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  • Women empowerment issues – Jobs,Reservation and education

    Child Marriage in India

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Context

    There has been an ongoing debate on whether increasing the age of marriages can solve the problem of child marriage in India.

    Background

    • It is defined as a marriage of a girl or boy before the age of 18 and refers to both formal marriages and informal unions in which children under the age of 18 live with a partner as if married.
    • The Prohibition of Child Marriage (Amendment) Bill, 2021, fixes 21 years as the marriageable age for women.

    Prevalence of child marriage in India

    •  NFHS-5 data show that about 25% of women aged 18-29 years married before the legal marriageable age of 18.
    • Marginal decline: The proportion has declined only marginally from NFHS-4 (28%).
    • Higher in rural India: Expectedly, the prevalence is higher in rural than urban India (28% and 17%, respectively).
    • West Bengal has the highest prevalence (42%), followed by Bihar and Tripura (40% each).
    • Oddly, the decline in child marriage has been paltry at best in these high-prevalence States.
    • At the other end of the spectrum are Goa, Himachal Pradesh and Kerala (6% to 7%).
    • 39% of child marriages in India take place among Adivasis and Dalits.
    • The share of advantaged social groups is 17% and the remaining share is of Other Backward Classes.

    Role of structural issues in adverse health and educational outcomes

    • Impact: Studies associate early marriage of women with early pregnancy, lower likelihood of accessing ante-natal care, higher risks of maternal morbidity and mortality, poor nutritional status of women and poor nutritional and educational outcomes of children.
    • These studies seem to provide a rather compelling case for increasing the age of marriage of women from 18 to 21 years, as a delayed marriage might offer significant public health dividends.
    • Structural factors at play: But a closer reading of the evidence shows that the association between child marriage and adverse health outcomes does not emerge in a vacuum. 
    • Rather, it is abetted by structural factors, including social norms, poverty, and women’s education.
    • Role of social norms: It is because of social norms in many regions and cultures that parents begin preparations for a girl’s marriage once she has reached menarche.
    • Role of poverty: A large proportion of child marriages take place primarily because of poverty and the burden of the huge costs of dowry associated with delayed marriages.
    • Role of education:  The NHFS-5 data confirm that a significant proportion of child marriages takes place among women with less than 12 years of schooling and households that are socially and economically disadvantaged.
    • The average age at marriage increases from 17 years among women who are illiterate and have had up to five years of schooling to 22 years among women who have had more than 12 years of schooling.
    • This indicates that an increase in years of schooling goes hand in hand with an increase in age at marriage.
    • While an increase in education is most likely to delay marriage, the increase in age at marriage may or may not increase women’s education.

    Why the age of marriage of women matters

    • Age of marriage has bearing on maternal mortality rates, fertility levels, nutrition of mother and child, sex ratios, and, on a different register, education and employment opportunities for women.
    • It is also argued that other factors — such as poverty and health services — were far more effective as levers for improving women’s and children’s health and nutritional status.
    • Child marriage curtail a girl’s opportunities to continue her education.
    • And in turn, the lack of educational opportunities plays an important role in facilitating child marriage.

    Way forward

    • The fact that about one-fourth of women (18-29 years) in India have married before 18 years despite the law tells us that legally increasing the age of marriage may not fully prevent child marriages. 
    • 1] Ensure education for at least up to 12 years: Much of the benefits can be reaped by ensuring that women complete education at least up to 12 years.
    • Bangladesh shows that improving women’s education and imparting modern skills to them that increase their employability reduces child marriage and improves health and nutrition.
    • 2] Educational attainment criteria in schemes: Schemes which ease the financial burden of marriage but the eligibility criteria of which should essentially link to educational attainment in addition to age demand attention.
    • The lessons from Janani Suraksha Yojana and the zeal demonstrated in ending open defecation might provide valid insights here.

    Conclusion

    A legalistic approach to increasing the age at marriage will produce positive results only if it leads to an improvement in women’s education and skill acquisition for employability. In the absence of an enhancement in women’s schooling or skills, a legalistic approach to ending child marriage might become counterproductive.

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

    International North–South Transport Corridor (INSTC)

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

    Iran started the first transfer of Russian goods to India via a new trade corridor which transits the West Asian nation, people on the Iranian side familiar with the developments told news outlets.

    The cargo will travel through the International North-South Transport Corridor (INSTC).

    What is the news?

    • The cargo ship departed St. Petersburg for the Caspian Sea port city of Astrakhan.
    • It will reach the northern Iranian port of Anzali and then will be transferred by road to the southern port of Bandar Abbas on the Persian Gulf.
    • From Bandar Abbas it will reach via ship to India at Jawaharlal Nehru Port Trust (JNPT).

    International North–South Transport Corridor (INSTC)

    • The INSTC is a 7,200 km-long multimodal transportation network encompassing sea, road, and rail routes to offer the shortest route of connectivity.
    • It was established on 12th September 2000 in St. Petersburg, by Iran, Russia and India for the purpose of promoting transportation cooperation among the Member States.
    • It links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe.
    • It will move freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.

    Significance of INSTC

    • Trade facilitation: INSTC is aimed at reducing the carriage cost between India and Russia by about 30 per cent and bringing down the transit time by more than half.
    • New corridor in making: It has the potential to transform the economies of countries along the corridor into specialized manufacturing, logistics, and transit hubs by facilitating access to newer markets.
    • Multimodal transit: The recent Suez Canal blockade, which cost the global economy hefty damage amounting to US$9 billion, has amplified the optimistic outlook towards the INSTC as a cheaper and faster alternative multimodal transit corridor.

    Benefits offered to India

    • Export promotion: The INSTC connects India with Central Asia, and Russia, and has the potential to expand up to the Baltic, Nordic, and Arctic regions, increasing the scope of trade multifold.
    • Ease of trade: For India, it provides a shorter trade route with Iran, Russia, and beyond to Europe, creating scope for increased economic engagement.
    • Alternative Route to Central Asia: It opens up a permanent alternative route for India to trade with Afghanistan and Central Asia, given the hurdles in the direct route through Pakistan.

     

     

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  • Historical and Archaeological Findings in News

    ASI Act to be made more flexible

    Prelims Only | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Union Culture Minister said the Archaeological Survey of India (ASI) was working on an amendment to make the law that provides for the preservation of monuments and archaeological sites “more flexible and people-friendly”.

    What is the news?

    • The ASI is working to amend Ancient Monuments and Archaeological Sites and Remains (AMASR) Act 1958.
    • It particularly seeks to change the current 100-metre prohibited area around protected monuments to site-specific limits.

    What is the AMASR Act?

    • The AMASR Act provides for the preservation of ancient and historical monuments and archaeological sites and remains of national importance.
    • It also provides for the regulation of archaeological excavations and for the protection of sculptures, carvings and other like objects.
    • The Archaeological Survey of India (ASI) functions under the provisions of this act.
    • The rules stipulate that area in the vicinity of the monument, within 100 metres is prohibited area.
    • The area within 200 meters of the monument is regulated category. Any repair or modifications of buildings in this area requires prior permission.

    About Archaeological Survey of India (ASI)

    • The ASI is an attached office of the Ministry of Culture.
    • It was founded in 1861 by Alexander Cunningham who also became its first Director-General.
    • Under the provisions of the AMASR Act of 1958, the ASI administers more than 3650 ancient monuments, archaeological sites and remains of national importance.
    • These can include everything from temples, mosques, churches, tombs, and cemeteries to palaces, forts, step-wells, and rock-cut caves.
    • The Survey also maintains ancient mounds and other similar sites which represent the remains of ancient habitation.
    • The ASI is headed by a Director-General who is assisted by an Additional Director General, two Joint Directors General, and 17 Directors.

     

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  • Indian Army Updates

    What is Agnipath Scheme?

    Schemes | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    Defence Minister announced the ‘Agnipath’ scheme for the recruitment of youth in the armed forces for four years.

    Agnipath Scheme

    • This will be the only form of recruitment of soldiers into the three defence services from now.
    • The scheme aims at strengthening national security and for providing an opportunity to the youth to serve in the armed forces.
    • Recruits under the scheme will be known as ‘Agniveers’.
    • After completing the four-year service, they can apply for regular employment in the armed forces.
    • They may be given priority over others for various jobs in other government departments.
    • The move is expected to decrease the average age profile of armed forces personnel from the current 32 to 24-26 years over a period of time.

    Working of the scheme

    • The process of recruitment will commence in 90 days with a planned intake of 46,000 young men and women this year.
    • Enrolment to all three services will be through a centralized online system, with special rallies and campus interviews at recognized technical institutes.
    • Recruitment will be carried out on an “All India All Class” basis with the eligibility age ranging from 17.5 to 21, with medical and physical fitness standards in accordance with existing norms.

    Payouts of the Agniveers

    • The ‘Agniveers’ will receive an annual package of ₹4.76 lakh in the first year to ₹6.92 lakh in the fourth year, apart from risk and hardship and other allowances as applicable.
    • Under the ‘Seva Nidhi’ package, they will receive about ₹11.71 lakh, including contribution and interest, on completion of service.
    • The recruits will have to contribute 30% of their monthly emoluments to Seva Nidhi, with a matching contribution made by the government.
    • There will be no entitlement to gratuity and pension benefits under the scheme.
    • However, the ‘Agniveers’ will be provided a non-contributory life insurance cover of ₹48 lakh during their service.

     

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  • Foreign Policy Watch: The BCIM Corridor

    [pib] BIMSTEC Technology Transfer Facility (TTF)

    IOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    The Union Cabinet chaired by the PM has approved a Memorandum of Association (MoA) by India for the establishment of the BIMSTEC Technology Transfer Facility (TTF).

    What is BIMSTEC?

    • The BIMSTEC formed in 1997 is an international organisation of seven South Asian and Southeast Asian nations, housing 1.73 billion people and having a combined gross domestic product of $3.8 trillion (2021).
    • The BIMSTEC member states – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand – are among the countries dependent on the Bay of Bengal.
    • Leadership is rotated in alphabetical order of country names. The permanent secretariat is in Dhaka, Bangladesh.
    • A BIMSTEC free trade agreement is under negotiation (c. 2018), also referred to as the mini SAARC.

    What is BIMSTEC TTF?

    • The agreement was signed by the BIMSTEC member countries at the 5th BIMSTEC Summit held at Colombo, Sri Lanka on 30th March, 2022.
    • The main objectives of the BIMSTEC TTF are to coordinate, facilitate and strengthen cooperation in technology transfer among the BIMSTEC Member States.
    • It aims to promote the transfer of technologies, sharing of experiences and capacity building.
    • The TTF shall have a Governing Board and the overall control of activities of the TTF shall be vested in the Governing Board.
    • The Governing Board shall consist of one nominee from each Member State.

    Expected outcomes

    The expected outcomes of the BIMSTEC TTF are:

    • Databank of technologies available in BIMSTEC Countries,
    • Repository of information on good practices in the areas of technology transfer management, standards, accreditation, metrology, testing and calibration facilities,
    • Capacity building, sharing of experiences and good practices in development, and
    • Transfer and use of technologies among BIMSTEC countries.

     

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  • Women empowerment issues – Jobs,Reservation and education

    Nanhi Pari Programme

    Schemes | Governance | Mains Paper 2: Government Scheme/Policies

    The ‘Nanhi Pari’ programme was recently launched by the Northwest Delhi district administration.

    Nanhi Pari Programme

    • Nanhi Pari programme aims to provide a one-stop solution to parents, eliminating their need to visit various offices to obtain documents.
    • Under the programme, essential services such as the provision of a birth certificate, Aadhaar card registration and opening a bank account for girls are completed and delivered in government hospitals in the district before the mother and baby are discharged.
    • The programme will help in getting registration of baby girls and mothers under various schemes such as the Sukanya Samriddhi Account scheme, the Ladli scheme and Pradhan Mantri Matru Vandana Yojana at the hospital itself.

    Significance of the Programme

    • The programme makes the processes for schemes as simple as possible for all children and mothers.
    • Parents would not have to go from here to there, trying to avail themselves of the essential schemes.
    • Apart from ensuring that schemes reach target beneficiaries and protecting the interests of girl children, the programme also aims to promote institutional deliveries.

     

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  • BRICS Summits

    China wants a larger BRICS to challenge the existing international order

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Context

    A virtual meeting of BRICS+ foreign ministers was held on May 20 in which the ministers of Brazil, Russia, India, China, and South Africa (BRICS) were joined by representatives from Argentina, Egypt, Indonesia, Kazakhstan, Nigeria, the UAE, Saudi Arabia, Senegal, and Thailand.

    About BRICS

    • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
    • The BRICS Leaders’ Summit is convened annually.
    • It does not exist in form of organization, but it is an annual summit between the supreme leaders of five nations.
    • The grouping was formalized during the first meeting of BRIC Foreign Ministers on the margins of the UNGA in New York in September 2006.
    • The first BRIC Summit took place in 2009 in the Russian Federation and focused on issues such as reform of the global financial architecture.
    • South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
    • South Africa subsequently attended the Third BRICS Summit in Sanya, China, in March 2011.
    • The Chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.

    What are the factors leading to the expansion of BRICS?

    • Ukraine war and hardened Western positions: The disruption in the international order, heightened by Russia’s invasion of Ukraine and the hardening of Western positions, are leading to the making of competitive plurilateral fora.
    • Russia and China have decided that this is an opportune time to expand BRICS and challenge the domain of the G7 by including members from the G20. 
    • China is challenging Western influence over countries and wants to use BRICS to that end.
    • China is taking the lead and setting the agenda for BRICS expansion.
    • The New Development Bank associated with BRICS, expanded membership in 2021, admitting Bangladesh, the UAE, Uruguay and Egypt
    •  This shows the Chinese determination for an expansion process on its watch.

    Criteria and the process of inducting new members into BRICS and challenges

    • Prioritise G20 members: The first likely criteria will be to prioritise G20 members.
    • Among the recent guests of the BRICS+ virtual meeting, Argentina, Indonesia and Saudi Arabia would qualify for this category.
    • From among Mexico, Indonesia, Korea, Turkey and Australia (MIKTA), only Indonesia was invited.
    • Thus, China, backed by Russia, is creating cleavages to choose its friends from among the G20 and beyond
    • Emerging economy: Another criteria which could come up would be an emerging economy status and adherence to BRICS objectives.
    • The push for setting criteria is actually a battle to choose partners who are more amenable to the individual members of the current BRICs.
    • Russia and China would prefer to have Indonesia, Kazakhstan, Saudi Arabia, UAE and Argentina excluding Egypt since it is a close ally of the US.
    • Brazil would have a say on including Argentina – the two countries have a longstanding rivalry in Latin America.
    • If Argentina is excluded, it may unravel the G20 membership criteria for inclusion in the BRICS.
    • South Africa has views on Nigeria and, particularly, Egypt. Being a member of G20 gives it leadership in Africa.
    • Being in the BRICS gave it heft as the African representative.
    • If Nigeria and Egypt are admitted, South Africa would no more be the African representative in the BRICS.
    • New Development Bank membership: The UAE and Egypt could utilise their membership of NDB as a qualifier.
    • There could be an easier consensus on Indonesia because India is unlikely to oppose it as its relationship has been improving politically, even if not economically.
    • On Kazakhstan, the decision would be that of Russia and China and how they deal with the other Central Asian countries.
    • China may also back Iran and Malaysia but then Indonesia may feel a loss of uniqueness.
    • A consensus with Brazil and South Africa for members from their regions will be critical.

    Way forward for India

    • Membership of the UAE and Saudi Arabia: The UAE and Saudi Arabia are two countries with whom India has rapidly enhanced its engagement and are good contributors to development.
    • Having them in the BRICS could be of advantage to India.
    • Both countries have a longstanding relationship with the US, but seek to diversify and would not be averse to joining BRICS.
    • Avoid BRICS expansion on Chinese terms: China, backed by Russia, is hastening the process of expansion of BRICS as part of its strategic challenge to the international order and to collect middle powers around them.
    • India needs to ensure that expansion is not on Chinese terms and that the countries admitted are equally receptive to India.
    • Bilateral engagement with them should see this perception built up.
    • Consultations on criteria and members must be strong.
    • Leverage ISBA: IBSA may act as a phalanx within BRICS to prevent China from running away with the expansion agenda over the views of other members.

    Conclusion

    Since Russia is simply with Chinese priorities, it’s time for the IBSA trilateral of democracies within BRICS to assert itself.

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    Back2Basics: What is the fundamental difference between ISBA, BRICS and BASIC?

    • IBSA is between three democracies – India, Brazil and South Africa wanting to engage in deeper economic aspects and discuss security related issues.
    •  BASIC includes Brazil, South Africa, India and China.
    • These three expressions of multilateralism steer clear from articulating the softer aspects of foreign policy like refugee rights or human rights invoking the ‘sovereignty’ clause with domestic political sanctity paramount.
    • BRICS comprises Brazil, Russia, India, China and South Africa.
    • Russia is a democracy with its political spectrum anchoring around an individual.
    • China is a socialist country, successful by implementing economic reforms that do not agree with the basic tenets of socialism/communism.

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  • Russian Invasion of Ukraine: Global Implications

    Lessons from the Ukraine crisis price shock

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Context

    The Russia-Ukraine conflict, now more than three months old, will cause major, long-term shifts in the global energy and commodity trade.

    Factors responsible for high prices

    • Ukraine war: Western sanctions on Russia and efforts of European nations to diversify their energy supplies are already causing market distortions and high prices.
    • Crude oil prices are at their highest level since 2014; the price of LNG is at its highest ever, fertiliser and food are up and markets for several other commodities such as nickel have been disrupted.
    • Expensive commodities are already causing distress in India’s neighbourhood, for example, in Sri Lanka and Pakistan.
    • Insufficient investment: Insufficient investment in oil and gas production in preceding years resulted in high prices, and shortages were being felt.
    • A number of European investors, such as Norway’s sovereign wealth fund, announced they would no longer invest in traditional fuels — oil, gas, coal.
    • Natural gas is used as a feedstock for fertiliser.
    • An energy shock is then inevitably followed by a food price shock.

    Future trends

    1] Strained EU-Russia relations will distort prices

    • In the immediate term, the EU is trying to source its raw materials — most critically oil and natural gas, but also fertiliser, agricultural goods and metals — from non-Russian sources.
    • This will cause distortions and price spikes for those commodities in the global market, as can already be seen in the natural gas market, up 300 per cent in the last year.

    2] Sanctions are unlikely to achieve the desired political outcome

    • The US and its allies are quick to impose sanctions — and these are rarely withdrawn, if ever.
    • Iran has been under US sanctions since 1979, and the same with Venezuela for over a decade.
    • In both cases, sanctions have failed to achieve the desired political outcome.
    • As Russia is much better placed than either of those two countries to weather sanctions, the restrictions are likely to remain for a long while.

    3] Emerging world unwilling to align with West on sanctions

    • The high price of energy and the resulting inflation shows why much of the emerging world is unwilling and unable to align with the West on the current sanctions.
    • Russia is 11 per cent of the global landmass and among the world’s top five producers and exporters of oil, gas, fertiliser and other critical commodities like nickel.
    • It is too big to be replaced as a supplier.
    • In emerging economies, it can fan public anger and political unrest, as was seen in Tunisia and other Arab countries from 2010 on.

    4] Larger emerging economies will disregard sanction

    • Larger emerging economies such as China, India and Brazil will disregard sanctions on their key economic interests, particularly food, fertilisers and energy.
    • Specifically for India, its dependence on these essentials is unlikely to reduce meaningfully over the next 15-20 years.

    Way forward for India

    • Collaborate with other economies: In the immediate future, the India should collaborate with other similar economies to ensure that Russia doesn’t get locked out of global commodity markets.
    • Work on insulating the supply chains: For the long term, it must work on insulating its supply chains from global political crises.

    Conclusion

    India needs to brace for the price shock emanating from the distortion caused by the shift in the energy policies of Europe. At the same time, India needs to collaborate with other similar economies to ensure that Russia doesn’t get locked out of global commodity markets.

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  • Upholding the right to repair

    | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Context

    The U.S. state of New York recently passed the Fair Repair Act, which requires manufacturers to supply repair information, tools, and parts to independent repair shops and not just their own stores or partners.

    What is the right to repair?

    • It refers to proposed government legislation that would allow consumers the ability to repair and modify their own consumer products (e.g. electronic, automotive devices).
    • The idea behind “right to repair” is in the name: If you own something, you should be able to repair it yourself or take it to a technician of your choice.
    • People are pretty used to this concept when it comes to older cars and appliances, but right-to-repair advocates argue that modern tech, especially anything with a computer chip inside, is rarely repairable.

    Why is such right significant?

    • Lifespan enhancement: The goal of the movement is to increase the lifespan of products and to keep them from ending up in landfills.
    • Against planned obsolescence: The electronic manufacturers are encouraging such culture so that devices are designed specifically to last a limited amount of time and to be replaced.
    • Scarcity of natural resources: Obsolescence leads to immense pressure on the environment and wasted natural resources.
    • Mitigating climate change: Manufacturing an electronic device is a highly polluting process. It makes use of polluting sources of energy, such as fossil fuel.
    • Boost to repair economy: Right to repair advocates also argue that this will help boost business for small repair shops, which are an important part of local economies.

    Why we need the right to repair?

    • Exorbitant repair price: Often, manufacturers reduce the durability of the product, compelling consumers to either repurchase the product or get it repaired at exorbitant prices affixed by the manufacturers.
    • Violation of rights: This tramples upon the right to obtain information about the quality of the product, the right to procure products at reasonable prices, and the right to seek redress against unscrupulous practices.
    • Implicit in Consumer Protection Act: The ‘right to repair’ can be said to be implicit in Section 2(9) of the Consumer Protection Act, 2019.
    • Right to repair provides consumers with the right to repair and refurbish their purchased goods.
    • Providing livelihood to repair technicians: An entire repair class is, in effect, denied its right to conduct business as it does not have the tools, parts, guidelines and technical know-how to repair these high-tech products.
    • In addition to protecting their right to livelihood, it may also prove beneficial as tech companies are required to share their repair manuals with certified technicians.

    What are the concerns of the manufacturers?

    • IP rights, security and quality concers: While right to repair is a victory for consumer rights, privacy, security and quality concerns along with blatant intellectual property (IP) rights violations of the manufacturers cannot be sidelined.
    • Impact on quality and functioning: Manufacturers claim that the quality and functioning of the product might be adversely affected if they allow repairs by consumers and third parties.
    • The fear of manufacturers is so potent that they incorporate warranty clauses which lapse when the product is repaired by a third party.

    Way forward

    • Avoiding blanket waiver: While necessary clauses to maintain the quality of the product can be included, a blanket waiver should be avoided.
    • For instance, the quality assurance clause can be incorporated for use of company-recommended spare parts and certified repair shops.
    • Making available the repair manual: Making repair manuals available to certified business owners could go a long way in balancing the rights of consumers and manufacturers.
    • Sign non-disclosure agreement to protect IP rights: Manufacturers can sign a non-disclosure agreement to protect the IP with the certified repairers/businesses.
    • Alloting certification/license: Further, the lack of certification/licensing of repair workers is seen as a reflection of their lack of skills.
    • But a repair certification/licence can be allotted to those who pass certain criteria and skill tests.
    • Insert right to repair in Consumer protection Act: The ‘right to repair’ can be said to be implicit in Section 2(9) of the Consumer Protection Act, 2019.
    • Its apparent disregard merits an explicit insertion of a ‘right to repair’ clause in the said provision.
    • This would make consumers more aware, provide tooth to an already implicit right, and aid in advancing repair-related liability on various stakeholders.
    • Reparability parameter: The product liability clause under Section 84 can be amended and expanded to impose product liability concerning various reparability parameters of the product.
    • France requires manufacturers to display a repairability index on their products which consists of five parameters.
    • Duration of product liability: The duration of imposing product liability may vary depending on the product and its longevity.
    • Here, we can rely on the EU’s guidelines on Ecodesign for Energy-Related Products and Energy Information Regulations, 2021, which mandate manufacturers to provide spare parts for up to 10 years to avoid premature obsolescence.

    Conclusion

    The New York legislation is a reminder that it is time to not only acknowledge the right to repair of consumers but also respond to the corresponding rights of the manufacturers.

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  • Coal and Mining Sector

    Coal Shortages in India

    op-ed snap | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Context

    The recent power crisis due to the coal shortage in India underscores the need for measures to avoid a repeat of episodes in the future.

    Factors contributing to power crisis

    • Spike in power demand: With the sudden early onset of summer in 2022, power demand spiked, riding on the back of the post-Covid economic recovery.
    • Increase in price due to Ukraine crisis: The matter was further exacerbated by the Ukraine conflict, which led to a sharp increase in the price of imported coal.
    • Consequently, power stations designed on imported coal stopped importing because it was no longer economical for them to generate, given their contract price with the distribution companies.
    • Availability of railway rakes: It’s not that domestic coal was not available since enough stock had been built in the mines.
    • The issue was of availability of railway rakes for transportation.

    What were the measures taken by the government ?

    • 1] Import of coal to 10 per cent: First, all generators have been asked to import coal to the extent of 10 per cent (as against 4 per cent earlier) and that half of this should be physically available by the end of June.
    • CIL as aggregator: Coal India will function as the aggregator on behalf of the generators.
    • CIL functioning as the aggregator is a better idea and it may be able to import at a cheaper cost by accumulating demand as well as standardising the coal grade to be procured.
    • Moreover, it would be easier for regulators to calculate the revised energy charge since the price at which coal was imported would be well-documented.
    • 2] Section 11 of the Electricity Act 2003 (Act) invoked: Under this section, the government directed imported coal-based plants to run at full capacity with the assurance that their enhanced cost of operation would be compensated.
    • 3] Tolling: The government invoked the concept of tolling, which allowed states to transfer their allotted coal to private generators located near the mines instead of transporting it to far away state generators.
    • This move would ease the burden on the availability of railway rakes.
    • 4] Seeking the consent of beneficiaries for hike: the government issued policy directions to the Central Electricity Regulatory Commission (CERC) overriding CERC’s regulations that made it mandatory to seek the consent of beneficiaries if the tariff went up by more than 30 per cent, if some alternate fuel is used.
    • 5]  Committee to rework the energy charge: A committee of officials was set up to rework the energy charge for imported coal-based generators.
    • 6] Additional working capital: The government is cognisant of the fact that there is a need for additional working capital and has advised REC/PFC as well as commercial banks to arrange for this.

    Issues with the measures

    • Use of Section 11: The government invoked Section 11 to give  direction to private generators to import coal at a higher cost.
    • Section 11(1) allows the government to give direction to a generation company to operate and maintain a generating station in extraordinary circumstances.
    • Section 11(2) of the Act mentions that the adverse financial impact on generating compacy due to directions referred to in sub-section (1) would be offset by the regulator.
    • Going by Section 11(2), the government should have left the job of working out the energy charge to the regulator instead of setting up a committee of officials to do so though, of course, the CERC was represented in the committee.
    • 2] No transparency: The committee has already worked out the revised energy costs for six of the plants but there is no transparency regarding the coal cost assumed, its calorific value, transportation cost, etc.
    • 3] Additional rakes: We have to bear in mind that the coal problem arose because of the non-availability of rakes.
    • With 38 MT of coal to be imported by October this year, and half of that by end of June, the need for rakes will not only go up but would be front-loaded.
    • We need the requisite number of rakes otherwise, we are back to where we began.

    Conclusion

    While the government is taking steps to increase coal imports and addressing the other issues, it must ensure that domestic production does not dip during monsoon season.

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