💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Distribution: weekly

  • Govt. tells utilities to ship in coal as demand surges

    The govt. has urged utilities to import coal despite having the world’s fourth-largest reserves, with several power plants on the verge of running out of fuel due to a surge in power demand.

    Coal Mining in India

    • Coal in India has been mined since 1774 and is now the second fastest mined in the world, producing 716 million metric tons (789 million short tons) in 2018.
    • Due to high demand and poor average quality, India imports coking coal to meet the requirements of its steel plants.
    • Dhanbad city is the largest coal-producing city and is called the Coal Capital of India.
    • State-owned Coal India had a monopoly on coal mining between its nationalization in 1973 and 2018.

    Consumption

    • Coal-fired power accounts for more than 70% of India’s electricity generation. Electricity generation makes up three-fourths of India’s coal consumption.

    Quality of coal

    • The ash chemistry of Indian coal is such that it is high in silica and alumina.
    • The ash is also highly abrasive because of its high quartz content, which can lead to erosion of the syngas cooling system when it gets fused.
    • Indian coal’s sulfur content is low, about 0.5 percent.
    • So, from a gas clean-up perspective, the flue gas desulphurization (removal of SOx gases) and NOx removal system is not economically justifiable and, therefore, not important.
    • Also, in the Indian context, this is unnecessary to meet emission norms.

    Coal reserves

    • India has the fourth-largest coal reserves in the world. It is the second-largest producer of coal in the world, after China.
    • Coal deposits are primarily found in eastern and south-central India.
    • Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana, and Maharashtra accounted for 98.09% of the total known coal reserves in India.
    • As of 31 March 2019, Jharkhand and Odisha had the largest coal deposits of 25.88% and 24.76% respectively.

    Imports

    • Coking Coal is being imported by the Steel Authority of India Limited (SAIL) and other Steel manufacturing units mainly to bridge the gap between the requirement and indigenous availability and to improve the quality.
    • Coal-based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers, and coal traders are importing non-coking coal.
    • Coke is imported mainly by Pig-Iron manufacturers and Iron & Steel sector consumers using mini-blast furnaces.

    Try answering this PYQ:

    Which of the following is/are the characteristics/ characteristics of Indian coal?

    1. High ash content
    2. Low Sulphur content
    3. Low ash fusion temperature

    Select the correct option using the codes given below:

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    [wpdiscuz-feedback id=”0tm49llrlj” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Exercise ZAPAD 2021

    A contingent of 200 Army personnel will participate in the multinational Exercise ZAPAD 2021 being held at Nizhniy, Russia.

    ZAPAD 2021

    • ZAPAD is one of the theatre-level exercises of Russian armed forces and will focus primarily on operations against terrorists.
    • The NAGA Battalion group participating in the exercise will feature an all arms combined task force.
    • The exercise aims to enhance military and strategic ties amongst the participating nations while they plan and execute this exercise.
    • In all, 17 countries have been invited by Russia for the exercise. Of these nine are Participating countries which include Mongolia, Armenia, Kazakhstan, Tajikistan, Kyrgyzstan, Serbia, Russia, India, and Belarus.
    • The other eight countries are Observers which include Pakistan, China, Vietnam, Malaysia, Bangladesh, Myanmar, Uzbekistan, and Sri Lanka.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

    Must read:

    [Prelims Spotlight] Various Defence Exercises in News

  • Freedom of Movement and Residence

    The rights to free movement and residence across India cannot be curtailed on flimsy grounds, a Bench of Justices Indira Banerjee and V. Ramasubramanian held in a judgment.

    Freedom of Movement and Residence

    • Article 19(1)(d) and (e) of the Indian Constitution guarantees to every citizen of India right to move freely throughout the territory of India and to reside and settle in any Part of the of the Territory of India.
    • This right is subject to reasonable restrictions imposed by law in the interest of the general public or for the protection of the interests of any Scheduled Tribes.

    (A) Freedom of Movement under Article 19(1)(d)

    • All Citizens of India have the right “to move freely throughout the territory of India.
    • This Right is, however subject to reasonable restrictions mentioned under Article 19(5).

    Restrictions:

    • This clause (5) empowers the State to impose reasonable restrictions in the interest of the general public or for the protection of the interest of any Scheduled Tribe.
    • Kharak Singh V. State of UP (1963) Case: The Supreme Court held that the right to move freely throughout the territory of India means the right of locomotion which connotes the right to move wherever one likes, and however one likes.
    • State of UP V. Kaushalya Case (1964):  In this case, the Supreme court held that the right of movement of prostitutes may be restricted on grounds of Public Health and in the interest of Public Morals.

    (B) Freedom of Resident under Article 19(1)(e)

    • Article 19(1)(e) of the Indian Constitution guarantees to every citizen of India, the right “to reside and settle in any part of the territory of India”.
    • This right is subjected to reasonable restrictions which may be imposed by the State in the interest of the general public or for the protection of the interest of any Scheduled Tribe.

    Some facts

    • The Freedom of Movement and Residence apply only to citizens of India and not the Foreigners.
    • A foreigner cannot claim the right to reside and settle in the country as guaranteed by Article Article 19(1)(e).
    • The Government of India has the power to expel foreigners from India.

    Why in news, now?

    • The Supreme Court has held that the power of the State to pass an externment order or a direction barring certain people entry to specified areas should be exercised only in “exceptional cases”.
    • The court said externment orders have their use in maintaining law and order.
    • However, they cannot be employed as a vindictive or retaliatory measure.
    • The drastic action of externment should only be taken in exceptional cases, to maintain law and order in a locality and/or prevent breach of public tranquility and peace, the court noted.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

    Back2Basics: Article 19

    Article 19(1) states that All citizens shall have the right:

    • (a) to freedom of speech and expression;
    • (b) to assemble peaceably and without arms;
    • (c) to form associations or unions;
    • (d) to move freely throughout the territory of India;
    • (e) to reside and settle in any part of the territory of India; and
    • (f) omitted
    • (g) to practice any profession, or to carry on any occupation, trade, or business

  • China-Myanmar New Passage

    The shipments on a newly-launched railway line under the China-Myanmar New Passage from the Myanmar border to the key commercial hub of Chengdu in western China have started.

    China-Myanmar New Passage

    • The passage provides China a new road-rail transportation channel to the Indian Ocean, were delivered last week, state media reported on Tuesday.
    • The transport corridor involves a sea-road-rail link.
    • It connects the logistics lines of Singapore, Myanmar, and China, and is currently the most convenient land and sea channel linking the Indian Ocean with southwest China.
    • Goods from Singapore reached Yangon Port, arriving by ship through the Andaman Sea of the northeastern Indian Ocean, and were then transported by road to Lincang on the Chinese side of the Myanmar-China border in Yunnan province.
    • The new railway line that runs from the border town of Lincang to Chengdu, a key trade hub in western China, completes the corridor.

    Why does India need to be watchful?

    • From the perspective of security, India’s border with Myanmar has historically presented serious security challenges.
    • Chinese troops had used the Myanmar route to threaten India’s North-eastern States prior to the 1962 war.
    • In the run-up to the India-China war of 1962, Chinese troops had commissioned local muleteers in Northern Myanmar to facilitate the movement of troops and war logistics to challenge India’s Northeast.

    Way forward

    • The work on infrastructure projects in India’s Northeastern States needs to be expedited to ensure speedy mobilization of India’s own troops to face different contingencies.
    • Monitoring of developments including deployment of space assets to ensure that India is not caught unaware would be desirable.
    • Most importantly, India on its part needs to substantially step up its own game in Myanmar and proactively engage Myanmar in the realm of the infrastructure upgrade.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Mumbai Climate Action Plan (MCAP)

    The Brihanmumbai Municipal Corporation (BMC) is drafting a Mumbai Climate Action Plan (MCAP) in a bid to tackle climate challenges.

    What is the Mumbai Climate Action Plan?

    • Amid warnings of climate change leading to extreme weather events in the city, the civic body has started preparing the Mumbai Climate Action Plan (MCAP).
    • It will look at climate resilience with mitigation and adaptation strategies by focusing on six areas —
    1. Sustainable waste management
    2. Urban greening and Biodiversity
    3. Urban flooding and Water Resource Management
    4. Building Energy Efficiency
    5. Air Quality and
    6. Sustainable Mobility
    • The plan is expected to be ready by November ahead of the United Nations Climate Change (COP26) conference at Glasgow, Scotland.

    Why does Mumbai need a climate action plan?

    Mumbai’s climate action plan will help set a vision and implement strategies to fight these climate challenges with mitigation and adaptation steps.

    • Flash floods: As per a study conducted by the World Resource Institute (WRI) India, the city will face two major climate challenges — the rise in temperature, and extreme rain events which will lead to flooding.
    • Temperature rise: The city has seen a constant rise in temperature after 2007, and a substantial increase in intense rainfall and storm events in the last five years.
    • Sea level rise: A recent report from the IPCC has warned that at least 12 Indian coastal cities including Mumbai will face a sea rise of 0.1 metres to 0.3 metres in the next three decades due to climate change.

    What is the greenhouse gas emission of the city?

    • The data show that Mumbai’s greenhouse gas emission was 34.3 million tonnes in 2019, and of which 24.23 million tonnes or 71 per cent came from the energy sector which is mainly based on coal.
    • At least 24 per cent or 82,21,902 tonnes is from transport, and the remaining 5 per cent or 18,53,741 tonnes from solid waste management.
    • The maximum contribution from the energy sector was mainly due to domestic and commercial usage of electricity.
    • As per the data, 95 percent of Mumbai’s electricity is coal-based and needs to be shifted to renewable energy to bring down emissions.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • West Nile Virus outbreak in Russia

    Russia warned of a possible increase in West Nile virus infections this autumn as mild temperatures and heavy precipitation create favorable conditions for the mosquitos that carry it.

    West Nile virus (WNV)

    • WNV is mainly transmitted through mosquito bites and can lead to fatal neurological diseases in humans, although most people infected never develop any symptoms.
    • Cases of WNV occur during mosquito season, which starts in the summer and continues through fall.

    Its origin

    • Originally from Africa, the WNV has spread to Europe, Asia, and North America.
    • It was first isolated in a woman in the West Nile district of Uganda in 1937.
    • It was identified in birds in the Nile delta region in 1953.
    • Before 1997, WNV was not considered pathogenic for birds.
    • Human infections attributable to WNV have been reported in many countries for over 50 years.

    Symptoms

    • Infected persons usually have no symptoms or mild symptoms.
    • Some of the symptoms include fever, headache, body aches, skin rash, and swollen lymph glands.
    • They can last a few days to several weeks and usually, go away on their own.
    • Prolonged illness may cause inflammation of the brain, called encephalitis, or inflammation of the tissue that surrounds the brain and spinal cord, called meningitis.

    Treatment

    • There is no vaccine against the virus in humans although one exists for horses, the WHO says.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Operation Devi Shakti

    India has termed the evacuation operation from Afghanistan in the backdrop of the Taliban’s takeover of the country last week as “Operation Devi Shakti”.

    Operation Devi Shakti

    • Operation Devi Shakti is an ongoing operation of the Indian Armed Forces to evacuate Indian citizens and foreign nationals after the fall of the Islamic Republic of Afghanistan to the Taliban.

    Major evacuations undertaken

    • Up till now, around 400 individuals from Kabul have been evacuated that covered Indian citizens as well as Afghan nationals including Sikhs and Hindus of Afghanistan.
    • Hundreds of Indian nationals have to be taken out of Kabul which is now under the Taliban’s control.
    • India is airlifting its citizens through Dushanbe in Tajikistan and Qatar.
    • The Indian Air Force has already evacuated around many passengers including its Ambassador to Afghanistan and all other diplomats.

  • The National Monetisation Pipeline may not help realise the best value for assets

    Context

    The Government has launched a National Monetisation Pipeline, or NMP  to sell the revenue streams of public assets over the next four years.

    About NMP

    • Financing infrastructure: As outlined in the Union Budget, the NMP aims to mobilize resources for financing infrastructure.
    • Type of assets: The pipeline mostly includes railway stations, freight corridors, airports, and renovated national highway segments amounting to ₹6-lakh crore, or 3% of GDP in 2020-21.
    • The other two methods of raising resources are: setting up a development finance institution (DFI) and raising the share of infrastructure investment in the central and State Budgets.

    Concerns

    1) Not different from Disinvestment-Privatisation (D-P)

    • Asset monetization as defined in NMP is the same as the net present value (NPV) of the future stream of revenue with an implicit interest rate (whether it is a sale or lease of the asset).
    • Missed targets: Since D-P proceeds (revenues) have seriously missed the targets almost every year, how believable are the NMP targets? And how are they likely to perform differently?
    • If the NMP attempt to shore up public finances, such distress (fire) sale would find it difficult to obtain a “fair value” for public assets.
    • Would the market not factor in the dire state of the economy in beating down the prices, as in any distress sale?
    • The NMP document seems silent on how to overcome past mistakes.

    2) PPP mode of implementation

    • The NMP outlines mainly two modes of implementing monetization: public-private partnership (PPP) and “structured financing” to tap the stock market.
    • PPP in infrastructure has been a financial disaster in India, as evident from what happened after the economic boom of 2003-08.
    • After the 2008 financial crisis, many PPP projects failed to repay bank loans leading to the piling up of non-performing assets (NPAs) of banks.
    • Further, the bulk of the lending was too politically connected to corporate houses and firms.
    •  India is still reeling from the legacy of that period without any easy and credible solutions in sight.

    3) Stock market crash threatens the success of InvIT

    • An Infrastructure Investment Trust (InvIT) is being mooted as an alternative means of raising finance from the stock market.
    • In principle, InvIT is much like a mutual fund, whose performance is largely linked to stock prices.
    • The disinvestment process began in 1991 in which the bundles of shares of public sector enterprises (PSEs) were sold by UTI in the booming secondary stock market to realize the best price.
    • However, as the market crashed in the wake of the Harshad Mehta scam, stalling and discrediting the disinvestment process for almost the entire decade.
    • Hence, it may be worth learning the lessons from the historical missteps before exploring the idea all over again by the current stock market boom
    • At present, the U.S. Fed committed to reducing its assets purchase program (known as quantitative easing), the “hot money” inflow that has fuelled Indian stock prices may dry up throwing up nasty surprises.

    Thus, it seems unwise to anchor the acutely needed investment revival strategy on a discredited PPP model or on fickle Foreign Institutional Investors (FII) investment in a frothy stock market.

    Suggestion: Monetise debt

    • With the financial system flush with liquidity with no takers for bank credit, finance the proposed investment — as envisaged in the Budget — by government borrowing.
    • With a negative 0.4% real interest rate (real interest rate is nominal interest rate minus inflation rate), domestic borrowing in home currency is a steal.
    • No Crowding out: Chances of crowding-out private investments are remote with a liquidity overhang in the market.
    • Low inflation risk: Inflation risk is also limited with little aggregate demand pressures (barring temporary bottlenecks due to localized lockdowns).
    • Rating downgrade risk:  If the debt is productively used to expand GDP (the denominator), rating downgrade risk due to the rising Debt-GDP ratio seems minimal.
    •  Moreover, rising external debt by fickle portfolio investors perhaps carries a greater risk to external instability.

    Consider the question “How the National Monetisation Pipeline seeks to implement the asset monetisation? What are the challenges in asset monetisation?”

    Conclusion

    If reviving investment demand quickly is the real goal, debt monetisation seems a better option than asset monetisation.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • India becomes 4th largest forex reserves holder globally

    India’s foreign exchange reserves rose by $835 million to touch a record high of $612.73 billion in the week ended July 16, 2021, the Reserve Bank of India (RBI) data showed.

    Forex Reserves

    India’s forex reserves cover:

    • Foreign Currency Assets (FCAs) (rose by $463 million to $568.748 billion)
    • Special Drawing Rights (SDRs) (up by $1 million at $1.548 billion)
    • Gold Reserves (up by $377 million to $37.333 billion)
    • Reserve position with the International Monetary Fund (IMF) (up by $1 million at $1.548 billion)

    (Note the descending order of the shares of various components of forex reserves. UPSC can go factual here.)

    What is Foreign Exchange Reserve?

    • Foreign exchange reserves are important assets held by the central bank in foreign currencies as reserves.
    • They are commonly used to support the exchange rate and set monetary policy.
    • In India’s case, foreign reserves include Gold, Dollars, and the IMF’s quota for Special Drawing Rights.
    • Most of the reserves are usually held in US dollars, given the currency’s importance in the international financial and trading system.
    • Some central banks keep reserves in Euros, British pounds, Japanese yen, or Chinese yuan, in addition to their US dollar reserves.

    Countries with the highest foreign reserves

    Currently, China has the largest reserves followed by Japan and Switzerland. India has overtaken Russia to become the fourth largest country with foreign exchange reserves.

    1. China – $3,349 Billion
    2. Japan – $1,376 Billion
    3. Switzerland – $1,074 Billion
    4. India – $612.73 Billion
    5. Russia – $597.40 Billion

    Why are these reserves so important?

    • All international transactions are settled in US dollars and, therefore, required to support India’s imports.
    • More importantly, they need to maintain support and confidence for central bank action, whether monetary policy action or any exchange rate intervention to support the domestic currency.
    • It also helps to limit any vulnerability due to sudden disturbances in foreign capital flows, which may arise during a crisis.
    • Holding liquid foreign currency provides a cushion against such effects and provides confidence that there will still be enough foreign exchange to help the country with crucial imports in case of external shocks.

    Initiatives taken by the government to increase forex

    • To increase the foreign exchange reserves, the Government of India has taken many initiatives like AatmaNirbhar Bharat, in which India has to be made a self-reliant nation so that India does not have to import things that India can produce.
    • Other than AatmaNirbhar Bharat, the government has started schemes like Duty Exemption Scheme, Remission of Duty or Taxes on Export Product (RoDTEP), Nirvik (Niryat Rin Vikas Yojana) scheme, etc.
    • Apart from these schemes, India is one of the top countries that attracted the highest amount of Foreign Direct Investment, thereby improving India’s foreign exchange reserves.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • What is the School Bubble Concept?

    The Karnataka government has proposed the ‘school bubble’ concept to mitigate the spread of the disease among children (aged below 18) attending offline classes at schools and pre-university colleges across the state.

    It takes a village to raise a child.

    -Anonymous

    What are school bubbles?

    • School bubbles are physical classifications made between groups comprising a small number of students.
    • As per the concept, each such bubble will include students who tend to remain as a group during school hours throughout the term or an academic year.
    • The concept would help managements easily isolate a fewer number of students in case anyone gets infected.
    • For instance, a school bubble can include 30 students. If one among them gets infected, the others can self-isolate but the school need not be closed completely.
    • This would allow uninterrupted learning to others as well.

    Why are school bubbles significant?

    • The concept of school bubbles, experts feel, will be more relevant to students studying in primary school or below.
    • These students will have more chances of peer-to-peer interactions on a daily basis.
    • With school bubbles in place, the risk assessment process to identify close contacts of a Covid-positive student will also get easier.

    Is this concept completely new?

    • This has been successfully implemented at schools in the United Kingdom.
    • The government there has further relaxed social-distancing measures for students within a particular school bubble.
    • However, all members of the bubble are mandatorily subjected to RT-PCR tests if a student is infected.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)