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  • India ranks 87th in global energy transition index

    India has been ranked at the 87th position among 115 countries in the Energy Transition Index (ETI).

    • The latest report is based on a revised ETI methodology that takes into account recent changes in the global energy landscape and the increasing urgency of climate change action.
    • 92 out of 115 countries tracked on the ETI increased their aggregate score over the past 10 years, which affirms the positive direction and steady momentum of the global energy transition

    Highlights of the report:

    • The top 10 countries in the index are Western and Northern European countries.
    • Sweden is in the first position followed by Norway (2nd) and Denmark (3rd).
    • Other countries in the top 10 are Switzerland (4), Austria (5), Finland (6), the United Kingdom (7), New Zealand (8), France (9) and Iceland (10).
    • China (68) and India (87), which collectively account for a third of global energy demand, have both made strong improvements over the past decade, despite coal continuing to play a significant role in their energy mix.
      • “China”s improvements primarily result from reducing the energy intensity of the economy, gains in decarbonising the energy mixthrough the expansion of renewables and strengthening the enabling environment through investments and infrastructure.
    • Zimbabwe is the last ranked country.

    India specific highlights:

    • India has been ranked at the 87th position among 115 countries.
    • India has targeted improvements through subsidy reforms and rapidly scaling energy access, with a strong political commitment and regulatory environment for the energy transition.

    About the Energy Transition Index (ETI):

    • ETI is a report from World Economic Forum (WEF).
    • It is an annual ranking.
    • The index tracks nations on the current performance of their energy systems across various aspects.
    • The index benchmarks 115 countries on the current performance of their energy systems across three dimensions :
      1. Economic development and growth
      2. Environmental sustainability
      3. Energy security and access indicators — and their readiness to transition to secure, sustainable, affordable, and inclusive energy systems.

  • A fresh push for green hydrogen

    Green hydrogen could help significantly in India’s transition to low carbon future. However, there are several challenges in ramping up its manufacturing. The article suggests measures to deal with these challenges.

    Increasing the production of green hydrogen

    • India will soon join 15 other countries in the hydrogen club as it prepares to launch the National Hydrogen Energy Mission (NHEM). 
    • India will soon join 15 other countries in the hydrogen club as it prepares to launch the National Hydrogen Energy Mission (NHEM). 
    • In 2030, according to an analysis by the Council on Energy, Environment and Water (CEEW), green hydrogen demand could be up to 1 million tonnes in India across application in sectors such as ammonia, steel, methanol, transport and energy storage. 

    Dealing with challenges

    Several challenges in scaling up to commercial-scale operations persist. Following are five recommendations.

    1) Decentralise green hydrogen production

    • Decentralised hydrogen production must be promoted through open access of renewable power to an electrolyser (which splits water to form H2 and O2 using electricity).
    • Currently, most renewable energy resources that can produce low-cost electricity are situated far from potential demand centres.
    • Producing oxygen at such locations and then shipped, it would significantly erode the economics of it.
    • A more viable option would be wheeling electricity directly from the solar plant.
    • However, the electricity tariffs could double when supplying open-access power across State boundaries.
    • Therefore, operationalising open access in letter and spirit, as envisioned in the Electricity Act, 2003, must be an early focus.

    2)  Ensure access to round-the-clock renewable power

    • To minimise intermittency associated with renewable energy, for a given level of hydrogen production capacity, a green hydrogen facility will store hydrogen to ensure continuous hydrogen supply.
    • Therefore, as we scale up to the target of having 450 GW of renewable energy by 2030, aligning hydrogen production needs with broader electricity demand in the economy would be critical.

    3) Blending green hydrogen in industrial sector

    • We must take steps to blend green hydrogen in existing processes, especially the industrial sector.
    • Improving the reliability of hydrogen supply by augmenting green hydrogen with conventionally produced hydrogen will significantly improve the economics of the fuel.
    • This will also help build a technical understanding of the processes involved in handling hydrogen on a large scale.

    4) Facilitate investment

    • Policymakers must facilitate investments in early-stage piloting and the research and development needed to advance the technology for use in India.
    • The growing interest in hydrogen is triggered by the anticipated steep decline in electrolyser costs.
    • Public funding will have to lead the way, but the private sector, too, has significant gains to be made by securing its energy future.

    5) Focus on domestic manufacturing

    •  India must learn from the experience of the National Solar Mission and focus on domestic manufacturing.
    • Establishing an end-to-end electrolyser manufacturing facility would require measures extending beyond the existing performance-linked incentive programme.
    • India needs to secure supplies of raw materials that are needed for this technology.
    • Further, major institutions like the DRDO, BARC and CSIR laboratories have been developing electrolyser and fuel-cell technologies.

    Consider the question “Even before it has reached any scale, green hydrogen has been anointed the flag-bearer of India’s low-carbon transition. In lights of this, examine the challenges India faces in scaling up its green hydrogen production and suggest the ways to deal with these challenges.”

    Conclusion

    Hydrogen may be lighter than air, but it will take some heavy lifting to get the ecosystem in place.

  • Plasmid

    • Scientists have developed a Covid-19 vaccine that could offer protection against not only existing and future strains of the SARS-CoV-2 coronavirus.
    • The vaccine costs $1 a dose. It uses the plasmid of E-coli bacteria to produce the vaccine.
    • A plasmid is a small, extrachromosomal DNA molecule within a cell that is physically separated from chromosomal DNA and can replicate independently.

    • They are most commonly found as small circular, double-stranded DNA molecules in bacteria; however, plasmids are sometimes present in archaea and eukaryotic organisms.
  • Exit window likely for crypto holders in proposed legislation on cryptocurrencies

    Law to ban private cryptocurrencies

    • The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 aims to prohibit all private cryptocurrencies.
    • It lays the regulatory framework for the launch of an “official digital currency” was set to be introduced in Parliament during the Budget session, but was not taken up.
    • A high-powered inter-ministerial committee has also previously recommended the banning of all private cryptocurrencies.
    • In April 2018, the RBI banned banks and other regulated entities from supporting crypto transactions after digital currencies were used for frauds.
    • In March 2020, the Supreme Court struck down the RBI’s ban on crypto, terming its circular unconstitutional.
    • One of the SC’s reasons for overturning the ban is that cryptocurrencies are unregulated but not illegal in India.

    Central bank-issued digital currency

    • The RBI had said central banks are not only exploring DLT (Distributed Ledger Technology) for its application in improving financial market infrastructure but also considering it as a potential technological solution in implementing central bank digital currency (CBDC).
    • DLT and blockchain have been explored extensively by the People’s Bank of China as a possible technology for launching CBDC.
    • Apart from CBDC, PBoC is supporting research on using blockchain for trade finance, especially after the support from the President of China for the blockchain technology, as an important breakthrough for innovations.
  • Towards digital Atmanirbharta

    We need a comprehensive FDI policy on trade to take care of the needs of all the stakeholders. The article highlights the issues faced by the e-commerce sector in relation to the FDI policy.

    E-commerce as an enabler

    • With their efficient, quick and reliable logistics network, e-commerce platforms have nudged consumer behaviour patterns from an offline to an online shopping mode.
    • During the pandemic, e-commerce emerged as an enabler in ensuring the availability of essentials to the masses.
    • E-commerce is going to be increasingly important in the future of retail shopping in India and the world over.
    • It is estimated to become a $100 billion industry by 2024, which was at $38.5 billion until 2017.
    •  The trend will continue to grow with the government’s impetus on digital literacy, also supported by the increasing penetration of internet and smartphone users.
    • However, what the sector lacks is the bandwidth of operation.

    Issues with FDI policy for e-commerce

    • In addition to the FDI Policy/FEMA, other laws such as IT Act, Consumer Protection Act, and those pertaining to IP and copyright, regulate the e-commerce sector in India.
    • Of these, the FDI policy plays an important role as massive investments are needed to build and strengthen the entire ecosystem of the e-commerce sector in the country.
    • FDI policies on trade have evolved over time as policy-making was done from time to time mostly responding to the needs of the market coupled with political feasibility.
    • Thus, FDI policy in cash and carry or wholesale B2B operations is different (100 per cent FDI allowed under automatic route) compared to highly restrictive FDI policy on retail B2C trade.
    • Similarly, an artificial distinction was created between single-brand retail and multi-brand retail as opposition to multi-brand retail was strong: 100 per cent FDI is allowed under automatic route in single-brand retail whereas FDI regime in multi-brand retail is quite restricted.
    • E-commerce is not allowed under FDI policy in multi-brand retail.
    • The FDI policy on e-commerce is quite different as e-commerce platforms are allowed to work only as a marketplace with permission to provide certain specified services to sellers and buyers.
    • However, FDI is allowed in the inventory model when these platforms sell fresh farm produce made in India.
    • There is no specific policy on FDI in e-commerce for exports.

    Need for comprehensive FDI policy for trade

    • The rapid expansion of the retail, organised retail as well e-commerce sector in India in the coming years will create huge opportunities for all.
    • The policies that have evolved over time need a relook to balance the interests of all in a win-win policy.
    • Today, our small businesses employing an exceptionally large number of workers need to use e-commerce more and more to augment their sales.
    • E-commerce provides them with the means to access a much bigger market without having to overly invest in marketing. This should include more and more foreign markets.
    • Consumers have benefited enormously from e-commerce.
    • Also, the harmonious working of online and offline retailers is essential.
    • With GST and the drive towards digitisation, more small traders need to be enabled to make the transition and take advantage of the expanding opportunities.

    Consider the question “Why e-commerce sector is important for the economy of a country? What are the issues the sector faces in India?” 

    Conclusion

    Public policy on e-commerce needs to place an equal premium on the views and interests of all the stakeholders in the ecosystem to strengthen our domestic businesses and create many more jobs and livelihood opportunities in the country to fulfil the dreams of Atmanirbhar Bharat.

  • Politics, geography and demography shape Naxal movement

    The article explains the issues with the two common themes adopted for explaining the Naxal movement in India.

    Two approaches to explain Naxal movement

    1) Root cause and alienation approach

    • The recent attack in and around Tekulagudem village in Sukma district demonstrates the threat posed by Maoists.
    • The post-incident analysis of such setbacks comes in two flavours.
    • The most popular theory amongst our intelligentsia and media is the root cause and alienation approach. 
    • This approach states that it is the failure of the Indian state to provide economic development and social justice to the tribals living in these areas that has fuelled the Naxal movement and sustained it for five decades.
    • As a prescription, a development-centric approach and negotiations are suggested as the way forward.

    Issues with root cause and alienation approach

    • There are several problems with this approach.
    • First, it ignores the ideological foundations of the movement, specifically its rejection of India’s Constitution and democracy.
    • Second, it fails to see that social and economic deprivation is not unique to the jungles of Chhattisgarh.
    • Third, it doesn’t account for the possibility that while alienation and deprivation may help in igniting the spark of revolution, once lit the flames draw oxygen from many sources.
    • Fourth, the role of external forces in fomenting and sustaining this movement is deliberately underplayed.
    • Fifth, the grubby ground reality of the praxis of revolution is conveniently swept under the carpet.
    • The organised extortion racket from all economic stakeholders in the Naxal-affected areas by our alienated revolutionaries seldom gets talked about.
    • Sixth, the extensive ideological, financial and logistical ecosystem that provides sustenance to these revolutionaries in the jungle is seldom acknowledged.

    2) Leadership issue

    • According to this view, our tactical failures against the Maoists are entirely due to the poor quality of leadership provided by the Indian Police Service.
    • The when, where, how of a setback simply don’t matter.
    • When in doubt, identify the first IPS officer in the chain of command and hoist him on the petard of tactical incompetence.
    • This view completely ignores the many successes of IPS leadership in counterinsurgency operations in Punjab, Andhra Pradesh, Uttar Pradesh and most recently in Odisha.
    • Even in the Northeast and Jammu and Kashmir, where the Indian Army provides the backbone of the counterinsurgency grid, the police forces of the respective states and their IPS leadership play a crucial role in gathering intelligence and in executing operations.
    • So, the failures and setbacks in the Naxal areas of Chhattisgarh need to be placed in perspective.

    Way forward

    • The fact that the Indian state has adopted a broad policy of economic development, military restraint and gradual attrition and rejected indiscriminate violence in the Naxal theatre is the democratically prudent and morally just course of action.
    • This hasn’t dissuaded Maoist sympathisers from gaining international attention through relentless propaganda against our security forces.
    • However, such attacks also help in exposing their true nature and hardening public resolve against them.
    •  \We have enough examples of successful, police led CI Ops in our country.
    • Why we are not able to replicate these successes in Chhattisgarh is a matter of larger political issues, well beyond the narrow scope of operational tactics and individual lapses of police leadership.
    • Not just the politics, the geography and demography of the Naxal-affected areas, make it an even more complex challenge of internal security.

    Consider the question “What are the factors that make Naxal movement a persistent threat to India’s internal security? ” 

    Conclusion

    Not just the politics, the geography and demography of the Naxal-affected areas, make it an even more complex challenge of internal security.

  • [pib] India’s Agriculture trade grows during 2020-21

    Consistent trade surplus in agricultural products

    • India has consistently maintained trade surplus in the agricultural products over the years.
    • The export of Agri and allied commodities during Apr, 2020 – Feb,2021 were Rs. 2.74 lakh Crore as compared to Rs. 2.31 Crore in the same period last year indicating an increase of 18.49%.
    • The imports of Agri and allied commodities during April, 2020 – Feb, 2021 were Rs. 1.41lakh Crore as compared to Rs. 1.37 lakh Crore in the same period last year witnessing a slight increase of 2.93%.

    Commodities that posted positive growth

    • India has witnessed tremendous growth of 727 % for Wheat export.
    • On specific demand from countries, NAFED has exported 50,000 MT wheat to Afghanistan and 40,000 MT wheat to Lebanon under G2G arrangement.
    • Country has witnessed significant growth of 132% in export of (Non-Basmati) Rice.
    • Export of Non-Basmati Rice has gone up from Rs 13,030 crores in 2019-20 to Rs 30,277 crores in 2020-21.
    • This increase in exports is on account of multiple factors, mainly being India capturing new markets namely, Timor-Leste, Papua New Guinea, Brazil, Chile, and Puerto Rico.
    • Exports were also made to Togo, Senegal, Malaysia, Madagascar, Iraq, Bangladesh, Mozambique, Vietnam, Tanzania Rep and Madagascar.
    • India also enhanced export of Soya meals by 132%. Soya meal has gone up from Rs 3087 crores in 2019-20 to Rs 7224 crores in 2020-21.
  • How & why of oxygen therapy

    How Covid-19 leads to shortness of breath?

    • Shortness of breath occurs because of the way Covid-19 affects the patient’s respiratory system.
    • When a person inhales, the tiny air sacs in the lungs — alveoli — expand to capture this oxygen, which is then transferred to blood vessels and transported through the rest of the body.
    • Respiratory epithelial cells line the respiratory tract.
    • Their primary function is to protect the airway tract from pathogens and infections, and also facilitate gas exchange.
    • And the SARS-CoV-2 coronavirus can infect these epithelial cells.
    • To fight such infection, the body’s immune system releases cells that trigger inflammation.
    • When this inflammatory immune response continues, it impedes the regular transfer of oxygen in the lungs.
    • Simultaneously, fluids too build up.
    • Both these factors combined make it difficult to breathe.
    •  Low levels of oxygen triggered by Covid-19 are inflammatory markers, which include elevated white blood cell counts and neutrophil counts.

    Does a patient always show Covid symptoms when their oxygen levels drop?

    • No.
    • According to the FAQs on Covid-19 from AIIMS e-ICUS, sudden deaths have been reported at presentation to the emergency department, as well as in hospital.
    • AIIMS has said that the reasons that have been proposed include a sudden cardiac event, preceding “silent hypoxia” that went unnoticed, or due to a thrombotic complication such as pulmonary thromboembolism.
    • In silent hypoxia, patients have extremely low blood oxygen levels, yet do not show signs of breathlessness.
  • U.S. currency watchlist an intrusion into RBI’s policy space

    Why was India put on the currency watchlist by the US

    • The U.S. Treasury Department had recently retained India in a watchlist for currency manipulators submitted to the U.S. Congress.
    • It cited higher dollar purchases (close to 5% of the gross domestic product) by the Reserve Bank of India (RBI).
    • Another trigger for the inclusion in the currency watchlist is a trade surplus of $20 billion or more.

    What is India’s position

    • India had a steady holding pattern of forex reserves ‘with ups and downs’ based on market-based transactions that central banks may undertake.
    • The central bank’s activity in the foreign exchange market has been perfectly balanced and completely legitimate within the accepted monetary policy mandate of central banks across the world.
    • It is a mandate of the central bank to provide stability in the currency as a result of which central banks buy and sell foreign currency.
    • Our overall reserves have been fairly steady at $500 bn to $600 bn.
    • We are not accumulating reserves like China.
  • Sudarshan Sen Committee

    The Reserve Bank of India (RBI) constituted a committee to evaluate the role of asset reconstruction companies (ARCs) in stressed debt resolution and review their business model.

    About the committee:

    • It is a six-member committee that will be headed by Sudarshan Sen, former executive director, Reserve Bank of India (RBI).

    Mandate:

    • To review the existing legal and regulatory framework and recommend measures to improve the efficacy of ARCs.
    • It will also review their role in stressed asset resolution under the Insolvency and Bankruptcy Code (IBC), and suggest means to improve liquidity and trading of security receipts.
    • It has also been asked to review the business models of ARCs.
    • The committee will submit its report within three months from the date of its first meeting.