Mains Daily Question
02-October-2023
The Chairman of Bharat Missiles Ltd (BML) was watching a program on TV wherein the Prime Minister was addressing the nation on the necessity of developing a self-reliant India. He subconsciously nodded in agreement and smiled to himself as he mentally reviewed BML’s journey in the past two decades. BML had admirably progressed from producing first generation anti-tank guided missiles (ATGMs) to designing and producing state of the art ATGM weapon systems that would be the envy of any army. He sighed in reconciliation with his assumptions that the government would probably not alter the status quo of a ban on exports of military weaponry. To his surprise, the very next day he got a telephone call from the Director General, Ministry of Defence, asking him to discuss the modalities of increasing BML production of ATGMs as there is a possibility of exporting the same to a friendly foreign country. The Director General wanted the Chairman to discuss the details with his staff at Delhi next week. Two days later, at a press conference, the Defence Minister stated that he aims to double the current weapons export levels within five years. This would give an impetus of financing the development and manufacture of indigenous weapons in the country. He also stated that all indigenous arms manufacturing nations have a very good record in international arms trade. (a) As Chairman of BML, what are your views on the following points? (b) As an arms exporter of a responsible nation like India, what are the ethical issues involved in arms trade? List five ethical factors that would influence the decision to sell arms to foreign governments. (UPSC IAS Mains 2020 General Studies Paper – 4)

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02-October-2023
7. Rajesh Kumar is a senior public servant with a reputation of honesty and forthrightness, currently posted in the Finance Ministry as Head of the Budget Division. His department is presently busy organizing the budgetary support to the states, four of which are due to go to the polls within the financial year. This year’s annual budget had allotted Rs. 8300 crores for the National Housing Scheme (NHS), a centrally sponsored social housing scheme for the weaker sections of society. `775 crores have been drawn for the NHS till June. The Ministry of Commerce had long been pursuing a case for setting up a Special Economic Zone (SEZ) in a southern state to boost exports. After two years of detailed discussions between the centre and state, the Union Cabinet approved the project in August. The process was initiated to acquire the necessary land. Eighteen months ago, a leading Public Sector Unit (PSU) had projected the need for setting up a large natural gas processing plant in a northern state for the regional gas grid. The required land is already in possession of the PSU. The gas grid is an essential component of the national energy security strategy. After three rounds of global bidding, the project was allotted to an MNC, M/s XYZ Hydrocarbons. The first tranche of payment to the MNC is scheduled to be made in December. Finance Ministry was asked for a timely allocation of an additional Rs. 6000 crores for these two developmental projects. It was decided to recommend re-appropriation of this entire amount from the NHS allocation. The file was forwarded to the Budget Department for their comments and further processing. On studying the case file, Rajesh Kumar realized that this re-appropriation may cause inordinate delay in the execution of NHS, a project much publicized in the rallies of senior politicians. Correspondingly, non-availability of finances would cause financial loss in the SEZ and national embarrassment due to delayed payment in an international project. Rajesh Kumar discussed the matter with his seniors. He was conveyed that this politically sensitive situation needs to be processed immediately. Rajesh Kumar realized that diversion of funds from the NHS could raise difficult questions for the government in the Parliament. Discuss the following with reference to this case: (a) Ethical issues involved in re-appropriation of funds from a welfare project to the developmental projects. (b) Given the need for proper utilization of public funds, discuss the options available to Rajesh Kumar. Is resigning a worthy option? (UPSC IAS Mains 2020 General Studies Paper – 4)

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