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

  • Trans-shipment Terminal at Great Nicobar: strategic imperative and ecological concerns

    nicobar

    The Ministry of Environment, Forest and Climate Change gave environmental clearance for the ambitious Rs 72,000 crore development project on the strategically important Great Nicobar Island.

    About the Great Nicobar Development Project

    • A “greenfield city” has been proposed, including an:
    1. International Container Transhipment Terminal (ICTT),
    2. Greenfield international airport,
    3. Power plant, and
    4. Township for the personnel who will implement the project
    • The project is to be implemented in three phases over the next 30 years.

    When was the project incepted?

    • The proposal to develop Great Nicobar was first floated in the 1970s, and its importance for national security and consolidation of the Indian Ocean Region has been repeatedly underlined.

    Scope of the project

    • A total 166.1 sq km along the southeastern and southern coasts of the island have been identified for project along a coastal strip of width between 2 km and 4 km.
    • Some 130 sq km of forests have been sanctioned for diversion, and 9.64 lakh trees are likely to be felled.
    • Development activities are proposed to commence in the current financial year, and the port is expected to be commissioned by 2027–28.
    • More than 1 lakh new direct jobs and 1.5 lakh indirect jobs are likely to be created on the island over the period of development.

    Features of the Project

    • Transshipment hub of the East: The proposed port will allow Great Nicobar to participate in the regional and global maritime economy by becoming a major player in cargo transshipment.
    • Naval control: The port will be controlled by the Indian Navy, while the airport will have dual military-civilian functions and will cater to tourism as well.
    • Urban amenities: Roads, public transport, water supply and waste management facilities, and several hotels have been planned to cater to tourists.

    Why need such project?

    • Geostrategic advantage: The Island has a lot of tourism potential, but the government’s greater goal is to leverage the locational advantage of the island for economic and strategic reasons.
    • Critical shipping chokepoint: Great Nicobar is equidistant from Colombo to the southwest and Port Klang and Singapore to the southeast, the region through which a very large part of the world’s shipping trade passes.
    • Huge source of revenue: The proposed ICTT can potentially become a hub for cargo ships travelling on this route.
    • Countering Chinese presence: Increasing Chinese assertion in the Bay of Bengal and the Indo-Pacific has added great urgency to this imperative in recent years.

    Malacca Dilemma

    In recent years, China’s efforts to expand its footprint in the Indian Ocean Region to overcome its ‘Malacca Dilemma’ (China’s fear of a maritime blockade at the Straits of Malacca) and fulfil its ‘Maritime Silk Road’ ambitions have fuelled apprehensions about freedom of navigation in these waters.

    Issues with the Project

    • Ecological damage: The proposed massive infrastructure development in an ecologically important and fragile region, including the felling of almost a million trees, has alarmed many environmentalists.
    • Threats to marine ecosystem: The loss of tree cover will not only affect the flora and fauna on the island, it will also lead to increased runoff and sediment deposits in the ocean, impacting the coral reefs in the area.

    Damage control measures by the govt

    • India has successfully translocated a coral reef from the Gulf of Mannar to the Gulf of Kutch earlier.
    • The Zoological Survey of India is currently in the process of assessing how much of the reef will have to be relocated for the project.
    • The government has said that a conservation plan for the leatherback turtle is also being put in place.
    • The project site already is outside the eco-sensitive zones of Campbell Bay and Galathea National Park.

    Conclusion

    • Given its physical location, the A&N Islands are the natural platform for collaboration between India and Southeast Asia.
    • By most accounts, political will in India and other countries to develop these islands is high.

    Back2Basics: Great Nicobar Islands

    • Great Nicobar, the southernmost of the Andaman and Nicobar Islands, has an area of 910 sq km.
    • It has tropical wet evergreen forests, mountain ranges reaching almost 650 m above sea level, and coastal plains.
    • The A&N Islands are a cluster of about 836 islands in the eastern Bay of Bengal, the two groups of which are separated by the 150-km wide Ten Degree Channel.
    • The Andaman Islands lie to the north of the channel, and the Nicobar Islands to the south.
    • Indira Point on the southern tip of Great Nicobar Island is India’s southernmost point, less than 150 km from the northernmost island of the Indonesian archipelago.
    • Great Nicobar is home to two national parks, a biosphere reserve, and the Shompen and Nicobarese tribal peoples, along with ex-servicemen from Punjab, Maharashtra, and Andhra Pradesh who were settled on the island in the 1970s.

     

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  • Elephant in the Room at COP 27- Energy Equity

    COP

    Context

    • 27th Conference of Parties (COP27, beginning November 6, in Egypt) of the United Nations Framework Convention on Climate Change (UNFCCC).

    Realization of climate action: Birth of UNFCCC

    • The idea led to the formation of the United Nations Framework for Climate Change Convention (UNFCCC, also known as ‘The Convention’) in 1992, at the Earth Summit in Rio de Janeiro.
    • The convention divided the countries on the basis of their differing commitments: Annex I and II consisted of industrialized and developed countries and Non-Annex I comprised developing countries.

    COP

    Summary of COP26

    • Inadequate reduction commitment: In the runup to COP26, last year in Glasgow, several developed countries had declared their intention to reach net zero emissions by 2050. These declarations did not square with the requirements of “keeping 1.5 deg. C alive”.
    • Global carbon budget: Four fifths of the global carbon budget to limit warming to 1.5°C (with 50% probability) has already been exhausted. Developed countries are responsible for more than half of these historical CO2 emissions. Nevertheless, there was much celebration of these targets.
    • Politics over phasing out coal: There was also high drama at COP26, with moral grandstanding by many developed country negotiators who invoked the future of their children, because India and other countries understandably balked at the singling out of any one fossil fuel for immediate action.
    • Developed countries didn’t meet the commitment: It is important to recall some of these shenanigans at COP26, as in the last year, it has become clear that developed countries may be unlikely to meet even the inadequate targets they have set, keeping to the trend of the last three decades.

    What is the present energy situation in developing countries?

    • Energy poverty concentrated in the developing countries: Global energy poverty is concentrated in the developing countries. In 2021, 733 million people had no access to electricity and almost 2.6 billion people lacked access to clean fuels and technologies.
    • The average per capita energy: Energy use of the richest 20 countries is 85 times higher than that of the 20 poorest countries. Addressing this stark energy poverty in developing countries is important because there is a strong correlation between energy supply and human development.
    • The average annual per capita electricity: Electricity consumption of sub-Saharan Africa is 487 kilowatt hours (kWh), alongside an infant mortality rate of 73 per 1,000 live births; maternal mortality ratio of 534 per 1,00,000 live births, and per capita GDP of $1,645. On the other hand, the OECD group of countries have a per capita electricity consumption of 7,750 kWh, corresponding to an infant mortality rate of seven, maternal mortality ratio of 18, and per capita GDP of $42,098.
    • Slowdown due to lack of energy: The reality of global inequality was acutely evident during the COVID19 pandemic. Several countries in Africa, Asia and Latin America are facing severe agricultural and industrial slowdowns in the post pandemic period.
    • The lack of reliable energy infrastructure: Infrastructure unavailability has compounded the difficulties and has multidimensional impacts across developmental indicators. In 2022, these inequalities have been aggravated by soaring energy and food prices.
    • Rising cost of living: Several countries face a severe rise in the cost of living and nearly 70 million additional people are estimated to fall below the poverty line of $3.20 per person per day. Poor and vulnerable communities in the energy importing countries of the global South suffer the most. Almost 90 million people in Asia and Africa, who gained access to electricity recently, cannot afford to pay their energy bills.
    • No acknowledgement of problem by developed countries: In this background, COP27 affords a critical moment to acknowledge and address the concerns surrounding energy access and security in developing countries. Unfortunately, these longstanding problems of the global South have been ignored by developed country governments, academia, and civil society. At a time when the language of energy poverty and security is re-entering the northern vocabulary, it is time to call out the hypocrisy of the advice on fossil fuel use given by the north to some of the world’s poorest regions since the Paris Agreement was signed.

    COP

    How developed countries are hypocritic about energy use and commitments?

    • Fossil fuel as primary energy source: In the United States, 81% of primary energy is from fossil fuels. In Europe, fossil fuels constitute 76% of the energy consumption (coal, oil, and natural gas contribute 11%, 31%, and 34% respectively).
    • Negligible efforts for decarbonization: Thirty years after acknowledging the problem of anthropogenic global warming and committing in the UNFCCC, to take the lead in climate change mitigation, the level of decarbonization in the global North has been minuscule.
    • Increasing coal consumption: In July 2022, the European Union (EU) voted to classify the use of natural gas for some uses as “green and sustainable”. Natural gas was responsible for 7.5 billion tonnes of CO2 (i.e., 23% of the total CO2 by the major fossil fuels), in 2020. Additionally, in 2022, even coal consumption in the U.S. and the EU is estimated to increase by 3% and 7%, respectively.
    • Double standard for fossil fuel: These same developed countries argue that green energy constitutes a great business opportunity for developing countries as it has become cheaper. They have used this dubious argument to dismiss differentiation between developed and developing countries and are lobbying for banning the financing of any fossil fuel projects in some of the poorest countries.

    What should be the agenda of developing countries at COP 27?

    • Bring the energy poverty issue: At COP27, the global South must put the question of its energy poverty and the severe global inequalities in energy access squarely at the Centre of all discussions.
    • Achieving SDGs with climate actions: We need to achieve zero hunger, zero malnutrition, zero poverty, and universal wellbeing even as we collectively contribute to ensuring effective climate action.
    • No empty commitments: As the strapline for COP27 (“Together for Implementation”) suggests, we must work together to ensure that these developmental goals are not side-lined, as they were at COP26, in the pursuit of hollow declarations of net zero targets three decades into the future.

    COP

    Conclusion

    • A developing country leadership at COP27 can ensure effective discussions, based on equity and common but differentiated responsibilities and respective capabilities, on the relative responsibilities and sharing of mitigation and adaptation burdens while coping with loss and damage.

    Mains Question

    Q. Describe the energy inequality situation among developed and developing countries. How India can lead the developing countries for negotiations at COP27?

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  • In news: Kisan Rail Project

    kisan rail

    Punjab has assured Kerala Government to provide paddy straw for usage as fodder for livestock using the Kisan Rail Project.

    Why such move?

    • Kerala, being a land-stressed coastal state, does not generate enough roughage that can be used as fodder for cattle.
    • It ranks second in milk production after Punjab.
    • The move will help Punjab to deal with the excessive paddy straw which contributes to stubble burning.

    About Kisan Rail Project

    • In the Union Budget 2020-21 an announcement was made by the Union Finance Minister regarding the launch of Kisan Rail.
    • The idea behind running Kisan Rail services is to move perishables including fruits, vegetables, meat, poultry, fishery and dairy products from production or surplus regions to consumption or deficient regions.
    • The speedy rail movement would thus ensure minimum damage during transit.

    How can farmers transport their produce?

    • The farmers have to approach the Chief Parcel Supervisor of the Railway Stations from where the Kisan Rail service is scheduled to originate or to have enroute stoppage, along with their consignment.
    • Due care is taken to ensure that the packing condition is not faulty.
    • The consignment is weighed and charges are levied as per the prescribed parcel rates (P-scale).

    Salient features

    • 50 percent subsidy is given in freight for transportation of fruits and vegetables.
    • The subsidy is being borne by the Ministry of Food Processing Industries under their Operation Greens – TOP to Total scheme.
    • There is no minimum limit on quantity that can be booked, enabling small famers to reach bigger and distant markets.
    • Kisan Rails are based on the concept of multi commodity, multi consignor, multi consignee and multi stoppages – to help small farmers with lesser produce to transport their consignment without any middleman.

    Need for such scheme

    • Farmers, especially small and marginal farmers, often find it difficult to sell their produce in markets beyond a certain distance.
    • This is primarily due to factors such as non-availability of affordable transport, delay in transit resulting in damage/decay to produce, and unwillingness of road transporters to carry small sized consignments.

    Benefits provided

    • Access to markets: Vast network of Indian Railways enables farmers from remote villages to connect to the mainstream market and sell their agricultural produce.
    • Helps prevent food wastage: It saves times and encourages farmers to transport their perishables to greater distances and bigger markets.
    • Getting better deal for farmers: Kisan Rail is a factor enabling improvement in terms of trade for farmers and the real returns received by farmers for their produce.
    • Doubling farmers’ income: Access to such markets will enable farmers to sell their produce at a better price, which will go a long way in fulfilling Government’s vision of ‘doubling farmers’ income.’

     

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  • Vande Bharat: Modern trains need modern infrastructure

    Vande Bharat

    Context

    • When the Prime Minister inaugurated the latest edition of the Vande Bharat train recently, India made a huge leap into the future of mass transportation. The new Vande Bharat Express trains or Vande Bharat 2.0 are expected to usher in an era of faster, safer and more comfortable rail travel for passengers.

    All you need to know about Vande Bharat

    • The Vande Bharat Express is a semi-high-speed, electric multiple unit train previously known as Train 18
    • It is designed, built by the Integral Coach Factory (ICF) under the Make in India Initiative
    • Vande bharat running on 5 routes as of November 2022.
    • The first Vande Bharat Express train was flagged off on February 15, 2019, on the New Delhi-Kanpur-Allahabad-Varanasi route.
    • All the coaches are equipped with automatic doors, GPS-based audio-visual passenger information system, onboard hotspot Wi-Fi for entertainment purposes, and comfortable seats.
    • Vande bharat running on 5 routes as of November 2022.
    • Indian Railways hopes to roll out another 25 Vande Bharat train sets by the end of March 2023.
    • Railways plans to roll out 75 Vande Bharat trains by Independence Day next year

    What is Vande Bharat 2.0?

    • The name may be the same, but this train, the third in the Vande Bharat series, is being dubbed ‘Vande Bharat 2.0’, because of certain upgrades it has received over its predecessors.

    Vande Bharat

    What are the notable upgrades and newly added features in 2.0?

    • Faster and lighter than the previous: This train reaches a top speed of 160 km per hour in 129 seconds, around 16 seconds faster than its predecessor. This is because this train weighs around 392 tonnes, 38 tonnes lighter than the last one, and needs to run almost a km less to attain its top speed.
    • Improved on Riding Index: It also has a better riding index (lower the better) of 3.26 at 180 km per hour, from the earlier 3.87. At a standard speed of 115 km per, its riding index is 3.26, better than 3.62 attained at the same speed by the earlier. In layman’s terms, Riding index is a global benchmark to calculate how comfortable and steady the passenger is while the train is in motion.
    • Fitted with automatic anti-collision system “Kavach”: In terms of safety features, the new train comes fitted with the automatic anti-collision system Kavach, which the previous trains did not have.
    • Improved on safety features: Coaches have disaster lights and their battery backup increased from the last one’s one-hour battery backup. The exterior has eight flatform-side cameras, up from four.
    • Passenger communication facility: There is a passenger-guard communication facility in coaches, which comes with automatic voice recording feature.
    • Making it flood resilient: The new trainset is higher, making it safe from floods up to 650 mm, up from 400 mm.
    • Better quality streaming of audio-visual information with improved network: A centralised coach monitoring system, another new addition, through CCTV cameras, and the internal network supports data at 1 gigabyte per second, This means better quality streaming of audio-visual information.
    • Air purification system: The internal air is filtered through photo catalytic ultra violet air purification system with UV lamp which deactivates 99 per cent of germs, the Railways claims something the earlier trainsets did not have.
    • Onboard infotainment: It also has a wifi-enabled onboard infotainment system and the LCD display in each coach is now 32 inches, up from the 24-inch screen.

    Vande Bharat

    Challenges to the modern railway infrastructure

    • Tracks are not in sync with the modern age trains: This new-age train slammed head-on into the “old-age” country on at least two occasions in its very first week. The train crashed into a herd of cows, damaging the aircraft-like nose of the driver coach car.
    • Poor fencing along the tracks: The railways built a new-age train but forgot to construct fencing along the tracks to prevent bovine collisions.
    • Issues with the battery charging units: Occasional Failure in the battery charging mechanism due to a fault in the charging cable as well as tripping of a circuit breaker needs to addressed.
    • Technical glitches in the alerting software system: Failure to alert the technical glitches in the functioning of the system creating problems and adding up to malfunctioning.

    Conclusion

    • A senior railway official proudly detailed the “superior” features of the Vande Bharat train, which would provide passengers with an “aircraft-like travelling experience” albeit, even quieter than an aircraft, also testified by the Prime Minister But these superior features need superior and resilient infrastructure to achieve the target.

  • Unscientific Highway Infrastructure: A Cause of Accidents

    Highway

    Context

    • In a March 2019 circular, the National Highways Authority of India (NHAI) raised the subject of premature issuance of completion certificates for national highway works. NHAI had noticed that, in certain cases, completion certificates had been issued even before the completion of works ‘up to the standards and specifications’ prescribed by the Ministry of Road Transport & Highways.

    Highway

    Status of National highways and deaths

    • 35 percent of all road deaths: NHAI is the principal organization responsible for construction of National Highways in India. National highways constitute a mere 2 percent of the country’s road network, but account for close to 35 percent of all road deaths.
    • Record 37 kms per day: The ministry has been taking credit for the pace at which national highways are being constructed. In the fiscal year 2021, it reached a record 37 kms per day. This has come down to 19.44 km per day in the first six months of the financial year 2022.

    What was the circular issued by NHAI?

    • Issuance of completion certificate: The circular forbade the issuance of such certificates, especially if non-completion resulted in ‘material inconveniences to users’ or affected their safety.
    • Likely cause of fatalities: Items such as road shoulders, road signs, markings, dressing of slopes, and road furniture were explicitly mentioned. circular was not taken with due seriousness by some authorized engineers. This negligence could have contributed to road crashes, probably resulting in fatalities.
    • Dereliction of duty by NHAI’s officials: The NHAI has now warned the delinquents that such behavior would be treated as a serious dereliction of duty and disciplinary action would be taken against officers issuing such certificates to incomplete road works. Additionally, the officers would be held personally liable in case of serious accidents that occur on such unfinished infrastructure.
    • Safety is better than pace of construction: The Minister for Road Transport & Highways stressed that it is necessary to build safer roads even if this decelerated the pace of construction.

    Highway

    Case study of NHAI’s road construction?

    • Death of Cyrus Mistry: Unfortunately, self-introspection by the NHAI in regard to safety failures and the large number of deaths on national highways was not in evidence in the aftermath of the death of Cyrus Mistry on the Ahmedabad-Mumbai national highway in September 2022.
    • Crash was result of poor infrastructure: In this instance, a seven-member forensic investigation team found that the car crash was the result of an infrastructure issue. The car in which Mistry was travelling happened to tragically hit a bridge that was faultily designed.
    • Invisible dividers: The bridge parapet was found to be protruding into the shoulder lane. Furthermore, the road with three lanes unexpectedly narrowed to a road with two lanes with a dangerous L-shaped concrete divider that had no proper paint on it.
    • Inadequate safety signs: Road signages were grossly inadequate, making that road stretch a ‘black spot’. This epithet is used for a road section where accidents are a frequent occurrence.
    • Expressways are constructed for more speed: The accident also raised issues of the excessive speed of the car that crashed. It was said that the car was travelling at a speed in excess of 100 km per hour. However, the minister himself has been in favour of higher speeds on Indian expressways and national highways. He proposed a speed limit of 140 kmph on expressways and at least 100 kmph on four-lane national highways. This, he stated, was advocated on account of considerable improvements in the quality of India’s highways that permit vehicles to go faster than in the past.
    • Speed limit safety needs to be revise: The minister was also critical of some judicial rulings that disallowed hiking speeds on national highways. However, in the light of certain facts repeatedly surfacing in regard to safety issues of national highways, it does appear that greater caution in regard to increasing speed needs to be taken.

    Critical analysis of NHAI’s road construction and maintenance

    • Rains and potholes: While the government claims that they are of international standard, a recent report highlighted the plight of road travelers on national highways post India’s monsoons. The rains have left the country’s arterial network in poor shape as they have become riddled with potholes.
    • Higher toll but poor roads: The cited report mentioned the Gurgaon-Jaipur stretch of NH-8, which, despite a hike in toll rates, remains incomplete and terribly potholed. The reason for this sorry state of affairs was revealed in a reply by the government to a parliamentary standing committee.
    • Insufficient maintenance: The budgetary provision for maintenance of national highways was a mere 40 percent of their own estimated standards. Clearly, maintenance of national highways was being discounted in favour of more kilometres of road construction. The shortfall of 60 percent of maintenance money was terribly high and resulted in the resources being thinly spread, making adequate maintenance intervention highly unlikely.
    • Inadequate budgetary allocation: The parliamentary committee pointed out in its report titled ‘Issues related to road sector’ that the shortfall in sufficient budgetary allocation was echoed in the poor quality of national highways often witnessed across the country. The committee emphasized that the maintenance of national highways was vitally significant in regard to safety and good average traffic speeds and ought to be given high priority. The issue had been repeatedly flagged by the committee.
    • NITI Aayog’s acknowledgement of poor infrastructure: Similarly, NITI Aayog, in its report titled ‘Strategy for New India @75’, advised that the government should earmark 10 percent of its annual budget for maintenance of roads and highways and move towards the developed country norm of marking 40 percent of the budget for road upkeep. It is evident that if national highways are not in shape, the economy of the country and the states takes a hit.

    Highway

    Conclusion

    • It is absolutely necessary for citizens to follow road safety norms but government cannot look away from its responsibility. Scientific road construction even at the cost of slow construction rate is non-negotiable for sake of accident prevention. Safety of citizens is prior to any world record.

  • Revitalizing India’s Spectrum Policy

    Spectrum

    Context

    • It is widely acknowledged that spectrum policy in India has had ups and downs, regretfully more downs than ups. Despite the recognized failure, India hosts 800 million internet users and host the second-largest telecommunications network in the world. We wonder what might have been achieved with a more reasonable and transparent spectrum policy.

    Background

    • On September 22, the government released the draft Indian Telecommunication Bill, 2022 seeking to replace the colonial era Indian Telegraph Act, 1885.
    • The draft bill compares spectrum to aatma: “In a way, spectrum is similar to aatma, like aatma, spectrum too does not have any physical form, yet it is omnipresent.” And yet there is one immutable difference in this material world. While the value of aatma is inestimable, spectrum has always had a banal price tag associated with it.

    Spectrum

    What is Draft Indian Telecommunication Bill, 2022?

    • The draft Indian Telecommunication Bill, 2022 is an attempt by the Department of Telecommunications (DoT) to consolidate various legislations presently governing the telecommunication landscape in India.
    • The Bill seeks to replace three laws, the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession) Act, 1950.
    • The new regulatory framework is to bring the law at par with technological advancements and remove obsolete provisions from the colonial era laws.

    What is mean by Spectrum?

    • In physics, it’s a word that describes the distribution of something, like energy or atomic particles
    • Spectrum refers to the invisible radio frequencies that wireless signals travel over. Devices such as cell phones and wireline telephones require signals to connect from one end to another.
    • These signals are carried on airwaves, which must be sent at designated frequencies to avoid any kind of interference. The frequencies we use for wireless are only a portion of what is called the electromagnetic spectrum.
    • The Union government owns all the publicly available assets within the geographical boundaries of the country, which also include airwaves.
    • With the expansion in the number of cell phones, wireline telephone and internet users, the need to provide more space for the signals arise from time to time.

    The status of Spectrum policy in India?

    • Host the second largest telecommunications network despite of failures:
    • It is widely acknowledged that spectrum policy in India has had ups and downs, it has for the most part failed to capitalize on the ubiquity of the electromagnetic spectrum to provide meaningful connectivity to all citizens.
    • Despite the recognized failure, we boast of a billion plus mobile subscribers, 800 million internet users and host the second-largest telecommunications network in the world.
    • Ineffective access widening space of digital divide:
    • The intent of the draft bill is to correct past sins so that the benefits of spectrum and technology are better shared, and the quality of access improved for everybody.
    • In other words, since effective access to spectrum has remained a significant barrier to facilitating meaningful connectivity for Indians.
    • Spectrum’s potential is huge but with technical limitations:
    • The draft bill rightly refers to the spectrum as having the characteristics of a public good. It is also an inexhaustible resource. But while spectrum per se is not depletable, there are technical limitations to its optimum utilization at a given point in time.
    • Consequently, it is viewed as a scarce natural resource and what’s more, expensive auctions have made the spectrum dear and arguably exclusionary.
    • High cost of spectrum acquisition:
    • Since 2010, the government has consistently used auctions for spectrum allocation and in only one of the seven auctions held since then, the government was successful in selling 100 per cent of the available spectrum. One reason for this lukewarm response, barring the 2010 auction, is the high cost of spectrum acquisition.
    • High cost of auctions leading to revenue loss for the government:
    • Due to the high reserve price, the most recent auction witnessed spectrum being sold at the reserve price, effectively rendering the basis of an auction moot.
    • If almost all spectrum was sold at its reserve price, and a significant amount goes unsold, it implies that the price was too high, to begin with. It also implies a loss of revenue for the government for spectrum unsold is spectrum squandered.
    • Finally, it results in areas being underserved or unserved affecting quality and quantity.
    • High network charges by operators impacts compromising equal distribution and quality:
    • According to one estimate, at 7.6 per cent of their aggregate revenue, spectrum cost in India is amongst the most expensive in the world.
    • Since network operators incur a significantly higher cost for spectrum compared to other emerging markets, the ability to invest in network upgradation and infrastructure is severely impacted, resulting in uneven distribution of service and poor quality to boot.

    Spectrum

    What Could be the fresh approach?

    • Acknowledging and addressing the issues:
    • It must be recognized that the spectrum needs to be combined with other infrastructure to enable service delivery.
    • The cost of deploying other infrastructure in remote areas is nearly twice as much, while revenue opportunities are far lower, damaging if not destroying the prospects of rural businesses. Plugging the digital divide, therefore, needs a fresh approach.
    • Correcting the cost of spectrum and boosting investment:
    • Since licences and spectrum are typically assigned for service areas that are, for the most part, identified by state boundaries.
    • Since operators predominantly cater to urban markets, the spectrum in remote areas remains under- or in places un-utilized due to a lack of investment in allied infrastructure.
    • Reviving the old and executing the fresh provisions enshrined in draft bill for equitable sharing:
    • The draft bill incorporates practical provisions on the spectrum such as use it, share it, or lose it – an awaited policy that, however, needs innovative support to be successful. The idea of “niche operators” providing services including to telecom operators and manufacturers, introduced in 2005, needs revival in this regard.
    • If licensed operators are unable to utilise the assigned spectrum, the same could be given to local entrepreneurs who understand the needs of rural customers and are better placed to develop a more effective business case more quickly than the larger telcos. Active promotion of the idea of niche operators might just jolt operators out of their lethargy towards rural services.
    • Adopting innovative methods:
    • Alternatively, the government may explore innovative methods of spectrum access such as a non-competitive licensing framework for certain specific use cases.
    • Canada, for instance, has initiated consultations on a non-competitive local licensing framework in the 3900-3980 MHz Band and portions of the 26, 28 and 38 GHz bands to inter alia facilitate broadband connectivity in rural areas.
    • Emphasizing on Transparency and enhancing healthy competition:
    • The government should build an ecosystem that inspires trust so that transparency in assignment can be secured at a reasonable price for operators with strict service obligations without the phantasm of auctions.
    • At the same time, there should be no unsold spectrum. Niche operators should be invoked to engender competition, and government could yet collect revenue for itself.

    Spectrum

    Conclusion

    • The telecom is no longer an end in itself. It exists for user industries much more than ever before. The spill over benefits are far greater than what the sector commands within. Thus, to state the obvious, the vision that is “Digital India” can never be realized if affordable broadband connectivity remains only within the reach of a few.

  • EV firms divided over Battery-Swapping Policy

    battery

    Battery Swapping could only be leveraged up to a certain limit and was not a complete solution to push electric vehicle (EV) adoption says some auto industry.

    What is Battery Swapping?

    • Battery swapping is a mechanism that involves exchanging discharged batteries for charged ones.
    • This provides the flexibility to charge these batteries separately by de-linking charging and battery usage, and keeps the vehicle in operational mode with negligible downtime.
    • Battery swapping is generally used for smaller vehicles such as two-wheelers and three-wheelers with smaller batteries that are easier to swap, compared to four-wheelers and e-buses, although solutions are emerging for these larger segments as well.

    What is BaaS?

    • Battery-as-a-service (BaaS) is seen as a viable charging alternative.
    • Manufacturers can sell EVs in two forms: Vehicles with fixed or removable batteries and vehicles with batteries on lease.
    • If you buy an electric scooter with battery leasing, you do not pay for the cost of the battery—that makes the initial acquisition almost 40% cheaper.
    • Users can swap drained batteries for a fully charged one at a swap station. The depleted batteries are then charged on or off-site.
    • The advantages of swapping include low downtimes for commercial fleets, reduced space requirements, and lower upfront costs.
    • It is also a viable solution for those who don’t have parking spots at home.

    Draft Battery Swapping Policy 2021: Key Proposals

    • Rationalizing taxes on battery: The draft policy has suggested that the GST Council consider reducing the differential across the tax rates on Lithium-ion batteries and electric vehicle supply equipment. Currently, the tax rate on the former is 18 per cent, and 5 per cent on the latter.
    • Incentivization for swapping enabled vehicles: The policy also proposes to offer the same incentives available to electric vehicles that come pre-equipped with a fixed battery to electric vehicles with swappable batteries. The size of the incentive could be determined based on the kWh (kilowatt hour) rating of the battery and compatible EV.
    • Terms of contracts for battery providers: The government will specify a minimum contract duration for a contract to be signed between EV users and battery providers to ensure they continue to provide battery swapping services after receiving the subsidy.
    • Public battery charging stations: The policy also requires state governments to ensure public battery charging stations are eligible for EV power connections with concessional tariffs. It also proposes to install battery swapping stations at several locations like retail fuel outlets, public parking areas, malls, kirana shops and general stores etc.
    • Tariff rationalization: It also proposes to bring such stations under existing or future time-of-day (ToD) tariff regimes, so that the swappable batteries can be charged during off-peak periods when electricity tariffs are low.
    • Registration ease: Transport Departments and State Transport Authorities will be responsible for easing registration processes for vehicles sold without batteries or for vehicles with battery swapping functionality.
    • Unique identification number (UIN): The policy also proposes to assign a UIN to swappable batteries at the manufacturing stage to help track and monitor them. Similarly, a UIN number will be assigned to each battery swapping station.
    • Locations: The NITI Aayog has proposed that all metropolitan cities with a population of more than 40 lakh will be prioritized for the development of battery swapping networks under the first phase, which is within 1-2 years of the draft policy getting finalized.

    Why hasn’t BaaS taken off yet?

    • Hefty taxes: There are economic and operational constraints. Energy service providers offering swapping solutions have to charge 18% goods and services tax (GST) for swapping, compared to 5% GST on the purchase of an EV.
    • No incentives yet: Additionally, the government’s FAME-II incentives are not offered to vehicles sold with BaaS or swap station operators.
    • Lack of interoperability infrastructure: While these are economic disadvantages compared to direct charging solutions, the lack of a dense and interoperable battery swap infrastructure has also hindered the roll-out.

    Issues highlighted by industry

    • Swapping will require a great deal of battery standardisation which may reduce innovation and would curb investments.
    • Other concerns include accountability for a sub-optimal battery brought in to a swapping station or if it caught fire.
    • Battery swapping has reduced initial investments by EV owners.

    Issues with BaaS

    • Standardization of specifications: There is a need for standardization of safety specifications as well as the battery.
    • Safety hazard: Swapping in the various permutations and combinations of batteries at a station where they have not been tested for compatibility could lead to safety hazards.
    • Non-competitive nature: Also, mandating only one type of battery to  be eligible for  concessions  would be  disadvantageous  to  many  players.

    Significance of battery swapping

    • High Cost of EVs: An EV, by industry standards, is 1.5-2x costlier than IC Engine counterpart and at least half the cost is from the battery pack.
    • Cost reduction: Many manufacturers are offering batteries separately from a vehicle, reducing the cost. In that case, a fleet owner can buy vehicles without battery and utilize battery swapping.
    • Range Anxiety: Another major reason stopping people from buying EVs is range anxiety, or in simple terms, the fear of battery getting empty without finding a charging station.
    • Inadequate charging infrastructure: Unlike petrol pumps, EV charging stations are rare to spot and that further increases the range anxiety exponentially, especially while going on a road trip.
    • Hazard management: In case of a Swapping Station, one can simply locate a station, go and replace the empty battery with a new one.

     

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  • Why freight trains are switching to aluminium wagons?

    aluminium

    The Union Railway Minister has recently flagged off the country’s first freight train with an all-aluminium wagon rake.

    What is the news?

    • This move is a part of the country’s ambitious plan to modernize rail transportation and facilitate large carbon savings.

    Aluminium-bodied trains

    • Indian Railways proposes to shift its passenger and freight operations gradually to aluminium-bodied trains.
    • A blueprint for its production and introduction was finalized even before the onset of the covid-19 pandemic.
    • The Modern Coach Factory (MCF) at Rae Bareli has signed a transfer of technology contract with South Korea’s Dawonsys for such passenger coaches in early 2020.
    • The execution of the project was held back because of the pandemic and its fallout.
    • These coaches will be rolled out now.

    What is the plan for their introduction?

    • At present, India’s high-speed trains, including the Rajdhanis and the Shatabdis, use Linke Hofmann Busch (LHB) coaches that are made of stainless steel.
    • Only the interiors use aluminium, which makes them lighter as compared to conventional rakes.
    • The Indian Railways plans to procure 400 new generation Vande Bharat train sets with better energy efficiency and passenger riding experience.
    • The use of aluminium body coaches in these new generation trains will be considered.

    Will aluminium trains reduce carbon footprint?

    • Aluminium trains consume less energy.
    • Besides, the metal is recyclable.
    • It is estimated that switching to aluminium will save 1,500 tonnes of carbon emissions a year.
    • With the Railways planning to deploy over 100,000 wagons in the coming years, the potential annual CO2 reduction could be to the tune of over 5 million tonnes with a 15-20% shift to aluminium wagons.

    Material advantages of aluminium

    • These coaches, being lighter than stainless steel ones, are preferred for higher speed systems.
    • They are lighter by up to 30% compared to stainless steel coaches.
    • They offer low haulage cost and higher payload, better fuel efficiency and lower pollution levels.
    • Also, aluminium trains take less time to manufacture and thus can help speed up capacity for production.
    • The new metal trains will help the Railways hike its share in overall freight transportation from the current 18%.

    What about the cost of building?

    • An all-aluminium passenger coach and wagon system would raise the cost of manufacturing rolling stocks by about 35% since the price of aluminium, globally, is far higher than that of steel.
    • However, the advantages of the metal outscore its high price. It is estimated that as the metal is recyclable, the new coaches would have up to 80% resale value.
    • The recyclability will also help in times of global volatility in metal prices.
    • This is why aluminium trains command a lion’s share in the US, Europe and Japan.

     

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  • Promise and perils of Flex Fuel Vehicles

    flex

    The auto sector is testing many new technologies to reduce carbon emissions. Flex fuel is one technology that has gained currency.

    What are Flex Fuel Vehicles?

    • Like traditional vehicles, flex fuel vehicles have an internal combustion engine, but instead of regular petrol, it can run on blended fuel—petrol with ethanol or methanol.
    • The ethanol mix can vary between 20% and 85%.
    • The vehicle has additional sensors and different programming of the engine control module to assess the blend of the fuel and adjust accordingly.
    • Unlike electric hybrid vehicles, no bulky parts need to be added to the basic gasoline vehicle architecture.
    • Upgrading existing vehicles to run on high blend of ethanol fuel, however, is possible but expensive and not considered feasible.

    Are they better than traditional vehicles?

    • Flex fuel vehicles are seen as a one-shot solution for multiple problems—pollution, oil import bill and glut in sugar production.
    • According to the US department of energy, they have lower overall greenhouse gas emissions, between 40-108%, depending on the feedstock used to produce them.
    • It could also help bring down India’s crude oil import bill.
    • Further, India also suffers from a glut in sugar production of 6 million tonnes and in sugar season 2020-21, about 2.4 million tonne was diverted to produce 302 litres of ethanol for blending.
    • India has set a target of 20% blending rate for 2025.

    Is there a catch in flex-fuel technology?

    • There is unlikely to be any direct benefit to the consumer.
    • Though ethanol costs much lower than petrol at ₹47-64/ltr depending on the sugarcane source, oil marketing companies are expected to pocket the cost differential.
    • It is also controlled by the government. So, chances of frequent revision are high.
    • On the contrary, the fuel economy is likely to fall by 4-8%.

    What are the challenges?

    flex

    • For mass adoption, an adequate supply of different types of ethanol blends is needed across the country.
    • This would have to be in addition to the existing network as current vehicles on the road would have to be supplied with fuel that has only 10% ethanol blending.
    • This means significant investment in infra by oil firms.
    • At the same time, a constant supply of ethanol would have to be ensured.
    • Since this largely comes from sugarcane in India, which is a water-guzzling crop, any drought could have an impact on blending rates.

    How do they fit in with carbon neutrality?

    • With electrification already on the horizon, flex fuel vehicles are seen as a stop-gap arrangement.
    • The benefit for the environment is less as compared to battery EVs or hydrogen fuel cell vehicles of the future.
    • With much lower cost of running, they also offer better economy for consumers.
    • The Toyota pilot project notwithstanding, there is also resistance from the industry.
    • They want to prioritize investments and not get stretched thin between hybrid and battery electric, fuel cell and flex fuel technologies.

     

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  • NOPEC: the US bill to pressure the OPEC+ oil group

    nopec

    US legislation NOPEC which could open members of oil producing group OPEC+ to antitrust lawsuits has emerged as a possible tool to tackle high fuel prices.

    What is NOPEC?

    • NOPEC stands for No Oil Producing and Exporting Cartels (NOPEC).
    • It is a bill to protect US consumers and businesses from engineered oil spikes.
    • But some analysts warn that implementing it could also have some dangerous unintended consequences.

    Why such a move by the US?

    • OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, agreed to steep production cuts, curbing supply in an already tight market.
    • After the decision, the US decided to reduce the group’s control over energy prices.

    Key feature of the NOPEC bill

    • The bipartisan NOPEC bill would tweak US antitrust law to revoke the sovereign immunity that has protected OPEC+ members and their national oil companies from lawsuits.
    • If signed into law, the US attorney general would gain the option to sue the oil cartel or its members, such as Saudi Arabia, in federal court.
    • It is unclear exactly how a federal court could enforce judicial antitrust decisions against a foreign nation.

    Is such bill effective?

    • Previous versions of the NOPEC bill have failed amid resistance by oil industry groups, including the top US oil lobby groups.
    • Saudi Arabia has rebuffed repeated lobbying during visits by Biden officials not to cut production.
    • Instead, OPEC+ has agreed to cut output by the most since the start of the COVID-19 pandemic.

    Implications of NOPEC

    • NOPEC more or less is a knee-jerk reaction from the US against oil hegemony of the OPEC+.
    • If passed into law, it could lead to unintended blowback.
    • In 2019, for example, Saudi Arabia threatened to sell its oil in currencies other than the dollar if Washington passed a version of the NOPEC bill.
    • There is a possibility that other countries could take similar action on the US for withholding agricultural output to support domestic farming, for example.

     

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