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GS Paper: GS3

  • National Logistics Policy

    logistics

    The government will announce the National Logistics Policy (NLP) this week, aiming to bring down logistics costs and address challenges plaguing importers and exporters.

    What is Logistics?

    • Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination.
    • It involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility.

    Why need a logistics policy?

    logistics

    • Organizing and consolidating the sector: India’s logistics sector is largely unorganized and fragmented.
    • Reducing logistics cost: This is why the country’s logistics costs are as high as 14-15% of the GDP, against 7-8% in developed nations such as the Singapore and the US, who leverage it to boost exports. The NLP aims to bring down India’s logistics cost to 8% in the next five years.
    • Preventing waste of perishable items: As per some estimates in India, about 16% of agri-production is wasted at different stages of the supply chain.
    • Warehousing development: Moreover, due to factors such as limited capacity and availability of warehouses, the cost of transaction increases.
    • Multi-modal integration: The new policy is going about simplification, technology and will have a multimodal approach that will combine rail, water, and air — all modes of transport.

    What role will technology play?

    • Advanced analytics: The NLP will aim to harness technologies such as AI and blockchain. It aims to create a data analytics centre for driving greater transparency and continuous monitoring of key logistics metrics.
    • Single window portal: Under NLP, a portal will be created, where service providers such as warehousing providers, shipping experts, transporters, customs brokers, and various governmental agencies will be unified.

    Will it boost cooperation between ministries?

    • Unifying multiple departments: Currently, the logistics value chain is managed by several ministries—road transport and highways, shipping, railways, and civil aviation.
    • Single-point clearances: Agencies like the Central Drug Standard Control Organization and the Food Safety and Standard Authority of India provide clearances.
    • Nationwide integration: The NLP could enhance their integration at the central level.

    What about reducing the carbon footprint?

    • Energy-efficient transportation: The draft logistics policy lays emphasis on the shift to more energy-efficient means of transportation, as well as the use of greener fuels which could reduce the supply chain’s carbon footprint.
    • Vehicular emission reduction: Moreover, the draft policy, released earlier, emphasized creating regulations for controlling vehicular noise, emissions, and wastage.
    • Green warehousing principles: The new logistics policy also aims to incorporate green principles in the functioning of warehouses which contribute to nearly 10% of the logistics costs.

    Will it change India’s commodity transport?

    • Transport of crucial commodities: The proposed policy aims to focus on the transport of crucial commodities such as coal, steel, iron ore, food grains, steel, cement, fruits and vegetables.
    • Creating nationwide clusters: The current logistical network for transporting them is mainly confined to regional clusters.
    • Integrating national supply-chains: The NLP could help establish a link between the place of origin, and destination place and integrate the supply on a national level.
    • Optimum logistics identification: The draft also proposes identification of the right mode of transport for each of these commodities to minimise losses during transport.

     

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  • [pib] Indian Navy participates in Exercise Kakadu hosted by Australia

    INS Satpura and a P8 I Maritime Patrol Aircraft of the Indian Navy reached Darwin in Australia on for participation in the multinational Exercise Kakadu – 2022, hosted by the Royal Australian Navy.

    Exercise KAKADU

    • Exercise KAKADU, which started in 1993, is the premier multilateral regional maritime engagement exercise hosted by the Royal Australian Navy (RAN) and supported by the Australian Air Force.
    • The exercise is held biennially in Darwin and the Northern Australian Exercise Areas (NAXA).
    • It derives its name from Kakadu National Park, which is a protected area in the northern territory of Australia, 171 km south-east of Darwin
    • During the exercise, professional exchanges in harbour and diverse range of activities at sea, including complex surface, sub-surface and air operations would enable sharing of best practices and honing of operational skills.

    India’s presence at the exercise

    • Indian Navy’s participation in KAKADU provides an excellent opportunity to engage with regional partners and undertake multinational maritime activities ranging from constabulary operations to high-end maritime warfare in a combined environment
    • It is aimed at enhancing interoperability and developing of common understanding of procedures for maritime operations gaining importance with the Indo-Pacific narrative.

    Also read:

    [Prelims Spotlight] Important Submarines and Naval Ships

     

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  • Europe heading for Recession

    The Eurozone is almost certainly entering a recession, with surveys showing a deepening cost-of-living crisis and a gloomy outlook that is keeping consumers wary of spending.

    What is Recession?

    • A recession is a significant decline in economic activity that lasts for months or even years.
    • Experts declare a recession when a nation’s economy experiences negative GDP, rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.
    • Recessions are considered an unavoidable part of the business cycle—or the regular cadence of expansion and contraction that occurs in a nation’s economy.

    What causes Recessions?

    These phenomena are some of the main drivers of a recession:

    • A sudden economic shock: An economic shock is a surprise problem that creates serious financial damage. The coronavirus outbreak, which shut down economies worldwide, is a more recent example of a sudden economic shock.
    • Excessive debt: When individuals or businesses take on too much debt, the cost of servicing the debt can grow to the point where they can’t pay their bills. Growing debt defaults and bankruptcies then capsize the economy.
    • Asset bubbles: When investing decisions are driven by emotion, bad economic outcomes aren’t far behind. Investors can become too optimistic during a strong economy.
    • Too much inflation: Inflation is the steady, upward trend in prices over time. Inflation isn’t a bad thing per se, but excessive inflation is a dangerous phenomenon. Central banks control inflation by raising interest rates, and higher interest rates depress economic activity.
    • Too much deflation: While runaway inflation can create a recession, deflation can be even worse. Deflation is when prices decline over time, which causes wages to contract, which further depresses prices. When a deflationary feedback loop gets out of hand, people and business stop spending, which undermines the economy.
    • Technological change: New inventions increase productivity and help the economy over the long term, but there can be short-term periods of adjustment to technological breakthroughs. In the 19th century, there were waves of labour-saving technological improvements.

    What’s the difference between Recession and Depression?

    • Recessions and depressions have similar causes, but the overall impact of a depression is much, much worse.
    • There are greater job losses, higher unemployment and steeper declines in GDP.
    • Most of all, a depression lasts longer—years, not months—and it takes more time for the economy to recover.
    • Economists do not have a set definition or fixed measurements to show what counts as a depression. Suffice to say, all the impacts of a depression are deeper and last longer.
    • In the past century, the US has faced just one depression: The Great Depression.

    The Great Depression

    • The Great Depression started in 1929 and lasted through 1933, although the economy didn’t really recover until World War II, nearly a decade later.
    • During the Great Depression, unemployment rose to 25% and the GDP fell by 30%.
    • It was the most unprecedented economic collapse in modern US history.
    • By way of comparison, the Great Recession was the worst recession since the Great Depression.
    • During the Great Recession, unemployment peaked around 10% and the recession officially lasted from December 2007 to June 2009, about a year and a half.
    • Some economists fear that the coronavirus recession could morph into a depression, depending how long it lasts.

    How long do recessions last?

    • Gulf War Recession (July 1990 to March 1991): At the start of the 1990s, the U.S. went through a short, eight-month recession, partly caused by spiking oil prices during the First Gulf War.
    • The Great Recession (2008-2009): As mentioned, the Great Recession was caused in part by a bubble in the real estate market.
    • Covid-19 Recession: The most recent recession began in February 2020 and lasted only two months, making it the shortest US recession in history.

    Can we predict a recession?

    Given that economic forecasting is uncertain, predicting future recessions is far from easy. However, the following warning signs can give you more time to figure out how to prepare for a recession before it happens:

    • An inverted yield curve: The yield curve is a graph that plots the market value—or the yield—of a range. When long-term yields are lower than short-term yields, it shows that investors are worried about a recession. This phenomenon is known as a yield curve inversion, and it has predicted past recessions.
    • Declines in consumer confidence: Consumer spending is the main driver of the US economy. If surveys show a sustained drop in consumer confidence, it could be a sign of impending trouble for the economy.
    • Drop in the Leading Economic Index (LEI): Published monthly by the Conference Board, the LEI strives to predict future economic trends. It looks at factors like applications for unemployment insurance, new orders for manufacturing and stock market performance.
    • Sudden stock market declines: A large, sudden decline in stock markets could be a sign of a recession coming on, since investors sell off parts and sometimes all of their holdings in anticipation of an economic slowdown.
    • Rising unemployment: It goes without saying that if people are losing their jobs, it’s a bad sign for the economy.

    How does a recession affect individuals?

    • We may lose your job during a recession, as unemployment levels rise. It becomes much harder to find a job replacement since more people are out of work.
    • People who keep their jobs may see cuts to pay and benefits, and struggle to negotiate future pay raises.
    • Investments in stocks, bonds, real estate and other assets can lose money in a recession, reducing your savings and upsetting your plans for retirement.
    • Business owners make fewer sales during a recession, and may even be forced into bankruptcy.
    • With more people unable to pay their bills during a recession, lenders tighten standards for mortgages, car loans, and other types of financing.

     

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  • Alcohol Laws in India

    The most ambitious Delhi’s Alcohol Policy 2021-22 which brought in big discounts for consumers was scrapped on July 31 amid allegations of corruption and irregularities in the drafting and implementation of the policy.

    After scrapping the new policy, the Delhi government decided to bring back the ‘old excise regime’ that was in force before.

    Definitely! We shall not nit-pick the old vs. new policy. Let us generally understand how alcohol is regulated in India.

    Alcohol laws of India: A backgrounder

    • The legal drinking age in India and the laws which regulate the sale and consumption of alcohol vary significantly from state to state.
    • In India, consumption of alcohol is prohibited in the states of Bihar, Gujarat, Nagaland and Mizoram.
    • There is partial ban on alcohol in some districts of Manipur.
    • All other Indian states permit alcohol consumption but fix a legal drinking age, which ranges at different ages per region.
    • In some states the legal drinking age can be different for different types of alcoholic beverage.

    Regulation

    • Alcohol is a subject in the State List under the Seventh Schedule of the Constitution of India.
    • Therefore, the laws governing alcohol vary from state to state.
    • Liquor in India is generally sold at liquor stores, restaurants, hotels, bars, pubs, clubs and discos but not online.
    • Some states, like Kerala and Tamil Nadu, prohibit private parties from owning liquor stores making the state government the sole retailer of alcohol in those states.
    • In some states, liquor may be sold at groceries, departmental stores, banquet halls and/or farm houses.
    • Some tourist areas have special laws allowing the sale of alcohol on beaches and houseboats.

    Drunk driving law

    • The blood alcohol content (BAC) legal limit is 0.03% or 0.03 mg alcohol in 100 ml blood.
    • On 1 March 2012, the Union Cabinet approved proposed changes to the Motor Vehicle Act.
    • Higher penalties were introduced, including fines from ₹2,000 to ₹10,000 and imprisonment from 6 months to 4 years.
    • Different penalties are assessed depending on the blood alcohol content at the time of the offence.

    Dry days

    • Dry days are specific days when the sale of alcohol is not permitted.
    • Most of the Indian states observe these days on major national festivals/occasions such as Republic Day (26 January), Independence Day (15 August) and Gandhi Jayanti (2 October).
    • Dry days are also observed during elections in India.

    Taxation on Alcohol

    • Most states levy either Value added Tax (VAT) or Excise duty or both.
    • Excise duty is a tax levied to discourage the consumption of a product.
    • It is calculated on a per-unit basis. Meaning, if you buy 1 litre of liquor, you pay a fixed excise duty of Rs 15.
    • Value-added Tax is charged in the proportion of the product. If a bottle costs Rs 100, and the state levies 10 percent VAT, the price rises to Rs 110.

    Tax rates in States

    • The 29 states/UTs in India approach liquor taxation differently.
    • For instance, Gujarat has banned its citizens from consuming liquor since 1961.
    • But outsiders with special licenses can still buy.
    • Puducherry, on the other hand, earns most of its revenue from alcohol trading.
    • Bihar has prohibited alcohol consumption entirely, meaning the state’s revenue from liquor consumption is nil.
    • Its neighbour, Uttar Pradesh, earns the most excise duty on liquor.
    • The state does not levy VAT but a special duty on liquor, collecting funds for particular purposes.

    Do you know?

    Andhra Pradesh, Telangana, Kerala, Karnataka, and Tamil Nadu consume as much as 45 percent of the liquor sold in the country.

    Nationally, Maharashtra charges the highest rate but draws only a portion of its revenue from its sales.

    Why alcohol isn’t banned everywhere?

    • Taxes from alcohol sales roughly form a quarter of state revenues.
    • If this stream suddenly stops, states have to compulsorily cut some important spending.
    • Also, moderate alcohol consumption may provide some health benefits.

     

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  • What it will take to fulfill India’s Solar Power Dream?

    From less than 10 MW in 2010, India has added significant PV capacity over the past decade, achieving over 50 GW by 2022.

    Solar energy in India

    • Solar photovoltaics (PV) has driven India’s push towards the adoption of cleaner energy generation technologies.
    • India is targeting about 500 GW by 2030, of renewable energy deployment, out of which ~280 GW is expected from solar PV.
    • This necessitates the deployment of nearly 30 GW of solar capacity every year until 2030.

    Key components

    • A typical solar PV value chain consists of first fabricating polysilicon ingots which need to be transformed into thin Silicon wafers that are needed to manufacture the PV mini-modules.
    • The mini-modules are then assembled into market-ready and field-deployable modules.

    Various challenges

    There are challenges that need to be overcome for the sustainability of the PV economy.

    (1) PV Modules

    • Indian solar deployment or installation companies depend heavily on imports.
    • It currently imports 100% of silicon wafers and around 80% of cells even at the current deployment levels.
    • India currently does not have enough module and cell manufacturing capacity.
    • India’s current solar module manufacturing capacity is limited to ~15 GW per year.
    • The demand-supply gap widens as we move up the value chain — for example, India only produces ~3.5 GW of cells currently.
    • India has no manufacturing capacity for solar wafers and polysilicon ingots.

    (2) Field deployment

    • Also, out of the 15 GW of module manufacturing capacity, only 3-4 GW of modules are technologically competitive and worthy of deployment in grid-based projects.
    • India remains dependent on the import of solar modules for field deployment.

    (3) Size and technology

    • Most of the Indian industry is currently tuned to handling M2 wafer size, which is roughly 156 x 156 mm2, while the global industry is already moving towards M10 and M12 sizes, which are 182 x 182 mm2 and 210 x 210 mm2 respectively.
    • The bigger size has an advantage in terms of silicon cost per wafer, as this effectively means lower loss of silicon during ingot to wafer processing.
    • In terms of cell technology, most of the manufacturing still uses Al-BSF technology, which can typically give efficiencies of ~18-19% at the cell level and ~16-17% at the module level.
    • By contrast, cell manufacturing worldwide has moved to PERC (22-23%), HJT(~24%), TOPCON (23-24%) and other newer technologies, yielding module efficiency of >21%.

    (4) Land issue

    • Producing more solar power for the same module size means more solar power from the same land area.
    • Land, the most expensive part of solar projects, is scarce in India — and Indian industry has no choice but to move towards newer and superior technologies as part of expansion plans.

    (5) Raw materials supply

    • There is a huge gap on the raw material supply chain side as well.
    • Silicon wafer, the most expensive raw material, is not manufactured in India.
    • India will have to work on technology tie-ups to make the right grade of silicon for solar cell manufacturing — and since >90% of the world’s solar wafer manufacturing currently happens in China.
    • It is not clear how and where India will get the technology.
    • Other key raw materials such as metallic pastes of silver and aluminium to form the electrical contacts too, are almost 100% imported.
    • Thus, India is more of an assembly hub than a manufacturing

    (6) Lack of investment

    • India has hardly invested in this sector which can help the industry to try and test the technologies in a cost-effective manner.

    Current govt policy

    • The government has identified this gap, and is rolling out various policy initiatives to push and motivate the industry to work towards self-reliance in solar manufacturing, both for cells and modules.
    • Key initiatives include:
    1. 40% duty on the import of modules and
    2. 25% duty on the import of cells, and
    3. Production Linked Incentive (PLI) scheme to support manufacturing capex
    4. Compulsion to procure modules only from an approved list of manufacturers (ALMM) for projects that are connected to state/ central government grids
    5. Only India-based manufacturers have been approved

    Way forward

    • India’s path to become a manufacturing hub for the same requires more than just putting some tax barriers and commercial incentives in the form of PLI schemes, etc.
    • It will warrant strong industry-academia collaboration in an innovative manner to start developing home-grown technologies which could, in the short-term.
    • It needs to work with the industry to provide them with trained human resource, process learnings, root-cause analysis through right testing and, in the long term, develop India’s own technologies.
    • High-end technology development requires substantial investment in several clusters which operate in industry-like working and management conditions, appropriate emoluments, and clear deliverables.

     

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  • What is a Windfall Tax?

    windfall

    Finance Minister has defended the windfall tax imposed by the Centre on domestic crude oil producers, saying that it was not an ad hoc move but was done after full consultation with the industry.

    What is a Windfall Tax?

    • Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event — for instance, the energy price-rise as a result of the Russia-Ukraine conflict.
    • These are profits that cannot be attributed to something the firm actively did, like an investment strategy or an expansion of business.
    • The US Congressional Research Service (CRS) defines a windfall as an “unearned, unanticipated gain in income through no additional effort or expense”.
    • One area where such taxes have routinely been discussed is oil markets, where price fluctuation leads to volatile or erratic profits for the industry.

    When did India introduce this?

    • In July this year, India announced a windfall tax on domestic crude oil producers who it believed were reaping the benefits of the high oil prices.
    • It also imposed an additional excise levy on diesel, petrol and air turbine fuel (ATF) exports.
    • Also, India’s case was different from other countries, as it was still importing discounted Russian oil.

    How is it levied?

    • Governments typically levy this as a one-off tax retrospectively over and above the normal rates of tax.
    • The Central government has introduced a windfall profit tax of ₹23,250 per tonne on domestic crude oil production, which was subsequently revised fortnightly four times so far.
    • The latest revision was on August 31, when it was hiked to ₹13,300 per tonne from ₹13,000.

    Why govt. introduced windfall tax?

    • There have been varying rationales for governments worldwide to introduce windfall taxes like:
    1. Redistribution of unexpected gains when high prices benefit producers at the expense of consumers,
    2. Funding social welfare schemes, and
    3. Supplementary revenue stream for the government

    Why are countries levying windfall taxes now?

    • Prices of oil, gas, and coal have seen sharp increases since last year and in the first two quarters of the current year, although they have reduced recently.
    • Pandemic recovery and supply issues resulting from the Russia-Ukraine conflict shored up energy demands, which in turn have driven up global prices.
    • The rising prices meant huge and record profits for energy companies while resulting in hefty gas and electricity bills for households in major and smaller economies.
    • Since the gains stemmed partly from external change, multiple analysts have called them windfall profits.

    Issues with imposing such taxes

    • Companies are confident in investing in a sector if there is certainty and stability in a tax regime.
    • Since windfall taxes are imposed retrospectively and are often influenced by unexpected events, they can brew uncertainty in the market about future taxes.
    • IMF says that taxes in response to price surges may suffer from design problems—given their expedient and political nature.
    • It added that introducing a temporary windfall profit tax reduces future investment because prospective investors will internalise the likelihood of potential taxes when making investment decisions.
    • There is another argument about what exactly constitutes true windfall profits; how can it be determined and what level of profit is normal or excessive.
    • Another issue is who should be taxed — only the big companies responsible for the bulk of high-priced sales or smaller companies as well— raising the question of whether producers with revenues or profits below a certain threshold should be exempt.

     

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  • Patents in India

    patent systemContext

    • Increasing the efficiency of processing patent applications and wider academia-industry collaboration are crucial steps for patent system.

    What is patent system?

    • A patent system is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention.

    Why are patents important?

    • A patent is important because it can help safeguard our invention. It can protect any product, design or process that meets certain specifications according to its originality, practicality, suitability, and utility. In most cases, a patent can protect an invention for up to 20 years.

    patent systemHow to get patent?

    • To get a patent, technical information about the invention must be disclosed to the public in a patent application.
    • The patent owner may give permission to, or license, other parties to use the invention on mutually agreed terms.
    • The owner may also sell the right to the invention to someone else, who will then become the new owner of the patent.
    • Once a patent expires, the protection ends, and an invention enters the public domain; that is, anyone can commercially exploit the invention without infringing the patent.

    Terms of Patent

    • Patents may be granted for inventions in any field of technology, from an everyday kitchen utensil to a nanotechnology chip.
    • An invention can be a product – such as a chemical compound, or a process, for example – or a process for producing a specific chemical compound.
    • Patent protection is granted for a limited period, generally 20 years from the filing date of the application.
    • Patents are territorial rights. In general, the exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region.

    patent systemHow patents can support inventors and improve lives

    • Recognize and reward: Patents recognize and reward inventors for their commercially-successful inventions. As such they serve as an incentive for inventors to invent. With a patent, an inventor or small business knows there is a good chance that they will get a return on the time, effort and money they invested in developing a technology. In sum, it means they can earn a living from their work.
    • Economic opportunity: When a new technology comes onto the market, society as a whole stands to benefit – both directly, because it may enable us to do something that was previously not possible, and indirectly in terms of the economic opportunities (business development and employment) that can flow from it.
    • Research and development (R&D): The revenues generated from commercially successful patent-protected technologies make it possible to finance further technological research and development (R&D), thereby improving the chances of even better technology becoming available in the future.
    • Opportunities for business growth: A patent effectively turns an inventor’s know-how into a commercially tradeable asset, opening up opportunities for business growth and job creation through licensing and joint ventures, for example.
    • Commercialization of a technology: Holding a patent also makes a small business more attractive to investors who play a key role in enabling the commercialization of a technology.
    • Spark new ideas: The technical information and business intelligence generated by the patenting process can spark new ideas and promote new inventions from which we can all benefit and which may, in turn, qualify for patent protection.
    • No freebies: A patent can help stop unscrupulous third parties from free riding on the efforts of the inventor.

    What is KAPILA Initiative?

    • Full form: KAPILA is an acronym for Kalam Program for IP (Intellectual Property) Literacy and Awareness.
    • Guidelines for patent Filing: Under this campaign, students pursuing education in higher educational institutions will get information about the correct system of the application process for patenting their invention and they will be aware of their rights.
    • Encouragement to students: The program will facilitate the colleges and institutions to encourage more and more students to file patents.

    Thing to remember

    Remember one thing, ‘KAPILA’ Program is related to IP awareness. It sounds much like an animal husbandry related initiative.

    Way ahead

    • As the patent system is a critical aspect of the national innovation ecosystem, investing in the patent ecosystem will help in strengthening the innovation capability of India.
    • The right interventions should be made for the promotion of the quality of patent applications and collaboration between academia and industry.

    Mains question

    Q. A patent can help stop unscrupulous third parties from free riding on the efforts of the inventor. Discuss this statement in context of protection of innovative ecosystem in India.

     

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  • GST Council

    The Union Finance Minister has heaped praises on Goods and Services Tax (GST) Council.

    Why in news?

    • FM was reacting to a case made by Fifteenth Finance Commission chief N.K. Singh to set up a Fiscal Council with the Centre and States.
    • This is another such recommended body to act as a bridge between the GST Council and the Finance Commission.

    What is the GST Council?

    • The GST regime came into force after the 101st Constitutional Amendment was passed by both Houses of Parliament in 2016.
    • The GST Council – a joint forum of the Centre and the states — was set up by the President as per Article 279A (1) of the amended Constitution.
    • The members of the Council include the Union Finance Minister (chairperson), the Union Minister of State (Finance) from the Centre.
    • Each state can nominate a minister in-charge of finance or taxation or any other minister as a member.

    Why was the Council set up?

    • The Council, according to Article 279, is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.
    • It also decides on various rate slabs of GST.
    • For instance, an interim report by a panel of ministers has suggested imposing 28 per cent GST on casinos, online gaming and horse racing.
    • A decision on this will be taken at the Council meeting.

    Recent reforms

    • The ongoing meeting is the first since a decision of the Supreme Court in May this year, which stated recommendations of the GST Council are not binding.
    • The court said Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST .
    • Recommendations of the Council are the product of a collaborative dialogue involving the Union and States.
    • This was hailed by some states, such as Kerala and Tamil Nadu, who believe states can be more flexible in accepting the recommendations as suited to them.

     

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  • Scientists remain sceptical about how Liquid Nano Urea benefits crops

    Liquid Nano Urea, a fertilizer patented and sold by the Indian Farmers Fertiliser Cooperative Ltd. (IFFCO), has been approved by the government for commercial use because of its potential to substantially reduce the import bill, but several experts have questioned the science underlying its efficacy.

    What is Liquid Nano Urea (LNU)?

    • Urea is chemical nitrogen fertiliser, white in colour, which artificially provides nitrogen, a major nutrient required by plants.
    • LNU is essentially urea in the form of a nanoparticle.
    • It is sprayed directly on the leaves and gets absorbed by the plant.
    • Fertilisers in nano form provide a targeted supply of nutrients to crops, as they are absorbed by the stomata, pores found on the epidermis of leaves.
    • According to IFFCO, liquid nano urea contains 4 per cent total nitrogen (w/v) evenly dispersed in water.
    • The size of a nano nitrogen particle varies from 20-50 nm. (A nanometre is equal to a billionth of a metre.)

    Using LNU

    • The liquid nano urea produced by IFFCO Limited comes in a half-litre bottle priced at Rs 240, and carries no burden of subsidy currently.
    • By contrast, a farmer pays around Rs 300 for a 50-kg bag of heavily subsidised urea.
    • According to IFFCO, a bottle of the nano urea can effectively replace at least one bag of urea.

    How efficient is LNU?

    • While conventional urea has an efficiency of about 25 per cent, the efficiency of liquid nano urea can be as high as 85-90 per cent.
    • Conventional urea fails to have the desired impact on crops as it is often applied incorrectly, and the nitrogen in it is vaporized or lost as a gas.
    • A lot of nitrogen is also washed away during irrigation.
    • Liquid nano urea has a shelf life of a year, and farmers need not be worried about “caking” when it comes in contact with moisture.

    Significance of LNU

    • This patented product is expected to not only substitute imported urea, but to also produce better results in farms.
    • Apart from reducing the country’s subsidy bill, it is aimed at reducing the unbalanced and indiscriminate use of conventional urea.
    • It will help increase crop productivity, and reduce soil, water, and air pollution.

    Why in news now?

    • Plants need nitrogen to make protein and they source almost all of it from soil bacteria which live in a plant’s roots and have the ability to break down atmospheric nitrogen, or that from chemicals such as urea into a form usable by plants.
    • Chemically packaged urea is 46% nitrogen, which means a 45-kg sack contains about 20 kg of nitrogen.
    • Contrastingly, nano urea sold in 500-ml bottles has only 4% nitrogen (or around 20 g).
    • How this can compensate for the kilograms of nitrogen normally required puzzles scientists.

     

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  • GPS-based toll system to replace FASTag

    The government plans to start a GPS-based toll system in place of FASTag to ensure seamless payment and vehicle movement on national highways.

    Why in news?

    • The move would end the role of toll plazas across the country.

    How will a GPS-based tolling system work?

    • Vehicles will be fitted with an electronic device that can track their movement.
    • Highways will be geo-fenced, creating virtual boundaries. The system will use GPS or radio frequency identification technologies.
    • The software will recognize when a mobile device enters or leaves a particular area, and toll will be charged based on the distance travelled at the highway’s exit point.
    • As the system is based on sensors, there will be no need to stop at toll plazas.
    • Vehicles and users must be registered with the GPS toll system, linked to bank accounts that will be used to transfer toll payments.

    What are FASTags?

    • FASTags are stickers that are affixed to the windscreen of vehicles and use Radio Frequency Identification (RFID) technology to enable digital, contactless payment of tolls without having to stop at toll gates.
    • RFID uses electromagnetic fields to automatically identify and track tags attached to objects.
    • The tags are linked to bank accounts and other payment methods.
    • As a car crosses a toll plaza, the amount is automatically deducted, and a notification is sent to the registered mobile phone number.

    Issues with FASTags

    • Since the card is affixed to the windscreen, it can be easily misplaced, damaged or stolen.
    • The existing FASTag system, though faster than cash payments, still requires vehicles to stop at toll booths to enable reading of tags.
    • Also, the vehicle must wait till the gate is opened.
    • It has been observed that sometimes the toll fee is deducted twice from user account. Mostly, this happens due to a technical glitch.
    • Some card readers take longer time to read and register. Hence the purpose of saving time is itself defied.
    • Still, the wait time at toll booths is much more than the 30 seconds that was promised earlier.
    • Also, it has not helped reduce the number of toll booths.

    Hence the benefits of using FASTag far outweigh the challenges.

    Is FASTags a total failure?

    • Usage has increased since FASTag was made mandatory in 2021 after its launch in 2015.
    • Penetration has grown from nearly 16% in FY18 to 96.3% in FY22.
    • Total toll collection in FY18 was ₹21,948 crore, including ₹3,532 crore collected through FASTags.
    • In FY22, toll collection through FASTags increased sharply to ₹33,274 crore out of total toll collection of ₹34,535 crore.

    How will GPS benefit highway users?

    • GPS tolling uses satellite-based navigation and requires no halting.
    • Also, vehicles can be charged only for their actual travel on a highway stretch.
    • Currently, toll is paid at toll booths which is fixed between two points of tolling and a user does not get any concession even if he/she exits before completing the full run between two toll plazas.
    • The new system should reduce the toll amount charged for travel on highways.

    What is the progress so far on GPS tolling?

    • The Union road ministry has amended the National Highways Fee (Determination of Rates and Collection) Rules, 2008, allowing for the collection of toll based on distance travelled on national highways.
    • This will facilitate the introduction of GPS tolling.
    • First trials may be done on the under-construction Mumbai-Delhi expressway which will be geo-fenced.
    • Also the cost of GPS devices needs to be considered at very beginning.

    Way forward

    • The system needs a proper legislative framework, and a full launch is still years away. The government intends to introduce it in phases.
    • The road ministry is expected to amend the Motor Vehicles Act and create rules to facilitate GPS tolling as well as to penalize offenders.
    • Moreover, GPS will come with its own set of complications on calculating differential tolls.
    • Regulations and framework for these need to be developed first.

     

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