This article deals with ‘Space Junk‘. This is part of our series on ‘Science and Technology, which is an important pillar of the GS-3 syllabus. For more articles, you can click here.
Introduction
Space Junk is the collection of defunct objects in orbit around Earth.
Two primary debris fields exist, i.e. (1) the ring of objects in the Geostationary Orbit and (2) the cloud of objects in the Low Earth Orbit (LEO).
Kessler’s Syndrome
Matter in the orbit travels at ridiculously high speeds. If this matter were to travel in the same plane and direction indefinitely, it would be impossible for any matter to collide. However, in space, uncontrolled objects do not follow a straight path. Instead, each piece of debris is subject to drift and decay and can collide with each other at any time.
The chance of collision is influenced by the number of objects in space. Beyond a certain point, a runaway chain reaction may occur that would rapidly increase the number of debris objects in orbit and significantly increase the risk to operational satellites. This is known as Kessler’s Syndrome.
Risks associated with Space Debris
Kessler Syndrome (explained above)
Increased cost of space launches due to extra protective and mitigation measures.
Interference with astronomical observations.
Risk to space assets and astronauts
Large space debris re-entering the atmosphere in an uncontrolled way can create a risk to the population on the ground.
Steps to Combat Space Junk
Steps by India
Project NETRA (Network for Space Object Tracking and Analysis): It is a joint project of ISRO and the Indian Institute of Astrophysics (IIA). Under the project, optical telescope facilities, connected radars, data processing units, and a control centre will be established to track space objects as small as 10 cm up to an orbit of 2,000 km.
Debris-Free Space Missions (DFSM) 2030: It aims to achieve debris-free space missions by all Indian space actors by 2030.
Space Situational Awareness Control Centre (SSACC): It assimilates tracking data of inactive satellites
International Level
Inter-Agency Debris Coordination Committee (IADC): It is an international governmental forum for worldwide coordination related to man-made and natural debris in space.
Zero Debris Charter: Signed by 12 countries, it contains high-level guiding principles and jointly defined targets to become debris-neutral by 2030.
This article deals with ‘Dr. Hargobind Khorana – UPSC.’ This is part of our series on ‘Science and Technology’ which is an important pillar of the GS-3 syllabus. For more articles, you can click here.
Initial Life
Dr Hargobind Khorana was born in Raipur village of Multan district (Punjab) in 1922. He later became a naturalized citizen of the US.
His early training was in chemistry, but later, he started applying chemistry to solve problems in biology, beginning the field of Chemical Biology.
Major Achievements
Interpretation of the Genetic Code
He received the 1968 Nobel Prize for Physiology or Medicine (shared with Nirenberg and Holley) for interpreting genetic codeand its function in protein synthesis.
Synthetic DNA
Dr Khorana constructed the world’s first synthetic gene, paving the way for further advancements in the field of genetic engineering and biotechnology.
Exploration of DNA Polymerase
DNA Polymerase are enzymes that help in replicating DNA. He contributed to the science of Polymerase Chain Reaction (PCR) tests, used to detect genetic material from a specific organism, like a virus.
Discovery of tRNA
Dr. Khorana discovered the structure of transfer-RNA, or tRNA (small RNA molecule that participates in protein synthesis).
Vision Studies
He had an interest in investigating the molecular process behind vision.
He investigated rhodopsin mutations associated with retinitis pigmentosa, which causes night blindness. Rhodopsin is a light-sensitive protein found in the retina of the vertebrate eye.
This article deals with ‘Union Public Service Commission (UPSC)– Indian Polity.’ This is part of our series on ‘Polity’ which is important pillar of GS-2 syllabus . For more articles , you can click here.
Introduction
The Union Public Service Commission (UPSC) serves as the central recruiting agency in India and is responsible for conducting examinations and selecting candidates for various government posts.
The Constitution of India directly created this body, highlighting its significance and constitutional mandate.
The provisions related to the UPSC are outlined in Articles 315 to 323, which fall under Part XIV of the Indian Constitution.
Article 315 establishes the UPSC and outlines its composition, functions, and powers.
Articles 316 to 319 detail the appointment, removal, suspension, prohibition to hold office after ceasing to be member and term of office of members of the UPSC, ensuring their independence and impartiality.
Article 320 empowers the UPSC to conduct examinations for appointments to civil services and other positions, ensuring a merit-based selection process.
Article 321 provides for the power to extend the functions of Public Service Commission.
Articles 322 and 323 deal with the expenses and annual reports of the UPSC
Composition
UPSC consists of a Chairman and other Members appointed by the President of India.
The Constitution hasn’t specified the strength of the Commission & left the matter to the discretion of the President.
No qualifications are prescribed except that one-half of the members of the Commission should be persons who have held office for at least ten years, either under the Government of India or the Government of a state.
The Constitution also authorizes the President to determine the conditions of service of the Chairman and other members.
Term of Chairman and Members
The
Chairman and members of the Commission hold office for
Term of 6 years or
Until they attain the age of 65 years
Whichever is earlier.
However, members of
the UPSC have the option to relinquish their positions at any time by
submitting their resignation to the President of India.
Removal of Chairman and Members
The President can remove the Chairman or Members of UPSC.
If he is adjudged insolvent (that is, has gone bankrupt)
If he engages in any paid employment outside of his office
Infirmity of mind or body
The President can also remove them due to misbehaviour. However, in this case, the President has to refer the matter to the Supreme Court for an enquiry and act according to the advice.
Independence
The manner of
removal of
members of the UPSC ensures their independence, as they can only be
removed on the grounds mentioned above, safeguarding their security of
tenure.
Conditions of service for UPSC members cannot be
altered to their disadvantage after their appointment, ensuring stability and
protection against arbitrary changes.
The
entire expenses of the UPSC are charged on the Consolidated Fund
of India,
ensuring financial autonomy.
The Chairman of UPSC (on ceasing to
hold office) is not eligible for further employment in the Government of
India or a state.
Member of
UPSC (on ceasing to hold office) is eligible for appointment as the
Chairman of UPSC or a State Public Service Commission (SPSC), but not for
any other employment in the Government of India or a state.
Neither the
Chairman nor a member of the UPSC is eligible for reappointment to that
office.
Functions
The
UPSC conducts examinations for appointments to the All-India
Services, Central Services, and Public Services of centrally administered
territories, ensuring merit-based selection.
It assists
the States in Joint Recruitment for any services for which candidates
possessing special qualifications are required.
It serves
the needs of a state at the request of the State Governor and with
the approval of the President of India.
It is consulted on
matters related to personnel management (like suitability of candidates,
promotions, transfers, extension of service etc. of civil servants).
The
jurisdiction of UPSC can be extended by an act made by the Parliament.
The UPSC annually presents a report on its
performance to the President. The President places this report before both
Houses of Parliament, along with a memorandum explaining the cases where the
advice of the Commission was not accepted and the reasons for such
non-acceptance.
Limitations
The following matters are kept outside the functional jurisdiction
of UPSC. In other words, the UPSC is not
consulted
While making reservations of appointments or posts in favour of any backward class of citizens.
While taking into consideration the claims of SCs & STs in making appointments
Posts of the highest diplomatic nature and a bulk of group C and D services.
With regard to the selection for temporary post (less than a year.)
The President holds
the authority to exempt certain posts, services, and issues from the
jurisdiction of the UPSC. However, any regulations established by the President
for this purpose must be presented before both Houses of Parliament for a
minimum of 14 days. Parliament retains the power to modify or revoke these
regulations as deemed necessary.
Role of UPSC
The Constitution visualises the UPSC to be the ‘watchdog of the merit system‘ in India, ensuring that recruitment to various civil services is based on merit and fairness.
UPSC’s responsibilities are specifically focused on the selection process. It does not involve itself in matters such as service conditions, cadre management, training, and other administrative aspects. These areas fall under the jurisdiction of the Department of Personnel and Training (DoPT).
The recommendations made by UPSC are advisory in nature and are not binding on the government. However, the government is answerable to Parliament if it chooses to deviate from UPSC’s recommendations.
The emergence of the Central Vigilance Commission (CVC) in 1964 affected the role of UPSC in disciplinary matters. This is because both are consulted by the government while taking disciplinary action against a civil servant. However, the UPSC, being an independent constitutional body, has an edge over the CVC, which is a statutory body.
This article deals with ‘Comptroller and Auditor General (CAG) – Indian Polity.’ This is part of our series on ‘Polity’ which is important pillar of GS-2 syllabus . For more articles , you can click here.
Introduction
The Constitution of India (Article 149) provides for an independent office of CAG
CAG is the head of the Indian Audit and Accounts Department
CAG is the guardian of the public purse at both levels—Centre and State.
Appointment and Term
CAG is appointed by the President of India by a warrant under his hand and seal.
CAG holds office for a period of six years or up to the age of 65 years, whichever is earlier.
He can also be removed by the President on the same grounds and in the same manner as a judge of the Supreme Court.
To ensure the Independence of Office
CAG is provided with the security of tenure. He can be removed by the President only in the same manner as the Judge of the Supreme Court. Thus, the CAG doesn’t hold his office till the pleasure of the President, although the President appoints CAG.
CAG is not eligible for further office under the Government of India or any state after he ceases to hold his office (controversy erupted when former CAG Vinod Rai was appointed as Head of Bank Board Bureau )
Neither his salary nor his rights regarding leave of absence, pension, or age of retirement can be altered to his disadvantage after his appointment.
Administrative expenses of the office of the CAG are charged upon the Consolidated Fund of India.
System of Auditing in India
Articles 148 to 151 of the Indian Constitution institutionalized the Auditing Mechanism and office of CAG. But this system is a continuance of British rule. The same Auditing System is continuing in India.
The Comptroller and Auditor General (CAG) of India is a constitutional authority responsible for auditing. CAG operates independently of the Government and reports directly to the Parliament or State Legislatures, thereby ensuring impartiality and objectivity in its auditing processes.
The Indian Audit and Accounts Department (IA&AD) is the primary body through which CAG conducts audits.
Issue with the System
CAG (IAAD) conducts Audit on behalf of Parliament. Principally, it should be entirely out of the influence of the Executive. However, the Government of India is the Cadre controlling Authority of the Indian Audit and Accounts Department (IAAD), which is headed by CAG and with whose help CAG conducts audits. This is a continuance of the British Era Model (1937 rules) in which the Executive indirectly controlled CAG.
Duties and Powers of the CAG
Article 149
Constitution (Article 149)
authorises the Parliament to prescribe the duties and powers of the
CAG. Accordingly, Parliament enacted CAG’s
(Duties, Powers and Conditions of Service) Act, 1971. The Act was
amended in 1976 to separate accounts from audits in the Central government.
The duties and functions of the CAG
CAG audits the accounts related to all expenditures from
Consolidated Fund of the Union of India and each state
Contingency Fund of the Union of India and each state
Public Account of the Union of India and each state
CAG audits the balance sheets of the departments of the Central Government and state governments.
CAG can audit the accounts of any other authority when requested by the President or Governor. For example, audit of local bodies
Earlier,
CAG used to compile and maintain accounts of the Central Government as
well. In 1976, he was
relieved of his responsibility to compile and maintain accounts of the Central
Government due to the separation of accounts from Audit.
Article 150
CAG advises the President with regard to the prescription of the form in which the accounts of the Centre and states shall be kept.
Article 151
CAG submits the audit reports related to the accounts of the Centre to the President, who shall, in turn, place them before both Houses of Parliament
He acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.
Role of CAG
The role of the CAG is to
uphold the Constitution of India and the laws of Parliament in the field
of financial administration. The audit reports of the CAG secure
accountability in the sphere of financial administration of the
executive.
CAG is an agent of the
Parliament and conducts an Audit of expenditure on behalf of the
Parliament. In
addition to legal and regulatory Audit, CAG can also conduct the propriety
audit; that is,
he can look into the ‘wisdom, faithfulness and economy’ of expenditure and
comment on the wastefulness and extravagance of such expenditure. However,
legal and regulatory Audits are obligatory, but propriety audit is
discretionary (but CAG can’t audit Secret service expenditure).
The Constitution of India
visualises the CAG as the Comptroller as well as the Auditor General.
However, in practice, the CAG is fulfilling the role of an
Auditor-General only and not that of a Comptroller, as the CAG has no control
over the issue of money from the Consolidated Fund and is concerned only
at the audit stage when the expenditure has already taken place (unlike
Britain)
Problems with CAG
Paralysing Unwillingness to Act: The Comptroller and Auditor General’s (CAG) presence in India is often cited as a primary cause of bureaucratic inertia. Officials fear making decisions due to the scrutiny they may face from the CAG, leading to indecision and stagnation in governance processes.
Post-Mortem Examination: CAG audits often serve as post-mortem examinations of government expenditures. CAG is concerned only at the audit stage when the expenditure has already taken place
Appointment of Generalists: The practice of appointing generalist bureaucrats, such as those from the Indian Administrative Service (IAS), as the CAG is criticized. Many argue that specialists from services like the Indian Audit and Account Service, Indian Economic Service, Indian Statistical Service, or Indian Revenue Service would be better suited for the role due to their expertise in auditing and financial matters.
CAG & Defence: CAG reports have sometimes been accused of jeopardizing national security, as seen in instances where revelations about defence preparedness were made public. For example, a CAG report in 2017 warned that the Indian Army’s ammunition stock would be depleted within 10 days of the war, potentially compromising the country’s defence capabilities.
Issue of Notional Loss: The CAG’s estimation of notional losses, such as in the 2G spectrum case, has been a subject of controversy. These estimates, which are based on assumptions and methodologies that may not always align with legal standards, can lead to inflated figures and subsequent legal challenges.
CAG Activism: Some critics perceive the CAG’s involvement in high-profile cases like the 2G spectrum and Coalgate as examples of activism beyond its mandate. While the CAG’s role is primarily to audit government expenditures and ensure accountability, its involvement in such cases has been seen as overstepping boundaries and encroaching into policy and regulatory domains.
Much of the government expenditure is kept out of CAG Audit by Governments.
CAG’s Authority doesn’t extend to Government Corporations created with special laws. Parliament or State Legislature can make provisions regarding Audit within the Act itself. Additionally, new organizational structures in the form of public-private partnerships are also out of the scope of CAG’s Audit. E.g., GMR Airport
NGOs and Private Agencies take up many Government works at delivery points. These private agencies and NGOs are also out of the ambit of CAG.
Issue of Redactment: CAG, in the Audit Report of Acquisition of Rafale, redacted, i.e. removed sensitive information from the document citing security concerns expressed by the Government.
Politicization of CAG’s office: The politicization of the Comptroller and Auditor General (CAG) post in India has become a subject of concern in recent years. The Constitution of India explicitly states that the CAG should not be given a post-retirement posting, emphasizing the need for the CAG to maintain impartiality and independence from political influence. However, there have been instances where former CAGs have been appointed to positions that raise questions about their independence and neutrality. For example
Former CAG Vinod Rai (who unearthed the Coal Scam) was appointed as Chairman of the Bank Board Bureau.
TN Chaturvedi (CAG from 1984 to 89) joined the BJP after retirement and contested the election using BJP’s ticket. He was later made Governor of Kerala too.
Appleby’s Criticism
Paul H. Appleby was highly critical of the role of the Comptroller and Auditor General (CAG) in India, going as far as recommending its abolition.
He argued that the institution of the CAG was inherited from colonial rule, implying it may not be suitable for modern governance needs.
Appleby criticized the CAG for fostering a paralysing unwillingness to act within government circles, suggesting that its oversight role may stifle decision-making and action.
He questioned the competence of auditors to understand the nuances of good administration, asserting that their expertise lies in auditing rather than administration.
Side Topic: Presumptive Loss / 2G Spectrum Case
The theory of presumptive and notional loss involves calculations by the CAG to estimate the potential revenue lost by the Government due to irregularities or lack of adherence to proper procedures in resource allocations, such as natural resources like spectrum and coal.
Using the Theory of Presumptive and Notional Loss
In the case of the 2G Spectrum
Allocation, the CAG calculated a notional loss of Rs 1.76 lakh crore due
to the use of a “first come, first served” policy instead of an
auction, which could have potentially generated higher revenue.
In the Coal Scam, the CAG
initially estimated a notional loss of ₹10 lakh crore, later revised to Rs
1.86 lakh crore, highlighting discrepancies in the allocation process.
However, in December 2017, a Special CBI Court acquitted A Raja and Kanimozhi and rejected the presumptive loss theory proposed by the CAG.
It’s also important to recognize that the Government’s objectives extend beyond profit maximization; considerations such as socio-economic factors and job creation also play a significant role in decision-making.
Hence,
CAG has failed to accommodate the changing
dynamics of doing business in the LPG Era
This article deals with ‘Inter-State River Water Disputes – Indian Polity.’ This is part of our series on ‘Polity’ which is important pillar of GS-2 syllabus. For more articles , you can click here
Constitutional Provisions
Status of Water in the Constitution
State List
Entry 17: Water, that is to
say, water supplies,
irrigation & canals, etc., subject to provisions of Entry 56
of List 1
Union List
Entry 56:Regulation and Development of
Inter-State Rivers & River Valleys
When a water dispute arises between two states, Article 262 is invoked & in pursuance of Article 262, two Acts were passed by the Parliament.
River Boards Act,1956
The Act
is designed to regulate and facilitate the development of inter-state rivers to
ensure effective water resource management. The key features of the River
Boards Act 1956 are
Establishment of River Boards: These boards are instrumental in coordinating efforts to regulate and develop rivers that flow through multiple states.
Board Establishment on State Government Request: River Boards are not unilaterally imposed but are established based on requests from State Governments.
Inter-State River Water Disputes Act,1956
The
Inter-State River Water Disputes Act of 1956 provides a mechanism for resolving
disputes related to the sharing of river waters between different states in
India.
Initiation of Tribunal: If a Riparian State believes that its interests are adversely affected by the actions or plans of another state, it can request the government of India to establish a Tribunal to address the dispute.
Timeline for Tribunal Setup: The government of India is mandated to set up the Tribunal within one year of receiving such a request.
Composition of Tribunal: The Tribunal comprises three members, each of whom must be a Judge of either the Supreme Court or a High Court.
Final and Binding Decision: The decision rendered by the Tribunal holds ultimate authority and is deemed final and binding. The Supreme Court or any other court don’t have any jurisdiction in this regard.
A total
(9) such tribunals have been established
till date. Important ones are
Ravi & Beas: Involving Punjab and Haryana, formed in 1986 and still pending the award.
Kaveri: Involving Karnataka, Tamil Nadu, Kerala & Pondicherry, with time period 1990-2007
Mahanadi: The most recent tribunal, formed in 2018, involving the states of Odisha and Chhattisgarh.
Causes of these Disputes
Agriculture
and Water Scarcity: Riparian
states depend on river water for agriculture. Such issues intensify during
low rainfall seasons. Examples include disputes over the Kaveri, Krishna,
Ravi, and Beas rivers, primarily revolving around sharing water for
agricultural purposes.
Multipurpose
Projects and Dams: Conflicts often arise between upstream and downstream
states regarding multipurpose projects and dams. The Mahanadi issue serves
as an illustration of such disputes.
River
Joining: It
is usually done to divert river water from sufficient to deficient river
basins, but many issues arise, such as environmental assessment,
submergence of surrounding lands, etc. Mahadayi/ Mandovi (Goa vs
Karnataka) is an example of such a dispute.
Unborn States
Share: Disputes
arise when a tribunal’s judgment on a contested river involves states that
later undergo division or creation. The Krishna water tribunal is an
example where the parties were Andhra Pradesh, Maharashtra, and
Karnataka. But as the new state Telangana has come into being, it
approached the Supreme Court for its right to get a proper share.
Why Tribunals for Inter-State Water Disputes?
Article 262 of the Constitution lays down that the Parliament may by law provide for the adjudication of any dispute with respect to any Inter-State River (ISR). Accordingly, the Parliament enacted the Inter-State River Water Dispute Act 1956, which provides for the reference of such a dispute to a Water Tribunal. The said Act bars the Supreme Court or any other Court from exercising jurisdiction in respect of any water dispute.
The main reasons for keeping River Disputes out of the
purview of the court’s jurisdiction were that (the whole of the
Constituent Assembly agreed that there is a need for Tribunals to settle
Inter-State River Disputes (but there wasn’t unanimity on Permanent Tribunal or
Temporary Tribunals)) :
Speedy Disposal: The Act
ensures the swift resolution of Inter-State River water disputes by making
the tribunal’s decision final and binding, thereby avoiding prolonged
legal processes.
Technical and Scientific Expertise: Since the
resolution of Inter-State River disputes hinges upon heaps of technical
and scientific data, the resolution of such disputes by specialized
tribunals would allow for a better appreciation of such data.
Flexible and Informal Proceedings: Unlike
courts bound by strict legal procedures, tribunal proceedings are
relatively informal. This flexibility allows for deliberative
decision-making and discretionary measures, fostering the potential for
mutually negotiated settlements.
In this
context, it can be argued that the rationale behind excluding the jurisdiction
of courts was fairly well-intentioned.
Main Problems with Present System and Remedies
The
problem lies elsewhere and has been well documented by many commissions,
including the Sarkaria Commission. These include:
Long delays & uncertain time frame: The existing system is plagued by prolonged delays, leading to uncertainty. For example, in the Ravi Beas case, referred to the Tribunal in 1986, the matter is still pending.
Issue of finality: The Tribunal acts as the arbiter for water disputes between states. Although courts are barred from interfering, matters are still taken to courts through Special Leave Petitions. E.g., the Cauvery Case, where the matter was brought to courts through Special Leave Petitions.
Enforcement Issues: Inadequate provisions for enforcing Tribunal awards lead to challenges in implementation. There is political resistance and reluctance from states to comply with Tribunal awards due to political considerations.
Politicization of Water Issues: Even after the award is announced, in times of coalition politics, sometimes the centre doesn’t publish it in the gazette.
Suggestions to improve this
Institutional Changes: Utilize the
Inter-State Council as a platform for resolving water conflicts
effectively.
Permanent Tribunal: Advocate the establishment of
a Permanent Tribunal, a concept supported by Ambedkar during
Constitutional Assembly Debates.
Mediation Approach: Reform the current adversarial
judicial process to mediation for a mutually acceptable resolution.
Mediation has solved a large number of River Disputes, even at the
international level. For example,
World Bank played the role of
mediator between India and Pakistan in the Indus Treaty.
The Vatican became a mediator
in solving the Zambezi River dispute involving eleven countries.
Declaring Rivers National Property: The
establishment of separate corporations on the pattern of the Damodar
Valley Corporation may be immensely useful in this direction.
Bringing Water to Concurrent List: As
suggested bythe Ashok Chawla Committee, water resources
should be included in the concurrent list for better coordination and
management.
Proposed Changes in Inter State River Water Disputes Act
The following changes have been proposed in the Inter-State River Water Disputes Act of 1956 to resolve the deficiencies the present mechanism faces.
Single Permanent Tribunal
Establish a single, Permanent
Tribunal for adjudicating all inter-state river water disputes.
Awards will be notified
automatically.
Composition
of the Tribunal: Chairperson, Vice-Chairperson, and not more than six other Members
Members from both judicial (3)
and technical backgrounds (3).
Even in Constituent Assembly
debates, the setting of the Permanent Tribunal to resolve Inter-State
River Water Disputes was greatly favoured, and BR Ambedkar
was in favour of the Permanent Commission. The act favouring the Temporary Commission
was favoured on the basis of experience that such issues would not come
up. This is not the case now, and such disputes are rising very
frequently.
Dispute Resolution Committee (DRC)
DRC will handle
disputes prior to the tribunal, with a resolution timeline of one year.
Most disputes will get
resolved at the DRC’s level itself. But if the state is not satisfied, it
can approach the tribunal.
Data Agency
Establish an agency to collect
and maintain updated water data in each river basin in the country.
The collected data will aid in
the timely resolution of water disputes
Timeline
The Tribunal must give a
decision within two years, with a possible extension of one more year.
The decision of the Tribunal
shall be final and binding.
Case Study: Cauvery Issue
1924
The agreement was signed
between Madras Presidency and Mysore to build a dam in Mysore. The
agreement was valid for 50 years, and it led to the
construction of the Krishnaraja Sagar Dam.
Note: The agreement was
heavily in favour of the Madras Presidency. Mysore was allowed to
construct just one dam.
1960s
Karnataka wanted to
make more dams on Cauvery, but Tamil Nadu didn’t allow it on the basis of the
1924 Agreement.
1974
The Water Sharing
Agreement lapsed after 50 years. Karnataka decided to go ahead with making
dams. 4 dams were made by Karnataka in quick succession.
1986
Tamil Nadu
approached the Centre for setting up a Tribunal
2 June
1990
The Cauvery Water
Dispute Tribunal (CWDT), headed by Justice Chittosh Mookerjee, was set after
the Supreme Court’s direction.
2007
CWDT issued its
final order, allocating water shares (in tmcft):
– Tamil Nadu: 419
– Karnataka: 270 (Karnataka claimed 312,
but CWDT considered earlier agreements)
– Kerala: 30
– Puducherry: 7
Karnataka and Tamil
Nadu contested the order in the Supreme Court via Special Leave Petitions
(SLPs).
It also recommended
the establishment of a Cauvery Management Board. But
it was just a recommendation.
2013
2013
was a drought year. Tamil Nadu moves Supreme Court seeking directions to
Water Ministry for Constitution of Cauvery
Management Board as Karnataka wasn’t following orders of CWDT.
2016
The year 2016 was a
drought year, with Karnataka not releasing adequate water. Tamil Nadu went to
the Supreme Court again. SC ordered the formation of the Cauvery Water
Management Board.
Point to Note – The
main issue in this case (& other River Disputes, too) is a shortage of
water. Whenever there are drought-like conditions, states start to fight over
the division of Rivers.
This article deals with ‘Financial Relations between Centre and States – Indian Polity.’ This is part of our series on ‘Polity’ which is important pillar of GS-2 syllabus. For more articles , you can click here
Introduction
Articles 268 to 293 in Part XII of the Indian constitution deal with financial relations.
Allocation of Taxing Powers
The
division of taxing powers is as follows
Parliament
Parliament can levy taxes on subjects in the Union List (13 items).
State Legislature
State Legislatures can levy taxes on subjects enumerated in the State List (18 items)
Both
– Both Parliament and State Legislatures can levy taxes on subjects enumerated in the Concurrent List. – Initially, the Concurrent List had no tax entries, but the 101st Amendment Act of 2016 introduced a special provision for GST. Parliament and State Legislatures now have concurrent power to make laws related to GST.
Residuary
The residual power of taxation is vested in the Parliament.
There is a difference between the power to levy taxes, collect taxes & appropriate the proceeds of taxes. For example, the income tax is levied and collected by the Centre, but its proceeds are distributed between the Centre and the states.
The Indian Constitution has placed various restrictions on the state’s taxing powers. These are as follows:-
Tax on Professions, Trades, Callings, and Employments: State legislatures can levy taxes on professions, trades, callings, and employments, but there’s a cap of ₹2,500 per year on the total amount imposed on any individual.
Prohibition on Taxing Goods and Services: State legislatures cannot impose tax on goods or services in two instances: (1) when the transaction happens outside the state and (2) when it occurs in the course of import or export.
Tax on Consumption or Sale of Electricity: States have the authority to levy taxes on the consumption or sale of electricity.
No tax can be imposed on electricity consumed or sold to the Centre
No tax can be imposed on electricity utilised in the construction, maintenance, or operation of railways
Tax on Water or Electricity by Interstate Authorities: State legislatures can levy taxes on water or electricity generated, consumed, sold or distributed by authorities established by Parliament for regulating or developing interstate rivers or river valleys.
Distribution of Tax Revenues
Major changes in the scheme to distribute tax revenue between the
Centre and the States were introduced by the 80th and 101st Constitutional
Amendments.
80th Constitutional Amendment, 2000 (Alternative Scheme of Devolution)
The 80th Amendment was passed to implement the 10th Finance Commission’s suggestion of allocating 29% of specific central taxes and duties to the states.
It was retroactively applied from April 1, 1996, and brought various central taxes, including corporation taxes and customs duties, in line with income tax regarding their constitutional sharing with the states.
101st Constitutional Amendment
The 101st Amendment enables the implementation of a new tax system, Goods and Services Tax (GST), in the country. It grants both the Parliament and State Legislatures the authority to enact laws for imposing GST on transactions involving the supply of goods or services.
The proceeds of GST are divided between the Center and the state on the recommendation of the GST Council.
The present situation regarding tax distribution between the Centre and states is as follows
Article 268 (Taxes levied by the Centre but collected and appropriated by States): It includes stamp duties on cheques, bills of exchange, promissory notes, insurance policies, transfer of shares, and similar transactions.
Article 269 (Taxes levied and collected by Centre but assigned to States): There are two categories of taxes under this category
Taxes on interstate sale or purchase of goods (excluding newspapers)
Taxes on the consignment of goods in interstate trade.
Article 269-A (Levying and Collecting of GST in the Course of Inter-State Trade): The responsibility for levying and collecting this tax rests with the Centre. However, the distribution of this tax between the Centre and the States is determined by Parliament based on the recommendations of the GST Council.
Article 270 (Taxes Levied and Collected by the Centre but Distributed between the Centre and the States): This category includes all taxes and duties listed in the Union List, excluding those mentioned in Articles 268, 269, and 269-A, surcharge on taxes in Article 271, and specific-purpose cess. Based on the Finance Commission’s recommendation, the President determines the distribution of the net proceeds of these taxes and duties.
Article 271 (Surcharges for the purpose of the Centre): The Parliament has the authority to impose surcharges on certain taxes and duties mentioned in Articles 269 and 270. The funds generated from these surcharges are allocated exclusively to the Centre. However, the Goods and Services Tax (GST) is exempted from such surcharges.
Taxes Levied, Collected, & Retained by the States: These include taxes enumerated in the state list (18 in number).
Distribution of Non-tax Revenues
a. The Centre
The
primary contributors to the non-tax revenues of the Centre are the following.
b. The States
The
primary contributors to the non-tax revenues of the States are the following.
Grants-in-Aid to the States
The
Centre can give money to States via Grants in Aid. These are of two types
1 . Statutory Grants
General Provision: Under Article 275, Parliament can give money to states which need financial assistance on the recommendation of the Finance Commission. They are charged on the Consolidated Fund of India.
Specific Provision: The Constitution has provisions for specific grants aimed at enhancing the well-being of scheduled tribes within a state or improving the administrative standards of scheduled areas in a state, including the State of Assam.
2. Discretionary Grants
Under Article 282, the states & centre can make grants even if it is not in their Legislative competence. For example, the Central Funds given on the advice of the Planning Commission.
They are discretionary because the centre is under no obligation.
These grants serve a dual purpose: firstly, to assist the state in meeting its financial obligations for achieving plan targets, and secondly, to provide the Centre with a means to influence and coordinate state activities in line with the national plan.
3. Other Grants
These grants, stipulated by the Constitution, were temporary in nature.
For the initial 10 years following the commencement of the Indian Constitution, a provision of grant was made in lieu of export duties on Jute products to states of Assam, Bihar & Orissa & were charged on Consolidated Fund.
GST Council
GST Council is a Constitutional Body made under the provisions of Article 279-A.
Membership of GST Council
Its membership is as follows
Headed by Union Finance Minister
Union Minister of State of Finance / Revenue
1 Minister from each State and Union Territory with the Legislative Assembly
Weighted Voting Powers: 1/3rd of Voting Power is with the Union and 2/3rd with States.
In order to implement any decision, at least a three-fourths majority is necessary, which translates into votes of the Union and a minimum concurrence of 20 states.
Functions of GST Council
Determine the inclusion of Union and State Taxes, Cess, and Surcharge under the GST regime.
Establish standard rates for CGST, SGST, and UTGST within the GST framework.
Set the effective date for including Crude Oil, Petrol, Diesel, Aviation Turbine Fuel, and LPG under the GST regime, until which the Union and individual States will unilaterally determine Excise and State VAT on these hydrocarbons.
Define the categories of ‘Exempted Goods and Services’ under GST.
Determine ‘Special Rates’ applicable during calamities, exemplified by the GST Council allowing Kerala in January 2019 to impose a 1% Calamity Cess on Intra-State trade for the subsequent two years for the rehabilitation of flood victims from 2018.
Address dispute settlements within this system involving conflicts between states or between a state and the Union.
Finance Commission
Article 280 establishes the Finance Commission as a quasi-judicial entity.
The President forms the Finance Commission every five years, or sooner if necessary.
The Finance Commission is required to make recommendations to
the President of India on the following matters:
Distribution of the divisible pool of taxes between the Centre and states (Vertical Distribution) and among states (Horizontal Distribution).
It provides recommendations on the principles guiding grants-in-aid from the Centre to the states.
The Finance Commission suggests measures to enhance a state’s consolidated fund for supporting Panchayats and municipalities.
It can address any other finance-related matter referred to it by the President.
The Constitution permits the Finance Commission to make broader
recommendations in the interest of sound finance.
Protection of State’s Interests
To
protect the interest of States, certain bills can be introduced in Parliament only on the recommendation of the
President
Bill which imposes or varies any Tax in which states are interested
Bill, which varies the meaning of the expression Agriculture income
Bill, which affects the principle on which money is distributed to state
Bill which imposes any surcharge on any specified tax or duty for the purpose of the centre.
Borrowing and Loans by Centre & States
Borrowing
Centre can borrow either within India or outside upon security of the Consolidated Fund of India within the limit fixed by Parliament (no limit fixed yet)
State Government can borrow within India (& NOT ABROAD) upon security of the Consolidated Fund of State
Loans
The central government can make loans to any state or give guarantees regarding loans.
The state can’t raise a loan without the consent of the centre if any part of a loan made by the centre to the State or in which the centre has guaranteed is still outstanding.
Effects of Emergencies on Financial Relations
National Emergency
During a National Emergency, the President can modify the Constitutional distribution of revenues between the Centre & and the State.
Modification continues until the end of the financial year when emergencies cease to operate.
Financial Emergency
During
Financial Emergency, the centre can give direction to states
Observe specified canons of financial propriety
Reduce the salaries & allowances of all classes of persons in states
Reserve money bills & financial bills for consideration by the President.
Inter-Government Tax Immunities
There
are certain rules of IMMUNITY FROM MUTUAL
TAXATION
Property of the centre is exempted from all taxes imposed by the state or any authority within the state like Panchayat, Municipal Corporation, etc.
Property & income of the state is exempted from central taxation.
Property & income of local bodies like panchayat are not exempted from central taxation.
Analysis: Centre-State Financial Issues
Vertical Imbalance in Resource Sharing: The States feel that the resource transfers to them haven’t been commensurate with their growing responsibilities.
Growing Central Expenditure on Functions in the State List: The 12th Finance Commission estimated that a fifth of the expenditure incurred by the Centre was on subjects that were in the domain of the States.
Compliance and Enforcement Cost of Central Legislation: There are several Central legislations, the compliance and enforcement costs of which are entirely borne by the States. At present, States are not compensated for the cost of compliance and the revenue loss on account of compliance.
Impact of Pay Revision by the Central Government on State Finances: The periodic pay revision by the Central Government gives rise to demand on the part of State government employees for a similar pay hike. States have demanded that the Central government should bear at least 50 % of the increase.
Sharing of Offshore Royalty and Sale Proceeds of Spectrum: Under the present Constitutional arrangements, offshore royalty accrues entirely to the Centre.
Profession Tax: it can not exceed Rs. 2,500 per annum. As income and salary levels are increasing, a limit on the professional tax constraints revenue mobilization
FRBM Legislation: The deficit reduction targets are uniform across all States. This ‘one-size-fits-all’ approach has constrained fiscally strong States to raise more resources.
Last Updated: September 2024 (Semi-Conductor Industry (in India and World))
Semi-Conductor Industry (in India and World)
This article deals with the ‘Semi-Conductor Industry (in India and World).’ This is part of our series on ‘Geography’, which is an important pillar of the GS-1 syllabus. For more articles, you canclick here.
Introduction
A semi-conductor is a substance characterized by its capacity to carry a small electrical current. The essential criterion for a semi-conductor is that it should neither be an excellent conductor of electricity nor a poor conductor; instead, it falls in between these extremes.
Semiconductors function by virtue of an electron imbalance. This imbalance of electrons generates positive charges (WHERE THERE ARE EXCESS PROTONS) and negative charges (WHERE THERE ARE EXCESS ELECTRONS) at two ends of surfaces of the semi-conductor material.
Due to this helpful
characteristic, it is used in the following industries
Location Factors for Semi-Conductor Industry
Research and Development Centers
Proximity to leading research and development institutions and universities focusing on technology and engineering is crucial.
Skilled Workforce
The availability of a highly skilled workforce specializing in electrical engineering, materials science, and related fields is essential.
Infrastructure and Connectivity
Robust infrastructure, including reliable power supply, advanced production facilities, etc., is a vital factor in determining the location of the Semiconductor industry.
Access to Capital
The availability of large capital is essential as a semiconductor requires significant investments in research, development, and production facilities.
Government Support and Incentives
Supportive government policies, tax incentives, and grants can attract semiconductor companies to a specific location.
Intellectual Property Protection
Strong legal frameworks and intellectual property protection contribute to a conducive business environment for semiconductor companies.
Cluster Effect
An established semiconductor industry cluster can attract more companies to a specific location. Clusters promote collaboration, knowledge exchange, and the development of specialized supply chains.
Global Semi-Conductor Industry
Taiwan
Taiwan, specifically Hsinchu Science Park, is the largest semi-conductor producer, producing almost 60% of the global semi-conductors. Taiwan Semi-conductor Manufacturing Corporation (TSMC) is the largest producer of semi-conductors in the world.
The island nation benefits from a robust industrial ecosystem, government support, and proximity to major Asian markets.
Additionally, the Taiwanese government has actively supported the semiconductor industry through policies and investments.
The USA
The USA is the second most significant producer.
The US is home to Silicon Valley in California, a global technology and semi-conductor innovation hub.
It benefits from a well-developed infrastructure, large market, skilled workforce, and proximity to research institutions.
South Korea
With companies like Samsung, South Korea is a significant player in semiconductor production.
China
China has been aggressively investing in its semiconductor industry.
Government policies, access to a large consumer market, and technological advancements contribute to China’s presence in the industry.
Japan
With companies like Toshiba and Renesas, Japan has a long history in semiconductor manufacturing.
A robust industrial base and a focus on high-tech manufacturing contribute to Japan’s position in the semiconductor industry.
Indian Semi-Conductor Industry
Historically, India has heavily depended on semi-conductor imports from Taiwan and Hong Kong to meet its growing demand for electronic goods.
The Indian Government has recognized the strategic importance of the semi-conductor industry and has taken steps to encourage its growth.
Why Should India Invest in the Semi-Conductor Industry?
Save Forex and Earn Revenue: Investing in semi-conductor manufacturing in India will diminish reliance on imported semi-conductors for domestic companies and generate revenue through exports to global markets. This strategic move could position India as a key global hub for electronic goods, fostering job creation and attracting investments from top multinational firms.
Meeting Escalating Demand: The surge in digitization, coupled with advancements in intelligent computing and the rise of artificial intelligence (AI), has led to an unprecedented demand for semi-conductors and chipsets.
Self-Sufficiency (Atma Nirbhar): Establishing a semi-conductor industry in India would contribute to the nation’s self-sufficiency, addressing the challenges of supply chain disruptions witnessed during the COVID-19 pandemic.
Multiplier Effect: Developing indigenous semi-conductor manufacturing capabilities will create a positive ripple effect on related industries.
Initiatives to promote Semi-Conductor Manufacturing in India
Production Linked Incentive (PLI) Scheme for IT Hardware and Semi-Conductors: The Government is giving incentives on goods manufactured in India.
Semicon India Program: The Government is providing financial support to companies who are investing in the development of the semi-conductor ecosystem, such as fabrication (fab), research, design and testing facilities. For example,
Semiconductor Fab: Dholera
Assembly Testing, Marking and Packaging Facility: Morigaon (Assam), Sanad (Gujarat)
Design Linked-Incentive Scheme: The Government provides financial support of 50% of eligible expenditure on the design, subject to a ceiling of ₹15 crores per applicant.
Semiconductor Manufacturing Incentive Policy: Indian government to provide subsidies worth $15 billion to promote manufacturing of Semiconductors in India.
India Semiconductor Mission: It is a business division within Digital India Corporation to develop vibrant display and semiconductor ecosystem.
National Policy on Electronics, 2019: The policy aims to make India a global hub for designing and manufacturing Electronics Systems, including Chipsets.
Foreign Direct Investment: 100% FDI in the semi-conductor industry is allowed via Automatic Route.
Collaborations and Partnerships: The government is signing MoUs with various countries to invest in the Indian semi-conductor industry. For example, Israel has signed a MoU to invest 22,000 cr.
Due to the above initiatives, various projects are coming up in India. One worth mentioning is Tata’s commercial fabrication plant, which is in partnership with the Taiwanese firm PSMC and costs above Rs. 91,000 crore.
Challenges faced in manufacturing Semi Conductors
Complex Value Chain: The semi-conductor value chain has three major components: Design, Fabrication, and Assembly and Testing. These processes are very expensive as they are highly dependent on R&D and Intellectual Property protection.
Massive Investment: Semi-conductor manufacturing is a complex, capital and technology intensive process. Semi-conductor Fabrication facility requires many expensive devices. Estimates put the cost of building a new fabrication facility (fab) over one billion dollars.
Lack of Skilled Workforce: Insufficient skilled labour poses a challenge for semi-conductor companies; India falls short of meeting this crucial requirement.
Requirement of very specific Raw Materials: Apart from Silicon, numerous types of chemicals & gases are involved in semi-conductor fabrication that are not till now available in India.
Lack of uninterrupted Power and Water Supply: Manufacturing a single semi-conductor chip requires thousands of gallons of pure water and an uninterrupted power supply.
Global Competition: It is also difficult to compete with Taiwan and China, which, due to better cost-efficiency and first mover advantage, have become the favoured destinations for global chip manufacturers.
This article deals with the ‘Automobile Industry in India and World .’ This is part of our series on ‘Geography’, which is an important pillar of the GS-1 syllabus. For more articles, you canclick here.
Location Factors for Automobile Industry
Proximity to Markets
Detroit in the USA has a huge
automobile industry due to its proximity to the U.S. consumer market.
Supply Chain
Building a vehicle requires
numerous components ( like steel, rubber, plastic, paint, cables etc.).
Hence, an efficient supply chain is important in deciding where to locate
the automobile industry. E.g., Germany’s automotive industry benefits from
a well-developed infrastructure and efficient supply chain networks for
building automobiles.
Skilled Labour and Talent Pool
Stuttgart (Germany) is home to
major automotive companies benefitting from a talented pool of engineers
and workers.
Similarly, the Gurgaon-Manesar
Belt (Haryana, India) has attracted automotive manufacturing due to the
availability of skilled labour.
Government Policies and Incentives
The Mexican government’s
pro-business policies and trade agreements have attracted automakers to
set up plants in Mexico.
Research and Development Centers
Silicon Valley in the USA and Bengaluru in India have attracted electric and autonomous vehicles due to R&D centres in these regions.
Major Automobile Producers
USA
General Motors,
Ford and Tesla
Germany
Volkswagen, Audi,
BMW and Mercedes
Sweden
Volvo
India
Tata and Mahindra
China
SAIC and Dongfeng
Korea
Hyundai and Kia
Japan
Honda, Toyota,
Suzuki, Nissan, Mazda and Mitsubishi
Reasons: Why is Detroit a major Automobile Centre?
Transport:
Located
on the banks of the Detroit River and linked to Lake Huron, the
geographical positioning of the city of Detroit provides a vital
connection to the expansive Great Lakes waterway system, facilitating the
cost-effective movement of goods and materials.
Labour: In the 19th century, Detroit
saw the emergence of floor mills utilizing running water and the adoption
of internal combustion engines for boats. It led to the establishment of
numerous repair shops, fostering the development of generations of skilled
labour.
Entrepreneurs:
Two
iconic figures stand out in the narrative of Detroit’s entrepreneurial
spirit: William Durant (founder of GM) and Henry Ford (founder of Ford
Motors).
Raw
Material: Detroit’s
proximity to Pittsburgh, a major steel-producing centre, ensured a steady
steel supply. Additionally, the region has numerous intermediate
industries providing components, such as seat cushions, spray paint,
tires, and electronic circuits.
Indian Automobile Industry
Renowned international and domestic companies operate in India, such as Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Hyundai, Honda, and Volkswagen.
The automobile
industry in India is spread across various regions, with key manufacturing hubs
that play a crucial role in the country’s automotive landscape.
Chennai
Major automobile
manufacturing hub of India hosting manufacturing plants of companies like
Ford, Hyundai, Renault-Nissan, and Royal Enfield.
Gurugram-Manesar
Hosts manufacturing
facilities of Maruti Suzuki, Hero MotoCorp, and Honda Motorcycles
Sanand (Guj)
Hosts manufacturing plants of Tata Motors
and Ford.
Jamshedpur (Jh)
Home to Tata
Motors’ flagship manufacturing plant.
Bengaluru and
Hyderabad
Becoming hub of
Electronic Vehicle manufacturing due to presence of Startup ecosystem and IT
research and development infrastructure.
This article deals with ‘India-UK Relations.’ This is part of our series on ‘International Relations’, which is an important pillar of the GS-2 syllabus. For more articles, you can click here.
Background
India and the UK have a shared history of almost two centuries of the colonial period.
Post-independence, India and the UK had cordial relations despite having bitter colonial ties.
Relations were weak during the Cold War. UK’s close ties with the capitalist USA and India’s over-reliance on the USSR brought hiccups in relations. However, the rise of globalization in India and the expansion of economic trade brought these nations closer.
Importance of India-UK Relations
Historical Ties: The UK and India share a long and complex history, with British colonial rule in India lasting for almost two centuries. The historical connection has created lasting cultural, linguistic, and institutional links between the two countries.
Post-Brexit Bilateral Partnership: A strengthened bilateral partnership with India becomes crucial with the UK navigating the post-Brexit landscape.
Indian Diaspora Contribution: 1.5 million people of Indian origin live in the UK. The Indian diaspora is gaining on both sides with employment opportunities and contributions to economies.
Shared Interests on Global Issues: The UK and India find common ground on pressing international issues such as climate change and terrorism.
Trade and Investment: Both countries have a vested interest in promoting trade and investment. Collaboration in sectors such as technology, finance, healthcare, and renewable energy can boost economic development in both nations.
Various aspects of India-UK relations
Trade
India-UK bilateral trade stood at £36.3 billion during FY 2022-23. The trade balance is in favour of India.
Investment
The UK is the 6th largest investor in India, while India is the 2nd largest investor in the UK. India has also invested heavily in the UK. This underscores a robust economic partnership between both economies.
Cultural Relations
India and the UK signed a MoU on cultural cooperation in 2010, reflecting the commitment to foster cultural exchange and collaboration between the two nations.
Defence
India and the UK conduct various defence exercises like Konkan Shakti, Passage Exercise, Ajeya Warrior, Himalaya Warrior, etc.
Strategic convergence: Assertive China in the Indo-Pacific is a concern for the interest of both countries.
Health
India and the UK successfully partnered to develop one of the first vaccines in the world to combat Covid. AstraZeneca, Oxford University, and Serum Institute of India came together to solve the international challenge.
Multilateral Collaboration
Both India and the UK are members of the Commonwealth, G-20, International Solar Alliance
UK supports India’s bid to get membership in NSG, MTCR, Australia Group and Wassenaar Agreement.
People to People
Indian diaspora in the UK is the largest ethnic minority in the UK, constituting 3.1% of the UK population and contributing 6% to its GDP.
Around 30,000 Indians study in Britain.
Challenges of India-UK Relations
The closeness of the UK with Pakistan and China: The UK is overly close to Pakistan and has sided with Pakistan on many issues, including Kashmir, in the past.
Colonial Legacy: Indians have anti-colonial resentment against Britain.
Cairn Energy Issue: The Cairn Energy controversy, which is a British company, has negatively impacted the sentiment of British investors toward India.
UK’s Immigration Laws: These laws limit people’s movement.
Influence of the Labour Party on bilateral relations: The Labour Party in Britain has a hardcore left philosophy, and they have favoured protests against the removal of Article 370.
Article 12 – ‘State’ for the purpose of Constitution
This article deals with ‘Article 12 – ‘State’ for the purpose of Constitution – Indian Polity.’ This is part of our series on ‘Polity’ which is important pillar of GS-2 syllabus . For more articles , you can click here.
Article 12
Article 12 defines ‘State’ for the purpose of Part III of constitution- Actions of which can be challenged in courts as a violation of Fundamental Rights.
‘State’ includes
Government & Parliament of India
Government & Legislature of States
All Local Authorities like Panchayat and Municipalities
Other Authorities within the Territory of India or under control of the territory of India
Various Supreme Court judgments have pronounced the following to
be within the ambit of the State as well
Statutory and Non-statutory Authorities like LIC, ONGC, SAIL etc.
Private body working as an instrument of State.
The
most problematic expression in Article 12 is Other Authorities because it is not defined in
the constitution or any other statute of India. Consequently, it falls upon the
judiciary to construe this term, and it becomes evident that the broader the
interpretation of this term, the wider the scope of Fundamental Rights will be.
Judicial History
If we look at the judicial history, the Courts have widened the ambit of the STATE with subsequent Judgements.
Important Cases
The University of Madras vs Shanta Bai (1954): The Supreme Court of India pronounced the Principle of ‘Ejsudem Generis,’ i.e. only those authorities which perform governmental or sovereign functions can be included in Article 12.
In Rajasthan Electricity Board v. Mohan Lal: In the case of Rajasthan Electricity Board v. Mohan Lal, the Supreme Court ruled that the term ‘other authorities’ encompasses any entities established by either the constitution or statutes. This statutory body is not required to be involved in carrying out governmental or sovereign functions.
(Landmark Judgement) RD Shetty vs International Airport Authority (1979): The Supreme Court laid down the following tests for authority to be recognized as a STATE
The State owns the entire share capital.
Enjoys monopoly status
Department of Government is transferred to the Corporation.
Functional character is governmental in nature.
The body is under deep and pervasive state control.
Other Concern in the era of Privatisation and Liberalisation
In the era of LPG, the State is outsourcing its functions to the private authorities.
Hence, where a private entity performs any Public Utility Function, it should come within the purview of Article 12. National Commission to Review the Working of Constitution,2002 has recommended the same.
