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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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  • Conservation of Sacred Grooves

    India’s sacred groves are being gradually altered due to ever-expanding human populations, pollution and removal of biomass; effective conservation is the need of the hour to maintain their functional values

    What are Sacred Grooves?

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

    Historical references

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    • Other historical references to sacred groves can be obtained in Vrukshayurveda an ancient treatise, ancient classics such as Kalidasa’s Vikramuurvashiiya.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

    Regulation of activities in Sacred Grooves

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

    Threats to such grooves

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

    Total grooves in India

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

    What lies ahead?

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

     

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  • Tariff problem of renewable energy

    Context

    We need to shift to a two-part tariff for solar and wind to incentivise private investments.

    Background of power generation tariff in India

    • The two-part tariff has been in vogue since 1992.
    • It applies to thermal and hydro generation.
    • 1] Fixed component: The first part is a fixed component – the cost that a generator incurs.
    • This is not linked to the amount of power generated.
    • 2] Variable component: The second part varies with the quantum of generation.
    • It does not apply to renewable generation — solar, wind, and also nuclear.
    • Under the two-part formula, the variable cost is calculated on the basis prescribed by the regulatory commissions.
    • This is based on the cost of fuel — coal or gas or lignite — as the case may be.
    • The fixed cost is also determined by regulatory commissions and it has a graded payment system depending on the extent to which the plant would be in a position to generate.
    • The point here is that when a generator is in a position to generate, it gets to recover the fixed cost (or some part of it), irrespective of whether it actually generates power.

    Single-part tariff for nuclear, wind and solar

    • In contrast, solar and wind generation and also nuclear are still governed by a single-part tariff.
    • The single-part tariff applies to nuclear power stations for various reasons including the fact that given the technology, a nuclear generator does not usually increase/decrease the generation at a quick tempo, but maintains a steady stream.
    • In any case, nuclear power accounts for only about two per cent of the entire generation, so let’s leave it aside.
    • On the other hand, solar and wind generation account for about 10 per cent of the generation today and going by the statement delivered during COP26 in Glasgow, we want to ramp it up to 50 per cent by 2030.

    Issues with single-part tariff for wind

    • Must run status: The renewable sector has been given a “must run” status.
    • This means that any generation from renewables needs to be dispatched first.
    • The problem is that “must run” runs counter to the basic economic theory that in order to minimise total cost, dispatch should commence from the source offering the cheapest variable cost and then move upwards.
    • With a single-part tariff, whenever the renewable generator is asked to back down for maintaining grid balance, it is paid nothing.
    • With a single part tariff for renewable generation, the entire cost is variable and at Rs 2.5 per unit for solar generation, it is not the cheapest source.
    • There are several NTPC coal-fired pit head plants whose variable costs are far lower, for example, Simhadri (Rs 1.36), Korba (Rs 1.36), Sipat (Rs 1.43).
    • For the older solar plants, the tariff could be well above Rs 3 per unit and for wind-based generation, it is even higher, averaging around Rs 4.5 per unit.
    • Therefore, the SLDCs often flout the principle of “must run”, since the distribution companies would save money by asking the renewable generator to back down while keeping the tap on for a coal-based generation.

    Solution

    • Two-part tariff for solar: The solution to this problem is to apply a two-part tariff for solar and wind generators as we do for hydro plants today.
    • Lowest variable cost: The overriding principle is that the percentage allocated as variable cost should ensure that renewable generation has the lowest variable cost so that there is no violation of the “must-run” principle.
    • At the same time, the fixed cost component should not be kept so high that it hurts the consumers. 
    • A fine balance between the proportion of the fixed and variable costs will have to be maintained.
    • It would also ensure a certain minimum return to developers even if they are not generating during certain hours, as in the case of coal and hydro plants.
    • Proper environment: If we are serious about having a renewable generating capacity of 450-500 GW by 2030, we need to create a proper environment and ensure adequate returns to invite fresh investments into renewable generation.

    Conclusion

    The switch from a single to a two-part tariff structure for renewables has to be made right now as we are at the cusp of ramping up our renewable generation and it takes time for matters to get streamlined as we have seen in the past.

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  • Near Field Communication (NFC) technology for instant payments

    Google Pay has recently launched a new feature in India, ‘Tap to pay for UPI’, in collaboration with Pine Labs. The feature makes use of Near Field Communication (NFC) technology.

    What is Near Field Communication (NFC)?

    • NFC is a short-range wireless connectivity technology that allows NFC-enabled devices to communicate with each other and transfer information quickly and easily with a single touch.
    • It makes possible to pay bills, exchange business cards, download coupons, or share a document.

    How does it work?

    • NFC transmits data through electromagnetic radio fields, to enable communication between two devices. Both devices must contain NFC chips, as transactions take place within a very short distance.
    • NFC-enabled devices must be either physically touching or within a few centimetres from each other for data transfer to occur.

    When did NFC tech start?

    • In 2004, consumer electronics companies, Nokia, Philips and Sony together formed the NFC Forum, which outlined the architecture for NFC technology to create powerful new consumer-driven products.
    • Nokia released the first NFC-enabled phone in 2007.

    How will this technology work with the recently launched feature, ‘Tap to pay for UPI’?

    • Google Pay has been the first among UPI apps to bring the Tap to Pay feature working on POS terminals.
    • It will allow users with UPI accounts configured on Google Pay to make payments just by tapping their NFC-enabled Android smartphones on any Pine Labs Android POS terminal.
    • Once users tap their phones on the POS terminal, it will automatically open the Google pay app with the payment amount pre-filled.
    • Users can then verify the amount and merchant name and authenticate the payment, using their UPI PIN.
    • The process is much faster compared to scanning a QR code or entering the UPI-linked mobile number which has been the conventional way till now.

    What are the other applications of NFC technology?

    • NFC tech has a wide range of applications besides driving payment services.
    • It is used in contactless banking cards to perform money transactions or to generate contact-less tickets for public transport.
    • Contactless cards and readers use NFC in several applications from securing networks and buildings to monitoring inventory and sales, preventing auto theft, keeping tabs on library books,
    • NFC is behind the cards that we wave over card readers in subway turnstiles and on buses to check tickets.
    • It is present in speakers, household appliances, and other electronic devices that we monitor and control through our smartphones.
    • With just a touch, NFC can also set up WiFi and Bluetooth devices in our homes, investopedia noted.
    • It also has an application in healthcare, to monitor patient stats through NFC-enabled wristbands.
    • NFC is used in wireless charging too.

    How safe is this technology?

    • NFC technology is designed for an operation between devices within a few centimetres from each other.
    • This makes it difficult for attackers to record the communication between the devices compared to other wireless technologies which have a working distance of several metres, according to the NFC forum, a non-profit industry association.
    • The user of the NFC-enabled device determines by the touch gesture which entity the NFC communication should take place with, making it more difficult for the attacker to get connected.
    • The security level of the NFC communication is by default higher compared to other wireless communication protocols.

    Where does it stand in comparison to other wireless technologies?

    • There are other wireless technologies available which are replacing cable-based connections.
    • The IrDa technology is a short range (a few metres) connection based on the exchange of data over infrared light where the two communication devices must be positioned within a line of sight.
    • Today, this technology is mainly used for remote control devices. For larger data communication with computer devices this technology was replaced by Bluetooth or WiFi connections.
    • However, for these technologies’ receiver devices need their own power supply due to the larger working distance.
    • Therefore, the receiving device cannot be powered by the radiofrequency (RF) field like in NFC, the NFC forum highlighted.
    • Another consequence of the larger working distance is the need for the user to configure their device and to pair them together for communication.

     

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  • India to export Wheat

    Russia and Ukraine account for about 25% of the world’s wheat exports. However, Russia’s invasion of Ukraine and the subsequent Western sanctions against Moscow have curtailed wheat supplies drastically.

    India eyeing the global wheat basket

    • As a result of War, many countries which were sourcing wheat mainly from these two nations are now in a dire need of alternatives.
    • India, the largest wheat producer after China, is reported to be eyeing the void.
    • The government plans to allow increased exports to cash in on the higher price of wheat in the international market.
    • With harvesting season (March to May) coinciding with the supply crunch, a bumper crop is also expected again this year.

    Global wheat scenario

    • While Russia and Ukraine exported 183 million tonnes (MT) and 91 MT of wheat, respectively, between 2017 and 2021, India exported just a fraction of its output, or just 12.6 MT, in the period.
    • Five other countries accounted for the bulk of wheat exports in this period, including the European Union (157 MT), the U.S. (125 MT), Canada (112 MT) and Australia (83 MT).
    • India, which had the second-highest wheat supply (including production, existing stocks and imports) in this period at 613 million tonnes, exported only 2% of this, with about 80% used for domestic consumption, and the rest stored.

    Impact of the war

    • Many countries in Africa, West Asia and Southeast Asia rely heavily on Russian and Ukrainian wheat.
    • Egypt, the biggest importer of wheat, sources 93% of its needs from the East European neighbors. Indonesia, the second-largest importer, has a 30% dependence on these two nations.
    • African nations such as Sudan (60% reliance), Tanzania (64%), Libya (53%), Tunisia (52%), and West Asian countries including Lebanon (77% dependency), Yemen (50%) and the UAE (42%) are also highly dependent on supplies from the two neighbors now at war.

    India’s focus markets

    • India is now focussing on exporting wheat to many nations such as Egypt, Turkey, Nigeria, Algeria, West Asia, Indonesia, Vietnam, Sri Lanka, Bangladesh, Thailand, the Philippines, Morocco and Tanzania.
    • To give impetus to the export promotion of wheat as well as to bring focus on the challenges and bottlenecks faced in production and export, APEDA has created a task group.

    Legal hurdles over Wheat Exports

    • If India decides to export wheat from its stocks, some developed nations may raise objections at the World Trade Organisation.
    • Already, in March, India was accused of exporting rice from its stocks.
    • India had replied that its rice exports were not from stocks set aside under the public stockholding programs.

    India’s consideration

    • The Supreme Court in the Right to Food case, observed that the peace clause adopted in WTO’s Bali Ministerial in 2014 does not prevent India from exporting foodgrains.
    • With the buffer stocks at hand, India should increase its wheat exports in order to stabilise global prices to the extent that it can.
    • It is also important because the countries that were dependent on Russia and Ukraine for their wheat are looking for an alternative source.

    Way ahead

    • There is a need to prioritise local prices and ensure adequate supplies for domestic consumption before deciding on the quantum of exports.
    • Ensuring the stability of prices in India and availability of grain for internal consumption should be of utmost priority to the Indian government
    • The government should plan this move in such a way that it does not impact local consumption.
    • A bumper crop of wheat is expected, so the government can procure enough for its distribution and buffer needs.
    • Further, as of now, there are no export restrictions, so farmers can also get the advantage of higher prices by selling the surplus to private traders for exports.

     

    Try 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=”ff150g1lak” question=”Please leave a feedback on this” opened=”1″]Answer is subjective to the year. But still you can give it a try.[/wpdiscuz-feedback]

     

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