GS Analyst: Daily Current Affairs

Context:

Mutual Benefit of collaborations between industry and academia.

Challenges in Industry-Academia Collaboration

• Evolution of Shared Goals: HEIs prioritize education and theoretical knowledge, while industries focus on practical applications and profitability. Aligning shared goals requires open dialogue and flexibility.
• Cultural Differences: HEIs often seek academic rigor, while industries prioritize practical outcomes. Bridging this cultural gap demands refinement of findings into practical recommendations for industries.
• Communication and Training: Effective channels for communication and training programs are essential. Understanding industry regulations and language enhances collaboration between HEIs and industries.

Trust Building in Collaborations

• IPR Arrangements: Agreeing on mutually beneficial Intellectual Property Rights (IPR) arrangements builds trust. Fast-tracking prototype development and signing nondisclosure agreements address concerns about commercial implications.
• Confidentiality Measures: Clear delineation of results earmarked for academic publications and those kept confidential ensures trust. Nondisclosure agreements safeguard sensitive information shared during collaboration.
• Symbiotic Relationship: HEIs and industries must develop a symbiotic relationship. Short-term collaborations address immediate industry problems, while long-term partnerships involve students in cutting-edge research projects.

Types of Collaborations for HEIs

• Short-Term Collaborations: Colleges with minimal research facilities can engage in short-term collaborations, providing quick solutions to local industries' technical problems and benefiting both parties.
• Long-Term Research Collaborations: Universities with advanced research facilities partner for long-term collaborations. Such partnerships develop cutting-edge technologies and offer students internship opportunities to navigate real-world challenges.
• Inter-University Collaborations: Industries in specific domains should collaborate with research groups across universities to stay updated on new developments and advancements in their domain.

Context:

The last leg of the Silkyara Tunnel rescue in Uttarakhand involved rat hole mining.

Overview of Rat Hole Mining

• Types of Rat Hole Mining: Rat Hole mining involves side cutting on hill slopes or box cutting in pits, where workers manually extract coal in tunnels resembling octopus tentacles.
• Land Ownership and Government Control: In Meghalaya, the Coal Mines Nationalisation Act doesn't apply, leaving landowners as mineral owners. Labor-intensive rat hole mining surged due to terrain challenges and low expenses.
• Dangers and Adverse Impacts: Rat hole mining poses risks like asphyxiation, collapses, and flooding. Its unregulated nature causes land degradation, deforestation, and water pollution, leading to an NGT ban in 2014.

Reasons Behind NGT Ban

• Environmental Hazards Highlighted: Activists, including Impulse NGO, raised concerns about hazards and child labor in rat hole mines, estimating 70,000 child laborers. Environmentalists flagged issues like water flooding during rainy seasons.
• NGT Ban and Continued Illegal Mining: In 2014, NGT banned rat hole mining due to safety hazards and environmental degradation. However, illegal mining and coal transportation persist, as noted in reports by the High Court of Meghalaya.
• Government Pressure and Approval for Mining Leases: The Meghalaya government faces pressure for legal mining resumption. In May 2023, the Chief Minister announced Coal Ministry approval for mining leases, emphasizing 'scientific' and environmentally sustainable extraction methods.

Current Status and Future Concerns

• Economic Viability of Rat Hole Mining: Thin coal seams make rat hole mining economically attractive in Meghalaya. Despite environmental concerns, some locals and the government push for legal resumption due to economic stakes.
• Approved Mining Leases and Sustainability Claims: Mining leases approval for 'scientific' extraction aims at minimizing environmental impact. Anti-mining activists remain skeptical, labeling it a tag in a state where profit-driven mining prevails over sustainability.
• Ongoing Debate and Future Prospects: The ongoing debate between economic viability and environmental sustainability continues. While 'scientific' mining is proposed, concerns persist about the actual commitment to sustainable practices in Meghalaya's coal mining industry.

Context:

Outcomes under bankruptcy code continue to fall short of expectations. Measures are needed to improve its functioning.

Overview of Insolvency and Bankruptcy Code (IBC)

• Mandate and Outcomes: Introduced in 2016, IBC aims for resolution or liquidation within strict timelines. The Insolvency and Bankruptcy Board of India (IBBI) oversees proceedings, achieving notable success with 7,058 cases admitted.
• Performance Metrics: IBC's impact is seen in resolved cases, appeals, and withdrawals. Operational creditors benefit, initiating half of the cases. Resolution plans approve in 808 cases, while 2,249 face liquidation, raising concerns over lower-than-expected realizations.
• Timelines and World Bank Rating: IBC addressed delays; still, the average resolution process takes 653 days. The World Bank Ease of Doing Business report notes improvement from 4.3 years pre-IBC but emphasizes ongoing challenges surpassing expected timelines.

Challenges and Measures for Improvement

• Reducing Resolution Time: Challenges persist in meeting the 180-day resolution timeframe. Streamlining the Corporate Insolvency Resolution Process (CIRP) further can expedite insolvency resolution, enhancing overall efficiency.
• Strengthening Role of Resolution Professionals: Resolution Professionals (RPs) are vital; their selection, training, and compensation should be enhanced for competency. Empowering RPs contributes to successful insolvency resolution, ensuring their effectiveness and expertise.
• Addressing Operational Creditor Issues: Operational creditors face recovery challenges. Implementing mechanisms to prioritize and protect their interests within the resolution process is essential, ensuring equitable treatment and fostering confidence in the system.

Recommendations for Enhanced Effectiveness

• Cross-border Cooperation and Alignment: Aligning India's insolvency framework with international standards supports cross-border insolvency proceedings. This alignment aids multinational companies operating in India, fostering international cooperation and compliance.
• Strengthening NCLT Infrastructure: National Company Law Tribunal (NCLT) infrastructure needs improvement. Enhancing capacity and case management systems supports effective adjudication, ensuring the NCLT can handle the growing caseload efficiently.
• Continuous Legal and Procedural Reviews: Regular reviews and updates of the IBC are essential. Addressing legal and procedural issues ensures the code remains relevant, adaptable, and effective in the dynamic landscape of insolvency and bankruptcy proceedings.