Samvidhaan Hatya Diwas’

Samvidhaan Hatya Diwas Observance

• The Government of India will observe June 25th annually as ‘Samvidhaan Hatya Diwas.’

National Emergency Imposition in India

• June 25, 2025, marks 50 years since the Emergency imposition.
• The Emergency lasted from June 25, 1975, to March 21, 1977.
• It was marked by:
  • Suspension of civil liberties and press freedom.
  • Mass arrests and cancellation of elections.
  • Rule by decree.

Nature of the Emergency

• PM Indira Gandhi’s government used constitutional provisions for sweeping control.
• Opposition leaders were jailed; fundamental rights curtailed.
• Press censorship was enforced.
• The federal structure was converted into a unitary one:
  • The Union controlled state governments.
  • Parliament extended its term, made laws on state subjects, and extended Union executive powers to the states.

Legal and Constitutional Sanctions

• Article 352 allowed an emergency if India’s security was threatened by war, external aggression, or armed rebellion.
• In 1975, “internal disturbance” was used as the basis for the Emergency.
• This was the only emergency due to “internal disturbance,” later removed by the 44th Amendment in 1978.
• Article 358 suspended limitations on Article 19 (Right to freedom).
• Article 359 allowed the President to suspend court enforcement of rights during an emergency.

Political and Social Circumstances: Timeline

• 1974: Navnirman movement in Gujarat led to President’s Rule.
• Inspired by Navnirman, a student movement in Bihar led by Jayaprakash Narayan (JP) targeted corruption and misgovernance.
• May 1974: George Fernandes led a major railway workers’ strike.
• June 5, 1974: JP called for “Sampoorna Kranti” (total revolution).
• June 12, 1975: Justice Jagmohanlal Sinha of the Allahabad High Court convicted Indira Gandhi of electoral malpractice.
• June 25, 1975: President Fakhruddin Ali Ahmed signed the Proclamation of Emergency, power was cut to major newspapers, and the Cabinet was informed the next morning.

Impact on Opposition Leaders, Media, and Political Dissenters

• Opposition leaders, including JP, were detained under the Maintenance of Internal Security Act (MISA).
• Newspapers faced pre-censorship; UNI and PTI merged into the state-controlled agency, Samachar.
• Over 250 journalists were jailed; The Indian Express resisted by printing blank spaces where stories were censored.
• Sanjay Gandhi’s “five-point programme” included forced family planning and slum clearance:
  • Led to forced sterilizations and violent clashes.

Legal Changes During the Emergency

• With opposition leaders in jail, Parliament passed amendments to:
  • Bar judicial review of the Emergency.
  • Secure the Prime Minister’s election.
• The 42nd Amendment:
  • Expanded Union authority over states.
  • Gave Parliament unbridled power to amend the Constitution.
• In ADM Jabalpur vs. Shivkant Shukla (1976):
  • The Supreme Court ruled detention without trial was legal during an emergency.
  • Justice H.R. Khanna dissented.

Lifting the Emergency and Aftermath

• Indira Gandhi lifted the Emergency in early 1977.
• This led to her defeat in the elections.
• The Janata Party emerged victorious.
• Morarji Desai became India’s first non-Congress Prime Minister.
• The Janata government:
  • Reversed many constitutional changes from the 42nd Amendment.
  • Made judicial review of emergency proclamations possible.
  • Removed “internal disturbance” as grounds for emergency imposition.

RBI Circular on Liberalised Remittance Scheme (LRS)

 RBI’s Broadened Regulations on Remittances to IFSCs

• New Regulations:
  • RBI authorizes “authorized persons” to facilitate all permissible LRS remittances to IFSCs.

About Liberalised Remittance Scheme (LRS)

• Governance:
  • Governed by the Foreign Exchange Management Act (FEMA) 1999.
  • Regulated by the Reserve Bank of India (RBI).
• Introduction:
  • Introduced by RBI in 2004 to facilitate outward remittances from India.
• Allowance:
  • Resident individuals, including minors, can remit a specified amount abroad each financial year (April – March).
  • Current limit: Up to USD 250,000 per financial year.
• Uses:
  • For permissible current or capital account transactions, or both.

Permissible Uses

• Travel expenses (private or business).
• Medical treatment abroad.
• Payment of fees for education abroad.
• Gifts and donations.
• Maintenance of close relatives.
• Investment in shares, debt instruments, and immovable properties overseas.

Accounts

• Individuals can open and maintain foreign currency accounts with banks outside India for transactions permitted under LRS.

Exclusions

• LRS is NOT available to:
  • Corporations
  • Partnership firms
  • Hindu Undivided Families (HUFs)
  • Trusts, etc.

Prohibited Transactions

• Activities prohibited under Schedule-I of FEMA (e.g., purchase of lottery tickets, sweepstakes).
• Trading in foreign exchange abroad.
• Remittances to countries identified as non-cooperative by the FATF.
• Remittances to individuals/entities posing a terrorism risk as identified by the RBI.

Significance of the Move

• Reinforces GIFT IFSC’s position as a prominent international financial services hub.
• Aims to attract diverse investments and transactions, contributing to the growth of India’s financial sector by broadening the scope of LRS.

The PDS impact on household expenditure  

 Household Consumption Expenditure Survey (HCES) and Public Distribution System (PDS)

Overview of Public Distribution System (PDS)

• Purpose: Ensure food security by providing subsidized foodgrains to economically vulnerable sections of society.
• Coverage: Under the National Food Security Act (NFSA), 2013:
  • Up to 75% of the rural population.
  • Up to 50% of the urban population.

Structural Mandate of PDS

• Procurement and Distribution:
  • Foodgrains procured by the Food Corporation of India (FCI) from farmers at Minimum Support Prices (MSP).
  • Allocated to states/UTs based on requirements and distributed to Fair Price Shops (FPS).
• Identification and Subsidy:
  • Beneficiaries identified using Socio-Economic and Caste Census (SECC) data.
  • Classifications: Priority Households and Antyodaya Anna Yojana (AAY) households.
  • Subsidized rates: Rice at ₹3/kg, wheat at ₹2/kg, and coarse grains at ₹1/kg.

Observations from HCES 2022-23 Report

• Coverage Analysis:
  • Insights into social welfare programs, including PDS.
  • Highlights discrepancies between administrative data and survey estimates due to inclusion and exclusion errors.
• Imputation of Values:
  • Assigning monetary value to items received for free or at subsidized rates.
  • Essential for accurate estimation of household consumption expenditure.

Purpose and Methodology of Imputation

• Purpose:
  • To estimate total consumption expenditure of households accurately.
  • Reflects the impact of receiving goods without direct payment.
• Methodology:
  • Statistical methods by NSSO to assign values based on modal or percentile prices.
  • Varies by state and rural/urban classification.

Impact on Analysis and Poverty

• Economic Relief:
  • Reduces financial burden on poorer households.
  • Allows allocation of resources to other essential needs.
• Enhanced Measurement:
  • Imputed values provide a comprehensive assessment of household consumption.
  • More accurate reflection of economic well-being and poverty levels.
• Policy Insights:
  • Improved targeting of social welfare programs.
  • Diversification of diet by freeing up resources for nutrient-rich foods.

Way Forward

• Enhancing Efficiency and Targeting:
  • Improve beneficiary identification with updated data collection methods.
  • Continuous validation and updating of SECC data to reduce errors.
• Promoting Nutritional Security:
  • Expand subsidized items beyond basic grains to include nutritious options like pulses, edible oils, and fruits.

Q What are the major challenges of Public Distribution System (PDS) in India? How can it be made effective and transparent? (2022)

Q Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO. (2013)

UPPER SIANG HYDROPOWER PROJECT

 Locals are protesting against the Upper Siang hydropower project in Arunachal Pradesh.

Background:

• Authorities are in the process of launching a massive public outreach campaign to drum up support for the project.

Upper Siang Hydropower Project Overview

• Project Details:
  • Proposed 11,000 MW hydropower project on the Siang River.
  • Located in the Upper Siang district of Arunachal Pradesh.
  • Origin of the Siang River: Near Mount Kailash in Tibet, known as Tsangpo.
  • The Siang River flows over 1,000 km eastward, forming a horseshoe bend around Namcha Barwa peak before entering Arunachal Pradesh. It becomes the Brahmaputra River in Assam.
• Project History:
  • In 2017, the government proposed to consolidate the planned 5,500 MW Siang Upper Stage-I and 3,750 MW Siang Upper Stage-II projects into a single, multi-purpose Upper Siang project.
  • To be built by the National Hydroelectric Power Corporation (NHPC).
  • The project includes constructing a 300-meter high dam, which would be the largest in the subcontinent.
• Strategic Importance:
  • Aimed at countering China’s hydel projects on the Tsangpo.
  • China plans to build a 60,000 MW ‘super dam’ in Tibet, which could affect the flow of water to India.
  • The Upper Siang project would act as a reservoir to mitigate potential reduced water flow from China’s dam.
• Capacity:
  • The Upper Siang project’s installed capacity is approximately 60% of the combined installed capacity of the 29 hydroelectric projects (over 25 MW each) in the Siang river basin, which totals 18,326 MW.

Environmental and Social Concerns

• Displacement:
  • The project is expected to displace over 300 villages of the Adi tribe, impacting their way of life and cultural heritage.
• Forest Conservation:
  • Concerns over the Forest (Conservation) Amendment Act, which exempts strategic projects within 100 km of India’s borders from requiring clearance for forest land diversion.
• Feasibility Study:
  • The Upper Siang district administration has conducted multiple meetings to prepare for a pre-feasibility survey.
  • NHPC selected three sites for the feasibility study: Ugeng, Dite Dime, and Parong.

Corporate Social Responsibility (CSR)

• NHPC Initiatives:
  • NHPC has allocated a Rs 325 crore CSR package.
  • The package aims to implement livelihood schemes and develop health, education, and sports infrastructure in the region.

Conclusion

• The Upper Siang hydropower project is a significant initiative with strategic, environmental, and social implications.
• While it promises substantial hydropower capacity and strategic benefits, it also poses challenges regarding displacement and environmental impact that need to be addressed through careful planning and community engagement.