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Indus water system and Private Member’s Bills (PMBs) and its significance for the UPSC Exam? Why are topics like Fair and remunerative price (FRP), Hydrogen as a Fuel important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for May 02, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on May 02, 2025
Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students
How can India tap its natural hydrogen potential?
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS III - Environment & Ecology
Context:
For India, an economy in growth mode with aspirations for energy independence and a pledge to reach net-zero emissions by 2070, the exploitation and use of natural hydrogen offers a potentially game-changing opportunity. In an increasingly volatile world where national sovereignty, economic stability, and energy security become inseparable, tapping into this naturally occurring commodity could go a long way toward enhancing India’s strategic autonomy.
Read about:
Natural Hydrogen
Indian Solar PV mission
Key takeaways:
- India’s demand for hydrogen is expected to rise sharply from six million tonnes annually in 2020 to more than 50 million tonnes per year by 2070, in alignment with its net-zero emissions goal.
- A preliminary academic study, based on models of global geologic hydrogen availability, estimates that India might possess around 3,475 million tonnes of naturally occurring hydrogen.
- If this projection holds true, it could significantly reduce the need for industrial hydrogen production by shifting focus to tapping into natural hydrogen sources, potentially accelerating decarbonisation at reduced costs.
- Following recent discoveries of natural hydrogen in the Andaman region, it is crucial for stakeholders to develop indicative estimates that can guide policymakers and attract investor interest.
- Conducting a thorough geological assessment is vital. Such a study should consider the nature and distribution of source rocks, the presence of seals and traps, the size and commercial viability of potential accumulations, the risk of losses during migration, and the ease of access for exploration.
Key Challenges
- Extracting and exploring natural hydrogen poses several difficulties, including technological, economic, logistical, and safety concerns. The foremost challenge lies in accurately detecting and assessing underground hydrogen reserves—an area where methods are not yet as refined as those used in the oil and gas sector.
- Developing cost-effective and efficient extraction technologies tailored to hydrogen’s unique characteristics, such as its low molecular weight and high diffusivity, is equally important. Research is ongoing to create solutions that yield low-cost hydrogen.
- Safety remains a critical issue due to hydrogen’s high reactivity and permeability. Appropriate safety measures must include the use of hydrogen-resistant materials, including specialized metal coatings, advanced cement mixtures, and rubber fillers that prevent degradation.
Way Forward for India
- India can take cues from earlier initiatives like the Solar Radiation Resource Assessment (SRRA) Project under the National Solar Mission—supported by the German Agency for International Cooperation and the National Institute of Wind Energy—which established an extensive network of monitoring stations. A similar collaborative public-private framework can be designed to locate and evaluate potential hydrogen-rich regions.
- In the U.S., the ARPA-E program is funding innovative projects that go beyond finding trapped hydrogen. These initiatives explore techniques such as injecting water into certain rock types to generate hydrogen, or combining water with dissolved carbon dioxide to facilitate both hydrogen production and carbon capture through mineralization.
- India’s Oil and Gas sector, in collaboration with the Directorate General of Hydrocarbons, can reassess existing rock samples and consider drilling more exploratory wells, backed by financial support through grants or low-interest capital.
- Moreover, parts of the current natural gas pipeline infrastructure might be adaptable for hydrogen transport, subject to necessary safety upgrades. Developing cost-efficient, large-scale storage solutions—especially underground—will be essential.
- While natural hydrogen holds the promise of lower production costs, the broader economic viability depends on the ability to locate sizable and accessible reserves, reduce extraction expenses, and build necessary infrastructure.
- Focused exploration in high-potential zones, advancing cost-effective technologies, and establishing clear regulatory frameworks will be key to attracting investment and fostering a robust market
Follow Up Question
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Answer (A)
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- The Indus Waters Treaty (IWT) cannot be changed by one country acting alone. Article XII clearly states that ending the treaty requires a new agreement, formally ratified by both India and Pakistan.
- In a recent communication to Pakistan, India used the phrase “hold in abeyance,” a term not recognized under international law or referenced in the 1969 Vienna Convention on the Law of Treaties (VCLT), which serves as the primary legal framework for international treaties.
- According to Dr. Prabhash Ranjan, a professor at Jindal Global Law School, the VCLT uses the term “suspension,” which allows for temporarily halting the implementation of a treaty in whole or in part.
- Suspension differs from termination. Dr. Ranjan suggested that India’s use of “abeyance” likely referred to a temporary suspension rather than a complete withdrawal from the IWT.
- Article 62 of the VCLT provides that a treaty may be set aside if there is a “fundamental change of circumstances” compared to when it was originally signed. Though India has not joined the VCLT and Pakistan has signed but not ratified it, the International Court of Justice (ICJ), in the Fisheries Jurisdiction cases, recognized Article 62 as part of customary international law—meaning it is applicable even without formal ratification.
- India seems to be referencing this legal principle by claiming in its letter that significant changes in circumstances justify a reassessment of its treaty obligations. However, Dr. Ranjan noted that the ICJ has historically required a high bar for such claims.
- In the 1997 Gabcíkovo-Nagymaros case between Hungary and Slovakia, Hungary attempted to justify treaty termination by citing political shifts, economic changes, and environmental concerns.
- The ICJ dismissed these arguments, concluding that the changes did not directly impact the treaty’s central purpose of cooperative energy generation.
Implications for Pakistan
- Pakistan is heavily reliant on the Indus basin, with more than 80% of its agriculture and about one-third of its hydropower output depending on its waters.
- Despite this, experts argue that India currently lacks the infrastructure—such as large-scale water storage and widespread canal networks—needed to significantly restrict the flow of water from the western rivers.
- India’s hydropower facilities are mostly run-of-the-river types, which do not support major water storage.
- Nonetheless, the primary risk for Pakistan lies in the unpredictability of water flows, which could have serious consequences for its largely agriculture-based economy
1.With reference to the Indus river system, of the following four rivers, three of them pour into one of them which joins the Indus directly. Among the following, which one is such a river that joins the Indus direct? (2021)
(a) Chenab
(b) Jhelum
(c) Ravi
(d) Sutlej
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Answer (d)
In the Indus River system:
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Private Members’ Bills: A Diminishing Legislative Tool
- Private Members’ Bills (PMBs) serve as a legislative avenue for Members of Parliament (MPs) who do not hold ministerial positions to propose new laws. While most legislation in India is introduced by the government through its Ministers and Ministries, PMBs allow both ruling and opposition MPs to present legislation independently.
- Typically, Fridays during parliamentary sessions are allocated for the introduction and discussion of PMBs. This process remains one of the few channels through which MPs can act beyond strict party lines.
- Despite its democratic significance, the PMB mechanism has seen a steady decline in practical relevance. Parliamentary disruptions, early adjournments, and a growing emphasis on government priorities have reduced the scope of PMBs to largely symbolic gestures.
- Neglecting PMBs is not only a procedural shortcoming but also reflects a regression in democratic practice. Since Independence, only 14 PMBs have become law with presidential approval, with none clearing both Houses since 1970. During the 17th Lok Sabha (2019–2024), 729 PMBs were tabled in the Lok Sabha and 705 in the Rajya Sabha, but only two and 14, respectively, reached the discussion stage.
- In the 18th Lok Sabha, just 20 MPs have submitted PMBs thus far. During the inaugural and Budget sessions of 2024, 64 PMBs were introduced in the Lok Sabha, none of which were debated.
- Two Fridays in the Winter Session were lost to disruptions, while another was allocated for a general discussion on the Constitution. The first Friday of the Budget Session, typically set aside for private member business, was used for Union Budget discussions.
- Only one Friday witnessed any activity related to PMBs, and that too was limited to a single resolution. In the Rajya Sabha, 82 PMBs were listed, 49 introduced, but only one was discussed briefly before the House adjourned sine die.
- PMBs have traditionally given MPs a platform to address specific social concerns, community needs, or progressive policy ideas—regardless of their party allegiance. For instance, Supriya Sule of the Nationalist Congress Party introduced the ‘Right to Disconnect’ Bill in October 2019.
- The Bill aimed to grant workers the legal right to disengage from professional communication outside work hours, highlighting the impact of digital connectivity on personal life.
- Though the Bill didn’t advance, it ignited meaningful public debate on mental well-being, work-life balance, and labour rights in the digital era—showcasing how PMBs can introduce novel and thought-provoking issues into the national conversation.
- Institutional changes have also contributed to the marginalisation of individual legislative efforts. The 52nd Constitutional Amendment, which brought in the Anti-Defection Law via the Tenth Schedule, was intended to curb political instability but also curtailed MPs' ability—especially from the ruling party—to challenge or diverge from official positions.
- In such a tightly controlled legislative environment, PMBs offer a rare opportunity for lawmakers across the spectrum to present alternative policy ideas.
- Although Indian voters often support candidates based on party symbols, personal reputation, effectiveness, and constituency work play a significant role in electoral choices. MPs are not elected merely to echo party views but to represent the local and national concerns of their constituents.
- To restore the credibility of PMBs, Parliament must treat the time allotted for them as inviolable. The procedural rules should be amended to safeguard this slot from being overridden except under exceptional circumstances such as national emergencies. This reserved time must be consistently upheld to allow meaningful debate and legislative progress.
- Furthermore, a dedicated committee could be established to review PMBs for quality, constitutionality, and relevance. This committee might also recommend a priority list for debate based on public interest and bipartisan backing. Additionally, a streamlined procedure for PMBs with wide support or significant impact could be introduced to ensure timely consideration
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Answer (3)
Under Article 110 of the Indian Constitution, a Bill is considered a Money Bill if it contains only provisions dealing with:
The Contingency Fund of India is used for emergency or unforeseen expenditure, and money is withdrawn after approval. Appropriation refers to planned expenditure from the Consolidated Fund, not the Contingency Fund |
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The Statutory Minimum Price (SMP) for sugarcane is announced by the central government based on cultivation cost estimates provided by the Commission for Agricultural Costs and Prices (CACP). This is the base price that sugar mills are legally required to pay to sugarcane farmers. However, in several states such as Uttar Pradesh, Punjab, Haryana, Tamil Nadu, and Uttarakhand, state governments have historically announced their own State Advised Prices (SAPs)—typically set higher than the SMP—citing variations in production costs, yield levels, and demands from farmer organizations.
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These state governments argue that the SMP represents only the floor price and that it can be increased to safeguard farmers’ interests. Although termed "advisory," SAPs have been legally upheld as binding, requiring mills in those states to pay the declared SAP.
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Unlike Minimum Support Prices (MSPs) for crops like wheat or rice, where the government procures directly if market prices fall below the MSP, there is no direct government procurement of sugarcane. Sugarcane is purchased by sugar mills or khandsari units at prices that must not fall below either the SMP or the applicable SAP.
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The newly approved Fair and Remunerative Price (FRP)—the minimum price fixed by the government that sugar mills must pay for sugarcane—will be effective from October 1, 2025.
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According to an official statement from the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, the FRP for the 2025-26 sugar season (October to September) has been set at ₹355 per quintal for a basic sugar recovery rate of 10.25%. A premium of ₹3.46 per quintal will be granted for every 0.1% increase in recovery above this rate, and an equivalent reduction will apply for each 0.1% decrease.
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To ensure farmer protection, the government has also declared that no deductions will be made for sugar mills where recovery falls below 9.5%. Farmers supplying to such mills will receive a minimum of ₹329.05 per quintal during the 2025-26 season.
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The FRP increase is expected to incentivize more sugarcane cultivation at a time when sugar production is declining. As per the Indian Sugar and Bio-Energy Manufacturers Association, sugar output as of April 30 stood at 257 lakh metric tonnes (LMT), with total seasonal production projected at 264 LMT, significantly lower than 319 LMT the previous year.
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The official statement also noted that the cost of sugarcane production for the 2025–26 season is estimated at ₹173 per quintal. Therefore, the new FRP of ₹355 per quintal reflects a 105.2% increase over production costs, aiming to ensure fair returns for farmers
1. Bagasse can be used as biomass fuel for the generation of energy.
2. Molasses can be used as one of the feedstocks for the production of synthetic chemical fertilizers.
3. Molasses can be used for the production of ethanol.
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
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Answer (c)
Thus, statements 1 and 3 are correct, while 2 is incorrect |
• The 2015 amendments were a significant step towards positioning India as a global arbitration hub. The legal market, both domestic and international, showed great promise. Up until 2018, the market remained optimistic, with minimal judicial interference, suggesting that India was on a positive trajectory. However, despite repeated calls for legislation on third-party funding and allowing foreign lawyers to practice in India, these issues remained unaddressed. Legislative reforms regressed with each amendment in 2018, 2019, and 2021, culminating in the setbacks of the 2024 memorandum.
• In 2015, the Supreme Court acknowledged the practice of foreign law firms in a very limited scope. The Madras High Court’s ruling in the case of ‘AK Balaji v Government of India’ concluded that foreign firms could not practice in either litigation or non-litigation fields unless they complied with the Advocates Act and the BCI rules. Over 32 foreign law firms from countries such as the UK, the US, France, and Australia were involved as respondents. However, the court created an exception allowing foreign firms to advise clients on a temporary, “fly in and fly out” basis.
• The majority ruling, delivered by Chief Justice Sanjiv Khanna, along with Justices B R Gavai, Sanjay Kumar, and A G Masih, confirmed that courts have limited authority under Sections 34 and 37 of the Arbitration and Conciliation Act to modify arbitral awards. Justice K V Viswanathan dissented, expressing disagreement with the majority on certain points.
• In the ruling, the Chief Justice explained that the limited power granted to courts could be exercised when the award can be divided, allowing the invalid portion to be separated from the valid one. Courts may also correct clerical, computational, or typographical errors and adjust post-award interest under specific circumstances. Furthermore, the Supreme Court may modify awards using its powers under Article 142 of the Constitution, although this must be done with caution and within constitutional limits.
• Section 34 of the Arbitration Act governs the setting aside of arbitral awards, while Section 37 specifies the grounds for an appeal in an arbitral dispute.
• Justice Viswanathan argued that courts under Section 34 and those hearing appeals under Section 37 do not have the power to modify an award.
• He further contended that the power to modify an award is distinct from the power to set it aside, with each operating in separate legal domains. The inherent power under Section 151 of the Civil Procedure Code cannot be used to modify awards, as it conflicts with Section 34. Additionally, the doctrine of implied powers does not extend to modifying awards, and Article 142 of the Constitution cannot be used to override the specific provisions of statutory law.
• The five-judge bench was addressing a reference made by a three-judge bench in February 2024 regarding the ability of courts to modify arbitral awards.
Follow Up Question
1.What are the major changes brought in the Arbitration and Conciliation Act, 1996 through the recent Ordinance promulgated by the President? How far will it improve India’s dispute resolution mechanism? Discuss. (2015)
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: General Studies III: Effect of policies and politics of developed and developing countries on India’s interests
Context:
The United States and Ukraine Wednesday finalised a sweeping new agreement that will give Washington access to Ukraine’s vast reserves of critical minerals and natural resources, as Kyiv looks to secure future American support in its war against Russia
Read about:
What is critical minerals?
U.S.-Ukraine critical minerals agreement
Key takeaways:
• Ukraine is home to abundant mineral resources essential for the production of various products, ranging from advanced weapon systems to clean energy technologies like electric vehicles, as well as electronic devices and semiconductors. These minerals are not only scarce but also challenging to extract, which makes them highly valuable. Their significance is further heightened for the US and the West due to China’s large reserves of similar resources. The availability of these minerals is also a key factor behind Trump’s interest in purchasing Greenland.
• When discussing these resources, two important classifications emerge — rare earth elements and critical minerals. There are 17 rare earth elements, which include 15 Lanthanides (from atomic numbers 57, Lanthanum, to 71 on the periodic table), as well as Scandium (atomic number 21) and Yttrium (atomic number 39).
• Countries define minerals as ‘critical’ based on their strategic importance for economic development and national security, along with their relative scarcity. In 2023, India identified 30 such critical minerals.
• According to a report by Ukraine's Ministry of Environmental Protection and Natural Resources and the Ukrainian Geological Survey, Ukraine holds 22 of the 50 strategic materials deemed critical by the US and 25 of the 34 identified by the EU as essential. Notably, Ukraine holds a competitive edge in five key materials: graphite, lithium, titanium, beryllium, and uranium.
• The United States-Ukraine Reinvestment Fund marks a pivotal shift in the economic relations between the two countries. Although the specifics of the fund's structure are not fully disclosed, US officials describe it as a mechanism to enable the US to access Ukraine's valuable rare earth minerals, such as titanium, uranium, and lithium, while also attracting global investments to help rebuild Ukraine, which has been devastated by the ongoing conflict.
• This announcement comes at a crucial moment in the three-year war, as President Donald Trump, recently returned to office, has expressed growing frustration over the slow progress in ending the conflict. Trump, who has been critical of Ukrainian President Volodymyr Zelenskyy for not making sufficient concessions, stated that the new deal guarantees the US will “receive more from Ukraine than it has contributed.”
Follow Up Question
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Answer (B)
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Corporate Social Responsibility (CSR), as outlined by Investopedia, refers to a business framework that enables companies to operate in a way that is ethically sound and socially beneficial. It emphasizes accountability not just to internal stakeholders, but also to society at large.
Companies often adopt CSR initiatives through charitable giving, community service, and socially beneficial programs, which can simultaneously strengthen their brand image. Organizations that are socially responsible hold themselves to ethical standards that benefit both the company and its shareholders.
CSR practices are typically more prevalent among large, high-profile corporations. These companies, given their public visibility, are expected to lead by example in promoting ethical behavior across their industry.
Investopedia categorizes CSR into four primary forms:
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Environmental Responsibility: Companies strive to minimize their ecological footprint through practices like pollution control, recycling, resource conservation, or by offering eco-friendly products.
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Ethical Responsibility: This involves fair treatment of all stakeholders, including customers and employees. It includes equitable hiring practices, transparent investor communications, and ethical sourcing.
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Philanthropic Responsibility: Corporations engage in giving back to society through donations, supporting charitable events, or aligning with socially responsible suppliers and vendors.
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Financial Responsibility: For CSR to be meaningful, companies must allocate adequate funds to support environmental, ethical, and philanthropic goals. This may include investing in sustainable product development, diversity programs, or social impact initiatives.
In the Indian context, HDFC Bank led CSR spending with an investment of ₹945.31 crore, followed by Reliance Industries (₹900 crore), TCS (₹827 crore), and ONGC (₹634.57 crore).
The increase in CSR expenditure correlates with an 18% rise in the average net profit of companies over the last three years. Under the legal framework introduced in April 2014, eligible companies must allocate 2% of their average net profits from the preceding three financial years to CSR activities. This applies to firms with a net worth of ₹500 crore or more, a revenue of ₹1,000 crore or more, or a net profit of ₹5 crore or more.
As per Primeinfobase.com, the average net profit of 1,394 companies was ₹9.62 lakh crore in the latest year, an increase from ₹8.14 lakh crore in the previous year. Consequently, the required CSR spending rose to ₹18,309 crore. However, actual spending was slightly lower at ₹17,967 crore. The gap is attributed to unspent funds, with ₹2,329 crore being carried forward to future projects via the mandated Unspent CSR Account.
Education continued to be the top priority for CSR investments, attracting ₹1,104 crore, followed by healthcare with ₹720 crore. In contrast, contributions to areas like slum redevelopment, veteran support, and disaster management were minimal.
Compared to the previous year (based on data from 440 companies), spending on environmental sustainability saw the highest growth at 54%, while contributions to national heritage increased by 5%. Conversely, funding for slum development dropped by 72%, rural development by 59%, and support for armed forces veterans declined by 52%
Follow Up Question
1.With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: (2024)
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
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Answer (a)
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| Subject | Topic | Description |
| Polity | Municipalities | Municipalities |
| Polity | Emergency Provisions | Emergency Provisions |
| History | Medieval History | Harshavardhan |
| Environment | Protected Area | Protected Area |
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