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GS Paper: GS3

  • [pib] 14 Indian Tiger Reserves get Global CA/TS recognition

    The Environment Ministry has released the names of the 14 tiger reserves that had received the accreditation of the Global Conservation Assured|Tiger Standards (CA|TS), an accreditation tool agreed upon by tiger range countries.

    Conservation Assured | Tiger Standards (CA|TS)

    • CA|TS has been agreed upon as an accreditation tool by the global coalition of Tiger Range Countries (TRCs) and has been developed by tiger and protected area experts.
    • Officially launched in 2013, it sets minimum standards for effective management of target species and encourages the assessment of these standards in relevant conservation areas.
    • CA|TS is a set of criteria that allows tiger sites to check if their management will lead to successful tiger conservation.
    • The Global Tiger Forum (GTF), an international NGO working on tiger conservation, and World Wildlife Fund India are the two implementing partners of the National Tiger Conservation Authority for CATS assessment in India.

    Which are the 14 reserves?

    The 14 tiger reserves which have been accredited are:

    • Manas, Kaziranga and Orang in Assam,
    • Satpura, Kanha and Panna in Madhya Pradesh,
    • Pench in Maharashtra,
    • Valmiki Tiger Reserve in Bihar,
    • Dudhwa in Uttar Pradesh,
    • Sunderbans in West Bengal,
    • Parambikulam in Kerala,
    • Bandipur Tiger Reserve of Karnataka and
    • Mudumalai and Anamalai Tiger Reserve in Tamil Nadu

    Significance

    • CATS accreditation is a global recognition of good tiger governance.
    • This recognition means a lot in the context of adaptation to climate change, sustainability of ecosystem services, and safeguarding disruption of zoonotic cycles, through an umbrella species approach.
    • The aspects monitored for accreditation include the importance and status of a reserve, management, community participation, tourism, protection, habitat management, and tiger populations.

    Answer this PYQ in the comment box:

    Q.Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”? (CSP 2020)

    (a) Corbett

    (b) Ranthambore

    (c) Nagarjunasagar-Srisailam

    (d) Sundarbans

  • How to exit farming risk trap

    Context

    The farmers’ protest against farm laws brings into focus the factors afflicting agriculture in India.

    Issues of Indian agriculture

    • Some 50 years after the Green Revolution, an all-India agricultural landscape is characterized by relatively low productivity levels that co-exist with high levels of variation in crop yields across our farming districts.
    • Excessive control: Various government agencies have a say on all aspects of the farmer’s livelihood — the latest count includes 13 central and countless state ministries and agencies.
    • These agencies oversee rural property rights, land use, and land ceilings; commodity prices, input subsidies, and taxes, infrastructure, production, credit, marketing and procurement, public distribution, research, education, trade policy, etc.
    • Poor policies: The result has been a mix of arbitrary and conflicting policy interventions by both the central and state government agencies.
    • Poor provision of basic public goods: This, combined with poor and varying levels of provision of basic public goods, including irrigation explains the poor state of Indian agriculture.

    Risk-to-return in agriculture

    • The following figures indicate the median (typical) district-level yield (in tonnes-per-hectare) for four major crops — rice, wheat, maize, and cotton — along with the geographic variability of this yield (risk) across all reporting districts for each year from 1966 to 2018.
    • Combining these two values — median district yield and its geographic variability across all farming districts — provides us a measure of the all-India level of risk-to-return, in percentage terms.

    Lessons from risk-to-return profile

    • One, the large gap in rice and wheat yields that opened up between Punjab and Haryana and the farm districts in the rest of the country remains far from being closed.
    • Limited mobility of ideas: There is severe unevenness in the provision of common goods across districts — irrigation, roads, power, etc.
    • There is also the absence of well-functioning markets for agricultural land, crops, and inputs, the slow labour reform, and the poor quality of education.
    • These two factors have worked to reduce overall resource mobility within and across our farming districts.
    • Most importantly, they have limited the mobility of ideas and technology needed to increase productivity and reduce the variation of yield across districts.
    • Decentralization failed: As a result of lack of mobility, the real promise of a decentralized system — of experimentation, of learning from each other, and the adoption of best practices and policies — has failed to materialize.
    • Distortion due to subsidies: Various input subsidies and minimum price guarantee procurement schemes provided by the state have worked to worsen the overall levels of productivity and the risk in agriculture, generating adverse effects for all of us, through the degradation of our water resources, soil, health, and climate.
    • At the same time, these policies have tightened the trap our farm households find themselves in.
    • Thus, as is evident in the next chart, outside of rice and wheat, the risk-to-return levels are even higher in the case of maize and cotton, including for Punjab.
    • As a result, the farm households of Punjab and Haryana fear both, the loss of state support for rice and wheat and the higher risks implied by a switch to other crops.

    Way forward

    • Minimize risk: The guiding principle for three farm laws must be to create conditions that allow farm households to maximize their income while minimizing the overall level of risk in Indian agriculture.
    • Freedom of choice: Farmers must be made free to determine the best mix of resources, land, inputs, technology, and organizational forms for their farms.
    • More freedom: Farmers, just as entrepreneurs in the non-farm sector, must be allowed to enter and exit agriculture, on their own terms and contract with whomever they wish.
    • Allow entry of corporates: Entry of the large or small private corporates in the Indian agricultural stream will help the Indian farmer, along with the rest of us, move to a low-risk, high-return path of progress.

    Conclusion

    The more we delay the needed reforms, the more difficult it will prove to be for all of us to extract ourselves out of these risk-laden currents of agriculture.

  • What is National Farmers Database?

    The Centre’s new National Farmers Database will only include land-owning farmers for now as it will be linked to digitized land records.

    National Farmers Database

    • The Central government had proposed an Agristack initiative to create a digital database that focuses on farmers and the agricultural sector.
    • As part of the first step of this initiative, the government has initiated a farmers database that would serve as the core of the Agristack.
    • The database would be linked to the digital land record management system and would thus only include farmers who were legal owners of agricultural land.
    • The database would facilitate online single sign-on facilities for universal access and usher in proactive and personalized services to farmers such as DBT, soil and plant health advisories, weather advisories
    • It would also facilitate seamless credit & insurance, seeds, fertilizers, and pesticide-related information.

    Need for such database

    • India has 140 million operational farmland holdings.
    • The availability of a database would serve an important role in the formulation of evidence-based policies for the agricultural sector.
    • Also, the government can make use of the database for targeted service delivery with higher efficiency and in a focused and time-bound manner.
    • The database could be used to select beneficiaries of government schemes.
    • The availability of data will make it possible to implement digital technologies like AI/Machine Learning, IoT in the agricultural domain, thus opening up the sector to immense opportunities for improvement in productivity.

    Back2Basics: AgriStack Initiative

    • The AgriStack is a collection of technologies and digital databases proposed by the Central Government focusing on India’s farmers and the agricultural sector.
    • The central government has claimed that these new databases are being built to primarily tackle issues such as poor access to credit and wastage in the agricultural supply chain.
    • Under AgriStack’, the government aims to provide ‘required data sets’ of farmers’ personal information to Microsoft to develop a farmer interface for ‘smart and well-organized agriculture’.
    • The digital repository will aid the precise targeting of subsidies, services, and policies.
    • Under the program, each farmer of the country will get what is being called an FID, or a farmers’ ID, linked to land records to uniquely identify them.

  • Telangana’s Dalit Bandhu Scheme

    Telangana CM has recently been informed to spend Rs 80,000 crore to Rs 1 lakh crore for Dalit Bandhu Scheme, touted as the country’s biggest direct benefit transfer scheme, to empower Dalits across the state.

    Dalit Bandhu Scheme

    • Dalit Bandhu is the latest flagship program of the Telangana government.
    • It is envisioned as a welfare scheme for empowering Dalit families and enable entrepreneurship among them through a direct benefit transfer of Rs 10 lakh per family.
    • This is, once implemented on the ground, going to be the biggest cash transfer scheme in the country.
    • Apart from monetary assistance, the government plans to create a corpus called the Dalit Security Fund permanently to support the beneficiary in the event of any adversities.
    • This fund will be managed by the district collector concerned, along with a committee of beneficiaries.
    • The beneficiary would be issued an identity card with an electronic chip, which will help the government monitor the progress of the scheme.

    Where is the scheme being implemented?

    • The CM decided to implement it on a pilot basis in the Huzurabad Assembly constituency.
    • Based on the experiences of implementation in Huzurabad, the scheme will be rolled out across the state in a phased manner.
    • Officials were asked to visit Dalit colonies and interact with Dalit families to find out their views and opinions before preparing guidelines for the scheme.
    • The pilot project will focus on monitoring the implementation of the scheme, evaluating the results, and also creating a safety fund for the beneficiaries with the government’s participation.

    How is Dalitha Bandhu being implemented?

    • The CM has ensured that the Dalit Bandhu is free.
    • The governments in the past came out with some schemes and asked for bank guarantees.
    • This is not a loan. There is no need to repay it. There is no chance of any involvement of middlemen.
    • To promote Dalit entrepreneurship, the government has decided to start a system of reservations for Dalits in sectors where the government issues licenses.
    • The government will provide reservations for Dalits in issuing licenses for wine shops, medical shops, fertilizer shops, rice mills, etc.

  • [pib] King Chilli ‘Raja Mircha’ from Nagaland exported to London

    In a major boost to exports of Geographical Indications (GI) products from the north-eastern region, a consignment of ‘Raja Mircha’ also referred to as king chili from Nagaland was exported to London via Guwahati by air for the first time.

    Raja Mircha

    • The King chili from Nagaland is also referred to as Bhoot Jolokia and Ghost pepper.
    • It got GI certification in 2008.
    • Raja Mircha contains Scoville Heat Units (SHUs) which makes it the world’s hottest chili.
    • It belongs to the genus Capsicum of the family Solanaceae.
    • It has been considered as the world’s hottest chili and is constantly on the top five in the list of the world’s hottest chilies based on the SHUs.

    Answer this PYQ in the comment box:

    Q.Which of the following has/have been accorded ‘Geographical Indication’ status?

    1. Banaras Brocades and Sarees
    2. Rajasthani Daal-Bati-Churma
    3. Tirupathi Laddu

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    Back2Basics: Geographical Indication (GI)

    • The World Intellectual Property Organization defines a GI as “a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin”.
    • GIs are typically used for agricultural products, foodstuffs, handicrafts, industrial products, wines, and spirit drinks.
    • Internationally, GIs are covered as an element of intellectual property rights under the Paris Convention for the Protection of Industrial Property.
    • They have also covered under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.

  • Unlocking recovery

    Context

    Many developed countries are poised for strong growth. This will compel their respective central banks to begin normalizing the extremely loose monetary policies. This will require a reorientation of India’s stimulus strategy.

    Global growth momentum

    • On the global front, the growth momentum has been strong, particularly in the US and China, although recent data suggest this has peaked or is even stalling.
    • Post the perceived hawkishness of the last US Federal Reserve policy meeting, the traded interest rate of the benchmark US 10-year treasury bond fell to below 1.3 percent.
    • The falling rate reflects disquiet about the durability of the recovery once the fiscal stimulus starts waning.
    • China recently announced a 0.5 percent cut in the required reserves ratio for banks.
    • Europe’s recovery had begun to inch up, but members of the European Central Bank have begun to push back on market expectations of early tapering.
    • However, some smaller global central banks have started normalizing their respective Quantitative Easing programs.

    Growth momentum in India

    • The encouraging aspect of the recovery is the resilience of many mid-and large-turnover companies in the face of the debilitating public health crisis
    • In India, there are signs that the recovery momentum began to strengthen from mid-June, and of demand accelerating, despite capacity utilization in many industries below thresholds needed for the next round of private investments.
    • In line with the market consensus, we think that 2021-22 growth is likely to be in the 9-10 percent range.
    • Tax collections, another indicator of activity, even if a bit skewed, support this view.
    • A revival of retail consumer demand is critical for sustaining the recovery. Reports from industry associations suggest a somewhat mixed picture.
    • Demand emanating from rural geographies is important for sustaining recovery.
    • Demand for work under MGNREGA suggests continuing stress.
    • Monsoons will be a big contributor.
    • The sowing of Kharif crops stalled in late June but is predicted to pick up again in mid-July.
    • Renewed government intervention is required.

    Factors deciding the trajectory of recovery

    • Inflation: Rising inflation could force a monetary policy normalization faster than presently anticipated.
    • Global recovery: Effects global central banks’ policy tightening will only add to the difficulty of balancing a policy-induced increase in interest rates, moderating financial markets volatility, and maintaining growth incentives.
    • Access to credit: Access to credit remains a crucial input in the recovery matrix, particularly for small and micro-enterprises.
    • The Union government’s Emergency Credit Line Guarantee Scheme (ECLGS) has reportedly been very effective in stabilizing the solvency (and cash flows) of micro and small businesses.

    Way forward

    • Expansion of subvention scheme: The expansion of subvention (ECLGS) is probably the most effective template to incentivize credit flows, leveraging on the government’s balance sheet to take on the first loss risks.
    • At the same time, capex proposals of the Centre and states should gradually draw in private sector capex.
    • Policy intervention to create a level field: Corporate health has improved, with lower debt on balance sheets.
    • Adoption of technology is widespread; this will boost productivity and competitiveness.
    • But these factors reinforce trends in consolidation and market power.
    • It will require policy interventions to create a more level playing field for smaller companies, which is crucial for job creation.

    Conclusion

    Policy support will thus need to adapt from the “revive” to the “thrive” phase, to place India on a sustained 7 percent-plus growth path.

  • Theatre Command under Chief of Defence Staff is not a good idea

    Context

    The government is reportedly planning to re-organise the military into a theatre command under the chief of defence staff (CDS) in which the assets of the Air Force will be split into four and distributed among four operational theatres.

    Background of the creation of CDS

    • In 2012, the Naresh Chandra Committee suggested the creation of a CDS, which would take on overall functions of the chairman, chiefs of committee as well as the responsibilities pertaining to centralised planning, induction, training, intelligence and logistics. 
    • Operations, according to the committee’s suggestion, would continue to be managed by the respective chiefs of staff.
    • However, sometime in 2016-17, this idea was modified to organise the operational assets of the three services into four theatre commands, all of which are now proposed to be brought under the CDS.

    Issues with creating theatre command by dividing Air Force

    • Professional leadership is critical in support elements: The Air Chief’s professional leadership of the Air Force is crucial to orchestrate a variety of support elements like aerial tankers, AWACS (Airborne Warning And Control Systems), AEW, Heliborne support and UAVs in an “offensive operation”.
    • Lack of in-dept understanding: A land theatre command, if given power over the air elements, may not have the confidence to launch such a mission because of the lack of in-depth understanding of the organisational complexity and the risks involved.
    • Dilution of assets may harm effectiveness: Dilution of the combat assets of the Air Force, a 30-squadron force consisting of five or six types of aircraft, might severely affect mission-effectiveness.
    • Role of CDS: It is extremely doubtful if the CDS can cope with the enhanced responsibilities that include operations, albeit through the theatre commanders.
    • That would leave only training, maintenance, and support under the chiefs of staff — a gross under-utilisation of the operational leadership built over 40 years.
    • Resource limitations: Forming a separate air defence command for the air defence of the entire nation seems an impractical idea considering our resource limitations.
    • Current arrangement functioned effortlessly: The current arrangement of a decentralised air defence organisation managed by Air Force geographical commands has functioned faultlessly.
    •  Flexibility: The existing structures afford better flexibility.
    • There will be significant expenditure to construct the operational infrastructure of the theatre commands.
    • Timing: We are trying to effect changes at a time the military is deployed actively.
    • The Chinese have dug in hard, and we do not yet know their strategy.
    • To divide the Air Force into four units at this moment is inadvisable.

    Way forward

    • White paper: There is no white paper on the advantages of the theatre commands or one listing the merits of the CDS donning the mantle of the operational head of the entire military operation.
    • So, a white paper on these aspects could clear the air over the utilities of such moves.
    • Joint planning is a must, but operations are best undertaken by individual services who know what other services are doing and when.

    Conclusion

    Splitting the asset of the Air Force would result in dilution of its power and is not advisable at the current juncture.

  • Electricity (Amendment) Bill, 2021

    The Electricity (Amendment) Bill, 2021 will be introduced and is likely to be pushed for passage in the ongoing monsoon session of Parliament.

    Need for this bill

    • Electricity distribution is at the cutting edge of the power sector.
    • Despite the last 25 years of power sector reforms, the electricity distribution companies are unable to pay the generation and transmission companies as well as banks / financial institutions due to poor financial health.
    • In this situation, patchwork may not turn around the power sector and a holistic approach is the need of the hour.
    • The provisions of the proposed amendment bill have to be seen in this context.

    Key features of Electricity (Amendment) Bill, 2021

    De-licensing: Electricity distribution is delicensed, at least in the letter, giving consumers a choice to choose a distribution company in their area.

    Universal service obligation: There is the provision of a universal service obligation fund, which shall be managed by a government company.  This fund shall be utilized to meet any deficits in cross-subsidy. In case of supply through pre-paid meters, security deposit will not be required.

    Appellate Tribunal for Electricity (APTEL): It is being strengthened by an increasing number of members. The domains from where the chairperson and members of Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERC) will come have been described.

    Renewable Power Obligation: Keeping in view the national climate change goals, the responsibility of fixing renewable power obligations (RPO) is shifted from state commissions to the central government.

    Penalty: Penalty for contravention of the provisions of the Act has been increased up to Rs 1 crore. Non-fulfillment of RPO will attract stringent penalties as per the proposed amendments.

    Important issues not addressed

    • Recovery of dues: Discoms collect revenue from the consumers and feed the supply chain upstream. They are, however, unable to recover their costs, out of which nearly 75-80 percent are power purchase costs.
    • Tariff: A broad guideline to reduce tariffs could have been part of the proposed amendment bill. Recently, the Forum of Regulators came out with a report on cost elements of tariff and suggested measures to reduce the same.
    • AT&C losses: The Aggregate Technical & Commercial (AT&C) losses of 12 states were more than 25 percent and of six states between 15 and 25 percent, according to a report released by the distribution utility forum based on Uday dashboard in 2020.

    Some provisions may backfire

    • Power distribution is proposed to be delicensed. However, the eligibility criteria shall be prescribed by the central government and the conditions for registration by the SERC.
    • There is a provision for amendment and cancellation of registration as well. In case these provisions are implemented similar to a license, the purpose shall be defeated.
    • The newly registered companies are given the facility to use the power allocation as well as the network of existing discom, which may be dilapidated in many cases due to paucity of funds.
    • With such a network, the quality of supply to the electricity consumers will be seriously affected.
    • Financial penalty on discom may not fully compensate and satisfy the consumers in such cased.

    Some of the issues that may be considered for holistic power sector reforms:

    • The provision of coal and railway freight regulators
    • Linkage of AT&C losses as key performance indicator for release of central funds to states by any ministry
    • Provision of a risk management committee and corporate governance within discoms, irrespective of being listed company

    Way forward

    • Fourteen years after the last amendment to the Electricity Act, currently, the focus of the amendment is on competition and compliance.
    • Electricity regulatory commissions hold the key to take this forward.
    • The commissions should be built as strong institutions and their autonomy should be respected and maintained.
    • After providing a robust framework for fair competition, the government should minimize its frequent interventions in the sector.
    • The government interventions often distort the market and maybe resorted to only in case of market failure.

  • Revival of Construction sector

    Context

    The latest estimates of the fourth quarter of financial year 2020-21 (January-March) brought some relief, for policymakers.

    Interpreting the construction sector GVA increase

    • The construction sector showed a 15 per cent increase in gross value added (GVA) in the last quarter, which is nearly double the growth experienced by the sector in the previous year (7.7 per cent).
    • Sign of better times: The buoyant growth of this sector has been hailed by policymakers not just as a sign of better times to come,
    • Addressing distress: Growth in the construction sector is also considered as the capacity of the economy to address the distress that households have faced in the past year.
    • Addressing needs of workforce: The Chief Economic Advisor pointed to the high growth rates in construction possibly to indicate that growth would address the needs of the beleaguered workforce.
    • The Union budget 2021 has also allocated a considerable sum towards infrastructure and construction in the hopes of the sector playing a catalysing role.

    Issues with relying on the growth of high-employment sector

    • No strong correlation: While GVA and/or GDP are considered as indicators of economic health, it has been argued in detail how it may not be prudent to rely on these alone as measures of economic welfare.
    • In particular, mere growth in a sector may not necessarily translate into benefits for its workers.
    • In the last quarter of 2019-2020, when construction GVA grew at nearly 8 per cent, employment in the same sector grew by 3 per cent based on our estimates from CMIE-CPHS.
    • Fallback employment option: The fact that employment grew in this sector even during a crisis year is largely because of the fact that the construction sector emerged as a fallback employment option for many displaced workers.
    • During “normal” times, the sector typically employs only about 10-15 per cent of India’s total workforce.
    • Even if this sector were to expand in line with its GVA growth, it will not be able to provide employment beyond a certain level.
    • Employment alone is not enough: Moreover, employment alone is not enough.
    • Earnings for an average daily wage worker in the sector have actually declined this year.
    • Again, the overall economic growth in GVA in the sector has not been passed on to the workers.

    Way forward

    • Any relief effort that relies solely on economic growth as a means to uplift workers will be sorely inadequate as we see from the experience of workers in construction.
    • The need of the hour is to go beyond relying on sectoral growth as a means of delivering relief to workers.
    • Direct transfers of cash and food are also needed, as is livelihood support through employment guarantee programmes.

    Conclusion

    While boosting growth of high-employment sectors is one strategy to adopt, this has its limitations. The capacity of a sector is limited in terms of the number of workers that it can absorb, and the extent to which growth can benefit workers.

    Back2Basics: What is GVA?

    • Gross value added (GVA) is an economic productivity metric that measures the contribution of a corporate subsidiary, company, or municipality to an economy, producer, sector, or region.
    • GVA is essentially a measure of the “net” value of output — deducting the cost of any input that went into its production from its total value.
    • GVA thus adjusts gross domestic product (GDP) by the impact of subsidies and taxes (tariffs) on products.

  • Russia’s Nauka Module for ISS

    Pirs, a Russian module on the International Space Station (ISS) used as a docking port for spacecraft and as a door for cosmonauts to go out on spacewalks. In its place, Russia’s space agency Roscosmos will be attaching a significantly larger module called Nauka.

    What does Russia’s new Nauka module do?

    • Nauka, which is 42 feet long and weighs 20 tonnes, was supposed to be launched as early as 2007, as per the ISS’s original plan.
    • Nauka — meaning “science” in Russian — is the biggest space laboratory Russia has launched to date, and will primarily serve as a research facility.
    • It is also bringing to the ISS another oxygen generator, a spare bed, another toilet, and a robotic cargo crane built by the European Space Agency (ESA).
    • The new module was sent into orbit using a Proton rocket — the most powerful in Russia’s space inventory — on July 21 and will take eight days to reach the ISS.

    What kind of research goes on at the International Space Station?

    • A space station is essentially a large spacecraft that remains in low-earth orbit for extended periods of time.
    • It is like a large laboratory in space and allows astronauts to come aboard and stay for weeks or months to carry out experiments in microgravity.
    • For over 20 years since its launch, humans have continuously lived and carried out scientific investigations on the $150 billion ISS under microgravity conditions, being able to make breakthroughs in research not possible on Earth.

    Back2Basics: International Space Station (ISS)

    • The International Space Station, which launched its first piece in 1998, is a large spacecraft that orbits around the Earth and is home to the astronauts.
    • The ISS is currently the only active space station in the earth’s orbit.
    • The first crew on the space station arrived on November 2, 2000.
    • The space station is home to a minimum of six astronauts, with two bathrooms, a gymnasium, and a big bay window.
    • It is a joint project between five participating space agencies -NASA (USA), Roscosmos (Russia), JAXA (Japan), ESA (Europe), and CSA (Canada).