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  • What is Purchasing Managers Index (PMI)?

    India’s manufacturing sector experienced its slowest expansion in September since June, the S&P Global India Manufacturing Purchasing Managers’ Index (PMI) indicated, with the index easing to 55.1 from August’s 56.2.

    PMI improves

    • A PMI reading above 50 indicates an increase in firms’ activity levels, and September marked the 15th straight month of growth in manufacturing activity.

    Purchasing Managers’ Index (PMI)

    • PMI is an indicator of business activity — both in the manufacturing and services sectors.
    • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
    • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
    • The PMI is compiled by IHS Markit based on responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

    How is the PMI derived?

    • The PMI is derived from a series of qualitative questions.
    • Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

    How does one read the PMI?

    • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
    • Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
    • If the figure is higher than the previous month’s then the economy is expanding at a faster rate.
    • If it is lower than the previous month then it is growing at a lower rate.

    What are its implications for the economy?

    • The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available.
    • It is, therefore, considered a good leading indicator of economic activity.
    • Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
    • Central banks of many countries also use the index to help make decisions on interest rates.

     

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  • Medicine Nobel for Work on Human Evolution

    Swedish scientist Svante Paabo won the Nobel Prize in medicine for his discoveries on human evolution that provided key insights into our immune system and what makes us unique compared with our extinct ancestors.

    Svante Paabo: His work, explained

    • Svante Paabo’s seminal discoveries provide the basis for exploring what makes us uniquely human.
    • Hominins refer to the now-extinct species of apes that are believed to be related to modern humans, as well as modern humans themselves.
    • Paabo found that gene transfer had occurred from these now extinct Hominins to Homo sapiens following the migration out of Africa around 70,000 years ago.
    • This ancient flow of genes to present-day humans has physiological relevance today, for example affecting how our immune system reacts to infections.
    • Paabo established an entirely new scientific discipline, called paleogenomics that focuses on studying the DNA and genetic information of extinct hominins through reconstruction.

    What is the relation between evolution and biology?

    • Paabo’s discoveries have established a unique resource, which is utilized extensively by the scientific community to better understand human evolution and migration.
    • We now understand that archaic gene sequences from our extinct relatives influence the physiology of present-day humans.

    How did Paabo establish the linkage?

    • Paabo extracted DNA from bone specimens from extinct hominins, from Neanderthal remains in the Denisova caves of Germany.
    • The bone contained exceptionally well-preserved DNA, which his team sequenced.
    • It was found that this DNA sequence was unique when compared to all known sequences from Neanderthals and present-day humans.
    • Comparisons with sequences from contemporary humans from different parts of the world showed that gene flow, or mixing of genetic information among a species, had also occurred between Denisova and Homo sapiens – the species of modern-day humans.
    • This relationship was first seen in populations in Melanesia (near Australia) and other parts of South East Asia, where individuals carry up to 6% Denisova DNA.
    • The Denisovan version of the gene EPAS1 confers an advantage for survival at high altitudes and is common among present-day Tibetans.

    What are the challenges in carrying out such research?

    • There are extreme technical challenges because with time DNA becomes chemically modified and degrades into short fragments.
    • The main issue is that only trace amounts of DNA are left after thousands of years, and exposure to the natural environment leads to contamination with DNA.

    Back2Basics: Neanderthal Man

    neanderthal

    • Neanderthals were humans like us, but they were a distinct species called Homo Neanderthalensis.
    • Together with an Asian people known as Denisovans, Neanderthals are our closest ancient human relatives. Scientific evidence suggests our two species shared a common ancestor.
    • Current evidence from both fossils and DNA suggests that Neanderthal and modern human lineages separated at least 500,000 years ago. Some genetic calibrations place their divergence at about 650,000 years ago.
    • The best-known Neanderthals lived between about 130,000 and 40,000 years ago, after which all physical evidence of them vanishes.
    • They evolved in Europe and Asia while modern humans – our species, Homo sapiens – were evolving in Africa.

     

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  • Light Combat Helicopter (LCH) Prachand inducted into IAF

    lch

    The indigenous Light Combat Helicopter LCH-Prachand was formally inducted into the Indian Air Force (IAF).

    LCH- Prachand

    • The LCH has been designed as a twin-engine, dedicated combat helicopter of 5.8-ton class, thus categorized as light.
    • It features a narrow fuselage and tandem — one behind the other — configuration for pilot and co-pilot. The co-pilot is also the Weapon Systems Operator (WSO).
    • While LCH inherits many features of the ALH-Dhruv, it mainly differs in tandem cockpit configuration, making it sleeker.
    • It also has many more state-of-art systems that make it a dedicated attack helicopter.

    Features, the significance of LCH

    • LCH has the maximum take-off weight of 5.8 tonnes, a maximum speed of 268 kilometers per hour, range of 550 kilometers.
    • It has endurance of over three hours and service ceiling the maximum density altitude to which it can fly — of 6.5 kilometres.
    • LCH is powered by two French-origin Shakti engines manufactured by the HAL.

    Combat capabilities

    • The helicopter uses radar-absorbing material to lower radar signature and has a significantly crash-proof structure and landing gear.
    • A pressurised cabin offers protection from nuclear, biological and chemical (NBC) contingencies.
    • With these features, the LCH has the capabilities of combat roles such as destruction of enemy air defence, counter-insurgency warfare, combat search and rescue, anti-tank, and counter surface force operations.

    Why need indigenous LCH?

    • It was during the 1999 Kargil war that the need was first felt for a homegrown lightweight assault helicopter that could hold precision strikes in all Indian battlefield scenarios.
    • This meant a craft that could operate in very hot deserts and also in very cold high altitudes, in counter-insurgency scenarios to full-scale battle conditions.
    • India has been operating sub 3 ton category French-origin legacy helicopters, Chetak and Cheetah, made in India by the HAL.

     

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  • Jal Jeevan Mission

    Around 62% of rural households in India had fully functional tap water connections under the Jal Jeevan Mission.

    Jal Jeevan Mission

    • Jal Jeevan Mission, a central government initiative under the Ministry of Jal Shakti, aims to ensure access to piped water for every household in India.
    • The mission’s goal is to provide all households in rural India with safe and adequate water through individual household tap connections by 2024.
    • The Har Ghar Nal Se Jal program was announced by FM in the Budget 2019-20 speech.
    • This programme forms a crucial part of the Jal Jeevan Mission.
    • It is a central sector scheme with the Centre funding 50% of the cost with States and UTs, except for UT without a legislature, and 90% for NE and Himalayan states.

    Note: A fully functional tap water connection is defined as a household getting at least 55 litres of per capita per day of potable water all through the year.

    Components of the mission

    The following key components are supported under JJM-

    • Development of in-village piped water supply infrastructure to provide tap water connection to every rural household
    • Bulk water transfer, treatment plants and distribution network to cater to every rural household
    • Technological interventions for removal of contaminants where water quality is an issue
    • Retrofitting of completed and ongoing schemes
    • Greywater management

    Progress of the scheme

    • Tamil Nadu, Himachal Pradesh, Goa, and Puducherry reported more than 80% of households with fully functional connections.
    • However, less than half the households in Rajasthan, Kerala, Manipur, Tripura, Maharashtra, Madhya Pradesh, Mizoram and Sikkim had such connection.
    • Close to three-fourths of households received water all seven days a week and 8% just once a week.
    • On average, households got water for three hours every day, and 80% reported that their daily requirements of water were being met by the tap connections.

     

     

  • 3rd October 2022 | Prelims Daily with Previous Year Questions

    3rd October 2022 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1128]

    [WpProQuiz_toplist 1128]

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  • Building Strong Fundamentals for IAS 2023-24: Mastering Current Affairs and NCERTs | Dimple’s Masterclass. Open to all. Register for FREE

    Building Strong Fundamentals for IAS 2023-24: Mastering Current Affairs and NCERTs | Dimple’s Masterclass. Open to all. Register for FREE

    Register to get the recorded session.

    Click and register for dimple maam’s masterclass | (FREE) open to all

    Masterclass attendees will get a special FREE preparatory package for you. Details here.

    UPSC CSE is considered the toughest exam in the world but the nature of the exam is such that it doesn’t require any specialized study in the major part of the paper (GS papers- both Prelims and Mains). It is believed that if the fundamentals are strong, it must take just one attempt to clear it.

    This is evident from the trend of many first-timers, just out of college, being able to clear in the first attempt.

    The nature and standard of questions in the General Studies papers will be such that a well-educated person will be able to answer them without any specialized study. The questions will be such as to test a candidate’s general awareness of a variety of subjects, which will have relevance for a career in Civil Services. The questions are likely to test the candidate’s basic understanding of all relevant issues, and ability to analyze, and take a view on conflicting socio-economic goals, objectives and demands. The candidates must give relevant, meaningful and succinct answers (in the mains)

    From UPSC’s Official Notification


    This highlights the necessity of building a strong foundation for the exam. Since current affairs constitute the bulk of the questions both in Prelims and Mains, and the rest of the questions from static concepts covered in standard books, especially NCERTs, you need to have a great command over these two.

    You will get the opportunity for 1-1 discussion with Dimple ma’am

    Dimple ma’am will be taking up a (FREE) Open to all Masterclass on 3rd October 2022 at 7:30 pm

    Table of content:

    1. The necessity of building strong fundamentals
    2. Details of the Masterclass
    3. FREE Preparatory package
    CLICK & REGISTER FOR THE MASTERCLASS BY dimple ma’am | mastering current affairs and ncerts

    ..strong fundamentals can’t be built only by reading and reading. Do a comparative study with current affairs and brush NCERTs accordingly up. IAS 2023 will be yours.

    Dimple, Senior Faculty @ CivilsDaily

    UPSC Masterclass Details: 3rd October, (Monday) at 7:30 PM.

    Important topics to be discussed in the Masterclass by Dimple ma’am, Senior Faculty @ Civilsdaily.

    • Covering and focussing on Essential NCERTs and standard books. How to make a comparative study, how to maintain balancing revision, etc from both.
    • How to cover current affairs for Prelims and Mains? Current affairs are changing all the time so, how to cope with current affairs like toppers will also be discussed.
    • Making notes: Reflecting the beauty of current affairs, how to try to provide yourself with productive, knowledgeable, and integrated information about topics as broad as Indian society, foreign affairs, and Govt schemes, Etc. 
    CLICK & REGISTER FOR THE MASTERCLASS BY dimple ma’am | mastering current affairs and ncerts
    • The untold secret of ‘how & from where UPSC asks direct questions from NCERTs. Because of how thin they are but they are the ones who carry the solutions to all our problems.
    • How to build command over NCERTs is going to be another crucial point of this awesome session.
    • As per the changing pattern whether only CBSE NCERTs of class XI and XII are important or Tamil Nadu NCERTs also to be good to follow will be discussed elaborately.
    • Is UPSC asking more and more offbeat current affairs questions? If yes, how to deal with and what is the one-stop solution source to prepare for UPSC’s current affairs?
    • How NCERTs help us to comprehend whether a current affairs topic is important or not. How to build an impenetrable fundamental concept to make an ‘Intelligent Guessing’.
    • Along with NCERTs how many advanced reference books are actually needful? 
    • Whether it is UPSC Prelims or mains, how to cover NCERTs, how to revise and memorize current affairs, etc. all very very important facts will be thoroughly discussed in this masterclass.

    What you’ll get as a part of the Special Preparatory Package?

    As a part of this Masterclass by Shubham sir you are entitled to these:

    1. FREE Mentorship session with Senior IAS Mentor on strategy and approach for UPSC 2023
    2. Samachar Manthan’s current week’s module and Mains Questions
    3. Prelims Weekly MCQ PDF
    4. Mains 250+ Value notes
    5. Current month’s Monthly Magazine

    Register for the Masterclass, we’ll email you the above content on registration.

    CLICK & REGISTER FOR THE MASTERCLASS BY dimple ma’am | mastering current affairs and ncerts

    About Dimple Chouhan

    Dimple Chouhan is a senior IAS faculty at CivilsDaily. She has been mentoring UPSC aspirants for 4 years now and has mentored 150+ aspirants to Prelims success.

    You will get a chance to discuss 1-1 with Dimple ma’am in the Masterclass.

    What The Hindu mentioned about Civilsdaily Mentorship

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  • 3rd October 2022| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1          Salient features of world’s physical geography.

    GS-2          Important aspects of governance, transparency and accountability, e-governance applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures. 

    GS-3          Various Security forces and agencies and their mandate. 

    GS-4        Ethical concerns and dilemmas in government and private institutions; laws, rules, regulations and conscience as sources of ethical guidance

    Question 1)

     

    Q.1 What do you mean by temperature inversion? Highlighting the suitable conditions for temperature inversion, discuss its multidimensional impacts. (10 Marks)

     

    Question 2)

    Q.2 Social audit is a good instrument for participatory governance and transparency, but it has limitations. Identify the limitations and suggest measures for increasing the effectiveness and usefulness of social audit. (10 Marks)

    Question 3)

    Q.3 The Government’s decision to create the post of a Chief of Defence Staff (CDS), a long-pending demand to bring in tri-service synergy and integration, is touted as one of the biggest top-level military reforms since independence. Highlighting the role of the CDS, evaluate the challenges ahead. (15 Marks)

    Question 4)  

    Q.4 If a law is unjust, a man is not only right to disobey it, he is obligated to do so. Discuss. (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  February is uploaded on 11th February then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th February is uploaded on 13th February , then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    1. For the philosophy of AWE and payment: 
    CLICK HERE To join Daily AWE

  • Satellite Broadband Services in India

    satellite broadband

    The race for providing satellite broadband connectivity in India is heating up as companies like Jio, Oneweb, Hughes and Tata-backed Nelco are preparing to provide these services.

    Recent developments on satellite broadband

    • Earlier last month, Hughes Communications India (HCI), a satellite internet service provider launched India’s first high throughput satellite (HTS) broadband service powered by ISRO satellites.
    • It used Ku-band capacity from ISRO GSAT-11 and GSAT-29 satellites with Hughes JUPITER Platform ground technology to deliver high-speed broadband.

    What is a Satellite Broadband Service?

    • Broadband essentially means a wide bandwidth, high-capacity data transmission technique, using a broad range of frequencies.
    • In the case of a satellite broadband service, broadband services are delivered directly via satellites instead of optical fibre or mobile networks.

    How is it different from existing broadband services?

    (1) Transmission of data over space

    • The main difference is that aggregation of all the data generated and transmitted by users accessing the internet happens in the sky or space that is in the satellite.
    • In contrast to this, if we take a look at cellular networks, aggregation happens on the ground, in the base stations through optical fibre, cable, etc.

    (2) Access to the services

    • Another key difference is that to access satellite services, we will need a dish antenna just like we do in the case of TV services, so a normal mobile handset cannot directly access satellite broadband.
    • For a user to access satellite broadband a clear line of sight to the satellite is needed.

    Advantages offered

    • Speed: The main advantage of satellite services is that you can provide high-speed internet services in remote areas, where terrestrial networks cannot be set up.
    • Eliminating terrain shortcomings: For instance in the middle of the ocean, in rugged unreachable terrain such as the Himalayas — even as remote as on top of Mt. Everest, satellite broadband will work.
    • Curbing the divide: In a country with a wide range of geographies such as India, 20-25 per cent of the Indian population resides in areas where it is extremely hard for terrestrial operators to install internet facilities.

    Present scope in India

    • Currently, VSAT operators offer satellite broadband services at a very limited capacity in India in a few remote locations.
    • The utilisation of satellite services for broadband services is restricted to minimal applications — such as disaster management, defence, scientific locations, etc.

    How India (undoubtedly, the ISRO) has geared up for adapting to this?

    • ISRO’s high throughput GEO (Geostationary Equatorial Orbit) satellites – GSAT-11 and GSAT-29 a few years ago, can beam high-speed internet up to 300 gigabytes per second.
    • Apart, many global players look to provide satellite broadband services in India by deploying low earth orbit (LEO) satellites.
    • They are launching a constellation of satellites very close to the earth’s surface in order to reduce the latency of satellite broadband.
    • Presently, Elon Musk’s Starlink, Sunil Bharti Mittal-backed OneWeb and the Canadian satellite major Telesat are eyeing the Indian market.

    When will these services be available in India?

    • If things go as planned and the players get the necessary regulatory clearance, these services could become operational in India as soon as next year.
    • OneWeb wants to provide backhaul services to telcos by mid-next year, while Starlink wants to provide direct broadband services by December 2022, aiming at 2 lakh terminals.
    • Telesat, on the other hand, is eyeing an India launch by 2024.

    How much will it cost?

    • The provision of direct broadband services through satellites will be pricey.
    • According to a user guide for India, provided by Starlink, the first-year cost of a Starlink terminal will be ₹1,58,000 after which it will cost around ₹1,15,000 every year.

    Has it been rolled out in other parts of the world?

    • Starlink is operational in 14 countries, with 1 lakh terminals shipped to North America and Europe.
    • Starlink and OneWeb are still launching satellites that will be a part of their LEO constellation.

    What are the major hurdles?

    • Latency: Additionally, satellite Internet latency can be a significant problem. This can be a matter of only a second or two, but a delay on that scale can seriously affect real-time applications like video chats.
    • Spatial hurdles: Users might not be able to connect to a satellite at all if they are located under heavy foliage or surrounded by other obstructions.
    • Limited bandwidth: Satellite data transfer provides very slow Internet speeds and limited satellite bandwidth because of the distances the signals have to travel and all the potential obstacles in between.
    • Connection times: This can also be impacted by your surroundings, the length of your message, and the status and availability of the satellite network.
    • High input cost: This along with the complex equipment like satellite dishes being used to avail these services makes the service expensive.

    Perspective analysis: Why is India itself lagging in this race?

    • Globally, companies are striving to build and deploy “mega-constellations” of hundreds or thousands of satellites for this.
    • Despite India’s impressive achievements in the space sector, growth has been at snail’s pace.
    • Satellite broadband services in India remains primarily for the B2B sector with a market size of roughly $100 million.

    Reason’s for India’s slow pace

    • Upgrade issues: The Indian networks are still using conventional satellites despite the proliferation of high throughput satellites world-over.
    • Lack of domestic industries: There is a lack of domestic participation for building space infrastructure despite ‘Make in India’ mission.

    Way forward

    • An urgent re-look at deregulation and privatization is required.
    • Advanced space-faring nations have privatized most of these blocks in the value chain.
    • There is a need for building systems to help nurture the industry and create an extensive ecosystem to generate a ‘Space 2.0’ in India.

     

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  • Natural Gas: The energy future of India

    Natural GasContext

    • The announcement at the end of August by the ministry of petroleum that they had constituted a committee, headed by energy expert Kirit Parikh, to review the domestic natural gas pricing regime.

    Background

    • Prime Minister Narendra Modi wants to raise the share of gas in India’s energy mix to 15% by 2030 from 6.2%, helping it progress towards meeting a 2070 net zero carbon-emission goal.

    What is Natural Gas?

    • Natural gas is a fossil fuel source consisting primarily of methane. It is the cleanest fossil fuels among the available fossil fuels.
    • It is used as a feedstock in the manufacture of fertilizers, plastics and other commercially important organic chemicals as well as used as a fuel for electricity generation, heating purpose in industrial and commercial units.
    • Natural gas is also used for cooking in domestic households and a transportation fuel for vehicles.

    Natural GasWhy Natural gas is Important?

    • Energy Efficient:Natural gas produces more energy than any of the fossil fuels in terms of calorific value.
    • Cleaner fuel: Natural gas is a superior fuel as compared with coal and other liquid fuels being an environment-friendly, safer and cheaper fuel.
    • Economy of use: Natural Gas (as CNG) is much cheaper compared with petrol or Diesel.
    • Emission commitments: India made a commitment to COP-21 Paris Convention in December 2015 that by 2030, it would reduce carbon emission by 33%-35% of 2005 levels.
    • Diverse applications: Natural gas can be used as domestic kitchen fuel, fuel for the transport sector as well as a fuel for fertilizer industries and commercial units.
    • Supply chain convenience: Natural Gas is supplied through pipelines just like we get water from the tap. There is no need to store cylinders in the kitchen and thus save space.
    • Pacing up the progress line: On the global front,switching to natural gas is bringing commendable results.The latest report released by IEA shows that the electricity produced by natural gas worldwide was more than that of coal for the first time ever.

    Natural gas scenario in India

    • Domestic Gas Sources: The domestic gas in the country is being supplied from the oil & gas fields located at western and southeastern areas viz. Hazira basin, Mumbai offshore & KG basin as well as North East Region (Assam & Tripura).
    • Import of Liquefied Natural Gas (LNG): In order to meet the gas demand, LNG is imported through the Open General License (OGL) in the country.  At present, India is having six operational LNG regasification terminals at Dahej, Kochi, Mundra, Ennore etc.
    • Gas Pipelines :
    • Gas Pipeline infrastructure is an economical and safe mode of transporting natural gas by connecting gas sources to gas-consuming markets.
    • An interconnected National Gas Grid has been envisaged to ensure the adequate availability and equitable distribution of natural gas in all parts of the country.
    • Pricing:
    • To incentivise gas producers and boost local output, since 2014 India has linked local gas prices to a formula tied to global benchmarks, including Henry Hub, Alberta gas, NBP and Russian gas.
    • In 2016, the country began fixing the ceiling prices of gas produced from ultra-deep water and challenging fields and allowed marketing freedom to the operators of these fields.

    Natural asStatistics of Natural gas in India

    • Current consumption: India’s natural gas consumption is expected to grow by eight per cent year-on-year to around 34,949 million standard cubic meters (MSCM) in the current calendar year aided by expanding infrastructure, strong GDP growth projections, and supportive government policy.
    • 2021 Consumption: In the 2021 calendar year (CY), the country’s natural gas demand stood at 32,360 MSCM. The share of domestic gas and imported RLNG was about 48% & 52% respectively. The City Gas Distribution (CGD) accounts for the largest consumption of natural gas followed by fertilizers, power and other industrial sectors
    • High prices: The state-set local gas prices and ceiling rates are at a record high and are expected to rise further due to a surge in global gas prices triggered by the Ukraine-Russia conflict.

    Kirit Parikh Committee

    • Objective: Ensuring fair prices to end consumers, and to suggest a market oriented, transparent and reliable pricing regime for India’s long term vision for ensuring a gas based economy.
    • Members: The committee,headed by energy expert Kirit Parikh, will include members from the fertiliser ministry, as well as gas producers and buyers.Four of the six members are from the public sector.

    Natural GasWhat are the problems facing India’s natural gas reserves?

    • Harsh topography: IHS CERA has estimated India has undiscovered gas resources of approximately 64 TCF The bulk of this is, however, in harsh topography and complex geology. These reserves are difficult to locate.
    • Distant from the market:Even if located,they are difficult to bring to market on economically viable terms. This is because the cost of creating the development and production infrastructure is massive.
    • Heavy Budget: The reality is India is a high-risk exploration play. There are inherent geologic, technical, and economic obstacles to achieving commercial success.
    • Administered Pricing: Constraint of administered pricing petroleum companies have reduced their exploration budgets under pressure to shift away from fossil fuels.

    What can be done?

    • Pricing freedom: It should clear up the existing complexity and, other than for producers of gas from nomination blocks, permit all producers of gas to determine prices through arms length,direct and transparent negotiations with different consumer segments.
    • Subsidies: There are no liquefaction facilities for the export of LNG in India. Subsidies may have to be provided but if so,they should be given directly by the government,through the exchequer. The gas producers must not be asked to bear that brunt.

    Conclusion

    • In the wake of the Ukraine crisis, the international energy market has undergone a profound transformation.India has made impressive progress towards clean energy. It has,however, a long way to go before it can fully wean itself off fossil fuels.

    Mains Question

    Q. It is evident that clean energy transitions are underway and it’s also a signal that we have the opportunity to meaningfully move the needle on emissions through more ambitious policies and investments in natural gas regime. Comment

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  • Food security and Climate change:The Interlink

    Food securityContext

    • In pursuance of the earlier announcement of additional food security under PMGKAY, the Union Cabinet has approved the extension for the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY-Phase VII) for a further period of 3 months from October to December 2022.

    What is Climate Change?

    • United Nations defines Climate change as long-term shifts in temperatures and weather patterns. These shifts may be natural, such as through variations in the solar cycle. But since the 1800s, human activities have been the main driver of climate change, primarily due to burning fossil fuels like coal, oil and gas

    What is food security?

    • The Food and Agriculture Organization (FAO)defines food security as , when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.

    Food securityPradhan Mantri Garib Kalyan Anna Yojana?

    • Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) is a scheme as part of Atmanirbhar Bharat to supply free food grains to migrants and poor.
    • Phase-I and Phase-II of this scheme was operational from April to June, 2020 and July to November, 2020 respectively.
    • The PMGKAY scheme for Phase VI from April-September, 2022 would entail an estimated additional food subsidy of Rs. Rs. 80,000 Crore.

    How food security and climate change are interlinked?

    • Extreme events: India is going to have extreme events such as heatwaves, droughts, floods, etc of increasing intensity and frequency.
    • Rising GHGs emission: We may keep blaming developed economies and ask for climate justice, yet we will have to act fast and boldly to correct our own policies that increase GHG emissions and aggravate the situation.
    • Subsidies: Power provided at next-to-nothing prices, free water and highly subsidised fertilisers especially urea are some of the policies that are damaging the natural environment.
    • Food ecosystem: Food security is one of the leading concerns associated with climate change. Climate change affects food security in complex ways. It impacts crops, livestock, forestry, fisheries and aquaculture, and can cause grave social and economic consequences in the form of reduced incomes, eroded livelihoods, trade disruption and adverse health impacts.

    Food securityWhy food security is a matter of concern?

    • Fiscal deficit: The fiscal deficit of the Centre may go higher than provisioned in the Budget for FY23. The finance ministry not supporting the extension of this free food beyond September was, economically, a rational recommendation. More so as Covid-19 is behind us and the economy is back to its normal level of activity.
    • Depleting stocks: The PMGKAY was announced in April 2020 in the wake of the pandemic’s first wave. At that time, it was perhaps necessary to support all those who lost their jobs. But doubling free rations depleted the bulging stocks of grains. Now with wheat procurement having plummeted, there is a concern about whether stocks are enough to curb inflationary expectations in the country.
    • Less harvest: To replenish wheat stocks in FCI godowns, the government will have to raise the minimum support price (MSP) of wheat quite substantially. For rice, the current stocks are ample, but given the monsoon vagaries, the forthcoming rice harvest is estimated to be about 7 million tonnes less.
    • Rising MSP: PMGKAY will be difficult to extend beyond December without putting an undue burden on MSPs and the fiscal deficit.
    • Other reasons:
    1. Inflation: Even though the RBI has raised the repo rate by 50 basis points, the probability of inflation, as measured by the consumer price index (CPI), remaining higher than the central bank’s tolerance band is increasing by the day.
    2. Depreciating Rupee: The RBI has already spent more than $80 billion to support the rupee, and there are limits to which it can go. And, if RBI tries to hold the rupee artificially high, it will adversely hit Indian exports, widening the current account deficit and putting further pressure on the rupee. The best that RBI can and should do is to avoid a sudden and abrupt fall in the rupee, but also let it find its natural level given what is happening globally, especially in the currency markets.
    3. Long haul: The risks of higher inflation from the falling rupee remain and are likely to continue for at least one year, if not more.

    Food securityWhat can we do?

    • Increasing foreign exchange reserves: Government have to have innovative policies to promote exports and attract more foreign direct investment (FDI).
    • Fixing Issue price: fix the issue prices of PDS supplies at half the MSP and limit the PDS coverage to 30 per cent of the bottom population.
    • On rupee fall: The best that RBI can and should do is to avoid a sudden and abrupt fall in the rupee, but also let it find its natural level given what is happening globally, especially in the currency markets.
    • Use of technology: If we have to tame food inflation, we will have to invest more in climate-smart agriculture, in precision farming, with high productivity and less damage to natural resources.
    • Right ecosystem: Science and technologies can, of course, help us, but they cannot be scaled in a perverse policy ecosystem.
    • Adoption of sustainable agricultural practices: India needs to step up public investment in development and dissemination of crop varieties which are more tolerant of temperature and precipitation fluctuations and are more water and nutrient efficient.
    • Management of water resources: A four pronged strategy is recommended for the water sector; Increase irrigation efficiency, Promote micro irrigation in water-deficient areas, Better water resource infrastructure planning, Restoration of water bodies in rural areas, Stronger emphasis on public health.
    • Long-term relief measures in the event of natural disasters: A recent report by NITI Aayog suggests that the government should transfer a minimum specified sum of cash to affected farmers and landless workers as an instant relief. For richer farmers who may want insurance above this relief, the report recommends a separate commercially viable crop insurance programme.

    Conclusion

    • So far India has done well to tame the food inflation as compared to other developed and developing economies. Present policy of RBI burning the FOREX and government increasing the deficit is unsustainable in long run. Food security needs to be insured by climate resilient policies for long term sustenance.

    Mains Question

    Q.Climate change is a growing concern that threatens sustainable development in addition to food security and inflation. Discuss

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