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GS Paper: GS3-13.Infrastructure: Energy, Ports, Roads, Airports, Railways etc:

  • All India Radio (AIR) to be renamed Akashvani

    radio

    Central idea: The Centre has ordered that public broadcaster All India Radio (AIR) be exclusively referred to as Akashvani in all broadcasts and programmes.

    All India Radio: Through history

    • The journey of radio broadcasting in India began with the first commercial transmission sent out by the Radio Club of Bombay in 1923.
    • In 1927, the Indian Broadcasting Company (IBC) was established and in 1930, the Indian State Broadcasting Service (ISBS) was set up.
    • In 1936, ISBS was renamed as All India Radio (AIR).
    • At the time of Independence, AIR covered only two percent of India’s land area and reached just 11 percent of its population.
    • Today, AIR has a network of over 262 radio stations, covering 92% of India’s area and nearly all of its population.
    • It broadcasts in 23 languages and 146 dialects and also has an External Services Division which broadcasts in 11 Indian and 16 foreign languages, reaching out to more than 100 countries.
    • AIR’s News Services Division broadcasts 647 bulletins daily for a total duration of nearly 56 hours.
    • FM broadcasting began in 1977 in Chennai and today, AIR has 18 FM stereo channels.

    Why the name change?

    • The order to exclusively refer to AIR as Akashvani is in line with the provisions of the Prasar Bharati Act, 1990, passed by Parliament.
    • Listeners have more of a connect with Akashvani and that the name change is in tune with the law which came into being in 1997.

    Importance of AIR

    • AIR played a crucial role in communicating momentous events in India’s recent history, prior to the advent of television or digital media.
    • AIR’s place in history is cemented due to its role in broadcasting Jawaharlal Nehru’s iconic “Tryst with Destiny” speech in 1947 and Kapil Dev’s mythical 175 run knock in 1983, among other events.
    • For many Indians, the Akashvani jingle evokes nostalgia and memories of a bygone era when they woke up to the sounds of the jingle at the break of dawn and started their day with AIR programming.

  • Oil and Gas Price Volatility: India’s Farsighted Governance

    Oil and Gas

    Central Idea

    • The present government has taken several measures to protect Indian consumers from international oil and gas price volatility. The recent Cabinet decision to approve a series of critical Administered Price Mechanism (APM) gas pricing reforms will further advance this objective. These reforms aim to protect Indians from extreme price volatility, promote more innovation and investments in exploration and production (E&P), and provide clarity for planned capex investments in gas-based sectors.

    Reasons for oil and gas price volatility

    • Global supply and demand: The balance between global supply and demand for oil and gas is a key factor in price volatility. If there is a surplus of supply, prices may decrease, while if there is a shortage of supply, prices may increase.
    • Geopolitical tensions: Political tensions between countries, such as trade disputes or conflicts, can affect oil and gas prices. For example, if there is a threat of war or supply disruption in a major oil-producing country, prices may rise.
    • Weather conditions: Extreme weather events, such as hurricanes or cold snaps, can impact oil and gas production and distribution, leading to price fluctuations.
    • Economic growth: Economic growth can drive up demand for oil and gas, which can lead to higher prices. Conversely, economic slowdowns can reduce demand and lead to lower prices.
    • OPEC decisions: The Organization of the Petroleum Exporting Countries (OPEC) plays a significant role in global oil prices by controlling production levels. Decisions made by OPEC, such as production cuts or increases, can affect prices.

    Measures taken by the Indian government to protect consumers from oil and gas price volatility?

    • Increasing domestic Administered Price Mechanism (APM) gas allocation: This step was taken to provide more clarity for planned capital expenditure investments in gas-based sectors and diverting gas from non-priority sectors to transport and domestic segments.
    • APM gas pricing reforms: The recent Cabinet decision to approve a series of critical APM gas pricing reforms will further advance the objective of protecting Indian consumers from extreme price volatility. These reforms achieve two major goals: First, to protect Indians from extreme price volatility, and second, to promote more innovation and investments in exploration and production (E&P).
    • Benchmarking APM prices: The government decided to insulate domestic gas consumers as well as national oil companies from such volatility by benchmarking APM prices to a slope of 10 per cent of Indian crude basket price to be determined on a monthly basis, together with a ceiling of $6.5/MMBTU and floor of $4.5/MMBTU for nomination fields.
    • Reduction in fertiliser subsidies: After these reforms, the reduction in fertiliser subsidies is expected to be more than Rs 2,000 crore each year.
    • Incentivising investment in the E&P sector: These reforms will also help incentivise investment in the E&P sector by providing a floor price for mature fields of nomination while also incentivising new wells of nomination fields which will receive 20 per cent higher prices.
    • Expansion of gas pipeline network and CGD stations: Since 2014, India has increased the length of its gas pipeline network from 14,700 km to 22,000 km in 2023. The number of CGD-covered districts in India has increased from 66 in 2014 to 630 in 2023 while CNG stations have gone up from 938 in 2014 to 5,283 in 2023.

    Facts for prelims

    Type of Oil/Gas Production Process Applications Advantages Disadvantages Pollutants
    Crude Oil Extracted from oil wells through drilling Transportation, fuel for power generation, industrial uses High energy density, easy to transport Air pollution, carbon emissions, oil spills Carbon monoxide, nitrogen oxides, sulfur dioxide
    Natural Gas Extracted from gas wells through drilling or extracted alongside crude oil Power generation, heating, cooking, industrial uses Cleanest burning fossil fuel, high energy efficiency Methane emissions, can leak during production and transportation Carbon dioxide, nitrogen oxides
    Liquefied Petroleum Gas (LPG) Extracted during crude oil refining or extracted alongside natural gas Cooking, heating, transportation Clean burning, easy to store and transport Non-renewable, carbon emissions during production and transportation Carbon monoxide, nitrogen oxides
    Compressed Natural Gas (CNG) Extracted alongside crude oil or natural gas Transportation, cooking Lower emissions than petrol and diesel, cost-effective Requires specialized vehicles and refueling stations, less energy-dense than petrol and diesel Carbon monoxide, nitrogen oxides
    Shale Gas Extracted through hydraulic fracturing of shale rock formations Power generation, heating, cooking, industrial uses Abundant, reduces dependence on foreign oil, lower carbon emissions than coal Requires large amounts of water, potential for groundwater contamination, methane leaks Carbon dioxide, nitrogen oxides

    Way ahead for India’s oil and gas sector

    • Encourage and promote domestic oil and gas production: The government should continue to incentivize domestic oil and gas production to reduce dependence on imports and minimize price volatility. This could be achieved by introducing more investor-friendly policies, simplifying regulations, and exploring untapped reserves.
    • Develop a comprehensive energy policy: India needs to develop a comprehensive energy policy that outlines a clear vision for the sector’s development and growth. This policy should take into account environmental concerns, technological advancements, and future energy demands.
    • Increase investment in infrastructure: The government should invest in building critical infrastructure like pipelines, terminals, and storage facilities to improve supply chain efficiency and reduce transportation costs. This will also enable the country to tap into more remote oil and gas reserves.
    • Promote alternative sources of energy: Given the pressing need to reduce greenhouse gas emissions, India should promote alternative sources of energy such as solar, wind, and hydropower. This will not only help in meeting India’s climate goals but also reduce the dependence on fossil fuels.
    • Improve pricing transparency: India should work towards improving pricing transparency in the oil and gas sector. This will help to ensure a level playing field for all players, promote healthy competition, and enable consumers to make informed decisions.
    • Strengthen international partnerships: India should strengthen its partnerships with other countries, particularly those in the Gulf region, to ensure a stable supply of oil and gas. This will also help in diversifying sources of energy and reduce dependence on a few countries.
    • Foster innovation: The government should incentivize research and development in the oil and gas sector to encourage innovation and promote the use of advanced technologies. This could help in improving extraction techniques, reducing environmental impact, and optimizing resource utilization.

    Conclusion

    • India’s efforts to protect its consumers from international oil and gas price volatility are commendable. The recent APM gas pricing reforms will further advance this objective and promote more innovation and investments in exploration and production (E&P) and provide clarity for planned capex investments in gas-based sectors. With a growing demand for natural gas, India is well on its way to realizing a gas-based economy as part of its broader energy transition goals. The vision of a cleaner, greener, and more sustainable energy future for India is steadily becoming a reality.

    Mains question

    Q. Discuss the factors behind Oil and gas sector being volatile. What are the measures taken by the Indian government to protect consumers from oil and gas price volatility?

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    Also read:

    What should India do in the current international energy market?

  • Whether The Nuclear Power in India Should Be Phased Out?

    Nuclear

    Central idea

    • Germany has recently shut down its last nuclear power plant, and France, the nuclear powerhouse of the world, is struggling to replenish its stock of aging reactors. With solar and wind power becoming more popular globally, the question arises whether nuclear power, with its attendant concerns on cost and safety, remains a relevant option for a fossil-free future, particularly in India. The question here arises is that whether the nuclear power in India should be phased out?

    Global outlook for nuclear power

    • Nuclear power renaissance in Europe and US: A lot has happened in the last two years. Particularly after the Ukraine war, nuclear power is seeing a renaissance, even in Europe and the U.S.
    • China: China has anyway been surging ahead on nuclear power.
    • South Korea: South Korea’s new president has changed the energy policy and committed to increasing the share of nuclear power in the country’s energy mix to 30% by 2030.
    • Japan: Japan, which should have completely shut down reactors after the Fukushima (accident), is restarting them, 10 have been restarted following years of inspection and upgrading safety systems, and I believe that the plan is to start 10 more. Japan had to do that because it was otherwise dependent either on expensive, imported coal or on natural gas (LNG).
    • UK: Beyond Germany, the U.K. has said that without scaling up nuclear power, it won’t be possible to decarbonise the electricity sector.

    Facts for prelims

    Element Deposits in India Applications Advantages Disadvantages
    Uranium Jaduguda, Bhatin, Narwapahar, Banduhurang, Mohuldih and Turamdih in Jharkhand; Lambapur-Peddagattu in Telangana; Gogi in Karnataka; and Tummalapalle in Andhra Pradesh Electricity generation, nuclear weapons, nuclear medicine Low carbon emissions, efficient energy production, cost-effective Radioactive waste management, risk of nuclear accidents, non-renewable
    Thorium Kerala coast, Bihar, Jharkhand, Tamil Nadu, Odisha, and Rajasthan Electricity generation, nuclear weapons, nuclear medicine More abundant than uranium, low levels of radioactivity, more efficient energy production than uranium Requires a breeder reactor, expensive, currently not widely used

    Why nuclear power is considered low-carbon or green energy?

    • Low greenhouse gas emissions: Nuclear power plants do not produce carbon dioxide or other greenhouse gases during their operation, unlike fossil fuel plants that emit large amounts of carbon dioxide and contribute to climate change.
    • High energy density: Nuclear fuel contains a very high energy density, which means that a small amount of fuel can produce a large amount of energy. This makes nuclear power a very efficient and reliable source of energy.
    • Energy security: Nuclear power plants provide a stable and reliable source of energy, which can help to reduce dependence on fossil fuels and improve energy security.
    • Reduced air pollution: Nuclear power plants do not emit pollutants such as sulfur dioxide, nitrogen oxides, or particulate matter, which can have negative impacts on human health and the environment.
    • Land use: Nuclear power plants require much less land than renewable energy sources such as wind or solar power, which can help to conserve land and natural habitats.

    How Nuclear energy is also responsible for greenhouse gas emissions?

    • Nuclear energy itself does not emit greenhouse gases during its operation, but it does produce greenhouse gas emissions during the lifecycle of the plant, including mining, processing, and transportation of nuclear fuel.
    • The construction and decommissioning of nuclear power plants also produce greenhouse gas emissions. Additionally, nuclear power plants rely on fossil fuels for the transportation of nuclear fuel and the operation of auxiliary systems.
    • The greenhouse gas emissions associated with nuclear energy are significantly lower than those associated with fossil fuels, but they are not zero.

    Why is there resistance to nuclear energy?

    • Safety concerns: The risk of nuclear accidents, such as those that occurred at Chernobyl and Fukushima, have led to safety concerns about nuclear power plants. The potential for radioactive contamination and long-term health effects on the surrounding population have made many people wary of nuclear power.
    • Nuclear proliferation: The possibility that nuclear power could be used to develop nuclear weapons is a concern for many countries, particularly those with nuclear weapons programs themselves.
    • Waste disposal: The radioactive waste produced by nuclear power plants is dangerous and must be stored safely for hundreds of thousands of years. Finding a safe and secure method of storing this waste is a major challenge.
    • Cost: Nuclear power plants are expensive to build and maintain. Cost overruns and delays are common, and the cost of decommissioning nuclear power plants at the end of their life can be significant.
    • Public perception: Nuclear power has a negative public image in many countries, with many people associating it with danger and disaster.

    Facts for Prelims

    Uranium Thorium
    Atomic number 92 90
    Natural isotopes U-238, U-235, U-234 Th-232
    Radioactivity Highly radioactive Weakly radioactive
    Fissile U-235 is fissile Not fissile
    Nuclear weapons Can be used to create nuclear weapons Cannot be used to create nuclear weapons
    Nuclear power Widely used for nuclear power Not commonly used for nuclear power
    Decay products Produces many long-lived and dangerous decay products Produces fewer and less dangerous decay products
    Availability Limited reserves Abundant reserves
    Waste disposal Radioactive waste remains dangerous for thousands of years Radioactive waste decays faster and becomes less dangerous
    Environmental impact Can have significant environmental impact Considered less environmentally damaging than uranium mining
    Health effects Exposure can cause serious health effects, including cancer Less harmful to human health than uranium

    What are the concerns over radioactivity from spent fuel?

    • Long-term storage: Spent nuclear fuel remains radioactive for thousands of years and requires careful handling and storage to prevent any potential exposure to humans and the environment.
    • Accidents: Accidents during transportation or storage of spent nuclear fuel can result in the release of radioactive material, which can cause severe environmental damage and health risks to humans and other living organisms.
    • Nuclear proliferation: Spent nuclear fuel can also be used to create nuclear weapons, and there are concerns about the risk of nuclear proliferation and the potential use of these weapons.
    • Disposal: The long-term disposal of spent nuclear fuel is also a major challenge, as it requires finding safe and secure locations to store the material for thousands of years.

    Why India should never consider phasing out nuclear power?

    • Limited growth potential for hydropower: India has limited growth potential for hydropower due to factors such as conserving biodiversity, rehabilitating and compensating landowners, and seismological factors in the Himalayas. Therefore, nuclear power is an alternative to coal-based power plants.
    • Net-zero emissions goal: To achieve the goal of net-zero carbon emissions by 2070, India needs a combination of small modular reactors and large reactors. Therefore, multiple companies need to be allowed to operate nuclear reactors rather than a monopoly by the Nuclear Power Corporation of India Limited.
    • Firm, reliable and low-carbon power: Nuclear power is a source of firm, dispatchable power that is low carbon and reliable. It can provide a constant and stable source of electricity, especially when wind and solar energy are intermittent or variable.
    • Access to nuclear fuel: India has limited access to enriched uranium, which is required to fuel nuclear reactors. However, the country’s nuclear program is based on working around its limited supply of enriched uranium, and it has not faced any significant issues in accessing nuclear fuel.
    • Portfolio of technologies: A mix of supply-side and demand-side technologies is required to solve energy problems. Nuclear power can be a part of the portfolio of technologies that India needs to achieve its energy goals. Therefore, policy frameworks should be enabling rather than technology-specific.

    Mains Question

    Q. Do you agree with the statement that ‘Without scaling up nuclear power, it won’t be possible to decarbonise the electricity sector.

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  • Moving Beyond Vande Bharat: Performance of Indian Railways

    Vande Bharat

    Central Idea

    • The Indian Railways has been in the news lately, with the launch of Vande Bharat trains and their successive introduction in different parts of the country. However, amid the publicity surrounding these new trains, the larger picture and serious issues confronting the Indian Railways are being overlooked. This article aims to evaluate the performance of the Indian Railways, especially in the freight and passenger sectors, and highlights the need for more relevant metrics.

    Facts for prelims: Vande Bharat Express

    Vande Bharat Express

    • Vande Bharat Express, also known as Train 18, is a semi-high-speed, fully air-conditioned train in India that runs on electric traction. It is named after the country’s national slogan “Vande Mataram” and was designed and manufactured by the Integral Coach Factory in Chennai, India.
    • The train is equipped with modern amenities such as Wi-Fi, an infotainment system, and a GPS-based passenger information system, among others.
    • It has a maximum speed of 180 km/h and is considered to be one of the fastest trains in India.
    • It is designed to be an energy-efficient and eco-friendly train, and is expected to provide a comfortable and safe travel experience to passengers.

    Performance and prospect of the Indian Railways, especially in the freight and passenger sectors

    1. Investment in Indian Railways: Since the merger of the Railway Budget with the General Budget in 2017, there has been a shift towards ramping up investments in the Indian Railways. The Annual Plan outlay for the Railways has increased from ₹1,09,935 crore in 2016-17 to ₹2,60,200 crore in the Budget for 2023-24, an increase of 137%. While this unprecedented level of investment is welcome, it must translate into concrete progress towards capacity building, and not just be limited to inputs.
    2. Freight Sector:
    • Rail share of freight traffic: The National Rail Plan 2030 (NRP) aims to raise the rail share in freight traffic vis-à-vis roadways from 27% to 45% by 2050. However, the rail share of freight carried reduced from 51.5% in 2008-09 to 32.4% in 2018-19 for leads over 300 km.
    • Commodity diversification: Almost the entire increase in volume of traffic carried by rail over the decade 2008-09 to 2018-19 has been in short lead traffic (leads up to 300 km) and 55% of the increase was through the transport of just one commodity, viz. coal. As yet, there is no evidence of higher levels of traffic being achieved concurrently with diversification of commodities carried or an increase in rail share vis-à-vis road transport.
    • Average speed of goods trains: The NRP aims to raise the average speed of goods trains to 50 kilometres per hour from the present 25 kmph, which is expected to increase efficiency and reduce transportation costs.
    • Tariff rates for freight: The NRP also calls for a concurrent reduction in tariff rates for freight by up to 30%.
    1. Passenger Sector: Punctuality is a crucial operational index for passenger trains. While published statistics of punctuality usually are above 90%, these figures are arrived at with a dose of adjustment and only the destination arrival time is considered irrespective of the fact that a train might have been off schedule en route at all the important intermediate stations. The Indian Railways should aim to be at least within five minutes (without any adjustment) of the scheduled time.

    Vande Bharat

    Facts for prelims (Conceptual): Why freight trains are switching to aluminium wagons?

    • Consume less energy and reduce carbon emissions: Aluminium trains consume less energy and the metal is recyclable. It is estimated that switching to aluminium will save 1,500 tonnes of carbon emissions a year.
    • Lighter as compared to steel: They are lighter by up to 30% compared to stainless steel coaches. These coaches, being lighter than stainless steel ones, are preferred for higher speed systems.
    • Less time to manufacture: Aluminium trains take less time to manufacture and thus can help speed up capacity for production.
    • Low haulage cost and high payload capacity: They offer low haulage cost and higher payload, better fuel efficiency and lower pollution levels.
    • Expected to improve freight transportation: The new metal trains will help the Railways hike its share in overall freight transportation from the current 18%.

     Need for an annual report

    • Report on the lines of the annual Economic Survey: Government should consider tabling an annual report on the performance of the Railways in Parliament on the lines of the annual Economic Survey prepared by the Finance Ministry ahead of the General Budget.
    • Not just for publicity pamphlet but a resource for policymakers: This report, unlike a publicity pamphlet like the Indian Railways Year Book, should be an internal performance audit that should serve as a valuable resource for policymakers, serious students and also researchers in the field of rail transport.

    Way ahead

    • International standards in punctuality: If stations in the Indian Railways network can be remodelled to international standards, perhaps it is time to aim for international standards in punctuality of trains as well.
    • Evolve an index of punctuality: It is high time to move away from the traditional concept of destination punctuality and evolve an index of punctuality that will also reflect the punctuality at select intermediate stations, at least for all mail/express trains.
    • Passenger experience: The focus should be to improve overall passenger experience, not merely statistics.
    • Other areas for assessment: There are several other areas that need critical analysis, such as financial performance, physical performance, safety, organizational/human resource issues, project execution, customer relations, and the effect of the dedicated freight corridors on the Indian Railways system capacity.

    Indian Railways

    Conclusion

    • The Indian Railways is the prime transporter and the largest public undertaking in the country, and it is crucial that its performance is evaluated using relevant metrics. While the introduction of Vande Bharat trains is a success story, it must not be the only focus. The focus should be on improving overall passenger experience and performance in the freight sector, and not merely on statistics.

    Mains Question

    Q. The consecutive introduction of Vande Bharat trains is a success story so far. In this backdrop Evaluate the performance of Indian railways and suggest measures to further improve the passenger experience.

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  • India’s sustainable jet fuel may get ASTM certified in 2023

    fuel

    Central idea

    • The Indian Institute of Petroleum (IIP) has developed sustainable aviation fuel (SAF) using home-grown technology from cooking oil and oil-bearing plants.
      • SAF is also being produced from non-petroleum-based renewable feedstocks, municipal solid waste, woody biomass, fats/greases/oils, and other feedstocks.

    About ASTM certification

    • ASTM International is an international standards organization that develops and publishes technical standards for a wide range of materials, products, systems, and services.
    • It was formerly known as the American Society for Testing and Materials and is based in the United States.
    • The organization has over 30,000 members from more than 140 countries, including scientists, engineers, and industry professionals.
    • The standards cover industries such as construction, petroleum, medical devices, and consumer products.

    SAF under ASTM Certification

    • Two of ASTM standards related to aviation fuel are ASTM D4054 and ASTM D7566.
    • ASTM D4054 sets the requirements for qualifying aviation turbine fuels.
    • ASTM D7566 sets the requirements for certifying fuels for use in commercial aviation.

    Present use of SAF

    • The Indian Air Force received provisional certification in November 2021 to use SAF on their test flights, subject to case-by-case approval by the aircraft manufacturer concerned.
    • However, it is yet to be internationally certified for use in commercial airlines in India.

    SAF production in India

    • The Mangalore Refinery and Petrochemicals Ltd is setting up the first SAF plant, which is expected to come online by early 2025.
    • However, two more SAF plants are expected to be set up by other refineries, probably by 2025-26.
    • The Mangalore Refinery can produce 20 tonnes of SAF per day, meaning about 7,000 tonnes per year.
    • However, to achieve even a per cent of blending of SAF in India, around 60,000 tonnes per year are required.

    Way forward

    • Demand for bio-jet fuel must be increased through a national policy, along the lines of the National Biofuel Policy, for it to be commercially scaled and to accelerate production.
    • A nodal agency to implement this policy should be formed to bring together energy, transportation and agriculture sectors together under one roof.
    • Mapping the sources of the various feedstock could aid this policy.

     

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  • Ambiguities in India’s Nuclear Liability Law

    nuclear

    Central idea: The article discusses how the issues regarding India’s nuclear liability law are holding up the plan to build six nuclear power reactors in Maharashtra’s Jaitapur, which is the world’s biggest nuclear power generation site under consideration at present.

    Law governing nuclear liability in India

    Ans. Civil Liability for Nuclear Damage Act (CLNDA), 2010

    Provision Description
    Purpose of CLNDA To provide a speedy compensation mechanism for victims of a nuclear accident
    Liability on operator Strict and no-fault liability on the operator of the nuclear plant, where the operator will be held liable for damage regardless of any fault on its part
    Amount of liability In case of damage caused by an accident, the operator will have to pay ₹1,500 crore
    Insurance or financial security for liability The operator is required to cover liability through insurance or other financial security
    Government liability in case of excessive claims If the damage claims exceed ₹1,500 crore, the CLNDA expects the government to step in and has limited the government liability amount to the rupee equivalent of 300 million Special Drawing Rights (SDRs) or about ₹2,100 to ₹2,300 crore

     

    The concept of Supplier Liability

    • The CLNDA introduced the concept of supplier liability in addition to operator liability in India’s civil nuclear liability law.
    • The international legal framework on civil nuclear liability, including the annex of the CSC, is based on the exclusive liability of the operator of a nuclear installation.
    • CLNDA Section 17(b) allows the operator of the nuclear plant to exercise the right of recourse against the supplier in case of a nuclear incident resulting from an act of the supplier or their employee, including the supply of defective equipment or materials.

    Why is it the issue in Nuclear Deals?

    • Undue liability: Foreign and domestic suppliers have been hesitant to enter into nuclear deals with India due to the country’s unique liability law, which allows suppliers to be held liable for damages.
    • Lack of clarity: on how much insurance needs to be set aside in case of damage claims and the potential for unlimited liability have been major concerns for suppliers.
    • Unlimited liability: Suppliers have taken issue with two specific provisions in the law – Section 17(b) and Section 46 – which expose them to liability beyond that of the operator of the nuclear plant. Section 46 potentially allows civil liability claims to be brought against both the operator and suppliers through other civil laws such as the law of tort, further exposing suppliers to unlimited amounts of liability.

    Existing projects in India

    • The Jaitapur nuclear project has been delayed for over a decade.
    • India has signed civil nuclear deals with the US, France, and Japan, but the only foreign presence in India is that of Russia in Kudankulam, which predates the nuclear liability law.
    • The government has stated that the Indian law is in line with the Convention on Supplementary Compensation (CSC).

    Government’s stand

    • The Indian law is in line with the Convention on Supplementary Compensation (CSC).
    • However, legal experts have pointed out that suppliers can be sued if defective equipment is provided or if it can be established that the damage resulted from an act of intent.
    • It would not be sound public policy if the Nuclear Power Corporation of India Limited (NPCIL) waived its right to recourse in the contract, despite the law providing for such recourse.

    Conclusion

    • The issues regarding the liability law would be resolved before French President Emmanuel Macron’s visit to India, which was first scheduled for March but has been pushed to September.

     

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  • Vibrant Villages Program to be integrated with PM Gati Shakti

    The Centre’s Vibrant Villages Programme (VVP) which aims to develop infrastructure and open up villages to tourists along the China border will be integrated with the Gati Shakti Mega Project.

    What is Vibrant Villages Programme (VVP)?

    • Under the VVP, the selected villages will be provided with basic facilities like all-weather roads, potable piped water, 24×7 electricity, good mobile and internet connectivity, healthcare, and enhanced livelihood options.
    • The VVP aims to prevent migration of border population, catalyze reverse migration, and keep all villages along the LAC well-populated from the strategic and security point of view.

    Villages selected

    • Kibithoo, one of the remotest circle headquarters of Arunachal Pradesh, is the first village to be developed under the VVP.
    • The villages will also serve as the Indian Army’s eyes and ears in these remote areas.
    • 2,967 villages in 19 border districts of Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh and Ladakh will be developed under the VVP, with 662 villages being developed in the first phase of the project.

    Components

    • The VVP programme involves a number of livelihood programmes, including bee-keeping, improving agricultural yields, encouraging handicrafts and local products, and providing market linkages to them.
    • The programme also focuses on promoting high-end tourism and training local people to cater to tourists.
    • Provision of 24×7 power through micro-hydel power plants, solar power panels, and windmills is also a vital component of the programme.

    Impact

    • The development of border villages under the VVP will help provide a better livelihood for the locals, improve the quality of life and prevent migration from these remote areas.
    • It will also help in gathering intelligence from the people of border villages and provide the Indian Army with better access to these areas.

    Comparison with China’s Model

    • India’s Vibrant Village Programme (VVP) is people-centric and aims to enhance the quality of life of the locals.
    • China’s Xiaokang villages lack proper planning for providing livelihood opportunities, healthcare and education facilities, and proper transportation.
    • Beijing’s aim of keeping civilian residents of these villages as watchful eyes over activities across the LAC and on Indian Army patrols has been negated.
    • Most of the villages now serve as residential quarters and logistical facilities for the PLA.
    • India’s VVP scores over China’s building of new Xiaokang villages as it has a holistic approach to development.

    Why merged with Gati Shakti?

    • Gati Shakti brings 16 ministries, including Railways and Roadways, together for integrated planning and coordinated implementation of infrastructure connectivity projects.
    • It allows government departments to break operational silos.
    • By integrating VVP with Gati Shakti, there can be better coordination between various ministries and departments to ensure the smooth implementation of the programme and to avoid any duplication of efforts.

     

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  • India’s first underwater transport tunnel spanning the Hooghly River

    tunnel

    Central idea: The East-West Metro corridor, the second line of Kolkata’s Metro network that is currently under construction, will connect Kolkata and Howrah, and one of its highlights is India’s first underwater transport tunnel spanning the Hooghly river.

    Hooghly River: Some facts

    Description
    Name Bhagirathi Hooghly River (Anglicized alternatively spelled Hoogli or Hugli)
    Source Close to Giria, north of Baharampur and Palashi, in Murshidabad
    Length 260 km
    Flows through West Bengal
    Endpoint Bay of Bengal
    Importance Lifeline for Kolkata, transportation route for goods and people, historical trade route, cultural and ecological resource
    Challenges Changing course, frequent floods, pollution from industrial effluents and sewage
    Additional Information A man-made canal called the Farakka Feeder Canal connects the Ganges to the Bhagirathi to bring the abundant waters of the Himalayan river to the narrow river that rises in West Bengal.

    The main course of the Ganges then flows into Bangladesh as the Padma.

    The Bhagirathi Hooghly River is also called the Ganga or the Kati-Ganga in the Puranas.

    About the East-West Corridor

    • The East-West Corridor is expected to significantly ease congestion in the city.
    • The line connects Kolkata’s IT hub of Salt Lake Sector V to the western suburb of Howrah.
    • The eastern part of the East-West line is operational while the western portion of the corridor is underground.
    • There are 12 stations on the entire route, including the country’s deepest, Howrah, at a depth of 33 meters.

    Key feature: Underwater Tunnel

    • The tunnels under the Hooghly River are 520 meters long and more than 30 meters below the river surface at its deepest point.
    • The trains will have an operational speed of 80 km/h and will cover the half-kilometre stretch under the Hooghly in about 45 seconds.
    • The underwater tunnels have an internal diameter of 5.55 meters and an external diameter of 6.1 meters.

     

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  • Windfall Tax back on local crude oil

    windfall

    The government has revised a windfall tax on domestically-produced crude oil. According to an official notification, the windfall tax rate of Rs 6,400 per tonne.

    What is a Windfall Tax?

    • Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event — for instance, the energy price-rise as a result of the Russia-Ukraine conflict.
    • These are profits that cannot be attributed to something the firm actively did, like an investment strategy or an expansion of business.
    • The US Congressional Research Service (CRS) defines a windfall as an “unearned, unanticipated gain in income through no additional effort or expense”.
    • One area where such taxes have routinely been discussed is oil markets, where price fluctuation leads to volatile or erratic profits for the industry.

    Features of Windfall Tax

    • Imposed on unanticipated and unearned gains: Windfall tax is imposed on the profits or gains that a company earns from external events or factors beyond their control, which they did not actively seek or pursue.
    • One-time tax: It is typically imposed as a one-time tax retrospectively, over and above the normal rates of tax, and is not a regular or ongoing tax.
    • Imposed on specific sectors or industries: Windfall taxes are usually imposed on specific sectors or industries where there is a significant increase in profits due to external factors such as price fluctuations, supply disruptions, or changes in regulations.
    • Rationale for imposition: The imposition of windfall taxes is based on the rationale of redistributing unexpected gains, funding social welfare schemes, and creating a supplementary revenue stream for the government.
    • Design problems: Introducing windfall taxes may suffer from design problems, given their expedient and political nature.
    • Potential impact on investment: Windfall taxes may lead to uncertainty in the market and negatively impact future investment, as companies may feel uncertain about investing in a sector with an unstable tax regime.

    When did India introduce this?

    • In July 2022, India announced a windfall tax on domestic crude oil producers who it believed were reaping the benefits of the high oil prices.
    • It also imposed an additional excise levy on diesel, petrol and air turbine fuel (ATF) exports.
    • Also, India’s case was different from other countries, as it was still importing discounted Russian oil.

    How is it levied?

    • Governments typically levy this as a one-off tax retrospectively over and above the normal rates of tax.
    • The Central government has introduced a windfall profit tax of ₹23,250 per tonne on domestic crude oil production, which was subsequently revised fortnightly four times so far.
    • The latest revision was on August 31, when it was hiked to ₹13,300 per tonne from ₹13,000.

    Reasons for re-introduction

    • There have been varying rationales for governments worldwide to introduce windfall taxes like:
    1. Redistribution of unexpected gains when high prices benefit producers at the expense of consumers,
    2. Funding social welfare schemes, and
    3. Supplementary revenue stream for the government

    Issues with imposing such taxes

    • Design problems: Windfall taxes may suffer from design problems, given their expedient and political nature. There is also the issue of determining what constitutes true windfall profits and who should be taxed, which raises questions about the threshold for exemption of smaller companies.
    • Potential impact on investment: Windfall taxes may lead to uncertainty in the market and negatively impact future investment, as companies may feel uncertain about investing in a sector with an unstable tax regime.
    • Internalization of potential taxes: Introducing a temporary windfall profit tax may reduce future investment since prospective investors may internalize the likelihood of potential taxes when making investment decisions.
    • Threshold for exemption of smaller companies: Determining the threshold for exemption of smaller companies raises questions about which companies should be taxed and what level of profit is normal or excessive.
    • Difficulty in determining true windfall profits: There is also the issue of determining what constitutes true windfall profits, as it may be challenging to differentiate between profits attributable to external events versus those attributable to a company’s active investment strategy or business expansion.

     

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  • Zojila Tunnel to revolutionise connectivity to Ladakh

    zojila

    Union Transport Minister recently visited the Zojila Tunnel In Jammu & Kashmir which is Asia’s longest as well as highest.

    About Zojila Tunnel

    • The Zojila tunnel is an upcoming 14.15 km road tunnel that will connect Srinagar and Leh in the Union Territory of Ladakh.
    • It is being constructed as part of a project to improve connectivity in the region, with a connecting tunnel from Z-Morh to the Zojila tunnel also being built.
    • The tunnel is being built at a cost of more than Rs 4,600 crore and is expected to be completed by December 2023.

    Need for the tunnel

    • All weather connectivity: The Zojila Pass is closed during harsh winters due to fears of avalanches, landslides, and slippery roads, cutting off areas beyond the pass from the rest of the country for at least five months.
    • Military mobilization: The upcoming Zojila tunnel will provide perennial connectivity between Ladakh and the rest of the country and benefit both civilians and the military.
    • Time and effort saving: The distance from Baltal to Minamarg, currently 40 km, will come down to 13 km, with travel time expected to be cut by an hour and a half.