14 Sep 2022: UPSC Exam Comprehensive News Analysis

B. GS 2 Related

Category: SOCIAL JUSTICE

1. Delays mar MGNREGS social audits

Syllabus: Welfare schemes for vulnerable sections of the population and the performance of these schemes

Prelims: About MGNREGA

Mains: Social Audit of MGNREGA and the issues associated with it.

Context

• The Ministry of Rural Development (MoRD) of the Government of India told the States that failure to carry out a social audit of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) will result in repercussions that include withholding of funds.
• As per the report named “Social audit calendar vs audits completed” released by the Ministry, only about 14.29% of the planned audits have been carried out in the current financial year.

Social Audit of MGNREGA

• The original MGNREG Act had provisions for social audit and the standards for auditing were issued in December 2016.
• Social audits are people-centric instruments, where the citizens of the panchayat play a key role in the functioning of NREGA. 
• The social audit involves quality checks of infrastructure developed under the scheme, financial misappropriation in wages, and verifying for any procedural deviations.
• Such social audits have worked efficiently, allowing the local rights holders to participate in investment decisions and hold the authorities accountable.
• The Union Government bears the administrative cost of Social Audit Units and the fund is disbursed in four tranches.
• According to the Act, every Social Audit Unit should be provided with funds equivalent to 0.5% of the MGNREGA expenditure incurred by the State in the previous year.

Concerns of the states

• According to various states, the Social Audit Units have not received the administrative funds from the Centre, and also there is a delay in the disbursement of the funds.
  • As a result, the payment of auditors’ wages has been delayed by over three months to one year in various states.
• The states allege also that very little amount has been credited to the states as compared to the outstanding dues to the states.
  • Example: Himachal Pradesh has received ₹1.3 crores as a part of the first instalment of this financial year as compared to ₹4 crores due for the current year and an additional ₹4.5 crore due in the previous year.
  • The same was seen in the case of states such as Chhattisgarh and Kerala.
• The delay in the payout of funds causes policy paralysis as it makes it difficult for the states to pay salaries to the auditors.
• As per the report by the non-profit People’s Action For Employment Guarantee, 8 State Social Audit Units in 2020-21, and 9 in 2021-22, have got less than 50% of the funds they were entitled to and the Bihar Social Audit Unit has not received funds since April 2020.
• States such as Maharashtra, Bihar, and Chhattisgarh have received zero funds in 2021-22 to conduct social audits although their collective expenditure is over Rs 6000 crores in MGNREGA in FY 2020-21.
• The social audit units in various states are forced to avail loans from their respective state governments to sustain their operations.

Nut graf: The Social Audit Units play a crucial role in checking corruption in the implementation of the MGNREGA scheme and to ensure their autonomy, these units are to be funded by the Union government instead of the states. However, the delay in the disbursement of such funds by the Union is diluting the very purpose of the establishment of such units.

E. Editorials

Category: INTERNATIONAL RELATIONS

1. For India, the buzzword now is ‘all-alignment’

Syllabus: GS2, International Relations, Bilateral, Regional, and Global Groupings and Agreements involving India and/or affecting India’s interests.

Mains: India’s new foreign policy of multi-alignment.

Prelims: Shanghai Cooperation Organisation summit.

Context: Prime Minister’s upcoming visit to the Shanghai Cooperation Organisation (SCO) summit in Uzbekistan.

Details:

• Leaders of fifteen countries will be attending the SCO summit in Samarkand, Uzbekistan. The countries participating are:
  • Member states: China, India, Russia, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.
  • Observer states: Iran, Belarus and Mongolia. Iran will be joining the group as a ninth member.
  • Guest countries: Azerbaijan, Armenia, Turkmenistan, and Turkey.

Messages sent by India to the world:

• Participation of India in the SCO reinforces the commitment to a foreign policy that balances various blocs like SCO, BRICS (Brazil, Russia, India, China, and South Africa), Quad (Australia, India, Japan, the U.S.), I2U2 ( India-Israel-U.S.-UAE), and the Indo-Pacific Economic Framework (IPEF).
• Another message that is being conveyed is that India prefers values over interests. In other words, this juxtaposes the western view of a “coalition of democracies”, against the Eurasian policy of a “coalition of common goals”. 
• It is also highlighted that there is a change in stance as the Indian Prime Minister has not attended even a single Non-Aligned summit in his entire tenure in contrast to all former PM visits. Additionally, India apart from taking part in the SCO summit this year will be hosting the summit next year inviting all the members including China and Pakistan.
• At the individual engagement level, India has not just rejected the western sanctions on oil imports but has increased the imports manifold. For instance, Russian oil imports surged from nearly 0.66 million tonnes in the first quarter to around 8.42 million tonnes in the second quarter of the financial year.

For more information on the Non-Alignment Movement, check the linked article.

Upcoming engagements of India at the international level and their expectations:

• India-China bilateral ties:
  • The bilateral relations between the two countries which are at a virtual standstill post the Ladakh standoff of 2020 will be closely watched. The leaders of the two countries will come face to face and any discussion between the two will be significant.
• India-Iran engagement:
  •  At the SCO summit, New Delhi is expected to pitch the importance of the Chabahar port terminal (that India is developing as Shahid Beheshti) in the trade route to Central Asia and Russia.
  • Moreover, Iran has demanded India’s support with “above ground” equipment/parts to extend the rail line from the Afghanistan border to Turkmenistan, which is supposed to be the shortest possible route for India’s connectivity to Central Asia. This would further help India in developing a connectivity framework to counter the China-Pakistan-Economic Corridor from Gwadar.
  • Apart from connectivity, Iran will also focus on restoring India’s relation with respect to Iranian crude exports. It is to be remembered that a sizeable portion (approximately 12% of India’s imports) was cancelled in 2019 on the sidelines of U.S. sanctions.
• India- Pakistan relations:
  • There are speculations about a possible thaw in a frozen relationship between India and Pakistan. The relations between the two countries are at a standstill since 2016. 
  • However, powerful backchannel cooperation is visible from incidents like the maintenance of a ceasefire along the Line of Control, regular commander-level talks, and the relative calm that was observed by Pakistan post the misfiring accident by India in March 2022.
• Other engagements:
  • India plans to host SCO-RATS (Shanghai Cooperation Organization – Regional Anti-Terrorist Structure).
  • Moreover, the Indian Army is planning to conduct Yudh Abhyas (with the United States of America) near the Line of Actual Control (LAC).

Also read: Indian Foreign Policy

Nut Graf: India has projected its unique foreign policy stance of “multi-alignment” or “all-alignment” with countries across the world in contrast to its conventional approach of “non-alignment”. This is evident from the recent summits that have already taken place as well as the upcoming ones, where India is seen as not favouring any particular block.

Category: INDIAN ECONOMY

1. Connecting the dots to boost the patent ecosystem

Syllabus: GS3, Economy, Intellectual Property Rights.

Mains: Analysing India’s Patent trends.

Context: Report on the patent ecosystem of India.

Details:

• The recent report titled  ‘Why India Needs to Urgently Invest in its Patent Ecosystem?’ was published by the Economic Advisory Council to the Prime Minister (EAC-PM).
• The report discusses the importance of having a robust patent ecosystem for building a knowledge economy. It will also help in promoting technological innovations. 
• It also noted the increasing share of residents in the total applications of patents that were filed in India. It is more than double what was reported in the previous decade. 
• Moreover, this is the first time that the number of patent applications by Indian residents has surpassed that of foreign applications during the last quarter of the financial year 2021-22. 
• The Economic Survey 2022-23 also showed similar trends.
• The share of patent applications in the Indian patent office surged by approximately 48% during the period of 2010-11 and 2020-21. This growth is largely driven by the applications of residents.
• The higher education sector of India is rising in prominence in research and development (R&D). This is evident from the growth rate (GERD) which has risen from 5% in 2013 to 7% in 2018, as per UNESCO’s data on science, technology, and innovation. 
• It was also reported that the number of patent applications filed by the top ten academic institutes of India has risen by more than two times in just four years (from approximately 838 in 2015-16 to 2,533 in 2019-20). The residents’ share also doubled from around 6.4% to 12.2% during the same time span.

Read more about TRIPS Agreement in the link.

Concerns raised in the report:

• A major issue raised in the report is the time taken to process patent applications in India.
• It was also brought to the fore that the number of abandoned patent applications increased considerably during the decade. The abandoned patents have risen from 13.6% in 2010-11 to nearly 48% in 2019-20.
• As per the Annual Report of the Office of the Controller General of Patents, Designs, Trademarks and Geographical Indications (CGPDTM), 2019-20, the number of rejections on account of not meeting the conditionalities of Sections 9(1) and 21(1) of the Patents Act has increased by nearly 350%.
  • Section 9(1) of the Patents Act: The applications that are accompanied by provisional specifications should provide the complete specifications within the span of one year. 
  • Section 21(1) of the Patents Act: The documents should be re-filed if they do not meet the specifications as per the patent examiner. 
• Another reason that is cited for low reporting is the lack of confidence in the patent applicant about their applications passing the scrutiny and, thereby not pursuing the application process.
• Moreover, in innovations that have a short life span, long pendency might discourage applicants. 
• A key issue in the patent ecosystem is the emphasis given to the patent application filing in the National Intellectual Property Rights Policy 2016, disregarding the quality of innovation.
• India’s score in the ‘Industry-academia’ parameter in the Global Innovation Index (GII) has reduced from 47.8 in 2015 to 42.7 in 2021, leading to a decline in ranking in the same dimension from 48 to 65.
• Similarly, the Draft National Auto Policy 2018 has also reiterated that the industry-academia is limited to niche research areas that have poor commercial significance. 

For more information on the Indian Patents Act, read here: Patents Act in India

Measure Ahead:

• The efficiency of processing patent applications should be considerably increased to improve the patent ecosystem in the country. 
• Moreover, the patent ecosystem should be investigated adequately to design appropriate guidelines. The national innovation ecosystem should also be kept in view while referring to the matter.
• The perverse incentives given in filing the application should be eliminated to improve the overall patent ecosystem of India.

Also read for more related information: UPSC Exam Comprehensive News Analysis. June 10th, 2022

Nut Graf: The patent system in a country forms a crucial linchpin in the national innovation ecosystem. Therefore it is very important to strengthen the quality of the patent applications as well as develop a robust collaboration between Academia and Industry.

2. An improved Bill, but still contentious

Syllabus: GS3, Economy, Infrastructure- ports.

Mains: The draft Indian ports bill of 2022.

Context: Issues with the Draft Indian ports bill. 

Details:

• The century-old Indian Ports Act of 1908 is now obsolete in many terms and is getting overhauled through the draft Indian ports bill, 2022. The 2022 draft is an improvement of the 2021 draft.
• The Union Ministry of Ports, Shipping, and Waterways have held four rounds of consultations regarding the same.

Issues with the 2021 Draft bill:

• The provisions of Chapters II and III of the bill were controversial as they gave statutory status to Maritime State Development Council (MSDC). Wide-ranging powers were given to MSDC along with a permanent body status having its own office, staff, and accounts. This raised contentions among the maritime states that suspected the objective of the body.
• Various provisions of the draft reflected the Socialist-era absurdities of central planning and Inspector Raj.
• The draft also gave unbridled power to the Centre to declare a port non-operational if it was against the national plan. 
• Severe penalties (including imprisonment) can be imposed on the port authorities/officials in case of non-compliance with the MSDC’s directions.

Maritime State Development Council:

• It was created in 1997 by executive order. The Union Minister of Shipping was appointed as the chairperson and the ministers in charge of ports of the maritime States/Union Territories (UTs) as members. 
• It served as an apex advisory body for ensuring the coordinated development of all major and non-major ports of India. 
• MSDC met eighteen times in a span of 25 years. The central Shipping Ministry provided secretarial services to the MSDC’s meetings. 
• The powers given to the body included:
  • Formulation of a national plan for the development of ports
  • Monitoring non-major ports and ensuring their integrated development with major ports which were under the ambit of the state list.
  • The power of inquiry was also given to the body in case of contravention by any port.

Also read: What is the Major Port Authorities Act 2021?

Changes in the 2022 Draft Bill:

• The 2022 draft has relaxed certain provisions of the 2021 draft but has retained the MSDC.
• It has kept the provisions like Section 10(c).
  • It is an open-ended provision that authorizes the Union government to entrust any financial and administrative powers to the MSDC.
  • However, it has been criticized by the stakeholders as a bad precedent that makes the vote of an officer equal to that of a minister. 
  • A fair arrangement is demanded giving fifty-fifty percent weightage to the votes of both the central as well as state (maritime states) ministers.
  • Also, lessons can be learned from the best practices across the world, like in the US, Germany, and even China where the ports are managed by municipal, regional or private bodies.

Performance of Non-Major Ports:

• It is reflected in surveys that non-major ports have performed much better than major ports.
• The share of the total cargo of non-major ports increased from nearly 8% in 1993 to 45% in 2021. Moreover, the CAGR of cargo traffic was 14% in non-major ports in contrast to just 4.8% in major ports.
• Coastal States developed non-major ports on a public-private partnership (PPP) basis, showing great success. The first private port of Gujarat, Pipavav was a major success. This even forced the major ports to adopt the PPP model in 1996.
• A World Bank Report of 2011 also highlighted that non-major ports are more business-oriented, stakeholder friendly, and efficient.

Read more on Major Ports in India in the link.

Nut Graf: The revised draft of the ports bill is no doubt an improvement but it still retains some contentious provisions which warrant attention and rectification from the stakeholders. Policymakers should keep in mind the spirit of federalism and the success shown by local bodies and private players in managing ports in the country and abroad and make adequate changes.

Q1. Consider the following statements about Exercise Kakadu. (Level – Medium)

Q2. Consider the following statements about the National List of Essential Medicine (NLEM) 
2022. (Level – Difficult)

Q3. ‘SRIJAN Portal’ is associated with which of the following? (Level – Medium)

Q4. Which of the following statements is/are correct with respect to Registered 
Unrecognized Political Parties (RUPPs). (Level – Medium)

Q5. In the context of which one of the following are the terms ‘pyrolysis and plasma 
gasification’ mentioned? (Level – Medium) (UPSC 2019)

I. UPSC Mains Practice Questions

1. In the context of the present geopolitical landscape, ‘All-Alignment’ holds key for India. Discuss. (15 marks, 250 words) [GS-2, IR]
2. What are social audits? In the context of the recent concerns raised by the Ministry of Rural Development, do you believe we need to make this framework more robust? (15 marks, 250 words) [GS-2, Social Justice]

Read the previous CNA here.