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| Exclusive for Subscribers Daily: Gender Budget 2025 and President’s Rule for the UPSC Exam? Why are topics like Tremors and Earthquake and Sovereign Green Bonds (SGrBs) , Electronic Voting Machines (EVMs)important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for February 18, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on February 18, 2025
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How Budget 2025 empowers India’s cities as engines of economic growth?
For Preliminary Examination: Budget Document, Economic Survey
For Mains Examination: GS III - Indian Economy
Context:
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, emphasised urban development as one of the six domains for transformative reforms. This renewed focus on urban areas in the budget points to the government’s commitment to empowering cities as a vital component of India’s economic and social development.
Read about:
Urban Local Bodies (ULB)
Gender Budget 2024-25
Key takeaways:
Urban Challenge Fund and Its Role in City Transformation
- The budget introduced an Urban Challenge Fund, aiming to mobilize ₹1 lakh crore for urban development. This initiative will assess proposals in three categories: cities as economic hubs, innovative urban redevelopment, and water & sanitation projects.
- The fund will cover up to 25% of the cost for bankable projects, provided that at least 50% of the funding comes from alternative sources such as bonds, bank loans, or Public-Private Partnerships (PPPs).
- This initiative is closely aligned with the Smart Cities Mission and AMRUT and seeks to encourage innovative urban development and infrastructure enhancement.
Public-Private Partnerships in Urban Development
- The Urban Challenge Fund also emphasizes collaboration between Urban Local Bodies (ULBs) and private enterprises to implement urban development initiatives. A similar approach was adopted under the Smart Cities Mission, which encouraged private investment in citywide and area-based projects.
- By incorporating private sector involvement, the fund aims to strengthen the financial autonomy of ULBs, enabling them to generate independent revenue sources for urban projects.
- Currently, a large portion of ULB revenue depends on grants from central and state governments, as highlighted by PRS Legislative Research. Many ULBs face governance constraints, such as limited autonomy and incomplete devolution of responsibilities, which restrict their ability to generate independent revenue and often necessitate external financial support for infrastructure projects.
Revenue Sources of Urban Local Bodies (ULBs)
ULBs generate revenue primarily through tax and non-tax sources:
- Tax revenue includes property tax, professional tax, and entertainment tax.
- Non-tax revenue includes user charges (such as water supply and parking fees), license fees, rental income from municipal properties, and advertisement revenue.
For instance, during 2021-22, the Brihanmumbai Municipal Corporation (BMC) derived 19% of its revenue from taxes and 54% from user fees and charges, while the Greater Chennai Corporation (GCC) relied on 80% tax revenue. These revenue compositions vary across cities depending on their tax collection efficiency, pricing mechanisms for urban services, and other revenue-generating activities.
Larger cities with a broader tax base can generate more revenue, whereas smaller municipalities often depend on government grants. For example, in 2021-22, 57% of Kochi Municipal Corporation’s revenue came from grants, subsidies, and contributions. The Central Finance Commission’s (CFC) Performance Fund serves as an example of financial support received by ULBs, as seen in Kochi’s 2022-23 budget.
Mechanisms for ULBs to Raise Funds
- ULBs can tap into various financial markets to raise funds, with municipal bonds being one of the most effective tools. Ahmedabad Municipal Corporation was among the first in India to issue municipal bonds to finance water and sanitation projects.
- Following this, cities such as Indore, Pune, Rajkot, Greater Hyderabad, Ahmedabad, and Lucknow have also utilized municipal bonds for infrastructure development.
- Additionally, ULBs can obtain loans from financial institutions such as HUDCO and the World Bank for specific urban projects.
- The Urban Challenge Fund also promotes Public-Private Partnerships (PPPs) as a financing model. A review of PPP projects in India indicates that 5-10% of total PPP projects fall under urban infrastructure, including water-sanitation and transport. These partnerships help attract private investment, expertise, and innovation, thereby improving urban infrastructure and service delivery.
A Step Towards Sustainable Urban Development
The urban focus in the Union Budget 2025-26 represents a major push toward enhancing India’s cities as hubs of economic and social transformation. By prioritizing infrastructure investment, diversifying revenue sources for ULBs, and encouraging PPPs, the budget lays a strong foundation for financial independence and sustainable urban growth. With rapid urbanization shaping India’s future, these measures are crucial to making cities more livable, inclusive, and dynamic for their residents
Follow Up Question
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Answer (B)
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How tremors in Delhi are different from earthquakes in the Himalayan region?
For Preliminary Examination: Current events of national and international events
For Mains Examination: GS I - World Geography
Context:
Mostly, the tremors experienced in Delhi from time to time are from earthquakes that originate elsewhere, sometimes as far away as Afghanistan. Monday’s magnitude 4 earthquake was located in Delhi itself, somewhere close to the Dhaula Kuan area.
Read about:
What are tremors?
Difference between tremors and earthquakes
Key takeaways:
- Delhi is situated in a seismically active zone, making earthquakes in the region unsurprising. Over the past five years, several minor tremors, typically ranging in magnitude from 2 to 3 or lower, have been recorded in and around the city. These tremors are generally imperceptible to people but are detected by seismometers.
- According to India's official earthquake hazard map, Delhi falls under Zone 4, which is the second-highest classification in terms of earthquake susceptibility. This classification indicates that the city is expected to experience intensity levels equivalent to MSK-8 during an earthquake.
- The Medvedev-Sponheuer-Karnik (MSK) scale measures the intensity of an earthquake based on its impact rather than the energy released, which is represented by magnitude.
- In simpler terms, the MSK scale assesses how strongly an area is affected by an earthquake. The impact can vary even between locations that are equidistant from the epicenter due to differences in geological conditions.
- Being in Zone 4, Delhi is prone to significant structural damage in the event of a major earthquake. The most vulnerable areas in India fall under Zone 5, which corresponds to an intensity level of MSK-9 or higher.
- Delhi is part of the Aravalli-Delhi Fold Belt, a geologically active region stretching from southern and eastern Rajasthan to Haryana and Delhi. This belt is characterized by layers of rock that were folded and deformed by geological processes millions of years ago. The stress accumulated in these rock formations is occasionally released as earthquakes.
- Unlike the Himalayan region, where frequent seismic activity results from the collision of the Indian and Eurasian tectonic plates, the Aravalli-Delhi Fold Belt has become more geologically stable over time. Although tectonic activity in this region has significantly declined, some faults remain active, occasionally causing mild tremors.
- Geologists compare these occasional earthquakes to old scars that occasionally flare up. Historical geological processes shaped the region’s seismicity, but major activity has largely ceased.
- However, studies indicate that around 25 earthquakes with a magnitude of 2.5 or higher, including about five around magnitude 3.5, occur annually in and around Delhi.
- Recently, some residents reported hearing an unusual sound during an earthquake in Delhi, which was not commonly associated with previous tremors in the region. This led to speculation about the nature of the quake.
- In reality, earthquakes can produce sounds, though they are usually outside the range of human hearing.
- Since earthquakes generate energy waves that travel through the Earth, they can create low-frequency vibrations. While larger quakes may sometimes produce audible sounds, such occurrences are rare
Difference between tremors and earthquakes
Earthquakes are significant seismic events where the ground shakes due to the release of energy in the Earth's crust. They:
- Are larger in magnitude
- Involve the sudden movement of rock along a fault line
- Can cause major damage to structures and the landscape
- Are measured on the Richter or Moment Magnitude scales
- Often have noticeable foreshocks and aftershocks
Tremors are minor seismic events that:
- Are smaller in magnitude (typically less than 2.0 on the Richter scale)
- May be barely perceptible without instrumentation
- Usually cause little to no damage
- Can occur as:
- Foreshocks (before a major earthquake)
- Aftershocks (after a major earthquake)
- Independent minor seismic events
- Earth vibrations from other sources (volcanic activity, underground explosions)
What are sovereign green bonds? Why is demand for such bonds weak in India?
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS III - Economy
Context:
While green bonds help governments raise capital for clean energy and infrastructure, India’s issues have struggled to secure a meaningful ‘greenium’— lower borrowing costs typically associated with such bonds
Read about:
What are green bonds?
Why green bonds?
Key takeaways:
What Are Green Bonds?
- Green bonds are financial instruments issued by governments, corporations, and international financial institutions to raise capital for environmentally sustainable projects. These projects focus on reducing emissions or improving climate resilience.
- Green bonds generally offer lower yields compared to traditional bonds, ensuring investors that the funds will be directed toward eco-friendly initiatives.
- The difference in yield, referred to as the green premium or greenium, determines the cost advantage of these bonds. A higher greenium enables issuers to secure funds at reduced costs, making such investments more attractive.
- Investors in green bonds typically seek stable, long-term returns and may also be guided by internal or external mandates that require a portion of their funds to be allocated toward sustainable finance.
- Despite their advantages, green bonds form a relatively small segment of the debt market and overall climate finance. However, governments are enhancing reporting standards and introducing incentives to encourage greater investor participation.
Why Green Bonds?
- Sovereign Green Bonds (SGrBs) are green bonds issued by national governments, such as the Government of India, which introduced a framework for their issuance in 2022.
- According to this framework, "green projects" are defined as those that enhance energy efficiency, lower carbon emissions, promote climate resilience, and contribute to ecosystem restoration.
- Since 2022-23, India has issued SGrBs eight times, raising nearly ₹53,000 crore. Approximately 50% of these funds are allocated annually to the production of energy-efficient three-phase electric locomotives under the Ministry of Railways.
For the 2024-25 financial year, the revised allocations for projects eligible under SGrBs include:
- ₹12,600 crore for electric locomotive manufacturing
- ₹8,000 crore for metro infrastructure
- ₹4,607 crore for renewable energy projects, including the National Green Hydrogen Mission
- ₹124 crore for afforestation initiatives under the National Mission for a Green India
Why Is Investor Interest Low?
- Despite efforts to promote SGrBs, investor demand in India remains weak, making it challenging for the government to secure a greenium. Although regulations have been eased to encourage foreign investment, auctions have witnessed low participation, often leading to bonds being devolved to primary dealers.
- Globally, greenium has been observed at around 7-8 basis points, whereas in India, it remains limited to 2-3 basis points, reducing the attractiveness of SGrBs as a funding mechanism.
- One major concern is liquidity—green bonds in India tend to have small issue sizes, and many investors hold them until maturity, restricting secondary market activity.
- Additionally, the country lacks a well-developed ecosystem of social impact funds and responsible investment mandates, which are key drivers of green bond demand in international markets.
Why Does This Matter?
The government's inability to raise sufficient funds through SGrBs affects financing for eligible projects, increasing dependence on general revenue to compensate for funding gaps.
Initially, the projected funding requirement from SGrB proceeds for 2024-25 was estimated at ₹32,061 crore. However, due to challenges in selling these bonds at favorable yields, the revised estimate has been reduced to ₹25,298 crore. As a result, funding for grid-scale solar projects has been significantly reduced from ₹10,000 crore to ₹1,300 crore.
Follow Up Question
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Answer (D)
Thus, option D is NOT true regarding Green Bonds. ✅ |
What SC has told Election Commission on EVM data?
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS II - Indian Polity & Governance
Context:
The Supreme Court on Tuesday asked the Election Commission to make sure that the poll data stored in Electronic Voting Machines (EVMs) is not deleted while the EC carries out checking and verification of the burnt memory/microcontrollers of the EVMs and VVPATs
Read about:
What is Electronic Voting Machines (EVMs)?
What is the EC’s process for checking and verification?
Key takeaways:
During a hearing on a petition filed by the Association for Democratic Reforms (ADR)—which led to the Supreme Court’s April 2024 ruling—a bench comprising Chief Justice of India Sanjiv Khanna and Justice Dipankar Datta directed the Election Commission (EC) to ensure that no data is erased from Electronic Voting Machines (EVMs).
Representing ADR, advocate Prashant Bhushan contended that the EC's verification process was limited to conducting mock polls to check EVM functionality, whereas the petitioner sought a detailed examination of both the software and hardware to detect any possible manipulation. In response, the court instructed the EC to submit an affidavit outlining its procedure for verifying and checking EVMs. The next hearing was scheduled for March 3
EC’s Procedure for EVM Checking and Verification
- Following the Supreme Court's April 2024 ruling, the EC released its Standard Operating Procedure (SOP) for EVM verification in July 2024. Additionally, the EC introduced a charge of ₹40,000 plus GST per request for verification.
- As per the court directive, candidates who finished second and third in any constituency could request verification of up to 5% of EVMs and Voter Verifiable Paper Audit Trails (VVPATs) per Assembly segment.
- According to the EC’s technical SOP, mock polls involving up to 1,400 votes per machine are conducted, and the results are cross-checked with the VVPAT slips. If the results align, the machine is considered to have passed the test.
- EC officials clarified that EVM and VVPAT data is retained for 45 days, as this is the window within which candidates can file an election petition. If a petition is filed, the concerned machines are secured and excluded from further elections until the case is resolved.
- If no petition is submitted within this timeframe, the data is erased, allowing the machines to be reused in future elections. The verification process can only take place after the 45-day period has elapsed.
- Explaining the reliance on mock polls for verification, the EC noted in its SOP that while laboratory-based verification methods exist for examining microcontrollers, conducting such checks in a public setting is different.
- The document stated that firmware verification in an open process could be performed by applying a large number of random test vectors and analyzing the corresponding results
Concerns Raised by ADR
- ADR, an independent election watchdog, criticized the SOP for not including provisions for a thorough examination of the microchips within EVMs and VVPATs. They argued that if a candidate requests verification, an engineer should inspect both the software and hardware of the machines to ensure their integrity.
- As per EC protocol, the checking process begins after 45 days, which is the period during which EVMs and VVPATs remain stored in case of election-related legal challenges.
- A total of 11 candidates applied for verification of EVMs and VVPATs used in the 2024 Lok Sabha elections and the Odisha and Andhra Pradesh Assembly polls. The EC reported that no discrepancies were detected during the verification process
Components of an EVM
An EVM typically consists of two main units:
- Control Unit (CU) – Managed by the presiding officer, it controls the polling process and stores vote data securely.
- Ballot Unit (BU) – Used by voters to cast their votes by pressing a button corresponding to their chosen candidate.
1.Consider the following statements: (UPSC CSE 2017)
1. The Election Commission of India is a five-member body.
2. The Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 3 only
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Answer (d)
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President's Rule (also known as State Emergency or Central Rule) is a provision in the Constitution of India that allows for the temporary suspension of a state government and the imposition of direct federal rule. Here are the key aspects:
Constitutional Basis:
- It's established under Article 356 of the Indian Constitution
- Part of the emergency provisions in the constitution
- Can be imposed if there's a breakdown of constitutional machinery in a state
How it Works:
- The state's Governor recommends to the President that the state government cannot function according to constitutional provisions
- The President then issues a proclamation taking over the state's administration
- The state assembly is either dissolved or kept in suspended animation
- The Governor acts as the President's representative, with actual administration carried out by centrally-appointed advisors
Key Features:
- Initially valid for six months, can be extended up to three years with parliamentary approval
- State powers are transferred to the central government
- The Parliament makes laws for the state during this period
- All executive decisions are taken by central government appointees
Historical Context: President's Rule has been imposed numerous times in various Indian states, sometimes controversially. After the S.R. Bommai case judgment by the Supreme Court in 1994, stricter guidelines were established to prevent its misuse for political purposes.
Safeguards:
- Must be approved by both houses of Parliament within two months
- Subject to judicial review by the Supreme Court
- Cannot be extended beyond three years
Article 356 of the Indian Constitution provides for the imposition of President's Rule in a state. Here are the key aspects:
Core Provisions:
- Allows the President to assume all or any functions of the state government if there's a "failure of constitutional machinery" in that state
- The President can declare that the powers of the state legislature will be exercisable by or under the authority of Parliament
- The President can make provisions for exercising functions normally performed by the Governor or other state authorities
Procedure for Invoking Article 356:
- Usually initiated by a report from the state's Governor
- The President must be satisfied that a situation has arisen where the state cannot be governed according to constitutional provisions
- The proclamation must be approved by both houses of Parliament within two months
- If approved, it remains valid for six months at a time
Limitations and Safeguards:
- Maximum duration is normally six months, extendable up to three years with parliamentary approval every six months
- After the S.R. Bommai case (1994), the Supreme Court established that the power under Article 356 is subject to judicial review
- The Court can invalidate the imposition if it finds the decision was based on irrelevant grounds or improper motives
1.Which of the following are not necessarily the consequences of the proclamation of the President’s rule in a State? (2017)
- Dissolution of the State Legislative Assembly
- Removal of the Council of Ministers in the State
- Dissolution of the local bodies
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
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Answer (b)
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| Subject | Topic | Description |
| Polity | Fundamental Duties | Fundamental Duties |
| Environment & Ecology | Biodiversity in India | Biodiversity |
| History | Modern Indian History | Constitutional Development in India |
| History | Modern Indian History | Peasants, Tribal and other movements |
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