General Studies Paper-3

Context: The Ministry of New and Renewable Energy (MNRE) has announced to support efforts to test the viability of green hydrogen as a fuel for cars and heavy vehicles.

Scheme Guidelines for Pilot Project

• The scheme will support development of technologies for use of Green Hydrogen as a fuel in Buses, Trucks and 4-wheelers, based on fuel cell/internal combustion engine-based propulsion technology.
• The other thrust area for the scheme is to support development of infrastructure such as hydrogen refueling stations.
• The scheme will also seek to support any other innovative use of hydrogen for reducing carbon emissions in the transport sector, such as blending of methanol/ethanol, based on green hydrogen and other synthetic fuels derived from green hydrogen in automobile fuels.

What is hydrogen

• Hydrogen is the chemical element with the symbol Hand atomic number 1. 
• Hydrogen is the lightest element and the most abundant chemical substance in the universe, constituting roughly 75% of all normal matter.
• It is colorless, odorless, tasteless, non-toxic, and highly combustible gas.

Extraction of Hydrogen

• Hydrogen exists in combination with other elements. 
• Hence, for using it as a source of energy, it has to be extracted from naturally occurring compounds like water (which is a combination of two hydrogen atoms and one oxygen atom).
• Green hydrogen refers to hydrogen that is produced using renewable energy sources, such as wind, solar, or hydropower, through a process called electrolysis.
• Electrolysis involves splitting water (H2O) into hydrogen (H2) and oxygen (O2) using an electric current.
• When this electricity comes from renewable sources, the hydrogen produced is considered “green” because the overall process has a minimal environmental impact.
• Grey Hydrogen: It involves extracting hydrogen from natural gas through a process called steam methane reforming (SMR). 
  • This process releases carbon dioxide (CO2)as a byproduct, contributing to greenhouse gas emissions.
• Blue Hydrogen: It involves capturing and storing the CO2 emissions generated during the production of hydrogen from natural gas.

Significance of Green Hydrogen

• Zero Emissions: Unlike conventional hydrogen production methods that rely on fossil fuels, green hydrogen production emits no greenhouse gases or pollutants, making it a zero-emission energy carrier.
• Energy Storage: Green hydrogen can serve as a means of storing excess renewable energy generated during periods of low demand for later use, helping to balance the grid and enhance energy security.
• Versatile Applications: Hydrogen can be used as a fuel in various sectors including transportation, industry, and heating.
• Economic Opportunities: The transition to green hydrogen presents significant economic opportunities, including job creation, investment in new infrastructure, and the growth of related industries such as electrolyzer manufacturing and hydrogen fuel cell technology.
• Climate Mitigation: By replacing fossil fuels with green hydrogen, countries can reduce their carbon emissions and contribute to global efforts to mitigate climate change.

Challenges

• Risks associated with the transportation:Hydrogen in gaseous form is highly inflammable and difficult to transport, thereby making safety a primary concern.
• Higher Cost:Green hydrogen production is currently more expensive than conventional methods, primarily due to the high cost of renewable energy sources and electrolysis technology.
• Lack of fuel station infrastructure:India will need to compete with around 500 operational hydrogen stations in the world today which are mostly in Europe, followed by Japan and South Korea.

Way Ahead

• Increasing renewable energy use across all economic spheres is central to India’s Energy Transition.
• Hydrogen offers the possibility to decarbonize applications, end uses, and sectors that have been traditionally difficult to tackle with other clean energy solutions.
• Hydrogen is expected to be used widely in the transportation sector in the coming years, and as a large and growing market for both vehicles and energy.
• India stands to gain significantly from the large-scale adoption of green hydrogen as vehicular fuel.

General Studies Paper-3

Context: In the wake of evolving consumer preferences, Hydroponic Farming has emerged as, at the forefront of an agricultural transformation.

Hydroponic Farming

• The Hydroponic System is a system of growing crops without soil, often called soilless farming. In this system, the plant roots grow in a liquid nutrient solution or inside the moist inert materials like Rockwool and Vermiculite.
• The liquid nutrient solution is a mixture of essential plant nutrients in the water.
• The plant roots are suspended either in the static liquid solution or in a continuously flowing nutrient mixture.

Suitable Regions for Hydroponic Farming

• Areas with Limited Water Supply: Hydroponics drastically reduces water usage, making it ideal for drought-prone areas.
• Rocky Regions:In places where the terrain is unsuitable for soil-based agriculture, hydroponics offers a practical alternative.
• Low Soil Fertility Areas:Hydroponics bypasses the need for fertile soil, allowing cultivation in regions with poor soil quality.
• Demand-Driven Areas:Regions with a high demand for fresh products are perfect for hydroponic farms, catering to health-conscious consumers in urban and semi-urban locales.

The Edge with Hydroponic Farming 

• Higher Yields:The efficiency and controlled environment of hydroponic systems result in substantially higher crop yields.
• Resource Efficiency:The recycling of water and nutrients significantly cuts down on input costs and environmental impact.
• Labour and Maintenance Savings:The absence of weeding and traditional cultivation reduces labor requirements and costs.
• Pest and Disease Reduction:By eliminating soil, hydroponics reduces the risk of soil-borne diseases and pests.

General Studies Paper -3

Context: The President of India, launched India’s first home-grown gene therapy which is CAR-T cell therapy (NexCAR19) for cancer at IIT Bombay.

About

• NexCAR19 is the indigenously developed therapy for B-cell cancers (types of cancers that form in the immune system’s cells) such as leukemia and lymphoma.
• It has been developed collaboratively by Immuno ACT,a company incubated at the Indian Institute of Technology Bombay (IITB), and Tata Memorial Hospital.

CAR-T Cell Therapy

• T cells are the cells of the immune system that fights infections and can kill cancer.
• But, sometimes cancers can evade the T cells and there comes the use of “CAR-T cell therapy” or Chimeric antigen receptor (CAR) T-cell therapy.
• In this, patients own T cells are taken and modified in the lab so that they can recognise and react against the cancer.
• These modified T cells, also called CAR-T cells are then reinfused back into the patients. Now, these cells can better recognise cancer and are able to attack it.

What are B and T-Cells?

• B-cells and T-cells are a specific type of white blood cell called lymphocytes.
• Types of T cells:
  • Cytotoxic T-cells: They kill cells infected with viruses and bacteria, and they also destroy tumor cells.
  • Helper T-cells:They send signals that direct other immune cells to fight infection.
  • Regulatory T-cells (Tregs): These cells suppress excessive immune responses to prevent autoimmune reactions and maintain immune tolerance. They play a crucial role in preventing the immune system from attacking the body’s own cells and tissues.
• T-cells start in bone marrow, mature in thymus and eventually relocate to lymph tissue or bloodstream.
• B-cellsmake antibodies in response to antigens (antibody generators).
  • There are two main types of B-cells: plasma cells and memory cells. Both types help to protect from infection and disease.

General Studies Paper -2

Context: NATO has completed its 75 years of establishment in 2024.

About NATO

• NATO, or the North Atlantic Treaty Organization, is a military alliance of countries. 
• Establishment:It was founded in 1949 with the signing of the North Atlantic Treaty, more popularly known as the Washington Treaty.
• Aim:To ensure the security and defense of its member countries through collective defense.
• Founding Members: The original members of NATO were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
• Collective Defense:The cornerstone of NATO is Article 5 of the North Atlantic Treaty, which states that an armed attack against one or more of its members is considered an attack against all members.
• Decision-Making:Decisions within NATO are made on the basis of consensus among member countries. 
  • The North Atlantic Council,which includes the ambassadors of all member countries, is the principal political decision-making body.
• Members:It has 32 member countries, Finland and Sweden became the 31st and 32nd members respectively.
  • On signing the Treaty, countries voluntarily commit themselves to participating in the political consultations and military activities of the Organization.

Expansion of NATO

• NATO now has32 members across Europe and North America, including the UK, US, Canada, France, Germany, Italy, Spain and Turkey.
• After the Soviet Union’s collapse in 1991, many Eastern European countries joined: Albania, Bulgaria, Hungary, Poland, the Czech Republic, Slovakia, Romania, Lithuania, Latvia and Estonia.
• Sweden and Finland applied to join in 2022, following Russia’s invasion of Ukraine. They had been neutral for decades.
• Finland – which has a 1,340km (832 mile) land border with Russia– joined in 2023. Sweden became a member in March 2024.
• With Sweden and Finland joining Nato, it is seeing its biggest expansion since the 1990s.They will add nearly 300,000 active and reserve troops to the alliance’s ranks.
• Ukraine, Bosnia and Herzegovina, and Georgia also hope to join Nato.

Concerns of NATO Expansion

• Geopolitical Tensions:Expanding NATO’s borders potentially provokes tensions with neighboring countries, especially those with close ties to Russia.
  • The immediate reason for the Russian – Ukraine war can be associated with the fact the Russia wanted to prevent Ukraine from joining NATO.
• Security Dilemma: NATO expansion can trigger a security dilemma wherein one country’s effort to enhance its security is seen as a threat by another, leading to anarms race or increased military tensions.
• Strategic Interests:Expanding NATO’s membership raises questions about the strategic interests of the alliance and its commitment to collective defense.
  • Some argue that NATO should focus on consolidating its existing members rather than taking on new ones.
• European Security Architecture:NATO expansion could undermine efforts to develop a broader European security architecture, including initiatives such as the Organization for Security and Co-operation in Europe (OSCE).
• Promoting such new alliances: Countries who sees NATO as a security threat can come up with a counter alliance such as the Warsaw Treaty Organization by the Russia. These alliances can further accelerate the geopolitical tensions.
• Potential for Conflict: NATO expansion raises the risk of conflict, particularly if it involves regions with existing territorial disputes or unresolved conflicts.
  • This could escalate tensions and increase the likelihood of military confrontation.

Way Ahead

• Overall, while NATO expansion can enhance the security of new member states and contribute to the stability of the Euro-Atlantic region, it also poses various challenges and concerns that need to be carefully considered by all parties involved.
• Diplomacy, dialogue, and a nuanced understanding of each other’s security concerns are essential for addressing these concerns and maintaining peace and stability in the region.

General Studies Paper -3

Context: The government is bringing into effect a policy that will discourage solar power project developers from relying on imported panels.

About Solar Energy Sector

• Solar energy is the most abundant & cleanest energy resource on earth.
  • India is endowed with vast solar energy potential.
• Solar energy can be used mainly in three ways one is direct conversion of sunlight into electricity through PV cells, the two others being concentrating solar power (CSP) and solar thermal collectors for heating and cooling (SHC).

What is Driving India’s Solar Power Plan?

• India gets around 250 to 300 days of sunshine per year; equivalent to about 2,200–3,000 sunshine hours in a year depending upon the location.
• In terms of energy, it receives around 5,000 trillion kWh of solar energy every year, and the incidence ranges from 4 to 7 kWh per square metre per day in most areas.
• Rampant air pollution emphasizes the need for cleaner energy sources like solar to combat pollution caused by fossil fuels
• Therefore ,the government has undertaken a series of policy measures and provided financial incentives, keeping solar energy at the forefront of the push to achieve net-zero carbon emissions by 2070 and meet 50% of its electricity requirements from renewable sources.
• Status : India, one of the world’s largest emitters of greenhouse gases, has set a target of 500 GW from non-fossil sources by 2030.
  • Solar energy has emerged as a major prong of India’s commitment to achieve these ambitious targets.
• India stands 4th globally in Renewable Energy Installed Capacity, 4th in Wind Power capacity and 5th in Solar Power capacity (as per International Renewable Energy Agency – Renewable capacity statistics 2023).

Benefits 

• Solar provides the ability to generate power on a distributed basis and enables rapid capacity addition with short lead times.
• From an energy security perspective, solar is the most secure of all sources, since it is abundantly available.
• Thesocial and economic benefits include reduction in drudgery among rural women and girls engaged in the collection of fuel wood from long distances and cooking in smoky kitchens, minimization of the risks of contracting lung and eye ailments, employment generation at village level.
• It will lead to the improvement in the standard of living and creation of opportunities for economic activities at village level  in an environment friendly manner.
• It supports the government agenda of sustainable growth, while emerging as an integral part of the solution to meet the nation’s energy needs and an essential player for energy security.

Related Initiatives 

• Solar energy has taken a central place in India’s National Action Plan on Climate Change with the National Solar Mission (NSM)
• PM Surya Ghar Muft Bijlee Yojana :It is a Central Scheme that aims to provide free electricity to one crore households in India, who opt to install roof top solar electricity units.
• The International Solar Alliance (ISA) : It is an action-oriented, member-driven, collaborative platform for increased deployment of solar energy technologies
  • The ISA was conceived as a joint effort by India and France to mobilize efforts against climate change through deployment of solar energy solutions.
  • It was conceptualized on the sidelines of the 21st Conference of Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Paris in 2015.
• Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
• Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025.
• The Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019, requires module makers to submit to an inspection of their manufacturing facilities by the National Institute of Solar Energy.
  • Being on the list as an ‘approved’ manufacturing facility certifies a company as legitimately manufacturing solar panels within its premises and not importing modules.
• In 2010, the Centre launched the Jawaharlal Nehru National Solar Mission (JNNSM) to focus on the promotion and development of solar power.

Concerns and  Challenges 

• Despite government nudges, solar power installed capacity had reached only 31 GW, with rooftop solar around 11.08 GW by December 2023.
• The tepid growth of rooftop solar to limited consumer awareness,inconsistent policies, high capital cost and a dearth of suitable financing options.
• Policy uncertainty and regulatory pushbacks have been a major factor limiting growth in rooftop solar
• More importantly, restrictions and/or ambiguity on provisions such as banking of electricity and net metering have undermined rooftop solar opportunities in India
• In recent years, a significant fraction of India’s solar installations has been met by imports.
  • This affects theinterests of domestic panel manufacturers who have to pay the government to be certified while at the same time losing out on orders to the cheaper Chinese panels.

Conclusion and Way Forward 

• India’s energy demand is expected to increase more in the coming decades due to its sheer size and enormous potential for growth and development.
• Therefore,It is imperative for India to not only find alternatives to coal-based fuels but also secure its energy demands in a sustainable manner.
  • Most of this new energy demand must be met by low-carbon, renewable sources.
• The extensive use of solar power plants is a crucial step towards cleaner, cheaper, and sustainable energy, offering benefits at both utility and individual levels.

As soon as the targets are moved in line with India’s demand, there is no doubt India can become a clean energy powerhouse.”

General Studies Paper -1

Context: The Uttarakhand government has constituted two teams of experts to evaluate the risk posed by five potentially hazardous glacial lakes in the region.

• These lakes are prone to Glacial Lake Outburst Floods (GLOFs).

What are GLOFs?

• GLOFs are disaster events caused by the abrupt discharge of water from glacial lakes — large bodies of water that sit in front of, on top of, or beneath a melting glacier.
• As a glacier withdraws, it leaves behind a depression that gets filled with meltwater, thereby forming a lake.
  • The more the glacier recedes, the bigger and more dangerous the lake becomes.

Reasons 

• GLOFs can be triggered by various reasons, including
  • Glacial calving, where sizable ice chunks detach from the glacier into the lake,
  • Inducing sudden water displacement
  • Incidents such as avalanches or landslides can also impact the stability of the boundary around a glacial lake, leading to its failure, and the rapid discharge of water.
• In recent years, there has been a rise in GLOF events in the Himalayan region as soaring global temperatures have increased glacier melting.
  • Rising surface temperatures across the globe, including India, have increased the risk of GLOFs
• Rapid infrastructure development in vulnerable areas has also contributed to the spike in such incidents.

Impacts 

• GLOFs can unleash large volumes of water, sediment, and debris downstream with formidable force and velocity.
• The floodwaters can submerge valleys, obliterate infrastructure such as roads, bridges, and buildings, and result in significant loss of life and livelihoods.
• It has resulted in several disasters in the Himalayan states in recent years.

Geographical Distribution: 

• Commonly associated with glacial regions, especially in mountainous areas with significant glacial activity. Examples include the Himalayas, Andes, and Alps.
  • Since 1980, in the Himalayan region, particularly in southeastern Tibet and the China-Nepal border area, GLOFs have become more frequent
• The National Disaster Management Authority (NDMA), which operates under the Union Ministry of Home Affairs, has identified 188 glacial lakes in the Himalayan states that can potentially be breached because of heavy rainfall.
  • Thirteen of them are in Uttarakhand.

Suggestions 

• There is a need to know more about the dynamics of glaciers and glacial lakes
• Therefore, it is important to learn as much as possible about past events and the dynamics behind them and to assess the overall GLOF risk in the region for better planning and implementation of disaster risk reduction measures and climate change adaptation in the region.
• There is a need to Utilise satellite imagery and remote sensing technology to monitor changes in glacial lakes and identify potential threats.
• Develop and communicate emergency preparedness plans to communities at risk.

About the BIMSTEC Charter

• It was signed and adopted during the Fifth BIMSTEC Summit held in Colombo, Sri Lanka in 2022.
• It provides a legal and institutional framework for BIMSTEC, aiming to create an enabling environment for rapid economic development through the identification and implementation of specific cooperation projects in the agreed areas of cooperation and other areas that may be agreed upon by the Member States.
• It reaffirms the commitment to the principles and purposes of BIMSTEC as enshrined in the Bangkok Declaration of 1997.

Significance of the BIMSTEC Charter

• The adoption of the BIMSTEC Charter formalises the grouping into an organisation made up of member states that are littoral to, and dependent upon, the Bay of Bengal.
• The Charter allows BIMSTEC to engage in external relations with non-member States, developmental partners, and regional as well as the UN and International Organisations.
• It stresses the need for a fair, just, equitable, and transparent international order and reaffirms faith in multilateralism with the United Nations at the centre and the rule-based international trading system.

BIMSTEC and India

• Alignment with Foreign Policy:BIMSTEC aligns with India’s ‘Neighbourhood First’ and ‘Act East’ policies.
  • It provides a natural platform for India to foster greater regional cooperation in South and Southeast Asia.
• Economic Integration: BIMSTEC is an important element in India’s strategy for economic cooperation with South East Asian countries.
  • The BIMSTEC Free Trade Area Framework Agreement, signed in 2004, aims to increase trade and economic integration among member countries.
• Security Cooperation: India plays a significant role in BIMSTEC’s security cooperation. Under the new changes adopted in the summit, India has become the ‘security pillar’ of BIMSTEC.
  • It includes cooperation in areas such as counter-terrorism and transnational crime.
• Connectivity and Infrastructure Development: The BIMSTEC Master Plan for Transport Connectivity seeks to connect several major transport projects in India, Bangladesh, Myanmar, and Thailand and establish a shipping network across the Bay of Bengal.
  • It aims to benefit the littoral states as well as the Bay of Bengal dependent states like Nepal and Bhutan.

Challenges Associated with BIMSTEC for India

• Uneven Progress:Despite being in existence for over 25 years, the pace of cooperation within BIMSTEC has been somewhat uneven.
  • The progress across different sectors has been inconsistent, which has affected the overall effectiveness of the organisation.
• Regional Conflicts among member states:It can hamper the smooth functioning of BIMSTEC.
  • For instance, the Rohingya refugee crisis created tensions between Myanmar and Bangladesh, which affected the working of BIMSTEC.
• Legal and Institutional Challenges: Finalising legal instruments for various initiatives, such as coastal shipping and road transport, can be time-consuming and complex.
  • These can slow down the progress towards stronger trade relations among the member countries.
• Security Concerns:Terrorism remains a significant threat to peace and stability in the region.
  • While BIMSTEC has been working towards strengthening cooperation against terrorism, it continues to be a major challenge.

Conclusion

• The BIMSTEC Charter represents a significant step forward in regional cooperation. It provides a robust framework for the organisation to work towards a peaceful, prosperous, and sustainable Bay of Bengal Region.

As BIMSTEC enters a new era with the adoption of its Charter, it is poised to play a crucial role in fostering regional cooperation and integration.

General Studies Paper -3

Context: Present circumstances call for a new chapter in India-Africa relations.

 India-Africa relations

• India and Africa have a time-honoured partnership based on shared values and the country enjoys considerable goodwill within Africa.
• India’s trade with Africa has grown from US$ 68.5 billion in 2011-12 to US$ 90.5 billion in 2022-23 and Indian investors have also expanded their footprint in Africa.
• India is now one of the top five investors in Africa.

Developments 

• India and Africa have made effective contributions to protect the interests of developing countries at international fora, particularly theWorld Trade Organisation (WTO).
  • They moved joint proposals such as the Agriculture Framework Proposal and India and South Africa proposed an intellectual property right waiver for COVID-19 vaccines at the WTO.
• India used its G20 presidency to solidify its position as the leader of the Global South.
  • The African Union became a full member of the G-20
• Indian investments in Africa reached $98 billion in 2023, with trade totalling $100 billion.
• Indian social enterprises and NGOs are exporting low-cost, scalable solutions, from eco-friendly houses to rural women solar engineers.

Importance 

• Africa’s significant growth rate of 8 per centand its young population, with 60 per cent under the age of 25, estimated to reach 1.1 billion people by 2040.
• Global forums:  Africa’s influence in global forums will be important for India’s vision for global governance.
  • As the Global South houses three-fourths of humanity and over 39 per cent of the global GDP.
• Cooperation in the critical minerals sector: Africa, with 30 percent of the world’s mineral reserves, is vital to power the energy transition.
  • To build solar panels and batteries necessary for a low-carbon future, access to minerals classified as “critical”, “transition” or “green” is key.
  • Given the geographical concentration of critical minerals, diversifying sources and fostering strategic partnerships with resource-rich nations are imperative for India’s growth and national security.

Challenges 

• The twin shocks of the COVID-19 pandemicand the Ukraine-Russia conflict have dealt heavy blows to African economies and much of the continent is currently reeling under debt distress and food insecurity.
• China has emerged as one of largest trading partners and one of largest investors in the African continent through its steady diplomacy and extensive economic engagement.
• Theinordinate delay in the fourth India-Africa Forum Summit, after three consecutive summits in 2008 (New Delhi), 2011 (Addis Ababa), and 2015 (New Delhi), does not bode well for the partnership.

Conclusion and Way Forward 

• In this era of geopolitical competition and realignment, India’s multifaceted relationship with African nations is poised for a fundamental transformation.
  • As India’s aspirations for the Global South take shape, leveraging historical partnerships with African countries remains imperative.
• India should actively engage with the AU to hold the India-Africa Forum Summit as soon as possible.
  • The India-Africa Forum Summit should build on the gains made at the G20 summit and spell out the agenda for the future.
• Africa’s food security and agricultural transformation should be one of the top priorities for India-Africa engagement in the coming years.
• Given India’s longstanding commitment to education and capacity building in Africa, New Delhi could revamp existing collaborations or establish new ones with African technical organisations.
  • This endeavour would bolster negotiation skills, training in project management, and devising industry-specific technical courses.

Indian research institutes engaging with Africa’s research community can facilitate the creation of solutions to address Global South challenges.

General Studies Paper -2

Context: Recently, a majority in the Lower House of Nepal supported the proposal seeking endorsement of the BIMSTEC Charter.

About the BIMSTEC Charter

• It was signed and adopted during the Fifth BIMSTEC Summit held in Colombo, Sri Lanka in 2022.
• It provides a legal and institutional framework for BIMSTEC, aiming to create an enabling environment for rapid economic development through the identification and implementation of specific cooperation projects in the agreed areas of cooperation and other areas that may be agreed upon by the Member States.
• It reaffirms the commitment to the principles and purposes of BIMSTEC as enshrined in the Bangkok Declaration of 1997.

Significance of the BIMSTEC Charter

• The adoption of the BIMSTEC Charter formalises the grouping into an organisation made up of member states that are littoral to, and dependent upon, the Bay of Bengal.
• The Charter allows BIMSTEC to engage in external relations with non-member States, developmental partners, and regional as well as the UN and International Organisations.
• It stresses the need for a fair, just, equitable, and transparent international order and reaffirms faith in multilateralism with the United Nations at the centre and the rule-based international trading system.

BIMSTEC and India

• Alignment with Foreign Policy:BIMSTEC aligns with India’s ‘Neighbourhood First’ and ‘Act East’ policies.
  • It provides a natural platform for India to foster greater regional cooperation in South and Southeast Asia.
• Economic Integration: BIMSTEC is an important element in India’s strategy for economic cooperation with South East Asian countries.
  • The BIMSTEC Free Trade Area Framework Agreement, signed in 2004, aims to increase trade and economic integration among member countries.
• Security Cooperation: India plays a significant role in BIMSTEC’s security cooperation. Under the new changes adopted in the summit, India has become the ‘security pillar’ of BIMSTEC.
  • It includes cooperation in areas such as counter-terrorism and transnational crime.
• Connectivity and Infrastructure Development: The BIMSTEC Master Plan for Transport Connectivity seeks to connect several major transport projects in India, Bangladesh, Myanmar, and Thailand and establish a shipping network across the Bay of Bengal.
  • It aims to benefit the littoral states as well as the Bay of Bengal dependent states like Nepal and Bhutan.

Challenges Associated with BIMSTEC for India

• Uneven Progress:Despite being in existence for over 25 years, the pace of cooperation within BIMSTEC has been somewhat uneven.
  • The progress across different sectors has been inconsistent, which has affected the overall effectiveness of the organisation.
• Regional Conflicts among member states:It can hamper the smooth functioning of BIMSTEC.
  • For instance, the Rohingya refugee crisis created tensions between Myanmar and Bangladesh, which affected the working of BIMSTEC.
• Legal and Institutional Challenges: Finalising legal instruments for various initiatives, such as coastal shipping and road transport, can be time-consuming and complex.
  • These can slow down the progress towards stronger trade relations among the member countries.
• Security Concerns:Terrorism remains a significant threat to peace and stability in the region.
  • While BIMSTEC has been working towards strengthening cooperation against terrorism, it continues to be a major challenge.

Conclusion

• The BIMSTEC Charter represents a significant step forward in regional cooperation. It provides a robust framework for the organisation to work towards a peaceful, prosperous, and sustainable Bay of Bengal Region.
• As BIMSTEC enters a new era with the adoption of its Charter, it is poised to play a crucial role in fostering regional cooperation and integration.

General Studies Paper -3

Context: The Punjab and Haryana high court has made it clear that courts can order release of an accused of money laundering under police custody without fulfilling twin conditions as mandated under the Prevention of Money Laundering Act (PMLA), 2002.

About the Act 

• PMLA forms the core of the legal framework put in place by India to combat money laundering. 
• PMLA and the Rules notified there under came into force with effect from July 1, 2005 .
  • The PMLA was enacted by India’s Parliament under Article 253 which empowers it to make laws for implementing the international conventions.
• The Act seeks to combat money laundering in India and has three main objectives:
  • to prevent and control money laundering
  • to confiscate and seize the property obtained from the laundered money
  • to deal with any other issue connected with money laundering in India.
• Director, FIU-IND and Director (Enforcement)have been conferred with exclusive and concurrent powers under relevant sections of the Act to implement the provisions of the Act.
• The Act was amended by the Prevention of Money Laundering (Amendment) Act, 2009 and by the Prevention of Money Laundering (Amendment) Act, 2012.

Emerging Issues 

• Crime proceeds: PMLA revolves around the “crime proceeds”which are laundered.
  • persons who have nothing to do with the crime but who have some involvement at a later stage in the laundering process are also guilty under this law.
  • an accused under PMLA is presumed to be guilty until proven innocent.
    • A fundamental principle of Anglo-Saxon jurisprudence is that a person is presumed innocent until proven guilty. PMLA turns this principle upside down.
  • Large number of Offences: PMLA includes a large number of offences in the schedule which have nothing to do with the original purpose of this law.
    • its ambit has been extended to cover even offences not related to drug trafficking, organised crimes, and other serious crimes.
  • Lack of Transparency : Enforcement Case Information Report (ECIR): the absence of a procedure to commence investigation and summoning, while the accused was not made aware of the contents of the Enforcement Case Information Report (ECIR).
  • The bail provision:  The bail provision of the PMLA Act (Section 45) is invested with a lot of political significance in present day India.
    • It was held unconstitutional by a two-judge Bench of the Supreme Court of India in Nikesh Tarachand Shah vs Union of India (2018) as violating Article 14 and Article 21.
      • But In 2022, the Supreme Court upheld the validity of various provisions of the Prevention of Money Laundering Act (PMLA) which empowers ED to make arrests, conduct search and seizures and attach proceeds of crime.

Conclusion and Way Forward 

• India as a signatory to the treaties and an important participant in the international process and the fight against money laundering, is bound legally and morally, to adopt the global best practices and respond to the changing needs of the times .
  • But legal and constitutional safeguards must be kept in mind in this context .
• The Supreme Court’s decision in Pankaj Bansal vs Union of India is a significant step towards enhancing transparency, accountability, and fairness in the arrest procedures under PMLA.
  • It delved into an important point of law — how is the enforcement directorate (ED) required to “inform” persons arrested under the Prevention of Money Laundering Act, 2002, (PMLA) of the grounds of their arrest.
  • In addition to increased transparency, the decision will foster better corporate governance.
• There must be a global consensus on the need to have a law to deal effectively.

General Studies Paper -2

Context: Public debt management is getting wider attention in Centre-State financial relations, against the backdrop of the recently constituted Sixteenth Union Finance Commission.

About

• Kerala, had filed a suit in the Supreme Court of India against the Centre’s decision on the net borrowing ceiling of States.
• These recent developments relate to a clarion call for “asymmetric fiscal rules” relating to deficits and debts in India.

Centre-State Financial Relations

• The Indian Constitution has all the features of a federation with the specification of financial powers and functional responsibilities of the Centre and the States .
• The Union and the State Lists under the Seventh Schedule prescribed in the Constitution under Article 246 contain subjects in respect of which the Union and the States have exclusive jurisdiction to make laws, respectively.
  • In addition, a few subjects are listed in the Concurrent List in respect to which both the Union and the States have concurrent powers to make laws.
• Article 270of the Constitution provides for the scheme of distribution of net tax proceeds collected by the Union government between the Centre and the States.
  • The taxes that are shared between the Centre and the States include corporation tax, personal income tax, Central GST, the Centre’s share of the Integrated Goods and Services Tax (IGST) etc.

Basis for Allocation

• The share of States from the divisible pool (vertical devolution) stands at 41% as per the recommendation of the 15th FC.
• The distribution among the States (horizontal devolution) is based on various criteria.
• The criteria as per the 15th FC can be briefly explained as follows.
  • ‘Income distance’ : It is the distance of a State’s income from the State with highest per capita income.
    • States with lower per capita income would be given a higher share to maintain equity among States.
  • ‘Population ’is the population as per the 2011 Census.
  • ‘Forest and ecology’consider the share of dense forest of each State in the aggregate dense forest of all the States.
  • ‘The demographic performance’criterion has been introduced to reward efforts made by States in controlling their population.
  • ‘Tax effort’ as a criterion has been used to reward States with higher tax collection efficiency.

Concerns of States Government

• Over the years, the share of Union Finance Commission tax transfers has declined for a few States.
• The Union government has sought to keep an increasing share of its proceeds out of the divisible pool so that they need not be shared with States.
• It has also not been devolving the shares of net proceeds to the States as mandated by successive FCs.
• The Fifteenth Finance Commission has designed the tax transfer formula based on population (15%), area (15%), income distance (45%), demographic transition (12.5%), forest and ecology (10%) and tax effort (2.5%).
  • The weightage given to the distance of per capita income in the Finance Commission tax transfer formula adversely affects growing States, including Kerala.
    • This leads to the debate on equity versus efficiency principles of intergovernmental fiscal transfers.

Suggestions and Way Ahead 

• Judicious bargaining with the Finance Commission relating to magnitude and criteria (with weightage decisions) is key to ensuring the progressivity of fiscal transfers to the State.
• There needs to be a negotiation with the Sixteenth Finance Commission for specific-purpose transfers to tackle State-specific issues such as demographic transition, inward and outward migration and climate change crisis.
• Fiscal transfer based on the advancement of gender budgeting(including the care economy infrastructure) in the State is critical to redress gender inequalities.
• Apart from addressing rightful complaints on the inequalities in horizontal devolution, the stance of the 16th FC on vertical devolution would be critical to the survival of fiscal federalism in India.