Note4Students
From UPSC perspective, the following things are important :
Prelims level: Akira Ransomware
Mains level: Not Much
Central Idea
- The Computer Emergency Response Team of India (CERT-In) issued a warning about the Akira ransomware, a highly dangerous cyber threat that has been wreaking havoc on corporate networks worldwide.
What is the Akira Ransomware?
- Encryption and Data Theft: Akira ransomware encrypts sensitive data on targeted devices and appends the “akira” extension to filenames, making the files inaccessible to users.
- Shadow Volume Deletion: The ransomware deletes Windows Shadow Volume copies, hindering data recovery options for affected organizations.
- Ransom Demands: The ransomware operators extort victims by demanding a double ransom for decryption and recovery, threatening to leak sensitive data on their dark web blog if payment is not made.
Infection and Working Mechanism
- Spread Methods: Akira ransomware is primarily distributed through spear-phishing emails with malicious attachments, drive-by downloads, and specially crafted web links. It also exploits insecure Remote Desktop connections to infiltrate systems.
- Selective Encryption: The ransomware avoids encrypting specific system folders to maintain system stability.
- Negotiation Process: Each victim is given a unique negotiation password to communicate with the ransomware gang via the threat actor’s Tor site.
Major targets
- Corporate Networks: Akira ransomware targets corporate networks across various sectors, including education, finance, real estate, manufacturing, and consulting.
- Data Exfiltration: In addition to encryption, the threat actors steal sensitive corporate data, using it as leverage in their extortion attempts.
Protective Measures against Akira Ransomware
- Regular Backups: Maintain up-to-date offline backups to ensure data recovery in case of an attack.
- System Updates: Regularly update operating systems and networks, and implement virtual patching for legacy systems.
- Email Authentication: Establish Domain-based Message Authentication, Reporting, and Conformance (DMARC), Domain Keys Identified Mail (DKIM), and Sender Policy Framework (SPF) to prevent email spoofing and spam.
- Strong Authentication: Enforce strong password policies and multi-factor authentication (MFA) to secure user accounts.
- Data Encryption: Implement data-at-rest and data-in-transit encryption to protect sensitive information.
- Attachment Blocking: Block suspicious attachment file types like .exe, .pif, or .url to prevent malicious downloads.
- Security Audits: Conduct regular security audits, especially for critical networks and database servers, to identify vulnerabilities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kuril Islands
Mains level: NA
Central Idea
- Russia’s invasion of Ukraine is ongoing, leading to challenges in resource allocation along its western border.
- Japan sees a chance to reclaim the Kuril Islands, also known as the Northern Territories in Japan, which were seized by Soviet forces during WWII.
About Kuril Islands
- The Kuril Islands, also known as the Kurile Islands, are a volcanic archipelago situated in the northern Pacific Ocean.
- They stretch from the northeastern tip of Hokkaido, Japan, to the southernmost tip of Russia’s Kamchatka Peninsula.
- It consist of 56 islands, with Iturup, Kunashir, Shikotan, and Habomai being the most significant.
- The Kuril Islands are part of the Pacific Ring of Fire, an area with intense volcanic and seismic activity, due to the movement of tectonic plates.
- The islands are home to several active volcanoes, with some of the notable ones being Alaid, Ebeko, and Chikurachki.
What is the dispute?
- The islands have been a subject of territorial dispute between Russia and Japan since the end of World War II.
- After the war, the Soviet Union took control of the Kuril Islands, leading to the displacement of around 17,000 Japanese residents who were living there.
- Japan claims the southernmost islands (Iturup, Kunashir, Shikotan, and Habomai) and refers to them as the “Northern Territories.”
- Russia maintains sovereignty over the islands and considers them an integral part of its territory.
- The territorial dispute has hindered the signing of a formal peace treaty between Russia and Japan to officially end World War II hostilities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Zero FIR
Mains level: Not Much
Central Idea
- Recent incidents of violence and crime in Manipur have brought the concept of the ‘Zero First Information Report (FIR)’ into the spotlight.
- The Supreme Court has sought for all data regarding such FIRs in Manipur Gangrape Incidence.
What is Zero FIR?
- Provision and Purpose: Zero FIR allows any police station to register an FIR for a cognisable offence without assigning a regular FIR number initially.
- No diary: Whereas FIRs have serial numbers assigned to them, zero FIRs are assigned the number ‘0’. Hence the name.
- Swift Action: The relevant police station subsequently registers a fresh FIR and commences the investigation.
- Focus on Victims: It is designed to expedite complaint lodging, particularly for serious crimes involving women and children, without the need to approach multiple police stations.
- Preserving Evidence: Early registration helps prevent the loss or tampering of crucial evidence and witnesses.
- Transferred Jurisdiction: The Zero FIR is later transferred to the relevant police station where the offence occurred or where the investigation should be conducted.
How does it work?
- After a police station registers a zero FIR, it has to transfer the complaint to a police station that has the jurisdiction to investigate the alleged offence.
- Once a zero FIR is transferred, the police station with the appropriate jurisdiction assigns it a serial number, thereby converting it into a regular FIR.
Legal Provisions for Zero FIR
The provision of Zero FIR finds support in various judgments and recommendations.
- Satvinder Kaur vs. State (1999): The Delhi High Court held that a woman has the right to lodge her complaint from any place other than where the incident occurred.
- Justice Verma Committee (2012): The introduction of Zero FIR was based on the recommendation of the Justice Verma Committee, which was formed in response to the 2012 Nirbhaya gangrape case.
- Lalita Kumari vs. Govt. of UP (2014): The Supreme Court ruled that registration of an FIR is mandatory when information discloses the commission of a cognizable offence.
Back2Basics: First Information Report (FIR)
- Essential Document: An FIR is a written document prepared by the police upon receiving information about a cognisable offence.
- What is a cognisable offences? It is when an officer can arrest a suspect without a court’s warrant if/she has “reason to believe” that the person committed the offence and arrest is necessary based on certain factors.
- Triggering Investigation: It serves as the first step towards initiating the investigation process and subsequent police actions.
- Registration for Cognizable Offences: Section 154(1) of the Criminal Procedure Code (CrPC) empowers the police to register an FIR for cognizable offences.
- Punishment for Non-Registration: Section 166A of the Indian Penal Code (IPC) provides punishment for public servants failing to record information related to a cognizable offence, with imprisonment of up to two years and a fine.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Hybrid Cars, Net-Zero
Mains level: Read the attached story
Central Idea
- The global transition towards net-zero emissions is a critical aspect of combating climate change, and electric vehicles (EVs) play a pivotal role in this endeavour.
- In economically developing countries, hybrid EVs offer a significant opportunity to kickstart the transition, considering challenges related to power generation, grid capacity, and fast-charging infrastructure.
Understanding Net-Zero for Vehicles
- “Net-zero for vehicles” refers to the concept of achieving carbon neutrality or net-zero carbon emissions in the transportation sector.
- This goal involves reducing the overall carbon footprint of vehicles to balance the emissions they produce with equivalent carbon removal or offsetting measures.
Achieving Net-Zero for Vehicles:
- Decarbonization of Vehicles: This includes transitioning from conventional internal combustion engines (ICE) that rely on fossil fuels to electric vehicles (EVs) that run on electricity generated from renewable energy sources.
- Electrification: This involves increasing the adoption of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that produce zero tailpipe emissions when operating on electricity.
- Renewable Energy Integration: To ensure that EVs are truly net-zero, the electricity used to charge them must come from renewable energy sources such as solar, wind, hydro, and geothermal power.
- Sustainable Fuels: For certain types of vehicles that may not be easily electrifiable, such as heavy-duty trucks and aviation, the use of sustainable fuels can play a role in achieving net-zero emissions.
- Infrastructure Development: Building and expanding charging infrastructure for electric vehicles is essential to support the widespread adoption of EVs.
- Carbon Offsetting: Carbon offsetting involves supporting projects that remove or reduce an equivalent amount of carbon dioxide from the atmosphere, such as afforestation, reforestation, or renewable energy projects.
- Policy Support: Incentives, subsidies, emissions standards, and carbon pricing mechanisms can encourage consumers and industries to adopt cleaner transportation options.
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Types of Electric Vehicles
- Electric Vehicle (EV): Any vehicle using an electric drivetrain powered by a portable electrical energy source.
- Hybrid EV: Combines an internal combustion engine (ICE) with an electrical generator to produce electricity. It utilizes a small battery (1-5kWh) as an energy buffer but cannot be charged from the grid.
- Full EV: Also known as a battery EV or plug-in EV, it lacks an ICE, resulting in no tailpipe emissions. It has a larger battery (20-120 kWh) charged solely from the grid.
- Plug-in Hybrid EV: A hybrid EV with a larger battery (5-15 kWh) that can be charged from the grid, operating in full electric mode as long as there is energy in the battery.
- Fuel-Cell EV: Utilizes a fuel cell and a small battery buffer to produce electricity for the drivetrain.
Fuel Economy and Emissions of Hybrid and Fully Electric EVs
- Hybrid EVs: With the combination of an ICE, generator, and battery, hybrid EVs exhibit 1.5-2x higher fuel economy than conventional ICE vehicles in city driving and 1-1.5x higher in highway driving.
- Plug-in Hybrid EVs: Combine the advantages of hybrid and full EVs, covering 80-90% of short commutes in fully electric mode with 3-4x higher fuel economy than conventional vehicles.
- Life-Cycle Emissions: A comprehensive index considering well-to-wheel emissions, vehicle, and battery production, maintenance, and end-of-life recycling. Full EVs result in 19-34% lower emissions for sedans and 38-49% for SUVs compared to conventional vehicles, even with fossil-fuel-dominated energy mix in India.
Challenges in Transitioning to Electric Mobility
- Fast-Charging Infrastructure: Successful transition requires fast-charging infrastructure along highways to alleviate range anxiety and encourage full EV adoption.
- Grid Access and Reliability: Many regions lack access to a reliable grid, posing challenges for slow and fast-charging capabilities.
- Vehicle Costs: Mass-market EV prices are much lower in economically developing countries, hindering widespread adoption due to high battery costs.
Hybrid and Plug-in Hybrid EVs: Decarbonizing the Interim
- Hybrid EVs present an opportunity to lower emissions until full EVs become viable options in the long term.
- Plug-in hybrids, with their all-electric range, offer many benefits, reducing fuel costs, emissions, and oil imports.
- Regenerative braking and engine start-stop mechanisms improve fuel economy in hybrid EVs.
- Hybrid cars’ purchase price is only slightly higher than conventional vehicles, irrespective of the vehicle range.
Conclusion
- Hybrid Electric Vehicles serve as a bridge to the net-zero future, offering a practical and efficient solution for economically developing countries.
- While full EVs are the ultimate goal, the adoption of hybrid and plug-in hybrid EVs can significantly reduce emissions and fuel costs in the interim.
- A coordinated effort to address infrastructure challenges and enhance grid reliability will pave the way for a sustainable transition towards a net-zero mobility landscape powered by renewable energy sources.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Information Technology Agreement-I
Mains level: Deep Tech
Central Idea
- The office of the Principal Scientific Adviser to the Government released a draft National Deep Tech Startup Policy (NDTSP) for public feedback.
What is Deep Technology?
- Deep Tech refers to advanced and sophisticated technologies that have a significant impact on various industries.
- These technologies are complex, innovation-driven, and often require interdisciplinary collaboration.
- Examples include AI, robotics, nanotechnology, quantum computing, biotechnology, and renewable energy solutions.
- Deep Tech has the potential to revolutionize existing processes and address global challenges.
About National Deep Tech Startup Policy (NDTSP)
- The policy aims to secure India’s position in the global deep tech value chain, with a focus on areas such as semiconductors, Artificial Intelligence (AI), and space tech.
- It aims to bolster research and development in deep tech startups, streamline intellectual property regimes, provide financing support, and promote the growth of these startups through various measures.
Key objectives:
- Focus on Fundamental and Technical Problems: The NDTSP emphasizes support for deep tech startups focusing on fundamental and technical challenges rather than just commercializing existing technologies.
- Financing Support: The policy addresses the critical financing needs of deep tech startups, especially during the pre-market phase when they introduce their products or ideas.
- Streamlined Intellectual Property Regime: The policy aims to simplify the intellectual property landscape for deep tech startups to encourage innovation without undue complexities.
- Ease of Regulatory Compliance: The NDTSP proposes measures to ease regulatory requirements for deep tech startups, creating a conducive environment for their growth.
- Commercialization Support: The policy suggests providing assistance and resources to effectively manage and commercialize technologies developed by deep tech startups.
Measures to Promote Deep Tech Startups
- Export Promotion Board: The NDTSP recommends creating an Export Promotion Board to facilitate Indian deep tech startups’ entry into foreign markets.
- Coordinated Oversight: To streamline the deep tech ecosystem, the policy recommends establishing an “Inter-Ministerial Deep Tech Committee” to review and coordinate requirements effectively.
- International Collaboration and Market Access: The policy promotes strategic international collaborations and partnerships to enhance market access for Indian deep tech startups globally.
- Defense and Space Sector Focus: The NDTSP specifically targets deep tech startups in defense and space sectors, aiming to enhance their contributions to national security and space exploration.
Attracting Global Talent and Expertise
- Networking Opportunities: The policy advocates providing networking opportunities to international deep-tech startups and experts interested in contributing to India’s local ecosystem.
- Resource-Intensive Approaches: The NDTSP emphasizes resource-intensive measures to attract global talent, strengthening India’s deep tech capabilities.
- Visa and Immigration Facilitation: The policy proposes simplifying visa and immigration processes to attract foreign experts and investors to support the growth of deep tech startups.
Need for such policy
- 1997 Information Technology Agreement-I: The policy restates the government’s disappointment with international agreements, particularly the Information Technology Agreement-I. As an ITA participant, India made commitments to eliminate tariffs on a wide range of IT products.
- Multi-pronged Approach: The NDTSP advocates a coordinated, comprehensive strategy to engage with international partners and multilateral institutions to foster a supportive global environment for India’s deep tech ecosystem.
- Global Advocacy and Trade Policy Alignment: The policy emphasizes global advocacy to align trade policies with the interests of India’s deep tech startups, fostering a supportive international trade environment.
Conclusion
- The NDTSP aims to position India as a leader in the global deep tech value chain.
- Public feedback on the draft policy will further refine and strengthen India’s approach to deep tech entrepreneurship.
Back2Basics: Information Technology Agreement-I
- ITA-I is a multilateral trade agreement that aims to eliminate tariffs and trade barriers on a wide range of information technology (IT) products.
- It was negotiated under the auspices of the World Trade Organization (WTO) and came into effect on July 1, 1997.
Key Points about ITA:
- Objective: By removing tariffs and trade barriers, the agreement aims to encourage the development and adoption of IT products and services worldwide.
- Product Coverage: The ITA covers a broad range of IT products, including computers, computer peripherals, telecommunications equipment, semiconductors, software, and other IT-related goods.
- Participants: Over time, the number of participants has expanded, and as of my knowledge cutoff in September 2021, it included more than 80 WTO member countries.
- Binding Commitments: Once a country joins the ITA, its tariff removal commitments become legally binding under the WTO framework.
- Non-Tariff Barriers: While the ITA focuses on eliminating tariffs, it does not directly address non-tariff barriers to trade, such as regulatory barriers or technical requirements.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MSP and related facts
Mains level: Demand for a legal guarantee of MSP, challenges in existing structure and way forward
What’s the news?
- For years, farmers have been demanding a legal guarantee of the minimum support price (MSP), calculated according to the Swaminathan Commission formula.
Central idea
- The significance of MSP lies in its role in maintaining agricultural viability and preventing farmers from falling into debt and bankruptcy. However, the current MSP system falls short of its objectives, leaving most farmers without much-needed support. This op-ed emphasizes the need for a farmer-centric agricultural policy and a radical shift in approach to secure MSP with a legal guarantee.
Minimum support price (MSP)
- MSP is the price at which the government procures crops directly from farmers. It is calculated to be at least one-and-a-half times the cost of production incurred by the farmers.
- The MSP serves as a minimum guaranteed price for specific crops that the government considers remunerative and deserving of support for farmers.
Agriculture’s Role in the National Economy
- Employment and Livelihood: Agriculture is the largest source of employment and livelihood for about 50 percent of the country’s population, especially in rural areas. It provides direct and indirect employment for millions of people.
- Contribution to GDP: Agriculture contributes around 17–18 percent to India’s Gross Domestic Product (GDP). Although the share of agriculture in the overall GDP has been declining over the years due to the growth of other sectors, it remains a crucial component of the economy.
- Food Security: The agricultural sector plays a critical role in ensuring food security for the nation. By producing a variety of food crops like rice, wheat, pulses, fruits, and vegetables, it caters to the dietary needs of the population and helps manage food inflation.
- Source of Raw Materials: Agriculture is the primary source of raw materials for various industries, including textiles, sugar, jute, and vegetable oil. It provides the necessary inputs for industrial production, contributing to the overall industrial growth of the country.
- Export Earnings: Agricultural exports, such as rice, spices, tea, coffee, and cotton, generate foreign exchange earnings for the country. This helps improve the balance of trade and supports economic growth.
- Rural Development: The growth of agriculture has a significant impact on rural development. It improves rural infrastructure, raises the standard of living, and creates opportunities for the development of allied industries and services in rural areas.
- Poverty Alleviation: Agriculture remains an essential tool in poverty alleviation as it provides income and employment opportunities to the rural population, which is often more susceptible to poverty.
Important role of MSP
- Ensuring Income Security: MSP provides a minimum guaranteed price for farmers’ produce. It protects them from price fluctuations and market risks, ensuring a stable income for their efforts and investment in farming.
- Preventing Distress Sales: With MSP in place, farmers are less likely to resort to distress sales of their crops during times of market downturns.
- Encouraging Crop Diversification: The MSP system covers a range of crops, including cereals, pulses, oil seeds, and more. By providing a remunerative price for diverse crops, it encourages farmers to adopt crop diversification, contributing to agricultural sustainability and food security.
- Government Procurement: MSP sets a benchmark for government procurement of crops. The government procures crops at MSP through various agencies like FCI and state agencies, thereby supporting farmers and maintaining buffer stocks for food distribution.
- Addressing Regional Imbalances: MSP implementation considers regional variations in production costs and helps bridge the income gap between farmers in different regions. It addresses regional imbalances and ensures equitable growth in the agriculture sector.
Inadequacies of the MSP
- Limited Coverage: The current MSP system leaves the majority of farmers without much-needed support. Only around 6% of farmers in the country benefit from MSP, while the remaining face challenges in accessing remunerative prices for their produce.
- Debt and Bankruptcy: Despite MSP being introduced as a safety net, farmers still struggle with debt and bankruptcy. The average debt burden on a farmer’s family is over Rs 1 lakh, despite the subsidies provided by the government.
- Natural Disasters and Market Risks: Farmers remain vulnerable to natural disasters and market forces, making their income uncertain and apprehensive. Climate change adds complexity to farming, and farmers cannot be left at the mercy of such unpredictable factors.
- Insufficient Market Regulation: Middlemen exploit farmers, leading to a significant difference between the price at which farmers sell their produce and the price at which consumers buy the same produce. This lack of market regulation affects farmers’ income adversely.
- Inadequate MSP Calculation: The MSP calculation method may not fully reflect the input costs, market trends, and other economic factors, leading to an ineffective MSP for farmers.
- Rising Debt: The outstanding loan on farmers has increased significantly over the years, indicating the insufficiency of MSP and minimal increases in support prices.
Swaminathan Commission Recommendations
- Calculation of MSP: The Swaminathan Commission recommended that MSP be calculated by adding 50 percent profit to the C2 cost (comprehensive cost including imputed value of family labor) for crops. This method takes into account various input costs incurred by farmers, including labor, seeds, fertilizers, and other expenses.
- Expanded Coverage: The Commission suggested expanding the scope of MSP to cover a wide range of agricultural produce, including crops like ginger, garlic, turmeric, chili, and all agricultural produce and horticulture.
The Call for a Legal Guarantee of MSP
- Addressing Rising Debts: The outstanding loan to farmers has significantly increased over the years, reaching Rs 23.44 lakh crore in 2021–22. Legalizing MSP would offer a sustainable solution, reducing farmers’ dependence on debt.
- Fulfilling Promises: A legal guarantee makes MSP a binding obligation, ensuring farmers receive the promised prices for their crops and avoiding selling at lower rates.
- Empowering Farmers: Legalized MSP enhances farmers’ bargaining power and enables informed decisions in cropping and marketing.
- Supporting Sustainable Agriculture: MSP legislation promotes sustainable agriculture, diversification, and resilience against climate change.
- Promoting Farmer-Centric Policy: A Legal Guarantee of MSP emphasizes a farmer-centric approach, safeguarding their rights, interests, and livelihoods.
Way forward
- Reforming Agribusiness and Ensuring Fair Compensation:
- Promote farmer producer organizations (FPO’s) and cooperatives.
- Facilitate direct market access to reduce dependence on intermediaries.
- Adhering to the Swaminathan Commission’s Guidelines:
- Follow the MSP calculation as per the Swaminathan Commission’s recommendations.
- Consider comprehensive costs, including labor and input expenses.
- Promoting Sustainable Agriculture Practices:
- Encourage the adoption of sustainable farming practices and climate-resilient crop varieties.
- Invest in agricultural research and extension services for modern technologies.
- Ensuring Access to Credit and Insurance:
- Strengthen credit facilities for farmers.
- Provide insurance coverage to manage risks effectively.
- Investing in Rural Infrastructure:
- Improve irrigation facilities, storage, and transportation networks.
- Reduce post-harvest losses and improve market access.
- Promoting Agro-tourism and Direct Marketing:
- Encourage agro-tourism for additional income.
- Establish farmers’ markets and e-commerce platforms for direct marketing.
Conclusion
- The demand for a legal guarantee of MSP is a just and crucial step towards safeguarding the livelihoods of farmers. Providing farmers with a dignified life is not just a moral obligation but an economic imperative, as the growth of the agricultural sector directly impacts the nation’s prosperity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India’s clean-cooking strategy and government schemes
Mains level: India’s clean-cooking strategy, Growth of LPG sector, challenges and alternatives
What’s the news?
- For the first time, LPG consumption in Indian households saw an absolute reduction in 2023 (minus 0.5% versus FY22) after years of steady growth.
Central idea
- Over the past 15 years, the Government of India has endeavored to replicate the urban success of LPG adoption in rural and poorer households. The Grameen Vitrak Yojana and Pradhan Mantri Ujjwala Yojana (PMUY) have significantly expanded the rural distributor base from 18% to 60%. However, the recent decline in LPG consumption raised questions about its sustainability and highlighted the need for a transition.
Significant growth in the LPG sector
- Share Increase: The share of Indian households using LPG as their primary cooking fuel rose from 33% in 2011 to 71% in 2020, according to the India Residential Energy Consumption Survey (IRES) conducted by the Council on Energy, Environment, and Water (CEEW).
- Pradhan Mantri Ujjwala Yojana (PMUY): The successful implementation of PMUY, launched in May 2016, played a pivotal role in promoting LPG adoption. Over 8 crore (80 million) free LPG connections were provided to women from Below Poverty Line (BPL) households by March 2021.
- Reduction of Health and Environmental Hazards: The increased adoption of LPG has led to a reduction in health hazards caused by traditional cooking fuels like firewood, crop residues, and dung cakes. Indoor air pollution, particularly affecting women who spent long hours cooking in smoky kitchens, has decreased.
- Government Initiatives: Government policies and initiatives aimed at promoting clean cooking solutions have contributed to the growing awareness among Indian households about the benefits of LPG as a clean fuel for cooking
Challenges faced by the LPG sector
- Financial Barriers: The withdrawal of LPG subsidies for all consumers during the COVID-19 pandemic in 2020 created financial barriers for many households, affecting their ability to afford LPG refills.
- Underutilization of Subsidies: Despite providing three free cylinders to all PMUY consumers in FY21 as part of the Pradhan Mantri Garib Kalyan Yojana, only 14.1 crore out of the possible 24 crore free cylinders were consumed, indicating challenges in reaching the intended beneficiaries and ensuring full utilization of the provided benefits.
- Distribution and Logistics: Despite significant efforts, home delivery and distribution channel issues persisted, particularly affecting non-PMUY consumers, leading to slow refill rates and hindering the seamless supply of LPG.
- Price Volatility: Indian households have experienced a near-doubling in LPG prices since May 2020 in nominal terms due to volatile international prices, especially since the Russian war against Ukraine. This price volatility affects the affordability and accessibility of LPG for consumers.
- Import Dependency: India’s dependence on imported LPG (the refined commodity) has steadily increased to over 64% in FY23, compared to 46% in the pre-PMUY phase. This import dependency exposes the country to international market risks and supply disruptions.
- Budgetary Constraints: Given the domestic budget’s reliance on petroleum taxation and uncertain international prices, it is unlikely that India can return to a regime where a subsidy of approximately INR 20,000 crore (2011–12 prices) was provided each year for LPG consumption over the first two decades of the 21st century.
Steps and a data-driven approach for India’s clean cooking transition
- Promote Electric Cooking: India should actively promote electric cooking, including induction cook-tops, to offset the reliance on flame-based cooking. The IRES conducted by CEEW showed that even at a high tariff of ₹8 per unit of electricity, electric cooking remains cheaper than LPG cooking at current prices.
- Leverage Electricity Access in Rural Areas: With near-universal access to electricity connections in rural areas, specific cooking needs can be shifted to electricity. This approach can effectively reduce the reliance on LPG in rural households.
- Incentivize Transition to Electric Cooking: Policymakers can use a telescopically increasing LPG prices beyond a threshold, such as seven cylinders per average household.
- Support Domestic Manufacturing Ecosystem: Demand from early adopters of electric cooking can spur the domestic manufacturing ecosystem for electric cooking technologies.
- Monetize Avoided Emissions: By transitioning from traditional chulhas to electric cooking, India can avoid climate pollutant release. This can be monetized through the newly launched carbon market, providing financial resources to support the adoption of electric cooking by poorer rural communities.
- Shift the Policy Focus: Policymakers need to move beyond LPG subsidies alone and focus on fostering a bouquet of solutions for India’s clean cooking goals.
Conclusion
- While LPG subsidies have played a crucial role in improving adoption, it is time for India’s clean cooking policy to diversify and embrace a range of clean-cooking technologies. By nurturing a bouquet of clean cooking solutions, India can pave the way for a sustainable and healthier future.
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