is assumed that all insured farmers in a unit of insurance, to be defined as a "Notified Area" for a crop, face similar risk exposures.
• No upper limit to subsidy
• There is no upper limit on Government subsidy. This means, even if the balance premium is 90%, it will be borne by the Government.
• Use of technology
  • Smartphones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers.
  • Remote sensing will be used to reduce the number of crops cutting experiments.
• The use of technology will be encouraged to a great extent. For example,
• Beneficiaries to be covered
  • Earlier, the enrolment was compulsory for farmers who possess a Crop Loan account or Kisan Credit Card (KCC) account, etc). 
• All farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.
• To address the demand of farmers, the scheme has been made voluntary for all farmers from Kharif 2020.

Restructured Weather-Based Crop Insurance Scheme (RWBCIS)

• RWBCIS was introduced by the Government of India in 2016 to safeguard farmers against financial losses caused by unfavourable weather conditions.
• These conditions encompass factors such as rainfall, temperature, wind, and humidity.
• The scheme offers coverage for a range of crops, including food crops, oilseeds, and commercial or horticultural crops.
• Its primary objective is to provide comprehensive insurance protection for various perils like drought, flood, cyclone, and hailstorm, thereby mitigating the impact of crop damage on farmers.
• Eligibility - All farmers, including sharecroppers and tenant farmers, growing notified crops in notified areas.
• 

Crop insurance scheme gets Rs 69,515 crore boost

• Continuation of PMFBY and RWBCIS till 2025-26
  • The Union Cabinet approved the continuation of the PMFBY and the RWBCIS until 2025-26.
• Risk Coverage and Technology Infusion
  • The schemes aim to provide risk coverage for crops against non-preventable natural calamities.
  • To increase transparency and efficiency in claim calculation and settlement, the Cabinet approved the creation of the Fund for Innovation and Technology (FIAT) with a corpus of ₹824.77 crore.
• Technological Initiatives under FIAT
  • Yield Estimation System using Technology (YES-TECH):
    • Utilizes Remote Sensing Technology for yield estimation, with at least 30% weightage to technology-based estimates.
    • Currently implemented in 9 states, with efforts to onboard others.
    • Madhya Pradesh has adopted 100% technology-based yield estimation, eliminating the need for Crop Cutting Experiments.
  • Weather Information and Network Data Systems (WINDS):
    • Plans to establish Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the Panchayat level.
    • Aims to increase network density fivefold for hyper-local weather data.
    • WINDS implementation starts in 2024-25, with states like Kerala, Uttar Pradesh, and Himachal Pradesh participating.
• Special Provisions for Northeastern States
• The Centre will share 90% of the premium subsidy for Northeastern states.
• Flexibility is provided to reallocate funds to other development projects if required due to low gross cropped area or voluntary participation.
• Key Benefits
  • Enhanced risk coverage for farmers across India.
  • Transition to technology-based systems for increased accuracy and transparency.
  • Support for Northeastern farmers with higher subsidy sharing.

Why in News?

The Union Home Ministry has introduced significant amendments to the Model Prison Manual, 2016, and the Model Prisons and Correctional Services Act, 2023.

The Amendments are aimed at addressing caste-based discrimination and refining the definition and treatment of habitual offenders in Indian prisons.

What’s in Today’s Article?

• Background (Context of the Article)
• Amendments to Prison Rules (Caste-based Discrimination, Habitual Offenders, Significance, etc.)

Background:

• The Supreme Court, in its October 3, 2024 ruling, highlighted the persistence of caste-based discrimination and inconsistencies in defining habitual offenders across states.
• It directed governments to update their legal frameworks and ensure equality and fairness in prison administration.
• This judgment forms the basis for the Home Ministry’s comprehensive overhaul of prison rules.

Addressing Caste-Based Discrimination in Prisons:

• To eradicate caste-based discrimination within prisons, the following changes have been implemented:
• Prohibition of Discrimination:
  • Prison authorities are now mandated to ensure there is no discrimination, classification, or segregation of prisoners based on their caste.
  • Duties and work assignments within prisons must be allocated without prejudice, promoting equal treatment for all inmates.
• Legal Provisions in Prison Rules:
  • A new section, 55(A), titled ‘Prohibition of caste-based discrimination in Prisons and Correctional Institutions,’ has been added under the Miscellaneous category of the Model Prisons and Correctional Services Act, 2023.
  • This ensures a codified framework to eliminate caste-based practices.
• Implementation of Manual Scavenging Prohibition:
  • The provisions of the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013, have been extended to prisons and correctional institutions.
  • Manual scavenging and hazardous cleaning of sewers or septic tanks within prisons are explicitly prohibited, safeguarding inmates from degrading practices.

Redefining Habitual Offenders:

• The amendments also address the treatment and classification of habitual offenders, following Supreme Court directives to standardize definitions and ensure adherence to constitutional principles:
• Unified Definition:
  • A habitual offender is now defined as an individual who, during any continuous period of five years, has been convicted and sentenced to imprisonment on more than two occasions for offences committed on different occasions (not part of the same transaction), provided these sentences are not overturned on appeal or review.
  • Time spent in jail under sentence or detention will not be included in the five-year period.
• Legislative Consistency:
  • In states lacking specific Habitual Offenders Acts, the Union and state governments are required to align their prison manuals and rules with the Supreme Court’s judgment within three months.
  • The amendments aim to create consistency across jurisdictions by replacing varied state definitions of habitual offenders with a standard model.

Significance of the Amendments:

• Ensuring Equality:
  • The amendments aim to uphold the constitutional right to equality and dignity for all prisoners, irrespective of their caste or background.
• Eliminating Degrading Practices:
  • By prohibiting manual scavenging and hazardous cleaning, the rules reinforce humane treatment within prisons.
• Standardized Framework:
  • The unified definition of habitual offenders ensures consistent treatment of repeat offenders across states, avoiding arbitrary classifications.

Conclusion:

• These amendments mark a significant step toward ensuring a fair and non-discriminatory prison environment.
• By addressing caste-based discrimination and aligning the treatment of habitual offenders with constitutional principles, the Union Home Ministry aims to create a more just and equitable correctional system.
• These changes reflect India's commitment to human rights and the rule of law, setting a progressive precedent for prison reforms nationwide.