Daily Current Affairs 18-01-2024

China-Taiwan Relations

Syllabus: GS2/International Relations

Context:

• The newly elected President of Taiwan is being perceived as a major blow to China.

Background

• The island became a Japanese colony in 1895, after the Qing empire lost the first Sino-Japanese war.
• Then in 1945, after Japan lost World War II, China took the island.
• After Mao Zedong’s Communist Party won in 1949, Chinese republicans of the Kuomintang government fled to Taiwan, where they ruled for several decades, and it has since continued as the Republic of China (ROC).

Current Scenario

• China sees self-ruled Taiwan as a breakaway province that will eventually be under Beijing’s control.
• However, Taiwan sees itself as distinct from the Chinese mainland, with its own constitution and democratically-elected leaders.

Issues between China and Taiwan

• Sovereignty: China considers Taiwan as a renegade province that must eventually be reunified with the mainland.
  • However, Taiwan has its own government, military, and economy and considers itself a sovereign state.
• Political Differences: Taiwan is a democratic country, while China is a one-party communist state.
  • The differences in political ideology have contributed to tensions between the two countries.
• Military Threats: China has not ruled out the use of force to reunify with Taiwan and has conducted military exercises near the Taiwan Strait in the past, which have increased tensions between the two sides.
• Economic Competition: Both China and Taiwan are economic powerhouses, and there is significant competition between the two in terms of trade and investment.
• Diplomatic Recognition: China has been using its diplomatic clout to isolate Taiwan by convincing other countries to cut ties with Taiwan and recognize China instead.
• Taiwan’s International Status: Taiwan is not recognized as a sovereign state by the United Nations and is unable to join international organisations. 
• Cross-Strait Relations: There are also a number of other issues that affect cross-strait relations, including Taiwan’s relationship with the United States, Taiwan’s national identity, and the possibility of a peaceful reunification.

Taiwan Location

• Taiwan is an island separated from China by the Taiwan Strait in the East China Sea, to the northeast of Hong Kong, north of the Philippines and south of South Korea, and southwest of Japan.and has been home to various indigenous tribes for centuries.
• It has been governed independently of mainland China since 1949.

Recognition: 

• Taiwan sees itself as a de jure sovereign state but it is largely unrecognised by other countries.
  • Currently, 21 states recognize Taiwan as a sovereign country.
• The United Nations (UN): It officially recognizes the People’s Republic of China as the only legitimate representative of Taiwan.
  • This is based on the ‘One China’ policy, which holds that there is only one China, of which Taiwan is an integral part.
  • As a result, Taiwan is not a member of the UN and has no representation in most UN specialised agencies.
• Stand of India: It officially recognizes the ‘One China’ policy and maintains diplomatic relations with the People’s Republic of China.
  • India has not recognized Taiwan as a sovereign state and instead refers to it as a ‘part of China’ which has remained consistent over the years.

‘One China’ Policy – It affirms Chinese sovereignty over Taiwan. It acknowledges that there is ‘One China’ (1992 Consensus). – Under this policy, any country that wants to establish political and diplomatic relations with China must agree to adhere to this principle and not recognise Taiwan as an independent country. – In practice, the ‘One China’ principle is a stabilisation mechanism that preserves the status quo over Taiwan’s political status while allowing it to function as an independent economic, civic and administrative entity.

India on One China Policy

• China on the LAC: With India facing its own problems with China on the LAC, there have been suggestions that it should review its One China Policy.
• India’s Bilateral relations with China and Taiwan: India maintains its bilateral relations with China including Vietnam, and separately with Taiwan.
  • India maintains ‘trade and cultural exchange’ offices in each other’s capitals. 
• New Southbound Policy (NSP): It expands the scope of countries covered in the Go South Policy.
  • Through the policy, Taiwan has extended engagement with Australia, New Zealand, India, and its five South Asian neighbours. 

Way Forward

• The future of China-Taiwan relations remains uncertain, with the potential for significant geopolitical implications. The situation is fluid and continues to evolve.
• Both the countries need to maintain the Status Quo based on the principle of peaceful coexistence, negotiated settlement, and strategic diplomacy.

Source: TH

States’ Startup Ranking for 2022

Syllabus: GS2/Government Policies and Interventions, GS3/ Economy

Context

• The Department of Industrial Policy & Promotion released the Startup Ranking of States for 2022 recently.

About

• States’ Start-up Ranking was launched in February 2018 to achieve the vision of building a robust startup ecosystem in the country.
• A total of 33 states and Union territories took part in the assessment, categorised into five groups: best performers, top performers, leaders, aspiring leaders, and emerging start-up ecosystems.
• State’s Performance in Startup Ranking (2022):

Category A States (Population more than 1 crore)
Best performer Gujarat Karnataka Kerala Tamil Nadu	Top Performer Maharashtra Odisha Punjab Rajasthan Telangana	Leader Andhra Pradesh Assam Madhya Pradesh Uttar Pradesh Uttarakhand	Aspiring leader Bihar Haryana	Emerging Ecosystems Chhattisgarh Delhi Jammu and Kashmir

Category B States (Population less than 1 crore)
Best performer Himachal Pradesh	Top Performer Arunachal Pradesh Meghalaya	Leader Goa Manipur Tripura	Aspiring leader Andaman and Nicobar Islands Nagaland	Emerging Ecosystems Chandigarh Dadra and Nagar Haveli and Daman and Diu Ladakh Mizoram Puducherry Sikkim

Startup Ecosystem in India

• It consists of ‘a network of interconnected entities, organisations, and resources that support the growth, development, and success of Startups within a specific geographic location’.
• Over the past seven years (2015-2022), there has been an:

Regulating Startups in India

• Regulatory reforms are needed to enhance ease of doing business, ease of raising capital and reduce compliance burden for the startup ecosystem. These include:
  • Startups can be registered as a private limited company, partnership firm, or a limited liability partnership.
  • The startup should not be more than 10 years old.
  • The turnover should be less than 100 crores in any of the previous financial years.
  • A certificate of an eligible business from the Inter-Ministerial Board of Certification of DPIIT is a prerequisite for availing the tax benefits.
  • The Ministry of Labour & Employment has allowed the startups to self-certify compliance under various Labour Laws.

Significances of Startups

• Creating Wealth and Employment: Startups are contributing economically, creating wealth, and generating employment.
  • Majority of the  Startups have been growing at a rate of more than 35% for the last two years.
  • About 50% of DPIIT recognised Startups are from Tier II & Tier III cities.
• Impacts on Society: Startups are creating a manifold impact in society by introducing innovative solutions, creating large-scale employment, contributing to economic growth, and garnering huge demand from the private as well as government sector.
• Impact on Women: Over the past five years, the number of Startups in India that are driven by women has increased by 4%.
  • There is at least one-woman director in about 49% of all DPIIT recognized firms.

Challenges associated with Startups in India

• High Competition: There are thousands of startups, from e-commerce and fintech to healthcare and education, competing for funding, talent, and customers in India’s startup ecosystem.
• Regulatory Hurdles: High taxes, stringent labour laws, and bureaucratic delays in obtaining licences and permits are just a few of the regulatory obstacles startups in India must overcome.
  • Startups have a difficult time expanding and scaling their businesses because of these obstacles, which can take time and money.
• Poor Infrastructure: A society’s or economy’s inadequate or insufficient physical and organisational structures, systems, and facilities are referred to as poor infrastructure.
  • Poor infrastructure includes inadequate healthcare and educational facilities, insufficient power supply, inadequate water and sanitation, and inadequate transportation networks.
• Management and Leadership Issues: Despite getting the recognition of Best and or Top Performers, the Indian states still face challenges in incubation and mentorship support, fostering innovation and entrepreneurship, and planning for a sustainable future.

Related Initiatives

• The DPIIT has implemented various flagship schemes under the Startup India initiative to support Startups at various stages of their business cycle to enable them to graduate to a level where they are able to raise investments or seek loans for a steady and healthy sustenance, like:
  • Fund of Funds for Startups (FFS);
  • Startup India Seed Fund Scheme (SISFS); and, 
  • Credit Guarantee Scheme for Startups (CGSS).
• Other Initiatives:
  • Innovations for Defence Excellence (iDEX)
  • Innovation and Agri-Entrepreneurship Development Program
  • Atal Innovation Mission (AIM)
  • Promoting Innovations in Individuals, Start-ups and MSMEs (PRISM)
• Make in India

Conclusion and Way Forward

• The government is increasingly showing greater enthusiasm to increase the GDP rate of growth from grass root levels with introduction of liberal policies and initiatives for entrepreneurs like ‘Make in India’, ‘Startup India’, MUDRA etc.
• Continually refine and streamline regulatory processes to make it easier for startups to register and operate. Introduce policies that provide tax incentives, subsidies, and other financial support for startups.
• Promote entrepreneurship education and skill development programs to equip aspiring entrepreneurs with the necessary knowledge and skills.

Source: TH

Electricity (Amendment) Rules, 2024

Syllabus: GS3/Economy

Context

• The Ministry of Power issued Electricity (amendment) Rules, 2024, under the aegis of the Electricity Act, 2003.

About

• Exemption in license requirement: The rules allow consumers which have specified energy load and Energy Storage Systems (ESS) to establish, operate and maintain their dedicated transmission lines themselves without the requirement of license.
  • The rule covers those companies / persons who have loaded more than 25 megawatt and 10 megawatt on inter-state and intra-state transmission networks. 
• New formula to reduce open access charges: It prescribed, if a person availing General Network Access (GNA) or Open Access, the additional surcharge shall be linearly reduced and get eliminated within four years from the date of grant of access. 

Open access charges – Open access charges are levied by power distribution companies (discoms) on those consumers which buy electricity from any other source.  – These charges were capped by the union ministry of power but the discoms started levying a variety of other charges such as additional surcharge.

• Cost reflective tariff: There shall not be any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff except under natural calamity conditions.
  • Such a gap, created if any, shall not be more than three percent of the approved Annual Revenue Requirement.

Significance

• Affordable electricity: The rules will ensure the reduction of discom losses and increased efficiency, leading to them being able to provide better services to the consumers.
• Industrial development: Doing away with the requirement of license for dedicated transmission lines for industry will lead to ease of doing business for the industry.
• Promotion of renewable energy: Rationalization of open access charges will lead to faster adoption of renewable energy by the industry and reducing emission.

Source: BS

Investment Models 

Syllabus: GS3/Investment Models

Context: 

• To encourage Public Private Partnership for Build-Operate-Transfer (BOT) projects, the Ministry of Road Transport and Highways (MoRTH) organized a conference with industry stakeholders in New Delhi. 

About

• At present, projects are being awarded on Engineering Procurement Construction (EPC) or Hybrid Annuity Model (HAM) due to various challenges in implementation of BOT Projects. 
• Many initiatives have been taken for revival of BOT projects and various schemes like Harmonious Substitution, One Time Fund Infusion, Rationalized Compensation, Premium Deferment and allowing refinancing have been adopted in the past. 
• Around 53 BOT (Toll) Projects for a length of 5200 km worth Rs. 2.1 lakh crore have been identified and bids for 7 projects with a Length of 387 km worth Rs. 27,000 crore have been invited.   

Investment models in India

• Infrastructure development has been a key priority in recent years in India. Towards this Budget 2023-24 has allocated around Rs 10 lakh crore towards capital expenditure. 
• India will still require $ 1.4 Trillion investment to reach the goal of $ 5 Trillion economy, for which various investment options have to be undertaken.  
• There are different investment models available for infrastructure creation in India. The choice of model depends on various factors; 
  • project’s nature, 
  • financial viability, 
  • risk allocation preferences, and 
  • government priorities.

Build-Operate-Transfer (BOT):

• Private entity designs, builds, operates, and maintains the infrastructure asset for a specified concession period (usually 20-30 years).
• Revenue generated from the asset (tolls, user fees, etc.) belongs to the private entity during the concession period.
• After the concession period, the asset is transferred back to the government.

Advantages:

• Distributes risks and responsibilities between the government and private sector.
• Leverages private sector efficiency and expertise.
• Reduces upfront government financial burden.

Challenges:

• Ensuring affordability of services to the public.
• Potential for disputes over contract terms and performance.
• Managing risks like traffic or revenue shortfalls.

Build-Own-Operate-Transfer (BOOT):

• Similar to BOT, but the private entity also owns the asset during the concession period.
• Provides more control and flexibility for the private entity in project execution.

Advantages:

• Greater ownership incentive for private sector investment.
• Faster project development and innovation potential.

Challenges:

• Ensuring asset quality and maintenance standards upon transfer.
• Balancing private interests with public needs.

Hybrid Annuity Model (HAM):

• Government shares initial project costs with the private entity.
• Regular annuity payments are made to the private entity during construction and operation phases.
• Revenue risk is shared between the government and private entities.

Advantages:

• Reduces financial burden on the private entity upfront.
• Ensures greater government control and oversight.
• More suitable for projects with longer gestation periods or lower revenue potential.

Challenges:

• Requires careful risk assessment and allocation in contracts.
• Government needs to ensure timely annuity payments.

Toll-Operate-Transfer (TOT):

• Government transfers existing infrastructure assets to a private entity for operation and maintenance for a specified concession period.
• Assets are transferred back to the government after the concession period.

Advantages:

• Monetizes existing assets and generates revenue for the government.
• Brings in private sector efficiency in operations and maintenance.
• Funds can be used for new infrastructure development.

Challenges:

• Ensuring asset quality and maintenance standards at the time of transfer.
• Managing potential toll hikes or service quality issues.

Engineering Procurement Construction (EPC):

• Engineering, Procurement, and Construction (EPC) is a contractual arrangement commonly used in large-scale and complex infrastructure projects. 
• It involves a single contractor taking on the responsibility for three key stages of a project: Engineering, Procurement and Construction.

Advantages:

• Single point of contact simplifies project management and communication, as the owner deals with only one contractor.
• Fixed price and fixed schedule provides cost certainty and avoids potential cost overruns for the owner.
• Faster project execution: Streamlines the process by eliminating handovers between different entities for design, procurement, and construction.

Challenges:

• High upfront costs: Contractor requires advance payment to cover all project stages.
• Dependence on contractor performance: Owner’s success hinges on the contractor’s capabilities and risk management.

Way Ahead:

• As per the Government of India’s ‘Vision 2047’ Plan, a large number of high-speed corridors are envisaged to be developed. 
• Robust Public Private Partnership in development of the road sector will play a pivotal role in realizing this vision and will greatly contribute towards Operation & Maintenance of a world class National Highway Network in the country.

Source: PIB

Coastal Zone Management Plans

Syllabus:GS3/Environment

Context

• The National Green Tribunal (NGT) has asked to prepare the Coastal Zone Management Plan (CZMP) or Island Coastal Regulation Zone Plan (ICRZP) as per Coastal Regulation Zone (CRZ) Notification, 2019.

Coastal Zone Management Plan (CZMP)

• Coastal zone management plans (CZMP) are designed to promote sustainable development within coastal zone environments.
• Till now the CZMP has been approved for Odisha, Karnataka and Maharashtra and ICRZP has been approved for Great Nicobar Island and Little Andaman Island as per CRZ Notification, 2019.

 Coastal Regulation Zone (CRZ) notification, 2019 

• The notification implemented by the Ministry of Environment, Forest and Climate Change (MoEFCC) classifies the coastal area into different zones to manage infrastructure activities and regulate them.
• It incorporates recommendations of the Shailesh Nayak committee which looked into the concerns relating to the CRZ, 2011 notification.

Provisions of the CRZ notification 2019

• CRZ limits: The CRZ limits on land along “tidal influenced water bodies” has been reduced from 100 meters to 50 meters or the width of the creek, whichever is less.
• No Development Zones (NDZ): The notification provides for NDZ along various categories of coastal areas to protect India’s coastline from encroachment and erosion.
• Mapping of high tide and hazard lines: National Centre for Sustainable Coastal Management (NCSCM) is the final authority to lay down standards for High Tide Line (HTL). 

High Tide Line (HTL) – The HTL means the line on the land up to which the highest water line reaches during the spring tide. – It is demarcated by the National Centre for Sustainable Coastal Management (NCSCM) in accordance with the laid down procedures and made available to various coastal States and Union territories

• Bifurcation of CRZ-III areas: CRZ-III areas have been divided into two categories:
  • CRZ-III A: It refers to rural areas with a population density of 2,161 people per square kilometer or more as per the 2011 Census. Such areas shall have a “No Development Zone” (NDZ) of 50m from the HTL.
  • CRZ-III B: It refers to rural areas with a population density lesser than 2,161 people per square kilometer. Such areas shall continue to have an NDZ of 200m from the HTL.
• Projects that require MoEFcc’s approval: Only those projects located in CRZ-I (environmentally most critical) and CRZ-IV (water and seabed areas) shall require MoEF clearance. All other projects shall be considered by Coastal Zone Management Authorities (CZMAs) in the states and union territories.

Coastal Regulation Zone – CRZ along the country has been placed in four categories: a. CRZ-1: These are ecologically sensitive areas, these are essential in maintaining the ecosystem of the coast. They lie between low and high tide lines. Exploration of natural gas and extraction of salt are permitted. b. CRZ-2: These areas are urban areas located in the coastal areas. c. CRZ-3: Rural and urban localities which fall outside the CRZ-1 and CRZ-2. Only certain activities related to agriculture and even some public facilities are allowed in this zone. d. CRZ-4: This lies in the aquatic area up to territorial limits. Fishing and allied activities are permitted in this zone. No Solid waste should be let off in this zone.

Source: TH

News in Shorts

Chittorgarh Fort

Syllabus: GS1/Art and Culture

Context:

• Recently, the Supreme Court of India has put a hold on the use of explosives for mining within 5 km of Chittorgarh Fort.
  • It emphasised the threat to the fort’s existence due to unscientific mineral exploitation and directed a multidisciplinary study of environmental pollution and its impact on structures.

About the Chittorgarh Fort

• It is one of the largest living forts in India, and was the capital of Mewar.
• It is believed that the fort was built by a local Mori Rajput ruler Chitrangada Mori in the 7th century.
• It was under the control of the Guhila dynasty until 1303 when Alauddin Khilji laid siege to the fort.
• It is one of the six hill forts of Rajasthan having the status of UNESCO’s World Heritage Site.
• It sprawls over a hill above the plains of the valley drained by the Berach River, a tributary of the Banas River.
• It stands as a testament to the power and resilience of the Rajput princely states that flourished in the region from the 8th to the 18th centuries.

Source: Livelaw

Jagannath Temple Corridor

Syllabus: GS1/ Art and culture

Context:

• The Odisha Chief Minister recently unveiled a sprawling heritage corridor around the Jagannath Temple in Puri.

Puri heritage corridor project

• Conceived in 2016, the Puri Heritage Corridor Project is to transform the holy town of Puri into an international place of heritage. 
• The project includes redeveloping major portions of the holy town and in the vicinity of the temple for visitors and tourists. 
• A total of 22 different projects will be executed in a phased manner under Augmentation of Basic Amenities and Development of Heritage and Architecture at Puri (ABADHA) scheme.

Jagannath Temple

• Jagannath Temple is a 12th-century Hindu shrine dedicated to Jagannath, a form of Vishnu. 
• Located in: Puri, Odisha
• Built in: 12th century by Anantavarman Chodaganga, the first king of the Eastern Ganga dynasty. 
• It is one of the Char Dhams, four most important pilgrimage sites in Hinduism and also called White Pagoda for its colour the way Konark Temple is called ‘Black Pagoda’ due to its dark colour. 
• The temple is a massive structure made of sandstone and granite. It is divided into two parts: the Jagamohan, or audience hall, and the Garbhagriha, or sanctum sanctorum. 
• The temple is famous for its Rath Yatra, a chariot festival that is held every year in July or August.
  • During the Rath Yatra, the deities are taken out of the temple and placed on three chariots. The chariots are then pulled by devotees through the streets of Puri. 

Source: TH

Draft Indian Stamp Bill, 2023

Syllabus:GS2/ Polity

Context

• The Department of Revenue, Ministry of Finance, has prepared a draft ‘Indian Stamp Bill, 2023’ to align with the modern stamp duty regime.

About

• The Bill intends to replace the Indian Stamp Act, 1899. It is a fiscal statute, laying down the law relating to tax levied in the form of stamps on instruments recording transactions. 
• Stamp duties are levied by the Central Government, but within the States are collected and appropriated by the concerned States in terms of provisions of Article 268 of the Constitution.   

Stamp duties

• Union List: Stamp duties on documents specified in Entry 91 of the Union List in the 7th Schedule of the Constitution (viz. Bills of Exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts) are levied by the Union. 
• State List: Stamp duties on documents specified in entry 63 are levied and collected by the States.
• Concurrent List: Stamp duties other than duties or fees collected by means of judicial stamps, but not including rates of stamp duty which fall within the scope of Entry 91 and Entry 63 mentioned above, fall under Entry 44 of the Concurrent List of the Seventh Schedule.

Source: PIB

Beyond Basics:  Annual Status of Education Report (ASER) 2023

Syllabus: GS2/ Education

News

• The Annual Status of Education Report (ASER) 2023, titled ‘Beyond Basics’, was released recently by Pratham NGO. 

About

• ASER is a nationwide citizen-led household survey that provides a snapshot of the status of children’s schooling and learning in rural India.
• The 2023 survey was conducted in 28 districts across 26 states, reaching a total of 34,745 youth in the age group 14-18 years.

Major Findings

• The report states that about 25% of this age group still cannot read a standard II-level text fluently in their regional language.
• It stated that female students are less likely to be enrolled in the STEM (Science, Technology, Engineering, and Mathematics) stream (28.1%) than males (36.3%).
• Close to 90% of all youth have a smartphone in the household and a majority of them use it for entertainment purposes with little knowledge about online safety.

Source: TH

Centre for Fourth Industrial Revolution (C4IR)

Syllabus: GS3/ Economy

In Context

• Telangana has signed an agreement with the World Economic Forum (WEF) to establish the Centre for Fourth Industrial Revolution (C4IR) in the state capital, Hyderabad.

Centre for Fourth Industrial Revolution (C4IR)

• It is a global initiative of the World Economic Forum (WEF) to collaborate with governments, businesses, academia, and civil society to address the challenges and opportunities posed by the Fourth Industrial Revolution (4IR).
• The collaboration is geared towards harnessing technology to drive progress in the life sciences and healthcare sector, specifically aiming to achieve healthcare targets for the state’s population. Telangana aspires to emerge as a hub for health technology and a global center for healthcare services.

About Fourth Industrial Revolution (4IR)

• The term 4IR was coined by Klaus Schwab, executive chairperson of the World Economic Forum (WEF), in 2016 
• The term “fourth industrial revolution” refers to technical advancements in artificial intelligence, machine learning, 5G technology, the internet of things, robotics, biotechnology, quantum computing, and so on. 
• These technologies have opened up new possibilities for organisations, allowing them to dream large and expand into previously unthinkable regions.

World Economic Forum (WEF)  – It is a Swiss nonprofit foundation established in 1971 by German engineer Klaus Schwab, based in Geneva, Switzerland. – It is committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.

Source: PIB

Tibetan Brown Bear

Syllabus: GS3/ Species in News

In News

• Rare Tibetan Brown Bear Discovered in Sikkim

About Tibetan Brown Bear

• It is also known as the Tibetan blue bear.
• It  is one of the rarest subspecies of bears in the world, and is rarely sighted in the wild.
• It is an omnivore with its diet generally consisting of marmots and alpine vegetation.
• Habitat and Distribution  : It inhabits high-altitude alpine forests, meadows, and steppe above 4000 m.

• It is uniquely adapted to the harsh conditions of the Tibetan Plateau.
• Until now, there were only a few confirmed records from Nepal, Bhutan, and the Tibetan plateau.
• Protection status: It has been accorded the highest protection status under the Wildlife (Protection) Act, 1972 by listing it under Schedule-I.
  • It is also listed in Appendix I of the Convention on International Trade in Endangered Species (CITES) as a protected species.

Himalayan Wolf 

Syllabus: Species in News

In News

• Himalayan Wolf has been assessed for the first time in the International Union for Conservation of Nature (IUCN)’s Red List.

About Himalayan Wolf (Canis lupus chanco)

• Himalayan wolves, also called Tibetan wolves, which live at more than 4,000 metres altitudes are genetically distinct from grey wolves.
• It is a unique ancient lineage of wolves found in Asia
• Habitat and Distribution: It is specifically adapted to life in the high-altitude ecosystems of the Himalaya and the Tibetan Plateau,
  • The distribution range of the Himalayan Wolf extends across the Tibetan Plateau of western China and the Himalayan region of Nepal and India.
• IUCN Red List status : Vulnerable