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  • Minimum Support Prices for Agricultural Produce

    An MSP scheme to transform Indian agriculture

    Context

    The MSP must look especially into the requirements of farmers and the landless.

    Background of price stabilisation for food grain

    • The Essential Commodities Act in 1955 sought to counter price rise due to speculative private trading and then MSP in the 1960s.
    • A buffer stock policy was developed over time to involve different kinds of mechanisms such as:
      a) setting cost-based minimum procurement price, paying the difference between procurement price and market price.
      b) storing the procured surplus for sale through the Public Distribution System (PDS) at issue price, and market intervention to stabilise price when deemed necessary.
    • This task required interlinking procurement, storage and distribution with more centralised investment and control of each of these tasks.

    3 Purposes MSP could serve

    MSP could serve, in principle, three purposes:

    • Price stabilisation in the food grains market.
    • Income support to farmers, and
    • As a mechanism for coping with the indebtedness of farmers.

    Advantages of wide coverage

    • Fulfilling three objectives: In this way, the objectives of income support to farmers, price stabilization, food security, and inducing more climate-friendly cropping patterns can be combined to an extent.
    • Solution to debt problem: A real breakthrough in the recurring problem of agricultural debt can be made by the linking of selling of grains under MSP to the provision of bank credit particularly for small farmers.
    • The farmer can get a certificate selling grains at MSP which would be credit points proportional to the amount sold; this will entitle them to a bank loan as their right, and calibrate the fluctuations between good and bad harvest years by storing the certificates for later use.

    Issues with MSP in current form

    • Low accessibility and awareness of the MSP regime: A survey highlighted that 81% of the cultivators were aware of MSP fixed by the Government for different crops and out of them only 10% knew about MSP before the sowing season.
    • Arrears in payments: More than 50% of the farmers receive their payments of MSP after one week.
    • Poor marketing arrangements: Almost 67% of the farmers sell their produce at MSP rate through their own arrangement and 21% through brokers.
    • Partial coverage resulting in skewed cropping pattern: This partial MSP coverage skewed the cropping pattern against several coarse grains and millets particularly in rain-fed areas.

    Way forward

    • Flexible arrangement of MSP: Each crop within a band of maximum and a minimum price depending on harvest conditions i.e. higher price in a bad and lower price in a good harvest year in general will have its price set in the band.
    • High MSP for coarse grains: The price of some selected coarse grains can be fixed at the upper end of its band to encourage their production in rain-fed areas.

    Conclusion

    Greater coverage of all 23 crops under MSP is a way of improving both food security and income support to the poorest farmers in rain-fed regions.

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  • Governor and Related issues

    Last week, West Bengal CM blocked its Governor on Twitter. Days earlier, the Tamil Nadu government had taken exception to Governor’s R-Day speech articulating the benefits of NEET.

    These are two of many examples of bitterness between states and Governors.

    Who is a Governor?

    • Parallel to President: The Governors of the states of India have similar powers and functions at the state level as those of the President of India at the Central level.
    • Nominal head: The governor acts as the nominal head whereas the real power lies with the Chief Ministers of the states and her/his councils of ministers.
    • Similar offices: Governors exist in the states while Lieutenant Governors or Administrators exist in union territories including National Capital Territory of Delhi.
    • Non-local appointees: Few or no governors are local to the state that they are appointed to govern.

    Governor-State Relations

    • Acting on aid and advice: Although envisaged as an apolitical head who must act on the advice of the council of ministers, the Governor enjoys certain powers granted under the Constitution.
    • Discretion: He has monopoly for giving or withholding assent to a Bill passed by the state legislature, or determining the time needed for a party to prove its majority, or which party must be called first do so, generally after a hung verdict in an election.
    • Apparatus of interaction: There are no provisions laid down for the manner in which the Governor and the state must engage publicly when there is a difference of opinion. The management of differences has traditionally been guided by respect for each other’s boundaries.

    Various friction points

    In recent years, these have been largely about:

    1. Selection of the party to form a government
    2. Deadline for proving majority
    3. Sitting on Bills
    4. Passing negative remarks on the state administration

    Recent contentious case

    • J&K: In November 2018, then J&K Governor dissolved the Assembly amid indications that various parties were coming together to form the government.
    • Maharashtra: In 2019, after a hung verdict in Maharashtra Governor quietly invited a party leader and administered him oath as CM at 6am early morning. This government lasted just 80 hours.
    • Nagaland: Governor has criticised affairs of the state and allegedly interfered in administration.

    Is such friction recent?

    • Allegations of the Centre using the Governor’s position to destabilise state governments have been made since the 1950s.
    • In 1959, Kerala’s government was dismissed merely based on a report by the Governor.
    • Several state governments have been dismissed since then, including 63 through President’s Rule orders issued by Governors between 1971 and 1990.

    Why does this happen?

    • Political appointment: This is because Governors have become political appointees. Politicians become Governors and then resign to fight elections.
    • Nature of appointment: In the Constitution, there are no guidelines for exercise of the Governor’s powers, including for appointing a CM or dissolving the Assembly.
    • Defying constituent assembly: The Constituent Assembly envisaged governor to be apolitical.
    • Nature of appointment: The CM is answerable to the people. But the Governor is answerable to no one except the Centre.
    • Constitutional vacuum: Once can sugercoat it with ideas of constitutional morality and values, but the truth is there is a fundamental defect in the Constitution.
    • Security of Tenure: There is no provision for impeaching the Governor, who is appointed by the President on the Centre’s advice. While the Governor has 5-year a tenure, he can remain in office only until the pleasure of the President.
    • Powers in legislation: There is no limit set for how long a Governor can withhold assent to a Bill.

    What reforms have been suggested?

    • From the Administrative Reforms Commission of 1968 to Sarkaria Commission of 1988 and the one mentioned above, several panels have recommended reforms, such as:
    1. Selection of the Governor through a panel comprising the PM, Home Minister, Lok Sabha Speaker and the CM,
    2. Fixing his tenure for five years
    3. Provision to impeach the Governor by the Assembly
    • No government has implemented any of these recommendations.

     

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    What is a Ratings Agency and why do they matter?

    Finance Secretary has accused rating agencies of “double standards” when assessing emerging markets and developing economies.

    What is the news?

    • Fitch, a rating agency, has termed India as the most indebted emerging market.
    • It claimed that the latest budget did not provide clarity on fiscal consolidation plans.

    What is a Rating Agency?

    • Rating agencies assess the creditworthiness or potential of an equity, debt or country.
    • Their reports are read by investors to make an informed decision on whether or not to invest in a particular country or companies in that geography.
    • They assess if a country, equity or debt is financially stable and whether it at a low/high default risk.
    • In simpler terms, these reports help investors gauge if they would get a return on their investment.

    What do they do?

    • The agencies periodically re-evaluate previously assigned ratings after new developments geopolitical events or a significant economic announcement by the concerned entity.
    • Their reports are sold and published in financial and daily newspapers.

    What grading pattern do they follow?

    • The three prominent ratings agencies, viz., Standard & Poor’s, Moody’s and Fitch subscribe to largely similar grading patterns.
    • Standard & Poor’s accord their highest grade, that is, AAA, to countries, equity or debt with the exceedingly high capacity to meet their financial commitments.
    • Its grading slab includes letters A, B and C with an addition a single or double letter denoting a higher grade.
    • Moody’s separates ratings into short and long-term definitions. Its longer-term grading ranges from Aaa to C, with Aaa being the highest.
    • Fitch, too, rates from AAA to D, with D being the lowest. It follows the same succession scheme as Moody’s and Fitch.

    Criticism of rating agencies

    • Popular ratings agencies publicly reveal their methodology, which is based on macroeconomic data publicly made available by a country, to lend credibility to their inferences.
    • However, credit rating agencies were subjected to severe criticism for allegedly spurring the financial crisis in the United States, which began in 2017.
    • The agencies underestimated the credit risk associated with structured credit products and failed to adjust their ratings quickly enough to deteriorating market conditions.
    • They were charged for methodological errors and conflict of interest on multiple counts.

    Do countries pay attention to ratings agencies?

    • Lowered rating of a country can potentially cause panic selling or offloading of investment by a foreign investor.
    • In 2013, the European Union opted for regulating the agencies.
    • Over reliance on credit ratings may reduce incentives for investor to develop their own capacity for credit risk assessment.
    • Ratings Agencies in the EU are now permitted to issue ratings for a country only thrice a year, and after close of trade in the entire Union.

     

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    What is Privilege Motion?

    An MP from Telangana submitted a Privilege Motion against PM regarding his remarks over the bifurcation of the erstwhile state of Andhra Pradesh.

    What is Parliamentary Privilege?

    • Parliamentary privilege refers to the right and immunity enjoyed by legislatures.
    • The legislators are granted protection against civil or criminal liability for actions done or statements made in the course of their legislative duties.
    • They are granted so that the MPs/MLAs can effectively discharge their functions.
    • The powers, privileges, and immunities of either House of the Indian Parliament and of its members and committees are laid down in Article 105 of the Constitution.
    • Article 194 deals with the powers, privileges and immunities of the State Legislatures, their members and their committees.

    What is a Privilege Motion?

    • When any of the rights and immunities are disregarded, the offence is called a breach of privilege and is punishable under the law of Parliament.
    • A notice is moved in the form of a motion by any member of either House against those being held guilty of breach of privilege.
    • Each House also claims the right to punish as contempt actions which, while not breach of any specific privilege, are offenses against its authority and dignity.

    What are the rules governing privilege?

    • Rule No 222 in Chapter 20 of the Lok Sabha Rule Book and correspondingly Rule 187 in Chapter 16 of the Rajya Sabha rulebook govern privilege.
    • It says that a member may, with the consent of the Speaker or the Chairperson, raise a question involving a breach of privilege either of a member or of the House or of a committee thereof.
    • The rules however mandate that any notice should be relating to an incident of recent occurrence and should need the intervention of the House.
    • Notices have to be given before 10 am to the Speaker or the Chairperson.

    What is the role of the Speaker/Rajya Sabha Chair?

    • The Speaker/RS chairperson is the first level of scrutiny of a privilege motion.
    • The Speaker/Chair can decide on the privilege motion himself or herself or refer it to the privileges committee of Parliament.
    • If the Speaker/Chair gives consent under Rule 222, the member concerned is given an opportunity to make a short statement.

    What is the Privileges Committee?

    • In the Lok Sabha, the Speaker nominates a committee of privileges consisting of 15 members as per respective party strengths.
    • A report is then presented to the House for its consideration. The Speaker may permit a half-hour debate while considering the report.
    • The Speaker may then pass final orders or direct that the report be tabled before the House.
    • A resolution may then be moved relating to the breach of privilege that has to be unanimously passed.
    • In the Rajya Sabha, the deputy chairperson heads the committee of privileges, which consists of 10 members.

    Answer this PYQ in the comment box:

    Q.With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws etc. conferred by the constitution of delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation?

    (a) Committee on Government Assurances

    (b) Committee on Subordinate Legislation

    (c) Rules Committee

    (d) Business Advisory Committee

     

    Post your answers here.

     

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  • New Species of Plants and Animals Discovered

    Species in news: White-Cheeked Macaque

    In an important discovery, scientists have recorded presence of White-Cheeked Macaque (Macaca leucogenys) from central Arunachal Pradesh.

    White-Cheeked Macaque

    • White- Cheeked Macaques are distinct from other macaques found in the region by displaying white cheeks, long and thick hairs on the neck area, and a longer tail.
    • The species was discovered in 2015 by a group of Chinese scientists from the Modog region in southeastern Tibet.
    • This discovery was considered a significant breakthrough as far as primates are concerned.

    Existence in India

    • From India, the species has not been sighted or reported after a single incidence of photographic capture from Anjaw district, Arunachal Pradesh in 2015.
    • The number of these mammals reported from India stands at 434.
    • The significance of the discovery is that it marks a new addition to mammals of India.

    Protection status

    • It has NOT been yet included in the Wildlife (Protection) Act, 1972 of India.
    • The potential threat to all species of macaques in the landscape is due to hunting by locals for consumption and habitat degradation due to urbanization and infrastructure development.

     

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  • Freedom of Speech – Defamation, Sedition, etc.

    Central Media Accreditation Guidelines 2022

    The Centre has issued a new policy on the accreditation of journalists, introducing an entire section about reasons that can result in the suspension of the accreditation.

    What is the Policy for Accreditation?

    • The new policy lays down guidelines on how PIB accreditation will be granted to eligible journalists.
    • It is prepared by the Ministry of Information and Broadcasting (I&B) and issued by the Press Information Bureau.
    • At the moment there are 2,457 PIB-accredited journalists in the country.

    Conditions laid

    • For the first time, it specifies conditions that can result in the journalist losing accreditation.
    • The new policy has ten points that may result in the accreditation being canceled, including if a journalist is charged with a “serious cognizable offense”.
    • If a journalist acts in a manner that is prejudicial to the following conditions, his/ her accreditation can be canceled:
    1. Sovereignty and integrity of India
    2. Security of the nation
    3. Friendly relations with foreign states
    4. Public order
    5. Decency or morality or
    6. Defamation or incitement of an offense
    7. In relation to Contempt of Court
    • Accreditation is also liable to be withdrawn/suspended if it is found to have been misused.

    Who is eligible for accreditation?

    • Applications for accreditation are vetted by a Central Press Accreditation Committee headed by the DG, PIB.
    • After a journalist applies, a mandatory security check is conducted by the Home Ministry, which includes police verification of the journalist’s residence.

    (1) Journalists

    • But a journalist needs to have a minimum of five years of professional experience as a full-time working journalist or a cameraperson in a news organization, or a minimum of 15 years as a freelancer to become eligible.
    • Veteran journalists, with over 30 years of experience, and who are older than 65 years of age, too are eligible.
    • Accreditation is only available for journalists living in the Delhi NCR region.
    • Similar rules apply to foreign news organizations and foreign journalists.

    (2) Newspapers

    • A newspaper or a periodical needs to have a minimum daily circulation of 10,000, and news agencies must have at least 100 subscribers.

    (3) Digital platforms and others

    • The policy has introduced a provision that journalists working with digital news platforms are also eligible, provided the website has a minimum of 10 lakh unique visitors per month.

    How does accreditation help?

    • Professional status: The policy mentions that the accreditation does not “confer any official or special status” on the journalists, but only recognizes them as “professional working journalists”.
    • Reporting important offices: In certain events where VVIPs or dignitaries such as the President, the Vice President, or the Prime Minister are present, only accredited journalists are allowed to report from the premises.
    • Source Identity: Accreditation ensures that a journalist is able to protect the identity of his or her sources.
    • Authencity: An accredited journalist does not have to disclose who he or she intends to meet when entering offices of union ministries, as the accreditation card is valid for entry.
    • Perks and benefits: Accreditation brings certain benefits for the journalist and his or her family, like being included in the Central Government Health Scheme, and some concessions on railway tickets.

    What concerns does this raise?

    • Intimidation: This could result, at times, in such powers trying to intimidate journalists or to block information from coming out.
    • Alleged defamation: A common tool used by powerful people is filing of defamation cases against journalists and media platforms.
    • Prevents constructive criticism: Journalists often report on issues and policy decisions that the government may not like.
    • Subjectivity of criteria: The new policy’s provision about acting “in manner which is prejudicial to the sovereignty and integrity of India can be subjective.
    • No watchdog: The policy is silent on who will decide if a journalist’s conduct violates any of these conditions.
    • Media trials: Any investigative story on sensitive issues could be held to be in violation of any of these provisions.

     

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

    What is SWIFT?

    As tensions peaks over Ukraine the United States could exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

    What is SWIFT?

    • SWIFT is an international network for banks worldwide to facilitate smooth money transactions globally.
    • It is basically a messaging network used by banks and financial institutions globally for quick and faultless exchange of information pertaining to financial transactions.
    • The Belgium-headquartered SWIFT connects more than 11,000 banking and securities organization in over 200 countries and territories.
    • First used in 1973, it went live in 1977 with 518 institutions from 22 countries, its website states.

    What exactly is it?

    • SWIFT is merely a platform that sends messages and does not hold any securities or money.
    • It facilitates standardized and reliable communication to facilitate the transaction.

    How does it facilitate banking?

    • Each participant on the platform is assigned a unique eight-digit SWIFT code or a bank identification code (BIC).
    • If a person, say, in New York with a Citibank account, wants to send money to someone with an HSBC account in London, the payee would have to submit to his bank the London-based beneficiary’s account number along with the eight-digit SWIFT code of the latter’s bank.
    • Citibank would then send a SWIFT message to HSBC. Once that is received and approved, the money would be credited to the required account.

    How is the organization governed?

    • SWIFT claims to be neutral. Its shareholders, consisting of 3,500 firms across the globe, elect the 25-member board, which is responsible for oversight and management of the company.
    • It is regulated by G-10 central banks from Belgium, Canada, France, Germany, Italy, Japan, The Netherlands, the UK, the US, Switzerland, and Sweden, alongside the European Central Bank.
    • Its lead overseer is the National Bank of Belgium.
    • The SWIFT oversight forum was established in 2012.
    • The G-10 participants were joined by the central banks of India, Australia, Russia, South Korea, Saudi Arabia, Singapore, South Africa, the Republic of Turkey, and the People’s Republic of China.
    • Europe, Middle East, and Africa are highest contributors to SWIFT.

    What happens if one is excluded from SWIFT?

    • US excluding Russia from SWIFT could have serious repercussions on how Russian banks carry out international financial transactions.
    • If a country is excluded from the most participatory financial facilitating platform, its foreign funding would take a hit, making it entirely reliant on domestic investors.
    • This is particularly troublesome when institutional investors are constantly seeking new markets in newer territories.
    • An alternative system would be cumbersome to build and even more difficult to integrate with an already expansive system.

    Are any countries excluded from SWIFT?

    • Iranian banks were ousted from the system in 2018 despite resistance from several countries in Europe.
    • This step, while regrettable, was taken in the interest of the stability and integrity of the wider global financial system, and based on an assessment of the economic situation.

     

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  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    Intensified Mission Indradhanush (IMI) 4.0 launched

    The Union Health Minister has launched the Intensified Mission Indradhanush (IMI) 4.0.

    About IMI 4.0

    • The IMI 4.0 will have three rounds and will be conducted in 416 districts (including 75 districts identified for Azadi ka Amrit Mahotsav) across 33 States and UTs, a Health Ministry statement said.
    • It will immensely contribute in filling the gaps and make lasting gains towards universal immunisation.
    • It will ensure that Routine Immunisation (RI) services reach the unvaccinated and partially vaccinated children and pregnant women” he said.

    What is Mission Indradhanush ?

    • With the aim to increase the full immunisation coverage, the PM launched Mission Indradhanush in December 2014.
    • It aimed to cover the partially and unvaccinated pregnant women and children in pockets of low immunisation coverage, high-risk and hard-to-reach areas and protect them from vaccine preventable diseases.
    • The first two phases of the Mission resulted in 6.7% increase in full immunisation coverage in a year.

    Aims and objectives

    • It aims to immunize all children under the age of 2 years, as well as all pregnant women, against eight vaccine-preventable diseases.
    • The diseases being targeted are diphtheria, whooping cough, tetanus, poliomyelitis, tuberculosis, measles, meningitis and Hepatitis B.
    • In 2016, four new additions have been made namely Rubella, Japanese Encephalitis, Injectable Polio Vaccine Bivalent and Rotavirus.
    • In 2017, Pneumonia was added to the Mission by incorporating the Pneumococcal conjugate vaccine under Universal Immunisation Programme

     

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  • International Space Agencies – Missions and Discoveries

    What is a Solar Storm?

    Spacex’s newest fleet of satellites is tumbling out of orbit after being struck by a solar storm.

    Solar Storm

    • A solar storm or a Coronal Mass Ejection as astronomers call it is an ejection of highly magnetized particles from the sun.
    • These particles can travel several million km per hour and can take about 13 hours to five days to reach Earth.
    • Earth’s atmosphere protects us, humans, from these particles.
    • But the particles can interact with our Earth’s magnetic field, induce strong electric currents on the surface and affect man-made structures.

    How did they impact SpaceX satellites?

    • The issue came up due to increased drag created by the solar storm in the upper reaches of the Earth’s atmosphere.
    • These storms cause the atmosphere to warm and atmospheric density at our low deployment altitudes to increase.
    • In fact onboard GPS suggests the escalation speed and severity of the storm caused atmospheric drag to increase up to 50 percent higher than during previous launches.

    History of solar storms

    • The first recorded solar storm occurred in 1859 and it reached Earth in about 17 hours.
    • It affected the telegraph network and many operators experienced electric shocks.
    • A solar storm that occurred in 1921 impacted New York telegraph and railroad systems and another small-scale storm collapsed the power grid in Quebec, Canada in 1989.
    • A 2013 report noted that if a solar storm similar to the 1859 one hit the US today, about 20-40 million people could be without power for 1-2 years, and the total economic cost will be $0.6-2.6 trillion.

    Why are they a cause of concern?

    • The Sun goes through an 11-year cycle – cycles of high and low activity.
    • It also has a longer 100-year cycle.
    • During the last three decades, when the internet infrastructure was booming, it was a low period.
    • And very soon, either in this cycle or the next cycle, we are going towards the peaks of the 100-year cycle.
    • So it is highly likely that we might see one powerful solar storm during our lifetime.

     

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  • Nuclear Energy

    International Thermonuclear Experimental Reactor (ITER)

    Scientists in the United Kingdom have achieved a new milestone in producing nuclear fusion energy or imitating the way energy is produced in the Sun. The record and scientific data from these crucial experiments are a major boost for ITER.

    ITER Project

    • ITER is international nuclear fusion research and engineering megaproject, which will be the world’s largest magnetic confinement plasma physics experiment.
    • The goal of ITER is to demonstrate the scientific and technological feasibility of fusion energy for peaceful use.

    Project details

    • The project is funded and run by seven member entities—the European Union, India, Japan, China, Russia, South Korea and the United States.
    • The EU, as host party for the ITER complex, is contributing about 45 per cent of the cost, with the other six parties contributing approximately 9 per cent each.
    • Construction of the ITER Tokamak (doughnut-shaped apparatus) complex started in 2013 and the building costs were over US$14 billion by June 2015.

    How does it work?

    • Hydrogen plasma will be heated to 150 million degrees Celsius, ten times hotter than the core of the Sun, to enable the fusion reaction.
    • The process happens in a doughnut-shaped reactor, called a tokamak, which is surrounded by giant magnets that confine and circulate the superheated, ionized plasma, away from the metal walls.
    • The superconducting magnets must be cooled to -269°C (-398°F), as cold as interstellar space.
    • Scientists have long sought to mimic the process of nuclear fusion that occurs inside the sun, arguing that it could provide an almost limitless source of cheap, safe and clean electricity.
    • Unlike in existing fission reactors, which split plutonium or uranium atoms, there’s no risk of an uncontrolled chain reaction with fusion and it doesn’t produce long-lived radioactive waste.

    Back2Basics: Nuclear Fusion

    Major breakthrough on nuclear fusion energy - BBC News

    • Nuclear fusion is the process of making a single heavy nucleus (part of an atom) from two lighter nuclei. This process is called a nuclear reaction.
    • The nucleus made by fusion is heavier than either of the starting nuclei. It releases a large amount of energy.
    • Fusion is what powers the sun. Atoms of Tritium and Deuterium (isotopes of hydrogen, Hydrogen-3 and Hydrogen-2, respectively) unite under extreme pressure and temperature to produce a neutron and a helium isotope.
    • Along with this, an enormous amount of energy is released, which is several times the amount produced by fission.
    • Scientists continue to work on controlling nuclear fusion in an effort to make a fusion reactor to produce electricity.

    How it is different from nuclear fission?

    • Simply put, fission is the division of one atom into two (by neutron bombardment), and fusion is the combination of two lighter atoms into a larger one (at a very high temperature).
    • Nuclear fission takes place when a large, somewhat unstable isotope (atoms with the same number of protons but a different number of neutrons) is bombarded by high-speed particles, usually neutrons.

     

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