Current Affairs 28 August 2024

CONTENTS

1. Unified Pension Scheme
2. Indian Railways’ Shift Towards Renewable Energy Sources
3. Trends in Special Needs Adoptions in India
4. Polaris Dawn Mission
5. Plea Bargaining
6. Conservation Efforts for Horseshoe Crabs in India

Unified Pension Scheme

Context:

The Union Cabinet has sanctioned the Unified Pension Scheme (UPS), designed to ensure a guaranteed pension for government employees post-retirement. Scheduled to commence on April 1, 2025, this scheme will replace the existing National Pension System (NPS) for central government employees. Additionally, state governments will be given the choice to adopt this new pension framework.

Relevance:

GS II: Government Policies and Interventions

Dimensions of the Article:

1. Unified Pension Scheme Provisions Overview
2. Fiscal Implications of UPS
3. About National Pension System
4. About Old Pension Scheme

Unified Pension Scheme Provisions Overview

Pension Calculation

• Base Amount: Employees will receive 50% of their average basic salary from the last 12 months before retirement if they have at least 25 years of qualifying service.
• Proportional Reduction: For those with less than 25 years but at least 10 years of service, the pension amount reduces proportionately.

Minimum Pension Guarantee

• Assured Pension: Regardless of the base amount calculation, the scheme guarantees a minimum pension of Rs 10,000 per month after 10 years of service.

Family Support

• Assured Family Pension: In the event of the retiree’s death, their immediate family is entitled to 60% of the pension the retiree was receiving.

Inflation Adjustment

• Indexation Method: Pensions will be indexed to inflation based on the All India Consumer Price Index for Industrial Workers, ensuring adjustments for cost of living increases.
• Dearness Relief: Provides additional financial support to account for inflation impacts on the three types of pensions mentioned.

Additional Retirement Benefits

• Lump Sum Payment: Upon retirement, employees receive a lump sum equivalent to 1/10th of their monthly earnings (salary plus dearness allowance) for each six-month period completed at retirement. This benefit is in addition to the regular gratuity.
• Gratuity: A separate gratuity payment is provided as a thank-you for the employees’ service, calculated based on total years of service and final salary.

Option to Choose Pension Plan

• Flexibility in Choice: Employees have a one-time option to choose whether to continue with the National Pension System (NPS) or switch to this Unified Pension Scheme. Once chosen, this decision is irreversible.

Fiscal Implications of UPS

The fiscal implications of implementing the Unified Pension Scheme (UPS), especially in a context where governments already grapple with high debt and significant debt-to-GDP ratios, can be substantial:

• Increased Fiscal Burden: The UPS, which resembles the more traditional Old Pension Scheme (OPS), promises defined benefits post-retirement, which might require higher current and future government outlays compared to the more market-dependent National Pension System (NPS).
• Potential Strain on Government Finances: If all states were to adopt UPS, the fiscal pressure could be intense, particularly because it commits significant government funds to pensions, irrespective of the actual returns on pension fund investments. The Reserve Bank of India’s projection that this could lead to costs up to 4.5 times that of the NPS underscores the potential for severe financial strain, amounting to 0.9% of GDP annually by 2060.
• Impact on Debt-to-GDP Ratio: The scheme could exacerbate an already high debt-to-GDP ratio, leading to potential challenges in fiscal management and sustainability. Higher pension liabilities could lead to increased government borrowing, worsening fiscal metrics and potentially affecting credit ratings.

About National Pension System

• National Pension System is a defined contributory pension introduced by Government of India.
• Any employee from public, private and even the unorganised sectors can opt for this. Personnel from the armed forces are exempted.
• The scheme is open to all across industries and locations.

The other eligibility criteria for opening an NPS account:

• Must be an Indian citizen.
• Must be between the ages of 18 and 65.
• Must be KYC compliant.
• Must not have a pre-existing NPS account.

NPS Benefits

• NPS offers returns higher than traditional instruments like the PPF (Public Provident Fund).
• It offers many investment options to subscribers who also have a say in where their funds are invested.
• The NPS reduces the retirement liabilities of the government.
• If the subscriber has been investing for at least three years, he/she can withdraw up to 25% for certain purposes before retirement (age 60). This withdrawal can be done up to 3 times with a gap of at least 5 years between each withdrawal. These restrictions are only for tier I and not tier II accounts.
• The entire amount cannot be withdrawn by the account-holder on retirement [Changes to be introduced]. As of April 2021, 60% can be withdrawn which has now been made tax-free. The rest 40% has to be kept aside so that the subscriber can receive a regular pension from an insurance firm.

The story so far about NPS

• Started as the New Pension Scheme for government employees in 2004 under a new regulator called the Pension Fund Regulatory and Development Authority (PFRDA), the National Pension System (NPS) has been open for individuals from all walks of life to participate and build a retirement nest-egg.
• Given the dominance of informal employment in India, the Employees’ Provident Fund Organisation, which is contingent on a formal employer-employee relationship, only covers a fraction of the workforce.
• The NPS has been gradually growing in size and now manages ₹5.78 lakh crore of savings and 4.24 crore accounts in multiple savings schemes.
• Of these, over 3.02 crore accounts are part of the Atal Pension Yojana (APY), a government-backed scheme for workers in the unorganised sector that assures a fixed pension payout after retirement.
• The rest constitute voluntary savings from private sector employees and self-employed individuals, for whom some significant changes are on the anvil.

About Old Pension Scheme

• Pension to government employees at the Centre as well as states was fixed at 50 per cent of the last drawn basic pay.
• The attraction of the Old Pension Scheme or ‘OPS’ — called so since it existed before a new pension system came into effect for those joining government service from January 1, 2004 — lay in its promise of an assured or ‘defined’ benefit to the retiree.
• It was hence described as a ‘Defined Benefit Scheme’.
  • To illustrate, if a government employee’s basic monthly salary at the time of retirement was Rs 10,000, she would be assured of a pension of Rs 5,000.
• Also, like the salaries of government employees, the monthly payouts of pensioners also increased with hikes in dearness allowance or DA announced by the government for serving employees.

Dearness allowance

• DA — calculated as a percentage of the basic salary — is a kind of adjustment the government offers its employees and pensioners to make up for the steady increase in the cost of living.
• DA hikes are announced twice a year, generally in January and July.
• A 4 per cent DA hike would mean that a retiree with a pension of Rs 5,000 a month would see her monthly income rise to Rs 5,200 a month.
• As on date, the minimum pension paid by the government is Rs 9,000 a month, and the maximum is Rs 62,500 (50 per cent of the highest pay in the Central government, which is Rs 1,25,000 a month).

Concerns with the OPS

The pension liability remained unfunded:

• There was no corpus specifically for pension, which would grow continuously and could be dipped into for payments.
• The Government of India budget provided for pensions every year; there was no clear plan on how to pay year after year in the future.
• The government estimated payments to retirees ahead of the Budget every year, and the present generation of taxpayers paid for all pensioners as on date.
• The ‘pay-as-you-go’ scheme created inter-generational equity issues — meaning the present generation had to bear the continuously rising burden of pensioners.

The OPS was also unsustainable:

• For one, pension liabilities would keep climbing since pensioners’ benefits increased every year; like salaries of existing employees, pensioners gained from indexation, or what is called ‘dearness relief’ (the same as dearness allowance for existing employees).
• And two, better health facilities would increase life expectancy, and increased longevity would mean extended payouts.
• Over the last three decades, pension liabilities for the Centre and states have jumped manifold.
  • In 1990-91, the Centre’s pension bill was Rs 3,272 crore, and the outgo for all states put together was Rs 3,131 crore.
  • By 2020-21, the Centre’s bill had jumped 58 times to Rs 1,90,886 crore; for states, it had shot up 125 times to Rs 3,86,001 crore.

-Source: Indian Express

Indian Railways’ Shift Towards Renewable Energy Sources

Context:

Indian Railways is actively investigating the incorporation of nuclear energy through dedicated units to amplify its dependence on renewable and non-fossil fuel sources. Additionally, the organization is progressing with the setup of solar power installations and wind energy plants, diversifying its energy portfolio towards more sustainable options.

Relevance:

GS III: Nuclear Technology

Dimensions of the Article:

1. Nuclear-Powered Trains
2. Benefits of Nuclear-Powered Trains
3. Challenges Facing Nuclear-Powered Trains
4. Necessity for Alternative Energy Sources in Indian Railways
5. Conclusion

Nuclear-Powered Trains

• Definition and Mechanism:
  • Nuclear-powered trains leverage heat from nuclear reactions to generate steam at high pressure.
  • This steam propels two turbines: one for moving the train and another for generating electricity for onboard equipment like air conditioners and lights.
• Historical Context:
  • The idea of using nuclear power for railway traction was first considered seriously in the 1950s under the auspices of the USSR’s Ministry of Transport.
• Design Features:
  • These trains would utilize portable nuclear reactors to convert heated fluid into steam, which drives the electric turbines powering the train.
  • Thorium reactors are preferred due to their lower radiation risks and inherent safety features designed to minimize misuse and enhance safety.

Benefits of Nuclear-Powered Trains

• Environmental Impact:
  • They offer a significant reduction in CO2 emissions, supporting global climate change initiatives.
• Efficiency and Cost-effectiveness:
  • High energy output from minimal fuel reduces operational costs and the environmental footprint of long-distance rail transport.
• Operational Independence and Flexibility:
  • Can operate without reliance on overhead electric lines, reducing infrastructure costs and increasing operational flexibility.
  • Capable of covering long distances without the need for frequent refueling, beneficial for extensive rail networks.
• Operational Efficiency:
  • Continuous power supply from nuclear reactors optimizes rail transport efficiency.

Challenges Facing Nuclear-Powered Trains

• Safety Concerns:
  • Managing nuclear materials and preventing radiation leaks pose substantial challenges. Effective shielding and safety protocols are crucial for the protection of passengers and crew.
• Initial Development Costs:
  • High initial investment is required for the development and integration of small, safe nuclear reactors into locomotives.
• Engineering Complexities:
  • The design, maintenance, and operation of nuclear reactors on moving trains present complex engineering challenges.

Necessity for Alternative Energy Sources in Indian Railways

• High Electricity Usage:
  • Indian Railways consumes over 20 billion kWh annually, accounting for 2% of the national electricity consumption, highlighting the need for more sustainable energy solutions.
• Growing Power Needs:
  • Energy requirements are expected to rise from 4,000 MW in 2012 to around 15,000 MW by 2032, driven by extensive electrification efforts, necessitating the adoption of diverse energy sources.
• Electrification and Emission Goals:
  • With the aim to electrify its entire broad-gauge network by 2030, Indian Railways faces increased electricity demands, underscoring the importance of sustainable energy sources.
  • Aims to cut down CO2 emissions by 33% from 2005 levels by 2030 as part of its low-carbon strategy.
• Financial Implications:
  • Railways’ operational costs are increasing rapidly, with revenue expenditure growing at an annual rate of 7.2%, outpacing revenue growth of 6.3%.
• Energy Self-Reliance:
  • Efforts are underway to generate its own energy to reduce reliance on external power sources and decrease operational expenses.
• Leading Consumer of Electricity:
  • As the largest consumer of electricity, Indian Railways spends nearly Rs 20,000 crore annually on energy for its operations and offices.
• Cost Reduction Strategies:
  • There is an ongoing initiative to adopt renewable energy sources and explore lower-cost power generation models to curtail expenses.

Conclusion

• Strategic Imperatives:
  • The push for alternative energy solutions in Indian Railways is compelled by critical factors such as escalating energy consumption and costs, environmental considerations, and the imperative for energy security and efficient cost management.
• Potential of Nuclear Propulsion:
  • Although nuclear-powered trains could significantly mitigate carbon emissions and enhance operational efficiency, challenges pertaining to safety, cost, and societal acceptance remain formidable. Ongoing research and technological advancements might eventually integrate nuclear propulsion into the future of railway transport.

-Source: The Hindu

Trends in Special Needs Adoptions in India

Context:

Since 2019, out of 18,179 total adoptions, only 1,404 have been children with special needs, despite overall adoption numbers increasing over the past five years. Activists have highlighted that, although more children with special needs are available for adoption, the actual rate of adoption for these children remains markedly low.

Relevance:

GS II: Polity and Governance

Dimensions of the Article:

1. Understanding Adoption: Legal and Practical Aspects in India
2. About the Central Adoption Resource Authority (CARA)
3. Benefits of Adoption for Children and Society
4. Challenges Related to Adoption in India

Understanding Adoption: Legal and Practical Aspects in India

Definition of Adoption

• Legal Perspective: Adoption involves the legal process where a child is permanently separated from their biological parents and legally integrated into the adoptive family, receiving all associated rights and responsibilities.

Legal Framework for Adoption in India

• Governing Laws:
  • The Hindu Adoption and Maintenance Act, 1956 (HAMA)
  • The Juvenile Justice (Care and Protection of Children) Act, 2015
  • Accompanied by Juvenile Justice Model Rules, 2016 and Adoption Regulations, 2017.
• Core Principles:
  • Child’s best interests are paramount.
  • Adoption placements should consider socio-cultural congruity, aiming for assimilation into similar cultural settings as far as possible.
• Centralized Agency: Central Adoption Resource Authority (CARA) oversees all adoptions, maintaining a centralized database for children and prospective parents through the Child Adoption Resource Information and Guidance System (CARINGS).

Eligibility for Adoption

• Who Can Be Adopted:
  • Orphans, abandoned, or surrendered children declared legally free for adoption.
  • Children from a relative or children of a spouse from a prior marriage can be adopted, including those surrendered by biological parents.
• Adopter Criteria:
  • Any individual, regardless of marital status, can adopt, provided they are physically, mentally, and financially stable without life-threatening medical conditions.
  • Couples need a stable marital relationship of two years with mutual consent.
  • Single women can adopt children of any gender; however, single men cannot adopt girl children.
  • The age difference between the child and the adoptive parent(s) should be at least 25 years.
  • Families with three or more biological children can adopt only if they opt for children with special needs or those who are hard to place.

About the Central Adoption Resource Authority (CARA):

• CARA is a statutory body under the Ministry of Women & Child Development, Government of India.

Role as Central Authority:

• Designated as the Central Authority for handling inter-country adoptions in line with the Hague Convention on Inter-country Adoption, 1993, ratified by India in 2003.

Functions:

• Nodal body regulating the adoption of “orphaned, surrendered, and abandoned children” in India.
• Monitors and regulates entities such as State Adoption Resource Agencies (SARAs), Specialized Adoption Agencies (SAAs), Authorized Foreign Adoption Agencies (AFAAs), Child Welfare Committees (CWCs), and District Child Protective Units (DPUs).

Legal Framework in India:

• Child placement with a family is governed by the Hindu Adoption and Maintenance Act, 1956; the Guardians and Wards Act, 1890; and the Juvenile Justice Act, 2000.
• Mandatory registration of Child Care Institutions (CCIs) and linking to CARA is outlined in the Juvenile Justice (Care and Protection of Children) Act, 2015.

Hague Convention on Inter-country Adoption:

• The Convention establishes safeguards for children and families involved in inter-country adoptions.
• Aims to prevent the illegal abduction, sale, or trafficking of children during adoptions.
• Objectives:
• Protect children and families from illegal or ill-prepared inter-country adoptions.
• Prevent abduction, sale, or trafficking of children.
• Establish minimum standards while recognizing that it does not serve as a uniform law of adoption.

Benefits of Adoption for Children and Society

• Loving and Stable Family Environment:
  • Adoption provides children deprived of parental care with a loving and stable family environment.
• Holistic Development and Well-being:
  • Ensures the holistic development and well-being of adopted children, addressing their physical, mental, emotional, social, and educational needs.
• Social and Economic Contribution:
  • Contributes to the social and economic development of the country by:
    • Reducing the burden on the state and society in caring for orphaned, abandoned, or surrendered children.
    • Empowering adopted children to become productive and responsible citizens.
• Positive Adoption Culture:
  • Cultivates a positive adoption culture in society by:
    • Breaking down social stigmas associated with adoption.
    • Raising awareness about the numerous benefits of adoption.
• Empowerment of Children:
  • Empowers children through adoption, providing them with opportunities for growth, education, and a brighter future.
• Family and Community Support:
  • Strengthens the fabric of families and communities by fostering support networks around adopted children.
• Diversity and Inclusion:
  • Promotes diversity and inclusion by creating families that embrace children from different backgrounds, cultures, and communities.
• Fulfillment of Parental Desires:
  • Allows prospective adoptive parents to fulfill their desires of parenthood, creating a positive impact on their lives.
• Humanitarian and Compassionate Act:
  • Reflects a humanitarian and compassionate act, demonstrating the potential for positive change through acts of care and kindness.
• Lifetime Bonds and Relationships:
  • Builds lifetime bonds and relationships between adoptive parents and children, fostering love, support, and a sense of belonging.

Challenges in Adoption Process in India

• Low Adoption Rates:
  • Despite many orphaned and abandoned children in Child Care Institutions (CCIs), actual adoptions are few due to the limited number of children legally cleared for adoption.
• Procedural Challenges:
  • Prospective parents often face lengthy waits and emotional drain with minimal communication from CARA, leading to frustration.
  • Numerous legal steps and procedural delays often prevent children in CCIs from entering the adoption pool.
• Societal and Cultural Hurdles:
  • Traditional resistance based on caste, class, or genetics is waning, but still presents a barrier to adoption acceptance.
• Special Needs and Older Children:
  • There’s significant resistance to adopting older children, siblings, or those with disabilities within India, although these groups find more acceptance among foreign adoptive parents.

-Source: The Hindu

Polaris Dawn Mission

Context:

The Polaris Dawn mission aims to revolutionise commercial spaceflight with a high-orbit mission and the first-ever private spacewalk by non-professional astronauts.

Relevance:

GS III: Science and Technology

Polaris Dawn Mission

• Mission Overview: Polaris Dawn, a groundbreaking private space mission led by entrepreneur Jared Isaacman, aims to conduct the first non-governmental spacewalk at an unprecedented altitude of 700 kilometers, surpassing the International Space Station (ISS) which orbits at about 400 kilometers.
• Spacecraft and Record: Utilizing SpaceX’s Falcon 9 rocket and Dragon capsule, the mission seeks to break the altitude record set by NASA’s Gemini 11 in 1966, which reached 1,373 kilometers.

The Van Allen Belts

• Composition and Discovery: Comprising charged particles trapped by Earth’s magnetosphere, the Van Allen Belts were discovered in 1958 by James Van Allen. They include an inner belt rich in protons and an outer belt filled with high-energy electrons.
• Radiation Risks: The mission’s spacewalk poses significant radiation exposure, exceeding levels experienced on the ISS, enhancing the risk of radiation sickness and cancer.

Mission Significance

• Navigating Radiation: This mission is crucial for understanding how to traverse the radiation-intense Van Allen Belts, an essential capability for future Mars missions.
• Spacesuit Testing: Astronauts will test advanced SpaceX spacesuits designed to offer protection against the intense radiation of the Van Allen Belts.

Health Research and Innovation

• Biobank Studies: The mission aims to gather data on the effects of space travel on human biology, focusing on issues like Spaceflight-Associated Neuro-ocular Syndrome (SANS) and decompression sickness caused by nitrogen gas bubbles in space.
• Communication Technology: Testing of SpaceX’s Starlink laser communications will inform the development of future deep-space communication systems, crucial for extended missions to the Moon, Mars, and beyond.

Future Missions

• Polaris Missions: Led by Isaacman, this series includes multiple missions, with the first designed to last five days and subsequent missions expanding the boundaries of human spaceflight and research.
• Starship Test: The third mission in the Polaris series will feature the inaugural crewed test of SpaceX’s reusable Starship spacecraft, highlighting its potential for future interplanetary travel.

-Source: The Hindu

Plea Bargaining

Context:

Nearly two decades after plea bargaining was introduced, its application in India remains minimal, a recent report by the Ministry of Law and Justice has revealed.

Relevance:

GS II: Polity and Governance

Plea Bargaining in India

• Plea bargaining involves a defendant agreeing to plead guilty in return for some form of concession from the prosecution, such as a reduced sentence, dropping of charges, or a lesser charge.

Objectives

• The main goal of plea bargaining is to expedite the resolution of criminal cases, conserving time, resources, and costs for both the prosecution and the defendant.

Legal Framework

• Governed by the Code of Criminal Procedure, 1973, plea bargaining was incorporated into this law in 2005.
• It’s applicable for offenses that carry a maximum punishment of up to seven years imprisonment.
• The accused must voluntarily opt for plea bargaining, fully aware of the implications.

Procedure

• Initiation: Starts with the accused submitting an application to plead guilty.
• Court’s Role: The court evaluates the application, deciding to either accept and move to negotiations, or reject based on the specifics of the case.
• Negotiation Phase: Involves discussions between the prosecutor and the defendant, leading to a potential plea agreement.
• Finalization: If an agreement is reached, the court records the guilty plea and sentences accordingly, following the terms of the agreement.
• Right to Withdraw: The accused can withdraw their plea anytime before the sentence is officially pronounced.
• Outcome Finality: Once sentenced, the outcome is final and cannot be appealed, except on grounds of manifest injustice.

Implications and Rights

• Discretionary Power of Court: The court holds the discretion to reject the plea deal if deemed unjust or contrary to justice.
• Breach of Agreement: If terms are violated, the court may annul the agreement and resume the trial.
• Irrevocability of Sentence: Post-sentencing, the plea becomes irrevocable barring claims of overt injustice.

-Source: The Hindu

Conservation Efforts for Horseshoe Crabs in India

Context:

The Zoological Survey of India (ZSI), in collaboration with the Odisha Forest Department, has initiated a project to tag Horseshoe Crabs. This initiative aims to preserve this ancient species by tagging hundreds of crabs to study their population patterns and identify potential threats to their survival.

Relevance:

GS III: Environment and Ecology

Horseshoe Crabs

• Horseshoe crabs belong to the family Limulidae and are the sole surviving members of the order Xiphosura.
• They thrive in marine and brackish waters.
• Known as one of the oldest living creatures on Earth, horseshoe crabs first appeared around 250 million years ago, earning them the title of “living fossils.”

Species Distribution

• Global Species: There are four recognized species of horseshoe crabs.
  • Tachypleus gigas: Found in Odisha and West Bengal, India.
  • Carcinoscorpius rotundicauda: Located in the Sundarbans mangroves of West Bengal.
  • Limulus polyphemus: Native to the eastern coast of the USA and the Gulf of Mexico.
  • Tachypleus tridentatus: Inhabits the Indo-Pacific region.

Threats and Conservation

• Current Threats: They face risks from destructive fishing practices and illegal smuggling.
• Legal Protection: In India, species are safeguarded under Schedule II of the Wildlife Protection Act, 1972.
• IUCN Status:
  • American horseshoe crab: Vulnerable.
  • Tri-spine horseshoe crab: Endangered.
  • The status of the other two species has not yet been evaluated.

Medical Significance

• Medicinal Applications: The carapace is used traditionally to treat scars.
• Scientific Use: Their blood is vital in biomedicine due to its unique blue color and immune cells sensitive to bacterial toxins. These properties are exploited in the Limulus Amebocyte Lysate (LAL) test, crucial for ensuring the safety of vaccines.

Cultural Impact

• Awareness and Conservation: International Horseshoe Crab Day is observed annually on June 20th, highlighting global conservation efforts to protect these ancient mariners.

-Source: The Hindu