DAILY CURRENT AFFAIRS ANALYSIS
1 – Delhi Government vs LG Case: GS II – Federalism-related issues
Context:
- Except for public order, police, and land, the National Capital Territory of Delhi (NCTD) administrative functions are entirely under the state government of Delhi’s control, according to the Supreme Court of India.
Background Information:
- Since 2015, a legal dispute over control of Delhi’s “services” has been going on between the Delhi administration and the Lieutenant Governor. A five-judge Constitution Bench has now reached a decision on the question of control and whether personnel assigned to Delhi come under the administrative supervision of the Delhi government or Delhi LG, following a split decision from the Supreme Court in 2019. The constitutionality of the Government of National Capital Territory of Delhi (Amendment) Act 2021, which designated the Lieutenant Governor as the “government” in any bill passed by the Delhi Legislative Assembly, was another issue in the case.
What is the Supreme Court’s ruling?
Verdict:
Authority of LG:
- Apart from matters of public order, law enforcement, and land, the Lt. Governor must abide by Delhi’s government’s decision about services.
- Powers of the Central Government According to Article 239AA, the Centre had exclusive legislative and executive power over “services” related to public order, land, and police.
In UT, federalism:
- As far as UTs are concerned, the Centre has maintained that the Constitution is a federal document with a strong unitary bias.
- The SC disagreed, stating that Indian federalism is not unitary and that any further growth in the Union’s authority would be in violation of the Constitutional framework.
The elected government’s authority:
- The idea of the triple chain of responsibility (political, administrative, and public accountability) will become obsolete if a democratically elected government is not given the authority to supervise the officers.
- Collective responsibility principleIt includes the duty of officers, who in turn answer to ministers. The entire concept of collective responsibility is impacted if the officers stop reporting to the ministers or disobey their orders.
About Article 239 AA:
- Article 239 AA was added to the Constitution by the Constitution (69th Amendment) Act of 1991, giving Delhi special status and creating an Administrator and Legislative Assembly. With the exception of the police, public order, and land, the Assembly has the authority to enact legislation for the NCT of Delhi. With dual control, the L-G has the option to act with the support and counsel of the Council of Ministers or to bring a difference of opinion before the President. A source of discontent has been this power struggle between the elected administration and the L-G.
How are UTs carried out?
- The President of India administers the Union Territories (UTs) through a designated administrator, who acts as the President’s representative and has administrative authority within the UT. The Constitution and regulations passed by the Parliament regulate the judiciary in the UTs. The administrator’s authority varies by UT; in some, like Delhi and Puducherry, it includes the power to enact laws and regulations; in others, it is restricted to giving recommendations to the elected government.
Unique clause for Delhi UT:
- For several UTs with a legislative assembly and a Council of Ministers led by a Chief Minister, including Puducherry, Delhi, and Jammu and Kashmir (yet to be formed), special provisions have been provided. Insofar as these concerns are relevant to the UT, the legislative assembly of these UTs has the authority to enact legislation with regard to the items included in List II or List III in the Seventh Schedule of the Constitution.
- Some items on List II, such as public order, police, and land, do not fall under the purview of the legislative authority of the Delhi legislative assembly.
Source The Hindu
2 – PoSH Act: GS I – Women Empowerment
Context:
- The Protection of Women from Sexual Harassment (PoSH) Act has been implemented, and the Indian Supreme Court has expressed worry over the “sorry state of affairs” in this regard.
Important points raised by the Supreme Court in relation to the application of the PoSH Act:
Problem Highlighted:
Implementation Uncertainty:
- Uncertainty over who to contact in the event of workplace sexual harassment.
Reluctance:
- Lack of faith in the PoSH method and its results. Women who experience sexual harassment at work are hesitant to report the behaviour.
Insulting remarks:
- The success of the Act is hampered by a hostile, insensitive, and unresponsive workplace atmosphere towards female employees.
ICC formation non-compliance:
- For instance, just 16 of the country’s 30 national sports federations had established the Internal Complaints Committees (ICCs) required by the 2013 Act.
Fear of Leaving the House:
- Women will be afraid to leave their homes in order to earn a living in a dignified manner and will be exploited to the fullest if authorities, management, and employers cannot guarantee them a safe and secure workplace.
- Process of InquiryInquiry procedures have frequently been completed in a “hurry” without adhering to the standards of natural justice.
Recommendations:
- The Supreme Court has ordered the Union, States, and UTs to conduct an 8-week exercise to determine if Ministries, Departments, government agencies, etc. have established Internal Complaints Committees (ICCs), Local Committees (LCs), and Internal Committees (ICs) in accordance with the Act.
- These organisations were told to post information about their respective committees on their websites.
Previously:
- The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redress) Act of 2013 has been strictly enforced in coaching centres and educational institutions, according to a request made to all states by the National Commission for Women (NCW).
Source The Hindu
3 – LIBOR: GS III – Indian Economy
Context:
- Banks and other organisations under RBI regulation have been urged by the Reserve Bank of India (RBI) to take action to ensure a full transition away from the London Interbank Offered Rate (LIBOR).
Explanation:
LIBOR is what?
- In the international interbank market for short-term loans, it serves as a benchmark interest rate at which large international banks lend to one another.
- With maturities ranging from Overnight to One Year, it provides short-term loans.
- It serves as the foundation for mortgages, student loans, credit cards, derivatives, and other financial products in addition to corporate and government bonds.
How is LIBOR calculated?
- managed by ICE Benchmark Administration (IBA), which is subject to FCA regulation in the UK.
- It has seven different maturity periods and is based on five different currencies: the US dollar, the euro, the British pound, the Japanese yen, and the Swiss franc.
Why is LIBOR being discontinued?
- Rate-fixing allegations in 2012 harmed LIBOR’s reputation.
- Submissions made by the panel banks were allegedly manipulated or inaccurately projected market strength.
- A number of changes were made following the 2012 Wheatley Review to lessen subjective input and transform LIBOR into a transaction-based benchmark.
- The volume of transactions in the short-term wholesale Funding Market did, however, gradually decline in spite of the changes made. As a result, LIBOR became more susceptible to price fluctuations that could lead to systemic hazards and short-term market illiquidity.
What other reference rates are there?
- Worldwide, the Secured Overnight Financing Rate (SOFR) is frequently used in place of LIBOR.
What additional difficulties arise when moving away from LIBOR?
- The financial markets may experience significant volatility as the deadline approaches. The RBI has released two circulars outlining the transition’s timeline and the necessary preparations.
Source The Hindu
4 – Oil Pipelines: GS III – Infrastructure-related issues
Context:
- India is one of the top five nations producing oil pipelines, both proposed and under construction, according to a study by Global Energy Monitor.
Findings:
Size of the Pipeline:
- India is currently building a 1,630 km long oil transmission pipeline, placing it second internationally in the category of pipelines that are being built, and it has also planned pipelines that would be 1,194 km long, placing it in tenth place.
The longest pipeline:
- The New Mundra-Panipat Oil Pipeline and the Paradip Numaligarh Crude Pipeline, two of the world’s longest oil pipelines, are both now under development.
Leading Nations:
- Tanzania, the United States, India, Iraq, and Iran.
Advantages of pipelines:
- more effective at moving oil and gas than traditional shipments; takes less time to build a pipeline; transit losses are small.
Concerns:
- Leakage, eviction, and disturbance of local residents’ livelihoods are all consequences of its construction.
Governmental Programmes:
- City Gas Distribution Project, One Nation & One Gas Grid, and Pradhan Mantri Urja Ganga Project.
About Global Energy Monitor:
- A non-governmental organisation called Global Energy Monitor, established in 2008 in San Francisco, keeps track of all the world’s fossil fuel and renewable energy projects. Governments, the media, and academic academics frequently use GEM’s data and publications on energy trends and its information sharing in support of renewable energy.
Source The Hindu
