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Daily Current Affairs for UPSC Exam

21Jun
2023

What is the contention between Coal India and CCI? (GS Paper 3, Economy)

What is the contention between Coal India and CCI? (GS Paper 3, Economy)

Why in news?

  • Recently, the Supreme Court held that there was “no merit” in Coal India Ltd (CIL), a public sector undertaking, being excluded from the purview of the Competition Act.
  • The Court was hearing the PSU’s appeal against the Competition Appellate Tribunal’s order which alleged the former of abusing its position.

 

What was the case about?

  • The chain of events goes back to March 2017 when the Competition Commission of India (CCI) had imposed a penalty of ₹591.01 crore on CIL for “imposing unfair/discriminatory conditions in fuel supply agreements (FSAs) with the power producers for supply of non-coking coal.”
  • CIL was found to be supplying lower quality of the essential resource at higher prices and placing opaque conditions in the contract about supply parameters and quality.

 

What did the PSU argue in court?

  • Coal India argued that it operated with the principles of ‘common good’ and ensuring equitable distribution of the essential natural resource. With this objective, it was secured as a ‘monopoly’ under the Nationalisation Act, 1973 (more specifically, the Coal Mines (Nationalisation) Act, 1973).
  • It said that it may have to adhere to a differential pricing mechanism to encourage captive coal production. Differential pricing, which may be inconsistent with market principles, was to ensure the viability of the larger operating ecosystem as well as for pursuing welfare objectives.
  • Furthermore, coal supply also has a bearing on larger national policies, for example, if the government were to encourage growth in backward areas through increased allocation.
  • The PSU stated that it did not operate in the commercial sphere. It specifically pointed to 345 out of its 462 mines having suffered cumulative losses totalling ₹9,878 crore in 2012-13.

 

How did the CCI respond?

  • The Raghavan Committee (2020) report had observed that state monopolies were not conducive to the best interests of the nation. They could not be allowed to operate in a state of inefficiency and should instead, operate amid competition.
  • Furthermore, coal ceased to be an ‘essential commodity’ in February 2007 and the Nationalisation Act too was removed from the Ninth Schedule (laws that cannot be challenged in court) in 2017. Coal India was a fully-government owned entity until the disinvestment in 2010.
  • The government’s shareholding reduced to 67% with the rest held by private hands. Moreover, it was stated that the CIL directed 80% of its supplies to power companies. The latter would then pass power generated using coal to discoms (distribution companies), who, in turn, would supply power to the final consumer.
  • The continual supply of coal, adherence to the contract, reasonableness in the rates and quality of coal also serve a common good, the respondents contended.
  • Coal constitutes about 60 to 70% of the costs for power generation companies. Thus, irregular prices and supply will have a significant bearing indirectly on consumers.

 

What were the SC’s observations?

  • The court said there was “no merit” in the argument that the Competition Act would not apply to CIL because they are governed by the Nationalisation Act, and it cannot be reconciled with the Competition Act.
  • The judgment reinforced the principle of “competitive neutrality” entailing that the Competition Act equally applies to public and private sector enterprises.

 

Childline 1098 to be merged with 112 line in 9 States

(GS Paper 2, Governance)

Why in news?

  • In a first, the Women and Child Development (WCD) Ministry has decided to do away with the concept of NGOs running Childline (a counselling and distress relief helpline for children) which has been attending to children under emergency since 1995.

Key Highlights:

  • In the first phase, the Ministry has merged the 1098 helpline with the 112 Emergency Response Support System (ERSS) in nine States Union Territories where operations will start by June-end.
  • They are Andhra Pradesh, Arunachal Pradesh, Bihar, Dadra and Nagar Haveli & Daman & Diu, Gujarat, Goa, Ladakh, Mizoram and Puducherry. The others will be on board in a phased manner.
  • The merger was being done as part of the broader vision of “One nation, one helpline”. Hence, Childline (1098) is being merged with the ERSS-112.

 

Standard Operating Procedures (SoPs) for the merger:

  • The States had to ensure a dedicated 24x7 WCD Control Room which will be integrated with the ERSS.
  • Further, at the district level, the Child Helpline (CHL) unit at the District Child Protection Unit will be available round the clock to provide outreach services for children in crisis, linking them to emergency and long-term care and rehabilitation services.

 

Helpdesk at stations:

  • The States and Union Territories, as per the SoPs of Railways, would continue setting up child helpdesks or booths at selected railway stations and bus stands.
  • The Ministry has entrusted the Centre for Development of Advanced Computing, Kerala as a total solution provider for automation of Child Helpline 1098 and its integration with the ERSS-112.
  • The incoming calls to 1098 will be classified into three categories: emergency, non-emergency and information calls.
  • All emergency calls can be forwarded from 1098 to 112 or vice versa at the switch of a button.

 

Childline India Foundation (CIF):

  • The Ministry, under the erstwhile Child Protection Services Scheme, was supporting the 24x7 helpline Childline service, through Childline India Foundation (CIF) and its partner NGOs.
  • The CIF had been rendering Childline Services in 568 districts, 135 railway stations and 11 bus stands through its network of 1,000-plus units.
  • The CIF network could cover only 568 districts which had left almost 200 districts uncovered under Childline, which is why the decision of merger of Childline was taken.

 

Astronauts make clean water from their own urine in space

(GS Paper 3, Science and Technology)

Why in news?

  • In a significant breakthrough for space exploration, astronauts aboard the International Space Station have successfully generated water by capturing moisture and distilling urine.
  • They achieved this milestone by utilising the Environmental Control and Life Support System (ECLSS) of the space station.

 

ECLSS System:

  • The system is designed to collect wastewater, including moisture released from the crew's breath and sweat, and send it to the Water Processor Assembly (WPA) where drinkable water is produced.
  • Additionally, the Urine Processor Assembly (UPA) recovers water from urine through vacuum distillation. However, this distillation process generates urine brine, which still contains some water components.

 

Brine Processor Assembly (BPA)

  • Scientists have been testing a new technology, the Brine Processor Assembly (BPA), to further recover water from the brine. The BPA, a subsystem that extracts wastewater, is being evaluated in a zero-gravity environment.
  • It takes the brine produced by the UPA and subjects it to special membrane technology, followed by blowing warm, dry air over the brine to evaporate the water.
  • This process creates humid air, which, alongside crew breath and perspiration, is collected by the station's water collection systems.

 

Advantages:

  • This remarkable feat underscores the sophisticated processes and rigorous ground testing employed to ensure the production of clean and potable water in space.
  • Water is critical for long-duration space travel due to its multifaceted significance. Firstly, water is essential for the survival and well-being of astronauts. It is required for hydration, food preparation, and personal hygiene.
  • Without a constant supply of clean water, the health and performance of the crew could be severely compromised.
  • Secondly, water plays a crucial role in sustaining life support systems on spacecraft. It is used for generating breathable oxygen through electrolysis and for regulating temperature and humidity levels.
  • Moreover, water serves as a radiation shield, providing protection against harmful cosmic radiation.
  • Water is a vital resource for growing plants and conducting experiments in controlled environments, facilitating research and potential food production during extended space missions.