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  • Ethanol Blending

    Prime Minister has announced that India has achieved its target of blending 10% sugarcane-extracted ethanol in petrol, ahead of schedule.

    What is ethanol blending?

    • Blending ethanol with petrol to burn less fossil fuel while running vehicles is called ethanol blending.
    • Ethanol is an agricultural by-product which is mainly obtained from the processing of sugar from sugarcane, but also from other sources such as rice husk or maize.
    • Currently, 10% of the petrol that powers your vehicle is ethanol.
    • Though we have had an E10 — or 10% ethanol as policy for a while, it is only this year that we have achieved that proportion.
    • India’s aim is to increase this ratio to 20% originally by 2030 but in 2021, when NITI Aayog put out the ethanol roadmap, that deadline was advanced to 2025.

    Why need ethanol blending?

    • Ethanol blending will help bring down our share of oil imports (almost 85%) on which we spend a considerable amount of our precious foreign exchange.
    • Secondly, more ethanol output would help increase farmers’ incomes.
    • India’s net import of petroleum was 185 million tonnes at a cost of $55 billion in 2020-21.
    • A successful ethanol blending programme can save the country $4 billion per annum.

    What are first-generation and second-generation ethanols?

    • With an aim to augment ethanol supplies, the government has allowed procurement of ethanol produced from other sources besides molasses — which is first-generation ethanol or 1G.
    • Other than molasses, ethanol can be extracted from materials such as rice straw, wheat straw, corn cobs, corn stover, bagasse, bamboo and woody biomass, which are second-generation ethanol sources or 2G.
    • While inaugurating the Indian Oil Corporation’s (IOC) 2G ethanol plant last week, PM referred to not only the prospect of higher farmer income but also dwelt upon the advantages of farmers selling the residual stubble — left behind after rice is harvested — to help make biofuels.
    • This means lesser stubble burning and therefore, lesser air pollution.

    How have other countries fared?

    • Though the U.S., China, Canada and Brazil all have ethanol blending programmes, as a developing country, Brazil stands out.
    • It had legislated that the ethanol content in petrol should be in the 18-27.5% range, and it finally touched the 27% target in 2021.

    How does it impact the auto industry?

    • At the time of the NITI Aayog report in June last year, the industry had committed to the government to make all vehicles E20 material compliant by 2023.
    • This meant that the petrol points, plastics, rubber, steel and other components in vehicles would need to be compliant to hold/store fuel that is 20% ethanol.
    • Without such a change, rusting is an obvious impediment.

    Are there other alternatives?

    • Auto industry prefer the use of biofuels as the next step, compared to other options such as electric vehicles (EV), hydrogen power and compressed natural gas.
    • This is mainly because biofuels demand the least incremental investment for manufacturers.
    • Even though the industry is recovering from the economic losses bought on by the pandemic, it is bound to make some change to comply with India’s promise for net-zero emissions by 2070.

    What are the challenges before the industry when it comes to 20% ethanol blended fuel?

    • Key challenge is the optimisation of engines for higher ethanol blends and the conduct of durability studies on engines and field trials before introducing E20 compliant vehicles.
    • Storage is going to be the main concern, for if E10 supply has to continue in tandem with E20 supply, storage would have to be separate which then raises costs.

    Sources for ethanol in India

    The plan was to divert its excess sugar production to produce ethanol, 3.5 million tonnes in 2021-22 and 6 million tonnes the next year, in addition to grains like rice, corn, and barley.

    • Using surplus rice: The government’s food department revealed its plans to divert 17 million tonnes of surplus rice from its food stocks of 90 million tonnes to produce ethanol.
    • Sugarcane: This is in addition to the 2 million tonnes of sugar which is already being diverted to produce ethanol.

    How would this benefit the country?

    • Cost saving: A successful biofuels programme can save India $4 billion or about ₹30,000 crore every year by lowering import of petroleum products.
    • Emission cut: Ethanol is also less polluting and offers equivalent efficiency at a lower cost than petrol.
    • Biofuel’s policy boost: Rising production of grains and sugarcane and feasibility of making vehicles compliant to ethanol-blended fuel makes its biofuels policy a strategic requirement.
    • Early rollout: Towards this, govt has put in place interest subsidies for distilleries to expand capacity while auto firms have agreed to make compatible vehicles.

    What are the unintended effects of the policy?

    • Unsustainability of cash-crops: Increasing reliance on biofuels can push farmers to grow more water-intensive crops like sugarcane and rice.
    • Huge water requirement: Currently use 70% of the available irrigation water, negating some positive impact on the environment of using more ethanol.
    • Food and nutrition security: The move could impact India’s hunger situation by limiting the coverage of the food security schemes.
    • Food inflation: Diversion of mass consumption grains can also push food prices up.

    How will it impact crop diversification?

    • Monotonous crops: Although the biofuels policy stresses on using less water-consuming crops, farmers prefer to grow more sugarcane and rice due to price support schemes.
    • Water stress: Growing more of them can lead to an adverse impact in water-stressed areas in states.

    What about food security?

    • It is unethical to use edible grains to produce ethanol in a country where hunger is rampant.
    • India is already a poor performer in Global Hunger Index.
    • Although about 80 crore people are now receiving subsidized food grains, calculations show that over 10 crore eligible households are still excluded.

     

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  • Practice of talaq-e-hasan not so improper: Supreme Court

    The Supreme Court has prima facie observed that the Muslim personal law practice of talaq-e-hasan is “not so improper”.

    What is Talaq-e-hasan?

    • Talaq-e-hasan is a form of divorce by which a Muslim man can divorce his wife by pronouncing talaq once every month over a three-month period.

    Why did the apex court say this?

    • The SC Bench said a Muslim woman has the option to divorce by the process of khula by returning the dower (mahr) or something else that she received from her husband or without returning anything.
    • This can be as per agreed by the spouses or Qadi’s (court) decree depending on the circumstances.

    Petitioner’s contention

    • The petitioner argued that talaq-e-hasan and other forms of unilateral extra-judicial divorce is an evil plague similar to sati.
    • Talaq-e-hasan is arbitrary, irrational and contrary to Articles 14, 15, 21 and 25 and international conventions on civil rights and human rights, the petition submitted.
    • There should be a gender neutral, religion neutral, uniform grounds of divorce and uniform procedure of divorce for all citizens, it read.
    • The petitioner argued that the practice in question was “neither harmonious with the modern principles of human rights and gender equality nor an integral part of Islamic faith”.
    • The practice discriminates against Muslim women as they cannot resort to it against their husbands.

    Why in news?

    • The apex court, while striking down triple talaq in the Shayara Bano case, did not address the issue of talaq-e-hasan.
    • The unilateral practice of divorce was is definitely defies morality.

     

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  • African cheetahs still stuck in transit

    India’s ambitious project to translocate African cheetahs has missed an unofficial deadline of August 15.

    Asiatic Cheetah

    • Cheetah, the world’s fastest land animal was declared extinct in India in 1952.
    • The Asiatic cheetah is classified as a “critically endangered” species by the IUCN Red List, and is believed to survive only in Iran.
    • It was expected to be re-introduced into the country after the Supreme Court lifted curbs for its re-introduction.

    Distribution of cheetahs in India

    • Historically, Asiatic cheetahs had a very wide distribution in India.
    • There are authentic reports of their occurrence from as far north as Punjab to Tirunelveli district in southern Tamil Nadu, from Gujarat and Rajasthan in the west to Bengal in the east.
    • Most of the records are from a belt extending from Gujarat passing through Maharashtra, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Jharkhand and Odisha.
    • There is also a cluster of reports from southern Maharashtra extending to parts of Karnataka, Telangana, Kerala and Tamil Nadu.
    • The distribution range of the cheetah was wide and spread all over the subcontinent. They occurred in substantial numbers.
    • The cheetah’s habitat was also diverse, favouring the more open habitats: scrub forests, dry grasslands, savannahs and other arid and semi-arid open habitats.

    What caused the extinction of cheetahs in India?

    • The major reasons for the extinction of the Asiatic cheetah in India:
    1. Reduced fecundity and high infant mortality in the wild
    2. Inability to breed in captivity
    3. Sport hunting and
    4. Bounty killings
    • It is reported that the Mughal Emperor Akbar had kept 1,000 cheetahs in his menagerie and collected as many as 9,000 cats during his half-century reign from 1556 to 1605.
    • The cheetah numbers were fast depleting by the end of the 18th century even though their prey base and habitat survived till much later.
    • It is recorded that the last cheetahs were shot in India in 1947, but there are credible reports of sightings of the cat till about 1967.

    Conservation objectives for their re-introduction

    • Based on the available evidence it is difficult to conclude that the decision to introduce the African cheetah in India is based on science.
    • Science is being used as a legitimising tool for what seems to be a politically influenced conservation goal.
    • This also in turn sidelines conservation priorities, an order of the Supreme Court, socio-economic constraints and academic rigour.
    • The issue calls for an open and informed debate.

    Issues in re-introduction

    • Experts find it difficult whether the African cheetahs would find the sanctuary a favorable climate as far as the abundance of prey is concerned.
    • The habitat of cheetahs is needed to support a genetically viable population.

     

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  • Super Vasuki: India’s longest train

    The Railways conducted a test run of its longest freight train, Super Vasuki, with 295 loaded wagons carrying over 27,000 tonnes of coal.

    Super Vasuki

    • The 3.5-km-long freight train covered the distance of about 267 km between Korba in Chhattisgarh and Rajnandgaon in Nagpur.
    • It was run by the South East Central Railway (SECR).
    • The Railways plans to use this arrangement (longer freight trains) more frequently, especially to transport coal in peak demand season to prevent fuel shortages in power stations.

    Feats achieved

    • This is the longest and heaviest freight train ever run by the Indian Railways.
    • The train takes about four minutes to cross a station.
    • The amount of coal carried by Super Vasuki is enough to fire 3,000 MW of power plant for one full day.
    • This is three times the capacity of existing railway rakes (90 cars with 100 tonnes in each) that carry about 9,000 tonnes of coal in one journey.

     

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  • fiscal federalism in India

    Context

    The centralisation of fiscal powers in India has been blamed for the poor fiscal health of the states.

    Centralisation of fiscal powers: A background

    • Jawaharlal Nehru believed that socio-economic inequities could be addressed through the planning process.
    • A degree of centralisation in fiscal power was required to address the concerns of socio-economic and regional disparities.
    • As a result asymmetric federalism is inherent to the Indian Constitution.
    • India was never truly federal — it was a ‘holding together federalism’ in contrast to the ‘coming together federalism,’ in which smaller independent entities come together to form a federation (as in the United States of America).
    • In fact, the Government of India Act 1935 was more federal in nature than the Constitution adopted on January 26, 1950 as the first offered more power to its provincial governments.
    • Historically, India’s fiscal transfer worked through two pillars, i.e., the Planning Commission and the Finance Commission. 
    • But the waning of planning since the 1990s, and its abolition in 2014, led to the Finance Commission becoming a major means of fiscal transfer as the commission itself broadened its scope of sharing all taxes since 2000 from its original design of just two taxes — income tax and Union excise duties.
    •  Today, the Finance Commission became a politicised institution with arbitrariness and inherent bias towards the Union government.
    • Tamil Nadu government constituted a committee under Justice P.V. Rajamannar in 1969, the first of its kind by a State government, to look at Centre-State fiscal relations and recommend more transfers and taxation powers for regional governments.

    Declining fiscal capacity of the states

    • While States lost their capacity to generate revenue by surrendering their rights in the wake of the Goods and Services Tax (GST) regime, their expenditure pattern too was distorted by the Union’s intrusion, particularly through its centrally sponsored schemes.
    • The ability of States to finance current expenditures from their own revenues has declined from 69% in 1955-56 to less than 38% in 2019-20.
    • While the expenditure of the States has been shooting up, their revenues did not.
    • Stagnant revenue: Since States cannot raise tax revenue because of curtailed indirect tax rights — subsumed in GST, except for petroleum products, electricity and alcohol — the revenue has been stagnant at 6% of GDP in the past decade.

    Implications of fiscal centralisation in India

    • Use of non-divisive cess: Even the increased share of devolution, mooted by the Fourteenth Finance Commission, from 32% to 42%, was subverted by raising non-divisive cess and surcharges that go directly into the Union kitty.
    •  This non-divisive pool in the Centre’s gross tax revenues shot up to 15.7% in 2020 from 9.43% in 2012, shrinking the divisible pool of resources for transfers to States.
    • Cut in the corporate tax: The recent drastic cut in corporate tax, with its adverse impact on the divisible pool, and ending GST compensation to States have had huge consequences.
    • States paying high interest rates: States are forced to pay differential interest — about 10% against 7% — by the Union for market borrowings.
    • Centrally sponsored schemes curbing autonomy:  There are 131 centrally sponsored schemes, with a few dozen of them accounting for 90% of the allocation, and States required to share a part of the cost.
    • They spend about 25% to 40% as matching grants at the expense of their priorities.
    • These schemes, driven by the one-size-fits-all approach, are given precedence over State schemes, undermining the electorally mandated democratic politics of States.
    • In fact, it is the schemes conceived by States that have proved to be beneficial to the people and that have contributed to social development.
    • Driven by democratic impulses, States have been successful in innovating schemes that were adopted at the national level.
    • The diversion of a State’s own funds to centrally sponsored schemes, thereby depleting resources for its own schemes, violates constitutional provision.
    • Deepening inequality: The World Inequality Report estimates ‘that the ratio of private wealth to national income increased from 290% in 1980 to 555% in 2020, one of the fastest such increases in the world.
    • The poorest half of the population has less than 6% of the wealth while the top 10% nearly grab two-third of it’.
    • India’s tax-GDP ratio has been one of the lowest in the world — 17% of which is well below the average ratios of emerging market economies and OECD countries’ about 21% and 34%, respectively.
    • Its income tax base has been very narrow.
    • Indirect tax still accounts for about 56% of total taxes.
    • Instead of strengthening direct taxation, the Union government slashed corporate tax from 35% to 25% in 2019 and went on to monetise its public sector assets to finance infrastructure.

    Conclusion

    In sum, India’s fiscal federalism driven by political centralisation has deepened socio-economic inequality, belying the dreams of the founding fathers who saw a cure for such inequities in planning. It has not altered inter-state disparities either.

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  • 17th August 2022| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1        Salient features of Indian Society, Diversity of India.

    GS-2        Mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.

    GS-3        Cyber Security

    GS-4      Attitude: content, structure, function; its influence and relation with thought and behaviour; moral and political attitudes; social influence and persuasion.

    Question 1)

     

    Q.1 Critically assess the government’s move on raising the age of marriage of women in India from 18 to 21 years. (10 Marks)

     

    Question 2)

    Q.2 In view of the recent Parliamentary Standing Committee report, discuss the issues faced by the National Commission for Scheduled Tribes (NCST) and suggest measures that can be adopted to strengthen it. (10 Marks)

    Question 3)

    Q.3 Highlighting the vulnerability of India’s critical infrastructure to cyber attacks, discuss the various steps taken by the government to boost cyber security. (10 Marks)

    Question 4)  

    Q.4 Distinguish between attitude and behaviour. How attitude of an individual influence its behaviour? (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.

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    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*. 

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  • Labour welfare necessity

    Context

    • One of the biggest economic fallout of the pandemic has been the deteriorating labour market conditions.
    • In the years ahead when the health crisis subsides and the economy witnesses a rebound, the healing of the labour market may take some more time. This is because the impact of recovery on this market is always felt with a lag.
    • Given the ebb and flow of the pandemic, the growth recovery is likely to be fragmented and will weigh on the number and types of jobs available.

    Definition

    • Labour welfare relates to taking care of the well-being of workers by employers, trade unions, governmental and non-governmental institutions and agencies.
    • Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages.

    What are labour rights?

    • Labour rights or workers’ rights are both legal rights and human rights relating to labour relations between workers and employers. These rights are codified in national and international labour and employment law. In general, these rights influence working conditions in relations of employment.

    Why labour law is needed

    • Labour law aims to correct the imbalance of power between the worker and the employer; to prevent the employer from dismissing the worker without good cause; to set up and preserve the processes by which workers are recognized as ‘equal’ partners in negotiations about their working conditions etc.

    Constitutional mandate

    • Article 41 – The state shall within the limits of its economic capacity and development make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement and in other cases of underserved want.
    • Article 42 – The state shall make provision for securing just and humane conditions of work and for maternity relief.

    Necessity for welfare

    • There were only 25 million during the initial period of industrial growth, while the strength of the workers is increasing year after year and hence, need for a mechanism to look into the welfare of the labour.
    • Workers put in long hours of work in unhealthy surrounding and the drudgery of the factory work continues to have adverse effect. To counter these welfare measures were felt necessary.
    • As a result of hardwork, they fall prey to alchoholism, gambling and other immoral activities results in absenteeism and other problems in the organisation. Hence the need was felt.

    Scope for labour welfare in India

    • Contribute to the productivity of labour and efficiency of the enterprise.
    • Raise the standard of living of workers by indirectly reducing the burden on their purse.
    • Be in tune and harmony with similar services obtaining in a neighbouring community where an enterprise is situated.
    • Be based on an intelligent prediction of the future needs of industrial work and be so designed as to offer a cushion to absorb the shock of industrialization and urbanization
    • Be administratively viable and essentially development in outlook.

    Government steps in this direction

    • Social Security Measures: The social security measures would help man to face the contingencies as such it is difficult for him either to work or to get work and support himself and his family. Thus social security measure provides a self balancing social insurance or assistance from public funds.
    • Social Insurance: is described as the giving in return for contribution, benefits up to subsistence level, as of right and without a means test, so that an individual may build freely upon it.
    • Social Assistance: is provided as an supplement to social insurance for those needy persons who cannot get social insurance payments and is offered after a means test.
    • Public Service: is a programme constituting the third main type of social security. They are financed directly by the government from its general revenues in form of cash payments or services to every member of the community falling within a defined category.

    Case study of Finland

    • Universal basic income pilot project: For two years Finland’s government gave 2,000 unemployed citizens €560 a month with no strings attached. It was the first nationwide basic income experiment. The concept is slowly becoming difficult for people to ignore.

    Challenges in labour welfare in India

    • Technical glitches: Under the Constitution of India, Labour is a subject in the concurrent list where both the Central and State Governments are competent to enact legislation. As a result, a large number of labour laws have been enacted catering to different aspects of labour e.g. occupational health, safety, employment etc.
    • Loopholes: Because of the predominantly heavy-handed labour regulations (also called as Inspector Raj) with exploitable gaps, the MNCs and domestic organizations have resorted to alternate ways i.e. employing contract labour at less than half the payroll of a permanent employee.
    • Gaps in labour laws: One of the main reasons for labour reforms is the concept of contract labour. Trade Unions suggest that this concept itself should be removed. There is stringent hiring and firing process defined in Industry Disputes Act. It makes it mandatory for the organization to seek Government permission before removing an employee.

    Conclusion

    • Labour Welfare helps labourers improve their working conditions, providing social security and raising their standard of living.
    • Raise the employee’s morale use the workforce more effectively besides removing dissatisfaction help to develop loyalty in workers towards the organization.

    Mains question

    Q.What is labour welfare according to you? Why it is needed? Explain the challenges in front of Indian labour reforms.

     

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  • Justice Lalit appointed 49th CJI

    Justice Uday Umesh Lalit was appointed the 49th Chief Justice of India (CJI) after President Droupadi Murmu signed his warrant of appointment.

    How is CJI selected?

    • Justice U.U. Lalit is the senior-most judge in the Supreme Court now.
    • The ‘Memorandum of Procedure of Appointment of Supreme Court Judges’ says “appointment to the office of the CJI should be of the seniormost Judge of the SC considered fit to hold the office”.
    • The process begins with the Union Law Minister seeking the recommendation of the outgoing CJI about the next appointment.

    What is the time frame?

    • The Minister has to seek the CJI’s recommendation at the “appropriate time”.
    • The Memorandum does NOT elaborate or specify a timeline.

    Making final appointment

    The Memorandum says:

    1. Receipt of the recommendation of the CJI
    2. The Union Minister of Law, Justice and Company Affairs will put up the recommendation to the PM
    3. PM will advise the President in the matter of appointment
    4. President of India appoints the CJI

    Chief Justice of India: A brief background

    • The CJI is the chief judge of the Supreme Court of India as well as the highest-ranking officer of the Indian federal judiciary.

    Appointment

    • The Constitution of India grants power to the President to nominate, and with the advice and consent of the Parliament, appoint a chief justice, who serves until they reach the age of 65 or until removed by impeachment.
    • Earlier, it was a convention to appoint seniormost judges.
    • However, this has been broken twice. In 1973, Justice A. N. Ray was appointed superseding 3 senior judges.
    • Also, in 1977 Justice Mirza Hameedullah Beg was appointed as the chief justice superseding Justice Hans Raj Khanna.

    Qualifications

    The Indian Constitution says in Article 124 (3) that in order to be appointed as a judge in the Supreme Court of India, the person has to fit in the following criteria:

    • He/She is a citizen of India and
    • has been for at least five years a Judge of a High Court or of two or more such Courts in succession; or
    • has been for at least ten years an advocate of a High Court or of two or more such Courts in succession; or
    • is, in the opinion of the President, a distinguished jurist

    Functions

    • As head of the Supreme Court, the CJI is responsible for the allocation of cases and appointment of constitutional benches which deal with important matters of law.
    • In accordance with Article 145 of the Constitution and the Supreme Court Rules of Procedure of 1966, the chief justice allocates all work to the other judges.

    On the administrative side, the CJI carries out the following functions:

    • maintenance of the roster; appointment of court officials and general and miscellaneous matters relating to the supervision and functioning of the Supreme Court

    Removal

    • Article 124(4) of the Constitution lays down the procedure for removal of a judge of the Supreme Court which is applicable to chief justices as well.
    • Once appointed, the chief justice remains in the office until the age of 65 years. He can be removed only through a process of removal by Parliament as follows:
    • He/She can be removed by an order of the President passed after an address by each House of Parliament supported by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present.
    • The voting has been presented to the President in the same session for such removal on the ground of proven misbehavior or incapacity.

     

     

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  • Open Network for Digital Commerce (ONDC)

    US firm Microsoft has become the first big tech company to join the Open Network for Digital Commerce (ONDC).

    What does Microsoft joining ONDC mean?

    • Microsoft getting on board the ONDC wagon means the project gets its first international marquee name ahead of its Bengaluru launch.
    • A number of participants are currently live on the ONDC network, offering a number of services in the e-commerce supply chain such as buying, selling and offering logistics services.

    Who else is on board

    • Among those that are live are Paytm, which has joined the platform as a buyer, and Reliance-backed Dunzo, which is offering logistics services for hyperlocal deliveries.
    • Companies like Kotak, PhonePe, Zoho and Snapdeal are in the “advanced stage of development”, according to the ONDC website.
    • Axis Bank, HDFC Bank and Airtel have already initiated integration with the network.
    • According to some media reports, e-commerce giants Flipkart and Amazon are also considering joining the network.

    What is ONDC?

    • ONDC seeks to promote open networks, which are developed using the open-source methodology.
    • The project is aimed at curbing “digital monopolies”.
    • This is a step in the direction of making e-commerce processes open-source, thus creating a platform that can be utilized by all online retailers.
    • They will encourage the usage of standardized open specifications and open network protocols, which are not dependent on any particular platform or customized one.

    What does one mean by ‘Open-sourcing’?

    • An open-source project means that anybody is free to use, study, modify and distribute the project for any purpose.
    • These permissions are enforced through an open-source licence easing adoption and facilitating collaboration.

    What processes are expecting to be open-sourced with this project?

    • Several operational aspects including onboarding of sellers, vendor discovery, price discovery and product cataloguing could be made open source on the lines of Unified Payments Interface (UPI).
    • If mandated, this could be problematic for larger e-commerce companies, which have proprietary processes and technology deployed for these segments of operations.

    What is the significance of making something open-source?

    • Making a software or a process open-source means that the code or the steps of that process is made available freely for others to use, redistribute and modify.
    • If the ONDC gets implemented and mandated, it would mean that all e-commerce companies will have to operate using the same processes.
    • This could give a huge booster shot to smaller online retailers and new entrants.

    What does the DPIIT intend from the project?

    • ONDC is expected to digitize the entire value chain, standardize operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for stakeholders and consumers.

    Countering ‘Digital Monopoly’

    • Digital monopolies refer to a scenario wherein e-commerce giants or Big Tech companies tend to dominate and flout competition law pertaining to monopoly.
    • The Giants have built their own proprietary platforms for operations.
    • In March, India moved to shake up digital monopolies in the country’s $ 1+ trillion retail market by making public a draft of a code of conduct — Draft Ecommerce Policy, reported Bloomberg.
    • The government sought to help local start-ups and reduce the dominance of giants such as Amazon and Walmart-Flipkart.
    • The rules sought to define the cross-border flow of user data after taking into account complaints by small retailers.

    Processes in the ONDC

    • Sellers will be onboarded through open networks. Other open-source processes will include those such as vendor and price discovery; and product cataloging.
    • The format will be similar to the one which is used in the Unified Payments Interface (UPI).
    • Mega e-commerce companies have proprietary processes and technology for these operations.
    • Marketplaces such as Amazon, Flipkart, Zomato, BigBasket and Grofers will need to register on the ONDC platform to be created by DPIIT and QCI.
    • The task of implementing DPIIT’s ONDC project has been assigned to the Quality Council of India (QCI).

    Why such a move by the govt?

    • This COVID pandemic has made every business to go digital.
    • India is a country with 700 million internet users of whom large crunch of population are active buyers on e-coms.
    • There are 9 platforms in the world which are billion user platform and all are private. This is the monopoly which the govt aims to hit.
    • No country would ever want a few (foreign) companies to control their domestic e-commerce ecosystem.
    • Countries like US are struggling to control their monopoly over the e-commerce giants leaving no space for Indian legislations to control these overseas companies.
    • In India Amazon, Walmart, Uber are controlling larger crunch of share in the market leaving very less scope for domestic companies to cope up with.

    Scope for ONDCs success

    • Over last 50 years India is dealing with Big Tech companies with responsibility and pragmatic manner. Now it is also coming with new policies to control them.
    • The drafting panel has extraordinary persons like Mr. Nandan Nilekani and others who were in Aadhar, NPCI, MyGov, Retail industry and these make it inclusive and innovative.
    • India has successfully executed various public digital platforms like JAM Trinity, Aadhar linked projects. India for sure can handle its digital ecosystem better in e-coms too.
    • Open-sourcing will benefit society at large as did the UPI.

    Issues that can be raised

    • Draft E-Commerce policy can raise resistance from companies like Amazon, Flipkart, Walmart etc.
    • They may raise hues over operability and ease of doing business.
    • MSMEs have already raised the growing compliance burden for e-commerce.
    • They have argued that the govt is technologically and digitally motivating everybody to get online and on the other hand it is culling their very ability to reach out to the consumer to get more people on board.

    Possible issues with ONDC

    • Every platform has its own challenges so would the ONDC may have.
    • While UPI was ruled out (BHIM being the first) people were reluctant in using it due to transaction failures.
    • With subsequent improvements and openness people and businesses are using it in every walks of life. So it would work with ONDC.

    Conclusion

    • Once adopted, ONDC will make sure consumer and seller interest will be protected as the UPI did.
    • Best is yet to come and we are in 4th industrial revolution where the Govt should strengthen itself accordingly and make businesses inclusive and restrict the monopolies.

     

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