September 2023
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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

India and Saudi’s Push for the West Coast Mega Refinery Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level: West Coast Mega Refinery Project

Mains level: Not Much

Central Idea

  • India and Saudi Arabia have renewed efforts to accelerate the long-pending 60-million-tonnes-per-annum (60 mtpa) west coast mega refinery project, which had faced multiple hurdles.

West Coast Mega Refinery Project

  • The ambitious project to build a mega oil refinery and petrochemicals facility in Maharashtra’s Konkan belt, with participation from Saudi Arabia and the UAE, was first proposed in 2015.
  • The project is stipulated to be established at Barsu village in Ratnagiri district of Maharashtra.
  • IOC, BPCL, and HPCL, had already incorporated a joint venture (JV) — Ratnagiri Refinery & Petrochemicals (RRPCL) — to implement the project.
  • It faced resistance from locals due to environmental concerns and shifting political equations in the state.
  • Despite initial agreements and cost estimates of Rs 3 lakh crore, the project failed to take off as foreign partners hadn’t acquired stakes in the joint venture.

Recent Developments

  • Around 15,000 acres of land had to be acquired for the project across 17 villages in the area.
  • A joint monitoring committee will track the project’s progress, signaling renewed commitment.
  • India and Saudi Arabia are keen to implement the project, which has earmarked funds of $50 billion.

Significance of the Project

  • India is a significant consumer of crude oil, and its demand for petroleum products and petrochemicals is expected to grow substantially.
  • India aims to increase its refining capacity from 250 mtpa to 450 mtpa, making it a key player in the global oil demand landscape.
  • For Aramco and ADNOC, the project offers diversification, global expansion, risk mitigation, and access to a major oil market.

Future Options

  • Realistic alternatives include scouting for alternative coastal sites in Maharashtra or considering another coastal state.
  • A more drastic alternative is to split the proposed mega refinery into smaller units.

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Innovations in Biotechnology and Medical Sciences

Vagus Nerve: Stimulation and Health Implications

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Vagus Nerve

Mains level: NA

Vagus Nerve

Central Idea

  • There’s a growing buzz online about the vagus nerve—ways to stimulate it and the potential benefits for various health issues, from anxiety to obesity.
  • Videos and devices abound, offering suggestions for vagus nerve stimulation.
  • Recent research has even linked vagus nerve dysfunction to long COVID.

What is the Vagus Nerve?

  • A Pair of Nerves: The vagus nerve consists of two nerves, one on each side of the body. They run from the brainstem through the neck, chest, and stomach.
  • Part of the Parasympathetic Nervous System: These nerves are a vital component of the parasympathetic nervous system, responsible for relaxing and resting the body, regulating functions like heart rate, blood pressure, and digestion. They also play a role in the immune system.

Why is the Vagus Nerve being researched?

Several aspects make the vagus nerve a subject of intense research:

  • Extensive Reach: The vagal nerves are the longest cranial nerves, connecting the brain to the large intestine and passing through or connecting with crucial areas in the neck, heart, lungs, abdomen, and digestive tract.
  • Communication Hub: These nerves contain 75% of the nerve fibers of the parasympathetic nervous system, facilitating bidirectional communication between the brain and the body.
  • Health Implications: Researchers explore how stimulating these “sensory superhighways” could trigger the parasympathetic nervous system and potentially benefit various health conditions.

Conditions Treated by Vagus Nerve Stimulation

  • Epilepsy and Depression: Implantable vagus nerve stimulators are used to treat epilepsy and depression, particularly when conventional treatments are ineffective. These devices stimulate areas of the brain associated with seizures and mood regulation.
  • Inflammation Regulation: The vagus nerve plays a role in regulating inflammation. Suppressing inflammation after an infection is resolved has implications for treating various conditions.

Vagus Nerve and Long COVID

  • A study suggests a connection between vagus nerve dysfunction and post-COVID-19 condition (PCC) or long COVID. Patients with PCC exhibited symptoms related to vagus nerve dysfunction, indicating its potential role in the pathophysiology of PCC.
  • Other research explores impaired vagal activity in long COVID patients and potential therapeutic approaches involving vagal nerve stimulation.

Natural Vagus Nerve Stimulation

Numerous natural methods are believed to stimulate the vagus nerve, including:

  • Meditation: Focusing on longer exhales than inhales.
  • Exercise: Engaging in physical activity.
  • Massage: Techniques like reflexology.
  • Music: Humming and singing.
  • Cold Exposure: Placing a cold pack on your face or using icy water immersion.

Limitations

  • Implanted vagus nerve stimulation is not a one-size-fits-all solution and should not replace conventional treatment.
  • It serves as an adjunctive treatment for most conditions and requires further research to explore its potential therapeutic effects comprehensively.
  • Vagus nerve stimulation devices should only be used under medical supervision due to their influence on heart rate and blood pressure.
  • Different protocols must be followed, making clinic-based usage essential.

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Promoting Science and Technology – Missions,Policies & Schemes

India can now issue OIML certificates: What this means, its significance

Note4Students

From UPSC perspective, the following things are important :

Prelims level: OIML (International Organisation of Legal Metrology)

Mains level: Read the attached story

Central Idea

  • India has achieved a significant milestone by becoming a 13th nation as OIML (International Organisation of Legal Metrology) certificate-issuing authority.
  • The other countries are Australia, Switzerland, China, Czech Republic, Germany, Denmark, United Kingdom, Japan, Netherlands, Sweden and Slovakia.

Understanding OIML

  • The OIML, established in 1955 and headquartered in Paris, is a renowned international standard-setting body in the field of legal metrology.
  • Its primary role is to develop model regulations, standards, and related documents for use by legal metrology authorities and industries worldwide.
  • These standards are crucial in harmonizing national laws and regulations concerning the performance of measuring instruments, such as clinical thermometers, alcohol breath analyzers, radar speed measuring instruments, ship tanks at ports, and petrol dispensing units.

India’s OIML Membership

  • India became an OIML member in 1956.
  • Simultaneously, India signed the metric convention, emphasizing its commitment to international standards in metrology.

OIML Certificate Significance

  • The OIML-CS (Certificate System) is a globally recognized system for issuing, registering, and using OIML certificates, along with their associated OIML type evaluation/test reports.
  • With India’s inclusion, the number of countries authorized to issue OIML certificates has risen to 13.
  • The OIML certificate is a single document accepted universally.
  • For instance, if an equipment manufacturer in Noida wishes to export their products to the US or any other country, they no longer need to obtain certification from one of the 12 other authorized countries.
  • India’s certification is now globally accepted, facilitating seamless exports and international compliance.

Benefits for the Indian Economy

India’s newfound status as an OIML certificate-issuing authority offers several advantages for the Indian economy:

  • Increased Exports: Indian manufacturers can now export their products with greater ease, reducing trade barriers and expanding their global market reach.
  • Foreign Exchange Earnings: The certification services provided by India will attract neighbouring countries and international manufacturers. This influx of clients seeking certification services will lead to an increase in foreign exchange earnings for India.
  • Employment Generation: To meet the growing demand for certification services, India is expected to witness a surge in employment opportunities in the legal metrology sector.
  • Resource Efficiency: The streamlined certification process will reduce redundancy and save valuable resources, making the certification process more efficient.

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Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

Progress track: PM Matsya Sampada Yojana (PMMSY)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PM Matsya Sampada Yojana

Mains level: Read the attached story

matsya sampada

Central Idea

  • In 2020, as India’s fisheries sector was gearing up for a transformation through government-initiated reforms, the COVID-19 pandemic threatened to disrupt progress.
  • However, PM Modi turned this crisis into an opportunity by launching the Atmanirbhar Bharat package, specifically targeting the fisheries sector.
  • This initiative breathed new life into the sector, with a substantial allocation of ₹20,050 crore for the Pradhan Mantri Matsya Sampada Yojana (PMMSY), making it the largest-ever investment in Indian fisheries history.

About PM Matsya Sampada Yojana

Aim To catalyze the Blue Revolution in India’s fisheries sector.
Investment Rs. 20,050 crores over five years (FY 2020-21 to FY 2024-25) as part of Aatmanirbhar Bharat Package.
Fish Production Increase fish production by an additional 70 lakh tonnes by 2024-25.
Export Earnings Raise fisheries export earnings to Rs. 1,00,000 crore by 2024-25.
Income Doubling Double the incomes of fishers and fish farmers.
Post-Harvest Losses Reduce post-harvest losses from 20-25% to about 10%.
Employment Generation Generate substantial employment opportunities in the fisheries sector.
Aims and Objectives 1. Sustainable and equitable fisheries development.

2. Increased productivity through diversification.

3. Modernizing the value chain. 4. Income doubling.

5. Boosting exports.

6. Ensuring security for fisheries communities.

7. Effective management.

Implementation Components Central Sector Scheme and Centrally Sponsored Scheme with active state participation.
Implementation Approach Structured framework and cluster-based approach for optimal outcomes

Key Achievements of PMMSY

  • Broad Development Spectrum: PMMSY addressed critical gaps in the fisheries value chain, spanning fish production, productivity, quality, technology, post-harvest infrastructure, and marketing.
  • Strategic Priority Areas: The initiative strategically focused on various key areas, including marine fisheries, inland fisheries, fishermen’s welfare, infrastructure development, post-harvest management, cold water fisheries, ornamental fisheries, aquatic health management, and seaweed cultivation.
  • Empowering Youth: PMMSY encouraged young entrepreneurs to venture into fisheries, fostering technological innovation and youth engagement. Notable success stories include young women in Kashmir rearing cold water rainbow trout and aquapreneurs in Nellore becoming successful exporters of biofloc-cultivated shrimps.
  • Expanding to Non-Traditional Areas: The program expanded fisheries activities to non-traditional regions, converting saline wastelands into productive aquaculture zones in landlocked states like Haryana and Rajasthan.
  • Empowering Fisherwomen: PMMSY empowered fisherwomen to explore alternative livelihoods, such as ornamental fisheries, pearl culture, and seaweed cultivation. The establishment of the ₹127 crore Seaweed Park in Tamil Nadu exemplifies this forward-looking approach.
  • Infrastructure and Research: The initiative supported the establishment of 900 fish feed plants, 755 hatcheries, and invested in research and genetic improvement of Indian White Shrimp, specific pathogen-free brood stock development, and domestication of tiger shrimp.

Impact on India’s Fisheries Sector

  • Global Recognition: India has risen to become one of the world’s top three countries in fish and aquaculture production and stands as the largest shrimp exporter globally.
  • Investment Growth: The government’s commitment to the fisheries sector is evident, with recent announcements of ₹6,000 crore as a sub-scheme under PMMSY, totalling investments exceeding ₹38,500 crore over the past nine years.
  • Record Production and Exports: India achieved record fisheries production of 174 lakh tonnes in 2022-23, marking a significant increase. Shrimp production alone surged by 267% from 2013-14 to 2022-23, reaching 11.84 lakh tonnes. Seafood exports doubled from ₹30,213 crore in 2013-14 to ₹63,969 crore in 2022-23.

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Languages and Eighth Schedule

Hindi Diwas and the Making of India’s Official Language

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Hindi Diwas

Mains level: National Language Debate

hindi diwas

Central Idea

  • Hindi Diwas, celebrated on September 14th each year, holds a special place in India’s cultural and linguistic tapestry.

Hindi Diwas

  • Official Language Selection: After gaining independence, India recognized the need for a unifying official language to facilitate communication between government departments and the public. On September 14, 1949, Hindi was chosen as the official language, as stipulated in Article 343 of the Indian Constitution.
  • Pioneering Advocates: Leaders such as Seth Govind Das, Maithili Sharan Gupt, Kaka Kalelkar, and Beohar Rajendra Simha were instrumental in championing Hindi as the nation’s official language. Beohar Rajendra Simha’s birthday on September 14 became synonymous with Hindi Diwas.

Language Debate in the Constituent Assembly

  • RV Dhulekar Advocates for Hindi: RV Dhulekar, a representative from Uttar Pradesh, passionately argued that Hindi should not only be the official language but also the national language. He asserted that Hindi had triumphed in a race among languages and deserved recognition.
  • Frank Anthony’s Case for English: Frank Anthony, representing Central Provinces and Berar, made a compelling case for English. He emphasized that the knowledge of English, acquired over two centuries, was a valuable asset for India on the international stage.
  • Pandit Lakshmi Kanta Maitra’s Push for Sanskrit: Pandit Lakshmi Kanta Maitra, who represented Bengal, advocated for Sanskrit as the national and official language. He argued that it was a revered language with rich heritage.
  • Qazi Syed Karimuddin’s Support for Hindustani: Qazi Syed Karimuddin, also from Central Provinces and Berar, highlighted Mahatma Gandhi’s endorsement of Hindustani. He proposed that Hindustani, written in both Devanagari and Urdu scripts, should be the national language.
  • T A Ramalingam Chettiar’s Perspective on Hindi: T A Ramalingam Chettiar, representing Madras, accepted Hindi as an official language due to its widespread use but questioned its claim as the national language. He argued that India had several national languages, each deserving equal recognition.

The Munshi-Ayyangar Formula

  • The Constituent Assembly engaged in extensive deliberations over three days, resulting in the Munshi-Ayyangar formula.
  • It was a compromise named after the drafting committee members K M Munshi and N Gopalaswamy Ayyangar.
  • According to this formula, Article 343 of the Constitution adopted in 1950 stated that the official language of the Union would be Hindi in the Devanagari script.
  • However, English would continue to be used for official purposes for fifteen years from the Constitution’s commencement.

Back2Basics: Article 343

  • Article 343 (1) of the Constitution provides that Hindi in Devanagari script shall be the official language of the Union.
  • Article 343 (3) empowered the Parliament to provide by law for continued use of English for official purposes even after January 25, 1965.
  • This provision was included to ensure a smooth transition, as English was widely used in India at the time of independence.

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Post Office Bill (2023)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: New Post Office Bill (2023)

Mains level: Post Office Bill (2023), Key provisions and changes

What’s the news?

  • The Post Office Bill, 2023, was introduced in the Rajya Sabha on August 10, 2023. It repeals the Indian Post Office Act, 1898.

Central idea

  • The recent introduction of the Post Office Bill (2023) in the Rajya Sabha marks a significant shift in India’s postal landscape. The new bill recognizes the evolving role of post offices in the digital age, where they serve as a crucial conduit for a wide range of citizen-centric services.

Key provisions and changes introduced by the bill

  • Repealing the Indian Post Office Act, 1898: The Post Office Bill, 2023, seeks to replace the outdated Indian Post Office Act of 1898 and addresses various aspects of the functioning of India Post.
  • Exclusive Privileges of the Central Government: Unlike the previous Act, which granted the central government exclusive privileges in establishing posts and conveying letters, the new bill does not contain such privileges. However, it does specify that the Post Office will retain the exclusive privilege of issuing postage stamps.
  • Services to be prescribed: While the old Act specified the services provided by the Post Office, such as delivering postal articles and money orders, the new bill allows the central government to prescribe the services to be offered by the Post Office.
  • Powers to Intercept Shipments: The bill introduces new grounds for intercepting shipments transmitted through the post, including security of the state, friendly relations with foreign states, public order, emergency, public safety, and contravention of the provisions of the Bill or any other law. An officer empowered by the central government may carry out an interception.
  • Director General’s Regulations: The Director General of Postal Services, as provided in both the old Act and the new bill, may make regulations regarding various activities necessary for providing postal services. This includes specifying charges, supply, and sale of postage stamps and postal stationery.
  • Examination of Shipments: The bill removes the powers of examination of shipments by Post Office officers. Instead, it allows the central government to empower an officer of the Post Office to deliver the shipment to customs authorities or other specified authorities for handling.
  • Removal of Offenses and Penalties: Unlike the old Act, which specified various offences and penalties, the new bill does not provide for many offences or consequences. However, it does state that amounts not paid or neglected by a user will be recoverable as arrears of land revenue.
  • Exemptions from Liability: Both the old Act and the new bill maintain provisions that exempt the government and officers from liability related to the loss, misdelivery, delay, or damage to a postal article. The bill allows the Post Office to prescribe liability regarding its services instead of the central government.

What changes?

  • Flexibility in Pricing and Service Regulation:
  • The new bill grants the postal department the flexibility to determine the prices of its services.
  • This flexibility is seen as crucial in a highly competitive industry, enabling the postal department to respond quickly to market demands.
  • It also allows the department to adapt to changing economic conditions while offering a variety of citizen-centric services.
  • Enhanced Security Measures:
  • The bill empowers the central government to take action in cases where the security of the state, friendly relations with foreign states, public order, emergencies, public safety, or contraventions of the law are at stake.
  • Specifically, any item in the course of transmission by the Post Office can be intercepted, opened, or detained under these circumstances.
  • This provision is seen as a response to modern challenges, including the smuggling and unlawful transmission of drugs and contraband goods through postal parcels.
  • Generic Provisions for Intercepting Items:
  • Unlike the existing Act (1898), which specifically mentioned intercepting postal articles containing explosive dangerous, filthy, noxious or deleterious substances, the new bill contains more generic language.
  • This change is intended to address a broader range of potential security threats and criminal activities involving postal parcels.
  • Limited Jurisdiction over Courier Firms:
  • The bill’s provisions for intercepting, opening, or detaining items in the course of postal transmission are applicable to the Post Office. However, there is no similar legislation mentioned for courier firms.
  • Given that India Post holds less than 15% of the market share in the courier/express/parcels (CEP) industry, the bill’s effectiveness in intercepting items for national security and public service reasons has limitations.
  • Potential Inclusion of Medium and Small Courier Players:
  • The bill could have been strengthened by including provisions for medium and small courier operators to register with a designated authority.
  • Such provisions would have given the bill more control over the movement of contraband goods in parcels, even in the courier industry.

Futuristic Postal Delivery

  • The new Bill introduces standards for addressing items, address identifiers, and postcodes.
  • These standards may enable the use of digital codes based on geo-spatial coordinates instead of traditional physical addresses.
  • Benefits include improved sorting efficiency and accurate delivery of mail and parcels.
  • The adoption of digital addressing could potentially facilitate parcel deliveries by drones, similar to experiments in some other countries.
  • The transition to these futuristic concepts is acknowledged to be a gradual process.

Removal of Exclusive Privilege

  • A significant aspect of the Bill is the removal of a provision from the 1898 Act that granted the central government exclusive privileges in postal services.
  • These privileges included conveying letters by post and performing related services.
  • The provision had lost its relevance with the emergence of courier services in India since the 1980s.
  • The absence of a clear definition of letter versus document in the Act and subsequent rules had led to legal ambiguity.
  • The removal of this exclusive privilege is viewed as a positive step, aligning the legal framework with the changing communication landscape.
  • The importance of traditional written personal communication through letters has decreased significantly with the mobile revolution.
  • The removal of this provision is seen as a recognition of this reality.

Conclusion

  • The new Post Office Bill (2023) represents a vital step toward modernizing India’s postal services to align with contemporary needs. It eliminates the outdated provision of exclusive privileges, adapting to the realities of the digital age and ensuring that India’s postal sector remains relevant and accessible to all citizens.

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Finance Commission – Issues related to devolution of resources

What the 16th Finance Commission needs to do differently

Note4Students

From UPSC perspective, the following things are important :

Prelims level: 16th Finance Commission

Mains level: 16th Finance Commission and India's fiscal federalism

What’s the news?

  • India’s fiscal landscape, transformed by GST, calls for a comprehensive reevaluation of fiscal federalism to address tax-sharing challenges and regional disparities.

Central idea

  • The 122nd Constitutional Amendment of 2016 and the subsequent introduction of the GST regime in 2017 reshaped India’s fiscal landscape, replacing production-based taxation with a consumption-oriented approach. This shift highlights the importance of reevaluating fiscal federalism as the 16th Finance Commission forms, addressing tax-sharing principles and regional balance in taxation.

What is meant by fiscal federalism?

  • Fiscal federalism refers to the division of financial responsibilities and resources between different levels of government within a federal or decentralized system.
  • It encompasses the principles and mechanisms by which revenues are generated, collected, shared, and spent by various levels of government, typically at the national (central) and subnational (state or regional) levels.
  • India operates as a federal republic with a multi-tiered system of governance, and fiscal federalism is an essential aspect of this arrangement.

Potential challenges faced by the 16th Finance Commission

  • Revisiting Tax-sharing Principles: The 16th Finance Commission faces the challenge of reexamining and redesigning tax-sharing principles due to the shift from production-based to consumption-based taxation under the GST regime.
  • Efficient Tax Collection: Variations in the cost of tax collection (ranging from 7 to 10 percent) have emerged as a challenge, given the joint collection of taxes by the Union and states under GST.
  • Redesigning Horizontal Distribution: The Commission must address the challenge of redesigning criteria for distributing the divisible pool among states to ensure equitable distribution of tax revenues and grants.
  • Reviewing the Compensation Scheme: The necessity, viability, and desirability of the GST compensation scheme must be reviewed by the Commission, considering the performance of GST revenues over the past six years.
  • Institutional Relationships: Establishing formalized institutional relationships between the GST Council and the Finance Commission presents a challenge in the evolving federal financial structure.

The need for a comprehensive reevaluation of India’s fiscal federalism

  • Shift to the GST Regime: The introduction of the Goods and Services Tax (GST) regime represents a monumental shift in India’s taxation system. This change from a production-based tax system to a consumption-based one necessitates a reevaluation of fiscal federalism to align with this new tax paradigm.
  • Impact on Vertical and Horizontal Imbalances: The transition from a production-based to a consumption-based tax system has the potential to rectify historical vertical imbalances in tax revenue distribution. However, it also introduces new horizontal imbalances among states due to varying consumption patterns and economic development levels.
  • Equitable Resource Allocation: To ensure a fair distribution of resources among states, it is imperative to revisit the criteria for resource allocation. The reevaluation should consider the principles of fiscal federalism and the specific needs of each state within the GST framework.
  • Efficiency and Transparency: An updated fiscal federalism framework can lead to increased efficiency and transparency in revenue collection, sharing, and utilization. This can help streamline fiscal processes and reduce inefficiencies.
  • Adaptation to Changing Economic Realities: India’s economic landscape is dynamic, with evolving challenges and opportunities. A comprehensive reevaluation allows fiscal policies to adapt to these changes, ensuring they remain relevant and effective.
  • Fiscal Responsibility: To ensure fiscal sustainability, a reevaluation should assess the long-term fiscal health of both the central government and state governments. It can recommend measures to manage fiscal deficits and public debt responsibly.

Way forward

  • Mandate of the 16th Finance Commission: The government should promptly constitute the 16th Finance Commission with a clear mandate to reexamine the tax-sharing principles and other related fiscal matters.
  • Define Comprehensive Terms of Reference (ToR): The ToR for the 16th Finance Commission should be carefully formulated to guide the Commission in addressing the challenges posed by the GST regime and its impact on fiscal federalism.
  • Pooling of Indirect Tax Sovereignty: Given the significant changes in the tax landscape, the Commission should comprehensively assess the pooling of indirect tax sovereignty between the Union and states under the GST system.
  • Redesign Tax-sharing Principles: The Commission should undertake a thorough review and redesign of tax-sharing principles, especially with regard to the divisible pool, unsettled IGST, and settlement frequencies, in alignment with the GST structure.
  • Distribution Criteria Reevaluation: Reevaluate the criteria for distributing the divisible pool among states, particularly for equalizing grants, to ensure that they align with the new consumption-based tax system and address regional imbalances effectively.
  • Formalize Institutional Relationships: Formalize and strengthen the institutional relationship between the GST Council and the Finance Commission to facilitate seamless coordination, information exchange, and alignment of fiscal policies.
  • Engage with Stakeholders: Engage in extensive consultations with relevant stakeholders, including state governments, economists, and experts, to gather diverse perspectives and insights.

Conclusion

  • The 16th Finance Commission must reshape India’s fiscal federalism for the GST era by redefining the divisible pool, improving tax collection efficiency, revisiting distribution criteria, reviewing compensation, and formalizing institutional relationships. Flexible terms of reference are crucial for these essential reforms to align the fiscal system with the new tax paradigm and promote equitable growth.

Also read:

Finance Commission and the Challenges of Fiscal Federalism

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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Disentangling the 2030 global renewable energy target

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Renewable energy targets. COP28

Mains level: Global renewable energy transition, regional disparities and equity in responsibility

What’s the news?

  • The 28th Conference of Parties (COP28) of the UNFCCC is scheduled to take place in Dubai from November 30 to December 12.

Central idea

  • The upcoming COP28 of the UNFCCC has put forth a bold proposal to triple global renewable energy capacity by 2030. This aspiration is echoed in the G-20 declaration, albeit in a less committed manner. While the idea of such a target is appealing, a deeper examination raises significant concerns.

Current State of Renewable Energy Capacity

  • As of 2021, renewable energy sources (RES) accounted for 39% of the global installed capacity for electricity generation, totaling 3026 gigawatts (GW). However, their contribution to total electricity generation stood at only 28%.
  • Among RES, hydropower constituted over half, with solar and wind energy contributing about 36%.
  • To achieve the goal of tripling renewable energy capacity by 2030, we would need to add approximately 6,000 GW of RES capacity, primarily from solar and wind sources.

Regional Disparities

  • Electricity demand growth varies significantly among countries at different stages of development.
  • Developing nations like China and India experience rapid electricity demand growth, with annual consumption rates of 6.6% and 6.3%, respectively, between 2010 and 2019.
  • In contrast, the European Union (EU) saw a decline of 0.3%, and the United States experienced minimal 0.12% growth.
  • Only 21% of electricity in the U.S. is sourced from RES, including hydro and biomass. In the EU, 37% of electricity comes from RES.
  • The U.S. would need only about 26 GW of new RE capacity to meet additional demand. Its share of the global tripling target of 6000 GW by 2030 would be a mere 0.4%.
  • In contrast, India would require about 717 GW of RE capacity, constituting a 12% share of the target.

Challenges in achieving the goal of tripling global renewable energy capacity

  • Timeline for Capacity Addition: Tripling renewable energy (RE) capacity by 2030 presents a significant challenge in terms of the timeline for constructing and operationalizing renewable energy projects.
  • Scale of Electricity Generation: Achieving the target of tripling RE capacity would require generating approximately 13,000 terawatt-hours (TWh) of electricity from renewable sources alone.
  • Global Electricity Demand Growth: Global electricity demand has been growing at an average rate of 2.6% (pre-COVID-19 decade average). Meeting the tripling target implies that renewable energy would need to account for 38% of total global electricity production. Sustaining such growth in renewable energy production in line with demand is a complex task.

What are the issues with the global RES target?

  • Lack of Transparency in Origin: The origin of the global RES target proposed at COP28 lacks transparency. It appears to draw inspiration from the International Renewable Energy Agency (IRENA), but without clear documentation.
  • Inequitable Regional Distribution: The proposed target, as per the IRENA analysis, suggests that most of the non-RES capacity to be added by 2030 would be in developing regions.
  • Absolute Projections vs. Relative Targets: Absolute projections of installed RES capacity may not align with the growth in energy demand. Relative targets, which are less dependent on demand growth matching expectations, are considered more flexible and robust.
  • Dependency on Non-RES Capacity: Achieving a substantial increase in RES capacity may require corresponding non-RES capacity for grid stability and reliable energy supply.
  • Lack of Viable Storage Options: There is currently a lack of viable storage options at the scale envisioned by ambitious RES targets. Energy storage is essential to ensuring a stable energy supply when renewable sources are not generating electricity.
  • Challenges in Building National Grids: Scaling up RES capacity to such high levels would require extensive national grid development. Finding the necessary resources for these grids is challenging, particularly given the existing difficulties in meeting climate finance targets.
  • Targets for Developed Nations: The most vocal proponents of the global RES target do not have corresponding domestic targets. For instance, while India has committed to ambitious goals internationally, countries like the United States and the European Union lack absolute targets domestically. Their targets are often market signals rather than government-intervened commitments.

Way forward

  • Transparent Origin of Targets: Ensure transparency in the origin and basis of global renewable energy targets, such as those proposed at COP28. Clearly communicate how and why these targets were formulated.
  • Equitable Distribution of Responsibility: Advocate for an equitable sharing of responsibility among nations. Developed countries should commit to absolute domestic targets that align with their global climate commitments.
  • Relative Targets: Consider using relative targets alongside absolute targets. Relative targets are less dependent on specific demand growth projections, providing greater flexibility.
  • Support for Developing Nations: Provide financial and technical assistance to developing countries to help them meet their renewable energy targets. This includes support for grid development, energy storage, and renewable energy infrastructure.
  • Fossil Fuel Phase-Out: Encourage developed nations to accelerate the phase-out of fossil fuel-based electricity production. This step is vital for reducing carbon emissions and creating space for renewable energy capacity.
  • Investment in Energy Storage: Invest in research, development, and deployment of energy storage solutions at the scale required by ambitious renewable energy targets. Reliable energy storage is essential for grid stability.
  • Climate Finance Commitments: Commit to fulfilling climate finance targets, including the annual $100 billion target, to support climate-related projects across sectors, including renewable energy.
  • Policy Alignment: Align domestic policies with international climate agreements, such as the Paris Agreement. Governments should implement policies that promote renewable energy growth and the phase-out of fossil fuels.

Conclusion

  • As COP28 approaches, developing nations, especially India, should endorse the global tripling of the RES capacity target only if developed nations commit to absolute, equitable, and commensurate targets domestically. Achieving equity in responsibility is crucial to the success of the global renewable energy transition.

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