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  • Gold Monetisation Scheme

    Why the government could discontinue the sovereign gold scheme?

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    Sovereign gold bonds provide a safer and more cost-effective alternative to holding physical gold, as they reduce risks and storage expenses. However, the central government is considering discontinuing the SGB scheme.

    What is the Sovereign Gold Bond scheme?

    About GOI launched it on October 30, 2015.
    Structural Mandate Nodal Agency: Ministry of Finance;
    Issued by RBI on behalf of the GOI.
    Aims and Objectives To reduce dependence on gold imports and shift savings from physical gold to paper form.
    Targeted Beneficiaries Residents of India, including individuals, HUFs, trusts, universities, and charitable institutions.
    Funding Mechanism
    • The Sovereign Gold Bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. This ensures a sovereign guarantee for both the principal and interest payments.
    • The bonds are made available for subscription in tranches. The RBI notifies the terms and conditions for each tranche, including the subscription dates and issue price, which is based on the average closing price of gold of 999 purity published by the India Bullion and Jewellers Association (IBJA).
    • SGBs are sold through various channels, including scheduled commercial banks (excluding small finance banks), designated post offices, Stock Holding Corporation of India Limited (SHCIL), and recognized stock exchanges like NSE and BSE.
    Features
    • Sovereign gold Bonds are issued in 1-gram denominations with an 8-year tenure and early exit from the 5th year.
    • The minimum investment is 1 gram, a maximum 4 kg for individuals, and 20 kg for trusts.
    • Benefits include security, interest, and loan collateral.

    What are the concerns regarding sovereign gold bonds?

    • High Cost of Financing: The government perceives the cost of financing its fiscal deficit through SGBs as disproportionately high compared to the benefits provided to investors. This perception has led to a significant reduction in the issuance of SGBs, dropping from ten tranches annually to just two.
    • Limited Issuance in Current Financial Year: In the financial year 2024-25, no new sovereign gold bonds have been issued so far, and net borrowing through these bonds has been significantly reduced from previous estimates.
    • Market Competition from Physical Gold: The recent reduction in customs duty on gold from 15% to 6% has led to a surge in demand for physical gold. Investors may prefer holding physical gold over waiting for returns from debt securities like SGBs, which require maturity periods before realizing gains.

    What are the challenges due to the import of Gold?

    • Impact on Trade Deficit: Gold imports are a major contributor to India’s trade deficit, with a record $14.8 billion spent in November 2024, which weakened the rupee. Between 2016 and 2020, gold imports made up 86% of the country’s gold supply, leading to significant foreign exchange outflows and economic instability.
    • Encouragement of Smuggling: High import duties on gold have driven a rise in smuggling, with 65% to 75% of smuggled gold entering India through air routes. This illegal trade undermines government revenue and complicates market regulation.

    Way forward: 

    • Increase Liquidity and Accessibility: Similar to gold-backed ETFs in the U.S. and Gold Bullion Securities in Australia, India can enhance the liquidity of SGBs by allowing them to be traded on stock exchanges, providing easy access and better market engagement for investors.
    • Encourage Regular Investments: Drawing inspiration from Germany’s gold savings plans, India can introduce flexible investment options such as monthly or quarterly contributions, enabling dollar-cost averaging and attracting retail investors over time.

    Mains PYQ:

    Q Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (UPSC IAS/2015)

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  • Wildlife Conservation Efforts

    [pib] National Wildlife Health Policy

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    The Central Zoo Authority has initiated the development of the National Wildlife Health Policy (NWHP) through a consultative workshop held in New Delhi.

    About the National Wildlife Health Policy (NWHP):

    Details
    • An initiative launched by the Central Zoo Authority (CZA) to improve wildlife health and control zoonotic diseases.
      • CZA, established in 1992 under the Wildlife Protection Act, 1972, is a statutory autonomous body under the MoEFCCC.
    • Part of the National Wildlife Action Plan (2017-31) and follows the One Health approach, which integrates human, animal, and environmental health.
    Aims and Objectives
    • Prevent and Control Zoonotic Diseases: Strengthen monitoring and control of diseases.
    • Improve Disease Surveillance: Develop systems for early epidemic detection.
    • Promote One Health Principles: Integrate human, animal, and environmental health.
    • Community Advocacy: Increase awareness on wildlife health and conservation.
    Programs/Initiatives Under the Policy
    • Wildlife Health Management Unit (WHMU): A dedicated unit to implement wildlife health programs.
    • Disease Surveillance and Early Detection: Early detection of diseases, especially in protected areas.
    • Biosecurity Protocols: Strengthen measures to minimize disease risks.
    • Epidemic Preparedness and Response: Response strategies for wildlife disease outbreaks.
    • One Health Approach Integration: Coordination between health sectors for better management.
    Structural Mandate and Implementation
    • Wildlife Health Management Unit (WHMU) (proposed) to oversee wildlife health programs.
    • Collaboration Across Agencies: Coordination with MoEF&CC, Wildlife Institutes, and state wildlife authorities.
    • Surveillance and Monitoring: Monitor and track wildlife diseases, with research support from Indian Veterinary Research Institute (IVRI).
    • Capacity Building: Training programs for wildlife health professionals.
    • Funding and Resources: Significant resources for surveillance, research, and capacity building.

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  • Wildlife Conservation Efforts

    IPBES Report, 2024

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    The 11th plenary of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) took place in Namibia to discuss key scientific findings and evidence addressing the global biodiversity crisis.

    About IPBES

    • IPBES aims to improve the interface between science and policy on biodiversity and ecosystem services.
    • Membership: Comprises over 130 member governments.
    • Purpose: Provides scientific assessments to guide governments, the private sector, and civil society in decision-making on biodiversity and ecosystems.
    • Establishment:
      • Formally established in April 2012 when 90 countries signed its founding statement.
      • Originated from a 2010 UN General Assembly resolution urging the UN Environment Programme to convene a meeting for its formation.
    • Structural Mandate:
      • Led by a Plenary (main decision-making body) with representatives from member states.
      • Operates on a consensus principle, meeting annually to decide on work programs, budgets, and reports.
    • Key Functions:
      • Assessments: Develop global and regional assessments on biodiversity themes.
      • Policy Support: Provide tools and methodologies for policymakers.
      • Capacity Building: Enhance knowledge and capabilities among members.
      • Outreach: Ensure effective communication and impact.
    • Notable Achievements:
      • 2019: Released the Global Assessment Report on biodiversity and ecosystem services.
      • 2020: Preliminary report on international cooperation to reduce pandemic risks.
      • 2021: Co-sponsored a biodiversity and climate change workshop report with IPCC.
      • 2022: Awarded the Gulbenkian Prize for Humanity, shared with IPCC.
    • Unique Contributions:
      • Introduced the term “Nature’s Contributions to People” (NCPs) as an alternative to ecosystem services.
      • Compiles knowledge from diverse sources, including scientific literature, indigenous knowledge, and local expertise.

    Key Highlights on the Global Environment:

    • Biodiversity Loss: 1 million species face extinction due to habitat destruction, climate change, and pollution.
    • Climate Change Impact: Global warming is significantly threatening ecosystems and species.
    • Deforestation: Large-scale deforestation disrupts ecosystems and contributes to carbon emissions.
    • Water Scarcity: Freshwater ecosystems are under threat from pollution and over-extraction.
    • Ecosystem Services: Decline in vital services like clean air, water, and food.
    • Global Cooperation: Urgent need for global action to address climate change, biodiversity loss, and sustainable development.
    • Biodiversity and Health: Emphasis on the One Health approach to link human, animal, and environmental health.

    Key Highlights on the Asian Region:

    • Biodiversity: Asia hosts half the world’s biodiversity but faces major threats from habitat loss and climate change.
    • Pollution and Urbanization: Rapid urbanization is increasing pollution, affecting health and the environment.
    • Climate Change: Vulnerable to floods, droughts, and rising sea levels impacting agriculture and settlements.
    • Forest Loss: Deforestation, especially in Indonesia, India, and Malaysia, threatens ecosystems.
    • Marine Biodiversity: Marine life is under pressure from overfishing and pollution.
    • Sustainable Agriculture: Promoting sustainable farming to reduce environmental impact.
    • Protected Areas: Despite progress, conservation management remains a challenge.

    PYQ:

    [2012] The Millennium Ecosystem Assessment describes the following major categories of ecosystem services-provisioning, supporting, regulating, preserving and cultural. Which one of the following is supporting service?

    (a) Production of food and water

    (b) Control of climate and disease

    (c) Nutrient cycling and crop pollination

    (d) Maintenance of diversity

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  • Blockchain Technology: Prospects and Challenges

    US Bitcoin Strategic Reserve

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    Bitcoin surged to a record high of over $107,000 after President-elect Donald Trump reaffirmed plans to create a US bitcoin reserve, boosting investor excitement.

    Do you know?

    • The legal status of cryptocurrency in India is uncertain.
      • RBI has warned against cryptocurrencies, citing risks to investors and confirming they are not legal tender. 
    • In 2018, the Supreme Court overturned an RBI ban on financial institutions dealing with cryptocurrencies.
    • In the 2022-23 Union Budget, the Government of India announced a 30% tax on cryptocurrency transfers.
    • Additionally, a panel has been formed to explore blockchain technology and the potential for a Central Bank Digital Currency (CBDC).

    What is a Strategic Reserve?

    Details
    • A strategic reserve is a stockpile of critical resources, used in times of crisis or disruptions in supply.
    • Examples:
      • US Strategic Petroleum Reserve: Largest global emergency oil stockpile, created in 1975 after the 1973-74 oil embargo.
      • Canada’s Maple Syrup Reserve: The only global strategic reserve for maple syrup.
      • China’s Reserves: Includes resources like metals, grains, and pork.
    How Would a U.S. Strategic Bitcoin Reserve Work?
    • Establishing the Reserve: Unclear if it would require executive powers or Congress approval. Some suggest an executive order to manage bitcoin through the U.S. Treasury’s Exchange Stabilization Fund.
    • Content of the Reserve: Includes seized bitcoin (200,000 tokens, worth approx. $21 billion).
    • Additional Purchases: Possible purchase of more bitcoin from the open market.
    Benefits and Risks of a Bitcoin Reserve Benefits:

    • Global Market Dominance: Could enhance U.S. control over the global bitcoin market, especially against competitors like China.
    • Economic Advantages: Could reduce U.S. fiscal deficit and strengthen the U.S. dollar.

    Risks:

    • Volatility: Bitcoin’s value is uncertain due to volatility and lack of intrinsic use.
    • Security: Vulnerability to cyber-attacks and market fluctuations.

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

    Arctic Tundra is emitting more Carbon than it absorbs: NOAA

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    • The Arctic Tundra, a frozen treeless biome, has traditionally served as a carbon sink, storing vast amounts of carbon for thousands of years.
      • However, recent changes in this ecosystem are turning it into a source of greenhouse gases (GHGs), primarily carbon dioxide (CO2) and methane (CH4) according to National Oceanic and Atmospheric Administration (NOAA).

    What is Arctic Tundra?

    • Arctic Tundra is cold, treeless biome located in the northernmost regions of Earth, primarily within the Arctic Circle.
    • Climate:
      • Experiences long, harsh winters and short, cool summers.
      • Temperatures range from -28°C in winter to 3°C in summer.
      • Ground is permanently frozen, restricting plant root growth and shaping the ecosystem.
      • Experiences 24-hour daylight in summer and long polar nights in winter.
    • Biodiversity and Vegetation:
      • Limited to low-growing vegetation like mosses, lichens, grasses, and small shrubs, adapted to short growing seasons.
      • Hosts animals like Arctic foxes, polar bears, caribou, and migratory birds, though overall biodiversity is low.
    • Adaptations:
      • Animals: Thick fur and fat layers in species like polar bears to survive extreme cold.
      • Plants: Shallow roots for quick nutrient absorption during short summers.

    How does the Arctic Tundra store Carbon?

    • The Arctic tundra stores carbon primarily through a process where plants absorb carbon dioxide (CO2) from the atmosphere via photosynthesis.
      • This carbon gets trapped in the soil and organic matter (plants and animals) that accumulate over time.
    • The cold Arctic climate slows the decomposition of plant and animal remains, meaning that organic materials, including carbon, remain locked in the permafrost.
      • This permafrost acts as a natural storage system, preventing CO2 from being released back into the atmosphere.
    • Scientists estimate that the Arctic tundra holds about 1.6 trillion metric tonnes of carbon, which is roughly double the amount of carbon in the Earth’s atmosphere.

    Why is the Arctic Tundra emitting more carbon than absorbing it?

    • Rising temperatures in the Arctic are causing the permafrost to thaw at an accelerated rate.
      • When permafrost thaws, microbes in the soil become active, breaking down the organic material trapped in the frozen ground, which results in the release of carbon dioxide (CO2) and methane (CH4), two potent greenhouse gases.
      • The Arctic has been warming at a rate four times faster than the global average.
      • 2024 was the second-warmest year on record for the region, contributing significantly to the thawing of the permafrost.
    • Wildfires in the Arctic have become more frequent and intense, further accelerating the thawing of permafrost. Wildfire smoke also contributes to the release of greenhouse gases.
    • Between 2001 and 2020, the combination of rising temperatures and increased wildfires led to the Arctic tundra releasing more carbon than it absorbed, marking a significant shift in its role from a carbon sink to a carbon emitter.

    PYQ:

    [2012] Climate is extreme, rainfall is scanty and the people used to be nomadic herders. The above statement best describes which of the following regions?

    (a) African Savanna

    (b) Central Asian Steppe

    (c) North American Prairie

    (d) Siberian Tundra

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    India’s wage challenge has shifted from chronic to immediate

    Explained | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Why in the news? 

    India’s Rural low wages pose a significant challenge, but adopting a ground-level perspective on employers’ daily realities highlights policy measures to increase the number of high-productivity employers.

    What are the root causes of the current wage stagnation in India?

    • Economic Structure: The shift from agriculture to non-farm jobs has not been accompanied by a corresponding increase in productivity. Despite significant government spending, the flow of jobs since 1991 has not reduced farm employment, leading to wage stagnation in rural areas.
    • Skill Mismatch: There is a disparity between the skills available in the labour market and those demanded by employers. Many workers remain under-skilled for the higher-paying jobs that are available, perpetuating low wages.
    • Economic growth vs wage stagnation: Despite India’s GDP growing at a strong rate, averaging 7.8% in recent years, this growth has not led to substantial wage increases for rural workers. In fact, real wages, when adjusted for inflation, have either remained stagnant or decreased. This disparity underscores a crucial issue: the underlying nature of economic growth.
    • Shift to Capital-Intensive Growth: India’s recent economic growth is driven by capital-intensive sectors, which create fewer jobs, limiting the demand for rural labour and keeping wages low.
    • Inflation vs. Wage Growth: While nominal wages have risen, inflation has outpaced wage growth, reducing the real purchasing power of rural workers. For example, rural wages grew by 5.2% nominally, but real wage growth was negative at -0.4%.
    • Increased Labour Supply: Government schemes like Ujjwala and Har Ghar Jal have increased rural women’s workforce participation, intensifying competition for jobs and putting downward pressure on wages.
    • Agricultural Wage Stagnation: Despite steady agricultural growth (4.2% and 3.6% in recent years), wages in agriculture have not increased proportionally, limiting overall wage growth in rural areas.

    How can India effectively implement a living wage system?

    A living wage system ensures workers earn enough to meet basic needs like food, housing, healthcare, and education, enabling a decent standard of living beyond mere subsistence wages.

    • Policy Framework: Establishing a clear definition of what constitutes a living wage based on local cost of living metrics is essential. This framework should be adaptable to different regions and sectors.
    • Incentives for Employers: Providing tax breaks or subsidies for businesses that pay living wages can encourage compliance and support workers’ livelihoods.
    • Strengthening Labor Rights: Ensuring robust enforcement of labor laws that protect workers’ rights to fair wages and safe working conditions is crucial for implementing a living wage system effectively.
    • Public Awareness Campaigns: Educating both employers and employees about the benefits of a living wage can help shift perceptions and practices within the workforce.

    What are the wage disparities in India?

    • Gender Wage Gap: According to the Global Gender Gap Index 2024, Indian women earn only ₹40 for every ₹100 earned by men, highlighting a significant gender pay disparity.
      • The economic gender parity level in India is recorded at 39.8%, indicating that while some progress has been made, substantial gaps remain in economic participation and remuneration between genders.
    • Regional Wage Disparities: The average daily wage for casual workers in rural areas is approximately ₹104, significantly lower than the national average of ₹247 per day for all workers.
    • Wage Inequality Metrics: The Gini coefficient for wages in India stands at 0.49, indicating a high level of wage inequality. The D9/D1 wage ratio, which compares the earnings of the top 10% to the bottom 10%, is 6.7, underscoring the stark contrast in earnings across different segments of the workforce.

    Note: The D9/D1 wage ratio is a measure of income inequality that compares the earnings of the top 10% of wage earners (D9) to the earnings of the bottom 10% (D1) within a given population

    What policy measures can be taken to address wage disparities and ensure fair compensation? (Way forward)

    • Rationalisation of Regulations: Streamlining regulatory frameworks to reduce bureaucratic hurdles can encourage entrepreneurship and job creation. This includes removing unnecessary jail provisions that deter business operations.
    • Investing in Human Capital: Prioritizing skill development programs aligned with market demands can boost employability and empower workers to secure higher-paying jobs.
    • Encouraging Non-Farm Employment: Policies should focus on fostering private, productive non-farm jobs through digitisation and formalization, paving the way for better wages.
    • Strengthening Redistribution Mechanisms: Adopting progressive taxation on higher profits can fund social programs designed to uplift wage levels across different sectors.
    • Fostering Long-Term Economic Planning: Crafting a comprehensive economic strategy aligned with labour market needs is essential for ensuring sustainable wage growth and effectively addressing disparities.

    Mains PYQ: 

    Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)

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  • Railway Reforms

    The hidden cost of greenwashing the Indian Railways

    Explained | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the news?

    The ‘Mission 100% Electrification’ project is like chasing an unrealistic dream of becoming a green railway, leading to many usable diesel locomotives becoming unnecessary.

    What are the key points of the report? 

    • Export of Repurposed Locomotives: RITES Ltd. is exporting six refurbished broad-gauge diesel locomotives to African railways after complex gauge conversion, marking a first in such re-engineering.
    • Idle Diesel Locomotives: Around 760 diesel locomotives, with over 60% still serviceable, are redundant due to the rapid electrification of the railway network.
    • Limited Environmental and Economic Gains: Electrification reduces only 2% of diesel consumption, while coal-powered electricity (50% of the total) negates environmental benefits, maintaining reliance on polluting sources.
    • Strategic Contradictions: Despite targeting 100% electrification, Indian Railways plans to retain 3,500 diesel locomotives for disaster management and traffic needs, undercutting “green” claims.
    • Policy and Financial Wastage: The rushed electrification drive has led to premature asset redundancy, wasting public funds without ensuring environmental or financial sustainability.

    What constitutes greenwashing in the context of Indian Railways?

    • Misleading Claims of Environmental Benefits: The Indian Railways’ push for 100% electrification is framed as a move towards a “green railway.” However, this initiative overlooks the fact that a significant portion of the electricity generated in India comes from coal-fired power plants, which are environmentally harmful.
      • Thus, the transition from diesel to electric locomotives may merely shift pollution from one source to another without achieving genuine environmental benefits.
    • Redundancy of Serviceable Assets: The decision to electrify the railway network has led to the premature stabling of functional diesel locomotives, many of which have considerable residual life left.
      • This not only represents a waste of resources but also raises questions about the actual motivations behind electrification efforts.
    • Focus on Slogans Over Substance: The Mission 100% Electrification initiative appears to prioritize headline-grabbing goals over comprehensive and well-thought-out policies.
      • This approach can be seen as greenwashing, as it promotes an image of environmental responsibility while failing to address the underlying issues related to energy sourcing and pollution.

    How do greenwashing practices impact public perception and trust?

    • Erosion of Credibility: When organizations like Indian Railways promote initiatives that are not genuinely sustainable, it can lead to public scepticism regarding their commitment to environmental issues.
    • Misallocation of Resources: Public perception may shift towards viewing government initiatives as wasteful or misguided, leading to decreased support for future projects that could have real environmental benefits.
    • Increased Public Scrutiny: Greenwashing practices often lead to increased scrutiny from activists, media, and the public.
      • As stakeholders demand transparency and accountability, organizations may face backlash for failing to deliver on their environmental promises.

    What regulatory measures can be implemented to combat greenwashing in the transportation sector? (Way forward)

    • Clear Guidelines for Environmental Claims: Establishing stringent regulations that define what constitutes legitimate environmental benefits can help prevent misleading claims.
      • Organizations should be required to substantiate their claims with verifiable data and transparent reporting.
    • Mandatory Sustainability Reporting: Implementing requirements for regular sustainability audits and reporting can ensure that transportation entities disclose their actual environmental impact, including emissions data and energy sources used.
    • Public Accountability Mechanisms: Creating independent bodies to assess and review claims made by transportation sectors regarding sustainability initiatives can enhance accountability.
      • These bodies could provide certifications or ratings based on genuine environmental performance rather than promotional claims.
    • Incentives for Genuine Sustainability Efforts: Providing financial incentives or recognition for organizations that implement effective sustainability measures can encourage genuine efforts rather than superficial compliance with green initiatives.

    Mains PYQ: 

    Q Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (2022)

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

    Green hydrogen and the financing challenge

    Explained | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the news?

    India aims to produce 5 million metric tonnes of green hydrogen annually by 2030 to lead in the sector and reduce emissions, but the high costs of financing may hinder this goal.

    Hydrogen fuel comes in three types:

    • Grey hydrogen (produced from natural gas), Blue hydrogen (Grey hydrogen with carbon capture), and Green hydrogen (produced using renewable energy through electrolysis, with no emissions).

    What are the key financial barriers to scaling green hydrogen production?

    • High Production Costs: The cost of producing green hydrogen is significantly higher ($5.30-$6.70 per kg) compared to traditional grey/blue hydrogen ($1.9-$2.4 per kg). This price disparity makes green hydrogen economically uncompetitive and deters investment and offtake.
    • High Weighted Average Cost of Capital (WACC): In emerging markets like India, higher perceived risks increase borrowing costs. This results in a high WACC, which heavily influences the Levelised Cost of Electricity (LCOE) and the overall cost of green hydrogen production.
    • High Electrolyzer Costs: The current costs of electrolyzers, ranging from $500-1,400/kW for alkaline and $1,100-1,800/kW for proton exchange membrane systems, further strain the financial viability of green hydrogen projects.
    • Scaling Challenge: Green hydrogen production costs can only decrease with scaled production, but scaling up requires financial viability. The market faces a catch-22 situation: without economies of scale, production remains expensive, and without lowering costs, scaling is unfeasible.

    How can innovative financing mechanisms be developed?

    • Blended Finance Models: Combining public and private capital can help lower risks and make investments in green hydrogen more attractive. Government-backed financial instruments or concessional loans can reduce borrowing costs, lowering WACC.
    • Green Bonds and Climate Financing: The issuance of green bonds to raise capital for renewable energy projects can provide long-term funding at lower costs. These bonds can appeal to investors with an interest in sustainable investments.
    • Private-Public Partnerships (PPP): Collaborations between government and private sectors can help mitigate risks and ensure the financing of green hydrogen projects. To attract private investors, governments can provide financial support through incentives, subsidies, or tax breaks.
    • Carbon Credits and Offtake Agreements: Green hydrogen projects could leverage carbon credits or long-term offtake agreements to secure steady revenue streams, which would increase investor confidence and help finance production scale-up.

    What role do policy frameworks play in facilitating investment in green hydrogen?

    • Incentives and Subsidies: Government policies offering subsidies, tax incentives, or feed-in tariffs can help offset the high initial costs of green hydrogen production and encourage private investment.
    • Long-Term Policy Clarity: Clear, stable, and long-term policy frameworks provide certainty to investors, reducing perceived risks and lowering the cost of capital. Such policies could include long-term targets for green hydrogen production, financing support, and infrastructure development.
    • Regulatory Support for Innovation: Governments can encourage innovation by providing regulatory frameworks that support new technologies, such as electrolyzers and advanced hydrogen storage solutions, ensuring the rapid scaling of green hydrogen.
    • Market Creation and Demand-Driven Initiatives: Policies that create demand for green hydrogen, such as mandatory usage targets for industries like steel, transportation, or chemicals, can drive off-take agreements and ensure market stability.

    Mains PYQ: 

    Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (2021)

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  • Wildlife Conservation Efforts

    Olive Ridley Turtles

    Species | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    Carcasses of Olive Ridley turtles have been found along the Visakhapatnam coast during their breeding season, raising concerns about their conservation.

    About Olive Ridley Turtles:

    Details
    • Olive Ridley turtles are sea turtles known for their olive-colored carapace.
    • They are carnivorous, primarily feeding on jellyfish, crustaceans, and mollusks.
    • Unique mass nesting behavior (Arribada), where thousands of females lay eggs in synchronized waves on the same beach.
    Their Habitat and Protection Status
    • Found in the warm waters of the Pacific, Atlantic, and Indian Oceans.
    • Largest rookery (breeding colony) is at Gahirmatha Marine Sanctuary, Odisha, India.
    • Other major nesting sites include Devi River mouth (discovered in 1981) and Rushikulya river mouth (discovered in 1994).
    • Protection Status:
    1. IUCN Status: Vulnerable
    2. CITES: Appendix I (No international trade)
    3. Wildlife Protection Act, 1972: Schedule I (Highest level of protection)
    Conservation Efforts
    • Project Olivia by Indian Coastguard to protect the Olive Ridley turtles, especially after the Gahirmatha rookery recognition.
    • Legal protections and environmental regulations safeguard nesting sites and prevent poaching.
    • Olive Ridley Protection Program ensures the safety of nests and hatchlings.

     

    PYQ:

    [2015] Which one of the following is the national aquatic animal of India?

    (a) Saltwater crocodile

    (b) Olive ridley turtle

    (c) Gangetic dolphin

    (d) Gharial

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

    [pib] Telecom Technology Development Fund (TTDF) Program

    Schemes | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    The Telecom Technology Development Fund (TTDF) has facilitated a collaboration between the Centre for Development of Telematics (C-DOT) and Trois Infotech on the development of “Face Recognition Using Drone” technology.

    About Telecom Technology Development Fund (TTDF):

    Details
    • Launched on October 1, 2022 under the Universal Service Obligation Fund (USOF), Ministry of Telecommunications.
    • Supports indigenous telecom technologies, especially for rural communication needs.

    About USOF (Universal Service Obligation Fund) 

    • USOF was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
    • Objective: To provide financial support for telecom services in rural and remote areas that are commercially unviable.
    • A non-lapsable fund, with the levy amount credited for continuous use.
    • Operates as an attached office of the Department of Telecom, headed by an administrator appointed by the Central Government.
    • Initially focused on providing basic telecom services in rural areas at affordable prices.
    • Expanded scope to include mobile services, broadband connectivity, and infrastructure development in rural and remote areas.
    Aims and Objectives
    • Encourage Innovation: Create synergies across stakeholders (startups, R&D, academia) and focus on rural-specific telecom solutions.
    • Bridge the Digital Divide: Provide affordable telecom solutions for rural areas and enhance connectivity.
    • Intellectual Property Creation: Support R&D projects contributing to patentable technologies.
    Key Features and Structural Mandate Funding Mechanism:

    • Grants for Indian startups, research institutes, academia, and telecom companies for R&D on rural telecom solutions.
    • Managed by Department of Telecommunications (DoT) with USOF as the administering body.

    Features:

    • Incentives for Startups: Provides financial incentives for telecom R&D projects from prototype to commercialization.
    • Collaborative Framework: Promotes collaboration between stakeholders such as startups, telecom companies, universities, and R&D centers.
    • PoC and Pilot Support: Encourages proof of concept testing and pilots to validate technological solutions.

     

    PYQ:

    [2019] In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

    1. Ad Hoc Committees set up by the Parliament
    2. Parliamentary Department Related Standing Committees
    3. Finance Commission
    4. Financial Sector Legislative Reforms Commission
    5. NITI Aayog

    Select the correct answer using the code given below:

    (a) 1 and 2
    (b) 1, 3 and 4
    (c) 3, 4 and 5
    (d) 2 and 5

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