TNPSC CURRENT AFFAIRS – 27.07.2024

1. POLITY

NO SPECIAL CATEGORY STATUS FOR BIHAR- GOVERNMENT

• Special Category Status (SCS) was introduced in 1969 to assist the development of states that faced geographical and socio-economic disadvantages.
• The National Development Council (NDC) granted this status based on specific criteria.
• Criteria for Special Category Status:
• Hilly and difficult terrain
• Low population density and/or sizeable tribal population
• Strategic location along borders with neighboring countries
• Economic and infrastructural backwardness
• Non-viable nature of state finances
• Benefits of Special Category Status:
• Financial Assistance: States with SCS receive preferential treatment in the form of central assistance. They get 90% of the funds as grants and 10% as loans, compared to other states which receive 30% grants and 70% loans.
• Tax Concessions: Industries in these states often receive tax incentives to promote industrialization.
• Special Schemes: Additional central assistance for various schemes and projects.
• Inter-Ministerial Group (IMG) Report on Bihar (2012):
• The IMG was constituted to evaluate Bihar’s request for SCS.
• The report, submitted on March 30, 2012, concluded that Bihar did not meet the existing NDC criteria for SCS.
• The key reasons included: Bihar’s terrain is not predominantly hilly or difficult.
• The state does not have a significant tribal population.
• It does not share an international border that necessitates strategic considerations.
• While Bihar is economically and infrastructurally backward, this alone was not sufficient to grant SCS.
• Current Scenario: As of the latest update, the Union Finance Ministry has reiterated the IMG’s findings and ruled out granting SCS to Bihar.
• The Ministry of State for Finance, Pankaj Chaudhary, confirmed this in a written reply to the Lok Sabha.
• States with Special Category Status: Initially, 11 states were granted SCS, including the North-Eastern states, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand.
• Post the 14th Finance Commission recommendations, the distinction between Plan and Non-Plan expenditure was removed, and the concept of SCS has been diluted. However, the North-Eastern and three Himalayan states continue to receive special financial assistance.

2. ECONOMICS

PROPOSED EU CARBON BORDER ADJUSTMENT TAX IS PROTECTIONIST

• Carbon Border Adjustment Mechanism (CBAM) Overview: The Carbon Border Adjustment Mechanism (CBAM) is a policy proposed by the European Union (EU) to impose tariffs on energy-intensive goods imported into the EU.
• This mechanism aims to prevent “carbon leakage,” where companies move production to countries with less stringent emission norms, thereby undermining local efforts to reduce greenhouse gas emissions
• Purpose of CBAM: Prevent Competitive Disadvantage: CBAM ensures that EU manufacturers of energy-intensive goods like iron, steel, and aluminum are not at a competitive disadvantage compared to producers in countries with more lenient fossil fuel emission norms.
• Encourage Global Emission Reductions: By imposing tariffs on imports based on their carbon content, CBAM aims to encourage other countries to adopt stricter emission standards.
• Implementation Timeline: CBAM is expected to come into force on January 1, 2026.
• Impact on India:
• Economic Impact: India is among the top eight countries that will be adversely affected by CBAM. In 2022, 27% of India’s exports of iron, steel, and aluminum products, worth $8.2 billion, went to the EU.
• Sectoral Impact: Core sectors such as steel are expected to be greatly affected by the implementation of CBAM.
• Concerns Raised by India: Protectionism: The Economic Survey of India has highlighted concerns that CBAM represents a form of protectionism by developed countries, which could harm developing economies.
• Contravention of Paris Agreement: CBAM is seen as going against the spirit of the Paris Agreement, which recognizes “Common but Differentiated Responsibilities” (CBDR). This principle acknowledges that developed countries have historically contributed more to global emissions and thus have a greater responsibility to reduce them.
• Global Context: Other Countries’ Actions: Both the United Kingdom and the United States are in different stages of imposing their versions of carbon border taxes.
• Global Trade Research Initiative Report: This report indicates that CBAM will significantly impact countries like India, which rely heavily on exports of energy-intensive goods to the EU.

3. NATIONAL

SHIPBUILDING AID – 18 SHIPYARDS BENEFITTED

• Shipbuilding Financial Assistance Policy: Objective: To provide financial support to Indian shipyards for contracts signed between April 1, 2016, and March 31, 2026.
• Current Status: A total of 39 shipyards have registered under this scheme, and 18 shipyards have utilized the benefits.
• Impact: This policy aims to boost the domestic shipbuilding industry by providing necessary financial assistance, thereby enhancing India’s capabilities in this sector.
• Maritime Vision 2030: Initiatives: The vision outlines over 150 initiatives to improve various aspects of the maritime sector, including ports, shipping, and inland waterways.
•  Investment: Envisions investments of ₹3-3.5 lakh crore.
• Goals:
• Reduce Vessel Turnaround Time: Aims to reduce the average vessel turnaround time (containers) from 25 hours in 2020 to less than 20 hours by 2030.
• Increase Ship Daily Output: Targets increasing the average ship daily output (gross tonnage) from 16,000 in 2020 to more than 30,000 by 2030.
• Maritime Amrit Kaal Vision 2047: Initiatives: Outlines over 300 initiatives across 11 key areas to drive growth and development in India’s coastal regions.
• Long-Term Goals: This vision aims to build on the progress made under Maritime Vision 2030 and further enhance the maritime sector’s capabilities and infrastructure by 2047.

4. INTERNATIONAL

HAMAS AND FATAH SIGN DECLARATION IN BEIJING ON ENDING RIFT AMID GAZA WAR

• Beijing Declaration – Ending Division and Strengthening Unity: The declaration aims to end the longstanding division between Hamas and Fatah and to strengthen Palestinian national unity.
• Formation of a Unity Government: The factions have pledged to form a unity government for the Palestinian territories. However, the specifics of how and when this government will be formed remain unclear.
• Commitment to a Palestinian State: Both factions have expressed a commitment to the creation of a Palestinian state on lands that Israel captured in the 1967 war.
• China’s Role
• Diplomatic Mediation: China has played a significant role in mediating the agreement, highlighting its growing influence in West Asian diplomacy. This follows China’s successful mediation in restoring relations between Saudi Arabia and Iran.
• Future Steps: The agreement includes a commitment to follow up on previous reconciliation agreements signed in 2011 and 2022. The understanding is to widen the scope of the Palestine Liberation Organization (PLO) to include other factions, including Hamas

5. AGRICULTURE

SC GIVES SPLIT VERDICT ON VALIDITY OF CENTRE’S NOD FOR GM MUSTARD

• Split Verdict on the validity of the Centre’s 2022 decision approving the environmental release of genetically modified (GM) mustard.
• Judges’ Opinions: Justices B.V. Nagarathna and Sanjay Karol: Asked the Centre to formulate a national policy regarding GM crops for research, cultivation, trade, and commerce.
• Further Referral: The case will be referred to a three-judge bench constituted by the Chief Justice of India.
• Background: Approval: On October 18, 2022, the Genetic Engineering Appraisal Committee (GEAC) recommended the environmental release of transgenic mustard hybrid DMH-11, a variety of GM mustard.
• Subsequent Approval: The environmental release was approved on October 25, 2022.
• Future Steps: National Policy: The court emphasized the need for a national policy on GM crops formulated in consultation with all stakeholders, including experts in agriculture, biotechnology, state governments, and representatives of farmers.
• Consultation: The government should conduct a national consultation on this matter.

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