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The Genetic Engineering Appraisal Committee (GEAC) under the Union Environment Ministry has approved seed production “prior to commercial release” of India’s first indigenously-developed transgenic hybrid mustard.
It opens up possibilities for India’s first genetically modified (GM) food crop by farmers amid opposition from green groups and the so-called swadeshi lobby affiliated to the ruling party.
The country’s regulator for GM organisms, at its meeting on October 18, recommended the “environmental release” of the transgenic mustard hybrid DMH-11, developed by the Centre for Genetic Manipulation of Crop Plants (CGMCP) at Delhi University. Whether the GEAC’s green signal would also tantamount to final government clearance is, however, not clear at this point.
DMH-11 contains two alien genes isolated from a soil bacterium called Bacillus amyloliquefaciens that enable breeding ofhigh-yielding commercial mustard hybrids.
Proponents of the GM technology-based crop say it is necessary for boosting domestic oilseed and vegetable oil production. India annually produces only 8.5-9 million tonnes (mt) of edible oil, while importing 14-14.5 mt that entailed a record foreign exchange outgo of $18.99 billion in 2021-22 (April-March).
India has until date approved GM breeding technology only in cotton. Previous attempts at commercial release of GM brinjal were foiled by environmental activists.
Even with respect to the transgenic mustard, the GEAC, following a meeting on May 11, 2017, had decided that matters related to its environmental release be “kept pending for further review”.
It is not clear at this point whether the GEAC’s green signal amounts to final clearance by the government. But the field trials could open up the possibility of the cultivation of India's first genetically modified (GM) food crop by farmers amid opposition from green groups and the so-called swadeshi lobby.
Mustard is a largely self-pollinating crop, which makes development of hybrids (which typically yield more than normal varieties) difficult in the natural course.
Print Lakshmi, Ganesh images on currency notes, Kejriwal tells Centre (Page no. 3)
(GS Paper 3, Economy)
Delhi Chief Minister Arvind Kejriwal Wednesday appealed to the Union government and the Prime Minister to print images of Goddess Lakshmi and Lord Ganesh on new currency notes for the country’s “economic prosperity”, inviting a barrage of criticism from rival parties, with the BJP calling it an attempt by the AAP to “hide its anti-Hindu face”.
Kejriwal’s remarks, which also drew criticism from the Congress and other Opposition parties such as the RJD, comes at a time the AAP is making a concerted push to emerge as a viable alternative in poll-bound Gujarat by projecting its administrative credentials and religiosity.
Our economy is not improving. We need to make multi-pronged efforts to develop our country. We need to build schools, hospitals, strengthen our power and roads infrastructure among others. But our efforts will bear fruit only when we have the blessings of God upon us.
Claiming that the idea occurred to him while performing Lakshmi puja during Diwali, he said, “I appeal to the Centre and the Prime Minister to retain the image of Mahatma Gandhi on our currency notes while printing the images of Goddess Lakshmi and Lord Ganesh on them as well.”
Responding to a question on the possibility of the minority communities opposing the proposal, Kejriwal pointed out that Indonesia, which is a Muslim-majority nation, prints currency notes with the picture of Lord Ganesh.
“If Indonesia can do this, why not us? No one should have any objection. This is about prosperity for all and the country’s affluence. Goddess Lakshmi symbolises prosperity and wealth,” he said, adding that he is not perturbed by allegations that the AAP was practising a brand of Hindutva politics.
Let allegations be levelled. But I have spoken to many people and everyone feels this is a good idea and should be implemented.
Govt. and Politics
Adopt Swadeshi, self-reliance to keep culture, art alive: PM (Page no. 7)
(GS Paper 1, History)
Prime Minister Narendra Modi on Wednesday emphasised the importance of promoting indigenous products and self-reliance for prosperity and said that by adopting them one can keep India’s traditional art, culture and civilisation alive.
Addressing a gathering to mark the 150th birth anniversary of Jain saint Vijay VallabhSurishwar through video conference, Modi said the message of Swadeshi and self-reliance is extremely relevant in present times.
The world is experiencing a crisis of terror and violence, and is looking for inspiration to break out of this vicious circle,” Modi said. “In such a situation, ancient traditions and philosophy of India, coupled with its power, is giving hope to the world today.
The path shown by him (Acharya Surishwar) and the teachings of Jain gurus is the solution to these global crises. Noting that religious tradition and indigenous products can be promoted simultaneously, the Prime Minister quoted Surishwar and said: “The prosperity of a country is dependent on its economic prosperity, and by adopting indigenous products, one can keep the art, culture and civilisation of India alive.”
The event was organised by the Union Culture Ministry to conclude the 150th birth anniversary celebrations of the Jain guru. As part of the occasion, a commemorative postage stamp and coin dedicated to Acharya Surishwarwas also released.
Recalling the beginning of the celebrations two years ago, Modi recalled the “privilege” he had had of unveiling the statue of Acharya Surishwar. “Today, once again, I am among you saints with the help of technology.
In November 2020, the Prime Minister had unveiled the ‘Statue of Peace’ in Rajasthan’s Pali to mark the Jain monk’s birth anniversary celebrations. The 151-inch-tall statue has been made from ashtadhatu (eight metals), with copper being the major constituent.
Editorial Page
A misleading exit (Page no. 10)
(GS Paper 2, International Groupings)
On October 21, the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, announced the removal of Pakistan from its “Grey List.” The announcement was expected.
The FATF, a 39-member inter-governmental organisation with its headquarters in Paris, was set up in 1989 by the Group of Seven (G7) countries with the aim of setting global standards for countering the menace of money laundering. Following the terror attacks on September 11, 2001, the objective of countering the financing of terrorism was added to the FATF’s mandate. Later, its objectives were further expanded to counter the financing of proliferation of weapons of mass destruction.
The FATF seeks to fulfill its three-pronged mandate by drawing up a list of guidelines. Known as the “FATF Recommendations” or “FATF Standards,” these are meant to “ensure a coordinated global response to prevent organised crime, corruption and terrorism.”
They encompass a range of domestic legislative, regulatory and enforcement actions, as well as international cooperation measures, that states are expected to adopt and implement.
The FATF and its associate, or regional, members such as the Asia Pacific Group on Money Laundering (APG) take their decisions on the basis of consensus. More than 200 countries and jurisdictions are committed to implementing the FATF’s recommendations.
The FATF monitors adherence to its recommendations by periodic evaluations of the anti-money laundering (AML), combating financing of terrorism (CFT) and proliferation financing (PF) regimes of member countries and jurisdictions which voluntarily submit to its monitoring.
Countries which exhibit “strategic deficiencies” in their AML/CFT/PF regimes are placed under a scheme of “increased monitoring” informally known as “Grey Listing.”
States placed under the “Grey List” are expected to swiftly put in place the requisite measures to address their deficiencies on the basis of “Action Plans” drawn up and evaluated through a process of consultation with the FATF.
States that exhibit “serious strategic deficiencies” in their AML/CFT/ PF regimes are placed under a “Black List” formally known as “High-Risk Jurisdictions subject to a Call for Action.”
Check and Play (Page no. 10)
(GS Paper 2, Polity and Governance)
Last week the Competition Commission of India imposed a penalty of Rs 1,337.76 crore on Google for “abusing its dominant position” in the Android mobile device ecosystem.
The Commission levied another penalty of Rs 936.44 crore on the firm for misusing its position vis a vis its Play Store policies.
In its orders, the CCI has accused the company of adopting “discriminatory practices” and indulging in “anti-competitive” behaviour.
The orders also lay out a set of corrective measures with regards to the Play Store policies and the Android ecosystem. This has far-reaching implications for the larger digital ecosystem in the country.
The CCI’s orders detail how Google was able to exploit the licensing of the Android operating system to its advantage. The company ventured into agreements such as the mobile application distribution agreement (MADA), which ensured that the “most prominent search entry points”, such as the search app and the chrome browser, are pre-installed on Android devices.
This “accorded significant competitive edge to Google’s search services over its competitors”, the CCI has said. Such arrangements also allowed the company to gain advantage over its competitors in adjacent markets — for instance, YouTube.
The CCI also said that Play Store policies mandated the exclusive use of Google Play’s billing system by app developers for both receiving payments and in-app purchases.
It pointed out that the UPI platform was placed at a disadvantage, with technological preference being given to Google Pay.
The company has informed the Commission that it had recently changed its policies that placed UPI at a disadvantage.India is not the only country where global tech giants have been caught in the regulatory glare.
Last year, in August, South Korea mandated choice in app store payments, effectively barring firms like Google and Apple from compelling app developers to use only their payment systems.
In India, the onus is on the Competition Commission to be vigilant against firms gaining unfair advantage by abusing their dominant market position.
Express Network
In a first, UNSC’s Counter Terrorism Committee to meet in India this week (Page no. 12)
(GS Paper 2, International Groupings)
India is hosting a special meeting of the United Nations Security Council’s Counter Terrorism Committee (CTC), which will discuss the overarching theme of ‘Countering the use of new and emerging technologies for terrorist purposes’. The panel will also discuss terror-financing through crypto-currency and use of drones in the new-age terrorism.
This will be the first such meeting of the UNSC-CTC in India since its establishment in 2001. The Permanent Representative of India to the UN serves as the Chair of the CTC for 2022.
Announcing this, Foreign Ministry Secretary (West) Sanjay Verma said, “A special meeting of the United Nations Security Council’s Counter Terrorism Committee (CTC) will be hosted in Mumbai and Delhi on October 28 and 29, 2022, respectively, on the overarching theme of ‘Countering the use of new and emerging technologies for terrorist purposes’.”
Use of emerging technologies for spreading terror is an issue of increasing concern across the globe. Mindful of the increasing threat posed by misuse of new and emerging technologies, as well as the many positive uses of technologies for countering terrorism, the Counter-Terrorism Committee proposes to hold this special meeting in India for the first time.
Foreign Minister S Jaishankar, along with representatives of the UNSC member states (15 current and incoming five), and senior UN officials will lay a wreath at the 26/11 memorial site in Mumbai and observe a minute’s silence in memory of the victims.
According to Verma, the meeting will begin with a ‘soft opening session and tribute to the victims of terrorism’ through a solemn ceremony at Hotel Taj Mahal Palace in Mumbai on October 28. The discussions will continue in Delhi on October 29.
The meeting is expected to be attended by British Foreign Secretary James Cleverly, along with his counterparts from Gabon and Ghana; and junior foreign ministers from UAE and Albania.
The delegation will be led by Vladimir Voronkov, Under Secretary General, UN Office for Counter Terrorism. During the sessions in Mumbai, statements in memory of victims will be read out by Jaishankar, and President of the UNSC, Foreign Minister of Gabon.
‘What has to be axiomatic is that Sri Lanka has to be mindful of India’s strategic interests’ (Page no. 13)
(GS Paper 2, International Relations)
Former Governor, Central Bank of Sri Lanka, Dr IndrajitCoomaraswamy analyses the island nation’s economic crisis and the debt restructuring needed for IMF to release the $2.9 billion package. The session was moderated by Nirupama Subramanian, National Editor, Strategic Affairs.
The gross external reserve level is just under $1.8 billion but $1.4 billion of that is a swap arrangement with the People’s Bank of China, which is not very usable.
You’ve got to have three months’ worth of import cover before you can draw on that, so the reusable reserves are only about $300 million. Of that about $100 million account for Special Drawing Rights Holdings with the IMF.
A little bit of gold is left after the sale of some gold stocks that the Central bank had. So actually it’s about $300 million that exists, and that’s about a week’s high imports.
On the positive side, the queues for fuel and cooking gas have largely disappeared and the 10-12 hour power outages are now down to just one or two hours. Food supplies are available.
Affordability is a significant challenge with food price inflation running over 90 per cent and our overall inflation close to 70 per cent but the rate at which inflation has been rising is coming down. The Central Bank governor is of the view that we are now near the peak of inflation.
Various measures, including the very aggressive tightening of monetary policy through an increase in the policy rates of the central bank by about 700 basis points, are beginning to take hold.
As you know, monetary policy becomes effective after a transmission lag. There also is a combination of policy measures and administration on the ground.
Import restrictions have banned everything except the most essential imports now. The currency depreciation, the interest rate increase, the tax increases – all of that is compressing demand and bringing down imports.
A QR-based rationing system has been brought in for fuel, which has been working quite effectively. There is a better balance between the demand and the supply of essential goods.
Amid PM’s Act East policy, Nalanda varsity to offer course on Bay of Bengal (Page no. 14)
(GS Paper 2, International Relations)
An introduction to the geographical significance as well as history, culture and art of the Bay of Bengal, an area of growing interest amid Prime Minister Narendra Modi’s Act East Policy, will now be available in the form of an academic course at Nalanda University (NU), which has carved out a role for itself in strengthening India’s linkages with East Asian countries.
The university, which now operates from its sprawling campus in Rajgir, Bihar, offers ‘Bay of Bengal: An Introduction’ as a certificate course from this September via online classes.
NU also has plans to make the course available offline in the future. The three-week course will include lectures from experts on navigation, fisheries, track-II policies and culture of countries involved with Bay of Bengal — India, Bhutan, Bangladesh, Nepal, Sri Lanka, Myanmar, Thailand, Indonesia, Malaysia, Singapore, China, USA, France, Germany, UK, Japan and Korea.
PM Modi had announced on August 30, 2018, during the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit’s opening session in Kathmandu, that the Centre for Bay of Bengal Studies would be established at NU.
The centre was inaugurated on September 29 by Saurabh Kumar, Secretary (East), Ministry of External Affairs, along with NU Vice Chancellor Dr Sunaina Singh.
The first batch of the ‘Bay of Bengal: An Introduction’ course has 19 participants who are from India, Indonesia, Colombia and China. Most of them are researchers and academics.
The course content includes the study of trade and commerce in the Bay of Bengal, traditional and non-traditional security, major sea lanes, energy and other resources, blue economy, sustainable development, coastal tourism, geopolitical competition, migration and refugees, piracy, pollution, traditions, art and architecture, religions, food, festivals, music, dance, clothing, movies and overall economic and ecological relevance of the bay today.
Ruishu Wang, who has been doing her masters from Yunnan University of China, is one of 19 participants of the Bay of Bengal course.
Explained Page
Understanding GM mustard (Page no. 15)
(GS Paper 3, Science & Technology)
On October 18, the Genetic Engineering Appraisal Committee (GEAC) under the Union Ministry of Environment, Forest and Climate Change recommended the “environmental release” of the transgenic hybrid mustard DMH-11 for seed production and conduct of field demonstration studies with respect to its effects, if any, on honey bees and other pollinating insects.
Hybridisation involves crossing two genetically dissimilar plant varieties that can even be from the same species. The first-generation (F1) offspring from such crosses tend to have higher yields than what either parent can individually give.
Such hybridisation isn’t easy in mustard, as its flowers have both female (pistil) and male (stamen) reproductive organs, making the plants largely self-pollinating.
Since the eggs of one plant cannot be fertilised by the pollen grains from another, it limits the scope for developing hybrids — unlike in cotton, maize or tomato, where this can be done through simple emasculation or physical removal of anthers.
By genetic modification (GM). Scientists at Delhi University’s Centre for Genetic Manipulation of Crop Plants (CGMCP) have developed the hybrid mustard DMH-11 containing two alien genes isolated from a soil bacterium called Bacillus amyloliquefaciens.
The first gene (‘barnase’) codes for a protein that impairs pollen production and renders the plant into which it is incorporated male-sterile.
This plant is then crossed with a fertile parental line containing, in turn, the second ‘barstar’ gene that blocks the action of the barnase gene.
The resultant F1 progeny is both high-yielding and also capable of producing seed/ grain, thanks to the barstar gene in the second fertile line.
The CGMCP scientists have deployed the barnase-barstar GM technology to create what they say is a robust and viable hybridisation system in mustard.
This system was used to develop DMH-11 by crossing a popular Indian mustard variety ‘Varuna’ (the barnase line) with an East European ‘Early Heera-2’ mutant (barstar).
AAP wants Lakshmi-Ganesh on currency: who designs rupee notes and how? (Page no. 15)
(GS Paper 3, Economy)
Several AamAadmi Party (AAP) leaders, led by party chief Arvind Kejriwal, asked the government to put pictures of Goddess Lakshmi and Lord Ganesh on currency notes in order to bring “prosperity” to the country.
While the BJP — which accused the AAP of making “u-turns” in their approach to Hindu gods — and Congress — which said Kejriwal was the “B-team” of the BJP-RSS — fumed, it is interesting to recall the process of changing the design and form of Indian currency.
Changes in the design and form of bank notes and coins are decided by the Reserve Bank of India (RBI) and the central government.
Any change in design of a currency note has to be approved by the RBI’s Central Board and the central government. Changes in the design of coins are the prerogative of the central government.
The central bank internally works out a design, which is put before the RBI’s Central Board. Section 22 of The Reserve Bank of India Act, 1934, gives RBI the “sole right” to issue banknotes in India. Section 25 states that “the design, form, and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by the [RBI’s] Central Board.
The RBI’s Department of Currency Management — currently headed by Deputy Governor T Rabi Sankar — has the responsibility of administering the core function of currency management.
According to the RBI website, the Department addresses policy and operational issues relating to the “designing of banknotes; forecasting demand for notes and coins; ensuring smooth distribution of banknotes and coins throughout the country and retrieval of unfit notes and uncurrent coins from circulation; ensuring the integrity of bank notes”, etc.
If the design of a currency note has to change, the Department works on the design and submits it to RBI, which recommends it to the central government. The government gives the final approval.
Anti-trust cases against Google, how regulator decides fine (Page no. 15)
(GS Paper 2, Polity and Governance)
Over two weeks, the Competition Commission of India (CCI) has fined Google twice — for abusing its dominant position in the market with its Android mobile operating system (OS) and for anti-competitive policies in its in-app billing and payment processing.
Apart from levying a total fine of over Rs 2,000 crore, the anti-trust body has issued a slew of directions that could impact Google’s business.
On October 20, the CCI imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets with its Android system.
It also directed “Google to cease and desist from indulging in anti-competitive practices” and asked it to implement around 10 measures.
Android OS, which is a proprietary product of Google is licensed to those who manufacture devices. Google ties or bundles certain Google applications and services such as Google Chrome, YouTube, Google Search, etc. that are distributed on Android devices with other Google applications, services and/ or Application Programming Interfaces (APIs) of Google.
The device manufacturers are given a percentage of Google’s search revenue from their devices as consideration for pre-installation of Google apps. This brings down the costs for device manufacturers while also allowing Google to increase its user-base.
The case was brought by three informants who claimed to be “consumers of Android smartphones”, and not by device manufacturers themselves.
Section 4 of the Competition Act prohibits abuse of dominant position of an enterprise in the market. “Dominant position” means a position of strength enjoyed by an enterprise in the “relevant market” in India, which enables it to operate independently of competitive forces prevailing in the relevant market; or affect its competitors or consumers or the relevant market in its favour.
Citing data from IDC Centre for Consultancy & Research Pvt. Ltd, CCI stated that Android was a “dominant player” in the market — in the licensable smart mobile device OS in India, Android’s market share grew to 98.47% in 2018 from 35.4% in 2014.
Economy
IRDAI puts restrictions on cross-border reinsurers (Page no. 17)
(GS Paper 3, Economy)
Insurance regulator IRDAI has put restrictions on the operations of over 300 cross border reinsurers (CBRs) which are active in the Indian reinsurance market.
Among other things, CBRs will have to retain a minimum 50 per cent premium by way of premium deposit with the clients.
It will be the responsibility of the insurers to maintain this premium in a separate designated or escrow account as well as to invest such amount into Government of India securities. In the order of preference with which Indian general insurers can reinsure the business, CBRs are almost placed at the bottom. Before giving business to them, an insurer has to be declined by Indian reinsurers like GIC Re, foreign reinsurance branches (FRBs) and Lloyd’s and reinsurers who are present in IFSC (Gift City).
CBRs don’t have any offices in India and just have to register with the IRDAI to get business through brokers. They normally offer cheaper pricing than other reinsurers.
IRDAI said maximum overall cession limits allowed per CBR will be 10 per cent for CBRs with BBB rating, 17.5 per cent for rating BBB+ and up to A+ and 25 per cent for rating above A+.
On the other hand, the IRDAI has proposed to bring in major changes in the existing reinsurance regulations and has reduced the capital requirements of foreign reinsurance branches (FRBs) in India to Rs 50 crore from existing Rs 100 crore.
According to insurance industry observers, by putting more restrictions on the activities of CRBs and by relaxing norms for Indian FRBs, the IRDA wants these CRBs to set up operations in the country or at the IFSC.
Cross border reinsurers will have to retain a minimum 50% premium by way of premium deposit with the clients. It will be the responsibility of the insurers to maintain this premium in a separate designated or escrow account as well as to invest into government securities.
FRBs had earlier informed the IRDAI that for doing business in India, they have to invest in many things including bringing in substantial capital and comply with many regulations while the CBRs don’t have to do any such things which is not creating a level playing field among the players.