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GS Paper: GS3

  • Irrigation In India – PMKSY, AIBP, Watershed Management, Neeranchan, etc.

    Neeranchal National Watershed Project

    As a part GS-3 – Irrigation systems, We need to focus on relevant projects/schemes launched in 2015-16. We will try to bring all such important projects/schemes. One such project is, “Neeranchal” for the Watershed Component of the Pradhan Mantri Krishi Sinchayi Yojana (PMKSY), Let’s see it in brief!

    What is a watershed?

    A watershed also known as drainage basin is an extent or an area of land where surface water from rain, melting snow or ice converges to a single point at a lower elevation, usually the exit of the basin, where the waters join another waterbody, such as a river, lake etc.


     


    What is watershed management?

    • Watershed management is an adaptive, comprehensive, integrated multi-resource management planning process that seeks to balance healthy ecological, economic, and cultural/social conditions within a watershed.
    • Watershed management serves to integrate planning for land and water; it takes into account both ground and surface water flow, recognizing and planning for the interaction of water, plants, animals and human land use found within the physical boundaries of a watershed.

    What are the objectives of Neeranchal?

    • The Neeranchal Project will support PMKSY to improve watershed management practices and demonstrate measurable results in selected sub-watersheds
    • It will introduce new hydrological approaches and innovative tools for community participation with a more integrated watershed planning process
    • Pilot new field practices that will improve conservation outcomes, water availability, agricultural yields and climate resilience, and scale up a more effective monitoring and evaluation system to track performance
    • The project will be implemented by the Ministry of Rural Development over a six-year period (2016-21)

    Let’s first learn about Pradhan Mantri Krishi Sinchai Yojana (PMKSY)

    • PMKSY is a central scheme that aims at providing irrigation facilities to every village in the country by converging ongoing irrigation schemes
    • The vision of extending the coverage of irrigation ‘Har Khet Ko Paani’ and improving water use efficiency ‘More crop per drop’ in a focused manner
    • With end to end solution on source creation, distribution, management, field application and extension activities
    • A dynamic annual fund allocation methodology mandates states, to allot more funds to irrigation sectors for becoming eligible to access funds under this scheme, is being considered

    The Pradhan Mantri Krishi Sinchayee Yojana programme should concentrate on 2 important things –

    • First, it should quickly put to use 20–40 million ha of unutilised irrigation potential created in major, medium and minor irrigation projects
    • Second, it should provide better quality power rations to farmers during the time of peak irrigation demand.
    • Madhya Pradesh has done precisely this and multiplied the state’s irrigated area quickly, at small incremental cost, delivering double-digit agricultural growth

    What about funding ?

    • The Government of India and the World Bank have signed a US$ 178.50 million credit for the Neeranchal National Watershed Project to improve watershed management in rural rainfed areas
    • The credit will support the watershed activities of the PMKSY in selected states of Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Rajasthan
    • It will cover about 400 sub-watersheds of about 5,000 ha each and reach approximately 482,000 farmer households and two million people
    • The credit is from the International Development Association (IDA) – the World Bank’s concessionary lending arm with a maturity of 25 years, including a 5 year grace period

    [IDA – International financial institution which offers concessional loans and grants to the world’s poorest developing countries. The IDA is a member of the World Bank Group]

    Concerns that will be addressed by Neeranchal-

    • Bring about institutional changes in watershed and rainfed agricultural management practices in India
    • Build systems that ensure watershed programmes and rainfed irrigation management practices are better focused, and more coordinated, and have quantifiable results
    • Devise strategies for the sustainability of improved watershed. management practices in programme areas, even after the withdrawal of project support
    • Through the watershed plus approach, support improved equity, livelihoods, and incomes through forward linkages, on a platform of inclusiveness and local participation

     

     What are the benefits?

    • Lead to reducing surface runoff of rainwater
    • It will increase recharge of groundwater and better availability of water in rainfed areas
    • It resulting in incremental rainfed agriculture productivity, enhanced milk yield and increased cropping intensity through better convergence related programmes in project areas
    • It will strengthen and provide technical assistance to enhance delivery capacity
    • This is an area development programme and all people living in the project area will be benefitted

    What are the challenges ahead?

    • Enhanced participation of communities, building stronger capacities and systems to plan, implement, monitor and post-project sustainability of local institutions and assets
    • These challenges, if not resolved, can result in implementation delays, slow disbursements and benefits

    Want to read more?

    Published with inputs from Arun
  • Air Pollution

    On the morning of 29 November, Beijing woke up to air pollution levels not seen in over a year. The city’s government immediately issued an alert and ordered factories to stop or reduce production.


     

    The same morning, Delhi woke up to pollution levels much higher than Beijing’s.

    And it hosted the Delhi half marathon.

    In the name of health awareness, the runners breathed air laced with pollutants exponentially beyond safe levels. And they inhaled 10-20 times as much air as a sedentary person does.

    In sharp contrast, the embassies of Norway and the United States have taken urgent steps to safeguard their personnel. While Norwegian officials are set to get “hardship pay” for working in New Delhi, the US embassy’s school has cancelled outdoor activities for its students.

    The stark difference in attitudes, perhaps, is because most Delhiites know little about how exactly the city’s air is killing them. Slowly. Daily.

    The government has largely failed to make people aware of how the pollution affects them, what the main pollutants are, what precautions they should take, the types of masks they should wear, and suchlike.

    It only dumps air pollution data on a rather glib website, on a page full of numbers and technical terms befitting a chemistry textbook.

    There is no air warning system in Delhi that could alert citizens, shut down schools and prohibit outdoor activity when pollution reaches hazardous levels.

    Most of all, though, the residents should know what exactly makes Delhi’s air so toxic. Even if you know what it is – the toxin is called PM 2.5 – there is no easy way to know how harmful it is.

    So, here’s a primer.

    Why are we talking about PM2.5?

    Delhi’s air is not polluted as much with poisonous gases as it’s with really tiny particles known as PM2.5. And its levels are consistently 16-20 times higher than the prescribed standard. At the time of the half marathon, it was 48 times the limit.

    Greenpeace recently found that even inside Delhi’s classrooms, PM2.5 levels were 11 times the limit.

    What is PM2.5?

    PM stands for particulate matter, while the number refers to the size of the particles. So, PM2.5 is like extremely fine dust whose particles are just 2.5 microns wide — that’s thirty times smaller than the width of a human hair.
    The tiny size makes it harder to prevent PM2.5 from getting into the body, making it deadlier.

    What exactly is PM2.5 made up of?

    There is no easy answer to this since the toxin is identified more by its size than what it contains. It could be a variety of solid or liquid chemicals.

    According to the United States’ Environment Protection Agency, a PM2.5 particle, depending on where it’s emitted from, could contain compounds of any of these four materials:

    Carbon – from cars, trucks, waste burning
    Nitrate – from cars, trucks, thermal power generation
    Sulphate – from thermal power generation
    Crustal – suspended soil and metals
    While individual particles obviously can’t be seen without special equipment, large amounts are visible as haze or smog.

    Why is PM2.5 bad?

    1. Being tiny, these particles easily reach the lungs. From there, they can travel through the bloodstream and reach the heart.
    2. Long exposure to PM2.5 can worsen asthma and heart conditions. They also cause runny nose, sneezing and coughing.
    3. 5 coming from diesel vehicles contains carbon and is a carcinogenic.
    4. It can also cause other heart and lung diseases, or make them worse.
    5. It slow down development of lungs in children and can leave them with reduced lung function for the rest of their lives, according to the WHO.
    6. Illnesses caused by PM2.5 kill at least 3.1 million people a year across the world.
    7. The WHO estimates that exposure to PM2.5 reduces a person’s life expectancy by an average of 8.6 months.

    How much of PM2.5 is safe?

    The WHO says there is no safe level, PM2.5 is harmful in any amount. Still, there are standards on how much PM2.5 is too much.
    As per the WHO’s own standards, the average PM2.5 levels should not exceed 10 mg per cubic metre in one year.
    In one day, it should be under 25. Indian safety limits, however, are more relaxed – at 60.
    WHO says PM2.5 level mustn’t exceed 25 mg/cubic metre. Yet, India has relaxed the limit to 60

    What’s the best protection from PM2.5?

    1. Protecting yourself from PM2.5 doesn’t require gas masks, but cotton masks that can block very fine particles.
    2. It is recommended to use an N-95 mask, the same one used to protect against the H1N1 virus.
    3. Unfortunately, planting more trees does nothing to solve the problem.
    4. Since PM2.5 are particles and not gases, they can’t be processed by the leaves.
    5. In fact, a high tree density can make the exposure worse because the extra moisture in the air would trap the particles instead of letting them fly away with the wind.
    6. The only way to cut down PM2.5 levels is to stop it at the source – cars, factories, waste burning, thermal power plants. Until then, strap on the N-95s.

    Only way to reduce PM2.5 is to stop it at source – cars, factories, waste burning, thermal plants


     

    Source - CatchNews | Pic - Vox-cdn

    Everything that you want to know on Delhi’s Odd-Even Policy

    Delhi Government releases blueprint for Odd-Even formula December 25, 2015. In an attempt to curb alarming levels of pollution in the Indian capital, Delhi, authorities have announced that private cars with even and odd number plates will be allowed only on alternate days. Let’s see it in brief!


     

    How will odd-even policy work out?

    • The Odd-Even formula plan seeks to curb the number of vehicles plying in the national capital by limiting 4-wheelers on alternate days.
    • Under it cars with licence plates ending in an odd number will ply on odd dates and those ending with an even number can run on even dates.
    • This will be on a trial basis from 1 to 15 January, 2015.
    • During this implementation, public transport including buses and the Metro will be run at high frequency.
    • The government plans to run 6,000 more buses to accommodate those who can’t drive their cars.

    Then, Who is exempted?

    • The list of 20-plus exemptions from the restrictions include emergency vehicles, fire engines, ambulances, hospitals, hearses, prisons, VIPs, enforcement vehicles and defence ministry vehicles.
    • Among VIPs, leaders of the opposition in the Lok Sabha and Rajya Sabha, Chief Ministers of states, Judges of the Supreme Court and high court and Lokayukta are exempt. <CM of Delhi is not exempted>
    • CNG and electric vehicles are also exempt.
    • Two-wheelers and vehicles driven by or occupied by handicapped persons and female drivers are also exempt.

    So, Will it really help clean the Delhi air?

    • The Centre for Science and Environment (CSE), has welcomed the “emergency action to reduce vehicle numbers on the road” but questioned the absurdity of exempting 2-wheelers, which account for more than 30% of air pollutants generated by the transport sector in Delhi, and women drivers.
    • According to the scientists of the Delhi Pollution Control Committee (DPCC), 80 per cent of PM 2.5 air pollution is caused by vehicular traffic and reduction in its levels, even in outer areas of Delhi shows that reduction of four wheeled vehicles on roads.
    • The latest set of ambient air data collected at 18 locations across Delhi through mobile dust samplers shows a consistent trend of declining levels of PM 2.5 air pollution levels.
    • If we take 250-300 as an average, then there is a drop of 100 points in PM 2.5 levels. This means there is a drop in pollution by about 25 percent. [ Isn’t it great! ]

     

    But, Where did the odd-even idea come from?

    Car rationing has been tried in many countries around the world.

    • Rationalisation of the movement of private vehicles has been adopted in many countries, starting with Sweden (Stockholm) and extending to other European countries.
    • China (Beijing), Mexico and Colombia (Bogota) have also implemented such measures.

    Let’s glance over some international experiments?

    Beijing

    • The city initiated the alternate day car driving restrictions just ahead of the 2008 Olympic Games and saw pollution levels drop by almost 20%.
    • Currently, Beijing imposes this rule periodically, on days with high air pollution.
    • The city has also restricted its car sales since 2011 to 20,000 car plates every month.
    • However, they have made tremendous efforts to increase public transport such as bus connectivity and metro services. [ Lesson for Delhi ]

    Paris, France

    • The city has been imposing the odd-even number plate rule during periods of high air pollution. On such days, public transport is free.
    • The rule was last implemented in March 2015 when a smog alert was issued.

    Mexico

    • The “Hoy No Circula” was introduced in Mexico around 1989 to combat air pollution.
    • It called for citywide bans, one day per week, based on last digit of the number plates.
    • For example, plates ending in 5 and 6 were not allowed to drive on Mondays while 7 and 8 were not allowed to drive on Tuesdays and so on.
    • This measure was highly successful in bringing carbon monoxide (CO) levels down by almost 11%.
    • However, in the long run, people eventually started buying more cars, rendering the ban inefficient. Therefore, it actually ended in a rise in CO levels in the long run by almost 13%.

    Oh! Are these measures short-term?

    • Yes, these examples show that the system has better potential as a short-term measure.
    • It show that temporary restrictions on vehicles may not reduce air pollution in the long term.
    • Drivers inevitably buy more cheap and inefficient cars with different number plates to get around the rules.
    • Hence, such an initiative must be complemented by other measures to ensure that we have a stable system in the long run.

    So, Are there any long-term measures available?

    Centre for Science and Environment (CSE) has suggested some long-term measures –

    • There is a need to impose restrictions on diesel vehicles to promote electric and alternative fuel vehicles.
    • The electric vehicles should be exempted from any such alternate number plate restriction.
    • The number plate measure needs to be combined with high parking charges and intensified public transport strategy. <This should be the strategy for the entire period of poor air quality as well as a long-term measure>

    International Example

    • Paris has set an example by deciding to phase out diesel cars completely by 2020.
    • London is also planning to ban diesel cars despite having a fuel quality as high as Euro 6.
    • China has already banned diesel cars on roads.India, on the other hand, is still juggling between BS-III and BS-IV norms<With accepted ground reality, we can not directly implement BS-V/BS-VI in one go>

    What Delhi can do more?

    Immediately link and scale up metro, bus, autos, taxis-walk and cycle –

    • This is needed immediately to connect doorsteps of people with their destinations for effortless movement without the car.
    • Connect each and every neighbourhood with efficient and reliable public transport service.

    Provide safe and barrier free walking and cycling infrastructure –

    • Redesign roads and road network to give safe and priority infrastructure to walkers, cyclists and public transport users.

    Adopt parking policy and taxation measures to restrain car usage –

    • Currently, parking charges in Delhi are one of the lowest in the world.
    • Limit legal parking areas across the city and demarcate them on the ground. Impose high penalty for illegal parking on public space.
    • Impose higher taxes on cars for their congestion and pollution impacts. Use the revenue to build public transport.<Congestion tax can be a good case in this regard>

    How will it affect automobile industry sector?

    • Delhi’s odd-even decision will upset powerful automobile lobbies.
    • The stakes for the car industry are too high in the capital, which is India’s biggest car market.
    • The city has the largest population of registered motorised vehicles in the country, about 89 lakh as on March 31, 2015.
    • Of them, 26 lakh are cars, 28 lakh motorcycles and 27 lakh scooters.
    • In comparison, the number of commercial vehicles like taxis, buses and three-wheelers is about 3.5 lakh.
    • The national capital region (NCR) accounts for 12% of car sales in India and is the biggest car market in the country.
    • The temporary ban, according to reported estimates, will prevent 12,000 new diesel cars from coming on the Delhi roads.

    So, the Odd-Even vehicle formula restriction is a good initiative, it is only a start. To control congestion, reduce pollution and improve liveability, there must be a comprehensive strategy in Delhi.

    At national level, how odd-even policy will affect Make in India programme? Critically analyse.


     

  • Direct Benefits Transfers

    The government’s DBT plan involves transferring the subsidy amount directly to the beneficiaries’ bank accounts.

    • Here, the government does not have to fiddle around with differential pricing for the underprivileged.
    • This method can effectively address the issue of leakages and go a long way in solving the mis-targeting problem.

    The government has also linked DBT to Aadhaar. Efficient targeting, using Aadhaar-linked data, ensures that the intended beneficiary receives the money in his account, thus helping him as well as reducing the government’s subsidy burden. This has resulted in effectively solving the leakage and mis-targeting problems in some schemes.


    • DBT in India
    • Pre requisite of successful DBT
    • Merits of DBT
    • Demerits of DBT
    • DBT in fertilizers
    • Is India ready to implement DBT in all programmes?
    • Suggestions for improvement
    • Conclusion

    DBT in India

    Direct Benefit Transfer is a mechanism to transfer the subsidy amount directly to the bank account of beneficiaries. Main agendas for DBT is to prevent and address following

    1. Leakages
    2. Delays
    3. Reducing structural expenses in distributing the subsidies in hand
    4. Encouraging everyone to have bank account and achieve financial inclusion.

    Right now it is applied to only 4 areas that too in selected districts:

    1. LPG subsidies
    2. Jnani Suraksha Yojana
    3. Old age pension
    4. Scholarships

    Pre requisite of successful DBT

    source

    Merits of DBT (Direct Benefit Transfer)

    • Leakage and delays are prevented.
    • Reduces Corruptions and black money issue.
    • Reduces economical inequalities in rural areas as everyone gets theire share rightfully.
    • Reducing the government expense on PDS, Cooperative society, bureaucracy to distribute scholarships etc.
    • Reduces time, energy and money of people to get their money/commodity.
    • Encourage free and fair market structure. Earlier subsidised grains entering market through backdoor used to distort the price in market.
    • More circulation of money in economy which will lead to at least 0.5% growth in GDP.
    • Government can better focus on other issues and not engaging in distribution.
    • Transportation charge for FCI and NABARD subsidies for warehouses will be reduced.
    • Slowly importance of MSP will reduce while price a farmer would fetch will increase which is win-win situation for farmers, also non-food crops will get importance which is issue right now in India.
    • Financial institutions will pay attention in rural area once people have cash in their hand.
    • Health facility will get better with private hospital giving facilities once people will have money to get treatment.

    Demerits of DBT

    • Money in the hand of poor may get spent in something other than what is needed, a scholarship needed to be spent in education only, but how government can ensure that, once she has sent it to account
    • Most accounts holder are males who have accessibility to banks, hence it will lead to usage by them only. Females may not get their share if they are the intended beneficiaries
    • With lesser banks in rural parts of India, it will be another overhead for people to get their withdrawal
    • Delay in transfer may create more turbulence as many will flock to banks to check on their balances

    DBT in fertilisers

    Government is embarked on rationalizing subsidies as has been seen in LPG subsidy which saved thousands of crores of government exchequer. Now it has proposed for rolling out DBT for fertilizers as has been mentioned in recent economic survey.

    Pros of DBT in fertilizer –

    • It would be beneficial for minimizing the use of fertilizer which would check degradation of soil nutrients and would prevent water contamination.
    • Farmers would be free from moneylender’s debt trap as now they would have secure money in their bank accounts. It would be helpful for inculcating saving habits also in farmers.
    • Released government control on the fertilization market would drive competition and would enhance productivity.
    • Enhanced financial inclusion and financial literacy will give boost to digital India and skill India.
    • No middlemen > no leakage > benefits to the needy > correct use of tax payer’s money (redistribution of wealth).
    • Less burden on government exchequer > fiscal consolidation target >money transferred in job creation and infrastructure development

    However there are some cons which need to be factored – 

    • More money in hand may lead to misuse like in drug, alcohol, unnecessary shopping or gambling etc.
    • May further widen the gap between big farmers and small farmers.
    • Bio-identification can be detrimental for the personal information of farmers if not properly handled.

    Operational challenges –

    • Management of data whether it may be of land, of status of farmer (landholder, tiller or tenant etc) or pertaining to agriculture practice is not up to the level in our country.
    • Though crores of accounts are opened but still there is a good number of people who are unbanked.
    • Some farmers have little knowledge about banking system so they can fall prey of undue interference.

    Is India ready to implement DBT across all programmes?

    The debate of implementing DBT in all subsidy programmes is discussed below. A proper implementation would helpful in following ways –

    • Filling leakages: DBT will help in reducing malpractices like leakages, ultimately giving the beneficiary what he is entitled. Example: LPG subsidy.
    • Increasing incomes: with large number of schemes which are implemented with an intention to increase incomes of the poor, but due to delay and other factors most of the time poor gets subsidy after a long time (like in wages of MNREGA). DBT can reduce these cases.
    • Financial inclusion: with the provision of DBT, poor will get themselves included in financial system of the country, which will help them to get other benefits and will boost their saving.

    Some of the downsides of the implementation – 

    • People may use money for other purposes rather than using it for what it is meant for like in case of PDS.
    • Due to lack of education and financial literacy, poor will keep themselves outside the purview of banks.
    • Inadequate development of the banking channel in rural areas is also a challenge.
    • Lack of adequate documents also leads to exclusion of many poor from banking sector.

    source

    Conclusion

    DBT revolutionized the banking sector by connecting low income segments of society with banks. There is no doubt that DBT has created a firm base for financial inclusion, which will include poor sections to the growth and development processes.

    National Payment Corporation of India (NPCI) has successfully opened 150 million DBT accounts with Adhaar numbers and around 125 million accounts under Jan Dhan Yojana.

    The government is fully relying on this scheme to plug leakages and save costs. It is estimated that over the time it could save up to 1.2% of GDP, which is currently lost in transit.


    References:

  • Bharat Emission Standards

    Bharat Emission Standards – Everything that you want to know

     

    Recently, govt. has decided to implement Bharat Standards VI norms on April 1, 2020. This comes in the wake of pressure from the Supreme Court to implement clean vehicular fuel norms soon amid concerns about rising air pollution, especially in Delhi.

    This policy is in line with our commitments at the Paris Climate Change Conference as well as public sentiments against rising air pollution in the cities, especially metros.

    These are norms instituted by the Govt of India to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles.

    • The standards and the timeline for implementation are set by the Central Pollution Control Board under the Ministry of Environment & Forests and Climate Change.
    • The standards are based on European regulations and were first introduced in 2000.

    What is the current status of emission norms?

    Currently, BS IV norms are applicable in 33 cities in which the required grade of fuel is available.

    In rest of India, we are still following BS III standards.


     


     

    Let’s see a little background of its implementation

    1991– India introduced the emission norms for the first time.

    1996– The norms saw some tightening as govt. asked most vehicle manufacturers to incorporate catalytic converters to cut exhaust emissions.
    Govt. also notified fuel specifications based on environmental considerations, which were to be implemented by 2000.

    2000– Govt. notified BS-I and BS-II standards, which were equivalent to Euro I and Euro II respectively. <BS-II was for the NCR and BS-I for the rest of India>

    2005BS-III and BS-II fuel quality norms came to be implemented. <BS-III for 13 major cities and BS-II for the rest of India>

    2010 BS-IV and BS-III fuel quality norms were introduced. <BS-IV for 13 major cities and BS-III for the rest of India>

    It works on a two-pronged strategy to control the air pollutant output.

    1. Reducing the Sulphur content in the fuel.
    2. At engine level, it augments some equipment which reduces emissions.

    What does Auto Fuel Policy have to say?

    Auto Fuel Policy 2003

    • It aims at addressing issues of vehicular emissions and vehicular technologies by applying fuel quality standards.
    • It encouraged the use of CNG/LPG fuel in cities affected by higher pollution levels.
    • It gives the timeline for adopting the Bharat Standards across the country:
      BS IV- 2017
      BS V- 2020
      BS VI- 2024

    Recently, govt had constituted an Expert Committee under the Chairmanship of Shri Soumitra Choudhuri, to draft Auto Fuel Vision and Policy 2025.

    Recommendations of Soumitra Choudhuri committee:

    It presents the road map for auto fuel quality till 2025 for the country,taking into account the achievement under the last Auto Fuel Policy, emission reduction of in use vehicles, growth of vehicles and the supply and availability of fuels.

    • It recommended nationwide fuel standards to be BS-IV. It has proposed to move to BS V from 2020 and BS VI from 2024.
    • To upgrade refineries to produce BS-V petrol and diesel will need Rs.80,000 crore.
    • It recommended Special Fuel Upgradation Cess of 75 paise/litre on fuel to meet the cost.

    Let’s analyse Bharat Standards vis-a-vis Euro Standards

    BS-VI is equivalent to Euro VI. However, many western countries have already graduated to Euro VI.

    But, India is following European emission norms with a time lag of  5 years.

    What are the challenges in implementing BS VI norms?

    Engine

    Engine development firms have cited a technological challenge in implementing the changes.

    They have cited that jumping directly to BS-VI norms would give them little time to design changes in their vehicles.

    Why is it challenging for auto firms to implement it?

    There are two critical components which needs a fitment in the engine. They would have to be adapted to India’s peculiar conditions, where running speeds are much lower than EU or US. Industry estimates of required investment to upgrade from BS-IV to BS-V are to the tune of Rs. 50000 crore.

    1. Diesel Particulate Filter– Its function is to remove particulate matter from diesel exhaust.
      ChallengeProblem is small cars with limited bonnet space would need major redesign to accommodate DPF. Temperature of 600 degrees Celsius is required to burn the soot in DPF, which is difficult to achieve in India due to low driving speeds.
    2. Selective Catalytic Reduction Module– It reduces oxides of Nitrogen.
      Challenge: It needs injection of Aqueous solution into the system, for which separate infrastructure is needed for countrywide supply.

    Fuel

    There are questions about the ability of the oil marketing companies to quickly upgrade fuel quality from BS-III and BS-IV standards to BS-VI.

    The objective of upgradation to higher emission norms is defeated, if the uniform fuel is not available across the country.<This has been seen in reduced efficacy of engines of BS-IV vehicles, while taking inter-state travel>


     

    Published with inputs from Pushpendra 
  • Tourism Sector

    It’s no secret that our Tourism Industry remains heavily underemployed, highly unregulated and its true potential to both Economy and workforce is still unharnessed. 

    With 32 UNESCO recognized natural and cultural heritage sites, India ranks second in Asia and fifth in the world. Still, India’s share in ITAs (International tourist arrivals) is a paltry 0.6%. 

    source

    Why are International / Foreign Tourists important?

    • For one, they bring in much valued Foreign Currency which contributes to our Foreign Exchange Reserves and keeps our Balance of Payment robust. <Note that Tourist expenditure in India counts as “Exports” under BoP accounting>
    • India’s receipts from tourism during 2012 ranked 16th in the world, and 7th among Asian and Pacific countries (World Tourism Organization Report)
    • It helps stabilize our currency in International Market
    • Builds Brand India (Incredible !ndia campaign has proven to boost foreign tourism more than domestic tourism)
    • Although it is notable that domestic tourists contribute to more than 75% of the revenue from Tourism Sector, but its denominated in INR
      • Note:  Under 7th Schedule division of Powers, Pilgrimages outside India comes under Union’s List while those Inside India is covered by State List.

    India’s Comparative performance in International tourist arrivals (ITAs)

    • ITA simply means the percentage of outbound tourists travelling to another country in proportion to all outbound tourists of the world combined.
    • France has the highest share of ITAs, despite being much smaller than a continent size country like India. (India’s share in ITA is 0.6% compared to 7.8 per cent in France)
      • Foreign tourist arrivals by source country: Largest foreign tourists are from USA, 2nd largest from Bangladesh and third largest from UK.
      • Tamil Nadu witnesses most foreign tourist visits.
    •  Although ITAs in India registered a growth of 10.6%, countries like Vietnam and Indonesia continue to have higher shares of FTAs than India
      • Internationally ranking pitiably 41st in terms of Foreign Footfalls- India gets only 77 lakh foreign tourists every year.
      • Travel & Tourism Competitiveness Report 2015 (World Economic Forum) ranks India 52nd out of 141 countries overall in areas other than Foreign Footfall.
        • India has quite good air transport (ranked 35th)
        • Reasonable ground transport infrastructure (ranked 50th).
    • Target: In next 3-5 years, we want to receive >1 crore tourists (and 1% of the ITAs should be in India)

    Who qualifies as a foreign tourist?

    • Staying at least twenty four hours in the country
    • Purpose of whose journey can be classified as either
      • Leisure (recreation, holiday, health, study, religion and sport)
      • Business, family, mission, meeting
    • Following are excluded from category of Foreign Tourists:
      • Persons arriving to take up an occupation or engage in activities remunerated from within the country are not treated as foreign tourists
      • Nationals of Nepal and Bhutan entering India through land routes, are also not included in the data series on foreign tourism

    Burning issue of Foreign Tourists and Sexual Assaults

    • Its noteworthy that 40% of the foreign tourists who came to India in 2013 were women
    • Delhi has repeatedly topped the survey for being the most unsafe and hostile city for Foreign Tourists.
    • How can this be prevented?
      • Foreign tourists in India are advised to take the same precautions like domestic tourists take
      • Code of conduct for tourist destinations and the stake holders there has also been fixed.
      • Accused should be apprehended by the police authorities within a few days and action be initiated to bring the culprits to justice
      • E.g. In the Madhya Pradesh incident in March, 2013, the accused were tried in a Fast Track Court and sentenced to life imprisonment within four months.

    What are other benefits of Tourism Sector to India?

    Economy: 

    • Contributes to 9% of global GDP, In India’s case it contributed 6.8% of the GDP

    Employment and demographics:

    • It is a labour intensive industry (Employs 8.7% of India’s workforce) and provides livelihood to non-farm sector
    • Although Tourism in India being largely an unorganized sector activity, potential for employment is still untapped
    • Women comprise 70% of the workforce and 50% of the workforce is below 25 years

    Other benefits apart from Employment:

    • Helps preserve heritage and culture (Fundamental Duty and DPSP)
    • Niches such as Rural tourism, and Ecotourism can help reverse migration to urban areas
    • Tourism sector can be a powerful antidote to poverty, it eliminates the disadvantage of market inacessibility suffered by poor in respect of their goods and services by bringing consumers to their doorstep

    Tourism reforms by integration with ongoing schemes

    It is said that Tourism as a sector doesn’t need huge budgetary expenditure for its rise as a “sunrise industry”. Here, we look at some of the ways we can make it so by integrating with ongoing schemes of Government of India.

    1. Infrastructure Reforms and Tourism

    • Sagarmala project beginning with Char Dham Yatra linking Puri Jagannatha Temple to Dwaraka by sea via various places off religious interest enroute
    • MNREGA labour for creating permanent assets like tourism infrastructure and facilities

     

    2. Taxation Reforms, Startup India and Tourism

    • Solve the Multiple Taxation Issues (give tax concessions to Tourism Sector)
    • Tour Operators don’t need to pay service tax, if serving foreign tourist for foreign trips. (e.g. Yatra.com etc)
    • Special Tourism Zones shall be notified and developed to encourage investment in identified areas along with PPP
    • Incentivize Startups which promote Tourism in Niche areas such as Adventure Tourism, Ecotourism, Rural Tourism
    • Devise a National Tourist Maps promoting Unique / Mystery Spots, and Less Known Destinations

     

    3. Tourist Training Schools, Skill India and Tourism

    • Skill and Etiquettes training to tour operators
    • Certification programmes like Hunar se Rozgar tak (HSRT) and earn while you learn programs
      • Vocational training for tourist guides hospitality business
      • Aims to train 8th class passouts (upto age of 28 years) in Food Production and Beverages services
      • Conducted through Institute of Hotel Management and Food Craft Institutes
      • Diploma in Tourism Management through ITIs

     

    4. Swachh Bharat and Tourism:

    • Litter/Recycling Bins at accessible places
    • Special focus on cleanliness and women safety of tourist sites
    • Partnering with Shulabh International (NGO) for scaling up pay-and-use toilets rather than depending on free public utilities (as it has been observed that former type remain more user friendly due to regular maintenance than government ones)

     

    5. Green Urban Policies and Tourism

    • Attempts should be made to design climatically responsive and location sensitive tourism architecture
    • Use energy efficient materials for pavements leading to a tourist landmark (minimal use of hardscape materials)
    • Solar lighting and use of renewable energy must be encouraged

     

    6. Conservation and Tourism

    • Adopt the principle of “First Conservation Later Tourism” for Cultural Heritage
    • Discourage fountains and water based elements in areas facing water paucity
    • Discourage large scale illumination in areas with electricity shortage (Without compromising on security, of course)

     

    7. Sugamya Bharat (Accessible India) and Tourism

    • Promote Universally accessible infrastructure for ease of access by differently abled and elderly
    • Use signages that conform to World Tourism Organization, and UNESCO charters for World Heritage Sites

    Annex: Eased norms for Tourit Visa

    • E-visa
      • Will increase foreign tourists by 25%.
      • Foreigner applies online (as opposed to Consulate/Embassy) he’ll get Visa in five days
    • Visa on arrival
      • Foreigner applies online three days before his arrival in India
      • Gets visa on airport, 30 days validity
      • As of 2015, this facility has been enlarged to cover 180 countries
  • e-Commerce: The New Boom

    The recent changes in e-commerce sector


     

    DIPP recently notified a new FDI policy for e-commerce and certain other rules <What exactly e-commerce is? Answer in comments>

    What are the rules?

    1. 100% foreign direct investment is permitted in the marketplace model of e-commerce
    2. FDI is not permitted in inventory based model of e-commerce

    Additional to these rules for FDI, the other rules are:

    1. An e-commerce entity may provide logistic, warehousing , order fulfilment, call centre, payment collection and other services
    2. An e-commerce entity will not permit more than 25% of the total sales should not be done by one vendor or its group companies
    3. The seller shall be responsible for post sales, warranty and guarantee of goods sold by it
    4. The e-commerce entity will not directly or indirectly affect the sale price of goods or services while maintaining a level playing field

    What does it mean?

    Now let’s analyse its impacts on various stakeholders, one-by-one

    #1. E-Commerce Players


     

    • Price determination- This is a grey area with unclear rules. One interpretation could be that Govt will determine the price and not the market. This could upset the markets
    • Clearly defining the models- This is a positive development. The marketplace and inventory based models are now concretely and clearly defined by law
    • Group companies- Group companies (Flipkart- WS Retail, Amazon- Cloudtail) are created to work around the e-retail rule which doesn’t allow FDI in B2C multi-brand retail

    The companies will now have to figure out a new way to scale down sales through their group companies

    • Discounts- The rule in itself is notvery clear as it doesn’t explictly spell out the terms ‘deep discounting’ or ‘discount’

    Example- Amazon uses the term ‘promotional funding’ to describe its discounting model, and as is clear, technically doesn’t affect the actual price of the product

    Even though the note says the rules are effective immediately, discounting has continued as is. It shows that that this is still a grey area

    • Inventory based models- This model, which is effectively under multi brand retail, remains out of the FDI route

    #2. The Consumer

    • E-commerce companies have brought in deep competition in the retail sector by way of offering discounts
    • How are the discounts funded? Part of this is funded through a cash burn, and part through operating efficiencies over the brick and mortar setup <What is cash burn? Answer in comments>
    • Restraints on discounts, if workout in real, consumers will lose a lot of power in terms of price and choice

    #3. Brick and Mortar Players


     

    • Effects on brick and mortar retailers will depend on how the restraints on discount work out
    • Footfalls in Brick & Mortar retail had dropped dramatically, and the pricing change may now draw consumers back
    • However, e-commerce companies and strong retailer lobbies will obviously work to keep their dominance

     

    Conclusion:

    • Overall, the move is in the right direction, but it lacks strength and complete clarity on various issues (such as pricing, discounting)
    • The grey area in pricing is very open to interpretation, especially on the point of determining the right price, and could be an anti-market move
    • Retail sectr still remains affected by a lot of interest groups and a solid policy change to actually reform retail remains

    After this, you can read this story for more insights- Disrupting the disruptors (The Hindu)