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  • Foreign Policy Watch: India-United States

     Explained: Basic Exchange and Cooperation Agreement (BECA) VS COMCASA VS LEMOA

    India and the United States have signed the Basic Exchange and Cooperation Agreement (BECA), which, along with the two agreements signed earlier — the LEMOA and the COMCASA.

    Try this question for mains:

    Q. What is the troika of “foundational pacts” of India with the US? Discuss each of them. (150W)

    Completing the troika

    • The two agreements signed earlier are— the Logistics Exchange Memorandum of Agreement (LEMOA) and the Communications Compatibility and Security Agreement (COMCASA).
    • This completes a troika of “foundational pacts” for deep military cooperation between the two countries.

    What is BECA?

    • BECA will help India get real-time access to American geospatial intelligence that will enhance the accuracy of automated systems and weapons like missiles and armed drones.
    • Through the sharing of information on maps and satellite images, it will help India access topographical and aeronautical data, and advanced products that will aid in navigation and targeting.

    Benefits of BECA

    • This could be a key to Air Force-to-Air Force cooperation between India and the US.
    • BECA will provide Indian military systems with a high-quality GPS to navigate missiles with real-time intelligence to precisely target the adversary.
    • Besides the sailing of ships, flying off aircraft, fighting of wars, and location of targets, geospatial intelligence is also critical to the response to natural disasters.

    What was the LEMOA about?

    • LEMOA was the first of the three pacts to be signed in August 2016.
    • LEMOA allows the militaries of the US and India to replenish from each other’s bases, and access supplies, spare parts and services from each other’s land facilities, air bases, and ports, which can then be reimbursed.
    • LEMOA is extremely useful for India-US Navy-to-Navy cooperation since the two countries are cooperating closely in the Indo-Pacific.

    Concretizing the mutual trust

    • The critical element that underpins LEMOA is mutual trust.
    • Without trust, no country will be willing to expose its military and strategic assets such as warships to the facilities of another country.
    • The signing of LEMOA was in itself an affirmation of the mutual trust between the two militaries, and its application will enhance the trust.
    • It took almost a decade to negotiate LEMOA, and the exercise in a sense bridged the trust deficit between India and the US and paved the way for the other two foundational pacts.

    What about the COMCASA?

    • COMCASA was signed in September 2018, after the first 2+2 dialogue during Mrs. Swarajs’ term as EAM.
    • The pact allows the US to provide India with its encrypted communications equipment and systems so that Indian and US military commanders, and the aircraft and ships of the two countries, can communicate through secure networks during times of both peace and war.
    • The signing of COMCASA paved the way for the transfer of communication security equipment from the US to India to facilitate “interoperability” between their forces.

    Specific context and practical benefit for India

    • The strengthening of the mechanisms of cooperation between the two militaries must be seen in the context of an increasingly aggressive China.
    • Amid the ongoing standoff on the LAC in Ladakh — the longest and most serious in three decades — India and the US intensified under-the-radar intelligence and military cooperation at an unprecedented level.
    • These conversations facilitated information-sharing between the two countries, including the sharing of high-end satellite images, telephone intercepts, and data on Chinese troops and weapons deployment along the LAC.

    Conclusion

    • Such agreements mark the enhancement of mutual trust and a commitment to the long-term strategic relationship.
    • The US wants India to move away from Russian equipment and platforms, as it feels this may expose its technology and information to Moscow.
    • So far, India is going ahead with the purchase of the S-400 air defence missile system from Russia, and this has been a sticking point for American interlocutors.
    • For its part, India is wary of Pakistan’s deep-rooted ties with the Pentagon, and Washington’s dependence on Rawalpindi for access to Afghanistan as well as its exit strategy.
    • But, because of the clear and present danger from China, New Delhi’s strategic embrace of Washington is the obvious outcome.
  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    What is Atlantification?

    Scientists have uncovered “hotspots” where some parts of the Barents Sea are starting to more closely resemble the Atlantic. They call this phenomenon “Atlantification”.

    Try this MCQ:

    Q.The Atlantification phenomenon sometimes seen in news is most closely related to which of the following seas/water bodies?

    a) Norwegian Sea

    b) Kara Sea

    c) Barents Sea

    d) Baffin Bay

    What is Atlantification?

    • Streams of warmer water from the Atlantic Ocean flow into the Arctic at the Barents Sea.
    • This warmer, saltier Atlantic water is usually fairly deep under the more buoyant Arctic water at the surface.
    • Lately, however, the Atlantic water has been creeping up. That heat in the Atlantic water is helping to keep ice from forming and melting existing sea ice from below.
    • This process is called “Atlantification”.
    • The ice is now getting hit both from the top by a warming atmosphere and at the bottom by a warming ocean.

    Reasons for it

    • In the background of all of this is global climate change.
    • The Arctic sea ice extent and thickness have been dropping for decades as global temperatures rise.
    • As the Arctic loses ice and the ocean absorbs more solar radiation, global warming is amplified.
    • That affects ocean circulation, weather patterns and Arctic ecosystems spanning the food chain, from phytoplankton all the way to top predators.
  • ISRO Missions and Discoveries

    EOS-01 Satellite

    India would launch its latest earth observation satellite EOS-01 and nine international customer spacecraft onboard it’s PSLV-C49.

    Try this PYQ:

    Q.The term ‘IndARC’, sometimes seen in the news, is the name of:

    (a) An indigenously developed radar system inducted into Indian Defence

    (b) India’s satellite to provide services to the countries of Indian Ocean Rim

    (c) A scientific establishment set up by India in Antarctic region

    (d) India’s underwater observatory to scientifically study the Arctic region

    EOS-01

    • EOS-01 is intended for applications in agriculture, forestry and disaster management support.
    • This is the first launch by the Indian Space Research Organisation since the COVID-19-induced lockdown came into force in March.
    • This will be the 51st mission of ISRO’s workhorse, the Polar Satellite Launch Vehicle.

    What is Earth Observation Satellite (EOS)?

    • An EOS or remote sensing satellite is a satellite used or designed for Earth observation (EO) from orbit, including spy satellites and similar ones intended for non-military uses such as environmental monitoring, meteorology, cartography and others.
    • Starting with IRS-1A in 1988, ISRO has launched many operational remote sensing satellites.
    • Today, India has one of the largest constellations of remote sensing satellites in operation.
    • Currently, *thirteen* operational satellites are in Sun-synchronous orbit and *four* in Geostationary orbit.
    • The data from these satellites are used for several applications covering agriculture, water resources, urban planning, rural development, mineral prospecting, environment, forestry, ocean resources and disaster management.

  • New Species of Plants and Animals Discovered

    Species in news: Pelagornithids

    Scientists have identified the fossil of a giant bird that lived about 50 million years ago, with wingspans of up to 21 feet that would dwarf today’s largest bird, the wandering albatross.

    Try this PYQ:

    Q.The term “Sixth mass extinction/ sixth extinction is often mentioned in the news in the context of the discussion of

    (a) Widespread monoculture practices in agriculture and large-scale commercial farming with indiscriminate use of chemicals in many parts of the world that may result in the loss of good native ecosystems.

    (b) Fears of a possible collision of a meteorite with the Earth in the near future in the manner it happened 65 million years ago that caused the mass extinction of many species including those of dinosaurs.

    (c) Large scale cultivation of genetically modified crops in many parts of the world and promoting their cultivation in other parts of the world which may cause the disappearance of good native crop plants and the loss of food biodiversity.

    (d) Mankind’s over-exploitation/misuse of natural resources, fragmentation/loss of natural habitats, destruction of ecosystems, pollution and global climate change.

    Pelagornithids

    • Called Pelagornithids, the birds filled a niche much like that of today’s albatrosses and travelled widely over Earth’s oceans for at least 60 million years.
    • They are known as ‘bony-toothed’ birds because of the bony projections, or struts, on their jaws that resemble sharp-pointed teeth, though they are not true teeth, like those of humans and other mammals.
    • The bony protrusions were covered by a horny material, keratin, which is like our fingernails, the researchers said.
    • Called pseudoteeth, the struts helped the birds snag squid and fish from the sea as they soared for perhaps weeks at a time over much of Earth’s oceans, they said.

    Their extinction

    • The pelagornithids came along to claim the wingspan record in the Cenozoic, after the mass extinction and lived until about 2.5 million years ago. Around that same time, teratogens, now extinct, ruled the skies, they said.
    • The newly described fossil — a 50 million-year-old portion of a bird’s foot — shows that the larger Pelagornithids arose just afterlife rebounded from the mass extinction 65 million years ago, when the dinosaurs, went extinct.
    • The last known pelagornithid is from 2.5 million years ago, a time of changing climate as Earth cooled, and the ice ages began.
  • Policy Wise: India’s Power Sector

    [pib] Electricity Access & Utility Benchmarking Report

    NITI Aayog, Ministry of Power, Rockefeller Foundation, and Smart Power India have together launched the ‘Electricity Access in India and Benchmarking Distribution Utilities’ report.

    About the report

    • It is based on a primary survey conducted across 10 states––representing about 65% of the total rural population of India.
    • Aimed at capturing insights from the demand (electricity customers) as well as supply-side (electricity distribution utilities), the report seeks to:
    1. Evaluate the status of electricity access in India across these states and distribution utilities along all dimensions that constitute meaningful access
    2. Benchmark utilities’ capacity to provide electricity access and identify the drivers of sustainable access
    3. Develop recommendations for enhancing sustainable electricity access

    Key findings of the report:

    • As much as 92% of customers reported the overall availability of electricity infrastructure within 50 metres of their premises; however, not all have connections, the primary reason being the distance of households from the nearest pole.
    • Overall, 87% of customers have access to grid-based electricity. The remaining 13% either use non-grid sources or don’t use any electricity at all.
    • The hours of supply have improved significantly across the customer categories to nearly 17 hours per day.
    • Nearly 85% of customers reported to have a metered electricity connection.
    • Access to electricity is observed in 83% of household customers.
    • Considering the overall satisfaction level, a total of 66% of those surveyed were satisfied––74% of customers in urban areas and 60% in rural areas.

    Recommendations made

    The key recommendations provided in the report are in the areas of policy and regulation, process improvement, infrastructure and capacity-building of utilities. Other recommendations included:

    • prioritizing the release of new connections for non-household customers
    • transfer of subsidies or other benefits directly into a customer’s account
    • enhanced technology-driven customer service; ensuring 100% metering of customers
    • segregation of feeder lines
  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Controlling the distorting power of the global capital

    Issues with free trade are making themselves more evident in the aftermath of the Covid pandemic. The article analyses the growing influence of the capital and how it is benefiting the few.

    Issues with free trade

    • Debates about free trade revolves around value of economic growth vs. the values of justice.
    • The Economist (October 5) says “Investor-state dispute-settlement (ISDS) clauses of international trade and investment agreements give foreign investors the right to resort to a secretive tribunal to seek compensation when they are in disagreement with a host government.
    • They threaten governments who want to pass laws that seem self-evidently in their country’s and even the world’s interests.
    • The interests of remote financial investors are considered superior to the rights of local people represented by their own democratically elected governments.
    • TRIPS (the Agreement on Trade-Related Aspects of International Property Rights) is another egregious example.
    • Lobbies of multinational pharma companies want to protect their investors with intellectual monopolies under TRIPS, denying affordable medicines to the world’s poorer people.
    • New business models are throwing more workers into short-term contractual arrangements to make it easier for investors to do business.

    How it is relevant in India

    • The Environmental Impact Assessment (EIA) notification 2020 make it easier for investors to take over lands for projects by debilitating the assessment process which requires that communities be heard.
    • The new labour codes passed by Parliament to simplify regulations have also weakened the rights of workers to be represented by unions.
    •  In India, terms of trade have been stacked against small farmers to keep prices low for consumers.
    • Terms are also against small enterprises in financial markets, and also when they supply to large buyers in global supply chains.
    • The terms of trade are unfair for all workers who are on the supply side of labour markets vis-à-vis those who pay them.
    • Small people do not have clout in any market. Those with more money set the terms of trade.

    Governance crisis

    • Capitalism runs on the principle of property rights: Those who own more must have a greater say in the governance of the enterprise.
    • Money is speaking too much in fixing the rules of the game: It influences elections; it controls the media; it powers lobbies for reforms at international and national levels.

    Conclusion

    The way the rules of the economy and trade are made must change to create a more just and resilient world. Voices of the poorest people and their associations must be heard more loudly than the opinions of the rich and their lobbies.

     

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

    Give reforms a chance

    Agri-bill passed by the Parliament resulted in the protest from farmers from several states. The bills have also been challenged on the legal footing as well. This article explains how the bills will benefit the farmers and also examines the legal basis used for their passage.

    States trying to nullify the agri bills passed by Parliament

    • Parliament has passed three bills on agriculture reform. This has evoked protests, largely in Punjab and Haryana.
    • Taking recourse to Article 254 of the Constitution, the Punjab government has passed its own bills to nullify some provisions of the central acts.
    • Similar action by the Chhattisgarh and Rajasthan governments seems to be on the anvil.

    Legal justification for Parliament passing the laws related to agriculture

    • The Constitution has placed agriculture on the state list.
    • Various petitions have also been filed in the Supreme Court claiming that the central laws infringe upon the jurisdiction of state governments.
    • However, it is the Centre which decides and announces support prices for major crops for the entire country.
    • It also decides issues such as bank loan waivers.
    • International agreements and multilateral trade in agricultural products also fall in the Union government’s domain.
    • Agricultural and dairy products, in fact, had a prominent role in India not joining the Regional Comprehensive Economic Partnership (RCEP).
    • Entry 33 in the concurrent list limits the power of states in agriculture, by empowering both governments to legislate on production, trade and supply of a range of agricultural foodstuffs and raw material.

    Use of Article 254 to bypass Central law

    • The Punjab bill has set in motion the process of states taking refuge under Article 254 to pass their own pieces of legislation.
    • All state bills that seek to nullify central acts have to be approved by the President after they have received the consent of the governor of the state.

    Way forward

    • Reformist chief ministers and astute policy planners should grab this opportunity and encourage investment in private infrastructure to create supply chains and give the farmer the benefit of demand-led prices.
    • They should also take appropriate action to create institutional mechanisms, such as farmer producer organisations or aggregators, to ensure greater farmer participation.

    Conclusion

    It would be in the interests of the farming community and state governments to give the much-delayed reform measures a fair chance by giving them access to competitive purchases, affording better prices.

  • Policy Wise: India’s Power Sector

    How to improve the financial picture of the DisComs

    The article analyses the factors responsible for financial difficulties faced by the DisComs and suggests the ways to deal with the issues.

    Important role of the DisComs

    • Distribution Companies (DisComs) are the utilities that typically buy power from generators and retail these to consumers.
    • For all of India’s global leadership for growth of renewable energy, or ambitions of smart energy, the buck stops with the DisComs.
    • The days of scarcity of power are over.
    • The physical supply situation has mostly improved.
    • But the financial picture has not brightened much.

    Analysing the data on liabilities of the DisComs

    •  ₹90,000 crore (later upgraded to  ₹1,25,000 crore) was earmarked for DisComs in ₹20-lakh crore package announced in the wake of Covid-19’s economic shock.
    • The Power Finance Corporation (PFC)’s Report on Utility Workings for 2018-19 showed dues to generators were ₹2,27,000 crore, and this is well before COVID-19.
    • It also showed similar Other Current Liabilities.
    • DisComs have delayed their payments upstream (not just to generators but others as well) — in essence, treating payables like an informal loan.

    But why do DisComs not pay on time?

    • Ideally, DisComs should not incur losses as they enjoy a regulated rate of return.
    • While AT&C losses can explain part of any gap. Major reasons are as discussed below:

    1) Regulatory issue and cash-flow gap due to it

    • The first problem starts at the regulatory level where even if DisComs performed as targeted, across India, they would face a considerable cash flow gap.
    • This cash flow gap was ₹60,000-plus crore in FY18-19 compared to their then annual cost structure of ₹7.23-lakh crore.

    2) Payabeles issue: Due from consumers, state and regulatory gap

    •  These dues are of three types.
    • First, regulators themselves have failed to fix cost-reflective tariffs thus creating Regulatory Assets,which are to be recovered through future tariff hikes.
    • Second, about a seventh of DisCom cost structures is meant to be covered through explicit subsidies by State governments.
    • Third, consumers owed DisComs over ₹1.8 lakh crore in FY 2018-19, booked as trade receivables.
    • State governments are the biggest defaulters, responsible for an estimated a third of trade receivables, besides not paying subsidies in full or on time.

    3) Challenge of renewable energy

    • The rise of renewable energy means that premium customers will leave the system partly first by reducing their daytime usage.
    • And as battery technologies mature, their dependence on DisComs may wane entirely.
    • Even without batteries, regulations permitting, they may want to find third party suppliers under competitive models.

    Impact of Covid pandemic

    • COVID-19 has completely shattered incoming cash flows to utilities.
    •  The revenue implications were far worse since the lockdown disproportionately impacted revenues from so-termed paying customers, commercial and industrial segments.
    • Reduced demand for electricity did not save as much because a large fraction of DisCom cost structures are locked in through Power Purchase Agreements (PPAs) that obligate capital cost payments, leaving only fuel savings with lower offtake.

    Way forward

    • We will probably need a much larger liquidity infusion than has been announced thus far, but it also must go hand-in-hand with credible plans to pay down growing debt.
    • We need a complete overhaul of the regulation of electricity companies and their deliverables.
    • We need to apply common sense metrics of lifeline electricity supply instead of the political doleout of free electricity even for those who may not deserve such support.
    • For the rest, regulators must allow cost-covering tariffs.

    Consider the question “Examine the factor responsible for making the DisComs financial unviable? Sugget the pathways to deal with the issues faced by the DisComs”

    Conclusion

    The financial problems of DisComs have been brewing for many yearsHowever, if business as usual was not even good enough before COVID-19, it will not be workable for the current national needs of quality, affordable, and sustainable power.

  • Rohingya Conflict

    India-Myanmar relations

    The Foreign Secretary and Chief of the Army Staff have recently visited Myanmar reflected India’s multidimensional interests in the country.

    Try this question:

    Q.Myanmar is the key in linking South Asia to Southeast Asia and the eastern periphery becomes the focal point for New Delhi’s regional outreach. Analyse.

    India-Myanmar relations

    • There are two lines of thinking that drive India’s Myanmar policy: engagement with key political actors and balancing neighbours.
    • For Myanmar, the visit would be viewed as India’s support for its efforts in strengthening democratization amidst criticisms by rights groups over the credibility of its upcoming election.

    Non-interference in internal politics

    • The political logic that has shaped India’s Myanmar policy since the 1990s has been to support democratization driven from within the country.
    • This has allowed Delhi to engage with the military that played a key role in Myanmar’s political transition and is still an important political actor.
    • A key factor behind the military regime’s decision to open the country when it initiated reforms was, in part, to reduce dependence on China.

    India as an alternative

    • By engaging Myanmar, Delhi provides alternative options to Naypyidaw.
    • This driver in India’s Myanmar policy has perhaps gained greater salience in the rapidly changing regional geopolitics.

    Recent initiatives

    • Like in other neighbouring countries, India suffers from an image of being unable to get its act together in making its presence felt on the ground.
    • The inauguration of the liaison office of the Embassy of India in Naypyidaw (the capital) may seem a routine diplomatic activity.
    • However, establishing a permanent presence in the capital where only a few countries have set up such offices does matter.
    • Interestingly, China was the first country to establish a liaison office in Naypyidaw in 2017.
    • India has also proposed to build a petroleum refinery in Myanmar that would involve an investment of $6 billion.

    Strategic calculus

    • This is an indication of Myanmar’s growing significance in India’s strategic calculus.
    • It also shows India’s evolving competitive dynamic with China in the sector at a time when tensions between the two have intensified.
    • Another area of cooperation that has expanded involves the border areas.
    • Furthermore, the recent announcement that India was transferring a Kilo-class submarine to Myanmar demonstrates the depth of their cooperation in the maritime domain.

    The balancing act

    • For Delhi, the balancing act between Bangladesh and Myanmar remains one of the keys to its overall approach to the Rohingya issue.
    • Delhi has reiterated its support for “ensuring the safe, sustainable and speedy return of displaced persons” to Myanmar.
    • By positioning as playing an active role in facilitating the return of Rohingya refugees, India has made it clear that it supports Myanmar’s efforts and also understands Bangladesh’s burden.
    • For Delhi, engaging rather than criticizing is the most practical approach to finding a solution.

    Conclusion

    • For India, Myanmar is key in linking South Asia to Southeast Asia and the eastern periphery becomes the focal point for New Delhi’s regional outreach.
    • Delhi’s political engagement and diplomatic balancing seem to have worked so far in its ties with Myanmar.
    • Whether it has leveraged these advantages on the ground to the full is open to debate.
    • The aforementioned initiatives could be the beginning of change on the ground by establishing India’s presence in sectors where it ought to be more pronounced.
  • J&K – The issues around the state

    Outsiders can now buy land in Jammu and Kashmir

    People, as well as investors outside Jammu and Kashmir, can now purchase land in the Union Territory (UT) as the Centre has notified new land laws for the region.

    What is the new criterion?

    • Under the newly introduced J&K Development Act, the term “permanent resident of the State” as a criterion has been “omitted”, paving the way for investors outside J&K to invest in the UT.
    • Under the ‘transfer of land for the purpose of promotion of healthcare or education’, the government may now allow the transfer of land.
    • According to amendments made to “The Jammu & Kashmir Land Revenue Act, Samvat, 1996”, only agriculturists of J&K can purchase agricultural land.
    • No sale, gift, exchange, or mortgage of the land shall be valid in favour of a person who is not an agriculturist.
    • No land used for agriculture purposes shall be used for any non-agricultural purposes except with the permission of the district collector.
    • Under a new provision, an Army officer not below the rank of Corps Commander can declare an area as “Strategic Area” within a local area, only for direct operational and training requirements.

    Note: These laws do not apply to the UT of Ladakh. The Centre is likely to notify separate land laws for the UT of Ladakh soon.

    Criticisms of the move

    • Political parties have opposed the move citing the sale of the state.
    • With these new laws in place, tokenism of the domicile certificate has been done away with, as purchasing non-agricultural land has been made easier.

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