GS Analyst: Daily Current Affairs

Context:

The Prevention of Money Laundering Act (PMLA), 2002, is under scrutiny due to its broadened scope beyond its original focus on combating the laundering of drug money.

Background and Original Objective:

• Global Concerns: The enactment of the PMLA stemmed from international efforts to combat money laundering, particularly proceeds from drug trafficking, highlighted by UN resolutions and the establishment of the FATF.
• Focused Legislation: Initially, the PMLA primarily targeted the laundering of drug money, aligning with UN resolutions and FATF recommendations to tackle this specific aspect of money laundering.
• Parliamentary Enactment: The PMLA was enacted by India's Parliament under Article 253 to implement international conventions and decisions, with its scope confined to the subject matter of combating drug money laundering.

Expansion of Scope and Concerns:

• Inclusion of Diverse Offences: Over time, the PMLA schedule expanded to include various offences unrelated to its original purpose, such as those listed in the IPC or other special laws, deviating from its focus on drug money laundering.
• Uniform Application: The PMLA's stringent provisions, initially designed for drug traffickers, are now applied uniformly across all scheduled offences, including non-drug-related crimes like corruption under the Prevention of Corruption Act, 1988.
• Presumption of Guilt: The PMLA's bail provision (Section 45) reverses the presumption of innocence, requiring the accused to prove innocence for bail, leading to prolonged detention without trial and raising concerns about individual rights.

Context:

India implements a policy to promote domestic solar panel manufacturing and reduce reliance on imports, particularly from China, amid its ambitious renewable energy targets.

Need for Policy Implementation:

• Reducing Import Dependency: India aims to decrease its reliance on imported solar panels, particularly from China, which dominates about 80% of the global supply.
• Promoting Domestic Industry: The policy aims to boost the domestic solar panel manufacturing industry by certifying companies with approved manufacturing facilities, thereby enabling them to compete for government tenders.
• Meeting Renewable Energy Targets: India seeks to source 500 GW, nearly half of its electricity requirement, from non-fossil fuel sources by 2030, necessitating significant growth in solar power capacity.

Challenges and Considerations:

• Limited Domestic Capacity: India's domestic solar industry currently struggles to meet the demand for solar panels, requiring imports to fulfill installations.
• Competitive Pricing: Domestic manufacturers face challenges competing with cheaper Chinese imports, despite paying for government certification.
• Quality Assurance: While promoting domestic manufacturing, ensuring stringent quality checks is vital to maintain the affordability and reliability of solar power for consumers.

Context:

Jawaharlal Nehru's speech in the Lok Sabha on April 2, 1954, advocating for a nuclear standstill agreement and global disarmament, is being revisited for its significant impact on India's stance on nuclear issues.

Proposal for Nuclear Disarmament:

• Response to 'Castle Bravo' Test: Nehru's speech was prompted by the powerful 'Castle Bravo' thermonuclear test by the U.S., urging for a standstill agreement on nuclear testing amidst growing concerns over the dangers of nuclear proliferation.
• Incremental Approach: The standstill agreement proposed by Nehru took a pragmatic incremental approach towards disarmament, calling for an immediate testing moratorium, increased transparency on nuclear weapons' effects, and global recognition of the nuclear threat.
• Expanding the Discourse: Nehru's initiative expanded the discourse on disarmament beyond the limited UN Disarmament Commission, making it a global issue and putting pressure on nuclear states to recognize the dangers of their tests.

Moral Force and Global Significance:

• India's Moral Influence: Despite India's economic and military limitations in 1954, Nehru's speech emphasized India's moral force and its capacity to influence global disarmament discussions, highlighting the country's significance beyond material strength.
• Strategic Pragmatism: Nehru's stance on disarmament was driven by India's development needs and concerns over resource allocation, with the Atomic Energy Act providing a contingency plan for nuclear weapons development if required, demonstrating strategic foresight.
• Legacy and International Impact: Nehru's speech laid the groundwork for the Partial Test Ban Treaty (PTBT) and solidified norms against nuclear use, positioning India as a voice of reason and morality on the global stage, as reflected in its early signing of the PTBT in 1963.