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EDITORIAL TODAY (ENGLISH)

In this section, we are presenting our readers/aspirants compilation of selected editorials of national daily viz. The Hindu, The live mint,The Times of India, Hindustan Times, The Economic Times, PIB etc. This section caters the requirement of Civil Services Mains (GS + Essay) , PCS, HAS Mains (GS + Essay) & others essay writing competition.

 

1. Roads, rail & smarts: Contractual clarity and flexibility key to making National Monetisation Pipeline viable

                                                                                                      Sustainable financing of infrastructure projects in India has triggered much debate over the last two decades. Over time and across governments, there are two strands that have endured. Getting private money with a long-term horizon is essential as governments don’t have the fiscal space to do it on their own. And, the quantum of private money that may come in is influenced by the extent to which infrastructure financing is insulated from political risks.

GoI has launched the National Monetisation Pipeline (NMP), which aims to monetise assets without transferring ownership. The goal is to raise Rs 6 lakh crore over four years. To put it in context, it’s a little less than the Rs 6.45 lakh crore PSUs contributed towards capital expenditure in GoI’s budget for 2020-21. Perhaps, to mitigate political risks, NMP classifies land and buildings as non-core assets. That leaves mainly roads, railways, airports and pipelines that are already built as the core assets that will be monetised. NMP resource mobilisation rests mainly on roads (27%) and railways (25%) to mop up resources.

The key to success lies in the way the deals are structured. Basic models here are not new. The main model envisages a contract between GoI and a private entity to operate an asset for a specified period. Among the better known examples are the PPPs in 2006 of New Delhi and Mumbai airports under an operate, maintain and develop model. Another successful model is the one used in 2018 for national highways called operate, maintain and transfer. The alternative model, which is also in use, mimics a mutual fund. Power

Grid Corporation, for example, raised funds this year for earmarked projects through an Infrastructure Investment Trust IPO.

Going forward, the success of NMP depends on how it navigates two crucial issues. As ownership is not being transferred, GoI will retain oversight through the contract period. The contract, however, needs to be flexible enough to make it attractive for a private entity. Finding the balance within a government framework has been challenging in the past. Another challenge is creating a regulatory framework to deal with a monopoly, which is something that will happen in the railway projects under NMP. Other than these two main challenges, contracts for entirely new areas such as India’s iconic JLN Stadium in New Delhi will enter uncharted territory. NMP represents an alternative to outright sale of assets. Its success will depend on execution.

2. In free fall: On Lebanon and its sectarian politics

Unless Lebanon sets aside sectarian politics, it will be unable to have a stable government

Lebanon, which has been battling multiple crises for the last couple of years, is on the brink of an economic collapse. The meltdown that forced the country to default on its bonds in 2019 for the first time since its independence in 1943 was aggravated by last year’s Beirut port blast. The explosion that killed over 200 people and wounded about 7,000 others on August 4, 2020 is estimated to have caused damage worth $15 billion. The blast has also deepened the country’s political crisis as Lebanon has been ruled by a caretaker government ever since. The Mediterranean country is now reeling under a severe economic downturn, medicine, food and fuel shortages and rising crimes. Recently, its central bank stated that it could no longer finance fuel imports at subsidised rates citing depleted reserves. Fuel shortages have led to chaotic scenes across the country. Last week, at least 28 people were killed in the country’s north when a fuel tank exploded while locals were scrambling for its fuel. UNICEF has warned that millions of Lebanese are facing a severe water shortage. The economic crisis has pushed more than half the population into poverty, while the currency value has fallen by 90%. According to the World Bank, Lebanon’s GDP per capita fell by 40% in dollar terms between 2018 and 2020, while real GDP contracted by 20.3% in 2020. The Bank assesses that even with quick reforms, it will take years before the economy gets back to its pre-crisis size.

Since the Beirut blast, President Michel Aoun appointed three Prime Minister-designates. Two of them stepped down after having failed to form a government. According to Lebanon’s Constitution, the President should be a Maronite Christian, the Prime Minister a Sunni, and the Parliament Speaker a Shia. Political parties are divided largely along sectarian lines. The PM-designates, who were Sunni politicians or technocrats, often failed to bring together the country’s different political factions, including that of President Aoun. In late July, former Prime Minister Najib Mikati was tasked with forming the next government. He is yet to conclude talks with other political blocs. With the country facing a severe fuel shortage, Hezbollah, the powerful Shia militia-cum-political party, has moved to import fuel directly from Iran. Hezbollah says it is trying to ease the country’s fuel situation while its opponents say the move is aimed at drawing Lebanon further into the Iranian orbit and could be counterproductive as oil deals with Iran could attract sanctions from the U.S. Lebanon’s politicians have sought fresh loans from the IMF, but the fund will release money only if the government commits itself to reforms. For that, Lebanon has to form a government first. Lebanon’s political elites should realise that the country is facing a once-in-a-century crisis, set aside their sectarian politics, and come together to form a stable government. If not, nothing can stop the country’s free fall.

3. Caste counts: On census and partisan political gains

A vision for a just India, and not partisan political gains, should inspire a fresh census

The clamour for a fresh caste census is getting louder in the country. Bihar Chief Minister Nitish Kumar led a delegation of 10 political parties of the State to meet Prime Minister Narendra Modi on Monday. No political party in the country has publicly opposed the demand as yet, and most have supported the call. Mr. Modi listened to the delegation but did not open his mind on the topic. Predictably, there will be more political mobilisation on the issue. The Bharatiya Janata Party has the advantage of being in the saddle and could time an announcement best suited for itself. The last time India’s population was enumerated on the basis of caste was in 1931, when it was under colonial rule. There is a strong argument that the colonial census was about creating and reinforcing caste and religious categories in India rather than recording them in a benign manner. Effective governance requires robust data on the governed. The creation of categories is itself a political act. Indian politics and the governance structure are all premised on categories that were firmed up during colonialism. But the salience of caste as the fundamental marker of identity for an Indian has only grown since Independence.

As the democratisation of society deepens, questions are being raised regarding the status of Dalits, tribal communities and a large section of the population that is characterised in the Constitution as Socially and Educationally Backward Classes. Political representation of these communities has increased and their participation in government jobs has risen. It is assumed that particular groups within each category have benefited disproportionately from political and job reservations, and there are demands for sub-quotas. Many communities are demanding inclusion in one category or the other. Some communities are feeling short-changed by the affirmative action steps of the state. With the role of the Government as a big employer diminishing, there is a demand for affirmative action in the private sector. All these questions are being debated without adequate and reliable data, leading to conflicting and often misleading claims. Supporters of a caste census cite these reasons, while sceptics fear it will only widen social rifts. They also point to the multitude of practical problems such an exercise will encounter. What is not debatable, however, is the fact that inequitable distribution of power and wealth endangers the stability of anysociety. Partisan political gains should not be the motivation for a fresh census. A renewed vision for a just and united India, where all divides are reduced must guide the discussion on a caste census.

4. Oil palm plantations: Don’t ignore the environmental lens

While there is an economic case for pushing for oil palm, the government must learn from the experiences in Sumatra, Borneo and the Malay Peninsula where oil palm plantations have eliminated pristine forests and pushed out wildlife. A rapid change in land use has also left a deep social impact

On August 19, the Union Cabinet approved a new ₹11,040-crore National Mission on Edible Oils-Oil Palm to boost domestic production. It has identified the Northeast and the Andaman and Nicobar Islands (ANI) for the project due to their favourable rainfall and temperature. On Monday, a report said that the Cabinet clearance for the project came in the face of objections raised by India’s top forestry research institute (Indian Council of Forestry Research & Education) against introducing oil palm in biodiversity-rich areas — and in the absence of a detailed study it had proposed.

 

 

 

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