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GS Paper: GS3

  • Ranipur TR: 4th Tiger Reserve in UP

    ranipur

    The UP cabinet approved the notification of Ranipur Tiger Reserve under Section 38(v) of the Wild life (Protection) Act of 1972.

    About Ranipur WS

    • Ranipur WS, was founded in 1977, is one of the attractions of Chitrakoot district in Uttar Pradesh.
    • It is spread over 230 sq.km and is noted for its diverse wildlife, but is not very frequently visited by tourists because of the difficult access.
    • The Ranipur TR has tropical dry deciduous forests and is home to fauna such as tigers, leopards, sloth bears, spotted deer, sambhar, chinkara and a number of birds and reptiles, the statement added.
    • The Ranipur TR will be the fourth in UP, after Dudhwa, Pilibhit and Amangarh (buffer of Corbett Tiger Reserve).
    • It will also be the first in the state’s portion of the Bundelkhand region, which it shares with neighbouring Madhya Pradesh.

    Why make it a tiger reserve?

    • RWS has no tigers of its own.
    • But pugmarks of the animals are frequently seen there as tigers from nearby Panna frequent it.

     

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  • Advantage of Market Based Economic Dispatch

    Market Based Economic DispatchContext

    • The game changing scheme is being proposed by the central government in power sector governance. The scheme under consideration is the market-based economic dispatch (MBED). When it comes to any drastic change in the power sector, a clash between the Centre and the states is inevitable.

    What is Market Based Economic Dispatch (MBED)?

    • Market Based Economic Dispatch (MBED) is new approach towards power distribution to help distribution companies save costs and transition to a new form of power market.
    • It is a shift to a centralised framework, marks a radical departure from the current decentralised, voluntary pool-based electricity market.

    Market Based Economic DispatchWhat is the framework under MBED?

    • The cheapest power from across the country will be dispatched to meet the system wide demand. The architecture would also lead to a “Market clearing price”.
    • Sellers and buyers will place their bids for the day market, and an outcome of this will be the discovery of the market clearing price.
    • This process is expected to generate significant savings for consumers.

    What is the Present system of power Distribution?

    • Under the present regime, each distribution company (Discom) is bound by the power purchase agreements (PPAs) that it holds.
    • It can schedule power only from its own PPAs, starting from the cheapest PPA and then moving up; it cannot schedule power from the PPA of some other distribution company.

    Market Based Economic DispatchWhat are the drawbacks of present system?

    • Financial Burdon:
    • The Indian government responded to COVID-19’s economic shock with a stimulus package of Rs.20-lakh crore, out of which Rs.90,000 crore was earmarked for discoms (later upgraded to Rs.1,25,000 crore). While it was called a stimulus, it is really a loan, meant to be used by discoms to pay off generators.
    • Discoms owe one lakh crore rupees to generators, and without such an infusion the chain will collapse.
    • States are defaulters:
    • State governments are the biggest defaulters, responsible for an estimated a third of trade receivables, besides not paying subsidies in full or on time.
    • On an annual cash flow basis, the shortfall in subsidy payments appears very low, only about 1% but cumulative unpaid subsidies, with modest carrying costs, make discoms poorer by over Rs.70,000 crore just over the last 10 years.

    Market Based Economic DispatchWhat will be the Advantages of MBED?

    • Centralized approach: The centralised dispatch will be done with the assistance of electricity exchanges. Each discom and each generator will place a bid in the day-ahead market of the electricity exchanges, which will indicate how much power is being demanded/ supplied at what price.
    • Pan India market: These bids will enable the load dispatcher to construct a pan India demand and supply curve, the intersection of which will determine the market clearing price (MCP). All generators whose variable cost of generation is below the MCP will be asked to dispatch and all of them will receive the same MCP irrespective of what they had bid. Generators whose variable cost is higher than the MCP will sit idle.
    • No loss to discom: The MBED is so devised that its operation will not affect the current finances of either the discoms or the generators for the following reasons.
    • First, the fixed cost of the generators will still be paid by the discoms outside the market as determined by the regulator.
    • Second, if the MCP comes out to be Rs 3 per unit, and if in the case of any PPA, the variable cost is Rs 2.75 per unit, then the generator will compensate the discom to the extent of Rs 0.25 per unit. Similarly, if the MCP so determined is Rs 2.50 per unit, then the discom will compensate the generator to the extent of Rs 0.25 per unit.
    • Increasing efficiency: The logic is that by adopting MBED, only the relatively efficient plants will generate, without affecting the revenues of either the discoms or generators. Hence, the total cost of generation under the MBED system would be less.
    • Less pollution: There would be less coal consumption and less carbon dioxide injected into the atmosphere.
    • Easy integration with renewable: It would also mean less movement of coal leading to decongestion of railway tracks. Further, there would be enhanced renewable integration since the balancing area would shift from state to national level.
    • Single market clearing price (MCP): Incidentally, since there are three electricity exchanges in operation today, there would be three different MCPs determined. What we need is a single MCP for which there will be an institution called the “market coupler”. It will be the job of the coupler to determine a national MCP based on what has arrived at the three different exchanges.

    Why states are opposing?

    • High generation cost: The reason is the state-owned generators are relatively inefficient and may have to sit idle as their variable cost of generation is likely to be more than the MCP.
    • Political backlash: Today, the states are operating their own generators to the hilt, even though they are inefficient, and drawing only the balance from the more efficient interstate generating stations. Keeping state generators idle has its own political implications and no state would be enamoured of this idea.

    Conclusion

    • Power distribution companies (discom) are sinkhole of government finances. Every year budgetary support is needed to this loss-making companies , With due consultation, all states and union territories need to adopt and implement the MBED and save the resources for other development activities.

    Mains Question

    Q. India has became the power surplus nation, however power distribution and financial unsustainability is still a nightmare for union and states. Elaborate.

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  • Places in news: Ram Setu

    ram setu

    A movie has once again generated buzz around the chain of shoals off the southeast coast of India that many believe is the Ram Setu or the bridge to Lanka mentioned in the Ramayana.

    The Ram Setu

    • The Ram Setu, also known as Adam’s Bridge, is a 48-km chain of limestone shoals between Rameswaram on India’s southeast coast and Mannar Island near Sri Lanka’s northwest coast.
    • The structure has significance in both Hindu and Muslim mythology – while Hindus believe this is the bridge (Setu) built by Lord Ram and his army to cross to Lanka and fight Ravan.
    • As per Islamic legend, Adam used this bridge to reach Adam’s Peak in Sri Lanka, where he stood on one foot for 1,000 years in repentance.

    Factual details of the bridge

    • Scientists believe Ram Setu is a natural structure formed due to tectonic movements and sand getting trapped in corals.
    • However, over the years, evidence has been offered to claim that the bridge is man-made.
    • The bridge is not entirely natural, Hindu right wing outfits argue, which proves that it was indeed built by Lord Ram.

    When was the structure came into highlights?

    • The Ram Setu issue snowballed into a major controversy when the Sethusamudram Project, flagged off during the UPA I government.
    • The project aimed to reduce travel time between the eastern and western coasts of India, as ships would no longer have to circle Sri Lanka to travel between the Bay of Bengal and Arabian Sea.
    • The project was perceived as an attack on Hindu sentiments.
    • Various studies have been proposed on the Ram Setu, with the most recent being in 2021, when the government approved an underwater research project to ascertain its origins.

    Ecological arguments against the project

    • The Sethusamudram project has been opposed on environmental grounds.
    • Some claims that it will harm marine life, and that dredging of the line of shoals will make India’s coast more vulnerable to tsunamis.
    • In March 2018, the Centre told the Supreme Court that the Ram Setu will not be affected in the execution of the Sethusamudram Shipping Canal project.

    NASA images, and other proofs

    • Images of the Ram Setu clicked by NASA have been used over and over again to claim that this proves the existence of a man-made bridge.
    • NASA has repeatedly clarified that it does not agree with these claims.
    • Remote sensing images or photographs from orbit cannot provide direct information about the origin or age of a chain of islands.
    • It certainly cannot be determined whether humans were involved in producing any of the patterns seen.

     

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  • Jaldoot App to capture data on Groundwater Levels

    With the rapidly declining water table threatening to push many regions into drought, the Union government on has launched a mobile application — Jaldoot.

    Jaldoot App

    • Jaldoot is jointly developed by the Rural Development and Panchayati Raj Ministries to monitor the groundwater levels across the country.
    • The App will enable Gram Rojgar Sahyak to measure the water level of well twice a year pre-monsoon and post-monsoon.
    • Jaldoots, that is, officers assigned to measure the water levels, should also upload the geo-tagged photographs through the app on every occasion of measurement.
    • This Mobile app will work in both online and offline mode.
    • So water level can be captured even without internet connectivity and captured date will be stored in mobile and when mobile comes in the connectivity area, data will synchronize with the central server.

    Utility of the App

    • The despite promoting watershed development, afforestation, waterbody development and renovation, rainwater harvesting like initiatives, the ground water level in various parts of the country has depleted.
    • The regular data to be input by the Jaldoots would be integrated with the database of National Water Informatics Centre (NWIC), which can be utilised for analysis and display.
    • The app will facilitate in observing water tables across the country and the resulting data can be utilized for Gram Panchayat Development Plan and Mahatma Gandhi NREGA Plans.

     

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  • Carl-Gustaf M4 to be produced in India

    gustaf

    Swedish defense major SAAB announced plans to manufacture its Carl-Gustaf M4 weapon system in India.

    What is the Carl-Gustaf M4?

    • The Carl-Gustaf recoilless rifle is a man-portable, multi-role weapon system that allows dismounted soldiers to effectively deal with multiple challenges on the modern battlefield.
    • A proven performer in battle, the Carl-Gustaf M4 is said to be adaptable and flexible.
    • The Indian Army has been using the iconic Carl-Gustaf since 1976 and currently operates the Mk2 and Mk3 versions.

    Key features of Carl-Gustaf M4

    • Lightweight, robust, reliable, effective and easy to use
    • Tactical flexibility through a wide range of ammunition
    • Combat proven system
    • Ammunition: Anti-armour, anti-structure, anti-personnel, support

    Why in news?

    • In recent years, the Indian government has taken several steps to boost the defense manufacturing sector under the ‘Make in India’ and ‘Atmanirbhar Bharat’

     

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  • Sustainable port development promises blue economy to bloom

    Context

    • It is politically hard, but developmentally critical, to run port development projects with coastal management sustainably.

    portWhat is a port?

    • A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manchester and Duluth; these access the sea via rivers or canals.

    What is meant by port management?

    • A port management analysis involves an understanding of the port conditions, including intra-port distribution, and routes and hinterland connections outside the port.

    Why ports are important?

    • Ports infrastructure is key to the development of any nation. India has a coastline spanning about 7,500 km. around 90 percent of India’s external trade by volume and 70 percent by value are handled by ports.

    portWhat are concerns with port projects?

    • Displacement: Some 350 families that have lost homes to coastal erosion last year, and those living in makeshift schools and camps are just a foretaste of things to come if coastal erosion and extreme cyclones continue unabated.
    • Ecological impact: A further danger is an irreversibly destroyed ecology, triggering deadlier hazards of nature. Ports without adequate safeguards in a highly delicate ecology unleash destruction on marine life and the livelihoods of the local population.
    • Coastal erosion: Visakhapatnam and Chennai show how siltation, coastal erosion and accretion can be exacerbated by deepening of harbour channels in ecologically sensitive areas.
    • Oil spills: During the operation of ports, spillage or leakages from the loading and unloading of cargo and pollution from oil spills are common due to poor adherence to environmental laws and standards.
    • Ecosystem threat: The water discharged during the cleaning of a ship and the discharge of ballast water is a threat to marine ecosystems
    • Impact on fisheries: Dredging cause’s environmental problems (increased sedimentation) affecting local productivity of the local waters and its fisheries

    Value addition example

    A just published study shows that during 2006-20, the sea gobbled some 2.62 square kilometres or close to 650 acres from the Thiruvananthapuram coast alone.

    portSteps to take

    • Compensation: The first order of business, as in infrastructure projects worldwide, is that the project provides compensation to the displaced people and restores their rights.
    • Reversing marine damage: Second, the gross neglect of the damage to invaluable marine biodiversity must be redressed with an acceptable EIA, including inputs from experts in biology, ecology, and oceanography.
    • Safeguard to place: Third, there needs to be an independent assessment of safeguards that port authorities must put in place as a precondition for any further construction.
    • Blue Economy:Blue Economy as a concept includes all the economic activities related to oceans, seas, and coastal areas and emerges from a need for integrated conservation and sustainability in the management of the maritime domain.

    Way forward

    • Master plan: Countries should adopt a National Long-term Mater plan addressing the aspects of smarter, greener, safer sustainable port development and productivity improvement.
    • Planning: Port development and investment should be driven by setting specific and realistic goals, such as building a stable infrastructure focused on reducing trade costs and contribute to achieving sustainable transport.
    • Cooperation of multiple sectors: In order to establish a comprehensive port development master plan, cooperation with financial, environmental, technical, energy, transportation and urban development authorities is essential and must reflect the needs of users, including shippers and shipping lines.

    Conclusion

    • To address existing challenges, we should provide research, analysis and technical assistance to help ports and the maritime transport sector especially in developing countries to improve operations and become more sustainable and resilient to crises, including climate change.

    Mains question

    Q. What do you understand by sustainable port development and port productivity? Discuss the challenges in achieving the same along with way forward.

     

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  • Foreign Trade Policy

    The government has extended the launch of new Foreign Trade Policy (FTP) (2022-27) by six more months and would continue with the existing one.

    Why such delay in Foreign Trade Policy?

    • Geopolitical uncertainty: The geo-political situation is not suitable for long-term foreign trade policy, said Union Commerce Minister.
    • Global recession: Currently, fears of a recession in major economies like the US and Europe have escalated a panic among investors.
    • Decline in USD inflows: Foreign investors have begun to pull back their money from equities.
    • Rupee depreciation: The US Dollar is at a 22-year high, while the Rupee hit a new all-time low of $81.6.
    • Huge trade deficit: The trade deficit widened by more than 2-folds to $125.22 billion (April – August 2022) compared to $53.78 billion in the same period last year.

    What is a Foreign Trade Policy?

    • India’s Foreign Trade Policy (FTP) is a set of guidelines for goods and services imported and exported.
    • These are developed by the Directorate General of Foreign Trade (DGFT), the Ministry of Commerce and Industry’s regulating body for the promotion and facilitation of exports and imports.
    • FTPs are enforceable under the Foreign Trade Development and Regulation Act 1992.

    What is India’s Foreign Trade Policy?

    • In line with the ‘Make in India,’ ‘Digital India,’ ‘Skill India,’ ‘Startup India,’ and ‘Ease of Doing Business initiatives, the Foreign Trade Policy (2015-20) was launched on April 1, 2015.
    • It provides a framework for increasing exports of goods and services, creating jobs, and increasing value addition in the country.
    • The FTP statement outlines the market and product strategy as well as the steps needed to promote trade, expand infrastructure, and improve the entire trade ecosystem.
    • It aims to help India respond to external problems while staying on top of fast-changing international trading infrastructure and to make trade a major contributor to the country’s economic growth and development.

    Issues with FTP (2015-2020)

    • Acting on Washington’s protest, a WTO dispute settlement panel ruled in 2019 that India’s export subsidy measures are in violation of WTO norms and must be repealed.
    • Tax incentives under the popular Merchandise Exports from India Scheme (MEIS) (now renamed as RODTEP Scheme)and Service Exports from India Scheme (SEIS) programmes were among them.
    • The panel found that because India’s per capita gross national product exceeds $1,000 per year, it may no longer grant subsidies based on export performance.

    Way forward

    • WTO-compliance: With incentives under MEIS and SEIS in the cloud, WTO-compliant tax benefits are a must.
    • Access to credit: Credit availability has long been a need of exporters, particularly MSMEs.
    • Infrastructure upgrade: China’s network of ports, motorways, and high-speed trains, which are among the greatest in the world, is one of the reasons it is a manufacturing and export powerhouse.
    • Digitization and e-commerce boost: India requires innovative trading procedures as a result of Covid-19 breaking old supply channels.

     

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  • In news: Rotterdam Convention

    International trade of two new hazardous pesticides — Iprodione and Terbufos — has been recommended for “prior informed consent” (PIC) procedure under the Rotterdam convention.

    Why in news?

    • In India, the use of these chemicals was permitted by the 2015 Anupam Verma committee report. The country is among the largest exporters of Terbufos.
    • The chemicals are dangerous for humans and aquatic animals.

    Rotterdam Convention

    • The Rotterdam Convention is formally known as the Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade.
    • It is a multilateral treaty to promote shared responsibilities in relation to importation of hazardous chemicals.
    • The convention promotes open exchange of information and calls on exporters of hazardous chemicals to use proper labelling, include directions on safe handling, and inform purchasers of any known restrictions or bans.
    • Signatory nations can decide whether to allow or ban the importation of chemicals listed in the treaty, and exporting countries are obliged to make sure that producers within their jurisdiction comply.
    • India is a party to the convention, with 161 other parties.

    What is the Prior Informed Consent (PIC) procedure?

    • The PIC procedure is a mechanism for formally obtaining and disseminating the decisions of importing parties on their willingness to receive future shipments of hazardous chemicals.
    • The PIC procedure is a mechanism for formally obtaining and disseminating the decisions of importing Parties as to whether they wish to receive future shipments of those chemicals listed in the Convention.
    • For each of the chemicals listed in Annex III and subject to the PIC procedure a decision guidance document (DGD) is prepared and sent to all Parties.
    • All Parties are required to take a decision as to whether or not they will allow future import of each of the chemicals in Annex III of the Convention.
    • These decisions are known as import responses.

    Which are the new chemicals listed?

    • Iprodione, a fungicide used on vines, fruits, trees and vegetables, has been classified as carcinogenic and toxic for reproduction.
    • Terbufos is a soil insecticide used commonly on sorghum, maize, beet and potatoes. It has also been found to pose risk to aquatic organisms due to its toxicity.
    • Both pesticides, which are used in agriculture, are known for their harmful impacts on human health and the environment.

     

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  • Asian Palm Oil Alliance (APOA) formed by 5 South Asian Countries

    Edible oil trade associations from five palm oil importing countries in South Asia – India, Pakistan, Sri Lanka, Bangladesh and Nepal – on Thursday announced the setting up of Asian Palm Oil Alliance (APOA).

    What is Oil Palm?

    • Palm oil is an edible vegetable oil derived from the mesocarp of the fruit of the oil palms.
    • The oil is used in food manufacturing, in beauty products, and as biofuel.

    What is APOA?

    • Through APOA, the countries aim at safeguarding the economic and business interests of the palm oil consuming countries and will work towards increasing the consumption of palm oil in member countries.
    • The idea is to gain collecting bargaining power and make imports sustainable.
    • APOA held its first general body meeting on the side-lines of the Globoil Summit.
    • The industry associations of Asian palm oil importing countries, unlike their counterparts in Europe, are not involved in shaping the global discourse on sustainable palm oil in a collective way.
    • The alliance would work towards ensuring that palm oil is recognised as a high-quality, economical, and healthy vegetable oil and to change the negative image of palm oil.

    Why such move?

    • India’s annual imports of edible oil is around 13-14 million tonne (MT).
    • Around 8 MT of palm oil is imported from Indonesia and Malaysia, while other oils, such as soya and sunflower, come from Argentina, Brazil, Ukraine and Russia.
    • Asia accounts for around 40% of the global palm oil consumption while Europe accounts for 12% of palm oil trade.
    • Indonesia and Malaysia are the biggest palm oil exporters in the world.
    • India is the largest importer of palm oil in Asia, accounting for 15% of global imports, followed by China (9%), Pakistan (4%) and Bangladesh (2%).

    Try this PYQ:

    Q.Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

    (a) Spices

    (b) Fresh fruits

    (c) Pulses

    (d) Vegetable oils

     

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  • Electricity Amendment Bill 2022 – Addressing the transition and equity

    electricityContext

    • Concerns of states on some provisions of the new Electricity Bill are justified. But the legislation proposes welcome correctives to longstanding problems of the power sector.

    Important provisions of the bill

    • Payment security: The Bill provides that electricity will not be scheduled or despatched if adequate payment security is not provided by the discom.   The central government may prescribe rules regarding payment security.
    • Contract enforcement: The Bill empowers the CERC and SERCs to adjudicate disputes related to the performance of contracts.  These refer to contracts related to the sale, purchase, or transmission of electricity.  Further, the Commissions will have powers of a Civil Court.
    • Renewable purchase obligation: The Act empowers SERCs to specify renewable purchase obligations (RPO) for discoms.  RPO refers to the mandate to procure a certain percentage of electricity from renewable sources.  The Bill adds that RPO should not be below a minimum percentage prescribed by the central government.  Failure to meet RPO will be punishable with a penalty between 25 paise and 50 paise per kilowatt of the shortfall.
    • Selection committee for SERCs: Under the Act, the Chairperson of the Central Electricity Authority or the Chairperson of the CERC is one of the members of the selection committee to recommend appointments to the SERCs.  Under the Bill, instead of this person, the central government will nominate a member to the selection committee.  The nominee should not be below the rank of Additional Secretary to the central government.
    • Composition of Commissions and APTEL: The Bill increases the number of members (including the chairperson) in SERCs from three to four.  Further, at least one member in both the CERC and SERCs must be from law background.  Under the Act, Appellate Tribunal for Electricity (APTEL) consists of a chairperson and three other members.  The Bill instead provides that the APTEL will have three or more members, as may be prescribed by the central government.

    State apprehensions of the bill

    • Multi state license: The clause pertaining to applicants seeking a distribution licence in more than one state. It states that the Central Electricity Regulatory Commission (CERC), and not the SERC, will grant the licence. This is problematic because a SERC is likely to be more aware of the field-level conditions in a state than its central counterpart.
    • Centre can bypass state: The Bill has a provision empowering the Centre to give directions directly to the SERCs. Till now, the CERC received instructions from the Centre and the SERCs were under the state. The new Bill enables the Centre to bypass state governments. It’s not surprising that this is a matter of concern for the states.
    • Direct appointment by centre: The Bill states that the SERC chairperson will now be a nominee of the central government and will be an additional secretary-level official. This gives the impression that the Centre is trying to control the appointments to the SERCs.

    electricity

    Why the bill is important?

    • Compensation clause: The Bill states that if power purchase agreement PPAs are renegotiated, the affected party has to be compensated within 90 days from the date of submission of the petition.
    • Uniformity in tariffs revision: New tariffs have to be made applicable from the beginning of the financial year. New tariffs often come into force in the middle of the financial year (due to delays in the issuing of orders by SERCs). This means that discoms do not earn their full revenues leading to cash flow problems.
    • Easy tariff petition processing now: The Bill has proposed a reduction in the time for processing tariff petitions from 120 days to 90 days.
    • Suo moto jurisdiction: Regulatory commissions have been given suo motu jurisdiction if tariff petitions are not filed within 30 days of the stipulated time. This too is a step in the right direction.
    • More teeth to load dispatcher: the Bill proposes to give more teeth to the national load dispatcher. We need to strengthen the load dispatcher for the smooth functioning of the grid, especially with a huge renewable capacity where intermittency of generation is a major issue in the offing.

    Conclusion

    • The rollout of the proposed amendments through a consensus-based approach would go a long way in overhauling the weakest link in the nation’s power supply chain.

    Mains question

    Q. Electricity Bill 2022 is a remedy worse than the disease afflicting India’s power sector. Critically analyse.

     

     

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