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GS Paper: GS3

  • Budget’s big worry: the food subsidy

    The article highlights the challenge of managing the procurement of wheat and rice at MSP by the FCI and maintaining its financial health.

    The problem of surplus in wheat and rice procurement

    • While MSP is declared for 23 crops, the biggest financial burden comes from wheat and rice.
    • Procurement has increased significantly with states like MP, Chhattisgarh, Telangana and Odisha stepping up their efforts.
    • Overall procurement of rice and wheat has gone up to 52 million tonnes and 39 million tonnes, respectively.
    • The requirement of PDS and welfare schemes is about 60 million tonnes.
    • This leaves a surplus of about 30 million tonnes, in addition to the carry-over stock of about 42 million tonnes (current)—far above the buffer and strategic reserve norms.

    Cost of the surplus and its significance

    • The subsidy burden for rice and wheat (2020-21) is estimated to be Rs 1.8 lakh crore.
    • FCI procures wheat and rice at MSP (some states do so under the decentralised procurement & distribution scheme).
    • They incur costs like market fees, labour charges, packing costs, transport, storage charges, etc.
    • These are of the order of 9% for procurement, 9-11% for labour and transport, and 15-17% for distribution.
    • The sale price is fixed at Rs 2 and Rs 3 per kg for wheat and rice, respectively, under the National Food Security Act.
    • In addition, there are releases under LEAN (lower entitlements and higher costs compared to NFSA cards, but subsidised nonetheless) and Open Market Sales (OMSS).
    • Cost of holding the buffer for a year is about Rs 5,500 per tonne.
    • FCI is holding 39 million tonnes of rice and 55 million tonnes of wheat (July 2020) against the buffer/strategic reserve norm of 13.5 million tonnes of rice and 27.6 million tonnes of wheat, i.e., a surplus of 52 million tonnes.
    • The cost of holding this stock works out to Rs 29,000 crore per year.

    Financial burden on FCI

    • The finance ministry has not been able to allocate adequate funds to meet the full requirement of food subsidy.
    • Under-provisioning on this account has been going on, and FCI was being given loans at 8% interest from the National Savings Scheme Fund (NSSF) since 2016-17.
    • The outstanding loan on this account (October 31, 2020) is Rs 2,93,000 crore.
    • This has meant FCI getting zero budgetary support against current subsidy claims since 2017, thereby, postponing the problem year after year.
    • The subsidy burden is rising (with MSP increasing every year, quantities going up and prices under PDS fixed), and is likely to cross Rs 2 lakh crore.

    Conclusion

    Government need to bring in the reforms in the PDS and MSP regime to stop both the systems from collapsing under their own weights.

    Source:-

    https://www.financialexpress.com/opinion/union-budget-2021-22-the-burgeoning-food-subsidy-bill-will-be-a-key-budget-worry/2155584/

  • Five years since Paris Agreement, an opportunity to build back better

    This article by the Ambassador of the European Union underscores the need for implementation and action on the commitments made in the Paris Agreement to deal with climate change.

    EU’s commitment to implement Paris Agreement

    • In December 2019, the European Commission launched the European Green Deal — roadmap to achieve climate neutrality in the EU by 2050.
    •  “Next Generation EU” recovery package and our next long-term budget earmark more than half a trillion euros to address climate change.
    • Recently  EU leaders unanimously agreed on the 2030 target of reducing greenhouse gas emissions by at least 55% compared to 1990 levels.

    Impact on low carbon technologies

    • These actions and commitments of the EU towards Paris Agreement will further bring down the costs of low carbon technologies.
    • The cost of solar photovoltaics has already declined by 82% between 2010 and 2019.
    • Achieving the 55% target will even help us to save €100 billion in the next decade and up to €3 trillion by 2050.

    EU working with India on climate actions

    • No government can tackle climate change alone.
    •  India is a key player in this global endeavour.
    • The rapid development of solar and wind energy in India in the last few years is a good example of the action needed worldwide.
    • India has taken a number of very significant flagship initiatives such as the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure and the Leadership Group for Industry Transition.
    • India and Team Europe are engaged to make a success of the forthcoming international gatherings: COP 26 in Glasgow on climate change and COP 15 in Kunming on biodiversity.

    Way forward

    • The international community should come forward with clear strategies for net-zero emissions and to enhance the global level of ambition for 2030.
    • Our global, regional, national, local and individual recovery plans are an opportunity to ‘build back better’.
    • We will also need to foster small individual actions to attain a big collective impact.

    Conclusion

    With climate neutrality as our goal, the world should mobilise its best scientists, business people, policymakers, academics, civil society actors and citizens to protect together something we all share beyond borders and species: our planet.

  • Why the universe has less ‘antimatter’ than matter?

    This newscard is an excerpt from the original article published in DownToEarth.

    Try this PYQ:

    Q.The known forces of nature can be divided into four classes, viz, gravity, electromagnetism, weak nuclear force and strong nuclear force. With reference to them, which one of the following statements is not correct?

    (a) Gravity is the strongest of the four

    (b) Electromagnetism act only on particles with an electric charge

    (c) Weak nuclear force causes radioactivity

    (d) Strong nuclear force holds protons and neutrons inside the nuclear of an atom.

    What is Antimatter?

    • Antimatter is the opposite of normal matter. More specifically, the sub-atomic particles of antimatter have properties opposite those of normal matter.
    • The electrical charge of those particles is reversed.
    • Antimatter was created along with matter after the Big Bang, but antimatter is rare in today’s universe.
    • To better understand antimatter, one needs to know more about the matter.
    • The matter is made up of atoms, which are the basic units of chemical elements such as hydrogen, helium or oxygen.

    Their existence

    • The existence of antimatter was predicted by physicist Paul Dirac’s equation describing the motion of electrons in 1928.
    • At first, it was not clear if this was just a mathematical quirk or a description of a real particle.
    • But in 1932 Carl Anderson discovered an antimatter partner to the electron — the positron — while studying cosmic rays that rain down on Earth from space.
    • Over the next few decades’ physicists found that all matter particles have antimatter partners.
    • Scientists believe that in the very hot and dense state shortly after the Big Bang, there must have been processes that gave preference to matter over antimatter.
    • This created a small surplus of matter, and as the universe cooled, all the antimatter was destroyed, or annihilated, by an equal amount of matter, leaving a tiny surplus of matter.
    • And it is this surplus that makes up everything we see in the universe today.

    Studying the difference between matter and antimatter

    • A Quark is a type of elementary particle and a fundamental constituent of matter.
    • Quarks combine to form composite particles called hadrons, the most stable of which are protons and neutrons, the components of atomic nuclei.
    • The behaviour of quarks, which are the fundamental building blocks of matter along with leptons, can shed light on the difference between matter and antimatter.
    • Since they are unstable, they will “decay” — fall apart — into other more stable particles at some point during their oscillation.

  • Firefly Bird Diverters’ to save the Great Indian Bustard (GIB)

    The Environment Ministry along with the Wildlife Conservation Society (WCS) India has come up with a unique initiative a “firefly bird diverter” for overhead power lines in areas where Great Indian Bustard (GIB) populations are found in the wild.

    Try this PYQ:

    Q.Which one of the following groups of animals belongs to the category of endangered species?

    (a) Great Indian Bustard, Musk Deer, Red Panda, Asiatic Wild Ass

    (b) Kashmir Stag, Cheetah, Blue Bull, Great Indian Bustard.

    (c) Snow Leopard, Swamp Deer, Rhesus Monkey, Saras (Crane)

    (d) Lion Tailed Macaque, Blue Bull, Hanuman Langur, Cheetah

    Great Indian Bustard

    • The GIB is one of the heaviest flying birds and can weigh up to 15 kg which grows up to one metre in height.
    • In July 2011, the bird was categorised as “critically endangered” by the International Union for Conservation of Nature (IUCN).
    • It is considered the flagship grassland species, representing the health of the grassland ecology.
    • For long, conservationists have been demanding to secure this population, warning that the bird might get extinct in the coming decades.
    • It would become the first mega species to disappear from India after Cheetah in recent times.
    • Till the 1980s, about 1,500-2,000 Great Indian Bustards were spread throughout the western half of India, spanning eleven states.
    • However, with rampant hunting and declining grasslands, their population dwindled.

    Bird Diverters

    • The diverters are called fireflies because they look like fireflies from a distance, shining on power lines in the night.
    • GIBs are one of the heaviest flying birds in India. Therefore, when they encounter these wires, they are unable to change the direction of their flight.
    • Death is most cases is due to impact with the wires and not due to electrocution.
    • The diverter will not only save GIB but other species of large birds, including migratory birds.

    Why such a move?

    • GIB is one of the most critically threatened species in India, with less than 150 birds left in the wild.
    • A report has pointed out that power lines, especially high-voltage transmission lines with multiple overhead wires, are the most important current threat for GIBs in the Thar region.
    • They are causing unsustainably high mortality in about 15% of their population.

  • 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.