THE NEWS GIST

NOVEMBER 2018

Polity and Governance 1. Mizoram, where displaced Brus seek a better rehabilitation package to return (Relevant for GS

Prelims, GS Mains Paper II; Polity & Governance)

The displacement of some 40,000 Bru people from Mizoram in 1997 got much less traction than that of the

Kashmiri Pandits seven years before. But making them return home from relief camps in adjoining

Tripura has been equally frustrating for the Centre and the north- eastern States for almost 21 years now.

A few families have accepted the package offered by the Centre and returned, but most of the internally

displaced refugees have refused to budge unless they get a better deal. The Ministry of Home Affairs

(MHA) has set them a September 30 deadline and threatened to stop free rations and other facilities.

Where were they displaced from?

The Brus, also called Reangs, are scattered across Assam, Mizoram and Tripura. In Mizoram, they inhabit

small pockets of Mamit, Lunglei and Lawngtlai districts, but the biggest chunk is in Mamit bordering

North Tripura district of Tripura. A conflict with the majority Mizos in 1995 made influential

organisations like the Mizo Zirlai Pawl (students’ union) demand that the Brus, labelled a non-indigenous

tribe, be deleted from Mizoram’s electoral rolls. This led to an armed movement by the extremist Bru

National Liberation Front, which killed a Mizo forest official on October 21, 1997. Many Bru villages were

burnt down and scores allegedly raped and killed. Thousands of Brus fled to North Tripura where they

were given shelter in six relief camps, three each in the Kanchanpur and Panisagar subdivisions. Most of

the refugees were from Mamit and a few from Kolasib and Lunglei.

What was the political impact?

Except for some say in three of Mizoram’s 40 Assembly constituencies, the Brus are not a major voting

force. Resistance by Mizo NGOs to their return made the refugees relevant only during elections, with

Mizoram officials crossing over to Tripura for facilitating their franchise. Talks of repatriation began in

2009 but Bru extremists allegedly killed a Mizo teenager, triggering another round of retaliatory attacks

and exodus of Brus to Tripura. As tempers cooled, the first phase of repatriation in November 2010 saw

8,573 members of 1,622 Bru families having been resettled in Mizoram. But the protest by Mizo groups

halted the process in the next few years. With time, the Brus began demanding relief on a par with that of

Kashmiri Pandit and Sri Lankan Tamil refugees. The impasse increased the Centre’s bill. Since 1997, it has

given ₹348.97 crore to Tripura in financial assistance for relief and rehabilitation, and ₹68.9 crore to

Mizoram for those resettled in 2010.

What hit the new rehab package?

The MHA brought the stakeholders to the talks in 2015, and a financial package of Rs. 435 crore was

arrived at in July. The Centre signed an agreement with the Mizoram Bru Displaced People’s Forum and

the governments of Mizoram and Tripura. The package covers 32,876 members of 5,407 Bru families,

entailing a one-time assistance of Rs. 4 lakh in fixed deposit within a month of repatriation, monthly

assistance of Rs. 5,000 through direct benefit transfer, free rations for two years, and Rs. 1.5 lakh in three

instalments for building houses. The package included Eklavya residential schools, permanent residential

and ST certificates and funds to the Mizoram government for improving security in the Bru resettlement

areas. The refugees were given the September 30 deadline to move or face harder times in the camps. But

the Mizoram Bru Displaced People’s Coordination Committee (MBDPCC), another refugee group, has

demanded a better package that includes resettlement in clusters and an autonomous council for Brus.

Where does it go from here?

Since July, only 42 Bru families have returned to Mizoram. MBDPCC leaders say they are undaunted by

the threat to stop assistance to or wind up the camps, since “we survive by doing odd jobs, anyway.” But

Mizoram and Tripura officials involved in the repatriation process feel the government will relax the

deadline for more refugees to “change their mind.” The pressure is also from local Brus of Tripura, who

are reportedly facing an identity crisis because of the refugees.

2. Analysis of Swachh Bharat Mission (Relevant for GS Prelims, GS Mains paper II; Polity &

governance)

Global appreciation of Swachh Bharat Mission

India’s Swachh Bharat Mission is receiving global praise for attempting to close the sanitation gap of

nearly 60% of the rural population not having access to a toilet at home in 2014.

The NDA government invoked Mahatma Gandhi’s vision of a clean and healthy country when it

launched the ambitious programme. On the eve of Independence, Gandhi saw the lack of a “sense of

national or social sanitation” as the root of all diseases among Indians.

Performance of mission

Prime Minister Narendra Modi announced a Swachh movement in 2014 to change that, and four years

later the outcomes show that achieving social change is far from easy. For the BJP-led government at the

Centre, the SBM enjoys arguably the highest priority, and a Rs.16,400-crore fund was raised for it during

2015-17 when a special cess was in force. On Gandhi Jayanti this year, the SBM’s Gramin wing declared it

has constructed 86.7 million Individual Household Latrines and raised sanitation access to 94% in rural

areas; 5,07,369 villages are now ‘open defecation free’. On the face of it, this is big advance. But there is a

need for a close audit of the outcomes.

Criticism of mission

In some States, such as Rajasthan, independent verification shows that the social change that the SBM

hopes to achieve remains elusive, and traditionally oppressed communities continue to manually remove

filth from dry latrines used by the upper castes. There are reports of a similar situation prevailing in some

parts of Uttar Pradesh and Madhya Pradesh

too. What this shows is that the very evil that Gandhi wanted to see changed — of some castes

condemned to do such work by others — persists.

Need for broader vision

Besides making sanitation a movement through the provision of well-designed toilets and behaviour

change in rural India, the SBM should have a broader vision of what constitutes cleanliness. The Centre

asserts that urban toilet coverage is now 87% of the target, and nearly three-fourths of the wards in the

country have door-to-door collection of municipal waste, but the lived experience of the city-dweller,

especially in the bigger metros, is different. Waste volumes continue to grow as economic growth spurs

consumption. The laws on municipal solid waste, protection of water sources and pollution control are

just not being enforced.

The official machinery required to enforce legal provisions vigorously, and the infrastructure to manage

waste scientifically are inadequate, making it unlikely that there will be significant public health

outcomes flowing from high-profile cleaning campaigns. Without full commitment to these aspects of

development, there is little chance of meaningfully achieving the Sustainable Development Goals on

water and sanitation anytime soon. Besides ending manual scavenging, the Swachh Bharat Mission must

ensure that the manual cleaning of septic tanks, which is killing so many workers each year, is stopped

and that funds for rehabilitation reach them.

3. The lowdown on Ayodhya appeals (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance)

What is it?

On September 27, in the Ayodhya title suit appeals, a three-judge Bench of the Supreme Court, in a

majority opinion, decided against referring the question “whether offering prayers in a mosque is an

essential part of Islam” to a seven-judge Constitution Bench. With this, the court has signalled that it will

decide the appeals like any other civil suit, based on evidence, and pay little heed to arguments about the

“religious significance” of the Ayodhya issue and the communal strife it has caused.

The Bench said the hearing would start from October 29, leading to the question whether the court would

deliver a judgment before the May 2019 general election. The appeals are against the September 30, 2010,

decision of the Allahabad High Court to divide the disputed 2.77 acre area among the Sunni Waqf Board,

the Nirmohi Akhara and Ram Lalla. The court had relied on Hindu faith, belief and folklore. It concluded

that Lord Ram, son of King Dashrath, was born within the 1,482.5 square yards of the disputed

Ramjanmabhoomi-Babri Masjid premises over 9,00,000 years ago during the Treta Yuga. One of the

judges added that the “world knows” where Ram’s birthplace is, while another said his finding was an

“informed guess” based on “oral evidences of several Hindus and some Muslims” that the precise

birthplace of Ram is under the central dome.

How did it come about?

The final hearings began before a Bench of Chief Justice of India Dipak Misra (now retired) and Justices

Ashok Bhushan and S. Abdul Nazeer on December 5 last year. The day also happened to be the eve of the

25th anniversary of the demolition of the 15th century Masjid by kar sevaks on December 6, 1992.

However, the Muslim appellants pointed to certain paragraphs in a 1994 five-judge Constitution Bench

judgment in the Dr. Ismail Faruqui case. One of these paragraphs stated that “a mosque is not an essential

part of the practice of the religion of Islam and namaz [prayer] by Muslims can be offered anywhere, even

in open.”

Why does it matter?

“So is the mosque not an essential part of Islam? Muslims cannot go to the garden and pray,” their

lawyer and senior advocate Rajeev Dhavan told the court. He asked the Bench to freeze the hearing till

this question is decided by a seven-judge Bench.

In their majority view, Chief Justice Misra and Justice Bhushan refused to send the question to a seven-

judge Bench. Their opinion said the observations were made in the context of the Faruqui case, which

was about public acquisition of places of religious worship. It should not be dragged into the Ayodhya

appeals. The minority decision authored by Justice Nazeer dissented with the majority on the Bench, and

said this observation about offering prayer in a mosque had influenced the Allahabad High Court. He

questioned the haste of the court.

The answer to this question is found in the maiden Supreme Court hearing of the appeals last year. Those

present distinctly remember senior advocate Kapil Sibal suggest that the Bench post the hearings after

July 15, 2019. Along with Mr. Sibal, senior advocate Dushyant Dave and Mr. Dhavan argued that the

dispute is not just another civil suit. The case covers religion and faith and dates back to the era of King

Vikramaditya. It is probably the most important case in the history of India, which would “decide the

future of the polity.” Mr. Sibal said the government was using the judiciary to realise its agenda for a

Ram temple, a promise in the ruling BJP’s 2014 election manifesto.

What next?

All eyes are on the new Chief Justice of India Ranjan Gogoi. Justice Misra was also the lead judge on the

Ayodhya Bench. Chief Justice Gogoi may lead the Ayodhya Bench himself or appoint another judge.

With the Lok Sabha election nearing, a request to adjourn the case until after the poll may also be made.

4. How was decision on Rafale made, asks SC (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance)

Bench seeks details in a sealed envelope by October 29

The Supreme Court asked the Centre to submit details of the decision-making process in the Rafale deal

with France in a sealed envelope by October 29. A Bench headed by Chief

Justice Ranjan Gogoi, however, clarified that it was not asking for information on the price of the fighter

jets and technical particulars.

Issue of pricing

“We are not on the issue of pricing and suitability of the Rafale jets but only on the decision-making

process,” the Bench, also comprising Justices S.K. Kaul and K.M. Joseph, said.

The Supreme Court, which was hearing various petitions seeking an investigation into the controversial

fighter jet deal, also said that it was not issuing any formal notice to the Centre.

Reply by government

Attorney General K.K. Venugopal opposed the petitions, saying that they were politically motivated and

should be dismissed. Mr. Venugopal stressed that the details of the deal cannot be shown to anybody in

the interest of national security and other issues related to the defence procurement process.

Twin-engine plane

Rafale is a twin-engine medium multi-role combat aircraft (MMRCA) manufactured by Dassault

Aviation, a French firm.

Advocate M.L. Sharma, one of the petitioners, has sought a stay on the deal. Terming it as an “outcome of

corruption”, Mr. Sharma called for quashing of the deal to purchase 36 Rafale fighter jets.

Another petitioner Vineet Dhanda, also a lawyer, expressed satisfaction at the Supreme Court’s order. “In

a PIL (Public Interest Litigation) petition, my role is to bring an issue to the notice of the court.

The court has perhaps also taken note of my plea regarding submission of documents in a sealed

envelope. After it goes through the documents, I am sure, the truth will come out,” Mr. Dhanda said.

5. CBI names its No.2 Rakesh Asthana in bribery case (Read only for understanding; Polity &

Governance)

What are the charges?

The Central Bureau of Investigation has named its second-in-command Rakesh Asthana as an accused in

a bribery case along with another agency official and two private persons.

Those named as accused in the FIR (13A/2018) are Mr. Asthana, CBI Deputy Superintendent of Police

Devender Kumar, Dubai-based investment banker Manoj Prasad and his brother Somesh Prashad. More

than Rs. 3 crore in bribes were paid by the complainant for getting relief in a case against meat exporter

Moin Qureshi and others, the agency said.

Why was complaint registered?

The case has been registered on the complaint from Satish Sana Babu, a businessman from Hyderabad,

who had first been summoned by Devender Kumar, Moin Qureshi case Investigating Officer, in October

2017. The CBI has got his statements recorded before a magistrate under Section 164 of the Criminal

Procedure Code twice, on October 4 and 20.

What are the details of corruption?

The agency alleges that bribes were taken in five instalments in December 2017 and October 2018 to give

a clean chit to the Hyderabad businessman.

As alleged, Rs. 1 crore was paid on December 10 and Rs. 1.95 crore on December 13 last; Rs. 25 lakh on

October 10; and 55, 000 dirhams on October 14. The agency has claimed that the complainant’s statement

before the magistrate “corroborates” the allegations to the minutest details. “Then, there are WhatsApp

conversations and mobile phone location records that confirm the movement of the accused persons.

Accused Somesh handled Mr. Asthana’s investments in Dubai and London,” a CBI official said on

Sunday.

According to the FIR, the businessman was summoned in the Moin Qureshi case several times for

questioning on a Rs. 50 lakh transaction in 2011. During a trip to Dubai, he met Manoj who allegedly got

him in touch with his brother for getting relief from CBI summonses.

The FIR alleges that Somesh, after talking to a CBI official on the phone, demanded Rs. 3 crore as the

initial amount and Rs. 2 crore after the filing of the charge sheet in the case. Subsequently, the

businessman allegedly paid about Rs. 3 crore through middlemen.

However, on September 25 this year — when he along with his family was to board a flight from

Hyderabad to Paris — he was stopped at the airport as a look-out circular had been issued against him.

On an inquiry with the case investigating officer, he was told to pay up the rest of the amount, as alleged.

Internal fight within CBI

The latest move by the CBI is yet another indication of the escalating turf war between the top brass in

the top agency: CBI Director Alok Verma and Mr. Asthana.

Even as the news of the new complaint emerged, the CBI sent a team of officials to interrogate some

businessmen in Vadodara with regard to expenses made by Mr. Asthana in lavish wedding of his

daughter. CBI officials have interrogated around a dozen persons about the wedding reception held in

sprawling Laxmi Vilas Palace owned by the Baroda’s erstwhile royal family Gaekwads.

Before the present complaint was filed, Mr. Asthana filed a complaint against the CBI Director before the

Central Vigilance Commission (CVC), accusing him of interfering in a corruption case involving family

members of RJD leader Lalu Prasad. Subsequently, in a statement, the agency denied Mr. Asthana’s

charges against the Director and said the Special Director himself was under probe in half-a-dozen cases

and was trying to intimidate officials probing his role. The CBI Director is learnt to have written to the

CVC on October 18 and 19 about the FIR registered against Mr. Asthana.

History of allegation

This is not for the first time Mr. Asthana is facing bribery allegations. Earlier, his name had surfaced in

the Sandesara brothers’ case. The Vadodara-based businessmen Sandesara brothers are now abroad,

evading probe and arrests by the CBI and the Enforcement Directorate for allegedly defrauding banks of

Rs. 5,200 crore. The CBI is investigating its two former chiefs A.P. Singh and Ranjit Sinha in other cases.

6. SC moves to make festivals less noisy (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance)

Bench fixes time slots while imposing a ban on loud and toxic firecrackers

The Supreme Court struck a balance between the interests of the firecracker industry and the right to

public health, allowing the manufacture and sale of only “green” and reduced- emission or “improved”

crackers, while banning those that are loud and toxic to man, animal and the environment.

Applicable nationwide

The judgment reduced the time for bursting crackers during Deepavali and other festivals to two hours:

between 8 p.m. and 10 p.m. For Christmas and New Year, the time slot allowed is just half-an-hour,

between 11.55 p.m. and half-past midnight. The reduced time window is applicable across the country.

Basis of petition

The ban came on the basis of a petition filed by two infants — a six-month-old and 14- month-old —

through their fathers in 2015. They said the air pollution caused by various factors, especially firecrackers,

made Delhi a gas chamber. They pleaded for their right to life.

Other details of judgement

The court banned the manufacture, sale and use of joined firecrackers (series crackers or ‘laris’), holding

that they caused “huge air, noise and solid waste problems.” The sale of green and improved crackers

would be only through licensed traders. It banned online sale through e-commerce websites, including

Flipkart and Amazon. “Any such e-commerce company found selling crackers online will be hauled up

for contempt of court, and the court may also pass, in that eventuality, orders of monetary penalties,” it

warned.

7. Midnight rumble: on CBI feud (Relevant for GS Prelims, GS Mains Paper II; Polity & Governance)

CBI Director abruptly replaced

The abrupt replacement of Alok Verma as Director of the Central Bureau of Investigation, albeit as an

interim measure, is the culmination of a series of murky events that must deeply embarrass the Centre.

What was perceived as an unseemly internal tussle among top officers of the premier investigating

agency has morphed into a full-blown conflict between the Centre and Mr. Verma.

Centre’s Sympathy towards Asthana

It is one thing if Mr. Verma had merely challenged the legality of his dismissal. But he more than hinted

at interference in his functioning. The suggestion that the Centre’s action was meant to protect certain

people has led to charges that he was removed because he was

politically inconvenient. The Centre may like people to think it behaved with a measure of even-

handedness by divesting both Mr. Verma and Mr. Asthana of their powers, but the action of the new

acting director, M. Nageswara Rao — who has transferred many officers investigating cases against Mr.

Asthana — exposes where its sympathy lies. This has raised the question whether the government is

adopting strong-arm tactics against Mr. Verma, despite his tenure and independence being protected by

the law.

Rationale by CVC

The Central Vigilance Commission, in its order divesting him of his office, has said that since the

atmosphere within the agency had become vitiated due to a factional feud, it had to intervene. It also

charged Mr. Verma with not making available the records and files sought by the CVC in connection with

a corruption complaint against him — an approach which it held was wilfully obstructionist.

Whether CBI director is independent?

The sordid controversy has raised the important question of whether the statutory changes aimed at

insulating the CBI Director’s office from political and administrative interference are adequate. Section 4B

of the Delhi Special Police Establishment Act assures the Director of a two-year tenure and makes it clear

that he cannot be transferred except by the high- power committee — comprising the Prime Minister, the

Leader of the Opposition and the Chief Justice of India — that appointed him.

The Supreme Court will address the question whether the ‘interim measure’ amounts to unlawfully

curtailing the Director’s tenure. It will also examine whether the CVC’s power of superintendence has

been rightly invoked in the present case. But there are immediate and arguably more serious dimensions

to this crisis. And it revolves around how to repair the image of a CBI riven by a nasty feud, how to

protect its independence, and how to address the mess contributed by a government that should have

acted much earlier to resolve the controversy rather than let it attain the ugly dimensions it did.

8. A drive to register citizens (Relevant for GS Prelims, GS Mains Paper III; Polity & Governance)

The Supreme Court on October 8 issued notice to the Centre and the Election Commission on a public

interest litigation petition by a non-political forum seeking an exercise, similar to the one done in Assam,

to update the National Register of Citizens (NRC) for Tripura. Pradyot Bikram Manikya Debbarma, son

of Tripura’s last king, filed an affidavit in the court a fortnight later in favour of the NRC. A long-

standing demand of Tripura’s ‘tribal nationalists’ for deportation of illegal migrants from Bangladesh

resulted in these petitions, widening the gap between the indigenous people and non-tribal settlers,

mostly Bengali Hindus and some Muslims.

What is the demand about?

Tripura is often cited in the northeastern region as an example of how migration can alter the

demographic pattern of the State. Census data show the population of Tripura’s 19 Scheduled Tribes

dropped from 63.77% in 1881 to 31.78% in 2011. This is attributed to the migration of 6.10 lakh Bengalis —

the figure almost equal to the State’s total population in 1951 — from East Pakistan (now Bangladesh)

between 1947 and 1971. Going by the language census of 2011, Tripura has 24.14 lakh Bengali speakers,

thrice the 8.87 lakh who speak Kokborok, the language of the largest tribal group. Unlike the NRC of

Assam, where the cut-off date for excluding the putative foreigners is March 24, 1971, tribal groups in

Tripura want July 19, 1948, as the date of determining migrants as per the provision of Indian nationality

laws for people who migrated from territories that became East Pakistan. The Tripura People’s Front

suggested this cut-off date in its petition. The petition followed former extremist leader and chief of

Indigenous Nationalist Party of Twipra Bijoy Kumar Hrangkhawl’s meeting with Union Home Minister

Rajnath Singh.

What is the Bengali view?

Bengali academics and politicians admit migration was high after Partition in 1947, but the forebears of

the Bengali migrants were essentially subjects or tenants of Tripura’s Manikya kings since the 13th

century. Tripura became a princely state during British rule. The kings had sway over Hill Tippera, the

hilly kingdom roughly the present area of Tripura, besides a zamindari in British India called Chakla

Roshanabad or Tippera, comprising five districts of the present-day Bangladesh, then called East Bengal.

These districts are Comilla, Brahmanbaria, Noakhali, Chittagong and a part of Sylhet. The kingdom’s

revenue came from the resources-rich areas inhabited by Bengalis. The royalty, belonging to the largest

tribal group called Tripuri, didn’t just keep the Bengalis in the plains of Chakla Roshanabad. The Rajmala

, Tripura’s royal chronicles, says the kings brought educated Bengalis to run the administration and

encouraged settlement of Bengali peasants with incentives like land grants.

When did the conflict begin?

King Bir Bikram Kishore Manikya (1923-1947) realised that his tribal subjects could be outnumbered by

the Bengalis and created a 2,050-square mile tribal reserve in 1943 for the Tripuri, Reang, Halam, Noatia

and Jamatiya tribes. This was the precursor to the Tripura Tribal Areas Autonomous District Council,

exclusive to these five and 14 other tribes. The fear of being swamped by Bengalis led to tribal extremism,

first in the 1960s, and with more intensity two decades later. Tribal groups killed 1,400 Bengalis in 1980,

but counter-insurgency operations made most outfits declare truce by the late 1990s. The scars remained,

so much so that tribal NGOs pushed for switching the script of their Kokborok language from Bengali to

Roman. The demand for Twipraland, a state for tribal people, gained ground.

Where does the NRC stand?

Chief Minister Biplab Kumar Deb initially rejected the demand for the NRC, but said later that his

government would undertake the exercise if it succeeded in Assam. The ruling BJP’s ally Indigenous

People’s Front of Tripura – behind the Twipraland demand – favours the NRC. Pradyot Manikya, a

Congress leader, feels an error-free NRC could help Tripura revisit political representation.

9. The lowdown on Jammu & Kashmir crisis (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance)

What is it?

The situation in Kashmir is volatile and drifting into a negative sphere on two counts: rising violence and

the shrinking space of regional mainstream parties after the four-phase urban local bodies elections on

October 16.

The spiral of violence showed no sign of let-up even after Governor Satya Pal Malik was sworn in as the

new head of the State on August 23. There are many markers that the Governor has so far failed to stop

the situation from deteriorating and ensure that all alienated sections, especially the Hurriyat, make a

positive move.

According to official figures, over 78 militants, 90% of them local recruits, were killed in the past 12

weeks, with militancy gaining ground in north and central Kashmir. General Officer Commanding of the

Army’s 15 Corps Lt. Gen. A.K. Bhatt admitted that the north was comparatively less militancy-hit than

south Kashmir. “Unlike the youth in south Kashmir, people in north Kashmir had chosen a path of peace,

which I will try to maintain.” He expressed fears that militant infiltration from Pakistan-occupied

Kashmir into north Kashmir would increase ahead of winter.

How did it come about?

That the situation has worsened in October is evident from the number of security operations, militant

attacks and stone-throwing, with over 100 protesters injured in clashes. A total of 12 civilians were killed.

Seven civilians died in a controversial blast at an encounter site in Kulgam, where the Army-led

operation neutralised three Jaish-e- Muhammad militants on October 22. Locals alleged that the forces

failed to sanitise the site of the operation as per the standard operation procedure (SOP) laid down in

2012. However, the security agencies blame civilians for converging on the site immediately after the

encounter was over. It has only fuelled more anger in south Kashmir. There are more worrying trends for

security agencies. Srinagar, declared a militancy-free zone once, saw the return of house-to-house

operations by security forces. Four militants and a civilian were killed in a fortnight of heavy gunfights.

Fear of large-scale street protests during and after the encounters forced the authorities to close all

educational institutions and cancel examinations.

Why does it matter?

The Centre’s decision to hold urban local bodies elections in October acted as a force multiplier for

violence. Even the mainstream regional parties, National Conference (NC) and Peoples Democratic Party

(PDP), decided to boycott these polls, given the “anxiety and alienation” in Kashmir over a number of

issues, including the questioning of special status in the Supreme Court. The regional parties described

the civic bodies polls as “an imposition by the Centre.” It’s for the first time that urban local bodies polls

were held with

no regional party fielding any candidate. The new Governor failed to convince the parties to join the fray.

Instead, he ticked them off, saying their “boycott was posturing for Assembly elections.”

However, the poll results were disappointing and far below expectations. From over 80% polling in the

panchayat elections in 2011, the voter turnout came down to 35.1% in the entire State, while the Kashmir

Valley and Srinagar saw 5% turnout, even lower than in 1996 when militancy was at its peak. The

winning of the BJP candidates at 35 wards in the boycott-hit and volatile south Kashmir has only added

to people’s anxiety.

What lies ahead?

The decision to hold the civic polls has cast a shadow on upcoming elections in the State, including the

panchayat polls to be held in November. The State is also awaiting Assembly elections after the PDP-BJP

government fell in August this year. Both the NC and the PDP are yet to show any interest in these polls.

It strengthens the separatists’ argument that boycott remains the only option for all parties till resolution

of the Kashmir issue.

10. India and Russia Relations (Relevant for GS Prelims, GS Mains Paper II; IOBR) Recent

developments

The two countries announced a number of agreements, including a $5.43 billion S-400 Triumf missile system deal, a space cooperation arrangement to put an Indian in space, and an action

plan for a new nuclear plant.

Bilateral trade

Prime Minister Narendra Modi and Mr. Putin also addressed a business summit, in an attempt to

diversify ties and increase bilateral trade, currently below $10 billion. Much of the fresh momentum in

bilateral engagement will come from the energy sector. Though the two sides didn’t announce an

agreement between ONGC Videsh and Gazprom as expected, several billions of dollars worth of

investment and energy deals are in the pipeline.

What is the geopolitical significance of the defence deal?

Significantly, the agreements discussed during Mr. Putin’s visit have geopolitical implications. The

signing of the S-400 air defence system deal, for instance, is of far greater consequence than its size. It

denotes India’s desire to deepen defence cooperation with Russia; also that it is prepared to do this

despite U.S. warnings that the deal could attract sanctions. That this deal comes just a month after India

signed the Communications Compatibility and Security Agreement (COMCASA) for better

interoperability with the U.S. military is a sign that India will not be forced or even persuaded into

putting all its eggs in one strategic basket.

Future test for India

New Delhi’s assertion of “strategic autonomy” and desire for multipolarity will be seriously tested in the

coming months. For one, it chose to sign the S-400 deal, but resisted concluding other major defence deals

with Russia on helicopters, stealth frigates and

assault rifles, which Moscow will no doubt push for. More defence deals with Russia will make it

increasingly difficult for the U.S. to give India a waiver from sanctions under CAATSA, its legislation

aimed at curtailing defence and energy dealings with Russia, Iran and North Korea. Washington has

already reacted to the S-400 deal, making it clear that any waiver will not be on a “country” basis, but on

a “transaction-by-transaction” basis. In any case, accepting a waiver will implicitly commit India to

reducing its intake of Russian military hardware.

What next?

Both on CAATSA and on the U.S.’s proposed sanctions on Iran that go into force on November 4, India

will need to make some tough decisions. It is one thing to reinforce long- standing and close friendships

as Mr. Modi did during his annual summit with the Russian President this month, and with the Iranian

President earlier this year, or with the U.S. President last year — the situation can be much more complex

when friends expect you to choose between them.

11. Dhaka faces Rohingya ire on shift plan (Relevant for GS Prelims, GS Mains Paper II; IOBR)

Within a year, the Kutupalong camps near the famed unbroken beaches of Cox’s Bazaar have emerged as

home for 13 lakh Rohingya refugees who were displaced from Myanmar by its military. The Myanmar

military is the enemy back home for the refugees, but they have to remain alert for the weather shocks in

Bangladesh as plans are afoot to shift them to an islet that lies in the way of violent storms.

What is the problem?

Bangladeshi Foreign Minister Abul Hassan Mahmood Ali clarified at a meeting with a foreign media

delegation that the Rohingya are not Bengalis and have a distinct identity that should be recognised.

India and China are building homes in Rakhine to accommodate those who return home. But no one on

the ground is sure that they would return after the assault they experienced. The Minister clarified that

storm-shelters had been built on the islet, located in the path of deadly annual cyclones that visit the

region, to help the Rohingya settle there. However, it remains unclear whether any of the current

refugees of Kutupalong would shift there voluntarily as the community leaders have disagreed with

Dhaka’s plan to leave the safe surrounding of what was once an elephant sanctuary.

What are the living conditions?

The 2017 monsoon was a shocker as most of the refugees had come with almost nothing and they had

nowhere to stay. But now at least most of them have a roof overhead, though conditions are far from

perfect, with large families cramped in tiny hutments. Just a year ago, the hills near Kutupalong used to

host wild elephants and leopards, but the tide of Rohingya refugees from across the Myanmar border has

evicted the wildlife and removed the forest. On the denuded hills and knolls has emerged a gigantic slum

colony supported mainly by Bangladesh.

When did they begin arriving?

The history of Rohingya refugees is nearly four decades old. A small Rohinya colony had sprung up in

the area in 1979 when the first wave of a military campaign targeted the community in Myanmar’s

Rakhine or Arakan province. Along with other ethnic groups such as the Karens and Kachins in eastern

Myanmar, the Rohingya on the western coast have been at the receiving end of the mainly Buddhist

military. The 2017 monsoon changed the trickle of 1979 into a deluge of humanity. On September 5, 2017,

Mohammed Nikaruzzaman, sub-district officer, found hundreds of thousands of Rohingya sitting in the

rain as they emerged through the forested hills on the border from Rakhine. Today, nearly 6,000 acres of

land across this region, which allows one to peer deep into Myanmar, is covered with homes made of

bamboo and plastic sheets. From above, the location appears like a gigantic quilt with multicoloured

polythene sheets. The displacement of the Rohingya is an enormous tragedy, but the quick response of

the government of Bangladesh and support from countries like Turkey, India and Australia and relief

organisations has helped in preventing the tragedy from going out of control.

When can they return home?

China and India have also pledged support, but the real issue is the return of the refugees and ensuring

justice for the victims who faced atrocities at the hands of the Myanmar military. The ultimate fate of the

13 lakh refugees is being debated and it is not clear where they will finally reside. Further, there are

concerns about the way this growing population is altering the demography of Chittagong. There is fear

of an epidemic outbreak. “We detected cases of cholera and isolated them and immunised the rest.

Another 6,000 suspected diphtheria cases were identified and an immunisation drive was carried out,”

said Mr. Nikaruzzaman. To prevent open defecation, 50,000 toilets have been built. The real issue is the

return of the refugees. There is palpable tension whenever anyone wants to know about the plan of

return. “We will return when Myanmar ensures our future. But where will we go as most of our property

is destroyed,” said Abdul Aziz, a Rohingya man. They have to return home, says Bangladesh.

12. On PM Modi's visit to Japan (Relevant for GS Prelims, GS Mains Paper II; IOBR)

Ever since they institutionalised annual summit-level meetings in 2006, India and Japan have held a

closely aligned world-view. Prime Minister Narendra Modi now heads to Japan for meetings with his

Japanese counterpart, Shinzo Abe, and they are expected to take stock of all the challenges they face,

notably with regard to the U.S. and China.

What are the challenges from US?

President Donald Trump’s recent actions on trade tariffs, sanctions against Iran and Russia, as well as the

U.S.’s exit from several multilateral and security regimes are impacting both countries in different ways.

For India, the impact is more direct, as the economy has been hurt by new American tariffs, review of its

GSP (trading) status, and restrictions on visas for professionals. Moreover,

possible U.S. sanctions over Indian engagement with Iran as well as defence purchases from Russia pose

a looming challenge.

For Japan too, U.S. trade tariffs are a concern and Washington’s exit from the Trans-Pacific Partnership is

corralling Southeast Asian countries into a free trade regime under Chinese domination. In addition, the

U.S.’s on-again, off-again nuclear negotiations with North Korea are keeping Tokyo on tenterhooks.

India and Japan must closely cooperate on how to manage these challenges from the U.S. while

maintaining their growing security ties with Washington, as members of the trilateral and quadrilateral

formations in the Indo-Pacific.

Challenges from China

The other common concern is managing an increasingly influential China. Mr. Abe will meet Mr. Modi a

day after he returns from a visit to Beijing, the first by a Japanese Prime Minister in seven years. Mr. Modi

has re-engaged Beijing through multiple meetings with President Xi Jinping this year. The Prime

Ministers are bound to compare notes on the way forward with their common neighbour, especially on

building and financing alternatives to China’s Belt and Road projects for countries along the “Asia-Africa

growth corridor”.

India-Japan ties

On the bilateral front, there are several loose ends that Mr. Modi and Mr. Abe will work to tie up.

The Shinkansen bullet train project has gathered speed, with the Japan International Cooperation Agency

releasing the first tranche of Rs. 5,500 crore recently. But it could still run into delays over land acquisition

issues.

India and Japan have stepped up military exchanges, and will begin negotiations on a landmark

acquisition and cross-servicing logistics agreement. However, there has been little movement on the

pending purchase of ShinMaywa US-2 amphibian aircraft.

And while Japanese investment has grown several-fold in India, trade figures are lower than levels five

years ago.

None of these issues is insurmountable, and the larger concerns of how to navigate uncharted and stormy

geopolitical terrain, while maintaining strong positions on the international rules-based order, are likely

to dominate Mr. Modi’s visit.

13. Trump not to attend Republic Day event (Relevant for GS Prelims, GS Mains Paper II; IOBR)

Donald Trump

U.S. President Donald Trump will not travel to India as the chief guest for the Republic Day Parade, and the

White House has conveyed its regrets to the Narendra Modi government.

Reason given by US

According to multiple government and diplomatic sources, a final decision has been conveyed to the

Ministry of External Affairs (MEA), with Mr. Trump’s “crowded calendar” being cited as the primary

reason for his not accepting the invitation.

Possible other reason

The sources, who did not wish to be identified since neither the MEA nor the White House has yet put

out a statement, also pointed to the uncertainties over the political situation in Washington, which made

it hard for the U.S. to confirm Mr. Trump’s attendance at the parade on January 26 in New Delhi.

The sources pointed to the State of the Union address that the U.S. President must give during the

Congress session around the same time in January.

Obama’s visit

In 2015, when U.S. President Barack Obama had come to India for the parade, he had been able to

negotiate to bring forward the address to January 20, and travelled to India after it. In the current

situation, however, the current Speaker, Paul Ryan, has resigned and Mr. Trump would not be able to

even begin the negotiations until December, when a new Speaker is elected by representatives going into

the mid-term elections on November 6.

14. Sri Lanka's political crisis (Relevant for GS Prelims, GS Mains Paper II; IOBR) Withdrawl

from ruling coalition and alliance with opposition

Sri Lankan President Maithripala Sirisena’s decision to withdraw his faction from the ruling coalition and replace Prime Minister Ranil Wickremesinghe with former President Mahinda Rajapaksa

has plunged the country into a political crisis.

This was further complicated, a day later, by the President’s move to suspend Parliament till November

16.

Deteriorating relationship between President and PM

Mr. Sirisena’s fast-deteriorating relationship with Mr. Wickremesinghe was an open secret, and there

were indications that he could be negotiating a possible partnership with Mr. Rajapaksa. But his sudden

and secret manoeuvre caught everyone, including senior politicians, completely unawares. And before

the details and implications of the political drama that was unfolding could sink in, Mr. Rajapaksa had

been sworn in Prime Minister.

Reaction of Wickremesinghe on removal from post of PM

Mr. Wickremesinghe has termed his replacement “unconstitutional” and maintains that he remains Prime

Minister. Confident of a majority, he has challenged the Rajapaksa-Sirisena combine to take a floor test in

the 225-member House. By suspending Parliament, Mr.

Sirisena is seen to have exposed his own insecurity about garnering the required strength. The next two

weeks will be crucial, with attempts at horse-trading and assertions of political loyalty amid uncertainty.

Problems in Sri Lanka

None of these is uncommon in Sri Lankan politics, but the circumstances, which are entirely of Mr.

Sirisena’s making, have led to a political upheaval that was avoidable. All this has come at a time of

economic fragility, with a plummeting rupee, soaring unemployment and rising living costs.

Sirisena at fault

Mr. Sirisena’s appointment of Mr. Rajapaksa even before voting out Mr. Wickremesinghe on the floor of

Parliament is nothing but blatant abuse of his executive powers. Guided by narrow political interests, the

President’s actions betray an utter disregard for the parliamentary process. In resorting to these

emergency measures, he has not only put democracy in serious peril but also let down Sri Lankans,

including a sizeable section of the Tamil and Muslim minorities that backed him in the critical 2015

election. The best forum to test political clout in a democracy is the legislature.

What were the expectations from the alliance?

An extra-parliamentary power struggle, that too using illegal means, heightens the risk of political

thuggery and unrest. Still recovering from the violence and bloodbath during its nearly three-decade-

long civil war, and grappling with the economic and social challenges in its aftermath, Sri Lanka cannot

afford to recede from the democratic space that opened up in 2015. Mr. Sirisena and Mr. Wickremesinghe

had come together in an exceptional political alliance that promised to put the country back on the path

of democracy, after a decade of Mr. Rajapaksa’s authoritarian rule. Leaving aside the irony of Mr. Sirisena

joining hands with Mr. Rajapaksa, who he had left and subsequently unseated from office, his desire to

consolidate power by hook or by crook is extremely unfortunate. Though much damage has been done

already, a fair vote must be ensured when Parliament reconvenes, if possible before November 16.

15. The lowdown on IL&FS cash crunch (Relevant for GS Prelims, GS Mains Paper III; Economics)

What is it?

The cash crunch and debt pile-up being faced by Infrastructure Leasing and Financial Services (IL&FS), a

major infrastructure finance and construction company, has led to concerns about risks in the entire non-

banking financial sector, a fear that spooked markets all of last week.

How did it come about?

The crisis began when it defaulted on a short-term loan from SIDBI a month ago. This was followed by a

series of defaults that led to a ratings downgrade. IL&FS Financial Services, a

100% subsidiary of IL&FS, has also defaulted on loans worth Rs. 440.46 crore since September 12. The

IL&FS funds long-term projects, of over 10 years, but its borrowings are of a lesser duration, which

widens the asset liability gap. Broking firm JM Financial pointed out that IL&FS has an aggressive asset

liability management profile. According to estimates, while for the one-year bucket, it has a positive

mismatch, but for three years there is a 17% negative mismatch. Asset liability mismatch turns negative

when the outflow of liabilities are more than the inflow of assets. Incorporated in 1987 and initially

promoted by the Central Bank of India, Housing Development Finance Corporation Limited (HDFC) and

Unit Trust of India (UTI), IL&FS has a complex structure with 169 subsidiaries. Over the years, its

shareholding has broad-based and it inducted institutional shareholders, including the SBI, the LIC, ORIX

Corporation of Japan, and Abu Dhabi Investment Authority. The LIC is the largest shareholder, with a

25.34% stake followed by ORIX which has 23.54%.

Why does it matter?

The IL&FS default rattled investors of non-banking finance companies, particularly housing finance

companies with stocks like Dewan Housing Finance and Indiabulls Housing Finance dropping

significantly. Banks and mutual funds are main sources of funding for housing finance companies and

other non-banking finance companies. While banks contribute 40% of the funding, mutual funds

contribute 30%. Mutual funds, in particular, have become a key source of short-term liquidity, with

estimates suggesting that NBFC commercial papers have gone up three times since March 2016, with MFs

now holding 60% of the total NBFC CP issuance. With the liquidity situation tight in September due to

factors like advance tax outflow and rush by banks to meet targets, problems for NBFCs compounded as

mutual funds too looked to cut exposure to the sector. Market estimates suggest mutual funds have

around Rs. 2,000 crore exposure to IL&FS. Both the banking regulator and the market regulator swung

into action. In a joint statement, the RBI and the SEBI said they are closely monitoring developments in

the financial markets and are “ready to take appropriate actions...” The RBI later decided to open the

liquidity tap by purchasing government bonds from open market operations. As of September 26,

banks had availed themselves of Rs.

1.88 lakh crore through term repos from the RBI. Following infusion of funds, short-term rates that have

spiked over 100 basis points in a week cooled down.

What lies ahead?

“IL&FS will not be allowed to collapse” — that was the statement of LIC chairman V.K. Sharma after a

meeting with Finance Ministry officials last week. The banking regulator has also avoided any knee-jerk

reaction so far and the strategy of the central bank is to be non- disruptive. The banking regulator also

met the large shareholders of IL&FS, though the RBI has refrained from commenting on the matter. The

IL&FS has initiated a three-way strategy to tide over the crisis: offer a rights issue, sell assets to repay

debt and address liquidity issues till the asset sale starts. It is planning to raise Rs. 4,500 crore through a

rights issue in which it will be issuing 30 crore equity shares at Rs. 150 per share. Its board has also

approved the recapitalisation of group companies of Rs. 5,000 crore in IL&FS Financial Services, IL&FS

Transportation, IL&FS Energy, IL&FS Environment and IL&FS Education.

16. Tricky call ahead: on RBI policy stance (Relevant for GS Prelims, GS Mains Paper III; Economics)

The Reserve Bank of India’s Monetary Policy Committee (MPC) is set to meet for three days, October 3-5,

to decide its policy stance.

What the RBI is expected to do?

With the U.S. Federal Reserve now firmly set on its policy normalisation path and having, just last week,

raised interest rates by 25 basis points, the RBI would normally be expected to increase benchmark

borrowing costs in India in a bid to prevent heightened outflows of rate arbitrage seeking foreign

portfolio capital. Additionally, the rupee’s depreciation of more than 12% against the dollar in 2018,

combined with crude oil’s continuing upward march — Brent futures closed at $82.73 a barrel on Friday

— raise the risk of India importing inflation from the higher price for its overseas energy purchases,

making the argument for a rate hike even more compelling.

After all, given its unequivocal inflation-targeting mandate, the MPC would be well justified in keeping

its sights firmly trained on the retail inflation trend and household expectations for future price gains.

Also, while headline CPI inflation eased appreciably in August to 3.69%, core retail price gains, which

exclude the food and fuel and light groups, was still running 190 basis points higher at 5.59%. It was

precisely this core element that Deputy Governor Viral Acharya cited in his statement at the MPC’s

August meeting when he said: “Underlying inflation as reflected in ‘ex food fuel’ segment, especially in

petrol and diesel, transportation (including fares), education fees, health services and clothing persists,

and does not augur well for headline inflation going forward.” Food prices that, surprisingly, have

remained benign, helping slow overall CPI inflation, could also start hardening once the impact of the

higher payout on the minimum support price for kharif crops kicks in.

What are the recent developments?

However, recent developments in the domestic financial system that have triggered concerns about the

health of the credit market are likely to roil the MPC’s rate-setting calculus. First, on September 23, the

RBI issued a one-sentence press release that along with the capital markets regulator it was “closely

monitoring” developments in the financial markets and they were ready to take “appropriate action”.

Four days later, on September 27, it announced a relaxation in the Liquidity Coverage Ratio for banks in a

move to soothe concerns about adequacy of liquidity.

Read together, the message from the banking regulator appears to be that it is keen to ward off any risks

to the availability and cost of short-term credit from any unforeseen financial market volatility. The tweak

to the LCR norms is expected to free up close to Rs. 2.5 lakh crore in additional liquidity, with half of it, or

Rs. 1.25 lakh crore, becoming available to the banking system at the more affordable repo rate of 6.5%. It

is this concern about the financial markets that will make the MPC’s task just a little trickier.

17. Rescuing IL&FS (Relevant for GS Prelims, GS Mains Paper III; Economics)

Response of government

The government finally intervened in the IL&FS crisis on Monday, superseding its board and appointing

new members, with banker Uday Kotak as chairman.

After a report from the Ministry of Corporate Affairs concluded that the affairs of the IL&FS holding

company and its group companies were being conducted in a manner that was prejudicial to public

interest, the government moved the National Company Law Tribunal(NCLT) for superseding the Board,

which was granted with immediate effect.

The NCLT also approved the induction of six directors recommended by the government. “The new

Board shall take up its responsibility with immediate effect, after following due procedures,” the Finance

Ministry said in a statement.

Why is IL&FS important?

The company is listed as “systemically important” by the Reserve Bank of India, and with over Rs.

1,15,000 crore of assets and Rs. 91,000 crore of debt, it is too big to fail. The interlinkages between IL&FS

and other financial sector entities such as banks, mutual funds and infrastructure players are too strong

and the company would have taken them all down with it if it were allowed to fail.

What is the analysis?

At this point, the problem appears to be one of liquidity and not solvency — it is a classic case of over-

leveraging, and an asset-liability mismatch caused by funding projects of 20-25 years payback period with

relatively short-term funds of 8-10 years. There is a felt need here for long- term finance sources for

infrastructure projects. The LIC and some insurance companies are the only domestic sources and they

too do not lend beyond 10 to 12 years.

Way forward

The Centre and the RBI should look at ways to deepen the debt markets where infrastructure players can

borrow long-term. It also needs to be analysed how a company listed as “systemically important”

managed to fly under the radar with misgovernance.

The debt pile-up due to over-leveraging did not happen overnight. How did the RBI, as the regulator,

miss the goings-on? Are the shareholders, which are well-known institutions, guilty of misplaced faith in

the management, or were they negligent? Finding answers to these questions is as important as rescuing

IL&FS.

18. The easing of SLR norms can release Rs. 2.5 lakh crore (Relevant for GS Prelims, GS Mains Paper

III; Economics)

What are SLR, CRR, and LCR?

SLR, or statutory liquidity ratio, is a measure of the reserves that commercial banks are required to hold

in the form of government bonds, gold, and similar liquid assets. CRR, or cash reserve ratio, is a measure

of the reserves that banks need to hold in the form of cash. LCR, or liquidity coverage ratio, is a measure

of highly liquid assets which can easily be converted into cash that banks are required to hold. All three

are policy tools used by the Reserve Bank of India (RBI) to influence the total amount of reserves held by

banks at any point in time. These reserve requirements, in turn, influence the amount of loans that banks

can extend to borrowers. So when the RBI tightens reserve requirements, banks are forced to cut down

lending and this causes money supply in the economy to shrink. Money supply rises when reserve

requirements are eased by the RBI.

Why are they in the news?

The RBI last week allowed banks to classify an additional 2% of the value of their SLR investments in

government bonds as high-quality liquid assets (HQLAs). The move, which could increase the overall

amount of assets that can be classified as highly liquid reserves by banks, can increase bank lending and

ease the availability of funds in the economy. It is estimated that the latest easing of SLR norms by the

RBI can release ₹2.5 lakh crore into the economy. The decision to reclassify SLR assets is part of the RBI’s

emergency measures to improve the availability liquidity in the economy. Borrowers like non-banking

financial companies (NBFCs) have had to to borrow at higher rates after investors turned cautious after

infrastructure lender IL&FS’s default. The RBI hopes that increased bank lending can help ease the crisis.

Can they solve the liquidity crisis?

The injection of fresh money through the banking system can help boost aggregate demand in the

economy. It, however, remains to be seen whether banks are willing to risk lending money to NBFCs and

other financial companies in the current environment. The move to ease reserve requirements is unlikely

to have any effect until this happens. Money market rates, however, did witness an immediate drop after

the RBI’s emergency measures suggesting that the RBI may be enjoying some success in calming the

nerves of investors.

19. IL&FS saga: All you need to know about Uday Kotak and team (Relevant for GS Prelims, GS

Mains paper III; Economics)

The new board of Infrastructure Leasing & Financial Services (IL&FS) was appointed by the Centre on

October 1, after it secured the approval of the National Company Law Tribunal (NCLT) to supersede the

previous board accused of ‘mismanagement’ and ‘compromise of corporate governance norms,’ leading

to financial issues.

Who comprises the Board?

The stewardship of the new board, entrusted with rescuing IL&FS from its own overreach, has been

handed to ace banker Uday Kotak, executive vice-chairman & managing director of Kotak Mahindra

Bank. Mr. Kotak will join hands with Vineet Nayyar, who has been named vice-chairman & managing

director and who had played a role in the rescue of Satyam Computer Services after its founder

Ramalinga Raju admitted to a massive accounting fraud. The board also includes former banking

secretary G.C. Chaturvedi and former SEBI chairman G.N. Bajpai, who had also served as chairman of

Life Insurance Corporation of India after a life-long career in the insurance monolith, which is also the

largest shareholder in IL&FS. Nand Kishore and Dr. Malini Shankar have been roped in as the other

directors, while C.S. Rajan’s name was added on October 3 after seeking fresh approval from the NCLT.

Why is a banker at the helm?

Mr. Kotak, 59, Asia’s richest banker, is a credible face and has headed several committees for the

government, including a 21-member SEBI committee on corporate governance. Mr. Nayyar is a retired

IAS officer credited with handling the Satyam Computers scam in 2009 and overseeing its transition and

turning it around when it was bought by the Mahindra Group. He will be involved in running the

company and its subsidiaries on a day-to-day basis. The 79-year-old is known for building teams of high

performers and running successful businesses.

Who will look after shareholders?

Mr. Bajpai is on the board of several companies and has been appointed as the head of the Shareholders’

Relationship Committee at IL&FS. His responsibility will be to unite the shareholders in the bid for the

reconstruction and, more importantly, the recapitalisation of the company. The shareholders include LIC,

ORIX Corporation, the Central Bank of India, Abu Dhabi Investment Authority, HDFC and the State

Bank of India. That the company’s current woes partly arise from the shareholders’ inability to agree on

the right valuation for bringing in fresh capital suggests that Mr. Bajpai has an unenviable task on hand.

Mr. Chaturvedi, a former IAS officer, will head the nomination and remuneration Committee to look into

the wages of employees as the former directors and top officials were accused of drawing high wages

even when the company was not doing well.

Dr. Shankar, an IAS officer now posted as Director-General of Shipping, has been appointed as the

chairperson of the corporate social responsibility committee of IL&FS. Mr. Kishore, a retired Indian Audit

& Accounts Service officer of the 1981 batch, has been appointed as chairman of the audit committee. He

will handle a crucial job as he has to untangle the financial knots and asset-liability mismatches that have

brought the company to its current

fate. He was formerly the deputy Comptroller and Auditor-General of India. Mr. Rajan is a retired IAS

officer and had previously served as the Chief Secretary of Rajasthan. He has been made a member of the

crucial audit and nomination & remuneration committees.

What is in store?

The seven-member board held its first meeting in Mumbai on October 4 to take stock of the imbroglio,

accepting the responsibility as a “national duty.” It will be a challenge to

restructure the defaulting company and reassure financial markets, especially lenders and bond-holders

rattled by missed payments.

20. Where IL&FS left its footprints (Read for understanding; Economics)

Building toll roads to tunnels

The company has a nation-wide presence, with several ongoing and completed projects across verticals

from Tamil Nadu to Jammu & Kashmir (J&K). Here's a snapshot of a few high-value projects that are in

progress

Jammu & Kashmir

14.5km Zoji La tunnel connecting Leh and Srinagar

Estimated cost: Rs.6809 cr.

Work began in May 2018 and is estimated to be completed by 2026. 6.5km Z-Morh

tunnel betweeen Leh and Srinagar

Estimated cost: Rs.2700 cr.

Started in 2015, expected to be completed by May 2020.

Maharashtra

Four-laning a section of NH-6 in Maharashtra

Estimated cost: Rs.581.96 cr.

Contract awarded on Dec 1, 2017, expected completion by 2019.

Uttar Pradesh

Phase 3 of Rapid Metro Rail

Cost, routes still being worked out

Karnataka

Station and viaduct construction on the Mysuru Road to Kengeri stretch Estimated

cost: Rs.327 cr.

Awarded in 2015, work still in progress

Construction of Metro line on Silk Board-Bellandur stretch

Estimated cost: Rs.433.26 cr.

Completed projects:

The sports hub, Thiruvananthapuram

Delhi-Noida toll bridge

Chennai-Nashri tunnel, J&K

GIFT city, Gujarat

21. When IL&FS led its path to bailout (Relevant for GS Prelims, GS mains Paper III; Economics)

IL&FS' newly constituted board on Friday called for a full audit of the company’s accounts. It also

decided to initiate austerity measures. How did the conglomerate almost collapse despite being one of the

biggest infrastructure and financing companies? The timeline and graph trace the series of events.

Timeline of trouble

July 21: Group’s founder and chairman Ravi Parthasarathy steps down, citing health reasons

August 28: Defaults on repayment of commercial paper September

12-26: Defaults on several loans

September 15: Former LIC Chairman SB Mathur takes over as IL&FS Chairman

September: ICRA, CARE, Brickwork downgrade many of the company's loans, debentures and

commercial papers to 'default' or 'junk' status

October 1: The National Company Law Tribunal allows the government to supersede the board and

reconstitute it. Banker Uday Kotak is appointed chairman and Vineet Nayyar becomes vice-chairman and

MD

The sum of short-term and long-term borrowings of the company stood at ₹91,091 crore in 2017-18.

Short-term borrowings, which constituted 9.9% of total borrowings in 2013- 14, accounted for nearly 15%

of the total borrowings in 2017-18

22. IL&FS saga: Why was debt pile-up overlooked? (Relevant for GS Prelims, GS mains Paper III;

Economics)

What happened?

Much before the crisis at Infrastructure Leasing & Financial Services (IL&FS) came out into the open last

month, mutual funds were comfortably holding bonds – commercial paper, debentures, structured

obligation – issued by the company amounting to nearly Rs.3,500

crore. There was no real cause for concern as IL&FS was just one of the many non-banking finance

companies (NBFCs) whose investment grade papers fund houses were sitting on.

There was no downgrade, default or any other red flag to make fund managers sit up and evaluate the

exposure. To put it in context, IL&FS was a tiny part of the overall debt exposure of mutual funds to

NBFCs and other brokerages, which was pegged at Rs.11.25 trillion as on September 30. This is a little

over 51% of the total assets under management (AUM) — Rs.22.04 trillion — of mutual funds in India.

But everything changed when two IL&FS group entities were downgraded early in September that

directly put around Rs.1,000 crore worth of debt papers at risk. Since then, questions have been

repeatedly raised about the quality of assets that fund houses are holding and whether they need to act

on them.

Why were red flags not raised?

While all fund houses have an internal valuation policy for debt instruments, it typically gets triggered

only after a security is downgraded by rating agencies such as CRISIL and ICRA. Once the instruments

fall below investment grade, it is the call of the fund houses to value it. The Securities and Exchange

Board of India (SEBI) mandates that once a non- government security falls below investment grade, it has

to be valued at a discount of 25% to its face value. While there is a valuation policy in place, a fund house

can decide whether it wants to gradually mark down the asset or just write it off — the latter a rare

recourse when the downgrades or defaults are swift and sudden. Any mark-down or write-off impacts

the net asset value (NAV) of the scheme and hence fund houses prefer to gradually mark down securities

where there is a risk of delay in payment or even default.

Incidentally, many in the industry feel that this is not a very prudent manner of mark-down since

investors who choose to stick to the fund till the end bear the maximum brunt.

Recently, BOI AXA Mutual Fund did a complete write-off of IL&FS securities in its Credit Risk Fund

amounting to a little over Rs.100 crore. DSP Mutual Fund and a few other fund houses have, meanwhile,

marked down their exposure to IL&FS after the company defaulted on payment. Till September, fund

houses have written off Rs.1,125 crore of their exposure to commercial papers of IL&FS, according to data

from Value Research.

Why is the rescue important?

On a standalone basis, IL&FS may constitute a small portion of the overall debt assets of mutual funds,

but a default creates a ripple effect for all NBFCs as the cost of funds goes up with mutual funds

becoming wary of buying such securities. According to industry players, NBFCs have already seen the

cost of funds going up by 20-30 basis points in the last one month. A direct quantifiable impact is visible

in the stock markets wherein many of the listed NBFCs have seen their value erode by more than 50%,

compared to their recent highs.

If IL&FS had been allowed to collapse, it would have impacted the whole NBFC industry and hit housing

finance, capital market fund raising, margin financing and even retail loans to a large extent. A recent

report by the government sent to the Ministry of Corporate

Affairs (MCA) said a default by IL&FS could have significant repercussions, including widespread

redemption pressures, sell-off in the debt market, liquidity crunch and 1,500 smaller NBFCs shutting

shop for lack of adequate capital. The government said that avoiding a default would require a

combination of measures of asset sales, restructuring of some liabilities and fresh infusion of funds by

investors and lenders. The RBI is believed to be looking at strengthening the regulatory framework to

avoid asset liability mismatches by NBFCs.

23. Independent payments regulator? (Relevant for GS Prelims, GS Mains Paper III; Economics)

Difference in opinion of RBI and Union government

The Reserve Bank of India (RBI) and the Union government are once again at loggerheads over the

legitimate extent of their powers. In a rare gesture, the central bank last week made public its reservations

against the government’s plans to set up an independent payments regulator, potentially setting the stage

for a regulatory turf war.

What is the difference of opinion?

In a strongly worded dissent note against the inter-ministerial committee for the finalisation of

amendments to the Payment and Settlement Systems Act, 2007, published on its website on Friday, the

central bank observed that it would prefer the Payments Regulatory Board to function under the purview

of the RBI Governor.“There is no case of having a regulator for payment systems outside the RBI,” the

note read.

What is the logic of RBI?

1. In support of its stance, the RBI stated that the activities of payments banks come well within the

purview of the traditional banking system, which the central bank oversees as the overarching financial

regulator. So, according to this logic, it might make better sense to have the RBI oversee the activities of

payments banks as well instead of creating a brand new regulator for the growing industry. “Regulation

of the banking systems and payment system by the same regulator provides synergy,” it noted.

The RBI, in essence, is pointing to the interconnection between the payments industry and the banking

system to back the extension of its regulatory powers.

2. The RBI’s case makes good sense when seen from the perspective of the cost of regulatory compliance.

As stated above, there is definite overlapping between the current regulatory powers of the RBI and the

proposed regulations for the payments industry.

3. A unified regulator can thus help in lowering the compliance costs and enabling the seamless

implementation of rules.

4. Further, there is the real risk that a brand new regulator may be unable to match the expertise of the

RBI in carrying out necessary regulatory duties.

5. So it makes better sense to have the RBI take charge of the rapidly growing payments industry which

can ill-afford regulatory errors at this point.

The fact that the RBI has made public its dissent against the Union government’s idea, suggests that the

central bank has serious problems with the dilution of its current powers over the financial sector.

However, the RBI’s demand for the centralisation of regulatory powers also brings with it the need for

exercising a greater degree of responsibility. At a time when there are increasing risks to the stability of

the domestic financial system, both the government and the RBI must look to work together to tackle

these risks instead of battling over regulatory powers.

24. Wider tax base but lower share of direct taxes (Relevant for GS prelims, GS Mains Paper III;

Economics)

Increase in tax base

The steps taken by the Union government over the last few years to widen its tax base may finally be

yielding some rewards. The total number of tax returns filed in the country increased by over 80% over

the last four financial years, according to data released by the Central Board of Direct Taxes on Monday:

from 3.79 crores in 2013-14 to 6.85 crores in 2017-18.

Direct tax –tax to GDP ratio

Further, the direct tax to GDP ratio rose to 5.98% in 2017-18, the highest it has been in the last 10 years.

The average income reported by individual and corporate taxpayers also witnessed a significant rise in

the last three years. With tax growth rate surpassing the growth in GDP, the tax buoyancy factor rose to

1.81.

Reasons for rise

This rise in tax compliance has been attributed to the various measures taken by the Union government to

increase compliance, including better gathering of information about sources of income, ease of getting

refunds, and lowering of various other tax compliance costs. The total direct tax collection is estimated to

be over Rs. 10 lakh crore in 2017-18, an increase of about 18% from the previous year.

Overall share of direct taxes

The widening of the tax base is clearly good news for a government which, from the very beginning of its

tenure, has declared its intent to improve tax collections. But the contribution of direct taxes to the total

amount of taxes collected by the government, which is currently 52.29%, is still below what it was when

Narendra Modi became Prime Minister.

Reduction in share

In fact, the share of direct taxes has fallen every single year since 2013-14, except this year. It is also far too

low when compared to its peak of over 60% in 2009-10. In other words, most of the rise in the total tax

collection in the last few years has come from indirect tax collections. This year, direct tax collection

increased at a higher rate compared to the collection of indirect taxes.

Why Direct taxes should rise more?

Going forward, a further increase in the share of direct taxes will help the government to lower regressive

indirect taxes that impose a significant burden on the poor. Direct taxes are also a better choice from the

standpoint of economic efficiency as they help avoid the severe distortionary effects of indirect taxes such

as the Goods and Services Tax.

Concerns on direct tax front

Amidst increasing global tax competition, India is likely to face pressure to bring down corporate tax

rates if it wants to maintain its stature as an attractive investment destination. Efforts to draft a new direct

tax code, however, are yet to yield fruit due to bureaucratic delays. The government will do well to

address this issue.

25. Liquidity squeeze hurts NBFCs (Relevant for GS Prelims, GS Mains Paper III; Economics)

What’s up with NBFCs?

Shares of non-banking financial companies (NBFCs) have witnessed a steep fall in recent weeks after

concerns over whether they can successfully meet their short-term dues. Housing finance companies

(HFCs) in particular have seen their shares punished severely over fears of a severe liquidity crisis.

Dewan Housing Finance has been the worst hit among HFCs. The current crisis began with the default of

Infrastructure Leasing and Financial Services on several of its dues last month. The Union government

subsequently decided to step in and assure lenders to the company that their money would be paid back

safely without any default.

How did they get into trouble?

Many NBFCs use short-term loans borrowed from the money market to extend long-term loans to their

customers. This leads to a mismatch in the duration of their assets and liabilities and exposes NBFCs to

the substantial risk of being unable to pay back their lenders on time. NBFCs usually resort to rolling

over, or refinancing, their old short-term debt with new short-term debt to compensate for the mismatch

in duration. But even though NBFCs usually manage to roll over their short-term debt smoothly, there

are times when they may fail to do so. Such risk is high particularly during times of crisis when lenders

are affected by fear. In such cases, they may have to resort to sale of their assets at distress prices to meet

their dues. This can turn a liquidity crisis into a more serious solvency crisis, wherein the total value of

the assets of a company falls below the value of its total liabilities. Further, NBFCs also face the risk of

having to pay higher interest rates each time they refinance their short-term debt. As interest rates rise

across the globe,

equity investors believe that the cost of borrowing of NBFCs will rise and affect their profit margins. This

is seen as the primary reason behind the fall in the shares of many NBFCs. Investors may be pricing in the

prospect of falling profits for NBFCs in the coming quarters.

What lies ahead?

It is estimated that NBFCs need to repay about Rs. 1.2 trillion of short-term debt in the current quarter.

How they manage to meet these dues remains to be seen. It is hoped that banks will offer a helping hand

to NBFCs to meet their short-term dues to lenders like mutual funds. Many further believe that a

widespread financial panic may not be on the cards as the government will act as a lender of last resort.

Such bailouts, however, create the risk of moral hazard in the wider financial system. NBFCs, for

instance, may continue to borrow short-term to extend long-term loans to their customers because they

expect the government to bail them out if they get into trouble. In fact, some believe that financial

institutions in general have traditionally resorted to borrowing short-term to finance long- term loans

simply because there is an implicit guarantee extended by the government. As the cost of borrowing

funds rises, NBFCs may have to settle for lower profits unless they find a way to pass the burden of

higher rates on to borrowers.

26. Gujarat acts to save its pride (Relevant for GS Prelims, GS Mains paper III; Environment)

What has happened?

Stunned by the deaths of 23 lions since September 12, the Gujarat government, which initially insisted

that the lions had died due to infighting for territorial domination, has now sprung into action and

launched not only rescue efforts but also called experts from outside, including London, and imported a

vaccine from the United States.

What is the reason behind deaths?

In possibly the worst-ever tragedy in the Gir forest, the only abode of Asiatic lions in the world, apart

from the 23 lions that have died since September 12, as many as 36 are battling for their lives as a deadly

outbreak of Canine Distemper Virus (CDV) and tick- borne Babesiosis is killing the great cats famously

known as Gujarat’s pride.

According to the State Forest Department, of the 23 deaths, four lions died of CDV, and 17 were killed by

a tick-borne infection. The cause of death of two lions is yet to be ascertained.

Previous warnings

According to experts, the Gujarat government was warned in 2011, when the Centre for Animal Disease

Research and Diagnosis (CADRAD), Bengaluru, and the Indian Veterinary Research Institute (IVRI),

Uttarakhand, analysed tissues from a 2007 Gir lion carcass and found the presence of highly contagious

Peste Des Petits Ruminants Virus (PPRV), which carries an 80%-100% chance of mortality. Subsequently,

four lions sent from Gujarat to the Lion Safari Park in Uttar Pradesh in 2014, died of CDV in 2016.

27. Gir Sanctuary lion deaths (Relevant for GS Prelims, GS Mains Paper III; Environment)

How serious are the lion deaths in Gujarat?

A canine distemper virus (CDV) has led to many deaths in the Gir sanctuary. In September alone, 21 lions

died. Every year, it is normal for 80-90 lions to die in Gujarat, according to wildlife experts. There is no

number yet on how many have died this year, so we don’t know if there has been a spike.

Wildlife experts say that more than the numbers, it is the fear that mutation in a virus could have caused

deaths that is perturbing. Scientists at the National Institute of Virology, Pune have confirmed the CDV

virus in only five of the dead lions. But many more may have taken sick. Experts say that the virus may

have jumped from dogs to lions.

What is Canine Distemper?

This is a viral disease that is frequent in dogs, foxes, wolves, big cats and even primates. It is caused by a

single-stranded RNA virus of the familyParamyxoviridae (the family of viruses causing measles, mumps

and bronchiolitis in humans). It infects the spinal cord and brain and also the respiratory and

gastrointestinal tracts. The virus is believed to have a 50% fatality rate in dogs.

In 1994, the CDV was responsible for an epidemic in the Serengeti region of Africa, where 1,000 lions died

in three weeks. Its prevalence in India has not been studied and only a few reports are available

regarding its detection in wild carnivores.

How can the outbreak be checked?

The lion population should be immediately vaccinated with the available vaccine for CDV.

At present, most of the available vaccines are made of CDV American genotypes 1 & 2. These have been

used in a number of countries and found to be effective.

As the CDV is transmitted by airborne route as well as infected body secretions, healthy lions from the

Gir forest ought to be shifted to an alternative suitable location. Moreover, as many of the Gir lions live

outside protected areas and are in contact with domestic dwellings, their susceptibility to new pathogens

has risen, according to scientists.

In 2013, the Supreme Court had called for shifting of some lions from Gujarat to Madhya Pradesh to “to

save [them] from extinction, due to catastrophes like epidemic”. However, this is yet to happen.

Wildlife experts say vaccination is a bad idea as it could introduce new complications to the immune

systems of the wild lions and make them vulnerable to unknown viruses.

28. The lowdown on NCR's air quality (Relevant for GS prelims, GS Mains Paper I; Environment &

Biodiversity)

What is it?

Swinging between ‘poor’ and ‘very poor’ air quality for the past two weeks, the National Capital Region

seems set for another lung-clogging winter this year. Figures released by the Union Health Ministry early

this week showed the total emissions of Particulate Matter (PM) less than 2.5 micrometre in diameter

increased by 15% in 2018, compared to 2010. Government figures show the levels of PM 2.5, a known

carcinogenic, have gone up, with the transport sector contributing 40%, and wind-blown dust from road

and other sources 21.5%. The Central Pollution Control Board said PM 10 levels mid-week this time

stood at

326.8 micrograms per cubic metre, three times higher than the prescribed limit. “Dropped wind speed,

change in the direction of wind to northwest bringing in pollution from stubble- burning in Punjab and

Haryana, increasing vehicular traffic owing to the festive season, lowered temperature, garbage dumping

and waste burning are contributing to the rising pollution levels in the city,” said a senior official of the

Ministry.

How did it come about?

Winter air will turn more toxic soon, warned Anumita Roychowdhury, executive director, Research and

Advocacy, Centre For Science and Environment, due to toxic emissions from vehicles, industrial units,

waste-burning, land-fill fires, and dust from construction and roads and stubble- burning. Current data

from the Ministry of Earth Sciences show vehicles and industrial share in Delhi’s air pollution has

increased over time by 40% and 48% respectively. There is, however, some relief expected from the

closure of the Badarpur power plant, generator sets, and brick kilns and also from the ban on pet coke

and furnace oil and introduction of BSVI fuels in Delhi, she said.

Why does it matter?

The present air quality has become a threat to the people. High pollution levels directly harm skin. It can

cause watering of eyes and nose. Smaller particles less than 2.5 micron can directly enter our body

through the respiratory pathway. Sandeep Nayar, head of the department, respiratory medicine, allergy

& sleep disorder, BLK Super Speciality Hospital, said: “The immediate symptoms include breathlessness,

cough, fever and even choking sensation. Our nervous system also gets affected and we may have

headache and dizziness. Nausea and vomiting may occur. Studies have shown direct harmful effect of

pollution on our heart also.” Within a week of pollution spiking, Delhi has registered a jump in the

number of patients coming to out-patient departments.

Dr. Puneet Khanna, interventional pulmonology, respiratory and sleep medicine, Aakash Healthcare

Super Specialty Hospital, said that with winter approaching, smog increases in Delhi. This causes a rise in

cardiac risks such as heart attack and chest pain.

What lies ahead?

Experts have listed measures to lower the ill-effects of pollution. Delhi has brought in a graded action

plan for emergency response. The plan includes shutting of the Badarpur thermal power station and

water sprinkling and mechanised sweeping of select roads. “We know what to do, whom to hold

responsible and the time line for implementation. But the next big challenge is to ensure that these plans

are implemented with utmost stringency, with strong compliance across all sectors,” said Ms.

Roychowdhury. These plans seek a transition to clean energy in all sectors and an overhaul of waste

management practices. Experts want the State governments to micro-map pollution hotspots across Delhi

and the NCR for customised action. The Environment Pollution (Prevention and Control) Authority has

also asked all agencies to enforce the graded response action plan. Ms. Roychowdhury emphasised the

need to have a comprehensive plan for systemic reforms round the year.

29. Decentralised sludge management systems: on Ganga rejuvenation (Relevant for GS Prelims, GS

Mains paper III; Environment)

Poor sanitation situation

Bad sanitation is India’s worst-kept secret, but recent data from Uttar Pradesh show that in spite of

working in mission mode to expand sanitation, 87% of faecal sludge expelled from toilets in urban areas

is untreated. Viewed against the 2030 goal to achieve clean water and sanitation for all under the UN

Sustainable Development Agenda, this depressing statistic shows how much work remains to be done.

State support for improved housing and planned development has never been strong, and the National

Urban Sanitation Policy of 2008 has not changed that significantly.

High faecal discharges

At the national scale, a United Nations report of 2015 estimates that 65,000 tonnes of untreated faeces is

introduced into the environment in India annually. The Swachh Bharat Abhiyan promised a major shift,

but it has focussed more on the basic requirement of

household and community toilets in rural and urban areas. The study in U.P. conducted by the Centre for

Science and Environment has now exposed broken links, of faecal sludge and septage being collected

from household tanks and simply discharged into drains, open land and wetlands. The problem of the

waste not being contained, collected without manual labour, transported and treated safely is becoming

graver. It is now time for a new approach.

What can be done?

This has to be decentralised and different from the strategy being used to clean the Ganga, for which the

NDA government announced an outlay of Rs. 20,000 crore in 2015. That strategy relies on large sewage

treatment plants for riverside cities and towns.

What is the explanation?

Immediate investments in decentralised sludge management systems would bring twin benefits: of

improving the environment and reducing the disease burden imposed by insanitary conditions. It is

welcome that the CSE study is being followed up with a mapping exercise on the flow of faecal waste

streams in individual cities.

The results for Varanasi, Allahabad and Aligarh in particular should be revealing, since the collection

efficiency for sludge in these cities ranges from just 10% to 30%.

What is to be done?

One immediate intervention needed is the creation of an inter-departmental task force to identify land to

build small treatment systems for sludge, and to provide easily accessible solutions to houses that are

currently discharging waste into open drains. The business of emptying faecal material using tanker

trucks needs to be professionalised and de- stigmatised.

It is untenable that manual scavengers continue to be employed in violation of the law to clean septic

tanks in some places, and caste factors play out in the recruitment of workers even in the mechanised

operations. All aspects of the business of sanitation need reform if India is to meet Goal Number 6 of the

Sustainable Development Goals with egalitarian policies. A large State such as Uttar Pradesh provides

the opportunity to demonstrate commitment to policy. Success here can transform lives.

30. Gaganyaan mission (Relevant for GS Prelims, GS Mains Paper III; Science & Technology)

What is the target?

Gaganyaan is the human space flight Programme in 2022, 75th independence day year.

.A 15-year-old space dream coming true

ISRO revealed the first germ of an HSP in November 2004 and got incremental funds for supporting

projects over the next few years. It could not go ahead mainly because the GSLV MarkIII vehicle was not

ready until last year.

.

The most critical elements of the human mission are the Environment Control and Life Support Systems

that make the crew capsule liveable and the flight safe for the astronauts. Food and hygiene are other

aspects. These technologies are getting ready while space suits are being developed at ISRO, he said.

Facilities are being added or upgraded at a few centres that work on the HSP. The spacecraft will be

monitored 24/7 from the ISRO Telemetry Tracking and Command Centre in Peenya. A new dedicated

control centre for HSP would be set up at ISTRAC. It must be tracked globally through ISRO stations or

of other countries.

The launchpad at the Sriharikota spaceport, the Satish Dhawan Space Centre, would be enhanced for the

human mission. The Space Applications Centre which makes electronic devices and instruments for ISRO

missions will also get refurbished.

While formal agreements are not yet in place, ISRO will collaborate with the Indian Air Force and its

Institute of Aerospace Medicine, Bengaluru, to train astronauts. Various defence labs will be tapped for

crew support systems.

Much of the work related to ramping up of infrastructure and supply of hardware would be outsourced

to industry in a major way and academia would be involved.

31. Centre initiates probe into type-2 polio virus contamination (Relevant for GS Prelims, GS Mains

Paper III; Science & Technology)

What has response of government?

The Union Health Ministry has ordered an inquiry into the type-2 polio virus contamination detected in

the vials used for immunisation in Uttar Pradesh, Maharashtra and Telangana, and has ordered

additional immunisation in three States.

The government, which has stepped-up surveillance after the breach, has said, “That all possible

precautions have been put in place to ensure that polio doesn’t resurface.’’

Virus strain

Traces of polio type-2 virus were found in some batches of oral polio vaccine (OPV) manufactured by a

Ghaziabad-based pharmaceutical company, even as the firm’s Managing Director (MD) was arrested this

past week.

The MD of Biomed Private Limited, which was supplying polio vaccines for only government-run

immunisation programmes, was arrested after the Central Drug Regulator filed an FIR in the case. Four

of its Directors are absconding and the Drugs Controller General has issued it a showcause notice, asking

it to stop manufacturing the vaccine.

Why it is a cause of worry?

The last case due to type-2 wild poliovirus globally was reported from Aligarh in India in 1999. India was

declared polio free in 2014 and the last case was reported on 13 January 2011, when Rukhsar from Howrah

was infected with type-1 polio

India eliminated the type-2 strain in 2016, and the type-2 containing poliovirus vaccine (ToPV) was

phased out in April 2016. Children born after April 2016 in India have no immunity to type- 2 polio virus.

There are three serotypes of poliovirus, each of which causes poliomyelitis. The vaccine used by the

World Health Organisation (WHO) in the global eradication effort is a trivalent preparation comprising

all three serotypes.

32. India signs $5.43 billion S-400 missile deal with Russia (Relevant for GS Prelims, GS Mains Paper

III; Science & Technology)

What is the outcome of the recent visit?

The 24-hour visit of Russian President Vladimir Putin to India once again reaffirmed Moscow’s place as

India’s biggest and most important defence partner. The two countries signed a $5.43 bn deal for five S-

400 missile systems on the sidelines of the summit meeting between Prime Minister Narendra Modi and

Mr. Putin in addition to concluding eight other agreements.

The eight agreements span diverse areas ranging from space and nuclear cooperation to railways and

agriculture. The two countries have also set a target of $30 billion bilateral trade by 2025.

He also extended an invite to Mr. Modi to Vladivostok for a business summit in September 2019.

What is the significance S-400 deal?

While India has a long history of signing big ticket defence deals with Russia,this deal comes at a time of

increased friction between the U.S. and Russia and New Delhi’s own deepening defence cooperation with

Washington.

Deliveries will begin in 24 months, which is end 2020.

What is the US angle to the deal?

The U.S. has warned the deal could attract sanctions under the Countering America's Adversaries

Through Sanctions Act (CAATSA) law that restricts defence purchases from Russia, Iran and North

Korea.

U.S. officials have stated that under CAATSA, it is payments and not signing of deals that triggers the

sanctions. But as per procedure, when a deal is signed payment to the tune 10- 15% of the contract value

is made.

“In this deal, 15% advance payment would be done,” an official has confirmed adding that payments

would be through rupee-rubble exchange. This means today’s deal would automatically trigger

sanctions.

This deal is being seen as a reiteration of India’s “strategic autonomy” in its foreign policy and can have

serious implications on India’s relationship with the US.

US non-committal on waiver

Responding to the S-400 deal, the U.S. embassy remained non-committal is India would get a waiver. A

U.S. embassy spokesperson said in a statement that the intent of CAATSA is to impose costs on Russia for

its “malign behaviour” and it is “not intended to impose damage to the military capabilities of our allies

or partners.”

“The waiver authority is not for a blanket waiver. It is transaction-specific. There are strict criteria for

considering a waiver. Waivers of CAATSA section 231 will be considered on a transaction-by-transaction

basis. We cannot prejudge any sanctions decisions,” the spokesperson added.

33. Why is the Facebook data breach serious? (Relevant for GS Prelims, GS Mains Paper III; Science

& Technology)

What happened?

On September 16, Facebook noticed an unusual spike in the number of times the platform’s ‘View As’

feature was being used. The feature allows users to see how their Facebook page will appear to another

user. On September 25, Facebook announced that it had identified this as a malicious activity in which the

access tokens of 50 million users were appropriated by unknown hackers, and certain personal details

possibly accessed.

What is an access token?

An access token is a digital key that allows users to stay logged into Facebook on a device or browser

without having to sign in repeatedly using their password. It extends its reach to other apps or services

that users sign into using their Facebook account. If hackers have the access tokens, they do not require

passwords to get into Facebook accounts or apps like Instagram that utilise the Facebook login.

What did hackers do?

The ‘View As’ feature was introduced by Facebook as a privacy control feature, allowing users to check

the information they were sharing with others. But this proved to be an Achilles’ heel because of some

bugs that were introduced in the software in July 2017. According to Techcrunch, while using the ‘View

As' feature, Facebook’s video uploader tool also appeared on the page at times, generating an access

token that was not the user's but of the person the user was looking up. For example, if Hacker A selected

User B for ‘View As,’ and the video uploader appeared on the page, it generated an access token for User

B which was then available to Hacker A.

What was Facebook’s response?

Facebook had to force the affected 50 million users, and an additional 40 million users who had used the

‘View As’ feature since last July to log in again so that their access tokens changed. Facebook has since

said it has resolved the bugs that caused what is said to be the

largest breach in the history of the platform. Facebook is said to be working with the FBI on the issue. It

also informed the Irish Data Protection Commission, since the European Union’s strict new data

protection law states that it has to be informed within 72 hours if anyone in the European Economic Area

is affected. The Commission has started a probe, and Facebook faces a fine that could go over a billion

dollars.

Why is it significant?

This breach again puts the spotlight on the vulnerabilities of Facebook, the digital behemoth that claims

over two billion users and along with Google controls more than half of the global digital advertisement

revenue. It was caught on the wrong foot earlier this year when the Cambridge Analytica scandal broke,

revealing that data of up to 87 million users were harvested and used for political campaigning. There are

ongoing investigations into that scandal, and the new breach is not helping Facebook redeem itself. Aside

from the direct impact of private data being accessed, massive data sets allow for psychological profiling

a la Cambridge Analytica. This could lead to targeted political advertising and manipulation, especially

at a time when crucial mid-term elections are due in the United States and in India. It also undermines the

faith in the ‘single sign-in.’ The Facebook sign-in has been utilised by a whole set of services, from gaming

apps to news apps, as a way to log in to their sites or apps based on the idea that large digital entities like

Facebook and Google provide better security. This trust now stands shaken. While Facebook has

reportedly refreshed the access tokens of all affected parties, the extent to which the hackers had access to

connected third-party apps remains unclear.

34. C-section use doubled in India between 2005 and 2015: Lancet (Relevant for GS Prelims, GS

Mains Paper III; Science & Technology)

Rise in use of caesarean section

The number of babies born in India through caesarean section increased from 9% in 2005- 6 to 18.5% in

2015-16, according to a series of three papers published in The Lancet journal, which also found that C-

section use almost doubled worldwide between 2000 and 2015.

Overuse

While the surgery is still unavailable for many women and children in low-income countries and regions,

the procedure is overused in many middle-and high-income settings, said researchers, including those

from Ghent University in Belgium.

High inter-region differences

In the 10 countries with the highest number of births in 2010-2015 period, there were large differences in

caesarean section or C-section use between regions. For instance, differences between provinces in China

ranged from 4% to 62%, and inter-state differences in India ranged from 7% to 49%.

What are the overall trends?

Globally, C-section use has increased by 3.7% each year between 2000-2015 — rising from 12% of live

births (16 million of 131.9 million) in 2000, to 21% of live births (29.7 million of 140.6 million) in 2015,

researchers said.

In India, C-section use went up from 9% of births in 2005-6 to 18.5% in 2015-16, the research found.

What is C-section?

C-section is a life-saving intervention for women and newborns when complications occur, such as

bleeding, foetal distress, hypertensive disease, and babies in abnormal position.

Risks involved

However, the surgery is not without risk for mother and child, and is associated with complications in

future births, researchers said. It is estimated that 10-15% of births medically require a C-section due to

complications, suggesting that average C-section use should lie between these levels.

In at least 15 countries, C-section use exceeds 40%, researchers said.

The South Asia region has seen the most rapid increase in use (6.1% per year), with C- section being

underused in 2000 but being overused by 2015 (increasing from 7.2% of births via C-section to 18.1%).

Improvements have been slow across sub-Saharan Africa (around 2% per year), where C- section use has

remained low, increasing from 3% to 4.1% of births in West and Central Africa, and from 4.6% to 6.2% in

Eastern and Southern Africa.

“Given the increasing use of C-section, even when medically not required, there is a crucial need to

understand the health effects on women and children,” said Professor Jane Sandall from King’s College

London.

35. India needs to strengthen and implement regulations on antibiotic misuse (Relevant for GS

Prelims, GS Mains Paper III; Science & Technology)

Even as antibiotics lose their efficacy against deadly infectious diseases worldwide, it seems to be

business as usual for governments, private corporations and individuals who have the power to stall a

post-antibiotic apocalypse.

Misuse of anti-biotics: an example

In a recent investigation, it was found that the world’s largest veterinary drug-maker, Zoetis, was selling

antibiotics as growth promoters to poultry farmers in India, even though it had stopped the practice in

the U.S. India is yet to regulate antibiotic-use in poultry, while the U.S. banned the use of antibiotics as

growth-promoters in early 2017. So, technically, the drug-maker was doing nothing illegal and

complying with local regulations in both

countries. But such reasoning is self-defeating, because antibiotic-resistance does not respect political

boundaries.

What are the implications of such over use?

Of course, the country that stands to lose the most from antibiotic resistance is India, given that its burden

of infectious disease is among the world’s highest. According to a 2016PLOS Medicinepaper, 416 of every

100,000 Indians die of infectious diseases each year. This is more than twice the U.S.’s crude infectious-

disease mortality-rate in the 1940s, when antibiotics were first used there. If these miracle drugs stop

working, no one will be hit harder than India.

Need for a tighter regulatory regime

This is why the country’s progress towards a tighter regulatory regime must pick up pace. Consider the

three major sources of resistance: overuse of antibiotics by human beings; overuse in the veterinary

sector; and environmental antibiotic contamination due to pharmaceutical and hospital discharge.

Steps already taken

To tackle the first source, India classified important antibiotics under Schedule H1 of the Drugs and

Cosmetics Rules 1945, so that they couldn’t be sold without prescriptions. Still, Schedule H1 drugs are

freely available in pharmacies, with state drug-controllers unable to enforce the law widely.

What’s lacking?

As far as veterinary use goes, India’s 2017 National Action Plan on Antimicrobial Resistance did talk

about restricting antibiotic use as growth promoters. Sadly, no progress has been made on this front yet,

allowing companies to sell last-resort drugs to farmers over the counter.

The 2017 document also spoke about regulating antibiotics levels in discharge from pharmaceutical firms.

For instance, Hyderabad’s pharmaceutical industry has been pumping massive amounts of antibiotics

into local lakes, rivers and sewers. This has led to an explosion in resistance genes in these waterbodies.

Still, India is yet to introduce standards for antibiotics in waste water, which means antibiotic discharge

in sewage is not even being monitored regularly.

As the country takes its time to formulate regulations, the toll from antibiotic-misuse is growing at an

alarming rate. According to a 2013 estimate, around 58,000 newborns die in India each year due to sepsis

from resistant bacteria. When these numbers mount, India will have no one to blame but itself.

36. India must diversify its energy basket more proactively (Relevant for GS Prelims, GS Mains

Paper III; Science & Technology)

What were the demands made by PM at Oil ministers meeting?

India’s economic fortunes continue to be tied to the sharply fluctuating price of oil. At a gathering of

prominent oil ministers in New Delhi, Prime Minister Narendra Modi urged oil-producing countries to

reduce the cost of energy in order to aid the global economy in its path towards recovery.

Mr. Modi also called for a review of payment terms, demanding the partial use of the rupee instead of the

U.S. dollar to pay for oil, in order to ease the burden on oil-importing countries in the wake of the

strengthening of the dollar.

Concerns for India

With well over 80% of its oil demand being met through imports, India clearly has a lot at stake as oil

prices have risen by as much as 70% in rupee terms in the last one year. Notably, speaking at the same

event, Saudi Arabian Energy Minister Khalid A. Al-Falih refused to openly commit to lower oil prices,

opting instead to say that the price of oil could have been much higher but for the efforts taken by his

country to boost supply. This is not surprising given the absence of significant rival suppliers in the

global oil market willing to help out India.

What are the problems faced by Indian economy?

India’s policymakers now face the difficult task of safely steering the economy in the midst of multiple

external headwinds. For one, the current account deficit widened to 2.4% of gross domestic product in the

first quarter of 2018-19 and is expected to reach 3% for the full year. The rupee, which is down about 16%

since the beginning of the year, doesn’t seem to be showing any signs of recovery either. Further, the

growth in the sales of petrol and diesel has already been affected adversely as their prices have shot

through the roof. All this will likely weigh negatively on the prospects of the Indian economy, the world’s

fastest-growing, in the coming quarters.

What can be done?

In this scenario, the decision to marginally cut taxes imposed on domestic fuels is unlikely to be of any

significant help to consumers. What is required is a steep cut in Central and State taxes for the benefit to

carry through to the consumers, which, of course, is unlikely given the government’s fiscal needs.

Another long-term solution to the oil problem will be to increasingly tap into domestic sources of energy

supply while simultaneously encouraging consumers to switch to green alternatives. This will require a

stronger policy framework and implementation. In the short term, the government could look to

diversifying its international supplier base to manage shocks better. But such a choice carries geopolitical

risks, such as in the case of Iran. Since it will take a length of time to wean the economy off oil imports,

policymakers should also be willing to think beyond just the next election if India’s over-reliance on oil is

to come to an end for good.

37. Opening doors to women at Sabarimala (Relevant for GS Prelims, GS Mains Paper I; Social

Issues)

With a Constitution Bench of the Supreme Court lifting the decades-old ban on women in the 10-50 age

group from entering the Sabarimala Ayyappa Temple, it is up to the Kerala government and the

Travancore Devaswom Board to ensure that women who may choose to offer prayers at the temple

during the coming pilgrim season are given protection. The season starts on November 18.

What did the court rule?

On September 28, Chief Justice Dipak Misra (now retired) and Justices A.M. Khanwilkar, Rohinton F.

Nariman and D.Y. Chandrachud held that the ban on women in the temple was a smear on their dignity

and the consequence of a hegemonic patriarchy. In her dissenting judgment, Justice Indu Malhotra took

the position that the court could not impose its morality or rationality on the form of worship of a deity.

Doing so, she felt, would negate the freedom to practise one’s religion according to one’s faith and beliefs.

What does the verdict imply?

The parties to the dispute are likely to seek a review of the verdict. A protest against the ruling is

gathering momentum in the State. As things stand, there is no way of knowing how many women would

turn up at the temple during the season. With the political colour that the issue has acquired, the State

government is treading cautiously, hoping that there would not be a sudden inflow of women devotees.

The police will deploy 500 additional personnel at the temple.

The temple is situated atop a hill in the deep forests of the Periyar Tiger Reserve in the Western Ghats in

Pathanamthita district. Steeped in legend, this ancient forest shrine, situated 210 km from Kochi, draws

pilgrims from different parts of the country. With the development of road transport and communication

facilities, Sabarimala has been witnessing a phenomenal increase in the number of pilgrims. The

Travancore Devaswom Board, which administers the temple, estimates that around 5 crore devotees had

visited the temple during the last pilgrim season. The season normally begins in mid-November and ends

in January. The revenue from the temple last year was Rs. 255 crore.

What are the challenges?

The biggest challenge is to create sufficient infrastructure to meet a possible increase in the number of

devotees, especially women. The mid-August floods brought down several structures at Pampa, where

the uphill trek to the temple begins. Among these were a temporary shelter, which could house 5,000

pilgrims at a time, three multi-storey toilet blocks, bathing ghats and three bridges across the River

Pampa. The pumphouse of the Kerala Water Authority still remains buried under a huge deposit of sand,

and the waterlines on the banks of the river are clogged with sand, badly affecting drinking water supply.

The government and the Devaswom Board are racing against time to put the place back into some shape

before the season begins.

What’s the government doing?

The State government has entrusted the task of rebuilding the Pampa river bank to Tata Projects. The foot

overbridge that facilitates pilgrims’ passage to the trekking path and

transport of goods to Sabarimala have been restored. The real challenge will be restoration of drinking

water and sewage facilities and creation of sufficient temporary facilities for devotees, especially women,

to stay before and after the trek to the temple. For decades, Sabarimala has almost exclusively hosted

male devotees. With the Supreme Court extending the right of worship to women, the immediate

challenge is to make it gender- friendly.

38. Arrest the exodus in Gujarat (Relevant for GS Mains Paper I; Social Issues)

Following the horrific rape of a toddler, allegedly by a migrant worker, in Sabarkantha district on

September 28, there has been an exodus out of northern Gujarat of Hindi- speaking migrant workers.

There have been incidents of “revenge attacks” on them. But while the anger among residents on account

of the incident might have been the trigger, there could be much more at play.

What is underlying reason for opposing migrants?

As in other States, Gujarat is seeing increasing discontent over the lack of adequate jobs for young people.

This is reflected in multiple surveys, including a recent Ipsos-Gates Foundation survey which found that

Indians were most worried about unemployment

(48%), among the countries covered. The CMIE’s unemployment rate monthly time series shows that

4.6% of those surveyed and actively looking for work in Gujarat were not employed in September 2018.

This is less than the national average (6.8%), but there has been a relative increase in this number since the

previous year in Gujarat.

Role of politics

Disquiet over lack of job opportunities has bubbled up in the demand for limiting jobs for migrants and

in resentment against ‘outsiders’. The Gujarat government, under pressure from the Opposition, has

promised to make it mandatory for manufacturing and service sector companies to hire 80% of their

workforce from the State’s domiciles and to reserve 25% of hires for residents from the location.

High immigration in Gujarat

Based on data since 2011, the Economic Survey in 2016-17 pointed out that Gujarat is among the States,

including Tamil Nadu, Maharashtra and West Bengal, with the highest net in-migration of workers. The

study also found that States that were relatively better developed than the rest of the country were also

host to more migrants. It stands to reason that migrants have played a vital role in greasing the wheels of

growth in States like Gujarat by providing cheap labour in the many small and medium enterprises in the

manufacturing and construction sectors.

Need of migrants

The fact that industry and commerce associations in Gujarat have complained about the flight of

migrants, with the festival season looming, reflects the importance of migrant

labour in Gujarat. The State must follow a more holistic policy of creating incentives for firms leading to

greater employment, instead of merely dictating higher recruitment of locals. Gujarat is no exception.

Nativist arguments against migrants have been too easily used by political forces in various States, from

more developed ones such as Maharashtra to smaller States such as Meghalaya, to address resentment

over the paucity of jobs. This neither serves the interest of the State concerned, considering the economic

role of migrant labour, nor addresses the issue of ensuring job-oriented growth. Apart from steps to arrest

the violence against the migrants and stop the exodus, the Gujarat government must commit itself to a

facilitating role for job-creation.

39. #UsToo — on India's #MeToo moment (Relevant for GS Prelims, GS Mains Paper I; Social Issues)

What is # Me Too moment?

In what has been called India’s MeToo moment, the social media is thick with women coming forth with

stories of sexual harassment. In the quick aftermath of actor Tanushree Dutta’s allegations, in an

interview in end-September, of harassment at the hands of actor Nana Patekar on a film set a decade ago,

women have been speaking of their experiences and the trauma, mostly on Twitter and Facebook. The

testimonies so far have mostly concerned the film world and the mainstream media, and cover both the

workplace and private spaces. They range from stories of assault to propositioning, suggestiveness to

stalking.

In the vast majority of cases, the naming is a result of the failure to receive a just response from the

system, a signal that it is no longer possible for such behaviour to be breezily dismissed or excused

because boys, after all, will be boys.

How the MeToo hashtag became popular?

The MeToo hashtag gained currency a year ago in the U.S. when women came out one after another to

first corroborate allegations of sexual assault against Hollywood mogul Harvey Weinstein, with each

further account making clear that there was a systemic pattern of abuse and silence. In the outpourings in

India too, a year on, a disturbing picture is emerging.

Popular allegations in India

It is not only that many of the allegations are extremely grave — for instance, against M.J. Akbar, a star

editor who left journalism for government, to become a Minister of State for External Affairs. What is

perhaps of even greater disquiet is that for so very long an official silence was kept around what were, in

many instances, open secrets.

What is the message?

Now that women are speaking up — picking up the stories where others have left them, making public

suppressed memories, breaking free from the helplessness or a false sense of humiliation that kept them

quiet for so long — there can be no looking away. It is

important to identify the exact transgression in the various cases that are being outed, and to ensure that

action is taken with due process. No one can be deemed guilty only because he had been named and any

punishment must be proportionate to the misdemeanour. But the larger issue perhaps is the message sent

out by the outpouring — namely, that there has been a systemic disregard for making workplaces and

common spaces free of harassment. It must disturb us that a thread that binds so many allegations now

coming out is that many women thought that their words and feelings would be dismissed, their careers

would suffer, or their families would pull them back into the safety of home. This fear of making a

complaint needs to be overcome in all workspaces, not only the media and the film industry. All of

society needs to internalise a new normal that protects a woman’s autonomy and her freedom from

discrimination at the workplace.

40. Manual scavenging remains a social reality despite a 2013 act calling for its abolition (Relevant

for GS Prelims, GS Mains Paper I; Social Issues)

Delhi HC order

One manual scavenger dies every five days, according to official data. Recently, the Delhi High Court

gave the authorities two months to identify manual scavengers in the national capital.

What does the order imply?

The order proved two things — one, manual scavenging is a social reality despite its abolition by

Parliament through the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act,

2013; and two, the government itself, directly or indirectly, employs manual scavengers.

What does the 2013 act say?

The act had endeavoured to eliminate not only dry latrines but also “insanitary latrines”; prohibit the

employment of manual scavengers for the hazardous manual cleaning of sewers and septic tanks;

conduct a time-bound survey; and take measures for the rehabilitation of manual scavengers. The

definition of ‘manual scavengers’ was widened to cover those involved in cleaning not only dry latrines

but other insanitary latrines. The statute made offences under the act cognisable and non-bailable. They

now attract stringent penalties.

The act called for the setting up of vigilance/monitoring committee at sub-division, district, State and

Central levels. The National Commission for Safai Karamcharis was given the responsibility of

implementation.

Poor implementation of the act

To eliminate open defecation, the act also called for the construction of an adequate number of sanitary

community latrines in urban areas within three years from the date of commencement of the statute.

The poor implementation of the act may have been because States and Union Territories have been slow

in identifying insanitary latrines and manual scavengers. In 2014, many States denied even the existence

of insanitary latrines in the Supreme Court.

The Ministry of Social Justice and Empowerment said that rehabilitation of manual scavengers has been

slow because they are mostly illiterate and have no exposure to any work other than sanitation-related

activities.

Many of them are old. They also do not have opportunities to avail of any skill development training.

A lack of opportunities has also resulted in hesitation on the part of manual scavengers to come out into

the open and demand jobs, making them a silent, suffering population in the country.

41. Deadly roads in India (Relevant for GS Prelims, GS Mains Paper I; Social Issues) Report on

road accidents

The Road Accidents in India report of the Ministry of Road Transport and Highways for 2017 comes as a

disappointment. By reiterating poorly performing policies and programmes, it has failed to signal the

quantum shift necessary to reduce death and disability on the roads. It expresses concern at the large

number of people who die every year and the thousands who are crippled in accidents, but the remedies

it highlights are weak, incremental and unlikely to bring about a transformation.

How has been the progress?

The lack of progress in reducing traffic injuries is glaring, given that the Supreme Court is seized of the

issue and has been issuing periodic directions in a public interest petition with the assistance of the

Justice K.S. Radhakrishnan Committee constituted by the Centre.

Little has been done to fulfil what the Road Transport Ministry promises: that the Centre and the States

will work to improve safety as a joint responsibility, although enforcement of rules is a State issue. That

nothing much has changed is reflected by the death of 1,47,913 people in accidents in 2017. To claim a

1.9% reduction over the previous year is statistically insignificant, more so when the data on the rate of

people who die per 100 accidents show no decline. Even more shocking is the finding that green

commuters — cyclists/pedestrians — now face greater danger on India’s roads, with a rise in fatalities for

these categories of users of 37% and 29% over 2016, respectively.

Lack of accuracy of data

Road safety data is a contested area in India. The figures of death and injury from accidents are viewed as

an underestimate by scholars; the Transportation Research and Injury Prevention Programme at IIT

Delhi, for instance, estimates that cumulatively, road traffic injuries recorded by the police are

underestimated by a factor of 20, and those that need

hospitalisation by a factor of four. If this is correct, the number of people who suffered injuries in 2017 far

exceeds the 4,70,975 reported by the Ministry.

What is going on in respect of road safety?

It is welcome that greater attention is being paid to the design and safety standards of vehicles, but such

professionalism should extend to public infrastructure: the design of roads, their quality and

maintenance, and the safety of public transport, among others. The Centre has watered down the national

bus body standards code in spite of a commitment given to the Supreme Court, by requiring only self-

certification by the builders. Relaxing this long-delayed safety feature endangers thousands of

passengers. There is little chance of the NDA government, now in the last year of its tenure, making a

paradigm shift.

Valuable time has been lost in creating institutions for road safety with a legal mandate, starting with an

effective national agency. The Road Safety Councils at the all-India and State levels have simply not been

able to change the dismal record, and the police forces lack the training and motivation for professional

enforcement. The urgent need is to fix accountability in government.

42. Why are migrants insecure in Gujarat? (Relevant for GS Prelims, GS Mains Paper I; Social Issues)

What happened?

Early this month, migrants working in several districts of Gujarat, and hailing mostly from Uttar Pradesh,

Bihar and Madhya Pradesh, began fleeing, fearing for their lives.

What was the trigger?

On September 28, a 14-month-old was raped allegedly by a migrant labourer in a small village in

Sabarkantha in north Gujarat. The incident sent shock waves in the region and triggered a massive

backlash against the growing number of migrants in a rapidly industrialising Gujarat. Immediately after

the incident, Gujarat Kshatriya Thakor Sena, headed by Congress legislator Alpesh Thakor, reportedly

issued threats against migrants, blaming them for the deteriorating law and order situation in north

Gujarat districts. And within a few days, dozens of attacks on migrants were reported from 10 districts.

What did the government do?

So far, the police have filed 60 cases and arrested 500 people for alleged involvement in assaults/attacks

on migrants. In addition, the Ahmedabad police arrested more than 100 people for spreading hate

messages on social media platforms. According to data from trade and industry bodies, 40,000 migrants

fled the State after the attacks.

Why the backlash?

Three days before the alleged rape, Chief Minister Vijay Rupani announced that the State would enact a

law to make it mandatory to provide 80% jobs to locals. “Those who set up

business in Gujarat, including in the services sector, will have to ensure that 80% of the jobs are given to

Gujaratis. The government is working on the law,” Mr. Rupani said.

How big is the migrant population?

With growing industrialisation and urbanisation, Gujarat, with 43% urban population as per the 2011

Census, has emerged as a major hub for migrant population, particularly from Madhya Pradesh, Uttar

Pradesh, Rajasthan and Bihar. Today, a substantial chunk of the State’s labour force in construction sites,

security guards, drivers, domestic workers, factory workers in ceramic, pharmaceuticals, chemicals,

automobiles and ancillary units and food processing units are Hindi-speaking migrants. Though the exact

number of the total migrant population is not available with any government agency, according to

industry and trade bodies, migrants account for 35% of the labour force. Surat, Gujarat’s diamond city,

has a massive migrant population from more than a dozen States. Migrants dominate textiles and allied

units, construction, and heavy industrial factories in Hazira. Other places where migrants work are

Ahmedabad, Rajkot, the ceramic hub of Morbi, the chemical and petrochemical hubs of Vadodara and

Dahej, Alang, where ships are dismantled, and Sabarkantha.

Are any initiatives in place?

As migrants began fleeing the State, the authorities scrambled to arrest the exodus by launching

initiatives. At the district level, officials held meetings with migrant labourers and contractors to assure

them of help. Officials held meetings with representatives of trade bodies and industrial associations to

ensure that migrant labourers were given security at the work place and in areas where they live.

Initially, the government deployed more police forces in industrial estates and in localities where

migrants live. However, the forces have been withdrawn after normalcy was restored. “We have told the

officials and industry representatives that migrants are here to work and make a living. If some elements

try to commit a crime, they should be dealt with as per the law but others should not be made to suffer

for an isolated crime,” said Ramprasad Gupta, a labour contractor at the Naroda Gujarat Industrial

Development Corporate estate.

What is in store?

The government will have to ensure the safety of migrants and give them medical and housing facilities

and education to their children. So far, the government’s approach to arresting the exodus may have

succeeded, but the Chief Minister's statement on jobs for locals has added to the uncertainty.

43. All you need to know about Ganga activist G.D. Agarwal (Relevant for GS Prelims, GS Mains

Paper I; Social Issues)

On October 11, the 112th day of a fast that began in June to protest against the government’s inadequate

efforts at cleaning the Ganga, G.D. Agarwal, a well-known crusader for the river, died of a heart attack.

He was 86.

What was his stand?

He had adopted the name Swami Gyan Swaroop Sanand, and was formerly a professor in the civil

engineering department at the Indian Institute of Technology, Kanpur. As an environmentalist, he was

vocal about disallowing hydroelectric projects in Uttarakhand along the Ganga and was disappointed

with the Central and Uttarakhand governments for not doing enough to protect the river. A trigger for

his fast this year was the “unfulfilled” promises by Prime Minister Narendra Modi, who had vowed to

clean the Ganga after winning the Varanasi seat. Agarwal was subsisting on a diet of honey, lemon and

water since June and had given up even water in the week before he died. He was admitted to the All

India Institute of Medical Sciences, Rishikesh, where he died.

What informed his activism?

Agarwal began his career in the 1950s as a design engineer with the Uttar Pradesh Irrigation Department,

before his academic stint at IIT-Kanpur. While being opposed to dams, Agarwal, in the 1950s, was

involved in the construction of the Tehri Dam. Several people associated with him said his scientific

training helped him understand the risks of hydropower projects in the pristine stretches of the Ganga

and this informed his activism over the years.

He was also the first Member-Secretary of the Central Pollution Control Board. He also dabbled as an

environmental consultant and was part of Envirotech Instruments, a firm that specialised in preparing

environment appraisal plans for projects and now makes air- pollution monitoring instruments.

What did he achieve?

He observed several fasts over the years. These resulted in the establishment of the National Ganga River

Basin Authority, as well as the creation of concepts such as ecological flow (the necessity to maintain a

minimum quantity of water in a river at all times) while planning for hydro-electric projects. The

Bhagirathi eco-sensitive zone came into being after the government conceded to his demands made at

one of his fasts. After his retirement (and before his many fasts), Agarwal chose to co-opt religion in his

quest to preserve the Ganga. He argued that publicising the needs of the Ganga from a purely scientific

perspective would take too long, during which irreparable harm could come to the river. Therefore,

invoking the religious sentiments of people and creating a public movement was the need of the hour.

What were his latest demands?

Bringing the Ganga Act into law was one of Agarwal’s key demands as were instructions to give legal

standing to the Ganga Bhakti Parishad, which would have supreme power to decide on matters of the

river. He had also sought a ban on all proposed dams on the upper reaches of the Ganga and on sand

mining along the river.

How did the government respond?

Over three years, the government prepared multiple drafts of the Ganga Act based on consultations with

Ministries, think-tanks and religious groups. A final version of the draft Bill has been sent to the Law

Ministry. Water Resources Minister Nitin Gadkari has committed to presenting the Bill in the coming

session of Parliament. After Agarwal

eschewed water, the government promulgated a notification - a day before he died - declaring a

minimum ecological flow that ought to be maintained through the Ganga all year. However, demands for

a Ganga Parishad were untenable, sources have told The Hindu, as it would imply handing power to a

religious body to decide on how the Ganga ought to be taken care of.

44. Why the Railways must be tougher on trespassing (Relevant for GS Prelims, GS Mains Paper III;

Internal Security)

What happened?

On October 19, at least 60 people died and over 70 were injured after being run over by a train near

Amritsar. The tragedy struck as a group of Dasara revellers gathered on the rail track to watch the

burning of a Ravana effigy and were hit by a train from Jalandhar to Amritsar.

Who is responsible?

Soon after the accident, debates started on who should be held accountable for the accident

— the Railways, the local administration, the event organisers or the people themselves for trespassing.

Even as Punjab Chief Minister Captain Amarinder Singh ordered a magisterial inquiry — the report is

expected to be out by mid-November — the national transporter washed its hands of any responsibility.

The Railways said people on the track were trespassing. Also, the Railways was not informed of any

celebration near the track. In addition, the event was being held adjacent to the track on private property.

Since the railway land was not being used, there was no need for a permit from it.

Has casualities been high?

Even as over 40 people on an average are killed every day owing to trespassing on rail tracks, there is no

plan to tackle the issue. As per official statistics, nearly 50,000 people died on the track from 2015 to 2017.

These deaths, the government has said, were largely because of trespassing, violating safety and

cautionary instructions, avoiding overbridges, using mobile phones and other electronic gadgets while

crossing the track.

What about unmanned crossings?

In April this year, 13 children were killed after a train rammed into a school van at an unmanned railway

crossing at Kushinagar in Uttar Pradesh. As per the available data, accidents at unmanned level crossings

accounted for 16.23% of the total train accidents in 2016-17. Railway Minister Piyush Goyal recently said

the Railways would be eliminating all unmanned level crossings on the broad gauge by December this

year, ahead of the March 2020 deadline. As of July this year, there were 2,869 unmanned level crossings

on the broad gauge. In April 2017, this number stood at 7,000. While for the current financial year, the

Railways has earmarked Rs.73,000 crore for safety out of a total capital expenditure of

Rs. 1.48 lakh crore, this mainly covers track renewals, bridge work, signalling, road safety at level

crossings and technology upgrade.

What happens next?

As far as trespassing is concerned, the measures are mainly limited to awareness campaigns. A

nationwide campaign has been launched against trespassing, after the Amritsar accident. As per the

rules, trespassing on the railway premises, including the track, is a punishable offence under Section 147

of the Railways Act, 1989, with imprisonment up to six months and/or a fine of up to Rs. 1,000. In 2017, a

total of 1,73,112 people were prosecuted for trespassing by the Railways.

A railway official pointed out that as part of the awareness campaign, regular announcements were being

made at stations, urging passengers to use foot overbridges, and avoid crossing of the track. Additionally,

Railway Protection Force personnel are deployed on locations vulnerable to trespass. The official added

that the Railways also erected boundary walls or fences at identified locations that were liable to trespass.

What about technology?

The Railways is also working on how to use technology to deploy warning systems at unmanned level

crossing gates. For example, it is testing a satellite-based system, in partnership with the Research

Designs and Standards Organisation, Ministry of Railways, and the Space Applications Centre/Indian

Space Research Organisation. The trials are on at five level crossings. Likewise, field trials are on for a

radio frequency identification-based system to warn pedestrians against an approaching train. If

successful, these systems may be utilised to warn trespassers at various points of the track.

45. Where in the world is Jamal Khashoggi? The Saudi government must tell us (Read only for

understanding; Miscellaneous)

Who is Jamal Khashoggi?

The disappearance of Saudi Arabian journalist Jamal Khashoggi has triggered a diplomatic storm.

Countries including the U.S. and Turkey as well as international organisations like the UN have turned

up the pressure on Riyadh to reveal the truth. The journalist, known for his columns in the Washington

Post critical of Saudi Crown Prince Mohammed bin Salman, has not been seen since he entered the

Saudi consulate in Istanbul on October 2.

What is known about his whereabouts?

The Turkish authorities have released video footage of Mr. Khashoggi entering the consulate and said

there is no footage of him leaving the building. Saudi Arabia maintains that the journalist, who visited

the consulate for a divorce certificate, left safely, but has not offered any evidence for this. Mr.

Khashoggi’s Turkish fiancée, who waited for him outside the consulate for hours, vows he never

returned. There are already several theories doing the rounds on what might have happened to him.

The most horrifying

among them draws from reports quoting Turkish investigation officials that Mr. Khashoggi was killed

inside the consulate and his body dismembered for disposal.

On the same day that he entered the consulate, a 15-member team from Saudi Arabia had arrived in

Turkey and was inside the consulate building. Turkish officials say they were military and intelligence

officials, including a forensic expert, who carried out the assassination within two hours of Mr.

Khashoggi’s arrival, and left immediately thereafter.

What is the response of Saudi Arabia?

Saudi Arabia has so far rejected the reports of Mr. Khashoggi’s killing. But if he did leave the consulate,

as Saudi officials claim, the burden of proof is on them to prove that he actually did so. They have not

even been able to offer a credible explanation on what happened to him, except to repeatedly claim that

he left the consulate safely. They took 13 days since Mr. Khashoggi’s disappearance to let Turkish

officials finally search the consulate premises.

What is the response of US?

Even U.S. President Donald Trump, a strong backer of the kingdom’s 33-year-old Crown Prince,

warned of “severe punishment” if Riyadh was found to be responsible for the disappearance.

What is the impact of controversy?

The controversy is particularly damaging for MBS, as Mohammed bin Salman is widely known, who

spent millions to project himself as a social and economic reformer who could lead Saudi Arabia into

the 21st century. Chief executives of some of the potential big-ticket investors, including JP Morgan,

Blackstone and BlackRock, have already pulled out of an investment conference due to be held in

Riyadh next week, which MBS is expected to address. Any delay in letting the world know the truth

about Mr. Khashoggi will only make matters worse for the kingdom, which is already known for its

poor human rights record, including on MBS’s watch. The international community, including the U.S.,

a crucial ally of Saudi Arabia, has a moral responsibility to maintain the pressure on the kingdom till it

reveals the truth.

46. Amritsar disaster: avoidable tragedy (Relevant for GS Prelims, GS Mains Paper GS Mains Paper I;

Disaster Management)

59 people killed by moving train

The ghastly Dasara disaster at Amritsar that has left 59 people dead is a harsh reminder, if any were

needed, that government departments have not yet taken official protocols for safety at mass gatherings

seriously. In the aftermath of the entirely preventable carnage, in which spectators crowding a railway

track to watch burning of effigies were mowed down by a train, there is a frantic effort to pin

responsibility on agencies and individuals, and, deplorably, to exploit public anger for political ends.

Basic failure of administration

What happened at Joda Phatak in Amritsar points to the basic failure of the district administration and

the police, which should have ensured law and order. If the organisers of the event had obtained a no-

objection certificate from the police, as reports suggest, what role did the law enforcement machinery

play in crowd control? On the other hand, the Municipal Corporation in Amritsar has tried to distance

itself, claiming that its permission was not sought, although almost everyone in the city knew it was

taking place.

Enquiry ordered

The magisterial inquiry ordered by the Punjab government should examine the actions of the revenue

authorities and the police in organising the event, and whether rules were ignored to favour the

organisers who claimed proximity to some politicians.

Previous incidents

Major religious festivals in India are often overshadowed by deadly incidents such as stampedes and

fires, ranging from the terrible toll of 249 deaths at the Chamunda Devi temple stampede in Jodhpur in

2008, to the railway station stampede during the Kumbh Mela at Allahabad five years later in which 36

people died.

What are the safety protocols?

The National Disaster Management Authority has responded to these horrors by creating a guide for

State governments and local bodies, laying down a clear protocol to be followed for mass gatherings and

festivals.

What should be done?

Whether this was followed by the Amritsar authorities in the planning of the Dasara celebrations is one of

the questions that must be addressed.

There should be a transformation of the way such events are organised, with a lead agency in each State

and district empowered to issue instructions, and in turn be accountable for public safety.

More broadly, there is a serious deficit of common spaces in cities, towns and villages to conduct

spectacular events safely. This is incongruous in a populous country with a tradition of festivals and

cultural gatherings.

The Punjab government, wiser after the fact, says it will draw up guidelines for the future. At Amritsar,

trespass on the track was the prime reason for the accident.

A campaign to educate the public that railway tracks cannot be treated as commons, and vigorous

enforcement, will reduce the probability of such incidents.

The Railways must identify hazard spots for train movement in heavily built-up areas and prevent

trespass by barricading them. A culture of safety can take root if governments imbibe it first.

47. PM Narendra Modi gets Seoul Peace Prize for efforts in global cooperation (Relevant for GS

Prelims)

PM Narendra Modi has been conferred with the Seoul Peace Prize for 2018 for his contribution to

international cooperation and fostering global economic growth.

He is the 14th recepient of the award and the past laureates include former UN Secretary General Kofi

Annan, German Chancellor Angela Merkel and renowned international relief organizations like Doctors

Without Borders and Oxfam.

About Seoul Peace Prize

The Seoul Peace Prize was established in 1990 as a biennial recognition with monetary award to

commemorate the success of the 24th Summer Olympic Games held in Seoul, Korea, an event in which

160 nations from across the world took part, creating harmony and friendship. The Seoul Peace Prize was

established to reflect the wishes of the Korean people and to crystallize their desire for everlasting peace

on earth. The nominating group consists of 300 Korean nationals, and 800 internationals. The awardee

receives a diploma, a plaque and honorarium of US$200,000.

48. India set to be third largest aviation market

To climb up from no. 7 position by 2024, says IATA

India will be the third largest aviation market globally a year sooner than was earlier predicted. It is now

expected to be among the top three countries by 2024 from its current seventh position, according to

global aviation body IATA.

In its latest 20-year forecast for the aviation industry, the International Air Transport Association (IATA)

says that air passenger numbers worldwide could double to 8.2 billion in 2037.

Asian wave

The biggest contribution in this growth will come from the Asia-Pacific region, which will account for

half the total number of new passengers over the next 20 years.

While China will climb up one spot to displace US as the world’s largest aviation market in the mid-

2020s, India will take the third place by surpassing the U.K. around 2024, according to the IATA forecast.

By 2037, India is expected to add 414 million passengers to its existing 572 million passengers, the report

added.