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  • Kallakurichi Wood Carvings and Karuppur Kalamkari Paintings get GI tag

    In Tamil Nadu, the Karuppur kalamkari paintings and the Kallakurichi wood carvings recently received the geographical indication (GI) tags.

    [A] Kallakurichi Wood Carvings

    • The Kallakurichi wood carvings are a unique form of wood carving practiced in Tamil Nadu.
    • It involves the application of ornamentation and designs, derived from traditional styles by the craftsmen.
    • They are mainly practiced in Kallakurichi, Chinnaselam and Thirukkovilur taluks of Kallakurichi district.

    [B] Karuppur Kalamkari Paintings

    • Kalamkari paintings are done on pure cotton cloth, predominantly used in temples for umbrella covers, cylindrical hangings, chariot covers and asmanagiri (false ceiling cloth pieces).
    • Documentary evidence shows that kalamkari paintings evolved under the patronage of Nayaka rulers in the early 17th century.

    Back2Basics: Geographical Indication

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • GI is granted for a term of 10 years in India. As of today, more than 300 GI tags has been allocated so far in India (*Wikipedia).
    • The tag stands valid for 10 years.

     

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  • [pib] Automated fuelling technology- UFill

    The Bharat Petroleum Corporation Limited (BPCL) has launched an automated fuelling technology -UFill- to ensure that its customers have a better experience at outlets.

    What is UFill?

    • UFill functionality, which has been described as swift, secure and smart, has been launched in 65 cities and will soon be launched across the country.
    • It does not need any app download, and is payment app agnostic.
    • Customer can use any payment app already downloaded on his/her phone.
    • It offers real time QR and voucher code through SMS and is accepted at all BPCL Fuel Stations where the functionality is enabled.

    Key features

    • UFill aims to improve customer’s turn-around time (TAT) at fuel outlet and increase transactional transparency, thereby providing enhanced retail like experience.
    • The technology provides the customer with control of fuelling as well as touch less pre-payment solution.
    • There is no need to check zero before fuelling or final reading, the dispensing unit will automatically dispense the exact quantity of fuel.

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  • Is India’s current investor rush too much of a good thing?

    Human traits driving financial markets

    • To imitate and to conform — do what others around us are doing — are common and very powerful human tendencies.
    •  In financial markets, “herd behaviour” is a warning sign: When markets are doing well, people invest for no other reason than their neighbours having become wealthier (and vice versa).
    • There is another human trait that affects markets — success increases risk appetite.
    • If someone’s financial investments work, they are very likely to invest more, and ignore safety measures.

    Factors driving the private equity investments

    • Better physical infrastructure (rural roads, electrification, phone penetration, data access).
    • Several layers of innovation (universal bank account access, surging digital payments on the “India Stack”).
    • 45 lakh software developers (largest in the world).
    • Maturing industries (for example, as research budgets of Indian pharmaceutical manufacturers have grown 10 times in the last 15 years.
    • The ecosystem can take on more challenging projects now, versus just generic filings a decade back).
    • Strong medium-term economic growth prospects create fertile ground for private equity investments.
    • Investors with patient capital (knowing that the businesses will not make money for several years) are now betting on and financing a faster transition to electric vehicles than was earlier anticipated.
    • In financial services, innovative methods of lending, insurance underwriting and wealth management are being experimented with, which are likely to only expand the market meaningfully.
    • An army of Software-as-a-Service (SaaS) firms have been funded in the hope of revolutionising the development and distribution of software.
    • There are also new-age distribution and logistics companies, education technology firms, and branded consumer goods suppliers, in addition to “normal” e-commerce, gaming and food-delivery startups.

    Risks involved in a rapid infusion of capital

    • Allocation inefficiency: Theoretically, an economy India’s size is capable of absorbing the $52 billion of PE funding seen over the last 12 months, but in practice, such a rapid surge creates allocation inefficiency. 
    •  As investors rush to deploy ever-larger sums of money, they appear to be running out of companies to invest in that can productively deploy this capital.
    • The result is companies’ valuations rising manifold within months and small firms getting more capital inflows than they can deploy, often resulting in wasteful business plans.
    • When investors rush to deploy funds, the risk of fraud rises — inadequate disclosures and weak due diligence are compounded by incentives to misrepresent financial data.
    • The discovery of any such frauds would likely freeze funding for the industry for a few quarters.

    Why now?

    • India has never lacked entrepreneurs, but lacked risk capital given the low per capita wealth.
    • As savers like pension and insurance funds in the developed world responded to record-low interest rates by allocating more to PE as an asset class, private funding markets have grown rapidly in the last 15 years globally.
    • In India, PE funding has exceeded public-market fund-raising every year in the past decade.
    • While earlier, only a few business groups could muster sizeable amounts of risk capital to establish new businesses and disrupt old ones, entrepreneurs can now lay hands on hundreds of millions of dollars if the idea makes sense.

    Conclusion

    For now, this flow of funds is a welcome booster for the economy as it recovers from the scars of the pandemic-driven lockdowns. While valuations can be volatile in the near term, we are in the early stages of this reshaping of India’s corporate landscape.

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  • Explained: China-Taiwan tussle

    Recently China flew over 100 fighter jets into Taiwan’s air defence identification zone setting off alarm around the world that it was preparing to take over the island by force.

    Taiwan: the Republic of China (RoC)

    • Taiwan, earlier known as Formosa, a tiny island off the east coast of China, is where Chinese republicans of the Kuomintang government retreated after the 1949 victory of the communists.
    • It has since continued as the Republic of China (RoC).
    • Although largely unrecognized by other countries as such, self-ruled Taiwan sees itself as no less than an independent nation.
    • Its leaders, have vowed to defend its sovereignty against the Chinese goal of “reunification”.

    Chinese claims over Taiwan

    • Since its establishment in 1949, the PRC has believed that Taiwan must be reunified with the mainland, while the RoC claim to be an independent country.
    • The RoC became the non-communist frontier against China during the Cold War, and was the only ‘China’ recognised at the UN until 1971.
    • That was when the US inaugurated ties with China through the secret diplomacy under President Richard Nixon.

    Independence politics by Taipei

    • In 1975, Taiwan got its first democratic reforms. Trade ties with PRC were established.
    • As the British prepared to exit Hong Kong in 1999, the “One China, Two Systems” solution was offered to Taiwan as well, but it was rejected by the Taiwanese.
    • In 2004, China started drafting an anti-secession law aimed at Taiwan; trade and connectivity, however, continued to improve.

    Hurdles for Taiwanese independence

    • Taiwan now has massive economic interests, including investments in China, and pro-independence sections worry that this might come in the way of their goals.
    • Inversely, the pro-reunification sections of the polity, as well as China, hope that economic dependence and increasing people-to-people contacts will wear out the pro-independence lobbies.

    Global significance of Taiwan

    • The island is located in the East China Sea, to the northeast of Hong Kong, north of the Philippines and south of South Korea, and southwest of Japan.
    • What happens in and around Taiwan is of deep concern to all of East Asia.

    Geopolitics: US ties with Taiwan

    • Officially, the US has subscribed to PRC’s “One China Policy” which means there is only one legitimate Chinese government.
    • The most serious encounter was in 1995-96, when China began testing missiles in the seas around Taiwan, triggering the biggest US mobilization in the region since the Vietnam War.
    • Now, the US backs Taiwan’s independence, maintains ties with Taipei, and sells weapons to it.
    • Taiwan is entirely dependent on the US for its defense against possible Chinese aggression.
    • This is why every spike in military tensions between China and Taiwan injects more hostility into the already strained relationship between Washington and Beijing.

    Challenge for the US

    • The Biden Administration has declared “rock-solid” commitment to Taiwan after an incursion by Chinese warplanes.
    • As tensions rise, the world is watching the US, which is face-saving after exiting from Afghanistan.
    • In East and Southeast Asia, several countries including Japan, South Korea, and the Philippines, which are sheltered under the Protective umbrella of the US, are reading the situation.
    • The US has also agreed to abide by the “Taiwan Agreement”, under which US support for the “One China Policy” is premised on Beijing not invading Taiwan.

    Recent initiatives against China

    • The AUKUS pact among the US, UK, and Australia, under which Australia will be supplied with nuclear submarines, has imparted a new dimension to the security dynamics of the Indo-Pacific.
    • Taiwan has welcomed the pact, while China has denounced it as seriously undermining regional peace.

    Implications for India

    • With India facing its own problems with China at the LAC, there have been suggestions that it should review its One China Policy.
    • It has in any case long stopped reiterating this officially — and use not just the Tibet card, but also develop more robust relations with Taiwan to send a message to Beijing.
    • India and Taiwan currently maintain “trade and cultural exchange” offices in each other’s capitals.

    India-Taiwan Ties: A backgrounder

    • India and Taiwan both do not maintain any official diplomatic relations.
    • India recognizes only the People’s Republic of China (in mainland China) and not Taiwan’s claims of being the legitimate government of Mainland China, Hong Kong, and Macau.
    • However, India’s economic and commercial links, as well as people-to-people contacts with Taiwan, have expanded in recent years.
    • Major Taiwanese exports to India include integrated circuits, machinery, and other electronic products.

    India’s interest

    Ans. Semiconductor economy

    • Taiwan’s position as a semiconductor superpower opens the door for more intensive strategic-economic cooperation between Delhi and Taipei.
    • The talks with Taipei are ongoing to bring a $7.5-billion semiconductor or chip manufacturing plant to India.
    • Chips are used in a range of devices from computers to 5G smartphones, to electric cars and medical equipment.

    Way forward

    • Delhi must begin to deal with Taiwan as a weighty entity in its own right that offers so much to advance India’s prosperity.
    • Delhi does not have to discard its “One-China policy” to recognise that Taiwan is once again becoming the lightning rod in US-China tensions.

    Conclusion

    • As Taiwan becomes the world’s most dangerous flashpoint, the geopolitical consequences for Asia are real.
    • Although Delhi has embraced the Indo-Pacific maritime construct, it is yet to come to terms with Taiwan’s critical role in shaping the strategic future of Asia’s waters.

     

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  • Kunming Declaration on Biodiversity Conservation

    The Kunming Declaration was adopted by over 100 countries at the first part of the ongoing virtual 15th meeting of the Conference of the Parties to the United Nations Convention on Biological Diversity.

    Kunming Declaration

    • It calls upon the parties to “mainstream” biodiversity protection in decision-making and recognise the importance of conservation in protecting human health.
    • The theme of the declaration is Ecological Civilization: Building a Shared Future for All Life on Earth.
    • By adopting this, the nations have committed themselves to support the development, adoption and implementation of an effective post-2020 implementation plan for the Cartagena Protocol on biosafety.
    • Signatory nations will ensure that the post-pandemic recovery policies, programs and plans contribute to the conservation and sustainable use of biodiversity.

    About Convention on Biological Diversity (CBD)

    • The CBD (wef 1993) known informally as the Biodiversity Convention, is a multilateral treaty.
    • The convention has three main goals:
    1. the conservation of biodiversity
    2. the sustainable use of its components
    3. the fair and equitable sharing of benefits arising from genetic resources
    • Its objective is to develop national strategies for the conservation and sustainable use of biological diversity, and it is often seen as the key document regarding sustainable development.
    • It has two supplementary agreements, the Cartagena Protocol and Nagoya Protocol.

    (1) Cartagena Protocol

    • It is an international treaty governing the movements of living modified organisms (LMOs) resulting from modern biotechnology from one country to another.

    (2) Nagoya Protocol

    • It deals with Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (ABS).

     

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  • [pib] One Sun One World One Grid

    The Union Minister for Power and New and Renewable Energy (MNRE) has addressed the Ministerial session of the Green Grids Initiative-One Sun One World One Grid (OSOWOG) Northwest Europe Cooperative Event.

    One Sun, One World, One Grid

    • The mega plan of OSOWOG calls for trans-national electricity grid supplying solar power across the globe.
    • It will connect 140 countries through a common grid that will be used to transfer solar power.
    • The idea was first floated by PM Modi in 2018 during the first assembly of the International Solar Alliance (ISA).
    • The vision behind the OSOWOG mantra is “the Sun never sets” and is a constant at some geographical location, globally, at any given point of time.

    With India at the fulcrum, the solar spectrum can easily be divided into two broad zones viz:

    1. Far East: It would include countries like Myanmar, Vietnam, Thailand, Lao, Cambodia and
    2. Far West: It would cover the Middle East and the Africa Region

    Implementation phases of the plan

    The plan is divided into three phases:

    • Phase 1: It will connect the Indian grid with the Middle East, South Asia and South-East Asian grids to share solar and other renewable energy resources
    • Phase 2: It will connect the first phase nations with the African pool of renewable sources
    • Phase 3: It will be the concluding step of global interconnection

    How novel is the idea?

    (1) Scale of the program

    • Not limited by national boundaries, it can tackle global challenges linked to energy.
    • It will tackle access for underserved people and communities the world over.
    • It will enable 3 billion people to access clean drinking water (via solar pumps), give 2 billion women access to clean cooking and bring light to the homes of 750 million people.

    (2) Pivotal moment in India’s energy history

    • Going back even further, almost a decade ago, the price of solar energy (then INR 15 a unit) had raised question marks about its commercial feasibility.
    • Today OSOWOG envisions dispatching surplus electricity at near-zero cost as India produces the cheapest solar-powered electricity anywhere in the world.

    (3) Sustainability

    • OSOWOG directly tackles two key problems that are emerging as energy systems try to deliver both energy sustainability and access to underserved populations.
    • Countries like Singapore or Bangladesh simply may not have enough empty land to generate solar energy.
    • Many nations’ policies also prioritise food security (i.e., devoting land to farming) over solar energy. These countries can still benefit from the solar energy dispatched to them via OSOWOG.

    (4) India extending leadership

    • Having international associations is not a new trend for the energy sector which already has a strong geopolitical organisation such as OPEC.
    • Several countries including China have initiated infrastructure projects in other countries, which is seen as a sign of asserting supremacy by several policy experts.
    • While India is a partner nation with most trade associations, with ISA and OSOWOG, it is planning to take a leadership position.

    Significance of OSOWOG

    • Successful ambitious project: It is obviously a very grand and ambitious project with a looming success.
    • Pathbreaking idea: It is also clear that a new energy sector paradigm is needed as we are facing a huge inflection point in electricity generation and consumption.
    • Green benefits: Potential benefits include widespread scale up in energy access, abatement in carbon emissions, lower cost and improved livelihoods.
    • Energy alternative: With battery and storage technology becoming cheaper, electricity consumption at source end is a more feasible idea for solar power.

    Limitations of OSOWOG

    • Low financial benefits: This may sound a geopolitically a clever strategy. However, it is to be seen if this makes sense, technology-wise and in terms of financial benefits.
    • Cost-sharing challenge: The mechanism of cost-sharing will be challenging, given the varied priorities of participating countries depending on their socio-economic orders.
    • Pace of progress: The OSOWOG will turn out to be an expensive, complex and very slow progress project.
    • Geopolitical issue: Any disruption caused due to any bilateral/multilateral issues can potentially affect critical services in multiple continents and countries.
    • Grid parameters: There is a difference in voltage, frequency and specifications of the grid in most regions. Maintaining grid stability with just renewable generation would be technically difficult.

    Way forward

    • While India has taken baby steps with ISA, a major investment drive is still missing. This is planned to be achieved through OSOWOG.
    • India will need a strong coalition of international partners to realise this vision.

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    Back2Basics: International Solar Alliance

    • Officially announced during UN Climate Change Conference in Paris in 2015, the ISA is a partnership of solar-resource rich countries.
    • Currently, there are 121 countries that have agreed to be members for ISA.
    • Most of these are countries with large participation from Africa, South-east Asia and Europe.
    • Pakistan and China are not a part of ISA.

     

  • India retains 3rd position in RE Investment Attractiveness Index

    India has retained the third rank in the Renewable Energy Country Attractiveness Index released by consultancy firm EY.

    RE Country Attractiveness Index (RECAI)

    • The RECAI ranks the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities.
    • The rankings reflect assessments of market attractiveness and global market trends.

    India’s performance

    • India remained at the third position since three consecutive years.
    • India’s thriving renewable energy market conditions, inclusive policy decisions, investment and technology improvements focusing on self-reliant supply chains have pushed the transition.
    • RECAI highlights that corporate power purchase agreements (PPAs) are emerging as a key driver of clean energy growth.
    • A new PPA Index – introduced in this edition of RECAI – focuses on the attractiveness of renewable power procurement and ranks the growth potential of a nation’s corporate PPA market.
    • India is ranked sixth among the top 30 PPA markets.

    Global scenario

    • The US, mainland China and India continue to retain the top three rankings and Indonesia is a new entrant to the RECAI.
    • The top-performing markets have held their ground in this latest issue – with no movement into or out of the top eight.
    • France (fourth position, up by one) and the UK (fifth position, down by one), while Germany (sixth position, up by one) has edged back ahead of Australia (seventh position, down by one).

     

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  • The sanctions cloud over India-U.S. ties

    Context

    The delivery of the S-400 Triumf air defence systems from Russia is expected according to schedule. In response, U.S. Deputy Secretary of State Wendy Sherman hoped that both the U.S. and India could resolve the issue.

    Background of the CAATSA

    • The Countering America’s Adversaries through Sanctions Act (CAATSA) was passed when the U.S. sought to discourage trade in the defence and intelligence sectors of Russia.
    • The Act mandates the President to impose at least five of the 12 sanctions on persons engaged in a “significant transaction” with Russian defence and intelligence sectors.
    • These sanctions include suspending export licence, banning American equity/debt investments in entities, prohibiting loans from U.S. financial institutions and opposing loans from international finance institutions.
    • The Act also built in a safety valve in the form of a presidential waiver.
    • The “modified waiver authority” allows the President to waive sanctions in certain circumstances.
    • There are a few more provisions including one that allows for sanctions waivers for 180 days, provided the administration certifies that the country in question is scaling back its ties with Russia.

    Implications of CAATSA sanctions against India and scope for waiver

    • Impact on bilateral relationship: Sanctions have the tremendous potential of pulling down the upward trajectory of the bilateral relationship between the U.S. and India, which now spans 50 sectors, especially in the field of defence.
    • India turned sullen over the manner in which the U.S. negotiated the exit deal with the Taliban.
    • Quad engagement: Yet, on the strategic plane, India remained on course by agreeing to the upgrading of the Quadrilateral Security Dialogue and sharing the same vision as the U.S. on the Indo-Pacific construct.
    • The U.S.’s apprehension is that bringing India under a sanctions regime could push New Delhi towards its traditional military hardware supplier, Russia.
    • The U.S. Sanctions can stir up the latent belief in India that Washington cannot be relied upon as a partner.
    • While the administration will have to do the heavy lifting, the role of Indian-Americans should be significant just as they rallied around to support the Civil Nuclear Deal in the face of stiff resistance from Democrats opposed to nuclear proliferation.
    • Decrease in imports from Russia: India’s import of arms decreased by 33% between 2011-15 and 2016-20 and Russia was the most affected supplier, according to a report by the Stockholm-based defence think-tank SIPRI.
    • In recent years, though, there have been some big deals worth $15 billion including S400, Ka-226-T utility helicopters, BrahMos missiles and production of AK-203 assault rifles.
    • Increase in defence import from US: On the other hand, over the past decade, government-to-government deals with the U.S. touched $20 billion and deals worth nearly $10 billion are under negotiation.

    Conclusion

    The CAATSA test will determine the course of the India-U.S. strategic partnership. Whether the Biden administration sail through opposition within his party remains to be seen.

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  • Reforms-based and Results-linked, Revamped Distribution Sector Scheme: Ensuring sustainable turnaround in financial health of discoms

    Context

    In its budget 2021-22, the Union government had announced the launch of a “reforms-based and results-linked” scheme for the distribution sector.

    Precarious financial condition of discoms

    • Their overall debt burden, despite the implementation of the UDAY scheme, is estimated to increase to around Rs 6 lakh crore in the ongoing financial year.
    • Moreover, their annual cash losses are estimated to be about Rs 45,000-50,000 crore (excluding UDAY grants and regulatory income).
    • Due to highly subsidised nature of power tariffs towards agriculture and certain sections of residential consumers, the overall subsidy dependence is likely to be roughly Rs 1.30 lakh crore this year at the all-India level.

    Revamped Distribution Sector Scheme

    • In its budget 2021-22, the Union government had announced the launch of a “reforms-based and results-linked” scheme for the distribution sector.
    • Subsequently, the Revamped Distribution Sector Scheme was notified in July with an overall outlay of Rs 3.03 lakh crore. 
    • Under the scheme, AT&C losses are sought to be brought down to 12-15 per cent by 2025-26, from 21-22 per cent currently.
    • Operational efficiencies of discoms are to be improved through smart metering and upgradation of the distribution infrastructure, including the segregation of agriculture feeders and strengthening the system.
    • The scheme has two parts — Part A with an outlay of Rs 3.02 lakh crore, pertains to the upgradation of the distribution infrastructure and metering related works.
    • Part B, with an outlay of Rs 1,430 crore, is for training and capacity building, besides other enabling and support activities.
    • Discoms and their state governments will have to sign a tripartite agreement with the central government in order to avail benefits under the scheme.
    • Only those discoms that meet all the pre-qualifying criteria will be eligible for the release of funds.
    • A loss-making discom will not be eligible unless it draws up plans to reduce its losses, approved by the state government and filed with the central government.
    • As far as the agricultural sector is concerned, the use of solar power projects to supply electricity to these consumers through the agriculture feeder route is likely to result in savings.
    • This is because of a combination of high tariff competitiveness offered by solar power, lower technical losses due to proximity to load centres, and the ability to meet demand during the day when sunlight is available.
    • In addition, the delicencing initiative proposed by the central government can effect significant changes in the distribution segment, facilitating competition and placing emphasis on the quality and reliability of power supply and consumer services.

    Issue of tariff determination

    • A continuing area of concern affecting discom finances is the significant delay in the process of tariff determination in many states.
    • As of now, only 19 out of 28 states have issued tariff orders for 2021-22, indicating sluggish progress.
    • Further, there is upward pressure on the cost of power supply for distribution utilities, considering the dominant share (around 70 per cent) of coal in the fuel mix for energy generation, the strengthening of imported coal prices and the possibility of domestic coal price revisions by Coal India.
    • As a consequence, a cost-reflective tariff determination process, coupled with the timely pass-through of power purchase costs, remains critical for the utilities.

    Consider the question “Examine the factor that explains the continuing financial woes of state-owned discoms despite implementing several schemes. How Revamped Distribution Sector Scheme seeks to address the issue?”

    Conclusion

    On the whole, while the focus on improving the operational efficiency, and ensuring the financial sustainability of discoms is indeed welcome, timely implementation of the reforms is critical to achieving the milestones.

     

  • Extended Producer Responsibility (EPR) for Plastic Waste Collection

    The Environment Ministry has issued draft rules that mandate producers of plastic packaging material to collect all of their produce by 2024 and ensure that a minimum percentage of it be recycled as well as used in subsequent supply.

    What is EPR?

    • Extended Producer Responsibility (EPR) means the responsibility of a producer for the environmentally sound management of the product (plastic packaging) until the end of its life.
    • India had first introduced EPR in 2011 under the Plastic Waste (Management and Handling) Rules, 2011 and E-Waste Management and Handling Rules, 2011.

    What are the new EPR rules for Plastic Waste?

    (A) Plastic packaging

    • The new EPR guidelines covers three categories of plastic packaging including:
    1. Rigid plastic
    2. Flexible plastic packaging of single layer or multilayer (more than one layer with different types of plastic), plastic sheets and covers made of plastic sheet, carry bags (including carry bags made of compostable plastics), plastic sachet or pouches
    3. Multi-layered plastic packaging which has at least one layer of plastic and at least one layer of material other than plastic.
    • It has also specified a system whereby makers and users of plastic packaging can collect certificates — called Extended Producer Responsibility (EPR) certificates — and trade in them.

    (B) Ineligible plastics for EPR

    • Only a fraction of plastic that cannot be recycled will be eligible to be sent for end-of-life disposal such as road construction, waste to energy, waste to oil and cement kilns.
    • Only methods prescribed by the Central Pollution Control Board will be permitted for their disposal.

    Targets for recycling

    • In 2024, a minimum 50% of their rigid plastic (category 1) will have to be recycled as will 30% of their category 2 and 3 plastic.
    • Every year will see progressively higher targets and after 2026-27, 80% of their category 1 and 60% of the other two categories will need to be recycled.
    • If entities cannot fulfil their obligations, they will on a “case by case basis” be permitted to buy certificates making up for their shortfall.

    Effects on non-compliance

    • Non-compliance, however, will not invite a traditional fine.
    • Instead, an “environmental compensation” will be levied, though the rules do not specify how much this compensation will be.

    Challenges in mandatory EPR

    There are several challenges faced by both producers and bulk consumers that hinder proactive participation.

    • Consumer awareness: Waste segregation has been the greatest challenge in India owing to lack of consumer awareness.
    • Lack of compliance: The plastic producers do not wish to engage in the process holistically and take the effort to build awareness.
    • Large scale involvement: The EPR doesn’t take into account the formalization of informal waste pickers, aggregators and dismantlers.
    • Lack of recycle infrastructure: These challenges range from lack of handling capacity to illegitimate facilities in the forms of multiple accounting of waste, selling to aggregators and leakages.

    Way forward

    • Tracking mechanism: What India needs is to develop tracking mechanisms and provide oversight of waste compliance, in order to ensure that the mechanism of waste disposal is streamlined.
    • Strict enforcement: While enforcement strictness is of paramount importance, it is also vital to build an incentive structure around this to ensure better complicity by the producers.
    • Innovation: The time is ripe for innovators to come up with an alternative for plastics and the strong will of the Government to rid the toxic waste in a sustainable and safe manner.

    Try answering this PYQ:

    Q.In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following?

    (a) The Bio-medical Waste (Management and Handling) Rules, 1998

    (b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999

    (c) The e-Waste (Management and Handling) Rules, 2011

    (d) The Food Safety and Standard Regulations, 2011

     

    [wpdiscuz-feedback id=”sv0hin90ca” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

    Also read:

    [Burning Issue] Ban on Single Use Plastics

     

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