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

  • How uniform power cost and electricity duty can achieve higher growth

    Context

    Electricity prices vary not just among end users, but also between states, where a complex patchwork of different taxes and subsidy regimes can leave consumers in some states paying five times more for their electricity than their counterparts in neighbouring states.

    Deprivations faced by Low Income States in India

    • The low-income States (LIS) are deprived on many fronts.
    • They have low accessibility to credit, low investments, low power availability and accessibility, and high energy costs.
    • The high-income States (HIS), on the other hand, have a big share in industry and commerce because they are not deprived on the same fronts.
    • The six HIS (Maharashtra, Tamil Nadu, Gujarat, Karnataka, Andhra Pradesh and Telangana) together account for 56.4% of factories and 54.3% of the net value added to the country, while their share in population is only 32.3%.
    • Among other reasons, this is because they have higher credit and financial accessibility (55% of total institutional credit and 56% of total industrial credit went to these five HIS) at the credit-deposit ratio.
    • On the other hand, the six LIS (Bihar, Jharkhand, U.P., M.P., Odisha, and Rajasthan) access only 15% of total institutional credit and barely 5% of total industrial credit, while their share in population is 43%.
    • The maximum benefit of the Atmanirbhar package (₹20 lakh crore) also went to the HIS as they have a higher share in industry.

    Role of power supply in disparity among states

    • Among other reasons, the availability of adequate quality power at the cheapest rate attracts investments, either private or public, in a particular location.
    • Due to a complex patchwork of different taxes and subsidy regimes, electricity prices vary not just among end users, but also between states.
    • This can leave consumers in some states paying five times more for their electricity than their counterparts in neighbouring states.

    Solutions

    •  Energy India Outlook 2021 provides two solutions.

    1] Eliminate price discrimination by synchronising all regional grids

    • The power-producing States have the advantage of power,  being available at lower prices.
    • This problem can be addressed by synchronising all the regional grids.
    •  This will help the transfer of energy (without compromising quality).
    • The idea is of ‘One Nation, One Grid, One Frequency’.
    • Further, this will pave the way for establishing a vibrant electricity market and facilitate the trading of power across regions through the adoption of the ‘one tariff’ policy.
    • The Central Electricity Regulatory Commission is in the process of implementing a framework of the Market-Based Economic Dispatch and moving towards ‘One Nation, One Grid, One Frequency, One Price’.

    2] Include electricity duty in GST

    • Apart from uniform cost, the power sector also needs uniformity in electricity duty charged by different States.
    • In general, the association between income and electricity consumption is direct.
    • Thus, only 32% of the population used 50% of power.
    • Contrary to this, six backward States got only 25% of the power though their share of the population is 43%.
    • Therefore, it is clear that the substantial proportion of the power cost incurred in HIS is also borne by the LIS which buy those industrial products, as the input cost of power has already been included in the product’s price.
    •  Further, this situation justifies the fact that the final costs of power consumption are also borne by other States.
    • Thus, the electricity duty should be redistributed among the States under the ambit of GST equally shared by the CGST and SGST.

    Conclusion

    In order to attain higher economic growth, the States should raise the issue of uniform energy tariff and inclusion of electricity duty under the ambit of GST.

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  • Kerala plans to replace Mullaperiyar Dam

    Kerala plans to build a new dam to replace the 126-year-old Mullaperiyar dam in the Idukki district.

    Mullaperiyar Dam

    • It is a masonry gravity dam on the Periyar River in Kerala.
    • It is located on the Cardamom Hills of the Western Ghats in Thekkady, Idukki District.
    • It was constructed between 1887 and 1895 by John Pennycuick and also reached in an agreement to divert water eastwards to the Madras Presidency area.
    • It has a height of 53.6 m (176 ft) from the foundation, and a length of 365.7 m (1,200 ft).

    Operational issue

    • The dam is located in Kerala but is operated and maintained by Tamil Nadu.
    • The catchment area of the Mullaperiyar Dam itself lies entirely in Kerala and thus not an inter-State river.
    • In November 2014, the water level hit 142 feet for first time in 35 years.
    • The reservoir again hit the maximum limit of 142 feet in August 2018, following incessant rains in the state of Kerala.
    • Indeed, the tendency to store water to almost the full level of reservoirs is becoming a norm among water managers across States.

    The dispute: Control and safety of the dam

    • Supreme court judgment came in February 2006, has allowed Tamil Nadu to raise the level of the dam to 152 ft (46 m) after strengthening it.
    • Responding to it, the Mullaperiyar dam was declared an ‘endangered’ scheduled dam by the Kerala Government under the disputed Kerala Irrigation and Water Conservation (Amendment) Act, 2006.
    • For Tamil Nadu, the Mullaperiyar dam and the diverted Periyar waters act as a lifeline for Theni, Madurai, Sivaganga, Dindigul and Ramnad districts.
    • Tamil Nadu has insisted on exercising the unfettered colonial rights to control the dam and its waters, based on the 1886 lease agreement.

    Rule of Curve issue

    • A rule curve or rule level specifies the storage or empty space to be maintained in a reservoir during different times of the year.
    • It decides the fluctuating storage levels in a reservoir.
    • The gate opening schedule of a dam is based on the rule curve. It is part of the “core safety” mechanism in a dam.
    • The TN government often blames Kerala for delaying the finalization of the rule curve.

     

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  • Renewable Purchase Obligations (RPO).

    Telangana CM in harsh words has criticized the Prime Minister over Renewable Purchase Obligations (RPO).

    Why such a gesture by Telangana CM?

    • Telangana has been particularly vocal about the “increasing burden” forced upon states by the Centre on account of the clean energy cess imposed on coal and the RPOs (Renewable Purchase Obligation).

    What are RPOs?

    • Renewable Energy Certificates (REC) is a policy instrument to catalyze the development of renewable energy.
    • It is a market-based mechanism that will help the states meet their regulatory requirements (such as RPOs) by overcoming the geographical constraints on existing renewable potential in different states.
    • Under RPO, power distribution companies purchase a certain percentage of their requirements from renewable energy sources.

    REC Mechanism

    • REC mechanism is a market-based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO).
    • It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the RPO.
    • 1 REC is treated as equivalent to 1 MWh.

    How many types of RECs are there?

    There are two categories of RECs, viz., solar RECs and non-solar RECs.

    1. Solar RECs are issued to eligible entities for the generation of electricity based on solar as a renewable energy source.
    2. Non-solar RECs are issued to eligible entities for the generation of electricity based on renewable energy sources other than solar.

    Issues highlighted by Telangana

    • Mandatory purchase: The CM has raised the issue of mandatory purchase of renewables reducing the Plant Load Factor (PLF) for existing thermal power projects.
    • Only solar RPO: The CM questioned the mandate to procure a certain percentage of power from solar energy noting that Telangana had hydropower projects producing over 2,500 MW of power from rivers.
    • Not all states have ample renewables: States have thus far not been able to meet RPO targets, with over a dozen states and UTs achieving less than 60% of RPOs.
    • Penalty for non-compliance: There is a (small) penalty for not meeting RPO obligations. The Centre has proposed to increase penalties on states for non-compliance with RPOs in the draft electricity amendment bill.

    Clarification from the centre

    • States were free to hold their own bids and buy green energy from any developer instead of procuring power based on bids by the SECI.
    • They can choose to have their own bids.

     

     

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  • Revamped Distribution Sector Reform Scheme (RDSS)

    Context

    Launched in July 2021, the Revamped Distribution Sector Reform Scheme (RDSS) is the latest of many central government grant-based programmes towards electricity distribution network investments.

     RDSS overview

    • Revamped Distribution Sector Reform Scheme (RDSS) has an outlay of Rs 3 lakh crore for five years.
    • Half of the outlay is for better feeder and transformer metering and pre-paid smart consumer metering.
    • The remaining half, 60 percent of which will be funded by central government grants, will be spent on power loss reduction and strengthening networks.
    • RDSS stipulates universal pre-paid metering but post-paid options may be suitable in many contexts.
    • RDSS suggested measures such as privatization and franchisee adoption.

    Legacy design issues in RDSS

    • Design issues: Complex processes and conditions for fund disbursal: Only 60 percent of the total Rs 2.5 lakh crore grants allocated in past schemes were disbursed.
    • Lack of review and regulatory oversight: Lack of public review and regulatory oversight in states is another issue.
    • Prescriptive approach: The prescriptive approach of the scheme design impedes effective implementation. For example, RDSS emphasizes loss reduction investments over system strengthening.
    • However, high losses are typically connected to sustained poor quality service which, in turn, is affected by inadequate investment in system strengthening.

    Opportunities for discoms under RDSS

    1] Strengthen rural networks

    • It is important to strengthen rural networks to meet growing demand.
    • In the past decade, 4.9 crore poor households have been electrified and more than Rs 50,000 crore has been invested in rural networks.
    • However, actual investments have been much less than planned.
    • Transformer and sub-station capacities were designed to meet the minimal demand assuming few lights, fans, and TV.
    • Increased supply hours, appliance usage, and the needs of rural enterprises will need more network investment.
    • Without this, the risk of power outages is high.
    • The RDSS system’s strengthening plans can focus on this challenge.

    2] Opportunity to provide reliable supply and reduce subsidy requirements for agriculture

    • About 25 percent of electricity sales is to be highly subsidized, agricultural consumers who also receive an erratic, poor quality supply.
    • Under the national KUSUM scheme, day-time, low-cost supply can be provided to a large number of farmers by installing megawatt scale solar plants.
    • For this to work, separate feeders for agricultural consumers are needed. RDSS prioritizes investments and grants towards dedicated agricultural feeders to accelerate feeder solarisation.
    • States must leverage this grant support to provide reliable supply and reduce subsidy requirements.

    3] Automatic metering of distribution feeders

    • Often, discoms under-estimate losses by over-estimating unmetered consumption in a bid to demonstrate loss reduction.
    • For greater veracity, all feeders must be equipped with meters capable of communicating readings without manual intervention.
    • States should leverage RDSS’s emphasis on automatic meter reading for this.

    4] Smart metering

    • RDSS prescribes a phase-wise roll-out of consumer smart meters, starting with commercial and industrial consumers and urban areas.
    • Such an approach provides states with an opportunity to understand implementation issues, adopt suitable strategies for metering and evolve frameworks for assessing benefits vis-a-vis the costs.

    5] Network for charging EVs

    • Discoms can avail 60 percent of grants under RDSS for network investments required to address the demand of charging infrastructure for electric vehicles.
    • This can accelerate a shift away from petrol and diesel fuels.

    Way forward

    • Flexibility: To leverage various opportunities, states must emphasize the need for flexibility in prioritizing investments in their action plans.
    • Central government agencies should also be flexible in the monitoring, tracking, and fund disbursal mechanisms.
    • Accelerated implementation: This should be accompanied by state-level commitments towards accelerated but deliberate implementation.

    Conclusion

    Despite the challenges, there are opportunities for discoms under RDSS. However, without these efforts, despite its potential, RDSS will likely be important but limited in its impact, like its predecessors.

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  • Fast-tracking Vande Bharat Express

    Presenting the Union Budget for 2022-23, Finance Minister said 400 new energy-efficient Vande Bharat trains will be introduced in three years.

    What is Vande Bharat Express?

    • The Vande Bharat Express is a semi-high speed train designed, developed, and built by the Integral Coach Factory (ICF).
    • Presently there are only two Vande Bharat trains that are running — Delhi to Varanasi and Delhi to Katra.

    Key Features 

    • The current Vande Bharat trains have seating only in two classes — chair car and executive chair car. But Railways is planning to upgrade it.
    • The trains have fully sealed gangways for a dust-free environment, modular bio-vacuum toilets, rotating seats in Executive Class, personalized reading lights, automatic entry/exit doors with sliding footsteps, diffused LED lighting, mini pantry, and sensor-based interconnecting doors in each coach.
    • They are self-propelled trains that do not require an engine. This feature is called a distributed traction power system, which is increasingly becoming the norm the world over for passenger operations(Distributed power gives the train higher acceleration and deceleration compared to loco-hauled trains, which take a much longer time to reach top speed or to gradually come to a halt).
    • 400 trains announced by the Finance Minister carry a potential investment of Rs 50,000 crore over the next three years, because of different specifications and also, inflation.
    • The current Vande Bharat’s are being made at Rs 106 crore per trainset of 16 cars, at 2018 pricing.

    Benefits of Vande Bharat Trains

    1) Cuts Travel Time Drastically

    2) Energy Efficient

    3) Reduce Turnaround Time

    4) Faster Acceleration and Deceleration among others.

    Why High-speed rail projects are important for India?

    • Improve India’s GDP: According to a study conducted by the London School of Economics and Political Science and the University of Hamburg in 2008, cities that are connected to HSR systems tend to witness a rise in their gross domestic product (GDP) by at least 2.7 percentage points compared to their neighbors that do not have an HSR station. The reason for the differential was improved market access.
    • Role of the trains in India’s development: Being the third-largest network in the world under single management and
      with over 68,102 route km IR strives to provide a safe, efficient, competitive, and world-class transport system.
    • During FY21, IR carried 1.23 billion tonnes of
      freight and 1.25 billion passengers. In addition, despite COVID -19 pandemic revenue earning freight loading (excluding loading by Konkan Railway Corporation Ltd. (KRCL) was 1230.9 million tonnes in 2020-21 as compared to 1208.4 million tonnes during2019-20. Passengers originating were 1250 million in 2020-21 as compared to 8086 million in 2019-20- Economic Survey 2021-22. 
    • Spin-off effect: It is about Rs 40,000 crore business opportunity that would also create 15,000 jobs and several spin-off benefits and act as a stimulus for the development of satellite towns.
    • Boost to ‘Make in India’– it involves only about 15 percent import content which will further go down if production volumes increase.
    • Environmental Benefits: More rail traffic translates to less automobile traffic, and by extension, less highway and city street traffic congestion, reduced air pollution. In addition, less congestion means less wear and tear on the roadways, which means that they require fewer repairs.  According to the International Association of Railways (UIC), high-speed rail is eight times more energy-efficient than airplanes and four times more efficient than automobile use.
    • Social Benefits: High-speed rail can promote a sense of social cohesion among residents, by bringing distant populated areas closer together.
    • Global Experience: The High-Speed Railway has an economic multiplier effect. Since the introduction of the first Shinkansen (literally meaning ‘new main line’) in Japan in 1964, high-speed trains have proven to be an undeniable technological, commercial and popular success. Many countries like the UK, France, Germany, Spain, China, and most recently, the US have adopted the technology.

    Challenges faced by the High-Speed Rail Projects

    • Infrastructure Bottlenecks: India’s railway system is saddled with a two-pronged infrastructure deficit – aging infrastructure and the pace of new project execution struck by unforeseen circumstances related to socio-economic issues on land acquisition for new projects and escalating projects costs.
    • New Technologies: For instance, Hyperloop Transportation Technologies which proposes to make travel as fast as 760 miles per hour, investing a humongous capital on bullet trains seems like an outdated investment.
    • Political Will: The politics of Rail Bhavan and an unwillingness to accept the need for change have derailed the project execution.
    • Short of Investments: For instance, the estimated cost of Mumbai-Ahmedabad HSR is ₹1.1 lakh crore (US$17 billion) which is massively expensive. Though India receives funding from Japan (81%), the power demand and up-gradation of existing infrastructure will be more costly.
    • Social Conflict: Development along the corridor will lead to an increase in urbanization, the fight for resources, and social conflicts due to the labor influx of the workforce.
    • Legal Trouble: While farmers in Maharashtra are protesting on the ground, the farmers in Gujarat led by Gujarat Khedut Samaj (GKS)-  fighting a case in the Gujarat High Court against the land acquisition for the bullet train project.

    Way ahead

    • Stakeholders approach: Politics and Policy have to be in sync for the railway modernization. In order to achieve the target, Railways will have to pool in all resources and multiple stakeholders, including private players to deliver the propulsion system and also carry out the assembling. The Policymakers and administration should give priority to systematic sustainable development work- the convergence of jal, jungle, jameen(water-forest-land is an asset for the Adivasi community). 
    • Regular Monitoring: To ensure the induction of these trains in the shortest time possible, as envisaged by Indian Railways.
    • Technology Transfer: The government has to push for the technology transfer of HSR. This is because there is no mention of the transfer of technology anywhere in the agreement.

    Conclusion

    India aspires to become the third-largest economy in the next 25 years. It has already proven its prowess in the field of space and now is the time for furthering its international stature by joining the exclusive club of nations having a high-speed rail network, however, we should be careful not to confuse leapfrogging technology development with elitism, whether it is mobile phones, satellite launches, regional air connectivity, or high-speed rail. This high-speed rail project will therefore help the Indian Railways to become a global leader in scale, technology, and skill.

     

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  • PM’s Development Initiative for North East (PM-DevINE)

    Union Budget 2022-23 provided for a new scheme, Prime Minister’s Development Initiative for North East (PM-DevINE) will be implemented through the North-Eastern Council.

    PM-DevINE

    • It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the northeast.
    • This will enable livelihood activities for youth and women, filling the gaps in various sectors.
    • While the Central Ministries may also pose their candidate projects, priority will be given to those posed by the States.

    Some of the projects to be implemented are:

    1. Dedicated Services for the Management of Paediatric and Adult Haemotolymphoid Cancers in North East India, Guwahati
    2. Construction of Aizawl bypass on western side, gap funding for passenger ropeway system for Pelling to Sanga-Choeling in West Sikkim
    3. Gap funding for eco-friendly Ropeway (Cable Car) from Dhapper to Bhaleydhunga in South Sikkim
    4. Pilot project for the construction of Bamboo Link Road at different locations in various districts in Mizoram

     

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  • The consequences of an ill-considered green strategy

    Context

    Europe’s push for renewable energy at the cost of conventional fuel may end up causing a global food crisis.

    Consequences of fuel shortage in Western Europe

    • Since August 2021, Western Europe has faced a problem with renewable energy – the wind doesn’t always blow when needed and the sun doesn’t always shine.
    • Commodity markets across the world operate on a balance of demand and supply — even seemingly “small” changes in either side of a few percentage points can push the prices up or down sharply.
    • High energy bills: Higher gas prices have pushed up energy bills for households and are expected to impact household spending and consumption as well.
    • High urea prices: Natural gas is used to produce urea – if gas prices go up, fertiliser also becomes expensive.
    •  Some poor and middle-income countries are already starting to face problems of fertiliser availability — there are reports from several Indian states as well. 
    • High food prices: The impact of expensive fertiliser will be felt some months down the line as expensive fertiliser and reduced harvests push up food prices.
    • India is relatively less affected as the share of natural gas in the country’s energy mix is low but will still face problems due to high food prices.
    • In 2007-08, when oil prices were high, there was a push to use “biofuels” led by the US and Europe.
    •  The effects of the 2008 food price crisis were felt around the world, especially by the poor.

    Lessons for India

    • Cheap and reliable energy sources should not be abandoned until the alternatives have been stringently stress tested.
    • India will be especially hard hit if oil prices spike as it imports close to 1.4 billion barrels of oil annually.

    Consider the question “What are the inherent dangers in rapid transition to the green energy? Suggest the way forward for India.”

    Conclusion

    A blind push to shut down traditional sources of energy and move to less reliable “clean” energy can have second and third order effects.

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  • [pib] Sela Pass Tunnel Project

    The final blast for the 980-metre long Sela Tunnel was recently conducted by the Border Roads Organisation (BRO) amidst inclement weather and heavy snowfall.

    Sela Pass Tunnel Project

    • The tunnel covers a total distance of 12.04 kms which consist of two tunnels of 1790 metres and 475 meters.
    • It is being built at an estimated cost of ₹687 crores by the Border Roads Organisation.
    • It aims to provide all weather connectivity to Tawang in Arunachal Pradesh — an area claimed entirely by China — and other forward areas.
    • Once built it will cut travel time to Tawang by at least an hour for Indian troops stationed in adjoining Assam’s Tezpur town — the headquarters of the Indian army’s IV Corps.

    Strategic Importance

    • The lack of motorable roads and rail connections in India’s northeast and Arunachal Pradesh in particular were seen as distinct disadvantages for India vis a vis China in the region.
    • Analysts had been warning of China building infrastructure including access roads right up to the Indian border that would give it a strategic advantage in any conflict with India.
    • Once completed this would result in all weather connectivity to Tawang and forward areas and reduction in more than one hour of travelling time from Tezpur to Tawang.

     

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  • Why 5G roll-outs are disrupting flights to the US?

    Air India said Boeing had cleared its B777 aircraft for flights to the US following concerns that the 5G roll-out there could interfere with critical aircraft functions.

    What is 5G Technology?

    • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
    • It’s a unified platform which is much more capable than previous mobile services with more capacity, lower latency, faster data delivery rate and better utilization of spectrum.

    How can 5G affect flight safety?

    • Airlines take off and land using auto-pilot systems, which use data from radar altimeters to determine the altitude of the aircraft.
    • Altimeters emit radio waves at 4.2-4.3 Gigahertz (GHz) frequency, which could interfere with a 5G band called C-Band, which lies between 3.7-4.4 GHz.
    • This interference can mess up the data. That’s the safety concern. Radio altimeters are used at airports and other low-altitude locations.
    • A different kind of altimeter, called pressure altimeter, is used for high altitude areas.
    • Not using auto-pilot would lead to more fuel consumption and higher costs for airlines.

    What happens to Air India’s operations?

    • While scheduled international flights, to and from India, remain suspended due to the pandemic, Air India operates flights to the US under an air bubble agreement.
    • These routes are served by the airline’s wide-body fleet of Boeing 777 and Boeing 787 planes.
    • The roll out of 5G is expected to primarily impact the operations of Boeing 777 and 747.

    Can this impact India’s 5G roll-out?

    • India’s 5G auctions are expected to include spectrum bands of 3.3GHz -3.6GHz, which means the C-Band may not be operational, at least in the near future.
    • Plus, aircraft equipment is manufactured globally, with certain standards.
    • The FAA tests will likely lead to standards for altimeters and applied internationally.
    • For aircraft makers, altimeters are key equipment. But they’re bought off-the-rack instead being designed in-house.
    • Once a standard is known, it can be implemented in all aircraft.

    Also read

    [Burning Issue] 5G Technology

  • Millimeter Wave band in 5G auctions

    The Telecom Regulatory Authority of India (TRAI) has asked for views on band plan, block size, and conditions for auction of spectrum in 5G bands, which includes Millimetre (mm) Wave band of 24.25-28.5 GHz.

    Must read:

    Status of 5G Rollout in India

    What is 5G technology?

    • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
    • It’s a unified platform that is much more capable than previous mobile services with more capacity, lower latency, faster data delivery rate and better utilisation of spectrum.

    5G spectrum

    5G mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

    (1) Low band spectrum

    • It has a great promise in terms of coverage and speed of internet and data exchange but the maximum speed is limited to 100 Mbps (Megabits per second).
    • So Telcos can use and install it for commercial cell phone users who may not have specific demands for very high speed internet, the low band spectrum may not be optimal for specialized needs of the industry.

    (2) Mid-band spectrum

    • It offers higher speeds compared to the low band, but has limitations in terms of coverage area and penetration of signals.
    • This band may be used by industries and specialized factory units for building captive networks that can be moulded into the needs of that particular industry.

    (3) High-band spectrum

    • It offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
    • Internet speeds in the high-band spectrum of 5G has been tested to be as high as 20 Gbps (giga bits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

    What is Millimetre (mm) Wave Band?

    • Millimetre Wave band or mmWave is a particular segment of radio frequency spectrum that range between 24 GHz and 100 GHz.
    • This spectrum, as the name suggests, has a short wavelength, and is apt to deliver greater speeds and lower latencies.
    • This in turn makes data transfer efficient and seamless as the current available networks work optimally only on lower frequency bandwidths.

    Significance of this mm band

    • 5G services can be deployed using lower frequency bands.
    • They can cover greater distances and are proven to work efficiently even in urban environments, which are prone to interference.
    • But, when it comes to data speeds, these bands fail to hit peak potential needed for a true 5G experience.
    • So, mmWave is that quintessential piece in the 5G jigsaw puzzle for mobile service providers.

    Concerns with inclusion of mm-band

    • The mm bands have been preserved for satellite-based broadband services as per the decision taken by the International Telecommunication Union (ITU).
    • Providing excess spectrum could pose a downside risk of the bands going unsold, or even worse, underutilised by terrestrial players at the expense of satellite-based service providers.
    • Offering excessive spectrum will result in Indian citizens being denied the benefits of high-demand, advanced satellite broadband services.
    • In addition to this, it will result in a massive loss to the Indian economy of up to $184.6 billion by 2030, along with the loss of foreign direct investment (FDI) and employment generation benefits.

    How could this disrupt the satellite communication industry?

    • Internet has largely been provided to users via fibre-optic based broadband connectivity or mobile network.
    • Of late, another class of Internet vendors is showing up. These are satellite-based communication service providers.
    • For example, SpaceX’s Starlink and Bharti Airtel’s OneWeb are some of the players in this market.
    • This segment uses Low-Earth Orbit (LEO) satellites to provide broadband to both urban and rural users. Their service could also be used for weather predictions.
    • The mm band had been the subject of controversy due to out-of-band emissions into the passive satellite band used for weather satellites at 23.6-24 GHz.

    HeaWay ahead

    • The allocation of mmWave band is critical to the satellite communication industry, which needs a stronger regulatory support to ensure that 5G operations don’t interfere with their existing operations.
    • The industry body pointed to Europe’s “5G Roadmap”, which is built on the ITU’s decision to hold these bands for satellite-based broadband services.

     

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