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GS Paper: GS3

  • [pib] Transport Initiative for Asia (TIA) Project

    NITI Aayog and World Resources Institute (WRI), India, jointly launched the ‘Forum for Decarbonizing Transport’ in India as part of the NDC-Transport Initiative for Asia (NDC-TIA).

    Transport Initiative for Asia

    • The NDC Transport Initiative for Asia (TIA 2020-2023) is a joint programme that will engage China, India, and Vietnam in promoting a comprehensive approach to decarbonizing transport in their respective countries.
    • The project is part of the International Climate Initiative (IKI).
    • NITI Aayog is the implementing partner for the India component of the project.
    • The project aims at bringing down the peak level of GHG emissions (transport sector) in Asia (in line with a well below 2-degree pathway), resulting in problems like congestion and air pollution.

    Why need such initiative?

    • India has a massive and diverse transport sector, which is also the third most CO2 emitting sector.
    • Data suggests that within the transport sector, road transport contributes to more than 90% of the total CO2 emissions.
    • The NDC-TIA India component focuses on developing a coherent strategy of effective policies and the formation of a multi-stakeholder platform for decarbonizing transport in the country.

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  • Places in news: Corbett Tiger Reserve

    The Delhi High Court has asked the National Tiger Conservation Authority (NTCA) to consider as a representation a petition to stop the alleged illegal construction of bridges and walls within the tiger breeding habitat of the Corbett Tiger Reserve.

    Jim Corbett National Park

    • Jim Corbett NP is the oldest national park in India and was established in 1936 as Hailey National Park to protect the endangered Bengal tiger.
    • It is located in Nainital district and Pauri Garhwal district of Uttarakhand and was named after hunter and naturalist Jim Corbett.
    • The park was the first to come under the Project Tiger initiative.
    • It has sub-Himalayan belt geographical and ecological characteristics.
    • Dense moist deciduous forest mainly consists of sal, haldu, peepal, rohini and mango trees.
    • Forest covers almost 73% of the park, while 10% of the area consists of grasslands.

    Try answering this PYQ:

    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) Sunderbans

     

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    Back2Basics: National Tiger Conservation Authority

    • The NTCA was established in December 2005, following a recommendation of the Tiger Task Force, constituted by the Prime Minister of India.
    • The Wildlife Protection Act of 1972 was amended in 2006 to provide for constituting NTCA responsible for the implementation of the Project Tiger plan to protect endangered tigers.
    • It works for the reorganized management of Project Tiger and the many Tiger Reserves in India.
    • A program for protection called, ‘Tiger Protection Program’ (popularly known as Project Tiger) was started in 1973, by the GOI in co-operation with WWF.

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  • Issues in India’s Cyclone Management

    Context

    The severe cyclones, Tauktae and Yaas, battered India earlier this year. With a rise in the frequency of devastating cyclones, India needs to look at long-term mitigation measures.

    India’s vulnerability

    • The Indian coastline is around 7,500 km; there are 96 coastal districts (which touch the coast or are close to it), with 262 million people exposed to cyclones and tsunamis.
    • The World Bank and the United Nations (2010) estimate that around 200 million city residents would be exposed to storms and earthquakes by 2050 in India.
    • Between 1891 and 2020, out of the 313 cyclones crossing India’s eastern and western coasts, the west coast experienced 31 cyclones, while 282 cyclones crossed the east coast.
    • Among the natural disasters, cyclones constituted the second most frequent phenomena that occurred in 15% of India’s total natural disasters over 1999-2020.
    • According to the Global Climate Risk Index report 2021, India ranks the seventh worst-hit country globally in 2019 due to the frequent occurrence of extreme weather-related events.
    • Increase in frequency: According to India Meteorological Department (IMD), 2013 data frequency of cyclones in the coastal States accounting increased by 7%.
    • Factor’s responsible: Increasing sea surface temperatures in the northern Indian Ocean and the geo-climatic conditions in India are the factors responsible for the increase in frequency.

    Economic cost

    • Between 1999 and 2020, cyclones inflicted substantial damage to public and private properties, amounting to an increase in losses from $2,990 million to $14,920 million in the absence of long-term mitigation measures.
    • India lost around 2% of GDP and 15% of total revenue over 1999-2020.
    • Between 1999-2020, around 12,388 people were killed, and the damage was estimated at $32,615 million.
    • Cyclones are the second most expensive in terms of the costs incurred in damage, accounting for 29% of the total disaster-related damages after floods (62%).
    • In addition, they are the third most lethal disaster in India after earthquakes (42%) and floods (33%).

    Odisha model

    • In the aftermath of the 1999 super cyclone, the Government of Odisha took up various cyclone mitigation measures.
    • These included installing a disaster warning system in the coastal districts, and construction of evacuation shelters in cyclone-prone districts.
    • Other steps were the setting up of the Odisha State Disaster Management Authority (OSDMA), conducting regular cabinet meetings for disaster preparedness, and building the Odisha Disaster Rapid Action Force (ODRAF).

    Way forward

    • Still, Odisha’s disaster management model is inadequate to minimise the economic losses that result from cyclones.
    • Therefore, the Government of India should adopt a few measures to minimise disaster damage and fatalities.
    • Improve warning system: It is imperative to improve the cyclone warning system and revamp disaster preparedness measures.
    • Increase cover under shelterbelt plantation: The Government must widen the cover under shelterbelt plantations and help regenerate mangroves in coastal regions to lessen the impact of cyclones.
    • In addition, adopting cost-effective, long-term mitigation measures, including building cyclone-resilient infrastructure such as constructing storm surge-resilient embankments, canals and improving river connectivity to prevent waterlogging in low-lying areas are important.
    • Disaster resilient power infrastructure: installing disaster-resilient power infrastructure in the coastal districts, providing concrete houses to poor and vulnerable households, and creating massive community awareness campaigns are essential.
    • Coordination between Centre-State: Healthy coordination between the Centre and the States concerned is essential to collectively design disaster mitigation measures.
    • Collective mitigation effort by the Centre and States that can help reduce the fiscal burden of States and also be effective in minimising disaster deaths.

    Conclusion

    Long term mitigation measures are essential to minimise the impact of the disasters such as cyclones.

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  • Delhi’s new Smog Tower

    Ahead of its infamous smog season, Delhi has got a ‘smog tower’, a technological aid to help combat air pollution.

    What are Smog Towers?

    • Smog towers are structures designed to work as large-scale air purifiers. They are fitted with multiple layers of air filters and fans at the base to suck the air.
    • After the polluted air enters the smog tower, it is purified by the multiple layers before being re-circulated into the atmosphere.

    Structure of the Delhi smog tower

    • The structure is 24 m high, about as much as an 8-storey building — an 18-metre concrete tower, topped by a 6-metre-high canopy. At its base are 40 fans, 10 on each side.
    • Each fan can discharge 25 cubic metres per second of air, adding up to 1,000 cubic metres per second for the tower as a whole. Inside the tower in two layers are 5,000 filters.
    • The filters and fans have been imported from the United States.

    How does it work?

    • The tower uses a ‘downdraft air cleaning system’ developed by the University of Minnesota.
    • Polluted air is sucked in at a height of 24 m, and filtered air is released at the bottom of the tower, at a height of about 10 m from the ground.
    • When the fans at the bottom of the tower operate, the negative pressure created sucks in air from the top.
    • The ‘macro’ layer in the filter traps particles of 10 microns and larger, while the ‘micro’ layer filters smaller particles of around 0.3 microns.
    • The downdraft method is different from the system used in China, where a tower uses an ‘updraft’ system — air is sucked in from near the ground, and is propelled upwards by heating and convection.
    • Filtered air is released at the top of the tower.

    Likely impact

    • Computational fluid dynamics modelling suggests the tower could have an impact on the air quality up to 1 km from the tower.
    • The actual impact will also determine how the tower functions under different weather conditions, and how levels of PM2.5 vary with the flow of air.

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  • National Monetization Pipeline

    The Union Finance Minister has launched the National Monetization Pipeline for the brownfield infrastructure assets.

    What is Asset Monetization?

    • Asset Monetization involves the creation of new sources of revenue by unlocking of the value of hitherto unutilized or underutilized public assets.
    • Internationally, it is recognized that public assets are a significant resource for all economies.
    • Many public sector assets are sub-optimally utilized and could be appropriately monetized to create greater financial leverage and value for the companies and of the equity that the government has invested in them.
    • This helps in the accurate estimation of public assets which would help in the better financial management of government/public resources over time.

    National Monetization Pipeline (NMP)

    • The NMP comprises a four-year pipeline of the Central Government’s brownfield infrastructure assets.
    • It will serve as a medium-term roadmap for the Asset Monetization initiative of the government, apart from providing visibility for the investors.
    • Incidentally, the 2021-22 Union Budget, laid a lot of emphasis on Asset Monetization as a means to raise innovative and alternative financing for infrastructure.
    • It has to be noted that the government views asset monetization as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.

    What is the plan?

    • NMP is envisaged to serve as a medium-term roadmap for identifying potential monetization-ready projects, across various infrastructure sectors.
    • It estimates aggregate monetization potential of Rs 6.0 lakh crores through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.

    Objectives of the program

    • NMP aims for universal access to high-quality and affordable infrastructure to the common citizen of India.
    • Asset monetization, based on the philosophy of Creation through Monetization, is aimed at tapping private sector investment for new infrastructure creation.
    • This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.
    • The strategic objective of the programme is to unlock the value of investments in brownfield public sector assets by tapping institutional and long-term patient capital.

    Framework

    The framework for core asset monetization has three key imperatives:

    • The pipeline has been prepared based on inputs and consultations from respective line ministries and departments, along with the assessment of total asset base available therein.
    • Monetization through disinvestment and monetization of non-core assets have not been included in the NMP.
    • Further, currently, only assets of central government line ministries and CPSEs in infrastructure sectors have been included.
    • Process of coordination and collation of asset pipeline from states is currently ongoing and the same is envisaged to be included in due course.

    Estimated Potential

    • The aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6.0 lakh crore.
    • The estimated value corresponds to ~14% of the proposed outlay for Centre under NIP (Rs 43 lakh crore). This includes more than 12-line ministries and more than 20 asset classes.
    • The sectors included are roads, ports, airports, railways, warehousing, gas & product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.
    • The top 5 sectors (by estimated value) capture ~83% of the aggregate pipeline value. These top 5 sectors include: Roads (27%) followed by Railways (25%), Power (15%), oil & gas pipelines (8%) and Telecom (6%).

    Implementation & Monitoring Mechanism

    • As an overall strategy, significant share of the asset base will remain with the government.
    • The programme is envisaged to be supported through necessary policy and regulatory interventions by the Government in order to ensure an efficient and effective process of asset monetisation.
    • These will include streamlining operational modalities, encouraging investor participation and facilitating commercial efficiency, among others.
    • Real time monitoring will be undertaken through the a separate dashboard.

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  • Account aggregators

    Context

    Account Aggregators will enable the use and enrich the quality of information needed for lenders to extend loans without collateral back-up.

    Issue of preference for a collateralised loan in India

    • Demand for credit in India far outstrips institutional supply.
    • Financial Service Providers (FSPs) are well aware of this demand.
    • And they have been looking for ways to provide credit without collateral back-up.
    • Historically, financial service providers (FSPs) like banks and non-bank finance companies (NBFCs) have relied on collateral while making lending decisions.
    • In the absence of collateral pledges, the only way to assess a consumer’s willingness and ability to repay is by examining the prospective borrower’s cash flows.
    • Your bank account statement is a digital representation of your financial life.
    • However, this bank account statement-driven process is highly manual, time-consuming, expensive and fraught with potential for abuse.
    • These shortcomings have held back cash-flow based lending for too long in India.
    •  Borrowers in the country have been underserved because of the preference for collateralized loans.
    • Both FSPs and consumers are in dire need of a seamless digital way of sharing account information.

    Account Aggregator (AA) framework

    • The account aggregator framework announced by the Reserve Bank of India (RBI) promises to solve these problems.
    • It aims to make financial data sharing as easy as making a Unified Payments Interface (UPI) transfer.
    • This is the promise of account aggregation, as envisaged by RBI.
    • Account aggregators (AAs), with their user interface, will play a pivotal role in closing the trust deficit between FSPs and consumers.

    Fenefits of Account Aggregator would work

    • User control over data: They permit users to control who gets access to their data, track and log its movement and reduce the potential risk of leakage in transit.
    • A single-window format allows user-friendly data movement and reduces the need for physical transfers and post-facto attestations.
    • Industry-standard for consent: AAs create a default industry standard for consent that cuts through the dense fine print buried in most privacy policies.
    • Wider data points to rely on: With the security of this data as a given, AAs allow lenders (or other FSPs for that matter) to rely on a wider selection of data points to determine the trustworthiness of a borrower.
    • Through AAs, FSPs have a chance to provide cash-flow based credit, personalized financial management tools, robo-advisory services and many more innovative financial products and services to a wider cross-section of people.

    Conclusion

    By incorporating security, transparency and agility into data sharing, AAs could usher in the most significant transformation of India’s fintech landscape yet.

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  • AERA Bill, 2021

    In the recent monsoon session, Parliament passed the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021.

    Key features of the AERA Bill, 2021

    • It seeks to amend the Airports Economic Regulatory Authority of India Act, 2008.
    • The 2008 Act established the Airport Economic Regulatory Authority (AERA).
    • AERA regulates tariffs and other charges (such as airport development fees) for aeronautical services rendered at major airports in India.
    • The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh.
    • The central government may also designate any airport as a major airport by a notification.
    • The Bill adds that the central government may group airports and notify the group as a major airport.

    Why has the definition of a major airport been amended?

    • The Amendment has changed the definition of a major airport to include “a group of airports” after the words “any other airport”.
    • The government hopes the move will encourage the development of smaller airports and make bidding for airports with less passenger traffic attractive.
    • It plans to club profitable airports with non-profitable ones and offer them as a package for development in public-private partnership mode to expand connectivity.

    Was there a need to amend the AERA Act?

    • The Airports Authority of India (AAI) awarded six airports — Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram and Guwahati — for operations, management and development in public-private partnership mode in February 2019.
    • In 2020 too, the AAI has approved leasing of another six airports — Bhubaneswar, Varanasi, Amritsar, Raipur, Indore and Tiruchi.
    • The Ministry of Civil Aviation plans to club each of these airports with nearby smaller airports for joint development.
    • The move follows FM’s Budget Speech this year, in which she said the government planned to monetize airports in tier-2 and tier-3 cities.

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  • [pib] Simhadri PV Project: Largest floating Solar Project in the country

    The National Thermal Power Corporation (NTPC) has commissioned the largest floating solar PV project of 25MW on the reservoir of its Simhadri thermal station in Visakhapatnam, Andhra Pradesh.

    Simhadri PV Project

    • The 2000MW coal-based Simhadri Station is the first power project to implement an open sea intake from the Bay of Bengal which has been functional for more than 20 years.
    • This is the first solar project to be set up under the flexibilization scheme of coal-powered plant, notified in 2018.
    • The floating solar installation which has a unique anchoring design is spread over 75 acres in an RW reservoir.
    • This floating solar project has the potential to generate electricity from more than 1 lakh solar PV modules.
    • This would not only help to light around 7,000 households but also ensure at least 46,000 tons of CO2e are kept at arm’s length every year during the lifespan of this project.
    • The project is also expected to save 1,364 million litres of water per annum. This would be adequate to meet the yearly water requirements of 6,700 households.

    Other important facts you must know

    • As of May 2021, India has 95.7 GW of renewable energy capacity, and represents ~ 25% of the overall installed power capacity.
    • The government plans to establish renewable energy capacity of 523 GW (including 73 GW from Hydro) by 2030.
    • India was the world’s 3rd largest renewable energy producer with 38% (136 GW out of 373 GW) of total installed energy capacity in 2020 from renewable sources.
    • Tamil Nadu has the highest installed solar power capacity in India. Kamuthi Solar Power Project near Madurai is the world’s second-largest solar park.

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    Back2Basics: NTPC

    • NTPC is an Indian statutory corporation engaged in the generation of electricity and allied activities.
    • It is incorporated under the Companies Act 1956 and is under the jurisdiction of the Ministry of Power.
    • NTPC’s core function is the generation and distribution of electricity to State Electricity Boards in India.
    • It is the largest power company in India with an electric power generating capacity of 62,086 MW.
    • It has also ventured into oil and gas exploration and coal mining activities.
    • In May 2010, NTPC was conferred Maharatna status by GoI, one of the only four companies to be awarded this status.

  • [pib] Exercise Malabar

    Indian Naval Ships Shivalik and Kadmatt have arrived at Guam, an Island Territory of the USA to participate in the annual Exercise MALABAR-21.

    Also read:

    [Prelims Spotlight] Various Defence Exercises in News

    Ex Malabar

    • MALABAR series of maritime exercises commenced in 1992 as a bilateral IN-USN exercise and has grown in stature over the years to include four prominent navies in the Pacific and Indian Ocean Region.
    • It is carried out between navies of Australia, India, Japan, and the USA
    • The exercise provides an opportunity for common-minded navies to enhance inter-operability, gain from best practices and develop a common understanding of procedures for Maritime Security Operations.

    Significance

    • The exercise will see the participation of all four Quad countries.
    • Indian Navy also conducted a number of Passage Exercises (PASSEX) with navies from Japan, Australia and the US.

    Another Exercise in news: Ex Konkan 2021

    • Exercise Konkan 2021 was held between INS Tabar and HMS Westminster on 16 Aug 21 in the English Channel.

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    Back2Basics: Quad Security Dialogue

    • QSD is a strategic dialogue between the United States, Japan, Australia and India that is maintained by talks between member countries.
    • The dialogue is paralleled by joint military exercises of an unprecedented scale, titled Exercise Malabar.
    • Quad is widely viewed as a response to increased Chinese economic and military power.

  • [pib] HUID System in Jewellery Industry

    Hallmarking scheme is turning out to be a grand success with more than 1 crore pieces of Jewellery hallmarked in a quick time” with more than 90000 Jewelers registered in a same time period.

    What is Hallmark Gold?

    1. The process of certifying the purity and fineness of gold is called hallmarking.
    2. Bureau of Indian Standards, the National Standards Body of India, is responsible for hallmarking gold as well as silver jewellery under the BIS Act.
    3. If you see the BIS hallmark on the gold jewellery/gold coin, it means it conforms to a set of standards laid by the BIS. Hallmarking gives consumers assurance regarding the purity of the gold they bought.
    4. That is, if you are buying hallmarked 18K gold jewellery, it will actually mean that 18/24 parts are gold and the rest is alloy.
    5. At present, only 30% of Indian Gold Jewellery is hallmarked.

    Here are the four components one must look at the time of buying gold (they are mentioned in the laser engraving of a hallmark seal):

    1. BIS Hallmark: Indicates that its purity is verified in one of its licensed laboratories
    2. Purity in carat and fineness (corresponding to given caratage KT)
    • 22K916 (91.6% Purity)
    • 18K750 (75% Purity)
    • 14K585 (58.5% Purity)

    What is HUID?

    • HUID is a unique code that will be given to every piece of jewellery at the time of hallmarking.
    • It will be helpful in identifying the jeweller or the Assaying and Hallmarking Centres (AHCs) which had hallmarked the jewellery.
    • It will be a six-digit alphanumeric code, with which every piece of jewellery will be tagged.
    • At the hallmarking centre, the jewellery is stamped with the unique number manually.

    What are the new hallmarking rules?

    • The government has made it mandatory for jewellers to hallmark gold jewellery, but with some relaxation.
    • Jewellers with an annual turnover of up to Rs 40 lakh will be exempted from mandatory hallmarking.
    • Similarly, jewellery for international exhibitions and government-approved business-to-business domestic exhibitions will also be exempted.
    • It will also allow hallmarking of additional carats — 20, 23, and 24.

    Issues with HUID

    • Jewellers say the HUID process has increased the time required to get the hallmarking on jewels and this has created huge backlogs at AHCs.
    • Since the process is being done manually, there are also chances of a mismatch of the code, he adds.
    • The inventory pile-up at the centres is also raising concerns about the security of the jewellery.
    • Several industry stakeholders point out the limited number of AHCs, which will not be enough to hallmark the large number of pieces that are sold in India every year.

    Answer this PYQ from CSP 2017

    Q.Consider the following statements:

    1. The Standard Mark of the Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
    2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

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