29 May 2024

• Polity: The Supreme Court stayed a hotel project in Uttarakhand's Kumaon Himalayas, citing EIA violations and inadequate environmental clearance.
• Polity: The Supreme Court reiterated that manifesto promises do not constitute corrupt practices under the RPA, 1951.
• SIDS: The Fourth International Conference on Small Island Developing States (SIDS4) began in Antigua and Barbuda, with India participating.
• Environment: Kerala announced restrictions on eucalyptus cultivation on forest-adjacent lands due to invasive spread and groundwater impact.

GS area: Environment (EIA, Governance)

The Supreme Court stayed the construction of a hotel project in Kumaon, Uttarakhand, citing violations of the Environment Impact Assessment (EIA) Notification, 2006.

• EIA Notification, 2006: Issued under the Environment Protection Act, 1986 (EPA). Mandates environmental clearance (EC) from the Ministry of Environment, Forest and Climate Change (MoEFCC) or State Environment Impact Assessment Authorities (SEIAAs) before undertaking specified construction and industrial activities.
• Project categories: EIA Notification categorises projects as Category A (central clearance) and Category B (state-level clearance, with B1 requiring full EIA and B2 requiring only Form I scrutiny). Hotel/resort projects in ecologically sensitive areas are typically Category B1.
• Single-window clearing concern: The Court noted concerns that the "single-window clearance" system was being used to fast-track approvals without adequate EIA scrutiny, defeating the purpose of the notification.
• Uttarakhand's eco-sensitivity: Uttarakhand has several Eco-Sensitive Zones (ESZs) around National Parks and Wildlife Sanctuaries. Construction within 10 km of Protected Areas requires special scrutiny. Large-scale tourism infrastructure has been linked to landscape fragmentation and slope instability (the 2013 Kedarnath disaster context).
• Public Trust Doctrine: The SC has applied this doctrine (originating in M.C. Mehta vs Kamal Nath, 1997) to hold that natural resources are held in trust by the state for the public, and cannot be alienated for private commercial benefit without adequate justification.

Static linkage: EIA Notification 2006, EPA 1986, eco-sensitive zones, public trust doctrine.

GS area: Polity (Elections, Judicial Decisions)

The Supreme Court's bench examining election manifesto promises and the "freebies" debate delivered its analysis.

• Zameer Ahmed Khan case (Karnataka): A petition challenged the Congress party's manifesto promises of Rs 2,000 per month to women (Gruha Lakshmi), free bus travel, free electricity up to 200 units, etc., alleging they constituted bribery under Section 123 of the RPA, 1951.
• SC's ruling: Promises in manifestos are policy announcements directed at all voters, not personal gratifications directed at specific individuals. Section 123 of the RPA targets specific acts of bribery (cash, gifts to individuals to vote in a particular way), not policy commitments.
• Subramaniam Balaji case (2013): The SC had earlier ruled similarly, that manifesto promises are not corrupt practices. The 2024 ruling reaffirmed this.
• ECI's Model Code of Conduct: The MCC requires parties to explain how they plan to finance promises, but cannot ban them. The SC directed the ECI to develop a framework for evaluating the fiscal feasibility of promises.
• Distinction: Distributing cash or liquor to individual voters before voting (Section 171B IPC) is a corrupt practice. Announcing a policy of cash transfer to all eligible citizens in a manifesto is not.

Static linkage: RPA 1951, Section 123, election law, freebies debate, MCC.

GS area: International Relations (Environment, Global Governance)

The Fourth International Conference on Small Island Developing States (SIDS4) began in St. John's, Antigua and Barbuda.

• SIDS: Small Island Developing States is a UN designation covering 39 islands and 39 low-lying coastal developing states across three regions: Pacific (14), Caribbean (16), and AIMS (Africa, Indian Ocean, Mediterranean, South China Sea: 9 states).
• India's SIDS: India is not a SIDS but has Indian Ocean neighbours (Maldives, Sri Lanka, Mauritius) that are SIDS. India is a development partner.
• SAMOA Pathway: The Accelerated Modalities of Action (SAMOA) Pathway is the primary framework for SIDS sustainable development, adopted at SIDS3 (2014, Samoa). It covers sustainable ocean development, climate change, disaster resilience, and energy.
• GEF support: The Global Environment Facility pledged approximately USD 1.9 billion for SIDS over the next cycle. GEF channels funds for climate, biodiversity, desertification, chemicals, and land degradation.
• Key SIDS vulnerabilities: Sea-level rise (existential threat for Tuvalu, Kiribati, Maldives, Marshall Islands), coral bleaching, ocean acidification, extreme weather events, and freshwater scarcity.
• Maldives specificity: Maldives averages 1.5 metres above sea level. Most SIDS states have declared climate change an existential issue. The 1989 Maldives UN speech by President Gayoom is a landmark moment in climate diplomacy.

Static linkage: SIDS, SAMOA Pathway, GEF, climate vulnerability.

GS area: Economy (Monetary Policy, Capital Markets)

The RBI's record surplus transfer of Rs 2,10,874 crore (announced 22 May, following up the 24 May Central Board approval) had measurable bond market effects visible through 29 May.

• 10-year G-Sec yield: Fell to approximately 6.97 per cent, a 14-month low. Bond prices and yields move inversely: when demand for bonds rises (or supply falls), prices rise and yields fall.
• Mechanism: The central government's fiscal deficit target is a fixed amount. If RBI surplus is larger than budgeted (Budget 2024-25 assumed Rs 1 lakh crore RBI dividend), the government borrows less from the market. Less G-Sec supply means existing bonds become more valuable and yields fall.
• Impact on corporate bonds: G-Sec yields serve as a benchmark. Lower G-Sec yields generally reduce corporate bond yields as well, lowering borrowing costs for companies.
• RBI's Open Market Operations (OMOs): The RBI also influences yields through OMOs (buying G-Secs from the market to inject liquidity, lowering yields). The surplus transfer provides an alternative channel.
• Fiscal deficit target FY2025: The interim Budget (February 2024) set the fiscal deficit target at 5.1 per cent of GDP for FY2024-25. Full Budget was due in July 2024.

Static linkage: G-Sec market, RBI surplus, fiscal deficit, bond-yield relationship.

GS area: Environment (Biodiversity, Forests)

Kerala's state government, through the Kerala Forest Development Corporation (KFDC), announced restrictions on eucalyptus cultivation near forest boundaries.

• Eucalyptus concerns: Eucalyptus (primarily Eucalyptus globulus, Australian native) is widely planted in India's afforestation programmes due to rapid growth. However, it is considered invasive in many parts of India.
  • Water consumption: Eucalyptus is known to draw large quantities of groundwater (allelopathic and hydrological impact), reducing water table in surrounding areas.
  • Biodiversity: Eucalyptus monocultures support very few native species and can suppress native understorey vegetation.
  • Soil: Acidifies soil over time and contributes to leaf litter that decomposes slowly.
• KFDC: The Kerala Forest Development Corporation manages production forestry (teak, eucalyptus) in Kerala. The restriction targets KFDC-managed eucalyptus plantations adjacent to natural forest.
• Policy context: Several states (Odisha, Tamil Nadu) have removed eucalyptus from afforestation lists. The National Afforestation Programme under the Ministry of Environment promotes native species.
• NCERT context: Class 11 NCERT biology discusses eucalyptus as an example of invasive species in afforestation programmes in India.

Static linkage: Invasive species, afforestation policy, Kerala forests.

• Zimbabwe ZiG analysis: Economic analysts noted that while ZiG (Zimbabwe Gold) was backed by gold, the credibility challenge was whether Zimbabwe could maintain adequate gold reserves against its money supply. The 2008 hyperinflation was partly driven by money printing against insufficient reserves.
• I4C cybercrime data: The Indian Cybercrime Coordination Centre (I4C) released data showing Southeast Asian scam compounds (in Myanmar, Laos, Cambodia) accounted for 46 per cent of financial fraud complaints in India. Rs 1,776 crore lost in the first 4 months of 2024 to online trading and investment scams.
• Lok Sabha Phase 7 approaching: The final phase (Phase 7, 57 constituencies) was scheduled for 1 June 2024. Several states would vote for the first time in the 7-phase cycle (e.g., Punjab, all remaining UP seats, Chandigarh).