POLITY AND GOVERNANCE

Five-judge Bench to hear pleas against dilution of Art. 370

GS PAPER - 02 POLITY - Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

Context :

The Supreme Court on Saturday set up a five-judge Constitution bench head by Justice N V Ramana to hear a batch of pleas related to abrogation of Article 370 provisions that gave special status to Jammu and Kashmir.

Background :

A Presidential Order on August 5 read down Article 370, which accorded special rights and privileges to the people of Jammu & Kashmir since 1954 in accordance with the Instrument of Accession.
This was followed by another order passed on August 6, which read down Article 370 to revoke the special status of Jammu and Kashmir.

Article 370 :

Article 370 of the Constitution is a ‘temporary provision’ which promises to grant autonomous status to Jammu and Kashmir and limits Parliament’s powers to make laws for the state.
Under Part XXI of the Constitution titled “Temporary, transitional and special provisions", Article 370 is categorised as a “temporary provision with respect to the State of Jammu and Kashmir".
In effect, Article 370 says that Parliament will need the state government’s concurrence for applying any law, except those that fall in the domains of defence, foreign affairs, finance and communications. Issues like ownership of property, fundamental rights and citizenship are covered under a separate law for Jammu and Kashmir.
It also lays down that only two Articles of the Constitution will apply to Jammu and Kashmir – Article 1 which defines India and Article 370 itself. The provision was included in the Constitution on 17 October, 1949.

Article 35 A:

Article 35A was added to the Indian Constitution by a Presidential order in 1954 – issued under Article 370 of the Constitution.
This provision allows the President to make certain “exceptions and modifications” to the Constitution for the benefit of ‘State subjects’ of J&K.
While Article 370 of the Constitution grants special status to J&K, Article 35A provides the special rights and privileges to the permanent residents of J&K.
The Fundamental Right to Property is still guaranteed in the state. Also, certain special rights are granted to the permanent residents of the state with regard to public employment, acquisition of immovable property, settlement and government scholarships.
It disallows people from outside the state from buying or owning immovable property there, settle permanently, or avail themselves of state-sponsored scholarship schemes.
Only the Jammu-Kashmir assembly can change the definition of Permanent Residents through a law ratified by a two-thirds majority.

Source :- The Hindu

Meghalaya minor tribes fear exclusion from Sixth Schedule

GS PAPER - 02 POLITY - Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

Context :

On September 26, a sub-committee constituted by the State government had decided to recommend to the Standing Committee of Parliament the removal of the word “unrepresented tribes” from the amended Sixth Schedule.

Issue :

A joint delegation of organisations representing five “unrepresented tribes” had met Home Minister James A. Sangma to voice their concerns about the amendment.
Currently, members of such tribes are nominated to the autonomous district councils. Meghalaya’s bid to exclude “unrepresented tribes” from the provisions of the Sixth Schedule of the Constitution has left minor tribes in the hill State edgy.
Meghalaya is divided into autonomous councils in the names of the three major matrilineal communities — Garo, Khasi and Jaintia.
The minority tribes include the Hajong, Koch, Rabha, Boro and Mann.

6Th Schedule :

The Sixth Schedule of the Constitution deals with the administration of the tribal areas in the four northeastern states of Assam, Meghalaya, Tripura and Mizoram.
The rationality behind the special arrangements in respect of only these four states lies in the following:
- “The tribes in Assam, Meghalaya, Tripura and Mizoram have not assimilated much the life and ways of the other people in these states. These areas have hitherto been anthropological specimens.
- The tribes in Assam, Meghalaya, Tripura and Mizoram still have their roots in their own culture, customs and civilization.
- These areas are, therefore, treated differently by the Constitution and sizeable amount of autonomy has been given to these people for self-government.

Source :- The Hindu

IRDAI-NHA panel bats for strong law to deter health insurance fraud

GS PAPER - 02 POLITY - Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Context :

A sub-group on fraud control in health insurance, forming part of the joint working group of National Health Authority and the Insurance Regulatory and Development Authority of India (IRDAI) has advocated a strong law ‘National Health Insurance Anti-Fraud Act’ to act as a deterrent for health insurance fraud.

Need :

As the coverage/penetration of health insurance expands to more people, for more services, the element of fraud and abuse will also go up exponentially if handled inadequately.
Since the law will aim for collective measures by all players this would have great impact on fraudulent practices of providers “which are the major players for fraud.

Key Suggestions from the Panel :

According to them, a strong legislation, National Health Insurance Anti-Fraud Act is “required to effectively to deal with the whole gamut of activities for preventing, detecting and deterring fraud.
The law should provide for setting up of a special anti-fraud task force to take punitive action, carry out recoveries, searches and seizures.
The definition of fraud and abuse should be standardised in the law.
Also, the contracts entered into by a payer — with policyholder, empanelled hospitals, intermediary, employee — should mandatorily incorporate a standard definition of fraud, clauses, and the resulting punitive action that those indulging in them could face.
Create a common talent pool for effective investigation and a certification programme for ensuring minimum standards.

Source :- The Hindu

ECONOMY

Pilot Project for ushering in 'Industry 4.0' in the country

GS PAPER - 03 ECONOMY - Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context :

A Pilot Project for ushering in ‘Industry 4.0’ in the country, is launched for implementation at the Modern Coach Factory (MCF), Raebareli.

Industry 4.0 :

‘Industry 4.0’ commonly referred to as the fourth industrial revolution, is a name given to the current trend of automation, interconnectivity and data exchange in manufacturing technologies to increase productivity.
Industry 4.0 is a complex Cyber-Physical Systems which synergizes production with digital technologies, the Internet of Things, Artificial Intelligence, Big Data & Analytics, Machine Learning and Cloud Computing.
Therefore, the architecture to be conceptualized and formulated in MCF initially would be gradually expanded in a phased manner to encompass all complexities that constitute Industry 4.0 in all manufacturing spheres in the country.
Full transition to the digital factory using ‘Industry 4.0’ across entire value chain from design to production will help enhance productivity hugely by providing insight into production process and also make the decisions in real-time basis.
This will also help in minimizing human errors by effective monitoring to ensure that resources are put to the best utilization measured by, what is called the Overall Equipment Effectiveness (OEE).
Such a National Policy for Advanced Manufacturing envisages that manufacturing sector should contribute at least 25% to GDP.
All over the world, countries who have been able to achieve phenomenal growth, could do that with the advent of rapid strides in manufacturing sector. This initiative in Railways may have wider ramifications to spur growth in defence production as well as in private manufacturing sector also.

Source :- PIB

RBI places Lakshmi Vilas Bank under prompt corrective action

GS PAPER - 03 ECONOMY - Statutory, regulatory and various quasi-judicial bodies Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

The Reserve Bank of India has put Lakshmi Vilas Bank under prompt corrective action framework due to high bad loans and insufficient capital.

Prompt Corrective Action :

The RBI PCA framework was introduced in December 2002 as a structured early-intervention mechanism along the lines of the US Federal Deposit Insurance Corp.’s PCA framework.
Subsequently, in 2017, the framework was reviewed based on the recommendations of the working group of the Financial Stability and Development Council on Resolution Regimes for Financial Institutions in India and the Financial Sector Legislative Reforms Commission.
To ensure that banks don’t go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled.
The process or mechanism under which such actions are taken is known as Prompt Corrective Action or PCA.

What will a bank do if PCA is triggered?

Banks are not allowed to renew or access costly deposits or take steps to increase their fee-based income.
Banks will also have to launch a special drive to reduce the stock of NPAs and contain the generation of fresh NPAs.
They will also not be allowed to enter into new lines of business. RBI will also impose restrictions on the bank on borrowings from interbank market.

Source :- The Hindu

SECURITY

INS ‘Nilgiri’

GS PAPER - 03 SECURITY - Various Security forces and agencies and their mandate

Context :

Raksha Mantri launches Navy's first new stealth frigate, INS ‘Nilgiri’.

INS Nilgiri :

INS Nilgiri is the first ship of Project17A.
- Project 17A frigates is a design derivative of the Shivalik class stealth frigates with much more advanced stealth features and indigenous weapons and sensors.
- These frigates are being built using integrated construction methodology.
- The P17A frigates incorporate new design concepts for improved survivability, sea keeping, stealth and ship manoeuvrability.
INS Nilgiri is the first of the Indian Navy's seven new stealth frigates with enhanced stealth features, weapons and sensors.

Significance :

A vibrant shipbuilding industry can play a major role in the overall economic development of the country.
Shipbuilding is a labour-intensive industry with tremendous potential for employment generation, not only in its own sector but also in various upstream and downstream industries.
Construction of one frigate (INS ‘Nilgiri’) itself provided direct employment to 4,800 personnel and indirect employment to around 27,000 personnel for a period of 8 years.
Almost 87% of the total warship cost is invested in the Indian economy which significantly contributes to nation-building.

Source :- PIB

Raksha Mantri commissions indigenously built submarine INS Khanderi

GS PAPER - 03 SECURITY - Various Security forces and agencies and their mandate

Context :

Raksha Mantri Shri Rajnath Singh commissioned indigenously built submarine INS Khanderi in Mumbai.

INS Khanderi :

The name Khanderi is inspired by the dreaded ‘Sword Tooth Fish’ a deadly fish known to hunt whilst swimming close to the bottom of the ocean. Khanderi is also the name of an island fort built by great Maratha ruler Chhatrapati Shivaji Maharaj.
INS Khanderi is the second of Kalvari Class diesel-electric attack submarines of the Indian Navy. It has been built in India to the French Scorpene design and is the second submarine of the Project-75.
Built indigenously by Mazagon Dock Shipbuilders Limited, INS Khanderi is a lethal addition to Navy’s conventional submarine arsenal and is designed for silent and stealthy sub-surface operations.
INS Khanderi is the follow-on to INS Kalvari, which was the first of the French origin Scorpene-class submarines being indigenously constructed in India and commissioned by the Prime Minister in 2017.

29th SEPTEMBER 2019 DAILY CURRENT AFFAIRS

POLITY AND GOVERNANCE

Five-judge Bench to hear pleas against dilution of Art. 370

GS PAPER - 02 POLITY - Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

Context :

The Supreme Court on Saturday set up a five-judge Constitution bench head by Justice N V Ramana to hear a batch of pleas related to abrogation of Article 370 provisions that gave special status to Jammu and Kashmir.

More in the news:

Several petitions have been filed challenging the Centre's decision abrogating the Article 370 provisions and bifurcating the state into Union Territories of Jammu and Kashmir, and Ladakh.

Some of the petitions also challenge the constitutional validity of Jammu and Kashmir Reorganization Act 2019, which bifurcated the state into Union Territories of J&K and Ladakh.

Background :

A Presidential Order on August 5 read down Article 370, which accorded special rights and privileges to the people of Jammu & Kashmir since 1954 in accordance with the Instrument of Accession.

This was followed by another order passed on August 6, which read down Article 370 to revoke the special status of Jammu and Kashmir.

Article 370 :

Article 370 of the Constitution is a ‘temporary provision’ which promises to grant autonomous status to Jammu and Kashmir and limits Parliament’s powers to make laws for the state.

Under Part XXI of the Constitution titled “Temporary, transitional and special provisions", Article 370 is categorised as a “temporary provision with respect to the State of Jammu and Kashmir".

It also lays down that only two Articles of the Constitution will apply to Jammu and Kashmir – Article 1 which defines India and Article 370 itself. The provision was included in the Constitution on 17 October, 1949.

Article 35 A:

Article 35A was added to the Indian Constitution by a Presidential order in 1954 – issued under Article 370 of the Constitution.

This provision allows the President to make certain “exceptions and modifications” to the Constitution for the benefit of ‘State subjects’ of J&K.

While Article 370 of the Constitution grants special status to J&K, Article 35A provides the special rights and privileges to the permanent residents of J&K.

The Fundamental Right to Property is still guaranteed in the state. Also, certain special rights are granted to the permanent residents of the state with regard to public employment, acquisition of immovable property, settlement and government scholarships.

It disallows people from outside the state from buying or owning immovable property there, settle permanently, or avail themselves of state-sponsored scholarship schemes.

Only the Jammu-Kashmir assembly can change the definition of Permanent Residents through a law ratified by a two-thirds majority.

Source :- The Hindu

Meghalaya minor tribes fear exclusion from Sixth Schedule

GS PAPER - 02 POLITY - Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

Context :

On September 26, a sub-committee constituted by the State government had decided to recommend to the Standing Committee of Parliament the removal of the word “unrepresented tribes” from the amended Sixth Schedule.

Issue :

A joint delegation of organisations representing five “unrepresented tribes” had met Home Minister James A. Sangma to voice their concerns about the amendment.

Currently, members of such tribes are nominated to the autonomous district councils. Meghalaya’s bid to exclude “unrepresented tribes” from the provisions of the Sixth Schedule of the Constitution has left minor tribes in the hill State edgy.

Meghalaya is divided into autonomous councils in the names of the three major matrilineal communities — Garo, Khasi and Jaintia.

The minority tribes include the Hajong, Koch, Rabha, Boro and Mann.

6Th Schedule :

The Sixth Schedule of the Constitution deals with the administration of the tribal areas in the four northeastern states of Assam, Meghalaya, Tripura and Mizoram.

The rationality behind the special arrangements in respect of only these four states lies in the following:

“The tribes in Assam, Meghalaya, Tripura and Mizoram have not assimilated much the life and ways of the other people in these states. These areas have hitherto been anthropological specimens.

The tribes in Assam, Meghalaya, Tripura and Mizoram still have their roots in their own culture, customs and civilization.

These areas are, therefore, treated differently by the Constitution and sizeable amount of autonomy has been given to these people for self-government.

Source :- The Hindu

IRDAI-NHA panel bats for strong law to deter health insurance fraud

GS PAPER - 02 POLITY - Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Context :

Need :

As the coverage/penetration of health insurance expands to more people, for more services, the element of fraud and abuse will also go up exponentially if handled inadequately.

Since the law will aim for collective measures by all players this would have great impact on fraudulent practices of providers “which are the major players for fraud.

Key Suggestions from the Panel :

According to them, a strong legislation, National Health Insurance Anti-Fraud Act is “required to effectively to deal with the whole gamut of activities for preventing, detecting and deterring fraud.

The law should provide for setting up of a special anti-fraud task force to take punitive action, carry out recoveries, searches and seizures.

The definition of fraud and abuse should be standardised in the law.

Also, the contracts entered into by a payer — with policyholder, empanelled hospitals, intermediary, employee — should mandatorily incorporate a standard definition of fraud, clauses, and the resulting punitive action that those indulging in them could face.

Create a common talent pool for effective investigation and a certification programme for ensuring minimum standards.

Source :- The Hindu

ECONOMY

Pilot Project for ushering in 'Industry 4.0' in the country

GS PAPER - 03 ECONOMY - Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context :

A Pilot Project for ushering in ‘Industry 4.0’ in the country, is launched for implementation at the Modern Coach Factory (MCF), Raebareli.

Industry 4.0 :

‘Industry 4.0’ commonly referred to as the fourth industrial revolution, is a name given to the current trend of automation, interconnectivity and data exchange in manufacturing technologies to increase productivity.

Industry 4.0 is a complex Cyber-Physical Systems which synergizes production with digital technologies, the Internet of Things, Artificial Intelligence, Big Data & Analytics, Machine Learning and Cloud Computing.

Therefore, the architecture to be conceptualized and formulated in MCF initially would be gradually expanded in a phased manner to encompass all complexities that constitute Industry 4.0 in all manufacturing spheres in the country.

Full transition to the digital factory using ‘Industry 4.0’ across entire value chain from design to production will help enhance productivity hugely by providing insight into production process and also make the decisions in real-time basis.

This will also help in minimizing human errors by effective monitoring to ensure that resources are put to the best utilization measured by, what is called the Overall Equipment Effectiveness (OEE).

Such a National Policy for Advanced Manufacturing envisages that manufacturing sector should contribute at least 25% to GDP.

All over the world, countries who have been able to achieve phenomenal growth, could do that with the advent of rapid strides in manufacturing sector. This initiative in Railways may have wider ramifications to spur growth in defence production as well as in private manufacturing sector also.

Source :- PIB

RBI places Lakshmi Vilas Bank under prompt corrective action

GS PAPER - 03 ECONOMY - Statutory, regulatory and various quasi-judicial bodies Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

The Reserve Bank of India has put Lakshmi Vilas Bank under prompt corrective action framework due to high bad loans and insufficient capital.

More in the news:

The RBI move comes at a time when the Delhi Police Economic Offences Wing has registered a complaint against the board of LVB alleging cheating and misappropriation of funds.

The central bank has taken this action owing to high level of bad loans, insufficient capital adequacy ratio, negative return on assets (RoA) for two consecutive years and high leverage.

For FY19, the bank’s net NPA stood at 7.49%, capital adequacy ratio was at 7.72% and its return on assets was (-) 2.32%. It had reported a net loss of ₹894.10 crore for 2018-19.

Prompt Corrective Action :

The RBI PCA framework was introduced in December 2002 as a structured early-intervention mechanism along the lines of the US Federal Deposit Insurance Corp.’s PCA framework.

Subsequently, in 2017, the framework was reviewed based on the recommendations of the working group of the Financial Stability and Development Council on Resolution Regimes for Financial Institutions in India and the Financial Sector Legislative Reforms Commission.

To ensure that banks don’t go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled.

The process or mechanism under which such actions are taken is known as Prompt Corrective Action or PCA.

29^th SEPTEMBER 2019 DAILY CURRENT AFFAIRS