IAS MAIN 2013 SOLVED QUESTION PAPERS- 3 … Year Question Paper... · IAS MAIN 2013 SOLVED QUESTION PAPERS- 3 (Answer written by IAS 2013 Topper Gaur av Agrawal) ... Man y companies

http://www.developindiagroup.co.in/Notes for Civil Services Main revised Paper - 4

177

http

://www.dev

elop

indiag

roup

.co.in/

(Technology, Economic Development, Bio diversity, Environment, Security & Disaster Management)

IAS MAIN 2013 SOLVED QUESTION PAPERS- 3

(Answer written by IAS 2013 Topper Gaurav Agrawal)

Disclaimer

1. The below answers have been reproduced purely from

my memory. They may not be accurate.

2. All answers were written more or less in the same sub-

heading wise and point wise format. But the exact con-

tent may not be the same and I may be putting some

additional points here or missing out some points written

in the exam due to the gap between writing this and

writing the exam.

3. 60 marks worth was left/wrong/very poorly attempted.

4. I have not been able to garner enough will power to put

solutions to last few questions here. Will try to do so in

due course.

Instructions : Answer each question in not more than the word

limit specified. Content of the answer is more important than

its length.

Q 1. With a consideration towards the strategy of inclusive

growth, the new Companies Bill, 2013 has indirectly

made CSR a mandatory obligation. Discuss the chal-

lenges expected in its implementation in right earnest.

Also discuss other provisions in the Bill and their impli-

cations. (200 words) (10 marks)

Ans : The Companies Bill, 2013 replaces the over half a cen-

tury old Companies Act.

n Its CSR provision makes it mandatory for companies above

a threshold to spend 2% of their average annual profits of

last 3 years on CSR activities or else provide explanation.

The company has to create a CSR policy and its imple-

mentation has to be seen by an independent director.

Challenges in implementation of CSR provision

1. The allowed CSR activities will be prescribed in the rules.

Many companies like Tata, Wipro have their own CSR

programmes. What happens if their activities are not cov-

ered under the rules?

2. It may lead to armtwisting of companies by the local poli-

ticians.

3. Companies may simply donate to government funds like

prime minister relief fund to avoid compliance costs.

4. There is no penalty for non-compliance.

Other Provisions

1. Minority shareholders

n Electronic voting provision.

n Class action suits provision.

n Related party transactions approval provision.

n Impact: will protect minority shareholders.

2. Minimum 1/3rd independent directors. They can have m

aximum 2 terms of 5 years each.

n Impact: will improve corporate governance and

prevent compromising of directors.

3. Audit and accounting related provisions

n Auditors have to be changed periodically.

n Auditors have to act as whistleblowers.

n NFRA established to prescribe accounting standards

and oversee conduct of auditors.

n Impact: will improve disclosures and corporate

governance.

4. Small companies

n 1 person companies allowed.

n Small companies have smaller compliance

requirements.

n Impact: will encourage small companies.

Briefly wrote one sentence on each provision.

Q 2. What were the reasons for the introduction of Fiscal

Responsibility and Budget Management (FRBM) Act,

2003? Discuss critically its salient features and their

effectiveness. (200 words) (10 marks)

Ans :

Reasons for introduction of FRBMA

1. High fiscal deficit of centre and states: central deficit was

over 6% and state + central combined over 8%.

2. This high fiscal deficit was unsustainable and could have

led to Eurozone like sovereign crisis in India.

3. Public savings were running negative (-1.7% of GDP).

4. Revenue deficit was high. So to keep our public finances

sustainable, FRBMA was enacted.

Salient features and effectiveness

1. Fiscal deficit to be kept below 3% before 2007-08.

n Effectiveness: It was achieved in 2007-08. But due to

global financial crisis, it shot up over 6% in subsequent

years and remained above 3%. The deadline has since

been repeatedly extended and now it is 2015.

2. Revenue deficit to be eliminated. In 2012, the target was

changed to effective revenue deficit to be eliminated by

2015.

n Effectiveness: It was achieved but since then has been


178

http

://www.dev

elop

indiag

roup

.co.in/


breached.

3. Off balance sheet guarantees of the government for PPP

projects to be limited to 0.5% of GDP.

4. RBI to not to participate in primary government securi-

ties auction. Government borrowing from RBI only to

happen via Ways and Means Advance and not adhoc t-

bills.

n Effectiveness: Totally effective.

5. Even state governments were given incentives by Finance

Commissions to enact their FRBMAs and they have com-

plied. Their fiscal deficit is < 3% now.

6. But the law requires only a simple majority to be amended

and any government in power would have that. Its nu-

merous amendments and deadline postponements have

shown that it lacks efficacy.

7. There are also no penalties for violation of law.

8. Government has merely shifted fiscal deficit off the bal-

ance sheet by issuing oil bonds. Similarly power discom

liabilities too don’t come under fiscal deficit.

Q 3. What is the meaning of the term ‘tax expenditure’?

Taking housing sector as an example, discuss how it

influences the budgetary policies of the government.

(200 words) (10 marks)

Ans : No idea. Didn’t attempt.

(Italis answer recommended by Develop India Group - Tax

Expenditure corresponds to relaxations given when tax bur-

den becomes difficult for the sustainability of a particular sec-

tor. Tax exemptions or incentives are given in the form of lower

rates of tax relative to normal rates. Tax expenditures are

revenue losses attributable to tax provisions that often result

from the use of the tax system to promote social goals without

incurring direct expenditures. Normally these exemptions are

generated for particular purposes as tax incentives.

Tax Expenditure and Budgetary Policies in Housing Sector

n Exemptions allowed for deduction of HRA (Income tax)

and various other income tax deductions and exemptions

(Eg: Medical Premium).

n Exemptions allowed for interest payment and principal

repayment for housing loans.

n Tax Expenditure in Union Budget 2013 : First home loan

from a bank or housing finance corporation upto Rs. 25

lakh entitled to additional deduction of interest upto Rs.

1 lakh.

n NB: It should be noted that due to various policies of gov-

ernment, the number of persons who own houses have

increased. More over, the people can afford to spend on

infrastructure as they don’t have to give taxes.)

Q 4. Food Security Bill is expected to eliminate hunger and

malnutrition in India. Critically discuss various appre-

hensions in is effective implementation along with the

concerns it has generated in WTO. (200 words) (10

marks)

Ans : FSB makes it a statutory right of 67% of population (75%

in villages, 50% in urban areas) to get 5 kg of cereals at

highly subsidised prices. However, it has given rise to many

concerns.

1. Concerns in WTO: talked about Amber box subsidies, how

they have to be limited to 10% by developing countries.

AMS is calculated based on prices in the base year (1986)

and on entire eligible output. India risks breaching that

due to FSB commitments. So India should press for (a)

food security and small and marginal farmers exemption.

(b) updation of reference prices to present prices to ac-

count for food inflation. (c) peace clause (art 13 of AoA)

for a long tenure or until a permanent solution is found.

On the other hand, developed countries are only willing

to give a peace clause for 4 years.

2. Food subsidy costs: Mentioned many estimates put as-

tronomical numbers to the costs. But they include many

other large costs such as money to be spent on develop-

ment of agriculture (eg. Gulati) which would have been

spent irrespective of FSB. The government says costs of

FSB will be Rs. 125,000 crores as against present subsi-

dies of Rs. 109,000 crores.

3. Will increase PDS leakages: Some argue that to push more

money through already leaking PDS is a wastage. But

empirical data doesn’t support it. Experiences in states

such as Chattisgarh, Odisha, TN and even Bihar since 2009-

10 suggests more coverage of PDS results in better deliv-

ery and less leakages (Khera). The FSB also contains provi-

sions for many PDS reforms.

4. Will cause inflation: People will spend money saved on

food on other things which may lead to inflation. There is

substance to this, but this increased demand can give a

positive stimulus to the sluggish economy.

5. Increased procurement needs will lead to grain imports

/ Nationalization of grain trade: Critics argue that more

food procurement requirements will lead to imports. But

FSB’s procurement needs are around 65-70 million tonnes

and government has been procuring more than this for

the past few years already. Total foodgrain production in

India is over 250 million tonnes. As seen above, govern-


179

http

://www.dev

elop

indiag

roup

.co.in/


ment procurement will still be limited to only a fraction of

foodgrain production.

6. Will hurt farmers: Critics also argue that with everybody

buying grains at so cheap costs, farmers will not get re-

munerative prices. But this is wrong. To meed FSB re-

quirements, government will have to increase MSP which

will benefit farmers.

Q 5. What are the different types of agriculture subsidies

given to farmers at the national and at state levels?

Critically analyse the agriculture subsidy regime with

reference to the distortions created by it. (200 words)

(10 marks)

Ans : Subsidies in agriculture came after the Green Revolu-

tion, both at centre and state levels.

Subsidies at central level

1. Fertilizers :

n The urea is covered under retention price scheme

while other nutrients (P & K) are under nutrient based

subsidy regime.

n Distortions created: soil fertility imbalance, ecological

imbalances like eutrophication. Recent spikes in P & K

prices have worsened it.

n But needed to sustain HYV seeds and support marginal

and small farmers who are heavy users of fertilizers.

2. Minimum Support Prices

n But it is effective only for wheat and rice and that too

in Punjab, Haryana and West UP.

n This creates distortions that crops not suited to the

climate of a place are cultivated. eg. water guzzling

rice in arid areas in Punjab and Haryana.

n MSP can be used to promote ecological friendly

farming and cropping patterns. So it must be made

effective for all regions and all crops.

n They are also highly needed given poor state of our

small and marginal farmers.

3. Credit / Interest Subvention Schemes / Debt waivers.

4. Diesel

n Distortion created is ground water depletion.

5. Insurance:

Subsidies at state level

1. Electricity: Distortion created is ground water depletion

and poor supply of electricity in villages.

2. Irrigation water: Distortion created is (a) Irrigation sys-

tems don’t even recover O&M costs. This leads to poor

water supply and management. (b) farmers at canal

heads use more water and cultivate water guzzling crops.

(c) Ground water depletion. So water must be brought

under public trust doctrine and O&M costs recovered,

WUAs should be encouraged.

Wrote one sentence each describing each subsidy.

Q 6. India needs to strengthen measures to promote the

pink revolution in food industry for ensuring better

nutrition and health. Critically elucidate the statement.


Ans : Didn’t know what pink revolution is. Didn’t attempt.

Heard later some saying its meat, and some others say-

ing its shrimps and onions. Don’t know the truth. (Italic

answer recommended by Develop India Group - Pink

Revolution is a term used to denote the technological

revolutions in the meat and poultry processing sector.

India has already seen the ‘green’ and ‘white’ revolu-

tions in its food industry – related to agriculture and milk

respectively, now thrust is upon meat and poultry sector.

India being a country of huge cattle and poultry popula-

tion, has high potential for growth if this sector is mod-

ernized.

Potential and challenges of Pink Revolution in India

1. Meat and poultry processing sector in the country has

great potentials for growth.

2. The present meat consumption per capita of around 6

grams per day will improve to 50 grams a day in the next

decade or so. When such phenomenal increase in meat

consumption occurs, the sector will witness a tremen-

dous growth.

3. Despite India’s large live stock population, India accounts

only around 2 percent of global market.

4. Challenges include creating standard policies for meat

production and export, standardizing the quality and

safety aspects of meat and poultry, and creating infra-

structure facilities for modern slaughter houses, meat

testing facilities and cold storages for the growth of the

meat and poultry processing sector.)

Q 7. Examine the impact of liberalization on companies

owned by Indians. Are they competing with the MNCs

satisfactorily? (200 words) (10 marks)

Ans : First gave theoretical arguments like:

Positive impact of liberalization on Indian owned companies

1. Technology transfer.

2. Outsourcing.

3. Ancilliary development and boost to MSMEs.

Negative impact of liberalization on Indian owned companies

1. More competition.

2. Better logistics, whole supply chain tends to become more


180

http

://www.dev

elop

indiag

roup

.co.in/


efficient.

How Indian companies are faring

Wrote points. In each point, took some sectors and said Indian

companies have outperformed MNCs (eg. telecom, insurance,

banking) or Indian companies competing well (eg. automo-

biles) or Indian companies performing poorly (eg. food pro-

cessing / beverages).

Q 8. Establish relationship between land reforms, agricul-

ture productivity and elimination of poverty in the In-

dian economy. Discuss the difficulties in designing and

implementation of agriculture friendly land reforms in

India. (200 words) (10 marks)

Ans :

Land reforms are of 4 types:

1. Zamindari / Intermediary abolition.

2. Land ceiling.

3. Tenancy regulation.

4. Land consolidation.

(Wrote a line each on what these are).

Impact

1. Reduced absentee ownership.

2. Reduced inequalities in village.

3. Checked the feudal system.

4. Kept greed of large landlords in check.

5. Reduced rent seeking.

6. Small farms have higher productivity.

7. But due to poor implementation, not all potential ben-

efits have been realized. Tenancy went underground.

Besley and Burgess (2000) in their seminal work have estab-

lished following relationships between land reforms,

Land Reform Impact on Poverty Impact on Productivity

Zamindari abolition Reduced No impact

Land ceiling No impact No impact

Tenancy regilation Reduced Negative impact

Land consolidation No impact Positive impact

Difficulties in design and implementation

1. Lack of political and administrative will.

2. Laws were kept pending for decades and were full of loop-

holes.

3. Ceilings defined were kept very high by states.

4. Tenancy went underground and no protection could be

made available for such tenants.

5. Legislatures and administration full of land owning pow-

erful elements.

6. Absence of land ownership records led to multiple litiga-

tions which have been pending for decades.

Q 9.a Discuss the impact of FDI entry into multi trade retail

sector on supply chain management in commodity

trade pattern of the economy. (100 words) (5 marks)

Ans : Note: I misinterpreted the question and wrote about

impact of FDI retail on India’s international trade. My

answer is wrong

(Italic answer recommended by Develop India Group -

Retail Sector is one of the most important pillars of Indian

economy and it is growing at a phenomenal pace. The

retail industry in India is the second largest employer with

an estimated 35 million people engaged by the industry.

There has been opening of Indian economy to foreign

organization for foreign direct investment through orga-

nized retail. The union government has sanctioned 51%

foreign direct investment in multi-brand like Wal-Mart,

Carrefour, and Tesco.

Foreign Direct Investment (FDI) in retail sector plays an

integral role in the economic growth. FDI in Multi-brand

retail can be seen as an important reform to revive the

economy and to ease supply side pressures especially in

unorganized sectors. To revive the Indian economy, FDI

policy in multi-brand retail is an important reform that

would ease supply side pressures and mitigate inflation.

Implications of FDI in multi-brand retail sector discussed

outweigh the issues related to the new FDI policy

reforms.FDI in multi-brand retail can go a long way in

improving the efficiency of supply chain, infrastructure

facilities, technological advancement and other relevant

areas of growth in retail sector. The FDI policy on multi-

brand retail creates opportunities for the Micro, Small

and Medium Enterprises (MSMEs) to reach out the Inter-

national markets. Farmers and consumers would benefit

from the new entry of organized retailers in multi-brand

and would help tame food inflation by improving agri-

commodity management.)

1. In the short term, India’s import of consumer goods will

increase. Because these MNCs have global procurement

contracts.

2. But our own firms will also supply to these MNCs and will

grow. This will increase our imports of raw materials and

capital goods.

3. But with time, our firms would begin to supply overseas

to these MNCs and others. So our manufacturing and con-

sumer goods exports will grow with time.

Q 9.b Though India allowed FDI in what is called multi-brand


181

http

://www.dev

elop

indiag

roup

.co.in/


retail through the joint venture route in September

2012, the FDI, even after a year, has not picked up.

Discuss the reasons. (100 words) (5 marks)

Ans.

1. Sector and policy specific factors: Lack of clarity on some

definitions, stringent conditions.

n eg. 30% procurement from MSMEs. These MNCs

cultivate their relationships with suppliers and help

them grow. What happens if with time these MSMEs

grow beyond MSME definition.

n eg. FDI not allowed in cities with < 1 million

population.

n eg. Minimum 50% investment in backend logistics.

But this requirement is only over total investment, or

on each investment tranche?

n Govt. has relaxed and clarified some of these

conditions lately.

2. Global slowdown.

3. Policy uncertainty, retrospective taxation.

4. General investment turndown in economy.

5. Land acquisition, multiple clearances issues both at cen-

tral and state level.

Q 10. Discuss the rationale for introducing GST in India.

Bring out critically the reasons for the delay in roll out

for its regime. (200 words) (10 marks)

Ans : Gave a one sentence intro on GST.

Rationale

1. Currently there are multiple taxes and restrictions on

trade within the country. It should be surprising that EU

has lesser trade restrictions across the nations than we

have across the states.

2. Improve tax compliance and reduce tax avoidance.

3. Reduce corruption and black money.

4. Will encourage economic efficiency, trade and commerce

and further GDP growth.

5. To remove cascading effect of many taxes.

Reasons for delay

1. States’ compensation: States are asking for Rs. 50,000

crore to be built in the constitutional amendment itself.

Centre has only provided Rs. 9000 crore in current bud-

get.

2. Inter State GST: Specially problematic for goods/services

where the provider is not required to be present in con-

suming states. eg. broadcasting where viewers can be in

Bihar while broadcaster may be in Delhi. How to collect

GST in such cases.

3. Exemption list: States want to exclude petroleum, alco-

hol, gas from GST and build in this exemption in constitu-

tion itself. Centre wants to include it in GST with flexibility

to impose additional taxes.

4. Rate structure: States want flexibility to change rates or

at least a narrow band where they can charge multiple

rates, while centre wants a single rate only.

5. Powers of GST Council: States want it to be a recommen-

datory body only and judiciary to resolve any disputes.

Centre wants it to be a decisive body and a special dispute

resolution mechanism to decide on disputes.

6. Revenue neutral rate: Even if an overall revenue neutral

rate is arrived at, it won’t be revenue neutral for many

states since different states have different present tax

capacities.

Note: I now realize, I completely missed out on “critically ana-

lyze” part. 5 more marks gone. (Italic answer recommended

by Develop India Group - With heterogeneous State laws on

VAT, the debate on the necessity for a GST has been reignited.

The best GST systems across the world use a single GST while

India has opted for a dual-GST model. Critics claim that CGST,

SGST and IGST are nothing but new names for Central Excise/

Service Tax, VAT and CST and hence GST brings nothing new to

the table. The concept of value-add has never been utilised in

the levy of service as the Delhi High Court is attempting to

prove in the case of Home Solution Retail while under Central

Excise the focus is on defining and refining the definition of

manufacture instead of focusing on value additions. The Rev-

enue can be very stubborn when it comes to refunds as the

Maharashtra Government proves and software entities that

applied for refunds on excess service tax paid on inputs discov-

ered.

The all-new Cenvat Credit Rules, 2014 do little to clarify eligi-

bility for input credits by using general terms such as “ any

goods which have no relationship whatsoever with the manu-

facture of a final product” and “ services used primarily for

personal use or consumption of any employee”. Before pen-

ning the GST Act and Rules, the Empowered Committee would

do well to take a hard look at all the present laws that GST

subsumes and their complexities. It could tempt them to re-

think on the necessity to draft even the preamble.

This change in the tax structure is going to have a huge impact

in the currently supply chain of India. It is currently in sub-

optimal and has been structured in such a fashion to avoid


182

http

://www.dev

elop

indiag

roup

.co.in/


taxes. The supply chain tax structure of India can be broadly

classified in the following categories. Threshold limit of trad-

ers with turnover below 10 lakhs need not register is a concept

brought from VAT system. This can cause ambiguity. The argu-

ment that small traders can not be handled by the system is

not true. A country that can give Unique ID to every citizen

can as well give registration service to small traders. They

should not be eliminated from the Tax system. Even the com-

pounding system of charging 0.5% for the traders with below

50 lakhs turnover can cause undesirable results. They also

should not be eliminated from the tax system. It is not fair to

restrict them from certain trade activities such as selling to

other states. The registered trader will have to face loss of

input tax if he buys either from threshold trader or compounded

traders.

Q 11. Write a note on India’s green energy corridor to alle-

viate the problem of conventional energy. (200 words)

(10 marks)

Ans : I wrote some BS about solar, wind, biomass etc. etc. But

all that is wrong, this project involves synchronization of

renewable energy with national grid.

(Italic answer recommended by Develop India Group - The

Government plans to roll out a Rs 43,000-crore ‘green energy

corridor’ project to facilitate the flow of renewable energy

into the national grid.

n The project will be implemented with the assistance of

Germany which has promised to provide developmental

and technical assistance of •1 billion as soft credit.

n The grid will also receive support from the World Bank

and India’s National Electricity Fund.

n It aims to connect the southern grid to the national grid

by 2014 to create the single largest transmission grid in

the world.

n India’s wind and solar capacity has more than doubled in

the last five years.

n As of February, India had 19,564 MW of wind. Solar, the

second largest source of renewable energy, had 1,208

MW of installed capacity.)

n Currently, the grid faces difficulty in absorbing renewable

electricity because of varying voltage and supply, the offi-

cial said. The transmission system would be made dynamic

to handle the variations leading to an integrated grid

across the nation.

Q 12. Adoption of PPP model for infrastructure develop-

ment of the country has not been free of criticism.

Critically discuss pros and cons of the model. (200

words) (10 marks)

Ans : This is a very standard question. Wrote very standard

answer giving positives and negatives.

(Italic answer recommended by Develop India Group - To

develop the Indian infrastructure to a world class and to

remove the infrastructure deficiency in the country, the

investment requirements are mammoth, which could not

be met by the public sector alone due to fiscal constraints

and mounting liabilities of the Government. This would

call for participation of private sector in coordination with

the public sector to develop the public infrastructure fa-

cilities. In this direction, the economic reforms initiated

in the country provide forth the policy environment to-

wards public-private partnership (PPP) in the infrastruc-

ture development. A public–private partnership (PPP) is a

government service or private business venture which is

funded and operated through a partnership of govern-

ment and one or more private sector companies.

The following generic issues, therefore, need the attention to

make the PPP model as a success storey in the infrastructure

development as in the case of some of the developed and de-

veloping economies.

n Transparency: There is a widespread consensus among

economists that transparency is crucial in the case of PPP

projects. At present, the process of executing the projects

in India involves various stages and each stage is to pass

through complicated policies and programmes.

n Risk Allocation: As the projects in the infrastructure sec-

tor requires huge investments and involve much time

frame for their execution, various risks, viz., construction

risk, financial risk, market risk, performance risk, demand

risk and residual value risk are to be allocated appropri-

ately among the constituents.

n Project Appraisal: Execution of infrastructure projects

should have a clear choice about its implementation

whether by the Government or private or both under

PPP. Also, the technicality of the project should be clear

regarding its soundness, viability and return.

n Cost and Time Overruns: Many of the projects under the

PPP are delayed due to litigations, which lead to cost and

time overruns in their implementation.

n Government Guarantee: Generally, investors look for Gov-

ernment guarantee for their investments and their re-

turn before entering into a venture. Constant changes in


183

http

://www.dev

elop

indiag

roup

.co.in/


the procedures for offering Government guarantees dis-

courage the investment opportunities.

n Centre-State Disagreement: Execution of some of the

projects like airport development, road, etc., are delayed

due to disagreement between the Centre and the State

Governments in various aspects, particularly locational

choice, cost sharing structure, political disagreement,

etc., which are to be avoided with appropriate policies,

political will, cooperation, coordination, dedication and

determination.

n Regulatory Independence: In the infrastructure sector,

regulatory bodies like Telecom Regulatory Authority of

India, Central Electricity Regulatory Commission, State

Electricity Regulatory Commissions, Tariff Authority of

Major Ports, National Highway Authority of India and Air-

port Authority of India have established as autonomous

agencies to regulate the activities coming under their

jurisdiction.

n Corporate Governance: Good corporate governance will

succeed in attracting a better deal of public interest be-

cause of its apparent importance for the economic health

of corporates and society in general. The corporate gov-

ernance framework should ensure that timely and accu-

rate disclosure is made on all material matters.

Q 13. Bringing out the circumstances in 2005 which forced

amendment to section 3(d) in Indian Patent Law, 1970,

discuss how it has been utilized by the Supreme Court

in its judgement in rejecting Novartis’ patent applica-

tion for Glivec. Discuss briefly the pros and cons of the

decision. (200 words) (10 marks)

Ans : Note: I didn’t know circumstances specific to the amend-

ment to 3(d), but knew the circumstances leading to

amendment of patent law itself.

Section 3(d) of the Patent law allows for patents in drugs

only if the molecule displays a novel and significant im-

provement in efficiency. A patent cannot be given for

minor / frivolous changes. The Supreme Court interpreted

‘efficiency’ to mean therapeutic efficiency and not just

bio availability. This is needed to prevent frivolous patent-

ing or patent evergreening where drug makers renew

their patents on drugs by making frivolous incremental

changes.

Circumstances leading to amendment

1. India became a member of WTO and signed TRIPS. This

required it to amend its patent laws to bring in product

patenting, compulsory licensing etc and make them TRIPS

compliant.

2. But to protect public health from patent evergreening,

Sec 3(d) was amended to say that patent be given only for

significant increase in efficiency of drugs.

Pros and Cons of the decisions are very standard, and I wrote

3-4 pros and cons each.

Q 14. What do you understand by Fixed Dose Drug Combi-

nations (FDCs)? Discuss their merits and demerits. (200

words) (10 marks)

Ans : Had no idea. (Italic answer recommended by Develop

India Group - Combination products, also known as fixed

dose drug combinations (FDCs), are combinations of two

or more active drugs in a single dosage form. The Food

and Drug Administration, USA defines a combination prod-

uct as ‘a product composed of any combination of a drug

and a device or a biological product and a device or a drug

and a biological product or a drug, device, and a biologi-

cal product’. It is widely accepted that most drugs should

be formulated as single compounds. Fixed ratio combina-

tion products are acceptable only when the dosage of

each ingredient meets the requirement of a defined popu-

lation group and when the combination has a proven ad-

vantage over single compounds administered separately

in therapeutic effect, safety or compliance. FDCs are

highly popular in the Indian pharmaceutical market and

have been particularly flourishing in the last few years.

The rationality of FDCs should be based on certain as-

pects such as:

1. The drugs in the combination should act by different

mechanisms.

2. The pharmacokinetics must not be widely different.

3. The combination should not have supra-additive toxicity

of the ingredients.

Most FDCs have the following demerits :

1. Dosage alteration of one drug is not possible without al-

teration of the other drug.

2. Differing pharmacokinetics of constituent drugs pose the

problem of frequency of administration of the formula-

tion.

3. By simple logic there are increased chances of adverse

drug effects and drug interactions compared with both

drugs given individually.

Q 15. What do you understand by Umpire Decision Review


184

http

://www.dev

elop

indiag

roup

.co.in/


System in Cricket? Discuss its various components.

Explain how silicone tape on the edge of bat may fool

the system? (200 words) (10 marks)

Ans : UDRS is the system whereby the players can challenge

the on field umpires’ decisions - 2 unsuccessful reviews

each test innings and 1 unsuccessful review each ODI

innings. Various technologies are used by the 3rd umpire

to review the on field umpires’ decisions. These include:

1. Hot spot: This uses infrared imaging to capture the thin

edges. A white spot appears on the grey image of the bat

on the spot where the ball has touched the bat.

2. Snickometer: This uses the stumps microphone to cap-

ture the thin edges by detecting faint sounds of ball hit-

ting the bat. This is used to review faint edges.

3. Hawkeye: This predicts the ball’s line and length which it

would have followed had it not hit the pads. This is used to

review lbw decisions.

Silicone tape on the edge of the bat

1. This fools the hot spot as it interferes with the heat signa-

tures and the white spot doesn’t appear even if the ball

hits the bat’s edge.

Q 16.a What is a digital signature? What does its authenti-

cation mean? Give various salient built in features of a

digital signature. (100 words) (5 marks)

Ans : Digital signature is used for verifying authenticity of the

sender in electronic documents.

Explained the public key private key mechanism i.e. in a

digital signature, the private key of the sender is used to

encode a message and the recipient uses the public key of

the sender to decode it. If message is decoded success-

fully by the public key of the sender, then it means that it

could have been encoded only by the private key of the

sender and hence the sender himself. This is called au-

thentication.

Built in features

1. Safety, reliability.

2. Conclusively establishes that only the sender’s key could

have sent the message and hence functions as signature.

3. Only the public key is shared which doesn’t compromise

on the safety of the mechanism.

Q 16.b How does the 3D printing technology work? List out

the advantages and disadvantages of he technology.


Ans : 3D technology uses Computer Aided Designing (CAD) to

prepare the models of the object to be ‘printed’ and then

uses layers of a special plastic in an ‘additive’ process to

build the whole object. It has recently been used in the

International Space Station.

Advantages

1. No need for ISS to carry all objects they would ever need

from earth. Can help in other space missions as well.

2. Mass customization is possible.

3. Objects of virtually any shape and size can be printed like

this easily.

4. Reduces logistics costs substantially.

Disadvantages

1. It is expensive and not widely available yet.

Q 17.a What is an FRP composite material? How are they

manufactured? Discuss their applications in aviation

and automobile industries. (100 words) (5 marks)

Ans : No idea. (Italic answer recommended by Develop India

Group - Fiber Reinforced Polymer (FRP) or Glass reinforced

Polymer (GRP) is an extremely versatile material. FRP

composites and their properties can be specifically tai-

lored for the end product. This is accomplished by adjust-

ing the :

1. Resin matrix (epoxy, polyester, vinyl ester, etc)

2. Fiber reinforcement (carbon fiber, fiberglass, Kevlar, etc)

3. Amount of fiber reinforcement used

4. Orientation of the fiber (Unidirectional, woven, 0/90, etc)

5. Fabrication process (Hand laminating, closed molding,

pultrusion, etc)

6. Fillers or additives (Fire resistant materials, UV blockers,

etc.)

These many variables allow engineers and designers to ma-

nipulate the FRP composites depending on the application.

This also makes FRP composites an ideal material for a wide

range of applications.

Q 17.b What do you understand by run of the river hydro-

electricity project? How is it different from any other

hydroelectricity project? (100 words) (5 marks)

Ans : In run of the river, no water is diverted for the use in

irrigation and other purposes. Water may be stored tem-

porarily but then is released fully to generate electricity.

This is the difference from other projects. In other projects,

water may be diverted to be used for irrigation, drinking etc.

So the flow downstream is reduced.

Q 18. As an administrator, what are the key areas that you


185

http

://www.dev

elop

indiag

roup

.co.in/


would focus on in a Disaster Management System. (200

words) (10 marks)

Ans : This is a very standard question. Wrote about all the key

aspects of the entire disaster management system from

planning stage to response and rehabilitation. (Italic an-

swer recommended by Develop India Group - Natural

disasters caused by landslides, earthquakes, hurricanes,

wildfires, avalanches, floods, wind and ice storms. Disas-

ters and their management generally get discussed in

their aftermath but practically it should result in planning

and preparing the strategy to tackle and mitigate disas-

ters in a responsible and effective manner. Disasters, both

natural and unnatural, are macro level events or pro-

cesses, which induce disturbances and turmoil for a pro-

longed life-threatening environment for a community.

India is considered as the world’s most disaster prone coun-

try. Like many other countries in this region, India is

plagued by various kinds of natural disasters every year,

such as floods, drought, earthquakes, cyclones and land-

slides. Millions of people are affected every year and the

economic losses caused by natural disasters amount to a

major share of the Gross National Product (GNP). Natural

Disasters are huge economic burdens on developing

economies such as India. Every year, huge amount of re-

sources are mobilized for rescue, relief and rehabilitation

works following natural disaster occurrences.

Focused areas

1. Formulation of strategic implementation plan needs to

be taken for an effective disaster management system.

2. To achieve success in these aspects, creation of natural

disaster data and information management system should

be given prime importance among policy initiators, deci-

sion makers, and administrators at national and local lev-

els, professional bodies, financial institutions, NGOs and

voluntary organizations.

3. Local government institutions need to build up their ca-

pacities in order to meet the growing demands in the

area of disaster management. Detailed databases need

to be created on hazard occurrences containing dam-

ages caused to buildings and infrastructures and the eco-

nomic losses suffered and its accessibility should be en-

sured regarding preparedness, and research data for ef-

fective pre and post disaster analysis with data on mitiga-

tion techniques and action plans.

4. National level institutional mechanism should be en-

hanced to assist and advise in formulating short and long-

term disaster preparedness, mitigation, and prevention

techniques.)

Q 19. What are the consequences of illegal mining? Discuss

the Ministry of Environment and Forests’ concept of

GO and NO GO zones for coal mining sector. (200 words)

(10 marks)

Ans. (Italic answer recommended by Develop India Group -

Illegal mining in India could be a much bigger game. In

just two states — Goa and Karnataka, the government

lost about Rs 36,000 crore per year, because of illegally

extracted iron ore. "Annual illegal mining should be worth

over Rs 1 lakh crore. In 2010, the government consti-

tuted a commission under Justice (retired) MS Shah to

investigate illegal mining and found it rampant in Goa

and Karnataka.

Consequences of illegal mining are :

1. Illegal Immigration cocerning to healthcare

2. Environmental Challenges

3. Lead Poison on Children )

Q 20. Enumerate the National Water Policy of India. Taking

river Ganges as an example, discuss the strategies

which may be adopted for river water pollution con-

trol and management. What are the legal provisions

of management and handling of hazardous wastes in

India? (200 words) (10 marks)

Ans : (Italic answer recommended by Develop India Group -

National Water Policy is formulated by the Ministry of

Water Resources of the Government of India to govern

the planning and development of water resources and

their optimum utilization. The first National Water Policy

was adopted in September, 1987. It was reviewed and

updated in 2002 and later in 2012.

The major provisions under the policy are :

1. Envisages to establish a standardized national informa-

tion system with a network of data banks and data bases

2. Resource planning and recycling for providing maximum

availability

3. To give importance to the impact of projects on human

settlements and environment.

4. Guidelines for the safety of storage dams and other wa-

ter-related structures

5. Regulate exploitation of groundwater

6. Setting water allocation priorities in the following order:

Drinking water, Irrigation, Hydropower, Navigation, In-

dustrial and other uses.

7. The water rates for surface water and ground water


186

http

://www.dev

elop

indiag

roup

.co.in/


should be rationalized with due regard to the interests of

small and marginal farmers.

8. Though the national water policy envisages it, the water

resource management of Ganga river basins as a whole

has not made much headway.)

Q 21. Money laundering poses a serious security threat to

a country’s economic sovereignty. What is its signifi-

cance for India and what steps are required to be taken

to control this menace? (200 words) (10 marks)

Ans : (Italic answer recommended by Develop India Group - A

new era of globalization has emerged, and it is shrinking the

world and shaping domestic politics and international rela-

tionships. Globalization involves the international integration

of capital, technology, and information in a manner resulting

in a single global market and, to some degree, a global village.

This integration enables individuals and corporations to reach

around the world farther, faster, deeper, and cheaper than

ever before. However, the same aspects of globalization that

have expanded opportunities fro free-market capitalism also

have resulted in new risks. Globalization has turned the inter-

national financial system into a money launderer’s dream, si-

phoning off billions of dollars a year from economies around

the world and extending the reach of organized crime.

Generally, money laundering is Athe process by which one con-

ceals the existence, illegal source, or illegal application of in-

come to make it appear legitimate.

The Vienna Convention represents the first concerted effort

to influence the international community’s response to drug

money laundering.

Steps are required to be taken to control ML

1. India has been classified as high risk zone in terms of

money laundering.

2. Out of 140 countries, India was ranked 70th in 2013 and

93rd in 2012, by the Anti Money Laundering (AML) Basel

Index.

3. This clearly shows that India, in the present-day scenario,

is very vulnerable to money laundering activities.

4. Many acts exist in India, which directly or indirectly curbs

money laundering activities.

5. A few of such acts are:

n The Conservation of Foreign Exchange and Prevention

of Smuggling Activities Act, 1974

n The Income Tax Act, 1961

n The Benami Transactions (Prohibition) Act, 1988

n The Indian Penal Code and Code of Criminal Procedure,

1973

n The Narcotic Drugs and Psychotropic Substances Act,

1985

They proved to be inadequate in the treatment of money laun-

dering matters. To curb the instances of Money Laundering,

the Prevention of Money Laundering Act (PMLA) was intro-

duced in the Lok Sabha on 4th August 1998 and was ultimately

passed on 17th January 2003.

Apart from the PMLA, there are other steps taken by the gov-

ernment to ensure that the instances of money laundering are

prevented.

Financial intelligence Unit (FIU) : The Financial intelligence Unit

(FIU) operates in the legal framework established by the PMLA.

FIU performs the basic functions of receipt, analysis and dis-

semination of information in accordance with the international

standards set up by the Financial Action Task Force (FATF) and

Egmont Group of FIUs.

Know your Customer (KYC) Guidelines : The objective of KYC

guidelines is to prevent banks from being used, intentionally or

unintentionally, by criminal elements for money laundering or

terrorist financing activities.

Recent Changes in Prevention of Money Laundering Act

(PMLA)

Definition of “Activities of Terrorism” was not present in PMLA

2002, however the same was included in 2010 as “Transaction

involving financing of the activities relating to terrorism in-

cludes transaction involving funds suspected to be linked or

related to, or to be used for terrorism, terrorist acts or by a

terrorist, terrorist organisation or those who finance or are

attempting to finance terrorism.”)

Q 22. What are social networking sites and what security

implications do these sites present? (200 words) (10

marks)


Social networking sites are such kind of Web sites that enables

users to create public profiles within that Web site and form

relationships with other users of the same Web site who ac-

cess their profile. Social networking sites can be used to de-

scribe community-based Web sites, online discussions forums,

chatrooms and other social spaces online.

The volume and accessibility of personal information available

on social networking sites have attracted malicious people who

seek to exploit this information. The same technologies that

invite user participation also make the sites easier to infect

with malware that can shut down an organization's networks,

or keystroke loggers that can steal credentials. Common so-

cial networking risks such as spear phishing, social engineer-

ing, spoofing, and web application attacks attempt to steal a


187

http

://www.dev

elop

indiag

roup

.co.in/


person's identity. Such attacks are often successful due to the

assumption of being in a trusting environment social networks

create.

Security and privacy related to social networking sites are fun-

damentally behavioral issues, not technology issues. The more

information a person posts, the more information becomes

available for a potential compromise by those with malicious

intentions. People who provide private, sensitive or confiden-

tial information about themselves or other people, whether

wittingly or unwittingly, pose a higher risk to themselves and

others.

Information such as a person's social security number, street

address, phone number, financial information, or confidential

business information should not be published online. Similarly,

posting photos, videos or audio files could lead to an

organization's breach of confidentiality or an individual's breach

of privacy.

What are the precautions I should take?

Below are some helpful tips regarding security and privacy

while using social networking sites :

n Ensure that any computer you use to connect to a social

media site has proper security measures in place. Use and

maintain anti-virus software and keep your application

and operating system patches up-to-date.

n Use caution when clicking a link to another page or run-

ning an online application, even if it is from someone you

know. Many applications embedded within social network-

ing sites require you to share your information when you

use them. Attackers use these sites to distribute their

malware.

n Use strong and unique passwords. Using the same pass-

word on all accounts increases the vulnerability of these

accounts if one becomes compromised.

n If screen names are allowed, do not choose one that gives

away too much personal information.

n Be careful who you add as a "friend," or what groups or

pages you join. The more "friends" you have or groups/

pages you join, the more people who have access to your

information.

n Do not assume privacy on a social networking site. For

both business and personal use, confidential information

should not be shared. You should only post information

you are comfortable disclosing to a complete stranger.

n Use discretion before posting information or comment-

ing about anything. Once information is posted online, it

can potentially be viewed by anyone and may not be re-

tracted afterwards. Keep in mind that content or com-

munications on government-related social networking

pages may be considered public records.

n Configure privacy settings to allow only those people you

trust to have access to the information you post. Also,

restrict the ability for others to post information to your

page. The default settings for some sites may allow any-

one to see your information or post information to your

page; these settings should be changed.

n Review a site's privacy policy. Some sites may share infor-

mation such as email addresses or user preferences with

other parties. If a site's privacy policy is vague or does not

properly protect your information, do not use the site.)

Q 23. Cyber warfare is considered by some defense ana-

lysts to be a larger threat than even Al Qaeda or ter-

rorism. What do you understand by Cyber warfare?

Outline the cyber threats which India is vulnerable to

and bring out the state of the country’s preparedness

to deal with the same. (200 words) (10 marks)


Cyberwarfare is politically motivated hacking to conduct

sabotage and espionage. It is a form of information war-

fare sometimes seen as analogous to conventional war-

fare.

The Department of Information Technology created the

Indian Computer Emergency Response Team (CERT-In) in

2004 to thwart cyber attacks in India. That year, there

were 23 reported cyber security breaches. In 2011, there

were 13,301. That year, the government created a new

subdivision, the National Critical Information Infrastruc-

ture Protection Centre (NCIIPC) to thwart attacks against

energy, transport, banking, telecom, defence, space and

other sensitive areas. The Executive Director of the

Nuclear Power Corporation of India (NPCIL) stated in Feb-

ruary 2013 that his company alone was forced to block up

to ten targeted attacks a day. CERT-In was left to protect

less critical sectors.

A high profile cyber attack on 12 July 2012 breached the

email accounts of about 12,000 people, including those

of officials from the Ministry of External Affairs, Ministry

of Home Affairs, Defence Research and Development

Organisation (DRDO), and the Indo-Tibetan Border Po-

lice (ITBP). A government-private sector plan being over-

seen by National Security Advisor (NSA) Shivshankar

Menon began in October 2012, and intends to beef up

India's cyber security capabilities in the light of a group of


188

http

://www.dev

elop

indiag

roup

.co.in/


experts findings that India faces a 470,000 shortfall of

such experts despite the country's reputation of being an

IT and software powerhouse.)

Q 24. Article 244 of the Indian Constitution relates to ad-

ministration of scheduled areas and tribal areas.

Analyse the impact of non-implementation of the pro-

visions of the 5th schedule on growth of Left wing ex-

tremism. (200 words) (10 marks)

Ans : Article 244 is related to formation of an autonomous

State comprising certain tribal areas in Assam and cre-

ation of local Legislature or Council of Ministers or both

there for :

1. Notwithstanding anything in this Constitution, Parliament

may, by law, form within the State of Assam an autono-

mous State comprising (whether wholly or in part) all or

any of the tribal areas specified in Part I of the table ap-

pended to paragraph 20 of the Sixth Schedule and create

therefor

(a) a body, whether elected or partly nominated and

partly elected, to function as a Legislature for the

autonomous State, or

(b) a Council of Ministers, or both with such constitution,

powers and functions, in each case, as may be specified

in the law

2. Any such law as is referred to in clause ( 1 ) may, in par-

ticular,

(a) specify the matters enumerated in the State List or

the Concurrent List with respect to which the

legislature of the autonomous State shall have power

to make laws for the whole or any part thereof,

whether to the exclusion of the Legislature of the State

of Assam or otherwise;

(b) define the matters with respect to which the executive

power of the autonomous State shall extend;

(c) provide that any tax levied by the State of Assam shall

be assigned to the autonomous State in so far as the

proceeds thereof are attributable to the autonomous

State;

(d) provide that any reference to a State in any article of

this Constitution shall be construed as including a

reference to the autonomous State; and

(e) make such supplemental, incidental and

consequential provisions as may be deemed necessary

3. An amendment of any such law as aforesaid in so far as

such amendment relates to any of the matters specified

in sub clause (a) or sub clause (b) of clause (2) shall have no

effect unless the amendment is passed in each House of

Parliament by not less than two thirds of the members

present and voting.

4. Any such law as is referred to in this article shall not be

deemed to be an amendment of this Constitution for the

purposes of Article 368 notwithstanding that it contains

any provision which amends or has the effect of amend-

ing this Constitution PART XI RELATIONS BETWEEN THE

UNION AND THE STATES CHAPTER I LEGISLATIVE RELA-

TIONS Distribution of Legislative Powers.

n n n

Documents

IAS MAIN 2013 SOLVED QUESTION PAPERS- 3 … Year Question Paper... · IAS MAIN 2013 SOLVED QUESTION PAPERS- 3 (Answer written by IAS 2013 Topper Gaur av Agrawal) ... Man y companies