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Table of Contents

Polity & Governance ..................................................................................... 1

1. Glitches in the Voter Verifiable Paper Audit Trail (VVPAT) machines (Relevant for GS

Prelims, GS Mains Paper II; Polity & governance) ................................................................... 1

2. Regulating medical education (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................... 2

3. Centre notifies Cauvery authority (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................... 3

4. Centre not to file counter-affidavit on Article 35A (Relevant for GS Prelims, GS Mains

Paper II; Polity & Governance) ..................................................................................................... 4

5. NEET readiness? (Relevant for GS Prelims, GS Mains Paper II; Polity & Governance) .......... 5

6. Why did riots erupt in Shillong? (Relevant to GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................... 6

7. Draft pesticide Pesticides Management bill will hurt farmers (Relevant for GS Prelims, GS

Mains Paper II; Polity & Governance) ......................................................................................... 7

8. On Tamil Nadu organ transplant allocations (Relevant for GS Mains Paper II; Polity &

Governance) ................................................................................................................................... 8

9. President rejects Tamil Nadu s plea to release Rajiv Gandhi killing case convicts (Relevant

for GS Prelims, GS Mains Paper II; Polity & Governance) .......................................................... 9

10. Suspense continues: on TN MLAs' disqualification case (Relevant for GS Prelims, GS Mains

Paper II; Polity & Governance) ................................................................................................... 10

11. Shujaat Bukhari murder (Read only for understanding; Polity & Governance) ................... 11

12. Who is Prafulla Mahanta and why he is on agitation? (Relevant for GS Prelims, GS Mains


13. Delhi stand-off: Power crisis (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................. 14

14. Mehbooba quits as CM after BJP pulls out of alliance (Relevant for GS Prelims, GS Mains


15. Questions on ICICI Bank board (Relevant for GS Mains Paper II; Polity & Governance) ..... 16

16. AAP and officers locked in a tussle (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance) ................................................................................................................................. 17

International Organizations and Relations ...................................... 20 1. Modi, Mahathir dialogue (Relevant for GS Prelims, GS Mains Paper II; IOBR)................... 21

2. Savita, the face of a movement (Relevant for GS Prelims, GS mains paper II, IOBR) ........ 21

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3. Shangri-La Dialogue: on foreign policy re-orientation (Relevant for GS Prelims, GS Mains

Paper II; IOBR) ............................................................................................................................. 21

4. India not yet ready to sign the Hague treaty (Relevant for GS prelims, GS Mains Paper II;

IOBR) ................................................................................................................................................... 23

5. Indonesia wins UNSC vote (Relevant for GS Prelims, GS Mains Paper II; IOBR) ............... 23

6. U.S. wants India out of S-400 deal (Relevant for GS Prelims, GS mains Paper II; IOBR) .. 24

7. Upswing in India-China ties (Relevant for GS Prelims, GS Mains Paper II; IOBR) ............. 25

8. India rebalancing ties with Pak. to open path to Eurasia (Relevant for GS Prelims, GS

Mains Paper II; IOBR) ...................................................................................................................... 26

9. Historic handshake — on Trump-Kim summit (Relevant for GS Prelims, GS Mains Paper

II; IOBR) .............................................................................................................................................. 27

10. Islands apart: on India-Maldives ties (Relevant for GS Prelims, GS Mains Paper II; IOBR) .............................................................................................................................................................. 28

11. India calls UN report on Kashmir fallacious (Relevant for GS Prelims, GS Mains Paper II;

IOBR) ................................................................................................................................................... 30

12. Pak. Taliban head Mullah Radio killed in U.S.-led strike (Read only for understanding;

IRIO) .................................................................................................................................................... 30

13. On Colombia's first presidential election: In the shadow of FARC (Relevant for GS

Prelims, GS Mains Paper II; IOBR) ................................................................................................ 31

14. U.S. policy of separating children from undocumented migrant parents is cruel

(Relevant for GS Mains Paper III; IOBR) ..................................................................................... 32

15. UN body s report on Kashmir rights (Relevant for GS Prelims, GS Mains Paper II; IOBR) .............................................................................................................................................................. 33

16. Macedonia renamed as Republic of North Macedonia (Relevant for GS Prelims, GS Mains

Paper II; IOBR) .................................................................................................................................. 34

17. World s hungry population on the rise again, says U.N. report (Relevant for GS Prelims,

GS Mains Paper II; IOBR) ................................................................................................................ 35

18. UN s State of Food Security and Nutrition in the World report for 2017 (Relevant for GS

Prelims, GS Mains Paper II; IOBR) ................................................................................................ 36

19. Recent OPEC meet and aftermath: Analysis (Relevant for GS Prelims, GS Mains Paper II;

IOBR) ................................................................................................................................................... 37

20. India, Seychelles relations (Relevant for GS Prelims, GS Mains Paper II; IOBR) ................ 38

Geography ..................................................................................................... 40 1. Why have monsoons been fierce so far? (Relevant for GS Prelims, GS Mains Paper I;

Geography) .................................................................................................................................. 40

Economics ..................................................................................................... 42 1. Present position of Air India (Relevant for GS Prelims, GS Mains Paper III; Economics) 42

2. Why are farmers not getting a fair price? (Relevant for GS Prelims, GS mains Paper III;

Economics) .................................................................................................................................. 43

3. Why is the MSCI mulling caps on emerging markets, including India? (Relevant for GS

prelims, GS mains Paper III; Economics) .................................................................................... 44








4. ICICI Bank s growing troubles (Relevant for GS Prelims, GS Mains Paper III; Economics) .............................................................................................................................................................. 45

5. Bill Averting Ponzi schemes (Relevant for GS Prelims, GS Mains Paper III; Economics) ..... 46

6. Global trade war (Relevant for GS Prelims, GS Mains Paper III; Economics) ..................... 47

7. What is the Karnataka farm loan waiver plea all about? (Relevant for GS Prelims, GS

Mains Paper III; Economics) .......................................................................................................... 48

8. In Jharkhand, starvation and ration woes (Relevant to GS Prelims, GS Mains Paper III;

Economics) ........................................................................................................................................ 49

9. Insolvency and Bankruptcy code (Amendment) Ordinance 2018 (Relevant for GS

Prelims, GS Mains Paper III; Economics) .................................................................................... 51

10. Need for Bad banks (Relevant for GS Prelims, GS Mains Paper III; Economics) ................ 52

11. For stronger employee representation: On the amendments to the Major Port

Authorities Bill (Relevant for GS Prelims, GS Mains Paper III; Economics) ........................ 53

12. Evaluation of bailout scheme for sugarcane farmers (Relevant for GS prelims, GS Mains

Paper III; Economics) ...................................................................................................................... 54

13. Why is external debt a cause for worry? (Relevant for GS Prelims, GS Mains Paper III;

Economics) ........................................................................................................................................ 55

14. RBI report warns that the worst on NPAs may be yet to come (Relevant for GS Prelims, GS

Mains Paper III; Economics) ....................................................................................................... 57

15. Sinking rupee (Relevant for GS Prelims, GS Mains Paper III; Economics) ............................. 58

Environment .................................................................................................. 59 1. Life in plastic: on waste management framework (Relevant for GS Prelims, GS mains

Paper III; Environment & Biodiversity) ...................................................................................... 59

2. State of India's water crisis (Relevant for GS Prelims, GS Mains Paper III; Environment) .............................................................................................................................................................. 60

3. Country's first river interlinking project caught in U.P.-M.P. tussle (Relevant for GS Prelims,

GS Mains Paper III; Environment) ............................................................................................. 61

4. Enforcing a plastic ban in Maharashtra (Relevant for GS Prelims, GS Mains Paper III;

Environment) ............................................................................................................................... 62

5. Tainted by uranium: On groundwater contamination (Relevant for GS Prelims, GS Mains

Paper III; Environment) .............................................................................................................. 64

6. Plastic waste management rules summary (Relevant for GS Prelims, GS Mains Paper III;

Environment) ............................................................................................................................... 65

7. Is biodiversity treaty a hurdle to conservation research? (Relevant for GS Prelims, GS

Mains Paper III; Environment) ................................................................................................... 66

Science & Technology ................................................................................. 68 1. Agni-5 successfully test-fired (Relevant for GS Prelims, GS Mains Paper III; Science &

Technology) ....................................................................................................................................... 68

2. AI garage? — on kickstarting artificial intelligence (Relevant for GS Prelims, GS Mains

Paper III; Science & Technology) .................................................................................................. 68








3. Green ambitions — on renewable energy targets (Relevant for GS Prelims, GS Mains


4. ISRO offers Lithium battery technology (Relevant for GS Prelims, GS Mains Paper III;

Science & Technology) .................................................................................................................... 71

5. What is the lowdown on Video Assistant Referee? (Relevant for GS Prelims, GS Mains


6. Govt. to set up fifth national data centre (Relevant for GS Prelims, GS Mains Paper III;

Science & Technology) .................................................................................................................... 73

Social Issues .......................................................................................... 75 1. India is on track to curb cigarette use, but chewable tobacco is a health emergency

(Relevant for GS Prelims, GS Mains Paper I; Social Issues) .................................................... 75

2. Farmers on strike (Relevant for GS Mains Paper I; Social Issues) ........................................ 76

3. Sri Ram Sene man shot Gauri: SIT (Read only for understanding; Social Issues) ............. 77

4. Unravelling the Gauri Lankesh murder case (Read only for understanding; Social

Issues) ................................................................................................................................................. 78

Internal Security .................................................................................. 82

1. Violence in the hills: on Shillong unrest (Relevant for GS Prelims, GS Mains Paper III;

Internal Security) ............................................................................................................................. 82

Miscellaneous .............................................................................................. 83 1. New CEO for Rajiv Gandhi Foundation (Relevant for GS Prelims) ...................................... 83

2. Seven-year jail term for Abu Salem (Read only for understanding) ................................... 83

3. Virat Kohli to get Umrigar Award (Relevant for GS Prelims) ................................................. 85

4. India s rank marginally improves in peace index (Relevant for GS Prelims) .................. 85

5. Rafael Nadal s 11th French Open title (Relevant for GS Prelims) ....................................... 86

6. Dhanush artillery gun clears final trials (Relevant for GS Prelims) .................................... 87

7. Who is Dhivya Suryadevara? (Relevant for GS Prelims) ........................................................ .87

8. Pragg is world s second youngest GM (Relevant for GS Prelims) ...................................... 88






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Polity & Governance

1. Glitches in the Voter Verifiable Paper Audit Trail (VVPAT) machines (Relevant for

GS Prelims, GS Mains Paper II; Polity & governance)

The high incidence of glitches in the Voter Verifiable Paper Audit Trail (VVPAT) machines in by-elections should be a major cause of concern for the Election Commission of India. Flaws in VVPAT machines

Fresh polling had to be ordered in dozens of booths in Kairana and Bhandara-Gondiya in Uttar Pradesh and Maharashtra, respectively, as a consequence. Ever since the implementation of the VVPAT system last year, machine malfunction and subsequent delays in polling have been recurring issues. Close to 4.2% of the VVPAT machines deployed in the Karnataka Assembly elections this month developed glitches during the testing as well as polling processes. The overall fault rate was as high as 11.6% in the by-elections held in four parliamentary and nine Assembly constituencies on 28th May. What is the response of ECI?

The ECI has suggested that these machines were more prone to malfunctioning due to their sensitivity to extreme weather conditions and exposure to light. It also blamed the relative inexperience of polling officers handling them, compared to the ballot and control units for the electronic voting machines (EVMs) that have been in use for much longer. The technical committee of the ECI is now faced with a challenge to ensure that the VVPAT machines hold up, with the general election due next year in the hot summer months. When were VVPAT introduced?

The VVPAT was added to the EVM to audit the voter tallies stored in the machine. Its universal implementation — which began in the Goa Assembly polls in February 2017 — was deemed necessary as many political parties complained about the possible hacking of EVMs. These complaints lacked any basis, but the VVPAT implementation was hastened to bring back trust in the election process. In all elections where it has been used, the VVPAT tallies have matched with the EVM counts, but for a stray case or two when the VVPAT machine was not reset before polling began. Problems in using VVPAT machines

Inadvertently, the use of these machines, which are adjuncts to the ballot and control units of the EVMs, has added to the complexity of an otherwise simple, single programmable-chip based system, and rendered it prone to more glitches. There is enough empirical evidence to show that EVMs have eased polling and helped increase voter turnout since being put to use. But in using VVPAT machines to reassure sceptics about an election s integrity, the ECI has introduced a new element, and cost, to the process. Considering these challenges, the ECI should consider deploying the VVPAT machines in a limited, statistically significant, randomly chosen to set of polling booths. This will reduce the possibility of glitches affecting the polling process as well-tested machines could be deployed (with enough replacements also handy) to such booths. The current verification process, after all,






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only involves the counting of VVPAT slips by randomly choosing one booth from each constituency (or segment), and this check should not be affected drastically by the new method. What is VVPAT?

The VVPAT system is a new initiative of the Election Commission to ensure free and fair elections. In the VVPAT system, when a voter presses the button for a candidate of his choice in the electronic voting machines (EVM), a paper ballot containing the serial number, name of the candidate and poll symbol will be printed. It is intended as an independent verification system for EVM designed to (i) allow voters to verify that their votes are casted correctly, (ii) detect possible election fraud or malfunction and (iii) Provide a means to audit the stored electronic results. At present, the EVMs currently display only the total number of votes polled, followed by the votes secured by individual candidates. (Adapted from The Hindu)

2. Regulating medical education (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance)

What were the protests against National Medical Commission Bill

The National Medical Commission (NMC) Bill, 2017, which seeks to regulate medical education and practice, and replace the Medical Council of India, ran into rough weather in January when the medical fraternity protested against it, terming the Bill as anti-poor . They also protested against the proposed bridge course in the Bill, which allows AYUSH practitioners to prescribe modern medicine, arguing that this provides opportunities for quacks. What was the response of government to protests?

Faced with these protests, the Lok Sabha referred the Bill to a Parliamentary Standing Committee in January. The government considered the recommendations made by the Standing Committee, as well as the general feedback, and tabled its report in the House on March 20. On March 28, the Union Cabinet approved the amendments to the NMC Bill, which seeks to replace the Indian Medical Council Act of 1956. What are the amendments?

1. The approved amendments include allowing for the final MBBS examination to be held as a common exam across the country. This way students will not be subjected to an additional licentiate exam for the purpose of obtaining a license to practice medicine.






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2. The MBBS exam will serve as an exit test to be called the National Exit Test. This test will also serve as the screening test for doctors with foreign medical qualifications who want to practice in India. 3. The Cabinet has also removed the bridge course provision. It has been left to the State governments to take necessary measures for addressing and promoting primary health care in rural areas. 4. The amendments also concern fee regulation. The maximum limit of 40% seats for which fee can be regulated in private medical institutions and deemed universities has been increased to 50% seats. Further, it has been clarified that the fee will also include all other charges taken by the colleges. 5. Responding to the demands from States to increase their representation in the NMC, the nominees of States and Union Territories in the NMC have been increased from three to six. The NMC will comprise 25 members, of which at least 21 will be doctors. The amendments also introduce stringent punishment for unqualified medical practitioner, or quacks, including a provision for imprisonment of up to one year along with a fine extending up to Rs. 5 lakh.

(Adapted from The Hindu)

3. Centre notifies Cauvery authority (Relevant for GS Prelims, GS Mains Paper II;

Polity & Governance)

Cauvery Water Management Authority

Three days after the Karnataka Assembly election results and three months after the Supreme Court s order, the Union government issued a notification for the Cauvery Water Management Authority. What will the authority do?

The authority will decide the sharing of the river water among the States of Karnataka, Kerala and Tamil Nadu and the Union Territory of Puducherry. The sharing of water will be on the basis of judgment by Cauvery water tribunal. The authority s mandate will be to monitor the storage, apportion shares, supervise operation of reservoirs and regulate water releases with the assistance of the Regulation Committee. It will regulate water release by Karnataka at the Biligundulu gauge and discharge station. Charge against BJP

MPs of both the AIADMK and the DMK had stalled the winter session of Parliament over the delay in the formation of the authority.






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They had accused the BJP government of delaying the formation of the authority for electoral gains in Karnataka. (Adapted from The Hindu)

4. Centre not to file counter-affidavit on Article 35A (Relevant for GS Prelims, GS

Mains Paper II; Polity & Governance)

View of Centre

The Centre has decided not to file any counter-affidavit on Article 35A, which has been challenged in the Supreme Court through a Public Interest Litigation (PIL) petition. View of State political parties

The State government has filed an affidavit opposing any such move.Chief Minister Mehbooba Mufti and the former Chief Minister, Omar Abdullah, had objected to any tinkering with the provision. Provisions of Art 35

Article 35A allows the Jammu and Kashmir legislature to decide the permanent residents of the State, prohibits a non-State resident from buying property in the State and ensures reservation in employment for residents. Background of Art 35

Article 35A was incorporated into the Constitution by an order of the then President Rajendra Prasad on the advice of the Jawaharlal Nehru Cabinet in 1954. It grants a special status to Jammu and Kashmir. The Constitution (Application to Jammu and Kashmir) Order followed the 1952 Delhi Agreement between Nehru and the then Prime Minister of Jammu and Kashmir, Sheikh Abdullah, which extended Indian citizenship to the State subjects of Jammu and Kashmir. Ms. Mufti said earlier that any attempt to tinker with Article 35(A) would have repercussions, and India will not get a shoulder to carry its national flag in Jammu and Kashmir. Arguments in petition

The petition, filed by We The Citizens, said Article 35A is against the very spirit of oneness of India as it creates a class within a class of Indian citizens. A second petition, filed by Jammu and Kashmir resident Charu Wali Khanna, has challenged Article 35A for protecting certain provisions of the Jammu and Kashmir Constitution, which restrict the basic right to property if a native woman marries a man not holding a permanent resident certificate. (Adapted from The Hindu)






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5. NEET readiness? (Relevant for GS Prelims, GS Mains Paper II; Polity & Governance)

Tamil Nadu students unprepared

There was no uncertainty over the medical admission process this year in Tamil Nadu. There were no attempts to get an exemption from the National Eligibility-cum-Entrance Test (NEET). And, willy-nilly, as many as 1.14 lakh aspirants took the examination that has been made mandatory by the Supreme Court as the sole admission window for medical colleges. Yet, the poor performance of students from Tamil Nadu in the entrance test has demonstrated that the State is still far from being NEET-ready . Poor performance

It is true that a well-intentioned beginning has been made to upgrade the syllabus and to make students more competitive. However, only 45,336 candidates, or 39.6% of those who took the test, qualified for admission. Along with Maharashtra, this is the lowest ratio in the country. What is important is that these candidates are merely eligible for admission, and far fewer students are actually likely to get admission. Further, the chances of many of the candidates in the lower percentiles gaining entry into a government medical college are quite low, and many of them may not be able to afford to pay for seats in private colleges. Arguments by proponents of NEET

Proponents of NEET may maintain that its objectives — ensuring uniformity in standards of medical education by admitting students on the basis of a common national test and eliminating capitation fee for medical courses in private institutions — are being successfully met. Criticism of NEET

However, it is a moot question whether the commercialisation of education has been really eliminated, and whether the admission policy is sufficiently inclusive for this large and diverse country. Lavish advertisements, as well as interviews with toppers, make it quite obvious that those who can afford expensive coaching classes have a distinct advantage in this system. Like many other competitive examinations, NEET has spawned a coaching industry, with some parts of the country proving to be ideal locales for academic sweatshops. Many of those in the top percentiles have attended long-term coaching classes as well as crash courses, paying exorbitant fees. There is anger in Tamil Nadu against this perceived socio-economic asymmetry built into the medical admission process that keeps medical courses out of bounds for disadvantaged sections. Such feelings intensified as a result of at least two young women committing suicide after they failed to clear NEET. One of them had enough marks in her higher secondary examination to gain admission to a medical college, if the State government had its own admission system.






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Way ahead

But overall, there is no escaping the fact that the country is committed to having uniform standards in medical education, and that this can play a role in meeting the important objective of maintaining standards in health care. NEET is here to stay and State governments are now best-advised to upgrade academic standards and prepare their students better. This will help in seeing that India s healthcare infrastructure continues to get a steady inflow of medical manpower drawn from all sections of society. (Adapted from The Hindu)

6. Why did riots erupt in Shillong? (Relevant to GS Prelims, GS Mains Paper II; Polity

& Governance)

What is the conflict?

The landscape of Shillong reminded the primarily Scottish officers of East India Company of the glens back home. The hill station, established in 1874 as the headquarters of Assam Province, thus earned the sobriquet, Scotland of the East. A major base for Allied forces on the Burma front during the Second World War, Shillong, after Meghalaya s statehood in 1972, has been a theatre of communal conflicts between the dominant Khasi tribe and dkhars, a derogatory term for non-tribal outsiders. Why did the city burn?

The Mazhabi or Dalit Sikhs are one of the earliest non-tribal settlers in Shillong. The British, who had set up a base in the city — then a village around the Hima (kingdom or traditional state) of Mylliem — in the 1950s, had brought them for manual scavenging, a job the locals would not do. The place they settled down came to be known as Punjabi or Sweepers Lane or Harijan Colony. On May 31, a scuffle between girls of this colony and a Khasi driver of a bus that blocked their way to a water source snowballed into a communal conflict. Though the two parties came to a compromise and the Sikhs paid Rs.4,000 for the treatment of three injured Khasi boys, a WhatsApp message that the three had died turned the area into a battleground with mobs throwing stones and Molotov cocktails and the police firing tear-gas shells. The stand-off continued for five days. Was there a design?

Locals have for long considered Punjabi Lane an eyesore, whose residents are stereotyped as trouble-makers. The violence was seen as an excuse for political parties and pressure groups such as the Khasi Students Union to revive the old demand for shifting the colony to the outskirts of the city. The Sikhs refuse to budge, claiming that the Syiem (king) of Mylliem had given the land for permanent settlement through a December 10, 1863, agreement with the British. They allege that the colony is being eyed by developers for a shopping complex. The coalition government, headed by Conrad K. Sangma, assuaged the tempers by forming a high-level committee to consider an acceptable relocation plan. But members of Sikh organisations and the National Commission for Minorities, who visited Shillong during the violence, said relocating people living in a place for more than 150






7



years would not be possible. Shillong is quieter now, but parts of the city remain under curfew, and Punjabi Lane is being guarded by paramilitary forces. Was it an aberration?

Unlike other urban spaces in the northeastern India that began as homogenised habitations, Shillong was born as a cosmopolitan town because the British needed occupation-specific communities to run the administration. As the capital of much of the present-day northeastern India, Shillong remained pluralistic after 1947. Meghalaya s statehood reduced Shillong s administrative reach, but it gained popularity as India s western music hub that celebrates birthdays of Bob Dylan and Bob Marley with annual gigs. But several waves of ethnic cleansing between 1979 and 1992 — first against the Bengalis, who formed the clerical cadre of the British, followed by Nepalis and Biharis — dented Shillong s image as a quiet hill town that Rabindranath Tagore eulogised in some of his poems and plays. Scores of non-tribal people were killed and thousands left. The numerically weaker Sikhs are perhaps the last dkhar group to be targeted. What next?

Shillong has its eyes on becoming a major tourist destination. The names of many places in the city and elsewhere in the Khasi landscape begin either with Um, meaning water, or Maw, meaning stone or rock. The local name of Punjabi Lane is Them Iew Mawlong, the politics of mistrust around whose residents has rocked Shillong, often called India s rock n roll capital. The maws could be flying again, depending upon what the committee, facing criticism for not including a Sikh representative, prescribes. But Shillong needs to repair the dent in its tourist-friendly image, more so with a ban on coal-mining affecting Meghalaya s economy. (Adapted from the Hindu)

7. Draft pesticide Pesticides Management bill will hurt farmers (Relevant for GS

Prelims, GS Mains Paper II; Polity & Governance)

Concern about new clauses

A group of Indian pesticide manufacturers says that the proposed Pesticides Management Bill, which is likely to be finalised this month, will harm both farmers and the domestic industry by not making it mandatory for the active ingredients of pesticides to be revealed in the registration process. The draft Bill will allow importers to register readymade products without registering the active ingredients. He said that this would prevent Indian manufacturers from registering me-too registrations and producing pesticides at a cheaper rate. What could be possible implications?

Mr. Dave pointed out that farmers were able to buy a pesticide from Indian manufacturers at less than half the rate as sold by importers or multi-national corporations. For example,






8



Bispyribac sodium, a herbicide for paddy, was introduced in the market at Rs. 8,000 per kg by an MNC but is now sold by Indian manufacturers at Rs. 3,500/kg. What are the provisions under existing bill?

The Bill, a draft of which was made available for public feedback by the Ministry for Agriculture and Farmers Welfare in February 2018, is intended to replace and update the Insecticides Act, 1968. The existing law mandates the registration of active ingredients, and allows for me-too registrations under Section 9(4). However, in 2007, the government started allowing importers to register new formulations while keeping active ingredients secret for a fixed period. Though this policy was challenged in the Gujarat High Court and struck down in 2013, importers have been reluctant to comply, Mr. Dave said. State of pesticides market

Currently, the domestic pesticide market is valued at around Rs. 20,000 crore, of which importers hold 30%. Mr. Dave said if the draft Bill was approved in its current form, it would demolish the concept of Make in India in the pesticides sector. This is not about intellectual property rights, he insisted. Most of these [imported]

products are 25-30 years old, and their patents have long expired. By not registering active ingredients, they are effectively ever-greening their patents and harming the domestic industry. (Adapted from the Hindu)

8. On Tamil Nadu organ transplant allocations (Relevant for GS Mains Paper II; Polity

& Governance)

What is the state of transplantation in India?

Transplantation of human organs is today a mature programme in many States, making it possible for people with kidney, liver, heart and lung failure to extend their lives. Heart and lung transplants are expensive and less widely available, compared with kidney and liver procedures. Responsibility of State governments

State governments, which have responsibility for health care provision, are expected to ensure that the organs that are altruistically donated by families of brain-dead people are given to recipients ethically, and as mandated by law. Priority for citizens enrolled in the State and national waiting lists over foreign nationals is laid down in the Transplantation of Human Organs and Tissues Rules. How have the rules been violated recently?

When the law is clear, it is extraordinary that seemingly preferential allotment of hearts and lungs has been made to foreign patients in Tamil Nadu — in 2017, foreigners accounted for 25% of heart transplants and 33% of lung transplants.






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What are the expectation from State governments?

The State is a pioneer in orderly and transparent allocation of deceased-donor organs, and has worked consistently to eliminate commerce in kidneys procured from poor living donors. The Transplant Authority of Tamil Nadu has served as a model for other States that now have their own programmes. Every effort must be made to ensure that it retains this high reputation, and organs go to the most suitable recipients on the rule-based parameters of domicile, citizenship, Indian origin and foreign nationality, in that order. Way forward

Organ transplants display a maturity curve over time, with a rise in the number of procedures improving outcomes and reducing costs. Heart and lung transplants are complicated procedures. Few Indian patients are willing to opt for one, compared to kidney and liver. Kidney and liver programmes have reached a high level of maturity, resulting in rising demand. Most of these organs go to citizens. Tamil Nadu offers a subsidy for poor patients for a liver transplant. Any inquiry into the allocation of hearts and lungs to foreigners should, therefore, shed light on the factors that led to the decisions, including whether registered citizens were overlooked. It should cover such issues as the capacity of district-level hospitals to perform transplants, and arrangements to air-lift organs, since domestic patients are unable to afford flight facilities. Such measures will make it possible to utilise more hearts and lungs, and offer them to domestic recipients. Enrolling all domestic patients through State registries should be the priority for the National Organ and Tissue Transplant Organisation, set up by the Centre with that mandate. Nothing should be done to erode the confidence of the kin of brain-dead people who donate organs with no expectation of gain. Hospitals and professionals who engage in commerce or unethical behaviour should have no place in the system. (Adapted from The Hindu)

9. President rejects Tamil Nadu s plea to release Rajiv Gandhi killing case convicts

(Relevant for GS Prelims, GS Mains Paper II; Polity & Governance)

Decision of President

President Ram Nath Kovind has rejected the Tamil Nadu government s request to release the seven prisoners convicted for the assassination of former Prime Minister Rajiv Gandhi on May 21, 1991. Mr. Kovind conveyed to the government that the Centre doesn t concur with its view to release the prisoners. The President is bound by the advice of his Council of Ministers in such matters. The President has rejected the Tamil Nadu government s plea to free the prisoners on the advice of the Home Ministry. This has been conveyed to the State. The assassins of the former Prime Minister of India cannot walk free under any circumstances. View of State government






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In the last four years, the State government has written twice to the Home Ministry to pardon the convicts and release them on humanitarian grounds. Intervention of Supreme Court

On February 14, following the Supreme Court s directions, the Ministry of Home Affairs (MHA) sought details on eight grounds from the State to facilitate further its request to release the convicts. It asked the State to furnish details such as the physical and mental status of the convicts, their economic and social background and the previous cases registered against them. The convicts are V. Sriharan alias Murugan, A.G. Perarivalan, T. Suthendraraja alias Santhan, Jayakumar, Robert Payas, Ravichandran and Nalini. On January 23, a three-judge Bench of the Supreme Court gave three months to the Home Ministry to decide on Tamil Nadu s proposal to remit the sentences of the life-term convicts. The Centre moved court against the State s proposal, which dates back to February 19, 2014, where it said the State had decided to remit their sentences as they had already served more than 20 years in prison. On March 2, 2016, then T.N Chief Secretary K. Gnanadesikan sent another communication to the MHA that it had received petitions from the convicts with requests to release them since they have spent more than 20 years in prison. The Government, after taking into consideration the petitions of the seven convicts, has decided to remit the sentences of life imprisonment as they have already served imprisonment for 24 years, Mr. Gnanadesikan's letter said. In December 2015, the Supreme Court said the State government had no power to release the convicts without the Centre s concurrence. What does the law say?

Under Section 435 of the Criminal Procedure Code, the State government has to consult the Centre before releasing prisoners who were tried by the CBI or under a central legislation. (Adapted from the Hindu)

10. Suspense continues: on TN MLAs' disqualification case (Relevant for GS Prelims,

GS Mains Paper II; Polity & Governance)

Split verdict by TN bench on disqualification of MLAs

It is a development that prolongs the political uncertainty in Tamil Nadu and leaves as many as 18 Assembly constituencies unrepresented. As a result of the split verdict by a two-member Bench of the Madras High Court on the disqualification of 18 legislators, Chief Minister Edappadi K. Palaniswami s regime gets a further lease of life. A unanimous judgment would have adversely impacted his government, regardless of the decision. What could have been judgement?

If the Bench had struck down the disqualification, the MLAs owing loyalty to Amma Makkal Munnetra Kazhagam leader T.T.V. Dhinakaran would return to the Assembly – a scenario in






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which the AIADMK regime would find itself cornered, as it owes its majority to the 18 disqualifications. Had the disqualifications been upheld, the ruling party would have been faced with the uphill task of retaining the seats in by-elections. The case relates to a memorandum given by Mr. Dhinakaran s loyalists to the Governor in August 2017, expressing lack of confidence in the Chief Minister and requesting the Governor to set in motion a constitutional process against him. On a complaint from the party s Chief Whip, the Speaker ruled the MLAs had incurred disqualification, as their action amounted to voluntarily giving up party membership, one of the grounds for disqualification under the anti-defection law. What are the view of judges?

View of Chief Justice Indira Banerjee

While both judges are cognisant of the limits of judicial review on the matter, Chief Justice Indira Banerjee, upholding the September 2017 order of disqualification, has declined to interfere on the ground that it was proper to examine only the decision-making process, not its merits. She concedes that mere criticism of the Chief Minister or withdrawal of support, by itself, would not attract disqualification; at the same time, she rules that if the MLAs action results in the fall of their party s government, it is tantamount to implied relinquishment of their membership. She finds no perversity or mala fide in the Speaker s action. View of Justice M. Sundar

Justice M. Sundar, on the other hand, is categorical that the Speaker s order is vitiated by all the four grounds on which judicial review in such cases is permitted: perversity, mala fide, violation of natural justice and the constitutional mandate. He terms as mala fide the Speaker s decision not to apply the disqualification rule to S.T.K. Jakkaiyan only because he returned to the loyalist fold. He agrees with the contention that the Speaker s order was aimed at creating an artificial majority . He is clear that the question of voluntarily giving up membership of the AIADMK would not arise when the party itself was embroiled in a factional tussle before the Election Commission. The third judge, to whom the matter will be referred now, has to choose between the limited view of the decision-making process taken by Justice Banerjee, and the more expansive view taken by Justice Sundar. (Adapted from the Hindu)

11. Shujaat Bukhari murder (Read only for understanding; Polity & Governance)

Shujaat Bukhari, a journalist

The death of Shujaat Bukhari in a terrorist attack at close range in Srinagar has taken away a journalist who held bold and independent opinions on the conflict in Kashmir and how it should be resolved.






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Timing of murder

In the choice of target and the timing of the murder, the attack sends out a chilling message: that on the eve of Id-ul-Fitr and in the closing days of the government s Ramzan ceasefire against militants, there are forces determined to gut the emerging consensus for extending the cease-ops and preparing the ground for dialogue. What were Bukhari views?

Bukhari, given the credibility he had painstakingly built with reportage that conveyed the complex reality of life in the Valley, was a prominent advocate of the ceasefire and the need to extend it. Whichever terrorist group chose to kill him would have been aware of the consequences of his death. What were the other instances in this week?

This has been a dark week in Jammu and Kashmir. Two security personnel with Bukhari were killed in the attack in Srinagar s Press Colony. This week itself, the body of Aurangzeb, a jawan with the 44 Rashtriya Rifles who had been kidnapped while on his way home for the Id holiday, was found in Pulwama district riddled with bullets. In Bandipora, two militants and an Army jawan were killed. Days earlier, terrorists killed two policemen in Pulwama. These incidents prevent peace

It is easy to spot the insistence to pull Kashmir back into the cycle of violence that was sought to be broken by the ceasefire. It is a challenge that the governments at the Centre and the State, as well as the security forces, would have been prepared for, and they must not allow these provocations to dim the case for a more humane outreach. J&K Chief Minister Mehbooba Mufti must not be rendered a lonely voice for truce and dialogue. Bukhari s killing highlights the dangers that reporters and editors face in the country — his death draws a direct line to the attacks on countless journalists, including the murders last year of Gauri Lankesh in Karnataka and Santanu Bhowmik in Tripura. Bukhari himself has been abducted before, in 2006. He survived that ordeal, but had to work thereafter with security cover, something no reporter would envy. That his guards died with him on Thursday underlines the vulnerability of both those who are guarded and those who guard. It also underscores the irreplaceable role of the journalist in Kashmir, where daily lives are negotiated amid conflicting narratives, ideologies and affinities. To reconcile these, the reporter needs to have in his tool kit an open heart, the persistence to tease out stories and connect all dots, no matter how they may disturb nationalist or separatist sentiments. Without information, reconciliation is impossible. Over the decades, Bukhari enlightene readers even as he mentored journalists as the editor and founder of Rising Kashmir,and earlier as The Hindu s correspondent. (Adapted from The Hindu)

12. Who is Prafulla Mahanta and why he is on agitation? (Relevant for GS Prelims, GS







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For former Assam Chief Minister Prafulla Kumar Mahanta, life appears to have come full circle. He is back in agitation mode that arguably made him — to the world beyond — the most talked-about and recognisable regional political face in the northeastern India since 1979. Behind the rejuvenation of the revolutionary, albeit mellowed, in him is the Citizenship (Amendment) Bill, 2016, that the BJP at the Centre wants to push through. The Bill seeks to fast-track the process of citizenship to non-Muslim migrants from Afghanistan, Bangladesh and Pakistan. Why has he hit the streets?

Mr. Mahanta, 67, was one of the first to foresee the demographic damage the Bill is expected to bring about in Assam, where politics has revolved around the issue of illegal immigrants, primarily from Bangladesh, for almost five decades now. In 2017, he formed a platform of Assam agitation veterans for rallying support against the Bill. The Asom Andolan Sangrami Mancha, mostly comprising leaders loyal to Mr. Mahanta, is nowhere near the All Assam Gana Sangram Parishad that was formed on August 26, 1979, to lay the foundation for a violent anti-foreigners movement that ended with the signing of the Assam Accord in 1985. But the Mancha has been staging rallies, demanding the scrapping of the Bill that seeks to amend the Citizenship Act, 1955. Mr. Mahanta and his team have also taken the fight to New Delhi for building consensus among all parties before the July session of Parliament. Are people listening?

The All Assam Students Union that Mr. Mahanta led during the six-year Assam agitation has been leading the anti-Citizenship Bill movement too. There are other sub-nationalist groups, such as the Krishak Mukti Sangram Samiti, opposed to the jaatidhwongshi or anti-Assamese Bill. The Mancha, too, is playing a role in generating opinions, though it is seen as Mr. Mahanta s fight for relevance in the Asom Gana Parishad (AGP) that he co-founded in 1985 and extracting his pound of flesh from the BJP that he helped gain a foothold in Assam through a suicidal alliance in 2001. As someone who graduated from an allegedly parochial student leader to an inclusive political entity, he has been trying to ensure his crusade against the Bill does not paint him as insular again. Apart from speaking against the BJP and the dangerous Bill, he has been trashing the propaganda to label him and his movement as anti-Bengali or anti-Hindu. One must understand Assam has no space for people from other countries, Hindus or Muslims, who came after March 24, 1971, the cut-off date for detecting and deporting illegal migrants, he says. Is this a comeback for him?

Emotions associated with the Assam agitation saw the AGP sweep the 1985 elections and Mr. Mahanta becoming India s youngest Chief Minister until Madhu Koda of Jharkhand snatched the record later. After the initial euphoria, the people realised they had given power to political novices. And Mr. Mahanta soon learned that running a State was not the same as running a students body. His first term ended in November 1990, with the imposition of President s Rule because of the rise of the extremist United Liberation Front of Assam (ULFA). Power had also led to an ego war between him and other AGP leaders,






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leading to a split in the party. The factions reunited for Mr. Mahanta to become Chief Minister again in 1996. This time, he cracked down on the ULFA, but the devil within the AGP struck again as other top leaders formed three factions. Despite allying with the BJP, the AGP lost the 2001 elections and Mr. Mahanta was forced to quit as president of the party he had been heading since its birth. He returned 10 years later to become its president again. He stepped down in 2014 owning responsibility for the party s Lok Sabha election debacle, but found himself sidelined since the BJP-AGP came to power in May 2016 along with the Bodoland People s Front. (Adapted from The Hindu)

13. Delhi stand-off: Power crisis (Relevant for GS Prelims, GS Mains Paper II; Polity &

Governance)

What are the causes behind crisis?

The immediate provocation for Chief Minister Arvind Kejriwal sitting on a dharna at the residence of the Lt. Governor might have been a run-in with the bureaucracy, but the crisis is rooted in the understanding (or misunderstanding) of the constitutional limits of the powers of the elected government in the National Capital Territory of Delhi. The Aam Aadmi Party government has a history of confrontation with the Centre on the question of who is the administrative head of a region that is less than a State and more than a Union Territory. Since the party came to power in 2015, the demand for Delhi to be given the status of a full-fledged State, allowing it among other things powers over the police, has become strident. Differences extend to the LG s discretionary powers to appoint the Chief Secretary, with the AAP nursing a grouse that the bureaucratic cadre came directly under the Centre. What made the matters worse?

Matters came to a head when Chief Secretary Anshu Prakash was assaulted during a late-night meeting in Mr. Kejriwal s presence. Since then, officials have been in a non-cooperative mode, only attending statutory meetings, skipping what they term are routine meetings and not taking phone calls from Ministers. Mr. Kejriwal and his Cabinet

colleagues decided on the dharna in protest, but instead of forcing a solution, they may have precipitated a crisis. Members of the BJP responded with a dharna at the Chief Minister s residence, completing the political spectacle. Evaluation of AAP stand

In adopting the politics of protest as part of its quest to expand the powers of the elected government, the AAP is putting governance at risk. Instead of mounting a legal challenge to the Centre s efforts to further curtail the limited powers of the Delhi government, Mr. Kejriwal chose to respond politically. While he might like to be seen as a constitutional functionary whose hands are tied by an overbearing Centre, he is coming across as






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someone who is keener on a bigger fight on a bigger stage than as one eager to fulfil his constitutional mandate. What should be done?

The dharnas might end, but the underlying causes of the present crisis will not disappear without the Centre and the Delhi government agreeing on the terms of engagement through the office of the Lt. Governor. The BJP cannot mock Mr. Kejriwal out of politics; the Centre will have to deal with him, and work jointly with the AAP government for the welfare of Delhi s citizens — something it has failed to do. The way to fight the AAP cannot be by placing handcuffs on the Delhi government. As for the AAP, it should learn to make the best of the system before demanding more autonomy. To push the constitutional limits to acquire more meaningful powers is fine, but it cannot be at the cost of failing to do whatever is possible within the current framework. (Adapted from The Hindu)

14. Mehbooba quits as CM after BJP pulls out of alliance (Relevant for GS Prelims, GS


What has happened?

Jammu and Kashmir Chief Minister Mehbooba Mufti resigned after the BJP announced that it was pulling out of the alliance with her Peoples Democratic Party that has ruled the State since March 2015. Later in the day, Governor N.N. Vohra forwarded his report to the President recommending imposition of Governor s Rule in the State. What has happened before that?

The BJP s decision to sever ties was announced by party general secretary and point man for Jammu and Kashmir affairs Ram Madhav at a press conference in New Delhi. It came after a hurriedly called meeting of the BJP s Ministers in the State government and State unit office-bearers.






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Mr. Madhav said Prime Minister Narendra Modi and party chief Amit Shah were both on board in the decision. It has become untenable for the BJP to continue in alliance with the PDP in Jammu and Kashmir, he said, claiming that the Centre and the Home Ministry had made a sincere effort. It grieves me that despite this, the dominant partner in the alliance [the PDP] was not able

to handle the situation in the State. Obstacles were also placed in the way of development projects in Jammu and Ladakh, said Mr. Madhav, clearly signalling that the BJP was upset at its own corroding support base in Jammu and Ladakh because of partnering with the PDP. What does analysts say?

Senior leaders said the BJP had also anticipated that the PDP was going to pull out of the alliance sometime in September, and that it was a pre-emptive strike to offset more political damage. Of late, the two partners were seen pulling in different directions on the approach to be adopted towards growing anti-India protests, separatists and local militants. While the BJP pushed for a hot pursuit against separatists and militants in the first half of 2017, the PDP pushed hard for the Centre s unilateral ceasefire during Ramzan this year which was subsequently not extended. What was the outcome of 2014 assembly polls?

In the Assembly polls in December 2014, the PDP had won 28 seats and the BJP 25 in the 87-member House. The two parties finally formed the government on March 1, 2015 with an Agenda of Alliance . The National Conference and the Congress — which won 15 and 12 seats respectively — said that there were no prospects of alternative alliances. (Adapted from The Hindu)

15. Questions on ICICI Bank board (Relevant for GS Mains Paper II; Polity &

Governance)

What is the allegation against the ICICI Board?

The board of ICICI Bank has finally acted on the allegations of misconduct against its CEO and managing director, Chanda Kochhar. It had earlier maintained that she was on annual personal leave; now, she will stay away from the office till the completion of an inquiry into the charges levelled against her by a whistle-blower. Rather than allow the controversy to fester, the board of ICICI Bank, an institution that often sought to hold a mirror up to the inefficiencies of public sector banks, should have acted earlier.






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Till the inquiry is complete the bank will be steered by a new chief operating officer, Sandeep Bakhshi. The official version is that he will report to Ms. Kochhar, who herself took the decision to go on leave till the end of the inquiry — but this is at best a face-saving cover for a board that was reluctant to act since the controversy broke. Meanwhile, the tenure of M.K. Sharma, the chairman of the bank s board, is set to end this month and there is still no clarity on his successor. This extended uncertainty in a crisis situation is unwarranted. What is allegation against Ms. Kochar?

ICICI Bank s troubles are rooted in a 2016 complaint by an investor alleging a quid pro quo deal between Ms. Kochhar s immediate family members and the Videocon group, which got a Rs. 3,250-crore loan from it. When this conflict of interest complaint resurfaced in the public domain this year, Mr. Sharma said he had personally inquired into it two years earlier and found nothing amiss. How the issue came to limelight?

With the Central Bureau of Investigation and later the stock market regulator SEBI swooping in, the issue of whether the bank had failed to make adequate disclosures about its dealings with the borrower (who is now a defaulter) and a firm related to Ms. Kochhar s husband was spotlighted. The bank is yet to respond to SEBI, but changed tack after the latter decided to launch a probe into allegations of a quid pro quo and alleged misconduct by Ms. Kochhar. What is the stage of investigation?

Three weeks on, the names of the members of and terms of reference for the probe panel to be led by retired Supreme Court judge B.N. Srikrishna are still awaited. It is debatable whether such a high-profile panel is required to ascertain if Ms. Kochhar, whose term ends next March, had made adequate disclosures while deciding on the loans. What should be done?

The board itself could have dealt with this through an internal investigation rather than giving the impression that it wanted to paper over the issue, sending a poor signal to all stakeholders. No doubt Ms. Kochhar, a star on the corporate firmament, enjoys a formidable reputation as a banker. While one should not prejudge the inquiry findings, there is no doubt that the strength of corporate governance practices in the bank has come under question because of the way the issue has played out. (Adapted from The Hindu)

16. AAP and officers locked in a tussle (Relevant for GS Prelims, GS Mains Paper II;

Polity & Governance)






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What is it?

All of last week, unprecedented images were emerging out of a visitors room in the residence-cum-secretariat of Delhi s Lieutenant-Governor Anil Baijal. Chief Minister Arvind Kejriwal and three members of his Cabinet had gone in for a 5.30 p.m. meeting with Mr. Baijal on June 11 and decided to stay till he gave in to their demands. The Aam Aadmi Party leaders wanted him to intervene and end what they called an illegal strike by bureaucrats for the past four months. Mr. Baijal refused to do so, arguing that it was between the political executive and the officers. The stalemate went on for nine days, as the Chief Minister and the Ministers spent the nights, ate their meals and tweeted from that room. Finally, on June 19, the dharna ended after officers attended some meetings called by the Ministers who had been outside the Raj Nivas. The officers maintained that they had been attending meetings. How did it come about?

Mr. Kejriwal s dharna was four months in the making. On February 19, Chief Secretary Anshu Prakash was called to the Chief Minister s house for a meeting at midnight. What happened after that is now being investigated by the Delhi Police. The Chief Secretary alleged that he was assaulted by AAP MLAs, while Mr. Kejriwal and Deputy Chief Minister Manish Sisodia were present in the room. An FIR was filed, two AAP MLAs were arrested and later released, and Mr. Kejriwal and Mr. Sisodia were questioned. After the alleged assault, officers of various cadres, including the IAS AGMUT (Arunachal Pradesh-Goa-Mizoram-Union Territories), the Delhi, Andaman and Nicobar Islands Civil Service (DANICS) and the Delhi Administrative Subordinate Services (DASS), protested. Why does it matter?

A joint forum of the three was formed, and it decided that officials would restrict their communication with the political executive to the written form and would attend only those meetings mandated by rules. So, an officer would attend meetings of the Cabinet, but would not meet a Minister in his office without notice. They insisted that this was not a strike. The officers demanded an apology from Mr. Kejriwal and Mr. Sisodia for the alleged attack. Both have denied the attack. In the past four months, the government has been at odds with its officers. The AAP has accused the Centre and the Lieutenant-Governor of orchestrating the agitation. In an unprecedented move, the officers have taken to Twitter and addressed press conferences, airing complaints of harassment by the political executive and concerns about their safety. But the relations between the two had been rocky from the start. Soon after the AAP came to power in February 2015, the Union Ministry of Home Affairs in May that year put out a notification saying that besides public order, land and the police, which had always been in the domain of the Lieutenant-Governor, services, which involve the transfers, postings and disciplinary action against officers, were now in the Lieutenant-Governor s jurisdiction.






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The AAP went to court. The case ended up with the Supreme Court s Constitution Bench, which has reserved orders. Since then, the AAP has said the Centre is using the bureaucracy to derail its work. What lies ahead?

Though the dharna is over, the trust deficit at the heart of the tussle remains. The officers insist that concerns about their safety and the environment at work have not been addressed. As a result, they continue the silent protest at lunchtime as they have done since February. With Mr. Kejriwal away in Bengaluru for naturopathy treatment till the first week of July, a meeting between him and the officers, as was demanded by the officers and privately agreed to by the government, is yet to take place. On Thursday, Mr. Sisodia offered to meet the officers. But the officers declined. What lies ahead depends on whether the meeting happens when the Chief Minister returns. (Adapted from the Hindu)






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International Organizations and Relations

1. Modi, Mahathir dialogue (Relevant for GS Prelims, GS Mains Paper II; IOBR)

Meeting with Malaysian PM Mahathir Mohamad

Prime Minister Narendra Modi met his newly-elected Malaysian counterpart Mahathir Mohammad and the two leaders had a productive exchange of views on strengthening the strategic partnership. Mr. Modi, who arrived on the second leg of his three-nation tour, met 92-year-old Mahathir in his office at Perdana Putra Complex, Putrajaya. About Mr. Mahathir coming to power

Mr. Modi is among the first world leaders to meet Mr. Mahathir after he became the world s oldest elected leader when his opposition alliance registered a stunning victory over the Barisan Nasional (BN) coalition, which had ruled Malaysia since 1957. Dr. Mahathir was sworn in as Malaysia s Prime Minister on May 10. (Adapted from The Hindu)

2. Savita, the face of a movement (Relevant for GS Prelims, GS mains paper II, IOBR)

Who was Savita Halappanavar?

Savita! Savita! chanted men and women, young and old, who gathered at Dublin Castle last weekend to celebrate the news that, by a clear majority, Ireland had voted to repeal the Eighth Amendment that effectively bars women from having abortions under most circumstances. The case of Savita Halappanavar, a 31-year-old dentist originally from Karnataka, who died of septicaemia in 2012 after she was refused an abortion at University Hospital Galway, has been at the heart of the heated debate in the weeks running up to the May 25 vote. The images of Savita that made their way onto billboards, placards, flyers, murals and social media — smiling confidently at the camera, her face framed by thick, lustrous black hair — represented to many what was so fundamentally wrong about the system. That a person so full of energy and with so much to live for could have her life cruelly cut short by laws out of tune with society s march provoked widespread outrage.

What s the situation?

Abortion has been illegal in Ireland as long as the state has existed, but lobbyists fearing change pushed for the 1983 Eighth Amendment of the Constitution. It treated the right to life of the unborn child as equal to the right of life to the mother and followed a referendum in which over two-thirds supported the inclusion of the amendment, though on a turnout of 53%. Over the coming year society changed rapidly, including supporting gay marriage in 2015. However, the abortion legislation remained firmly restrictive, allowing terminations only






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when there was a risk of suicide or harm to the health of the mother (but not in the event of rape). Attempts were made to ease restrictions, including through a case which made its way all the way to the European Court of Justice, to little avail. While some who sought abortions were able to travel abroad, including to the U.K. where over 1,60,000 Irish women had terminations between 1980 and 2016, many were unable to do so. What was her impact on vote?

The 2012 death of Halappanavar helped to catalyse a grass-roots campaign for change. Immediately after her death, protests, and candle-light vigils were held nationwide. While some pointed to the lack of clarity in legislation, many pushed for a fundamental change. They included — powerfully — her parents who from the outset were adamant that laws needed to change fast to ensure no one suffered the fate of their daughter. In the end, following weeks of formal campaigning, over 66% voted to scrap the amendment, while just one rural county, Donegal, voted to keep it. The government has emphasised the broad-based nature of the vote — cutting across age, class, gender and locality. Leo Varadkar, the Prime Minister, had pledged a referendum on abortion after coming to power, though his precise views on what needed to change remained unclear. The people have spoken, he said after the result, which he said indicated we trust women and we respect women to make their own decisions and their own choice. What happens now?

The government is pushing for the legalisation of abortions on request (and subject to medical advice) for the first 12 weeks, and in rarer cases up to 24 weeks. Legislation could be in place by year-end.

Will there be Savita's Law?

There are pleas for the new law to be called Savita s Law. The vote in Ireland has also spurred calls for a change across the border in Northern Ireland, where abortion rules remain highly restricted, compared with the rest of the U.K. The British government — eager to please its highly conservative Northern Irish ally, DUP, has pushed back against calls for change. Longer term, however, it is hard to see how political forces can ignore the powerful message sent by tragic cases such as Halappanavar s. (Adapted from The Hindu)

3. Shangri-La Dialogue: on foreign policy re-orientation (Relevant for GS Prelims, GS

Mains Paper II; IOBR)






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Prime Minister Narendra Modi s visit to Indonesia, Malaysia and Singapore, three of India s most important partners in Southeast Asia, could not have come at a more important moment in Indian foreign policy positioning. Change in foreign policy stance recently

In the past few months, the government has shifted considerably in its signalling, with Mr. Modi visiting China and Russia for informal summits with Presidents Xi Jinping and Vladimir Putin, respectively. The fact that these visits have taken place at a time the U.S. administration has sharpened its aim at China and Russia with sanctions and threats of a trade war suggests Mr. Modi is also attempting to moderate India s strategic posturing on the global stage, and striving for a more balanced approach in what it increasingly sees as an uncertain world. Relations with US as per past commitments

India has also maintained its commitment to relations with the U.S. in order to build a free and open Indo-Pacific region, maintain the international rules-based order , and work together to combat terrorism and terror financing — as they have done more recently at the UN and the Financial Action Task Force. Attempt to balance

Meanwhile, India s membership of both the Quadrilateral (with the U.S., Japan and Australia) and the Shanghai Cooperation Organisation (the Russia-China-led grouping of Central Asian countries, whose summit Mr. Modi will attend this week) is also an indicator of the new balance that New Delhi seeks. Shangri-La Dialogue : Principles based stand

It is significant that in Singapore Mr. Modi chose the platform of the Shangri-La Dialogue of defence leaders of the Asia-Pacific region to emphasise Indian strategic autonomy . In his speech on the concept of the Indo-Pacific he referred to India s relations with Russia, the U.S. and China. Given his government s particular distaste for the term in the past, it is telling that Mr. Modi appeared to be channelling some of the Bandung spirit of 1955 that led to the formation of the Non-Aligned Movement, when he praised Singapore for teaching the world the importance of making free and fair choices and embracing diversity at home . When nations stand on the side of principles, not behind one power or the other, they earn the respect of the world, Mr. Modi said as he unveiled a seven-point vision for the Indo-Pacific region. While warning the world about the possible return of great power rivalries , he emphasised the importance and centrality of the ASEAN in the concept of the Indo-Pacific. The principled vision Mr. Modi projects is a departure from the transactionalism and pragmatism espoused by many in South Block over the last few years. However, it may also be a return to familiar moorings of Indian foreign policy, necessitated by what the Prime Minister identified as the shifting plates of global politics and the fault lines of history . (Adapted from The Hindu)






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4. India not yet ready to sign the Hague treaty (Relevant for GS prelims, GS Mains

Paper II; IOBR)

View of government

The government is not yet ready to sign the Hague treaty on inter-country abduction of children by parents fleeing a bad marriage, said a senior official of the Ministry of Women and Child Development (WCD). There has been immense pressure from the U.S. on the government to sign the treaty though the government has long held the view that the decision could lead to harassment of women escaping marital discord or domestic violence. Report of Central committee

A committee constituted by the Centre to examine legal issues involved in international parental abduction submitted its report in April, opposing a central provision of the Hague Convention. It said that the criterion of habitual residence of the child, which is used to determine whether the child was wrongfully removed by a parent as well as to seek the return of the child to the country of habitual residence, was not in the best interest of the child. What is Hague convention?

The Hague Convention is a multi-national treaty that seeks to protect children wrongfully removed by one of the parents from the custody of the other parent. Nodal body

It also recommended setting up of a Child Removal Disputes Resolution Authority to act as a nodal body to decide on the custody of the child as well as a model law to deal with such disputes. However, the government is contemplating assigning the National Commission for Protection of Children the responsibility to adjudicate on such cases along with a judicial expert. While the government had decided in late 2016 that it will not sign the Hague treaty, later it appointed a panel to prepare a report indicating that there was some rethinking within the government on the matter. (Adapted from The Hindu)

5. Indonesia wins UNSC vote (Relevant for GS Prelims, GS Mains Paper II; IOBR)

Indonesia became non-permanent member

The Maldives failed to get elected to the UN Security Council as a non-permanent member. Maldives and Indonesia had contested for a seat in the UNSC, but in the plenary session






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held at the UN headquarters in New York, Indonesia won the seat after securing 144 votes against 46 for the Maldives. India s position unknown

The Ministry of External Affairs maintained a studied silence on whether India voted against the Maldives. An official source said, We rarely make public announcement on this kind of issues. 190 members participate

In the election, 190 members participated, and the winning members had to get more than two-thirds majority or 127 votes. Indonesia is likely to take up the seat on January 1, 2019 with other newly elected non-permanent members — Germany, Belgium, Dominican Republic and South Africa. India s ties with Indonesia and Maldives

India s relation with the Maldives has nosedived in recent months with Delhi expressing dissatisfaction on the law and order situation as well as on the imposition of a state of emergency by the Abdullah Yameen government. Earlier in the week, a prominent member of Mr. Yameen s party was not allowed to enter India and was sent back from the airport in Chennai. In comparison, India s ties with Indonesia have witnessed an upswing with the recent visit of Prime Minister Narendra Modi to the country. (Adapted from The Hindu)

6. U.S. wants India out of S-400 deal (Relevant for GS Prelims, GS mains Paper II;

IOBR)

US pressuring India to boycott Russia

The United States is trying to discourage India from buying large defence systems from Russia, an action that may attract sanctions, according to a senior official of the State Department. What is the US law?

Countering America s Adversaries through Sanction Act (CAATSA), a 2017 law, requires that countries that have significant defence cooperation with Russia be sanctioned by America. Why is India interested in Russia?

India is planning to buy five S-400 Triumf air defence systems for around $4.5 billion from Russia. Other side view of US administration

The Donald Trump administration has publicly expressed its desire to protect India from CAATSA, considering the U.S.-India strategic ties. Defence Secretary James Mattis and Secretary of State Mike Pompeo have urged lawmakers to make changes in the law so that partners like India are not punished. But efforts in this direction are being strongly resisted






25



by Democratic lawmakers who want to put the administration on the mat on Russia relations. (Adapted from The Hindu)

7. Upswing in India-China ties (Relevant for GS Prelims, GS Mains Paper II; IOBR)

Highlights of the summit

Sharing data on Brahmaputra river

In a significant move, China agreed to provide India hydrological data of the Brahmaputra river in flood season, months after Beijing stopped the practice, crucial to predict floods. China to Import non-Basmati rice

The two countries also signed an agreement under which China has agreed to import non-Basmati rice from India which is likely to bridge the ballooning trade deficit to a certain extent. Bank of China branch in Mumbai

India had allowed China s state-owned Bank of China to open its branch in Mumbai. The two Memorandums of Understanding (MoUs) were signed after Prime Minister Narendra Modi held detailed discussions with Chinese President Xi Jinping on bilateral and global issues, which will add vigour to the India-China friendship after their informal summit in Wuhan. Where did the meet take place?

Mr. Modi arrived in coastal city of China s Shandong province on a two-day visit to attend the annual summit of the Shanghai Cooperation Organisation (SCO). 73-day standoff: last year Last year, China stopped sharing data soon after the 73-day standoff between the Indian and Chinese troops at Doklam over Chinese military s plans to build a road close to India s Chicken Neck corridor connecting the north-eastern States. MOU on Brahmaputra data sharing

The first MoU was inked between China s Ministry of Water Resources and India s Ministry of Water Resources, River Development and Ganga Rejuvenation upon provision of hydrological information of the Brahmaputra river in flood season. The agreement enables China to provide hydrological data in flood season from May 15 to October 15 every year. It also enables the Chinese side to provide hydrological data if water level exceeds the mutually agreed level during non-flood season. China, an upstream country, shares the scientific study of the movement, distribution and quality of water data for the river.






26



Originating from Tibet, the Brahmaputra is one of the major rivers in China. From Tibet, it flows down to India and later enters Bangladesh where it joins the Ganga. MOU on rice

The second MoU was signed between China s General Administration of Customs and India s Department of Agriculture, Cooperation and Farmers Welfare on Phytosanitary requirements for exporting rice from India to China, one of the world s biggest rice markets. The 2006 Protocol on Phytosanitary Requirements for Exporting Rice from India to China has been amended to include the export of non-Basmati varieties of rice from India. At present, India can only export Basmati rice to China. What is the relevance of MOU on rice?

Sources said the pact on non-Basmati rice may help in addressing India s concerns over widening trade deficit which has been in China s favour. China has been promising to address the issue of trade deficit with India which has been seeking a greater market access for its goods and services in China. Trade deficit with China stood at $ 36.73 billion during April-October this fiscal. India s trade deficit with China has marginally dipped to $51 billion in 2016-17 from $52.69 billion in the previous fiscal. What is MOU?

Memorandum of Understanding: A memorandum of understanding (MOU) is a document between parties to express a convergence of will to indicate an intended common line of action, rather than a legal commitment. It is a formal alternative to a gentlemen s agreement, but generally lacks the binding power of a contract. Agreement: An agreement is a document written between parties to work together on an agreed upon project or meet an agreed-upon objective. Agreement is binding and holds the parties responsible to their commitment. In bilateral or multilateral relations, MOU reflects the common understanding which further leads to discussions and negotiations amongst the parties. These discussions and negotiations may or may not conclude into agreement. (Adapted from the Hindu and background from Prepmate-Cengage IOBR, Chapter 2)

8. India rebalancing ties with Pak. to open path to Eurasia (Relevant for GS Prelims,

GS Mains Paper II; IOBR)

Attempt to build relations with Pakistan





https://prepmate.in/product/international-organisations-bilateral-relations-civil-services/


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After engaging with China in Wuhan and Qingdao, India appeared to be rebalancing its ties with Pakistan in order to build bridges with Eurasia, within the framework of the eight-nation SCO. Mr. Modi and Mr. Hussain were among the leaders who attended the media briefing after the end of the 18th SCO summit where India and Pakistan participated as full-fledged members. The relations between the neighbours have been strained after an attack on an Army camp in Uri in Jammu and Kashmir by Pakistan-based terror organisations in 2016. Whether change in position of India?

Asked if India s position on Islamabad had shifted since the September summit in Xiamen, where Pakistan-based groups had been named in the joint BRICS statement, the official said that the SCO format was very different from BRICS, of which India was a founding member. Need of Pak to build connectivity

A diplomatic source told The Hindu that India was exploring the possibility of connectivity to Central Asia through the Pakistan-Afghan corridor, under the SCO framework. The SCO has been working on connectivity among its member countries. Now that India and Pakistan are both members, it provides New Delhi with a fresh opportunity to reach out to Central Asia across the Pakistani corridor. Ahead of the summit, Secretary General of the SCO Rashid Alimov had told the Tass news agency of Russia that SCO member states were working on an agreement on creation of favourable conditions for international road transport. Citing experts from the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), he said it would cover more than 15,000 km of high-speed roads, including a 9000 km corridor that would open out the region s landlocked countries to new economic opportunities. On Saturday, Foreign Secretary, Vijay Gokhale signalled India s focus on connectivity with Central Asia by pointing out that India and Uzbekistan are set to route their trade through the Iranian port of Chabahar. (Adapted from the Hindu)

9. Historic handshake — on Trump-Kim summit (Relevant for GS Prelims, GS Mains

Paper II; IOBR)

Trump and Kim met in Singapore

The historic summit between U.S. President Donald Trump and North Korean leader Kim Jong-un in Singapore is an affirmation of the power of diplomacy. Until a few months ago, the two countries had been trading nuclear threats, as the North raced along with its nuclear weapons programme. Now, as Mr. Trump shook hands with Mr. Kim, who had once






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said the U.S. President was mentally deranged , it was a reminder of Richard Nixon s ground-breaking 1972 visit to Beijing. Through the day, both Mr. Trump and Mr. Kim were keen on casting the comprehensive meet in a positive light. The two whimsical leaders deserve full credit for this thaw in relations, given the decades of hostility and the quick diplomacy that pulled the Korean peninsula back from the brink of war. How did the situation changed?

It all began with the new South Korean President Moon Jae-in s expansive outreach to the North. Mr. Kim reciprocated by sending athletes to the Winter Olympics in South Korea in February. As the relationship between the Koreas improved rapidly, Mr. Kim invited the U.S. President for a meeting. Mr. Trump accepted at once, surprising America s allies and rivals. However, it was not certain whether the meet would take place. Mr. Trump once called it off after threats and counter-threats escalated. But the appetite for rapprochement was clearly greater on both sides, and the rendezvous was back on track. What were the outcomes of the meet?

In the brief joint statement after their meeting, Mr. Kim iterated his firm and unwavering commitment to complete denuclearisation of the Korean Peninsula, while Mr. Trump offered security guarantees to the North. Mr. Kim had earlier promised to denuclearise the peninsula in return for security assurances, while Mr. Trump had promised that the North would be welcomed into the international community as a respectable member and be allowed to prosper economically. The two leaders have put these demands and promises into a document that could guide future diplomatic engagement. Mr. Trump also announced that he would end the regular American war games with South Korea, a concession to the North. What is the future?

While the summit itself was a big success given the distance both countries covered in a relatively short span of time, it is too early to say whether Mr. Trump and Mr. Kim can pull off a Nixon-Mao type breakthrough. The joint statement provided few specifics on how denuclearization can take place or how North Korea s steps to dismantle its arsenal will be monitored. There are no deadlines mentioned. There is no reference to China, North Korea s only ally. There has been no word on whether the two will establish formal diplomatic ties. Besides, being unpredictable and impulsive, Mr. Trump and Mr. Kim must also stare down hardline elements in their respective administrations. This bold beginning must not be wasted. (Adapted from The Hindu)

10. Islands apart: on India-Maldives ties (Relevant for GS Prelims, GS Mains Paper II;

IOBR)






29



Recent moves by Abdulla Yameen, President of the Maldives, have put Malé on a collision course with New Delhi. India s demands from Maldives

Even the presidential election, which India has been calling for, is a point of contention. India criticised the government for its incarceration of former President Maumoon Abdul Gayoom and Chief Justice Abdulla Saeed, sentenced to 19 months in prison for an alleged plot to unseat Mr. Yameen. India called the trial a sham, saying the sentencing put a question mark on the credibility of the presidential election process. This tough talk may not be taken kindly to in Malé. Trend in India-Maldives relations

1. There has been a series of setbacks in India-Maldives ties, starting from March 2015 when Prime Minister Narendra Modi cancelled a visit in a show of disapproval of the treatment of Mohamed Nasheed, then in prison facing treason and terror charges. Since then, India has called out many actions of Mr. Yameen s government, including the conduct of polls, treatment of the judiciary and, in February, his declaration of a state of emergency. 2. On the last, it also rejected Mr. Yameen s offer to send an envoy to explain his decision. Bolstered by a newly strengthened relationship with China, Mr. Yameen showed no inclination to heed India s advice. 3. The strain is now evident in two areas where India-Maldives ties had been the strongest: strategic relations and people-to-people engagement. 4. The Maldives has conveyed to India that it will not extend beyond June 30 the lease of Indian helicopters or the visas of personnel manning them. This signals a marked downturn in defence cooperation between the two countries, which normally coordinate maritime and EEZ (Exclusive Economic Zone) patrols together. Meanwhile, hundreds of Indians offered employment in the Maldives at resorts, hospitals and colleges have been denied work visas for the past few months. Need to review ties

The Yameen government must reconsider these policies. India too must pause to consider why relations have soured so badly. Until a few years ago, the Maldives affirmed an India First policy. The fact that the Maldives is the only country in the neighbourhood that Mr. Modi hasn t visited is one reason, but there are many others. India s vocal protests on democratic rights in the Maldives have been at variance with the past policy of taking a more muted line in public while encouraging democracy in official conversations. Mr. Gayoom also ran a near-autocracy for three decades from 1978, and India s interventions always aimed at strengthening the government there, with any misgivings conveyed only through quiet diplomacy. India has been the first port of call in crisis for Maldivian leaders; when Mr. Nasheed was deposed in 2012, it was at the Indian embassy that he sought refuge. It s time to restore the bilateral trust.






30



(Adapted from the Hindu)

11. India calls UN report on Kashmir fallacious (Relevant for GS Prelims, GS Mains

Paper II; IOBR)

View of India

India rejected a report from the UN that called for an international investigation into the alleged incidents of human rights abuse by Indian forces in Kashmir. A statement from the Ministry of External Affairs said the first-ever UN report on human rights situation was fallacious. It is a selective compilation of largely unverified information. It is overtly prejudiced and

seeks to build a false narrative. The report violates India s sovereignty and integrity... it is disturbing that those behind this report have chosen to describe internationally designated and UN-proscribed terrorist entities as armed groups and terrorists as leaders. This undermines the UN-led consensus on zero tolerance to terrorism, the MEA said in a response to the report, which covers both the State of Jammu and Kashmir and the part of the State under Pakistani control. About the report

The 49-page report focused on the human rights situation in the State between January 2016 and April 2018 during which violence escalated. In view of the spiralling terrorism and counter-terror operations, the report urged India to ratify the International Convention for the Protection of all Persons from Enforced Disappearance, and the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment and its Optional Protocol. The UN Office of the High Commissioner for Human Rights said the report was drafted through remote-monitoring as neither Pakistan nor India was willing to grant access to the sources on both sides of the Line of Control. The U.N. corroborated information through sources on the ground. (Adapted from the Hindu)

12. Pak. Taliban head Mullah Radio killed in U.S.-led strike (Read only for

understanding; IRIO)

Mullah Fazlullah killed

Pakistani Taliban leader Mullah Fazlullah has been killed in a U.S.-Afghan air strike in Afghanistan, a killing likely to ease tension between the United States and Pakistan. Who was Mullah Fazlullah?

Fazlullah was Pakistan s most-wanted militant, notorious for attacks including a 2014 school massacre that killed 132 children and the 2012 shooting of Malala Yousafzai.






31



Fazlullah emerged as an Islamist leader in the Swat Valley, northwest of the Pakistani capital of Islamabad, more than a decade ago. He was known as Mullah Radio for his fiery sermons broadcast over a radio channel. The Pakistani Taliban have waged a decade-long insurgency seeking to establish a harsh interpretation of Islamic rule, but most of their fighters have now fled to Afghanistan. $5 million reward In March, the U.S. offered a $5 million reward for information on Fazlullah. (Adapted from The Hindu)

13. On Colombia's first presidential election: In the shadow of FARC (Relevant for GS

Prelims, GS Mains Paper II; IOBR)

Election outcome in Colombia

Colombia s first presidential election since the landmark 2016 peace deal with the FARC Marxist guerrillas has thrown up the youngest winner in its history. But the victory of the 41-year-old right-wing candidate, Iván Duque, raises questions for the future of the agreement negotiated by the Nobel Peace Prize-winning outgoing President, Juan Manuel Santos. Mr. Duque, a relative political novice, beat his rival, Gustavo Petro, an erstwhile insurgent, by a 12-percentage point margin. What are the possible implications?

Mr. Duque s victory is likely to help the conservatives further consolidate their gains in the Congress, where the centrists led by Mr. Santos remain weakened. Mr. Duque s decade-long work experience with the Inter-American Development Bank perhaps partly explains his programme of economic orthodoxy — to cut corporate taxes and create a conducive climate for investment in the oil sector. A protégé of the conservative former President Álvaro Uribe, Mr. Duque can count on backing from his mentor s Democratic Centre party. What are the concerns?

There is some concern, however, that the veteran politician could exert undue influence. This is especially so because Mr. Duque, like many on the political right, has been sceptical of the peace agreement with the rebels, and Mr. Uribe had actively opposed the referendum on the deal. The grant of amnesty to the extremists and codified guarantees of representation in the Congress, to ensure a smooth passage into the political mainstream, have proved the most contentious provisions. As President, Mr. Duque may be more disposed to adopting a moderate stance. The outcome in the run-off was not surprising given the steady marginalisation of centrist forces, leaving the field open to the extremes. In March, the contender from the Revolutionary Alternative Common Force(FARC), the rebel movement refashioned as a political party with a name that retains its former acronym, quit the presidential race. After violent attacks on its candidates, it had suspended its campaign for the Congressional






32



election. The FARC s withdrawal from the contest marked a setback for the central plank of the peace process — the rebels right to run for public office in return for the surrender of arms. It also illustrates the tenuous nature of the accord overall, as the judicial and other mechanisms to advance its objectives are still not in place. A return to civil peace after a protracted conflict, in which hundreds of thousands were killed and many more displaced, is a painstaking process that, above all, calls for firm moral and political conviction. The legacy Mr. Santos leaves behind is the courage he mustered to clinch the controversial peace accord with the perpetrators of the worst brutalities for half a century. Mr. Duque, who assumes office in August, will be judged in terms of the distance he can travel to make the Colombian dream an enduring reality. (Adapted from The Hindu)

14. U.S. policy of separating children from undocumented migrant parents is cruel

(Relevant for GS Mains Paper III; IOBR)

What has been the US Policy?

As part of its zero-tolerance approach to dealing with undocumented migrants, the Donald Trump administration in the U.S. has been separating parents and children within migrating families, leading to outrage over the burgeoning number of minors lodged in foster care. What has been the impact?

Reports suggest that between October 2017 and May 2018 at least 1,995 children were separated from their parents, with a significant majority of the instances between April 18 and May 31. In recent weeks, disturbing images and videos have emerged of screaming toddlers in the custody of Customs and Border Protection personnel, or in what appear to be chain-link cages in facilities holding older children, as well as one disturbing audio allegedly of wailing children at one such unit. What is the view of US legislators?

Democrats and Republicans alike have expressed deep concern about the ethics of using children, facing trauma from separation from their parents, to discourage further undocumented border crossings. What is the view of President Trump?

Mr. Trump, however, has refused to accept sole responsibility for the family separations. Instead, he took to Twitter to blame his Democratic opponents for not working with Republicans to pass new immigration legislation to mitigate the border crisis. How is the current policy legally justified?

Mr. Trump s critics are correct in that there is no single U.S. law requiring families to be separated. Rather, what the White House referred to as loopholes in legislation are two legal provisions: a law against improper entry by aliens at the border, and a decree known as the Flores settlement. The first is a federal law that makes it impossible to






33



summarily deport certain vulnerable categories of migrants, such as families, asylum-seekers and unaccompanied minors. To get around this the administrations of George W. Bush and Barack Obama adopted the policy of catch and release — whereby these migrants would be released from custody pending their deportation case adjudication. Family separation was unnecessary at that time, but under the Trump administration s zero-tolerance approach, all undocumented migrants are charged in criminal courts. Here the Flores settlement applies, because it limits to 20 days the length of time migrant children may be held in immigration detention. While their parents face charges, the children are transferred to a different location, often with devastating consequences for their families. This is unspeakable cruelty. (Adapted from The Hindu)

15. UN body s report on Kashmir rights (Relevant for GS Prelims, GS Mains Paper II;

IOBR)

Why India is upset over the UN body s report? What prompted this human rights

report?

The first ever report by the Office of the UN High Commissioner for Human Rights (OHCHR) on Jammu and Kashmir, including Pakistan-occupied Kashmir, published last week, has been in production since 2016. A new wave of violence had then hit the Kashmir Valley, when protests sparked by the killing of Hizbul Mujahideen militant Burhan Wani were met with force by security personnel; about 51 protesters and civilians were killed in the months that followed, while more than 9,000 were injured by pellets and bullets. Consequently, the OHCRC asked India and Pakistan to allow its teams access to the State, a request that was refused. Why is this report controversial to India?

Apart from being irked by the report s criticism of India s handling of the protests, alleged extra-judicial killings and hard tactics, the Ministry of External Affairs is also upset by the terms used to describe militants. For example, Hizbul Mujahideen, which is regarded as a terrorist organisation by India, was described in the report as an armed group . Wani, regarded as a terrorist by Indian security forces, was described as the leader of the organisation. India in its official statement said the report undermines the UN-led consensus on zero tolerance to terrorism . Finally, it makes specific recommendations aimed at India, including removing the Armed Forces (Special Powers) Act from areas and instituting inquiries into alleged human rights violations. What was the methodology used?

In the absence of direct interviews, the OHCHR used remote monitoring from local sources to write the report. Is there a political or diplomatic implication of the report that can hurt India in the

long run?

India has said that the report violates its sovereignty and territorial integrity as it has used terms such as Azad Jammu and Kashmir and Gilgit Baltistan to describe the part of






34



the State under Pakistani control. India does not consider Pakistan s control over a part of Kashmir as legitimate and describes the region as Pakistan occupied Kashmir. After decades of delay, Pakistan, May 27, 2018, integrated Gilgit-Baltistan region into its federal structure despite strong protest from India. The OHCHR s decision to use these terms in the report can be interpreted as a sign of recognition of these regions as being part of Pakistan. Is the report particularly focussed on India and spares Pakistan?

While the report s primary focus is the deteriorating human rights situation in Jammu and Kashmir, it also deals with the excesses of the Pakistani security forces in their interactions with the PoK population. Why did India react so strongly to the report?

India s response can perhaps be explained by the fact that the report refers to the final political settlement of the Kashmir issue to avoid continued human rights abuse by both parties — India and Pakistan. India maintains Kashmir is a bilateral issue that does not have space for a third party, including the UN. (Adapted from The Hindu)

16. Macedonia renamed as Republic of North Macedonia (Relevant for GS Prelims, GS

Mains Paper II; IOBR)

Skopje (Capital of Republic of North Macedonia) has resolved a festering dispute with Athens over the name of the Balkan nation that emerged following the disintegration of Yugoslavia. What will be implication?

The landmark agreement signed with Greece this month, to rechristen Macedonia as the Republic of North Macedonia, opens the doors for its admission, long vetoed by Greece, to the principal Western economic and security blocs. What was the dispute?

The two governments have locked horns on the issue for nearly 30 years, ever since the independent Slav state proclaimed itself the Republic of Macedonia in 1991. Greece refused to accept this, as one of its own provinces goes by that evocative name. More than 100 countries in the United Nations — including the United States, Russia and China — have recognised the country s official name. But Greece has so far insisted on referring to its northern neighbour as the Former Yugoslav Republic of Macedonia (FYROM), as per a UN-negotiated interim arrangement. What is the agreement?

According to the agreement signed this month, the Republic of North Macedonia will be the name used in Skopje s dealings with other countries too. Many attempts to break the






35



deadlock had failed earlier, including a Macedonian offer to change its name in exchange for handsome financial aid and investment. What were the Greek apprehensions?

It did not help that Greek apprehensions were heightened when the port city of Thessaloniki, the capital of Greek Macedonia, was depicted on the maps of the new republic. Matters also heated up with the erection of a grand statue closely resembling Alexander the Great in the central district of Skopje, as Greeks resist any signal that the Slav republic may be laying claim to their ancient civilisation. A more diplomatically ticklish issue was Greece s insistence on a constitutional amendment to clarify that Skopje had no territorial right over the Greek region. Macedonian Prime Minister Zoran Zaev held that such changes were in the realm of domestic law, and that in any case these can always be reversed by a future government. Among the concessions the Macedonian government has made in recent months is to change the name of the Alexander the Great airport to Skopje International. It has also renamed a motorway named after Alexander. How serious was the issue in Greece?

It has not been easy for Greek Prime Minister Alexis Tsipras either — he survived a vote of no confidence on the issue last week, and is still to secure parliamentary ratification without support from his nationalist coalition partner. His counterpart in Skopje similarly faces the awkward prospect of the President rejecting the deal, besides having to win a popular referendum. But none of these hurdles is insurmountable. The resolution of the dispute now clears the way for talks on the Republic of North Macedonia s membership of the European Union and the North Atlantic Treaty Organisation. (Adapted from The Hindu)

17. World s hungry population on the rise again, says U.N. report (Relevant for GS

Prelims, GS Mains Paper II; IOBR)






36



What does the report concludes?

According to the United Nations s Sustainable Development Goals (SDG) 2018 report, the number of hungry people in the world has risen for the first time in more than a decade, according to a United Nations report. There are now approximately 38 million more undernourished people in the world, rising from 777 million in 2015 to 815 million in 2016, the year for which the latest statistics are available. What are the causes?

Conflict, drought and disasters linked to climate change are among the key factors causing this reversal in progress, said the report. Violent conflicts also led to the forced displacement of a record high 68.5 million in 2017. According to the United Nations s Sustainable Development Goals (SDG) 2018 report, conflict is now one of the main drivers of food insecurity in 18 countries. Economic losses on account of climate change

Noting the increasing impact of extreme events related to a changing climate, the report said economic losses attributed to disasters were estimated at over $300 billion in 2017. This is among the highest losses in recent years, owing to three major hurricanes affecting the United States of America and several countries across the Caribbean. (Adapted from The Hindu)

18. UN s State of Food Security and Nutrition in the World report for 2017 (Relevant

for GS Prelims, GS Mains Paper II; IOBR)






37



The UN s State of Food Security and Nutrition in the World report for 2017 has important pointers to achieve nutrition policy reform. What are the findings at the global level?

At the global level, the five agencies that together produced the assessment found that the gains achieved on food security and better nutrition since the turn of the century may be at risk. Although absolute numbers of people facing hunger and poor nutrition have always been high, there was a reduction in the rate of undernourishment since the year 2000. That has slowed from 2013, registering a worrying increase in 2016. The estimate of 815 million people enduring chronic food deprivation in 2016, compared to 775 million in 2014, is depressing in itself, but more important is the finding that the deprivation is even greater among people who live in regions affected by conflict and the extreme effects of climate change. In a confounding finding, though, the report says that child under-nutrition rates continue to drop, although one in four children is still affected by stunting. What are the findings at India level?

India s efforts at improving access to food and good nutrition are led by the National Food Security Act. There are special nutritional schemes for women and children operated through the States. In spite of such interventions, 14.5% of the population suffers from undernourishment, going by the UN s assessment for 2014-16. At the national level, 53% of women are anaemic, Health Ministry data show. What is more, the Centre recently said it had received only 3,888 complaints on the public distribution system (PDS) over a five-year period. All this shows that the Centre and State governments are woefully short on the commitment to end undernourishment. Institutions such as the State Food Commissions have not made a big difference either. Distributing nutritious food as a public health measure is still not a political imperative, while ill-conceived policies are making it difficult for many to do this. The report on nutritional deficiency should serve as an opportunity to evaluate the role played by the PDS in bringing about dietary diversity for those relying on subsidised food. In a report issued two years ago on the role played by rations in shaping household and nutritional security, the NITI Aayog found that families below the poverty line consumed more cereals and less milk compared to the affluent. Complementing rice and wheat with more nutritious food items should be the goal. (Adapted from the Hindu)

19. Recent OPEC meet and aftermath: Analysis (Relevant for GS Prelims, GS Mains

Paper II; IOBR)






38



Decision taken at meet

The Organization of the Petroleum Exporting Countries (OPEC) agreed to increase its daily output to address the problem of rising crude oil prices. Saudi Arabia s Energy Minister Khalid al Falih announced that the cartel s output would be increased by about a million barrels a day beginning in July. Lack of commitment

The official statement released by the group, however, failed to mention any solid numbers regarding the planned increase in production. It simply stated that OPEC countries would strive to adjust production levels in order to conform to the terms of the production cut

deal reached in 2016. What is the impact?

Unsurprisingly, in the absence of any clear intent on the part of OPEC to guide prices lower, the price of the benchmark WTI crude increased by as much as 5% after announcement of a production increase. Situation after 2016 deal

OPEC members had in late 2016, it is worth noting, agreed to a historic deal to cut output by 1.2 million barrels a day in order to end a supply glut and raise the price of oil. Since then, the cartel has in fact managed to overshoot its production cut target following unexpected outages in countries such as Venezuela and Libya, contributing to the steep rise in oil prices. In May, for instance, OPEC overshot its production cut target by 624,000 barrels a day. The lack of any clear commitment from OPEC to raise production suggests that the threat of a supply shock still looms over the global economy. But, for now, the deal allows stakeholders in the energy market to save face. Impact on main OPEC members

The pressure on Saudi Arabia, the de facto leader of OPEC, to be seen as doing something to tackle rising oil prices was clear. U.S. President Donald Trump has been vocal in recent months about the need to bring down rising oil prices that threaten to put the global economy under stress. Other oil-importing economies, especially emerging markets such as India that have been affected by the rising cost of oil imports, have also been exerting pressure. The present deal could help the Saudis appease major oil consumers to some extent. Meanwhile, Iran, which has been opposed to raising OPEC output as it would lower prices, is set to suffer a marginal loss as it lacks spare capacity to ramp up production. This works in favour of its rival, Saudi Arabia, which can recover from the impact of lower prices by capturing market share. The deal, however, still allows Iran to save face by projecting the proposed output increase simply as a return to the original OPEC agreement framed in 2016. Whether all this politicking will bring a stable reduction in global oil prices remains to be seen. (Adapted from the Hindu)

20. India, Seychelles relations (Relevant for GS Prelims, GS Mains Paper II; IOBR)






39



Assumption island project

India and Seychelles will take mutually beneficial steps regarding stalled plans for a military base at the island of Assumption, Prime Minister Narendra Modi said after a bilateral meeting with the visiting Seychelles President Danny Faure. What is the obstacle in the project?

Assembly of Seychelles last week refused to ratify the naval base that India has been planning to build on Assumption to provide a foothold in the western Indian Ocean. It is not clear how both sides would take the project forward in the absence of a parliamentary ratification. Line of credit to Seychelles

Mr. Modi announced several initiatives for the strategically located country, including the grant of $100 million Line of Credit for the purchase of defence hardware from India for building its maritime capacity. The two countries have convergence of views on the geostrategic importance of the Indian Ocean region. Both sides would intensify cooperation to carry out hydrographical studies of the maritime region and have declared exchange of necessary oceanic maps between two sides. India also gifted a Dornier aircraft to Seychelles. This will reach on time to participate in the June 29 National Day of Seychelles, said Prime

Minister Modi. (Adapted from the Hindu)






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Geography

1. Why have monsoons been fierce so far? (Relevant for GS Prelims, GS Mains Paper I;

Geography)

What is the status?

In the fortnight since the start of the monsoon, India has recorded nearly 55 mm of rain, or 16% more than what s usual for this time of the year. The bulk of it has been over south and central India, with the northeastern States so far registering a 24% deficit. After an early onset and quick advance, the monsoon has stalled and will remain so for at least a week, say meteorologists. However, several parts of northeastern India are expected to receive substantial rain, according to the latest weather outlook from the India Meteorological Department (IMD). Because the southern branch of the monsoon has stalled, it is causing heavy rain in Goa, coastal Karnataka and Kerala. The latter has seen 44 cm, nearly 49% more than what it gets in the first fortnight of June. This has led to widespread havoc. Has lightning activity been high?

Lightning, according to the National Crime Records Bureau (NCRB), is the leading cause of accidental deaths in India attributable to the forces of nature. The NCRB s most updated report, from 2015, says that of the 10,510 accidental deaths attributable to natural causes, 25.1% were due to lightning, 18.2% due to heat/sun stroke and 10.9% due to exposure to cold. Therefore, in any given year lightning is a serious killer. This year, however, May — which is not a monsoon month — saw nearly 300 deaths due to lightning in Uttar Pradesh, Bihar, Jharkhand and West Bengal. Because of unusual convective activity, Andhra Pradesh in April recorded nearly 36,000 lightning strikes in a single day. Typically that is what the State suffers in an entire pre-monsoon month. Therefore, even pre-monsoon rain can contribute to massive cloudbuildups and trigger widespread lightning strikes. Despite all that lightning, no more than 10 deaths were reported. Thus, there is no one-to-one link between the strength of the monsoon in one year and lightning deaths. Given that 2,000-2,500 deaths occurring due to lightning annually is normal, (going by the NCRB figures that go back to 2005), and there is a delay in how

quickly lightning death records are made publicly available, it is yet early to understand if this year has seen an unusual spike. Can lightning forecasts be improved?

Lightning and thunderstorms are an extremely local phenomenon with impact spreading no more than a few kilometres. Also they tend to occur rather suddenly and are therefore beyond the range of the weather radars. It is possible for the meteorological department to warn of the likelihood of thunderstorms and lightning over a district or a city about a day in advance but street-level or area-wise accuracy remains a stretch. While the build-up of clouds is known to be a factor, much more improved weather modelling is required to give accurate warnings about an impending strike in, say, a small town or village. The best way around this is precaution. State- and district-level disaster management agencies routinely






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issue advisories asking people to refrain from using mobile phones or handling electrical equipment plugged to sockets. That lightning strikes disproportionately affect the poor is also a fact noted by experts. So poorly built houses, staying out in the open during thunderstorms, being in places that aren t properly electrically insulated, and the mere fact of working in open fields substantially increase the risk of death from lightning. What s in store?

The IMD said in May that India would get 97% of the 89 cm it gets during the monsoon months. Rainfall is expected to be normal in July at 101% of the historical average and 94% in August. However, this does not quite capture the extreme variability of the monsoon. Like most years, some parts of the country are going to see dangerous floods and some regions a crippling drought. Though the monsoon has stalled for a while, experts have said that because there is no threat from major climate factors — like an El Nino — there are no large-scale deficiencies expected. So far, the monsoon has advanced into parts of Odisha and the Gangetic West Bengal, parts of northwest Bay of Bengal, all of Arunachal Pradesh and most parts of Assam, Meghalaya and Sikkim. (Adapted from The Hindu)






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Economics

1. Present position of Air India (Relevant for GS Prelims, GS Mains Paper III;

Economics)

What is the problem with Air India?

The sale of government-owned airline, Air India, is in jeopardy due to a lack of buyer interest. Private airlines such as IndiGo and Jet Airways did evince some enthusiasm but have since opted out of the race. This seems to have pushed the Central government to extend the deadline for submitting a bid. The Centre had earlier approved the sale of a 76% stake in Air India. Why are there no buyers?

The airline s poor financial situation is what makes it largely unappealing. The airline had a debt burden of around Rs. 48,781 crore as of March 2017, which poses a huge financial risk to a buyer. To address this issue, the government has offered to transfer about a third of the debt to a special purpose entity. But a buyer will still have to assume responsibility for debt worth Rs. 33,392 crore after acquisition – still a significant burden for many. The total current and non-current liabilities of IndiGo, the market leader in terms of domestic market share, for instance, add up to only around Rs. 14,000 crore. Apart from the huge debt burden, Air India has also been losing money for over a decade, with accumulated losses of Rs. 46,805 crore. In 2016-17, the airline suffered a net loss of Rs. 5,765 crore. A major reason behind its huge losses is the cost of paying interest on its massive debt. Some analysts believe that Air India may not be worth anything to its buyers as they are unlikely to obtain any free cash flow after paying money to lenders. In fact, they may have to pay money from their own pockets if they assume personal liability for the debt. What lies ahead?

A buyer with hopes of turning around Air India may still emerge out of the blue and make a bid. Some believe that such a buyer could combine its own business operations with Air India s and reap the benefits of a synergy. Selling some of Air India s assets to pay back a portion of the debt and renegotiating loans are other options on the table. The buyer could also make use of Air India s accumulated losses to offset tax payments in the future. This will reduce the effective debt burden. If no buyer turns up, the government could be forced to either continue running Air India using taxpayer money or just shut it down and sell off its assets. (Adapted from The Hindu)






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2. Why are farmers not getting a fair price? (Relevant for GS Prelims, GS mains Paper

III; Economics)

Why the drop-in rates?

Garlic has been the latest casualty of the price crash in the vegetable market after poor returns of tomato and potato crops forced many farmers to abandon their produce owing to a bumper output in recent days. The miseries of financially distressed farmers seem far from over even as they continue to demand waiver of farm loans and remunerative prices for their produce through several platforms across the country. The problem of plenty has hit the farmers badly. While garlic farmers in Madhya Pradesh and Rajasthan, which produce 45% of the country s garlic, recently fetched as low as Rs.1 a kg in wholesale prices, the instances of tomato farmers dumping their harvest on the fields earlier this month — be it in Haryana, Tamil Nadu or Uttar Pradesh after prices nosedived — have only highlighted their woes. Tomato production during 2017-18, according to the first advance estimate, is likely to be 7.8% higher than that of the previous year. However, it is 20% higher than the average production of the past five years. Similarly, potato production is estimated to be 1.5% higher than that of the previous year. However, compared with the average production of the past five years, it is 8.7% higher. These figures indicate that farmers are producing more without good returns. Why are vegetable farmers not getting a fair price? Season after season, farmers face price uncertainties mainly owing to fluctuations in demand and supply caused by bumper or poor production, speculation and hoarding by traders. Are traders manipulating prices?

In Madhya Pradesh, after garlic prices dropped sharply, the government decided to include it in the Bhavantar Bhugtan Yojana (Price Deficit Payment Scheme) that was introduced in the Kharif 2017 season. Farmers, however, rue that with the conditions associated with the scheme, most of them are unable to gain any benefit. The scheme is aimed at providing price deficit payments to farmers if the market prices are below the minimum support price. Farmer leaders believe the implementation of this scheme in the first season has resulted in little benefit to farmers, with very little to prevent manipulation of prices by traders. The government claims to have disbursed ₹ ,9 crore in compensation, but a large section of farmers has been excluded from the scheme, says Jai Kisan Andolan national convener Avik Saha. Those left out bore the brunt of a larger price crash because of market manipulation. What is the way forward?

The fluctuation in vegetable prices has become a perennial problem and is usually associated with the economics of demand and supply. Farmers, mainly marginal and small landholders, depend on intermediaries to sell their produce. Being perishable, vegetables are more prone to price fluctuation, hence they require better infrastructure for storage and marketing. Contract farming is an alternative for farmers to reduce financial risks by providing an assured market for their produce at a pre-agreed price. The Centre last week approved the State/UT Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2018. The Act lays stress on protecting the interests of






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farmers, considering them as weaker of the two parties entering into a contract. The Act is aimed at ensuring the purchase of the entire pre-agreed quantity of one or more of produce, livestock or its product. Although varied forms of contract farming exist in some pockets, a formal system is not widespread. By and large, cultivation of commercial crops such as cotton, sugarcane, tobacco, tea, coffee, rubber and dairy has had some elements of informal contract farming. Experts believe that integration of vegetable and fruit growers with agro-processing units through contract farming could prove beneficial to producers as it takes care of price fluctuations and helps to mitigate production risk. Pratap Singh Birthal, professor at the National Institute of Agricultural Economics and Policy Research, says: Under the contract farming law, the agreements would help farmers get an assured price for the produce, which will act as a buffer against price volatility and market fluctuations... (Adapted from The Hindu)

3. Why is the MSCI mulling caps on emerging markets, including India? (Relevant for

GS prelims, GS mains Paper III; Economics)

Last week, MSCI Inc., a widely-tracked global index provider said it is considering placing some emerging markets including India on notice for limiting investor access. Here is an explainer on what it is all about: What is MSCI?

It is the world s biggest index compiler, with more than $10 trillion in assets benchmarked to its products, with emerging markets alone accounting for $2 trillion. Why are MSCI indices important?

The indices are closely tracked by global investors. Inclusion in MSCI Inc. s stock indices opens up investment interest from foreign investors in a particular country and brings a stamp of financial credibility. Why has MSCI put India on notice?

MSCI said it is placing emerging markets including India and Brazil on notice for limiting investor access. For instance, MSCI has cited the fact that international investors face a lengthy and burdensome mandatory registration process with the market regulator, the Securities and Exchange Board of India (SEBI). In February, the National Stock Exchange of India (NSE) barred foreign bourses from trading in Nifty derivatives. NSE and Singapore Exchange Ltd. are in a legal tussle over the issue. MSCI has expressed concerns over the dispute.






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It is expected that stock exchanges, which often have legal or natural monopolies, should not impose clauses in their provision of stock market data, MSCI said. The existence of these types of practices will lead to a negative assessment, it added. What next on the issue?

MSCI said India and Brazil, along with Turkey and South Korea, are potential future examples of markets whose weights could be capped in its indices. MSCI said it will now consult its clients and announce the results by December 31. What happens if MSCI caps India s weightage?

India currently has a weightage of 8.3% in the MSCI Emerging Markets Index. The weightage, which was 8.48% till last month, came down slightly following the partial inclusion of China A- shares on May 31. Since it is a widely tracked index, any changes in weightage would affect inflows from foreign investors. (Adapted from The Hindu)

4. ICICI Bank s growing troubles (Relevant for GS Prelims, GS Mains Paper III;

Economics)

What is the ICICI Bank controversy about?

In 2016, Arvind Gupta, an investor, wrote to the Prime Minister s Office, the then Reserve Bank of India Governor Raghuram Rajan, and others, seeking an inquiry into transactions between ICICI Bank, the Videocon group and NuPower Renewables, a company promoted by Ms. Kochhar s husband, Deepak Kochhar, in 2010. It was alleged that a company related to the Videocon group chairman, Venugopal Dhoot, invested ₹ crore in NuPower in and that proprietorship of the company was transferred to a trust owned by Mr. Kochhar for ₹9 lakh after the Videocon group received a loan of ₹ , crore from ICICI Bank in 2012. Mr. Gupta, who alleged conflict of interest, demanded a forensic audit of the relevant transactions. The controversy came to light last March when the media reported Mr. Gupta s allegations. What is ICICI Bank s response?

The board of ICICI Bank had reposed confidence in Ms. Kochhar after the issue came to light in March, denying any conflict of interest. Its chairman, M.K. Sharma, had said Ms. Kochhar had made all the necessary disclosures. ICICI Bank also said that the total loan extended by the lenders consortium to the Videocon group, which included Videocon Industries and 12 of its subsidiaries, was around ₹ , crore. The bank highlighted the fact that it was not the lead bank in the consortium. Further, the bank said the committee of creditors that sanctioned loans to Videocon was chaired by the then chairman of ICICI Bank, K.V. Kamath, and it included independent and






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working directors of the bank. It is important to note that Ms. Chanda Kochhar was not the Chairperson of this committee, the bank had said. What is the investigative agency s reaction?

The Central Bureau of Investigation has registered a preliminary enquiry against Deepak Kochhar, officials of the Videocon group and others, to determine if there was any wrongdoing. However, this inquiry did not name Chanda Kochhar. Where do things stand now?

Last week, the bank s board ordered a probe by an independent and credible person following fresh allegations from another whistleblower against Ms. Kochhar. The allegations include a potential violation of the bank s code of conduct and of quid pro quo in dealing with certain borrowers. The board s Audit Committee will appoint the head of the inquiry panel, outline its terms of reference and specify the period covered by the probe. (Adapted from The Hindu)

5. Bill Averting Ponzi schemes (Relevant for GS Prelims, GS Mains Paper III;

Economics)

A new bill seeks to shield investors from scams

Instances of people losing their hard-earned money to Ponzi schemes keep coming to light. The Banning of Unregulated Deposit Schemes Bill, 2018 was approved by the Union Cabinet in February to provide comprehensive legislation to deal with illicit deposit schemes in the country. What are the provisions?

The Bill imposes complete prohibition of unregulated deposit taking activity. It provides for deterrent punishment for promoting or operating an unregulated deposit taking scheme, stringent punishment for fraudulent default in repayment to depositors, designation of a competent authority by the State government to ensure repayment of deposits in the event of default by a deposit taking establishment, powers and functions of the competent authority including attachment of assets of a defaulting establishment, designation of courts to oversee repayment of depositors and to try offences under the Act, and listing of Regulated Deposit Schemes in the Bill with a clause enabling the Central government to expand or prune the list. The Bill contains a substantive banning clause which bans deposit takers from promoting, operating, issuing advertisements or accepting deposits in any Unregulated Deposit Scheme. What are the objectives behind bill?

A Cabinet statement notes that the principle is that the Bill would ban unregulated deposit taking activities altogether, by making them an offence ex-ante, rather than the existing legislative-cum-regulatory framework which only comes into effect ex-post with considerable time lags.






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The Bill creates three different types of offences, namely, running of Unregulated Deposit Schemes, fraudulent default in Regulated Deposit Schemes, and wrongful inducement in relation to Unregulated Deposit Schemes. It provides for severe punishment and heavy pecuniary fines to act as deterrent. It has adequate provisions for disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally. The Bill provides for attachment of properties/ assets by the competent authority, and subsequent realization of assets for repayment to depositors. Clear-cut time lines have been provided for attachment of property and restitution to depositors. The Bill enables creation of central online database, for collection and sharing of information on deposit taking activities in the country. Primarily, the Bill defines the deposit taker and deposit comprehensively.

The primary responsibility of implementing the provisions of the proposed legislation lies with the State governments. (Adapted from The Hindu)

6. Global trade war (Relevant for GS Prelims, GS Mains Paper III; Economics)

Europe decision to couter America

Nobody wants to lose a trade war. The European Commission announced it would impose tariffs as high as 25% on imports worth $3.3 billion from the U.S. beginning July. A whole range of American goods, from motorbikes and jeans to peanut butter and orange juice, will now face higher taxes when sold in the European Union zone. The Commission is also mulling import duties on more American goods if the trade war with the U.S. intensifies. China, Mexico and Canada

Europe is not alone in waging a battle against imports from the U.S.; China, Mexico and Canada have joined hands in response to President Donald Trump s decision to impose tariffs on steel and aluminium imports. What was done by US?

Last week, the U.S. imposed a 25% tax on steel and a 10% tax on aluminium imports from the EU, Mexico and Canada. The first salvo in this ongoing trade war, however, was fired by Mr. Trump in March this year, when he imposed tariffs on Chinese steel and aluminium to protect American producers. Workers in America s manufacturing sector have played a key role in Mr. Trump s electoral success, so his zealousness to be seen to be protecting their interests is unsurprising. However, consumers in America and the rest of the world are likely to suffer as their respective governments make it costlier for them to access foreign goods and services.






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Implications of trade war

Judging by their actions, it is now clear that America s major trading allies would not really want to lose this trade war against the U.S. The sad fact, however, is that at the end of the day nobody actually wins a destructive trade war. Tariffs that seek to disadvantage foreign producers in favour of domestic producers, whether they are imposed by the U.S. or any of its major trading partners such as Europe or China, only increase the burden of taxes. What this leads to eventually is slower global economic growth. The World Bank has warned that the effect of the increased use of tariffs to regulate international trade could be similar to the significant drop in global trade after the financial crisis a decade ago. Countries that are protesting America s metal tariffs in the name of free trade are also only encouraging further protectionism when they impose retaliatory tariffs. As former Reserve Bank of India Governor Raghuram Rajan aptly put it, the ongoing trade war is a lose-lose situation for the warring parties. The only winners will be special interest groups and consumers in countries that do not engage in the tit-for-tat tariff war, but their winnings will come at the cost of global growth. It is high time countries worldwide come together to promote the cause of free trade. (Adapted from The Hindu)

7. What is the Karnataka farm loan waiver plea all about? (Relevant for GS Prelims,

GS Mains Paper III; Economics)

What is it?

Farmers distress has become a major concern in Karnataka, which has seen four years of drought in the past five years that has resulted in profound implications on the quality of life of farmers and the State s economy. In the run-up to the Assembly elections, the Janata Dal (Secular) promised in its manifesto to write off farm loans from cooperative banks, regional rural banks (RRBs) and nationalised banks within 24 hours of the party coming to power. After all, between April 2013 and November 2017, at least 3,515 farmers reportedly ended their lives. After the fractured mandate in the elections, the JD(S) and the Congress formed a coalition government headed by H.D. Kumaraswamy. The Opposition and the single largest party, BJP, called for a State-wide bandh on May 28, which evoked a mixed response, demanding that Mr. Kumaraswamy immediately announce a farm-loan waiver. How did it come about?

Farmers have been demanding waiver of all loans owing to crop loss and the crash in prices for the past four-five years. The crop loans alone stand at Rs. 53,000 crore, the total outstanding borrowings of farmers is Rs. 1.14 lakh crore. While some representatives of farmers have demanded waiver of all loans (Rs 1.14 lakh crore), the government has made a commitment to waive crop loans, largely for the benefit of small and marginal farmers,






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who own less than two hectares and constitute 75% of farmer households, in phases. In the State budget for 2017-18, former Chief Minister Siddaramaiah waived crop loans up to Rs. 50,000 borrowed only from the government-run cooperative banks and not from the nationalised banks and the RRBs. Now, farmers have been demanding that the new Chief Minister honour his promise by writing off loans borrowed from all institutions. Why does it matter?

The farmers have always been the core vote base of the JD(S). Of the total 36 JD(S) MLAs, 31 were elected from the old Mysuru region, where farming is a major profession. Sugarcane and paddy growers in the Cauvery belt are in distress owing to the shortfall in rain and non-availability of water in canals. During an interaction with farmers last week, both Mr. Kumaraswamy and Deputy Chief Minister G. Parameshwara sought time to study the complex issues involved in loan waiver and to get more details of loans from different banks. Many people have taken farm loans and invested the amount in running fertiliser or pesticide business. Many have borrowed for buying vehicles and tractors and drilling borewells. Moreover, many people residing in the city have borrowed interest-free farm loans and deposited the sums in other financial institutions for higher interest. Many coffee-planters, having estates stretching over 500 acres, have borrowed crores of rupees from banks. Many farmers residing in tier-II cities have borrowed for marketing. Legislators, employees of cooperatives earning a salary of Rs. 3 lakh a year and some individuals paying income tax of Rs. 3 lakh a year have taken farm loans. The question is should the government waive these loans. What lies ahead?

Mr. Kumaraswamy now realises that the promise is easier said than done. Compulsions of coalition politics, besides fiscal discipline, have forced the Chief Minister to seek more time to take a decision, though the Congress is not inclined to oppose it. It needs to treat the issue very cautiously to ensure that the benefit reaches the eligible farmers. With the budget to be fixed at Rs. 2.10 lakh crore for 2018-19, the loan waiver, which comprises nearly one-fourth of the budget, will ruin the State s economic health. The Chief Minister argued that resources should also be made available for other welfare schemes and development projects. As the Centre is unlikely to grant funds for loan waiver, State officials have been instructed to cut down on unnecessary expenditure. (Adapted from the Hindu)

8. In Jharkhand, starvation and ration woes (Relevant to GS Prelims, GS Mains Paper

III; Economics)

Around half-a-dozen people have allegedly died of starvation in Jharkhand in the last six months. Most of them were reportedly denied rations from the Public Distribution System shops for failing to have Aadhaar-based biometric authentication. Two women — one in Giridih and the other in Chatra district — died of alleged starvation last week, prompting Chief Minister Raghuvar Das to order a probe. The government reports said the women were sick; family members claimed they died of hunger.






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What happened?

On June 2, Savitri Devi, 58, from Mangragarhi village in the Dumri block of Giridih district, allegedly died of hunger. Family members and villagers said she had nothing to eat at home. She was denied rations from PDS shops because her ration card could not be linked with Aadhaar. On June 4, Meena Musahar, 45, from the Prem Nagar area in the Itkhori block of Chatra district, allegedly died of starvation. Her son said his mother died of hunger; the government said it was awaiting the autopsy report to ascertain the exact cause of death. Recently, Lakhi Murmu, Santoshi Kumari, Ruplal Marandi, Premani Kunwar and Etwariya Devi, too, reportedly died of hunger in different districts. All these deaths took place after the State government cancelled 11.6 lakh ration cards, saying they were not linked to Aadhaar. Why didn t they have ration cards?

The ration cards of Savitri Devi and many others were cancelled because they did not have Aadhaar linkage. They were unable to procure food after the Aadhaar-enabled point of sales (PoS) machine could not authenticate their biometrics. Dumri Block Development Officer (in-charge) Rahul Dev confirmed that Savitri Devi did not have a ration card. Village head Ram Prasad Mahto said Savitri Devi was not getting foodgrains from PDS shops as her ration card was cancelled. Till January, of the 2.3 crore people in Jharkhand covered under the PDS, only 1.7 crore had Aadhaar linkage. Why the Aadhaar-PDS link?

Though the Supreme Court has said Aadhaar linkage is voluntary, at the village and panchayat levels in Jharkand, little appears to have changed. For a person who gets foodgrains through the PDS, it is mandatory for him or her to follow the Aadhaar-Based Biometric Authentication (ABBA) system that is the practice of using an electric point of sale (PoS) machine for each transaction. For implementing the ABBA system, it is necessary to have Aadhaar seeding, which is to get one s Aadhaar number linked to the ration card. What are the hurdles?

To get benefits under the PDS, biometric authorisation is required and this calls for technological necessities which villages lack: uninterrupted power supply, a functioning PoS machine, adequate mobile and Internet connectivity and ensuring that data repository servers are running smoothly. So, every time a person has to get rations from a PDS shop, he/she has to pray that all these variables work. What is the government doing?

The government says it has begun rechecking the details of those left out of the Aadhaar linkage, but officials admit the process is moving at a slow pace. The government has made Aadhaar seeding compulsory but many tribals, unaware of this requirement, are denied access to food. The government feels that by linking ration cards to Aadhaar, it will remove the corruption in the PDS system. The government has also






51



announced that it has achieved 100% Aadhaar seeding but experts said lakhs of people covered by the PDS are not linked with their Aadhaar numbers. What lies ahead?

The government has to take foolproof measures for seeding of Aadhaar numbers, say experts like Jean Dreze. Food, Public Distribution and Consumer Affairs Minister Saryu Rai says his Department has proposed to set up grain banks in blocks and panchayats to help those in need. (Adapted from the Hindu)

9. Insolvency and Bankruptcy code (Amendment) Ordinance 2018 (Relevant for GS

Prelims, GS Mains Paper III; Economics)

Last week, President Ram Nath Kovind gave his nod to promulgate the Insolvency and Bankruptcy code (Amendment) Ordinance 2018. Key provisions of the ordinance: Homebuyers as financial creditors

In a major change, homebuyers would now be treated as financial creditors or, in other words, on par with banks. The amendment enables homebuyers (either as an individual or group) to initiate insolvency proceedings against errant builders. Homebuyers shall have the right to be represented in the committee of creditors (CoC), which takes the key decision regarding revival of the company or its liquidation. Definition of a related party in relation to an individual

The amendment now defines related party in relation to an individual running the firm and they would be barred from bidding for the firm under the resolution process. Prior to the amendment, related party was defined only with reference to a company facing insolvency. Changes in voting share of committee of CoC

The amendment has changed the voting share required in CoC meetings. For extending the insolvency process beyond 180 days till 270 days and for appointment of the resolution professional (who oversees the process), now a voting share of 66% is sufficient, compared with earlier requirement of 75%. Unless a specific approval is required in the Code, all other decisions of the CoC can be taken with 51% voting share against the earlier norm of 75%. Withdrawal from the insolvency process is permitted with the approval of 90% of voting share of the CoC (the norms for which would be prescribed). If a financial creditor is a related party

If a financial creditor (banks and other financial institution) or his authorised representative is a related party to the company facing insolvency, it shall not have any participation or voting during a meeting of the CoC.






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However, exemption is provided in case the financial creditor has become a related party on account of conversion or substitution of debt to equity shares or instruments convertible into equity shares prior to the date of commencement of insolvency proceedings. Moratorium not to be available to the guarantors of a company

For a company under insolvency, a moratorium period is provided during which no parallel proceedings are allowed. Whether such moratorium is available to guarantors of the company was a subject of debate. Now the amendment has said that the moratorium is not available to persons who provided guarantee for the loans availed by the corporate debtor. Filing of application by the company

A company can file an insolvency application, provided it seeks shareholders approval and at least three-fourth of the stakeholders approve the proposal. Operational creditor to confirm dues only if available

Operational creditors (suppliers of the company) are required to furnish a certificate from the financial institution managing their accounts regarding pending dues from the company, only if it is available. Prior to the amendment, it was mandatory. Tenure of an insolvency resolution professional

Under the insolvency process, an interim resolution professional (IRP) is appointed first and then, a resolution professional. As per the amendment, the tenure of the IRP would continue till the appointment of the resolution professional (RP), compared with the earlier 30-day fixed tenure. Also, for the appointment of the RP, a written consent from the professional is required in a specified format. (Adapted from the Hindu)

10. Need for Bad banks (Relevant for GS Prelims, GS Mains Paper III; Economics)

How can a bad bank solve the NPA problem? What is a bad bank ?

The Central government has revived the idea of setting up an asset reconstruction or asset management company, a sort of bad bank first mooted by Chief Economic Adviser Arvind Subramanian in January 2017. Mr. Subramanian had envisaged a Public Sector Asset Rehabilitation Agency that would take on public sector banks chronic bad loans and focus on their resolution and the extraction of any residual value from the underlying asset. This would allow government-owned banks to focus on their core operations of providing credit for fresh investments and economic activity. Unlike a private asset reconstruction company, a government-owned bad bank would be more likely to purchase loans that have no salvage value from public sector banks. It would thus work as an indirect bailout of these banks by the government.






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How will it be capitalised?

The bad bank will require significant capital to purchase stressed loan accounts from public sector banks. The size of gross NPAs on the books of public sector banks is currently over ₹10 lakh crore. The chances of private participation are low unless investors are allowed a major say in the governance of the new entity. Private asset reconstruction companies have been operating in the country for a while now, but have met with little success in resolving stressed loans. The CEA had proposed a significant part of the bad bank funding to come from the Reserve Bank of India, which is likely to be a tricky proposition. That means the government, which is already committed to recapitalising state-run banks, will have to be the single largest contributor of capital even if private investors are roped in. How will it help the NPA problem?

Hiving off stressed loan accounts to a bad bank would free public-sector bank balance sheets from their deleterious impact and improve their financial position. As the quality of a bank s assets deteriorates, its capital position (assets minus liabilities) is weakened, increasing the chances of insolvency. Some analysts believe that many public-sector banks are effectively insolvent due to their poor asset quality. Consequently, banks have turned risk-averse and credit growth has taken a hit. If managed well, a bad bank can clean up bank balance sheets and get them to start lending again to businesses. But it will not address the more serious corporate governance issues plaguing public sector banks that led to the NPA problem in the first place. (Adapted from the Hindu)

11. For stronger employee representation: On the amendments to the Major Port

Authorities Bill (Relevant for GS Prelims, GS Mains Paper III; Economics)

Amendments approved by the Union Cabinet to the Major Port Authorities Bill, 2016 are meant to make employee representation stronger in a labour-heavy work environment. The amendments are based on the recommendations of the department-related Parliamentary Standing Committee. What are the amendments?

1. The changes include an increase in labour representatives to be appointed in the Port Authority Board, among the serving employees of the port concerned, from one to two. 2. The members representing the interests of the employees will hold office for three years and not for more than two consecutive terms. 3. The number of independent members in the Port Authority Board will be a minimum of two and a maximum of four. 4. Every person who was receiving any retirement benefit from the Board of Trustees under the Major Port Trusts Act, 1963 immediately before such date will continue to receive the same benefit from the Board.






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5. The Board of each major port will be entitled to create a specific master plan in respect of any development or infrastructure established, or proposed to be established, within the port limits and the land appurtenant thereto. Such a master plan will be independent of any local or State government regulations of any authority whatsoever. 6. After commencement of the Act, for private-public partnership projects, the concessionaire shall be free to fix the tariff based on market conditions. 7. The proposed law highlights that amounts received by or on behalf of the Board under its provisions will be credited to a general account or accounts of the Ports which the Board may from time to time open with any nationalised or scheduled bank, according to the guidelines of the Finance Ministry. 8. The presiding officer and members of the adjudicatory board have to be appointed by the Centre on the recommendations of the selection committee. 9. The government will have the power to remove the presiding officer or any member of the adjudicatory board from office in accordance with procedure. 10. A saving clause has been kept under repeal and saving so that the existing benefit enjoyed by Mumbai and Kolkata Ports in respect of municipal assessment of property under the Bombay Port Trust Act, 1879 and the Calcutta Port Act, 1890 can continue. (Adapted from the Hindu)

12. Evaluation of bailout scheme for sugarcane farmers (Relevant for GS prelims, GS

Mains Paper III; Economics)

What are the measures recently undertaken for sugar sector?

A little over a month after the Centre proposed a special cess under the GST to help alleviate distress among sugarcane farmers, the Cabinet Committee on Economic Affairs approved a Rs. 7,000- crore package for the sugar sector last week. This package, with a mix of assured minimum pricing and special incentives for increasing molasses and ethanol production to gainfully mop up the glut of sugar in the country, is independent of the cess proposal that was expected to raise Rs. 6,700 crore. What is the need of these measures?

To put this in perspective, sugar mills dues to farmers stand at Rs. 22,000 crore. Under the proposed bailout scheme, the government will procure sugar from mills at a fixed minimum price to help them clear dues to farmers, and also offer them other financial assistance. How effective these measures will be?






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Only about Rs. 1,175 crore, however, will be used towards procurement of refined sugar from mills to create a buffer stock of 30 lakh tonnes. This is a fraction of the 63.5 million tonnes output expected in the two sugar seasons from October 2017 to September 2019. With the record output, sugar prices have dropped from an average of Rs. 37 a kg in the previous season to Rs. 26 in the current season. The bailout plan promises to pay Rs. 29 a kg. Sugar mills say this is below their production cost of Rs. 35 a kg, though it may dissipate their immediate liquidity problems to an extent. Rating agency Crisil reckons that the fixed price for sugar at mill gates and the buffer stock will at best help mitigate about 40% of the outstanding arrears to sugarcane farmers. And as production will rise again in the coming season, so will the extent of arrears. The rest of the package will take time to materialise, with Rs. 4,440 crore of loans and Rs. 1,332 crore of interest subsidies for greenfield and brownfield distillery capacities. Over time, this could help to use excess sugar for the manufacture of alcohol or ethanol, but it will not be soon enough to address the present crisis. What is the conclusion?

All said and done, the Centre s sweetener for the sector does little to address structural problems and sticks to old-style pricing and stock-holding interventions instead of signalling a shift to market-driven cropping decisions. The political compulsions driving the bailout are obvious, given that the sugarcane crisis was a rallying cry in the by-election in Kairana in Uttar Pradesh, which the BJP lost. But that is no excuse for not thinking the package through. Perpetuating the complex web of state controls in a politically-sensitive sector is no solution. The best way to address the problem of excess supply in the long run is to ensure some linkage between the price paid for sugarcane and the end-products it is used for; and encouraging the feedback from market prices to inform farmers future cropping decisions. The current sops-driven solution could distort the agriculture sector further. (Adapted from The Hindu)

13. Why is external debt a cause for worry? (Relevant for GS Prelims, GS Mains Paper

III; Economics)

What is external debt?

External debt is the money that borrowers in a country owe to foreign lenders. India s external debt was $513.4 billion at the end of December 2017, an increase of 8.8% since March 2017. Most of it was owed by private businesses which borrowed at attractive rates from foreign lenders. To be precise, 78.8% of the total external debt ($404.5 billion) was owed by non-governmental entities like private companies. The size of external commercial borrowings and foreign currency convertible bonds, which represents Indian companies foreign borrowings, has risen from Rs. 99,490 crore at the end of December 2015 to Rs. 1,72,872






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crore at the end of December 2017. While external debt may be denominated in either the rupee or a foreign currency like the U.S. dollar, most of India s external debt is linked to the dollar. This means Indian borrowers will have to pay back their lenders by first converting their rupees into dollars. As of December 2017, about 48% of India s total external debt was denominated in dollars and 37.3% in rupees. What are the risks?

There are two major risks involved in foreign borrowings. One is that, like in the case of domestic borrowings, there could be unexpected changes in the interest rates charged on these loans. This can, for instance, cause widespread default when rates rise as borrowers may not be able to make higher interest payments, thus raising the risks of a systemic crisis. The raising of interest rates by the U.S. Federal Reserve has already caused borrowing rates to rise in various countries, including in India where bond yields have shot up sharply. The yield on the 10-year government bond, for instance, has risen to about 8% from around 6.5% at the end of June last year. Another major risk is unexpected changes in the exchange rates of currencies. An unexpected fall in the value of the rupee, for instance, can cause severe difficulties for Indian companies that need to pay back dollar-denominated loans as they will now have to shell out more rupees than they had previously estimated to buy the necessary dollars. Lenders generally take possible fluctuations in the value of currencies into account when determining their lending rates. But such forecasts are not always perfect. Unexpected changes in exchange rates could still impose surprise gains or losses on them. Various emerging market currencies have seen a sharp fall in value this year against the dollar. The rupee, in particular, has fallen about 7% since the beginning of the year. The fall in the value of the emerging market currencies is due to increasing demand for dollars from investors, who wish to sell their assets in the emerging markets and invest them in the U.S. where yields have been rising quite rapidly.

What happens next?

The U.S. central bank, which has already raised its benchmark interest rate twice this year, is expected to raise rates two more times in the rest of 2018. Further interest rate hikes could cause more outflow of capital from the emerging markets, thus causing unexpected changes in borrowing rates and the value of the rupee. Both government and non-government borrowers in India, who are exposed to foreign debt, could be in trouble in such a scenario. The foreign exchange reserves, held by the Reserve Bank of India (RBI), were around $425 billion as on March 2018. This is the firepower that the RBI can use to support the rupee and bail out borrowers who get into trouble. The RBI, which raised its benchmark interest rate for the first time in more than four years this month, may also decide to raise domestic interest rates further. While such a






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step could help to stem the capital outflow from the country and support the rupee, it could lead to further uncertainty about borrowing rates in the domestic economy. (Adapted from the Hindu)

14. RBI report warns that the worst on NPAs may be yet to come (Relevant for GS

Prelims, GS Mains Paper III; Economics)

Findings in Financial stability report by RBI

The worst is far from over for Indian banks. The financial stability report released by the Reserve Bank of India has warned that the gross non-performing assets (GNPAs) of scheduled commercial banks in the country could rise from 11.6% in March 2018 to 12.2% in March 2019, which would be the highest level of bad debt in almost two decades. In fact, the capital to risk-weighted assets ratio of the banking system as a whole is expected to drop from 13.5% in March 2018 to 12.8% in March 2019. The deteriorating health of banks is in contrast to the economy, which is on the path to recovery, clocking a healthy growth rate of 7.7% during the last quarter. Monetary policy tightening by the US

The RBI, however, has warned about the rising external risks that pose a significant threat to the economy and to the banks. The tightening of monetary policy by the United States Federal Reserve and increased borrowing by the U.S. government have already caused credit to flow out of emerging markets such as India. The increase in commodity prices is another risk on the horizon that could pose a significant threat to the rupee and the country s fiscal and current account deficits. All these factors could well combine to increase the risk of an economic slowdown and exert pressure on the entire banking system. Proneness of Public sector banks to financial frauds

A major highlight of the financial stability report is the central bank s finding that public sector banks (PSBs) are far more prone to fraud than their private sector counterparts. This is significant in light of the huge scam unearthed at a Punjab National Bank branch earlier this year. The RBI notes that more than 85% of frauds could be linked to PSBs, even though their share of overall credit is only about 65%. This should come as no surprise given the serious corporate governance issues faced by public sector banks, which to a large extent also contributed to the lax lending practices that are at the core of the NPA crisis. What should be done?

In his foreword to the report, RBI Deputy Governor Viral Acharya has noted that governance reforms at PSBs, if implemented, can help improve their financial performance and also reduce their operational risks. For now, the RBI expects the government s recapitalisation plan for banks and the implementation of the Insolvency and Bankruptcy Code to improve the capital position of banks. These reforms can definitely help. But unless






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the government can gather the courage to make drastic changes to aspects of operational autonomy and the ownership of PSBs, future crises will be hard to prevent. (Adapted from The Hindu)

15. Sinking rupee (Relevant for GS Prelims, GS Mains Paper III; Economics)

Weakening rupee

The rupee s troubles just do not seem to end. The currency weakened past 69 intraday against the U.S. dollar, an all-time low. The rupee, which has lost almost 8% in value since January 1, is the worst-performing currency in Asia this year. It is, however, not the only currency to be in the doldrums. What is the global trend?

Emerging market currencies as a group have witnessed a sharp correction in their value against the dollar this year. The MSCI Emerging Markets currency index, for instance, is down about 6% since the beginning of April. The dollar index, which gauges the value of the dollar against a host of major global currencies, is up about 7.5% since February.

What are the reasons?

1. The rise in international crude oil prices is one of the reasons behind the rupee s decline as importers have had to shell out more dollars to fund their purchases. India s current account deficit, which jumped to 1.9% of GDP in the fourth quarter of 2017-18 from just 0.6% a year earlier, is now expected to widen to 2.5% in FY 2019. This could spell even more trouble for the rupee as the demand for dollars could turn out to be overwhelming. 2. The rise in global trade tensions amidst the ongoing trade war could be another factor behind the rout in emerging market currencies, but its impact on the rupee remains unclear as of now. 3. But by far the most important reason behind the fall in the rupee and rise of dollar is increase in interest rates in America. Investors attracted by higher yields in the United States have been pulling their capital out of India at an increasing pace over the last few months. Foreign portfolio investors, in fact, took out Rs. 29,714 crore in May, almost a doubling of outflow compared to Rs. 15,561 crore in April. Most of the foreign fund outflow this year has come out of the bond market, which explains the steep fall in Indian bond prices. What is the forecast?

But the fact that the American central bank expects to raise interest rates further this year suggests that more pain could be in store. The government, as well as the Reserve Bank of India, which recently raised domestic interest rates in response to rising external economic risks, may need to think out of the box to avoid a crisis similar to the taper tantrum of 2013.






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(Adapted from the Hindu)

Environment

1. Life in plastic: on waste management framework (Relevant for GS Prelims, GS

mains Paper III; Environment & Biodiversity)

Waste management rules on paper

Both the Solid Waste Management Rules and the Plastic Waste Management Rules of 2016, which built on previous regulations, mostly remain on paper. State governments have simply not given them the necessary momentum, and the producers of plastic articles that are invariably used just for a few minutes have shown little concern about their negative environmental impact. Amount of Plastic waste into oceans

The Centre s somewhat liberal estimate shows over 60% of about 25,000 tonnes of plastic waste generated daily is collected. That essentially means a staggering 10,000 tonnes of trash is being released into the environment, a lot of it going into the sea. Also, not every piece of plastic collected by the system is scientifically processed. It is no surprise, therefore, that the Ganga-Brahmaputra-Meghna river system is on the UN map of 10 rivers worldwide that collectively carry the bulk of the plastic waste into the oceans. The effects are evident: they threaten marine life and the well-being of people, as microplastics are now found even in drinking water. Contribution of non-government bodies

In their response to the crisis, communities and environmentally minded individuals are ahead of governments and municipal authorities. They segregate waste, compost at home, conduct plastic free social events and help recover materials that would otherwise just be dumped in the suburbs and wetlands. But, valuable as they are, voluntary efforts cannot achieve what systemic reform can. What the centre should do?

It is the Centre s responsibility to ensure that the Environment (Protection) Act, the overarching law that enables anti-pollution rules to be issued, is implemented in letter and spirit. Ideally, regulation should help stop the manufacture of single-use plastic articles such as carry bags and cutlery and encourage the use of biodegradable materials. What are the challenges?

There is a challenge here, though. The provisions of the Plastic Waste Management Rules require manufacturers of compostable bags to get a certificate from the Central Pollution Control Board, but this has not stopped counterfeit products from entering the market.






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Local bodies mandated under rules to ensure segregation, collection and transfer of waste to registered recyclers have spectacularly failed to fulfil their responsibilities. The State Level Monitoring Committees provided for under the rules have not been made accountable. The waste management framework is dysfunctional, and Mr. Vardhan s assertions on beating plastic pollution alone will not inspire confidence. India and the world face a plastics crisis. Solving it will take more than slogans. (Adapted from The Hindu)

2. State of India's water crisis (Relevant for GS Prelims, GS Mains Paper III;

Environment)

State of water crisis

India s water crisis is clear and present, with implications for the health of the entire population. According to the Composite Water Management Index developed by Niti Aayog, 70% of the water resources are identified as polluted. This is based primarily on data supplied by States for calculating the index. If the water accessible to millions is contaminated, the problem is infinitely worse than that of availability. Reform levels of States

The system of ratings for States is based on their performance in augmenting water resources and watersheds, investing in infrastructure, providing rural and urban drinking water, and encouraging efficient agricultural use. It presumes that this hall of fame approach will foster competitive and cooperative federalism . What emerges from the early assessment is that States such as Gujarat, Madhya Pradesh, Andhra Pradesh, Karnataka, Maharashtra, Punjab and Telangana have initiated reforms for judicious water use, while populous ones such as Uttar Pradesh and Bihar have failed to respond to the challenge. Tamil Nadu, which has a middling score, does well on augmentation of water sources, but is abysmally poor in ensuring sustainable use for farming. The trends that the data reflect of high to extreme stress faced by 600 million people call for speedy reforms. What should be done?

Two areas that need urgent measures are augmentation of watersheds that can store more good water, for use in agriculture and to serve habitations, and strict pollution control enforcement. In this context, the Committee on Restructuring the Central Water Commission and the Central Ground Water Board, chaired by Mihir Shah, has called for a user-centric approach to water management, especially in agriculture. It advocates decentralisation of irrigation commands, offering higher financial flows to well-performing States through a National Irrigation Management Fund. Clearly, awarding an index rank should help advance such schemes, making States feel the need to be competitive. Yet, such approaches may not resolve seemingly intractable inter-State river disputes.






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As the Cauvery issue has demonstrated, State governments would rather seek judicial intervention than be accused of bartering away the rights to a precious resource under a shared, cooperative framework. Groundwater extraction patterns need to be better understood through robust data collection; less than 5% of about 12 million wells are now under study. Steady urbanisation calls for a new management paradigm, augmenting sources of clean drinking water supply and treatment technologies that will encourage reuse. Pollution can be curbed by levying suitable costs. These forward-looking changes would need revamped national and State institutions, and updated laws. A legal mandate will work better than just competition and cooperation; it would make governments accountable. (Adapted from the Hindu)

3. Country's first river interlinking project caught in U.P.-M.P. tussle (Relevant for GS

Prelims, GS Mains Paper III; Environment)

Land acquisition and water sharing issues impede Ken Betwa project

Disagreements over water-sharing and difficulty in acquiring non-forest land impede the Rs.18,000-crore Ken Betwa river interlink project. The scheme, which involves deforesting a portion of the Panna Tiger Reserve in Madhya Pradesh, was accorded clearance by the National Wildlife Board on the condition that the land lost would be made good by acquiring contiguous, revenue land. This is to ensure that wildlife corridors in the region aren t hit. The M.P. government has said that they are facing major difficulties over this, said a senior person in the Water Ministry involved with the project. Water sharing issues

Another hurdle is a dispute over how Uttar Pradesh and Madhya Pradesh — the two beneficiaries — will share water in the Rabi season. These major issues made it quite unlikely that the project will get under way this year. What is the importance of Ken-Betwa Project?

Conceived as a two-part project, this is the country's first river interlinking project. It is perceived as a model plan for similar interstate river transfer missions.






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What are the details of Ken-Betwa project?

The phase 1 involves building a 77 m-tall and a 2 km-wide dam, the Dhaudhan dam, and a 230 km canal to transfer extra water from the Ken river for irrigating 3.64 lakh hectares in the Bundelkhand region of Uttar Pradesh and Madhya Pradesh. Originally, this phase envisaged irrigating 6,35,661 ha (hectares) annually (3,69,881 ha in M.P. and 2,65,780 ha in U.P.). In addition, the project was to provide 49 million cubic metres (MCM) of water for en route drinking water supply. Disagreements over earlier water sharing agreements

While there s a 2005 agreement between the two States on how water would be shared, Madhya Pradesh said last year that these assumptions were no longer valid and the only way to meet increased water requirements would be to include certain local water management projects . In theory, this could mean a completely fresh environmental appraisal. The Central Water Commission is yet to officially take a call, though government sources say the Centre is agreeable to the change. However, new demands by Madhya Pradesh for more water during the Rabi season are yet to be negotiated. (Adapted from The Hindu)

4. Enforcing a plastic ban in Maharashtra (Relevant for GS Prelims, GS Mains Paper

III; Environment)

On Saturday, the Maharashtra government began enforcing a ban on plastic, a decision it announced in March. On World Environment Day, June 5, India was the host nation, with the theme for this year being Beat plastic pollution.






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What is the plan?

On March 23, the government issued a notification banning the manufacture, use, transport, distribution, wholesale and retail sale, storage and import of plastic bags with and without handle. The ban also covers disposable products, made from plastic and thermocol (polystyrene), such as single-use disposable dishes, cups, plates, glasses, fork, bowl, container, disposable dish/bowl used for packaging food in hotels, spoon, straw, non-woven polypropylene bags, cups/pouches to store liquid, packaging with plastic to wrap or store the products and packaging of food items and grain material. The ban is not applicable to PET bottles, irrespective of capacity. These bottles, however, should have predefined buyback price ranging from Rs. 1 to Rs. 2, depending on the size, printed on them. Plastic used for packaging of medicines, compostable plastic bags or material used for plant nurseries, handling of solid waste, plastic bags not less than 50 micron thickness used for packaging of milk (with the specific purpose printed on it), plastic manufactured for export in SEZs and plastic to wrap the material at the manufacturing stage are excluded from the ban. The ban is applicable to manufacturers and consumers as well as the chain in between, which includes shops, hawkers, vendors and offices. What is the penalty?

Urban and rural civic bodies, Collectors, forest officers, police authorities and Maharashtra Pollution Control Board officials have been empowered to implement the ban and take legal action. The penalty for violating the ban starts from Rs. 5,000 (first offence), Rs. 10,000 (second time) and Rs. 25,000 (third time) with three months in jail. In case one fails to pay the minimum penalty, the civic body can file a prosecution complaint before the court, which will decide the amount to be paid. Why was this necessary?

Environment experts have been blaming plastic for choking of nullahs in Mumbai and the flooding in parts of the city during monsoons. Yuva Sena president Aaditya Thackeray was one of the first to demand a complete ban on plastic, a demand which was accepted by Shiv Sena leader and Environment Minister Ramdas Kadam. Plastic bag manufacturers approached the Bombay High Court against the decision, but their appeal was turned down. The Federation of Retail Traders Welfare Association, too, has gone to court. A hearing was held on Friday, but the plea was rejected. The State has 2,500 units making plastic bags, employing 56,000 people. They owe nearly Rs. 11,000 crore to banks as of March 31. The Clothing Manufacturers Association of India has spoken out against the ban, saying the apparel trade employs 30 lakh people in the country and depends on polypropylene for packaging. What is the alternative?

The State is not directly providing alternatives to banned items and has relied on people for solutions. Urban local bodies, like the Brihanmumbai Municipal Corporation (BMC), have invited manufacturers of alternative products to showcase their wares at a three-day exhibition.






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What lies in store?

The BMC has trained 250 inspectors for levying penalties. Their list is available on its website, along with that of its 37 collection centres where people can dispose of plastic. While levying penalty, they will be registering the offender s Aadhaar number, PAN number or driver licence number. It has also started a dedicated helpline for door-to-door collection. As on June 21, the BMC has collected 145 tonnes of banned plastic from Mumbai. However, most of this was plastic segregated from regular waste and only a fraction is from the 24 dedicated bins for dumping plastic. This underlines the need for more awareness. (Adapted from the Hindu)

5. Tainted by uranium: On groundwater contamination (Relevant for GS Prelims, GS

Mains Paper III; Environment)

Higher uranium contamination in groundwater

Reports of widespread uranium contamination in groundwater across India demand an urgent response. A study, published in Environmental Science and Technology Letters, has found over 30 micrograms per litre (mcg/l) of the heavy metal in parts of northwestern, southern and southeastern India. Drinking such water can damage one s kidneys, and the World Health Organization prescribes 30 mcg/l as an upper limit. Unfortunately, the residents of the regions surveyed were using the contaminated wells as their main source of drinking water. These findings highlight a major gap in India s water-quality monitoring. Uranium contamination overlooked in India

As the Bureau of Indian Standards does not specify a norm for uranium level, water is not tested regularly for it. This is despite the fact that evidence of uranium contamination has accumulated from across India over the last decade. A 2015 Bangalore study, for example, found uranium levels of over 2000 mcg/l in the southern part of the city. Other studies found levels of over 500 mcg/l in Andhra Pradesh and Telangana. The Environmental Science paper adds new data to this body of evidence by sampling wells in Rajasthan and Gujarat. What are the health effects?

The health effects of drinking uranium-tainted water merit special attention. A few small animal and human studies have found that the heavy metal damages the kidneys. The studies indicate that this is a chemical effect, rather than a radiological one, even though uranium is radioactive. But the chronic effects of uranium consumption are still unknown. Could there be, for example, a link between the high rates of chronic kidney disease (CKD) in India and uranium exposure? Need for research

In a survey conducted between 2005 and 2010, an Indian registry found 8,385 CKD cases with no known cause. One cluster of mystery disease, located in Srikakulam district in






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Andhra Pradesh, has stumped epidemiologists for years. It is impossible to say if these clusters have anything to do with groundwater contamination, unless researchers look at it systematically. Another critical area of research is the mechanism by which uranium enters groundwater. The Environmental Science paper identified two types of terrains with heavy contamination. In Rajasthan and other northwestern regions, uranium occurs mostly in alluvial aquifers; while in southern regions such as Telangana, crystalline rocks such as granite seem to be the source. When groundwater is over-extracted from such soils, the researchers suggest, the uranium is exposed to air, triggering its release. These hypotheses must be explored, because they will help determine where to find safer water. This is what happened in West Bengal, where a decade of research revealed why the contaminant arsenic mainly occurred in shallow aquifers. Researchers found that a combination of geological and chemical triggers brought arsenic to the Ganga delta in the Holocene era, and then released it into the sediments from that period. Similar research across India s uranium hotspots can uncover who is at risk, and how to protect them. (Adapted from the Hindu)

6. Plastic waste management rules summary (Relevant for GS Prelims, GS Mains

Paper III; Environment)

As an environmentally friendly alternative to plastic does not exist yet, and plastic is too ubiquitous and useful, the country has to move towards a regime where plastic waste is treated and recycled rather than engage in rhetoric about banning the product. The Rules lay down the procedure to do that. Plastic waste management rules, 2016

The Plastic Waste Management Rules of 2016 are the sharpest prongs in India s legal arsenal against plastic. 1. The most significant aspect of the Rules is that they strengthen the concept of extended producers responsibility whereby plastics manufacturers and retail establishments that use plastic are legally bound to introduce a system of collecting back plastic waste. 2. The Rules direct that a plastic waste management fee be collected through pre-registration of the producers, importers of plastic carry bags/multilayered packaging and vendors selling the same, for establishing a waste management system. 3. Producers, importers and brand owners who introduce plastic carry bags, multilayered plastic sachets, pouches or packaging in the market within a period of six months from the date of publication of these Rules need to establish a system for collecting back the plastic waste generated due to their products.






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4. The Rules envisage promoting the use of plastic waste for road construction, or energy recovery, or waste to oil, etc., and think up ways of gainfully utilising waste and addressing waste disposal. 5. The Rules also mandate an increase in the thickness of carry bags and plastic sheets from 40 to 50 micron. This would likely increase the cost of plastic bags and restrict vendors from giving away bags for free, thereby reducing waste. 6. Local bodies and gram panchayats are responsible for implementing and coordinating a waste management system. Retailers or street vendors who sell or provide commodities in plastic carry bags, or multilayered packaging, or plastic sheets or covers made of plastic sheets which are not manufactured, labelled or marked in accordance with these Rules will be fined, the Rules say. 7. The 2016 Rules laid out that carry bags be explicitly priced but this was deleted via an amendment earlier this year. This amendment also provides for a centralised registration system. The Rules also lay down that any mechanism for registration should be automated and should take into account ease of doing business for producers, recyclers and manufacturers. 8. The centralised registration system will be evolved by the Central Pollution Control Board for the registration of the producer/importer/brand owner. (Adapted from the Hindu)

7. Is biodiversity treaty a hurdle to conservation research? (Relevant for GS Prelims,

GS Mains Paper III; Environment)

What is the allegation against CBD?

It s a case of a cure that kills : an international conservation treaty is hampering conservation research, claim scientists. In a communication published on June 28 in the journal Science , an international team of scientists — including professors at India s Kerala Agricultural University and Ashoka Trust for Research in Ecology and the Environment (ATREE) – say that the Convention on Biological Diversity (CBD), of which India is signatory too, is hindering biodiversity research and preventing international collaborations due to regulations that have risen due to its implementation. What is CBD?

The CBD is aimed at conserving biological diversity, sustainably using biological components and fair and equitable sharing of benefits (with local or indigenous communities) that may arise out of the utilisation of genetic resources. The latter was delineated in the Nagoya Protocol, which came into effect in 2014. But this has generated unintended consequences for research; due to national-level legislations instituted by






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countries under the CBD, obtaining field permits for access to specimens for non-commercial research has become increasingly difficult, write the authors. India is one of the 196 countries that has committed to the CBD and ratified it in February 1994. Need to model on Seed Treaty

They suggest that the International Treaty on Plant Genetic Resources for Food and Agriculture or the Seed Treaty , which ensures worldwide public accessibility of genetic resources of essential food and fodder, could be used as a model for exchange of biological materials for non-commercial research. Another solution may be to add an explicit treaty or annex in the CBD to promote and facilitate biodiversity research, conservation, and international collaboration, said co-author of the policy critique, Dr. Priyadarsanan Dharma Rajan (ATREE). What is the criticism?

More than 170 scientists from 35 countries are co-signatory to the document and Dr. Jeyaraney Kathirithamby, University of Oxford, U.K, who studies tiny insect parasites, is one among them. It is almost impossible to collect [specimens for research] in South America now, she

wrote in an email. We bring back material for analysis and have always had a policy for [specimen] vouchers to be placed here and also in the country it was collected. But now it is difficult to get permission. However, we should not see regulation as restriction, said a source in India s National Biodiversity Authority (which primarily implements provisions of access and benefit sharing of India s biological resources). Under government-approved international collaborative projects, material can be exchanged freely; there are also facilitative processes to send specimens for taxonomic identification to other countries, the source added. (Adapted from the Hindu)






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Science & Technology

1. Agni-5 successfully test-fired (Relevant for GS Prelims, GS Mains Paper III; Science

& Technology)

Successfully tested

Long-range ballistic missile Agni-5 was successfully test-fired off the Odisha coast on Sunday, proving its reliability. This is the sixth successful test of the missile and the second in its pre-induction configuration. About Agni-5

Agni-5 can carry nuclear warheads weighing 1.5 tonnes to a distance of over 5,000 km and is the longest missile in India s arsenal capable of reaching most parts of China. With a smaller payload the range can go up much higher. The missile features many new indigenously developed technologies, including the very high accuracy Ring Laser Gyro based Inertial Navigation System (RINS) and the most modern and accurate Micro Navigation System (MINS) which improves the accuracy of the missile. About Agni Series

Agni: The Agni missile is a family of surface-to-surface medium to intercontinental range ballistic missiles developed by India. Various versions of Agni missile are mentioned below: Name Type Range Agni-I MRBM 700-800 km (Operational) Agni-II MRBM 2,000–3,000 km (Operational) Agni-III IRBM 3,000–4,000 km (Operational) Agni-IV IRBM 3,500–5,000 km (About to be operational) Agni-V CBM 5,000–6,000 km (Under testing) (Adapted from The Hindu and Backgroud from PrepMate-Cengage Science &

Technology Book; Chapter 4, Page 72).

2. AI garage? — on kickstarting artificial intelligence (Relevant for GS Prelims, GS

Mains Paper III; Science & Technology)

NITI Aayog discussion paper on AI

The NITI Aayog has published an ambitious discussion paper on kickstarting the artificial intelligence (AI) ecosystem in India. AI is the use of computers to mimic human cognitive processes for decision-making. The paper talks of powering five sectors — agriculture, education, health care, smart cities/infrastructure and transport — with AI. It highlights the potential for India to become an AI garage , or solutions provider, for 40% of the world. What is required to become AI garage?





https://prepmate.in/product/science-and-technology/

https://prepmate.in/product/science-and-technology/


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To pull this off, India would have to develop AI tools for a range of applications: reading cancer pathology reports, rerouting traffic in smart cities, telling farmers where to store their produce, and picking students at high risk of dropping out from school, among them. It is a tall order, but several countries have similar ambitions. What is the global position?

The U.S., Japan and China have published their AI strategy documents and, importantly, put their money where their aspirations are. China, for example, plans to hand out a million dollars in subsidies to AI firms, as well as to run a five-year university programme for 500 teachers and 5,000 students. What is India s position?

The NITI Aayog does not talk about how India s ambitions will be funded, but proposes an institutional structure to get things going. This structure includes a network of basic and applied research institutions, and a CERN-like multinational laboratory that would focus on global AI challenges. These are lofty goals, but they beg the question: can India bring it to pass? In answer, the NITI Aayog offers a sombre note of caution. India hardly has any AI expertise today. The paper estimates that it has around 50 top-notch AI researchers, concentrated in elite institutions like the IITs. Further, only around 4% of Indian AI professionals are trained in emerging technologies such as deep learning. And while India does publish a lot, these publications aren t very impactful; India s H-index, a measure of how often its papers are cited, is behind 18 other countries. This is not encouraging, considering that returns on AI are not guaranteed. The technology has tripped up as often as it has delivered. Among successes, a recent study found that a Google neural network correctly identified cancerous skin lesions more often than expert dermatologists did. India, with its acute shortage of specialist doctors in rural areas, could benefit greatly from such a tool. On the other hand, studies have found that AI image-recognition technologies do badly at identifying some races, because the data used to train them over-represent other races. This highlights the importance of quality data in building smart AI tools; India lacks this in sectors such as agriculture and health. Where data exist, this is poorly annotated, making it unusable by AI systems. Right step in future

Despite these formidable challenges, the scope of NITI Aayog s paper must be lauded. The trick will be to follow it up with action, which will demand a strong buy-in from policymakers and substantial funds. The coming years will show if the country can manage this. (Adapted from The Hindu)






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3. Green ambitions — on renewable energy targets (Relevant for GS Prelims, GS


Union Power Minister statement

In a surprising statement this month, Union Power Minister R.K. Singh said India would overshoot its target of installing 175 gigawatts of capacity from renewable energy sources by 2022. India was on track, he said, to hit 225 GW of renewable capacity by then. This is a tall claim, considering India has missed several interim milestones since it announced its 175 GW target in 2015. The misses happened despite renewable capacity being augmented at a blistering pace, highlighting how ambitious the initial target was. Why India missed targets?

Technological and financial challenges remain: both wind and solar generation could be erratic, and India s creaky electricity grid must be modernised to distribute such power efficiently. Meanwhile, wind and solar tariffs have hit such low levels that suppliers are working with wafer-thin margins. This means small shocks can knock these sectors off their growth trajectories. The obstacles have capped capacity addition to 69 GW till date, with India missing its 2016 and 2017 milestones. To hit its 2022 target of 175 GW, 106 GW will have to be added in four years, more than twice the capacity added in the last four. What is the conflicting demand on import duty?

In the solar sector alone, which the government is prioritising, policy uncertainties loom large. Manufacturers of photovoltaic (PV) cells have demanded a 70% safeguard duty on Chinese PV imports, and the Directorate General of Trade Remedies will soon take a call on this. But any such duty will deal a body blow to solar-power suppliers, who rely heavily on Chinese hardware, threatening the growth of the sector. Challenge of roof top solar segment

There is also the problem of the rooftop-solar segment. Of the current goal of 100 GW from solar energy by 2022, 40 GW is to come from rooftop installations, and 60 GW from large solar parks. Despite being the fastest-growing renewable-energy segment so far — rooftop solar clocked a compound annual growth rate of 117% between 2013 and 2017 — India only hit 3% of its goal by the end of 2017, according to a Bloomberg New Energy Finance report. Why rooftop challenges are difficult to met?

The reason? Homeowners aren t warming up to the idea of installing photovoltaic panels on their terraces because the economics does not work out for them. Compared to industries and commercial establishments, a home typically needs less power and will not use everything it generates. So, homeowners need to be able to sell electricity back to the grid, which in turn needs a nationwide net-metering policy. As of today, only a few States have such policies, discouraging users elsewhere. Such challenges can be overcome with the right incentives, but they will take time to kick in. The good news is that even if India hits the 175 GW target, it stands to meet its greenhouse-gas






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emission goal under the Paris climate agreement. This in itself will be a worthy achievement. Overshooting this target will be a plus, but until the government tackles the policy challenges, it must hold off on implausible claims. (Adapted from the Hindu)

4. ISRO offers Lithium battery technology (Relevant for GS Prelims, GS Mains Paper

III; Science & Technology)

ISRO offering Lithium battery technology

The drive for indigenously made lithium ion batteries on a large scale has got a push with the Indian Space Research Organisation offering its production technology to Indian industry. An RFQ (request for quotation) issued on Tuesday invites multiple qualified companies or start-ups to use its power storage technology to produce a range of Li ion cells for many purposes, mainly EVs or electric vehicles. One-time fee for transfer

ISRO s rocket sciences node Vikram Sarabhai Space Centre will transfer its in-house technology non-exclusively to each qualified production agency for a one-time fee of Rs. 1






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crore, according to the document. The Li ion cell production initiative is part of the government s plan to achieve 100% EVs in the country by 2030. Li ion battery is much in demand for use in handy consumer electronics goods too. What is the present status?

Currently the batteries are imported mostly from China, South Korea and Taiwan. To drive the Indian EV dream of the coming decades, national think tank NITI Aayog has also earlier called for setting up local production. What is the objective?

An ISRO release said, VSSC is now offering to transfer this technology to competent Indian industries/start-ups on non-exclusive basis to establish Li ion cell production facilities in the country that can produce cells of varying size, capacity, energy density and power density catering to the entire spectrum of power storage requirements. (Adapted from The Hindu)

5. What is the lowdown on Video Assistant Referee? (Relevant for GS Prelims, GS


What is it?

The Video Assistant Referee (VAR) is the system of using video replays to help on-field football referees. After years of considering – and opposing – video technology, the FIFA, football s governing body, eventually came around. Trials began in 2016 when the International Football Association Board (IFAB), which defines the rules of the game, formally approved the use of the VAR. It has since been used in competitions around the world, including in Australia, Germany, Italy and the U.S. It was used in a FIFA tournament for the first time at last year s Confederations Cup. Russia 2018, is the first time the VAR is being deployed at a FIFA World Cup. How will it operate?

For the World Cup, a team of four video assistant referees — a chief VAR and three assistants — will be stationed at a central operation room in Moscow during matches. They will have access to footage from 33 broadcast cameras and closely analyse all decisions in real-time, communicating with the on-field referee through a radio system. The VAR is meant to come to the aid of the referee in four game-changing situations : goals (and any foul leading up to them), penalty decisions, direct red card incidents, and cases of mistaken identity. The VAR team communicates with the on-field referee only if it has spotted a clear and obvious (in FIFA s words) error. Alternatively, the referee may choose to ask for

a review himself. In the case of objective decisions — like an offside call or whether the ball has gone out of play — the referee will accept information from the VAR team. If a subjective call is to be made, like whether an action is a foul or not, the referee will watch the footage of the incident on a screen by the side of the field before arriving at a decision. Why does it matter?






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In practice, implementing the system has not been easy. Play has to be stopped when there is a review, and this slows the game down. A balance has to be struck between correcting apparent mistakes and ruining the tempo of a match: it is easier said than done. In an FA Cup tie between Tottenham Hotspur and Rochdale in London earlier this year, there were as many as 10 reviews, several of them taking around a minute, while players and fans awaited the outcome on each occasion. Tottenham defender Danny Rose later called the process ridiculous and complete nonsense. In the Grand Final of Australia s A-League, a technical glitch caused the VAR to fail mid-game and a goal that should have been ruled out for offside was allowed to stand. In the Confederations Cup final last year, an elbow in the face was deemed unworthy of a red card after a three-minute review. If we end up with debatable decisions even after review, goes the argument, why are we wasting time on the VAR? Then there are the purists, like former FIFA president and France star Michel Platini, who believe such technology disrupts the flow of the game and undermines a referee s authority. Football is a human game and the mistakes are human, he once said. We need to help solve the mistakes, but we must not lose the human feeling of our sport. What lies ahead?

The FIFA has left it to individual competitions to decide whether they want to implement the VAR. The Premier League in England has decided against it, and feels goal-line technology (in use in the competition since 2013 and at the World Cup since 2014) is all the innovation its referees need. For the World Cup, the FIFA has resolved to make the VAR experience better and keep fans — those watching on TV and at the stadium — informed about the review process. Some of the criticism is justified and the system still needs refining. The World Cup has, perhaps, come a little too early for the VAR. But it is here to stay. (Adapted from The Hindu)

6. Govt. to set up fifth national data centre (Relevant for GS Prelims, GS Mains Paper

III; Science & Technology)

Biggest Data Centre to come in Bhopal

The Centre will set up the country s biggest data centre in Bhopal with a capacity to host five lakh virtual servers, Electronics and IT Minister Ravi Shankar Prasad said on Monday. The data centre, which will take about two years to come up, will be set up by the National Informatics Centre (NIC), under the Ministry of Electronics and Information Technology (MeitY). This will be the fifth National Data Centre after the ones at Bhubaneswar, Delhi, Hyderabad and Pune. These National Data Centres host government websites, services and applications. Why centres are being set up?






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India s digital ecosystem has got a momentum of its own and this process is going to be irreversible. As far as data privacy is concerned, we have always said that data must be protected, and India should become a good centre of data analysis, the Minister said. Replying to a query on data mining by firms in the context of the general elections in 2019, Mr. Prasad said, Any attempt to influence India s elections in a covert or overt manner by abuse of data will not be tolerated. People can campaign on social networking sites, but misuse and abuse of data is not acceptable. Under BPO Promotion scheme

He added that the government planned to expand its BPO promotion scheme to one lakh seats from the current 48,000 seats. Under the initiative, which had an outlay of Rs493 crore, 91 BPOs had been set up in small towns and rural areas till now. 121 cr. Aadhaar issued

On Aadhaar, the numbers had jumped to more than 121 crore as on June 16, 2018. He further added that as many as 59.15 crore Indians had linked 87.79 crore bank accounts with Aadhaar. (Adapted from The Hindu)






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Social Issues

1. India is on track to curb cigarette use, but chewable tobacco is a health emergency

(Relevant for GS Prelims, GS Mains Paper I; Social Issues)

Fall in cigarette consumption

A report from the World Health Organisation on the occasion of World No Tobacco Day (May 31) suggests that India s efforts to cut the prevalence of cigarette smoking are paying off. Between 2000 and 2015, this fell from 19.4% to 11.5%. By 2025, the report projected, it could drop to 8.5%, putting India well in line to meeting its 2025 target under a WHO global plan to tackle non-communicable diseases. Chewable tobacco trends

While this is excellent news, it needs to be highlighted that smokeless tobacco is the bigger scourge in the country. The WHO report doesn t model usage trends in this segment because of the paucity of global data. Other data, however, suggest that India is lagging on this front. Even though there is a 2011 government ban on the sale of food items with tobacco or nicotine in them, the consumption of gutkha, khaini and zarda continues to be rampant. What is the level of prevalence in India?

The Global Adult Tobacco Survey in 2016, for example, found that 29.6% of Indian men and 12.8% of Indian women were users. Children are victims of this lethal addiction too. The WHO report noted that 7.9 million adolescents, between 13 and 15 years, used smokeless tobacco in the South-East Asian region. Given that 66% of the world s smokeless-tobacco users are in India, a sizeable chunk of this number would be Indian teenagers. Against this background, the drop in cigarette smoking rates gives India little cause to celebrate. Why chewable tobacco should also be banned?

Gutkha and other chewable tobacco items are equally, if not more, harmful compared to cigarettes. Surveys show that these products are sometimes mixed with carcinogenic compounds called nitrosamines. This is why India banned their sale under the 2011 Food Safety and Standards Regulations. Why do they continue to be consumed, then?

Experts blame their availability on loopholes in the law. The food safety rules target pre-mixed tobacco products, such as gutkha, which contains lime, sugar and other spices. This leaves unflavoured items, such as khaini or surthi, out of regulatory purview. Meanwhile, mislabelling of smokeless tobacco is common. Even when a product contains tobacco, it is passed off as being tobacco-free. Worse, one of the tactics of the tobacco industry is to use flavours such as cardamom and saffron to attract youngsters, triggering life-long addiction. The WHO report notes that as cigarette usage has fallen in high-income countries, the tobacco industry has targeted younger users to make up for the revenue shortfall. While this trend applies to smoking, there is evidence that children are also a target of the chewable tobacco industry. With its war against smoking seemingly on the right track,






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India must turn its focus to the smokeless tobacco segment. The challenge is bigger, but so will be the reward. (Adapted from The Hindu)

2. Farmers on strike (Relevant for GS Mains Paper I; Social Issues)

What is the present state of strike?

Since June 1, many farmers are on an unusual 10-day strike to draw the government s attention to distress in the fields. A federation of 130 farmer bodies has decided to stop supplies of vegetables and dairy produce to major cities and hold a dharna on 30 national highways, without blocking vehicular passage. Prices of vegetables and fruits are inching up in urban centres given the supply shock created by this Gaon Bandh ; in cities like Mumbai fishermen have joined the cause. What are the demands by farmers?

The farmers demands are not new — enhancement of the minimum support price regime for crops in line with the M.S. Swaminathan Commission s recommendations, higher prices for milk procurement and loan waivers to offset low or negative returns on investment. Leaving out vegetables, food prices rose by just 0.55% in the first four months of 2018 — almost a fourth of the average 2% rise recorded in the same months between 2014 and 2016. There is a supply glut, and with a good monsoon expected, a healthy output could put additional pressure on prices. But this stir, which ends with a Bharat Bandh call on June 10, is not about the immediate crisis faced by specific sections of farmers (such as the cash-strapped sugarcane-growers for whom a cess is being considered under the GST regime). It is a culmination of multiple attempts made over a year to red-flag the systemic malaise in agriculture. On June 6, 2017, some farmers were killed in police firing in Mandsaur, Madhya Pradesh, during an agitation for better crop prices. There have been agitations across the country since then, including in Tamil Nadu, Punjab, Haryana, Maharashtra (where thousands of farmers walked nearly 200 km to the State capital in March). The current stir also derives from lack of tangible action on assurances made earlier and imperceptible movement on the Centre s grand promises such as doubling farm incomes and raising MSPs. Impact on politics

That the general elections are just a year away adds a political sub-text to the protest. Rural distress has dented the BJP s electoral performance in recent months. Too much of the structural reform agenda to free agricultural markets from the grip of government rules and intermediaries remains pending. There has been dithering even on simple things like strengthening the food processing sector. Take one instance — 100% FDI was allowed in the food retail business in 2016, but little money has come in as retailers want permission to stock a few non-food items like soaps and shampoos for customers. The minister in






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charge had promised this over a year ago, but nothing happened. Blaming the agitators is easy; policy responses are where the heavy lifting is needed. (Adapted from The Hindu)

3. Sri Ram Sene man shot Gauri: SIT (Read only for understanding; Social Issues)

What is the stage of investifation?

Nine months after a gunman riding pillion on a motorcycle opened fire on journalist and activist Gauri Lankesh outside her house on September 5, 2017, the Special Investigation Team probing the case believe that they are nearing the finish line. Investigators are confident of proving that 26-year-old Parashuram Waghmore was the man who pulled the trigger and killed Lankesh. Who is Waghmore?






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Waghmore — a Sri Ram Sene activist from the Karnataka-Maharashtra border town of Sindagi, Vijayapura district — who was recently arrested had reportedly confessed to carrying out the hit. More evidence required

Such a confession, however, will not hold up in court. The police, aware of what was at stake have been scrambling to acquire a body of collaborative material evidence, which they now claim to have. This, despite the accused not using mobile phones as a safeguard against leaving a digital trail. What are the available evidences?

CCTV footage near Ms. Lankesh s house showed three construction workers and a journalism student, all hailing from Raichur, walking on the road, as the gunman and the motorcycle rider sped past them after the murder. The killers were seen turning back and looking at the four witnesses. Waghmore was identified as one of the men. At the time, they were wearing helmets, but while they were waiting for Ms. Lankesh in front of her house, the witnesses had seen the duo without their faces covered, sources said. Their statements, along with another shopkeeper who saw the men in the neighbourhood during a reconnaissance mission they had conducted earlier in the day, were critical in preparing sketches of the two men. It was based on their accounts that the SIT had released three sketches of two men, and one bears a close resemblance to Waghmore. What also strengthened the case is that the student and the shopkeeper have picked him out after an identification parade organised by the SIT, said a senior police official with the SIT. Investigators have also pieced together other circumstantial evidence: Waghmore and another prime accused Sujith Kumar alias Praveen had vacated a rented house they were staying in — at Seegehalli, West Bengaluru — just an hour after Gauri Lankesh was murdered. The landlord of the house Suresh has identified Waghmore and Praveen. (Adapted from The Hindu)

4. Unravelling the Gauri Lankesh murder case (Read only for understanding; Social

Issues)

What were the events before murder? On New Year s Day, 2012, the national flag of Pakistan was hoisted in front of the tahsildar s office in the sleepy town of Sindagi, where Hindu and Muslim families had been living in harmony for generations. The town, near the Karnataka-Maharashtra border, was on the brink of communal violence as members from the hardline Hindutva group Sri Ram Sene staged protests accusing Muslim residents of disrupting the peace. As many as six people were arrested for hoisting the flag: the very same men leading the protests. One of






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the Sri Ram Sene members arrested was a 20-year-old undergraduate, Parashuram Waghmore. Peace returned to Sindagi, and the incident was largely forgotten until a few weeks ago when policemen from the Special Investigation Team in Bengaluru arrived looking for the man they believed had shot journalist and activist Gauri Lankesh on September 5, 2017: Parashuram Waghmore. Now 26, he was running an Internet cafe in the town. Youth turned into hardliners

Locals blame the Sri Ram Sene and its leader Pramod Muthalik for misleading and spoiling their youth . For the SIT team, the arrest meant that the Gauri case would not suffer the same fate as the probe into the murder of scholar M. M. Kalburgi on August 30, 2015. The case is yet to be closed. The first lead

Investigators drew up a list of over 200 people, a majority of whom were from hardline Hindu right-wing groups operating in Karnataka, Maharashtra and Goa. Gauri s murder, apart from being linked to the Kalburgi case, also shared similarities with two hits carried out in Maharashtra, where those chargesheeted have been linked to the Sanatan Sanstha and the Hindu Janajagruthi Samiti. Narendra Dabholkar, a doctor and rationalist, was shot by two men on a bike on August 20, 2013, in Pune. Govind Pansare, an author and politician, was shot by two men on a bike on February 16, 2015 in Kolhapur. They were rationalists, opposing right wing views. Interception of calls

They intercepted a call by K. T. Naveen Kumar, 37, based out of the communally sensitive Chikkamagaluru district to a friend. Kumar — founder of Hindu Yuva Sene and allegedly a participant in programmes of the Hindu Janajagruti Samiti and the Sanatan Sanstha — said he had gone underground following the murder of Gauri. The SIT, however, chose not to pick him up immediately, but started monitoring his calls and trailing him between mid-November 2017 and February 2018. It was a fortuitous decision as they learned that another plot had been set in motion: a hit on the Mysuru-based rationalist K.S. Bhagavan. Naveen Kumar was trying to procure ammunition to target Prof. Bhagavan. His call

intercepts revealed the role of Praveen, who only used coin booths across Karnataka, said the officer. Could not arrest Praveen

The SIT wanted to wait till both men met and arrest Praveen as they inferred that he was higher-up in the chain of command than Naveen. But the Bhagavan plot seemed to be






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moving fast, precipitating the arrest of Naveen Kumar on February 19, 2018, the officer added. With Naveen in their custody, they laid a trap for Praveen. Praveen was expected to attend the wedding of a Hindu Janajagruti Samiti activist, Mohan Gowda, in Brahmavar on February 25. However, two days before the wedding, a Kannada news channel broke the story of Naveen s arrest and revealed the SIT s plan to arrest another accused at the wedding. Praveen s trail went cold. But for that report, the case would have been cracked three months ago, said the taciturn SIT chief B.K. Singh, unable to mask his frustration. We had pinned down Praveen s voice from several calls we intercepted. We put 126 coin

booths across Karnataka under surveillance, said an officer who was part of this operation. Working with the local police, the SIT caught a break in May 2018, when 37-year-old Praveen, born Sujeet Kumar, was picked up by the Upparpet police in Bengaluru in connection with an illegal arms case. He is accused of being the key recruiter of local activists in the Gauri case and the Bhagavan plot. The police seized Praveen s diary with phone numbers and code names alluding to others in the plot, sketches of routes to Gauri s house, and other bits of information. This led to the arrest of three more men in Davanagere: Amol Kale, 39, from Pune; Amit Degwekar, 39, from Goa; and Manohar Edave, 29, from Vijayapura district, Karnataka — all previously unknown to the police. Others on hit lists

We recovered a second diary from Amol Kale, which has two hit-lists with a total of 26 names from across the country, drawn up for their perceived anti-Hindu stands. Ten of the people in the list are from Karnataka. Gauri s name was one of them, as also Prof. Bhagavan, said a senior official, refusing to disclose more names. It was his diary and call record details that led the police to Waghmore. Kale was a tough nut to crack. He revealed nothing, until we told him that we had Waghmore. He started banging his head on the wall. It was telling, said an official who was part of the interrogation team. According to Waghmore, Kale gave him the gun and instructed him to kill Gauri. Weapon not recovered

The SIT is yet to recover the murder weapon — a 7.65 mm bore country-made pistol — reportedly used to kill Pansare, Kalburgi and Gauri. Ballistic analysis of the bullet cartridges at the three crime scenes has concluded they were fired from the same weapon. Its recovery will prove to be a big breakthrough in uncovering the larger plot behind the murders, said the police.






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Waghmore has told interrogators that Kale gave him the weapon hours before he killed Gauri and he returned it to another person less than 15 minutes after the hit. The case does not end here. Right wing associations

Those arrested so far have been associated with Hindu Yuva Sene, Sri Ram Sene and participated in events held by the Sanatan Sanstha and the Hindu Janajagruti Samiti. The police say they have no evidence to date to state that any of these organisations were involved. The accused claim to be members of an unnamed organisation formed to eliminate those harming Hindu dharma. It operates like a terror cell, where teams are given information on a need-to-know basis, a senior sleuth said. While Kale is a key player, there are others suspected to be his handlers, who are yet to be identified. Sources said the CBI and the Maharashtra police have uncovered his links to Veerendra Tawde and Sarang Akolkar, accused of the murder of Dabholkar. They are poaching people with extremist views with a bent towards violence from various

fringe groups, the senior sleuth said. Waghmore came on their radar after he was arrested for hoisting the Pakistan flag in 2012. (Adapted from The Hindu)






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Internal Security

1. Violence in the hills: on Shillong unrest (Relevant for GS Prelims, GS Mains Paper

III; Internal Security)

Protests in Shillong

The spark for the week-long incidents of violence in downtown Shillong was a lie spread through WhatsApp, the ubiquitous messaging platform that has increasingly become an unfiltered medium for hate and rumour-mongering. A scuffle between members of the Mazhabi Sikh community, long-time settlers in the Punjabi Lane area of the city, and a Khasi youth and his associates over a local matter was amicably settled between representatives of the communities. Fabricated story

But a fabricated story that the youth had succumbed to injuries sustained in the scuffle led to large numbers of Khasi protesters laying siege to Punjabi Lane, demanding that the Sikh residents move from the area. That the settlers have been in Shillong for more than a century and a half, having been originally brought there by the British colonials to work as manual scavengers, and have since integrated themselves within Shillong, has not insulated them from being described as outsiders. The administration did well to protect the dwellers of Punjabi Lane from physical harm, but mob violence persisted until curfew was imposed and the Army put on stand-by. Spokespersons of the Khasi Students Union, whose members were part of the agitation, continue to insist that the Punjabi Lane residents be moved from Shillong s commercial heart to its outskirts. Unreasonable demand

Picturesque Shillong is no longer just an idyllic hill station; it is a bustling city that has grown in an unplanned manner and requires reforms such as zoning regulation. But the agitators demand to shift the Sikh residents is unreasonable and must be resisted. In fact, the Meghalaya High Court had stayed an order by the District Commissioner to evict the residents from Punjabi Lane (also known as Sweepers Colony) in 1986. What is the underlying reason?

Tribal angst over economic issues leading to the scapegoating of non-tribal long-time residents reflects the continued failure to forge a more inclusive politics in Meghalaya. Today, there are enough provisions of affirmative action for the tribal people — 80% reservation for the Khasi, Jaintia, Garo and other tribes in jobs and professional studies. Yet, discontent persists over the lack of adequate jobs in the State, especially in urban areas. A Labour Bureau report on employment in 2015-16 found Meghalaya to have among the highest urban unemployment rates (13.4%). Discontent over lack of opportunities in the past had led to incidents such as the violent targeting of the Bengali community in 1979 and Nepalis in 1987, many of whom then fled the State. To prevent a repeat of those incidents, the government must stand by and protect the Sikh residents, and not give in to the nativist arguments of the protestors. And as calm is restored, Meghalaya s politicians and civil society leaders must forge a more inclusive vision of the State s demographics. (Adapted from The Hindu)






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Miscellaneous

1. New CEO for Rajiv Gandhi Foundation (Relevant for GS Prelims)

Social entrepreneur Vijay Mahajan was appointed as secretary and chief executive officer of the Rajiv Gandhi Foundation and director of the Rajiv Gandhi Institute of Contemporary Studies. Mr. Mahajan was involved in policy formulations under the Congress governments. He served on the Insurance Regulatory and Development Authority of India (2005-10); the Rangarajan Committee on Financial Inclusion 2007-08; the Raghuram Rajan Committee on Financial Sector Reforms 2008-09; and several working groups of the XIth and XIIth Five Year Plans. He was also the chair of the World Bank s Consultative Group to Assist the Poor (2011-13) He started out with PRADAN, a non-governmental organisation, which motivates young professionals to work at the grassroots. What is Rajiv foundation?

The foundation was launched in 1991, a month after the death of the former Prime Minister, and the Rajiv Gandhi Institute is an independent national policy thinktank promoted by the foundation. (Adapted from The Hindu)

2. Seven-year jail term for Abu Salem (Read only for understanding)






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Charge against Salem

A Delhi court sent gangster Abu Salem to jail for seven years in an extortion case of 2002. The court had on May 26 held him guilty of demanding Rs. 5 crore from Delhi businessman Ashok Gupta. According to the complaint lodged by Mr. Gupta at the Greater Kailash police station in South Delhi, he received two phone calls on April 2, 2002 from Abu Salem who asked him to call back on three numbers in Dubai for further instructions.






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Abu Salem also threatened the complainant that if he did not follow his instructions, he and his family would face dire consequences, the complaint said. How was evidence gathered?

On the same day, voice recorders were installed at the residence of Mr. Gupta and the telephone conversation between the complainant and Abu Salem were held and recorded. Abu Salem made several calls to the complainant and his family demanding Rs. 5 crore as ransom money, the prosecution charged. (Adapted from The Hindu)

3. Virat Kohli to get Umrigar Award (Relevant for GS Prelims)

Harmanpreet and Smriti also to be felicitated

India captain Virat Kohli will receive the Polly Umrigar Award for the best international cricketer (2016-17 and 2017-18 seasons) at the BCCI awards, to be held. Harmanpreet Kaur and Smriti Mandhana are set to be maiden recipients of the award for best international cricketer (women) for the 2016-17 and 2017-18 seasons respectively. BCCI awards

The BCCI Awards are a set of annual cricket awards given by the Board of Control for Cricket in India (BCCI). The awards recognise and honour the best Indian international and domestic cricketers of the past year. The awards were first given in 2006–07. The various awards are:

Polly Umrigar Award for international cricketer of the year CK Nayudu Award for lifetime achievement BCCI Lifetime Achievement Award For Women Madhavrao Scindia Award for most runs in Ranji Trophy Madhavrao Scindia Award for most wickets in Ranji Trophy Lala Amarnath Award for best all-rounder in Ranji Trophy Lala Amarnath Award for best all-rounder in limited-overs tournaments


4. India s rank marginally improves in peace index (Relevant for GS Prelims)

Bangladesh, U.S. and China slip; Pakistan improves rank

India s rank has marginally improved in global peacefulness , at a time when there is an overall decline of global peace owing to escalation of violence in West Asia and and North Africa. Pakistan too has improved marginally, according to the Global Peace Index (GPI), released by Australia-based Institute for Economics and Peace (IEP).






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About Institute for Economics and Peace (IEP)

The IEP, world s leading think tank that develops metrics to analyse peace and quantify its economic value, released the 12th edition of the GPI, or measure of global peacefulness. India s performance

India s GPI rank was 137 out of 163 countries in 2017, when the year 2016 was assessed. In 2018, when the year 2017 is assessed, India s rank moved up to 136. This is in line with the performance of some of the South Asian countries. Nepal moved up from 93 to 84, while Sri Lanka moved up too, from position 80 to 67. Pakistan moved from 152 to 151. South Asia experienced the largest regional improvement in peacefulness, the report

noted. Overall performance of nations

However, the best performer of South Asia, Bhutan, has slipped from 13 to 19, while Bangladesh peace index deteriorated sharply. Bangladesh moved from 84 to 93. Peace continues to record a gradual, sustained fall across the world, the report noted. The results of the 2018 GPI find that the global level of peace has deteriorated by 0.27%

last year, marking the fourth successive year of deteriorations, the IEP report said. Syria remained the least peaceful country in the world, a position that it had held for the past five years. Iceland continues to remain the most peaceful country in the world, a position it has held since 2008. (Adapted from The Hindu)

5. Rafael Nadal s 11th French Open title (Relevant for GS Prelims)

Master of clay court

There is a tendency among tennis fans to take Rafael Nadal s clay court dominance for granted. Ever since he won his first French Open in 2005, the Spaniard has single-handedly drained out almost all the suspense that Paris may have otherwise offered. He held aloft the Roland Garros trophy for the 11th time in his career. The 32-year-old, ranked No. 1 in the world, was the overwhelming favourite ahead of the tournament and during the course of the two weeks there wasn t an inkling of any change as Nadal lost just one set in the capture of his 17th Major overall. Among highest number of titles

The victory pulled him level with Margaret Court for the most number of titles at a single Grand Slam tournament and made him only the second active men s player after Roger Federer.






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6. Dhanush artillery gun clears final trials (Relevant for GS Prelims)

Artillery gun Dhanush ready for induction

The indigenously upgraded artillery gun Dhanush has successfully completed final user trials and is ready for induction into the Army. Dhanush is an upgraded version of the Swedish Bofors gun procured by India in the mid-1980s. Details about trials

The first phase of trials were conducted between July and September 2016 at the Pokhran and Babina ranges and the second phase was conducted between October and December 2016 at the Siachen base camp with three guns. A total of 1,520 rounds have been fired in all the three phases. Requirement of 114 Dhanush

The next step was completion of general staff (GS) evaluation after which Bulk Production Clearance (BPC) will be accorded. The OFB already has an indent from the Army for 114 guns and will start supplying the guns on receipt of the BPC. The OFB has already supplied six guns for battery firing during the user trials. Another 12 guns will be issued within a year on receipt of the BPC, he stated. The entire order of 114 guns is to be delivered within four years. As of now, the gun has over 80% indigenous content. The imported systems include the power pack, parts of the electronic suite, and some seals and bearings. (Adapted from The Hindu)

7. Who is Dhivya Suryadevara? (Relevant for GS Prelims)

Appointed the first woman Chief Financial Officer of the 110-year-old General Motors, Dhivya Suryadevara made history on June 13. The Chennai-born, Harvard Business School (HBS) graduate is vice-president of corporate finance at GM, America s No. 1 automobile company. Joining the company 14 years ago, Ms. Suryadevara, 39, moved in the fast lane and top gear, steering many critical turns for the behemoth. Why was she picked?

Her appointment makes GM one of only two Fortune 500 companies that have both a female CEO and CFO. Hershey is the other company with the same distinction. GM CEO Mary Barra said: Dhivya s experience and leadership in several key roles throughout our financial operations position her well to build on the strong business results we ve delivered over the last several years. How has the journey been?

Ms. Suryadevara has not given any interview since her appointment as CFO, but she has shared the story of her journey from Chennai to Harvard and then the rise through the cut-






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throat, male-dominated world of American corporate hierarchy. She lost her father at a young age, and it was her mother s responsibility to raise her and two sisters. …which is difficult to do anywhere, let alone in India… Her high expectations made us want to do better, and we learned that nothing comes easy. You have to really work hard to get what you want, Ms. Suryadevara told Real Simple magazine. She received a bachelor s and master s degree in commerce at the University of Madras before moving to Harvard at the age of 22. That was my first time. It was overwhelming. I was very far from home, and there was definitely a culture shock. At that time, HBS took people with a certain amount of work experience, and I had worked through undergrad but had come straight out of college, she said in the same interview. Financial woes also followed her to Harvard. I didn t have much money when I got here. My friends would take school trips, but that wasn t an option for me. I was living on debt the whole time. Everything was funded with student loans that I had to pay back. In those circumstances, you re under a different amount of pressure to find a job, she said. She worked for UBS for more than a year, before moving to GM at 25. What happens at GM?

She has her task cut out to help the CEO in GM s existentialist fight to outlive the contemporary era of technological disruption, which is different from the automobile revolution a century earlier. GM s acquisition of Cruise Automation, its investment of $500 million in the ride-hailing company Lyft, and taking in $2.25 billion investment from Japan s SoftBank for GM s autonomous vehicles division in recent months are all part of that. Ms. Suryadevara has been instrumental in all these moves. As VP, finance, and treasurer, Ms. Suryadevara controlled a large part of the company s finances since 2015. She has also been managing the company s $85 billion pension operations. She told Crain s Detroit Business last year. There s certainly uncertainty on how [autonomous vehicles, electrification and ride-sharing] will play out, but we think it s going great. Automakers are going to be disrupted; we don t want to be the one that s disrupted. We want to be the disrupter, but with a strong balance sheet, she said. Mother of a 12-year-old girl, she has been living between New York and Detroit for several years now. She uses the frequent travel time to clear her emails, and keeps the weekends for the family. She wants to keep her work meetings short, but is also a self-admitted micro-manager of things. She knows she does not have the time to cook and is okay with that. She had not specifically aspired for anything, she told Real Simple. What I did know is that I liked anything challenging and complicated, she said. Now, she has the job. (Adapted from the Hindu)

8. Pragg is world s second youngest GM (Relevant for GS Prelims)






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India s R. Praggnanandhaa ( Pragg in chess circles) called became the World s second youngest chess Grandmaster, at the age of 12 years, 10 months and 13 days, after reaching the final round of the Gredine Open. Ukraine s Sergey Karjakin remains the youngest-ever GM (12 years and seven months). (Adapted from the Hindu)





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