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GS Paper: GS3

  • China objects to Indian proposal to blacklist terrorist at UN

    Central Idea: China has objected to India’s proposal to blacklist Abdul Rauf Azhar, a senior terrorist from Pakistan-based Jaish-e Mohammed (JeM) on the UN Security Council’s 1267 List.

    China’s objection to the proposal

    • China is a permanent, veto-wielding member of the UN Security Council.
    • It has put a hold on proposals to blacklist other Pakistan-based terrorists in the past, including Hafiz Talah Saeed, Shahid Mahmood, and Sajid Mir.

    The UNSC 1267 list

    • The UNSC resolution 1267 was adopted unanimously on 15 October 1999.
    • It came to force in 1999, and strengthened after the September 2001 attacks.
    • It is now known as the Da’esh and Al Qaeda Sanctions Committee.

    What is UNSC 1267 committee?

    • It comprises all permanent and non-permanent members of the United Nations Security Council (UNSC).
    • The 1267 list of terrorists is a global list, with a UNSC stamp.
    • It is one of the most important and active UN subsidiary bodies working on efforts to combat terrorism, particularly in relation to Al Qaeda and the Islamic State group.
    • It discusses UN efforts to limit the movement of terrorists, especially those related to travel bans, the freezing of assets and arms embargoes for terrorism.

    How is the listing done?

    (1) Submission of Proposal

    • Any member state can submit a proposal for listing an individual, group, or entity.
    • The proposal must include acts or activities indicating the proposed individual/group/entity had participated in the financing, planning, facilitating, preparing, or perpetrating of acts or activities linked to the said organizations.

    (2) Actual decision

    • Decisions on listing and de-listing are adopted by consensus.
    • The proposal is sent to all the members, and if no member objects within five working days, the proposal is adopted.
    • An “objection” means rejection for the proposal.

    (3) Putting and resolving ‘Technical Holds’

    • Any member of the Committee may also put a “technical hold” on the proposal and ask for more information from the proposing member state.
    • During this time, other members may also place their own holds.
    • The matter remains on the “pending” list of the Committee.
    • Pending issues must be resolved in six months, but the member state that has placed the hold may ask for an additional three months.
    • At the end of this period, if an objection is not placed, the matter is considered approved.

    Here is a timeline of how China disrupts the global efforts against terrorism:

    • 2009: After the 26/11 Mumbai attacks, India moved an independent terror designation proposal against Masood Azhar but China blocked the move.
    • 2016: After seven years, India proposes listing of Masood Azhar as a global terrorist and is supported by the US, the UK and France. China blocks the move again.
    • 2017: The trio moves a third proposal only to be blocked by China again.
    • 2019: After the attacks on the CRPF personnel in J-K’s Pulwama, India calls 25 envoys of different countries to highlight the role Islamabad plays in funding, promoting and strengthening global terrorism. India moves the fourth proposal demanding Masood Azhar’s listing. China lifted its technical hold.
    • June 2022: China blocked a proposal by India and the US to list Pakistan-based terrorist Abdul Rehman Makki as a ‘Global Terrorist’
    • August 2022: China blocks India-US joint proposal to list Jaish-e-Mohammad (JeM) deputy chief Abdul Rauf Azhar as UNSC designated terrorist.

    Conclusion

    • China’s actions expose its double speak and double standards when it comes to the international community’s shared battle against terrorism.
    • This clearly depicts its care for its vassal state Pakistan.

    Back2Basics: United Nations Security Council

    Description
    Purpose International peace and security
    Powers Establish peacekeeping operations, impose international sanctions, and authorize military action. Its resolutions are binding.
    Membership 15 members. 5 permanent members are Russia, the United Kingdom, France, China, and the United States. The remaining 10 are non-permanent members elected on a regional basis to serve two-year terms.
    Veto Power P5 members have veto power, which means they can veto any substantive resolution, including those on new member states or candidates for Secretary-General.
    Presidency Rotates monthly among its members.

     

     

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  • Indian Space Policy 2023: A Vision that Needs Legislative Support

    Space Policy

    Central Idea

    • India’s new space policy released in 2023 is a promising move towards a flourishing commercial presence in space. However, the policy needs to be accompanied by clear rules and regulations and suitable legislation to create a conducive environment for private sector participation in the Indian space industry.

    The Indian Space Policy 2023

    • The Indian Space Policy 2023 is a short 11-page document that includes a vision to enable, encourage and develop a flourishing commercial presence in space.
    • It recognizes the private sector as a critical stakeholder in the entire value chain of the space economy.
    • It makes five key points and outlines the roles of various entities, including the Department of Space, ISRO, Indian National Space Promotion and Authorisation Centre (IN-SPACe), and the NewSpace India Limited (NSIL).
    • The policy lays out a strategy and spells out the roles of the entities mentioned above.

    What is mean by The Second Space Age and its features?

    • The Second Space Age refers to a period in the space industry following the early 1990s when private sector involvement in space technology began to increase.
    • The Second Space Age is characterized by the following features:
    • Increased private sector involvement: The Second Space Age has seen private sector companies take a more prominent role in the space industry. This shift has led to innovation and growth, with private companies investing in space tourism, satellite-based services, and other commercial applications of space technology.
    • Commercial applications of space technology: The Second Space Age is marked by a shift towards commercial applications of space technology. Private sector companies are investing in satellite-based services such as broadband, OTT, and 5G, which promise a double-digit annual growth rate.
    • Increased global competition: The Second Space Age has led to increased global competition in the space industry. Countries such as China, India, and private companies like SpaceX, Blue Origin, and Virgin Galactic are competing for a share of the space industry’s market.
    • Increased collaboration: The Second Space Age has seen increased collaboration between government agencies and private sector companies. This collaboration has led to the development of new technologies and innovative solutions to problems faced in space exploration.

    Space Policy

    Facts for prelims

    IN-SPACe

    • IN-SPACe stands for Indian National Space Promotion and Authorization Centre.
    • It is a new regulatory body that was set up by the Indian government in 2020 to promote and regulate the activities of non-government entities (NGEs) in the Indian space sector.
    • The primary objective of IN-SPACe is to create an enabling environment for private sector participation in the Indian space industry.
    • IN-SPACe will be responsible for granting licenses and permits to private companies for carrying out space-related activities, including the establishment and operation of space objects, ground-based assets, and related services such as communication, remote sensing, and navigation.

    New Space India Limited (NSIL)

    • NSIL is a public sector company under the Department of Space, Government of India.
    • It was established in March 2019 as the commercial arm of ISRO to enable commercial exploitation of ISRO’s research and development activities, products, and services.
    • NSIL’s primary objective is to facilitate the transfer of technologies developed by ISRO to industries for commercial exploitation.
    • It aims to promote the development of the Indian space industry and create a level playing field for the private sector in the space domain.
    • NSIL also aims to launch new satellites and provide space-based services such as satellite-based communication, navigation, and remote sensing.
    • NSIL is also responsible for organizing and coordinating the participation of Indian industries in international exhibitions, symposiums, and workshops related to the space sector.

    Gaps in Indian Space Policy 2023

    • Lack of legislative framework: The policy provides a broad framework for promoting private sector participation in the Indian space industry but lacks a legislative framework to support it. A regulatory body like IN-SPACe needs legislative authority to be effective.
    • Lack of clear rules and regulations: The policy framework envisaged will need clear rules and regulations pertaining to FDI and licensing, government procurement to sustain the new space start-ups, liability in case of violations, and an appellate framework for dispute settlement.
    • Ambiguity in IN-SPACe’s position: IN-SPACe currently functions under the purview of the Department of Space, and its position is ambiguous. The Secretary (Space) is also the Chairman of ISRO, the government entity to be regulated by IN-SPACe. This ambiguity could create conflicts of interest and undermine IN-SPACe’s effectiveness.
    • Lack of timelines: The policy sets out an ambitious role for IN-SPACe but provides no timeline for the necessary steps ahead. There is no indicative timeline for ISRO’s transitioning out of its current practices, nor is there a schedule for IN-SPACe to create the regulatory framework.

    Way ahead: Steps to implement the policy effectively

    • Enactment of a new Space Activities Bill: The draft Space Activities Bill, which lapsed in 2019 with the outgoing Lok Sabha, needs to be reintroduced and enacted. The Bill will provide a comprehensive legislative framework to support the Indian Space Policy 2023 and regulate space activities carried out by government and non-government entities.
    • Establishment of a clear regulatory framework: IN-SPACe needs to create a clear regulatory framework that sets out the rules and regulations for private sector participation in the Indian space industry. This will ensure a level playing field and promote the growth and development of the industry.
    • Timely implementation of the policy: The Indian government needs to work closely with ISRO and other stakeholders to ensure the timely implementation of the policy. This will require setting clear timelines for the necessary steps ahead and ensuring their effective implementation.
    • Promotion of private sector participation: The Indian government needs to promote private sector participation in the Indian space industry by providing incentives, facilitating technology transfer, and creating a conducive environment for innovation and growth.
    • Collaboration with international partners: The Indian government needs to collaborate with international partners to share knowledge, expertise, and resources in the space domain. This will help in promoting innovation and growth in the Indian space industry and enhancing India’s global competitiveness.

    Space Policy

    Conclusion

    • The Indian Space Policy 2023 is a promising move towards creating a conducive environment for private sector participation in India’s space industry. However, it needs legislative support to create a stable and predictable regulatory framework and ensure a level playing field for the private sector. A vision that needs legislative support to launch India into the Second Space Age.

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    Also read:

    The Indian Space Policy 2023 and The Role of Private Sector

     

  • Energy Transition to Renewables: Challenges and the Way Ahead

    Energy

    Central Idea

    • Access to affordable and reliable energy is essential for economic development and public services. However, the global energy market has been disrupted due to demand and supply-side factors leading to rising prices and disruptions in energy supply chains. As a result, countries with a high dependence on fossil fuels, including India, faced a significant challenge.

    The correlation: Energy availability and economic development

    • The correlation between energy availability and economic development is that energy availability and accessibility are essential inputs for many public services, and securing affordable and reliable access to energy remains a central political and economic imperative for almost all governments.
    • Energy availability and accessibility are necessary for economic growth and development, and a lack of access to energy can hamper the growth of industries, limit productivity, and impede social development.

    Energy

    Factors that contributed to the Global Energy Crisis

    • Demand and Supply-side Factors: There have been disruptions in the oil and gas supply chains due to the ongoing Russia and Ukraine war. Additionally, energy prices came under pressure due to a sudden rise in demand resulting from abnormally high temperatures and associated heatwaves across the globe. These factors inflated the international price of oil and natural gas.
    • Dependence on Finite Fossil Fuels: Fossil fuels account for over 80% of global energy requirements and over 64% of electricity generation worldwide. Additionally, most countries are net importers of fossil fuels, and thus prone to adverse supply shocks resulting from various geopolitical and economic events.
    • Overdependence on Fossil Fuels: Many countries turned to coal to meet their energy needs, while those already using coal intensified its exploitation, putting immense pressure on the coal market.
    • Increased Cost of Electricity: The increased cost of electricity due to a higher usage of fossil fuel-based sources imposed a heavy burden on low-income households since they spend a larger share of their incomes on electricity and gas.
    • Widespread Power Outages: Widespread power outages in many countries due to disruptions in electricity supply threw lives out of gear.
    • Dependence on Imported Fossil Fuels: Europe, for instance, faced a challenging situation due to its historic high dependence on imported gas from Russia to meet its energy requirements.
    • Climate Change: Fossil fuels account for 75% of global greenhouse gas emissions and around 90% of carbon dioxide emissions. Climate events, such as floods and droughts, cause immense human and economic loss.

    Impact on countries

    • High energy prices: The increased cost of electricity due to a higher usage of fossil fuel-based sources imposes a heavy burden on low-income households since they spend a larger share of their incomes on electricity and gas.
    • Power outages: Widespread power outages in many countries due to disruptions in electricity supply throw lives out of gear. For instance, Bangladesh witnessed a countrywide blackout as many gas- and diesel-based power plants, responsible for approximately 85 percent of the country’s electricity generation, were forced to shut down due to fuel shortages.
    • Slowdown in economic growth: Increased prices and disrupted supply severely impacted those countries with a high dependence on fossil fuels, particularly its import, and led to a slowdown in global economic growth, forcing some countries and regions into recession.
    • Environmental degradation: Overdependence on fossil fuels impacts countries adversely in the form of air and water pollution and soil degradation, while also being a significant cause of climate change.
    • Foreign exchange reserves: The dependence on fossil fuels also affects countries’ foreign exchange reserves, as the fluctuations in prices of fossil fuels affect their import bills and balance of payments.
    • Revenue loss: Many regions and their economies, especially in developing countries, depend on incomes derived from fossil fuel-based employment, such as mining, power generation, transmission, and distribution and storage. In many regions, governments are also dependent on the revenue generated from fossil fuels to enhance infrastructure that enables local communities to expand and diversify their livelihood options.

    Challenges in way of transition to renewable sources of energy

    • Mobilizing capital: While the cost of clean energy is declining, many clean energy technologies require high upfront investment costs, which may be beyond the capacities of most developing countries. Additionally, international support for developing countries is lacking, making it difficult for them to transition to renewable energy sources without supportive international actions.
    • Ensuring a just transition: There is a need to ensure decent work opportunities and social support for people likely to lose their livelihoods in the process of transitioning to low-carbon and renewable-based economies. Many people are employed in the fossil fuel industry globally, and there is a risk of destabilizing local economies during the transition process.
    • Technical challenges: The transition to renewable energy sources may require significant upgrades to infrastructure, including energy storage and transmission systems, which can be costly.
    • Policy and regulatory challenges: The transition to renewable energy sources requires significant policy and regulatory changes, including reforms to subsidy systems, pricing mechanisms, and energy markets.
    • Reliability and intermittency of renewable sources: Unlike fossil fuels, renewable energy sources are often intermittent, making it difficult to guarantee a stable supply of electricity. This may require investments in energy storage and backup power systems to ensure reliable supply.
    • Public acceptance: The transition to renewable energy sources may face resistance from some stakeholders, including those who are reliant on fossil fuels for their livelihoods or those who are concerned about the visual and environmental impacts of renewable energy infrastructure.

    Energy

    Way ahead: Addressing these challenges

    • Mobilizing capital: Developed countries need to fulfill their commitment to providing climate finance to developing countries. Innovative financial instruments such as green bonds and blended finance could also be used to attract private investment.
    • Ensuring a just transition: Governments need to develop comprehensive plans that protect workers and communities affected by the shift to renewable energy. This could involve retraining programs, investment in new industries, and social safety nets.
    • Investing in research and development: Governments, international organizations, and the private sector need to invest in research and development to drive down the costs of renewable energy technologies and improve their efficiency.
    • Promoting energy efficiency: Governments and businesses need to prioritize energy efficiency measures such as retrofitting buildings and improving industrial processes to reduce energy demand and costs.
    • Accelerating deployment of renewable energy: Governments need to set ambitious targets for renewable energy deployment and create policy frameworks that incentivize investment in clean energy.
    • Building energy infrastructure: Governments need to invest in building the infrastructure needed to support the deployment of renewable energy, including grid upgrades, energy storage, and electric vehicle charging stations.
    • Promoting international cooperation: The transition to renewable energy requires international cooperation, especially between developed and developing countries. Developed countries can support developing countries through technology transfer, capacity building, and financial support.

    Facts for prelims

    Distributed Renewable Energy (DRE)

    • DRE refers to the generation and distribution of electricity from renewable energy sources, such as solar, wind, hydro, geothermal, and biomass, through small-scale, decentralized systems.
    • These systems are often installed in remote or rural areas where it is difficult or expensive to connect to a centralized power grid.
    • DRE systems can range from individual rooftop solar panels to small-scale wind turbines, mini-hydro systems, and biomass generators.
    • They are typically designed to serve a single household or community, rather than a large urban or industrial center.
    • DRE systems are also known as off-grid or mini-grid systems, and they can be standalone or connected to a larger power grid.

    Conclusion

    • The transition towards renewables is an attractive option for countries to hedge against the risks associated with fossil fuel-based energy sources. However, this requires access to affordable finance and international support to enable a just transition through on-the-job retraining programs, infrastructure investments, and so on. Access to affordable and reliable energy is crucial for sustainable economic development.

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    Also Read:

    Lessons Learned: Transition To A Self-reliant Clean Energy System

     

  • How to minimise the threat from IEDs?

    Central Idea: The article discusses various measures that need to be taken to minimise errors in anti-terrorist operations. This has been particularly discussed after recent incidents of IED (improvised explosive device) explosions.

    What are IED (Improvised Explosive Device)?

    • IEDs are homemade explosive device made from commonly available materials such as fertilizer, diesel fuel, and metal scraps.
    • They are typically used as a form of guerrilla warfare by non-state actors such as terrorists, insurgents, and other militant groups.

    Why discuss IEDs?

    • IEDs are a popular choice for such groups as they are relatively easy to construct, difficult to detect, and can be triggered by a range of mechanisms including pressure plates, remote control, and tripwires.
    • IEDs are often responsible for a large number of casualties and fatalities in conflict zones.

    Disadvantage faced by Indian armed forces

    • The security forces are dealing with an enemy who is faceless, unidentifiable, and hidden among the people.
    • Security personnel can open fire only in self-defence, not on apprehension, giving militants the ‘first mover advantage’.
    • The reaction or the response time available for “Immediate Action (IA) or Counter Ambush drill” is a few seconds.
    • All standard operating systems and procedures, technological measures, etc., are directed towards the identification and detection of IEDs/landmines and to avoid being caught in them.

    Preventing IED Fatalities

    (1) Minimizing Errors

    • Avoid vehicle travel: To avoid casualties/fatalities in Maoist territories, vehicle travel should be avoided.
    • Foot patrolling: Routine operations like area domination, cordon-and-search, long-range patrolling, ambush-cum-patrolling should only be undertaken on foot.
    • Route security: If vehicle travel is essential, the onward and return journeys should never be by the same route, nor undertaken during the daytime.
    • Smaller convoys: Security forces should travel in a convoy of a minimum of two to three vehicles, maintaining a distance of at least 40 to 50 meters between them.

    (2) Camouflage and Protective Gear

    • In certain war zones, vehicular deployment is inevitable.
    • Security forces should be equipped with appropriate protective gear and their vehicles should be equipped with V-shaped and armour-plated hull, blast-resistant technology, and proper sandbagging to minimize damage in the event of an explosion.

    (3) Making a Region Safe for Travel

    • Detection: Rigorous and regular implementation of various detection methods, such as metal detectors, ground-penetrating radar, and trained sniffer dogs, to locate and clear landmines and IEDs, is essential.
    • Multi strata surveillance: This carried out through drones and road opening parties equipped with UGVs (Unmanned Ground Vehicles) can detect the presence of terrorists and pick tell-tale signs of a likely ambush.
    • Mapping of such areas: Areas known or suspected to contain landmines or IEDs can be mapped, and contingency plans prepared for them.

    (4) Intelligence Inputs and Investigation

    • Confidence building: Winning of hearts and minds is essential to gather actionable intelligence.
    • Diligent and scientific investigation: Establishment of linkages through meticulous collection and marshalling of evidence, framing of chargesheets, followed by speedy trials and conviction, serve as a strong deterrent to terrorism.

    Policy measures required

    • Regulating explosives: Legislative measures are required for the mandatory addition of odoriferous chemicals and/or biosensors to explosives used in industry and mining for their easy detection during transport.
    • Collaboration with international organizations: Other countries have taken several counter-IED measures, such as the U.S. setting up the Joint Improvised-Threat Defeat Organization and spending about $20 billion on counter-IED measures since 2005.
    • Overarching agency: It is needed under the Ministry of Home Affairs to coordinate the efforts of both the GoI and the states, and to provide legislative, technological, and procedural support to law enforcement agencies.

    Conclusion

    • It is crucial for governments to take necessary measures to protect their security personnel and prevent casualties caused by IEDs.
    • Again it is essential to raise awareness about the challenges and dangers faced by security personnel in conflict zones and to find effective solutions to mitigate the risks.

     

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  • Common Uniforms at Higher Ranks of Army

    uniform

    Central Idea: A decision has been taken at the recent Army Commanders Conference to change the uniforms worn by senior Army officers.

    Changes in Uniform

    • All officers of the rank of Brigadier and above will now wear common uniform items.
    • The common uniform items include berets, badges of rank, belt buckle, and pattern of shoes.
    • Regimental lanyards and shoulder flashes will no longer be worn by officers of these higher ranks.
    • There will be no item of uniform that will identify them as belonging to a particular Regiment or Corps.

    Present Uniform Accoutrements

    • Officers from the rank of Lieutenant to General currently wear uniform accoutrements as per their regimental or corps affiliation.
    • Each Infantry Regiment and Corps has its own pattern of lanyard, badges of rank, buttons, and belt buckle as per regimental traditions.

    Reason for Change

    • Regimental service in the Army ends at the rank of Colonel for most officers who rise further.
    • Senior officers commanding troops of mixed regimental lineage should present themselves in a neutral uniform rather than a regimental one.

    Reversion to Past Practice

    • The Army is now reverting to the practice that was followed almost 40 years ago, when the changes towards wearing regimental affiliations took hold in the service.
    • Until about the mid-1980s, officers of the rank of Colonel and above had common uniform patterns and insignia.

    Tradition in Other Armies

    • In the British army, the uniform worn by officers of the rank of Colonel and above is referred to as the Staff uniform, to distinguish it from the Regimental uniform.
    • Among neighbouring countries, the Pakistan and Bangladesh armies follow the same pattern as the British army.

     

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  • Analysis of the Maoist Attack and The Way Forward

    Maoist

    Central Idea

    • The April 26 attack on District Reserve Guard (DRG) personnel and a civilian driver by Maoists in Dantewada, Chhattisgarh highlights the need for a comprehensive approach to tackling the insurgency. Despite claims of a weakened Maoist movement, the attack shows that they still have the ability to strike at will.

    About District Reserve Guards (DRG)

    • District Reserve Guards (DRG) is a special unit of the police force in some Indian states, primarily in Chhattisgarh, that is trained and equipped to combat Naxalite and Maoist insurgency.
    • DRG personnel are typically drawn from local tribal communities and are familiar with the local terrain, which makes them effective in fighting the insurgency.
    • They are provided with specialized training in guerrilla warfare, jungle warfare, and use of modern weaponry.
    • The DRG is often at the forefront of anti-Naxalite operations and is considered a vital component of the Indian government’s efforts to counter the Maoist insurgency in the country.

    Maoist ability to strike at will

    • Strategic planning by Maoist Central Committee: A strike such as the one carried out on April 26 cannot be the brainchild of a local Maoist unit; it is highly likely that this was a trap laid out under the directions of the Maoist Central Committee, indicating the sustained hierarchy of the Maoists.
    • Timing of attacks: The Maoists carry out maximum attacks against security forces during the tactical counter-offensive campaign which is the period between February and June every year. Out of a total of 17 major strikes in Chhattisgarh (2010-2023), six were carried out in April alone, indicating a pattern that should give the government enough leads to plan its strategy.
    • Flouting of standard operating procedures: Standard operating procedures and protocols were blatantly flouted during the unfortunate strike on April 26. It is imperative that the security forces remain extra cautious during the months of the tactical counter-offensive campaign by strictly adhering to standard operating procedures and protocols.

    Challenges associated with employing local tribal youth for the DRG

    • False sense of empowerment: When armed, local tribal youth often get a false sense of empowerment, which can lead to feuds with the Maoists. This is because they are familiar with the ecosystem of the Maoists and may harbor resentment towards them.
    • Intelligence network: During the April 26 incident, the intelligence network of the DRG was outclassed by that of the Maoists. This highlights the need for better training and support for local tribal youth who are employed by the DRG.
    • Ad-hoc planning: The DRG personnel, in this case, seem to have acted independently, exposing their ad-hoc planning. This demonstrates the need for better coordination and control over the DRG by the state police.
    • Lack of discipline: Although the combat-worthiness of the DRG is beyond doubt, it is not complemented by the rigor of discipline, which is an imperative quality for troops in any protracted counter-insurgency campaign. The track record of the DRG regarding discipline is not too encouraging, with many of the cadres having been cashiered on disciplinary grounds and some having been found to be involved in crime. This highlights the need for better training and support to ensure that the DRG personnel are adequately disciplined and accountable for their actions.

    Way ahead: Lasting solutions

    • Effective Policing: Effective policing in insurgency-affected regions is the function of a strong State police force. It is widely acknowledged that Central police forces should supplement and not supplant the State police.
    • Vacancies in State Police Force: According to data of the Bureau of Police Research and Development, there are many vacancies in the State police forces. Without comprehensive transformation of the State police, Central forces would achieve little beyond random and misplaced killings.
    • Control on Local Tribal Youth: Local tribal youth should be employed for the DRG in a controlled manner by the State police. Security should not be simply outsourced to them.
    • DRG Personnel Discipline: The combat-worthiness of the DRG is beyond doubt, but it is not complemented by the rigour of discipline. This is an imperative quality for troops in any protracted counter-insurgency campaign. The track record of the DRG regarding discipline is not too encouraging.
    • Deeper reflection on the discontent and dispossession of tribal people: The incident calls for a deeper reflection on the discontent and dispossession of the tribal people of central India, who are in all respects the most disadvantaged of citizens.
    • Perception management: The government needs to pay adequate attention to perception management. The government should communicate that extensive road construction projects in Bastar will ease the lives of the local population and not just enhance the reach of the security forces.
    • Weaken the Maoist ideology: The futility of the Maoist ideology in current times is not adequately exposed to weaken the insurgency. Security is no doubt necessary, but the focus needs to be beyond security and development.

    Conclusion

    • The Dantewada attack highlights the need for a comprehensive approach to tackling the insurgency, taking into account the tactical counter-offensive campaign, the need for strong state police forces, and the controlled employment of DRG personnel. The government should focus on addressing the root causes of the insurgency, paying attention to perception management and exposing the futility of Maoist ideology

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    Also Read:

    The Maoist Insurgency: Challenges and The Way Forward

  • India coal imports surge to 162 MT in FY23

    Central Idea

    • India’s coal imports increased by 30% to 162.46 million tonnes in the 2022-23 financial year compared to 124.99 MT in the previous year, according to a report.
    • The report was released by mjunction, a B2B e-commerce platform that is a joint venture between Steel Authority of India (SAIL) and Tata Steel.

    India’s coal production and consumption

    • India is among the top five coal-producing countries in the world.
    • Despite being a major producer, India also imports coal to meet some of its demand.
    • India is a significant consumer of coal, which is used for power generation and industrial processes.

    Import of Coking Coal

    • Coking Coal: The import of coking coal rose by 5.44% to 54.46 MT over 51.65 MT in FY22, as per the report by mjunction. Coking coal is a key raw material used in steel making.
    • Non-coking coal: In March 2023, non-coking coal import stood at 13.88 MT against 12.61 MT in the same month last year.
    • Other imports: The total imports of various types of coal like anthracite, pulverised coal injection (PCI coal), met coke and pet coke, along with coking and non-coking coal, were at 249.06 MT in FY23, up from 200.71 MT in FY22, a rise of over 24%.

    Key inferences from this

    • The high demand for steam coal in India and the weakening of seaborne prices led to increased volumes during March.
    • This trend might continue in the coming months due to above-normal average temperatures expected during the summer.

    Why does India import coal?

    India imports coal primarily due to the following reasons:

    • Lack of good quality coal: India’s domestic coal reserves have limitations in terms of quality, and the country does not have sufficient reserves of good quality coking coal, which is used in steelmaking and allied industries. Therefore, India imports coal to compensate for the lack of good quality coal.
    • Growing energy demand: India’s energy demand is continuously increasing due to population growth and rapid urbanization. Coal is a significant contributor to India’s energy mix, and the country needs to import coal to meet its growing energy demand.
    • Infrastructure constraints: India’s domestic coal production is limited due to various factors such as geological constraints, land acquisition issues, and environmental regulations. Moreover, India’s domestic coal transport infrastructure is insufficient, and many power plants are located far away from the coal mines, making imports a more viable option.
    • Better quality and cost-effectiveness: Importing coal from other countries can sometimes be more cost-effective than producing it domestically, especially when the quality of imported coal is better than domestic coal.

     

    Key terminologies

    Coking coal: a type of coal that is used in the production of steel.

    Anthracite: a hard and compact type of coal that has a high carbon content.

    Pulverised coal injection (PCI coal): a method of injecting pulverized coal into a blast furnace to improve the efficiency of the iron-making process.

    Met coke: a type of coke made by heating coal in the absence of air, which is used as a fuel in blast furnaces to produce iron.

    Pet coke: a carbon-rich solid material that is derived from oil refining. It is used as a fuel in industrial processes.

     

    Try this PYQ from CSP 2012:

    Despite having large reserves of coal, why does India import millions of tonnes of coal?

    1. It is the policy of India to save its own coal reserves for the future, and import them from other countries for the present use.
    2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
    3. Steel companies need a large quantity of coking coal which has to be imported.

    Which of the statements given above is/are correct?       

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

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

     

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  • RBI’s gold reserves rise to 794.64 tonne

    Central Idea: The RBI has increased its gold reserves by 34.22 tonnes YoY to reach 794.64 tonnes at the end of March 2023, according to the central bank’s data.

    What are Gold Reserves?

    • Gold reserves refer to the physical gold holdings that a central bank or a country holds as a part of its foreign exchange reserves.
    • Central banks may acquire gold reserves through various means, including purchases from other central banks, international organizations, or commercial banks, and from domestic production or importation.
    • Gold reserves are typically held in the form of gold bars, which are stored in secure vaults or depositories.

    Why Gold?

    • Gold is considered a safe-haven asset and has been historically used to back a country’s currency.
    • Holding gold reserves is seen as a way to hedge against inflation, currency fluctuations, and other economic uncertainties.

    Significance of Gold Reserves

    • Economic stability: Gold reserves are often seen as a symbol of economic stability and confidence, especially during times of financial crisis or uncertainty. Holding gold reserves can help central banks to maintain the stability of their currency and the economy.
    • Diversification: Gold is considered a safe-haven asset and can provide diversification to a country’s foreign exchange reserves portfolio. Diversification helps to reduce the risks associated with any single asset class.
    • Hedge against inflation: Gold is considered an inflation hedge as its value tends to increase during times of high inflation or when the value of a currency is depreciating. Holding gold reserves can help to protect the purchasing power of a country’s currency.
    • International transactions: Gold reserves can be used as collateral for loans and international transactions. Countries can also use gold reserves to settle international debts.
    • Confidence-building: The level of a country’s gold reserves can be an indicator of the country’s financial strength and stability. High levels of gold reserves can help to build confidence among investors and other countries.

    Breakdown of RBI’s gold reserves

    • Total: As of March-end 2023, the RBI held 794.64 metric tonnes of gold, including gold deposits of 56.32 metric tonnes.
    • Domestic and abroad: Out of the total gold reserves, 437.22 metric tonnes of gold is held overseas in safe custody with the Bank of England and the Bank of International Settlements (BIS), while 301.10 metric tonnes of gold is held domestically.

    How much do these gold reserves value?

    • In value terms (USD), the share of gold in the total foreign exchange reserves increased from about 7.06% as of September-end 2022 to about 7.81% as of March-end 2023, as per the RBI’s report.
    • During the half-year period, the reserves increased from $532.66 billion as of September-end 2022 to $578.45 billion as of March-end 2023.

     

    New terminologies

    Foreign currency assets (FCA): a component of forex reserves that includes major traded currencies held by the central bank of a country.

    Special drawing rights (SDRs): an international reserve asset created by the International Monetary Fund (IMF) to supplement member countries’ official reserves.

    Reserve tranche position: a component of IMF’s financial accounts that represents a country’s reserve position in the organization.

    Back2Basics: Foreign Exchange (Forex) Reserve

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

    India’s forex reserves cover:

    1. Foreign Currency Assets (FCAs)
    2. Special Drawing Rights (SDRs)
    3. Gold Reserves
    4. Reserve position with the International Monetary Fund (IMF)

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  • India’s delayed implementation of mandatory Drug Recall Law

    Central Idea

    • Abbot published a public notice in newspapers, alerting people about a mislabelled batch of medicine that it had inadvertently shipped to the market.
    • Such recalls take place regularly in the US but it is uncommon in India for domestic or foreign pharmaceutical companies to recall substandard or mislabelled drugs.

    Recall of Medicines: India story

    India has been mulling the creation of a mandatory recall law for substandard drugs since 1976.

    • Drugs Consultative Committee (DCC) meeting in 1976: Resolved to have greater cooperation between state drug controllers to recall and destroy drugs that failed tests.
    • DCC meetings in 1989, 1996, 1998, 2004, 2007, and 2011: Issue of recalls came up but resulted in no amendments to the Drugs & Cosmetics Act.
    • CDSCO proposes draft recall guidelines in 2012: National regulator lacks power to convert guidelines into binding law
    • DCC and Drugs Technical Advisory Board meetings in 2016 and 2018-2019: Issue of recalls resurfaces but India still lacks a recall law, 46 years on.

    Why there is no concrete law in India?

    • Complex drug regulatory issues: The Drug Regulation Section of the Union health ministry is not equipped to tackle complex drug regulatory issues.
    • Multiple agencies: India has highly fragmented regulatory structure, with each state having its own drug regulator.
    • Exposing the loopholes: India’s drug regulators are aware that a mandatory drug recall system, will bring to public attention the poor state of affairs in India’s pharmaceutical industry.
    • Evading accountability: The delay in implementing a recall law exposes the lack of accountability and interest in protecting public health.

    Consequences of delay

    • Drug failure hazard: Dozens of drugs fail random testing in government laboratories every month.
    • Substandard quality: The lack of a mandatory recall law means substandard drugs, even those with dangerous consequences for consumers, can circulate in the market.
    • Public health crisis: People, including children, are likely dying or suffering from adverse health events because substandard drugs are not swiftly removed from the market.

    Reasons behind

    The lack of a mandatory recall law in India can be attributed to various factors, including-

    1. Lack of expertise
    2. Apathy
    3. Vested interests in enabling the growth of the pharmaceutical industry.

    Way forward

    • Implementation of a mandatory drug recall law: The Indian government can take steps to implement a mandatory drug recall law. This law should have teeth to hold pharmaceutical companies accountable for their products.
    • Centralization of regulatory powers: To create an effective recall mechanism, the responsibility of recalling drugs has to be centralized, with one authority that has the legal power to hold companies liable for failures to recall drugs from across the country, and further, to also search and seize batches of failed medicine.
    • Streamlining of regulatory processes: The Indian government can take steps to streamline regulatory processes to reduce the time taken for approvals and ensure that drugs are tested thoroughly before they enter the market.
    • Capacity building of regulatory bodies: The Drug Regulation Section of the Union health ministry should be equipped with the necessary resources, expertise and mandate to tackle complex drug regulatory issues.
    • Encouragement of ethical pharmaceutical companies: The Indian government can encourage ethical pharmaceutical companies by providing incentives to companies that comply with regulatory standards, penalizing those that do not, and promoting transparency in drug pricing.

     

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  • The Future of the US Dollar As a World Reserve Currency

    US Dollar

    Central Idea

    • The status of the US dollar as the world reserve currency has been a topic of speculation, especially as China, India, and Russia explore alternative currencies for international trade. However, the demise of the dollar as the world reserve currency is unlikely to happen anytime soon.

    Rise of the dollar: Historical Context

    • The rise of the dollar as the world’s preferred currency aligns with the rise of the US as one of the world’s strongest economies with a deep financial system and stable government.
    • Though the position of the dollar has been challenged over time by the Great Britain Pound, the euro, and other currencies, the dollar has maintained its dominance.

    What is the current status of Dollar as forex reserve?

    • According to reports from the International Monetary Fund, the dollar’s share of foreign exchange reserves has fallen over time from 80% in the 1970s to about 60% in 2022.
    • The euro has made up for about 20% of the remaining 40% room created by this fall.
    • Smaller currencies such as the Australian and Canadian dollars, Swedish krona, and South Korean won have claimed their share in the portfolios of various countries’ foreign exchange reserves making up most of the remaining gap of 20%, with Chinese currency taking up the rest.

    How Dollar maintained its dominance as a reserve currency?

    • The strength of the U.S. economy: The U.S. has one of the world’s strongest economies, with a deep financial system and a stable government. This has contributed to the popularity of the dollar as a preferred currency for international trade and as a reserve currency.
    • Demand for dollar-denominated assets: Many countries hold U.S. government debt as a hedge against currency fluctuations affecting the valuation of their reserves. Additionally, many currencies are pegged to the U.S. dollar and some countries use the dollar as their own currency. This has meant that a huge proportion of U.S. dollars reside outside the U.S.
    • The dollar premium: The U.S. government debt is in high demand worldwide, which allows it to issue debt at the lowest interest rate. This relaxes the fiscal constraint substantially, boosting the debt-issuing government’s capacity to borrow more without having to deal with the negative effects of such borrowing on the domestic economy. This phenomenon is often referred to as the dollar premium.
    • No serious competition: Although the position of the dollar as the world currency has been challenged from time to time by other currencies, no currency has emerged as a serious contender. The only serious competitor at this point is the euro, which stands second but at quite a distance.

    Facts for prelims

    Common Currency or Reciprocal Trading Arrangement?

    • A common currency or reciprocal trading arrangement refers to an agreement between two or more countries to use a common currency or to trade with each other using their own currencies without the involvement of a third-party currency, such as the US dollar.
    • The purpose of such an arrangement is to increase trade among the participating countries and reduce the reliance on a single currency for international transactions.
    • The idea of a common currency or reciprocal trading arrangement has been discussed among various countries, including China, India, and Russia, as an alternative to the US dollar-dominated international financial system.

    What are the Factors supporting the US Dollar?

    • Status as Reserve Currency: The US Dollar is still the world’s most dominant reserve currency, which means that central banks and governments around the world hold significant quantities of it as part of their foreign exchange reserves.
    • Large Financial Market: The US has one of the largest and most liquid financial markets in the world, which makes it an attractive destination for foreign investment.
    • Safe Haven Status: The US Dollar is often seen as a safe haven during times of global economic uncertainty, due to the perceived stability of the US economy and political system.
    • Demand for US Treasury Bonds: The US government issues Treasury bonds, which are widely held by foreign governments and investors as a low-risk investment.
    • Petrodollars: The US Dollar is used as the currency of choice for global oil trading, which means that countries that buy oil from the OPEC countries must hold US Dollars to pay for it. This leads to a constant demand for US Dollars.
    • Military and Political Influence: The US has a significant military and political influence on the world stage, which gives it leverage in global trade negotiations and financial institutions such as the IMF and World Bank.

    US Dollar

    Challenges facing the US Dollar

    • Increased global competition: As more countries try to shift away from the US dollar, there is increased competition from other currencies such as the euro, the Chinese renminbi, and even cryptocurrencies. This could potentially reduce the demand for the US dollar.
    • Rising US debt levels: The US has been running persistent budget deficits and adding to its national debt for many years. This could lead to inflation and a loss of confidence in the US dollar, particularly if investors begin to worry about the US government’s ability to service its debt.
    • Geopolitical risks: Political tensions and instability around the world could also undermine the US dollar’s status as the world’s reserve currency. For example, sanctions imposed by the US on other countries could prompt them to look for alternatives to the US dollar in international trade.
    • Emerging technologies: The rise of digital currencies and blockchain technology could challenge the dominance of traditional currencies, including the US dollar. If cryptocurrencies become more widely accepted, they could potentially weaken demand for the US dollar as a global reserve currency.

    Future of the US Dollar

    • Despite the challenges, the US dollar is likely to remain the dominant reserve currency for the foreseeable future due to its widespread use in international trade, its deep and liquid financial markets, and its historical stability.
    • The euro and other currencies may continue to gain ground, but are unlikely to displace the dollar anytime soon.
    • The growing use of digital currencies, such as Bitcoin, may also pose a challenge to the traditional reserve currency system in the future, but it remains to be seen how this will play out.

    Facts for prelims: Concept box from civilsdaily

    What is mean by closed capital account?

    • A closed capital account is a situation where a country has restrictions on the flow of capital in and out of its borders. This means that the government regulates and limits the movement of funds across its borders.
    • Closed capital accounts are often implemented to protect the domestic economy from external shocks and to maintain the stability of the local currency.
    • China, for example, has a relatively closed capital account as it imposes strict controls on capital inflows and outflows.

    Conclusion

    • The run of the US dollar as an international reserve currency is far from over. The only serious contender at this point is the euro, which stands second but at quite a distance. The possibility of the Chinese currency or any other common currency becoming a serious contender is thin and distant at this point. The current system may not be optimal and should be improved, but expecting a common currency between China, India, and Russia or any such reciprocal trading arrangement to replace the US dollar would be an exaggeration.

    Mains Question

    Q. The status of the US dollar as the world reserve currency has been a topic of speculation, especially as China, India, and Russia explore alternative currencies for international trade. In this light discuss the challenges faced by US dollar and viability of reciprocal trading arrangements.

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    Also Read:

    The Rising Demand for De-Dollarisation