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  • Oil and Gas Sector – HELP, Open Acreage Policy, etc.

    Green Hydrogen Policy

     

    The Ministry of Power has notified the first part of the National Hydrogen Mission policy on green hydrogen and green ammonia, aimed to boost production of hydrogen and ammonia using renewable energy.

    What is green hydrogen?

    • Green hydrogen is hydrogen gas produced through electrolysis of water.
    • It is an energy intensive process for splitting water into hydrogen and oxygen— using renewable power to achieve this.

    Key takeaways of the Green Hydrogen Policy

    • The new policy offers 25 years of free power transmission for any new renewable energy plants set up to supply power for green hydrogen production before July 2025.
    • This means that a green hydrogen producer will be able to set up a solar power plant in Rajasthan to supply renewable energy to a green hydrogen plant in Assam.
    • It would not be required to pay any inter-state transmission charges.

    What are the incentives?

    • The government is set to provide a single portal for all clearances required for setting up green hydrogen production.
    • It will facilitate producers to transfer any surplus renewable energy generated with discoms for upto 30 days and use it as required.
    • The requirement of time bound clearances for these projects would spur investment while grid connectivity on priority will ease operational processes.
    • The energy plants set up to produce green hydrogen/ammonia would be given connectivity to the grid on a priority basis.
    • State DISCOMS may also procure renewable energy to supply green hydrogen producers but will be required to do so at a concessional rate.
    • Such procurement would also count towards a state’s Renewable Purchase Obligation (RPO) under which it is required to procure a certain proportion of its requirements from renewable energy sources.

    Facilities to boost export

    • Under the policy port authorities will also provide land at applicable charges to green hydrogen and green ammonia producers to set up bunkers near ports for storage prior to export.
    • Germany and Japan could be key markets for green hydrogen produced in India.

    Why such move?

    • The move is likely going to make it more economical for key users of hydrogen and ammonia such as the oil refining, fertiliser and steel sectors to produce green hydrogen for their own use.
    • These sectors currently use grey hydrogen or grey ammonia produced using natural gas or naphtha.

     

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  • Interstate River Water Dispute

    Krishna Water Allocation Dispute

    The Supreme Court has asked if the States of Telangana, Andhra Pradesh, and Karnataka could amicably settle their quarrel over the allocation of the Krishna river water.

    Krishna River Dispute

    • The Krishna is an east-flowing river that originates at Mahabaleshwar in Maharashtra and merges with the Bay of Bengal, flowing through Maharashtra, Karnataka, Telangana, and AP.
    • Together with its tributaries, it forms a vast basin that covers 33% of the total area of the four states.
    • A dispute over the sharing of Krishna waters has been ongoing for many decades, beginning with the erstwhile Hyderabad and Mysore states, and later continuing between successors.

    Krishna Water Disputes Tribunal

    • In 1969, the Krishna Water Disputes Tribunal (KWDT) was set up under the Inter-State River Water Dispute Act, 1956, and presented its report in 1973.
    • The report, which was published in 1976, divided the 2060 TMC (thousand million cubic feet) of Krishna water at 75 percent dependability into three parts.
    • It was 560 TMC for Maharashtra, 700 TMC for Karnataka, and 800 TMC for Andhra Pradesh.
    • At the same time, it was stipulated that the KWDT order may be reviewed or revised by a competent authority or tribunal any time after May 31, 2000.
    • Afterward, as new grievances arose between the states, the second KWDT was instituted in 2004.
    • It delivered its report in 2010, which made allocations of the Krishna water at 65 percent dependability and for surplus flows as follows: 81 TMC for Maharashtra, 177 TMC for Karnataka, and 190 TMC for Andhra Pradesh.

    Row over the share

    • Andhra Pradesh has since asked that Telangana be included as a separate party at the KWDT and that the allocation of Krishna waters be reworked among four states, instead of three.
    • Maharashtra and Karnataka are now resisting this move since Telangana was created following the bifurcation of Andhra Pradesh.
    • Therefore, the allocation of water should be from Andhra Pradesh’s share which was approved by the tribunal.

    Duo’s stance

    • It is relying on Section 89 of The Andhra Pradesh State Reorganization Act, 2014, which reads:
    • The term of the Krishna Water Disputes Tribunal shall be extended with the following terms of reference, namely:
    1. shall make a project-wise specific allocation, if such allocation has not been made by a Tribunal constituted under the Inter-State River Water Disputes Act, 1956;
    2. shall determine an operational protocol for project-wise release of water in the event of deficit flows.
    • For the purposes of this section, it is clarified that the project-specific awards already made by the Tribunal on or before the appointed day shall be binding on the successor States.

     

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  • Water Management – Institutional Reforms, Conservation Efforts, etc.

    Kerala plans to replace Mullaperiyar Dam

    Kerala plans to build a new dam to replace the 126-year-old Mullaperiyar dam in the Idukki district.

    Mullaperiyar Dam

    • It is a masonry gravity dam on the Periyar River in Kerala.
    • It is located on the Cardamom Hills of the Western Ghats in Thekkady, Idukki District.
    • It was constructed between 1887 and 1895 by John Pennycuick and also reached in an agreement to divert water eastwards to the Madras Presidency area.
    • It has a height of 53.6 m (176 ft) from the foundation, and a length of 365.7 m (1,200 ft).

    Operational issue

    • The dam is located in Kerala but is operated and maintained by Tamil Nadu.
    • The catchment area of the Mullaperiyar Dam itself lies entirely in Kerala and thus not an inter-State river.
    • In November 2014, the water level hit 142 feet for first time in 35 years.
    • The reservoir again hit the maximum limit of 142 feet in August 2018, following incessant rains in the state of Kerala.
    • Indeed, the tendency to store water to almost the full level of reservoirs is becoming a norm among water managers across States.

    The dispute: Control and safety of the dam

    • Supreme court judgment came in February 2006, has allowed Tamil Nadu to raise the level of the dam to 152 ft (46 m) after strengthening it.
    • Responding to it, the Mullaperiyar dam was declared an ‘endangered’ scheduled dam by the Kerala Government under the disputed Kerala Irrigation and Water Conservation (Amendment) Act, 2006.
    • For Tamil Nadu, the Mullaperiyar dam and the diverted Periyar waters act as a lifeline for Theni, Madurai, Sivaganga, Dindigul and Ramnad districts.
    • Tamil Nadu has insisted on exercising the unfettered colonial rights to control the dam and its waters, based on the 1886 lease agreement.

    Rule of Curve issue

    • A rule curve or rule level specifies the storage or empty space to be maintained in a reservoir during different times of the year.
    • It decides the fluctuating storage levels in a reservoir.
    • The gate opening schedule of a dam is based on the rule curve. It is part of the “core safety” mechanism in a dam.
    • The TN government often blames Kerala for delaying the finalization of the rule curve.

     

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  • Capital Markets: Challenges and Developments

    What are Participatory and Non-Participatory Funds?

    The amendment to Section 24 of the LIC Act, brought prior to commencing the IPO, segregated the previously single ‘Life Fund’ into the participatory and non-participatory fund.

    What are Participatory and Non-Participatory Funds?

    • Under a participatory policy, a policyholder can get a share of the profits of the company.
    • This is received as a bonus. Examples of such products offered by LIC include  Jeevan Labh and  Bachat Plus.
    • No such sharing of profits happens under non-participatory products, which under the LIC fold includes policies such as  Saral Pensionand  Nivesh Plus.
    • As all insurance companies do, LIC also reinvests premium monies that policyholders pay.
    • The profits or surplus that comes about, as a result, was till September last year held in one single fund. This was the Life Fund.
    • The surplus was divided in the 95:5 ratio between policyholders (in the form of bonuses) and shareholders (in the form of dividends).

    What has the Amendment changed?

    • But the amendment to Section 24 of the LIC Act has necessitated the segregation of the Life Fund into participatory and non-participatory funds, depending on the nature of the policies they support.
    • The amendment stipulates terms on how surplus is to be shared with respect to participatory and non-participatory funds.
    • As for non-participating funds, surplus from the non-participating business would be transferred to shareholders.
    • Surplus from participatory business, however, would be shared between policyholders and shareholders.

    How does this change impact the shareholder?

    • The change, especially the one that has enabled 100% of the surplus in non-participatory funds to flow to the shareholder, has led to a massive jump in the Indian Embedded Value, or IEV.
    • IEV is a measure of future cash flows in life insurance companies and the key financial gauge for insurers.
    • The embedded value will help establish the market valuation of LIC and determine how much money the government raises in the flotation.
    • That will be crucial for the government to help meet its divestment targets and keep its fiscal deficit in check.

    Why is it a risk, then?

    • LIC has stated in the document that a significant portion of its business premiums come from participating and single premium products.
    • It added, should the participating products generate lower than expected returns for policyholders, it could lead to increased surrenders.
    • This could also potentially bother their financial condition, operations, and cash flows.

     

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  • Land Reforms

    What is the REWARD Project?

    The GoI, the State Governments of Karnataka and Odisha, and the World Bank have signed a $115 million for the REWARD Project.

    What is REWARD Program?

    • REWARD stands for Rejuvenating Watersheds for Agricultural Resilience through Innovative Development.
    • The project aims to help national and state institutions adopt improved watershed management practices to help increase farmers’ resilience to climate change, promote higher productivity and better incomes.
    • REWARD is being implemented in three to four Indian States.
    • It is proposed as a 6 years Project.

    Objectives of the project

    • The outcomes are prevention of soil run-off, regeneration of natural vegetation, rainwater harvesting, and recharging of the groundwater table.
    • This enables multi-cropping and the introduction of diverse agro-based activities, which help to provide sustainable livelihoods to the people residing in the watershed area.

     

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  • Foreign Policy Watch: India-Middle East

    India-UAE free trade agreement

    Context

    India has embarked on a new journey — a new free trade agreement (FTA) journey to be precise — with renewed zeal and vigor.

    India’s revamped FTA strategy

    • Gaining meaningful market access: India’s approach towards FTAs is now focusing more on gaining meaningful market access and facilitating the Indian industry’s integration into global value chains.
    • Under the revamped FTA strategy, the Government of India has prioritized at least six countries or regions to deal with, in which the United Arab Emirates (UAE) figures at the top of the list for an early harvest deal.
    • The others are the United Kingdom, the European Union, Australia, Canada, Israel, and a group of countries in the Gulf Cooperation Council (GCC).
    • The early harvest deal is to be enlarged into a comprehensive FTA in due course of time.

    Why does the FTA with UAE matter?

    • Important economic hub: The UAE has emerged as an important economic hub not just within the context of the Middle East/West Asia, but also globally.
    • Strategic location: The UAE, due to its strategic location, has emerged as an important economic centre in the world.
    • Although the UAE has diversified its economy, ‘the hydrocarbon sector remains very important followed by services and manufacturing.
    • Within services, financial services, wholesale and retail trade, and real estate and business services are the main contributors.
    • As part of the GCC, the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain, and Oman, meaning the UAE shares a common market and a customs union with these nations.
    • Under the Greater Arab Free Trade Area (GAFTA) Agreement, the UAE has free trade access to Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, Jordan, Egypt, Iraq, Lebanon, Morocco, Tunisia, Palestine, Syria, Libya, and Yemen.

    India-UAE trade and investment ties

    • India and the UAE established diplomatic relations in 1972.
    • The India-UAE total trade merchandise has been valued at U.S.$52.76 billion for the first nine months of the fiscal year 2021-22, making the UAE India’s third-largest trading partner.
    • As India and the UAE strive to further deepen trade and investment ties, the soon-to-be-announced early harvest agreement comes at the most opportune time.
    • The aim is to boost bilateral merchandise trade to above U.S.$100 billion and services trade to U.S.$15 billion in five years.
    • Attractive export market: As we are witnessing a big turnaround in manufacturing, the UAE would be an attractive export market for Indian electronics, automobiles, and other engineering products.
    • Ninth biggest investor: The UAE’s investment in India is estimated to be around U.S.$11.67 billion, which makes it the ninth biggest investor in India.
    • On the other hand, many Indian companies have set up manufacturing units either as joint ventures or in Special Economic Zones for cement, building materials, textiles, engineering products, consumer electronics, etc.

    Challenges

    • The UAE tariff structure is bound with the GCC, and the applied average tariff rate is 5%. Therefore, the scope of addressing Non-Tariff Barriers (NTBs) becomes very important.
    • The reflection of NTBs can be seen through Non-Tariff Measures (NTMs) which have mostly been covered by Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT). The UAE has 451 SPS notifications.
    • Most of the notifications are related to consumer information, labelling, licensing or permit requirements and import monitoring and surveillance requirements.
    • These compliances pose a challenge for Indian exporters.

    Conclusion

    This FTA with the UAE will pave the way for India to enter the UAE’s strategic location, and have relatively easy access to the Africa market and its various trade partners which can help India to become a part of that supply chain, especially in handlooms, handicrafts, textiles and pharma.

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  • Human Rights Issues

    United Nations Refugee Convention, 1951

    Model laws on asylum and refugees that were drafted by the National Human Rights Commission (NHRC) decades ago but not implemented by the government could be revised by an expert committee.

    Why in news?

    • India is not having a specific law for refugees and asylum-seekers.
    • Though India has not signed the United Nations Refugee Convention, 1951, the refugees and asylum seekers were entitled to the rights in Articles 14, 20 and 21 of the Constitution.

    UN Refugee Convention, 1951

    • The 1951 Convention Relating to the Status of Refugees was the first comprehensive attempt to define refugees and charted a detailed guideline for host countries to ensure the adequate protection and preservation of the rights of all refugees.
    • It puts out clearly who a refugee is and what kind of assistance, rights and legal protection a refugee is entitled to receive.
    • It also lays down the obligations of refugees towards the host countries.
    • The Convention also specifies certain categories of people, such as war criminals, who do not qualify for refugee status.

    Definition of Refugee:

    The 1951 convention defines a refugee as:

    1. A person who is outside his or her country of nationality or habitual residence
    2. Has a well-founded fear of being persecuted because of his or her race, religion, nationality, membership of a particular social group or political opinion
    3. Unable or unwilling to avail him— or herself of the protection of that country, or
    4. Unable to return there, for fear of persecution

    Various Rights conferred to Refugees

    • The right not to be expelled, except under certain, strictly defined conditions.
    • The right not to be punished for illegal entry into the territory of a contracting State.
    • The rights to work, housing, education, public relief and assistance, freedom of religion, access courts, and freedom of movement within the territory.
    • The right to be issued identity and travel documents.
    • The right to be protected from refoulement apply to all refugees.

    Why hasn’t India signed this convention?

    • Dispute over definition: Another reason why India has not signed the Convention is the narrow definition of refugee under it. For instance, it does not include deprivation of economic rights as an eligibility criterion.
    • National security: It is believed that the chief reason is related to security issues.
    • Porous and open borders: South Asian borders are porous and any conflict can cause a huge displacement of people.
    • Cultural strain: Finally, sometimes refugees also pose a threat to law and order due to cultural differences. Ex. North East states.
    • Strain on economy: An influx of people during such times can put a lot of strain on the resources of the local economy and also, it can cause an imbalance in the delicate demography of the region.
    • Many inhabited refugees: India has already houses many refugees and in many cases, without the support of the UN.
    • Loss of sovereignty: Signing the convention would have meant allowing international scrutiny of ‘India’s internal security, political stability and international relations’.
    • Ad-hocism of the convention: The convention lacks a strong implementation policy which has given rise to ad-hocism and warehousing of refugees.

    Way forward

    • The inability of international refugee law to reconcile itself with the practical realities that constrain states has culminated in its failure to provide asylum to persecuted persons.
    • In these circumstances, India needs a specific legislation governing refugees and asylum seekers.
    • Such a law would give legal sanctity and uniformity, ensuring the protection of human rights.
    • Along with this, each state must take responsibility for hosting refugees during their darkest hours by devising a burden-sharing system.

     

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  • Waste Management – SWM Rules, EWM Rules, etc

    [pib] Extended Producers Responsibility on Plastic Packaging

    The Union Ministry of Environment, Forest, and Climate Change has notified the Guidelines on Extended Producers Responsibility on plastic packaging under Plastic Waste Management Rules, 2016.

    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 cover three categories of plastic packaging including:
    1. Rigid plastic
    2. Flexible plastic packaging of a single layer or multilayer (more than one layer with different types of plastic), plastic sheets and covers made of plastic sheet, carry bags (including carrying bags made of compostable plastics), plastic sachet or pouches
    3. Multi-layered plastic packaging 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 disposals 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 of 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 fulfill 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 the 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 recycling 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: 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.

     

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    India, UAE to sign Comprehensive Economic Partnership Agreement (CEPA)

    India and the United Arab Emirates will sign the first-ever bilateral Free Trade Agreement between the two countries.

    What is CEPA?

    • The partnership agreement or cooperation agreement is more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses an agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment and other areas of economic partnership.
    • It may even consider negotiation in areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    What is a Free Trade Agreement (FTA)?

    • An FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favorably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

     

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    A miracle cure against HIV

    There is considerable excitement in the world of medicine after scientists reported that a woman living with HIV (Human Immunodeficiency Virus) and administered an experimental treatment is likely ‘cured’.

    What is HIV/AIDS?

    • HIV (human immunodeficiency virus) is a virus that attacks cells that help the body fight infection, making a person more vulnerable to other infections and diseases.
    • First identified in 1981, HIV is the cause of one of humanity’s deadliest and most persistent epidemics.
    • It is spread by contact with certain bodily fluids of a person with HIV, most commonly during unprotected sex, or through sharing injection drug equipment.
    • If left untreated, HIV can lead to the disease AIDS (acquired immunodeficiency syndrome).
    • The human body can’t get rid of HIV and no effective HIV cure exists.

    Treating HIV

    • However, by taking HIV medicine (called antiretroviral therapy or ART), people with HIV can live long and healthy lives and prevent transmitting HIV to their sexual partners.
    • In addition, there are effective methods to prevent getting HIV through sex or drug use, including pre-exposure prophylaxis (PrEP) and post-exposure prophylaxis (PEP).

    What is the new breakthrough?

    • US researchers have described the case of a 60-year-old African American woman who was diagnosed with an HIV infection in 2013.
    • She was started on the standard HIV treatment regimen of anti-retroviral treatment (ART) therapy consisting of tenofovir, emtricitabine, and raltegravir.
    • She was given cord blood, or embryonic stem cells, from a donor with a rare mutation that naturally blocks the HIV virus from infecting cells.
    • She was also given blood stem cells, or adult stem cells, from a relative.

    What actually worked?

    • The adult stem cells boosted the patient’s immunity and possibly helped the cord blood cells fully integrate with the lady’s immune system.
    • Now she has no sign of HIV in her blood and also has no detectable antibodies to the virus.
    • Embryonic stem cells are potentially able to grow into any kind of cell and hence their appeal as therapy, though there is no explanation for why this mode of treatment appeared to be more effective.

    Is this treatment the long-sought cure for AIDS?

    • Not at all. While this approach is certainly a welcome addition to the arsenal of treatments, stem cell therapy is a cumbersome exercise and barely accessible to most HIV patients in the world.
    • Moreover, this requires stem cells from that rare group of individuals with the beneficial mutation.
    • Anti-retroviral therapy, through the years, has now ensured that HIV/AIDS isn’t always a death sentence and many with access to proper treatment have lifespans comparable to those without HIV.
    • A vaccine for HIV or a drug that eliminates the virus is still elusive and would be the long-sought ‘cure’ for HIV/AIDS.

    What is the prevalence of HIV/AIDS in India?

    • As per the India HIV Estimation 2019 report, the estimated adult (15 to 49 years) HIV prevalence trend has been declining in India since the epidemic’s peak in the year 2000 and has been stabilizing in recent years.
    • In 2019, HIV prevalence among adult males (15–49 years) was estimated at 0.24% and among adult females at 0.20% of the population.
    • There were 23.48 lakh Indians living with HIV in 2019.
    • Maharashtra had the maximum at 3.96 lakh followed by Andhra Pradesh (3.14 lakh) and Karnataka.
    • ART is freely available to all those who require and there are deputed centers across the country where they can be availed from.

     

     

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