1. Jet engine deal ensures 80% technology transfer to HAL; first engine in three years
Except for a small component, the F414-INS6 will be entirely manufactured in India; the 2012 deal had only 58% technology transfer, says an official, adding that current agreement reflects the level of trust India evokes in the U.S. and the strategic priorities that the countries share
The jet engine deal with the U.S. is an “almost done” deal and will see 80% technology transfer by General Electric (GE) to Hindustan Aeronautics Limited (HAL). This will include critical technologies. The first engine will roll out three years after the contract is ready, said a Defence Ministry official.
A previous ‘Engine Development Agreement’ in 2012 between GE and HAL for the F414 engine had 58% technology transfer, the official stated.
A factsheet issued by the White House on the bilateral meetings, described the GE proposal to jointly produce the F414 jet engine in India as “groundbreaking”, adding that a manufacturing licence agreement has been submitted for Congressional notification.
“It will take three years for the first engine to roll out once the contract is signed. The 80% technology transfer to HAL is of critical importance. Such a transfer has not happened before and shows the level of trust India evokes in the U.S.,” a senior defence source said on the Memorandum of Understanding (MoU) between GE and HAL to manufacture F414 engines for the Light Combat Aircraft (LCA)-MK2 in India. “Except for a small component, the F414-INS6 engine will entirely be manufactured in India.”
“This trailblazing initiative to manufacture F414 engines in India will enable greater transfer of U.S. jet engine technology than ever before,” the joint statement issued after talks between Prime Minister Narendra Modi and President Joe Biden said.
Critical technologies
Some of the key technologies that would be transferred to India include special coatings for corrosion; casting, machining and coating for Single Crystal for turbine blades; casting, machining and coating of nozzle guide vanes and other hot parts; blisk machining; forging/power metallurgy discs for turbine; machining of thin walled titanium casing; friction inertia welding for fan and after burner; Polymer Matrix Composites (PMC) for bypass polymer duct; Ceramic Matrix Composites (CMC) for LPNGV, flaps; laser drilling technology for combustor; bottle boring of shafts.
On the timeline, Foreign Secretary Vinay Kwatra said that the U.S. Congress would have to approve the deal which involves two separate legislations: Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), and that some of the spadework had been completed during the Strategic Trade Dialogue he participated in earlier this month in Washington.
“Given that it is crucial to address the regulatory ecosystem, which intersects with technology cooperation, India and the U.S. recently held the first meeting of the strategic trade dialogue. The whole idea behind the strategic trade dialogue is that we look at regulatory issues more in terms of finding ways to enable our technology cooperation.” Mr. Kwatra said that the Jet engine tech transfer deal was one of the “strong, strategic and shared priorities” for both Mr. Modi and Mr. Biden.
While the final cost is yet to be worked out, the official said the costing is indexed to the 2012 agreement based on which the current cost for 99 engines should be under $1bn.
The F414 will significantly enhance the capability of the LCA-MK2 and engines for prototype and testing are already available. As reported by The Hindu earlier, the LCA-Mk2 will be 1350mm longer featuring canards and a payload of 6,500 kgs compared with 3,500 kgs for the Mk1 and MK1A.
Around 120-130 LCA-MK2 jets are likely to be produced. A final decision has to be taken by the Defence Acquisition Council headed by Defence Minister Rajnath Singh, who has been pushing the project towards faster execution, officials said. The official noted that they are still in talks for co-development of a 110KN engine to power the Advanced Medium Combat Aircraft (AMCA)-MK2. This F414 deal makes GE the frontrunner for the deal, though a final decision is yet to be taken.
Approval process
The defence official said that in addition to the U.S. Congressional approval, there are some commercial terms that are yet to be finalised.
The deal also shows that the U.S. trusts our Intellectual Property Rights (IPR) regime and that the technology would remain secure. The U.S. has showed confidence in our military systems also, the official added.
The Cabinet Committee on Security (CCS) has already approved the development of the LCA-Mk2 at a total development cost of ₹9,000 crore.
2. FCI not to consider request by States for more foodgrains under open market scheme
As Karnataka and Tamil Nadu criticised the Union government’s decision to restrict the supply of foodgrains through the Open Market Sale Scheme (Domestic) to 100 tonnes, the Food Corporation of India (FCI) made it clear on Fridaythat the Centre’s priority was to curb inflation.
Chairman and Managing Director of the FCI Ashok K.K. Meena told reporters that the maximum quantity to be sold through OMSS was limited to accommodate small wheat processors and traders. State governments had alleged that such a move was against the interest of the poor. When asked about the complaint of the State governments, Mr. Meena said the State governments would keep on demanding.
80 crore beneficiaries
“State governments are going to give the foodgrains to the same beneficiaries under the Pradhan Mantri Garib Kalyan Ann Yojana or they would be using the foodgrains for State schemes where identified beneficiaries are there. The Government of India is already providing foodgrains for 80 crore people. Additionally, 60 crore consumers need to be taken care of. OMSS operations would be carried out in the interest of those 60 crore people so that inflation remains under control for the rest of the country,” Mr. Meena said.
Furthermore, the government had now directed the FCI to conduct the e-auctions of wheat and rice to check the inflationary trends. “We will give 100 tonnes for a bidder. We are putting in place another condition that whoever purchases cannot export or give it to another State’s agencies. We are giving only for consumption. They need to have a GST number and States are not permitted (to buy from bidders),” Mr. Meena said.
3. G-20 trade unions meet emphasises global social security
Union Minister for Labour and Employment Bhupender Yadav, addressing the Labour 20 (L-20), — the meeting of trade unions of G-20 countries — on Friday said the two statements adopted by the unions on universalisation of social security and the portability of social security funds, and on empowering women in the future of work and upskilling the women workforce in tech-intensive environments were a testament to the spirit of social dialogue.
Mr. Yadav said the deliberations at the two-day meeting proved to be enlightening with diverse perspectives and viewpoints from various stakeholders. She said a changing work environment characterised by technological advancements, globalisation, and evolving labour markets had significant implications for employment and the provision of adequate social security.
“There is therefore a need for comprehensive and forward-looking social security policies that take into account the evolving nature of work. Governments, employers, trade unions, and international organisations must collaborate to ensure that social security systems are inclusive, adaptable, and accessible to all,” the Minister said.
Gender parity
Mr. Yadav said that by equipping women with necessary skills and knowledge, governments could ensure their engagement in the job market and promoting gender parity.
“The task force on ‘International Portability of social security funds’ recommended that data on the susceptibilities and needs of migrants should be collected and analysed for efficiency of social protection systems. It called for disaggregating national data pertaining to social safety schemes, considering citizenship and residency status as reliable indicators of migrant status. This would facilitate computation of the potential financial ramifications of transferable benefits and the estimation of the labour migrants’ effective or de facto social protection coverage,” the summit said.
4. ‘Price stability is a must for growth’
Bringing down inflation and stabilising inflation expectations will revive consumer spending, boost corporate revenues and profits thus giving an incentive for private capex, RBI officials led by Deputy Governor Patra write in the monthly bulletin
Taming inflation and anchoring inflation expectations is key to helping revive consumer spending and private capital expenditure and thereby supporting growth, RBI officials wrote in an article in the bank’s monthly bulletin released on Friday.
“Recent national accounts data and corporate results when read in conjunction clearly show that inflation is slowing down personal consumption expenditure. This, in turn, is moderating corporate sales and holding back private investment in capacity creation,” the officials, including Deputy Governor Michael Debabrata Patra, wrote in the article on ‘State of the Economy’.
“Bringing down inflation and stabilising inflation expectations will revive consumer spending, boost corporate revenues and profitability, which is the best incentive for private capex,” they added.
Private consumption spending, which expanded by a sluggish 2.8% in the January-March quarter, as per latest NSO data, is estimated to have actually contracted 3.2% sequentially.
The RBI’s officials cited Governor Shaktikanta Das’s comments after the Monetary Policy Committee voted to leave interest rates unchanged this month that monetary authorities would need to move towards ensuring inflation was aligned with the “primary target of 4%”.
Refuting the view that the RBI’s flexible inflation targeting was the single-minded pursuit of a single target, the officials emphasised that contrary to critics’ perception, the central bank’s approach was ultimately “a growth preservation and promotion monetary policy framework”.
“It is axiomatic that the path to high but sustainable inclusive growth has to be paved by price stability,” the officials stressed.
“Once this is realised, the trade-offs and dilemmas confronting the conduct of monetary policy fade away,” they added.
5. Strike a fine balance, have a just civil code
On June 14, the Law Commission of India decided to solicit views and proposals from the public about the Uniform Civil Code (UCC). After a hiatus of just five years, when the Commission had concluded that the ‘UCC is neither necessary nor desirable’, the move now is one that keeps the pot boiling on one of India’s most ideologically as well as politically rivalled issue. Though we believe that the enactment of the UCC in piecemeal manner would be in tune with the spirit of Article 44, the attempt here is to invite attention to one particular consideration that must weigh with the Commission as it undertakes this exercise de novo.
Autonomy versus authority
The question of personal laws is basically the question of personal and religious autonomy versus the state’s authority to reform familial relations. Since each religious group has cultural autonomy, it is thus being argued that the community should itself come forward to seek reforms. This is the justification for the adoption of internal law reform or voluntary UCC. In fact, the Special Marriage Act, 1954 and the Indian Succession Act, 1925 are nothing but examples of voluntary adoption of the UCC though the recently enacted love jihad laws by prohibiting inter-faith marriages basically violate the spirit of Special Marriage Act.
There are also regional differences, i.e. Kerala had abolished the Hindu Joint Family in 1975; Muslim marriage and divorces are to be registered in Bengal, Bihar, Odisha, Jharkhand under the 1876 law, and in Assam under 1935 law, and adoption was permissible to Kashmiri Muslims.
At present, not just Muslims but even Hindus, Jains, Buddhists, Sikhs, Parsis, and Jews are governed by their own personal laws. Accordingly, believe it or not, it is the religious identity that determines which personal law would apply to a group of individuals. Even reformed Hindu Personal Law under the Hindu Marriage Act, 1955 does insist on solemnisation of marriage, through saptapadi (seven steps around fire) and datta (invocation before fire). Section 7(2) of the Act, just like Manusmriti (8.227), provides that marriage is completed on the seventh step. Sapinda relationship, adoption and Hindu Joint Family rules too are based on the Hindu Personal Law.
Surprisingly when two Hindus marry under the Special Marriage Act, 1954 (Section 21A inserted in 1976), they continue to be governed by Hindu Personal Law, but if two Muslims marry under this legislation, the Muslim Personal Law (MPL) would no longer govern them. Interestingly, a person who renounces Hinduism too continues to be governed by the Hindu Personal Law.
The Constitution was not the starting point but a mere culmination of India’s long-standing integrative traditions. In addition to the provisions that outlaw discrimination in all its forms, the Indian Constitution’s commitment to cultural accommodation is visible through a near-absolute fundamental right in Article 29(1) dedicated exclusively to conserving the distinctive culture of all citizens. However, do Muslims of India have the courage to argue that polygamy or arbitrary unilateral divorce even in anger or while in an intoxicated state could be considered a part of their culture?
Unity more than uniformity
That said, the Commission must bear in its recommendation that for a diverse and multicultural polity such as India, the proposed UCC must be emblematic of India’s ‘mosaic model’ of multiculturalism. The logic is invariably obvious — a homogenising lithification of identities must not become a mirage for flourishing diversity (something that has consistently remained peculiar to the American model of multiculturalism). After all, unity is far more important than uniformity. The British brought homogeneity amongst Hindus and Muslims by grossly undermining heterogeneity within the two religious communities.
Under the Indian Constitution, the right to cultural autonomy defends the Indian model of multiculturalism. Prominent scholars on multiculturalism such as Rochana Bajpai suggest that the Indian Constitution offers two major approaches with respect to accommodation of difference — integrationist and restricted multicultural. While the affirmative action policies largely land in the first approach’s camp, for Ms. Bajpai, “state assistance to minority cultures has been seen as an illegitimate concession […]” and is often termed as ‘appeasement of minorities’.
This, as Ms. Bajpai furthers, leaves cultural difference without any robust constitutional normative underpinnings. In short, it is through these two approaches that the Constitution makes way for cultural accommodation and a celebration of group differences. Accordingly, the 21st Law Commission (2015-18) had boldly favoured equality between men and women in communities rather than aiming for equality between communities. A just code should be the primary goal as just laws are more important than a mere one uniform law.
Having this discussion as the backdrop, India’s tryst with preserving its multicultural diversity is often found at the crossroads with values such as secularism. Despite secularism being a fundamental tenet governing the Indian polity, India decided not to adopt the French model of laïcité, which strictly prohibits bearing any religious outfit or marker in public; that considers religion in public as a threat (and not a prominent promoter) to the nation’s secular fabric — thus pushing it within only the four walls of the domestic household. Indian society, therefore, ‘accommodates’ and not just ‘tolerates’ the wide array of group and ethnic differences.
When groups claim and effectuate their multi-ethnic traditions without impinging on the rights and liberties of their fellow citizens, their traditions and values acquire the status of social mores for they fulfil a much broader purpose of social and national integration.
However, a claim of such broad nature invites limitations inherent — in the name of personal laws and practices, what deserves legal protection and promotion and what does not. Right to cultural-relativism cannot justify continuation of unjust and discriminatory personal laws. Such provisions of the personal laws must be made consistent with substantive equality and gender justice goals espoused in the Constitution.
Hurdles on the path ahead
Simultaneously, we must understand that when a community feels threatened in any way, whether rightly or wrongly so, the collective esteem of its members becomes woven to the community, and community allegiance becomes much stronger. Therefore, one hopes that the Law Commission of India would not contribute to the rise of reactive culturalism amongst different communities in India, including Muslims. The Muslim community too must understand that the MPL and Islam are not one and the same. The MPL is a jurist given law and is not entirely divine. In fact, it is more appropriate to call it Anglo-Muhammadan law that was derived in certain matters from the erroneously translated secondary sources rather than the Koran and Sunna of the Prophet. British courts treated juristic opinions in the MPL on a par with statutory laws enacted by the legislature and by insisting on the British doctrine of precedent, they further brought in a lot of rigidity in the MPL. If MPL reforms that rely on inter-school borrowing could be accepted by the Ulema way back in 1939, why cannot this be done today? Let the Muslim clergy come forward and lead the MPL reform process by identifying the discriminatory and oppressive issues and adopt the views of progressive jurists.
As the Commission proposes an overhauling secularisation of various socio-religious-cultural practices that have been the mainstay of thousands of religious and ethnic communities since times immemorial, the path ahead is not going to be free from hurdles. In the words of political philosopher Iris Young, as the value of social difference is more relational and is itself a product of social processes, we believe that it will be incumbent upon the Commission to strike a fine balance as it should aim to eliminate only those practices that do not meet the benchmarks set by the Constitution.
