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Foreign Policy Watch: India-Nepal

What West Seti Power Project can mean for India-Nepal ties?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: West Seti Hydel Project

Mains level: India -Nepal Power Relations

India will be taking over an ambitious hydropower project in Nepal — West Seti — nearly four years after China withdrew from it, ending a six-year engagement between 2012 and 2018.

What is West Seti Hydel Project?

  • The West Seti Dam is a proposed 750-megawatt (MW) hydroelectric dam on the Seti River in the Far-Western Development Region of Nepal.
  • Particularly, it is a storage scheme designed to generate and export large quantities of electrical energy to India.
  • The project is envisaged to provide Nepal 31.9% electricity free.
  • Besides, locals affected by the project are being given a share of Nepali Rs 10 million plus 30 units of electricity per month free.

Why in news now?

  • The project was earlier accorded to a Chinese company.
  • But Nepal feared that India won’t buy power from China-executed projects.

Significance: India -Nepal Power Relations

  • Nepal is rich in power sources with around 6,000 rivers and an estimated potential for 83,000 MW.
  • India has formally approached Nepal on many occasions, seeking preferential rights over Nepali waters should it match offers coming from elsewhere.
  • India is viewed as a feasible power market for Nepal.
  • India has undertaken to harness or expressed intent to harness major rivers in the north.

Issues in project execution

  • There has been some uncertainty in Nepal over India’s inability to deliver projects on time.
  • An ambitious Mahakali treaty was signed back in 1996, to produce 6,480 MW, but India has still not been able to come out with the Detailed project Report.
  • The Upper Karnali project, for which the multinational GMR signed the contract, has made no headway for years.
  • Major reasons for stalling of these projects was a lack of consensus over power purchase agreement with India.
  • Also, seismic sensitivity of the Himalayan Region is the prime consideration.

What has helped build faith recently?

  • India under PM Modi has been successful in executing the 900-MW Arun Three Project in eastern Nepal’s Sankhuwa Sabha.
  • After a standoff between Nepal and India led to the economic blockade of 2015, equations changed after Deuba took over last July, replacing Oli.

Benefits for Nepal

  • Nepal has a massive power shortfall as it generates only around 900 MW against an installed capacity of nearly 2,000 MW.
  • Although it is currently selling 364 MW power to India, it has over the years importing from India.

Hurdles from Nepal’s internal crisis

  • Nepal’s Constitution has a provision under which any treaty or agreement with another country on natural resources will require Parliament’s ratification by at least a two-thirds majority.
  • That will also mean homework will be required before any hydro project is signed and given for execution.

Way forward

  • Until India agrees to value Nepal’s water and the existing focus on power is not reviewed, mutual distrust may continue.
  • India must start executing its projects timely.
  • And its success is expected to restore India’s image in Nepal and give it weightage in future considerations for hydropower projects, when competition is bound to be tough.
  • West Seti, therefore, has the potential to be a defining model for Nepal India’s power relations in future.

 

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WTO and India

Outcomes of the WTO Ministerial Conference

Note4Students

From UPSC perspective, the following things are important :

Prelims level: WTO

Mains level: Read the attached story

Recently, member countries of the World Trade Organization (WTO) wrapped up the Ministerial Conference’s twelfth outing (MC12).

Key outcomes: “Geneva Package”

  • The conference has secured key agreements on
  1. Relaxing patent regulations to achieve global vaccine equity
  2. Ensuring food security
  3. According subsidies to the fisheries sector
  4. Continuing moratoriums relevant to e-commerce
  • Together they constitute what WTO Director-General is referred to as the “Geneva Package.”
  • India saw some successes at the MC12 with respect to the above mentioned sectors.

What is the WTO’s Ministerial Conference?

  • The MC is at the very top of WTO’s organisational chart.
  • It meets once every two years and can take decisions on all matters under any multilateral trade agreement.
  • Unlike other organisations, such as the International Monetary Fund or World Bank, WTO does not delegate power to a board of directors or an organisational chief.
  • All decisions at the WTO are made collectively and through consensus among member countries at varied councils and committees.
  • This year’s conference took place in Geneva, Switzerland.

Major debates at the MC12

(1) Agriculture

  • India is a significant contributor to the World Food Programme (WFP).
  • India had earlier stated that it had never imposed export restrictions for procurement under the programme.
  • It put forth that a blanket exemption could constrain its work in ensuring food security back home.
  • In such a situation, it would have to keep its WFP commitments irrespective of its domestic needs.
  • Negotiators could not reach agreements on issues such as permissible public stockholding threshold for domestic food security, domestic support to agriculture, cotton, and market access.

(2) Fisheries

  • India successfully managed to carve out an agreement on ELIMINATING subsidies to those engaged in illegal, unreported and unregulated fishing.
  • The only exception for continuing subsidies for overfished stock is when they are deemed essential to rebuild them to a biologically sustainable level.
  • Overfishing refers to exploiting fishes at a pace faster than they could replenish themselves — currently standing at 34% as per the UN Food and Agriculture Organization (FAO).
  • Declining fish stocks threaten to worsen poverty and endanger communities that rely on aquatic creatures for their livelihood and food security.
  • Further, the agreements hold that there would be no limitation on subsidies by developing or least-developed countries for fishing within their exclusive economic zones (EEZ).

(3) Patent relaxations

  • Member countries agreed on authorising the use of a patent for producing COVID-19 vaccines by a member country, without the consent of the rights holder.
  • Further, it asks member countries to waive requirements, including export restrictions, set forth by WTO regulations to supply domestic markets and member countries with any number of vaccines.
  • The agreement, however, comes too little, too late for economically poorer countries.

 

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Cyber Security – CERTs, Policy, etc

Explained: Critical Information Infrastructure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Critical Information Infrastructure (CIC)

Mains level: Read the attached story

The Union Ministry of Electronics and IT (MeitY) has declared IT resources of ICICI Bank, HDFC Bank and UPI managing entity NPCI as ‘critical information infrastructure’.

Try this PYQ:

In India, the term “Public Key Infrastructure” is used in the context of

(a) Digital security infrastructure

(b) Food security infrastructure

(c) Health care and education infrastructure

(d) Telecommunication and transportation infrastructure

 

Post your answers here.

What is Critical Information Infrastructure (CIC)?

  • The Information Technology Act, 2000 explicitly gives definition of CIC.
  • It defines CIC as a computer resource, the incapacitation or destruction of which shall have debilitating impact on national security, economy, public health or safety.
  • It basically aims to protect the digital assets.
  • The government, under the Act, has the power to declare any data, database, IT network or communications infrastructure as CII.
  • Any person who secures access or attempts to secure access to a protected system in violation of the law can be punished with a jail term of up to 10 years.

Why is CII classification and protection necessary?

  • IT resources form the backbone of countless critical operations in a country’s infrastructure.
  • Given their interconnectedness, disruptions can have a cascading effect across sectors.

What led to the classification of CICs?

  • In 2007, a wave of denial-of-service attacks, allegedly from Russian IP addresses, hit major Estonian banks, government bodies – ministries and parliament, and media outlets.
  • It was cyber aggression of the kind that the world had not seen before.
  • The attacks played havoc in one of the most networked countries in the world for almost three weeks.

Recent incidents of CIC incapacitation

  • In October, 2020 as India battled the pandemic, the electric grid supply to Mumbai suddenly stopped.
  • It hit the mega city’s hospitals, trains and businesses.
  • Later, a study by a US firm claimed that this power outage could have been a cyber-attack, allegedly from a China-linked group.
  • The government, however, was quick to deny any cyber-attack in Mumbai. But prospects cannot be denied.
  • The incident underlined the possibility of hostile state and non-state actors probing internet-dependent critical systems in other countries, and the necessity to fortify such assets.

How are CIIs protected in India?

  • Created in January 2014, the National Critical Information Infrastructure Protection Centre (NCIIPC) is the nodal agency.
  • It takes all measures to protect the nation’s critical information infrastructure.
  • It is mandated to guard CIIs from “unauthorized access, modification, use, disclosure, disruption, incapacitation or distraction”.
  • NCIIPC monitors and forecasts national-level threats to CII for policy guidance, expertise sharing and situational awareness for early warning or alerts.

 

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Foreign Policy Watch: India-United States

What is the I2U2 Initiative?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Abraham Accord, I2U2

Mains level: Read the attached story

The US administration has named the new grouping as “I2U2” — “I” for India and Israel and “U” for the US and UAE. This was earlier referred as West Asian Quad.

What is the news?

  • US President Joe Biden will host a virtual summit with PM Modi, Israel PM Naftali Bennett and UAE President Mohammed bin Zayed Al Nahyan during his visit to West Asia from July 13 to 16.

I2U2 Initiative

  • Following the Abraham Accords between Israel and the UAE, I2U2 was founded in October 2021 to address marine security, infrastructure, and transportation challenges in the region.
  • It was known as the ‘International Forum for Economic Cooperation’at the time.
  • At that time, UAE had referred to the new grouping as the ‘West Asian Quad’.

What makes this deal outstanding?

  • UAE forming sharing desk with Israel is no easy deal. Arab sentiments against Israel and their proposition for Anti-Semitism are well known.

Significance of the initiative

  • I2U2 seeks to empower the partners and encourages them to collaborate more closely, resulting in a more stable region.
  • India is seen as a large consumer market as well as a large producer of high-tech and highly sought-after items in the United States.
  • This has led India to enhance its relationship with Israel without jeopardising its ties with the UAE and other Arab states.

Back2Basics: Abraham Accords

  • The Israel–UAE normalization agreement is officially called the Abraham Accords Peace Agreement.
  • It was initially agreed to in a joint statement by the United States, Israel and the United Arab Emirates (UAE) on August 13, 2020.
  • The UAE thus became the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formally normalize its relationship with Israel as well as the first Persian Gulf country to do so.
  • Concurrently, Israel agreed to suspend plans for annexing parts of the West Bank. The agreement normalized what had long been informal but robust foreign relations between the two countries.

 

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

How Marine Heatwave fuelled super cyclone Amphan

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Marine Heatwaves

Mains level: Climate Change

The super-cyclone Amphan is said to have been triggered by Marine Heatwaves.

What is the news?

  • A study has found the presence of a strong MHW beneath the track of the cyclone with an extremely high anomalous sea surface temperature of more than 2.5°C.
  • This coincided with the cyclone track and facilitated its rapid intensification in a short period.

What are Marine Heatwaves?

  • We know that heatwaves occur in the atmosphere. We are all familiar with these extended periods of excessively hot weather.
  • However, heatwaves can also occur in the ocean and these are known as marine heatwaves, or MHWs.
  • These marine heatwaves, when ocean temperatures are extremely warm for an extended period of time can have significant impacts on marine ecosystems and industries.

When do they occur?

  • Heatwaves can happen in summer and also in winter, where they are known as “winter warm-spells”.
  • These winter events can have important impacts, such as in the southeast of Australia where the spiny sea urchin can only colonize further south when winter temperatures are above 12 °C.

What causes marine heatwaves?

  • Marine heatwaves can be caused by a whole range of factors, and not all factors are important for each event.
  • The most common drivers of marine heatwaves include ocean currents which can build up areas of warm water and air-sea heat flux, or warming through the ocean surface from the atmosphere.
  • Winds can enhance or suppress the warming in a marine heatwave, and climate modes like El Niño can change the likelihood of events occurring in certain regions.
  • MHWs can be caused due to large-scale drivers of the Earth’s climate like the El Niño Southern Oscillation (ENSO).

Impacts of the MHWs

  • Marine heatwaves affect ecosystem structure, by supporting certain species and suppressing others.
  • For example, after the 2011 marine heatwave in Western Australia, the fish communities had a much more “tropical” nature than previously and switched from kelp forests to seaweed turfs.
  • Marine heatwaves can cause economic losses through impacts on fisheries and aquaculture.
  • Temperature-sensitive species such as corals are especially vulnerable to MHWs. In 2016, marine heatwaves across northern Australia led to severe bleaching of the Great Barrier Reef.

How do we measure marine heatwaves?

  • A marine heatwave occurs when seawater temperatures exceed a seasonally-varying threshold (usually the 90th percentile) for at least 5 consecutive days.
  • Successive heatwaves with gaps of 2 days or less are considered part of the same event.

Why study MHWs?

  • MHWs are increasing in frequency due to climate change. MHWs increased by 54 per cent in the last 30 years.
  • MHW has severe socio-economic consequences such as fish mortality, and coral bleaching, and also has the potential to interact and modify other extreme events such as tropical cyclones.

Way Forward

  • Marine heatwaves clearly have the potential to devastate marine ecosystems and cause economic losses in fisheries, aquaculture, and ecotourism industries.
  • However, their effects are often hidden from view under the waves until it is too late.
  • By raising general awareness of these phenomena, and by improving our scientific understanding of their physical properties and ecological impacts, we can better predict future conditions and protect vulnerable marine habitats and resources.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

What are Private Captive Networks?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Private Captive Networks

Mains level: 5G Rollout

The Cellular Operators’ Association of India (COAI) wrote a letter urging the government against allotting 5G spectrum to private captive networks, claiming that it will diminish their revenue to the point where offering 5G will pointless.

What is a Private Captive 5G Network?

  • A private captive 5G network is basically a network set up by a private entity for the use of just one organisation.
  • It is similar to a captive coal mine in that the 5G service offered by this captive network will only be utilised by the enterprise concerned, and no one else.

Why are telecom providers against it?

  • The COAI’s argument is that enterprises are the biggest users of 5G networks.
  • If private entities are allowed to offer captive networks to enterprises, the TSPs (telecom service providers) retail revenues will fall.
  • COAI implied that there is no great demand for 5G right now as “the needs of voice and data of the entire nation is being adequately met by the TSPs through their 4G networks today”.

 

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Oil palm

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Self reliance in edible oil through oil palm

Context

Supply disruptions during the pandemic and the Russia-Ukraine war have led many nations to think about “self-sufficiency” in critical food items or at least reduce their “excessive dependence” on imports of essential food products.

Challenges facing global trade

  • The World Trade Organisation’s (WTO) recently concluded12th Ministerial Conference in Geneva, struggled to find answers to some of the complex questions pertaining to global trade.
  • The Ministerial Conference is the top decision-making body of the agency whose basic goal is to ensure that trade flows as smoothly, predictably and freely.
  • Trading rules for dire situations: As far as agriculture, trade and food security are concerned, the challenge is to figure out the most appropriate trading rules in dire situations like pandemics, wars, social/political disruptions or natural disasters.
  • Export bans: Recent examples include Russia’s export ban on wheat and sunflower oil, Ukraine’s ban on exports of food staples, Indonesia’s ban on palm oil exports, Argentina’s ban on beef exports, Turkey, Kyrgyzstan and Kazakhstan’s ban on a variety of grain products, and India’s wheat export ban.
  • Sudden actions such as these exacerbate the pressure on global trade leading to a spike in the prices.

India’s import dependence for edible oil

  • India imports 55 to 60 per cent of its edible oil requirements.
  • India’s edible oil import bill in 2021-22 (FY22) crossed $19 billion (for more than 14 MMT of imports) (see figure).
  • Palm oil comprises more than 50 per cent of India’s edible oil imports, followed by soybean and sunflower.
  • Atmanirbharta in edible oil: The “excessive dependence” on imports has raised the pitch for “atmanirbharta” in edible oil. 
  • The Prime Minister launched the National Edible Oil Mission-Oil Palm (NEOM-OP) in 2021.

Self-reliance Vs Self-sufficiency

  • “Self-sufficiency” and “self-reliance” are two different concepts with very different policy implications.
  • What is self-sufficiency? Self-sufficiency would imply replacing all imports of a commodity (say edible oils in India’s case) at any cost (thus raising import duties exorbitantly).
  • What is self-reliance? Self-reliance would continue to embed the principle of “comparative advantage” in the endeavour to reduce dependence on imports.
  • Case of India’s agriculture: The country’s agri-exports in FY22 touched $ 50.3 billion against its agri-imports of $ 32.4 billion.
  • This means that Indian agriculture is largely globally competitive. 
  • But its biggest agri-import item, edible oil, accounts for 59 per cent of India’s agri-import basket.

Way forward

  • 1] Develop oil palm: Given the way international prices of edible oils have surged in the last year or so (by more than 70 per cent), it may be time for India to ramp up its efforts in developing oil palm.
  • Why oil palm? The Prime Minister launched the National Edible Oil Mission-Oil Palm (NEOM-OP) in 2021.
  • Challenges in traditional oilseed: Achieving atmanirbharta in edible oils through traditional oilseeds such as mustard, groundnuts and soya would require an additional area of about 39 million hectares under oilseeds.
  • Danger to food security: Such a large tract of land will not be available without cutting down the area under key staples (cereals) – this could endanger the country’s food security even more.
  • So, a rational policy option to reduce import dependence in edible oils is to develop oil palm at home and ensure that it gives productivity comparable to that in Indonesia and Malaysia — about four tonnes of oil per hectare, which is more than 10 times mustard can give at existing yields.
  • India has identified 2.8 million hectares of area where oil palm can be grown suitably.
  • So far the objective of NEOM-OP is to bring in at least 1 million hectare under oil palm by 2025-26.
  • 2] Declare oil palm as a plantation crop: The other option is to declare oil palm as a plantation crop and allow the corporate players to own/lease land on a long-term basis to develop their own plantations and processing units.
  • This does not seem plausible in the current socio-political context.

Challenges

  • Long gestation period: It takes four to six years to come to maturity; during this period, smallholders need to be fully supported.
  • The support (subsidy) could be the opportunity cost of their lands, say profits from paddy cultivation, which is largely the crop oil palm will replace in coastal and upland areas of Andhra, Telangana and Northeast India.
  • Pricing formula: Further, the pricing formula of fresh fruit bunches (FFB) for farmers has to be dovetailed with a likely long-run average landed price of crude palm oil with due flexibility in the import duty structure.
  • Appropriate import duty: One needs to identify trigger points when import duties need to be raised as global prices come down, and when to reduce these duties in case of rising global prices.
  • Oil recovery: Besides this, the processing industry needs to ensure an oil recovery of at least 18 to 20 per cent – that must be built into the pricing formula.

Conclusion

Overall, unless India thinks holistically and adopts a long-term vision, the chances of reducing India’s imports of edible oils from 14MMT in FY22 to 7MMT by FY27 look bleak.

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