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  • Fire Ready Formula by UNEP

    The United Nations Environment Programme (UNEP) has called on global governments to adopt a new ‘Fire Ready Formula,’ as it warned that incidences of wildfires would rise in the future.

    What is the Fire Ready Formula?

    • The new formula envisages that 66 per cent of spending be devoted to planning, prevention, preparedness and recovery.
    • The remaining 34 per cent can be spent on response.

    New “Fire Ready Formula” focuses on Planning and Prevention  

    Serial No Budget item Percentage share of the total on  wildfire management  recommended
    1 Planning 1 %
    2 Prevention 32 %
    3 Preparedness 13 %
    4 Response 34 %
    5 Recovery 20 %

    Why need such a formula?

    • The UNEP report projected that the number of wildfires is likely to increase by up to 14 per cent by 2030.
    • Integrated wildfire management was key to adapting to current and future changes in global wildfire risk, the UNEP.
    • There is a need to invest more in fire risk reduction, work with local communities and strengthen global commitment to fight climate change.
    • Achieving and sustaining adaptive land and fire management requires a combination of policies, a legal framework and incentives that encourage appropriate land and fire use.

    Back2Basics: United Nations Environment Programme (UNEP)

    • UNEP is responsible for coordinating responses to environmental issues within the United Nations system.
    • It was established by Maurice Strong, its first director, after the United Nations Conference on the Human Environment in Stockholm in June 1972.
    • Its mandate is to provide leadership, deliver science and develop solutions on a wide range of issues, including climate change, the management of marine and terrestrial ecosystems, and green economic development.
    • UNEP hosts the secretariats of several multilateral environmental agreements and research bodies, including:

    1.      Convention on Biological Diversity (CBD),

    2.      Minamata Convention on Mercury,

    3.      Convention on Migratory Species and

    4.      Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

    • In 1988, the World Meteorological Organization and UNEP established the Intergovernmental Panel on Climate Change (IPCC).
    • UNEP is also one of several Implementing Agencies for the Global Environment Facility (GEF) and the Multilateral Fund for the Implementation of the Montreal Protocol.

     

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  • NASA to decommission the International Space Station

    The National Aeronautics and Space Administration (NASA) has announced plans to retire and decommission the International Space Station (ISS) by 2031.

    What is the ISS?

    • The ISS was launched in 1998 as part of joint efforts by the U.S., Russia, Japan, Canada and Europe.
    • The idea of a space station originated in the 1984 State of the Union address by former U.S. President Ronald Reagan.
    • The space station was assembled over many years, and it operates in low-earth orbit.
    • Since its inception, it has served as a laboratory suspended in space and has aided multiple scientific and technological developments.
    • The ISS was originally built to operate for 15 years.

    Why was ISS launched?

    • A space station permits quantum leaps in research in science, communications, and in metals and lifesaving medicines which could be manufactured only in space.
    • ISS has consistently maintained human presence for the past 21 years, providing astronauts with sophisticated technologies for scientific research.

    Why is NASA planning to decommission the ISS?

    • The space station has already surpassed that checkpoint by being active for 21 years, with plans to continue operations till 2030.
    • The ISS goes through 16 rotations of the earth per day, causing extreme temperature changes on the exterior.
    • The side facing the sun can get heated up to 121°C while the temperature on the opposite, darker side can fall to –157°C, causing intense expansion and contraction of the building material.
    • This orbital thermal cycling, coupled with dynamic loading, affects the longevity of the primary structure of the space station.
    • The technical lifetime is also limited by parts like radiators, modules and truss structures that tend to degrade over time.

    What is the procedure to de-orbit the ISS?

    • NASA plans to remove the ISS from its orbit around the earth and eventually plunge it into the ocean at a point farthest from human civilisation.
    • The space agency will use the dual method of natural orbit decay and a re-entry manoeuvre to bring an end to the ISS as we know it.
    • According to the plan, the earth’s natural atmospheric drag will be used in lowering the altitude of the ISS while setting up the de-orbit.
    • The space station operators will then provide the final push to it to lower the structure to the maximum possible height and ensure safe re-entry into the earth’s atmosphere.
    • It would then lead to Point Nemo over the South Pacific Oceanic Uninhabited Area (SPOUA).
    • Dissembling process would have posed huge logistical and financial challenges.

    How big is it?

    • The ISS is a huge structure — almost the size of a football field — and it was not designed to be disassembled easily in space.
    • The station currently operates in low-earth orbit above 400 km in altitude, at a point where it still experiences atmospheric drag and requires re-boosts to continue in its orbit.
    • The station also has a mass of over 4,30,000 kg.
    • Existing propulsion systems do not have the capacity to raise the station’s altitude to a high target and escape low-earth orbit.
    • The random re-entry method was discarded since it carries a huge risk for the human population on the ground.

    What is the future of space stations?

    • As the ISS plans to end operations in space, new players are already lining up to replace it.
    • In January 2022, China announced that its space station will be ready for operations this year.
    • Blue Origin, the aerospace company founded by Jeff Bezos, has also announced its plans to build Orbital Reef, a commercially developed, owned, and operated space station in low-earth orbit.
    • Blue Origin is working alongside Sierra Space on the project.

     

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  • [pib] Quantum Key Distribution

    A joint team of scientists from DRDO and IIT Delhi, for the first time in the country successfully demonstrated Quantum Key Distribution (QKD) link between Prayagraj and Vindhyachal in Uttar Pradesh, a distance of more than 100 kilometers.

    What is QKD Technology?

    • Quantum key distribution (QKD) is a secure communication method that implements a cryptographic protocol involving components of quantum mechanics.
    • It enables two parties to produce a shared random secret key known only to them, which can then be used to encrypt and decrypt messages.
    • It gives the ability of the two communicating users to detect the presence of any third party trying to gain knowledge of the key.
    • This is a result of a fundamental aspect of quantum mechanics: the process of measuring a quantum system, in general, disturbs the system.
    • By using quantum superposition or quantum entanglement and transmitting information in quantum states, a communication system can be implemented that detects data leak.

    How does it work?

    • QKD works by transmitting many light particles, or photons, over fiber optic cables between parties.
    • Each photon has a random quantum state, and collectively, the photons sent make up a stream of ones and zeros.
    • This stream of quantum states that make up ones and zeros are called qubits — the equivalent of bits in a binary system.
    • When a photon reaches its receiving end, it will travel through a beam splitter, which forces the photon to randomly take one path or another into a photon collector.
    • The receiver will then respond to the original sender with data regarding the sequence of the photons sent, and the sender will then compare that with the emitter, which would have sent each photon.

    Benefits offered

    • It allows the detection of data leak or hacking because it can detect any such attempt.
    • It also allows the process of setting the error level between the intercepted data in dependence.

     

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  • India risks being left out of TRIPS waiver

    Context

    When the Covid-19 pandemic pounded the globe, India, with South Africa, piloted a proposal to waive key provisions of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement on Covid-19 vaccines.

    Significance of TRIPS waiver for Covid-19 related  medical products

    • The TRIPS agreement is part of the international legal order on trade enshrined in the World Trade Organization (WTO).
    •  The core idea behind the proposal is that intellectual property (IP) rights such as patents should not become a barrier in scaling up the production of medical products like vaccines, diagnostics and therapeutics essential to combat Covid-19.
    •  However, the WTO has failed to adopt a TRIPS waiver to date.
    • Geographically limited waiver: The developed world is talking of a TRIPS waiver that would be geographically limited and exclude India.
    • This is a failure of India’s economic diplomacy.
    • There are also attempts at limiting the waiver to vaccines alone, leaving out diagnostics and therapeutics.

    Domestic factors that affected India’s global campaign for TRIPS waiver

    1] India failed to use provisions under Indian Patent Act

    • During the entire pandemic, India rarely made use of the existing flexibilities under the Indian Patent Act, such as compulsory licences (CL), which are consistent with the TRIPS agreement, to increase the supply of Covid-19 medical products despite being nudged by the judiciary to do so.
    • On the contrary, during the peak of the second Covid wave, the central government filed an affidavit in the Supreme Court stating that the main constraint in boosting the production of key drugs is the unavailability of raw materials, not IP-related legal hurdles.
    • .This stand completely contradicted India’s argument internationally that views IP as an obstacle to augmenting the supply of Covid-19 medical products.

    2] Lack of national strategy

    • India did not proactively develop a national strategy to implement the TRIPS waiver as and when it is adopted.
    • In other words, a TRIPS waiver at the WTO would only be an enabling framework.
    • It would then require member countries to amend their domestic IP laws to implement the waiver.

    3] Failure to involve Indian pharma industry

    • The government failed to get the Indian pharmaceutical industry on board.
    • Pharmaceutical bodies are a divided lot with many Indian companies speaking against the waiver, thus denting India’s global campaign.

    4] Failure to walk the talk on indigenously developed Covaxin

    • India should have unlocked the technical know-how of Covaxin to the world.
    • While technology transfer agreements for Covaxin have been inked with domestic companies, making the vaccine technology available to anyone interested globally, at a minimal price.
    • This would have exhibited India’s resolve to walk the talk on the TRIPS waiver.

    Conclusion

    While India would oppose the attempted exclusion, the lesson is that for economic diplomacy to flourish, it should be backed by concrete actions on the domestic front.

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  • Panel on AFSPA removal misses ‘45-day’ deadline

    A committee constituted by the Union Home Ministry to study the withdrawal of the Armed Forces (Special Powers) Act, or AFSPA, from Nagaland, slated to submit a report within 45 days is yet to conclude its findings.

    AFSPA: A Backgrounder

    • The AFSPA, 1958 came into force in the context of insurgency in the North-eastern States decades ago.
    • It provides “special power” to the Armed Forces applies to the Army, the Air Force and the Central Paramilitary forces etc.
    • It has been long contested debate whether the “special powers” granted under AFSPA gives total immunity to the armed forces for any action taken by them.

    Armed Forces (Special Powers) Act, 1958

    • Armed Forces Special Powers Act, to put it simply, gives armed forces the power to maintain public order in “disturbed areas.”
    • AFSPA gives armed forces the authority use force or even open fire after giving due warning if they feel a person is in contravention of the law.
    • The Act further provides that if “reasonable suspicion exists”, the armed forces can also arrest a person without warrant; enter or search premises without a warrant; and ban the possession of firearms.

    What are the Special Powers?

    The ‘special powers’ which are spelt out under Section 4 provide that:

    (a) Power to use force, including opening fire, even to the extent of causing death if prohibitory orders banning assembly of five or more persons or carrying arms and weapons, etc are in force in the disturbed area;

    (b) Power to destroy structures used as hide-outs, training camps, or as a place from which attacks are or likely to be launched, etc;

    (c) Power to arrest without warrant and to use force for the purpose;

    (d) Power to enter and search premises without a warrant to make arrest or recovery of hostages, arms and ammunition and stolen property etc.

    What are the Disturbed Areas?

    • A disturbed area is one that is declared by notification under Section 3 of the AFSPA.
    • As per Section 3, it can be invoked in places where “the use of armed forces in aid of the civil power is necessary”.

    Who can declare/notify such areas?

    • The Central Government or the Governor of the State or administrator of the Union Territory can declare the whole or part of the State or Union Territory as a disturbed area.
    • A suitable notification would have to be made in the Official Gazette.

    Presently ‘Disturbed Areas’

    • AFSPA is currently in force in Assam, Nagaland, Manipur, 3 districts of Arunachal Pradesh, and areas falling within the jurisdiction of 8 police stations in Arunachal Pradesh bordering Assam.
    • In Jammu and Kashmir, a separate law Armed Forces (Jammu and Kashmir) Special Powers Act, 1990 has been in force.

     Is it a License to Kill?

    While the operation of the Section has been controversial in itself, it has attracted much criticism when actions have resulted in the death of civilians.

    • Power to kill: Section 4 of the Act granted officers the authority to “take any action” even to the extent to cause the death.
    • Protection against prosecution: This power is further bolstered by Section 6 which provides that legal can be instituted against the officer, except with the previous sanction of the Central Government.

    Supreme Court’s Observations over AFSPA

    • These extra-judicial killings became the attention of the Supreme Court in 2016.
    • It clarified that the bar under Section 6 would not grant “total immunity” to the officers against any probe into their alleged excesses.
    • The judgment noted that if any death was unjustified, there is no blanket immunity available to the perpetrator(s) of the offense.
    • The Court further noted that if an offense is committed even by Army personnel, there is no concept of absolute immunity from trial by the criminal court constituted under the CrPC.

    Constitutionality of AFSPA

    • Attempts have been made to examine the constitutionality of the Act on the grounds that it is contravention to the:
    1. Right to Life and Personal Liberty (Article 21) and
    2. Federal structure of the Constitution since law and order is a State subject

    Recommendations to repeal AFSPA

    (1) Justice B.P. Jeevan Reddy Commission

    • The 2004 Committee headed by Justice B.P. Jeevan Reddy, the content of which has never officially been revealed by the Government, recommended that AFSPA be repealed.
    • Additionally, it recommended that appropriate provisions be inserted in the Unlawful Activities Prevention Act, 1967 (UAPA) instead.
    • It also recommended that the UAPA be modified to clearly specify the powers of the armed forces and paramilitary forces and grievance cells should be set up in each district where the armed forces are deployed.

    (2) ARC II

    • The Administrative Reforms Commission in its 5th Report on ‘Public Order’ had also recommended that AFSPA be repealed.
    • It recommended adding a new chapter to be added to the Unlawful Activities Prevention Act, 1967.
    • However, the recommendation was considered first and then rejected.

    Controversies with AFSPA

    (1) Sexual Misconduct by Armed Forces

    • The issue of violation of human rights by actions of armed forces came under the consideration of the Committee on Amendments to Criminal Law (popularly known as Justice Verma Committee) set up in 2012.
    • It observed that- in conflict zones, legal protection for women was neglected.

    (2) Autocracy

    • The reality is that there is no evidence of any action being taken against any officer of the armed forces or paramilitary forces for their excesses.

    Caution given by the Supreme Court

    A July 2016 judgment authored by Justice Madan B. Lokur in Extra Judicial Execution Victim Families Association quoted the “Ten Commandments” issued by the Chief of the Army Staff for operations in disturbed areas:

    1. Definite circumstances: The “power to cause death is relatable to maintenance of public order in a disturbed area and is to be exercised under definite circumstances”.
    2. Declaration preconditions: These preconditions include a declaration by a high-level authority that an area is “disturbed”.
    3. Due warning: The officer concerned decides to use deadly force on the opinion that it is “necessary” to maintain public order. But he has to give “due warning” first.
    4. No arbitrary action: The persons against whom the action was taken by the armed forces should have been “acting in contravention of any law or order for the time being in force in the disturbed area”.
    5. Minimal use of force: The armed forces must use only the “minimal force required for effective action against the person/persons acting in contravention of the prohibitory order.”
    6. Empathy with perpetrators: The court said that: the people you are dealing with are your own countrymen. All your conduct must be dictated by this one significant consideration.
    7. People friendliness: The court underscored how the Commandments insist that “operations must be people-friendly, using minimum force and avoiding collateral damage – restrain must be the key”.
    8. Good intelligence: It added that “good intelligence is the key to success”.
    9. Compassion: It exhorted personnel to “be compassionate, help the people and win their hearts and minds. Employ all resources under your command to improve their living conditions”.
    10. Upholding Dharma (Duty): The judgment ended with the final Commandment to “uphold Dharma and take pride in your country and the Army”.

    Conclusion

    • Despite demands by civil society groups and human rights activities, none of the recommendations have not been implemented to date.

     

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  • What are Swiss Banks?

    A whistleblower has leaked information on more than $100 billion held in 30,000 accounts of Zurich-headquartered Credit Suisse, one of the world’s most infamous banks which hold black money.

    What is the news?

    • The investigation refocused attention on Swiss banks and their famous, century-old culture of secrecy.
    • This swiss tradition is under pressure as countries around the world try to get their super-rich to pay legitimate taxes on their wealth.

    Swiss Banks: Defined by Secrecy

    • Since at least the beginning of the 18th century, Geneva had become a favoured destination of French royalty and other European elites seeking discreet havens to stash their wealth.
    • In 1713, Swiss government authorities announced laws prohibiting bankers from giving out information about their customers.
    • Thus began a powerful culture of silence and secrecy that went on to become the defining feature of Swiss banking.
    • In 1934, Switzerland passed the Federal Act on Banks and Savings Banks, commonly known as the Banking Law of 1934 or the Swiss Banking Act.

    What’s behind this upmost secrecy?

    • Article 47 made it a crime to reveal details or information of customers to almost anyone — including the government — without their consent and in the absence of a criminal complaint.
    • Violators can get five years in prison; Article 47 lies at the heart of some of the most stringent banking secrecy laws anywhere.

    Why are they favourite destination to park black money?

    • As wealth became easily mobile across international borders, the safety and stability of Swiss banks, located in a peaceful country presented an irresistible attraction for the super-rich.
    • Switzerland itself is a politically neutral country.
    • Swiss bank accounts are attractive to depositors because they combine low levels of risk with very high levels of privacy.
    • The Swiss economy is extremely stable, and the banks are run at very high levels of professionalism.
    • Almost any adult in the world can open an account in a Swiss bank. Opening an account is not difficult, and requires not much more than basic KYC, including a proof of identity such as a passport.

    Question of ‘black money’

    • “Black money” allegedly stashed away by Indians in Swiss banks is a political issue in India, and parties and political functionaries have often made promises to “bring it back”.
    • Swiss authorities have maintained that they cooperate with the Indian government to fight tax evasion and fraud.

    Indian motives and moves

    • The two countries have had a system of automatic exchange of information in tax matters since 2018.
    • Under this, detailed financial information on all Indian residents with accounts in Swiss financial institutions was provided for the first time to Indian authorities in September 2019.

     

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  • Who are the Angadias?

    An FIR has been registered against some Mumbai Police officials last week for allegedly threatening Angadias and extorting money from them in south Mumbai.

    Who are Angadias?

    • The Angadia system is a century-old parallel banking system in the country where traders send cash generally from one state to another through a person called Angadia that stands for courier.
    • It is by and large used in the jewellery business with Mumbai – Surat being the most popular route as they are two ends of the diamond trade.
    • The cash involved is huge and it is the responsibility of the Angadia to transfer cash from one state to another for which they charge a nominal fee.
    • Generally, it is the Gujarati, Marwari and Malbari community that are involved in the business.

    How does the system work?

    • The Angadia system works completely on trust as large sums, at times in crores, are involved.
    • Generally, traders have the same Angadias for decades together.
    • If a trader from Zaveri Bazaar in south Mumbai wants to pay a diamond trader in Surat, he will send an Angadias who usually delivers the money within 24 hours.
    • They also have fixed trains that leave from Mumbai at night and reach Gujarat by early morning.
    • Usually, to verify authenticity, the trader will, for example, will give a Rs 10 note to the Angadia and provide the number of the note to the recipient.
    • It is only after the recipient confirms the note number that the Angadia will hand over the money to the person.
    • After making the payment, the Angadias return to Mumbai the same day.

    Is the system legal?

    • While the Angadia system per se is legal, there hangs a cloud over the activity as it is suspected that a lot of times it is used to transfer unaccounted money.
    • Since the business deals in cash and there is no account maintained for the same, there have been suspicions that it is also used for transfer of black money like the hawala.

     

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  • Issues with corporate governance in the context of NSE scam

    Context

    Over the past 10 days, the revelations about the functioning of the National Stock Exchange (NSE) during the tenure of Chitra Ramkrishna as Managing Director and Chief Executive Officer (CEO) have raised questions about the governance.

    Managerial misconduct at NSE

    •  There was managerial misconduct at NSE.
    • An effective board of directors: That is why we need checks on management such as an effective board of directors.
    • After the board was informed about the irregularities in Mr. Subramanian’s appointment, it discussed the matter but chose to keep the discussions out of the minutes on grounds of confidentiality and the sensitivity of the matter.
    • Second, despite being aware of Ms. Ramkrishna’s transgressions, it allowed her to resign and on generous terms instead of taking action against her.
    • Third, the Public Interest Directors (PIDs) failed to keep SEBI informed about the goings-on at the NSE.

    Issues with corporate governance

    • In the corporate world, much is forgiven on grounds of performance.
    • When a performing CEO chooses to unduly favour a particular individual or individuals, boards see that as a forgivable infirmity.
    • As for dysfunctional or ineffective boards, these remain the norm despite numerous regulations, seminars and papers over the past four decades.
    • In case of the the NSE, the problem is structural.
    • Selection and absence of penalty: It has to do partly with the way board members are selected and partly with the absence of penalties where directors do not live up to their mandate.
    • Board members are selected by top management (or, in India, by the promoter who is also top management).
    • Board members have every incentive to nod their heads to whatever the management wants to be done.

    Way forward

    • 1] Diversity in the selection of board members: As long as the top management selects all board members or can influence their selection, there is little hope of any active challenge to management.
    • The top management must be allowed to choose not more than 50% of the independent directors.
    • The rest must be chosen by various other stakeholders — financial institutions, banks, small shareholders, employees, etc.
    • 2] Accountability of board members: A second thing that needs to happen is holding board members accountable for lapses.
    • Regulators act against directors where there is financial malfeasance.
    •  This must change. Regulators must penalise errant directors through a whole range of instruments — strictures, financial penalties, removal from boards and a permanent ban from board membership.
    • 3] Accountability of regulator: Regulators themselves must be held to account.
    • In the NSE affair, questions have been asked of SEBI.
    •  For instance, why did SEBI not seek the help of the cyber police to ascertain the identity of the yogi?
    • SEBI needs to explain itself.

    Conclusion

    Convulsions of outrage after particular episodes will not take us very far. We need significant institutional reform if corporate governance is not to remain an illusion.

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  • All you need to know about Satellite Internet

    The Reliance has launched a joint venture (JV) with European satellite-based broadband service company SES to enter the satellite internet space.

    What is Satellite Internet?

    • The technology beams the internet down from a satellite that’s orbiting the Earth.
    • Jio, Bharti Airtel Ltd’s OneWeb, and billionaire Elon Musk’s Starlink want to send thousands of these satellites to orbit.
    • OneWeb plans to launch 648 satellites, while Musk’s Starlink has permits to launch over 4,000 of them.
    • So far, OneWeb has launched over 400 satellites, while Starlink has launched over 2,000 satellites.
    • It’s worth noting that Starlink plans to launch 42,000 satellites in the coming decade. Jio’s journey has only just begun.

    Which satellites will Indian JV use?

    • The JV will use geostationary (GEO) and medium earth orbit (MEO) satellites, while Starlink and OneWeb use low earth orbit (LEO) satellites.
    • LEO satellites are cheaper to make and deploy, but require a satellite constellation working in sync to offer coverage on earth.
    • On the other hand, GEO and MEO satellites are larger, deployed in higher orbits, and therefore cost more.
    • These satellites cover a larger area and require fewer ground stations, which makes them ideal for targeted coverage area.
    • LEOs move faster and can hence provide global coverage.

    What are the advantages of satellite internet?

    • The reason telecom firms want to explore satellite internet is because there are areas where fibre connections just can’t reach.
    • Satellite networks are used to bring connectivity in such areas, which include hills and remote islands.
    • Consumer applications are new, but satellite networks have been used for ages in military applications.

    Are there any disadvantages?

    • The applications and the power of satellite internet are often exaggerated.
    • In reality, these networks have limitations, the biggest being high latency and low bandwidths.
    • Latency is all about internet speed, while bandwidth determines how many devices can connect on a network at the same time.
    • Experts say current satellite connections will bring 1-2 MB bandwidth, which just about qualifies as broadband under India’s broadband policy.
    • Trouble-shooting can be a problem because it needs specialized knowledge.

    Who can use satellite internet?

    • Militaries across the world have depended on satellite communications for a long time.
    • However, many military experts, too, consider this form to be unreliable and too expensive to be made the sole communication medium.
    • In remote areas, satellite internet can still allow businesses to open up local branches and provide digital services.
    • In theory, a bank could set up more ATMs in remote regions if it has access to satellite internet.

     

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  • EV Battery Swapping Policy

    NITI Aayog is holding a consultation on the upcoming electric vehicle (EV) battery swapping policy.

    What is BaaS?

    • Battery-as-a-service (BaaS) is seen as a viable charging alternative.
    • Manufacturers can sell EVs in two forms: Vehicles with fixed or removable batteries and vehicles with batteries on lease.
    • If you buy an electric scooter with battery leasing, you do not pay for the cost of the battery—that makes the initial acquisition almost 40% cheaper.
    • Users can swap drained batteries for a fully charged one at a swap station. The depleted batteries are then charged on or off-site.
    • The advantages of swapping include low downtimes for commercial fleets, reduced space requirements, and lower upfront costs.
    • It is also a viable solution for those who don’t have parking spots at home.

    What is battery interoperability?

    • That’s when a battery is compatible across vehicles and chargers, so you can seamlessly swap a battery at any swap station. This can help achieve scale.
    • However, manufacturer and service providers say there are safety concerns around the ‘one-size-fits-all’ model and caution too much standardization can kill innovation.

    Why hasn’t BaaS taken off yet?

    • There are economic and operational constraints.
    • Energy service providers offering swapping solutions have to charge 18% goods and services tax (GST) for swapping, compared to 5% GST on the purchase of an EV.
    • Additionally, the government’s FAME-II incentives are not offered to vehicles sold with BaaS or swap station operators.
    • While these are economic disadvantages compared to direct charging solutions, the lack of a dense and interoperable battery swap infrastructure has also hindered the roll-out.
    • Manufacturers, on the other hand, are keen to create proprietary battery and charging systems.

    Issues with BaaS

    • There is a need for standardization of safety specifications  as well as  the battery.
    • Swapping in the various permutations and combinations of batteries at a station  where  they  have not been tested for compatibility could lead to safety hazards.
    • Also, mandating only one type of battery to  be eligible for  concessions  would be  disadvantageous  to  many  players.

    Who offers BaaS in India?

    • Bengaluru-based startup Bounce is the first e-two-wheeler maker to sell its scooters with BaaS, and claims to have achieved a million battery swaps.
    • Others like Ola Electric and Ather have stuck to direct charging solutions, while Hero Electric offers both fixed and removable batteries.
    • Many makers are working with energy service providers to offer battery swapping.
    • The global precedent is a mixed bag: Ample, which offers swaps in the US, has found success with commercial fleets, while most personal users charge at home.

    Why is Battery Swapping needed?

    • High Cost of EVs: An EV, by industry standards, is 1.5-2x costlier than IC Engine counterpart and at least half the cost is from the battery pack.
    • Cost reduction: Many manufacturers are offering batteries separately from a vehicle, reducing the cost. In that case, a fleet owner can buy vehicles without battery and utilize battery swapping.
    • Range Anxiety: Another major reason stopping people from buying EVs is range anxiety, or in simple terms, the fear of battery getting empty without finding a charging station.
    • Inadequate charging infrastructure: Unlike petrol pumps, EV charging stations are rare to spot and that further increases the range anxiety exponentially, especially while going on a road trip.
    • Hazard management: In case of a Swapping Station, one can simply locate a station, go and replace the empty battery with a new one.

     

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