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GS Paper: GS3

  • Microbots for Drug Delivery

    An Indian researcher has found that it is possible to use light as a fuel to move microbots in real-body conditions with intelligent drug delivery that is selectively sensitive to cancer cells

    Microswimmers for drug delivery

    • Made from the two-dimensional compound poly (heptazine imide) carbon nitride (aka PHI carbon nitride), these microbots are nothing like the miniaturised humans.
    • They range from 1-10 micrometre (a micrometre is one-millionth of a metre) in size, and can self-propel when energised by shining light.
    • While carbon nitride is an excellent photo-catalyst, the two-dimensional PHI has a sponge-like structure full of pores and voids and charge storage properties.
    • The researchers found that the ions in the salty solution passed through the pores of PHI carbon nitride.
    • Thus, there was little or no resistance from the salt ions.

    How do they swim across the blood?

    • The PHI carbon nitride microparticles are photocatalytic.
    • Like in a solar cell, the incident light is converted into electrons and holes.
    • These charges drive reactions in the surrounding liquid. The charges react with the fluid surrounding them.
    • This reaction, combined with the particle’s electric field, makes the microbots (micro-swimmers) swim.
    • As long as there is light, electrons and holes are produced on the surface of the swimmers, which in turn react to form ions and an electric field around the swimmer.
    • These ions move around the particle and cause fluid to flow around the particle.
    • So this fluid flow causes the micro-swimmers to move.

    How does the ion movement occur?

    • The ions move from the bright surface of the micro-swimmer to the rear end.
    • The diffusion of the swimming medium in one direction propels the micro-swimmer in the opposite direction.
    • This is like a boat moving in the direction opposite to the oar strokes.
    • The particles are nearly spherical, and the incident light illuminates one-half of the sphere, leaving the other dark.
    • As photocatalysis is light-driven, it occurs only on the brightened hemisphere.
    • As the ions move from the bright side to the dark side, micro-swimmers march in the direction of the light source.

     

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  • RBI shift on monetary policy

    Context

    The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Friday gave a surprise, with a formal start to policy normalisation. This was contrary to the predominant market expectations of a hold.

    RBI on the path of policy normalisation

    • Focus on target of 4% +/- 2%: While the MPC voted unanimously to remain accommodative, in a change of language, the focus would now be on “withdrawal of accommodation to ensure that (CPI) inflation remains within the target (of 4 per cent +/- 2 per cent) going forward”.
    •  Remember, the RBI had become a (flexible) inflation-targeting central bank since FY17, whose primary objective is price stability, that is, inflation management.
    • The Liquidity Adjustment Facility (LAF) corridor was narrowed back to the conventional 0.25 percentage points from the earlier extraordinary pandemic widening in late March 2020.
    • The cap of the erstwhile corridor was the repo rate and the floor was the reverse repo.
    • Now, while the repo rate was held at 4.0 per cent and the latter at 3.35 per cent, the floor of the corridor was increased by 0.4 percentage points from 3.35 per cent.
    • There was also a change in the monetary policy orientation, of which the stance is one component.
    • The priority for monetary policy now is inflation, growth and financial stability, in that order.

    Reasons for unexpected tightening of policy

    • Inflation concerns: Despite uncertainty over growth impulses and demand concentrated at the upper-income level households, inflation has increasingly emerged as a big concern.
    •  Given that inflation is likely to average 6.1 per cent in Q4 of FY22, this increases the risk of inflation remaining above the 6 per cent upper target for three consecutive quarters, necessitating an explanation to the government by the MPC.
    • One comforting aspect of this scenario is that household inflation expectations remain anchored, with the median of three months to one year ahead expectations (as of March ’22) rising by only 0.1 percentage points from the earlier January readings.
    • Stabilisation of demand: On demand conditions, the RBI scaled-down the FY23 real GDP growth projection to 7.2 per cent (from 7.8 per cent), indicating that a combination of continuing supply dislocations, slowing global economy and trade, high prices and financial markets volatility are likely to take a toll.
    • One possible reconciliation with modest GDP growth is continuing weakness in services, which is also borne out by channel checks.
    • Certainly, continuing high inflation is likely to lead to some demand destruction, which will act as an automatic stabiliser.
    • A relatively loose fiscal policy is likely to offset some of this reduced demand, particularly with continuing subsidies to lower-income households.
    • Financial stability: This has multiple dimensions – interest and foreign exchange rates, market volatility, banking sector asset stress, and so on.
    • An important objective for the RBI is the management of money supply and system liquidity.
    • In a rising rate cycle, with a large borrowing programme of the Centre and state governments, interest rates on sovereign bonds are likely to increase without a measure of support from the RBI through Open Market Operations (OMOs).
    • This will entail injecting more liquidity into an already large surplus, which might add to inflationary pressures.
    • The introduction of the overnight Standing Deposit Facility (SDF) was a significant measure in this context.
    • Unlike the reverse repo facility, the RBI will not need to give banks government bonds as collateral against the funds they deposit.
    • This is thus a more flexible instrument should a shortage of government bonds in RBI holdings actually transpire under some eventuality, say the need to absorb large capital inflows post a bond index inclusion.

    What are the implications?

    • Interest rates will begin to increase but, for bank borrowers, this is likely to be a very gradual process.
    • For corporates and other wholesale borrowers, who also borrow from bond markets, this increase is likely to be faster as the surplus system liquidity is gradually drained.
    • How this is likely to affect demand for credit is uncertain, given the capex push of the government, some revival of private sector investment and likely continuing demand for housing.

    Conclusion

    This cycle of policy tightening will present a particularly difficult mix of economic and financial trade-offs, but RBI has demonstrated the ability to innovatively use the multiple instruments at its disposal to ensure an orderly transition.

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    Back2Basics: Liquidity Adjustment Facility corridor

    • Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements or repos.
    • LAF is used to aid banks in adjusting the day to day mismatches in liquidity (frictional liquidity deficit/surplus).
    • The liquidity adjustment facility corridor is the excess of repo rate over reverse repo.

  • What is Standing Deposit Facility (SDF)?

    The Reserve Bank of India (RBI) introduced the Standing Deposit Facility (SDF), an additional tool for absorbing liquidity, at an interest rate of 3.75 per cent.

    What is SDF?

    • In 2018, the amended Section 17 of the RBI Act empowered the Reserve Bank to introduce the SDF – an additional tool for absorbing liquidity without any collateral.
    • By removing the binding collateral constraint on the RBI, the SDF strengthens the operating framework of monetary policy.
    • The SDF is also a financial stability tool in addition to its role in liquidity management.
    • The SDF will replace the fixed-rate reverse repo (FRRR) as the floor of the liquidity adjustment facility corridor.
    • Both the standing facilities — the MSF (marginal standing facility) and the SDF will be available on all days of the week, throughout the year.

    How it will operate?

    • The main purpose of SDF is to reduce the excess liquidity of Rs 8.5 lakh crore in the system, and control inflation.
    • The SDF rate will be 25 bps below the policy rate (Repo rate), and it will be applicable to overnight deposits at this stage.
    • It would, however, retain the flexibility to absorb liquidity of longer tenors as and when the need arises, with appropriate pricing.
    • The RBI’s plan is to restore the size of the liquidity surplus in the system to a level consistent with the prevailing stance of monetary policy.

    Also read:

    What is Reverse Repo Normalization?

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  • Indonesia’s Palm Oil Crisis

    The world’s largest producer and exporter of palm oil, Indonesia, is facing domestic shortages, leading to price controls and export curbs.

    What is the news?

    • It’s rare for any country that is the largest producer and exporter of a product to experience domestic shortages of the same product.
    • Consumers are unable to access or paying through the nose for a commodity in which their country is the preeminent producer and exporter.

    What is Oil Palm?

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

    Palm oil production in Indonesia

    • Its palm oil production for 2021-22 (October-September) at 45.5 million tonnes (mt).
    • That’s almost 60% of the total global output and way ahead of the next bigger producer: Malaysia (18.7 mt).
    • It is also the world’s No. 1 exporter of the commodity, at 29 mt, followed by Malaysia (16.22 mt).

    Do you know?

    14,000 IDR is less than $1 or Rs 74! See the extent of depreciation one currency can undergo!

    Have you ever heard of the Zimbabwean hyperinflation of 2009? One literally had to pay a heap of cash to buy a piece of bread!

    Why in headlines?

    • Indonesia has seen domestic prices of branded cooking oil spiral, from around 14,000 Indonesian rupiah (IDR) to 22,000 IDR per litre between March 2021 and March 2022.
    • Much recently, the government imposed a ceiling on retail prices at 14,000 IDR.
    • This led to the product disappearing from supermarket shelves, amid reports of hoarding and consumers standing in long queues for hours to get a pack or two.

    India’s imports of palm oil (in lakh tonnes)

    Plausible factors

    (1) Ongoing War

    • The possible reason has to do supply disruptions — manmade and natural — in other cooking oils, especially sunflower and soyabean.
    • Ukraine and Russia together account for nearly 80% of the global trade in sunflower oil, quite comparable to the 90% share of Indonesia and Malaysia in palm.
    • Russia’s invasion of Ukraine has resulted in port closures and exporters avoiding Black Sea shipping routes.
    • Sanctions against Russia have further curtailed trade in sunflower oil, the world’s third most exported vegetable oil after palm and soybean.

    (2) Diversion for Bio-Fuels

    • Another factor is linked to petroleum, more specifically the use of palm oil as a bio-fuel.
    • The Indonesian government has, since 2020, made 30% blending of diesel with palm oil mandatory as part of a plan to slash fossil fuel imports.
    • Palm oil getting increasingly diverted for bio-diesel is leaving less quantity available, both for the domestic cooking oil and export market.

    Impact on India

    • India is the world’s biggest vegetable oils importer.
    • Out of its annual imports of 14-15 mt, the lion’s share is of palm oil (8-9 mt), followed by soyabean (3-3.5 mt) and sunflower (2.5).
    • Indonesia has been India’s top supplier of palm oil, though it was overtaken by Malaysia in 2021-22 (see above table).
    • The restrictions on exports, even in the form of levy, take into cognizance Indonesia’s higher population (27.5 crores, against Malaysia’s 3.25 crore) as well as its ambitious biofuel program.
    • To that extent, the world – more so, the bigger importer India – will have to get used to lower supplies from Indonesia.

     

    Answer this PYQ from CSP 2019:

     

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

    (a) Spices

    (b) Fresh fruits

    (c) Pulses

    (d) Vegetable oils

     

    [wpdiscuz-feedback id=”x9wprtcv5c” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Species in news: Indian Tent Turtles

    Indian tent turtle is now listed in Schedule –I of the Wild Life (Protection) Act, 1972 and is thereby provided the highest degree of protection.

    Why in news?

    • The Indian tent turtle is threatened due to illegal mining in Narmada River.
    • This turtle has also been widely traded as a pet at aquariums.

    Indian Tent Turtles

    IUCN status: Least Concerned

    • The Indian tent turtle (Pangshura tentoria) is a species of turtle in the family Geoemydidae. The species is endemic to India and Bangladesh.
    • Its preferred habitats are freshwater rivers and swamps.
    • The species is native to India, Nepal and Bangladesh, with three subspecies recorded from the region viz., P. t. tentoria, P. t. circumdata and P. t. flaviventer.
    • t. tentoria occurs in peninsular India and is recorded from Orissa, Maharashtra, Andhra Pradesh, Assam and Madhya Pradesh.
    • t. circumdata occurs in the western tributaries of Ganga and the rivers of Gujarat. It is found in Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat.
    • t. flaviventer occurs in the northern tributaries of Ganga and is recorded from Uttar Pradesh, Bihar, West Bengal and Assam.

    Back2Basics:  Wildlife (Protection) Act, 1972

    • WPA provides for the protection of the country’s wild animals, birds and plant species, in order to ensure environmental and ecological security.
    • It provides for the protection of a listed species of animals, birds and plants, and also for the establishment of a network of ecologically-important protected areas in the country.
    • It provides for various types of protected areas such as Wildlife Sanctuaries, National Parks etc.

    There are six schedules provided in the WPA for protection of wildlife species which can be concisely summarized as under:

    Schedule I: These species need rigorous protection and therefore, the harshest penalties for violation of the law are for species under this Schedule.
    Schedule II: Animals under this list are accorded high protection. They cannot be hunted except under threat to human life.
    Schedule III & IV: This list is for species that are not endangered. This includes protected species but the penalty for any violation is less compared to the first two schedules.
    Schedule V: This schedule contains animals which can be hunted.
    Schedule VI: This list contains plants that are forbidden from cultivation.

     

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  • The HDFC Ltd.-HDFC Bank Merger

    Mortgage lender HDFC Ltd. and India’s largest private sector bank HDFC Bank on Monday announced a mega-merger.

    Impact of the move

    • Under the terms of the deal, which is one of the biggest in the Indian financial sector, HDFC Bank will be 100% owned by public shareholders.
    • Existing shareholders of HDFC Ltd. will own 41% stake in HDFC Bank.
    • Post-merger HDFC Ltd. will no longer be a separate mortgage lender, it will get folded into the bank.

    What are the terms of the merger?

    • The merger has to go through a series of regulatory approvals.
    • It has to get approval from the shareholders of both companies.
    • At this moment what has been announced by the two entities is that its an all-share deal, so there’s no cash transaction involved.
    • The terms of the share swap are such that shareholders of HDFC Ltd. will receive 42 shares of HDFC Bank for every 25 shares they hold in HDFC Ltd.

    What happens to existing customers and employees?

    • As far as customers are concerned, HDFC Ltd.’s customers will become the bank’s customers as well.
    • As for employees, HDFC Bank is planning to absorb and retain all the employees.
    • Neither of the entities are very heavy on employee numbers and have been fairly conservative in their employee sizes.

    What is the rationale behind this merger?

    • HDFC have largely had a fairly conservative lending culture, both reasonably customer-friendly, customer-centric, culturally, there wouldn’t be a big challenge.
    • The evolution of the regulatory framework for the NBFC (non-banking financial company) industry has been gradually moving closer, to harmonise with the banking sector’s regulatory framework.
    • Earlier, NBFCs had a fairly different and a far more loose sort of framework for lending and deposits.
    • This led to issues in the industry with some NBFCs struggling and going under or being taken over by others.
    • As Basel III norms for capital adequacy are in place, the NPA (non-performing asset) book is very closely monitored.

    What is in it for HDFC Ltd. and HDFC Bank?

    • Post-merger, the mortgage lender, HDFC Ltd., gets access to HDFC Bank’s CASA (current and savings accounts) deposits, which are lower cost funds.
    • For the mortgage lending business, the capital cost will come down. As the capital cost comes down, automatically it will have the ability to lend at a finer rate.
    • For HDFC Bank, every home loan customer can be tapped to become a bank customer.

    Impacts of the deal

    • It’s possible that we might see more NBFCs seeking to merge with banks.
    • There is already talk of the number of banks coming down.
    • So in some ways, this merger may be a precursor to what is going to happen in the state-run banking space, where the government has said it is going to reduce the number of public sector banks.

    Back2Basics: Basel Accords

    • They refer to the banking supervision Accords (recommendations on banking regulations)—Basel I, Basel II and Basel III—issued by the Basel Committee on Banking Supervision (BCBS).
    • They are called the Basel Accords as the BCBS maintains its secretariat at the Bank for International Settlements in Basel, Switzerland and the committee normally meets there.
    • These are a set of recommendations for regulations in the banking industry.
    • India has accepted Basel accords for the banking system.

    Let’s revise them:

    [1] Basel I

    • In 1988, BCBS introduced capital measurement system called Basel capital accord, also called as Basel 1.
    • It focused almost entirely on credit risk. It defined capital and structure of risk weights for banks.
    • The minimum capital requirement was fixed at 8% of risk-weighted assets (RWA).
    • RWA means assets with different risk profiles.
    • For example, an asset backed by collateral would carry lesser risks as compared to personal loans, which have no collateral. India adopted Basel 1 guidelines in 1999.

    [2] Basel II

    • In June ’04, Basel II guidelines were published by BCBS, which were considered to be the refined and reformed versions of Basel I accord.
    • The guidelines were based on three parameters, which the committee calls it as pillars:
    • Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
    • Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
    • Market Discipline: This need increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank. Basel II norms in India and overseas are yet to be fully implemented.

    [3] Basel III

    • In 2010, Basel III guidelines were released. These guidelines were introduced in response to the financial crisis of 2008.
    • A need was felt to further strengthen the system as banks in the developed economies were under-capitalized, over-leveraged and had a greater reliance on short-term funding.
    • Also the quantity and quality of capital under Basel II were deemed insufficient to contain any further risk.
    • Basel III norms aim at making most banking activities such as their trading book activities more capital-intensive.
    • The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.

     

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  • Asian Development Outlook Report

    The Asian Development Bank (ADB) forecasts has provided some useful insights about India’s GDP growth.

    About Asian Development Bank (ADB)

    • The ADB is a regional development bank established on 19 December 1966 which is headquartered in Philippines.
    • ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
    • The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).
    • The ADB was modelled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
    • The president has a term of office lasting five years, and may be re-elected.
    • Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese.
    • ADB is an official United Nations Observer.

    Highlights of the ADB Outlook Report 2020

    • India’s GDP growth will moderate to 7.5% in 2022-23, from an estimated 8.9% in 2021-22.
    • It has factored in the Russia-Ukraine conflict’s implications for India, which would be largely indirect through higher oil prices
    • The severity of the COVID-19 pandemic would subside with a rise in vaccination rates.
    • Higher public capital spending is expected to improve the efficiency of India’s logistics infrastructure, crowd-in private investment, generate jobs in construction and sustain growth.

     

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  • Demand side strategies for climate change mitigation

    Context

    A paradigm shift in the way we think about climate action has been reported for the first time in the recent IPCC report through a chapter on “demand, services and social aspects of mitigation”.

    Demand side strategies and their impact

    • The report shows how, through comprehensive demand-side strategies, carbon dioxide and non-carbon GHG emissions globally can be reduced by 40–70 per cent compared to the 2050 emissions projection.
    • This can be achieved through reduced food waste, following sustainable healthy dietary choices that acknowledge nutritional needs, adaptive heating and cooling, climate-friendly dressing culture, integration of renewable energy in buildings, shifting to electric light-duty vehicles, and to walking, cycling, shared and public transit, sustainable consumption by intensive use of longer-lived repairable products, compact city design and efficient floor area use of buildings.
    • The IPCC report also shows that individuals with high socioeconomic status contribute disproportionately to emissions and have the highest potential for emissions reductions, as citizens, investors, consumers, role models, and professionals.
    • Of the 60 actions assessed in this report, on an individual level, the biggest contribution comes from walking and cycling wherever possible and using electricity-powered transport.

    Need for systemic changes

    • To be effective, these shifts will need to be supported by systemic changes in some areas — for example, land use and urban planning policies to avoid urban sprawl, support for green spaces, reallocation of street spaces for walking and physical exercise, investment in public transport and infrastructure design for active and electric vehicles.
    • Electrification and shifts to public transport also bring benefits in terms of enhancing health, employment, and equality.
    • By providing user-level access to more efficient energy conversion technologies, the need for primary energy can be reduced by 45 per cent by 2050, compared to 2020.
    • Demand-side changes cannot deliver the net-zero goal on their own.
    • But this requires investment in and transformation across every sector, along with policies and incentives that encourage people to make low-carbon choices in all aspects of their lives.
    • There is huge untapped potential in the near term through changes across transport, industry, buildings, and food that will take away the supply-side uncertainties and make it easier for people to lead low-carbon lifestyles and, at the same time, improve well-being.

    Conclusion

    The latest IPCC report puts people and their well-being at the centre of climate change mitigation. The messages are from a global perspective but have relevance to the national context of every country.

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  • Recombinant Variants of SARS-CoV-2

    The World Health Organization (WHO) has flagged the emergence of a new variant of the SARS-CoV-2 virus — the XE recombinant.

    How are variants created?

    • SARS-CoV-2, the virus that causes COVID-19, is an RNA virus which evolves by accumulating genetic errors in its genome.
    • These errors are produced when the virus infects a person and makes copies of itself inside the host’s cells.
    • These errors (otherwise called mutations) are therefore a by-product of replication of SARS-CoV-2 inside the cell and may be carried forward as the virus continues to infect people.
    • When viruses having a specific set of errors or mutations infect a number of people, this forms a cluster of infections descending from a common parental virus genome and is known as a lineage or a variant of the virus.

    Who name these variants?

    • The PANGO network, an open global consortium of researchers from across the world, provides a system for naming different lineages of SARS-CoV-2.
    • Pangolin was developed to implement the dynamic nomenclature of SARS-CoV-2 lineages, known as the Pango nomenclature.
    • These variants or lineages are widely followed by epidemiologists for tracking the evolution of SARS-CoV-2.

    What is a recombinant variant?

    • Apart from the errors in the virus genome, another process through which a virus increases its genetic diversity is recombination.
    • Recombination occurs when, in extremely rare situations, two different lineages of the virus co-infect the same cell in the host and exchange fragments of their individual genomes.
    • This generates a descendent variant having mutations that occurred in both the original lineages of the virus.
    • Recombination of lineages happens in a variety of other viruses, including those that cause influenza, as well as other coronaviruses.
    • Such recombination events occur typically in situations where two or more lineages of SARS-CoV-2 may be co-circulating in a certain region during the same time period.
    • This co-circulation of lineages provides an opportunity for recombination to occur between these two lineages of SARS-CoV-2.

    How many recombinant viruses have been detected?

    • While recombination events are not frequently observed for the SARS-CoV-2 virus, multiple recombinant lineages have been designated during the pandemic.
    • The recombinant lineages are annotated by PANGO with an ‘X’ followed by an alphabet which indicates the order of discovery.
    • Some previously detected and designated lineages include XA, a recombinant of B.1.1.7 (Alpha) and B.1.177 detected in the U.K., lineage XB detected in the U.S., and lineage XC detected in Japan, which is a recombinant of B.1.1.7 (Alpha) and AY.29 sublineage of Delta.
    • Three new recombinant lineages of SARS-CoV-2 have been recently designated by the PANGO network and are being monitored — XD, XE, and XF.
    • Although currently present in a very low proportion of genomes in the U.K., early data from the country show evidence of community transmission of XF.

    Are recombinant variants more deadly?

    • Although recombination has been detected in SARS-CoV-2, it has not yet impacted public health in a unique way.
    • There is little evidence to suggest that recombinant lineages have a varied clinical outcome compared to the currently dominant Omicron variant.
    • It is certain at this point in time that more data will be needed to ascertain the impact of these lineages on the epidemiology of COVID-19.

    What are the methods through which recombinants are identified?

    • Identifying and tracking recombinant lineages for SARS-CoV-2 is a challenging task.
    • This would require specialised tools and the availability of primary (or raw) data for genome sequences as similar variant combinations could also arise from inadvertent errors in sequencing or analysis as well as contamination of sequencing experiments.
    • A cluster of recombinant genomes can be designated a lineage name by the PANGO network if it can be confirmed that samples in the cluster have a common origin and descend from two individual lineages of SARS-CoV-2.
    • Additionally, there should be at least 5 genomes in the public domain belonging to the cluster, indicating an ongoing transmission of the lineage.
    • Furthermore, screening the sequencing data of these samples should show no signs of contamination and meet the definition of a recombinant.

    Way ahead

    • Since recombinations are extremely rare occurrences, it is unclear how and why the viruses recombine.
    • It is, therefore, important to track the recombination of SARS-CoV-2 lineages because it may lead to the generation of a viral lineage that is better at infecting people or transmitting from host to host.
    • Monitoring circulating SARS-CoV-2 genomes for evidence of recombination will help gain a better understanding of the ongoing evolution of SARS-CoV-2.
    • It will also provide information if a more “concerning” variant of the virus were to emerge.

     

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  • Unlocking the potential of green hydrogen

    Context

    The ongoing tensions between Russia and Ukraine have led to the prices of crude oil shooting to $130/barrel. Green hydrogen is an emerging option that will help reduce India’s vulnerability to such price shocks.

    Four deficiencies in Renewable Energy Technologies

    • 1] Intermittent nature of RE: RE can only be generated intermittently.
    • Battery technology cannot store electricity at a grid scale.
    • 2] Financial viability: There are question marks on the financial viability of green power.
    • In India, renewable electricity is a replacement for coal-based power, the cheapest form of energy.
    • That’s a big constraint on its viability.
    • Moreover, the customers of this power – the state distribution companies – are collectively insolvent.
    • A business cannot prosper if its primary customers are not financially viable.
    • 3] Batteries are not suitable for heavy trucks: While electric cars and two-wheelers get a lot of visibility, much of India’s oil is burnt in heavy trucks.
    • Lithium batteries are not viable for trucks.
    • 4] Critical minerals: Electric vehicles require large quantities of lithium and cobalt that India lacks.
    • These minerals also have very concentrated supply chains that are vulnerable to disruptions.
    • Large-scale investments in electric vehicles may create unsustainable dependencies for the country.

    Is green hydrogen a solution?

    • Intermittent hydrogen in the energy mix can help circumvent some of these problems.
    • Hydrogen is an important industrial gas and is used on a large scale in petroleum refining, steel, and fertiliser production.
    • As of now, the hydrogen used in these industries is grey hydrogen, produced from natural gas.
    • Green hydrogen produced using renewable energy can be blended with grey hydrogen.
    • This will allow the creation of a substantial green hydrogen production capacity, without the risk that it may become a stranded asset.
    • Creating this hydrogen capacity will provide experience in handling the gas at a large scale and the challenges involved.
    • Blending with CNG: To widen the use of green hydrogen, it can be blended with compressed natural gas (CNG), widely used as a fuel for vehicles in Delhi, Mumbai and some other cities.
    • This will partly offset the need for imported natural gas and also help flag off the challenges of creating and distributing hydrogen at a national level.
    • By bringing down the price of green hydrogen sufficiently, India can help unlock some stranded assets.
    • The country has close to 25,000 megawatts of gas-fired power generation capacity that operates at a very low-capacity utilisation level. The high price of natural gas reduces the viability of such electricity.
    • These plants could use hydrogen blended with natural gas. Hydrogen should, however, be used to generate electricity after it has served its utility in other avenue.

    Way forward

    • To catalyse a hydrogen economy, India needs some specialist players to execute projects as well as finance them.
    • Participation of private players: Apart from government-backed players, the hydrogen economy will need private sector participation.
    • India’s start-up sector, with over 75 unicorns, is perhaps the most vibrant part of the country’s economy currently.
    • This ecosystem has been enabled by a mix of factors, including the presence of entrepreneurs with ideas and investors who are willing to back up these ideas
    • Creation of refueling network: One challenge of using new transport fuels, whether CNG or electric vehicles, is the creation of large-scale refuelling networks.
    • Bringing hydrogen vehicles on the road too soon will require the creation of yet another set of infrastructure.
    • Building fleets of hydrogen-fueled vehicles for gated infrastructure can be a good starting point.
    • Airports, ports and warehouses, for instance, use a large number of vehicles such as forklifts, cranes, trucks, tractors and passenger vehicles.

    Conclusion

    The government’s Green Hydrogen Policy sends the right signals about its intent. It now needs to ensure that investment can freely come into this space.

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