💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

GS Paper: GS3

  • What is Bluebugging?

    Bluebugging

    Cybersecurity experts note that apps that let users connect smartphones or laptops to wireless earplugs can record conversations, and are vulnerable to hacks through a process called Bluebugging.

    What is Bluebugging?

    • It is a form of hacking that lets attackers access a device through its discoverable Bluetooth connection.
    • Once a device or phone is blue-bugged, a hacker can listen to the calls, read and send messages and steal and modify contacts.
    • It started out as a threat for laptops with Bluetooth capability. Later hackers used the technique to target mobile phones and other devices.
    • Independent security researcher Martin Herfurt blogged about the threat of bluebugging as early as 2004.
    • He noted that the bug exploited a loophole in Bluetooth protocol, enabling it to download phone books and call lists from the attacked user’s phone.

    How does bluebugging hack devices?

    • Bluebugging attacks work by exploiting Bluetooth-enabled devices.
    • The device’s Bluetooth must be in discoverable mode, which is the default setting on most devices.
    • The hacker then tries to pair with the device via Bluetooth. Once a connection is established, hackers can use brute force attacks to bypass authentication.
    • They can install malware in the compromised device to gain unauthorised access to it.
    • Bluebugging can happen whenever a Bluetooth enabled device is within a 10-metre radius of the hacker.
    • However, according to a blog by VPN service provider NordVPN, hackers can use booster antennas to widen the attack range.

    Why is it a big threat?

    • Even the most secure smartphones like iPhones are vulnerable to such attacks.
    • Any app with access to Bluetooth can record users’ conversations with Siri and audio from the iOS keyboard dictation feature when using AirPods or Beats headsets, some app developers say.
    • Through Bluebugging, a hacker can gain unauthorised access to these apps and devices and control them as per their wish.

    How can one prevent bluebugging?

    Here are some of the ways to prevent bluebugging-

    1. Turning off Bluetooth and disconnecting paired Bluetooth devices when not in use,
    2. Updating the device’s system software to the latest version,
    3. Limiting the use of public Wi-Fi, and
    4. Using VPN as an additional security measure

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • What is Wet Leasing of Aircraft?

    wet

    In efforts to boost international air traffic, the civil aviation ministry has allowed Indian airlines to take wide-body planes on wet lease for up to one year.

    What is Wet Leasing?

    • Wet leasing means taking the plane along with the operating crew and engineers, while dry leasing refers to taking only the aircraft on rent.
    • The technical term for wet leasing is ACMI which stands for aircraft, crew, maintenance and insurance.
    • These are the aspects of the operation that the wet lease airline takes care of, while the airline client will still be responsible for paying for direct operating costs.
    • This includes catering and fuel as well as fees such as airport fees, ground handling charges and navigation fees.
    • Operations of an aircraft on wet lease are more difficult for the Directorate General of Civil Aviation (DGCA) to monitor, which is why it is allowed for shorter durations.

    What are the new rules?

    • The rules had been relaxed, allowing the wet leasing for a year as opposed to the six months permitted so far.
    • Dry leasing was already allowed for up to 12 months, with the option to extend the contract for 12 another year.

    Why has govt extended limit now?

    • The civil aviation ministry’s decision came on a request by the country’s largest airline, IndiGo.
    • It plans for inducting B777 aircraft on wet/damp lease basis during the current winter schedule.
    • The relaxation will be available to all Indian carriers and will be granted based on international destinations they wish to operate to.
    • With Covid-related restrictions lifting, international travel is lifting up, and the wet leasing will allow airlines to fly more routes and rounds.
    • Wide-body planes can accommodate more passengers, thereby boosting revenue.

    Why airlines lease aircraft?

    • About half the planes used by airlines around the world are not owned but leased.
    • Airlines and aircraft operators prefer leasing planes in order to avoid massive lump sum payments that buying them would entail, and to quickly increase capacity, perhaps temporarily, on certain routes or sectors.

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • PR23: A perennial rice variety developed by China

    pr23

    Farmers in China are now growing a perennial variety of rice called PR 22 which does not need to be planted every year.

    What is PR23?

    • Researchers at the Yunnan University have developed a variety of perennial rice named PR23 by cross-breeding regular annual rice Oryza sativa with a wild perennial variety from Africa.
    • Unlike regular rice which is planted every season, PR23 can yield eight consecutive harvests across four years (as these plants with stronger roots grow back vigorously after each harvest).
    • PR23 yields, reported at 8 tons per hectare, are comparable to regular irrigated rice.
    • But growing it is much cheaper since it requires less labour, seeds and chemical inputs.

    Benefits of the variety

    • It can result in remarkable environmental benefits such as soils accumulating close to a ton of organic carbon (per hectare per year) along with increases in water available to plants.
    • It is were preferred by farmers since it saved 58% in labour and 49% in other input costs, over each regrowth cycle.
    • The researchers claim it can transform farming by improving livelihoods, enhancing soil quality and by inspiring research on other grains.
    • The invention could transform rice farming by making it climate-friendly, besides using less of labour and other inputs.

    Why is the discovery of the new variety significant?

    • Rice feeds about half of the world, and its farming and consumption are primarily in Asia.
    • Most crops grown today were once perennial, but bred to be annual, short-duration, to make them more productive.
    • Perennial rice could be a transformational innovation if it proves to be economically sustainable.

    Significance for India

    • India is the world’s second largest rice producer, after China, and the largest exporter with a 40% share in global trade.
    • It is grown during both summer and winter crop seasons.
    • Perennial rice can reduce the drudgery of annual trans-plantation, a back-breaking task, and generate savings on seeds and other inputs.
    • China’s early success has another lesson for India: to raise investments in public research and agricultural sciences.
    • This can help counter the impact of climate change on food security and rural incomes.

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Assessing The Impact of Falling Rupee

    Context

    • The Indian rupee has been quite the controversial newsmaker this year. Having fallen more than 11 percent against the US dollar so far in 2022, the rupee breached the much-feared 80-mark in July and went on to set record lows, touching 83 to a dollar late in October.

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    Impact on trade

    • Widening trade deficit: The first phenomenon is one of the biggest worries caused by a falling rupee, a rise in import costs, threatening higher inflation and a widening trade deficit.
    • Advantage for export: However, there also exists a ray of hope, a depreciated currency implies cheaper, more competitive exports and therefore, a possible export-led boost to the domestic economy. The net effect of these opposing forces would determine the impact of a depreciating currency on an economy.
    • Robust Purchasing Manager’s Index (PMI): The import bill has risen not only on the back of a raging dollar and hardening crude prices but has also been spurred by strengthening domestic demand and manufacturing, as evidenced by a robust Purchasing Manager’s Index (PMI) of 55.3 in October.
    • Subdued merchandized export: Although service exports have done fairly well in FY 2022-23, merchandise exports have remained subdued and could soon worsen due to economic downturns in Europe and the US.

    Rupee

    Impact on foreign investment

    • Weak rupee low foreign portfolio investors (FPI): The rupee has a complicated relationship with the moody foreign portfolio investors (FPIs). A weaker rupee can discourage FPIs. In turn, FPI outflows can further push the rupee to depreciate.
    • Falling NRI deposits: With the rupee losing value against the dollar, and interest rates around the world rising, NRI deposit flows also fell in the five-month period from April to August 2022, down to US$1.4 billion from US$2.4 billion a year ago.
    • FDI is Rising: Net FDI flows have remained positive and are set to grow, with April-June 2022 seeing an inflow of US$13.6 billion, higher than the same period last year. Even Indian stock markets have remained resilient, particularly on the back of large net-purchases by domestic institutional and retail investors, offsetting the equity sell-off by foreign investors.
    • Negative foreign investment: Net foreign investment (FII) flows did turn negative for a few months in 2022, and while rebounding FPI and resilient FDI do point to a more optimistic opinion of India among foreign investors, foreign investment is absolutely crucial at this juncture in India’s growth story and must be watched closely.

    Rupee

    Efforts taken by RBI

    • Use of forex reserve: In an effort to defend the rupee, the RBI has intervened and sold off some of its foreign exchange reserves. The reserves stood at US$524.52 billion as of 21 October 2022, witnessing a fall of over US$115 billion since the beginning of the year.
    • according to RBI external situation is better: RBI has stated that most external indicators such as external debt to GDP ratio, net international investment position to GDP ratio and the ratio of short-term debt to reserves reflect India’s relatively comfortable position in meeting its external financing requirements–even in contrast to other emerging economies.
    • Careful intervention: Over-tightening of monetary policy and excessive intervention in the currency market can pose significant risks to the country’s growth prospects and the RBI must be careful to intervene just enough to quell volatility, without expending an inordinate amount of reserves.

    Rupee

    Opportunity in crisis

    • Leveraging the growth rate: India has the chance to leverage its relatively healthy growth rates and rising infrastructure and capital expenditure to attract foreign investment, spurring growth and strengthening the capital account.
    • High investor confidence: Investor confidence has been steady, with the country seeing a record high of annual FDI inflows of US$84.8 billion in FY2021-22 in spite of the pandemic and volatile geopolitical scenario.
    • Stability in growth: This confidence needs to be leveraged and by positioning India on the international stage as a thriving and stable haven for investments, both the country’s growth and forex needs can be met.
    • Sufficient policy support is needed: Although the falling rupee has caused worry for a few economic indicators, with sufficient policy support, the domestic economy could emerge as an outlier in a global downturn.

    Conclusion

    • With the United States (US) on a war path to curtail inflation and the supply side stifled by the conflict in Ukraine, even historically strong currencies like the euro and the British pound have plummeted against the raging dollar, more than the rupee. Government and RBI must stay on course of steady growth of economy.

    Mains Question

    Q. Discuss the impact of falling rupee on Trade and foreign investment in India? How India has unique opportunity for growth amidst the crisis around the world?

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • What are Sacred Grooves?

    sacred

    This newscard is an excerpt from the original article published in the Sunday edition of TH.

    What are Sacred Grooves?

    • Sacred groves of India are forest fragments of varying sizes, which are communally protected, and which usually have a significant religious connotation for the protecting community.
    • It usually consists of a dense cover of vegetation including climbers, herbs, shrubs and trees, with the presence of a village deity and is mostly situated near a perennial water source.
    • Sacred groves are considered to be symbols of the primitive practice of nature worship and support nature conservation to a great extent.
    • The introduction of the protected area category community reserves under the Wild Life (Protection) Amendment Act, 2002 has introduced legislation for providing government protection to community-held lands, which could include sacred groves.

    Historical references

    • Indian sacred groves are often associated with temples, monasteries, shrines, pilgrimage sites, or with burial grounds.
    • Historically, sacred groves find their mentions in Hindu, Jain and Buddhist texts, from sacred tree groves in Hinduism to sacred deer parks in Buddhism for example.
    • Sacred groves may be loosely used to refer to natural habitat protected on religious grounds.
    • Other historical references to sacred groves can be obtained in Vrukshayurveda an ancient treatise, ancient classics such as Kalidasa’s Vikramuurvashiiya.
    • There has been a growing interest in creating green patches such as Nakshatravana

    Regulation of activities in Sacred Grooves

    • Hunting and logging are usually strictly prohibited within these patches.
    • Other forms of forest usage like honey collection and deadwood collection are sometimes allowed on a sustainable basis.
    • NGOs work with local villagers to protect such groves.
    • Traditionally, and in some cases even today, members of the community take turns to protect the grove.

    Threats to such grooves

    • Threats to the groves include urbanization, and over-exploitation of resources.
    • While many of the groves are looked upon as abode of Hindu deities, in the recent past a number of them have been partially cleared for construction of shrines and temples.

    Total grooves in India

    • Around 14,000 sacred groves have been reported from all over India, which act as reservoirs of rare fauna, and more often rare flora, amid rural and even urban settings.
    • Experts believe that the total number of sacred groves could be as high as 100,000.
    • They are called by different names in different states:
    1. Sarna in Bihar
    2. Dev Van in Himachal Pradesh
    3. Devarakadu in Karnataka
    4. Kavu in Kerala
    5. Dev in Madhya Pradesh
    6. Devarahati or Devarai in Maharashtra
    7. Lai Umang in Maharashtra
    8. Law Kyntang or Asong Khosi in Meghalaya
    9. Oran in Rajasthan
    10. Kovil Kadu or Sarpa Kavu in Tamil Nadu

    What lies ahead?

    • The groves have great research value in in situ conservation of rare, endangered and threatened plant species.
    • It is high time that public awareness is created about the importance of these sacred groves, developmental activities are banned and the felling of trees or removal of any other vegetation is completely stopped.
    • This is possible only by way of enacting a special law for the protection and management of sacred groves.
    • As the management practices and other rituals vary from state to state, the concerned state governments may promulgate such an act as suitable for the state.
    • The idea should be to protect certain rare, endangered and threatened plant species in the era of global warming and climate change.

     

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Industry urges govt. to establish ‘India Rare Earths Mission’

    To counter India’s reliance on China for imports of critical rare earth minerals, industry has urged the government to establish ‘India Rare Earths Mission’.

    What are Rare Earth Metals?

    • The rare earth elements (REE) are a set of seventeen metallic elements. These include the fifteen lanthanides on the periodic table plus scandium and yttrium.
    • Rare earth elements are an essential part of many high-tech devices.
    • They have a wide range of applications, especially high-tech consumer products, such as cellular telephones, computer hard drives, electric and hybrid vehicles, and flat-screen monitors and televisions.
    • Significant defense applications include electronic displays, guidance systems, lasers, and radar and sonar systems.
    • Rare earth minerals, with names like neodymium, praseodymium, and dysprosium, are crucial to the manufacture of magnets used in industries of the future, such as wind turbines and electric cars.

    Minerals

    Applications of REMs in various fields:

    • Electronics: Television screens, computers, cell phones, silicon chips, monitor displays, long-life rechargeable batteries, camera lenses, light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), baggage scanners, marine propulsion systems.
    • Defense Sector: Rare earth elements play an essential role in our national defense. The military uses night-vision goggles, precision-guided weapons, communications equipment, GPS equipment, batteries, and other defense electronics. These give the United States military an enormous advantage. Rare earth metals are key ingredients for making the very hard alloys used in armored vehicles and projectiles that shatter upon impact.
    • Renewable Energy: Solar panels, Hybrid automobiles, wind turbines, next-generation rechargeable batteries, bio-fuel catalysts.
    • Manufacturing: High strength magnets, metal alloys, stress gauges, ceramic pigments, colorants in glassware, chemical oxidizing agent, polishing powders, plastics creation, as additives for strengthening other metals, automotive catalytic converters
    • Medical Science: Portable x-ray machines, x-ray tubes, magnetic resonance imagery (MRI) contrast agents, nuclear medicine imaging, cancer treatment applications, and for genetic screening tests, medical and dental lasers.
    • Technology: Lasers, optical glass, fiber optics, masers, radar detection devices, nuclear fuel rods, mercury-vapor lamps, highly reflective glass, computer memory, nuclear batteries, high-temperature superconductors.

    DO YOU KNOW?

    Metals such as cadmium, lead are often used in manufacturing plastic and over time can enter coastal waters. These are acutely harmful for coastal wildlife and humans.Different kinds of plastic releases different kinds of metals  that may release when exposed to water and UV lights.

    What are the challenges in accessing Critical minerals?

    • Deposits in geopolitically sensitive regions: Reserves are often concentrated in regions that are geopolitically sensitive or fare poorly from an ease of doing business perspective.
    • Controlled production:  A portion of existing production is controlled by geostrategic competitors. For example, China wields considerable influence in cobalt mining in the Democratic Republic of Congo through direct equity investments and its Belt and Road Initiative.
    • Agreements in advance from outside: Future mine production is often tied up in off take agreements, in advance, by buyers from other countries to cater to upcoming demand.

    MineralsA step taken by Indian government for sourcing strategic minerals

    • For sourcing of strategic minerals, the Indian government established Khanij Bidesh  India Limited (KABIL) in 2019 with the mandate to secure mineral supply for the domestic market.

     India Rare Earths Mission

    • Industries in India have urged to set up a Mission, manned by professionals, like the India Semiconductor Mission and make their exploration a critical component of the Deep Ocean Mission plan of the government.
    • It would seek to encourage private sector mining in the sector and diversify sources of supply for these strategic raw materials.
    • The industry group has mooted making rare earth minerals a part of the ‘Make In India’ campaign, citing China’s ‘Made in China 2025’ initiative that focuses on new materials, including permanent magnets that are made using rare earth minerals.

    Why such move?

    • Though India has 6% of the world’s rare earth reserves, it only produces 1% of global output, and meets most of its requirements of such minerals from China.
    • In 2018-19, for instance, 92% of rare earth metal imports by value and 97% by quantity were sourced from China.

    What lies ahead?

    • There is a need to harness the potential of the country’s own rare earth reserves.
    • This would help build domestic capability and broad-base supply sources for such an important and strategic raw material.

     

  • Darjeeling Tea Industry in Crisis

    tea

    Tea Board officials admitted that Indian tea had not been able to establish itself globally, and that one of its key brands, Darjeeling Tea, was under acute stress.

    About Darjeeling Tea

    • Darjeeling Tea, called the ‘Champagne of Teas’, was the first Indian product to get the GI (Geographical Identification) tag in 2004 for its distinctive aroma and flavour.
    • About 87 gardens in Darjeeling which employ about 55,000 workers produce approximately 7 million kg of tea, most of which is exported.

    Why is it under distress?

    • Garden owners are reeling under higher costs of production and other issues.
    • Inferior quality tea from Nepal is being imported, and then sold and re-exported as premium Darjeeling Tea.
    • Nepal shares similar climatic conditions and terrain, produces tea at a lower price because of less input costs, particularly labour, and fewer quality checks.
    • In 2017, the production of Darjeeling Tea hit a low of 3.21 million kg. Since a substantial market of Darjeeling Tea switched to cheaper varieties of tea, including the imported variety from Nepal.
    • Tea planters and industry experts admit that the tea industry in Darjeeling has not recovered from the damage it incurred in 2017.

    Is climate change impacting production?

    • The decline in production is due to multiple factors, which include climate change, declining yields, and high absenteeism among workers.
    • Because of the hilly terrain of Darjeeling, there is no land left for expansion of tea gardens.
    • The tea bushes are older than other parts of the country.
    • Uprooting and planting them is both time and cost-intensive.

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • States ask Centre to curb its ‘Cess’ habit

    cess

    Several States, including some governed by the Centre urged to rein in its reliance on raising revenues through cesses and surcharges which reduce their share in the divisible pool of taxes.

    What are Cesses and Surcharges?

    The Union government has the authority to collect money through a variety of levies referred to as a tax, fee, cess, and surcharge.

    (A) Cess

    • Cess is charged on the tax amount and is levied for a specific purpose.
    • In India, cess is applicable to all the taxpayers, and it is calculated over, and above the base tax liability of the taxpayer, cess taxes initially go to the consolidated fund of India (CFI) that has to be used for the purpose for which it was collected.
    • Education Cess, Swachh Bharat Cess

    (B) Surcharge

    • The surcharge is levied on the tax payable and not on the total income.
    • It directly goes to the CFI, and after that it can be used for any purpose, just like the normal tax.
    • Surcharge applies to the taxpayer whose income is more than Rs 50 lakh.
    • In simple terms, surcharge is a tax on tax that is not collected for any particular cause, and the union government may use the proceeds of surcharges for any purpose it sees as important.
    • The objective behind the surcharge is to put a high tax burden on people with high incomes.

    Difference between the two

    • The rate of cess under income tax is fixed at 4%, whereas the rate of surcharges varies from 10%, 15%, 25% & 37% based on the taxpayers’ total income.
    • Cess is calculated on total tax and surcharge amount; surcharge is calculated on total tax amount only.
    • In a nutshell, while both are taxes, cess is collected from every taxpayer to meet a certain purpose, and the surcharge is an additional tax collected from the taxpayers who have higher slab income.

    Key difference over which states dispute

    • Major difference is that each can be shared with the state government, the surcharge can be kept with CFI, and it can be utilised for other taxes.
    • However, cess should be utilised for a particular reason. This restricts the states expenditure.
    • Tamil Nadu noted that the share of cesses and surcharges had grown from 10.4% of gross tax revenue in 2011-12 to 26.7% in 2021-22.
    • This has deprived the States of their legitimate share of revenue collected by the Union Government.

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Rationalization in long-term Capital Gains Tax structure on the anvil

    The Finance Ministry is looking at rationalizing long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefits.

    What is Capital Gains Tax?

    • Capital gains tax is levied on the profits made on investments (Base Year: 2001).
    • It covers real estate, gold, stocks, mutual funds, and various other financial and non-financial assets.
    • Under the Income Tax Act, gains from sale of capital assets — both movable and immovable — are subject to ‘capital gains tax’.

    Types of CGT

    (A) STCG (Short-term capital asset)

    • An asset held for a period of 36 months or less is a short-term capital asset.
    • The criteria is 24 months for immovable properties such as land, building and house property from FY 2017-18.
    • For instance, if you sell house property after holding it for a period of 24 months, any income arising will be treated as a long-term capital gain, provided that property is sold after 31st March 2017.
    • The reduced period of the aforementioned 24 months is not applicable to movable property such as jewellery, debt-oriented mutual funds etc.

    Some assets are considered short-term capital assets when these are held for 12 months or less. This rule is applicable if the date of transfer is after 10th July 2014 (irrespective of what the date of purchase is). These assets are:

    1. Equity or preference shares in a company listed on a recognized stock exchange in India
    2. Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India
    3. Units of UTI, whether quoted or not
    4. Units of equity oriented mutual fund, whether quoted or not
    5. Zero coupon bonds, whether quoted or not

    (B)  LTCG (Long-term capital asset )

    • An asset held for more than 36 months is a long-term capital asset.
    • They will be classified as a long-term capital asset if held for more than 36 months as earlier.
    • Capital assets such as land, building and house property shall be considered as long-term capital asset if the owner holds it for a period of 24 months or more (from FY 2017-18).

    Whereas, below-listed assets if held for a period of more than 12 months, shall be considered as long-term capital asset.

    1. Equity or preference shares in a company listed on a recognized stock exchange in India
    2. Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India
    3. Units of UTI, whether quoted or not
    4. Units of equity oriented mutual fund, whether quoted or not
    5. Zero coupon bonds, whether quoted or not

    Why is it so complicated?

    Capital gains tax is complicated for a few primary reasons.

    • First, the rate changes from asset to asset. LTCG tax on stocks and equity mutual funds is 10% but on debt mutual funds is 20% with indexation.
    • Second, holding period changes from asset to asset. The holding period for LTCG tax is two years in real estate, one year for stocks, and three years for debt mutual funds and gold.
    • Third, exemptions available against it come with their own complex conditions. For instance, buying a house after selling one can get you an exemption, but the new house must be bought in two years or built in three years of the sale.

    Stipulated reforms by Finance Ministry

    • Currently, shares held for more than one year attract a 10% tax on long-term capital gains.
    • Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20% long-term capital gains tax.
    • Also, a change in base year for computing inflation-adjusted capital gains is being contemplated.
    • The index year for capital gains tax calculation is revised periodically to make it more relevant. The last revision took place in 2017 when the base year was updated to 2001.
    • Since the prices of assets increase over time, the indexation is used to arrive at the inflation-adjusted purchasing price of assets to compute long-term capital gains for the purpose of taxation.

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Russia offers advanced nuclear fuel for Kudankulam Reactor

    The Russian state-owned nuclear energy corporation Rosatom has offered a more advanced fuel option to India’s largest nuclear power station at Kudankulam, which will allow its reactors to run for an extended 2-year cycle without stopping to load fresh fuel.

    What is the news?

    • Rosatom’s nuclear fuel division, TVEL Fuel Company, is the current supplier of TVS – 2 M fuel for the two VVER 1,000 MWe reactors generating power in the Kudankulam Nuclear Power Project (KKNPP).
    • This fuel has an 18-month fuel cycle, meaning that the reactor has to be stopped for fresh fuel loading every one-and-a-half years.
    • TVEL has now offered the more modern Advanced Technology Fuel (ATF), whose fuel cycle is a whopping 24 months.

    Benefits of the move

    • This fuel will ensure more efficiency and additional power generation due to the prolonged operation of the reactor.
    • It will result in sizable savings of the foreign exchange need to buy fresh fuel assemblies from Russia.

    What is the Nuclear Fuel Cycle?

    • The nuclear fuel cycle consists of front-end steps that prepare uranium for use in nuclear reactors and back-end steps to safely manage, prepare, and dispose of used—or spent—but still highly radioactive spent nuclear fuel.
    • Uranium is the most widely used fuel by nuclear power plants for nuclear fission.
    • Nuclear power plants use a certain type of uranium—U-235—as fuel because its atoms are easily split apart.
    • Although uranium is about 100 times more common than silver, U-235 is relatively rare at just over 0.7% of natural uranium.

    Steps involved in fuel enrichment

    • Uranium concentrate is separated from uranium ore at uranium mills or from a slurry at in-situ leaching facilities.
    • It is then processed in conversion and enrichment facilities, which increases the level of U-235 to 3%–5% for commercial nuclear reactors, and made into reactor fuel pellets and fuel rods in reactor fuel fabrication plants.
    • Nuclear fuel is loaded into reactors and used until the fuel assemblies become highly radioactive and must be removed for temporary storage and eventual disposal.
    • Chemical processing of spent fuel material to recover any remaining product that could undergo fission again in a new fuel assembly is technically feasible.

    Back2Basics: Uranium Enrichment

    • It is a process that is necessary to create an effective nuclear fuel out of mined uranium.
    • It involves increasing the percentage of uranium-235 which undergoes fission with thermal neutrons.
    • Nuclear fuel is mined from naturally occurring uranium ore deposits and then isolated through chemical reactions and separation processes.
    • These chemical processes used to separate the uranium from the ore are not to be confused with the physical and chemical processes used to enrich the uranium.

    Why is enrichment carried out?

    • Uranium found in nature consists largely of two isotopes, U-235 and U-238.
    • Natural uranium contains 0.7% of the U-235 isotope.
    • The remaining 99.3% is mostly the U-238 isotope which does not contribute directly to the fission process (though it does so indirectly by the formation of fissile isotopes of plutonium).
    • The production of energy in nuclear reactors is from the ‘fission’ or splitting of the U-235 atoms since it is the main fissile isotope of uranium.
    • Naturally occurring uranium does not have a high enough concentration of Uranium-235 at only about 0.72% with the remainder being Uranium-238.

     

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more