October 2021
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Policy Wise: India’s Power Sector

Issues with Free power

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Issues with free power

Context

With elections around the corner in many States, political parties are competing with one another in promising free power.

Problems with free power

  • Supported by state subsidy, electricity tariff to agriculture is low in most States – often less than ₹1/unit – and is free in some States such as Punjab, Tamil Nadu and Karnataka.
  • There is inefficient use of electricity and water, neglect of service quality by the distribution companies leading to frequent outages and motor burn outs, and high subsidy burden on the State governments.
  • Inflated consumption estimates: Since nearly three-fourth of the agriculture connections in the country are unmetered, consumption estimates are often inflated by distribution companies to increase subsidy demand and project low distribution losses.
  • Any metering effort faces resistance as it is perceived as the first step towards levying charges.
  • Opting-out schemes are being made but do not seem to have uptake.
  • Difficulty in implementing DBT: Free power provision along with issues of metering make implementation of Direct Benefit Transfer difficult.
  • All this leaves farmers, distribution companies and State governments frustrated.
  • Subsidy burden on Governments: Due to free power in Delhi, the total state subsidy amounts to 11% of the total expenses.
  • In Tamil Nadu, where free power is available to households, half of the total subsidy is earmarked for this.
  • If there is further increase in number and consumption limits of free power, the subsidy burden on State governments will substantially increase.
  • Low adoption of solar power: Roof-top solar and energy efficiency are good environment-friendly options for homes but providing free power to well-off households will discourage them from taking these up.

Way forward

  • Free or low-tariff power is at best a short-term relief, which should be provided to those who desperately need it.
  • Give fixed rebate: A fixed rebate of up to ₹200/month for residential consumers can be provided in the electricity bill.
  • As the rebate is delinked from consumption, distribution companies won’t have an incentive to inflate consumption.
  • Rebate for adopting energy-efficient appliances: There can be additional rebates for adopting energy-efficient appliances like refrigerators, combined with State-level bulk procurement programmes to reduce the cost.
  • Addressing mutual mistrust: The atmosphere of mutual mistrust between small consumers and distribution companies has to change.
  • There should be quick resolution of arrears and one-time offers for settlements.

Conclusion

There is a need to question the wisdom of broad-brush promises such as free power, which cannot be sustained in the long run.

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Foreign Policy Watch: India-United States

The sanctions cloud over India-U.S. ties

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CAATSA

Mains level: Paper 2- Implications of CAATSA on India-US ties

Context

The delivery of the S-400 Triumf air defence systems from Russia is expected according to schedule. In response, U.S. Deputy Secretary of State Wendy Sherman hoped that both the U.S. and India could resolve the issue.

Background of the CAATSA

  • The Countering America’s Adversaries through Sanctions Act (CAATSA) was passed when the U.S. sought to discourage trade in the defence and intelligence sectors of Russia.
  • The Act mandates the President to impose at least five of the 12 sanctions on persons engaged in a “significant transaction” with Russian defence and intelligence sectors.
  • These sanctions include suspending export licence, banning American equity/debt investments in entities, prohibiting loans from U.S. financial institutions and opposing loans from international finance institutions.
  • The Act also built in a safety valve in the form of a presidential waiver.
  • The “modified waiver authority” allows the President to waive sanctions in certain circumstances.
  • There are a few more provisions including one that allows for sanctions waivers for 180 days, provided the administration certifies that the country in question is scaling back its ties with Russia.

Implications of CAATSA sanctions against India and scope for waiver

  • Impact on bilateral relationship: Sanctions have the tremendous potential of pulling down the upward trajectory of the bilateral relationship between the U.S. and India, which now spans 50 sectors, especially in the field of defence.
  • India turned sullen over the manner in which the U.S. negotiated the exit deal with the Taliban.
  • Quad engagement: Yet, on the strategic plane, India remained on course by agreeing to the upgrading of the Quadrilateral Security Dialogue and sharing the same vision as the U.S. on the Indo-Pacific construct.
  • The U.S.’s apprehension is that bringing India under a sanctions regime could push New Delhi towards its traditional military hardware supplier, Russia.
  • The U.S. Sanctions can stir up the latent belief in India that Washington cannot be relied upon as a partner.
  • While the administration will have to do the heavy lifting, the role of Indian-Americans should be significant just as they rallied around to support the Civil Nuclear Deal in the face of stiff resistance from Democrats opposed to nuclear proliferation.
  • Decrease in imports from Russia: India’s import of arms decreased by 33% between 2011-15 and 2016-20 and Russia was the most affected supplier, according to a report by the Stockholm-based defence think-tank SIPRI.
  • In recent years, though, there have been some big deals worth $15 billion including S400, Ka-226-T utility helicopters, BrahMos missiles and production of AK-203 assault rifles.
  • Increase in defence import from US: On the other hand, over the past decade, government-to-government deals with the U.S. touched $20 billion and deals worth nearly $10 billion are under negotiation.

Conclusion

The CAATSA test will determine the course of the India-U.S. strategic partnership. Whether the Biden administration sail through opposition within his party remains to be seen.

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Policy Wise: India’s Power Sector

Reforms-based and Results-linked, Revamped Distribution Sector Scheme: Ensuring sustainable turnaround in financial health of discoms

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UDAY scheme

Mains level: Paper 3- Scheme for discoms

Context

In its budget 2021-22, the Union government had announced the launch of a “reforms-based and results-linked” scheme for the distribution sector.

Precarious financial condition of discoms

  • Their overall debt burden, despite the implementation of the UDAY scheme, is estimated to increase to around Rs 6 lakh crore in the ongoing financial year.
  • Moreover, their annual cash losses are estimated to be about Rs 45,000-50,000 crore (excluding UDAY grants and regulatory income).
  • Due to highly subsidised nature of power tariffs towards agriculture and certain sections of residential consumers, the overall subsidy dependence is likely to be roughly Rs 1.30 lakh crore this year at the all-India level.

Revamped Distribution Sector Scheme

  • In its budget 2021-22, the Union government had announced the launch of a “reforms-based and results-linked” scheme for the distribution sector.
  • Subsequently, the Revamped Distribution Sector Scheme was notified in July with an overall outlay of Rs 3.03 lakh crore. 
  • Under the scheme, AT&C losses are sought to be brought down to 12-15 per cent by 2025-26, from 21-22 per cent currently.
  • Operational efficiencies of discoms are to be improved through smart metering and upgradation of the distribution infrastructure, including the segregation of agriculture feeders and strengthening the system.
  • The scheme has two parts — Part A with an outlay of Rs 3.02 lakh crore, pertains to the upgradation of the distribution infrastructure and metering related works.
  • Part B, with an outlay of Rs 1,430 crore, is for training and capacity building, besides other enabling and support activities.
  • Discoms and their state governments will have to sign a tripartite agreement with the central government in order to avail benefits under the scheme.
  • Only those discoms that meet all the pre-qualifying criteria will be eligible for the release of funds.
  • A loss-making discom will not be eligible unless it draws up plans to reduce its losses, approved by the state government and filed with the central government.
  • As far as the agricultural sector is concerned, the use of solar power projects to supply electricity to these consumers through the agriculture feeder route is likely to result in savings.
  • This is because of a combination of high tariff competitiveness offered by solar power, lower technical losses due to proximity to load centres, and the ability to meet demand during the day when sunlight is available.
  • In addition, the delicencing initiative proposed by the central government can effect significant changes in the distribution segment, facilitating competition and placing emphasis on the quality and reliability of power supply and consumer services.

Issue of tariff determination

  • A continuing area of concern affecting discom finances is the significant delay in the process of tariff determination in many states.
  • As of now, only 19 out of 28 states have issued tariff orders for 2021-22, indicating sluggish progress.
  • Further, there is upward pressure on the cost of power supply for distribution utilities, considering the dominant share (around 70 per cent) of coal in the fuel mix for energy generation, the strengthening of imported coal prices and the possibility of domestic coal price revisions by Coal India.
  • As a consequence, a cost-reflective tariff determination process, coupled with the timely pass-through of power purchase costs, remains critical for the utilities.

Consider the question “Examine the factor that explains the continuing financial woes of state-owned discoms despite implementing several schemes. How Revamped Distribution Sector Scheme seeks to address the issue?”

Conclusion

On the whole, while the focus on improving the operational efficiency, and ensuring the financial sustainability of discoms is indeed welcome, timely implementation of the reforms is critical to achieving the milestones.

 

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Waste Management – SWM Rules, EWM Rules, etc

Extended Producer Responsibility (EPR) for Plastic Waste Collection

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Extended Producer Responsibility (EPR)

Mains level: Need for plastic waste management

The Environment Ministry has issued draft rules that mandate producers of plastic packaging material to collect all of their produce by 2024 and ensure that a minimum percentage of it be recycled as well as used in subsequent supply.

What is EPR?

  • Extended Producer Responsibility (EPR) means the responsibility of a producer for the environmentally sound management of the product (plastic packaging) until the end of its life.
  • India had first introduced EPR in 2011 under the Plastic Waste (Management and Handling) Rules, 2011 and E-Waste Management and Handling Rules, 2011.

What are the new EPR rules for Plastic Waste?

(A) Plastic packaging

  • The new EPR guidelines covers three categories of plastic packaging including:
  1. Rigid plastic
  2. Flexible plastic packaging of single layer or multilayer (more than one layer with different types of plastic), plastic sheets and covers made of plastic sheet, carry bags (including carry bags made of compostable plastics), plastic sachet or pouches
  3. Multi-layered plastic packaging which has at least one layer of plastic and at least one layer of material other than plastic.
  • It has also specified a system whereby makers and users of plastic packaging can collect certificates — called Extended Producer Responsibility (EPR) certificates — and trade in them.

(B) Ineligible plastics for EPR

  • Only a fraction of plastic that cannot be recycled will be eligible to be sent for end-of-life disposal such as road construction, waste to energy, waste to oil and cement kilns.
  • Only methods prescribed by the Central Pollution Control Board will be permitted for their disposal.

Targets for recycling

  • In 2024, a minimum 50% of their rigid plastic (category 1) will have to be recycled as will 30% of their category 2 and 3 plastic.
  • Every year will see progressively higher targets and after 2026-27, 80% of their category 1 and 60% of the other two categories will need to be recycled.
  • If entities cannot fulfil their obligations, they will on a “case by case basis” be permitted to buy certificates making up for their shortfall.

Effects on non-compliance

  • Non-compliance, however, will not invite a traditional fine.
  • Instead, an “environmental compensation” will be levied, though the rules do not specify how much this compensation will be.

Challenges in mandatory EPR

There are several challenges faced by both producers and bulk consumers that hinder proactive participation.

  • Consumer awareness: Waste segregation has been the greatest challenge in India owing to lack of consumer awareness.
  • Lack of compliance: The plastic producers do not wish to engage in the process holistically and take the effort to build awareness.
  • Large scale involvement: The EPR doesn’t take into account the formalization of informal waste pickers, aggregators and dismantlers.
  • Lack of recycle infrastructure: These challenges range from lack of handling capacity to illegitimate facilities in the forms of multiple accounting of waste, selling to aggregators and leakages.

Way forward

  • Tracking mechanism: What India needs is to develop tracking mechanisms and provide oversight of waste compliance, in order to ensure that the mechanism of waste disposal is streamlined.
  • Strict enforcement: While enforcement strictness is of paramount importance, it is also vital to build an incentive structure around this to ensure better complicity by the producers.
  • Innovation: The time is ripe for innovators to come up with an alternative for plastics and the strong will of the Government to rid the toxic waste in a sustainable and safe manner.

Try answering this PYQ:

Q.In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following?

(a) The Bio-medical Waste (Management and Handling) Rules, 1998

(b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999

(c) The e-Waste (Management and Handling) Rules, 2011

(d) The Food Safety and Standard Regulations, 2011

 

Post your answers here.

 

Also read:

[Burning Issue] Ban on Single Use Plastics

 

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Forest Conservation Efforts – NFP, Western Ghats, etc.

Amendments to the Forest Conservation Act, 1980

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Forest (Conservation) Act, 1980

Mains level: Issues with forest land diversion

The Ministry for Environment, Forests and Climate Change (MoEFCC) has published proposed amendments to the Forest Conservation Act, 1980.

The Forest (Conservation) Act, 1980

The FCA is the principal legislation that regulates deforestation in the country.

  • It prohibits the felling of forests for any “non-forestry” use without prior clearance by the central government.
  • The clearance process includes seeking consent from local forest rights-holders and from wildlife authorities.
  • The Centre is empowered to reject such requests or allow it with legally binding conditions.
  • In a landmark decision in 1996, the Supreme Court had expanded the coverage of FCA to all areas that satisfied the dictionary definition of a forest; earlier, only lands specifically notified as forests were protected by the enforcement of the FCA.

The FCA is brief legislation with only five sections of which-

  • Section 1 defines the extent of coverage of the law,
  • Section 2 restrictions of activities in forest areas and the rest deals with the creation of advisory committees, powers of rule-making and penalties.

Why is the Act being amended now?

  • The current definition of forests has locked land across the country; even private owners cannot utilise their own property for non-forestry purposes.
  • The pressure for forest land diversion has been coming from — Ministries such as Rail and Roads.
  • Under the Act, any diversion of any forest land for any purpose, including assignment of leases, needs prior approval of the Centre.

What defines ‘Forest’ under this act?

  • Previously, the Act had applied largely to reserve forests and national parks.
  • In 1996, ruling in T N Godavarman Thirumulpad v Union of India Case, the Supreme Court had expanded the definition and scope of forest land.
  • It would thus include all areas recorded as forest in any government record, irrespective of ownership, recognition and classification.
  • The court also expanded the definition of forests to encompass the “dictionary meaning of forests”.
  • This would mean that a forested patch would automatically become a “deemed forest” even if it is not notified as protected, and irrespective of ownership.
  • The Act would also be applicable over plantations in non-forest land.

What are the proposed amendments?

(A) Exemptions for Road and Railways

  • The MoEFCC has proposed that all land acquired by the Railways and Roads Ministries prior to 1980 be exempted from the Act.
  • Once the lands had been acquired for expansion, but subsequently, forests have grown in these areas, and the government is no longer able to use the land for expansion.
  • The Ministries will no longer need clearance for their projects, nor pay compensatory levies to build there.

(B) Relaxation

  • It distinguishes individuals whose lands fall within a state-specific Private Forests Act or comes within the dictionary meaning of forest as specified in the 1996 Supreme Court order.
  • The government proposes to allow the “construction of structures for bona fide purposes’’ including residential units up to 250 sq m as a one-time relaxation.

(C) Defense and other projects

  • Defence projects near international borders will be exempted from forest clearance.
  • Oil and natural gas extraction from forested lands will be permitted, but only if technologies such as Extended Reach Drilling are used.
  • Strip plantations alongside roads that would fall under the Act will be exempted.

What are the concerns?

  • Legalizing private ownership of forests: The rules will facilitate corporate ownership.
  • Deforestation: The exemption of forests on private land will lead to the disappearance of large tracts of forests.
  • Fragmentation: Exemption for private residences on private forest will lead to fragmentation of forests, and open areas such as the Aravalli mountains to real estate.
  • Tribal concerns: The amendments do not address what will happen to tribals and forest-dwelling communities over the cleared lands.
  • Threat to wildlife: Exemption for roads and railways on forest land acquired prior to 1980 will be detrimental to forests as well as wildlife – especially elephants, tigers and leopards.

Positives with the amendment

  • It has proposed making forest laws more stringent for notified forests, making offences non-bailable with increased penalties including imprisonment of up to one year.
  • It has disallowed any kind of diversion in certain forests.
  • It has attempt to define and identify forests once and for all — something that has been often ambiguous.

 

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International Space Agencies – Missions and Discoveries

James Webb: The most powerful space telescope

Note4Students

From UPSC perspective, the following things are important :

Prelims level: James Webb Space Telescope

Mains level: Dark Ages of the Univers

On Dec 18, 2021, after years of delays, the James Webb Space Telescope is scheduled to launch into orbit and usher in the next era of astronomy.

James Webb Space Telescope

  • JWST is a joint NASA–ESA–CSA space telescope that is planned to succeed the Hubble Space Telescope as NASA’s flagship astrophysics mission
  • It is the most powerful space telescope ever built.
  • It will enable a broad range of investigations across the fields of astronomy and cosmology, including observing some of the most distant events and objects in the universe,
  • It would help understand events such as the formation of the first galaxies, and detailed atmospheric characterization of potentially habitable exoplanets.

Its significance

  • Some have called JSWT the “telescope that ate astronomy.”
  • It is said to look back in time to the Dark Ages of the universe.

What does the ‘Dark Ages’ of the universe mean?

  • Evidence shows that the universe started with an event called the Big Bang 13.8 billion years ago, which left it in an ultra-hot, ultra-dense state.
  • The universe immediately began expanding and cooling after the Big Bang.
  • One second after the Big Bang, the universe was a hundred trillion miles across with an average temperature of an incredible 18 billion F (10 billion C).
  • Around 400,000 years after the Big Bang, the universe was 10 million light-years across and the temperature had cooled to 5,500 F (3,000 C).
  • Throughout this time, space was filled with a smooth soup of high-energy particles, radiation, hydrogen and helium.
  • There was no structure. As the expanding universe became bigger and colder, the soup thinned out and everything faded to black.

This was the start of what astronomers call the Dark Ages of the universe.

How will JWST study this?

Ans. Looking for the first light

  • The Dark Ages ended when gravity formed the first stars and galaxies that eventually began to emit the first light.
  • Astronomers aim to study this fascinating and important era of the universe, but detecting first light is incredibly challenging.
  • Compared to massive, bright galaxies of today, the first objects were very small and due to the constant expansion of the universe, they’re now tens of billions of light years away from Earth.
  • Also, the earliest stars were surrounded by gas left over from their formation and this gas acted like fog that absorbed most of the light.
  • It took several hundred million years for radiation to blast away the fog. This early light is very faint by the time it gets to Earth.

Try this PYQ:

Consider the following phenomena:

  1. Light is affected by gravity.
  2. The Universe is constantly expanding.
  3. Matter warps its surrounding space-time.

Which of the above is/are the predictions of Albert Einstein’s General Theory of Relativity, often discussed in media?

(a) 1 and 2 only

(b) 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

Post your answers here.

 

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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

[pib] Nutrient Based Subsidy (NBS) for P&K Fertilizers

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NPK fertilizers, Soil Health Card

Mains level: Nutrient Based Subsidy (NBS) Scheme

The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year last quarter of the year 2021-22.

An aspirant from rural agrarian background is quite habitual to hear about NPK 10-26-26, 20-20-0-13 & 12-32-16. They often get to find the plastic gunny bags mentioning this!

Nutrient Based Subsidy (NBS)

  • The NBS Scheme for fertilizer was initiated in the year 2010 and is being implemented by the Department of Fertilizers.
  • Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized P&K fertilizers, except for Urea based on the nutrient content present in them.
  • It is largely for secondary nutrients like N, P, S and K and micronutrients which are very important for crop growth and development.
  • In India, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.

What is NPK?

  • So now that you know what the numbers on fertilizer mean, you need to know why NPK is important to your plants.
  • All plants need nitrogen, phosphorus, and potassium to grow. Without enough of any one of these nutrients, a plant will fail.
  1. Nitrogen (N): It is largely responsible for the growth of leaves on the plant.
  2. Phosphorus (P): It is largely responsible for root growth and flower and fruit development.
  3. Potassium (K): It is a nutrient that helps the overall functions of the plant perform correctly.
  • Knowing the NPK values of fertilizer can help you select one that is appropriate for the type of plant you are growing.

What NBS provides?

  • Fixing MRP of NPK fertilizers: The scheme allows the manufacturers, marketers, and importers to fix the MRP of the Phosphatic and Potash fertilizers at reasonable levels.
  • Maintaining stock level: The MRP will be decided considering the domestic and international prices of P&K fertilizers, inventory level in the country and the exchange rates.
  • Inflation control: The NBS ensures that an adequate quantity of P&K is made available to the farmers at a statutory controlled price.

Issues with NBS

  • Leaves urea: Urea which the most widely used, is left-out in the scheme and hence it remains under price control as NBS has been implemented only in other fertilizers.
  • Cost on exchequer: Fertilizer subsidy is the second-biggest subsidy after food subsidy.
  • Costs on Economy and Environment: The NBS policy is not only damaging the fiscal health of the economy but also proving detrimental to the soil health of the country.
  • Black marketing: Subsidised fertilizers is getting diverted to bulk buyers/traders or even non-agricultural users such as plywood and animal feed makers.

Back2Basics: Soil Health Card (SHC)

  • Soil Health Card (SHC) scheme is promoted by the Department of Agriculture & Co-operation under the Ministry of Agriculture and Farmers’ Welfare.
  • An SHC is meant to give each farmer soil nutrient status of his/her holding and advice him/her on the dosage of fertilizers and also the needed soil amendments, that s/he should apply to maintain soil health in the long run.
  • SHC is a printed report that a farmer will be handed over for each of his holdings.
  • It will be made available once in a cycle of 2 years, which will indicate the status of soil health of a farmer’s holding for that particular period.
  • The SHC given in the next cycle of 2 years will be able to record the changes in the soil health for that subsequent period.

Parameters of SHC:

  • N, P, K (Macro-nutrients)
  • Sulfur (S) (Secondary- nutrient)
  • Zn, Fe, Cu, Mn, Bo (Micronutrients)
  • pH, EC (Electrical conductivity) , OC (Organic content)

Try this PYQ:

The nation-wide ‘Soil Health Card Scheme’ aims at:

  1. expanding the cultivable area under irrigation.
  2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
  3. checking the overuse of fertilizers in farmlands.

Which of the above statements is/are correct?

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

 

Post your answers here.

 

 

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