International Relations

AUKUS Alliance

• GS 2
• Agreements Involving India &/or Affecting India’s Interests

In News

• Recently, the Australia, United States and United Kingdom alliance made an announcement to develop hypersonic missiles.

About

• They will work together via the security alliance known as AUKUS to develop hypersonic missiles. 
• It is a very fast system that cannot be intercepted by any current missile defence system.
• The move comes amid growing concern by the US and allies about China’s growing military assertiveness in the Pacific.

AUKUS Alliance

• Background:
  • The transfer of sensitive submarine technology by the U.S. to the U.K. is a sui generis arrangement based on their long-standing Mutual Defence Agreement of 1958. 
  • The AUKUS joint statement clearly acknowledges that trilateral defence ties are decades old, and that AUKUS aims to further joint capabilities and interoperability. 
    • The word “further” is key, since defence cooperation already exists. 
    • The other areas covered are cyber capabilities, artificial intelligence and quantum technologies, apart from undersea capabilities. 
• About: 
  • Based on a shared commitment of its three members to deepening diplomatic, security and defence cooperation in the Indo-Pacific to meet the challenges of the 21st century. 
  • Under it, the U.S., U.K will help Australia deploy nuclear-powered submarines in the Pacific region.
• Focus: 
  • On integrating all defence and security related science, supply chains, industrial bases and technology.
  • On protecting shared values and promoting security and prosperity in the Indo-Pacific region.

Significance of AUKUS Alliance 

• Novel Engagements:
  • It will involve a new architecture of engagements across emerging technologies such as artificial intelligence, quantum technologies, cyber capabilities, and additional undersea capabilities.
  • It will help Australia to acquire nuclear-powered submarines (SSNs) in cooperation with the UK & the US. 
  • It also reaffirms that, after Brexit, the US still wants the UK, and not the EU, engaged as its key military partner. 
• Containing China: 
  • Even though this has not been stated explicitly, AUKUS will contain the rise of China, particularly its rapid militarisation and aggressive behaviour in the Pacific region, especially in and around the South China Sea.
• Shifting US Priorities in Asia:
  • It also gives US focus for its post-Afghanistan tilt to Asia.
• Regional Security in the Indo-Pacific:
  • The AUKUS deal seeks to address core US concerns of regional security, deterrence, and balance of power in the Indo-Pacific. 
• Complementing QUAD:
  • It will enhance Australia’s contribution to its other partnerships, including the QUAD. The Quad and AUKUS are distinct, yet complementary. 

Challenges

• Increasing Rivalry with China
  • AUKUS will challenge China’s naval expansion and could hurt its commercial interests.
  • In such a scenario, their relations with China are going to deteriorate.
• Dissent in ASEAN
  • Any sudden accretion in Australia’s naval capabilities is bound to cause unease in the region. 
  • There is the matter of Association of Southeast Asian Nations (ASEAN) disunity over the emergence of AUKUS. 

Implications on India

• The pact allows India—a key US partner and Quad member—the freedom to set the terms of engagement with its neighbour, without formally participating in a China-containment initiative. 
• AUKUS is a broader coalition of countries in the Indo-Pacific region to deal with China. Any measure that boosts the capability of India’s partners is a welcome move.
• However, AUKUS could push China into assuming a more adventurous posture by deploying more warships and submarines in the Eastern Indian Ocean. 
• Thus, any miscalculated move could be detrimental to Indian interests.

Way Ahead

• India needs to display solidarity with its Quad partners, especially at a time when tensions with China are again rising.
• India should focus on close defence cooperation with strategically important nations without resorting to a security alliance.

Hypersonic Weapon

• About: 
  • The term “hypersonic” describes any speed faster than five times that of sound, which is roughly 760 miles (1,220 kilometres) per hour at sea level, meaning these weapons can travel at least 3,800 miles per hour.
  • They are manoeuvrable weapons that can fly at speeds in excess of Mach 5, five times the speed of sound. 
  • Most hypersonic vehicles primarily use scramjet technology. 
  • At hypersonic speeds, the air molecules around the flight vehicle start to change, breaking apart or gaining a charge in a process called ionisation.
• Types of hypersonic weapons:
  • There are two main types of these weapons:
    • Glide vehicles: They are launched from a rocket before gliding to their target, because of the challenges of achieving hypersonic propulsion of missiles.
    • Cruise missiles: They have engines called scramjets that use the air’s oxygen and produce thrust during their flight, allowing them to cruise at a steady speed and altitude.
• Significance of Hypersonic:
  • Unlike ballistic missiles, hypersonic weapons don’t follow a predetermined, arched trajectory and can manoeuvre on the way to their destination.
  • They are fast, low-flying, and highly manoeuvrable weapons designed to be too quick and agile for traditional missile defence systems to detect in time.
• Indian Initiatives: 
  • India operates approximately 12 hypersonic wind tunnels and is capable of testing speeds of up to Mach 13.
  • India is also developing an indigenous, dual-capable hypersonic cruise missile as part of its Hypersonic Technology Demonstrator Vehicle (HSTDV) program and successfully tested a Mach 6 scramjet in June 2019 and September 2020.

Scramjet

• A scramjet (supersonic-combustion ramjet) is a ramjet engine in which the airflow through the engine remains supersonic, or greater than the speed of sound. 
• Scramjet powered vehicles are envisioned to operate at speeds up to at least Mach 15.
• In the chamber, the air mixes with the fuel to ignite supersonic combustion but the cruiser’s flight will be at a hypersonic speed of Mach six to seven. So it is called supersonic combustion ramjet or Scramjet.

Ramjet engine

• It is a form of air-breathing jet engine that uses the engine’s forward motion to compress incoming air without an axial compressor or a centrifugal compressor.
• Ramjets work most efficiently at supersonic speeds around Mach 3 (three times the speed of sound) and can operate up to speeds of Mach 6.
• Ramjet powered missiles provide greater range and a higher average speed compared to missiles powered by solid propellants.

Source: IE

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Polity & Governance

Sutlej Yamuna Link Canal (SYL) Canal Dispute

• GS 2

In News

• The Haryana Assembly has passed a resolution seeking completion of the Sutlej Yamuna Link Canal (SYL) Canal, bringing back into focus the contentious issue of sharing of river waters between Haryana and Punjab.

About the Canal

• History: In 1982, then Prime Minister Indira Gandhi launched the construction of the SYL Canal with a groundbreaking ceremony in Kapoori village in Patiala district.
  • The issue dates back to 1966 at the time of reorganization of Punjab and formation of Haryana.
  • Punjab was opposed to sharing the waters of the two rivers with Haryana, citing riparian principles.
• A stretch of 214 km was to be constructed, out of which 122 km was to cross Punjab and 92 km in Haryana.
  • But the Akalis launched an agitation in the form of Kapoori Morcha against the construction of the canal.
• In July 1985, Prime Minister Rajiv Gandhi and then Akali Dal chief signed an accord agreeing for a new tribunal to assess the water.
• Significance of the Canal: The canal once completed will enable sharing of the waters of the rivers Ravi and Beas between the two states.

History of Water Allocation

• A decade before the formation of Haryana, the water flowing down Ravi and Beas was assessed at 15.85 million acre feet (MAF) per year.
• The Union government had organized a meeting in 1955 between the three stake-holders Rajasthan, undivided Punjab and Jammu and Kashmir and allotted 8 MAF per year to Rajasthan, 7.20 MAF to undivided Punjab and 0.65 MAF to J&K.
• A decade after reorganization, the Centre issued a notification allocating 3.5 MAF to Haryana out of the 7.2 MAF allotted to Punjab before reorganization.
• In a reassessment in 1981, the water flowing down Beas and Ravi was estimated at 17.17 MAF, of which 4.22 MAF was allocated to Punjab, 3.5 MAF to Haryana, and 8.6 MAF to Rajasthan.

Tribunal’s decision

• The Eradi Tribunal headed by the Supreme Court Judge was set up to reassess availability and sharing of water.
• In 1987, the tribunal recommended an increase in the shares of Punjab and Haryana to 5 MAF and 3.83 MAF, respectively.

Punjab’s argument

• Drying of the State: As per a state government study, many areas in Punjab may go dry after 2029.
• The state has already over-exploited its groundwater for irrigation purposes as it fills granaries of the Centre by growing wheat and paddy.
• As per reports, water in about 79% of the state’s area is over-exploited.
  • Out of 138 blocks, 109 blocks are “over-exploited”, two blocks are “critical” , five blocks are “semi-critical” and only 22 blocks are in the “safe” category.

Haryana’s Argument

• Water for irrigation: Haryana has been staking claim to the Ravi-Beas waters through the SYL Canal on the plea that providing water for irrigation was a tough task for the state.
• In southern parts: where underground water had depleted up to 1700 feet, there was a problem of drinking water.
• Haryana has been citing its contribution to the central food pool and arguing that it is being denied its rightful share in the water as assessed by a tribunal.

Supreme Court’s View point

• The President sought the Supreme Court’s opinion on the 2004 Act under Article 143 (1) of the Constitution. The court junked the 2004 law, terming it “unconstitutional”.
• The Supreme Court scrapped the Punjab Termination of Water Agreements Act, 2004 which unilaterally allowed Punjab to stop sharing Ravi, Beas waters with other States.
• Ever Since SYL has been a bone of contention between Haryana and Punjab.

Constitution Provision for River Water Sharing In India

• Water is a state subject as per entry 17 of State List with respect to water supplies, irrigation and canals, drainage and embankments, water storage and water power, subject to the provisions of Entry 56 of List 1.”
• Entry 56 of Union List gives power to the Union Government for regulation and development of inter-State rivers and river valleys.
• Article 262: Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, in any inter-State river or river valley.
• Article 143(1): Power of President to consult Supreme Court (1) If at any time it appears to the President that a question of law or fact has arisen, or is likely to arise, which is of such a nature and of such public importance that it is expedient to obtain the opinion of the Supreme Court upon it, he may refer the question to that Court for consideration and the Court may, after such hearing as it thinks fit, report to the President its opinion thereon.

Source: IE

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Art and Culture

Lingaraj Temple

• GS1
• Art and Culture
• Art Forms
• Literature
• Architecture

In News

• Recently, the Central government has questioned the legislative competence of the Odisha government to bring the 11th-century Lingaraj temple in Bhubaneswar under a special law. 

Ordinance by State Government

• The ordinance, approved by the Odisha government in 2020, aims to govern the Lingaraj Temple complex with a separate law akin to that of the Shree Jagannath Temple in Puri.
• The state government had proposed to bring the Lingaraj Temple and eight other shrines under the control and supervision of a 15-member committee with a senior Hindu IAS officer as its administrator like that of Shree Jagannath Temple. 
• At present, the Lingaraj Temple is governed by the Odisha Hindu Religious Endowment Act, 1951.

Centre’s Stand

• The Centre has also raised objections to various constructions near the shrine. It has cited that as per the AMASR Act, new construction is prohibited within 100 metres of a protected monument and the area within 200 metres of a monument is known as a regulated zone.
• Odisha Government  accused the Centre of adopting double standards while clearing projects under the Ancient Monuments and Archaeological Sites and Remains (AMASR) Act, which prohibits new construction within 100 metres of a protected monument.

Lingaraj Temple

• It was built during the 11th century AD.
• The temple has been described as “One of the finest examples of purely Hindu temples in India.
• Lingaraj is referred to as “Swayambhu” – (self-originated Shivling).
• The temple marks the culmination of the temple architecture in Bhubaneswar, Odisha which was the cradle of the Kalinga School of Temple Architecture.
• The sprawling temple complex has one hundred and fifty subsidiary shrines.
• The temples are considered a masterpiece of Indian Architecture for their detailed plan, proportions, seamless joints, elegant craftsmanship and impressive dimensions.
• The temple can broadly be divided into four main halls:
  • The Garbhagriha (Sanctum Sanctorum).
  •  The Yajana Mandapa (the hall for prayers)
  • The Natya Mandapa (dance and music hall)
  • The Bhoga Mandapa (where devotees can have the Prasad (offering) of the Lord).
• The exquisite carvings depicting chores of daily life, the activity centres, apart from being a place of worship, makes the temple a place for social and cultural gathering, somewhat like a modern community centre.

Kalinga Style of Architecture

• In Kalinga Architecture, basically a temple is made in two parts, a tower and a hall. The tower is called deula and the hall is called jagmohan.
• The walls of both the deula and the jagmohan are lavishly sculpted with architectural motifs and a profusion of figures.
• The most repeated form is the horseshoe shape, which has come from the earliest times, starting with the large windows of the chaitya-grihas. 
• It is the deul or deula which makes three distinct types of temples in Kalinga Architecture.
  • Rekha Deula, Pidha Deula and Khakhara Deula. 
  • The former two are associated with Vishnu, Surya and Shiva temples while the third is mainly with Chamunda and Durga temples.
  • The Rekha Deula and Khakhara Deula house the sanctum sanctorum while the Pidha Deula constitutes outer dancing and offering halls.
• Examples of Kalinga architecture: 
  • Rajarani temple, Bhubaneshwar; 
  • Jagannath Temple, Puri

Source: IE

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Indian Economy

Semicon India Project

• GS 3
• Mobilization of Resources
• Growth & Development

In News

• Recently, the Ministry of Electronics and Information Technology has formed an advisory committee of experts to carry forward the country’s vision of making India a global leader in semiconductor manufacturing, design and innovation.

Advisory Committee

• About:
  • The Committee is mandated to provide key inputs for building a resilient supply chain, promoting investments, financing mechanisms, global engagement, research & innovation, and IP generation for the semiconductors and display ecosystem and enable an ecosystem to support startups and MSMEs.
  • It will help the ISM executives achieve their goals in a systematic, efficient, and strategic manner. 
  • It shall also provide insights and suggestions to develop a sustainable semiconductor and Display ecosystem in India. 
•  Composition:
  • The 17-member committee of experts, comprises senior government officials, academicians as well as industry and domain experts.
• Functions 
  • It  shall also provide inputs to the government in order to enable the building of a resilient supply chain, promote investments and ways of financing the semiconductor sector, research and innovation as well as intellectual property generation.
  • It shall work on various ways to enable and develop an ecosystem for semiconductor and display fabrication as well as for startups and micro, small and medium scale industries.

Semicon India Programme

• About:
  • The Union Cabinet had approved the comprehensive Semicon India programme with a financial outlay of INR 76,000 crore for the development of a sustainable semiconductor and display ecosystem in 2021.
  • It has been set up as an Independent Business Division within Digital India Corporation having administrative and financial autonomy to formulate and drive India’s long term strategies for developing semiconductors and display manufacturing facilities and semiconductor design ecosystem. 
  • The Semicon India Program aims to provide attractive incentive support to companies / consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT) and Semiconductor Design.
  • This will serve to pave the way for India’s growing presence in the global electronics value chains. 
  • The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.
• Broad Components of Programme:
  • Semiconductor Fabs and Display Fabs: The Scheme for Setting up of Semiconductor Fabs and Display Fabs in India shall extend fiscal support of up to 50% of project cost on the pari-passu basis to applicants who are found eligible and have the technology as well as capacity to execute such highly capital intensive and resource incentive projects. 
    • It provides fiscal support to eligible applicants for setting up of Semiconductor Fabs which is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country.
  • Semi-conductor Laboratory (SCL): The Ministry of Electronics and Information Technology will take requisite steps for the modernization and commercialization of the Semi-conductor Laboratory (SCL).
  • Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT Units: The Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in India shall extend fiscal support of 30% of capital expenditure to approved units. 
  • Semiconductor Design Companies: Design Linked Incentive (DLI) Scheme offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. 
    • The scheme provides “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of ?15 Crore per application and “Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ?30 Crore per application.
• ‘Chips to start-ups’ programme:  
  • The “chips to start-ups” programme would develop 85,000 well-trained engineers.
  • Semiconductor designers would be given the opportunity to launch start-ups. 

Significance

• In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure. 
• India imports 100 % of chips from Taiwan, Singapore, Hong Kong, Thailand and Vietnam, so do other countries in the world.
• The supply has been disrupted as a result of the COVID-19 pandemic, which forced many production centres to close intermittently.
  • Development of the semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain. 
• The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.
• The approved program will propel innovation and build domestic capacities to ensure the digital sovereignty of India.
•  It will also create highly skilled employment opportunities to harness the demographic dividend of the country.
• The approved programme will propel innovation and build domestic capacities to ensure the digital sovereignty of India. 

Challenges Associated

• The Mission  is highly dependent on Research and Development (R&D) and Intellectual Property (IP) protection, and hence extremely expensive. 
• Fabrication plants are highly capital-intensive due to ever-changing innovations in manufacturing abilities and reliance on specific equipment and chemicals. 
• Lack of uninterrupted power and water supply, and lack of long-term stable policies are significant impediments for the private industries to set up fabrication plants in India.
• India has a decent chip design talent but it never built up chip fab capacity.
• India’s ambitions towards self-sufficiency might be along similar lines, but there is a stark difference between the positions of those countries and India. The US, Japan, Taiwan, and South Korea already hold a major share of the production market at various stages of semiconductor manufacturing and have an advantage over the others, India’s current manufacturing capacity is not big enough to compete with the existing players.

What is Semiconductor?

• A semiconductor is a material product usually composed of silicon, which conducts electricity more than an insulator, such as glass, but less than a pure conductor, such as copper or aluminium. Their conductivity and other properties can be altered with the introduction of impurities, called doping, to meet the specific needs of the electronic component in which it resides. 
• Also known as semis, or chips, semiconductors can be found in thousands of products such as computers, smartphones, appliances, gaming hardware, and medical equipment.
• These devices find widespread use in almost all industries especially in the automobile industry
• Semiconductor chip: A semiconductor chip is an electric circuit with many components such as transistors and wiring formed on a semiconductor wafer. An electronic device comprising numerous of these components is called an “integrated circuit (IC)”. 
  • Electronic parts and components today account for 40% of the cost of a new internal combustion engine car, up from less than 20% two decades ago. Chips account for a bulk of this increase.

Source:IE

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Polity & Governance

Electoral Bond Scheme

• GS 2
• Government Policies & Interventions
• Transparency & Accountability

In News

• Chief Justice of India N V Ramana has assured petitioners that the Supreme Court will take up for hearing a pending plea challenging the Electoral Bond Scheme, 2018. 
  • Two NGOs — Common Cause and Association for Democratic Reforms (ADR) — have challenged the scheme, alleging that it is “distorting democracy”. 

Electoral Bonds Scheme

• Features:
  • Introduced with the Finance Bill, 2017, the Electoral Bond Scheme was notified on January 29, 2018.
  • Electoral bonds is an instrument through which anyone can donate money to political parties
  • It is like a promissory note that may be purchased by a person who is a citizen of India or incorporated or established in India. 
  • A person being an individual can buy Electoral Bonds, either singly or jointly with other individuals. 
  • The bonds are like banknotes that are payable to the bearer on demand and are interest-free
  • There is no limit on the number of bonds an individual or company can purchase.
  • The bonds that are not encashed by a party within 15 days are deposited by the SBI into the Prime Minister’s Relief Fund.
• Conditions : 
  • Any party that is registered under section 29A of the Representation of the Peoples Act, 1951 (43 of 1951) and has secured at least one per cent of the votes polled in the most recent General elections or Assembly elections is eligible to receive electoral bonds. 
  • The party will be allotted a verified account by the Election Commission of India (ECI) and the electoral bond transactions can be made only through this account.
  • The electoral bonds will not bear the name of the donor. Thus, the political party might not be aware of the donor’s identity.
• Procedure
  • The State Bank of India (SBI) has been authorised to issue and encash Electoral Bonds through its 29 Authorised Branches.
  • The bonds are sold by the SBI in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore.
  • One can purchase these bonds only digitally or through cheques.
  • The Electoral Bonds can be encashed by an eligible Political Party only through a Bank account with the Authorised Bank.
  • The Electoral Bond deposited by an eligible Political Party in its account is credited on the same day.
  • Electoral Bonds shall be valid for fifteen calendar days from the date of issue and no payment is being made to any payee Political Party if the Electoral Bond is deposited after expiry of the validity period. 

Benefits of Electoral Bonds

• More Transparency: It helps the political parties to operate in a more transparent manner with the election commission, regulatory authorities and the general public at large.
• Ensures Accountability: Donations through Electoral Bonds will only be credited in the party bank account disclosed with the ECI. As encashment of all the donations are through banking channels, every political party shall be obliged to explain how the entire sum of money received has been expended.
• Discouraging Cash: The Purchase will be possible only through a limited number of notified banks and that too through cheque and digital payments. Cash will not be encouraged. 
• Maintains Anonymity: The individuals, groups of individuals, NGOs, religious and other trusts are permitted to donate via electoral bonds without disclosing their details. Therefore, the identity of the donor is being preserved. 

Challenges for Electoral Bonds

• Hindering Right to Know: Voters will not know which individual, company, or organisation has funded which party, and to what extent. Before the introduction of electoral bonds, political parties had to disclose details of all its donors, who have donated more than Rs 20,000. The change infringes the citizen’s ‘Right to Know’ and makes the political class even more unaccountable.
• Shallow Anonymity: Anonymity does not apply to the government of the day, which can always access the donor details by demanding the data from the State Bank of India (SBI). This implies that the only people in the dark about the source of these donations are the taxpayers.
• Unauthorised Donations: In a situation where the contribution received through electoral bonds are not reported, on perusal of the contribution report of political parties, it cannot be ascertained whether the political party has taken any donation in violation of provision under Section 29B of the RPA, 1951 which prohibits the political parties from taking donations from government companies and foreign sources.
• Leading to Crony-Capitalism: It could become a convenient channel for businesses to round-trip their cash parked in tax havens to political parties for a favour or advantage granted in return for something. Anonymous funding might lead to infusion of black money.
• Loopholes: Corporate Entities may not enjoy the benefit of transparency as they might have to disclose the amount donated to the Registrar of Companies; Electoral bonds eliminate the 7.5% cap on company donations which means even loss making companies can make unlimited donations etc.

Supreme Court’s Stance on Electoral Bonds

• The Supreme Court (SC) agreed that the scheme protects the identity of purchasers of electoral bonds in a cloak of anonymity, but highlighted that such purchases happened only through regular banking channels.
• In 2019, the Supreme Court asked all the political parties to submit details of donations received through electoral bonds to the ECI. It also asked the Finance Ministry to reduce the window of purchasing electoral bonds from 10 days to five days.
• The Election Commission of India (ECI) also told the Supreme Court of India that while it was not against the Electoral Bonds Scheme, it did not approve of anonymous donations made to political parties.

Election Commission’s stand on electoral bonds

• The Election Commission, in its submission to the Standing Committee on Personnel, Public Grievances, Law and Justice in May 2017, had objected to the amendments in the Representation of the People (RP) Act, which exempt political parties from disclosing donations received through electoral bonds.
•  It described the move as a “retrograde step”. In a letter written to the Law Ministry the same month, the Commission had even asked the government to “reconsider” and “modify” the above amendment.
• The Election Commission on April 10, 2019 told the Supreme Court of India that while it was not against the Electoral Bonds Scheme, it did not approve of anonymous donations made to political parties.

Reserve Bank of India on electoral bonds scheme

• According to an article published by HuffPost India on November 18, 2019, the RBI was critical of the scheme. The central bank had warned the government that the bonds would “undermine the faith in Indian banknotes and encourage money laundering.”

Way Forward

• The government may reconsider and modify certain provisions of the Electoral Bonds Scheme to ensure full disclosure and transparency.
• At the same time, the bonds should ensure that the funds being collected by the political parties are accounted for clean money from the appropriate channels without any obligation of give and take.

Source:IE

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Internal Security

Tour of Duty Scheme

• GS 2

In News

• The three-year short service or ‘Tour of Duty’ for youth in the armed forces is likely to be announced soon.

What is a Tour of Duty?

• Meaning: It means hiring a youth in the armed forces for a short span of 3-5 years.
• The idea of hiring jawans on a three-year contract was first floated in 2020.
  • The idea was the brainchild of late Chief of Defence Staff, General Bipin Rawat.
• The Indian Army will be the first of the three armed forces to recruit some soldiers for a fixed period of three years.
• Around 25% of them would serve in the Army for three years and 25% troops would serve for five years.
  • The remaining 50% would continue to serve in the Army for the full term till they reach their retirement age.
• Proposal states that 50% of soldiers released at the end of three and five years will be included in the National Pension Scheme.
  • Such soldiers will be given certain medical benefits, applicable to Armed Forces veterans, for a fixed period.

Background

• It started during World War II when the British realized that they needed far more officers than those who could be commissioned from either Sandhurst or the JSW (Joint Services Wing).
• These officers came on a contract for five-10 years and could be later converted to a permanent commission.
  • This was done till the end of World War II.
• In 1962 during the Indo-China War, the Emergency Commission was reopened and based on the increasing requirement of the officers, Officers Training School (OTS) in Chennai was opened, which granted short-service commissions to five-10 years.

Models for recruitment

• The Army is considering two different models for recruitment in the future:
  • One under which youth can voluntarily serve in the Army for a temporary period of three years, and
  • The other where they are recruited by Central Armed Police Forces (CAPFs), trained and posted in the Army for about seven years, before being transferred back.
• The first model, of three years’ service, is called ‘Tour of Duty’, while the other is called ‘Inverse Induction’.
• Currently, the only option apart from regular permanent commission into the armed forces is the short service commission, in which officers are recruited for a period of 14 years.

Significance of this move

• Reduction in defence pensions: It is a move towards reducing the burgeoning pension bill as well as revenue expenditure in terms of salaries and other costs.
  • The cost of a jawan, with his training and other expenses, would come down to Rs 80-85 lakh, which would help in releasing funds for military modernisation.
• Plugging shortages: The defence establishment is hoping that the Tour of Duty scheme will help in resolving the issue of lack of manpower in the Indian Army.
  • This is significant in the current climate where the nation is facing a serious threat from China as well as Pakistan at the borders.
• Attractive and prime recruit: A young man who would retire as a ToD jawan would be a very attractive and prime recruit for the government sector and corporates.
• Technology Up gradation: Students from prestigious institutes like IITs who are highly technical will be attracted to the Army for a short period to help them expand the technology in the Army.
• It is an opportunity for India’s youth: to experience military life without having to join the armed forces on a long-term basis.

Source: TOI

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Facts in News

Asian Development Bank Outlook Report

• GS 2
• International Organisations & Groupings

In News 

• Recently, Asian Development Outlook (ADO) 2022 was released .

Major Findings

• Asian Development Bank projected a seven per cent collective growth for South Asian economies in 2022 with the sub-region’s largest economy India growing by 7.5 per cent in the current fiscal year before picking up to eight per cent the next year.
  • The ADB has factored in the Russia-Ukraine confict’s implications for India, which would be largely indirect through higher oil prices, and has assumed that the severity of the COVID-19 pandemic would subside with a rise in vaccination rates. 
• Developing Asia’s economies are predicted to grow by 5.2 per cent this year and 5.3 per cent in 2023 due to a robust recovery in domestic demand and continued expansion in exports.
  • Developing Asia comprises 46 member countries of ADB by geographic group: the Caucasus and Central Asia, East Asia, South Asia, Southeast Asia and the Pacific.
  • South Asia comprises Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
• Challenges
  • Inflation will accelerate and the current account deficit will widen due to the surge in global oil prices.
  • Mobilising resources was particularly challenging for the State governments and improving their fiscal resources was critical for India’s sustained and inclusive growth.
• Suggestions 
  • Governments in the region will need to remain vigilant and prepared to take steps to counter these risks. 
  • Monetary authorities should also continue to monitor their inflation situation closely and not fall behind the curve.
  • The region’s economies urgently need to mobilise fiscal resources to restore the health of public finances and build a more inclusive and sustainable future.
  •  Strengthening personal income and property taxes can raise additional revenue and make tax systems more progressive.
  •  Significant opportunities exist to expand the use of tax and other fiscal instruments to tackle environmental and health priorities while raising revenue.

Asian Development Bank (ADB)

• About: It is a regional development bank established on 19th December 1966.The ADB was modelled closely on the World Bank.
• Headquarters: Manila, Philippines.
• Members: 68 members, 49 from within Asia.
  • Japan holds the largest proportion of shares in ADB followed by the USA, because Japan is one of the largest shareholders of the bank, the president has always been Japanese.

• ADB is an official United Nations Observer.
• ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
• Aim: To promote social and economic development in Asia.
  • It is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.

Source:TH

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Facts in News

Chartered Accountants, Cost and Works Accountants and Company Secretaries (Amendment) Bill

• GS 2
• Government Policies & Interventions

In News 

• Recently, the Parliament has passed the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2022 .

Major Feature 

• The Bill seeks to amend the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980. 
  • It changes the disciplinary mechanism under the three Acts and specifies timelines for disciplinary proceedings.  
• It also provides more external representation on the Board of Discipline and Disciplinary Committee.  
• Coordination Committee: 
  • The Bill creates a Coordination Committee headed by the Secretary of the Ministry of Corporate Affairs.  
  • The Committee will have representation from the three Institutes formed under the Acts.
• Head of the Council:  
  • The Secretary to each Council will be designated as chief executive with the President as the head of the Council.  
  • The President will be responsible for ensuring implementation of decisions of the Council.
• Fines: 
  • The Bill increases certain fines under the three Acts.  If a partner or owner of a firm is repeatedly found guilty of misconduct during the last five years, disciplinary action can be taken against the firm.
• Registration: 
  • The legislation also adds that firms must register with the Institutes by making an application to the respective Councils of the Institutes.
  • The Councils must maintain a register of firms containing details such as pendency of any actionable complaint or imposition of penalty against the firms. 
• Significance: 
  • The bill will bring the required level of accountability and greater transparency. 
  • This bill will improve the administrative and governance mechanism and also help in ease of doing business.
• Criticism: 
  • Objections have been raised over the several provisions of the bill saying that absence of clearly defined parameters coupled with government presence within the Institutes would set dangerous precedents for obscure and intrusive functioning.
  •  The bill seems to curtail the role of professionals and elected representatives of governing councils in each of the Institutes.
  •  The bill makes provision for a non Chartered Accountant as Presiding Officer of the disciplinary committee which could hamper the professional function of the committee. 
  • The mandate of the proposed Coordination Committee may overlap with certain functions of the three Institutes.  
    • Further, being chaired by the Secretary of the Ministry of Corporate Affairs, it may impinge on the independence of the three Institutes. 

Source:BS

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Facts in News

Countercyclical Capital Buffer

• GS 3
• Indian Economy & Related Issues

In News

• The Reserve Bank of India said it has decided not to activate the countercyclical capital buffer at this point in time as it is not required.

About Countercyclical capital buffer

• Background: 
  • The RBI had proposed the CCCB for Indian banks in 2015 as part of its Basel-III requirements; it hasn’t actually required the CCCB to be maintained, keeping the ratio at zero percent ever since.
    • Basel III is an internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09. The measures aim to strengthen the regulation, supervision and risk management of banks.
  • This is based on the RBI’s review of the credit-GDP gap, the growth in GNPA, the industry outlook assessment index, interest coverage ratio and other indicators, as part of the first monetary policy of every financial year.
• Meaning:
  • Following Basel-III norms, central banks specify certain capital adequacy norms for banks in a country.
  • The CCCB is a part of such norms and is calculated as a fixed percentage of a bank’s risk-weighted loan book.
  • The CCCB is supposed to be in the form of equity capital, and if the minimum buffer requirements are breached, capital distribution constraints such as limits on dividends and share buybacks can be imposed on the bank.
• Significance:
  • Creating a buffer: It requires banks to build up a buffer of capital in good times, which may be used to maintain the flow of credit to the real sector in difficult times.
  • Restricting indiscriminate lending: It achieves the broader macro prudential goal of restricting the banking sector from indiscriminate lending in periods of excess credit growth that have often been associated with the building up of system-wide risk.

Source: FE

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Facts in News

QS World University Rankings

• GS 2
• Education

In News 

• The QS World University Rankings 2022 were released recently .
  • Five IITs, two IIMs, Jawaharlal Nehru University and Delhi University are among the 16 higher education institutes in India that collectively offer 35 programmes which globally rank among the top 100 in their respective subject categories.

About QS Rankings

• Quacquarelli Symonds(QS)is a UK Based think-tank .
• The QS World University Rankings is an annual publication of university rankings which comprises the global overall and subject rankings (which name the world’s top universities for the study of 51 different subjects 
• It is the most-widely read university rankings in the world.
• It currently leads the higher education industry with consistent innovation and growth, progressively affecting the way students and institutions engage. 
• The QS rankings provide methodical evaluations of key areas of higher education institutions, ultimately offering potential students expert advice proven to align students with their chosen path.
• Indicators: 
  • QS uses a number of academic indicators by which to measure institutions, depending on the specific ranking in question. These include:
    • Academic Reputation – A score based on the reputation of an institution.
    • H Index – An index that attempts to measure both the productivity and impact of the published work of a scientist or scholar.
    • Citations per Faculty – Citations, evaluated in some fashion to take into account the size of the institution, are the best understood and most widely accepted measure of research strength.
    • Staff with PhDs – The indicator is based on a simple proportion of each institution that holds a PhD or equivalent terminal degree.

Source:IE

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