Cauvery Water Dispute: A Concise Summary of the Long-Running Inter-State Conflict

EDEN IAS
WCR(WEEKLY CURRENT ROUND-UP)
11-B/8, FIRST FLOOR TEWARI HOUSE, OPPOSITE METRO PILLAR NO. 137
PUSA ROAD, KAROL BAGH, NEW DELHI
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Email: edenias96@gmail.com | connect.edenias@gmail.com
Website: www.edenias.com
(EDUCATIONAL DEVELOPMENT & ENRICHMENT NETWORK)
17-JUNE-2018

TABLE OF CONTENTS
TOPIC PAGE NO.
WEEK 1 17TH-JUNE
1. TROUBLED WATERS: THE CAUVERY CONUNDRUM 1
2. THE STEEL FRAME - FLEXIBLE AND MORE OPEN LATERAL ENTRY INTO CIVIL SERVICES 7
3. THE GREEN PUSH: NATIONAL POLICY ON BIOFUELS 10
4. WHY CAPITAL PUNISHMENT FOR CHILD RAPE, OR WHY NOT? 14
5. PENINSULA AND SUBCONTINENT PROXIMITY & DIVERGENCE 16
6. PROMPT CORRECTIVE ACTION (PCA) A SURGICAL TOOL OR A STEP TOWARDS PRIVATISATION 19

11-B/8, FIRST FLOOR, TEWARI HOUSE, OPPOSITE METRO PILLAR NO. 137, PUSA ROAD, KAROL BAGH.
www.edenias.com | CONTACT : 011-40197652 | 9315215980 | 9315227819 |
EDEN IAS WCR-(Weekly Current Round-Up)
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Troubled Waters: The Cauvery Conundrum
Introduction
Cauvery, also known as Dakshin Ganga (The Ganges of the South), has been the economic life-line of the states through
which it flows. If you look at the map of India, you will notice that the river cuts across two Indian states, Karnataka and
Tamil Nadu. It originates at Talacauvery in Kodagu district in Karnataka. While it flows mainly through Karnataka and Tamil
Nadu, a lot of its basin area is covered by Kerala and the Karaikal area of Puducherry. Hence Karnataka, Tamil Nadu, Kerala
and Puducherry all have rightful claims over the river. However the socio-economic impact of the river is most resounding
in the states of Karnataka and Tamil Nadu, where the river is treated as Mother Goddess and is entwined with the identity
of the people.
It is celebrated in music and literature and sung praises of in prayer and legends. Yet this same holy river has been the bone
of contention between the two states for decades. Cauvery water dispute case is a classic example showcasing
complicated scenario of river water management and governance in India.
Background of the Cauvery Water Dispute
 The Cauvery water dispute is an inter-state water dispute between Tamil Nadu, Karnataka, Kerala and Puducherry.
 The sharing of Cauvery water has been a bone of contention between Karnataka and Tamil Nadu since pre-
independence years. The Cauvery Water dispute has its roots in the agreements dating back to 1892 and 1924
between the then British-ruled Madras Presidency and the princely state of Mysore.
According to the 1892 and the 1924 agreements the river water was distributed as follows:-
 75 percent with Tamil Nadu and Puducherry
 23 percent to Karnataka
 Remaining allocated to Kerala
 The 1924 agreement was for 50 years. The real problem started after the re-organization of states post Indian
independence. Before that, most matters were settled through arbitration and agreements.
 Through the late 20th century, Tamil Nadu opposed the construction of dams on the river by Karnataka, and
Karnataka in turn wanted to discontinue the water supply to Tamil Nadu. Karnataka argued that the 1924
agreement has lapsed and they are no longer bound by the agreement struck between the British Empire and the
Maharaja of Mysore. Rather Karnataka argued that since the river originated in Karnataka they should have a fair
and equitable share. In fact due to unbridled urbanization and industrialization Karnataka was facing serious water
scarcity especially in cities like Bangalore.
 Tamil Nadu too had become heavily dependent on the river after they developed millions of agricultural land
around the river. They argued that the livelihood of farmers would be affected if there was a change in the
distribution of water. As Tamil Nadu remains mostly dry during the south-west monsoons its dependency on
Cauvery waters has only grown with time due to increase in population and settlements.

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 Meanwhile Kerala and Puducherry also demanded a fresh look into the issue. As a consequence of it Centre
decided to appoint a Fact Finding committee to collect fresh statistics from each of the states that had the river
basin — Kerala, Tamil Nadu and Karnataka. The Fact-Finding committee found that Tamil Nadu used 566 tmcft
(thousand milli cubic feet), Karnataka used 177 tmcft.
 Karnataka argued heavily that the river water should be divided according to international rules, i.e. in equal
portions. They suggested that 94 percent could be divided equally between them and the rest could be distributed
to Kerala and Puducherry. However Tamil Nadu wanted to stick to the original distribution, according to the 1924
agreement.
 The Fact Finding committee submitted its report in 1976 and the states arrived at an understanding that each state
would continue using the water according to their previous usage, only now an additional 125 tmcft water would
be saved and shared.
 However, later when Tamil Nadu got its new government, it refused to give consent to terms of agreement which
led to fresh disputes.
 In 1986, a farmer’s association from Tanjavur, Tamil Nadu moved the Supreme Court (SC) and demanded that a
tribunal be formed for the adjudication of the Cauvery water dispute.
 In 1986, Tamil Nadu government also appealed to the Central government to constitute a tribunal for solving the
issue under Inter-State Water Disputes Act, 1956.
Constitutional Provisions Regarding Inter-State Water Disputes
 The Constitutional Provision for Interstate water dispute has been laid down in Article 262
 The Article 262 provides for a specific law enacted by Parliament to adjudicate water disputes.
It also bars jurisdiction of all courts, including the Supreme Court, on the same.
Interstate Water Disputes Act, 1956
In accordance to the Article 262, the Parliament enacted the Inter State Water Disputes Act in 1956.
Main features of the Act:
1. Any of the disputed parties may request the Central Government to refer the dispute to a tribunal for adjudication.
2. If the Central Government is of opinion that the dispute cannot be settled by negotiation, it shall refer the dispute to a
Tribunal.

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3. Jurisdiction of the Supreme Court and other courts in respect of the dispute referred to the Tribunal is barred. (Section
11).
4. The Central Government may frame a scheme, to give effect to the decision of the Tribunal. The scheme may provide for
establishing an authority for implementing the award of the tribunal (Section 6A).
 In 1990, the SC heard the petitions by the two states and asked them to complete negotiations. However the two
failed to do so, following which the SC directed the Centre to constitute a tribunal and distribute the water
between states.
 Following a Supreme Court order, the Centre constituted the Cauvery Water Disputes Tribunal (CWDT) to resolve
the water-sharing dispute between Karnataka and Tamil Nadu.
 In 2007, after 16 years, the Cauvery Water Disputes Tribunal (CWDT) gave out their final award. The tribunal held
valid the agreements of 1892 and 1924 executed between the government of Madras and Mysore. Karnataka
protested the tribunal award and observed a state-wide bandh. The award was as follows:
 Tamil Nadu: 419 TMC (which had demanded 512 TMC),
 Karnataka: 270 TMC (which had demanded 465 TMC),
 Kerala: 30 TMC, and
 Pondicherry: 7 TMC
 In 2013, the Centre notified the final award of the CWDT. The government was mandated to constitute the Cauvery
Water Management Authority (CWMA) with a gazette notification to give effect to the final award given by the
Tribunal.
 Observing undue delay, The Supreme Court stepped in and ordered the release of water to Tamil Nadu as per the
award of the tribunal and directed the centre to form the Cauvery Water Management Authority to implement the
award.
 Recently, there have been fresh disputes post SC verdict on sharing of Cauvery water between Tamil Nadu and
Karnataka and the formation of the Cauvery Water Management Authority. Karnataka is in fact witnessing wide-
spread protests against the award of the tribunal.

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 Tamil Nadu approached SC claiming that Karnataka had failed to fully comply with a series of orders passed by the
court regarding timely release of water from the Cauvery River.
 The Supreme Court this time taking a hard stance took the matter itself and passed an order that amended the
final award and asked the centre to implement it expeditiously.
The Supreme Court Verdict, 2018:- Cauvery Water Sharing
 Total available water to be allocated not changed.
 Allocation to Kerala and Puducherry not changed.
 Reduced Tamil Nadu’s share by 14.75 tmcft and added that to Karnataka’s share-
 Reduced Karnataka’s obligations to release water, from 192 tmcft to 177.25 tmcft, to
 Tamil Nadu.
 Increased Karnataka’s share to meet Bengaluru’s drinking water requirements
 Asserted that inter-state river waters are national assets
 Gave the Centre 6 weeks to frame a scheme to make sure that the final decisions are
implemented.
 Directed the formation of the Cauvery Management Board (CMB).
Issues in the Cauvery Water Dispute:
1. Deficit monsoon and unavailability of water:
• A major issue which Karnataka sighted has been the unavailability of adequate river water.
• This is primarily due to overall decrease in natural flow of water. The main reasons for decrease
in natural flow of water is reduction in forest cover, unsustainable agricultural practices and
depletion of groundwater.
• The situation aggravates during deficit monsoon and Karnataka has failed repeatedly in
releasing the ordered amount of water during poor monsoon years.
2. Protests:
• In 2016, Supreme Court directed Karnataka to release water. After release of water there were widespread unrest in
the state of Karnataka
• Karnataka government filed a plea to modify a Supreme Court order. It argued that it was unfair to require the state
to release a fixed amount of water irrespective of the availability of water.
3. Use of Special Leave Petitions (SLP):
• The recent Supreme Court Verdict was passed on a number of appeals by the states of Karnataka, Tamil Nadu and
Kerala challenging the 2007 award passed by the Cauvery River Water Disputes Tribunal

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• There were widespread criticism since this was the first time that the SC allowed a Special Leave Petition (SLP)
challenging a tribunal’s award.
• SC justified it on the basis that provisions of Article 262 and the Interstate River Water Disputes Act does not curtail
its powers. Article 136 empowers it to intervene even after a tribunal adjudicates a river water dispute.
• However, it’s important to note that Article 262 (2) uses ‘notwithstanding anything in this Constitution’ clause. The
question then arises whether the justification made by SC is valid.
4. The Issue with Cauvery Water Management Authority:
• CWMA has not been fully constituted as it does not have three full time members. This is because Kerala and
Karnataka have not filed their nominations.
• Karnataka apprehends that the CWMA will go against its interest and distribute more water to Tamil Nadu
• During the deficit year CWMA is empowered to find a formula for water distribution. This is led to speculation and
trust deficit.
• Karnataka apprehends that they may lose their control over state reservoir or dam due to CWMA.
Way forward
A) Follow Supreme Court’s Suggestion:
Supreme Court recommended that the Cauvery Water Management Board should include eminent water
technologists and agriculture specialists to
 Ensure greater economy and equity in the sharing of the Cauvery water
 Look into the water efficiency measures involving recycling of water
B) Local Governance and People’s Participation:
Demand management:
 Cropping patterns which are suited to local areas based on soil testing and adapting less water-intensive crops.
 Drip irrigation and other water-saving techniques, paying attention to crops which are in demand in the market
and which can enhance the income of farmers per unit of water.

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Supply augmentation:
 Make rainwater harvesting mandatory as Tamil Nadu is a rain shadow region and water becomes available largely
during the north east monsoon period. There is a large scope for water harvesting and storage.
 Set up a Water Security Board in order to derive maximum benefits by following transparency in allocation and
distribution.
C) Urban Planning:
Urbanization has altered both quantity and quality of our water resources, it is important that proper urban and water
planning are taken into consideration. For instance, In Chennai, most of the apartments and Townships are constructed
in wetland and lake modified areas.
Conclusion
• CWMA should find a mutually accepted water sharing/ deficit formula.
• Allocation should be based on the basis of monsoon and availability of water.
• Inter-state councils should be strengthened to resolve water disputes among states.
• To solve interstate water disputes, economic survey has suggested for cooperative federalism
just like GST.
 The principle of downstream benefit-sharing is crucial for the successful implementation of these treaties.
 It is time that water issues are de-politicized and political parties learn to see reason and respect the rule of law
without getting carried away by electoral considerations.
The Central government has got a golden opportunity on Cauvery to set a new, healthy trend.

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THE STEEL FRAME - FLEXIBLE AND MORE OPEN LATERAL
ENTRY INTO CIVIL SERVICES
Introduction
The Union government has announced a scheme for lateral entry of professionals from the public as well as the private
sector with at least 15 years of experience and above the age of 40 years for appointment as joint secretaries in different
departments. The move has been touted by many as an unprecedented step.
As a consequence of it the Department of Personnel and Training has invited applications from outstanding individuals,
including those from the private sector, for appointment to joint secretary-level posts.
Although it is an initial offering of 10 posts in areas such as financial services, agriculture, environment, renewable
energy, transport and revenue, the move could be a significant step towards fulfilling the longstanding need for domain
specialists in positions crucial to policy-making and implementation of government schemes. The proposal of lateral entry
is aimed at bringing in fresh ideas and new approaches to governance and also to augment manpower.
The case for Lateral Entry
 First, the IAS has been designed for the pre-reform India of a dominant state. The logic of economic reforms that
began in 1991 is for the state to yield space to the market; as we deepen reforms, it becomes even more
imperative for the government to understand the impact of its policies on stakeholders — the private sector, the
non-government sector and the larger public. The IAS officers, on the other hand, see the government only from
within. Sure, there are efforts to reach out to the stakeholders, but is that an adequate substitute to having within
the government itself, people who have “experienced” the government from the outside?
 Second, IAS officers get recruited at a very young age when it is difficult to test potential administrative and
judgement capabilities. Indeed, experience has shown that the IAS examination is prone to both, what
statisticians call type I and type II errors; some who are potentially good administrators fail to make it, and some
who do make it, fall short of the requirements. Mid-career lateral entrants with proven capabilities will help bridge
this deficiency.
 Third, career progression in the IAS is almost automatic. Notwithstanding sporadic efforts to introduce
meritocracy, very few get weeded out for poor performance. The only penalty, if at all, for failing to make the
grade, is fringe postings. Lateral entry is necessary to push the IAS out of their comfort zone and challenge them.
 Fourth, the UPSC system does draw people from diverse educational backgrounds — Doctors, Engineers,
Graduates in the Social Sciences, Humanities and Management studies — into the Indian Administrative
Service (IAS). But the IAS’s scheme of posting and transfer values general competency more than specialised
skills. This means that by the time a bureaucrat attains seniority, he/she has served in so many departments
that his/her original set of skills and expertise has attenuated considerably.
 Fifth, today, the complexities of policy-making are such that senior civil servants are required to have in-depth
knowledge of the areas they administer. Reading the fine print today is cardinal not only in sectors that have come

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to the fore in the past 25 to 30 years — telecom, environment, renewable energy, climate change, intellectual
property rights — it’s also essential in the more traditional realms of administration such as finance, commerce,
aviation or health.
Any precedents regarding Lateral Entry
 It is not as if lateral entry has not been tried out. It has, but only at the margins. Both the Central
government and many state governments have appointed advisers and consultants on an ad-hoc basis, for
fixed tenures or even on an open-ended basis. Indeed some of them, recruited into the Finance Ministry, the
Reserve Bank, the erstwhile Planning Commission and more recently into public enterprises, have
distinguished themselves. C. Rangarajan and Montek Singh Ahluwalia, just to name two, have been stellar
successes.
 Previous Union governments inducted professionals from the public as well as the private sector in
positions even senior to that of joint secretaries. The names that immediately come to the mind include
Mantosh Sondhi, V Krishnamurthy, DV Kapur, RV Shahi and Sam Pitroda. These men were hired to position
of secretaries and higher.
 In the 1950s and 1960s, non-bureaucrats such as Lovraj Kumar, P L Tandon and V Krishnamurthy were
appointed to senior administrative positions. In 2002, former BSES CMD, R V Shahi, was made power
secretary. And the UPA government appointed Nandan Nilekani to head the UIDAI. But in general,
governments have tried to meet the need for experts by appointing consultants.
 However, the larger experience from such lateral entry has not been happy. Lateral entrants have
struggled to fit into “the system” and understand the processes and dynamics of government decision-
making. They have complained of hostility from the IAS network which, they believe, sets them up for
failure. “The system”, a metaphor for the IAS, in turn, sees lateral entrants as adversaries who have made
their way in, not through an open competitive examination like they have, but because of privilege and
connections.
The Need for Specialisation
Views by different Commissions and Committees
 The need for specialisation, in fact, had been pointed out as far back as 1965 by the first Administrative Reforms
Commission (ARC).
 That imperative was amplified by the Surinder Nath Committee and the Hota Committee in 2003 and 2004.
 In 2005, the Second ARC envisaged a shift from a “career-based approach to a post-based approach” for top-tier
government jobs. In the past, governments have occasionally inducted talent from outside the bureaucracy for
administrative purposes.

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 The Second ARC’s recommendation of an “institutionalised and transparent process for lateral entry at both the
Central and state levels” had so far gone unheeded. It seems that the government is just trying to follow the
recommendations.
Procedure and practices in other countries
United Kingdom
 There are short term lateral entrants allowed to come and work for the government and leave.
 There is a culture of trust but beyond it there is a regulatory mechanism and an apparatus put in place to ensure
that there is no misuse of role assumed when in government.
 So, with adequate safeguards, lateral entry can be made possible in India.
United States of America
 It has revolving door system. Here, the lawmakers and the lobbyists switch jobs from time to time.
 In this system, more the top position more is the influence in the government and its policies.
 It has given USA efficiency but has often created controversies and debates.
Concerns regarding Lateral Entry
 Experience: The level of experience gained by regular bureaucrats during initial years of their service while
dealing with problems faced by the common man will be absent in lateral entrants.
 Result oriented: Always the results need not be tangible especially in government service. Lateral entrants might
be motivated to see the tangible part.
 Short-term results: Regular bureaucrats see long term results, lateral entrants might focus on short-term gains.
 Profit loss: Lateral entrants, if from corporate sectors will be evaluating everything in terms of profit and loss due
to their previous experiences.
 Demotivation: It may demotivate regular entrants and there might also be high attrition in bureaucracy.
 Political Favoritism: Perhaps this is the biggest concern that there might be cases where certain individuals are
given preference due to their political ideology or political connections.
 Corruption and Nepotism: There are chances of them indulging in corrupt practices for short term benefits and
political executives might exhibit nepotism.

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Way Forward
 Institutionalised lateral entry should be complemented with allowing regular IAS officers to specialise in sectors
over time as well as encouraging them to work outside the government for limited periods. This will enable them
to compete on an equal footing with lateral entrants.
 There should be an institutionalised system of annual recruitment into the IAS of mid-career professionals from
diverse career paths.
 Some Basic methodologies testing maturity of judgement and personality traits should be designed to make the
process of lateral recruitment more objective and transparent in nature.
Conclusion
UPSC has had an excellent record over the years. It has given India some of the best officers. Some of whom have left a
rich legacy and a brilliant trail to follow for young recruits. Regular officers often have Cross-Sectoral experience which is
advantageous in many ways. The man at the top has a broad vision rather than having domain expertise.
Hence, the top positions in critical areas should be reserved for within the government. For the sectors that require more
of technical and domain knowledge, lateral entry can be considered as a good option. In principle it is a good idea. But
the private sector should be involved only when there is a required gap to be filled. Along with recruitment, they should
be also made accountable for the actions and decisions taken in capacity of a government officer.
The Green Push: National Policy on Biofuels
Introduction
What are Bio-fuels?
A Biofuel is a fuel that is produced through contemporary biological processes, such as agriculture and anaerobic
digestion, rather than a fuel produced by geological processes such as those involved in the formation of fossil fuels, such
as coal and petroleum, from prehistoric biological matter.
Biofuels can be derived directly from plants, or indirectly from agricultural, commercial, domestic, and/or industrial
wastes. Renewable Biofuels generally involve contemporary carbon fixation, such as those that occur
in plants or microalgae through the process of photosynthesis. Other renewable Biofuels are made through the use or
conversion of biomass (referring to recently living organisms, most often referring to plants or plant-derived materials).
This biomass can be converted to convenient energy-containing substances in three different ways: thermal conversion,
chemical conversion, and biochemical conversion. This biomass conversion can result in fuel in solid, liquid, or gas form

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Bio-ethanol is an alcohol made by fermentation, mostly from carbohydrates produced in sugar or starch crops such as corn,
sugarcane, or sweet sorghum. Cellulosic biomass, derived from non-food sources, such as trees and grasses, is also being
developed as a feedstock for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually
used as a gasoline additive to increase octane and improve vehicle emissions. Bio-ethanol is widely used in the United
States and in Brazil.
Biodiesel can be used as a fuel for vehicles in its pure form, but it is usually used as a diesel additive to reduce levels of
particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles. Biodiesel is produced from oils or fats
using trans-esterification and is the most common biofuel in Europe.
Biofuel is commonly advocated as a cost-effective and environmentally benign alternative to petroleum and other fossil
fuels, particularly within the context of rising petroleum prices and increased concern over the contributions made by
fossil fuels to global warming.
However Many critics express concerns about the scope of the expansion of certain Biofuels because of the economic and
environmental costs associated with the refining process and the potential removal of vast areas of arable land from food
production.
Why Biofuel is in News?
The Union Cabinet has approved a National policy on Biofuels that seeks to not only help farmers dispose of their surplus
stock in an economic manner but also reduce India’s oil-import dependence.
The Ultimate aim of the National Policy on Biofuels is to address the Supply-side constraints and effective management of
resources.
The policy expands the scope of raw material for ethanol production by allowing use of sugarcane juice, sugar containing
materials like sugar beet, sweet sorghum, starch containing materials like corn, cassava, damaged food grains like wheat,
broken rice, rotten potatoes [that are] unfit for human consumption for ethanol production.

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The National Policy on Biofuels was first made by Ministry of New and Renewable Energy during the year 2009 under
UPA II government.
Salient Features of the New Biofuel Policy
 The Policy categorizes Biofuels as Basic and Advanced Biofuels to enable extension of appropriate financial and
fiscal incentives under each category.
“Basic Biofuels”
First generation (1G)
Bioethanol & Biodiesel
“Advanced Biofuels”
Second generation (2G) ethanol, municipal solid waste (MSW)
&
Third generation (3G) Biofuels, bio-CNG etc
 Taking into account the risk of farmers of not getting appropriate price for their produce during surplus production,
the Policy allows the use of surplus food grains for production of ethanol for blending with petrol with the
approval of National Biofuel Coordination Committee.
 The Policy expands the scope of raw material for ethanol production by allowing use of Sugarcane Juice, Sugar
containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food
grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.
 With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries
of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G Biofuels.
 The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds,
Used Cooking Oil, short gestation crops.
 Roles and responsibilities of all the concerned Ministries/Departments with respect to biofuels has been captured
in the Policy document to synergise efforts
Expected Benefits:
 Reduce Import Dependency: One crore lit of E10 saves Rs.28 crore of forex at current rates. The ethanol supply year
2017-18 is likely to see a supply of around 150 crore litres of ethanol which will result in savings of over Rs.4000 crore
of forex.
 Cleaner Environment: One crore lit of E-10 saves around 20,000 ton of CO2
emissions. For the ethanol supply year
2017-18, there will be lesser emissions of CO2
to the tune of 30 lakh ton. By reducing crop burning & conversion of
agricultural residues/wastes to biofuels there will be further reduction in Green House Gas emissions.
 Health benefits: Prolonged reuse of Cooking Oil for preparing food, particularly in deep-frying is a potential health
hazard and can lead to many diseases. Used Cooking Oil is a potential feedstock for biodiesel and its use for making
biodiesel will prevent diversion of used cooking oil in the food industry.
 MSW Management: It is estimated that, annually 62 MMT of Municipal Solid Waste gets generated in India. There are
technologies available which can convert waste/plastic, MSW to drop in fuels. One ton of such waste has the potential
to provide around 20% of drop in fuels.

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 Infrastructural Investment in Rural Areas: It is estimated that, one 100klpd bio refinery will require around Rs.800
crore capital investment. At present Oil Marketing Companies are in the process of setting up twelve 2G bio refineries
with an investment of around Rs.10,000 crore. Further addition of 2G bio refineries across the Country will spur
infrastructural investment in the rural areas.
 Employment Generation: One 100klpd 2G bio refinery can contribute 1200 jobs in Plant Operations, Village Level
Entrepreneurs and Supply Chain Management.
 Additional Income to Farmers: By adopting 2G technologies, agricultural residues/waste which otherwise are burnt
by the farmers can be converted to ethanol and can fetch a price for these waste if a market is developed for the
same. Also, farmers are at a risk of not getting appropriate price for their produce during the surplus production
phase. Thus conversion of surplus grains and agricultural biomass can help in price stabilization.
Success of the New Biofuel Policy would depend upon the following
 At present, as far as the technology that is available a large chunk of the biofuel will be derived from
the sugar sector. Therefore, pricing is the key.
 The production of biofuels from agricultural waste, it is hoped, will also help curb atmospheric
pollution by giving farmers an incentive not to burn it, as is happening in large parts of northern
India. If the benefits do not reach the farmers then they may again start burning their agricultural
residue as a mark of protest or in urgency.
 There is also a need for caution in using surplus food grain to produce ethanol. Food for fuel has
often been a controversial policy matter across the globe as many believe using grains for ethanol
raises food inflation risk.
 And while removing the shackles on raw material supply can have definite benefits, it cannot make a
significant difference to biofuel production as long as the supply-chain infrastructure that is
required to deliver biofuels to the final consumer remains inadequate.
 Availability-Accessibility-Affordability equation must be balanced.
Conclusion
Biofuels programme in India has been largely impacted due to the sustained and quantum non-
availability of domestic feedstock for biofuel production which needs to be addressed. Biofuels in India
are of strategic importance as it augers well with the ongoing initiatives of the Government such as Make
in India, Swachh Bharat Abhiyan, Skill Development and offers great opportunity to integrate with the
ambitious targets of doubling of Farmers Income, Import Reduction, Employment Generation, Waste to
Wealth Creation. Biofuels programme in India has been largely impacted due to the sustained and
quantum non-availability of domestic feedstock for biofuel production which needs to be addressed.

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WHY CAPITAL PUNISHMENT
FOR CHILD RAPE, OR WHY NOT?
Background
The Criminal Law (Amendment) Ordinance, 2018, was passed by the Union Cabinet led by Prime Minister in response to
the wide spread outrage over the gang-rape and murder of an eight year old girl of the nomadic Bakarwal tribe in Jammu
and Kashmir’s Kathua district. The following article is an attempt to discuss the feasibility of capital punishment for
criminal offences like rape and murder.
What is the ordinance?
 The ordinance enhances the punishment for rape by amending section 376 of the Indian Penal Code (IPC).
 The minimum punishment for rape has been increased from the existing 7 years to 10 years now.
 New subsections have been introduced to the IPC section to provide for stringent punishment if the victim is a
minor girl.
 The minimum punishment for rape of a girl below age 16 will now be 20 years jail up to life, with a fine.
 While every convict in a gang-rape case will be sentenced to life with a fine.
 Those found guilty of raping girls under the age of 12 will be handed a jail term between 20 years and life
imprisonment, along with a fine or death. The minimum penalty for gang-rape in such cases would be life
imprisonment with fine and maximum death.
What are the issues with this ordinance?
 No mention of sexual abuse of boys
Protection of Children from Sexual offences (POSCO) Act is a gender neutral law and covers victims who are both
boys and girls. However the ordinance approved by the cabinet amends IPC section 376, meant for only female
survivors/victims of rape keeping in mind their specific vulnerabilities. Since a bill has to be moved in Parliament to
replace the ordinance, the Women and Child Development (WCD) ministry is now planning to include the POSCO
amendment so as to provide for the death penalty even in case of rape of boys under the age of 12.
 Was there no capital punishment for rape laws until now?
The maximum punishment for rape along with murder of the victim has been death. However until now, there was no
mention of capital punishment under the rape law, but for murder dealt with under section 302 of the IPC. The Justice
JS Verma Committee formed in the aftermath of the December 2012 Delhi-gang rape and murder ruled that, “Death
penalty would be a regressive step in the field of sentencing and reformation”. Reacting to the discontent in the wake
of the case, the then UPA government decided to include the death penalty in the rape law in two specific cases. The
death penalty was made the maximum punishment for

15
1) IPC sections 376A- Rape causing death or causing the woman to be in a persistent vegetative state.
2) IPC sections 376E-For repeat offenders.
This time, the NDA government has responded with the current ordinance, justifying it as being exemplary punishment
considering the brutality of the act.
 India 14th
country in the world to award capital punishment for child rape- Other countries are Qatar, Bahrain,
Jordan, Kuwait, UAE, China, Cuba, Mauritania, Sudan, Tajikistan, Thailand, Tunisia and Vietnam.
Arguments against the amendment
 Capital Punishment is all about retribution, disregards the reformative aspect of the criminal justice system, and is
said to have little deterrent effect.
 The primary argument against awarding capital punishment for rape has been that it would drive the accused to
kill the victim to get rid of evidence.
 The new law fails to factor in the fact that a majority of sexual assault cases go unreported due to the child’s silence
or lack of support from family members. As per National Crime Records Bureau statistics on rape of women and
children, 94% of the rapists are known to the victim and almost half the perpetrators include the father, a
brother, a grandfather, a close relative, and neighbours. Critics feel that the death penalty would put undue
pressure on the girl child to suppress the matter or in some cases the perpetrators can turn hostile against the
victim, especially during the fag end of a trial.
 One of the striking features of the amendment is its arbitrariness in terms of the cutoff age of 12 years. A recent
study conducted by ‘Rahat’ an NGO, found that children aged between 11 and 18 are most vulnerable,
accounting for almost 51% of the cases. Only 2% of the assault cases against children aged between six and ten
resulted in acquittals, while the proportional of acquittals was as high as 38% in cases involving children aged
between 11 and 15 years, and 54% in cases where the victim was aged between 16 and 18. It suggested a
tendency to disbelieve adolescents or a trend of the victims turning hostile.
 There is also the issue of “sentencing arbitrariness” cited by the Justice Verma Committee. Again, a 2016 study by
the centre on Death Penalty found that a majority of death row inmates belonged to the backward section or
religious minorities, or were economically vulnerable.
Conclusion
 Deterrence of the crime and the victim’s access to justice require both better implementation of the existing laws
and systematic changes-Less than 3% of child rape cases that came up before the courts ended in convictions.
The pendency rate at the level of police investigation is a staggering 31% and at the trial stage is 89%. This
indicates that access to justice is the biggest problem that needs to be resolved.
 Section 166A of IPC provides for rigorous imprisonment up to two years for a police officer who fails to record
the information given to him in cases of rape. This is rarely invoked, although a number of victims complain of
having been turned away at police stations.

16
 The new ordinance provides for fast-track courts, and a two-month time period each for police investigation and
completion of trial of all rape cases. But it is mum on the appointment of more judges to handle the burden or
sensitizing the judiciary and the police in dealing with such cases.
 It is also silent on victim support and rehabilitation, despite evidence pointing to the need for one so that victim
can be facilitated at every stage from the police station, to hospital and courts.
PENINSULA AND SUBCONTINENT
PROXIMITY & DIVERGENCE
Introduction
As hopes for peace and reconciliation surged in the Korean peninsula after the summit level meeting between the North
and South. Many political commentators and analysts are trying to find resonance between the peace process in the
Korean Peninsula and the stalemate in the subcontinent. The following article is an attempt to understand the
commonalities and differences between the two regions and why there is some wistfulness in the subcontinent at the
absence of a peace process between India and Pakistan.

17
Similarity between the Subcontinent & the Peninsula
Although neither region figures prominently in the political imagination of the other, there are some common features
between the conflicts in the Peninsula and the Subcontinent.
 For one both the regions were partitioned after the Second World War.
 For another, nuclear weapons loom large over them.
That is probably where the similarity ends.
Differences between the Subcontinent and the Peninsula
The differences between the two regions, however, are far more striking.
 The religious and voluntary basis of the South Asian partition stands in contrast to the geopolitically engendered
partition of the Korean peninsula. The communal cleavage was responsible for the partition of the subcontinent
whereas the Korean fallout was a direct concomitant of the differences that emerged during the cold war.
 Both the North and South Korea are formally committed to the idea of unification. In the subcontinent such
discussions have yet not attained socio-economic and political unanimity. After all many in Pakistan fear that India
is not reconciled to the partition and wants to undo it. The idea of Akhand Bharat has always attracted more
controversies than being viewed as a socio-cultural melting pot. Economic unification of the region has remained
an elusive dream.
Drawing Parallel Lines: Subcontinent and Peninsula
The shared commitment to unification, however, has not gotten the divided peninsula very far. Even the most optimistic
scenario does not envisage the disappearance of North Korea as a state. What is being considered is a peace treaty, an
open border, greater economic cooperation. So notwithstanding the idea of unification there are some underlying
similarities that one can observe between the two regions.
 However the current peace process is certainly animated by the idea of ONE-KOREA. In the case of the Indian
subcontinent, the idea of a shared identity, of course, faces much resistance from Pakistan. But the agenda for
negotiation has not been very different between New Delhi and Islamabad- resolving long standing political
disputes and normalizing economic and cultural relations.
 The same can’t be said about the nuclear question in the Subcontinent and the Peninsula. In Korea the entire focus
is on the “denuclearization” of the Korean Peninsula. The Subcontinent is armed with two nuclear states. Whereas
the situation is different in the peninsula, while the North has its own nuclear arsenal the South depends on
extended deterrence offered by the United States.
 After the Indian and Pakistani nuclear tests, the world first demanded that Delhi and Islamabad roll back their
nuclear and missile programmes. But soon enough it was clear that the international community had to live with a
Nuclear South Asia. On top of it India has been nearly integrated into the global nuclear order which has only irked
the Pakistani establishment.

18
 The relationship between nuclear weapons and peace is also framed differently in the two regions. In Korea De-
nuclearisation is seen as a precondition for peace. In South Asia, many experts believe, political reconciliation
will help in reducing tensions.
 An equally important difference relates to the way North Korea and Pakistan have defined the strategic value of
nuclear weapons. If Kim sees nuclear weapons as the key to unlocking peace, the Pakistan army saw them as
providing the impunity to conduct a low intensity conflict against its neighbours-India and Afghanistan-through
cross-border terrorism.
 A major difference between the two regions is the role of great powers. Although no region in Asia was immune
from the great power rivalry during the cold war. The Peninsula was a frontline theatre in the conflict between the
Communist and the Capitalist block. The US and the People’s Republic of China fought each other in the Korean
peninsula during the 1950-53.
 Since the end of cold war, the US, China, Russia and Japan have played an active role in promoting peace in the
Peninsula through the framework of six-party dialogue involving the two Koreas. India took the Kashmir question
to the UNSC. It once accepted the American and Soviet mediation with Pakistan in the 1960s. However after 1971
Indo-Pak war, India has emphasized upon bilateral approach with Pakistan and fended off frequent efforts by
Pakistan to make it a Global issue.
Conclusion
However the Korean effort offers some ground lessons for both India and Pakistan. India can learn that, there is always
room for creative diplomacy. For Pakistan too Kim offers a good lesson that nuclear weapons are not an end in
themselves and the leverage offered by nuclear weapons could be traded for economic benefit and normalization of
relations with the adversaries. But Pakistan army is a long way from that recognition. The South Asian Stalemate, then, is
likely to endure even as South and North Korea appear poised to turn the page.

19
Prompt Corrective Action (PCA)
A Surgical Tool or a Step towards Privatisation
Introduction
RBI’s decision to initiate “prompt corrective action” (PCA) against large state-owned lender Bank of India (BOI) led to
rumours that the government may close down some banks. Later on the RBI clarified that the PCA framework is not
intended to constrain normal operations of the banks for the general public but is intended to improve the overall health of
an ailing Bank. Many Banks like the IDBI, Allahabad Bank and the Bank of India have been brought under the scanner of
PCA.
The PCA framework has been in operation since December 2002 and the recent guidelines are only a revised version of the
earlier framework. However many Bankers and Bank association are looking at the recent guidelines as an attempt to
curtail their independence.
The Reserve Bank of India (RBI) has placed 11 public sector banks (PSBs) out of 21 State-owned banks under its Prompt
Corrective Action (PCA) framework. The 11 banks already under PCA framework are IDBI Bank, UCO Bank, Bank of India
(BoI), Central Bank of India, Indian Overseas Bank, Dena Bank, Oriental Bank of Commerce (OBC), Bank of Maharashtra
(BoM), United Bank of India, Corporation Bank and Allahabad Bank.
WHAT IS PCA FRAMEWORK?
RBI introduces Prompt Corrective Action when the Bank’s financial conditions worsen below certain limits (trigger points).
The PCA framework specifies the trigger points or the level in which the RBI will intervene with corrective action. This
trigger points are expressed in terms of parameters for the banks.
The parameters that invite corrective action from the central bank are:
1. Capital to Risk weighted Asset Ratio (CRAR).
2. Net Non-Performing Assets (NPA).
3. Return on Assets (RoA).
4. Leverage ratio.
When these parameters reach the set trigger points for a bank (like CRAR of 9%, 6%, 3%), the RBI will initiate
certain structured and discretionary actions for the bank.
‘Capital Adequacy Ratio’ - CAR
The Capital Adequacy Ratio (CAR) is a measure of a bank’s available capital expressed as a percentage of a bank’s
risk-weighted credit exposures. The Capital Adequacy Ratio, also known as capital-to-risk weighted assets ratio
(CRAR), is used to protect depositors and promote the stability and efficiency of financial systems around the
world. Two types of capital are measured: tier one capital, which can absorb losses without a bank being required

20
to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a
lesser degree of protection to depositors.
Tier One and Tier Two Capital
Tier one capital is the capital that is permanently and easily available to cushion losses suffered by a bank without
it being required to stop operating. A good example of a bank’s tier one capital is its ordinary share capital.
Tier two capital is the one that cushions losses in case the bank is winding up, so it provides a lesser degree of
protection to depositors and creditors. It is used to absorb losses if a bank loses all its tier one capital.
Net Non-Performing Assets
Gross non-performing asset is a term used by financial institutions to refer to the sum of all the unpaid loans
which are classified as non-performing loans.
Credit institutions offer loans to their customers who fail to be honoured and within ninety days, financial
institutions are obligated to classify them as non-performing assets because they are not receiving either
principle or interest payments.
Net Non-Performing Assets is a term used by credit institutions to refer to the sum of the non-performing loans
less provision for bad and doubtful debts. Credit institutions tend to provide a precautionary amount to cover the
unpaid debts.
Therefore, if one deducts provision for unpaid debts from the unpaid debts, the resulting amount refers to the
net non-performing assets.
Return on Assets
ROA tells you what earnings were generated from invested capital (assets). Return on Assets (ROA) is an indicator
of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at
using its assets to generate earnings. Calculated by dividing a company’s annual earnings by its total assets, ROA is
displayed as a percentage. Sometimes this is referred to as “Return on Investment”(ROI).
Leverage Ratio
A leverage ratio is any kind of financial ratio that indicates the level of debt incurred by a business entity against
several other accounts in its balance sheet, income statement, or cash flow statement.

21
There are several different leverage ratios that may be considered by market analysts, investors, or lenders. Some
accounts that are considered to have significant comparability to debt are total assets, total equity, operating
expenses and incomes.
Below are most commonly used leverage ratios:
1. Debt-to-Assets Ratio = Total Debt / Total Assets
2. Debt-to-Equity Ratio = Total Debt / Total Equity
3. Asset-to-Equity Ratio = Total Assets / Total Equity
Note:-The PCA framework is applicable only to commercial banks and not extended to co-operative banks, non-banking
financial companies (NBFCs) and Financial Market Intermediaries (FMIs).
 PCA norms allow the RBIto place certain restrictions such as haltingbranch expansionand stoppingdividendpayment.
It can even cap a bank’s lending limit to one entity or sector. Other corrective actions that can be imposed on banks
include special audit, restructuring operations and activation of recovery plan. Banks’ promoters can be asked to
bring in new management, too. The RBI can also supersede the bank’s board, under PCA.
Controversy around PCA
 The All India Bank Officers’ Confederation (AIBOC) has questioned the imposition of the norms of Prompt Corrective
Action (PCA) by Reserve Bank of India (RBI) on a few public sector banks. They have termed it as nothing but an initiative
towards privatisation or merger of public sector banks. They further added Most of the loans that have become NPAs are
large advances sanctioned at the board-level consisting of RBI representatives and members nominated by the Central
Government. Employees and officers of these banks had little to do in this regard, he said.
 They also suggested that instead of looking at the miserable plight of the NPA position of these banks, the government
would do better by bringing in a specific and stringent law that empowers the banks to initiate legal action against willful
defaulters.
 But RBI has clarified that the PCA framework is not intended to constrain normal operations of the banks for the
general public. The RBI further clarified that the framework is one of the various measures/tools that it uses to maintain
sound financial health of banks.
Significance of the PCA Framework
 Prevention is better than cure: The PCA framework is one among the many preventive steps that have been taken
by the RBI to help strengthen the banks’ balance sheets.
 Basel III compliance: This is also a step closer towards the Basel III norms. RBI has kept the deadline for all the
Indian banks to comply with the norms till March 2019.
 The Basel III capital regulation is being implemented from 1 April, 2013 in India in phases, and it will be fully
adopted as on 31 March, 2019.

22
 But, there are attempts by the banks and the government to defer this timeline. In June 2017, the finance ministry
argued for pushing back this deadline in view of higher capital requirement to deal with bad loans.
 The State Bank of India (SBI) report, ‘Timing Future Reforms in India’ released in October 2017, also predicted that
India may delay the full compliance to the Basel III norms beyond the march 2019 deadline.
Tamal Bandyopadhyay, author of the book From Lehman to Demonetization: A Decade of Disruptions, Reforms and
Misadventures in his article Banking reforms: Why privatization is better than mergers uses a corollary based on human
diseases to describe the PCA Framework:
According to him, none of the banks that have so far been put under PCA meets the criteria for being wound up. He
further explains that this does not mean that they just have flu. They have cancer; depending on the stage of the disease,
they need radiation, chemotherapy and surgery.
CONCLUSION
The need for capital is growing for the banks. The RBI has initiated many steps keeping in mind different contexts. These
actions although seem good and mandatory but they also constrain the lending ability of banks. The need of a growing
and emerging economy is availability of credit for investment purposes. The gross fixed capital formation is at an all time
low. So, The RBI should not overburden the banks. The balance between growth and regulation needs to be kept in view.
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