Note4Students
From UPSC perspective, the following things are important :
Prelims level: NCDC and its formation
Mains level: Not Much
Union Minister of Agriculture & Farmers’ Welfare has launched the Sahakar Cooptube NCDC Channel, a new initiative by National Cooperative Development Corporation (NCDC).
Note: Article 19 states that the Right to form co-operative societies is a Fundamental Right and DPSP Article 43-B provides for the promotion of co-operative societies.
Sahakar Cooptube
- The Sahakar Cooptube Channel aims to facilitate the involvement of the youth in the cooperative movement.
- Cooperatives lend strength to farmers to minimize risks in agriculture and allied sectors and act as a shield against exploitation.
- The channel will give a boost to Atmanirbhar Bharat Abhiyan under which the government has announced a series of transformative measures and sector-specific financial packages to help agriculture.
- The initiatives are steps towards One Nation One Market with the objective for India to become a food factory of the world.
Back2Basics: NCDC
- The NCDC is a statutory Corporation set up under an Act of Parliament on 13 March 1963.
- The objectives of NCDC are:
planning and promoting programmes for production, processing, marketing, storage, export and import of agricultural produce, foodstuffs, industrial goods, livestock and certain other notified commodities and services on cooperative principles and for matters concerned therewith or incidental thereto
- NCDC Act has been further amended which will broad-base the area of operation of the Corporation to assist different types of cooperatives and to expand its financial base.
- NCDC will now be able to finance projects in the rural industrial cooperative sectors and for certain notified services in rural areas like water conservation, irrigation and micro-irrigation, agri-insurance, agro-credit, rural sanitation, animal health, etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: APIs, NLEM
Mains level: Paper 3-Issue of India's dependence on China for APIs.
Whether or not the drug pricing system in India resulted in the growing dependence on China for APIs is analysed in this article.
Incentives for domestic production of APIs
- The department of pharmaceuticals (DoP) has recently notified the Production-Linked Incentive (PLI) scheme.
- The scheme aims to encourage domestic production of 41 active pharmaceutical ingredients (APIs), key starting materials (KSMs) and drug intermediaries (DIs).
- A Drug Security Committee constituted by the DoP had identified 53 APIs with high dependence on China.
Did drug price control policy increase dependence on China?
- India was self-reliant on APIs until the mid-1990s.
- Liberalisation in import restrictions led to a gradual influx of APIs from China.
- India had a more stringent price control policy before the 1990s.
- If price control system were the culprit, India would not have been self-sufficient in APIs until the mid-1990s.
- A cost-based price control system that existed until 2013 regulated the prices of both APIs and formulations.
- The approach to price control shifted from a cost-based to a market-based one since 2013.
- The new price control policy does not regulate the price of APIs.
- New price control policy regulates the prices of formulations of those APIs, which figure in the National List of Essential Medicines (NLEM).
- There are many APIs which do not fall under DPCO but are still imported in a significant way from China.
Understanding the growing dependence on China from the past perspective
- Even though India now has a less stringent drug price control policy, the dependence on Chinese imports has been growing.
- The share of China in India’s total import of APIs has increased from 61% in 2011 to 69% in 2019.
- The experience in India was that firms would tend to rely on imported APIs if they have an option.
- The Hathi Committee (1975), which had looked into why Indian firms were not engaging in the production of APIs, found that the capital invested to turnover ratio of APIs was much lower as compared to formulations.
- This ratio was 1:1 for APIs at best and 1:2.6 for formulations on average, and in some cases, as high as 1:7.2.
- Subsequently, various measures were adopted.
- The ‘ratio parameter’ mandatorily required the producers of formulations to produce a certain quantity of APIs.
- It was the government interventions to overcome the market failure that resulted in India attaining self-sufficiency in APIs.
Consider the question “What are the APIs? Examine the implications of India’s dependence on imports for API and suggest the measures to reduce such dependence.”
Conclusion
An enquiry into the causes of dependence on China needs to go much beyond price control policy and look into whether the state continued to play a proactive role during the post-1991 period to maintain an ecosystem to enhance the competence of Indian API industry.
Source-
https://www.financialexpress.com/opinion/drug-pricing-is-certainly-not-the-issue-in-growing-dependence-on-china/2046086/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Nuclear deterrence and issues with it
On 6 August 1945 world witnessed the destructive potential of the nuclear weapons. Today’s nuclear weapons are several times more destructive than the one used there. This calls for the close scrutiny of the idea of the nuclear deterrence. This article dwells over the same issue.
Context
- While Hiroshima and Nagasaki have been the last two cities to be destroyed by nuclear weapons, we cannot be sure that they will be the last.
- Since 1945, several countries have armed themselves with nuclear weapons that have much more destructive power in comparison to those that destroyed Hiroshima and Nagasaki.
Vulnerability
- Over 1,26,000 nuclear weapons have been built since the beginning of the atomic age.
- There is no realistic way to protect ourselves against nuclear weapons.
- The invention of ballistic missiles has made it impossible to intercept nuclear weapons once they are launched.
- Neither fallout shelters nor ballistic missile defence systems have succeeded in negating this vulnerability.
- Nuclear weapon states are targets of other nuclear-weapon states, but non-nuclear-weapon states are vulnerable as well.
Idea of nuclear deterrence
The idea of nuclear deterrence consists of following two proposition.
- 1) That nuclear weapons are so destructive that no country would use them.
- 2) Such use would invite retaliation in kind, and no political leader would be willing to risk the possible death of millions of their citizens.
Issues with the idea of deterrence
- 1) It is claimed that nuclear weapons do not just protect countries against use of nuclear weapons by others, but even prevent war and promote stability.
- These claims do not hold up to evidence.
- 2) The apparent efficacy of deterrence in some cases may have been due to the more credible prospect of retaliation with conventional weapons.
- 3) Implicitly, however, all nuclear-weapon states have admitted to the possibility that deterrence could fail.
- they have made plans for using nuclear weapons, in effect, preparing to fight nuclear war.
- 4) The desire to believe in the perfect controllability and safety of nuclear weapons creates overconfidence, which is dangerous.
- Overconfidence is more likely to lead to accidents and possibly to the use of nuclear weapons.
So, what prevented the nuclear war if not deterrence?
- While a comprehensive answer to this question will necessarily involve diverse and contingent factors, one essential element in key episodes is just plain luck.
Consider the question “What are the problems involved in the idea of nuclear deterrence. Also, examine the factors responsible for the failure of nuclear disarmament.”
Conclusion
Humanity has luckily survived 75 years without experiencing nuclear war, can one expect luck to last indefinitely?
Original articles:
https://www.thehindu.com/opinion/op-ed/taking-nuclear-vulnerabilities-seriously/article32279584.ece
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Debt financing versus money financing
The article addresses the issue of apprehensions over money financing. It also compares the option of borrowing from international institutions.
Issues with public spending
- Greater public spending will increase the fiscal deficit and this expansion has to be financed.
- Theoretically, it can be financed by higher taxes.
- But when the economy is in a recession, this option cannot be explored even though the balanced-budget multiplier is one.
- When the multiplier is one, output expands by exactly the same amount as the increase in government spending.
So, what are the options?
There are two options
1) Issuing debt to the public (Debt financing)
2) Borrowing from the RBI (Money financing)
Borrowing from World Bank and IMF?
This borrowing has 4 issues with it-
- 1) This borrowing will have to be paid back in hard currency.
- This would involve India having to earn hard currency by stepping up exports.
- If a stimulus of approximately 10% of the GDP is envisaged, with exports at 25% of the GDP, it would imply stepping up exports by close to 50%.
- This would be a herculean task under present circumstances.
- 2) There is the issue of conditionalities.
- It is not obvious what conditionalities will come along with the loan.
- 3) The loan is bound to take some time to be negotiated, taxing the energies of a government that ought to be engaged in the day to day battle with COVID-19.
- 4) The external debt is truly national which, arguably, government bonds held by the country’s private sector are not.
Issues with money financing
- The standard economic argument against money financing is that it is inflationary.
- However, whether a fiscal expansion is inflationary or not is related more to the state of the economy than the medium of its financing.
- When resources are unemployed, output may be expected to expand without inflation.
Consider the question “Examine the issues with the money financing of the fiscal deficit.”
Conclusion
There is no reasoned case for denying ourselves the option of money financing to take us back to pre-COVID-19 levels of output and employment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Features of the Nagara Temple Architecture
Mains level: Temple Architecture of India
The grand temple at Rama Janmabhoomi in Ayodhya will follow the Nagara style of temple architecture.
Note the various features of the Nagara and Vesara style of temple architecture from your basic references.
What is Nagara style of temple architecture?
The basic form of a Hindu temple contains the following architectural elements:
- Garbhagriha – the small room where the principal deity/deities of the temple reside
- Mandapa – the portico or hall at the entrance of the temple generally designed to house a large number of people
- Shikhara – the mountain like spire which can have different shapes from pyramidal to curvilinear
- Vahana – the mount of the main deity placed generally in line of sight from Garbhagriha
- In this style, the temple is generally constructed on an upraised platform called Jagati.
- Mandapas are present in front of the These are adorned with the Shikhara, the tallest one being above the Garbhagriha.
- The shikhara over the mandapas in the pictures of the Ayodhya Ram temple can be seen having a square base, and a rectilinear outline.
- This is called the phamsana-style shikhara. Note that the mandapa shikhara right at the entrance has an octagonal base.
Similar to Khajuraho Temple
- There are different types of Shikhara found in Indian temples.
- A comparison with Khajuraho Vishwanath temple, also built in Nagara style, shows the similarity between the two.
- Note that the main shikhara of the two are remarkably similar.
- They rise upward in a curved pyramidal fashion, ending in a horizontal fluted disc called an Amalaka topped with a Kalasha. This is called the Latina-style shikhara.
Note: This newscard is an excerpt from an original article published in Swarajya Magazine.
Back2Basics: The Ramjanmabhoomi Case
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PPP
Mains level: Aadhaar and its limitations
Haryana CM Manohar Khattar has distributed ‘Parivar Pehchan Patra’ to the eligible families and announced that welfare schemes of all departments would be linked with the PPP within the next three months.
Practice question for mains:
Q.What is Parivar Pehchan Patra (PPP) recently rolled out by Haryana Govt.? How it is beneficial compared to the Aadhaar?
What is Parivar Pehchan Patra (PPP)?
- It is an 8-digit Unique Identity Card number meant for each family to enable smooth and automatic delivery of several citizen-centric services.
- The government will establish the scheme-wise eligibility of a particular family using this 8-digit code according to the information available in the PPP of the family.
- The benefits, according to the schemes, shall automatically be transferred to the family using the same code.
- PPP will ensure that not a single beneficiary is left out from the government benefits that they are entitled to.
How is PPP different from the Aadhaar card?
- The PPP, mathematically, is an integral number of Aadhaar.
- While Aadhaar represents an individual as a unit, a PPP represents a family as a unit. Most of our government schemes are structured around the family.
- It is not structured around an individual.
- For example, ration eligibility is there for the family but the family can split it into various members as long as they are above 18 years and say they are separating entitlements for all individuals.
Will it be mandatory for every family of Haryana to get PPP?
- No, it will not be mandatory for every family of the state to obtain a PPP.
- But, PPP is mandatory for families availing benefits under government schemes.
- Also, whenever a family wants to avail any government scheme, it will have to first get a PPP to be eligible.
The logic behind
- Haryana officials said although there is a union government’s Aadhaar card, it contains individual’s details and does not cater to the entire family as a unit.
- In certain circumstances, it may not be possible for a state government to keep track of all the families residing in the state.
- Although the ration card system is there, it is not updated and does not contain adequate family records.
- With the PPP, it will be easier for the state government to maintain a complete database of all the state dwellers.
How would it work?
- To begin with, the government has already linked PPP with three social security schemes – old age Samman allowance, divyang pension, and the widow and destitute women pension scheme.
- For instance, when a family member turns 60, they will automatically get a message through the software and will automatically start getting benefits of the old-age pension if they meet the required criteria.
- Similarly, the teenagers will get messages on turning 18 years old and shall become eligible for various government schemes that will be notified to them through the software.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ammonium Nitrate and its uses
Mains level: Chemical disasters these days
The catastrophic explosion at Beirut port, Lebanon caused by the blast of over 2,700 tonnes of ammonium nitrate, has rocked the world.
Practice question:
Q. Despite a robust policy framework governing the hazardous chemicals in India, the recent gas leakage incident in Vizag highlights India’s unaddressed vulnerability to chemical disasters. Critically comment.
What is Ammonium Nitrate?
- In its pure form, ammonium nitrate (NH4NO3) is a white, crystalline chemical which is soluble in water.
- A common chemical ingredient of agricultural fertilizers, the nitrogen-rich compound is also the main component of the explosive composition known as ANFO — ammonium nitrate fuel oil.
- It is the main ingredient in the manufacture of commercial explosives used in mining and construction.
- Many Improvised Explosive Devices (IEDs) used by terrorists around the world have ANFO as the main explosive, triggered by primary explosives like RDX or TNT.
- In the majority of terror attacks in India, ammonium nitrate has been used along with initiator explosives like RDX.
Ammonium nitrate as an explosive
- Pure ammonium nitrate is not an explosive on its own.
- It is classified as an oxidiser (Grade 5.1) under the UN classification of dangerous goods.
- If mixed with ingredients like fuel or some other contaminants, or because of some other external factors, it can be very explosive.
Stored ammonium nitrate is a major fire hazard
- Large quantities of stored ammonium nitrate are regarded as a major fire hazard, with multiple reported cases across the world.
- The explosion of large storage can happen primarily in two ways.
- One is by some type of detonation or initiation because the storage comes in contact with the explosive mixture.
- Second, the blast can result due to a fire which starts in the ammonium nitrate store because of the heat generated due to the oxidation process at large scale.
Regulations in India about ammonium nitrate
- Because it is used as an ingredient for the production of explosives, anaesthetic gases, fertilizers, cold packs and has a possibility of misuse, it is highly regulated in India.
- There exists the Ammonium Nitrate Rules, 2012, under The Explosives Act, 1884.
- It defines ammonium nitrate as the compound with formula NH4NO3 including any mixture or compound having more than 45 per cent ammonium nitrate by weight.
- The manufacture, conversion, bagging, import, export, transport, possession for sale or use of ammonium nitrate is covered under The Ammonium Nitrate Rules, 2012.
- The rules also make storage of ammonium nitrate in large quantities in populated areas illegal in India.
- For the manufacture of ammonium nitrate, an Industrial licence is required under the Industrial Development and Regulation Act, 1951.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bru Tribals
Mains level: Bru-Reang Repatriation Agreement
Non-Brus of Tripura has proposed six places for settling the displaced Brus from Mizoram and set a limit for the number of families to be accommodated in two subdivisions that have borne the brunt of the 23-year-old refugee crisis.
Try this PYQ:
Q. With reference to ‘Changpa’ community of India, consider the following statement:
- They live mainly in the State of Uttarakhand.
- They rear the Pashmina goats that yield fine wool.
- They are kept in the category of Scheduled Tribes.
Which of the statements given above is/are correct? (CSP 2014)
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
Who are the Brus?
- Reangs or Brus are the second largest ethnic group in Mizoram.
- Their exodus in 1997 was spurred by violent clashes in Mamith subdivision, a Reang-dominated area when they demanded the creation of an autonomous council that was vehemently opposed by Mizo groups.
- Around 34,000 people were forced to live in sub-human conditions in tents in Tripura. No solution could be reached all these years.
- These people were housed in temporary camps at Kanchanpur, in North Tripura.
Read the complete thread here:
[Burning Issue] Bru– Reang Repatriation Agreement
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pokkali Rice
Mains level: Coastal farming and various hurdles
Farmers from West Bengal are betting on the Pokkali variety of rice from Kerala to tide over a crisis-like situation created by severe seawater incursion into paddy fields in vast areas of the Sundarbans after the cyclone Amphan.
Try this MCQ:
Q.Which of the following is the striking feature of the Pokkali Rice recently seen in the news?
a) It is bio-fortified rice for treating malnutrition
b) It is a saltwater resistant variety of rice
c) It is healthy rice used to treat diabetes
d) None of these
Pokkali Rice
- The Pokkali variety of rice is known for its saltwater resistance and flourishes in the rice paddies of coastal Alappuzha, Ernakulam and Thrissur districts.
- The uniqueness of the rice has brought it the Geographical Indication (GI) tag and is the subject of continuing research.
- It had been in the news because of its uniqueness and also because a group of people in Kerala have been trying to revive the cultivation of the rice variety in the State.
Why introduce in Sunderbans?
- About 80% of the rice paddies in the Sundarbans faced the problem of the saltwater incursion.
- If the Pokkali experiment succeeds, it would be a good step to turn around the fortunes of the farmers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- National Education Policy
The article contrasts the targets set in the National Education Polity with the present state of education in the country.
Key recommendations
- Redesigning the school curriculum to accommodate early childhood care and education.
- Ensuring universal access to education.
- Increasing gross enrolment in higher education to 50% by 2035.
- Improving research in higher education institutes by setting up a Research Foundation.
Let’s take stock of the current situation on the above-suggested parameters.
1) Universal Access to Education
- Despite the Right to Education Act-2009 retaining children remains a challenge for the schooling system.
- As of 2015-16, Gross Enrolment Ratio was 56.2% at senior secondary level as compared to 99.2% at primary level.
- Data for all groups indicates a decline in GER as we move from primary to senior secondary for all groups.
- This decline is particularly high in case of Scheduled Tribes.
NEP 2020 recommendations
- The NEP recommends strengthening of existing schemes and policies which are targeted for such socio-economically disadvantaged groups.
- Further, it recommends setting up special education zones in areas with a significant proportion of such disadvantaged groups.
- A gender inclusion fund should also be setup to assist female and transgender students in getting access to education.
2) GER to 50% in higher education
- The NEP aims to increase the GER in higher education to 50% by 2035.
- As of 2018-19, the GER in higher education in the country stood at 26.3%.
- The annual growth rate of GER in higher education in the last few years has been around 2%.
NEP 2020 recommendations
- The NEP recommends increasing capacity of existing higher education institutes by restructuring and expanding existing institutes.
- It recommends that all institutes should aim to be large multidisciplinary institutes, and there should be one such institution in or near every district by 2030.
- Further, institutions should have the option to run open distance learning and online programmes to improve access to higher education.
3) Restructuring of Higher Education Institutes
- The NEP notes that the higher education ecosystem in the country is severely fragmented.
- At present, there is complex nomenclature of higher education institutes (HEIs) in the country such as ‘deemed to be university’, ‘affiliating university’, ‘affiliating technical university’, ‘unitary university’.
- These shall be replaced simply by ‘university’.
NEP 2020 recommendations
- The NEP recommends that all HEIs should be restructured into three categories:
- 1) research universities focusing equally on research and teaching.
- 2) teaching universities focusing primarily on teaching.
- 3) degree-granting colleges primarily focused on undergraduate teaching.
- All such institutions will gradually move towards full autonomy – academic, administrative, and financial.
4) National research foundation to boost research
- The NEP states that investment on research and innovation in India, at only 0.69% of GDP, lags behind several other countries.
- The total investment on R&D in India as a proportion of GDP has been stagnant at around 0.7% of GDP.
- Of which 58% of expenditure was by government, and the remaining 42% was by private industry.
NEP 2020 recommendation
- To boost research, the NEP recommends setting up an independent National Research Foundation (NRF).
- The Foundation will act as a liaison between researchers and relevant branches of government as well as industry.
- Specialised institutions which currently fund research, such as the Department of Science and Technology, and the Indian Council of Medical Research, will continue to fund independent projects.
- The Foundation will collaborate with such agencies to avoid duplication.
5) Digital Education
- The NEP states that alternative modes of quality education should be developed when in-person education is not possible.
- But let’s look into the accessibility of such mode.
- As of 2017-18, only 4.4% of rural households have access to a computer (excludes smartphones).
- Nearly 15% have access to internet facility. Amongst urban households, 42% have access to the internet.
NEP 2020 recommendations
- Several interventions are recommended-
- (i) developing two-way audio and video interfaces for holding online classes.
- (ii) use of other channels such as television, radio, mass media in multiple languages to ensure the reach of digital content where digital infrastructure is lacking.
6) Increasing public spending on education to 6% of GDP
- Public spending of 6% of GDP was first made by the National Policy on Education 1968 and reiterated by the 1986 Policy.
- NEP 2020 reaffirms the recommendation of increasing public spending on education to 6% of GDP.
- In 2017-18, the public spending on education-includes spending by centre and states-was budgeted at 4.43% of GDP.
- In 2020-21, states in India have allocated 15.7% of their budgeted expenditure towards education.
- States such as Delhi, Rajasthan, and Maharashtra have allocated more than 18% of their expenditure on Education for the year 2020-21.
- On the other hand, Telangana (7.4%), Andhra Pradesh (12.1%) and Punjab (12.3%) lack in spending on education, as compared to the average of states.
Consider the question “Examine the provision with regard to increasing research in the country in the National Education Policy 2020.”
Conclusion
The National Education Policy is an ambitious document with the potential to transform. What is required is the zeal to implement and assess the progress by analysing the outcomes.
Source-
https://www.prsindia.org/theprsblog/national-education-policy-recommendations-and-current-scenario
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3-Self reliance in defence manufacturing.
India is one of the largest importers of defence equipment. This should have naturally made India a manufacturing hub of the defence equipment. But this is not the case. This article deals with this issue.
Context
Following China’s stance of open belligerence towards India, making war preparedness a top priority. It is against this backdrop, the Defence Production and Export Promotion Policy 2020 was unveiled.
Key features
- It aims for domestic output worth ₹1.75 trillion of aerospace and defence goods and services by 2025.
- Of which exports is aimed at ₹35,000 crore.
- It has various strategic initiatives that would aid the indigenous development of modern weaponry from hypersonic missiles and ace sensors to stealth submarines and fly-by-wire fighter jets.
Why India lacks indigenous capacity
- If India’s dependence on foreign suppliers of armaments was not for lack of trying.
- Our Defence Research and Development Organisation (DRDO) exists for this very purpose.
- DRDO scientists claim success in several projects, including the Tejas design.
- But decisions on procurements for our armed forces are made through a complex process—involving service chiefs, technocrats and politicians—that ends up favouring foreign purchases.
- This is this convenient, as off-the-shelf wares are readily available abroad.
- The finer details of defence deals are usually confidential, after all, and the payments huge.
- By one estimate, India was the world’s third largest military spender in 2019, with a bill of over $71 billion, after the US and China.
Issues and Challenges in partnership with private players
- So far, efforts to get our private sector into the act have not fared too well, despite all our schemes to attract them.
- Long-drawn out acquisition processes may partly be to blame for this.
- Companies are apprehensive of investment without an assurance of a ready market.
- But by the time their prototypes are tested and approved for induction by our forces, they risk being outmoded by advances made abroad.
- In the US, spin-offs from defence research have been behind many technological innovations of everyday utility.
- So, the knowledge acquired in defence research has the potential to benefit the other sectors as well.
Consider the question “Being one of the top importers of defence equipment India is well placed to enhance its domestic manufacturing capacity of defence equipment. Yet, India lacks it after repeated attempts to achieve it. Examine the reasons for this and suggest measures to overcome this anomaly.”
Conclusion
If a big push for “made in India” defence systems calls an entire ecosystem of experiments, ideas and technical wizardry into being, it could help our economy leap ahead too.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Adoption of PPP model by the Indian Railways and related issues
Adoption of the PPP model by the Indian Railways will help it get rid of the many issues it suffers from. This article analyses the two initiative by the railways in this regard and spells out their advantages and challenges.
Significance of railways
- Its route spans about 68000 km.
- It employs over 1.2 mn people and generates approximately Rs 2 lakh cr annually.
- So, a major contributor to jobs, GDP, and mobility.
- Efficient and optimal use of the railways could further add up to 1% to GDP.
Adopting PPP model
- The time has come to modernise the Indian Railways, make it world-class, and a key driver of the country’s growth.
- To do so, India must involve the best resources via PPP to bring in the latest technology, leading practices, and efficiencies.
- PPP has been actively deployed as a mechanism in Europe and Japan.
Two initiatives of Indian Railways involving PPP model
1. Operation of trains on selected route
- Indian Railways’ proposal features a list of 109 pairs of routes through 151 trains to private operators.
- Proposed routes include Delhi–Mumbai, Delhi–Chennai, Mumbai–Chennai, and others.
- PPP operators are expected to finance, procure, operate, and maintain the allocated trains.
- The concession period will be for 35 years.
Advantages
- The initiative will bring in cutting-edge, technologically advanced rolling stock, shorter journey times, enhanced job growth, better safety, and best-in-class service standards.
- It will bridge the demand-and-supply deficit for passengers.
- The PPP investment is expected to be in the range of Rs 30,000 cr—in a Make in India–led growth strategy.
- Encouraging domestic manufacturing of rolling stock, these projects will also create direct and indirect employment.
2. Redevelopment of railway stations
- Initially, 50 stations will be bid out and funded through land monetisation as well as user charges.
- The modernisation and redevelopment of stations will be conducted primarily through Indian Railway Stations Development Corporation Limited, Rail Land Development Authority and other central government entities.
- The PPP basis is under the Design, Build, Finance, Operate and Transfer model.
- It entails utilising the potential of real estate for excess land and air space in and around the stations for development through PPP.
- The 50 big stations have been planned to be bid out through the PPP route aimed at bringing in investments exceeding Rs 50,000–60,000 crores.
Challenges involved in the adoption of PPP model
- One of the primary challenges will be independence of adjudication in disputes.
- Other issues will be the pricing strategy to remain competitive yet stay profitable, given the competition through air, road, and to some extent, water transport.
- An independent regulator could go a long way towards allaying concerns of equitable treatment of PPP operators and ought to be considered strongly.
Consider the question “Examine the opportunities and challenges in the adoption PPP model by the Indian Railways.”
Conclusion
The introduction of PPP in Railways is a welcome step and can lead to the kind of reforms that can help transform India and make it a global leader.
Source
https://www.financialexpress.com/infrastructure/railways/reforms-driven-agenda-why-its-time-to-modernise-the-indian-railways-make-it-world-class/2044774/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FATF
Mains level: Money laundering and terror financing
Ahead of the crucial FATF meetings in October, Indian agencies plan to highlight its inaction in the Pulwama, 26/11 Mumbai attack and Daniel Pearl murder cases.
Practice question for mains:
Q.What is FATF? Discuss its role in combating global financial crimes and terror financing.
What is the FATF?
- FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
- The FATF Secretariat is housed at the OECD headquarters in Paris.
- It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.
Why is Pakistan under its scanner?
- Pakistan has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks.
- FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.
- In June 2018, Pakistan gave a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime, and to address its strategic counter-terrorism financing-related deficiencies.
- Pakistan and the FATF then agreed on the monitoring of 27 indicators under a 10-point action plan, with specific deadlines.
- The understanding was that the successful implementation of the action plan, and its physical verification by the APG, would lead the FATF to move Pakistan out of the Grey List.
- However, Islamabad managed to satisfy the global watchdog over just five of them.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pyrolysis
Mains level: Not Much
Plastic from used personal protective equipment (PPE) can be transformed into renewable liquid fuels using chemical a process called pyrolysis, says a new study.
Try this PYQ:
Q.In the context of which one of the following are the terms ‘pyrolysis and plasma gasification’ mentioned? (CSP 2019)
(a) Extraction of rare earth elements
(b) Natural gas extraction technologies
(c) Hydrogen fuel-based automobiles
(d) Waste-to-energy technologies
What is Pyrolysis?
- Pyrolysis is the thermal decomposition of materials at elevated temperatures in an inert atmosphere.
- It involves a change in chemical composition. The word is coined from the Greek-derived elements pyro “fire” and lysis “separating”.
- It is most commonly used in the treatment of organic materials. It is one of the processes involved in charring wood.
- It is considered as the first step in the processes of gasification or combustion.
How does it work?
- In general, pyrolysis of organic substances produces volatile products and leaves a solid residue enriched in carbon, char.
- Extreme pyrolysis, which leaves mostly carbon as the residue, is called carbonization.
- The process is used heavily in the chemical industry, for example, to produce ethylene, many forms of carbon, and other chemicals from petroleum, coal, and even wood, to produce coke from coal.
Applications
- Aspirational applications of pyrolysis would convert biomass into syngas and biochar, waste plastics back into usable oil, or waste into safely disposable substances.
Limitations and Concerns
- The technology requires drying of soil prior to treatment.
- Limited performance data are available for systems treating hazardous wastes containing polychlorinated biphenyls (PCBs), dioxins, and other organics.
- There is concern that systems that destroy chlorinated organic molecules by heat have the potential to create products of incomplete combustion, including dioxins and furans.
- These compounds are extremely toxic in the parts per trillion range.
- The molten salt is usually recycled in the reactor chamber. However, depending on the waste treated (especially inorganics) and the amount of ash, spent molten salt may be hazardous and require special care in disposal.
- Pyrolysis is not effective in either destroying or physically separating inorganics from the contaminated medium.
- Volatile metals may be removed as a result of the higher temperatures associated with the process, but they are not destroyed.
- When the off-gases are cooled, liquids condense, producing an oil/tar residue and contaminated water.
- These oils and tars may be hazardous wastes, requiring proper treatment, storage, and disposal.
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From UPSC perspective, the following things are important :
Prelims level: HEFA
Mains level: Higher education infra development
The JNU has got approval for a fund from the Higher Education Funding Agency (HEFA) for the construction of new infrastructure.
Try this PYQ:
What is the aim of the programme ‘Unnat Bharat Abhiyan’? (CSP 2017)
(a) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities.
(b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.
(c) Strengthening India’s scientific research institutions in order to make India a scientific and technological power.
(d) Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.
About HEFA
- HEFA is a joint venture company of Canara Bank and Ministry of Human Resource Development.
- It provides financial assistance for the creation of educational infrastructure and R&D in India’s premier educational institutions.
- All the Centrally Funded Higher Educational Institutions will be eligible to join as members of the HEFA.
- For joining as members, the educational institution must agree to escrow a specific amount from their internal accruals for a period of 10 years to the HEFA.
Funding pattern of HEFA
- HEFA will have an authorized capital of 2,000 crore rupees and the government equity would be 1,000 crore
- It also mobilizes CSR funds from Corporates/PSUs which will, in turn, be released for promoting research and innovation in these institutions on a grant basis.
- The principal portion of the loan will be repaid through the ‘internal accruals’ of the institutions earned through the fee receipts, research earnings etc.
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From UPSC perspective, the following things are important :
Prelims level: Indian Peafowl
Mains level: Wildlife conservation and various policy efforts
This newscard is an excerpt from the original article published in the D2E.
Try this PYQ:
Q.Which one of the following is the national aquatic animal of India? (CSP 2015)
(a) Saltwater crocodile
(b) Olive ridley turtle
(c) Gangetic dolphin
(d) Gharial
Indian Peafowl
- The Indian peafowl is a native of India and some parts of Pakistan and Sri Lanka.
- The Arakan hills prevented their spread further east while the Himalayas and the Karakoram did so northwards.
- As our national bird, the peacock has the utmost level of legal protection.
Peacock vs. Peafowl
- Only the males of the species are peacocks.
- The females are properly called peahens, while young birds less than a year old are known as peachicks.
- Collectively they are known as peafowl, regardless of age or gender.
- Peacocks are male Indian peafowl (Pavo cristatus) belonging to the Phasianidae family
Various protections
- It comes under Section 51 (1-A) of Schedule I of the Wild (Life) (Protection) Act, 1972, with imprisonment that may be extended up to seven years, along with a fine that shall not be less than Rs 10,000.
- Since 2014, Indian Peafowl has been protected under Appendix III of the CITES.
- They are listed under the ‘Least Concern’ (LC) category of the IUCN Red Data List.
Threats
- Despite this, these birds experienced dwindling populations for many decades due to habitat loss, poaching and contamination of their food sources.
- In 1991, the peafowl population census conducted by the WWF revealed that 50 per cent of the species had declined, compared to their number at the time of independence.
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From UPSC perspective, the following things are important :
Prelims level: Swadesh Darshan Scheme
Mains level: Various initiaitves tourism promotion
Union Minister for Culture & Tourism has inaugurated the “Thenzawl Golf Resort” Project at Aizawl, Mizoram.
Try this question for mains:
Q. Swadesh Darshan Scheme is one of the most ambitious schemes to transform the tourism industry in India. Comment.
Thenzawl Golf Resort Project
- The Project is sanctioned under the Integrated Development of New Eco-Tourism under Swadesh Darshan- North East Circuit.
- It is designed by Graham Cooke and Associates, one of top-ranked Canada based Golf Course architectural firm.
- It is designed to have facilities of international standards.
- The competitive advantage of Thenzawl Golf Course is that it will provide quality golfing experience and international facilities at a fair price.
Back2Basics: Swadesh Darshan Scheme
- Swadesh Darshan Scheme is one of the flagship schemes of the Ministry of Tourism, for development of thematic circuits in the country in a planned and prioritized manner.
- The scheme was launched in 2014 -15 as a Central Sector Scheme.
- It aims for integrated development of theme-based tourist circuits in the country.
- Under the scheme, the identified thematic circuits for development are: North-East Circuit, Buddhist Circuit, Himalayan Circuit, Coastal Circuit, Krishna Circuit, Desert Circuit, Tribal Circuit, Eco Circuit, Wildlife Circuit, Rural Circuit, Spiritual Circuit, Ramayana Circuit, Heritage Circuit, Sufi Circuit, and Tirthankara Circuit.
- “Development of North East Circuit: Imphal & Khongjom” is the first project implemented under the Scheme.
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From UPSC perspective, the following things are important :
Prelims level: Finance commission and related constitutional provisions
Mains level: Implication in federal relation; scope for reforms
The Financial Stability Report (FSR) released by RBI recently has once again underlined the vulnerability of the Indian public sector banks (PSBs). They have been under a severe balance sheet crisis even before the pandemic, and the crisis created by the pandemic, and the moratorium offered, will explode when the chickens come to roost.
Current banking scenario in India
According to the FSR
- The gross non-performing assets would go up from 11.3% in March 2020 to 15.2% in March 2021, and to 16.3% under a very severe stress scenario.
- The CRAR is estimated to deteriorate from 14.6% in March to 13.3% in the baseline scenario, and to 11.8% under a very severe stress scenario.
- The volume of recapitalisation required is humongous.
What is a Non-Performing Asset (NPA)?
- You may note that for a bank, the loans given by the bank is considered as its assets. So if the principle or the interest or both the components of a loan is not being serviced to the lender (bank), then it would be considered as a Non-Performing Asset (NPA).
- Any asset which stops giving returns to its investors for a specified period of time is known as Non-Performing Asset (NPA).
- Generally, that specified period of time is 90 days in most of the countries and across the various lending institutions. However, it is not a thumb rule and it may vary with the terms and conditions agreed upon by the financial institution and the borrower.
Reasons for rise in NPA in India
- Historical factors -Between early 2000’s and 2008 Indian economy were in the boom phase. During this period Banks especially Public sector banks lent extensively to corporate. However, the profits of most of the corporate dwindled due to slowdown in the global economy, the ban in mining projects, and delay in environmental related permits affecting power, iron and steel sector, volatility in prices of raw material and the shortage in availability of. This has affected their ability to pay back loans and is the most important reason behind increase in NPA of public sector banks.
- Relaxed lending norms : One of the main reasons of rising NPA is the relaxed lending norms especially for corporate honchos when their financial status and credit rating is not analyzed properly. Also, to face competition banks are hugely selling unsecured loans which attributes to the level of NPAs.
- Lack of contigency planning: Banks did not conducted adequate contingency planning, especially for mitigating project risk. They did not factor eventualities like failure of gas projects to ensure supply of gas or failure of land acquisition process for highways.
- Restructuring of loan facility was extended to companies that were facing larger problems of over-leverage& inadequate profitability. This problem was more in the Public sector banks.
- Unforseen economic shocks like Demonetization and Covid 19
What is the impact of NPAs?
- Lenders suffer a lowering of profit margins.
- Stress in banking sector causes less money available to fund other projects, therefore, negative impact on the larger national economy.
- Higher interest rates by the banks to maintain the profit margin.
- Redirecting funds from the good projects to the bad ones.
- As investments got stuck, it may result in it may result in unemployment.
- In the case of public sector banks, the bad health of banks means a bad return for a shareholder which means that the government of India gets less money as a dividend. Therefore it may impact easy deployment of money for social and infrastructure development and results in social and political cost.
- Investors do not get rightful returns.
- Balance sheet syndrome of Indian characteristics that is both the banks and the corporate sector have stressed balance sheet and causes halting of the investment-led development process.
- NPAs related cases add more pressure to already pending cases with the judiciary.
What are the various steps taken to tackle NPAs?
1.Corporate Debt Restructuring – 2005
It is for reducing the burden of the debts on the company by decreasing the rates paid and increasing the time the company has to pay the obligation back.
2.5:25 rule – 2014
- Also known as, Flexible Structuring of Long Term Project Loans to Infrastructure and Core Industries.
- It was proposed to maintain the cash flow of such companies since the project timeline is long and they do not get the money back into their books for a long time, therefore, the requirement of loans at every 5-7 years and thus refinancing for long term projects.
3.Joint Lenders Forum – 2014
- It was created by the inclusion of all PSBs whose loans have become stressed. It is present so as to avoid loans to the same individual or company from different banks.
- It is formulated to prevent instances where one person takes a loan from one bank to give a loan of the other bank.
4.Mission Indradhanush – 2015
The Indradhanush framework for transforming the PSBs represents the most comprehensive reform effort undertaken since banking nationalization in the year 1970 to revamp the Public Sector Banks (PSBs) and improve their overall performance by ABCDEFG.
- A-Appointments: Based upon global best practices and as per the guidelines in the companies act, separate post of Chairman and Managing Director and the CEO will get the designation of MD & CEO and there would be another person who would be appointed as non-Executive Chairman of PSBs.
- B-Bank Board Bureau: The BBB will be a body of eminent professionals and officials, which will replace the Appointments Board for the appointment of Whole-time Directors as well as non-Executive Chairman of PSBs
- C-Capitalization: As per finance ministry, the capital requirement of extra capital for the next four years up to FY 2019 is likely to be about Rs.1,80,000 crore out of which 70000 crores will be provided by the GOI and the rest PSBs will have to raise from the market.
| Financial Year |
Total Amount |
| FY15-16 |
25,000 Crore |
| FY16-17 |
25,000 Crore |
| FY17-18 |
10,000 Crore |
| FY18-19 |
10,000 Crore |
| Total |
70,000 Crore |
- D-DEstressing: PSBs and strengthening risk control measures and NPAs disclosure.
- E-Employment: GOI has said there will be no interference from Government and Banks are encouraged to take independent decisions keeping in mind the commercial the organizational interests.
- F-Framework of Accountability: New KPI(key performance indicators) which would be linked with performance and also the consideration of ESOPs for top management PSBs.
- G-Governance Reforms: For Example, Gyan Sangam, a conclave of PSBs and financial institutions. Bank board Bureau for transparent and meritorious appointments in PSBs.
5.Strategic debt restructuring (SDR) – 2015
- Under this scheme banks who have given loans to a corporate borrower gets the right to convert the complete or part of their loans into equity shares in the loan taken company. Its basic purpose is to ensure that more stake of promoters in reviving stressed accounts and providing banks with enhanced capabilities for initiating a change of ownership in appropriate cases.
6.Asset Quality Review – 2015
- Classify stressed assets and provision for them so as to secure the future of the banks and further early identification of the assets and prevent them from becoming stressed by appropriate action.
7.Sustainable structuring of stressed assets (S4A) – 2016
- It has been formulated as an optional framework for the resolution of largely stressed accounts.
- It involves the determination of sustainable debt level for a stressed borrower and bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide upside to the lenders when the borrower turns around.
8.Insolvency and Bankruptcy code Act-2016
- It has been formulated to tackle the Chakravyuha Challenge (Economic Survey) of the exit problem in India.
- The aim of this law is to promote entrepreneurship, availability of credit, and balance the interests of all stakeholders by consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner and for maximization of value of assets of such persons and matters connected therewith or incidental thereto.
9.Pubic ARC vs. Private ARC – 2017
- This debate is recently in the news which is about the idea of a Public Asset Reconstruction Companies (ARC) fully funded and administered by the government as mooted by this year’s Economic Survey Vs. the private ARC as advocated by the deputy governor of RBI Mr. Viral Acharya.
- Economic survey calls it as PARA (Public Asset Rehabilitation Agency) and the recommendation is based on a similar agency being used during the East Asian crisis of 1997 which was a success.
10.Bad Banks – 2017
- Economic survey 16-17, also talks about the formation of a bad bank which will take all the stressed loans and it will tackle it according to flexible rules and mechanism. It will ease the balance sheet of PSBs giving them the space to fund new projects and continue the funding of development projects.
11.Prompt corrective action
- PCA is a framework under which banks with weak financial metrics are put under watch by the RBI.
- The RBI introduced the PCA framework in 2002 as a structured early-intervention mechanism for banks that become undercapitalised due to poor asset quality, or vulnerable due to loss of profitability.
- It aims to check the problem of Non-Performing Assets (NPAs) in the Indian banking sector.
12.RBI’s revised stressed asset resolution norms
- The RBI in June 2019 released a revised set of norms on stressed asset resolution which are substantially less stringent from the previous one.
About the February 2018 RBI circular
- Through a notification issued on Feb 12, 2018 the RBI laid down a revised framework for the resolution of stressed assets, which replaced all its earlier instructions on the subject.
- Banks were required to immediately start working on a resolution plan for accounts over Rs 2,000 crore, which was to be finalised within 180 days.
- In the case of non-implementation, lenders were required to file an insolvency application.
- RBI termed it necessary to substitute the existing guidelines with a harmonized and simplified generic framework for resolution of stressed assets.
- Also, banks have to recognise loans as non-performing even if the repayment was delayed by just one day.
- Not adhering to the timelines in the circular would attract stringent supervisory and enforcement actions.
What did the revised framework replace?
- The circular went into effect on the same day that it was issued, and all existing schemes for stressed asset resolution were withdrawn with immediate effect.
- The circular was ostensibly intended to stop the “evergreening” of bad loans the practice of banks providing fresh loans to enable timely repayment by borrowers on existing loans.
- The RBI warned banks that not adhering to the timelines laid down in the circular, or attempting to evergreen stressed accounts, would attract stringent supervisory and enforcement actions.
New circular of the RBI
- The new framework gives lenders a breather from the one-day default rule whereby they had to draw up a resolution plan (RP) for implementation within 180 days of the first default.
- It gives lenders (scheduled commercial banks, all-India financial institutions and small finance banks) 30 days to review the borrower account on default.
- During this review period, lenders may decide on the resolution strategy, including the nature of the RP and the approach for its implementation.
- Lenders may also choose to initiate legal proceedings for insolvency or recovery.
- The new circular is also applicable to small finance banks and systemically important non-deposit taking non-banking financial companies (NBFCs) and deposit-taking NBFCs.
- In cases where the RP is to be implemented, all lenders have to enter into an intercreditor agreement (ICA)for the resolution of stressed assets during the review period to provide for ground rules for finalisation and implementation of the RP in respect of borrowers with credit facilities from more than one lender.
- Under the ICA, any decision agreed to by the lenders representing 75 per cent of total outstanding credit facilities by value and 60 per cent by number will be binding upon all the lenders. In particular, the RPs will provide for payment which will not be less than the liquidation value due to the dissenting lenders.
- In cases where the aggregate exposure of a borrower to lenders (scheduled commercial banks, all-India financial institutions and small finance banks) is ₹2,000 crore and above, the RP has to be implemented within 180 days from the end of the review period, and the reference date has been set as June 7, 2019.
- In the case of borrowers in the ₹1,500 crore and above but less than ₹2,000 crore category, January 1, 2020 has been set as the reference date for implementing the RP. In the less than ₹1,500 crore category, the RBI will announce the reference date in due course.
What if the Resolution Plan is delayed?
- There is a disincentive for banks if they delay implementing a viable resolution plan.
- In case the plan is not implemented within 180 days from the end of the review period, banks have to make additional provision of 20% and another 15% if the plan is not implemented within 365 days from the start of the review period.
- The additional provisions would be reversed if resolution is pursued under Insolvency and Bankruptcy Code (IBC).
Further reforms needed
- Banks have to accept losses on loans (or ‘haircuts’).
- They should be able to do so without any fear of harassment by the investigative agencies.
- The Indian Banks’ Association has set up a six-member panel to oversee resolution plans of lead lenders. To expedite resolution, more such panels may be required.
- An alternative is to set up a Loan Resolution Authority, if necessary through an Act of Parliament.
- Also, the government must infuse at one go whatever additional capital is needed to recapitalise banks — providing such capital in multiple instalments is not helpful
- The quality of lending by PSB must be improved in future so that the same problem does not arise again.
- To provide Public sector banks with greater autonomy the shareholding of the government can be reduced to less than 50 percent or 33 percent.
- A second requirement is that public sector banks should become board-managed institutions, with the board responsible for all appointments, including that of the chief executive officer (CEO). If the shares of the government are actually transferred to a holding company, then decisions regarding appointments could be taken by the board of the new company on the recommendation of the board of the bank.
- The objective of creating a genuinely commercial environment in which public sector banks can function and managements are made accountable can only be achieved if the government is willing to step back from exercising direct control.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Issues around JK; Federalism in India
The articles talk about various myths that have been building around the issues of Jammu and Kashmir. Not only does these myths affect the political outlook towards the state but is also responsible for people’s perspective on this whole story. Go on and read to understand further..
The myths
Kashmir has been a favourite site of our national mythmaking; myths that have over the years assumed larger-than-life manifestations in our collective psyche.
#Myth1
- Article 370 is considered as the root cause of terrorism in Jammu and Kashmir.
- But there is a little material basis to it — neither Article 370 can be considered as responsible for terrorism in the Valley nor has its removal ensured a reduction in terrorism.
#Myth2
- Article 370 is also held responsible for ruining J&K, stalling its development, preventing proper health care and blocking industries. Once again, these arguments also lack merit and evidence.
- J&K, as a matter of fact, has been doing much better than most other Indian States and one of the reasons for this was the land reforms carried out in the State in the early 1950s which was possible precisely because of the presence of Article 370.
- Also, private investors do not set up shop in Kashmir due to militancy which is a product of an existing conflict; not because of Articles 370 or 35A.
#Myth3
- If J&K is doing better than the other Indian States, it is because of the massive amounts of funds provided by New Delhi.
- The real argument here is not whether Kashmir received funding from New Delhi but massive funding as it is often made out to be.
- Funds from the center can be divided as:
- Funds to take care of J&K government’s revenue deficit: J&K, for historical reasons, has had a bloated bureaucracy in comparison to other States and their salaries and pensions have been financed by the central government. But these funds do little for the State’s economy or the general population.
- Then there are routine transfers of funds from the Centre to J&K just as transfers take place from New Delhi to other States.
- Finally, J&K also received funds due to its special category State status which again is a case with several other Indian States.
- Put differently, J&K’s better performance in comparison to most other Indian States is at least partly because of Article 370, and its well-being is not necessarily a result of New Delhi’s economic packages.
#Myth4
- Development can defeat militancy and insurgency.
- The reality is that development may not lead to the pacification of the conflict in Kashmir.
- The Kashmir conflict is a function of complex historical grievances, politico-ethnic demands, increasing religious radicalisation, and Pakistan’s unrelenting interference in the Kashmir Valley.
- It would be simplistic to imagine that such a multi-layered and complex conflict can be resolved by development alone.
The deep impact of mythmaking
- Changed the way how common people understand and treat Kashmir and Kashmiris.
- Ideas like “Kashmir needs to be reunited with the rest of India” have become a powerful claim made by such representations and political articulations.
- Yet another popular perception about ‘Kashmiris as troublemakers and sympathisers of terror’ has led to a noticeable increase in the mistreatment of Kashmiri Muslims in the rest of the country.
Conclusion
The way forward here is not in celebrating the scrapping of Article 370. It lies in critically examining various outcomes of this process. It is essential that New Delhi work the local people and leaders to reduce the trust and legitimacy deficit that we see today.
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From UPSC perspective, the following things are important :
Prelims level: FAME
Mains level: Electric vehicles regulation in India
This newscard is an excerpt from the original article published in the D2E. It focuses on India for not having adequate legislations that can prevent illegal dumping of spent lithium batteries ahead of the FAME-I and II scheme.
Practice question for mains:
Q.What are the different phases of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) Scheme? Discuss various challenges in adopting EV technology in India.
Background
- Electric vehicles (EV) are a part of the new normal as the global transportation sector undergoes a paradigm shift, with a clear preference towards cleaner and greener vehicles.
- Like its western counterparts and China, India has pushed the mandate for EVs as well, through schemes such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) I and FAME II.
- EV sales in the country are expected to grow annually at a compound annual growth rate of 35 per cent till 2026, according to a market survey by news daily Economic Times.
Powering the EVs
- Initially, EVs were powered with lead-acid batteries. Lithium-ion batteries that include other chemical moieties like cobalt, graphite and nickel now form the heart of an EV.
- At the end of the battery lifespan, what remains is battery waste, comprising enormous amounts of chemicals such as cobalt, electrolytes, lithium, manganese oxide and nickel.
Latent threats to India
- India, at present, is underprepared for the sheer volume of EV battery waste expected in the coming decade.
- Most of our e-waste is dumped in landfills.
- Further, we do not have adequate legislation that can prevent illegal dumping of spent lithium batteries.
- This sets a dangerous precedent, as India can potentially become a lithium waste dumpsite for not just waste from domestic EVs, but also from import of spent batteries.
There is a legal loophole
- The most recent legislations — the E-waste (Management and Handling) Rules, 2011, E-waste (Management and Handling) Rules, 2016 and E-waste (Management) Amendment Rules, 2018 — evolved considerably in terms of the range of materials.
- They do not, however, include a cohesive set of rules for the safe disposal of EV batteries.
- Li-ion batteries, thus, find no mention, in any framework for end-of-life treatment or recycling.
Threats posed by un-recycled batteries
- The batteries constitute substances that — if not recycled or treated in a proper fashion — can cause harm to both the environment and humans.
- Further, lithium itself spontaneously reacts with moisture and can lead to major landfill explosions.
Global precedence over batteries regulation:
Several nations are ahead of the curve and have mandated legislations that deal with battery recycling and treatment:
(1) EU Batteries Directive
- The Batteries Directive was issued by the European Union to minimise the negative impact of batteries and accumulators on the environment.
- The Batteries Directive broke down the different stages of the process of collection and recycling of waste batteries and issued directions on how each of these must be performed.
(2) Germany
- Germany puts a legal obligation on producers to collect their products from the consumer and deposit them in containers managed by the GRS Batterien Foundation.
- It is set up by leading battery manufactures and the German Electrical and Electronics Industry Association in 1998.
- It ensures collected waste is segregated and sorted according to electrochemical composition — leading to efficient extraction of materials that can be recovered and recycled.
(3) Japan
- The Japan Battery Recycling Centre (JBRC), established in 2004, is a producer-responsibility organisation that helps keep the process of recycling waste batteries going.
- Consumers and offices — that utilise technology running on batteries — discharge delivery to collection sites placed with retailers who register with the JBRC as co-operation shops for recycling.
- The collection sites facilitate segregation of the batteries by providing four different types of labels for four different types of batteries.
Where does India stand among these?
- The Indian e-waste legal regime underwent a tremendous change over time and has only recently embraced EPR and collection of e-waste.
- A lack of clear scientific guidelines and regulations tailor-made for li-ion batteries, however, leads to poor return of investments in setting up recycling units, as it is a capital-intensive initiative.
- In October 2019, the framing of a much-awaited recycling policy was proposed by the Union government.
- It is, however, still awaited. The first step to creating a circular economy for EV batteries is to expand our laws to include li-ion battery chemistries.
We are late but not the last
- Large quantities of EV battery waste presented a unique opportunity to nurture a domestic recycling industry, which is currently in its infancy.
- The process of recycling can help recover up to half the valuable metals, including aluminium, cobalt, copper, lithium, manganese and nickel, which can then be used for secondary applications.
- Tata Chemicals Ltd, for example, commissioned a li-ion battery recycling plant in Maharashtra in 2019.
Way forward
- Governments must take a proactive stance when it comes to the development of batteries that cause less harm to the environment.
- There must be an extended producer responsibility (EPR) mechanism that ensured manufacturers of batteries to bear a legal obligation of their products being safely recycled and disposed of.
Back2Basics: Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles
FAME I
- In this phase, market creation through demand incentives was aimed at incentivizing all vehicle segments i.e. 2-Wheelers, 3-Wheelers Auto, Passenger 4-Wheeler vehicles, Light Commercial Vehicles and Buses.
- The demand incentive was available to buyers of EV in the form of an upfront reduced purchase price to enable wider adoption.
FAME II
- This phase will mainly focus on supporting electrification of public & shared transportation, and aims to support through subsidies 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.
- The scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments.
- However, privately-owned registered-2W will also be covered under the scheme as a mass segment.
- In addition, the creation of charging infrastructure will be supported in selected cities and along major highways to address range anxiety among users of electric vehicles.
Original article:
https://www.downtoearth.org.in/blog/pollution/electric-vehicle-battery-recycling-in-india-an-opportunity-for-change-72621
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