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GS Paper: GS3

  • Improving livestock breeding

    Context

    The revised version of the Rashtriya Gokul Mission and National Livestock Mission (NLM) proposes to bring focus on entrepreneurship development and breed improvement in cattle, buffalo, poultry, sheep, goat, and piggery.

    Livestock breeding and challenges

    • Unorganised in nature: Livestock breeding in India has been largely unorganised.
    • Lack of linkages: Because of this unorganised nature there have been gaps in forward and backward integration across the value chain.
    • Impact on quality: The above scenario impacts the quality of livestock that is produced and in turn negatively impacts the return on investment for livestock farmers.
    • Roughly 80% bovines in the country are low on productivity and are reared by small and marginal farmers.

    Entrepreneurship development through NLM and Rashtriya Gokul Mission

    • The revised version of the Rashtriya Gokul Mission and National Livestock Mission (NLM) proposes to bring focus on entrepreneurship development.
    • Breed improvement infrastructure: It seeks to provide incentives to individual entrepreneurs, farmer producer organisations, farmer cooperatives, joint liability groups, self-help groups, Section 8 companies for entrepreneurship development and State governments for breed improvement infrastructure.
    • The breed multiplication farm component of the Rashtriya Gokul Mission is going to provide for capital subsidy up to â‚č200 lakh for setting up breeding farm with at least 200 milch cows/ buffalo using latest breeding technology. 
    •  Moreover, the strategy of incentivising breed multiplication farm will result in the employment of 1 lakh farmers.
    • The grassroots initiatives in this sphere will be further amplified by web applications like e-Gopala that provide real-time information to livestock farmers.
    • Poultry: The poultry entrepreneurship programme of the NLM will provide for capital subsidy up to â‚č25 lakh for the setting up of a parent farm with a capacity to rear 1,000 chicks.
    • Under this model, the rural entrepreneur running the hatchery will be supplying chicks to the farmers.
    • This is expected to provide employment to at least 14 lakh people.
    • Sheep and goat entrepreneurship: In the context of sheep and goat entrepreneurship, there is a provision of capital subsidy of 50% up to 50 lakh.
    • An entrepreneur under this model shall set up a breeder farm, develop the whole chain will eventually sell the animals to the farmers or in the open market.
    • This model is projected to generate a net profit of more than â‚č33 lakh for the entrepreneur per year.
    • Piggery: For piggery, the NLM will provide 50% capital subsidy of up to â‚č30 lakh.
    •  Each entrepreneur will be aided with establishment of breeder farms with 100 sows and 10 boars, expected to produce 2,400 piglets in a year.
    • This model is expected to generate a profit of â‚č1.37 crore after 16 months and 1.5 lakh jobs.

    Conclusion

    The revised scheme of NLM coupled with the Rashtriya Gokul Mission and the Animal Husbandry Infrastructure Development Fund has the potential to dramatically enhance the productivity and traceability standards of our livestock.

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  • Species in news: Bengal Florican

    Environmentalists have recently written to the Assam government on the urgent need to prevent land-use changes at Kokilabari Seed Farm in the state to protect Bengal floricans and other species.

    Bengal Florican

    • The Bengal florican also called Bengal bustard, is a bustard species native to the Indian subcontinent, Cambodia, and Vietnam.
    • Fewer than 1,000 individuals were estimated to be alive as of 2017.
    • It has two disjunct populations, one in the Indian subcontinent, another in Southeast Asia.
    • The former occurs from Uttar Pradesh (India) through the Terai of Nepal to Assam (where it is called ulu mora) and Arunachal Pradesh in India, and historically to Bangladesh.
    • It has a very small, rapidly declining population largely as a result of the widespread loss of its grassland habitat.

    Conservation status

    • IUCN Red List Status: Critically Endangered
    • CITES: Appendix I
    • Wildlife Protection Act of India, 1972: Schedule I

  • [pib] Geospatial Energy Map of India

    The NITI Aayog has launched the Geospatial Energy Map of India.

    What is the GIS Energy Map?

    • NITI Aayog in collaboration with the Indian Space Research Organisation (ISRO) has developed a comprehensive Geographic Information System (GIS) Energy Map of India.
    • The GIS map provides a holistic picture of all energy resources of the country.
    • It enables visualization of energy installations such as conventional power plants, oil and gas wells, petroleum refineries, coal fields and coal blocks.
    • It also provides district-wise data on renewable energy power plants and renewable energy resource potential, etc through 27 thematic layers.

    Significance of the map

    • The map attempts to identify and locate all primary and secondary sources of energy and their transportation/transmission networks.
    • It is a unique effort aimed at integrating energy data scattered across multiple organizations and presenting it in a consolidated, visually appealing graphical manner.
    • It leverages the latest advancements in web-GIS technology and open-source software to make it interactive and user-friendly.

    Benefits offered

    • The map would provide a comprehensive view of energy production and distribution in a country.
    • It will be useful in planning and making investment decisions.
    • It will also aid in disaster management using available energy assets.
    • This may also help in resource and environmental conservation measures, inter-state coordination on infrastructure planning including different corridors of energy and road transport highways.

     

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  • [pib] Exercise Cambrian Patrol

    A team from Gorkha Rifles which represented the Indian Army at the prestigious Cambrian Patrol Exercise at Brecon, Wales, UK, has been awarded a Gold medal.

    Ex Cambrian Patrol

    • Organized by the UK Army, this exercise is considered the ultimate test of human endurance, team spirit and is sometimes referred as the Olympics of Military Patrolling.
    • The aim of The Cambrian Patrol is to provide a challenging patrols exercise in order to enhance operational capability.
    • The event has evolved into a cost-effective, ready-made exercise that Commanding Officers can use to test the basic training standards of their soldiers, in preparation for future operations.
    • It is mission-focused and scenario-based with role players used to enhance the training benefit.

    How it is conducted?

    • During the exercise, teams are assessed for their performance under harsh terrain and inclement cold weather conditions.
    • They undergo various challenges in addition to the complex real-world situations painted to them so as to assess their reactions in combat settings.

     

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  • The coal crisis and role of CIL in mitigation

    Context

    In India, coal-based power plants have witnessed rapid depletion of coal stocks from a comfortable 28 days at the end of March to a precarious level of four days by the end of September. Coal India Ltd (CIL) has been unfairly attacked, even as it gears up to play a crucial role in fighting the power crisis.

    Reasons for crisis

    • The reasons for the crisis are structural as well as operational.
    • The Coal Mines Nationalisation Act (CMNA) in 1993 enabled the government to take away 200 coal blocks of 28 billion tons from CIL and allocate them to end-users for the captive mining of coal.
    • These end-users, mostly in the private sector, failed to produce any significant quantity of coal.
    • The cancellation of 214 blocks by the Supreme Court added to the problem.
    • Commensurate to the captive mines allocated to the end-user industries, the coal production today should have been at least 500 million tonnes per annum (mtpa).
    • In reality, this has never exceeded 60 mtpa.
    • On the operational side, power plants are required by the Central Electricity Authority (CEA) to maintain a minimum stock of 15 to 30 days of normative coal consumption.
    • The compliance with this directive by power plants has been severely lacking.
    • This enhances the vulnerability of power plants.
    • The persistent non-payment of coal sale dues by power plants to coal companies has created a serious strain on their working capital position.
    • A spurt in imported coal prices, mainly due to a major increase in coal imports by China, acted as a brake on imports of coal.
    • This escalated the demand for domestic coal.
    • The spurt in demand for coal is being linked to the post-Covid economic recovery.

    CIL’s role in mitigating the shortage crisis

    • Growth in production in short duration: Despite many constraining factors, it is to the credit of CIL that it has achieved a growth of 14 million tonnes (mt) or 5.8 per cent in coal production during the first half of 2021-22.
    • Yet, the offtake was higher than the preceding year by 52 mt or 20.6 per cent.
    • This was possible by drawing down on the opening inventory of coal from 100 mt to 42 mt during April to September.
    • With the monsoons behind us and the onset of a good productive season, CIL has already stepped up coal offtake to more than 1.5 mt per day.
    • With efforts on the part of the railways in moving the coal, the crisis should dissipate in the near future, at least for power plants that pay timely for coal supplies.
    • Besides meeting the growing coal demand of power plants, CIL has been able to significantly replace the import of highly expensive thermal coal.
    • Cheaper coal: Even after bearing the highest tax and transport cost globally, the landed cost of CIL coal continues to be much cheaper than imported coal at almost all destinations.
    • Saving of foreign exchange: The resultant benefits are savings of foreign exchange, and generation of power at affordable tariffs.
    • The coal price charged by CIL, expressed in energy units, is at a deep discount of 60-70 per cent of imported coal.

    Conclusion

    In brief, CIL has been unfairly blamed for the coal crisis. It has played a stellar role, standing like a solid rock between light and darkness. It is striving to build comfortable stocks at the power plants, not in default of payment.

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  • Issues with RBI’s microfinance proposals

    Context

    In June 2021, the Reserve Bank of India (RBI) published a “Consultative Document on Regulation of Microfinance”. The likely impact of the recommendations is unfavourable to the poor.

    Background of microfinance in India

    • Microfinance lending has been in place since the 1990s.
    • In the 1990s, microcredit was given by scheduled commercial banks either directly or via non-governmental organisations to women’s self-help groups.
    • But given the lack of regulation and scope for high returns, several for-profit financial agencies such as NBFCs and MFIs emerged.
    • The microfinance crisis of Andhra Pradesh led the RBI to review the matter, and based on the recommendations of the Malegam Committee, a new regulatory framework for NBFC-MFIs was introduced in December 2011.
    • A few years later, the RBI permitted a new type of private lender, Small Finance Banks (SFBs), with the objective of taking banking activities to the “unserved and underserved” sections of the population.
    • Today, as the RBI’s consultative document notes, 31% of microfinance is provided by NBFC-MFIs, and another 19% by SFBs and 9% by NBFCs.
    • These private financial institutions have grown exponentially over the last few years.

    What are the recommendations in the document?

    • The consultative document recommends that the current ceiling on rate of interest charged by non-banking finance company-microfinance institutions (NBFC-MFIs) or regulated private microfinance companies needs to be done away with.
    • The paper argues that the interest rate ceiling is biased against one lender (NBFC-MFIs) among the many: commercial banks, small finance banks, and NBFCs.
    • It proposes that the rate of interest be determined by the governing board of each agency, and assumes that “competitive forces” will bring down interest rates.

    Comparison of rate of interest

    • According to current guidelines, the ‘maximum rate of the interest rate charged by an NBFC-MFI shall be the lower of the following: the cost of funds plus a margin of 10% for larger MFIs (a loan portfolio of over â‚č100 crores) and 12% for others; or the average base rate of the five largest commercial banks multiplied by 2.75’.
    • A quick look at the website of some Small Finance Banks (SFBs) and NBFC-MFIs showed that the “official” rate of interest on microfinance was between 22% and 26% — roughly three times the base rate.
    • How does this compare with credit from public sector banks and cooperatives?
    • Crop loans from Primary Agricultural Credit Societies (PACS) in Tamil Nadu had a nil or zero interest charge if repaid in eight months.
    • Kisan credit card loans from banks were charged 4% per annum (9% with an interest subvention of 5%) if paid in 12 months (or a penalty rate of 11%).
    • Other types of loans from scheduled commercial banks carried an interest rate of 9%-12% a year.
    • As even the RBI now recognises, the rate of interest charged by private agencies on microfinance is the maximum permissible, a rate of interest that is a far cry from any notion of cheap credit.
    • The actual cost of microfinance loans is even higher for several reasons.
    •  An “official” flat rate of interest used to calculate equal monthly instalments actually implies a rising effective rate of interest over time.
    • In addition, a processing fee of 1% is added and the insurance premium is deducted from the principal.

    Violations of RBI guidelines

    • In line with RBI regulations, all borrowers had a repayment card with the monthly repayment schedules.
    • This does not mean that borrowers understood the charges.
    • Further, contrary to the RBI guideline of “no recovery at the borrower’s residence”, the collection was at the doorstep.

    Conclusion

    The proposals in the RBI’s consultative document will lead to further privatisation of rural credit, reducing the share of direct and cheap credit from banks and leaving poor borrowers at the mercy of private financial agencies. This is beyond comprehension at a time of widespread post-pandemic distress among the working poor.

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  • Electricity (Amendment) Bill 2020

    Context

    Most discoms are deep into the red as high aggregate technical and commercial (AT&C) losses are chipping into their revenues. Against this backdrop, the Electricity (Amendment) Bill of 2020 is a game-changing reform.

    Why the Electricity (Amendment) Bill of 2020 is a game-changing reform

    • De-licensing power distribution: This will provide the consumers with an option of choosing the service provider, switch their power supplier and enable the entry of private companies in distribution, thereby resulting in increased competition.
    • In fact, privatisation of discoms in Delhi has reduced AT&C losses significantly from 55% in 2002 to 9% in 2020.
    • Open access for purchasing power: Open access for purchasing power from the open market should be implemented across States and barriers in the form of cross-subsidy surcharge, additional surcharge and electricity duty being applied by States should be reviewed.
    • Issue of tariff revision: The question of tariffs needs to be revisited if the power sector is to be strengthened.
    • Tariffs ought to be reflective of the average cost of supply to begin with and eventually move to customer category-wise cost of supply in a defined time frame.
    • This will facilitate a reduction in cross-subsidies.
    • Inclusion in GST: Electrical energy should be covered under GST, with a lower rate of GST, as this will make it possible for power generator/transmission/distribution utilities to get a refund of input credit, which in turn will reduce the cost of power.
    • Use of smart meters: Technology solutions such as installation of smart meters and smart grids which will reduce AT&C losses and restore financial viability of the sector.
    • The impetus to renewable energy: The impetus to renewable energy, which will help us mitigate the impact of climate change, is much needed.
    • Despite its inherent benefits, the segment has shown relatively slow progress with an estimated installed capacity of 5-6 GW as on date, well short of the 2022 target.
    • The Bill also underpins the importance of green energy by proposing a penalty for non-compliance with the renewable energy purchase obligations which mandate States and power distribution companies to purchase a specified quantity of electricity from renewable and hydro sources
    • Strengthening the regulatory architecture: This will be done by appointing a member with a legal background in every electricity regulatory commission and strengthening the Appellate Tribunal for Electricity.
    • This will ensure faster resolution of long-pending issues and reduce legal hassles.
    • Authority for contractual obligation: Provision in the Bill such as the creation of an Electricity Contract Enforcement Authority to supervise the fulfillment of contractual obligations under power purchase agreement, cost reflective tariffs and provision of subsidy through DBT are commendable.

    Conclusion

    Early passage of the Bill is critical as it will help unleash a path-breaking reform for bringing efficiency and profitability to the distribution sector.

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  • Zeolite Oxygen Concentrators: Chemistry in 3-D

    To meet the demand of oxygen supply in the country during the peak of pandemic, the Defence Research and Development Organisation (DRDO) had chartered the Air India to import ‘Zeolite’ from different countries.

    What are Zeolites?

    • Zeolites are highly porous, 3-dimensional meshes of silica and alumina.
    • In nature, they occur where volcanic outflows have met water.
    • Synthetic zeolites have proven to be a big and low-cost boon.

    Uses in Oxygen Concentrator

    • One biomedical device that has entered our lexicon during the pandemic is the oxygen concentrator.
    • This device has brought down the scale of oxygen purification from industrial-size plants to the volumes needed for a single person.
    • At the heart of this technology are synthetic frameworks of silica and alumina with nanometer-sized pores that are rigid and inflexible.
    • Beads of one such material, zeolite 13X, about a millimeter in diameter, are packed into two cylindrical columns in an oxygen concentrator.

    How does it work?

    • Zeolite performs the chemistry of separating oxygen from nitrogen in air.
    • Being highly porous, zeolite beads have a surface area of about 500 square meters per gram.
    • At high pressures in the column, nitrogen is in a tight embrace, chemically speaking, with the zeolite.
    • Interaction between the negatively charged zeolite and the asymmetric nucleus (quadrupole moment) of nitrogen causes it to be preferentially adsorbed on the surface of the zeolite.
    • Oxygen remains free, and is thus enriched.
    • Once nitrogen is captured, what flows out from the column is 90%-plus oxygen.
    • After this, lowering the pressure in the column releases the nitrogen, which is flushed out, and the cycle is repeated with fresh air.

     

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  • Exercise Yudh Abhyas 2021

    The 17th edition of the India-U.S. bilateral exercise, Yudh Abhyas 2021, got underway in mountainous terrain and cold climate conditions of Alaska, US.

    Yudh Abhyas 2021

    • Exercise Yudh Abhyas is the largest running joint military training and defence cooperation endeavour between India and USA.
    • The exercise aims at enhancing understanding, cooperation and interoperability between the two armies.

    Why it is significant?

    • Interestingly, this is the only India-U.S. service exercise continuing in bilateral format.
    • The India-U.S. Malabar naval exercise became trilateral with the addition of Japan in 2015 and further brought in all the Quad partners together with the inclusion of Australia in 2020.
    • Similarly, Japan joined the India-U.S. bilateral air exercise, Cope India, as an Observer in 2018 and the plan is to make it trilateral in phases.
    • Other than the Malabar, Japan had sent observers for the first time during Cope India 2018 as an Observer in 2018. s

     

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  • PM GatiShakti — National Master Plan

    The PM has inaugurated the GatiShakti — National Master Plan for infrastructure development aimed at boosting multimodal connectivity and driving down logistics costs.

    GatiShakti — National Master Plan

    • PM GatiShakti is a digital platform that connects 16 ministries — including Roads and Highways, Railways, Shipping, Petroleum and Gas, Power, Telecom, Shipping, and Aviation.
    • It aims to ensure holistic planning and execution of infrastructure projects.
    • The objective is to ensure that every department now has visibility of each other’s activities providing critical data while planning and execution of projects.
    • Through this, different departments will be able to prioritize their projects through cross-sectoral interactions.

    Notable features

    • Geospatial data: The portal will offer 200 layers of geospatial data, including on existing infrastructure such as roads, highways, railways, and toll plazas.
    • Protected areas management: It would also geographic information about forests, rivers, and district boundaries to aid in planning and obtaining clearances.
    • Realtime monitoring: The portal will also allow various government departments to track, in real-time and at one centralized place, the progress of various projects.

    Monitoring mechanism

    • The National Master Plan has set targets for all infrastructure ministries.
    • A project monitoring group under the Department for Promotion of Industry and Internal Trade (DPIIT) will monitor the progress of key projects in real-time.
    • It would report any inter-ministerial issues to an empowered group of ministers, who will then aim to resolve these.

    Need for such Project

    • Avoiding poor infrastructure planning: Examples of poor infrastructure planning included newly-built roads being dug up by the water department to lay pipes.
    • Creating a multi-modal network: The government expects the platform to enable various government departments to synchronize their efforts into a multi-modal network.
    • Timely completion of infra projects: It is also expected to help state governments give commitments to investors regarding timeframes for the creation of infrastructure.
    • Inefficient connectivity: Currently, a number of economic zones and industrial parks are not able to reach their full productive potential due to inefficient multi-modal connectivity.
    • Easy clearance: The portal allows stakeholders to apply for these clearances from the relevant authority directly.

    Logistics costs in India

    • Studies estimate that logistics costs in India are about 13-14% of GDP as against about 7-8% of GDP in developed economies.
    • High logistics costs impact cost structures within the economy by making it more expensive for exporters to ship merchandise to buyers.

    Benefits offered by PM-GatiShakti

    • Collaborative planning: It would incorporate infrastructure schemes under various ministries and state governments, including the Bharatmala and inland waterways schemes, and economic zones.
    • Logistics boost: It would boost last-mile connectivity and thus bring down logistics costs with integrated planning and reducing implementation overlaps.

     

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