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GS Paper: GS3

  • Spectrum auction

    The article analyses the factors influencing the outcome of the spectrum auction and suggests the measures to ensure the success and avoid the repeat of 2016 auction.

    Details of the auction

    • Based on the recommendation of the Telecom Regulatory Authority of India (TRAI), the government is planning to auction spectrum in the sub GHz bands of 700, 800, and 900 MHz along with mid-band frequencies in bands of 1800, 2100, 2300, and 2500 MHz across the 22 Licensed Service Areas (LSAs) of the country.
    • The cumulative reserve price — and hence the potential revenue accrual to the government at reserve prices — is about $50 billion.
    • The total reserve price of spectrum put on auction in 2016 was about $90 billion while the realized value was just about one-tenth of that.
    • Hence, while the 2016 auction could be considered as a failure from the auctioneer’s point of view.

    Factors determining the success of  the spectrum auction

    1) Right reserve price

    • Research on a cross-country spectrum database shows that the reserve price significantly and positively correlated to the winning bid price.
    • However, a higher reserve price also inhibits bidders from bidding for more spectrum blocks.
    • If the quantity effect is more than the price effect, then it results in reduced revenues for the government exchequer, as happened in 2016.

    2) Role of Over The Top (OTT) provider

    • Over The Top (OTT) providers who are providing substitute goods such as Voice Over Internet Protocol (VoIP); and capturing a greater mind share of customers while remaining relatively invisible to government regulators.
    • The rise of VoIP subscribers could have a positive effect on winning bid prices.
    • However, the erosion of the position of telcos in the overall digital value network of devices, connectivity, and apps, could result in a lower willingness to pay.

    3) Allocation of unlicensed spectrum for WiFi

    • By off-loading mobile data, Wi-Fi supplements the carrier network and reduces the demand for mobile network capacity.
    • A number of countries including the United States have unlicensed the V-band spectrum in 60 GHz — pencil beam band.
    • Referred to as “wireless fiber”, the 60 GHz spectrum provides huge capacities in a limited area.
    • Wi-Fi 6 (a.k.a. IEEE 802.11 ax) that operates in the 2.4/5 GHz unlicensed band requires additional unlicensed spectrum allocation to provide Gigabit speeds.
    • The more the unlicensed spectrum allocation, the lower will be the demand for licensed spectrum.

    4) Clarity on the availability of spectrum for auction

    • While there is an indication by the government that the spectrum for the 5G auction, namely 3.4-3.6 GHz, will be held in late 2021, the amount of spectrum that will be made available is not clear.
    • There is still uncertainty about the release of 26 GHz by the Department of Space for mobile services.
    • With this limited visibility, the bidders will be in a quandary whether to acquire the spectrum now or wait for subsequent auctions.
    • Further, some part of the current spectrum holding of all the operators is coming up for renewal in mid-2021, and hence there is additional pressure on them to retain them in the forthcoming auction.

    Steps need to be taken

    • A re-visit of reserve prices and lower it further, especially that of 700 MHz which is the “golden band” for covering the hinterlands of the country.
    • Releasing more unlicensed spectrum in 2.4/5/60 GHz for proliferating Wi-Fi as a suitable complement to [the] carrier network.
    • This will also augment the deployments of the Public Wi-Fi project which the cabinet approved recently.
    • Provide visibility of future auctions, especially the quantum of the spectrum that can be put on the block in 3.3/3.6/26/28 GHz.
    • The government should release guidelines on how OTT platforms will be regulated and what will be regulated so that the telcos and OTTs can join hands to provide superior services for the benefit of the consumers.

    Conclusion

    The government should follow the steps mentioned here to make the auction of the spectrum a success.

  • Bihar to change Kosi’s course to save the ancient site

    The Bihar government will try to divert the course of the mighty Kosi River in Bhagalpur district to save an archaeological site discovered recently.

    Tap to read more about the Himalayan Drainage System:

    Drainage System | Part 3

    Kosi River: The Sorrow of Bihar

    • The Kosi is a trans-boundary river which flows through Tibet, Nepal and India.
    • The river crosses into northern Bihar, India where it branches into distributaries before joining the Ganges near Kursela in Katihar district.
    • Its unstable nature has been attributed course changes and the heavy silt it carries during the monsoon season, and flooding in India has extreme effects.
    • It is also known as the “Sorrow of Bihar” as the annual floods affect about 21,000 km2 of fertile agricultural lands thereby disturbing the rural economy.

    Why change its course?

    • Several priceless artefacts have been found at the Guwaradih village in Naugachhia sub-division of Bhagalpur district during the excavation of a mound.
    • These items could be 2,500-years-old and could be of interest for historians if conserved.
    • The historical sites are facing threats from the Kosi floods.
    • The Kosi currently flows around 300-400 metres from the site, while its old course is about two kilometres from the village.

    Threats posed by the move

    • Environmentalists have warned that changing the Kosi’s course could be disastrous for Bihar as seen in 2008.
    • At that time, the river had breached its mud embankments at Kushaha in Nepal.
    • The Kosi frequently changes its course naturally. If its course is artificially changed, it will cause floods and erosion in new areas, leading to massive displacement of people.
    • It then caused extensive damage to life and property downstream in five densely populated districts of northeast Bihar.
    • Some 500 people were killed and four million rendered homeless.

  • [pib] Rights to the Electricity Consumers

    The Ministry of Power has for the first time laid down Rights to the Electricity Consumers through “Electricity (Rights of Consumers) Rules, 2020”.

    Q.What are the new Rights to the Electricity Consumers as envisaged under Electricity (Rights of Consumers) Rules, 2020?

    Rights to the Electricity Consumers: A highlight

    Following key areas are covered in the Electricity (Rights of consumers) Rules:

    • Rights of consumers and Obligations of Distribution licensees
    • Release of new connection and modification in an existing connection
    • Metering arrangement
    • Billing and Payment
    • Disconnection and Reconnection
    • Reliability of supply
    • Consumer as Prosumer
    • Standards of Performance of licensee
    • Compensation Mechanism
    • Call Centre for Consumer Services
    • Grievance redressal mechanism

    (1) Rights and Obligations

    • It is the duty of every distribution licensee to supply electricity on request made by an owner or occupier of any premises in line with the provisions of the Act.
    • It is the right of the consumer to have minimum standards of service for the supply of electricity from the distribution licensee.

    (2) Release of new connection and modification in an existing connection

    • Transparent, simple, and time-bound processes,
    • The applicant has an option for online application,
    • The maximum time period of 7 days in metro cities and 15 days in other municipal areas and 30 days in rural areas identified to provide new connections and modify existing connections.

    (3) Metering

    • No connection shall be given without a meter;
    • Meter shall be the smart pre-payment meter or pre-payment meter;
    • Provision of Testing of meters;
    • Provisions for replacement of defective or burnt or stolen meters specified.

    (4) Billing and payment

    • Transparency in applicable consumer tariff and bills;
    • A consumer shall have the option to pay bills online or offline;
    • Provision for advance payment of bills.

    (5) Reliability of supply

    • The distribution licensee shall supply 24×7 powers to all consumers. However, the Commission may specify lower hours of supply for some categories of consumers like agriculture;
    • The distribution licensee shall put in place a mechanism, preferably with automated tools to the extent possible, for monitoring and restoring outages.

    (6) Consumer as prosumer

    • The prosumers will maintain consumer status and have the same rights as the general consumer.
    • They will also have the right to set up RE generation units including rooftop solar photovoltaic (PV) systems – either by themselves or through a service provider.
    • Net metering for loads up to ten kW and for gross metering for loads above ten kW.

    (7) Standards of Performance

    • The Commission shall notify the standards of performance for the distribution licensees;
    • Compensation amount to be paid to the consumers by the distribution licensees for violation of standards of performance.

    (8) Compensation mechanism

    • Automatic compensation shall be paid to consumers for which parameters on standards of performance can be monitored remotely;
    • The standards of performance for which the compensation is required to be paid by the distribution licensee.

    (9) Call Centre for Consumer Services

    • Distribution licensee shall establish a centralized 24×7 toll-free call center;
    • Licensees shall endeavor to provide all services through a common Customer Relation Manager (CRM) System to get a unified view.

    (10) Grievance redressal mechanism

    • Consumer Grievance Redressal Forum (CGRF) to include consumer and prosumer representatives;
    • The consumer grievance redressal has been made easy by making it multi-layered and the number of consumer’s representatives has been increased from one to four.
    • The licensee shall specify the time within which various types of grievances by the different levels of the forums are to be resolved. Maximum timeline of 45 days specified for grievance redressal.

  • [pib] Leopard Population in India

    The Ministry of Environment, Forest and Climate Change has released the Status of Leopards Report.

    Confused over Leopard and Cheetah?

    The most common difference between these two animals is the patterns on their coat. At first glance, it may look like they both have spots, but in actual fact, a leopard has rosettes which are rose-like markings, and cheetahs have a solid round or oval spot shape.

    Indian Leopards

    • The Indian leopard (Panthera pardus fusca) is a leopard subspecies widely distributed on the Indian subcontinent.
    • It is one of the big cats occurring on the Indian subcontinent, apart from the Asiatic lion, Bengal tiger, snow leopard and clouded leopard.
    • It is listed as Vulnerable on the IUCN Red List because populations have declined following habitat loss and fragmentation, poaching for the illegal trade of skins and body parts.

    Leopards in India

    • India now has 12,852 leopards as compared to the previous estimate of 7910 conducted 2014.
    • More than 60% increase in population has been recorded.
    • The States of Madhya Pradesh, Karnataka and Maharashtra recorded the highest leopard estimates at 3,421, 1,783 and 1,690 respectively.
    • India’s world record tiger survey also estimated the population of leopards and the tiger range was found a home to 12,852 (12,172-13,535) leopards.

    Significance

    • The increase in Tiger, Lion & Leopards numbers over the last few years is a testimony to the conservation efforts and of the fledgeling wildlife & biodiversity of the country.

  • E20 Fuel to Cut Vehicular Emissions

    The government has proposed the adoption of E20 fuel — a blend of 20% of ethanol and gasoline — as an automobile fuel in order to reduce vehicular emissions as well as the country’s oil import bill.

    E20 Fuel

    • E20 is a blend of 20% ethanol with gasoline (petrol) and can be used as an alternative to the fuels currently available.
    • The government is looking at the adoption of mass emission standards for this fuel for transport application.
    • Additionally, it also wishes to facilitate the development of E20 compliant vehicles.
    • The government believes that the E20 blend will not only curb vehicle emissions but help reduce the country’s oil import bill.

    Ethanol – Pros and Cons

    • Ethanol is a common by-product that comes from agricultural feedstock like corn, hemp, potato, etc. It can be used as a bio-fuel in Flexi-fuel vehicles.
    • It is greener than gasoline because the corn and crop plantations absorb carbon dioxide from the atmosphere as they grow.
    • While the fuel still releases CO2 when you burn it, the net increase is comparatively lower.
    • However, ethanol is less efficient as a fuel. It has lower energy content than energy-rich gasoline and diesel.
    • The rule delivers less power when burned, which in return results in more fuel consumption and lower mileage.
    • Additionally, blends over E20 (20% ethanol) is highly corrosive for older vehicles as the alcohol can break down old rubber seals and can damage engines.

    Vehicle compatibility

    • It added the compatibility of vehicles with the percentage of ethanol in the blend would be defined by the vehicle manufacturer, which would have to be displayed on the vehicle with a sticker.
    • Ethanol is a biofuel and a common by-product of biomass left by agricultural feedstock such as corn, sugarcane, hemp, potato, etc.

  • What is Intentional Genomic Alteration?

    The US Food and Drug Administration (FDA) approved a first-of-its-kind intentional genomic alteration (IGA) in a line of domestic pigs referred to as GalSafe pigs.

    Try this PYQ:

    Q.What is Cas9 protein that is often mentioned in news?

    (a) A molecular scissors used in targeted gene editing

    (b) A biosensor used in the accurate detection of pathogens in patients

    (c) A gene that makes plants pest-resistant

    (d) A herbicidal sub

    What is Intentional Genomic Alteration?

    • Intentional genomic alteration in animals’ means making specific changes to the genome of the organism using modern molecular technologies.
    • These are popularly referred to as “genome editing” or “genetic engineering”. However, there are other technologies that can be used to make IGAs in animals.
    • Such changes in the DNA sequence of an animal may be carried out for research purposes, to produce healthier meat for human consumption and to study disease resistance in animals among other reasons.
    • One example is of using IGAs to make an animal more susceptible to certain diseases such as cancer, which helps researchers get a better understanding of the disease and develop new therapies to treat it.

    What does FDA’s recent approval mean?

    • The FDA made the announcement this week and allowed IGA in GalSafe pigs to eliminate a type of sugar found in mammals called alpha-gal.
    • This sugar is present on the surface of these pigs’ cells and when they are used for products such as medicines or food.
    • The sugar is found in red meats such as beef, pork and lamb, the sugar makes some people with Alpha-gal Syndrome (AGS) more susceptible to developing mild to severe allergic reactions.
    • IGA will help eventually free these products from detectable alpha-gal sugar, thereby protecting their human consumers from potential allergies.

  • Information Management and Analysis Centre (IMAC)

    India is looking at integrating more countries into coastal radar network IMAC.

    What is IMAC?

    • The Indian Navy’s IMAC located in Gurugram which was set up after the 26/11 Mumbai terror attacks is the nodal agency for maritime data fusion.
    • It functions under the National Maritime Domain Awareness (NMDA) Project.
    • The NMDA project was launched in accordance with the vision of PM on SAGAR (Security and Growth for All in the Region).
    • The IMAC monitors movement of more than 120,000 ships a year passing through the Indian Ocean.
    • The cargo carried by these ships accounts for 66 per cent of world crude oil, 50 per cent of container traffic and 33 per cent of bulk cargo.
    • Thus, IMAC performs a very crucial role in collecting shipping information, analysing traffic patterns and sharing the inputs with the user agencies.

    Mission SAGAR, unlike other missions, can create confusion with the name and its purpose. Make note of such special cases. UPSC can ask such questions as one liner MCQs.

    Expanding IMAC

    • It is meant to enable real-time monitoring of the high seas for threats as also expand India’s assistance for capacity building to Indian Ocean littoral states.
    • Efforts are in advanced stages to set up coastal radar stations in Maldives, Myanmar and Bangladesh.
    • Mauritius, Seychelles and Sri Lanka have already been integrated into the country’s coastal radar chain network.
    • Similar plans are in the pipeline with Maldives and Myanmar and discussions are ongoing with Bangladesh and Thailand.

  • Species in news: Himalayan trillium

    The Himalayan trillium (Trillium govanianum), a common herb of the Himalayas was declared ‘endangered’ by the International Union for Conservation of Nature (IUCN) last week.

    Try this MCQ:

    Q.Recently, there was a growing awareness in our country about the importance of Himalayan nettle (Girardinia diversifolia) because it is found to be a sustainable source of-

    (a) Anti-malarial drug

    (b) Bio-diesel

    (c) Pulp for paper industry

    (d) Textile fibre

    Himalayan trillium

    • In recent years, the plant has become one of the most traded commercial plants of the Himalayan region, due to its high medicinal quality.
    • It is found in temperate and sub-alpine zones of the Himalayas, at an altitude from 2,400-4,000 metres above sea level.
    • Their existence has also been traced across India, Bhutan, Nepal, China, Afghanistan and Pakistan.
    • In India, it is found in four states only- Himachal Pradesh, Jammu and Kashmir, Sikkim, and Uttarakhand.
    • Often called Nagchatri, in local areas this herb grows to a height of 15-20 cm.

    Various applications

    • It has been used in traditional medicine to cure diseases like dysentery, wounds, skin boils, inflammation, sepsis, as well as menstrual and sexual disorders.
    • Recent experiments have shown that the rhizome of the herb is a source of steroidal saponins and can be used as an anti-cancer and anti-ageing agent.
    • This increased its market value and has now become an easy target for poachers.

  • Laying the foundation for faster growth

    To ease the damage inflicted by the pandemic on the economy, India needs to act on multiple fronts. The article suggests the trajectory India should follow to compensate for the economic loss due to pandemic.

    Economy picking up

    • As the restrictions were slowly withdrawn, the economy has also started picking up.
    • There are many indicators such as collection of Goods and Services Tax (GST), the improved output of coal, steel, and cement, and positive growth in manufacturing in October 2020 which point to better performance of the private sector.
    • In Q1, the economy declined by 23.9%; it declined by 7.5% in Q2, when the relaxations were eased.
    • Reductions in the first half of GDP in 2020-21 as compared to the first half of 2019-20 is 7.66% of the 2019-20 GDP.
    • If the Indian economy at least maintains the second half GDP in 2020-21 at the level of the previous year, the full-year contraction can be limited to about 7.7%.

    Steps need to be taken

    • If the Indian economy grows at 8% in 2021-22 will we be compensating for the decline in 2020-21.
    • Thus, it is imperative that the Indian economy grows at a minimum of 8% in 2021-22.
    • This should be possible if by that time restrictions imposed because of COVID-19 are withdrawn and the nation goes back to a normal state.
    • Some sectors can act as lead sectors or engines of growth with increased government capital expenditures in them.
    • The private sector seems to be revising its future prospects.
    • Many new issues in the capital market have met with good response.
    • The attitude to trade must also change.
    • Closing borders may appear to be a good short-term policy to promote growth.
    • A strong surge in our exports will greatly facilitate growth, i.e. 2021-22.
    • However, much of Indian’s growth must rest on domestic factors.
    • Growth must not only be consumption-driven but also investment-driven.
    • It is the investment-driven growth in a developing economy that can sustain growth over a long period.

    The important role of monetary policy

    • The stance of monetary policy in 2020-21 has been extremely accommodating.
    • Three major elements in the policy are:
    • 1) A reduction in interest rate.
    • 2) Providing liquidity through various measures.
    • 3) Regulatory changes such as moratorium.
    • There has been a substantial injection of liquidity into the system.
    • With a large injection of liquidity, one should expect inflation to remain high.
    • In the final analysis, inflation is determined by the overall liquidity or money supply in the system in conjunction with the availability of goods and services.
    • While there may be sufficient justification for an accommodative monetary policy in a difficult year such as 2020, there will be a need to exercise more caution as we move into the next year.

    Role of government expenditure

    • Government expenditures play a key role in a situation such as the one we are facing.
    • The stimulus policies involving higher government expenditures were expected to arrest the contractionary momentum.
    • The government expenditures should be speeded up from now on so that the contraction in the current fiscal year as a whole can be reduced.
    • In 2021-22, government revenues should pick up with the rise in GDP.
    • The process of bringing down the fiscal deficit must also start.
    • What is required is a sharp increase in government capital expenditures which can act as a stimulus for growth.
    • A detailed investment plan of the government and public sector enterprises must be drawn up and presented as part of the coming Budget.

    Increasing investment

    • Over the past decade, the investment rate has been falling.
    • In 2018-19, the rate fell to 32.2% of GDP from 38.9% in 2011-12.
    • Some of the recent measures including corporate tax rate changes may help in augmenting investment.
    • A strong effort must be made to improve the investment climate. The National Infrastructure Pipeline is a good initiative.
    • But the government must come forward to invest more on its own.

    Reforms with consensus

    • Reforms are important in the context of rapid development.
    • However, timing, sequencing, and consensus-building are equally important while introducing them.
    • Labor reforms, for example, are best introduced when the economy is on the upswing.

    Consider the question ” Growth must not only be consumption-driven but also investment-driven. It is the latter which in a developing economy can sustain growth over a long period. In light of this, suggest the policy imperatives that India should follow to make good of the decline in 2020-202.”

    Conclusion

    To achieve the level of $5 trillion, we need to grow continuously at 9% for six years from now. That is the challenge before the economy. Jobs and employment will come from growth. They are not independent of growth. For that policymakers should eschew other considerations and focus only on growth.

  • Government must promote crop diversification by setting MSP for other crops as well

    Farmers’ genuine concerns must be addressed as soon as possible so that they can continue producing food and fibre needed for the ever-increasing population.

    Green revolution and farmer’s contribution to the food sufficiency in India

    • In the early 1960s, near-famine conditions prevailed in India and some 10 million tonnes of wheat had to be imported from the US under the PL480 programme. The country’s situation was like“ship-to-mouth” existence.
    • High-yielding dwarf wheat varieties brought from Mexico were provided to Indian agricultural institutes.
    • The consequent miraculous gains in wheat yield and production ushered in the “Green Revolution.”
    • The Green Revolution occurred due to a confluence of favourable government policies, efforts of agricultural scientists and the adoption of new wheat varieties/selections by farmers.
    • Also, the contributions of farmers of Punjab (Haryana included) was also very important and they became the backbone of the revolution.
    • By 1974, the industrious farmers of the “food-bowl” states of Punjab, Haryana, and western UP had brought about self-sufficiency in foodgrain production, ridding the country of the “begging bowl”.

    Practice Question: What are the concerns of the farmers after new agriculture reforms and how they can be addressed?

    Farmer’s concerns

    • Consultation with farmers is important before drafting policies –
    • There will be resistance no matter which organization enact the policies/rules without taking the affected people on board. A proactive approach is always better than a reactive one.
    • From the farmers’ standpoint, the ordinances were unfairly promulgated in June 2020, during the COVID-19 lockdown, without consulting them.
    • Loss of Income in the lockdown – Farmers could not sell their vegetables and fruits because of the lockdown causing the loss of income and then the imposition of the new laws aggravated them.
    • Uncertainty in the minds of farmers about the continuation of MSP –
    • Farmers have been selling food grains (mainly wheat and rice) at Minimum Support Price (MSP) since the mid-1960s.
    • This has helped to create a central pool of food grains and the Public Distribution System to help poor people.
    • But MSP has not been guaranteed in the newly enacted farm laws, which is the major bone of contention.
    • The APMCs are under threat from the new farm laws as MSP and APMC go hand-in-hand.

    New Middleman –

    • The central government has indicated that the new farm laws are meant to eliminate the “middlemen”.
    • But the farmers feel that a new class of middlemen, that is, lawyers belonging to big companies would emerge.
    • Thus, small farmers would be at a distinct disadvantage — more than 80 per cent of farmers own less than five acres of land.

    Contract farming –

    • According to the central government, the new laws will ensure contract farming.
    • The farmers fear that big companies might usurp their land and might not pay them an agreed price on the pretext of “poor quality” of produce.
    • They feel that big companies might become monopolies, and exploit both farmers and consumers. Farmers fear being made into labourers.

    Way forward

    MSP is a must –

    • A clause should be added in the law to the effect that no matter who buys the produce (government or a private entity), the farmer must be given an MSP.
    • The National Farmers’ Commission’s recommendation of providing an MSP of 50 per cent over and above a farmer’s input expenses must be implemented.
    • APMCs should be continued – The fees that “Mandi Boards” collect (for example the Rural Development Fund) have helped build link roads. No private organization will do this.
    • MSP should be determined on the basis of grain quality.

    Crop diversification is needed –

    • The government must promote crop diversification by purchasing crops produced other than wheat and rice at MSP. This could help conserve the dwindling supply of underground water.
    • To encourage farmers to grow high-value crops, such as vegetables and fruits, the government should set up the adequate cold-chain infrastructure.
    • The farmers’ staying power must be improved so that they don’t have to sell all of their produce immediately after the harvest.
    • India has produced a number of World Food Laureates, including M S Swaminathan, Gurdev S Khush, Surinder K Vasal, and Rattan Lal. Such intellectuals should be in the “Agricultural Think Tank.”