On May 12, the Prime Minister, Mr. Narendra Modi, announced a special economic package of Rs 20 lakh crore (equivalent to 10% of India’s GDP) with the aim of making the country independent against the tough competition in the global supply chain and to help in empowering the poor, labourers, migrants who have been adversely affected by COVID. Following this announcement, the Finance Minister, Ms. Nirmala Sitharaman, through five press conferences, announced the detailed measures under the economic package. This note summarises the key measures proposed under the economic package.

Government Reforms Policy Highlights Increase in borrowing limits: The borrowing limits of state governments will be increased from 3% to 5% of Gross State Domestic Product (GSDP) for the year 2020-21. This is estimated to give states extra resources of Rs 4.28 lakh crore. There will be unconditional increase of up to 3.5% of GSDP followed by 0.25% increase linked to reforms on - universalisation of ‘One Nation One Ration card’, Ease of Doing Business, power distribution and Urban Local Body revenues. Further, there will be an increase of 0.5% if three out of four reforms are achieved.5

Privatisation of Public Sector Enterprise (PSEs): A new PSE policy has been announced with plans to privatise PSEs, except the ones functioning in certain strategic sectors which will be notified by the government. In strategic sectors, at least one PSE will remain, but private sector will also be allowed. To minimise wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four; others will be privatised/ merged/ brought under holding companies.3

Measures for businesses (including MSMEs) Financial Highlights Collateral free loans for businesses: All businesses (including MSMEs) will be provided with collateral free automatic loans of up to three lakh crore rupees.[1] MSMEs can borrow up to 20% of their entire outstanding credit as on February 29, 2020 from banks and Non-Banking Financial Companies (NBFCs). Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover will be eligible for such loans and can avail the scheme till October 31, 2020. Interest on the loan will be capped and 100% credit guarantee on principal and interest will be given to banks and NBFCs.

Corpus for MSMEs: A fund of funds with a corpus of Rs 10,000 crore will be set up for MSMEs. This will provide equity funding for MSMEs with growth potential and viability. Rs 50,000 crore is expected to be leveraged through this fund structure.1

Subordinate debt for MSMEs: This scheme aims to support to stressed MSMEs which have Non-Performing Assets (NPAs). Under the scheme, promoters of MSMEs will be given debt from banks, which will be infused into the MSMEs as equity. The government will facilitate Rs 20,000 crore of subordinate debt to MSMEs. For this purpose, it will provide Rs 4,000 crore to the Credit Guarantee Fund Trust for Micro and Small Enterprises, which will provide partial credit guarantee support to banks providing credit under the scheme.1

Schemes for NBFCs: A Special Liquidity Scheme was announced under which Rs 30,000 crore of investment will be made by the government in both primary and secondary market transactions in investment grade debt paper of Non-Banking Financial Companies (NBFCs)/Housing Finance Companies (HFCs)/Micro Finance Institutions (MFIs). The central government will provide 100% guarantee for these securities. The existing Partial Credit Guarantee Scheme (PCGS) will be extended to partially safeguard NBFCs against borrowings of such entities (such as primary issuance of bonds or commercial papers (liability side of balance sheets)). The first 20% of loss will be borne by the central government. The PCGS scheme will facilitate liquidity worth Rs 45,000 crores for NBFCs.1

Employee Provident Fund (EPF): Under the PM Garib Kalyan Yojana, the government paid 12% of employer and 12% of employee contribution into the EPF accounts of eligible establishments for the months of March, April and May. This will be continued for three more months (June, July and August). This is estimated to provide liquidity relief of Rs 2,500 crore to businesses and workers.

Statutory PF contribution: Statutory PF contribution of both the employer and employee will be reduced from 12% to 10% each for all establishments covered by EPFO for next three months. This scheme will apply to workers who are not eligible for the 24% EPF support under PM Garib Kalyan Package and its extension. However, Central Public Sector Enterprises (CPSEs) and State Public Sector Units (PSUs) will continue to contribute 12% as employer contribution.1

Street vendors: A special scheme will be launched within a month to facilitate easy access to credit for street vendors. Under this scheme, bank credit will be provided to each vendor for an initial working capital of up to Rs 10,000. This is estimated to generate liquidity of Rs 5,000 crore.[2]

Policy Highlights Expediting payment of dues to MSMEs: Payments due to MSMEs from the government and CPSEs will be released within 45 days.1 Insolvency resolution: A special insolvency resolution framework for MSMEs under the Insolvency and Bankruptcy Code, 2016 will be notified.

Disallowing globaltenders: To protect Indian MSMEs from competition from foreign companies, global tenders of up to Rs 200 crore will not be allowed in government procurement tenders.1

Reduction in TDS and TCS rates: The rates of Tax Deduction at Source (TDS) for the non-salaried specified payments made to residents and Tax Collected at Source (TCS) will be reduced by 25% from the existing rates. This reduction will apply from May 14, 2020 to March 31, 2021. This is estimated to provide liquidity of Rs 50,000 crore.1

Ease of doing business for corporates: Direct listing of securities by Indian public companies in permissible foreign jurisdictions will be allowed. Private companies which list Non-Convertible Debentures (NCDs) on stock exchanges will not be considered listed companies. NCDs are debt instruments with a fixed tenure issued by companies to raise money for business purposes. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company at a future date.3

Legislative Highlights Definition of MSME: The definition of MSMEs will be changed by amending the Micro, Small and Medium Enterprises Development Act, 2006. As per the proposed definition, the investment limit will be increased from Rs 25 lakh to Rs 1 crore for micro enterprises, from Rs 5 crore to Rs 10 crore for small enterprises, and from Rs 10 crore to Rs 20 crore for medium enterprises. A new criteria of annual turnover will be introduced. The turnover limit for Micro, Small and Medium enterprises will be Rs 5 crore, Rs 50 crore, and Rs 100 crore, respectively. The current distinction between manufacturing and services MSMEs (to provide different investment limits for each category) will be removed.1

Initiation of insolvency proceedings: The Insolvency and Bankruptcy Code, 2016 will be amended to provide for the following: (i) minimum threshold to initiate insolvency proceedings will be increased from one lakh rupees to one crore rupees; (ii) suspension of fresh initiation of insolvency proceedings up to one year, depending upon the pandemic situation; (iii) COVID-19 related debt will be excluded from the definition of ‘default’ under the Code for triggering insolvency proceedings.3

Amendments to Companies Act, 2013: The Companies Act, 2013 will be amended to provide for the following:3 Certain offences under the Companies Act, 2013 will be decriminalised. These include minor technical and procedural defaults such as shortcomings in CSR reporting, inadequacies in Board report, filing defaults, delay in holding of AGM. Several compoundable offences will be shifted to internal adjudication mechanism.3

Currently, certain provisions from the Companies Act, 1956 continue to apply to producer companies. These provisions will be included in Companies Act, 2013. The National Company Law Appellate Tribunal (NCLAT) will be granted powers to create additional/specialised benches. All defaults by small companies, one-person companies, producer companies, and start-ups will be subject to lower penalties.

Agriculture and Allied sectors Financial Highlights Concessional Credit Boost to farmers: Farmers will be provided institutional credit facilities at concessional rates through Kisan Credit Cards. This scheme will cover 2.5 crore farmers with concessional credit worth two lakh crore rupees.2

Agri Infrastructure Fund: A fund of one lakh crore rupees will be created for development of agriculture infrastructure projects at farm-gate and aggregation points (such as cooperative societies and Farmer Producer Organizations). Farm gate refers to the market where buyers can buy products directly from the farmers.[3]

Emergency working capital for farmers: An additional fund of Rs 30,000 crore will be released as emergency working capital for farmers. This fund will be disbursed through NABARD to Rural Cooperative Banks (RCBs) and Regional Rural Banks (RRBs) for meeting their crop loans requirements. This fund is expected to benefit three crore small and marginal farmers. This is in addition to the financial support of Rs 90,000 crore that will be provided by NABARD to RCBs and RRBs to meet the crop loan demand this year.2

Support to fishermen: The Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be launched for integrated, sustainable, and inclusive development of marine and inland fisheries. Under this scheme, Rs 11,000 crore will be spent on activities in Marine, Inland fisheries and Aquaculture and Rs 9,000 crore will be spent for developing infrastructure (such as fishing harbours, cold chain, markets).4

Animal Husbandry infrastructure development: An Animal Husbandry Infrastructure Development Fund of Rs 15,000 crore will be set up, with the aim of supporting private investment in dairy processing, value addition, and cattle feed infrastructure. Incentives will be given for establishing plants for export of niche dairy products.4

Employment push using CAMPA funds: The government will approve plans worth Rs 6,000 crore under the Compensatory Afforestation Management and Planning Authority (CAMPA) to facilitate job creation for tribals/adivasis.2 Funds under CAMPA will be used for: (i) afforestation and plantation works, including in urban areas, (ii) artificial regeneration, assisted natural regeneration, (iii) forest management, soil and moisture conservation works, (iv) forest protection, forest and wildlife related infrastructure development, and wildlife protection and management. Note that the CAMPA funds are currently used for protection of forest and wildlife management.

Legislative Highlights Amendments to the Essential Commodities Act: The Essential Commodities Act, 1955 empowers the central and state governments control the production, supply and distribution of certain commodities to avoid scarcity in the country. Commodities covered under the Act include edible oil and seeds, pulses, sugarcane and its products, and rice paddy. The Act will be amended to deregulate food items including cereals, edible oils, oilseeds, pulses, onions and potato. This is expected to allow better price realisation for farmers by attracting investments and enabling competition in the sector. Stock limit will be imposed under very exceptional circumstances such as national calamities and famines with surge in prices. Further, no such stock limit will apply to processors or value chain participant, subject to their installed capacity, or to any exporter subject to the export demand.4

Agriculture marketing reforms: A central law will be formulated to provide: (i) adequate choices to farmers to sell their produce at remunerative prices, (ii) barrier free inter-state trade, and (iii) a framework for e-trading of agriculture produce. Currently, farmers are bound to sell their produce only to the licensees in Agricultural Produce Market Committees (APMCs). The proposed amendments seek to enable free flow of agricultural produce and establish a smooth supply chain providing options of better price realisation to farmers.4

Agriculture Produce Pricing and Quality Assurance:A facilitative legal framework will be created to enable farmers to engage with processors, aggregators, large retailers, and exporters in a fair and transparent manner. Risk mitigation for farmers, assured returns, and quality standardisation will form an integral part of the framework. This is aimed at enabling farmers to predict the price of crops at the time of sowing and will also increase private sector investment in the sector.4

Migrant Workers Policy Highlights One Nation One Card: Migrant workers will be able to access the Public Distribution System (Ration) from any Fair Price Shop in India by March 2021 under the scheme of One Nation One Card. The scheme will introduce the inter-state portability of access to ration for migrant labourers. By August 2020 the scheme is estimated to cover 67 crore beneficiaries in 23 states (83% of PDS population). All states/union territories are required to complete full automation of fair price shops by March 2021 for achieving 100% national portability.2

Free food grain Supply to migrants: Migrant workers who are not beneficiaries under the National Food Security Act ration card or state card will be provided 5 kg of grains per person and 1 kg of chana per family per month for two months. Rs 3,500 crore will be spent on this scheme, and eight crore migrants are estimated to benefit under it.2

Affordable Rental Housing Complexes (ARHC) for Migrant Workers / Urban Poor: The migrant labour/urban poor will be provided living facilities at affordable rent under Pradhan Mantri Awas Yojana (PMAY).2 This will be achieved by: (i) converting government funded housing in the cities into ARHCs through PPPs, and (ii) incentivising manufacturing units, industries, institutions, associations to develop ARHCs on their private land and operate them.

Civil Aviation Policy Highlights Efficient airspace management: Restrictions on utilisation of the Indian Air Space will be eased so that civilian flying becomes more efficient. This is estimated to allow optimal utilisation of airspace, reduction in fuel use, and time, and save about Rs 1,000 crore per year for the aviation sector.5

Public Private Partnership (PPP) model for airports: World-class airports will be built through PPP model. In the first round, the Airport Authority of India (AAI) has awarded three airports (Ahmedabad, Lucknow and Mangaluru) out of six bid for operation and maintenance on PPP basis. Six more airports have been identified for 2nd and 3rd round of bidding process each. The private sector investment in these 12 airports is expected to be around Rs 13,000 crore.5

Defence Policy Highlights FDI limit in defence manufacturing under automatic route will be increased from 49% to 74%.5

Make in India initiative will be promoted in the defence sector aiming to make the country independent in terms of production. A list of weapons/platforms will be released which will be banned for import based on a year wise timeline. Further, the government has planned to improve the autonomy, accountability and efficiency in Ordnance Supplies by corporatisation of Ordnance Factory Board.5

Energy Financial Highlights Liquidity support for distribution companies (discoms): A liquidity support of Rs 90,000 crore will be provided to power discoms. These will be in the form of funds from Power Finance Corporation and Rural Electrification Corporation. Discoms will also be provided with state government guaranteed loans exclusively for discharging their liabilities to power generation companies.[4]

Coal evacuation: Rs 50,000 crore will be spent on infrastructure development for evacuation of coal. This includes Rs 18,000 crore worth of investment in mechanised transfer of coal (conveyor belts) from mines to railway sidings.5

Policy Highlights Safeguarding consumer rights: Inefficiencies of discoms will not be passed on to the consumers. Standards of Service and associated penalties for DISCOMs will be defined prompting discoms to ensure adequate power and avoiding load-shedding.5

Regulatory assets:Regulatory assets in the power sector will be eliminated. Regulatory asset is the fund which belongs to discom due to approved tariff hike. This is not realised in revenue as it not passed on to the consumers to avoid instability among them. The discoms are allowed to recover this fund at a later stage from state governments or from consumers in form of an approved surcharge. As of now, significant capital is held in form of regulatory assets across different states which could be used by discoms of the respective states as liquidity.

Privatisation of power distribution: Power departments/utilities in union territories will be privatised.5 Commercial coal mining: In March 2020, the Mineral Laws (Amendment) Bill was passed, which opened up the coal sector for commercial mining. Auctions will be conducted for allocation of coal mines. Any party can bid for a coal block and sell in the open market. Entry norms will be liberalised and nearly 50 blocks will be offered immediately.5

Legislative Highlights Reduction in cross-subsidy: The Electricity Act, 2003 will be amended to ensure a progressive reduction in cross-subsidies in the sector.5 Direct Benefit Transfer (DBT) is being planned for providing subsidy to eligible consumers.5

Housing Financial Highlights Credit Linked Subsidy Scheme for Middle Income Group (MIG): The Credit Linked Subsidy Scheme for Middle Income Group (annual income between Rs 6 lakh and Rs 18 lakh) will be extended by one year up to March 2021. The government has estimated that this will lead to an investment of over Rs 70,000 crore in the housing sector.2

Policy Highlights Support to real estate sector: COVID 19 will be treated as an event of “Force Majeure” under Real Estate Regulatory Authority (RERA) by states/union territories and their Regulatory Authorities. An extension of six months will be given on registration and completion dates of all registered projects expiring on or after March 25, 2020 without individual applications, which can be further increased by three more months at the discretion of the Regulatory Authorities. Partial bank guarantees will also be released by government agencies to ease cash flows.1

Social Sector Policy Highlights Public health: The investment in public health will be increased along with investment in grass root health institutions of urban and rural areas.3 The lab networks are being strengthened in districts and block levels for efficient management of the pandemic. The National Digital Health Blueprint will be implemented, which aims at creating an ecosystem to support universal health coverage in an efficient, inclusive, safe and timely manner using digital technology.

Allocation for MGNREGS:To help boost rural economy, an additional Rs 40,000 crore will be allocated under MGNREGS. This increases the Union Budget allocation for MGNREGS from Rs 61,500 crore to Rs 1,01,500 crore (65% increase) for 2020-21.[5]

Viability Gap Funding: Viability Gap Funding (VGF) for social infrastructure projects will be increased by up to 30% of the total project cost. The total expense for developing the social infrastructure is estimated be Rs 8,100 crore.5

Technology driven education: PM eVidya will be launched for multi-mode access to digital/online education. This program will include facilities to support school education in states/UTs under the DIKSHA scheme (one nation, one digital platform). National Foundational Literacy and Numeracy Mission will be launched by December 2020 to ensure that every child attains learning level and outcomes in grade 5 by 2025.3

Key Measures Taken by Reserve Bank of India (RBI)1 The overall financial package that has been announced also includes the liquidity generated by measures announced by RBI. Some of these measures include: Cash Reserve Ratio (CRR) was reduced which resulted in liquidity support of Rs 1,37,000 crore.

Banks’ limits for borrowing under the marginal standing facility (MSF) were increased. This allowed banks to avail additional Rs 1,37,000 crore of liquidity at reduced MSF rate.

Total Rs 1,50,050 crore of Targeted Long Term Repo Operations (TLTRO) has been planned for investment in investment grade bonds, commercial paper, non-convertible debentures including those of NBFCs and MFIs. Special Liquidity Facility (SLF) of Rs 50,000 crore was announced for mutual funds to provide liquidity support.

Special refinance facilities worth Rs 50,000 crore were announced for NABARD, SIDBI and NHB at policy repo rate. A moratorium of three months has been provided on payment of installments and interest on working capital facilities for all types of loans.

Source: Presentation made by Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman under Aatmanirbhar Bharat Abhiyaan to support Indian economy in fight against COVID-19, Ministry of Finance, May 13, 2020, PRS.

Ministry of Culture’s National Gallery of Modern Art will organise virtual tour titled “Ramkinkar Baij | Journey through silent transformation and expressions” to commemorate the 115th Birth Anniversary of Ramkinkar Baij on 26th May 2020. The NGMA takes pride in 639 works of art created by the iconic artist. This virtual tour presents the works of art from the prominent artworks of Ramkinkar Baij from reserve collection of NGMA, grouped in a series of five different themes of (i) Portrait, (ii) Life Study, (iii) Abstract & Structural Composition, (iv) Nature Study & Landscape and (v) Sculptures.

Director General of NGMA Shri Adwaita Charan Gadanayak said that this virtual tour is being launched to pay tribute to the one of the greatest sculptor, painter – an iconic artist of modern India, especially for the young artists to know the kind of restless experiment that the artist had one with forms – figurative and abstractive both.

Shri Gadanayak added that I take pride of the tireless effort of our entire IT Cell to conceive and conceptualize the idea of launching this Virtual Tour and design and develop the same amidst lock down period to facilitate our esteemed visitors with such prestigious collection of NGMA.

This virtual tour also includes ‘Jeevansmriti’ to through light into the memory lane in addition to showcasing 520 works of art by the iconic artist in five distinct categories and three sketch books. At the end of the tour visitors can ‘Join the Conversation’ on the first cultural media platform under the banner of NGMA at https://so-ham.in/ramkinkar-baij-journey-through-silent-transformation-and-expressions/ and also attempt a quiz based on the content of the virtual tour.

Ramkinkar Baij, one of the most seminal artists of modern India, was an iconic sculptor, painter and graphic artist. Ramkinkar Baij (1906-1980) was born in Bankura, West Bengal, into a family of little economic and social standing and grew by his sheer determination into one of the most distinguished early modernists of Indian art. In 1925, he made his way to Kala Bhavana, the art school at Santiniketan and was under the guidance of Nandalal Bose.

Encouraged by the liberating, intellectual environment of Santiniketan, his artistic skills and intellectual horizons blossomed, thus acquiring greater depth and complexity. Soon after completing his studies at Kala Bhavana he became a faculty member, and along with Nandalal Bose and Benodebehari Mukherjee played a pivotal role in making Santiniketan one of the most important centres for modern art in pre-Independent India.

Ramkinkar'smonumental sculptures are established landmarks in public art. One of the earliest modernists in Indian art, he assimilated the idioms of the European modern visual language and yet was rooted in his own Indian ethos. He experimented restlessly with forms, moving freely from figurative to abstract and back to figurative, his themes were steeped in a deep sense of humanism and an instinctive understanding of the symbiotic relationship between man and nature. Both in his paintings and sculptures, he pushed the limits of experimentation and ventured into the use of new materials. For instance, his use of unconventional material, for the time, such as cement concrete for his monumental public sculptures set a new precedent for art practices. The use of cement, laterite and mortar to model the figures, and the use of a personal style in which modern western and Indian pre-classical sculptural values were brought together was equally radical.

Although, his work was passed over for quite a while, gradually it began to get both national and international attention. He was invited to participate in the Salon des Réalités Nouvelles in 1950 and in the Salon de Mai in 1951. In the national honours began to come his way one after the other. In 1970, the Government of India honoured him with the Padma Bhushan for his irrefutable contribution to Indian art. In 1976 he was made a Fellow of the Lalit Kala Akademi. In 1976, he was conferred the honorary Doctoral Degree of ‘Desikottama’ by Visva Bharati, and in 1979 an honorary D.Litt by Rabindra Bharati University.

Ramkinkar made his last journey, after a period of illness, in Kolkata on the 2nd August, 1980.

It has redefined domicile through Jammu and Kashmir Reorganization (Adaption of state laws) order, 2020 issued under section 96 of Jammu & Kashmir Reorganisation Act, 2019.

What did the 2010 Act say? The 2010 Act pertained to employment in the Civil Services comprising “district, divisional and State” cadre posts. Earlier, only permanent residents of J&K were eligible to apply for gazetted and non-gazetted posts.

The changes: The domicile rules as defined under the amended order will determine recruitment to all government posts in J&K from now on. The power to issue domicile certificates has been vested in the tehsildar (revenue officer).

Definition of domiciles: The order defines domiciles as anyone “who has resided for a period of 15 years in the UT of J&K or has studied for a period of seven years and appeared in Class 10th/12th examination in an educational institution located in the UT of J&K or who is registered as a migrant by the Relief and Rehabilitation Commissioner (Migrants)”.

It said that children of central government officials including the all India services, public sector units, autonomous body of Centre, Public Sector Banks, officials of statutory bodies, central universities and recognised research institutes of the Centre who have served in J&K for a “total period of 10 years” will be domiciles.

The domicile status also applies to “children of such residents of J&K who reside outside J&K in connection with their employment or business or other professional or vocational reasons but their parents should fulfil any of the conditions provided”.

What are the rules for grant of domicile certificate? The certificate has to be issued within 15 days. The officer not able to do so will be penalised ₹50,000 of his or her salary. Residents of J&K who live outside the erstwhile State can get domicile certificates by simply producing their Permanent Residence Certificate (PRC), ration card copy, voter card or any other valid document.

Those migrants not registered with the Relief and Rehabilitation department can do so by providing documents such as electoral rolls of 1988, proof of registration as a migrant in any State in the country or any other valid document.

There is a provision to get the certificate online too.

Implications of new rules: It will allow West Pakistan refugees and children of women who married non-locals to apply for jobs in J&K.

According to MHA’s reply to a parliamentary panel on February 18, there are over 84,000 vacancies in J&K of which 22,078 vacancies pertain to Class IV employees, 54,375 to non-gazettted, and 7,552 vacancies are at the gazetted level.

Why is the policy being opposed? Opponents say “the changes are aimed at changing the demography” of J&K. The amended domicile law was made in exercise of power under the J&K Reorganization Act 2019 that has been challenged in a number of petitions before the Supreme Court of India.

These include: the Pangong lake in Ladakh, the Galway valley and Demchok.

Why do face-offs occur? They mainly occur in areas along the LAC. The LAC has never been demarcated.

Differing perceptions are particularly acute in around two dozen spots across the Western (Ladakh), Middle (Himachal Pradesh and Uttarakhand), Sikkim, and Eastern (Arunachal Pradesh) sectors of the India-China border.

Face-offs occur when patrols encounter each other in the contested zones between overlapping claim lines. Protocols agreed to in 2005 and 2013 detail rules of engagement to prevent such incidents, but have not always been adhered to.

Why has not the LAC been clarified? India has long proposed an exercise to clarify differing perceptions of the LAC to prevent such incidents. Maps were exchanged in the Middle Sector, but the exercise fell through in the Western Sector where divergence is the greatest.

China has since rejected this exercise, viewing it as adding another complication to the on-going boundary negotiations. India’s argument is rather than agree on one LAC, the exercise could help both sides understand the claims of the other, paving the way to regulate activities in contested areas until a final settlement of the boundary dispute.

What is the state of boundary negotiations? The 22nd round of talks between the Special Representatives, National Security Adviser Ajit Doval and China’s State Councillor Wang Yi, was held in Delhi in December 2019. Both “agreed that an early settlement of the boundary question serves the fundamental interests of both countries” and “resolved to intensify their efforts to achieve a fair, reasonable and mutually acceptable solution”.

In 2005, an agreement on political parameters and guiding principles completed the first of three stages of the talks. The agreement said both sides “shall safeguard due interests of their settled populations in border areas”.

The current, and most difficult stage involves agreeing a framework to resolve the dispute in all sectors. The final step will involve delineating and demarcating the boundary in maps and on the ground.

What are the prospects of a settlement? The likelihood appears remote. The main differences are in the Western and Eastern sectors.

India sees China as occupying 38,000 sq km in Aksai Chin. In the east, China claims as much as 90,000 sq km, extending all across Arunachal Pradesh. A swap was hinted at by China in 1960 and in the early 1980s, which would have essentially formalised the status quo. Both sides have now ruled out the status quo as a settlement, agreeing to meaningful and mutual adjustments.

At the same time, the most realistic solution will involve only minor adjustments along the LAC, considering neither side will be willing to part with territory already held.

Where is Kalapani located? Located in the easternmost corner of Uttarakhand’s Pithoragarh district.

Shares a border on the north with the Tibet Autonomous Region of China and Nepal in the east and south.

It is wedged in between Limpiyadhura, Lipulekh and Kalapani. The area is the largest territorial dispute between Nepal and India consisting of at least 37,000 hectares of land in the High Himalayas.

Who controls the area? The area is in India’s control but Nepal claims the region because of historical and cartographic reasons.

What is the cause of the dispute? The Kalapani region derives its name from the river Kali. Nepal’s claims to the region is based on this river as it became the marker of the boundary of the kingdom of Nepal following the Treaty of Sugauli signed between the Gurkha rulers of Kathmandu and the East India Company after the Gurkha War/Anglo-Nepal War (1814-16). The treaty was ratified in 1816.

According to the treaty, Nepal lost the regions of Kumaon-Garhwal in the west and Sikkim in the east.

According to Article 5, the King of Nepal gave up his claims over the region west of the river Kali which originates in the High Himalayas and flows into the great plains of the Indian subcontinent. According to the treaty, the British rulers recognised Nepal’s right to the region that fell to the east of the river Kali.

Here lies the historic origin of the dispute. According to Nepal’s experts, the east of the Kali river should begin at the source of the river. The source according to them is in the mountains near Limpiyadhura, which is higher in altitude than the rest of the river’s flow.

Nepal claims that a land mass, high in the mountains that falls to the east of the entire stretch starting from Limpiyadhura downwards, is theirs. India on the other hand says the border begins at Kalapani which India says is where the river begins.

The dispute is mainly because of the varying interpretation of the origin of the river and its various tributaries that slice through the mountains. While Nepal’s claim of the territory east of Kali is based on the Limpiyadhura origin, India says the river actually takes the name Kali near Kalapani.

How India started controlling Lipulekh? The importance of Himalayan passes with the Tibetan plateau was amply highlighted in the 1962 war.

During that war, Chinese forces used the pass of Se La in Tawang and reached the Brahmaputra plains in the east. The military defeat in the east clearly demonstrated that weakly guarded passes were a major vulnerability of Indian military preparedness against China.

In comparison to Se La which was somewhat fortified, Lipulekh was vulnerable. Nepali King Mahendra reached an agreement with Delhi and handed over the region for security purposes to India. In 1969, under bilateral negotiations all the posts were removed barring Kalapani.

Where have Nepal and India erred? India and China were in clear violation of Nepal’s concerns during the 2015 Lipulekh agreement between India and China which renewed India’s Mansarovar pilgrimage connection.

Neither side consulted Nepal or sought its opinion before that agreement that boosted pilgrimage and trade to Tibet.

What is the current position? Nepal has published a revised official map incorporating the territory from the Limpiyadhura source of the Kali to Kalapani and Lipulekh pass in the northeast of the triangular region as its territory. On May 22, the Cabinet led by Prime Minister K.P. Sharma Oli registered a constitution amendment motion to grant constitutional status to the map.

Indian observers say this move makes any future solution on the Kalapani issue nearly impossible as a constitutional guarantee will make Kathmandu’s position inflexible.

Why now? In mid-April, a report issued by the United States State Department on “Adherence to and Compliance with Arms Control, Nonproliferation, and Disarmament Agreements and Commitments (Compliance Report)” raised concerns that China might be conducting nuclear tests with low yields at its Lop Nur test site, in violation of its Comprehensive Nuclear-Test-Ban Treaty (CTBT) undertakings.

The U.S. report also claims that Russia has conducted nuclear weapons experiments that produced a nuclear yield and were inconsistent with ‘zero yield’ understanding underlying the CTBT, though it was uncertain about how many such experiments had been conducted.

Implications: The United States has not conducted a nuclear test explosion since September 1992, and nuclear nonproliferation advocates warned that doing so now could have devastating consequences.

Such a test would be a significant departure from US defense policy and dramatically up the ante for other nuclear-armed nations. If it were to go ahead it would be seen as the “starting gun to an unprecedented nuclear arms race”.

What is CTBT? The Comprehensive Nuclear-Test-Ban Treaty (CTBT) is the Treaty banning all nuclear explosions – everywhere, by everyone. The Treaty was negotiated at the Conference on Disarmament in Geneva and adopted by the United Nations General Assembly. It opened for signature on 24 September 1996.

The Treaty will enter into force after all 44 States listed in Annex 2 to the Treaty will ratify it. These States had nuclear facilities at the time the Treaty was negotiated and adopted.

India, North Korea and Pakistan have not yet signed the Treaty. What is a “zero yield”? A comprehensive test ban has been defined as a “zero yield” test ban that would prohibit supercritical hydro-nuclear tests but not sub-critical hydrodynamic nuclear tests.

Why is the CTBT so important? The CTBT is the last barrier on the way to develop nuclear weapons. It curbs the development of new nuclear weapons and the improvement of existing nuclear weapon designs. The Treaty provides a legally binding norm against nuclear testing. The Treaty also helps prevent human suffering and environmental damages caused by nuclear testing.

Concerns ahead: Both China and Russia have dismissed the U.S.’s allegations, pointing to the Trump administration’s backtracking from other negotiated agreements such as the Iran nuclear deal or the U.S.-Russia Intermediate-Range Nuclear Forces (INF) Treaty.

Tensions with China are already high with trade and technology disputes, militarisation in the South China Sea and most recently, with the novel coronavirus pandemic. The U.S. could also be preparing the ground for resuming testing at Nevada.

The Cold War rivalry was already visible when the nuclear arms race began in the 1950s. New rivalries have already emerged. Resumption of nuclear testing may signal the demise of the ill-fated CTBT, marking the beginnings of a new nuclear arms race.

In its recent report, China said it would focus on “achieving shared growth through consultation and collaboration” and would “work with BRI partners for mutually beneficial outcomes”.

Background: In recent weeks, China has faced calls from countries in Asia and Africa to delay or waive debt repayments. China’s financial assistance includes grants, interest-free loans and preferential loans.

What is BRI? BRI consisting of the land-based belt, ‘Silk Road Economic Belt’, and ‘Maritime Silk Road’, aims to connect the East Asian economic region with the European economic circle and runs across the continents of Asia, Europe and Africa.

BRI is China’s ambitious project announced in 2013. It covers about 65% of the world population, 60% of the world GDP and over 70 countries in six economic corridors.

China is spending almost $1 trillion to revive and renew the overland and maritime trade links between China, Europe, West Asia, and East Africa through construction of modern ports linked to high-speed road and rail corridors.

India’s concerns with BRI: India argues that the BRI and China-Pakistan Economic Corridor project violates its sovereignty because it passes through the part of the Pakistan-occupied Kashmir that belongs to India. Debt trap: BRI projects are pushing recipient countries into indebtedness, do not transfer skills or technology and are environmentally unsustainable.

China is planning to extend the CPEC to Afghanistan. Meanwhile, Maldives, Nepal, Myanmar and Sri Lanka are eagerly pursuing potential BRI projects.

Through OBOR, China is countering the strategies of India in North East region and is promoting its greater presence in North East India, part of which China claims as its own territory. This may have a security impact on India.

Tense bilateral relations with China, deep mistrusts and India’s growing concerns over Chinese hegemonic intentions in South Asia and Indo-Pacific region make it practically unlikely that India will ever consider joining this project.

Military deployment: The fact that the Chinese have begun to deploy 30,000 security personnel to protect the projects along the CPEC route makes it an active player in the politics of the Indian sub-continent. Clearly, this is a case of double standards.

Cicadas are insects that spend most of their lives underground and emerge from the soil mainly to mate. Once out of the ground, their life span is fairly short, somewhere between two-four weeks.

There are three species of 17-year cicadas and three species of 13-year cicadas.

What happens when cicadas emerge? After emerging from the ground in billions, the cicadas shed their exoskeletons or outer skins to take their winged form.

Male cicadas “sing” to attract the females, the collective chorus of these male cicadas is very loud and can reach up to 100 decibels, which is as much as a powered lawnmower.

After mating,the females lay their eggs in twigs that are ½ to ¼ in diameter. One female is capable of laying over 400 eggs in 40-50 different sites. The eggs remain in the twigs for six to ten weeks before they hatch and after hatching the nymphs fall to the ground where they burrow 6-18 inches underground to feed and emerge 13 or 17 years later, depending on their grouping.

Concerns: The egg-laying by the cicadas causes significant damage to small twigs. They damage many ornamental and hardwood trees, especially newly planted fruit and ornamental trees such as apple, dogwood, peach, cherry and pear among others, which are the most seriously damaged.

LOCATION: Benishangul-Gumuz region, Ethiopia.

Formerly known as the Millennium Dam, it is under construction in the Benishangul-Gumuz region of Ethiopia, on the Blue Nile River, which is located about 40km east of Sudan.

After completion, it’ll be Africa’s largest.

Why in News? Egypt has objected to the construction of this dam and in Sudan has found itself caught in the midst of this conflict. Due to the importance of the Nile as a necessary water source in the region, observers are concerned that this dispute may evolve into a full-fledged conflict between the two nations. The US has stepped in to mediate.

Three new plant species reported in the evergreen forest patches of the southern end of the Western Ghats in Kerala and Tamil Nadu. They are:

Eugenia sphaerocarpa:Belongs to the Myrtaceae or Rose apple family. Found mainly in Kakkayam area of the Malabar wildlife sanctuary in Kerala above 800m. The fruits of Eugenia species are known for their palatability.

Goniothalamus sericeus:Belongs to the Annonaceae family of custard apple. Found in the Kanyakumari wildlife sanctuary in Tamil Nadu at an altitude of 1400m. Sericeus refers to the presence of dense silky hair on petals.

Memecylon nervosum: Belongs to the Melastomataceae (Kayamboo or Kaasavu in local parlance) family. Nervosum refers to the presence of prominently raised lateral and intramarginal veins on the lower surface of the lamina.

It uses a recombinant adenovirus type-5 vector that carries the genetic material that codes for spike glycoprotein of novel coronavirus. The adenovirus is a weakened common cold virus.

Why in News? Phase-1 trial of this vaccine was found to be safe, well-tolerated and able to generate immune responses against the virus. The phase-2 trial will be a randomised, double-blinded and placebo-controlled trial.

Mizoram grants ‘industry’ status to sports: Aiming to further bolster the sports activities, by attracting investment, sports have been accorded industry status in Mizoram, first state in India to do so.

Besides football, hockey, wrestling, there are a number of indigenous games such as, stick fighting, Insuknawra (rod pushing), Kalchhet kal (relay race using bamboo), Inarpathai (cock fighting) in Mizoram.

Context: Bihar Postal Circle (Department of Posts) to deliver “Shahi Lichi” and “Zardalu Mango” at doorsteps of people.

Shahi Litchi: Grown mainly in Muzaffarpur. It has high pulp and is juicier compared to the litchi grown in other parts of the country. The conditions here are ideal for litchi cultivation, because of humid conditions and alluvial soil. Shahi Litchi has got a Geographical Indication (GI) tag.

Zardalu/Jardalu Mango: It is light yellow in colour and is known for its sweet fragrance. They are chiefly grown in Bhagalpur in Bihar. They also have the GI tags.

Katkari is one of the 75 Particularly Vulnerable Tribal Groups.

Katkaris were historically forest dwellers. They are located primarily in Raigad and in parts of Palghar, Ratnagiri and Thane districts as well and in some places of Gujarat.

The British administration had classified them under the Criminal Tribes Act, 1871.

The name Katkari is derived from a forest-based activity – the making and barter or sale of Katechu (kath) from the khair tree (Acacia Katechu). It is produced by boiling wood from the Khair tree and evaporating the resulting brew.