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Web: www.nextias.com 1 Ph. 011-49858612, 8800338066 Time: 45 min Date: 11-09-2021 Biodiversity and Environment Status of Coral Reefs of the World: 2020 Syllabus : GS 3/Environmental Pollution & Degradation In News Status of Coral Reefs of the World: 2020 was prepared by the Global Coral Reef Monitoring Network, along with the Australian government. Major Findings Resiliency: Coral reefs have suffered terribly in the past three decades. Yet, they are resilient and would be able to withstand challenges posed by a warming world. Shocking aspects: There were many shocking aspects noted in the report as well. For instance, the 1998 coral bleaching event killed eight per cent of the world’s coral. Subsequent events between 2009 and 2018 killed 14 per cent of the world’s coral. Since 2010, almost all regions had exhibited a decline in average coral cover. Causes: Most declines in global coral cover were associated with either rapid increase in sea surface temperature (SST) anomaly or sustained high SST anomaly. There were 20 per cent more algae on the world’s coral reefs in 2019 than in 2010. The increase in the number of algae was associated with declines in the amount of hard coral. Suggestions Reducing local pressures on coral reefs to maintain their resilience would be critical in the years to come. Monitoring data collected in the field is also essential to understand the status of the trends in coral reef conditions. NEXT IAS
Transcript

Web: www.nextias.com 1 Ph. 011-49858612, 8800338066

Time: 45 min Date: 11-09-2021

Biodiversity and Environment

Status of Coral Reefs of the World: 2020

Syllabus : GS 3/Environmental Pollution & Degradation

In News

Status of Coral Reefs of the World: 2020 was prepared by the Global Coral Reef Monitoring Network, along with the Australian government.

Major Findings

● Resiliency: Coral reefs have suffered terribly in the past three decades. Yet, they are resilient and would be able to withstand challenges posed by a warming world.

● Shocking aspects: There were many shocking aspects noted in the report as well.

○ For instance, the 1998 coral bleaching event killed eight per cent of the world’s coral.

○ Subsequent events between 2009 and 2018 killed 14 per cent of the world’s coral.

○ Since 2010, almost all regions had exhibited a decline in average coral cover.

● Causes: Most declines in global coral cover were associated with either rapid increase in sea surface temperature (SST) anomaly or sustained high SST anomaly.

○ There were 20 per cent more algae on the world’s coral reefs in 2019 than in 2010.

■ The increase in the number of algae was associated with declines in the amount of hard coral.

● Suggestions

○ Reducing local pressures on coral reefs to maintain their resilience would be critical in the years to come.

○ Monitoring data collected in the field is also essential to understand the status of the trends in coral reef conditions.

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○ Ongoing investment in the development of methodological approaches, new technologies, capability and capacity that expands geographic coverage and enhances the quality, accessibility and interoperability of data is essential.

Coral Reefs

● A coral reef is an underwater ecosystem characterized by reef-building corals.

● Reefs are formed of colonies of coral polyps held together by calcium carbonate.

● The coral polyps live in an endosymbiotic relationship with algae.

○ Algae provide up to 90 per cent of the coral's energy.

● Temperature:

○ The temperature of the water should not be below 20°C.

○ The most favourable temperature for the growth of the coral reefs is between 23°C to 25°C.

○ The temperature should not exceed 35°C.

● Salinity: Corals can survive only under saline conditions with an average salinity between 27% to 40%.

● Shallow Water: Coral reefs grow better in shallow water having a depth less than 50 m. The depth of the water should not exceed 200m.

● Coral reefs are divided into four classes:

○ fringing reefs,

○ barrier reefs,

○ atolls, and

○ patch reefs.

Great Barrier Reef

● The Great Barrier Reef is unique as it extends over 14 degrees of latitude, from shallow estuarine areas to deep oceanic waters.

● Within this vast expanse is a unique range of ecological communities, habitats and species – all of which make the Reef one of the most complex natural ecosystems in the world.

● The reef is located in the Coral Sea, off the coast of Queensland, Australia.

● It was selected as a World Heritage Site in 1981.

Significance

● Coral Reefs provide an important ecosystem for life underwater, protect coastal areas by reducing the power of waves hitting the coast, and provide a crucial source of income for millions of people.

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● Coral reefs have an estimated global value of £6 trillion each year, due in part to their contribution to the fishing and tourism industries and the coastal protection they provide.

● More than 500 million people worldwide depend on reefs for food, jobs and coastal defence.

● Extracts from animals and plants living on reefs have been used to develop treatments for asthma, arthritis, cancer and heart disease.

● Coral reefs provide the biodiversity:

○ Thousands of species can be found living on one reef.

○ The Great Barrier Reef contains over 400 coral species, 1,500 fish species, 4,000 mollusc species and six of the world's seven sea turtle species.

○ The Coral Triangle - a coral-rich marine region in Southeast Asia that encompasses the waters between Indonesia, Malaysia, the Philippines and Papua New Guinea - is the most biologically diverse marine ecosystem on Earth.

Challenges for Coral Reefs

● Physical damage or destruction from coastal development, dredging, quarrying, destructive fishing practices and gear, boat anchors and groundings, and recreational misuse (touching or removing corals).

● Pollution originates on land but finds its way into coastal waters. There are many types and sources of pollution from land-based activities.

● Overfishing can alter the food-web structure and cause cascading effects, such as reducing the numbers of grazing fish that keep corals clean of algal overgrowth. Blast fishing (i.e., using explosives to kill fish) can cause physical damage to corals as well.

● Coral harvesting for the aquarium trade, jewellery, and curios can lead to over-harvesting of specific species, destruction of reef habitat, and reduced biodiversity.

The threat of Coral Bleaching

● Coral bleaching occurs when coral polyps expel algae that live inside their tissues.

● When corals face stress by changes in conditions such as temperature, light, or nutrients, they expel the symbiotic algae zooxanthellae living in their tissues, causing them to turn completely white.

● This phenomenon is called coral bleaching.

● Reasons:

○ The leading cause of coral bleaching is climate change.

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○ A warming planet means a warming ocean, and a change in water temperature - as little as 2 degrees Fahrenheit - can cause coral to drive out algae.

○ Coral may bleach for other reasons, like extremely low tides, pollution, or too much sunlight.

Image Courtesy: thestar

Way Forward

● The countries could act to improve water quality at the reef, which would increase its resilience to climate change.

● Make collaborative efforts to mitigate the global effects of climate change - warming seas and increasing sea levels etc.

Source: DTE

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International relations

India and Germany bilateral meeting on environmental issues

Syllabus: GS 2/India and Foreign relations

In News:

A bilateral meeting was held between India and Germany in New Delhi to discuss a wide range of environmental issues.

● The discussion covered areas such as climate change, water scarcity, marine & air pollution, circular economy, etc.

Key Highlights from the Meeting

● The importance of Indo-German bilateral cooperation on the environment

○ India appreciated efforts made by Germany in bringing new technologies to India.

○ Achievements of India in tackling climate change were also appreciated.

● Information exchange in bilateral programmes

○ Both sides stressed the importance of information exchange in bilateral programmes keeping climate and SDG indicators in focus

○ Various sectors for such information exchange are Agro-Ecology, Solar Partnership Inter resilience.

● Circular Economy

○ India and Germany may explore strengthening bilateral cooperation, especially on the circular economy.

○ It may include treatment of solid waste (solar panels, batteries), wastewater etc.

Current Status of Cooperation on Environment

● Cooperation Portfolio worth 12 billion Euros

○ Germany and India have succeeded in building up a cooperation portfolio worth almost 12 billion euros.

○ Already, 9 out of 10 measures support climate goals and SDGs together.

● Indo-German development cooperation focuses on three areas:

○ Transition to renewable energies,

○ Sustainable urban development and

○ Sustainable management of natural resources.

● German Aid

○ As a pioneer of the energy transition, Germany is offering knowledge, technology transfer and financial solutions to India.

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Potential of Indo-German Cooperation on Different Issues

● Expected Indian Urban Boom

○ Over half the Indian population will live in cities by 2050.

○ The cooperation efforts support Indian policies to find sustainable solutions for this growing challenge in the face of limited urban resources and climate change.

● COVID Pandemic

○ For over a year now, India, Germany and the entire world have been in crisis mode.

■ The Covid-19 pandemic has left no country untouched.

○ It is safe to say, we will either beat Covid-19 worldwide or not at all.

○ Further, it also drew attention away from the climate change crisis.

● Eco-Friendly Agriculture and Agroforestry

○ Smart solutions are being tested in India and Germany for more self-reliance.

■ It includes agroecological approaches and sustainable management of forests, soils and water.

○ Experience in India has shown that these methods also boost incomes for the local population.

■ They also make them less dependent on expensive fertilisers, pesticides and seeds.

○ Germany is looking forward to deepening the work in this area.

● One Health Approach and international health policies

○ Through a One Health approach, Germany wants to help tackle the challenges posed by population growth, increased mobility, shrinking habitats, industrialised farming and intensive animal husbandry.

○ One Health Approach looks at the close connections between human and animal health within their shared environment.

● Complimentary Visions of EU’s Green Deal, German targets and Indian NAPCC

○ The EU has adopted an ambitious Green Deal to achieve net-zero greenhouse gas emissions by 2050.

■ It also aims to decouple economic growth from the consumption of natural resources.

○ Germany recently adopted laws on reducing greenhouse gases more quickly, achieving climate neutrality by 2045.

■ It will also stop the use of coal for electricity production by 2038.

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○ India is one of few countries that looks set to deliver on the national goals it set itself as part of the Paris agreement.

■ Compared to other G20 countries, its per capita emissions are very low.

● IPCC Report and Paris Agreement

○ Global warming must be kept to well under 2 degrees Celsius and, if possible, to 1.5 degrees as per IPCC.

○ Back in December 2015, 195 countries joined in Paris to sign an ambitious climate agreement.

○ Each of those countries must deliver on its responsibilities. Climate change, too, is a crisis that can only be beaten worldwide or not at all.

Challenges before Indo- German Relations on Environment

● Poverty v/s Environment

○ India must bear in mind the development interests of its large population while implementing costly environmental projects.

● Vulnerable Global Supply Chains due to Pandemic

○ Due to assertive China and Global lockdowns, the supply chains have been disrupted worldwide.

Conclusion and Way Forward

● Germany identifies Indian Contribution to the Environment and has shown faith in the democratic set up of India.

○ It recognises that without India, the world will not be able to fight climate change.

■ Without India, the world cannot achieve the SDGs.

○ That means that India has a leading international role to play in the global race to sustainability.

● Sustainable growth and climate action go hand in hand.

○ India now has the opportunity to make its massive investments in infrastructure over the next 15 years climate-smart and climate-resilient.

○ This will also protect the interests of the most vulnerable sections of the population.

● Innovation and Highly-trained skilled people

○ Both nations have especially innovative economies and many highly-trained people.

○ That potential needs to be harnessed even more now.

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● Ultimately, global climate goals and the SDGs can only be achieved through cooperation between governments, the private sector, science, and civil society.

○ So, each stakeholder must play its role diligently.

Other Facts about India and Germany Relations

● Bilateral Trade:

○ Germany is India's largest trading partner in Europe.

○ Maximum Indian exports to Germany is from the textile sector, followed by chemical products, electrical engineering products, metal and leather goods and foodstuffs.

● Germany has played a key role in reviving the India-EU free trade talks i.e

Bilateral Trade and Investment Agreement (BTIA).

● Terrorism:

○ Germany supports India led movement for the adoption of the

Comprehensive Convention on International Terrorism.

● NSG Membership:

○ Germany has supported India’s membership bid in the Nuclear Suppliers Group (NSG).

● G4 Grouping:

○ India and Germany are members of G-4 along with Brazil and Japan.

○ The G4 nations support each other’s bids for permanent seats on the United Nations Security Council.

● Science and Technology:

○ Germany is India’s second most important research partner worldwide, after the United States.

○ This is reflected in a large number of joint Indo-German scientific publications.

○ There are more than 1000 Indian postgraduate students in Germany.

○ India constitutes the second-largest group of foreign PhD students after the Chinese.

Source: PIB

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Indian Economy

Rice Fortification

Syllabus: GS3/ Growth & Development/Agriculture

In News

Recently, a webinar is being held on “Rice Fortification: A complementary approach to address Nutritional Anaemia”.

About

● It was organised to mark the ongoing 4th Rashtriya Poshan Mah.

● Organised by: Department of Food and Public Distribution under Ministry of Consumer Affairs, Food and Public Distribution and Ministry of Women and Child Development with technical support of the World Food Programme (WFP).

Rice fortification

● Fortification:

○ The process of adding nutrients, such as micronutrients or macronutrients, to food.

○ It can be a commercial choice to provide extra nutrients in a food, or sometimes it is a public health policy that aims to reduce the incidence of dietary deficiencies in a population.

● Fortifying rice:

○ It involves grinding broken rice into powder, mixing it with nutrients, and then shaping it into rice-like kernels using an extrusion process.

○ These fortified kernels are then mixed with normal rice in a 1:100 ratio and distributed for consumption.

● Enhancers:

○ The addition of basic material like ferric pyrophosphate and enhancing compounds like citric acid and trisodium citrate mixtures to increase iron absorption in a staple food is the most common form of fortification.

● Efforts:

○ India has been taking promising steps to ensure food security and improving the nutrition outcomes of its population.

○ Therefore, the fortification needs to be integrated into the larger response to address malnutrition in the country with the understanding that it will reinforce, complement and support ongoing nutrition improvement programmes such as supplementation & dietary diversification.

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○ The Ministry of Consumer Affairs, Food and Public Distribution had launched a centrally sponsored pilot scheme on “Fortification of Rice and

its Distribution under Public Distribution System (PDS)” for a period of three years beginning 2019-20 with a total budget outlay of Rs.174.64 crore.

■ The pilot scheme focuses on 15 districts in 15 states– Andhra Pradesh, Kerala, Karnataka, Maharashtra, Odisha, Gujarat, Uttar Pradesh, Assam, Tamil Nadu, Telangana, Punjab, Chhattisgarh, Jharkhand, Uttarakhand and Madhya Pradesh.

Poshan (Prime Minister’s Overarching Scheme for Holistic Nutrition) Abhiyaan

● POSHAN Abhiyan aims at improving nutritional outcomes for children, adolescent girls, pregnant women and lactating mothers.

● The programme was launched by the Prime Minister on March 8, 2018, on the occasion of International Women’s Day from Jhunjhunu, Rajasthan.

● It directs the attention of the country towards the problem of malnutrition and addresses it in a mission mode.

● Mission Poshan 2.0

○ Focusing on the aims of POSHAN Abhiyan, Mission Poshan 2.0 (Saksham Anganwadi and Poshan 2.0) has been announced in the Budget 2021-2022 as an integrated nutrition support programme, to strengthen nutritional content, delivery, outreach and outcomes with a focus on developing practices that nurture health, wellness and immunity to disease and malnutrition.

● To give momentum to POSHAN Abhiyan, the ‘National Council on India’s Nutrition Challenges’ on 24th July 2018 decided to celebrate the month of September as Rashtriya Poshan Maah. During this month activities related to nutrition awareness will be carried out by all the states/UTs up to the grass-root level.

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(Image Courtesy: ex )

Significance

● Ease of use:

○ It's a widely used staple food, it is simple to replace standard rice with

fortified rice to boost the nutritional profile of a simple diet.

○ With certain methods of fortification, consumer usage is key in effectiveness.

○ However, advances in fortification technologies, such as the use of hot extrusion, also ensure the added high-quality micronutrients remain stable without requiring a behaviour change or further education for the end consumer.

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● Low Cost:

○ The specific costs of fortified rice depend on several factors, such as the scale of the operation and the blending ratio of fortified to non-fortified kernels - most commonly 0.5-2%.

○ However, rice fortification costs are small compared to the wide-reaching benefits.

○ The cost impact is around 0.5-3%, yet such strategies can help tackle malnutrition at both a population and personal level.

● Consistency for consumers:

○ It looks, cooks, and tastes the same as non-fortified rice.

○ This is great for individuals in low-income countries, where awareness and

education on both nutrition and usage of fortified rice may be lacking.

● Market differentiation for brands:

○ Fortified rice can also be customized for specific needs.

○ It presents a solution for health-conscious consumers looking for new ways to reach specific health benefits.

● Reducing micronutrient deficiencies for governments and schools:

○ For governments, mandatory rice fortification can support a country to significantly reduce micronutrient deficiencies (MNDs), though this does rely heavily on successful and wide-reaching implementation and is very challenging when the rice milling landscape is highly fragmented.

○ There’s also the opportunity to build fortified rice into school feeding

programs and government social safety nets, offering the same benefits on a smaller scale, but targeting vulnerable populations at high risk of deficiencies.

● Addressing malnutrition:

○ Problems like anaemia can be reduced with rampant use of such Fortified food.

○ The basic purpose of food fortification is to improve the nutritional quality and provide public health benefits to the population with minimal risks.

○ Fortified rice can deliver essential vitamins and minerals missing in many people's meals, and can help ensure the poorest get the nutrition they need for an active and healthy life.

● Employment and economy:

○ With increased production of rice and such food, employment will increase and so will the situation of the economy.

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WHO recommendations

● Fortification of rice with iron is recommended as a public health strategy to improve the iron status of populations, in settings where rice is a staple food.

● Fortification of rice with vitamin A may be used as a public health strategy to improve the iron status and vitamin A nutrition of populations.

● Fortification of rice with folic acid may be used as a public health strategy to improve the folate nutritional status of populations.

Challenges

● Implementation of Laws: The implementation of food safety laws, mainly left to state governments and Union territories now, will be a big problem since the implementation machinery in many states is weak.

● Division of beneficiaries is not easy: Rice is consumed in large quantities as a staple in India and mandatory fortification will force even the population groups which do not need it into taking additional food additives.

● Food Safety: Mandatory fortification of rice would certainly pose a risk to food safety despite the safeguards of food laws.

● Tracking: Health benefits from fortification are not as easy to track as in the case of any vaccine. A proper tracking mechanism is needed.

● Budgetary allocation not utilised: Mere 30% of funds only have been utilised to date.

(Image Courtesy: TH )

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Way Ahead

● Investment: Rice millers will have to make the immediate investment and the government has to consider offering loans and other incentives to create an enabling environment.

● Infrastructure and machinery: Bureau of Indian Standards (BIS) has been requested to come out with a standard for extruder and blending machines for fortified rice production for uniformity.

● Awareness and demand:

○ There is a need to amplify efforts to spread awareness about fortified rice and its benefits so that demand is created and the acceptability for nutrient-enriched rice is better.

○ All stakeholders must come together to create awareness campaigns using local languages.

● Testing:

○ Since the fortified kernels look and taste the same as normal rice grains, there is also an urgent need for quality control testing and monitoring to ensure consumers are not taken for a ride.

○ FSSAI and the NABL laboratories are exploring avenues to build capacity for quality testing.

● Regulated Use: Need to use food additives in permitted quantities to make it palatable.

Different methods to make rice more nutritious post-harvest:

● Dusting – this is where rice kernels are dusted with a micronutrient powder, relying on an electrostatic force to bind the dry powder to the surface of the grain. Fortified rice produced by dusting cannot be washed or cooked in excess of water.

● Coating – a method that involves the use of a fortificant mix and ingredients such as wax or gum to ‘fix’ the micronutrient layer being sprayed onto the rice. The produced fortified kernels are blended with regular rice, typically at 0.5 – 2% ratio.

● Hot or warm extrusion – hot extrusion is considered the most robust method of rice fortification, supported by an extensive evidence base to have a positive impact on micronutrient deficiencies.

○ Broken rice grains are ground into rice flour, then mixed with water and the required nutrients to produce a dough.

○ The fortified dough is then passed through an extruder to produce the fortified kernels, which are then blended with regular rice typically at 0.5-2% ratio. The temperature at which the extrusion takes place determines if we speak of hot or warm extrusion and has an influence on the rice starch gelatinization and thus firmness of the produced fortified kernels.

Sources: PIB

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Indian Economy

Strategic Disinvestment

Syllabus: GS3/ Government Budgeting; Mobilization of Resources

In News

Recently, the Government allowed disinvested PSUs to set off previous losses.

About the recent developments

● In order to facilitate the strategic disinvestment, it has been decided that Section

79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector

company that has become so as a result of strategic disinvestment.

○ The above relaxation will cease to apply from the previous year in which the company, that was the ultimate holding company of such erstwhile public sector company immediately after completion of the strategic disinvestment, ceases to hold, directly or through its subsidiary or subsidiaries, 51 per cent of the voting power of the erstwhile public sector company.

● Finance Act, 2021 has amended section 72A of the Income-tax Act, 1961 that deals

with the amalgamation of a public sector company (PSU) which ceases to be a PSU (erstwhile public sector company) as part of strategic disinvestment, with one or more company or companies and carry forward of losses in case of change in shareholding following the sale by the government.

(Image Courtesy: PIB )

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Strategic Investment Policy

● Aim:

○ The government aims at making use of disinvestment proceeds to finance various social sector and developmental programmes and also to infuse private capital, technology and best management practices in Central Government Public Sector Enterprises.

● Budget FY 2021-22 Announcement :

○ In the Union Budget FY 2021-22, it was announced that the government has approved a policy of strategic disinvestment of public sector enterprises that will provide a clear roadmap for disinvestment in all non-strategic and strategic sectors.

● Policy on Strategic Disinvestment:

○ Fulfilling the governments’ commitment under the AtmaNirbhar Package of coming up with a policy of strategic disinvestment of public sector enterprises, the following were highlighted as its main features:

■ Existing CPSEs, Public Sector Banks and Public Sector Insurance Companies to be covered under it.

■ Twofold classification of Sectors to be disinvested :

● Strategic Sector :

○ Bare minimum presence of the public sector enterprises and remaining to be privatised or merged or subsidiaries with other CPSEs or closed.

○ Following 4 sectors to come under it :

■ Atomic energy, Space and Defence

■ Transport and Telecommunications

■ Power, Petroleum, Coal and other minerals

■ Banking, Insurance and financial services

● Non- Strategic Sector :

○ In this sector, CPSEs will be privatised, otherwise shall be closed.

● Moving forward task:

○ Further to fast forward the policy, NITI Aayog has been asked to work out on the next list of Central Public Sector companies that would be taken up for strategic disinvestment.

● Incentivising states for disinvestment:

○ To incentivise States to take to disinvestment of their Public Sector Companies, an incentive package of Central Funds for them will be worked out.

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● Special purpose vehicle for monetising idle land:

○ Recognising that Idle assets will not contribute to Atma Nirbhar Bharat and

the non-core assets largely consist of surplus land with Government

Ministries/Departments and Public Sector Enterprises,it was proposed to

use a Special Purpose Vehicle in the form of a company to carry out

monetization of idle land.

○ This can either be by way of direct sale or concession or by similar means.

● Exit mechanism:

○ It was proposed to introduce a revised mechanism that will ensure timely

closure of sick or loss-making CPSEs.

Benefits

● Improved efficiency:

○ The main argument for privatization is that private companies have a profit

incentive to cut costs and be more efficient.

○ Data presented in the Economic Survey 2019-20 showed that State-run

entities where government offloaded stakes were found to have performed

much better than those under government control.

● Lack of political interference:

○ It is argued governments make poor economic managers. They are

motivated by political pressures rather than sound economic and business

sense. Privatization can minimise political interference.

● Long term view:

○ Strategic disinvestment will benefit the firm in the long term because

private managers are more concerned about projects that give a benefit in

the longer run.

● Pressure from Shareholders:

○ It is argued that a private firm has pressure from shareholders to perform

efficiently. If the firm is inefficient then the firm could be subject to a

takeover. A state-owned firm doesn’t have this pressure and so it is easier

for them to be inefficient.

● Increased competition:

○ Often privatization of state-owned monopolies occurs alongside

deregulation – i.e. policies to allow more firms to enter the industry and

increase the competitiveness of the market.

○ It is this increase in competition that can be the greatest spur to

improvements in inefficiency.

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Associated Issues

● Reforming PSUs has taken a back seat:

○ The Sale of profit-making and dividend-paying PSUs would result in the

loss of regular income to the Government. It has become just a resource

raising exercise by the government. There is no emphasis on reforming

PSUs.

● Loss of regular income to the Government:

○ As the amount that will be received from disinvestment will be for one time

only which will impede the process of regular income received by GoI from

the PSUs.

● Inefficiency will remain:

○ The valuation of shares has been affected by the government’s decision not

to reduce government holdings below 51 per cent. With the continuing

majority ownership of the government, the public enterprises would

continue to operate with the earlier culture of inefficiency.

● Government Control:

○ Government is not willing to give up its control even after strategic

disinvestment. The government is willing to change the extant policy of the

government.

○ It will change the policy of “directly” holding 51 per cent or above in a

CPSU to one whereby its total holding, “direct” plus “indirect”, is

maintained at 51 per cent. It means the government will still exercise its

control over PSUs.

● Uncertainty of Competition:

○ Privatization doesn’t necessarily increase competition; it depends on the

nature of the market. E.g. There is no competition in railways if it is

privatized, as the sector is a natural monopoly.

● Chances of “Asset Stripping” by the strategic partner:

○ Loss-making units don’t attract investment so easily. It depends upon the

perception of investors about the PSU being offered. This perception

becomes more important in the case of strategic sales, where the amount of

investment is very high.

● Bureaucratic Control:

○ The process of disinvestment is suffering from bureaucratic control. Almost

all processes starting from conception to the selection of bidders are

suffering due to it. Moreover, bureaucrats are reluctant to take timely

decisions in the fear of prosecution after retirement.

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● Strategic and National Security Concerns:

○ Strategic Disinvestment of Oil PSUs is seen by some experts as a threat to National Security. Oil is a strategic natural resource and possible ownership in the foreign hand is not consistent with our strategic goals. For example, disinvesting Bharat Petroleum Corporation Limited (BPCL).

● Fund utilization:

○ Using funds from disinvestment to bridge the fiscal deficit is an unhealthy and short term practice. It is the equivalent of selling ‘family silver to meet short term monetary requirements.

● Complete Privatisation may result in public monopolies:

○ Complete Privatization may result in public monopolies becoming private monopolies, which would then exploit their position to increase costs of various services and earn higher profits

Way Ahead

● Ensuring that disinvestment is not used for filling the deficit.

● Stringent regulations to curb insider trading.

● Reviewing the disinvestments involving a national security concern by a special committee.

● Ensuring that the welfare function of the government is not compromised.

Various modes of disinvestments followed by the Government:

● Disinvestment through minority stake sale in listed CPSES to achieve minimum public shareholding norms of 25 per cent. While pursuing disinvestment of CPSES, the Government will retain majority shareholding, i.e., at least 51 per cent and management control of the Public Sector Undertakings;

● Listing of CPSES to facilitate people's ownership and improve the efficiency of companies through accountability to its stakeholders - As many as 57 PSUs are now listed with a total market capitalization of over Rs 13 lakh crore.

● Strategic Disinvestment involves the sale of a substantial portion of Government shareholding in identified Central PSES (CPSES) up to 50 per cent or more, along with transfer of management control.

○ NITI Aayog identifies PSUs for strategic disinvestment. For this purpose, NITI Aayog has classified PSUS into "high priority" and "low priority", based on

■ National Security

■ Sovereign functions at arm's length,

■ Market Imperfections and Public Purpose.

○ The PSUs falling under "low priority" are covered for strategic disinvestment.

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● Buy-back of shares by large PSUs having huge surplus;

● Merger and acquisitions among PSUs in the same sector;

● Launch of exchange-traded funds (ETFs) - an equity instrument that tracks a particular index. The CPSE ETF is made up of equity investments in India's major public sector companies like ONGC, REC, Coal India, Container Corp, Oil India, Power Finance, GAIL, BEL, EIL, Indian Oil and NTPC; and

● Monetization of select assets of CPSEs to improve their balance sheet/reduce their debts and to meet part of their capital expenditure requirements

Sources: IE

Polity and Governance

National Commission for Minorities

Syllabus:GS 2/Statutory, Regulatory & Various Quasi-judicial Bodies

In News

Recently, Former IPS officer Iqbal Singh Lalpura, who joined BJP in 2012, has been chosen as chairman of the National Commission for Minorities.

National Commission for Minorities(NCM)

Background: In 1978, the setting up of the Minorities Commission (MC) was envisaged in the Ministry of Home Affairs Resolution.

○ In 1984, the MC was detached from the Ministry of Home Affairs and placed under the newly created Ministry of Welfare, which excluded linguistic minorities from the Commission’s jurisdiction in 1988.

○ In 1992, with the enactment of the NCM Act, 1992, the MC became a statutory body and was renamed as the NCM.

■ The first National Commission for Minorities with a statutory status was formed in 1993.

● Composition of the commission: The commission consists of seven members which include a Chairperson and a Vice-Chairperson along with five other members.

○ All members of the commission must belong to minority communities

enlisted as minorities, and from amongst persons of eminence, ability and integrity.

○ Every member of the Commission holds office for a period of three years.

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Minority community in India

● The central government notifies the status of minorities to a religion in India.

● Constitution has not defined the term minority neither laid down procedures to notify a community or religion as a minority community

○ However, article 29 recognizes religious and linguistic minorities while article 30 provides the right to establish and administer educational institutions maintained by them.

● Initially five religions viz. Muslims, Christians, Sikhs, Buddhists and Zoroastrians (Parsis) were notified as minorities by the Union government in 1993.

○ After that, Jain was notified as a minority community in 2014.

● Functions of the commission:

○ It evaluates the progress of the development of minorities across the country.

○ It monitors the working of the safeguards for minorities provided in the Constitution and in laws enacted by Parliament and the State Legislatures;

○ It looks into any complaint which is brought by anyone to it and takes suo-motto cognizance of any incident or act committed against minorities.

○ It ensures that the Prime Minister’s 15-Point Programme for the Welfare of Minorities is implemented and the programmes for minority communities are actually functioning.

○ It conducts studies, research and analysis on the issues relating to the socio-economic and educational development of minorities;

Constitutional Provision related to Minorities

● The Constitution of India does not specify the term 'minorities’, however, the Constitution recognizes only religious and linguistic minorities.

● Article 29 and Article 30 guarantee certain rights to the minorities.

○ Article 29 of the Indian Constitution protects the interests of the minorities by making a provision that any citizen/section of citizens having a distinct language, script or culture have the right to conserve the same.

■ It mandates that no discrimination would be done on the ground of religion, race, caste, language or any of them.

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○ Article 30 of the Indian Constitution states the right of minorities to establish and administer educational institutions.

■ It says: “All minorities, whether based on religion or language, shall have the right to establish and administer educational institutions of their choice.”

○ Article 350 B

■ There shall be a Special Officer for linguistic minorities to be appointed by the President.

■ It shall be the duty of the Special Officer to investigate all matters relating to the safeguards provided for linguistic minorities under the Constitution and report to the President upon those matters at such intervals as the President may direct.

■ The President shall cause all such reports to be laid before each House of Parliament, and sent to the Governments of the States concerned.

Source: PIB

Facts In News

Biodiversity and Environment

Niranjanpur wetland

Syllabus : GS 3/Environmental Pollution & Degradation

Context

Niranjanpur wetland in Dehradun has lost most of its fishes

Major Points

● Nearly 70 per cent of Uttarakhand’s wetlands have been destroyed over the years due to delayed conservation action.

○ A majority of them (816 of 994) are small wetlands of less than 2.25-hectare area.

○ They are undervalued for their small size despite their substantial numbers and environmental benefits.

About Niranjanpur wetland

● Niranjanpur wetland lies in a coveted real estate area of Dehradun city.

● It is home to flocks of birds, insects, tadpoles, small fishes and mammals.

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● It attracts tiny local birds to big migratory birds in winters.

● Common moorhen (jal murgi) swims in its water-pools, while the black kite preys across its waters.

● It also helps in groundwater recharge.

● Threat /Challenges :

○ The left-over construction material is dumped carelessly around the open pond.

■ After rainfall, the runoff water mixes with the concrete and sweeps directly into the pond, increasing siltation on its base.

○ Nutrient-rich wastewater from nearby areas gets channelised into the pond. It causes dense overgrowth of water hyacinth and algae (eutrophication), worsening the water quality and killing its fish.

○ Reduced rainfall and climate change have accelerated the rate at which the small wetland is drying up.

■ The parts that have dried up are being treated like a wasteland.

○ Niranjanpur pond also lacks a strongly defined boundary, paving the way for its encroachment

● Measures /Intiatives

○ In 2007, Dehradun’s city development plan decided to rejuvenate the pond as a Water Park to attract tourists. Under the Jawaharlal Nehru National Urban Renewal Mission, the plan proposed releasing Rs 0.88 crores in Phase I (2006-13).

■ But the plan did not translate into action.

● The wetland rules notified the setting up of the state wetland authority (SWA) in each state.

○ The SWA needs to prepare a comprehensive digital inventory of its wetlands to prioritise them for conservation.

● More suggestions

● All land records, including wetlands, should be digitally inventoried.

○ Once digital data on wetlands and their buffer zones are available to planners and the public, encroachment becomes difficult,

● The wetland’s eutrophication can be checked by cutting off the excess nutrient sources.

○ This can be followed by de-siltation, weeding and then aeration into the water.

● The revived wetland by development authorities must be handed over to a citizen’s group so that they can maintain and benefit from it

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What are the Wetlands?

● Wetlands are land areas, which are seasonally or permanently flooded with water.

○ The Ramsar Convention's definition for wetlands includes "areas of marsh, fen, peatland or water, whether natural or artificial, permanent or temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marine water the depth of which, at low tides, does not exceed six meters".

● Fishponds, rice paddies, and saltpans are human-made wetlands.

Wetlands in India

● India has nearly 4.6% of its land as wetlands, covering an area of 15.26 million hectares and has 42 sites designated as Wetlands of International Importance (Ramsar Sites).

● Wetlands are regulated under the Wetlands (Conservation and Management) Rules, 2017.

● The 2010 version of the Rules provided for a Central Wetland Regulatory

Authority but the 2017 Rules replaced it with state-level bodies and created a National Wetland Committee, which functions in an advisory role.

● The newer regulations removed some items from the definition of “wetlands” including backwaters, lagoons, creeks, and estuaries.

Source: DTE

Indian Economy

Index of Industrial Production (IIP)

Syllabus :GS 3/ Indian Economy & Related Issues

In News

The index of industrial production (IIP) grew 11.5% in July, driven by a contracted base.

What is the Index of Industrial Production (IIP)?

● The Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.

● In India, the first official attempt to compute the Index of Industrial Production

(IIP) was made much earlier than the first recommendation on the subject came at the international level.

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● With the inception of the Central Statistical Organization (now known as the National Statistics Office (NSO)) in 1951, the responsibility for compilation and publication of IIP was vested with it.

● Base year: 2011-2012

● Sources of data: The CSO uses secondary data to reach the monthly IIP number.

○ The data is sourced from various agencies in different ministries or departments of the government.

○ The Department of Industrial Policy and Promotion (DIPP) is the source for the major chunk of data for the calculation.

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