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26th July 2024 (8 Topics)

26th July 2024

Mains Issues

Context

In a landmark judgment, the Supreme Court of India has upheld the rights of state governments to levy taxes on land bearing minerals, resolving a longstanding jurisdictional conflict between the Union government and states. This decision has significant implications for the mining sector and federal relations in India.

Key Points Made by the Supreme Court:

  • States Can Tax Minerals: The Supreme Court ruled that states have the right to tax minerals. This is particularly beneficial for states rich in minerals, as it allows them to earn more revenue.
  • Difference Between Royalty and Tax: The court explained that royalty (money paid for extracting minerals) is not the same as a tax. A tax is collected by the government for public use, while royalty is like rent for using the minerals.
  • No Legal Barrier: The court clarified that there is no law preventing states from taxing mineral rights.

Why does this Decision matter?

  • Benefits Mineral-Rich States: States like Jharkhand and Chhattisgarh, which have many minerals, can now earn more money. This is especially important for poorer states.
  • Fairness: Different states have different resources. Coastal states benefit from the sea, and hilly states earn from tourism. Allowing states to tax minerals makes things fairer.
  • Additional Revenue: States have limited ways to collect taxes. This decision gives them another way to generate income.

Concerns:

  • Imbalance Between States: States without minerals might feel disadvantaged. The central government could find other ways to support these states to maintain fairness.
  • Impact on Mining Companies: Mining companies are worried they will have to pay more money due to the new taxes.

States should be careful not to charge too much tax. Overcharging could harm the mining business.

Fact Box: Royalties

  • Royalties refer to the fees paid to the owner of a product in exchange for the right to use that product.
  • Royalties are based on specific contracts or agreements between the mining leaseholder and the lessor (the person who leases the property) who can even be a private party.
  • Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDRA) requires those who obtain leases to conduct mining activities to “pay royalty in respect of any mineral removed” to the individual or corporation who leased the land to them.
  • Under the State List, states are given the exclusive power to make laws relating to “Taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development” (Entry 50).

Mains Issues

Illegal coal mining remains a significant issue in India, leading to severe consequences, including worker fatalities and environmental degradation. Despite national legislation governing coal mining, illegal activities continue to thrive, driven by economic, social, and regulatory factors.

Underlying Reasons for the Prevalence of Illegal Coal Mining:

Socio-Economic Factors

Political Factors

Regulatory Factors

  • Poverty and Unemployment: Many areas rich in coal are also plagued by poverty and high unemployment rates. The local population often resorts to illegal mining to sustain their livelihoods.
  • Local Dependence: Communities in coal-rich regions depend heavily on mining for economic survival, especially after the exhaustion of legal mining operations.
  • Tacit Support: Illegal mining often receives tacit support from local political leaders, making it challenging to curb these activities.
  • Lack of Enforcement: Political patronage can lead to weak enforcement of mining regulations, allowing illegal mining to flourish.
  • Inadequate Monitoring: Remote and isolated mining areas often suffer from inadequate monitoring, leading to ineffective enforcement of laws.
  • Weak Enforcement: The complexity of the legal framework governing mining can result in bureaucratic hurdles and inefficiencies, allowing illegal activities to persist.

Impact of Illegal Coal Mining:

  • Worker Safety: Lack of safety equipment and protocols exposes workers to severe health risks, including respiratory issues and toxic gas inhalation.
  • Hazardous Conditions: Illegal mines lack proper structural support, making them prone to cave-ins, landslides, and explosions.
  • Environmental Degradation: Unregulated mining activities lead to significant environmental damage, affecting local ecosystems and communities.
  • Economic Impact: Illegal mining undermines legal mining operations and leads to substantial revenue losses for the government.

Required Measures

  • Strengthening Regulatory Frameworks: The government must improve monitoring and enforcement of mining regulations in remote areas. It will enhance resources and capacity for regulatory agencies to effectively manage mining activities.
  • Socio-Economic Development: Poverty and unemployment should be addressed in coal-rich regions through targeted economic development programs. Support alternative livelihoods to reduce dependence on illegal mining.
  • Training and Safety Protocols: Government should implement comprehensive training programs for miners on safety procedures and emergency response. Ensure that safety equipment and protocols are enforced in all mining operations.
Fact Box: Coal Mining in India

India has the 4th largest coal reserves in the world, with significant deposits located in the eastern and central parts of the country, particularly in Jharkhand, Chhattisgarh, Odisha, West Bengal, Madhya Pradesh, and Andhra Pradesh.

India's coal production reached 893.19 million tonnes in 2022-23. For 2023-24, production increased to 997.25 million tonnes, achieving an 11.65% growth.

The coal sector contributes over Rs. 70,000 Crore annually to the central and state governments through royalties, GST, and other levies.

Prelims Articles

Jharkhand Assembly Speaker's Tribunal disqualified two legislators under anti-defection law.

About Anti-Defection Law

  • The Tenth Schedule of the Indian Constitution, introduced by the 52nd Amendment in 1985, addresses the issue of political defections.
  • This Schedule was enacted to combat the instability caused by legislators defecting from their parent parties, which had undermined the democratic process and governance stability in India during the 1960s and 70s.

Key Provisions

  • Disqualification Grounds:
    • Voluntary Defection: A member of a House of Parliament or State legislature can be disqualified if they voluntarily give up the membership of their political party.
    • Violation of Party Whip: Members can also be disqualified if they vote against the instructions of their party as issued by the party whip.
  • Role of the Whip: A whip is appointed by the political party to ensure party discipline and adherence to party directives during votes in the legislature.
  • Exceptions:
    • Para 3 (Omitted in 2003): Originally allowed one-third of the members of a legislature party to split and form a separate group without facing disqualification.
    • Para 4: Permitted the merger of a political party with another party if approved by two-thirds of its legislature party members. This exception still stands.
  • Role of the Speaker: The authority to decide on disqualification issues lies with the Speaker of the House.

Prelims Articles

Context

The government introduced the ‘Model Skill Loan Scheme’ in New Delhi. This initiative aims to address a significant barrier for students seeking advanced skill training: the financial cost.

About the Scheme

  • The Model Skill Loan Scheme aims to empower India’s future workforce by providing financial support for advanced-level skill courses.
  • This scheme targets 25,000 youth across the country, ensuring they have access to necessary upskilling opportunities.
  • Key Features:
    • Increased Loan Amount: The scheme has significantly raised the loan limit from ?1.5 lakh to ?7.5 lakh. This increase is intended to cover the higher fees associated with advanced skill courses, making education more accessible.
    • Expanded Financial Institutions: The scheme now includes several Non-Banking Financial Companies (NBFCs), scheduled banks, and rural banks. This broader inclusion aims to make the loan application process more accessible and less cumbersome for students.
    • Focus on Advanced Skill Courses: By targeting advanced-level training, the scheme addresses a crucial gap. Many high-quality skill courses come with steep fees, which can be a barrier for deserving students. The Model Skill Loan Scheme seeks to bridge this gap by offering substantial financial support.

Prelims Articles

Context

A recent study published in Nature Medicine suggests that getting vaccinated against shingles may help delay the onset of dementia. Shingles, a painful condition more common in older adults, is caused by the reactivation of the herpes zoster virus, which also causes chickenpox.

What is Shingles?

  • Cause: Shingles is caused by the varicella-zoster virus (VZV), the same virus responsible for chickenpox.
  • Symptoms: It typically appears as a painful, itchy rash on one side of the body, often in a single stripe of blisters. Shingles can also lead to severe complications like long-term nerve pain called postherpetic neuralgia (PHN).
  • Risk: The virus remains in the body after a chickenpox infection and can reactivate later in life to cause shingles.
  • Vaccines:
    • Zostavax: An older vaccine introduced about 18 years ago.
    • Shingrix: A newer vaccine increasingly used, particularly in the UK.

What Is Dementia?

  • Dementia is a term for a decline in memory, language, problem-solving, and other cognitive abilities severe enough to interfere with daily life.
  • Symptoms: It involves a decline in thinking skills, behavior changes, and impacts on relationships and daily functioning.
  • Types of Dementia:
    • Alzheimer's Disease: Accounts for 60-80% of dementia cases. It is characterized by progressive memory loss and cognitive decline.
    • Vascular Dementia: Caused by microscopic bleeding and blockages in the brain's blood vessels.
    • Mixed Dementia: Involves brain changes associated with multiple types of dementia simultaneously.
    • Other Conditions: Some conditions, such as thyroid problems and vitamin deficiencies, can cause symptoms of cognitive impairment but are not classified as dementia.

Editorials

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Context

Prime Minister Narendra Modi's visit to Russia, his first bilateral trip in the current tenure of the government, has drawn significant attention and criticism from the United States and Europe, as well as the President of Ukraine. The visit highlights the ongoing strategic and diplomatic recalibration in light of the conflict in Ukraine and India's positioning in global geopolitics.

Assessment of the Conflict in Ukraine

  • Timing and Significance: Modi’s visit to Russia, two years after the Ukraine war began, reflects a shift in New Delhi’s assessment of the conflict's progression and Russia's resilience.
  • Conflict Dynamics: Despite initial setbacks, Russia now appears to be maintaining its territorial gains in eastern Ukraine, influencing India’s stance on the conflict.
  • Diplomatic Positioning: India’s abstention from UN votes criticizing Russia and the joint statement language indicates a subtle acceptance of Russia's position and a strategic calculation in maintaining bilateral ties.

Geopolitical Signalling

  • China-Russia Relations: By prioritizing his visit to Moscow over attending the SCO Summit with Xi Jinping, Modi signals India's strategic choice to balance relations with Russia amid tensions with China.
  • Western Alignments: The visit underscores India's concerns over U.S. actions in forming exclusive strategic groups like AUKUS and the Quad Plus, highlighting India's desire for greater autonomy in its foreign policy.
  • Indo-Pacific Strategy: India’s engagement with Russia serves as a reminder of its options beyond western alliances, emphasizing the importance of maintaining a multipolar diplomatic approach.

Geo-economic Thrust

  • Trade Dynamics: The visit focuses on strengthening economic ties, particularly through discounted oil imports and potential circumvention of western sanctions to sustain trade growth.
  • Energy Cooperation: Agreements to enhance energy supplies and mutual investments, such as the Chennai-Vladivostok maritime corridor, aim to address trade imbalances and boost economic cooperation.
  • Strategic Investments: With significant investments in each other’s oil sectors and potential new deals, India and Russia are leveraging geo-economic strategies to reinforce their bilateral relationship amid global uncertainties.

UPSC Mains Question

Q. How does India's engagement with Russia in the context of the ongoing conflict in Ukraine reflect India's broader foreign policy objectives and its stance on international relations?

Editorials

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Context

The upcoming Olympic Games in Paris, commencing this Friday, mark the latest edition of this global sporting event, distinguished by the absence of the COVID-19 constraints that affected 'Tokyo 2020'. This iteration, however, comes amidst global turmoil, with Russia banned due to its war actions and individual Russian athletes competing under a neutral banner. Despite some dissent over Israel's participation, the Games promise a diverse and competitive field.

Global Participation

  • Competitive Spirit: The Olympics bring together countries ranging from superpowers like the U.S. and China to smaller nations like Fiji, highlighting the universal appeal and level playing field of the event.
  • Athletic Prestige: Participation grants athletes the prestigious title of Olympian, and winning medals further elevates their status, underscoring the honor and recognition tied to the Games.
  • Economic Impact: Paris and France face economic challenges despite the soft power boost from hosting, with some local resistance reflecting concerns over the event's financial implications.

Highlights and Challenges

  • Star Athletes: The participation of notable athletes like Rafael Nadal and Carlos Alcaraz exemplifies the enduring allure of the Olympics, showcasing both established legends and emerging stars.
  • Diverse Events: The inclusion of breakdancing indicates the growing intersection of sport and entertainment, appealing to a broader audience and reflecting cultural shifts.
  • Security and Health: With security being a paramount concern due to past incidents and the recent COVID-19 cases among athletes, the organizing committee must ensure the safety and health of all participants and attendees.

Mains Question

Q. Discuss the multifaceted impact of hosting the Olympic Games on a country, considering economic, cultural, and political dimensions. How can these impacts be balanced to ensure a positive outcome for the host nation?

Editorials

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Context

The Karnataka Reservation Bill, mandating 50% and 70% reservations in management and non-management categories respectively for local candidates, has generated widespread controversy and criticism, prompting the State government to pause and issue reassurances. The Bill highlights the deeper issues of India's job crisis and regional socio-economic disparities.

Economic Growth and Employment Disparities

  • Delinked Growth: India's high-end services-led growth model has not generated sufficient employment, leading to an economic environment where capital and a small set of highly-skilled individuals benefit disproportionately.
  • Global Trends: The global trend of economic disparities manifests in India as regionalism and a backlash against inter-State migration, contrasting with immigration debates in developed countries.
  • Constitutional Concerns: While local reservations evoke parochialism and challenge national unity, they also reflect State political leadership's response to local electorate demands.

Federalism and Political Accountability

  • Unskilled Migration: Large-scale unskilled migration is often distress migration due to inadequate regional development, highlighting the lack of political accountability for development.
  • Industry Preferences: Industries prefer migrant workers for unskilled jobs due to their lower likelihood of unionizing, leading to job displacement for locals and depressed local wages.
  • Accountability and Development: Addressing political accountability for underdevelopment and ensuring fair working standards for unskilled labor are crucial for resolving underlying issues.

Path Forward

  • National Debate: A comprehensive national debate involving political, corporate, and civil society stakeholders is needed to address India's job crisis beyond simplistic solutions and regionalism.
  • Political and Institutional Responses: Enhancing political accountability for development and addressing federalism and national unity issues require both institutional responses, such as revitalizing the National Development Council, and political maturity.
  • Corporate Responsibility: The corporate sector must be held accountable for labor standards, preventing exploitation of unskilled workers and ensuring fair wages.
Mains Question

Q. How can India address its underlying job crisis and socio-economic disparities to ensure balanced growth and social cohesion?

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