Manipur: The Demand for Separate Administration and the Challenges Ahead

Recent calls in Manipur for a separate government have spurred broad debates on the sanctity of boundaries and the state’s geographical integrity. The demand, backed by a number of Kuki-Zo MPs, draws attention to the Manipur government’s allegedly covert encouragement of violence against the hill tribes of the Chin-Kuki-Mizo-Zomi. The scenario is made more complicated by the counterattack from Meitei organisations supporting the defence of the state’s territorial integrity.

Manipur riots’ root causes

The state government’s failure to acknowledge and take into account the territorial rights and identities of the various communities in the state is the main reason for the riots in Manipur.

The state’s aggressive integrationist project, which seeks to dissolve tribal land rights in the valley areas, has been a major source of tension between the Meitei and tribal communities.

Additionally, in April 2023, The Manipur High Court’s order to expedite the recommendation for granting ST status to the Meiteis further inflamed the tribal sentiments and led to the massive protest on May 3.

Factors contributing to the increasing demand for a separate administration in Manipur

Ethnic Tensions and Divisions: Manipur is home to diverse ethnic communities, including the Kuki-Zo and Meitei groups. Ethnic tensions and historical divisions have persisted for years, leading to a sense of marginalization and a desire for separate administrative arrangements.

Failure of Previous Arrangements: Previous attempts to address the concerns of tribal communities, such as the proposal for a Union Territory or inclusion in the Sixth Schedule, have been perceived as inadequate or non-serious. The lack of tangible progress has intensified the demand for a more comprehensive and separate administrative setup.

Demographic Changes and Displacement: The extensive violence, displacement of populations, destruction of property, and loss of lives in recent times have significantly altered the demographic landscape of Manipur. These changes have deepened the divide between different communities and created a sense of irreparable separation.

Economic Considerations: The Kuki-Zo-dominated districts of Manipur, such as Pherzawl and Churachandpur, possess valuable natural resources and strategic gateways to Southeast Asia. Proponents of a separate administration argue that harnessing these resources and leveraging the region’s economic potential would be better served under a distinct administrative framework.

Lack of Trust in the Current System: The demand for a separate administration reflects a deep-seated mistrust in the existing political and administrative structures. Some communities believe that their interests and concerns are not adequately represented or addressed within the current system, leading to a call for a separate administrative entity.

Popular Support and Mobilization: The current demand for a separate administration enjoys unprecedented popular support among the Kuki-Zo groups. This widespread backing has galvanized community members and fueled a sustained mobilization effort, making the demand a significant force in Manipur’s political landscape.

Alleged Government Support for Violence: The demand stems from allegations that the Manipur government has tacitly supported violence against the Chin-Kuki-Mizo-Zomi hill tribals. The perception of government inaction or indifference has fuelled discontent among the affected communities.

Constitutional Challenges for the implementation of a separate administration in Manipur

Article 3 of the Constitution: The power to effect changes in a state’s border lies with the central government, as outlined in Article 3 of the Constitution. This provision grants unilateral power to the center to alter state boundaries.

Opposition from Naga Groups: Granting a separate administration for Kuki-Zo in Manipur’s hill areas could face opposition from certain Naga groups. These groups may be reluctant to compromise on their territorial aspirations, particularly concerning the Naga’s demand for a sovereign ‘Nagalim.’ Finding a resolution that satisfies the demands of both communities is a significant challenge.

Resistance from the State Government and Meitei Groups: The Manipur state government and Meitei groups may staunchly oppose the demand for a separate administration. They might advocate for maintaining the territorial integrity of Manipur and resist any attempts to alter the administrative setup.

Revisiting Constitutional Arrangements: Establishing a separate administration in Manipur would necessitate revisiting and potentially amending the existing constitutional arrangements. This could involve dissolving sub-state constitutional asymmetrical arrangements, such as Article 371C, district councils, and tribal land rights.

Overlapping Ethnic Boundaries: Manipur’s ethnic dynamics present a challenge when determining the territorial boundaries of a separate administration. Some districts, such as Chandel, Kamjong, and Tengnoupal, have mixed populations and historical territorial disputes between the Kukis and Nagas. Resolving these territorial complexities and addressing the concerns of all communities is a delicate task.

Economic Viability: Critics may raise concerns about the financial sustainability and resource allocation for the proposed administrative entity. Demonstrating the economic potential and strategic advantages of a separate administration is crucial to counter these arguments.

Carbon Border Adjustment Mechanism (CBAM): Balancing Trade and Environment

India is concerned about the potential effects of the EU’s Carbon Border Adjustment Mechanism (CBAM) on the nation’s carbon-intensive exports to the EU. India has criticised CBAM as being discriminatory and protectionist, but the discussion demonstrates how closely trade and environmental concerns are related.

The Carbon Border Adjustment Mechanism (CBAM): An Understanding

A significant climate law introduced by the European Union (EU) is called CBAM. By imposing carbon-related prices on specific imported items, it aims to solve the problem of carbon leakage and level the playing field for EU firms.

The Emissions Trading System (ETS), a market-based mechanism designed to lower greenhouse gas (GHG) emissions, was established by the EU in 2005.

In 2005, the EU implemented the Emissions Trading System (ETS), a market-based mechanism aimed at reducing greenhouse gas (GHG) emissions.

Under the ETS, industries within the EU are allocated allowances for their GHG emissions, which can be traded among themselves.

However, the EU is concerned that imported products may not account for embedded emissions due to less stringent environmental policies in exporting countries.

This disparity could put EU industries at a competitive disadvantage and potentially lead to carbon leakage, where European firms relocate to countries with less strict emission norms.

To address these concerns, the CBAM imposes carbon-related costs on imports of specific carbon-intensive products. The products currently included are cement, iron and steel, electricity, fertilizers, aluminium, and hydrogen.

The CBAM requires importers to pay a price linked to the average emissions cost under the EU’s ETS. If the imported products have already paid an explicit carbon price in their country of origin, a reduction can be claimed.

Advantages of CBAM in addressing climate-related challenges

Addressing Carbon Leakage: CBAM helps address the issue of carbon leakage, which occurs when domestic industries relocate to countries with less stringent climate policies, leading to increased global emissions. By imposing carbon-related costs on imported products, CBAM aims to discourage carbon-intensive industries from shifting production to countries with lower environmental standards, thereby reducing carbon leakage.

Encouraging Global Climate Action: CBAM incentivizes countries with carbon-intensive industries to adopt more stringent climate policies. The mechanism sends a signal that products exported to the EU market should meet similar environmental standards as EU-produced goods. This encourages exporting countries to reduce their greenhouse gas emissions and transition to cleaner production processes, contributing to global climate action.

Levelling the Playing Field: CBAM aims to create a level playing field for EU industries by ensuring that imported goods face similar carbon costs as domestic products. This helps prevent unfair competition, as it aligns the cost of carbon across different markets. It incentivizes domestic industries to invest in cleaner technologies and processes, knowing that imported goods will also be subject to equivalent carbon-related costs.

Revenue Generation for Climate Initiatives: CBAM has the potential to generate revenue for the EU, which can be used to fund climate initiatives and support the transition to a low-carbon economy. The funds collected through CBAM can be reinvested in research and development, renewable energy projects, or supporting industries in their decarbonization efforts.

Aligning Trade and Climate Objectives: CBAM highlights the interlinkage between trade and environmental concerns. It creates an opportunity to align trade policies with climate objectives, fostering greater coherence between economic growth and sustainability. CBAM encourages countries to consider the carbon intensity of their exports and provides an impetus for the adoption of climate-friendly practices in international trade.

Key issues associated with CBAM

Trade Protectionism: CBAM has been accused of being protectionist in nature. Critics argue that it could create barriers to trade and hinder the export capabilities of countries, particularly those with carbon-intensive industries. By imposing carbon-related costs on imports, CBAM may give an advantage to domestic industries and discriminate against foreign competitors.

Discrimination and Non-Discrimination Principles: CBAM may face challenges in adhering to the principles of non-discrimination within the WTO. While it is designed to be origin-neutral, in practice, it could potentially discriminate between goods from different countries based on varying carbon pricing policies or reporting requirements. This could lead to disputes and challenges under WTO rules.

Complexity and Implementation Challenges: CBAM implementation involves complex calculations and mechanisms to determine the carbon-related costs of imported products. Setting up effective monitoring, reporting, and verification systems to ensure compliance could be challenging, both for the EU and exporting countries. The administrative burden and costs associated with implementing CBAM may also pose practical difficulties.

Oil Reserves in Salt Caverns: The Potential in India

To increase the nation’s storage capacity, Engineers India (EIL) is conducting a feasibility study for the development of strategic oil reserves based in salt caverns in Rajasthan, India.

In contrast to the current strategic storage facilities based on rock caverns, if it is successful, it would be India’s first oil storage facility employing salt caverns.

Oil Storage based in Caverns

Strategic oil storage facilities that rely on naturally occurring subterranean caverns for storage are those that store crude oil or petroleum products.

These caverns are often created by methods like solution mining or excavation in salt deposits or other geological formations.

Salt deposits are dissolved with water to produce storage capacity in salt cavern-based storage facilities.

In the case of salt cavern-based storage facilities, the storage space is created by dissolving salt deposits with water.

The process involves pumping water into the geological formations with large salt deposits, which dissolves the salt and creates caverns.

Once the brine (water with dissolved salt) is pumped out, the space can be used to store crude oil or other petroleum products.

Advantages offered

Secure and safe: They are naturally well-sealed, providing a secure and impermeable barrier against liquid and gaseous hydrocarbons.

Impermeable: This inherent sealing property makes them suitable for long-term storage of oil, minimizing the risk of leaks or environmental contamination.

Efficient pumping: Furthermore, cavern-based storage facilities often have high injection and extraction rates, allowing for rapid and efficient operations.

Huge capacity: The large volume capacity of caverns enables significant storage capacity, making them ideal for strategic oil reserves intended to address supply disruptions or emergencies.

Strategic asset: Countries build strategic crude oil reserves to mitigate supply disruptions and ensure energy security during global supply shocks and emergencies.

Examples of Salt Cavern-Based Storage

US Strategic Petroleum Reserve: The US has the world’s largest emergency oil storage, with storage caverns created in salt domes along the Gulf of Mexico coast. It has a capacity of around 727 million barrels.

Salt caverns for other purposes: Salt caverns are also used for storing liquid fuels, natural gas, compressed air, and hydrogen in various parts of the world.

Potential for such storage in Rajasthan

Rajasthan’s conducive conditions: Rajasthan, with abundant salt formations, is seen as a favorable location for developing salt cavern-based strategic storage facilities.

Previous plans and current renewal: Earlier plans for a strategic oil reserve in Bikaner did not materialize, but the exploration of salt cavern-based storage in Rajasthan can be seen as a renewed proposal.

Infrastructure suitability: The presence of a refinery in Barmer and existing crude pipelines in Rajasthan make the infrastructure conducive for building strategic oil reserves.

Importance of technology access: Previously, no Indian company possessed the necessary technical expertise for building salt cavern-based strategic hydrocarbon storage.

RBI issues draft on Cybersafety for PSOs

The drafted Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators (PSOs) have been made public by the Reserve Bank of India.

What are PSOs, or payment system operators?

An organisation in charge of running a payment system is known as a payment system operator.

The PSO uses certain operating models to deliver services.

They generally delegate their payment and settlement-related tasks to different other organisations.

PSOs include things like Google Pay (and other apps), the Clearing Corporation of India, the National Payments Corporation of India, cards payment networks, cross-border money transfers, ATM networks, prepaid payment instruments, white label ATM operators, instant money transfers, trade receivables discounting systems, and the Bharat Bill Payment System, among others.

Examples of PSOs include: Google Pay (and other apps), Clearing Corporation of India, National Payments Corporation of India, Cards Payment Networks, Cross border Money Transfer, ATM networks, Prepaid Payment Instruments, White Label ATM Operators, Instant Money Transfer, and Trade Receivables Discounting System, Bharat Bill Payment System etc.

Key points from the draft

(1) Governance Mechanisms:

The draft emphasizes the need for robust governance mechanisms to manage cybersecurity risks effectively.

It covers information security risks and vulnerabilities that PSOs should address.

PSOs are expected to establish and maintain a comprehensive cybersecurity framework.

(2) Baseline Security Measures:

The draft specifies baseline security measures to be implemented by PSOs.

These measures are designed to protect digital payment systems from cybersecurity threats.

PSOs must implement controls related to data security, access controls, incident response, and business continuity planning.

(3) Resilience to Cybersecurity Risks:

The directions aim to ensure that PSOs are resilient to both traditional and emerging information systems and cybersecurity risks.

PSOs are required to conduct periodic risk assessments and implement appropriate controls to mitigate identified risks.

The draft emphasizes the importance of continuous monitoring and review of cybersecurity measures.

(4) Safeguarding Digital Payment Transactions:

The focus of the directions is to enhance the security of digital payment transactions.

PSOs must implement strong authentication mechanisms, encryption standards, and secure communication protocols.

The draft highlights the need for robust fraud monitoring and reporting mechanisms