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Daily News Analysis

06 th January 2025

Topics To be Covered:
✓ Cross-Border Insolvency in India
✓ National Security Act, 1980
✓ Avian Influenza
✓ Golden Langur
✓ Income Inequality in India
✓ Banihal Bypass and Jammu-Srinagar Highway Projects
✓ CBI Doesn’t Need State Consent to file an FIR: Supreme Court
✓ High-End Tourism Infra in Great Nicobar
✓ Indus Valley Script
✓ News in Short

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Topics
Cross-Border Insolvency in India
Subject: GS 3: Economy
Context:
The growth in international trade has amplified cross-border insolvency challenges, highlighting the need for
effective regulation.
About Cross-Border Insolvency
❖ Insolvency is a financial state where a person or company is unable to pay back their debts on time.
❖ Cross-border insolvency deals with cases where an insolvent debtor has assets or creditors in more than
one jurisdiction.
❖ Essential for effective regulation in a globalized economy to:
➢ Facilitate corporate restructuring.
➢ Attract foreign investments and economic stability
Historical Background of Cross-Border Insolvency in India
❖ Pre-Independence Era:
➢ Indian Insolvency Act, 1848: First insolvency law introduced under British rule, focusing only on
domestic insolvencies.
➢ Presidency-Towns Insolvency Act, 1909: Applied to major cities (Calcutta, Bombay, and Madras).
➢ Provincial Insolvency Act, 1920: Governed insolvencies in mofussil (rural) regions.
✓ Limitation: These laws failed to address cross-border insolvency complexities as the focus was only
on domestic insolvency issues.
❖ Post-Independence Era:
➢ Insolvency laws from the British era continued without substantial amendments.
➢ Third Law Commission’s 26th Report (1964): Recommended modernizing insolvency laws to keep up
with economic developments, but no concrete steps were taken .
❖ 1990s Economic Liberalization:
➢ Globalization led to an increase in cross-border trade and investment.
➢ The need for a comprehensive insolvency law to manage cross-border cases became apparent.
➢ Committees like the Eradi Committee (2000), Mitra Committee (2001), and Irani Committee (2005)
recommended adopting the UNCITRAL Model Law on Cross-Border Insolvency (1997).
❖ Insolvency and Bankruptcy Code (IBC), 2016:
➢ In 2015, the Bankruptcy Law Reform Committee, drafted the Insolvency and Bankruptcy Code
(IBC) Bill, focusing on domestic insolvencies.
➢ Aimed to consolidate and modernize insolvency laws.
➢ Included Section 234 (reciprocal agreements) and Section 235 (requests to foreign courts) for cross-
border insolvency.
➢ Limitation: These sections remain unenforceable due to the lack of reciprocal agreements and slow
policy implementation.

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Insolvency and Bankruptcy Code (IBC), 2016

❖ IBC, 2016 was enacted to consolidate and amend laws relating to insolvency and bankruptcy for:
➢ Corporate entities. Expert Recommendations
➢ Partnership firms. ❖ Committees:
➢ Individuals. ➢ Eradi Committee (2000), Mitra Committee
❖ Goal: To resolve insolvency in a time- (2001), and Irani Committee (2005) recommended
bound manner, ensuring creditor protection adopting UNCITRAL Model Law on Cross-
and debt recovery. Border Insolvency (1997).
❖ Objectives ➢ Insolvency Law Committee (2018) and Cross-
➢ Time-Bound Process: Resolves Border Insolvency Rules/Regulation Committee
insolvency within 180 days (2020) reinforced this recommendation.
(extendable by 90 days). ❖ Parliamentary Reports:
➢ Maximization of Asset Value: Avoids
➢ Thirty-Second Report (2021) and Sixty-Seventh
unnecessary asset depletion during
Report (2024) stressed the urgent need for a
proceedings.
structured cross-border insolvency framework.
➢ Promoting Entrepreneurship:
Facilitates easy exit for failed businesses.
➢ Ease of Doing Business: Improves India's global ranking by creating a predictable insolvency framework.
➢ Creditor Confidence: Ensures transparency and fairness in debt recovery.
❖ Key Features
➢ Adjudicating Authorities:
✓ National Company Law Tribunal (NCLT): Handles corporate insolvency.
✓ Debt Recovery Tribunal (DRT): Handles insolvency for individuals and partnership firms.
➢ Insolvency Professionals (IPs): Act as intermediaries managing the insolvency resolution process (IRP).
✓ Appointed by the Insolvency and Bankruptcy Board of India (IBBI).
➢ Corporate Insolvency Resolution Process (CIRP): Initiated by creditors or debtors for corporate
entities.
✓ Resolution plan to be approved by the Committee of Creditors (CoC).
➢ Time-Bound Resolution: 180-day resolution period with an extension of 90 days in exceptional cases.
➢ Moratorium: Provides a legal stay on claims and actions against the debtor during insolvency
proceedings.
➢ Liquidation Process: Initiated if no resolution is achieved within the stipulated timeline.
➢ Waterfall Mechanism: A prioritized repayment structure under IBC where insolvency resolution costs
are paid first, followed by secured creditors, workmen dues, unsecured creditors, government dues,
and lastly equity shareholders.
✓ It ensures orderly distribution of proceeds during liquidation.
❖ Key Provisions
➢ Section 7: Financial creditors can file an application to initiate the Corporate Insolvency Resolution
Process (CIRP).
➢ Section 9: Operational creditors can file an application to initiate CIRP after delivering a demand notice
to the debtor.

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➢ Section 10: Debtors themselves can

voluntarily initiate CIRP by filing an Reciprocal Agreements: Bilateral arrangements between
countries under Section 234 of the IBC to mutually recognize
application.
and enforce insolvency proceedings.
➢ Section 29A: Disqualifies willful
❖ These agreements enable cooperation between
defaulters, promoters of defaulting
jurisdictions for handling cross-border insolvency cases
companies, and related persons from
effectively.
submitting a resolution plan.
✓ Prevents misuse of the process by defaulting promoters.
➢ Cross-Border Insolvency: Added in 2018 on the recommendations of The Bankruptcy Law Reforms
Committee (BLRC).
✓ Section 234: Reciprocal agreements with foreign countries for cross-border insolvency proceedings.
✓ Section 235: Enables Indian adjudicating authorities to request assistance from foreign courts.
Recent developments
❖ 2018: The Insolvency Law Committee (ILC) Part Z: A proposed framework under the IBC,
recommended the adoption of the UNCITRAL Model 2016, incorporating the UNCITRAL Model
Law on Cross-Border Insolvency, 1997, and proposed Law on Cross-Border Insolvency to govern
a new framework called Part Z to comprehensively recognition, cooperation, and resolution of
address cross-border insolvency issues. international insolvency cases.
❖ 2020: The Cross-Border Insolvency Rules/Regulation
Committee (CBIRC) was constituted to propose rules and regulations for implementing Part Z.
❖ Current Status: Cross-border insolvency provisions are yet to be fully implemented, and Sections 234 and
235 remain non-functional due to the absence of reciprocal agreements and required notifications.
➢ Legislative efforts to adopt the UNCITRAL Model Law and operationalize cross-border insolvency
are ongoing.
Need for Cross-Border Insolvency in India:
❖ Increasing Global Trade and Investments: India's growing global economic integration requires a robust
framework for handling insolvency involving multinational companies.
➢ India has been executing Free Trade Agreements (FTAs), Comprehensive Economic Corporation
Agreements (CECAs), Comprehensive Economic Partnership Agreements (CEPAs) and their
equivalents.
➢ As per the Commerce Ministry, India has signed such agreements with more than 54 countries.
❖ Protection of Creditor Interests: Ensures equitable treatment of domestic and foreign creditors, fostering
investor confidence.
❖ Efficient Asset Recovery: Enables retrieval of assets spread across multiple jurisdictions, reducing delays and
asset value loss.
❖ Addressing Jurisdictional Conflicts: Provides clarity on the Centre of Main Interest (COMI) to resolve
disputes and prevent overlapping proceedings.
❖ Alignment with Global Standards: Adoption of the UNCITRAL Model Law will place India on par with
countries like the USA, UK, and Singapore, attracting foreign investments.

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Key Cases of Cross-Border Insolvency

Jet Airways (India) Limited Case (2019)
❖ Jet Airways faced insolvency proceedings in India and the Netherlands simultaneously.
❖ Dutch bankruptcy administrators sought recognition of the Netherlands proceedings by the National
Company Law Tribunal (NCLT), Mumbai.
❖ Key Issues:
➢ No reciprocal agreement under Sections 234 and 235 of IBC.
➢ Jurisdictional conflict between Indian and Dutch courts.
❖ Outcome:
➢ The National Company Law Appellate Tribunal (NCLAT) directed joint insolvency resolution
proceedings in India and the Netherlands under a Cross-Border Insolvency Protocol.
➢ Recognized the Centre of Main Interest (COMI) in India and Dutch proceedings as secondary.
Videocon Industries Limited Case (2019)
❖ Videocon Group’s insolvency proceedings involved domestic subsidiaries and foreign assets across
multiple jurisdictions.
❖ Key Issues:
➢ Whether foreign subsidiaries’ assets should be included in Indian insolvency proceedings.
➢ Lack of clarity on group insolvency and cross-border frameworks.
❖ Outcome:
➢ NCLT ordered the inclusion of foreign subsidiaries' assets under the resolution plan.
➢ Emphasized the need for legal provisions addressing group insolvency and cross-border disputes.

UNCITRAL Model Law on Cross-Border Insolvency

❖ Adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1997.
❖ Provides a framework for managing cross-border insolvency cases to facilitate cooperation between
countries.
❖ Focuses on procedural harmonization, not substantive insolvency laws.
❖ Core Principles (Four Pillars)
➢ Access: Foreign representatives can directly approach domestic courts.
➢ Recognition: Simplifies recognition of foreign insolvency proceedings as "main" or "non -main"
proceedings.
✓ "Main proceeding" is where the Centre of Main Interest (COMI) is located.
➢ Relief: Provides assistance to foreign courts, including moratoriums and asset protection.
➢ Cooperation and Coordination: Courts and insolvency professionals must cooperate with their
foreign counterparts.
❖ Adoption by Countries
➢ Adopted by 60 countries, including the USA, UK, Australia, Japan, and South Africa.
➢ India is yet to adopt the Model Law but aims to implement it through Draft Part Z of the IBC, 2016.
Key Challenges in Cross-Border Insolvency in India
❖ Absence of a Comprehensive Framework: India lacks a robust legal framework for cross-border insolvency;
Sections 234 and 235 of the IBC remain unenforceable due to the absence of reciprocal agreements.

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➢ In the Jet Airways (2019) case, Dutch proceedings were stalled as no legal mechanism existed for
cooperation between Indian and Dutch courts.
❖ Jurisdictional Conflicts and COMI Determination: Determining the Centre of Main Interest (COMI) is
often complex, leading to disputes.
➢ The absence of COMI-related provisions in India hampers clarity in cross-border disputes.
❖ Ad Hoc Protocols Instead of Structured Mechanisms: Cross-border insolvency cases are currently resolved
through temporary protocols, increasing costs and delays.
❖ Lack of Judicial and Institutional Capacity: NCLT is overburdened, with more than 22,000 pending cases
(as of 2024), leaving little bandwidth for cross-border matters.
➢ Cross-border cases require specialized knowledge, which the Indian judicial system is still developing.
❖ Unaddressed Group Insolvency Issues: India lacks a framework for group insolvency, leading to
fragmentation in resolving cases involving multinational companies.
➢ In Videocon Industries Ltd. (2019), the NCLT had to extend jurisdiction over foreign subsidiaries
without a formal framework.
❖ Uncertainty for Foreign Investors: The absence of clear rules on cross-border insolvency deters foreign
creditors from engaging with Indian companies.
Recommendations on Cross-Border Insolvency in India
❖ Adoption of the UNCITRAL Model Law: Recommended by the Insolvency Law Committee (ILC, 2018)
and Cross-Border Insolvency Rules/Regulation Committee (CBIRC, 2020).
➢ Provides a standardized framework emphasizing cooperation, recognition of foreign proceedings, and
creditor protection.
❖ Incorporation of Draft Part Z into IBC: Proposed by the ILC to serve as India's cross-border insolvency
framework. Includes provisions for:
➢ Determining the Centre of Main Interest (COMI).
➢ Simplifying recognition and cooperation processes.
➢ Ensures streamlined management of foreign insolvency proceedings.
❖ Empowering NCLT for Cross-Border Cases: Vest NCLT benches with jurisdiction over foreign entities and
cross-border matters.
➢ Principal Bench of the NCLT to handle foreign cases to ensure consistency.
❖ Strengthening Judicial and Administrative Capacity: Conduct specialized training for judges and
insolvency professionals to handle complex cross-border cases.
➢ Build infrastructure for seamless international communication and coordination.
❖ Improved Communication Mechanisms: Adopt the Judicial Insolvency Network (JIN) Guidelines for
court-to-court communication.
➢ Enable direct communication between Indian and foreign representatives for efficient resolutions.
❖ Reciprocal Agreements: Expedite reciprocal agreements under Section 234 of the IBC to facilitate cross-
border recognition and enforcement.
❖ Focus on Group Insolvency: Develop a framework for resolving group insolvency cases involving
multinational corporations.

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❖ Code of Conduct for Foreign Representatives: Introduce a minimalistic code of conduct to regulate foreign
representatives under IBBI’s supervision.
➢ Ensure accountability through investigation and disciplinary mechanisms.
Conclusion:
A robust cross-border insolvency framework is critical for India's economic stability, global trade participation,
and foreign investment. Adopting the UNCITRAL Model Law through Part Z will streamline international
insolvency processes, enhance judicial cooperation, and align India with global best practices. Swift
implementation and capacity-building are essential to address current challenges.
News Source: The Hindu
National Security Act, 1980
Subject: GS 2: Polity and Governance
Context
Manipur Governor Ajay Kumar Bhalla held a security review meeting and suggested the use of the National
Security Act (NSA), 1980, to detain miscreants and troublemakers for up to a year without trial.
More on News: About United National Liberation Front (UNLF):
❖ Ethnic Violence: Persistent clashes
It is a separatist insurgent group active in the state of Manipur
between Meitei and Kuki-Zo communities,
in Northeast India.
particularly in buffer zones like
❖ Formation: Founded in 1964.
Yaingangpokpi (YKPI), causing instability.
❖ Objective: To establish a sovereign and socialist
❖ Ceasefire Violations: The Pambei faction
Manipur.
of the UNLF violated peace ground rules,
undermining the 2023 agreement. ❖ Activities: Engaged in armed struggle against the Indian
government since the 1990s.
About National Security Act (NSA), 1980
❖ 2023 Agreement: In November 2023, the Indian
❖ NSA is a Preventive Detention Law
government, the Manipur state government, and the
enacted in 1980 to maintain public order
UNLF signed a peace agreement, marking a significant
and national security.
step towards resolving the conflict.
➢ Preventive Detention: Involves
detaining a person to prevent them from committing future crimes or evading future prosecution.
❖ The act also provides for the constitution of a National Security Council, which advises the Prime Minister
on matters relating to national security.
Constitutional Provisions for NSA, 1980
❖ Article 22(3)(b): Permits preventive detention and restrictions on personal liberty for state security and public
order.
❖ Article 22(4): Limits preventive detention to three months unless:
➢ An Advisory Board determines sufficient cause for detention.
➢ The detention complies with laws enacted by Parliament.
❖ Article 22(5): Provides detained individuals the right to make an effective representation before an
independent advisory board.
➢ The board consists of three members, with one being a current or former high court judge.

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Provisions of NSA 1980:

❖ Administrative Order: Detention orders are issued by the Divisional Commissioner or District Magistrate
(DM), not the police.
❖ Protection for DM: Officials who issue detention orders are protected under the Act and cannot be prosecuted
for their actions.
❖ Grounds for Detention: Central or State Governments can detain individuals to prevent harm to:
➢ National defense.
About National Security Council
➢ Relations with foreign countries. ❖ National Security Council (NSC): The Act provides for
➢ National security. the constitution of the NSC.
➢ Public order. ❖ High-Level Body: Advises the Prime Minister on
➢ Essential supplies and services. national security, strategic policy, and defense.
❖ Police Custody: The District Magistrate ❖ Structure: A three-tiered organization addressing
can invoke the NSA even if the individual political, economic, energy, and security concerns.
is already in police custody. ❖ Chairperson: The Prime Minister.
❖ Period of Confinement: The maximum ❖ Establishment: Formed in 1998 to deliberate on all
detention period is 12 months. aspects of national security.
➢ Detainees may be held for up to 10 Members of NSC
days without being informed of
❖ National Security Advisor (NSA).
charges.
❖ Chief of Defence Staff (CDS).
❖ Bail Cases: A person released on bail can
❖ Deputy National Security Advisors.
still be detained under the NSA.
❖ Ministers of Defence, External Affairs, Home Affairs,
❖ Acquitted Persons: Even if acquitted by
and Finance.
the court, individuals can be detained under
the NSA. ❖ Vice Chairman of the NITI Aayog.
❖ Rights Restricted: Detainees lose the constitutional right to be presented before a magistrate within 24 hours.
➢ Detainees cannot apply for bail in criminal court.
❖ Legal Process:
➢ Detainees can appeal to the advisory board.
➢ The arrested person is also not entitled to the aid of any legal practitioner in any matter connected
with the proceedings before an advisory board, which is constituted by the government for dealing
with NSA cases.
❖ Limited Protection Against NSA
➢ Writ of Habeas Corpus: This writ is the only constitutional safeguard against the misuse of detention
powers under the NSA.
❖ Similar to Colonial Era Laws
➢ Bengal Regulation III (1818): Empowered arrests based on suspected criminal intent.
➢ Rowlatt Acts (1919): Allowed imprisonment without trial.
Limitations of NSA
❖ Potential for Misuse: Broad detention powers often lead to arbitrary arrests, as seen in Manipur (2023), where
NSA was invoked amid ethnic violence, targeting specific communities and escalating tensions.

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❖ Lack of Judicial Oversight: Detention without trial or legal representation undermines constitutional
safeguards, fostering resentment among detainees and their families.
❖ Human Rights Concerns: Prolonged detentions invite criticism, such as during the CAA protests (2019-
2020), where individuals were detained without clear charges, raising global human rights concerns.
❖ Impact on Rehabilitation: Detaining misguided youth, as seen in Jammu and Kashmir (2022), risks
alienating them further, hampering long-term peace and dialogue efforts.
Way Forward
❖ Strengthen Oversight: Introduce judicial review for NSA cases to prevent misuse and ensure accountability.
❖ Use Alternative Measures: Focus on dialogue and rehabilitation, particularly for youth in conflict zones like
Manipur.
❖ Improve Law Enforcement: Deploy coordinated security operations that respect human rights, ensuring
grievances are addressed without broad detention powers.
News Source: The Hindu
Avian Influenza
Subject: GS 3: Science and Technology
Context:
Maharashtra reported India’s first H5N1 avian influenza case in animals, marking a significant wildlife health
concern.
Recent Impact on Animals:
❖ Mortality: Three tigers and one leopard succumbed to H5N1 at the Balasaheb Thackeray Gorewada Zoo,
Nagpur.
❖ Transmission: Animals were infected after being rescued from Chandrapur, highlighting disease spread in
captive wildlife.
❖ First Instance in India: This is the first documented case of H5N1 causing fatalities among captive wildlife
in the country.
About Avian Influenza (H5N1)
❖ H5N1 Overview
➢ H5N1 is a type of influenza virus causing severe respiratory disease in birds.
➢ It is a subtype of the influenza A virus, classified based on surface protein properties.
❖ Classification of Influenza A Viruses
➢ Influenza A viruses are categorized by hemagglutinin (H) and neuraminidase (N) proteins.
➢ There are 18 hemagglutinin (H1-H18) and 11 neuraminidase (N1-N11) subtypes.
Emergence and Evolution of H5N1 Bird Flu
❖ 1996-1997: H5N1 was first identified in domestic waterfowl in Southern China.
➢ Named A/goose/Guangdong/1/1996, it caused outbreaks in China and Hong Kong with 18 human cases
(6 deaths).
❖ 2003-2005: H5N1 re-emerged, causing widespread poultry outbreaks across Asia, spreading to Africa, the
Middle East, and Europe via wild birds.
❖ 2014-2016: Gene-swapping led to H5N6 and H5N8 subtypes, diversifying hemagglutinin (HA) into clade
2.3.4.4.

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❖ 2018-2020: Clade 2.3.4.4b becomes predominant globally, replacing original H5N1 viruses.
❖ 2021-2023: Clade 2.3.4.4b H5N1 detected in wild birds in Canada and the U.S., causing outbreaks in poultry
and sporadic infections in humans and mammals.
➢ Example: A(H1N1), which causes swine flu.
Transmission of Avian Influenza
❖ Bird-to-Bird: Transmitted via direct contact, saliva, nasal secretions, feces, or contaminated surfaces.
❖ Bird-to-Human: Rare but occurs through close contact with infected birds or contaminated environments.
❖ Human-to-Human: As per research Published in Science Journal The H5N1 avian influenza virus is one
mutation away from becoming infectious to humans, enabling it to spread from one person to another.
❖ Mortality and Pandemic Potential
➢ Mortality rates can reach up to 60%.
➢ Avian influenza is not currently on the WHO’s priority list of pathogens with pandemic potential.
Symptoms of Avian Influenza
❖ The symptoms of H5N1 infection may include fever (often high fever, > 38°C) and malaise, cough, sore
throat and muscle aches.
❖ Other early symptoms may include conjunctivitis and other non-respiratory symptoms.
❖ The infection may progress quickly to severe respiratory illness and neurologic changes (altered mental
status or seizures).
❖ H5N1 virus has also been detected in samples collected from people without symptoms who had exposure to
infected animals or their environments.
Preventive Measures and Recommendations
❖ Zoo and Wildlife Protocols
➢ Biosecurity measures to prevent bird access to other animals using nets and covers.
➢ Disinfection of footwear and equipment and maintenance of hygiene.
➢ Avoid feeding carnivores raw poultry or meat from unverified sources.
➢ Regular health monitoring of animals for unusual behavior or symptoms.
❖ State and Facility-Level Actions
➢ Temporary shutdown of affected facilities for public access.
➢ Isolation of infected or symptomatic animals.
➢ Enhanced surveillance and early detection measures across zoos and rescue centers.
❖ One-Health Approach: Integration of efforts across human health, animal health, and wildlife sectors to
address the risks of avian influenza comprehensively.
Additional Reading: Avian Flue
News Source: DTE
Golden Langur
Context
Recently a rare golden langur was killed in Assam's Bongaigaon sparking protests demanding protection for the
endangered species.

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About Golden Langur (Trachypithecus geei)

❖ Golden langurs are primates recognized by their distinctive golden fur,
which changes with seasons and geography.
❖ They are an endangered species endemic to Western Assam (India)
and Bhutan.
❖ Habitat
➢ They inhabit the upper canopy of sub-tropical forests in the
south and temperate forests in the north.
➢ Their habitat includes moist evergreen, tropical deciduous forests, riverine areas, and savannahs.
❖ Distribution Range: Found in a limited region bordered by:
➢ Foothills of Bhutan (north).
➢ Manas River (east).
➢ Sankosh River (west).
➢ Brahmaputra River (south).

❖ Divided into two populations:

➢ Northern extended population (Larger in number)
➢ Southern fragmented population.
❖ Ecological Role: As frugivores, golden langurs aid seed dispersal, contributing to forest regeneration and
ecological balance. Their presence serves as an indicator of forest health.

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❖ Conservation Status
➢ IUCN Red List: Endangered.
➢ CITES: Appendix I.
➢ Wildlife Protection Act, 1972 (India): Schedule I, providing maximum legal protection.
Threats to Golden Langurs Population
❖ Habitat Loss: Golden langurs face severe threats from deforestation and monoculture plantations, leading to
the destruction of their natural habitat.
❖ Restricted Habitat: Their range is limited by natural boundaries, including the Manas River (east), Sankosh
River (west), Brahmaputra River (south), and the foothills of Bhutan (north), increasing their risk of extinction.
❖ Habitat Fragmentation: Rural electrification projects and widespread deforestation in Assam have
significantly fragmented their habitat, isolating populations.
❖ Human-Wildlife Conflicts: Road accidents and electrocution pose direct threats to the survival of golden
langurs.
❖ Genetic Isolation: Obstructions like wires and forest gaps caused by felling have heightened the risk of
inbreeding among golden langur populations.
Conservation Efforts
❖ Key Protected Habitats in Assam
➢ Ripu Reserve Forest: Home to the largest population (2,847 individuals).
➢ Chakrashila Wildlife Sanctuary: Hosts 838 individuals from the southern range.
➢ Kakoijana Reserve Forest: Known for significant golden langur populations.
❖ Community initiatives in Assam for protection and awareness.
❖ Recent demands include building hanging bridges over highways and implementing traffic barricades at
high-risk areas to prevent accidents.
News Source: Indian Express
Income Inequality in India
Subject: GS 3: Economy
Context:
Income inequality in India improved in 2022-23 after worsening during the Covid-19 pandemic (2020-21),
reflecting the impact of effective post-pandemic recovery measures.
More on News:
❖ A working paper by the People Research on India’s Consumer Economy (PRICE) highlighted persistent
wealth concentration among the top income earners despite overall improvements in inequality.
Key Findings on Inequality
❖ The Gini index, a measure of income inequality:
➢ Improved from 0.463 post-independence to 0.367 in 2015-16.
➢ Worsened to 0.506 in 2020-21 due to pandemic disruptions.
➢ Improved to 0.410 in 2022-23, indicating reduced disparities.
❖ Income distribution trends (2022-23):
➢ Top 10%: Income share declined to 30.6% from 38.6% in 2020-21.

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➢ Bottom 50%: Share increased to 22.82%, up from 15.84% in 2020 -21.

➢ Middle 40%: Share rose to 46.6%, compared to 43.9% in 2020-21.
❖ The top 1% peaked at a 9.0% income share in 2020-21, which declined to 7.3% in 2022-23.
About Lorenz Curve and Gini Coefficient
❖ The Lorenz Curve is a graphical representation used to visualize the distribution of income or wealth
within a population.
❖ It compares the actual distribution of income or wealth with an ideal situation of perfect equality.
❖ Line of perfect Inequality: In the case of perfect equality, the Lorenz Curve would be a straight line at a 45-
degree angle.
❖ If there is income inequality, the Lorenz Curve
bends away from the line of perfect equality.
About Gini Coefficient
❖ The Gini Coefficient assigns a numerical value
between 0 and 1 to measure income or wealth
inequality.
❖ A Gini Coefficient of 0 represents perfect equality,
where everyone has the same income or wealth.
❖ A Gini Coefficient of 1 signifies perfect inequality,
where one person or household has all the income
or wealth, and everyone else has none.
❖ The Gini Coefficient is calculated by comparing the
area between the Lorenz Curve and the line of
perfect equality.
➢ Gini Coefficient = A/(A+B)
❖ Lorenz Curve helps visualize the distribution of
income or wealth.
❖ The Gini Coefficient provides a precise measure of the degree of inequality.

Factors of Inequality
❖ Pandemic Impact:
➢ Job losses and economic instability disproportionately affected the bottom 50%.
➢ Sectors like technology and e-commerce flourished, boosting the wealth of the top income earners.

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❖ Structural Barriers:
➢ Limited access to quality education, healthcare, and infrastructure, especially in rural areas.
➢ Concentration of wealth among top earners reflects entrenched economic disparities.
Government Initiatives to Address Inequality
❖ Social Welfare Schemes: Government has launched several schemes targeting the Inequality Issues such as:
➢ MGNREGA: Ensures employment for rural households, reducing income disparities.
➢ Direct Benefit Transfer (DBT): Delivers subsidies and benefits directly to beneficiaries.
❖ Financial Inclusion:
➢ JAM Trinity: Combines Jan Dhan accounts, Aadhaar, and mobile technology to improve access to
financial services.
➢ Pradhan Mantri Jan Dhan Yojana: Provides bank accounts to economically weaker sections.
❖ Social Security Net:
➢ Pradhan Mantri Suraksha Bima Yojana: Offers accident insurance to the underserved.
➢ Atal Pension Yojana: Secures income for workers in the unorganized sector.
➢ Pradhan Mantri Jeevan Jyoti Yojana: Provides life insurance for low-income groups.
❖ Employment and Skill Development:
➢ Skill India Mission: Focuses on enhancing employability through vocational training.
➢ MUDRA Bank: Offers microfinance to rural entrepreneurs.
➢ National Hub for SC/ST Entrepreneurs: Supports entrepreneurship among marginalized communities.
❖ Focus on Social Infrastructure: As per the Economic Survey (2017-18), the government prioritizes
education, health, and social protection to ensure inclusive growth.
Challenges in Tackling Inequality
❖ Entrenched Wealth Concentration: The top 10% still hold a significant share of national income,
highlighting the need for redistributive measures.
❖ Slow Recovery for Vulnerable Groups: The bottom 10% remain far behind, with their income share
recovering only marginally post-pandemic.
❖ Policy Implementation Gaps: Inefficiencies in delivering benefits of social programs reduce their impact on
inequality.
❖ Economic Shocks: External disruptions like pandemics and economic downturns exacerbate existing
disparities.
Way Forward
❖ Strengthening Social Safety Nets: Expand coverage and efficiency of welfare schemes to benefit the most
vulnerable.
❖ Progressive Taxation: Implement equitable tax policies such as Wealth Tax to reduce wealth concentration.
❖ Investment in Rural Development: Prioritize education, healthcare, and infrastructure in rural and
marginalized areas.
❖ Inclusive Growth Strategies: Ensure economic growth benefits all segments through targeted reforms and
equitable policies.
❖ Vigilance and Adaptive Policies: Regularly assess inequality trends and update policies to address emerging
challenges.
News Source: Indian Express

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Banihal Bypass and Jammu-Srinagar Highway Projects

Subject: GS 3: Economy
Context:
Union Transport and Highways Minister described the completion of a portion of the Banihal Bypass in Jammu
and Kashmir’s Ramban district as a milestone in strengthening “national security logistics” and enhancing
“tourism prospects of the region”.
About Banihal Bypass
❖ Project Overview: The newly constructed 2.35-kilometer Banihal Bypass is part of the Jammu-Srinagar
highway’s four-laning project.
❖ Completion and Cost: Completed at a cost of ₹224.44 crore, the bypass will be operational within 15 days.
❖ Design and Features:
➢ Includes 4 viaducts spanning 1,513 meters and 3 culverts.
➢ It starts at Kharpora and ends near the Navayuga Tunnel, bypassing the busy Banihal town.
Connecting projects in Jammu & Kashmir along with their significance:

Passes in Jammu & Kashmir

Name Range Important Notes
Aghil Pass Karakoram Range Strategically significant pass near the India-China border.
Karakoram Karakoram Range A vital route on the ancient Silk Road, located on the boundary
Pass between Ladakh (India) and China.
Burzil Pass Great Himalayan Connects Srinagar to Gilgit and serves as a historic route linking India
Range to Central Asia.
Banihal Pass Pir Panjal Range Links Jammu with the Kashmir Valley; the Jawahar Tunnel and
NH44 traverse this pass.

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Zoji La Zanskar Range NH1 passes through this pass, connecting Srinagar and Leh, crucial
for defense and tourism.
Khardung La Ladakh Range One of the highest motorable passes in the world, connects Shyok and
Nubra Valley.
Chang La Ladakh Range Gateway to the Pangong Lake region and vital for connecting regions
in Ladakh.
Qara Tag La Karakoram Range Strategic significance due to its location near the northern frontier.
Lanak La Ladakh Range Key pass on the eastern front of Ladakh near the India-China border.
Imis La Ladakh Range Important for local trade and movement in the region.
Mintaka Pass Karakoram Range A historically significant pass on the ancient Silk Route, connecting
South Asia to Central Asia.
Major Infrastructure Projects in Jammu & Kashmir
Project Name Description
Banihal Bypass A 2.35-km bypass on the Ramban-Banihal section of NH-44 with 4 viaducts and
3 culverts.
Connecting Jammu and Srinagar.
Jammu-Srinagar A ₹16,000-crore 4-laning project with 10 tunnels (21.5 km) and viaducts, creating
Highway an all-weather route.
Srinagar Semi Ring A ₹2,919-crore project spanning 60 km with culverts, flyovers, and bridges across
Road five districts in Kashmir Valley.
Srinagar-Baramulla- ₹823.45-crore project upgrading traffic flow with bypasses and flyovers on the
Uri Highway Narbal-Baramulla and Baramulla-Uri stretches.
Chenani-Nashri Tunnel A 9.28-km-long tunnel between Chenani and Nashri.
Z-Morh Tunnel A 6.5-km-long tunnel connecting Gagangir to Sonamarg.
Zoji La Tunnel A 13.5-km-long tunnel under construction on NH1 connecting Srinagar and Leh.
News Source: Indian Express
CBI Doesn’t Need State Consent to file an FIR: Supreme Court
Subject: GS 02 Polity
Context:
❖ The Supreme Court in a recent order held that the CBI does not require the sanction of a state
government to register an FIR under a Central legislation against a Central government employee.
❖ The Supreme Court set aside a 2023 judgment of the Andhra Pradesh High Court, quashing the CBI
investigations against two central government employees over corruption on the grounds of No consent from
the concerned state.
About the State Consent to CBI:
❖ Legal Provision: The CBI is required to obtain the consent of state governments before it can investigate
a crime in a particular state as specified in Section 6 of The Delhi Special Police Establishment (DSPE) Act
of 1946.
➢ The requirement of consent excludes Union Territories or railway areas.

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❖ Types: A State can provide its Consent to the CBI in two forms,
➢ Case-Specific: The CBI is required to apply for consent on a case-by-case
basis and cannot act before the consent is given.
➢ General: It is normally given by states to help the CBI in the seamless
investigation of cases of corruption against central government employees
in their states as they are not required to seek fresh permission every time.
❖ Withdrawal of General Consent: Presently, eight states, including Punjab,
Jharkhand, Kerala, West Bengal, Telangana, Meghalaya, Tamil Nadu and
Karnataka have withdrawn General Consent to the CBI
➢ Implications: The CBI cannot initiate new investigations within states that have withdrawn consent
unless they get state approval.
❖ Exception to General Consent: The CBI does not require State government’s consent in the following
situations when the,
➢ Cases ordered by the Supreme Court or High Court.
➢ Cases registered in other states or union territories.
➢ Cases registered before the withdrawal of the consent.
About The Central Bureau of Investigation (CBI):
❖ CBI is the premier investigating domestic police agency in India.
❖ Nodal Ministry: Dept. of Personnel, Ministry of Personnel, Pension & Public Grievances,
Government of India
❖ Origin: A Special Police Force was constituted in 1943 by an ordinance as a central Government Agency
to investigate cases of bribery and corruption.
➢ The ordinance was replaced by the Delhi Special Police Establishment Act, 1946.
➢ Establishment: The Central Bureau of Investigation was set up by a resolution dated 1st April,
1963
❖ Divisions: The CBI has the following wings,
➢ Anti-Corruption Division; Economic Offences Division; Special Crimes Division; Directorate of
Prosecution; Administration Division; Policy & Coordination Division; Central Forensic Science
Laboratory
❖ Superintendence: For investigations of offences under the Prevention of Corruption Act, 1988, the
superintendence vests with the Central Vigilance Commission.
➢ And in other matters with the Department of Personnel & Training (DOPT) in the Ministry of
Personnel, Pension & Grievances of the Government of India.
❖ Head: CBI is headed by the Director, CBI who is an IPS officer with the rank of Director General of
Police.
➢ Appointment: The CBI director is appointed by a committee under the Delhi Special Police
Establishment (DSPE) Act, 1946 made up of,
✓ The Prime Minister (chairs the committee); The leader of the opposition in the Lok Sabha and
The Chief Justice of India, or a Supreme Court judge nominated by the Chief Justice
➢ Tenure Security: The tenure of the CBI Director is a minimum of two years (mandated by the Central
Vigilance Commission (CVC) Act, 2003) which can be extended to a maximum of five years.

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✓ The Delhi Special Police Establishment (Amendment) Act, 2021 allows the CBI Director's
tenure to be extended to a maximum of five years
❖ Jurisdiction:
➢ Section 2 of the Delhi Special Police Establishment Act, 1946 gives CBI the jurisdiction to
investigate offences in the Union Territories only.
➢ Section 3: CBI is authorised to investigate only those cases, which are notified by the Central
Government from time to time.
➢ Section 5(1): CBI jurisdiction can be extended by the Central Government to other areas including
Railway areas and States, given the prior consent of the State Government
➢ Section 6: The State government accords consent under Section 6 of the Act.
News Source: The Indian Express
High-End Tourism Infra in Great Nicobar
Subject: GS 3: Environment
Context
The Union Shipping Ministry has proposed new infrastructure additions to the ₹72,000 crore mega-project in
Great Nicobar.
About Great Nicobar Island Development Project
❖ Launched in 2021, the Great Nicobar
Island (GNI) project is a Rs. 72,000
crore mega project under the Holistic
Development of Islands program.
❖ Aimed at transforming the GNI into a
hub of trade, tourism, and strategic
military presence.
❖ Implementation under the aegis of
NITI Aayog along with collaborations
with global firms and institutions for
technology and expertise.
❖ It was cleared by the Ministry of
Environment in November 2022 and
is part of a broader strategy to enhance
India's strategic presence and
infrastructure in the region.
❖ The project is expected to be developed
over 30 years in a phased manner.
❖ Major Components:
➢ International Transshipment
Port (ITP): A deep-sea port at
Campbell Bay to serve as a major
hub for global maritime trade.

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➢ Greenfield International Airport: Development of a modern airport to boost connectivity and support
tourism.
➢ Integrated Township: Housing and social infrastructure for residents and workforce, including
educational and healthcare facilities.
➢ Dual-use Military-Civilian Infrastructure: Strengthening India's defense posture in the region while
supporting civilian use.
New Addition to the Project:
❖ Cruise Terminal: For international and domestic high-end tourism.
❖ Ship-Building and Repair Facilities: Seeking 100 acres of seafront land.
❖ Exim Port: For construction material imports and exports.
Existing Components of the Mega Project:
❖ International container transshipment port at Galathea Bay.
❖ Military-civil airport under Navy control.
❖ Power plant and greenfield township over 130 sq km of tropical forest.
About Great Nicobar Island (GNI)
❖ Location: Southernmost island of the
Andaman and Nicobar group of islands in
the Bay of Bengal.
❖ Geography: Largest of the Nicobar Islands,
mountainous terrain with tropical evergreen
forests.
❖ It has a group of 836 islands.
❖ India’s Southern most Indira point is at the
tip of GNI.
❖ Protected Sites:
➢ Great Nicobar Biosphere Reserve
➢ Campbell Bay National Park
➢ Galathea National Park
❖ Ecological Significance:
➢ High biodiversity with unique flora and
fauna, including endangered species.
➢ Important for marine life and coral reefs.
➢ Plays a crucial role in climate regulation.
➢ Designated a World Network of
Biosphere Reserve by UNESCO in 2013.
Strategic and Environmental Concerns
❖ Secrecy and Security: Information about the
project denied under RTI citing sovereignty
and security concerns.

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❖ Environmental Impact: Coral reefs, forest clearances, and CRZ restrictions raise ecological issues.
❖ Contradictions in Vision: Proposed tourism and ship-breaking activities potentially conflict with strategic
purposes cited by the Ministry of Home Affairs.
Challenges in Implementation:
❖ Policy Shift: Opens up Great Nicobar to foreign vessels and tourists, reversing isolationist policies.
❖ Stakeholder Dissonance: Resistance from local administration and Andaman and Nicobar Islands
Integrated Development Corporation Limited (ANIIDCO) over feasibility and compatibility of new
proposals.
❖ Transparency Issues: Limited public access to information, raising accountability concerns.
Way Forward
❖ Environmental Sustainability: Conduct independent environmental impact assessments to align
development with conservation priorities.
❖ Strategic Clarity: Ensure alignment between development objectives and strategic security concerns.
❖ Public Accountability: Increase transparency in decision-making processes and public access to project
details.
❖ Stakeholder Engagement: Consult local stakeholders and experts to address feasibility and socio-
environmental impacts.
News Source: The Hindu
Indus Valley Script
Subject: GS 01: Art and Culture
Context:
Recently, Tamil Nadu Chief Minister has announced a $1-million prize for experts or organizations that can
successfully decipher the scripts of the Indus Valley Civilisation in a comprehensible manner.
About the Indus Valley Script
❖ Indus script found on seals, pottery, and tablets at Harappa,
Mohenjo-daro, and Dholavira
❖ Pictogram-Based Writing: The script is written using
pictograms, often accompanied by animal or human motifs.
❖ Boustrophedon Style: It employs the boustrophedon
writing style, alternating between right-to-left in one line
and left-to-right in the next.
❖ Undeciphered Nature: The script has not been deciphered
yet despite extensive research.
❖ Numerical System: The numeral system is based on the
decimal system, with single downward strokes representing
units and semicircles representing tens.
❖ Material Used: Indus Script inscriptions appear on diverse materials, including seals, pottery, bronze tools,
stoneware bangles, bones, shells, ivory, steatite, bronze, and copper tablets.
❖ Seals and Animal Motifs: Seals typically feature the script at the top and an animal motif in the center, often
serving identification and administrative purposes.

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❖ Functionality: Seals may have been used as amulets or talismans, but their primary function was to mark
trade goods for identification.
❖ Trade Connections: Clay tags bearing the Indus script have been discovered in Mesopotamia, indicating the
extensive trade networks of the Indus Valley Civilisation.
❖ Narrative Imagery: The script often combines text with depictions of humans, animals, and mythical
creatures, hinting at possible religious or liturgical significance.
About Indus Valley Civilization
❖ Historical Importance: One of the world's oldest urban civilizations, discovered in 1924 by Sir John Marshall.
❖ Language Mystery: The script remains undeciphered even after 100 years, hindering a complete
understanding of its culture and society.
❖ Cultural Parallels: Archaeologists have found connections between Indus graffiti marks and Tamil Nadu's
symbols, suggesting links to Dravidian culture.
Challenges in Decipherment
❖ Short Texts: Indus texts are generally brief, averaging five characters, with the longest text containing only
26 characters.
❖ Absence of Bilingual Texts: Unlike the Rosetta Stone for Egyptian hieroglyphs, no bilingual inscriptions have
been discovered to aid in deciphering the Indus script.
Significance of Deciphering IVC Script:
❖ Cultural Insights:
➢ Provides clarity on societal structure, economy, and daily life in the IVC.
➢ Strengthens connections between IVC and Tamil Dravidian heritage.
❖ Historical Understanding:
➢ Confirms IVC's precedence over Aryan civilization.
➢ Strengthens the hypothesis of a Dravidian language being spoken.
❖ Academic Recognition:
➢ Encourages global collaboration among linguists, archaeologists, and technologists.
➢ Promotes Tamil Nadu as a hub for historical research and scholarship.
Additional Readings: Harappan Civilisation: A Century of Exploration and Mysteries
News Source: The Hindu
News in Short
Atomic Clock Context:
The UK's Ministry of Defence (MoD) unveiled a revolutionary quantum atomic clock
developed at the Defence Science and Technology Laboratory (DSTL).
About Quantum Atomic Clock
❖ A quantum atomic clock is an advanced clock that uses quantum mechanics to
measure time with extreme accuracy.
➢ It is much more precise than traditional clocks and has many uses in defense,
navigation, and communication.
❖ It is the first UK-built optical atomic clock to be tested outside a laboratory.

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How does it work?

❖ Quantum atomic clocks measure time by tracking
changes in atoms or ions based on quantum
mechanics.
❖ Superposition & Entanglement:
➢ Superposition allows atoms to exist in multiple
states at once for precise measurements.
➢ Entanglement links particles’ states, improving accuracy and
synchronization.
❖ Cooling Atoms: Atoms are cooled to nearly absolute zero to reduce interference.
❖ Exciting Atoms: Lasers or microwaves excite atoms, causing them to switch
between fixed energy states.
❖ Measuring Frequency: The time for atoms to transition between states is used to
measure time accurately.
❖ Quantum Interference: Compares multiple states simultaneously using
superposition for better precision.
Significance of the Quantum Atomic Clock
❖ The clock is so precise that it loses less than one second over billions of years.
❖ This advancement allows for highly accurate time measurement.
About atomic clock
❖ An atomic clock is a clock that measures time by looking at the way atoms
move.
➢ It watches how atoms change between different energy levels when they
interact with certain types of radiation.
❖ How it works: Atoms absorb or release energy at specific frequencies when they
move between energy levels, and this is what helps the clock keep time
accurately.
❖
BAANKNET’ e- Context:
auction Portal Department of Financial Services (DFS),
Ministry of Finance, launched the revamped
e-auction portal 'Baanknet' in New Delhi.
About Baanknet
❖ It is an e-auction platform.
❖ Objective: It is designed to streamline the recovery process for Public Sector
Banks (PSBs) and make property auctions more accessible, transparent, and
efficient.
Key Features of ‘Baanknet’
❖ Centralized Platform:
➢ Consolidates e-auction property details from all PSBs in one place.
➢ Listings include:
✓ Residential properties (flats, independent houses, open plots).

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✓ Commercial properties, industrial land/buildings, shops.

✓ Vehicles, plant and machinery.
✓ Agricultural and non-agricultural land.
❖ Integrated User Journey:
➢ Seamless pre-auction, auction, and post-auction processes on a single
platform.
❖ Technology-Driven Architecture:
➢ Microservices-based system with open APIs for third-party integration.
❖ Analytics and Reporting:
➢ Dashboard with ‘Spend Analytics’ and instant MIS report generation.
❖ Customer Support:
➢ Dedicated helpdesk and call center with callback request features.
❖ Benefits of the Platform
➢ Boosts Recovery for PSBs: Enhances the recovery process, strengthens
balance sheets, and increases
Logistics Ease Context:
Across Different The Union Minister of Commerce & Industry has released the “Logistics Ease
States (LEADS) Across Different States (LEADS) 2024” report.
2024’ Report About The LEADS 2024 Report:
❖ The LEADS 2024 Report is the 6th edition of the report. The LEADS Report was
conceived on the lines of Logistics Performance Index (LPI) of the World
Bank.
❖ Released By: The Ministry of Commerce and Industry.
❖ Objective: The Report gives an insight into improvement of logistics
performance at State/UT level.
❖ Pillars: The report evaluates logistics performance across four key pillars,
➢ Logistics Infrastructure
➢ Logistics Services
➢ Operating and Regulatory Environment
➢ Sustainable Logistics
❖ Performance Highlights of LEADS 2024
Groups Achievers Fast Movers: Aspirers:
Coastal Group Gujarat, Karnataka, Andhra Pradesh, Goa Kerala, West
Maharashtra, Odisha, Bengal
Tamil Nadu
Landlocked Haryana, Telangana, Bihar, Himachal Aspirers:
Group Uttar Pradesh, Pradesh, Madhya Chhattisgarh,
Uttarakhand Pradesh, Punjab, Jharkhand
Rajasthan
North-Eastern Assam, Arunachal Meghalaya, Manipur
Group Pradesh Mizoram, Nagaland,
Sikkim, Tripura

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Union Chandigarh, Delhi Fast Movers: Dadra Andaman and

Territories and Nagar Haveli and Nicobar Islands,
Daman and Diu, Ladakh
Jammu and Kashmir,
Lakshadweep,
❖ Puducherry
Toda Tribe Context:
The Toda Tribes most important festival of the
year, known as Modhweth, was celebrated at
the Muthanadu Mund, in the Nilgiris to mark
the New Year.
About the Toda Tribe:
❖ Native: The Toda tribe are a Dravidian
ethnic group of people who live in the upper Nilgiri Hills of Tamil Nadu, India
➢ Approximately 1,600 Todas lives in 69 settlements across the Nilgiri Hills.
❖ Language: The Todas speak the Toda language, an indigenous Dravidian
language of southern India originating from the Toda-Kota subgroup of South
Dravidian
❖ Customs: Some unique feature of Toda customs are,
➢ Religion: The Toda tribe's religion is buffalo centered. They perform rituals
for many dairy activities and only men who have become dairyman-priests
can milk the sacred buffaloes.
➢ Polyandry: The Toda tribe practiced fraternal polyandry, where a woman
would marry all the brothers in a family.
➢ Funeral rituals: The Toda tribe has a dry funeral ceremony that takes place
nine months after cremation
➢ Embroidery: The Toda tribe's embroidery features a symbolic color scheme
of Black (representing underworld), Red for earth, and White for the celestial
and is called "pukhoor"
✓ It is reversible and the embroidery on the left of the black stripe is
called the karnol, and the embroidery on the right is called the
karthal
➢ Flower symbolism: The Toda tribe uses flowers to indicate the season and
stage of the year.
✓ Example: The white maw(r)sh flower flowers in the shola forests when
the southwesterly monsoon is ending.
➢ Architecture: The Todas are known for their barrel-vaulted temples and
houses.
   

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