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GS Paper: GS3

  • Use of statecraft for long-term solutions to security problems

    Context

    In many countries, both the authorities and security agencies are beginning to acknowledge the importance of resorting to statecraft as a vital adjunct to the role played by the security agencies.

    The important role of statecraft in security

    •  Statecraft involves fine-grained comprehension of inherent problems; also an ability to quickly respond to political challenges.
    • It further involves strengthening the ability to exploit opportunities as they arise, and display a degree of political nimbleness rather than leaving everything to the security agencies.
    • It entails a shift from reposing all faith in the security establishment to putting equal emphasis on implementation of policies and programmes.
    • Two prime examples which provide grist to the above proposition are the prevailing situation in Jammu and Kashmir and the continuing problem involving Maoists.
    • The need to use statecraft to deal with quite a few other internal security problems — some of which have lain dormant for years — is also becoming more manifest by the day.

    Security issues in various regions

    • Jammu and Kashmir: While Jammu and Kashmir has been a troubled region ever since 1947, the situation has metamorphosed over the years.
    • No proper solution has emerged to a long-standing problem.
    •  Irrespective of the reasons for the latest upsurge in violence, what is evident is that Jammu and Kashmir has again become the vortex of violence.
    • Evidently, the doctrine of containment pursued by the Jammu and Kashmir police and security agencies is not having the desired effect.
    • In Jammu and Kashmir today, as also elsewhere, there is no all-in-one grand strategy to deal with the situation.
    • The missing ingredient is statecraft which alone can walk in step with the changing contours of a long-standing problem.
    • Punjab: The recent discovery of ‘sleeper cells’ in the Punjab clearly indicates the potential for the revival of a pro-Khalistan movement — which once ravaged large parts of the Punjab.
    • While pro-Khalistani sentiment is present in pockets in the United Kingdom and in Europe, it has not been in evidence in India for some time.
    • Hence, the recent attack by pro-Khalistan elements on the headquarters of the Punjab Police Intelligence wing in Mohali was a rude shock to the security establishment.
    • The incident is a reminder that militancy in the Punjab has not been permanently extinguished, and will need deft statecraft to nip it in the bud.
    • North-east: In India’s North-east, more specifically in the States of Assam and Nagaland, there are again incipient signs of trouble which, for the present, may need use of statecraft rather than the security forces. 
    • In Assam, the United Liberation Front of Asom–Independent (ULFA-I) is trying to revive its activities after a long spell of hibernation.
    • Likewise in Nagaland, where the National Socialist Council of Nagalim (I-M) has recently initiated a fresh push for a solution of the ‘Naga political issue’, the situation is pregnant with serious possibilities.
    • Both instances merit the use of statecraft so that the situation does not get out of hand.
    • South India: In the South, intelligence and police officials appear concerned about a likely revival of Liberation Tigers of Tamil Eelam (LTTE)-sponsored activities in Tamil Nadu.
    • This stems from a possible revival of LTTE-sponsored militancy in Sri Lanka following the recent economic crises and uncertainty there.
    • This situation again needs deft statecraft to prevent a resurgence of the past.

    Conclusion

    India faces several challenges today, but the answer to this is neither grand strategy nor grand simplifications nor resort to higher doses of security. A properly structured set of policies, having liberal doses of statecraft in addition to a proper set of security measures, is the best answer to India’s needs, now and in the future.

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  • Unicorn boom in India

    Prime Minister has praised India’s startup ecosystem as he highlighted that the country has reached a landmark figure of 100 unicorns with a valuation of more than $300 billion.

    What is a Unicorn Startup?

    • Unicorns are privately held, venture-capital-backed startups that have reached a value of $1 billion.
    • The valuation of unicorns is not expressly linked to their current financial performance.
    • This is largely based on their growth potential as perceived by investors and venture capitalists who have taken part in various funding rounds.

    Some of the successful Indian unicorns:

    • Lenskart
    • Cred
    • Meesho
    • PharmEasy
    • Licious
    • Grofers etc.

    When was the term first used?

    • American venture capitalist Aileen Lee is credited with coining the term in 2013.
    • It was used to emphasize the rarity of the emergence of such startups.

    Unicorn boost in India

    • The growth of Unicorns in India has been phenomenal in the past two years.
    • From 17 Unicorns in 2018 the number went up to 38 in 2020 and it’s 71 and counting in 2021.
    • Many of these unicorns, which have cumulatively raised more than 9 billion dollars till date, have also seen a surge in valuations.

    Features of a unicorn Start-up

    To be a unicorn is no cakewalk and each unicorn today has its own story with a list of features that worked in its favour.

    The few pointers that are commonly seen across all the unicorns is as under:

    • Disruptive innovation: Mostly, all the unicorns have brought a disruption in the field they belong to. Uber, for example, changed the way people commuted.
    • ‘Firsts’: It is seen that unicorns are mostly the starters in their industry. They change the way people do things and gradually create a necessity for themselves.
    • High on tech: Another common trend across unicorns is that their business model runs on tech. Uber got their model accepted by crafting a friendly app.
    • Consumer-focused: Often, theirgoal is to simplify and make things easy for consumers and be a part of their day-to-day life.
    • Affordability: Keeping things affordable is another key highlight of these startups. Spotify, for example, made listening to music easier to the world.
    • Privately owned: Most of the unicorns are privately owned which gets their valuation bigger when an established company invests in it.
    • *Mostly software based: A recent report suggests that 87% of the unicorns’ products are software, 7% are hardware and the rest 6% are other products & services.

    Entrepreneurship today is ‘survival-driven’ self-employment, formed out of necessity, as well as opportunity motivated, largely because poverty and lack of formal employment opportunities rear their ugly head in striving economies.

    Reasons for sudden success

    • COVID pandemic: The pandemic accelerated adoption of digital services by consumers helping start-ups and new-age ventures that typically build tech-focused businesses delivering an array of offerings to customers.
    • Boost in online services: Many Indians who had traditionally been subscribers of brick-and-mortar businesses moved online and explored a host of services ranging from food delivery and edu-tech to e-grocery.
    • Work-from-home culture: This added significant numbers to start-ups’ user base and expedited their business expansion plans and attracting investors.

    Inherent challenges to Start-ups in India

    • Financial scarcity: Availability of finance is critical for the startups and is always a problem to get sufficient amounts.
    • Lack of Infrastructure: There is a lack of support mechanisms that play a significant role in the lifecycle of startups which include incubators, science and technology parks etc.
    • Regulatory bottlenecks: Starting and exiting a business requires a number of permissions from government agencies. Although there is a perceptible change, it is still a challenge.
    • Compliance hurdles: For example, earlier Angel tax, which stands removed no, falls under corruption and bureaucratic inefficiencies.
    • Low success rate: Several startups fail due to shifting away the focus on the fundamentals of business grows.
    • Lack of an Innovative Business Model: To be successful a start-up must be innovative. Unfortunately, Indian startups are less innovative than startups elsewhere.
    • Non-competitive Indian Markets: Too many startups serving too few consumers are saturating the Indian market.  Most startups serve the fraction of Indians who live in urban India.
    • Digital divide: The majority of Indians who live in rural areas and small towns remain untouched by most startups.

    Various initiatives by the Govt.

    There are numerous government initiatives to assist start-ups:

    • MUDRA Scheme: Through this scheme, start-ups get loans from the banks to set up, grow and stabilize their businesses.
    • SETU (Self-Employment and Talent Utilization) Fund: Government has allotted Rs 1,000 Cr in order to create opportunities for self-employment and new jobs mainly in technology-driven domains.
    • E-Biz Portal: It is India’s first government-to-business portal that integrates 14 regulatory permissions and licenses at one source.
    • Credit Guarantee Fund: launched by the GoI to make available collateral-free credit to the micro and small enterprise sector.
    • Fund of Funds for Start-ups (FFS): 10,000 Rs corpus fund established in line with the Start-up India action plan under SIDBI for extending support to Start-ups.
    • Tax Sops: Tax exemption on Capital gain tax, Removal of Angel tax, Tax exemption for 3 years and Tax exemption in investment above Fair Market Value.

    Roadmap for the future success of start-ups

    Start-ups can judiciously take cues from unicorns in understanding the ecosystem and building a business model that adds value while being sustainable.

    • New-age startups should devise a customer-centric business model.
    • Through proper branding and strategy, they should make sure that this value proposition reaches the end-user.
    • What brings startups closer to success is the execution and customer acquisition strategy, where all the action occurs.
    • Notably, technology (rather deep-technology) has played a key role in the making of pioneer business models.

    Attracting venture capitalists

    • VCs are actively looking for investment opportunities in early-stage startups.
    • They possess the selection ability to effectively screen startups having a higher potential to succeed.
    • VCs primarily look for a mindset alignment with promoters and companies where they, as investors, can add value by leveraging their industry experience, expertise, network and reputation.

    Conclusion

    • The current economic scenario in India is in expansion mode.  Indian Startups are now spread across the length and breadth of the entire country.
    • The word ‘unicorn’ has come a long way from just being a mythological creature to a regular feature in business and finance discussions.
    • Innovation and economic growth depend on being able to produce excellent individuals with the right skills and attitudes to be entrepreneurial in their professional lives.
    • The Indian government’s policies like Make in India, Digital India, Atmanirbhar etc. shows the enthusiasm to arrest this talent.

     

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  • [pib] Param Ananta Supercomputer

    Param Ananta, a state-of the art Supercomputer was commissioned at IIT Gandhinagar.

    Param Ananta

    • Param Ananta is capable of offering peak performance of 838 teraflops.
    • It is a joint initiative of Ministry of Electronics and Information Technology (MeitY) and Department of Science and Technology (DST).
    • This facility is established under Phase 2 of the National Supercomputing Mission (NSM).
    • The system is equipped with a mix of CPU nodes, GPU nodes, High Memory nodes, High throughput storage and high performance Infiniband.
    • The supercomputer will rank behind C-DAC’s Param Siddhi-AI, which as of November 2021 was the 102nd most powerful supercomputer in the world — with peak performance capability of 3.3 petaflops.

    What is a Supercomputer?

    • A supercomputer is a computer with a high level of performance as compared to a general-purpose computer.
    • The performance of a supercomputer is commonly measured in floating-point operations per second (FLOPS) instead of million instructions per second (MIPS).
    • Since 2017, there are supercomputers which can perform over a hundred quadrillion FLOPS (peta FLOPS).
    • Since November 2017, all of the world’s fastest 500 supercomputers run Linux-based operating systems.

    Specific features

    • Param Ananta system is based on Direct Contact Liquid Cooling technology to obtain a high power usage effectiveness and thereby reducing the operational cost.
    • Multiple applications from various scientific domains such as Weather and Climate, Bioinformatics, Computational Chemistry, Molecular Dynamics, Material Sciences, Computational Fluid Dynamics etc. have been installed on the system for the benefit of researchers.
    • This high end computing system will be a great value addition for the research community.

    Back2Basics: National Supercomputing Mission (NSM)

    • NSM is a proposed plan by GoI to create a cluster of seventy supercomputers connecting various academic and research institutions across India.
    • In April 2015 the government approved the NSM with a total outlay of Rs.4500 crore for a period of 7 years.
    • The mission was set up to provide the country with supercomputing infrastructure to meet the increasing computational demands of academia, researchers, MSMEs, and startups by creating the capability design, manufacturing, of supercomputers indigenously in India.
    • Currently there are four supercomputers from India in Top 500 list of supercomputers in the world.

    Aims and objectives

    • The target of the mission was set to establish a network of supercomputers ranging from a few Tera Flops (TF) to Hundreds of Tera Flops (TF) and three systems with greater than or equal to 3 Peta Flops (PF) in academic and research institutions of National importance across the country by 2022.
    • This network of Supercomputers envisaging a total of 15-20 PF was approved in 2015 and was later revised to a total of 45 PF (45000 TFs), a jump of 6 times more compute power within the same cost and capable of solving large and complex computational problems.

    When did India initiate its efforts to build supercomputers?

    • India’s supercomputer program was initiated in the late 1980s, when the United States ceased the export of a Cray Supercomputer due to technology embargos.
    • This resulted in India setting up C-DAC in 1988, which in 1991, unveiled the prototype of PARAM 800, benchmarked at 5 Gflops. This supercomputer was the second-fastest in the world at that time.
    • Since June 2018, the USA’s Summit is the fastest supercomputer in the world, taking away this position from China.
    • As of January 2018, Pratyush and Mihir are the fastest supercomputers in India with a maximum speed of Peta Flops.

    What are the phases of the National Supercomputing Mission?

    Phase I:

    • In the first phase of the NSM, parts of the supercomputers are imported and assembled in India.
    • A total of 6 supercomputers are to be installed in this phase.
    • The first supercomputer that was assembled indigenously is called Param Shivay. It was installed in IIT (BHU) located in Varanasi.
    • Similar systems, Param Shakti (IIT Kharagpur) and Param Brahma (IISER, Pune) were also later installed within the country.
    • The rest will be installed at IIT Kanpur, IIT Hyderabad and Jawaharlal Nehru Institute of Advanced Studies (JNIAS).

    Phase II:

    • The supercomputers that are installed so far are about 60% indigenous.
    • The 11 systems that are going to be installed in the next phase will have processors designed by the Centre for Development of Advanced Computing (C-DAC) and will have a cumulative capacity of 10 petaflops.
    • These new systems are to be constructed more cost-effectively than the previous ones.
    • One of the 11 proposed supercomputers will be installed
    • at C-DAC exclusively for small and medium enterprises so that they can train employees as well as work on supercomputers at a very low cost.

    Phase III:

    • The third phase aims to build fully indigenous supercomputers.
    • The government had also approved a project to develop a cryogenic cooling system that rapidly dispels the heat generated by a computing chip. This will be jointly built together by IIT-Bombay and C-DAC.

     

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  • Price Rise and GST

    The GST regime is due for an overhaul in tax rates levied on different products because of structural anomalies and to reduce the multiple tax slabs.

    What is GST?

    • GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
    • It is charged at the time of supply and depends on the destination of consumption.
    • For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).
    • GST, being a consumption-based tax, resulted in loss of revenue for manufacturing-heavy states.

    What are GST Slabs?

    • In India, almost 500+ services and over 1300 products fall under the 4 major GST slabs.
    • There are five broad tax rates of zero, 5%, 12%, 18% and 28%, plus a cess levied over and above the 28% on some ‘sin’ goods.
    • The GST Council periodically revises the items under each slab rate to adjust them according to industry demands and market trends.
    • The updated structure ensures that the essential items fall under lower tax brackets, while luxury products and services entail higher GST rates.
    • The 28% rate is levied on demerit goods such as tobacco products, automobiles, and aerated drinks, along with an additional GST compensation cess.

    Why rationalize GST slabs?

    • From businesses’ viewpoint, there are just too many tax rate slabs, compounded by aberrations in the duty structure through their supply chains with some inputs are taxed more than the final product.
    • These are far too many rates and do not necessarily constitute a Good and Simple Tax.
    • Multiple rate changes since the introduction of the GST regime in July 2017 have brought the effective GST rate to 11.6% from the original revenue-neutral rate of 15.5%.
    • Merging the 12% and 18% GST rates into any tax rate lower than 18% may result in revenue loss.

    Haven’t GST revenues been hitting new records?

    • Yes, they have – GST revenues have scaled fresh highs in three of the first four months of 2022, going past ₹1.67 lakh crore in April.
    • But there is another key factor — the runaway pace of inflation.
    • Wholesale price inflation, which captures producers’ costs, has been over 10% for over a year and peaked at 15.1% in April.
    • Inflation faced by consumers on the ground has spiked to a near-eight year high of 7.8% in April.
    • The rise in prices was the single most important factor for higher tax inflows along with higher imports.

    Can we expect the rate reset this year?

    • Any re-arrangement of GST rates will entail some products being taxed higher, with concomitant ripple effects on prices.
    • The Centre and the States are not unmindful of the desperate need to rationalise the rate slabs and structure but we just need to get the timing right.
    • Presently inflation is the top worry.
    • With inflation, much of it imported through pricier fuels, commodities and food items, expected to hover high through the year, the GST rate reset hopes appear bleak in 2022-23.

     

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  • What is the West Nile Virus?

    The Kerala health department is on alert after the death occurred due to the West Nile Virus.

    West Nile Virus

    • The West Nile Virus is a mosquito-borne, single-stranded RNA virus.
    • According to the WHO, it is a member of the flavivirus genus and belongs to the Japanese Encephalitis antigenic complex of the family Flaviviridae.

    How does it spread?

    • Culex species of mosquitoes act as the principal vectors for transmission.
    • It is transmitted by infected mosquitoes between and among humans and animals, including birds, which are the reservoir host of the virus.
    • Mosquitoes become infected when they feed on infected birds, which circulate the virus in their blood for a few days.
    • The virus eventually gets into the mosquito’s salivary glands.
    • During later blood meals (when mosquitoes bite), the virus may be injected into humans and animals, where it can multiply and possibly cause illness.
    • WNV can also spread through blood transfusion, from an infected mother to her child, or through exposure to the virus in laboratories.
    • It is not known to spread by contact with infected humans or animals.

    Symptoms of WNV infection

    • The disease is asymptomatic in 80% of the infected people.
    • The rest develop what is called the West Nile fever or severe West Nile disease.
    • In these 20% cases, the symptoms include fever, headache, fatigue, body aches, nausea, rash, and swollen glands.
    • Severe infection can lead to encephalitis, meningitis, paralysis, and even death.
    • It is estimated that approximately 1 in 150 persons infected with the West Nile Virus will develop a more severe form of the disease.
    • Recovery from severe illness might take several weeks or months.
    • It usually turns fatal in persons with co-morbidities and immuno-compromised persons (such as transplant patients).

     

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  • What are Community Forest Rights?

    The Chhattisgarh government has become the only second state in the country to recognize the Community Forest Resource (CFR) rights of a village inside a national park.

    What is the news?

    • The CFR rights of tribals living in a hamlet inside the Kanger Ghati National Park in Bastar district, were recognised.
    • It gave the community the power to formulate rules for forest use.

    Try this PYQ first:

    Q.Under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, who shall be the authority to initiate the process for determining the nature and extent of individual or community forest rights or both?

    (a) State Forest Department

    (b) District Collector/Deputy Commissioner

    (c) Tahsildar/Block Development Officer/Mandal Revenue Officer

    (d) Gram Sabha

     

     

    [wpdiscuz-feedback id=”wi5gjmhhdk” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    What is a Community Forest?

    • The community forest resource area is the common forest land that has been traditionally protected and conserved for sustainable use by a particular community.
    • The community uses it to access resources available within the traditional and customary boundary of the village; and for seasonal use of landscape in case of pastoralist communities.
    • Each CFR area has a customary boundary with identifiable landmarks recognised by the community and its neighboring villages.
    • It may include forest of any category – revenue forest, classified & unclassified forest, deemed forest, DLC land, reserve forest, protected forest, sanctuary and national parks etc.

    Legal basis for Community Forest Resource (CFR) rights

    • The CFR rights are acknowledged under the Section 3(1) (i) of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act.
    • This is commonly referred to as the Forest Rights Act or the FRA.
    • It aims to provide for recognition of the right to “protect, regenerate or conserve or manage” the community forest resource.
    • These rights allow the community to formulate rules for forest use by itself and others and thereby discharge its responsibilities under Section 5 of the FRA.

    Nature of rights included

    • CFR rights, along with Community Rights (CRs) under Sections 3(1)(b) and 3(1)(c), which include: nistar rights and rights over non-timber forest products, ensure sustainable livelihoods of the community.
    • ‘Nistar’ means the concession granted for removal from forest coupes (small trees) on payment at stipulated rates, specified forest produce for bonafide domestic use, but not for barter or sale.
    • These rights give the authority to the Gram Sabha to adopt local traditional practices of forest conservation and management within the community forest resource boundary.

    Why is the recognition of CFR rights important?

    • Aimed at undoing the “historic injustice” meted out to forest-dependent communities due to curtailment of their customary rights over forests, the FRA came into force in 2008.
    • It is important as it recognises the community’s right to use, manage and conserve forest resources, and to legally hold forest land that these communities have used for cultivation and residence.
    • It also underlines the integral role that forest dwellers play in the sustainability of forests and in the conservation of biodiversity.
    • It is of greater significance inside protected forests like national parks, sanctuaries and tiger reserves as traditional dwellers then become a part of management of the protected forests.

    How many CFR certificates have been given in Chhattisgarh?

    • According to state government officials, Chhattisgarh has recognised nearly 4,000 CFR rights in the state.
    • Kanger Ghati National Park is the second national park, after Simlipal in Odisha, where CFR rights have been recognised.

     

     

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  • System of Rice Intensification (SRI) Technique

    Experts in Punjab has said that System of Rice Intensification (SRI) Technique is beneficial for the soil, environment and farmers at par with the Direct Seeding of Rice (DSR) technique.

    What is SRI technique?

    • SRI was first developed in Madagascar in the 1980s and since then several countries in the world have been practising it, including India.
    • It promises to save 15 to 20% ground water, improves rice productivity, which is almost at a stagnant point now.
    • Experts said that it gives equal or more produce than the conventional rice cultivation, with less water, less seed and less chemicals.
    • The net effect is a substantial reduction in the investments on external inputs.

    How does it take place in the field and in which soil?

    • First, the field is prepared by ploughing.
    • It should be laser levelled before transplanting for proper water management and efficiency for a good crop stand.
    • Then irrigation is applied in the field which is not a flooding of field like traditional methods but less than that of a well irrigated field.
    • Then 10-12 days old nursery (young paddy plants) along with soil particles around the root with minimum disturbance to the roots are transplanted in lines.
    • They are marked at a distance of 10 inches from each other with the help of a rope meter.

    Benefits over DSR technique

    • Unlike DSR, which is suitable only for mid to heavy textured soils, SRI is suitable in all types of soil including less fertile soil as in such soil the number of seedlings can be increased to double.
    • Under SRI 2kg seed is required to grow a nursery for one acre against 5kg seed required in the traditional method.

    Does the SRI method require continuous flooding after transplantation of nursery?

    • In traditional sowing from the day of transplanting till the crop turns 35-40 days fields are kept under flood-like conditions.
    • And then fields are filled every week till a few weeks before harvesting.
    • But SRI doesn’t require continuous flooding, it needs intermittent irrigation.
    • Indeed the plants’ roots should not be starved for oxygen through flooding.
    • Irrigation is given to maintain soil moisture near saturation initially, and water is added to the field when the surface soil develops hairline cracks.

    What are the limitations of SRI?

    • If unchecked, greater weed growth will cause substantial loss of yield.
    • In Punjab, it is not promoted by the government except demonstration plots sown over a decade ago.
    • It can be sustainable if organic inputs in the soil structure are maintained.

    Try this PYQ:

    Q.With reference to the current trends in the cultivation of sugarcane in India, consider the following statements:

    1. A substantial saving in seed material is made when ‘bud chip settlings are raised in a nursery and transplanted in the main field.
    2. When direct planting of setts is done, the germination percentage is better with single-budded setts as compared to setts with many buds.
    3. If bad weather conditions prevail when setts are directly planted, single-budded setts have better survival as compared to large setts.
    4. Sugarcane can be cultivated using settlings prepared from tissue culture.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 only

    (c) 1 and 4 only

    (d) 2,3 and 4 only

     

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  • Species in news: Sela Macaque

    A new species of old world monkey recorded from Arunachal Pradesh has been named after a strategic Sela pass at 13,700 ft above sea level.

    Sela macaque (Macaca selai).

    • This new primate was identified and analysed by a team of experts from the Zoological Survey of India (ZSI) and the University of Calcutta.
    • Earlier it was called as White- Cheeked Macaque displaying white cheeks, long and thick hairs on the neck area, and a longer tail.
    • Their study has been published in the latest edition of Molecular Phylogenetics and Evolution.
    • Phylogenetics relate to the evolutionary development and diversification of a species or group of organisms.
    • The phylogenetic analysis revealed that the Sela macaque was geographically separated from the Arunachal macaque (Macaca munzala) of Tawang district by Sela.
    • This mountain pass acted as a barrier by restricting the migration of individuals of these two species for approximately two million years.

    Protection status

    • It has NOT been yet included in the Wildlife (Protection) Act, 1972 of India.
    • The potential threat to all species of macaques in the landscape is due to hunting by locals for consumption and habitat degradation due to urbanization and infrastructure development.

     About Sela Pass

    • The Sela Pass is a high-altitude mountain pass located on the border between the Tawang and West Kameng districts in Arunachal Pradesh.
    • It has an elevation of 4170 m and connects the Indian Buddhist town of Tawang to Dirang and Guwahati.
    • The pass supports scarce amounts of vegetation and is usually snow-covered to some extent throughout the year.
    • While Sela Pass does get heavy snowfall in winters, it is usually open throughout the year unless landslides or snow require the pass to be shut down temporarily.
    • The strategically-significant Sela Tunnel project is now nearing completion well before the deadline.

     

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  • GST collections touched a record high of Rs 1.67 lakh crore in April.

    Context

    There has been a remarkable upswing in GST collections in recent months. Collections touched a record high of Rs 1.67 lakh crore in April.

    GST

    GST Interstate Model Example

    What are the reasons for increased collection?

    • 1] Inflation: First, the sharp rise in inflation has played a significant role.
    • Notwithstanding concerns over the unevenness of the economic recovery, in nominal terms, the economy grew by 19.4 per cent in 2021-22 as per the second advance estimates.
    • Deflating GST collection suggests that a large part of the recent increase in collections is driven by rising prices.
    • 2] Higher imports: Part of the overall increase in collections can be traced to higher imports.
    • Higher buoyancy: Even if one is to exclude the revenue accruing from imports, the rise in GST collections has outstripped GDP growth, indicating higher buoyancy.
    • 3] Tightening of the rules: In order to improve compliance levels, the GST Council has been tweaking the rules to tighten the system.
    • Returns filed have gone up, while the number of non-filers and those who delay filing have fallen.
    • Alongside, the administration has also taken steps to tackle the menace of fake invoices by placing restrictions on the quantum of input tax credit that can be used to pay of tax obligations.
    • The introduction of e-invoicing has also played a role.
    • Until recently, this was being implemented for firms with a turnover of more than Rs 50 crore.
    • From April, this process has been extended to firms above Rs 20 crore.
    • The incremental gains from bringing smaller firms into its ambit, while consequential, are unlikely to be of the same order.
    • 4] Industrial activity:  The higher collections in April 2022 seem to be led by increase in industrial activity. This is borne by strong growth in collections in states such as Maharashtra, Karnataka and Odisha which house lot of industries. Relatively tepid growth in more populous states such as Bihar (-2.47 per cent), West Bengal (7.80 per cent) and Jharkhand (4.86 per cent) shows that the GST collections was not propelled by revival in private consumption.
    •  The real challenge lies in improving compliance levels across the entire spectrum of industries where inputs/raw materials are sourced largely from the informal sector.
    • 5] Changing the structure of the economy: The formalisation of firms, the growing concentration of economic power in the hands of a few, imply that for the same level of output, the tax paid will be higher.

    Suggestion

    • Increase tax rate: Around two-fifths of the taxable value (or turnover) falls under the 18 per cent slab as per research by some analysts.
    • This implies that simply merging the 12 per cent and the 18 per cent slab as some have been suggesting would lead to a revenue loss.
    • Before opting for such adjustments, the GST Council must first ascertain the potential revenue (net of cess and refunds) at varying levels of compliance, tax rates and exemptions afforded.
    • Now, as per some estimates presented to the 15th Finance Commission, with existing exemptions in place, the current tax regime should ideally yield revenues equivalent to 8.23 per cent of GDP.
    •  In another scenario, even if existing exemptions are kept in place, and if a single rate of 14 per cent is levied, then collections should rise to 8.93 per cent.

    Conclusion

    Considering the current economic situation, now may not be an opportune moment to raise taxes. But there is no getting around it. Both the Centre and the states need to work towards this.

     

  • Green Hydrogen: Fuel of the Future

    India aspires to emerge as the leader of green hydrogen by taking advantage of the current energy crisis across the globe.

    Why in news?

    • Oil India Limited (OIL) has commissioned India’s first 99.99% pure green hydrogen plant in eastern Assam’s Jorhat.
    • Powered by a 500 KW solar plant, the green hydrogen unit has an installed capacity to produce 10 kg of hydrogen per day and scale it up to 30 kg per day.

    What is Hydrogen?

    • Hydrogen is the lightest, simplest and most abundant member of the family of chemical elements in the universe.
    • It is colourless, odourless, tasteless, non-toxic and highly combustible gaseous substance.

    What is Green hydrogen?

    • Green hydrogen is the one produced with no harmful greenhouse gas emissions.
    • It is made by using clean electricity from surplus renewable energy sources, such as solar or wind power, to electrolyse water.
    • Electrolysers use an electrochemical reaction to split water into its components of hydrogen and oxygen, emitting zero-carbon dioxide in the process.
    • Green hydrogen currently makes up a small percentage of the overall hydrogen, because production is expensive.

    Why is India pursuing green hydrogen?

    • Under the Paris Agreement of 2015, India is committed to reducing its greenhouse gas emissions by 33-35% from the 2005 levels.
    • It is a legally binding international treaty on climate change with the goal of limiting global warming to below 2°C compared to pre-industrial levels.
    • At the 2021 CoP in Glasgow, India reiterated its commitment to move from a fossil and import-dependent economy to a net-zero economy by 2070.
    • India’s average annual energy import bill is more than $100 billion .
    • The increased consumption of fossil fuel has made the country a high CO2 emitter which accounts for nearly 7% of the global CO2 burden.

    Various policy moves

    • In order to become energy independent by 2047, the government stressed the need to introduce green hydrogen as an alternative fuel that can make India the global hub and a major exporter of hydrogen.
    • The National Hydrogen Mission was launched on August 15, 2021, with a view to cutting down carbon emissions and increasing the use of renewable sources of energy.

    How much green hydrogen is India producing?

    • India has just begun to generate green hydrogen with the objective of raising non-fossil energy capacity to 500 gigawatts by 2030.
    • It was on April 20, 2022 that the public sector OIL, which is headquartered in eastern Assam’s Duliajan, set up India’s first 99.99% pure green hydrogen pilot plant.
    • Research and development efforts are ongoing for a reduction in the cost of production, storage and the transportation of hydrogen.

    What are the advantages of hydrogen as a fuel?

    • Hydrogen can be used to produce electricity using fuel cells.
    • Hydrogen, thus, can act as an energy storage device and contribute to grid stability.
    • The oxygen, produced as a by-product (8 kg of oxygen is produced per 1 kg of hydrogen), can also be monetised by using it for industrial and medical applications or for enriching the environment.

    Limitations to Hydrogen

    • Despite being the most abundant element in the Universe, hydrogen does not exist on its own so needs to be extracted from water via electrolysis or separated from carbon fossil fuels.
    • Hydrogen fuel cells need huge investment to be developed to the point where they become a genuinely viable energy source.
    • This will also require the political will to invest the time and money into development in order to improve and mature the technology.
    • Precious metals such as platinum and iridium are typically required as catalysts in fuel cells meaning unfeasibly high cost.
    • There are also barriers around regulatory issues concerning the framework that defines commercial deployment models.
    • Storage and transportation of hydrogen is more complex than that required for fossil fuels due to its high inflammability.

    Back2Basics:  Colours spectrum of Hydrogen

    (1) Green hydrogen

    (2) Blue hydrogen

    • It is produced mainly from natural gas, using a process called steam reforming, which brings together natural gas and heated water in the form of steam.
    • The output is hydrogen – but also carbon dioxide as a by-product.
    • That means carbon capture and storage (CCS) is essential to trap and store this carbon.
    • Blue hydrogen is sometimes described as ‘low-carbon hydrogen’ as the steam reforming process doesn’t actually avoid the creation of greenhouse gases.

    (3) Grey hydrogen

    • Currently, this is the most common form of hydrogen production.
    • Grey hydrogen is created from natural gas, or methane, using steam methane reformation but without capturing the greenhouse gases made in the process.

    (4) Black and brown hydrogen

    • Any hydrogen made from fossil fuels through the process of ‘gasification’ is sometimes called black or brown hydrogen interchangeably.
    • They are the most environmentally damaging.

    (5) Pink hydrogen

    • Pink hydrogen is generated through electrolysis powered by nuclear energy.
    • Nuclear-produced hydrogen can also be referred to as purple hydrogen or red hydrogen.
    • In addition, the very high temperatures from nuclear reactors could be used in other hydrogen productions by producing steam for more efficient electrolysis or fossil gas-based steam methane reforming.

     

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