Context: RBI Governor Shaktikanta Das advocates for a specified framework for the group insolvency mechanism and a vibrant market for stressed assets in India to enhance the functionality of the Insolvency and Bankruptcy Code (IBC).

News:

• Legislative changes to establish appropriate principles for the group insolvency mechanism, addressing challenges like intermingling of assets, defining a 'group,' and handling cross-border aspects are suggested.
• Emphasis is placed on the absence of a robust market for stressed assets in the country, limiting prospective resolution applicants under IBC, even for regulated entities outside the IBC process.

Need of insolvency mechanism:

• Recovery rates under IBC stand at 32%, with creditors realizing Rs 3.16 lakh crore out of admitted claims of Rs 9.92 lakh crore as of September 2023.
• The IBC has led to a substantial behavioural shift, evident from the withdrawal of 26,518 applications for initiation of Corporate Insolvency Resolution Processes (CIRPs) till August 2023 but there are concerns about the time taken for resolution and the extent of haircuts in comparison to admitted claims.
• Data reveals delays in the resolution process, with 67% of ongoing CIRP cases surpassing the total timeline of 270 days, raising concerns about substantial erosion of asset value.
• Adjudicating Authorities express concerns about the conduct of the Committee of Creditors (CoC) in insolvency proceedings, highlighting issues such as lack of participation, coordination, and prioritization of individual interests over collective interests.

Insolvency

It is a state of financial distress in which a person or business is unable to pay their debts. Insolvency is when liabilities are greater than the value of the company, or when a debtor cannot pay the debts they owe. 

Context: The National Mission for Clean Ganga (NMCG), has assumed new powers under which it may now permit the discharge of treated sewage and effluent that conforms to the prescribed “norms” into the river, canal or water bodies.

News:

• The National Mission for Clean Ganga (NMCG), under the Ministry of Jal Shakti, issued a notification to amend the River Ganga (Rejuvenation, Protection and Management) Authorities Order, 2016.
• The amendment adds a new proviso in paragraph 6 of the 2016 order, granting NMCG powers to allow discharge of treated sewage into rivers or water bodies if it conforms to prescribed norms under the Environment (Protection) Act, 1986.
• The new provision permits NMCG to allow discharge of treated sewage into rivers after exploring options for direct reuse in purposes such as agriculture and industry.
• This contradicts existing provisions that prohibit the discharge of untreated or treated sewage into the River Ganga or its tributaries.
• Another proviso allows NMCG to permit the discharge of treated trade effluent into rivers or water bodies if it conforms to prescribed norms, after exploring options for direct reuse in agriculture and industry.

The National Mission for Clean Ganga

• It (NMCG) was established on August 12, 2011, as a society under the Societies Registration Act, 1860.
• It served as the implementation arm of the National Ganga River Basin Authority (NGRBA), constituted under the Environment (Protection) Act, 1986.
• NGRBA was replaced by the National Council for Rejuvenation, Protection, and Management of River Ganga in 2016.
• The primary objective of NMCG is to reduce pollution and facilitate the rejuvenation of the Ganga River.
• The Namami Gange program is a significant initiative of NMCG aimed at cleaning the Ganga.
• The mission seeks to achieve its goals by promoting intersectoral coordination for comprehensive planning and management, maintaining minimum ecological flow in the river, and ensuring water quality and environmentally sustainable development.
• The organizational structure includes a National Ganga Council, Empowered Task Force (ETF) on river Ganga, National Mission for Clean Ganga (NMCG), State Ganga Committees, and District Ganga Committees.
• The National Ganga Council is chaired by the Prime Minister of India, and the ETF is chaired by the Union Minister of Jal Shakti (Department of Water Resources, River Development, and Ganga Rejuvenation). NMCG plays a crucial role in implementing the mission's objectives.
• The State Ganga Committees and District Ganga Committees operate at the state and district levels, respectively, focusing on measures for preventing, controlling, and abating environmental pollution in the Ganga River.

Context: A petitioner seeking a kidney transplant died waiting for permissions to come through. While there are stringent rules for organ transplantation, the court has said that timelines must be followed in the true spirit of the transplant law.

Background:

• The Delhi High Court ruled on a plea from a retired Indian Air Force officer diagnosed with  kidney failure in 2017.
• By 2019, two hospitals had recommended a renal transplant for the petitioner.
• The Army Hospital in New Delhi rejected his transplant application, citing the non-availability of a "near relative" donor under Sections 2(i) and 9(1) of the 1994 Act.
• Section 2(i) defines a "near relative" as a specific set of family relations, and Section 9(1) requires the Committee's prior approval for organ removal and transplantation unless the donor is a "near relative."
• The petitioner, facing hypertension and chronic kidney failure, sought the transplant through a plea to the High Court in 2020.
• In February 2021, the HC directed the Authorisation Committee to decide on the petitioner's application within two weeks.
• However, by October 2021, the court learned that the petitioner had passed away before the Committee's decision.

The Transplantation of Human Organs and Tissues Act, 1994

• The 1994 Act in India regulates human organ and tissue transplantation, addressing both deceased and living donations.
• The law applies to healthcare providers and hospitals, imposing penalties for violations.
• Transplants can involve organs from deceased persons donated by relatives or living donors known to the recipient.
• Living donations are generally permitted from close relatives, including parents, siblings, children, spouses, grandparents, and grandchildren.
• Altruistic donations from distant relatives, in-laws, or long-time friends are allowed with additional scrutiny to prevent financial exchanges.
• Documentation, family trees, and pictures are required for living donations from close relatives, whether Indian or foreign.
• Unrelated living donations necessitate proof of a long-term association or friendship, examined by an external committee to prevent illegal dealings.
• Offering to pay for organs or engaging in organ trade can lead to a jail term of up to 10 years and a fine of up to Rs 1 crore.
• The Authorisation Committee plays a crucial role in overseeing the transplantation process.

Authorisation Committee

• The Authorisation Committee oversees and approves non-relative organ transplant procedures.It ensures ethical compliance and prevents illegal practices, particularly when organs are donated for reasons of affection or attachment.
• Section 9(4) states that the committee's composition is determined by the Central Government, and state governments or Union Territories must constitute one or more committees with nominated members.
• Section 9(5) mandates the committee to conduct a thorough inquiry during the transplant approval process, focusing on verifying the authenticity of the donor and recipient and preventing commercial motives.
• Section 24 empowers the Centre to make rules, subject to parliamentary approval, for various purposes of the Act, such as donor authorization, certification of brain-stem death, and preservation of removed human organs.

2014 rules

• Rule 7 of the 2014 Rules outlines the constitution of the Authorisation Committee and its role in conducting an inquiry and evaluation.
• Rule 7(3) mandates the Committee to ensure that non-relative transplant cases do not involve commercial transactions.
• Rule 7(5) allows expedited evaluation if a recipient is in critical condition and requires transplantation within a week, permitting the hospital to be approached for faster assessment.
• Rule 10 focuses on living donor transplantations, requiring joint applications from the donor and recipient.
• Rule 21 necessitates personal interviews by the Committee to determine the eligibility of applicants for living donor transplantations.

Recent ruling of the court

• The Centre argued that the Committee adhered to the prescribed timeline for decision-making under the 2014 Rules.
• The petitioner's counsel argued that the lack of a timeline for Committee interviews causes delays in deciding cases, leading to prolonged suffering for patients.
• The court agreed, emphasizing that all aspects, including interviews, form processing, and decision-making, must follow fixed timelines, as reflected in provisions like Rule 23(3) requiring a final decision within 24 hours.
• Despite urgency, the court found an absence of timelines in Rules 21 and 23 for pre-transplantation interviews, leading to delays and, in some cases, recipients passing away while awaiting decisions.
• The court noted that non-adherence to timelines resulted in extended waiting periods of 2 to 3 years in some cases, contradicting the intent of the 1994 Act and the 2014 Rules.
• The court suggested that the Committee should schedule interviews within 2 weeks after 4-6 weeks of receiving the application, facilitating meetings and conducting multiple interviews.
• The entire process, from submission to decision, should ideally not exceed 6 to 8 weeks, according to the court.
• The Delhi High Court has set a timeframe of 6-8 weeks for completing the process of organ transplantation from living donors. This decision aims to streamline and expedite the organ transplant process in India. The court's directive is in line with the laws governing organ transplantation in the country, which include regulations for the donation of organs after death.

Context: Accurate data is the first step in bringing down logistics costs in India. Accurate data is crucial for reducing logistics costs in India for several reasons:

• Improved decision-making: Accurate data enables logistics managers to make informed decisions based on real-time information, leading to more efficient supply chain management and reduced costs
• Optimized routes: By analyzing data, logistics providers can identify the most efficient routes for transportation, reducing fuel consumption and travel time, and ultimately lowering costs
• Inventory management: Accurate data helps in identifying inconsistencies between supply and demand, allowing for better inventory management and reduced carrying costs
• Reduced errors and disruptions: Data analytics can help identify deviations from normal delivery patterns and map supply chains, enabling logistics providers to take preventive measures and minimize disruptions, which can lower costs
• Enhanced customer satisfaction: By ensuring accurate data, logistics providers can better meet customer demands and expectations, leading to improved customer satisfaction and loyalty, which can result in lower costs in the long run

Logistics Performance Index (LPI)

• The Logistics Performance Index (LPI) serves as an interactive benchmarking tool created by the World Bank. Its purpose is to assist countries in recognizing the obstacles and possibilities related to their trade logistics performance, offering insights into areas where improvement is needed and suggesting actions to enhance their overall performance.
• The index focuses on trade logistics and ranks countries based on six criteria: customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timeliness.
• In the 2023 LPI, India is ranked 38 out of 139 countries, showing improvement from its 2014 rank of 54.

Issues in India:

• The Economic Survey 2022-23 notes that logistics costs in India range from 14-18% of GDP, higher than the global benchmark of 8%.
• Various reports, including one by NCAER, highlight variations in estimating logistics costs as a percentage of GDP, with the NCAER report using a precise methodology and estimating a range of 7.8% to 8.9% in 2021-22.
• The Logistics Ease Across Different States (LEADS) report categorizes states into achievers, fast movers, and aspirers, with coastal states like Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu performing well.
• Some states, like West Bengal, have slipped in logistics performance, and LEADS suggests formulating a State Logistics Master Plan and Policy for efficiency improvements.

Steps taken by India:

• The National Logistics Policy aims to reduce the cost of logistics in India to global benchmarks by 2030, improve LPI ranking to be among the top 25 countries by 2030, and create a data-driven decision support mechanism for an efficient logistics ecosystem.
• The PM Gati Shakti initiative, launched in 2021, is expected to impact logistics performance positively.

• Despite challenges, there is a trend of improvement in India's logistics performance, driven by national and state-level initiatives.

Context: In 2020, while India’s domestic sector required 54,000 billion litres water, the agriculture sector needed 14 times more—776,000 billion litres.

Water crisis in India:

• The long-standing Cauvery dispute and depleting water reservoir reports highlight the  importance of fair water allocation for water, food, and livelihood security in India.
• Water's significance extends beyond individual sectors, especially concerning food and energy needs in the country.
• In 2020, India's domestic sector required 54,000 billion liters of water, while agriculture needed significantly more at 776,000 billion liters, accounting for 87% of the country's water demand by 2030, according to CEEW estimates.
• Conflicts may arise between competing sectors, such as agriculture and industries, intensifying pressure on limited water Resources.
• The interconnectedness of food, land, water, and energy sectors necessitates careful consideration of trade-offs to avoid detrimental impacts.
• Historical instances, like power subsidies for groundwater irrigation during the Green Revolution in states like Punjab and Haryana, have led to severe groundwater depletion and soil subsidence.
• The Indian government reported substantial power subsidies to the agricultural sector, ranging from Rs 80,000-91,000 crore in 2019.
• Traditional Minimum Support Prices (MSP) have incentivized water-intensive crops, contributing to unregulated irrigation practices and alarming groundwater depletion rates.
• CEEW estimates that the cost of inaction towards improved agriculture water management could be Rs 48 trillion in 2030 and Rs 138 trillion in 2050.

Solutions:

To enhance water security and strengthen food systems in India, key recommendations include scaling up improved on-farm irrigation and water practices.

Scaling up improved on-farm irrigation and water practices

• Technologies like precision agriculture, micro-irrigation, mulching, and policy reforms  such as water auditing and volumetric pricing are crucial for efficient water use.
• Adoption of such practices could save 20-47% of irrigation water by 2030 and 2050, as demonstrated by the success of schemes like the Rashtriya Krishi Vikas Yojana’s Per Drop More Crop.
• Investments, innovations, and incentives for improved irrigation and water management in agriculture are essential for sustainable practices.

Integration of food, land, water, and energy policies

• Integration at all stages —design, implementation, monitoring, and impact evaluation—is necessary for effective management.
• Establishing an independent body within the government can guide the planning process across ministries relevant to the water-energy-food nexus.
• States can assess their requirements based on existing mechanisms, exemplified by Odisha's Planning & Convergence Department.
• The Composite Water Management Index developed by NITI Aayog in 2018 acknowledges nexus linkages, measuring progress in water, food, and energy sectors.

Scaling up community-managed groundwater practices

• Schemes like Atal Bhujal Yojana involve community participation at the gram panchayat level to collect data and develop water security plans.
• Community involvement in groundwater planning has shown promising results, emphasizing the importance of such practices for India's food security by 2030.
• Recognizing water as part of a nexus in policy formulation is crucial for ensuring a water and food-secure future in India.

Context: Recently, the Union Minister laid the foundation stone for the Modernisation of Paradip Fishing Harbour.

News:

• Paradip Fishing Harbour is poised for a transformation as the Central Government greenlights the Modernisation and Upgradation project, receiving 100% central financial assistance under the Pradhan Mantri Matsya Sampada Yojana (PMMSY).
• The Paradip Port Authority is spearheading the implementation of this fishing harbor initiative, with an anticipated completion period of 18 months.

Paradip Port:

• Situated at the confluence of Mahanadi and the Bay of Bengal in Jagatsinghpur District, Odisha, Paradip Port is a natural, deep-water port.
• It holds significance as one of the Major Ports and a pivotal fishing harbor in Odisha, leveraging the advantages of soft underwater soil, allowing for flexible depth adjustments based on requirements.

Modernisation Goals:

The modernisation endeavor aims to enhance hygiene, aesthetics, and crucial infrastructure facilities while incorporating mechanized processes for fish handling.

About Pradhan Mantri Matsya Sampada Yojana (PMMSY):

PMMSY is a strategic scheme fostering the Blue Revolution by addressing critical gaps in the fisheries value chain, spanning fish production, productivity, quality, technology, post-harvest infrastructure, and marketing.

It operates under the umbrella of two distinct components: the Central Sector Scheme (CS) and the Centrally Sponsored Scheme (CSS).

Objectives of PMMSY:

• Elevate the contribution of the fisheries sector to Agriculture GVA to approximately 9% by 2024-25, up from 7.28% in 2018-19.
• Foster private investment and entrepreneurial growth within the fisheries sector.
• Modernize and fortify the value chain, emphasizing enhanced traceability and establishing a robust fishery demand.

Government Initiatives for Port Infrastructure Development in India:

Sagarmala Project:

This initiative champions port-led development by harnessing India's coastline, navigable waterways, and strategic positioning on crucial international maritime trade routes. Major ports, managed by the Union Ministry of Shipping, handle international trade, while minor ports, under state government management, focus on coastal and fishing trade.

Project UNNATI:

Aiming to benchmark the operational and financial performance of the 12 major ports against selected Indian private ports and international counterparts, Project UNNATI identifies areas for improvement.

Passage of Major Port Authorities Act 2021:

This legislative act endeavors to decentralize decision-making processes, reinforcing excellence in governance across major ports.

SAROD-Ports:

The SAROD-Ports initiative concentrates on facilitating dispute resolution through arbitrations within the maritime sector, encompassing both ports and shipping.