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GS Paper: GS3

  • FDI in coal mining

    The Union Cabinet has approved an ordinance to amend two laws to ease mining rules, enabling foreign direct investment in coal mining.

    About the Ordinance

    • At a Cabinet meeting chaired by PM the ordinance to amend the Mines and Minerals (Development and Regulation) Act, 1957 and the Coal Mines (Special Provisions) Act, 2015 was approved.

    Benefits of the proposed FDI

    • The decision would boost the ease of doing business and increase the growth avenues.
    • The Coal India would be strengthened and the government was aiming at achieving production of one billion tonnes by 2023-2024.
    • The “end-use restrictions” had been done away with allowing “anyone to participate in the auction of coal blocks”.
    • The ordinance would strengthen the auction process of those mines whose leases were expiring on March 31, 2020. Seamless transfer of clearances would also be facilitated.

    Back2Basics

    Foreign Direct Investment (FDI)

    • A FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
    • It is thus distinguished from a foreign portfolio investment by a notion of direct control.
    • FDI are commonly made in open economies that offer a skilled workforce and above-average growth prospects for the investor, as opposed to tightly regulated economies.
    • FDI frequently involves more than just a capital investment. It may include provisions of management or technology as well.

  • Lithium-Sulfur Battery

    Researchers from Australia have claimed that they have developed the world’s most efficient lithium-sulfur (Li-S) battery, capable of powering a smartphone for five continuous days. With this equivalence, an electric car would be able to drive a distance of over 1,000 km in one charge.

    What are Lithium-Sulfur Batteries?

    • Researchers who have developed this new Li-S battery claim it has an “ultra-high capacity” and has better performance and less environmental impact.
    • This means that they may be able to outperform the Li-ion batteries by more than four times.
    • With Li-ion batteries, some disadvantages include their susceptibility to overheating and their being prone to damage at high voltages.
    • Such batteries also start losing their capacity over time — for instance, a laptop battery in use for a few years does not function as well as a new one.

    Construction

    While the materials used in the Li-S batteries are not different from those in Li-ion batteries, the researchers have reconfigured the design of the sulfur cathodes (a type of electrical conductor through which electrons move) to accommodate higher stress without a drop in overall capacity.

    Advantages of the Li-S batteries

    • Li-S batteries are generally considered to be the successors of the Lithium-ion (Li-ion) batteries because of their lower cost of production, energy efficiency and improved safety.
    • Their cost of production is lower because sulfur is abundantly available.
    • Even so, there have been some difficulties when it comes to commercialising these batteries, mainly due to their short life cycle and poor instantaneous power capabilities.

    Why is this development important?

    • As the market share of electric vehicles (EV) is increasing and people are becoming more aware and conscious of global warming and climate change.
    • There is a need for development in terms of the kind of batteries used in these vehicles.
    • The growth of the EV market is linked to the development of batteries that are cost-effective, more efficient and leave a smaller environmental burden.
    • Today, most EV use Li-ion batteries, but are slowly reaching their theoretical limits of being able to provide roughly up to 300-watt hour per kilogram of energy.
    • Thus arises the need for batteries that can store more energy to run these cars, and Li-S batteries are considered to be a good alternative.

  • [pib] Operation Sankalp

    Indian Navy has commenced Maritime Security Operations, code named Op SANKALP, in the Gulf region to ensure safe passage of Indian Flag Vessels transiting through the Strait of Hormuz.

    Op Sankalp

    • Indian Navy warships and aircraft were deployed to establish presence, provide a sense of reassurance to the Indian merchantmen, monitor the ongoing situation and respond to any emergent crises.
    • The operation is being progressed in close coordination with all stakeholders including Ministry of Defence, Ministry of External Affairs, Ministry of Shipping, Ministry of Petroleum and Natural Gas and DG, Shipping.
    • The Navy continues to monitor the situation in the Gulf region and is maintaining presence in the region to ensure security of our sea borne trade and the safety of Indian Flag Merchant Vessels transiting through the region.

  • Genome Sequencing of Cobra Venom

    This week, an international team of researchers reported that they have sequenced the genome of the Indian cobra, in the process identifying the genes that define its venom.  This has provided a blueprint for developing more effective antivenom.

    Big four in Snake bites

    • India alone accounts for about 50,000 deaths annually, and these are primarily attributed to the “big four”.
    • The challenge has been producing antivenom for the species known collectively as the “big four” — the Indian cobra (Naja naja), common krait (Bungarus caeruleus), Russell’s viper (Daboia russelii), and saw-scaled viper (Echis carinatus).
    • In India, common antivenom is marketed for the treatment of bites from the “big four”, but its effectiveness is questionable.
    • While the common antivenom worked as marketed against the saw-scaled viper and the common cobra, it fell short against some neglected species and also against one of the “big four” — the common krait.
    • Accidental contact with snakes leads to over 100,000 deaths across the world every year.

    What is antivenom?

    • Antivenom is currently produced by a century-old process — a small amount of venom is injected into a horse (or a sheep), which produces antibodies that are then collected and developed into antivenom.
    • This is expensive, cumbersome and comes with complications. Some of the antibodies raised from the horse may be completely irrelevant.

    Why has production of effective antivenom been challenging?

    • Venom is a complex mixture of an estimated 140-odd protein or peptides.
    • Only some of these constituents are toxins that cause the physiological symptoms seen after snakebite.
    • But antivenom available today does not target these toxins specifically.

    Issues with present antivenom

    • The horse also has a lot of antibodies floating in its blood that have nothing to do with the venom toxins.
    • One more problem with horse antibodies — our immune system recognises it as foreign and when antivenom is given our body mounts an antibody response. This leads to what is called serum sickness.
    • Also, next time if one is unlucky and has a snakebite incident (even if it is a different snake) and they are given a horse-derived antivenom, the body is going to have a severe allergic reaction.

    How does decoding the genome help?

    • In the Indian cobra genome, the authors identified 19 key toxin genes, the only ones that should matter in snakebite treatment.
    • They stress the need to leverage this knowledge for creation of antivenom using synthetic human antibodies.
    • Targeting these 19 specific toxins using synthetic human antibodies should lead to a safe and effective antivenom for treating Indian cobra bites.

    Back2Basics

    Genome Sequencing

    • Genome is an organism’s complete set of DNA, including all of its genes.
    • Each genome contains all of the information needed to build and maintain that organism. In humans, a copy of the entire genome—more than 3 billion DNA base pairs—is contained in all cells that have a nucleus.
    • Genome sequencing is figuring out the order of DNA nucleotides, or bases, in a genome—the order of As, Cs, Gs, and Ts that make up an organism’s DNA.

  • Goldilocks Zone

    NASA has reported the discovery of an Earth-size planet, named TOI 700 d, orbiting its star in the “habitable zone”.

    Goldilocks Zone

    • A habitable zone, also called the “Goldilocks zone”, is the area around a star where it is not too hot and not too cold for liquid water to exist on the surface of surrounding planets.
    • Our Earth is in the Sun’s Goldilocks zone. If Earth were where the dwarf planet Pluto is, all its water would freeze; on the other hand, if Earth were where Mercury is, all its water would boil off.
    • Life on Earth started in water, and water is a necessary ingredient for life as we know it.
    • So, when scientists search for the possibility of alien life, any rocky exoplanet in the habitable zone of its star is an exciting find.

    TOI 700 d

    • The newest such planet was found by NASA’s Transiting Exoplanet Survey Satellite (TESS) mission, which it launched in 2018.
    • The star, TOI 700, is an “M dwarf” located just over 100 light-years away in the southern constellation Dorado, is roughly 40% of our Sun’s mass and size, and has about half its surface temperature.
    • The find was confirmed by the Spitzer Space Telescope, which sharpened the measurements that TESS had made, such as orbital period and size.
    • TOI 700 d measures 20% larger than Earth. It orbits its star once every 37 days and receives an amount of energy that is equivalent to 86% of the energy that the Sun provides to Earth.

  • [op-ed of the day] There is a design flaw with this military post

    Context

    Recently Chief of Defence Staff post was created by the Government. The utility of this post and the problem it could create are debated.

    History leading to the post

    • First World War brought to the fore the command and control dilemmas of concurrent conflicts.
    • During the colonial years of Great Britain, an issue that received consideration was the British higher command and control structures.
    • With the declaration of the Second World War, the responsibility of higher command fell on War Cabinet serviced by the Chiefs of Staff Committee.
    • Winston Churchill as prime minister given the supreme power but remained responsible to the parliament.
    • After the U.S. entered the war, a unified command required a single commander.
    • After the war ended and the Cold War started, Eisenhower became the supreme commander of NATO.
    • While political powers were vested in the NATO council.
    • Despite the experience of the World Wars the U.S. has not created CDS.
    • In the U.S., the military chain of command runs directly from theatre commanders to civilian secretaries to the President.
    • Britain, however, created the post of the Chief of Defence Staff.

    The outline for India

    • The three-tier defense management structure was adopted by Jawaharlal Nehru.
    • Cabinet Committee on security has served India for well over the years.

    Role of CDS

    • Department of Military Affairs, headed by CDS will deal with the Army, Navy and Air force and The Territorial Army.
    • Works related to procurement related exclusively to the services except for capital acquisition.
    • He will also act as a Principal Military Advisor to the Defence Minister.
    • CDS will not exercise any military command, including the three Service Chiefs, so as to be able to provide impartial advice to the political leadership.

    A subordination

    • There would be an implied subordination of the three service chiefs to the CDS notwithstanding any declaration to the contrary.
    • CDS is tasked with facilitating the restructuring of military commands.
    • Bringing about jointness in operations including through the establishment of joint/ theatre command.
    • This could encroach upon the domain of the service chiefs.
    • The CDS would outrank the three service chiefs even though all are four-star.
    • CDS could override the Service Chiefs on critical tactical and perhaps even strategic issues.

    Conclusion

    • The Department of Military Affairs would exercise control over the three services and also most problematic is the erosion of the civilian supremacy which could result with the creation of the post.

  • Explained: First Advance Estimates (FAE)

    The First Advance Estimates (FAE) were recently released by the Ministry of Statistics and Programme Implementation (MoSPI).

    The First Advance Estimates and their significance

    • The First Advance Estimates (FAE) extrapolate a variety of data, such as the Index of Industrial Production (IIP), the financial performance of listed companies, first advance estimates of crop production etc., for the first 7 to 8 months to arrive at the annual figure.
    • The significance of the FAE is that this is the final bit of official data before the government presents its next Budget.
    • The sector-wise Estimates are obtained by extrapolation of indicators like-
    1. IIP of first 7 months of the financial year,
    2. financial performance of Listed Companies in the Private Corporate sector available upto quarter ending September, 2019
    3. 1st Advance Estimates of Crop production,
    4. accounts of Central & State Governments, information on indicators like Deposits & Credits, Passenger and Freight earnings of Railways, Passengers and Cargo handled by Civil Aviation, Cargo etc., available for first 8 months of the financial year”.

    Estimates for 2018-19

    • It estimated India’s GDP will grow by just 5 per cent in the current financial year (2019-20). Last financial year, 2018-19, the Indian economy grew at 6.8 per cent.
    • The gross value added (GVA), which maps the economic activity from the income side as against the GDP which maps it from the expenditure side, is expected to grow by 4.9 per cent in 2019-20 as against 6.6 per cent in 2018-19.

    Drivers of the GDP

    There are four main drivers of the GDP:

    • One, the private consumption expenditure – that is the expenditure that you and I make in our personal capacity. This category has grown by just 5.7 per cent in 2019-20 while it grew by 8 per cent last financial year.
    • The second driver is the expenditure made by the Government. This grew by 10.5 per cent, which is higher than the rate of growth (9.2 per cent) in the last financial year.
    • But the most disappointing number is the deceleration in business investments in the economy.
    • This driver, which is the key to sustainable long-term growth, grew by less than 1 per cent; last financial year it grew by 10 per cent.
    • This shows that while the private consumption demand is tepid, businesses have completely turned off the tap on new investments despite the government making a once-in-generation cut in corporate taxes.

    Performance in terms of GVA

    • The GVA data provides a detailed picture. Given that the overall GVA has decelerated sharply, almost all sectors have witnessed slower growth in economic activity.
    • Only “Public Administration, Defence and Other Services,“ which essentially measures how the government did, grew by 9.1 per cent.
    • All other sectors saw a GVA growth that was slower than the average growth in the last financial year.
    • The worst performing sectors are ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Manufacturing’ and ‘Construction’, which are expected to see a GVA growth of 2.8 per cent, 1.5 per cent, 2.0 per cent and 3.2 per cent respectively.

    Back2Basics

    Real vs. Nominal GDP

    • GDP is the total market value of all goods and services produced in the economy during a particular year, inclusive of all taxes and subsidies on products.
    • The market value taken at current prices is the nominal GDP.
    • The value taken at constant prices — that is prices for all products taken at an unchanged base year (2011) — is the real GDP.
    • In simple terms, real GDP is nominal GDP stripped of inflation.
    • Real GDP growth thus measures how much the production of goods and services in the economy has increased in actual physical terms during a year.
    • Nominal GDP growth, on the other hand, is a measure of the increase in incomes resulting from rise in both production and prices.

  • Government Owned Contractor Operated (GOCO) Model 

    Indian Army has initiated the process of identifying potential industry partners to implement the Government Owned Contractor Operated (GOCO) model for its base workshops and ordnance depots intended to improve operational efficiency.

    GOCO model

    • The GOCO model was one of the recommendations of the Lt. Gen. DB Shekatkar (Retd.) committee to enhance combat capability and re-balancing defence expenditure.
    • In GOCO model, the assets owned by government will be operated by the private industries.
    • Under the GOCO model, the private companies need not make investments on land, machinery and other support systems.
    • The missions are set by government and the private sectors are given full independence in implementing the missions using their best practices.
    • The main advantage of the model is that the targets are achieved in lesser time frame. Also, it will boost competitiveness among the private entities paving way to newer technologies.

    Who will be eligible under the mode?

    • The service provider should be an Indian registered company with at least 10 years of working experience in related domains and have an average annual turnover of â‚č50 crore for each of the last three financial years.

  • Operation Twist

    Reserve Bank of India Governor has informed that the market’s reaction to Operation Twist was on expected lines.

    Operation Twist

    • The simultaneous buy-sell of government bonds, known as Operation Twist, was conducted to bring down long-term interest rate while allowing short term rates to inch up.
    • The move was aimed at addressing liquidity, which is assymetric — abundant at the shorter end but not on the longer end. The move will help in monetary transmission.
    • The central bank has so far carried out three rounds of simultaneous bond buy-and-sell via open market operations.

    For more reading, navigate to the page:

    https://www.civilsdaily.com/news/operation-twist/

  • [pib] Snow and Avalanche Study Establishment (SASE)

    Snow and Avalanche Study Establishment (SASE) has issued an Avalanche warning to Leh in Ladakh region.

    SASE

    • SASE is a laboratory of the Defence Research and Development Organization (DRDO)
    • It is located near Manali, Himachal Pradesh.
    • Its primary function is research in the field of snow and avalanches to provide avalanche control measures and forecasting support to Armed forces.
    • Leh is important as it has two passes namely Chang La and Khardung La with world’s highest motorable roads through them with several avalanche-prone zones.
    • Its utility is also meant for the soldiers in the worlds highest battle filed Siachen, in the region.