13 April 2024

• Economy: India's disinvestment programme: FY 2023-24 target was revised to Rs 30,000 crore. The overseeing body is DIPAM.
• International Relations: India amends the Mauritius DTAA with a Principal Purpose Test to curb round-tripping.
• Health: India carries over 11 per cent of the world's hepatitis B and C burden, second only to China, per the WHO Global Hepatitis Report 2024.
• Security: Apple sends spyware alerts to iPhone users in India and 91 other countries flagging potential mercenary attacks using tools like Pegasus.
• Environment: The Khavda Solar Park in Kutch becomes the world's largest renewable energy park at 72,600 hectares.

GS area: Economy (public sector, fiscal policy)

India's disinvestment programme is managed by the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance.

Key facts:

• Definition: Disinvestment means the government reduces its ownership stake in public sector companies by selling shares.
• National Investment Fund (NIF): Established in 2005 to receive and deploy disinvestment proceeds for social sector and capital expenditure.
• Approaches:
  • Minority disinvestment: Government retains over 51 per cent.
  • Majority disinvestment: Government transfers control.
  • Complete privatisation: Government exits fully.
• Methods used: Initial Public Offerings (IPO), Follow-on Public Offerings (FPO), Offer for Sale (OFS), Strategic Sale, CPSE ETF.
• FY 2023-24 target: Revised down to Rs 30,000 crore from an original higher target. Actual receipts fell short due to market conditions.
• Cumulative receipts: India has raised Rs 4.48 lakh crore in disinvestment proceeds up to 2020.
• Notable recent cases: LIC IPO (3.5 per cent stake sold), Air India privatisation to Tata Sons, Concor and IDBI Bank sales in process.
• Strategic sector restriction: The government's policy defines four strategic sectors where a public-sector presence will be maintained (atomic energy/defence, transport/telecommunications, power/energy, banking/insurance). In all other sectors, PSEs will eventually be privatised or merged.

Static linkage: economy, public sector, fiscal policy.

GS area: Economy (international taxation), International Relations

India amended the Double Taxation Avoidance Agreement with Mauritius to add a Principal Purpose Test (PPT), a provision to deny treaty benefits when a transaction's main purpose is to exploit the treaty.

Key facts:

• Why Mauritius mattered: Mauritius historically levied no capital gains tax. Foreign investors routed funds through Mauritius holding companies to invest in India and claim exemption from Indian capital gains tax under the DTAA.
• Round-tripping: Indian money leaving India and returning via Mauritius to exploit the treaty. The PPT is the main tool to stop this.
• PPT (Principal Purpose Test): Treaty benefits are denied if it is "reasonable to conclude" that obtaining the benefit was one of the principal purposes of an arrangement.
• Status as of April 2024: Protocol signed but not yet ratified or notified by India's Income Tax Department.
• OECD/G20 BEPS Action 6: The PPT is a recommendation under the Base Erosion and Profit Shifting action plan to prevent abuse of tax treaties.

Static linkage: international taxation, India's foreign policy, investment.

GS area: Health, International Relations

India accounts for over 11 per cent of global hepatitis B and C cases, ranking second after China, per the WHO report.

Key facts:

• Types relevant for chronic disease: Hepatitis B and C cause chronic infection and can lead to cirrhosis and liver cancer.
• Other types: Hepatitis A and E cause acute illness and are transmitted through contaminated food and water. Hepatitis D only infects those already infected with B.
• Vaccines: A vaccine exists for hepatitis B (part of India's Universal Immunisation Programme). No approved vaccine exists for hepatitis C.
• Treatment: Hepatitis C is curable with direct-acting antiviral drugs. Hepatitis B is manageable but rarely cured.
• India's programmes:
  • National Viral Hepatitis Control Programme (NVHCP): Targets viral hepatitis B and C for treatment.
  • Universal Immunisation Programme includes HBV vaccine.
• World Hepatitis Day: Observed on 28 July each year.

Static linkage: health policy, international organisations, disease control.

GS area: Energy, Geography

The Khavda Solar Park in Kutch, Gujarat has been designated the world's largest renewable energy park.

Key facts:

• Location: Vighakot village, Kutch district, Gujarat, near the Pakistan border.
• Area: 72,600 hectares (about five times the area of Paris).
• Commissioned capacity: 2 GW operational; plans for 4 GW in the current financial year and 5 GW annually thereafter.
• Final target: 30 GW total generation capacity.
• Advantages: Abundant sunlight (one of India's highest solar irradiation zones), strong wind, barren non-agricultural land, and minimal displacement conflicts.
• Strategic location: Proximity to the Pakistan border raises grid security considerations that the government and security agencies are managing.

Static linkage: energy, physical geography, Gujarat.

GS area: Internal Security (cybersecurity)

Apple sent threat notifications to iPhone users in India and 91 other countries alerting them to potential mercenary spyware attacks.

Key facts:

• Mercenary spyware: State-sponsored or commercial spyware (like Pegasus, developed by Israel's NSO Group) designed to infiltrate mobile devices without the user's knowledge.
• Capabilities: Once installed, spyware can read all messages, listen to calls, activate the camera and microphone, and track location.
• Targets: Journalists, activists, politicians, and business leaders.
• Pegasus background: The Pegasus Project (2021), a global investigative effort, found Pegasus used against journalists and politicians in multiple countries including India.
• India: An SC-appointed technical committee investigated Pegasus use in India in 2022 and was unable to conclusively verify infections.
• Legal vacuum: India lacks a dedicated law on spyware. The IT Act 2000 and rules under it cover cyber intrusions generally but not state-sponsored spyware specifically.

Static linkage: cybersecurity, privacy, governance.

GS area: Economy, International Relations

The IMF's Global Financial Stability Report 2024 flagged cyberattacks as a growing systemic risk to the financial system.

Key facts:

• Extreme cyber losses: 2.5 billion dollars since 2020 from extreme cyber incidents affecting financial institutions.
• Attack frequency: Nearly doubled since the COVID-19 pandemic.
• India's rank: 10th in cybercrime globally.
• Common fraud in India: Advance fee fraud (asking victims to pay an upfront fee to receive a larger sum).
• Systemic risk concern: A major cyberattack on a central bank or payment system could freeze financial flows and trigger confidence crises.
• IMF context: The IMF was established at Bretton Woods in 1944 and headquartered in Washington, DC.

Static linkage: economy, cybersecurity, international organisations.

• Plastic Overshoot Day 2024: India's Plastic Overshoot Day falls on 23 April 2024. This is the date when India's plastic waste exceeds its waste management capacity for the year. The global date is 5 September.
• Financial Services Institutions Bureau (FSIB): Established in 2022 to appoint directors to state-owned banks and financial institutions. It replaced the Bank Board Bureau. FSIB is under the Department of Financial Services.
• Eurasian Otter first radio-tagged: The first Eurasian otter in India was radio-tagged at Satpura Tiger Reserve, Madhya Pradesh. The species was first sighted at Satpura in 2016. The radio-tag enables tracking of its range expansion into central India.