DAILY QUESTIONS & MODEL ANSWERS
Q1. With relation to constitutional bodies, take into account the “Neutrality Doctrine.” (250 Words)
Paper & Topic: GS I – Constitution related issues
Model Answer:
Introduction:
- The Theory of Political Neutrality is the cornerstone of a constitutional democracy. Being “a third” in a dispute between two people refers to being impartial. The plea for respecting the neutral’s judgment and refraining from interfering in the parties’ conflict is stated in the claim of neutrality.
Body:
Background:
- According to the Supreme Court, officials like the Speaker of the House and the Governor must preserve constitutional morals and must not falter in the face of “prevailing political forces.”
- The court has made it plain that as “the sentinel on the qui vive of the Constitution,” it has a duty to make sure that democracy triumphs and is not threatened by anyone.
The significance of the “Neutrality Doctrine” in respect to constitutional bodies:
Keeping the constitutional faith:
- The Speaker, Governor, and other officials are held in high regard by the constitution and are therefore required to act impartially at all times.
- Promoting political equity The constitutional powers of the governor, speaker, CAG, and electoral commission must be used in conformity with the “holy” criteria of political neutrality and fairness. Yet, we see the deterioration of such customs in the examples of Uttarakhand and Arunachal Pradesh, where the Speakers in both assemblies used their power to remove MLAs in accordance with the Tenth Schedule.
- preserving federalism The Union holds an excessive amount of power in India. The importance of constitutional roles like his is clear given that the Governor acts as the crucial link in this federal system for guaranteeing effective communication between the Center and a State.
- Constitutional roles like Speaker and Governor, acting alone or together, can direct the fate of State governments to ensure continuity in governance and to keep the executive branch in check. The Governor frequently serves as the community’s conscience keeper and an impartial arbitrator in conflicts resolved amicably across multiple tiers of government. as a symbolic figurehead who ensures the survival of state administration, particularly during constitutional crises.
To make sure that elections are fair and to support democracy:
- Elections are crucial to a country’s ability to rule effectively and have the power to either considerably advance or obstruct a country’s long-term democratic evolution. As a result, the EC’s impartiality is very significant and vital.
To keep the economy healthy:
- Due to the independence, power, and obligations of constitutional offices like the CAG’s, the auditor and the team he contracts with to undertake auditing and accounting work are held to high ethical standards. In order to uncover any financial misdeeds by the government or theft of public funds, the CAG must generally be independent from the legislative and executive departments.
Conclusion:
- The principle of political neutrality, which demands that the state uphold its neutrality on divisive matters, builds upon the fundamental liberal values of tolerance and independence of thought. So, both the current administration and constitutional positions are bound by the requirements of political neutrality. Political figures must protect independent constitutional offices from political intrusion and avoid involving them in political debates or actions.
Q2. Discuss the need to sell off government-owned property. Will this lead to privatization? (250 Words)
Paper & Topic: GS III – Indian Economy
Model Answer:
Introduction:
- India’s Prime Minister last year highlighted investment opportunities of 2.5 trillion in the national asset monetisation pipeline stipulated in the Budget by selling roughly 100 assets of central public sector companies (CPSEs).
Body:
National monetization pipeline:
- Selling nearly 100 assets in the oil, gas, port, airport, railroads, and electricity sectors is intended to produce approximately Rs 90,000 crore in the current fiscal year. For instance, the Indian Railways has about 43,000 hectares of undeveloped land across the country, and many road projects are now under construction and scheduled for commercialization.
- The government has recently shown a greater interest in commercializing its physical assets, such as land, buildings, and brownfield operating assets like roads, railroad stations, pipelines, cell towers, etc., in order to raise money.
- The Ministry of Shipping is also recycling 11 assets, including 10 berths and the international cruise terminal at Goa Port. It has been suggested that BSNL and MTNL towers be made profitable in the telecom sector.
Examining earlier attempts to monetize assets:
- Lessons learned from past successes The National Highways Authority of India (NHAI) has been monetizing assets in the roadways sector since 2016 by utilizing the Toll-Operate-Transfer (TOT) method.
- Moreover, the Airports Authority of India (AAI) has already completed the privatization of six designated airports (Ahmedabad, Mangalore, Lucknow, Thiruvananthapuram, Jaipur, and Guwahati).
- The plan for renovating train stations was one of the earliest efforts that included the monetization of physical assets.
- As part of this initiative, the Indian Railways Station Development Corporation is converting Habibganj and Gandhinagar into top-tier stations that resemble airports (IRSDC).
- Lessons learned from prior failures The government has encountered many challenges in the past while attempting to sell assets.
- Challenges with title and encroachment, poor asset register maintenance, and other reasons have adversely affected the Indian Railways’ intention to monetize its land.
- Poor planning, which includes a shortage of land, a backlog of permits and approvals, regulatory limits, and a lack of coordination among stakeholders, has also slowed the flagship railway station redevelopment program’s progress.
- The current status of the real estate market and issues from the past could further obstruct progress.
- Refinancing continues to be difficult in the roads business because of the long-term nature of TOT concessions, despite the model affording investors greater cash flow predictability than under greenfield projects.
- Prior packages or bundles of the TOT model have only seen a minimal amount of involvement overall.
- Also, COVID-19’s unique situation, which has had a negative impact on toll revenues, may cause a delay in NHAI’s efforts to sell its assets.
- Clarity regarding the quantity, size, and character of the assets that will be put on the market would provide investors who intend to buy a specific package or category of assets more confidence.
The following are success elements for the National Monetization Pipeline:
- In order to expedite approval and approvals under the program for redeveloping railway stations, NITI Aayog has advised the creation of an Empowered Group of Secretaries.
- One of the main purposes of asset monetization is to finance future developments in the sector. The Infrastructure Investment Trust (InvIT) model, which provides a way for effectively recycling funds invested in operating assets, might be used to achieve the desired goal.
- The state-owned Power Grid Company of India (PGCIL) recently received approval from the Cabinet Committee on Economic Affairs (CCEA) to monetize its transmission assets under the InvIT model.
- This tactic also has the advantage of luring both domestic and foreign investors, such as pension funds, sovereign wealth funds, and private consumers.
Conclusion:
- The rigorous and complex process that goes into the monetization of public assets includes the management of stakeholders, efficient coordination, and careful due diligence of the technical, operational, and financial elements of the assets. Successful implementation of the monetization exercise will reduce the burden on ongoing projects, enable the release of asset value, and promote economic growth. In the future, asset monetization could fundamentally alter India’s infrastructure investment strategy.
