Current Affairs

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Changing foreign policy of Saudi Arabia

Context: Saudi Arabia has been pursuing as assertive foreign policy in order to extend its influence in the West Asia.

Background

For past many years, Saudi’s foreign policy centred around Iran and it resulted into the proxy conflicts across the region. The rivalry between Saudi Arabia and Iran is rooted in Islamic sectarianism. While Iran is the foremost Shia state in the world, Saudi Arabia is considered to be the religious home of Sunni Islam. This sectarian rivalry has translated into a tussle for regional hegemony and both sides being involved in multiple proxy conflicts against each other in Iraq, Lebanon, Syria and most devastatingly, Yemen. 

Saudi’s changing foreign policy:

  • It agreed to establish ties with Iran through talks mediated by China. 
  • Saudi – Omani delegation hold talks with Houthi rebels for a permanent ceasefire.
  • It is holding talks with Syria to normalize ties with Assad Regime which may result into re-entry of Syria to Arab League.
  • It is also trying to balance its relationships with the US, Russia, and China.
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The reason behind the shift:

  • Saudi’s past endeavours in West Asia were either unsuccessful or only partially successful.
  • In Yemen, Saudi led coalition failed to oust Houthi’s from Sana’a (Yemen’s Capital).
  • Saudi Arabia’s “Vision 2030” calls for diversifying the oil-dependent economy by attracting tourism and foreign investment. Regional peace will be crucial to turning Saudi Arabia into the global hub that “Vision 2030” envisions. This has led to Saudi Arabia making concerted efforts to end long-standing conflicts/rivalries with powers across the region.
  • As the U.S. shifts its priorities away from West Asia, Saudi Arabia is confronted with a choice to either persist in their unsuccessful efforts to contain Iran in a region or they can work towards establishing a new balance with Iran.

Implications for the region:

  • Saudi Arabia’s normalization talks with Syria would help improve the overall relationship between Syria and other Arab capitals.
  • If Saudis can reach a settlement with Houthis, it could infuse some stability in the Gulf region.
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What is a normal Monsoon and what factors lead to the weakening of the Monsoon?

Context: According to the private weather forecasting agency Skymet, India is likely to get "below normal" monsoon rains in 2023 with an increased likelihood of El Nino, which typically brings dry weather to Asia.

About Normal Monsoon

  • The IMD predicts a “normal”, “below normal”, or “above normal” monsoon in relation to a benchmark “long period average” (LPA). 
  • According to the IMD, the “LPA of rainfall is the rainfall recorded over a particular region for a given interval (like month or season) average over a long period like 30 years, 50 years, etc”.
  • The IMD’s prediction of a normal monsoon was based on the LPA of the 1971-2020 period, during which India received 87 cm of rain for the entire country on average.
  • The IMD maintains five rainfall distribution categories on an all-India scale. These are:
    • * Normal or near normal, when the percentage departure of actual rainfall is +/-10% of LPA, that is, between 96-104% of LPA;
    • * Below normal, when departure of actual rainfall is less than 10% of LPA, that is 90-96% of LPA;
    • * Above normal, when actual rainfall is 104-110% of LPA;
    • * Deficient, when departure of actual rainfall is less than 90% of LPA; and
    • * Excess, when the departure of actual rainfall is more than 110% of LPA.

Factors which affect the Monsoon

El Niño

  • The warming in the tropical Pacific Ocean because of El Niño weakens the southeast trade winds flowing to the intertropical convergence zone over India. 
  • Since these winds are the main driving force of the Indian summer monsoon, El Niño events are associated with weak monsoons and lower than average rainfall. 
  • The location of the El Niño event also influences its effects on the Indian monsoon – warming in the central Pacific Ocean affects the Indian monsoon more than if the warming is in the eastern Pacific Ocean.
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La Niña

  • The La Niña has the opposite effect to the El Niño and is responsible for stronger monsoons and above-average rainfall.
  • Equatorial Indian Ocean Oscillation (EQUINOO): 
  • It is thought to arise as an effect of the Indian Ocean Dipole(IOD) and refers to increased and decreased cloud formation between the western and eastern equatorial Indian Ocean. 

Although the IOD was discovered only in 1999, and the EQUINOO in 2002, both have been recognised as important modulators of the Indian summer monsoon. Positive Indian Ocean Dipole(IOD) and EQUINOO events are associated with more rainfall as these events increase moisture transport from the southeastern parts of the Indian Ocean.

Indian Ocean Dipole(IOD):

  • IOD measures differences in sea surface temperatures between the western and eastern parts of the Indian Ocean.
  • Indian Ocean Dipole (IOD) is basically similar to the El Nino weather system that develops in the Pacific Ocean. It is characterized by an irregular oscillation of sea-surface temperatures in the eastern and western Indian Ocean

Atlantic sea surface temperature(SST) variability

  • The Atlantic SST variability affects the Indian summer monsoon in the same way that the ENSO does. 
  • A warming of the surface of the Atlantic Ocean weakens the monsoon, just as cooling of the ocean’s surface has the opposite effect. 
  • The effects of this phenomenon, also known as the Atlantic Niño on the Indian summer monsoon is thought to be mediated through perturbations in the jet streams above India.

Mascarene High

  • The Mascarene High is a semi-permanent high-pressure zone in the south Indian Ocean, about 4,000 km from India, near the Mascarene Islands. 
  • The Mascarene High begins developing in mid-April and is a major factor in driving the circulation between the northern and southern hemispheres that powers the summer monsoon winds towards the Indian subcontinent from the Indian Ocean.
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Irrigation

  • One of the rather surprising local factors that affects the Indian monsoon, is irrigation. 
  • According to a 2019 study in the journal Climate Dynamics, the trend of decreasing rainfall over the Indo-Gangetic plains could be due to the extensive irrigation in this area. 
  • This is likely because irrigation affects soil moisture levels and temperature simultaneously, which affects atmospheric stability. Since the irrigation is over vast tracts of land, these changes shift the moisture convergence zone to the south, during the active phase of the monsoon.
  • The study finds that winter irrigation (November-March) actually strengthens the monsoon rains over the region for the following year and also reduces intra-seasonal variations in rainfall. 
  • However, with year-round irrigation, there is a noticeable decrease in the summer monsoon rainfall (June-September).

Aerosols and dust

  • Aerosols and dust are other local factors that have been shown to affect the monsoon rainfall in India. 
  • In a recent study in 2022, researchers at IIT Bhubaneswar have shown that dust transported to the Arabian sea from the Middle-Eastern deserts (the Sahara and the Sinai) could increase rainfall in India and south Asia over short time scales of one or two weeks. 
  • In a similar study in 2014, scientists showed that dust aerosols likely heat up the atmosphere over north Africa and west Asia, which increases the flow of moisture over India. This results in rainfall, usually within a week of the event, over central India.

Monsoon Impact

  • The monsoon is critical for a healthy rural economy as 51% of the country’s farmed area, accounting for 40% of production, is rain-fed, according to the agriculture ministry. 
  • As much as 47% of the country’s population is dependent on agriculture, one of the mainstays of India’s economy, for livelihood, according to Economic Survey 2022-23.
  • It spurs farm produce and improves rural spending besides impacting inflation, jobs, and industrial demand, for ex. Good farm output keeps food inflation under check and ample harvests raise rural incomes and help inject demand into the economy.

El Nino and the monsoon

La Niña: 

  • La Niña basically refers to an abnormal cooling of the central and eastern Pacific Ocean waters off the coasts of Ecuador and Peru. 
  • Such cooling (sea surface temperatures i.e. SSTs falling) is a result of strong trade winds blowing west along the equator, taking warm water from South America towards Asia. 
  • The warming of the western equatorial Pacific, then, leads to increased evaporation and concentrated cloud-formation activity around that region, whose effects may spread to India as well.

Latest La Nina event:

  • The latest La Nina event was one of the longest ever, lasting from July-September 2020 to December-February 2022-23. And it brought copious rains to India – just as two previous “strong” La Nina in 2007-08 and 2010-11, followed by one “moderate” episode in 2011-12, had done.

El Niño:

  • It is a climate pattern that describes the unusual warming of surface waters in the eastern tropical Pacific Ocean. 
  • El Niño is the “warm phase” of a larger phenomenon called the El Niño-Southern Oscillation (ENSO). La Niña, the “cool phase” of ENSO, is a pattern that describes the unusual cooling of the region’s surface waters. El Niño and La Niña are considered the ocean part of ENSO, while the Southern Oscillation is its atmospheric changes.
  • During El Niño, the trade winds weaken or even reverse: 
  • Instead of blowing from east (South America) to west (Indonesia), they could turn into westerlies. 
  • As the winds blow from the west to east, they cause the masses of warm water to move into the central and eastern equatorial Pacific Ocean. 
  • The rise in SSTs there, thus, produces increased rainfall along western Latin America, the Caribbean and US Gulf Coast, while depriving Southeast Asia, Australia and India of convective currents.
  • El Niño occurs simultaneously with the Southern Oscillation. The Southern Oscillation is a change in air pressure over the tropical Pacific Ocean. When coastal waters become warmer in the eastern tropical Pacific (El Niño), the atmospheric pressure above the ocean decreases.
  • An El Niño event can be identified by the variations in sea surface temperature (SST) over the equatorial Central Pacific (the Nino 3.4 region). 
  • El Niño events are classified as weak, moderate, strong, and very strong depending on the strength of the positive SST variations. 
  • An El Niño event is announced when monthly Nino 3.4 SST deviations reach +0.50 °C, along with consistent atmospheric features, and when these anomalies persist for three consecutive months.

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Impact on Indian Monsoon:

  • El Nino may result in a weakening of the Indian monsoon, leading to drier conditions and reduced rainfall. 
  • On the other hand, La Niña events, which bring cooling to the Pacific Ocean, can result in stronger monsoons and more precipitation in India.

El Niño years and its trends in India

  • According to statistics, about 60 per cent of the time there will be a probability of drought in India during an El Niño year.
  • Chances of below-normal rain will be 30 per cent, while the prospect of normal rain remains very rare at 10 per cent.
  • However, El Niño conditions have been known to be unpredictable as well. For instance, even the strongest El Niño has given normal Monsoon rains of 102 per cent in 1997, while weak El Niño conditions resulted in severe drought in 2004 to the tune of 86 per cent.
  • Drought years:
  • Statistics from the year 2000 till 2019 show that there have been four instances of drought years. 
El nino
  • In 2002 and 2009, the countrywide deficiency was 19 per cent and 22 per cent, respectively, which were considered severe drought years. 
  • While in 2004 and 2015 the deficiency stood at 14 per cent each, which was again a drought.
  • Surplus: 
  • There has been only one instance in the last 25 years, since 1997, when the country saw surplus rain of 2 per cent despite El Niño.
  • Recent research indicates that the frequency of extreme El Niño events increases linearly with the global mean temperature, and that the number of such events might double (one event every 10 years) under 1.5°C of global warming. 
  • This pattern is projected to persist for a century after stabilisation at 1.5°C, indicating continuing high risks.
  • Changes to the frequency of extreme El Niño and La Niña events may also increase the frequency of droughts and floods in South Pacific islands.

International Big Cat Alliance(IBCA)

Context: Prime Minister Narendra Modi recently launched the International Big Cats Alliance (IBCA) during his visit to Karnataka.

Objective:

  • The alliance aims to reach out to 97 range countries covering the natural habitats of Tiger, Lion, Snow Leopard, Puma, Jaguar, and Cheetah. 
  • It aims to provide a platform for “dissemination of information on benchmarked practices, capacity building, resources repository, research and development, awareness creation”, etc., on the protection and conservation of big cats.

Significance:

  • The alliance will strengthen global efforts and partnerships on big cat conservation while creating a platform for sharing knowledge and best practices. 
  • It will support existing species-specific inter-governmental platforms and provide direct support to recovery efforts in potential range habitats.
  • The alliance aims to strengthen global efforts and partnerships to preserve the natural habitats of big cats, secure ecosystems, and provide food security, livelihood, and sustenance to forest communities. 
  • Big cats will now serve as mascots for sustainable development, leading to environmental resilience and climate change mitigation. 

Governance structure:

  • The IBCA’s governance structure will comprise a General Assembly consisting of all member countries, a council of at least seven but not more than 15 member countries elected by the General Assembly for a term of 5 years, and a Secretariat. 
  • Upon the recommendation of the Council, the General Assembly will appoint the IBCA Secretary General for a specific term.

Funding:

  • After the first five years, which will be supported by India’s “total grant assistance” of $100 million, the IBCA is expected to sustain itself through membership fees, and contributions from bilateral and multilateral institutions and the private sector.

National Party in India

Context: Election commission using its power under The Election Symbols (Reservation And Allotment) Order, 1968 withdrew the National Party Status of Trinamool congress (TMC), Nationalist congress party (NCP) and Communist party of India (CPI). However, It also accorded the status of national party to the Aam Admi Party (APP).

The Election Symbols (Reservation And Allotment) Order, 1968

  • Para 6A deals with Conditions for recognition as a State Party ; 
  • Para 6B deals with the Conditions for recognition as a National Party 
  • Para 6C delas with Conditions for continued recognition as a National or State party.

As per the Election Commission of India’s latest review, at present, there are Six political parties which are the status of recognised National Parties. 

  1. Bahujan Samaj Party (BSP)
  2. Bharatiya Janata Party (BJP)
  3. Communist Party of India (Marxist) (CPI-M)
  4. Indian National Congress (INC)
  5. National People’s Party (NPP)
  6. Aam Admi Party (AAP)

Conditions for recognition as a State Party (6A)

A political party shall be eligible for recognition as a State party in a State, if, and only if, any of the following conditions is fulfilled 

  1. At the last general election to the Legislative Assembly of the State, the candidates set up by the party have secured not less than six percent of the total valid votes polled in the State; and, in addition, the party has returned at least two members to the Legislative Assembly of that State at such general election; or 
  2. At the last general election to the House of the People from that State, the candidates set up by the party have secured not less than six percent of the total valid votes polled in the State; and, in addition, the party has returned at least one member to the House of the People from that State at such general election; or 
  3. At the last general election to the Legislative Assembly of the State, the party has won at least three percent of the total number of seats in the Legislative Assembly, or at least three seats in the Assembly, whichever is more; or 
  4. At the last general election to the House of the People from the State, the party has returned at least one member to the House of the People for every 25 members or any fraction thereof allotted to that State;] or 
  5. At the last general election to the House of the People from the State, or at the last general election to the Legislative Assembly of the State, the candidates set up by the Party have secured not less than eight percent of the total valid votes polled in the State.

Conditions for recognition as a National Party (6B)

A political party shall be eligible to be recognized as National party, if, and only if, any of the following conditions is fulfilled 

  1. The candidates set up by the party, in any four or more States, at the last general election to the House of the People, or to the Legislative Assembly of the State concerned, have secured not less than six percent of the total valid votes polled in each of those States at that general election; and, in addition, it has returned at least four members to the House of the People at the aforesaid last general election from any State or States; or 
  2. At the last general election to the House of the People, the party has won at least two percent of the total number of seats in the House of the People, and the party’s candidates have been elected to that House from not less than three States; or 
  3. The party is recognized as State party in at least four States.
  • Conditions for continued recognition as a National or State party (6C)  

If a political party is recognised as a State party under paragraph 6A, or as a National party under paragraph 6B, the question whether it shall continue to be so recognised after any subsequent general election to the House of the People or, as the case may be, to the Legislative Assembly of the State concerned, shall be dependent upon the fulfilment by it of the conditions specified in the said paragraphs on the results of that general election.

Significance of being recognised as National or State Parties

  • Apart from those recognised as state or national party , the other parties are simply declared as registered-unrecognised parties.
  • RPA allows political parties to accept contributions voluntarily offered to it by any person or company other than a government company.
  • Candidates of registered parties get preference in allotment of election symbols. Other Candidates are identified as independents and do not get preference in symbol allocation.
  • If a party is recognised as a State Party’, it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it in the State in which it is so recognised.
  • If a party is recognised as a `National Party’ it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it throughout India.
  • Recognised `State’ and `National’ parties need only one proposer for filing the nomination and are also entitled for two sets of electoral rolls free of cost at the time of revision of rolls and their candidates get one copy of electoral roll free of cost during General Elections.
  • They get broadcast/telecast facilities over Akashvani/Doordarshan during general elections. 
  • A recognized National or State party can have a maximum of 40 “Star campaigners” and a registered un-recognised party can nominate a maximum of 20 ‘Star Campaigners”. The travel expenses of star campaigners are not to be accounted for in the election expense accounts of candidates of their party.

Finland’s Journey, from Neutral to NATO

Context: Finland joined the North Atlantic Treaty Organization (NATO), becoming its 31st member. This is a significant event, given that NATO security guarantees will extend to this country which shares a 1,340 kilometre border with Russia. This historical moment in NATO’s history was full of symbolism, since NATO had clearly scored an additional point against Russia.

‘Conventional deterrence’ as a response to post-cold War Russian policies:

  • The main rationale behind Finland’s decision has been to receive additional security guarantees from NATO, which are specified in Article 5 of NATO’s founding treaty. It ‘binds the members together, committing them to protect each other and setting a spirit of solidarity within the alliance’.
  • Finland’s NATO membership can be viewed through the lens of ‘conventional deterrence’.  As described John Mearsheimer this concept as ‘an attempt to persuade an adversary not to initiate a war because the expected costs and risks outweigh the anticipated benefits’.
  • Finland is certainly not the first and will not be the last neighbour of Russia to join the alliance. Before Finland’s accession, countries such as Norway (1949), Latvia (2004), Estonia (2004), Poland (1999) and Lithuania (2004) were already a part of NATO. 
  • In this scenario, Russia needs to learn how to navigate through these growing complexities, which it is partly responsible for.

Complicated past of Russia and Finland

  • The ‘relationship between Finland and Russia has been a combination of struggle and compromise. In 1809, the Russian Tsar Alexander I defeated Sweden, acquired Finland, and made it an autonomous Grand Duchy of the Russian empire. 
  • In 1917, the collapse of the Tsarist regime and the Bolshevik Revolution paved the way for the full independence of Finland’. This made Finland pursue a pragmatic security policy which was flexible enough to balance its autonomy with the need for military cooperation with the West. 
  • In the post-war era and during the cold war Finland saved itself from the spread of communist ideology. In 1948, the Agreement of Friendship, Cooperation, and Mutual Assistance was signed between the USSR and Finland, outlining ‘Finland’s desire to stay outside the conflicts of interests between the great powers’. This came to be known as Finland’s ‘neutrality’.
  • Paasikivi’s line (named after Juho Kusti Paasikivi, the president of Finland between 1946 and 1956) emerged and began to morph into what would eventually become Finland’s foreign policy strategy.
  • This Paasikivi’s line was based on the idea of peaceful coexistence with the Soviet Union with neutrality being its cornerstone. It helped Finland navigate complex international relations after the turbulent time of the Second World War.
  • While the Finno-Soviet Treaty of 1948 helped Finland boost trade with the Soviet Union, it became heavily dependent on Moscow thereby making it vulnerable to economic and political overtures from the Soviets.

Policy Change?

  • There were tensions between Finland and Russia as a result of the flux in domestic politics in both countries. For instance, Nikita Khrushchev was willing to negotiate with Finland and allowed for increased trade and cultural exchange between the two countries, despite the 1950s seeing Finland side with the West when the Soviet Union called for a boycott of the 1956 Summer Olympics in Australia.
  • Following the collapse of the Soviet Union in 1991, it sought to build closer ties with Russia while also pursuing greater integration with Europe. 
  • The country has been an active participant in European security initiatives such as the Common Security and Defence Policy (CSDP) and the Nordic Defence Cooperation (NORDEFCO). At the same time, it has been able to maintain close economic ties with Russia.
  • The cooperation between Finland and NATO began as early as in 1994 with the Partnership for Peace (PfP) programme. Finland had the status of an ‘Enhanced Opportunity Partner’ and contributed in a significant manner to the NATO-led operations in the Balkans, Afghanistan and Iraq.

Possible Outcome and wayforward

  • Finland's accession to NATO gives the impression that Finland’s security concerns are mostly assuaged. 
  • However Russian authorities have signalled possible ‘countermeasures’ to the alleged ‘assault on its security and national interests’.
  • International political scientist believe that Russia and NATO should exercise cautious behaviour vis-à-vis the other. NATO and Russia should search for ways out of the constant cycle of implementing ‘measures’ and imposing ‘countermeasures’. During the last decade, a classic example of ‘security dilemma’ has been unfolding, whereby Russia and the West have been enhancing their security and creating a more precarious environment altogether.
  • Neither Finland nor Russia should see an escalation in their relations. The newly elected centre-right government in Finland should not exaggerate the potential threats from Russia but engage in bilateral dialogue, trying to understand the other’s security concerns. There should be at least some NATO members who would be willing to rely more on diplomatic tools and ‘lower the temperatures’.

Further reading about NATO and accession process
( https://compass.rauias.com/current-affairs/north-atlantic-treaty-organization/ )

Lt. Governor and Delhi

Context: The Supreme Court on April 10 orally observed how can the Lieutenant Governor (L-G) act “without aid and advice” of the Council of Ministers in nominating 10 members to the Municipal Corporation of Delhi. This article discusses the need for full statehood for Delhi, the capital city of India. Delhi's government has limited powers despite being one of the most populous cities in India. There is a need to view Delhi from the prism of the interests of the entire country, given that it is the national capital.

So we will cover the following aspects in this article: 

  • Some Historical perspective on administration of Delhi
  • Why Delhi should be provided with statehood 
  • Reasons against granting statehood to Delhi
  • Way forward
    • Supreme Court Verdict on Delhi-Centre Power Tussle

General Studies- II: Governance, Constitution, Polity, Social Justice and International relations

  • Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.

Some Historical perspective on administration of Delhi

  • Till 1992, except for a brief interlude, Delhi was a union territory under the complete control of the Government of India. 
  • Delhi was allowed its ‘statehood’ early in the 1990s, with a Chief Minister and a popularly elected unicameral legislature though the ‘State’ remained truncated in its powers.
  • But It remained in substance a union territory and in form a State, with the Lt. Governor retained as its chief executive. 
  • The Chief Minister and his Cabinet made a late entry into space where Lt Governor and several municipal corporations already existed which created friction. 
  • Many departments of the Centre, State, scores of parastatals and five ULBs (urban local bodies) providing bits of governance in the city. 
  • It could safely be asserted that Delhi has more government and less governance than any other city or state in the country

Why Delhi should be provided with statehood: 

  • Massive increment in population of Delhi 
    • In 1991, the 69th Amendment to the Constitution created the Legislative Assembly of Delhi, at a time when the city's population was much smaller. However, as of today, the city has nearly two crore people, making it one of the most populous cities in India. This growth in population has led to a demand for more representation and self-governance.
  • Limited powers of the Delhi Government: 
    • Nowhere in any democracy are two crore people represented by a government with restricted powers. Despite being one of the most populous cities in India, Delhi's government has limited powers because it is not a full state.
    • The Delhi government struggled to fight the COVID-19 pandemic because it did not have complete control over its healthcare system. The Central government controls some aspects of Delhi's healthcare, making it difficult for the state government to take timely and effective measures to control the spread of the virus.
  • The original idea behind Union Territories was just transitional: 
    • When the Union Territories were first created, the idea was to provide a flexible yet transitional status to several territories that joined India. The territories were given a certain degree of autonomy, but they were also expected to eventually transition to statehood.
    • Goa, Manipur, Himachal Pradesh, and Tripura were initially Union Territories but were granted statehood as they developed economically and politically. This shows that the Union Territory status was meant to be temporary, and statehood was the ultimate goal.
  • Equal rights for representation and self-governance
    • Providing equal rights for representation and self-governance was one of the primary reasons for the creation of the Legislative Assembly of Delhi. As the city's population grows, the demand for more representation and self-governance becomes even more critical.
    • The Delhi government has been advocating for full statehood for years, arguing that it would give the city's residents more say in matters of governance. The lack of full statehood has led to several conflicts between the Delhi government and the Central government over issues like land, law and order, and the police.
  • The need for full statehood
    • The time has come to enter the second and final stage to create the full state of Delhi. This would give the city an elected government with greater powers and more say in matters of governance, such as law and order and land management.
    • If Delhi becomes a full state, it would have complete control over its police force, which is currently under the Central government's control. This would allow the city's elected government to take timely and effective measures to maintain law and order and ensure the safety of its citizens.
  • UN report on Delhi's population
    • According to a United Nations report, Delhi's urban agglomeration will make it the most populous city in the world by 2028. This highlights the urgency of granting full statehood to Delhi, as the city's population continues to grow.
    • With a population of nearly two crore people, Delhi is already struggling with issues like traffic congestion, pollution, and water scarcity. As its population grows, the city's infrastructure and governance will come under even more strain, making the need for full statehood even more urgent.

Reasons against granting statehood to Delhi:

  • Local political ambition:
    • The demand for statehood has primarily been driven by the political ambitions of the local government, rather than a national compulsion. The Aam Aadmi Party (AAP) has been advocating for full statehood for Delhi since it came to power in 2015.
  • National capital interests:
    • Delhi, being the national capital, must be viewed from the prism of the interests of the entire country, and not just those of the city.
    • The central government has the responsibility to ensure that the security of vital institutions such as the President's estate, Parliament, and foreign embassies is maintained.
  • Special security cover:
    • These institutions require special security cover and close coordination with centrally administered agencies such as RAW and IB, which cannot be provided by a state government.
    • In 2020, there were protests in front of the Chinese embassy in Delhi, and the Delhi Police had to coordinate with the central government to ensure the safety of the embassy and its staff.
  • Central government responsibility:
    • The institutions in Delhi are the sole responsibility of the Union government, and not of any particular state legislative assembly.
    • The Delhi Police, which is responsible for maintaining law and order in the city, comes under the Ministry of Home Affairs, which is a part of the Union government.
  • Control over territory:
    • The Indian government must have some territory under its control and cannot be an occupant or a tenant of a state government.
    • The central government owns the land on which the President's estate and Parliament are located.
  • Reservation from regional parties:
    • Many regional parties have expressed their strong reservation towards granting full statehood to Delhi, as they believe that the national capital belongs to every citizen of the country and not just those who reside in the city.
    • The Shiromani Akali Dal, a regional party in Punjab, has opposed the demand for full statehood for Delhi.
  • Loss of advantages:
    • Statehood would deprive Delhi of the many advantages it gets as the national capital, such as the entire burden of policing being borne by the federal government.
    • The Delhi Police force has a strength of around 80,000 personnel and is responsible for maintaining law and order in the city, along with providing security to the vital institutions.

Way forward

Supreme Court Verdict on Delhi-Centre Power Tussle

  • The Supreme Court judgement in the Government of NCT Delhi vs Union of India case, overturned the August 2016 judgment of the Delhi high court, which had ruled that since Delhi was a Union territory all powers lay with the central government, not the elected Delhi government. 
  • Resolving the dispute over the demarcation of powers between the Union Government and the Government of Delhi, the Supreme Court laid down a few key principles:
    • Delhi government has power in all areas except land, police and public order and the LG is bound by the aid and advice of the government in areas other than those exempted 
    • The only exception to this rule, it said, was a proviso to Article 239-AA, which allowed the LG to refer to the President any issue on which there was a difference of opinion with the council of ministers. In such a case, the LG would be bound by the President’s decision. 
    • Delhi Lieutenant Governor cannot act independently and must take the aid and advice of the Council of Ministers because national capital enjoys special status and is not a full state. Hence, the role of the L-G is different than that of a Governor. 
  • It observed that neither the state nor the L-G should feel lionized, but realize that they are serving Constitutional obligations and there is no space for absolutism or anarchy in our Constitution.

Subsidy burden of states

Context: Comptroller and Auditor General urged states to make a proper accounting of subsidies, remove revenue deficits, reduce fiscal deficits and keep outstanding debt at an acceptable level. In this context, let us discuss the problems with the subsidy regime.

Subsidies & freebies

As per CAG, the state government’s expenditure on subsidies has grown at 12.9 per cent and 11.2 per cent during 2020-21 and 2021-22. 

 In the recent period, state governments have started delivering a portion of their subsidies in the form of freebies.  Though there is no precise definition of freebies, they are different from subsidies provided by the government on public/merit goods, such as the public distribution system, employment guarantee schemes, states’ support for education and health, and expenditure which brings economic benefits.

On the other hand, freebies like the provision of free electricity, free water, free public transportation, waiver of pending utility bills and farm loan waivers often undermine credit culture, and disincentivise work at the current wage rate leading to a drop in labour force participation.

Issues with Subsidies & freebies: 

  • Regressive: Some of the subsidies such as Electricity, Fertilisers, MSP etc. are universal in nature and are given to all households irrespective of their socio-economic status. Being universal in nature, such subsidies benefit the richer households more than the poor households and hence are considered to be regressive in nature.
  • Leakages & Corruption: Inclusion and Exclusion errors; Duplicate and Ghost Beneficiaries; Presence of Middlemen, Poor administrative efficiency etc. E.g., 46% leakage in PDS.
  • Subsidies create distortions and ultimately affect poor people: Farm subsidies like MSP encouraged the production of water-intensive crops like rice & wheat and prevented crop diversification. This ultimately resulted in the low-income growth of the farmers. 
  • Cross-subsidization: Subsidies/Freebies like low/free passenger fares or free electricity for the public result in cross-subsidization through commercial usage. This increases the cost of doing business and hence hinders the growth of a private investment.
  • Distorts credit culture: Freebies like Agricultural loan waivers hampers the credit culture among the public and may result in the accumulation of bad assets in the banking sector. 
  • Revenue deficit: Increasing investments on subsidies & freebies increase the Revenue expenditure and hence the Revenue deficit. This leaves little headroom for the governments to invest in capital expenditure. 

Hence, rationalising subsidies is important for state governments to reduce their debt burden in the long term. 

Depositor Education and Awareness (DEA) Fund

Context: Development of a Centralised Web portal for the Public to Search Unclaimed Deposits

Need of DEA

  • The deposits remaining unclaimed for 10 years in a bank are transferred to the “Depositor Education and Awareness” (DEA) Fund maintained by the Reserve Bank of India. 
  • Depositors’ protection being an overarching objective, RBI has been taking various measures to ensure that newer deposits do not turn unclaimed and existing unclaimed deposits are returned to the rightful owners or beneficiaries after following due procedure. On the second aspect, banks display the list of unclaimed deposits on their website. 
  • In order to improve and widen the access of depositors / beneficiaries to such data, RBI has decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits based on user inputs. The search results will be enhanced by use of certain AI tools.

The Depositor Education and Awareness Fund Scheme

  • The fund was created by RBI as per Section 26A of the Banking Regulation Act, 1949.
  • The amounts to be credited to the Fund by banks shall be deposited in the specified account maintained with the RBI.
  • The amounts to be credited to the Fund shall be the credit balance in any deposit account maintained with banks which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, which include:-
    • Savings bank deposit accounts
    • Fixed or term deposit accounts
    • Cumulative/recurring deposit accounts
    • Current deposit accounts
    • Other deposit accounts in any form or with any name
    • Cash credit accounts
    • Loan accounts after due appropriation by the banks
    • Margin money against issue of Letter of Credit/Guarantee etc., or any security deposit
    • Outstanding telegraphic transfers, mail transfers, demand drafts, pay orders, bankers cheques, sundry deposit accounts, vostro accounts, inter-bank clearing adjustments, unadjusted National Electronic Funds Transfer (NEFT) credit balances and other such transitory accounts, unreconciled credit balances on account of Automated Teller Machine (ATM) transactions, etc.
    • Undrawn balance amounts remaining in any prepaid card issued by banks but not amounts outstanding against travellers cheques or other similar instruments, which have no maturity period
    • Rupee proceeds of foreign currency deposits held by banks after conversion of foreign currency to rupees in accordance with extant foreign exchange regulations and
    • Such other amounts as may be specified by the Reserve Bank from time to time.
  • Any amount payable in foreign currency under an instrument or a transaction, that has remained unclaimed for ten years or more, shall at the time of transfer to the Fund be converted into Indian Rupees at the exchange rate prevailing on that date and in the event of a claim, the Fund shall be liable to refund only the Indian Rupees received by the Fund with respect to such instrument or transaction.
  • The Fund shall be utilised for promotion of depositors’ interests and for such other purposes which may be necessary for promotion of depositors’ interest as may be specified by the RBI. All expenditure incurred for the promotion of depositors’ education, awareness, interests and other purposes that may be specified by the RBI under Section 26A (4) of the Act, shall be charged to the Fund.

Committee to Administer the Fund

  • There shall be a Committee to administer and manage the Fund in accordance with the Scheme which shall consist of an ex-officio Chairperson (a Deputy Governor of RBI, nominated by Governor) and not more than six members as decided by the RBI.
  • The Committee may from time to time lay down a list of activities, the criteria and procedure, etc. for incurring expenditure and achieving the objectives of the Fund.
  • The Committee shall administer the Fund and shall exercise all powers on behalf of the Fund, including incurring of all expenditure that may be charged to the Fund, and keeping the corpus of the Fund invested.
  • The expenses of the Committee and other expenses for administration of the Fund shall be charged to the Fund as decided by the Committee.
  • For facilitating the RBI for determination of the rate of interest payable by the Fund to the depositors, the Committee shall provide to the Reserve Bank such information on the income and expenditure of the Fund as may be required.
  • For the promotion of depositors’ interests, the Committee may register/recognise from time to time various institutions, organisations or associations, engaged in activities relating to depositor awareness and education, including those proposing to conduct programmes for depositors of banks, organising seminars and symposia for depositors and undertaking projects and research activities relating to these areas.
  • Institutions, organisations or associations registered/recognized by the Committee may be considered for grant of funds as a grant-in-aid either as one time measure or in stages or by way of reimbursement, depending upon the nature of the activity proposed.

Refunds and Interest

  • In case of demand from a customer/ depositor whose unclaimed amount/deposit had been transferred to the Fund, banks shall repay the customer/depositor, along with interest if applicable, and lodge a claim for refund from the Fund for an equivalent amount paid to the customer/depositor.
  • The interest payable, if any, from the Fund on a claim shall accrue only from the date on which the balance in an account was transferred to the Fund to the date of payment to the customer/depositor. No interest shall be payable in respect of amounts refunded from the Fund, in respect of which no interest was payable by the bank to its customer/depositor.
  • Rate of interest, if any, payable on the principal amount transferred to the Fund shall be specified by the RBI from time to time.

‘PRAVAAH’ (Platform for Regulatory Application, Validation And Authorisation)

Need of PRAVAAH Portal

  • Various entities are required to obtain licence / authorization to carry out activities regulated by RBI. Further, regulated entities are required to seek certain regulatory approvals from RBI under various statutes / regulations periodically. 
  • Currently, the application and approval processes for the same take place in varied on-line and off-line modes. 
  • The Union Budget for 2023-24 has announced the need to simplify, ease and reduce cost of compliance by financial sector regulators within laid down time limits to decide the applications under various regulations. 
  • It has been decided to develop a secured web based centralised portal named as ‘PRAVAAH’ which will gradually extend to all types of applications made to RBI across all functions.

What is Monetary Policy?

About Monetary Policy

  • Monetary policy is a set of tools used by a nation's central bank to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements.
  • Under the Reserve Bank of India, Act,1934 (RBI Act,1934) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.

The Monetary Policy Framework

  • In May 2016, the RBI Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework.
  • Inflation Target: Under Section 45ZA, the Central Government, in consultation with the RBI, determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette. 
  • Accordingly, the Central Government notified in the Official Gazette 4 per cent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent. On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period – April 1, 2021 to March 31, 2026.
  • Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

Failure to Maintain Inflation Target

Maintain Inflation Target
  • The Central Government has notified the following as the factors that constitute a failure to achieve the inflation target:
    • The average inflation is more than the upper tolerance level of the inflation target for any three consecutive quarters; or 
    • The average inflation is less than the lower tolerance level for any three consecutive quarters.
  • Where the Bank fails to meet the inflation target, it shall set out in a report to the Central Government:
    • The reasons for the failure to achieve the inflation target;
    • Remedial actions proposed to be taken by the Bank; and
    • An estimate of the time period within which the inflation target shall be achieved pursuant to the timely implementation of proposed remedial actions.
  • The operating framework of monetary policy aims at aligning the operating target – the weighted average call rate (WACR) – with the policy repo rate through proactive liquidity management to facilitate the transmission of repo rate changes through the entire financial system, which, in turn, influences aggregate demand – a key determinant of inflation and growth.

Monetary Policy Committee

  • Section 45ZB of the amended RBI Act, 1934 provides for an empowered six-member monetary policy committee (MPC) to be constituted by the Central Government by notification in the Official Gazette. The first such MPC was constituted in September 2016. The present MPC members, as notified by the Central Government in the Official Gazette of October, 2020, are as under:
    • Governor of the Reserve Bank of India—Chairperson, ex officio
    • Deputy Governor of the Reserve Bank of India, in charge of Monetary Policy—Member, ex officio
    • One officer of the Reserve Bank of India to be nominated by the Central Board—Member, ex officio
    • Prof. Ashima Goyal, Professor, Indira Gandhi Institute of Development Research —Member
    • Prof. Jayanth R. Varma, Professor, Indian Institute of Management, Ahmedabad—Member
    • Dr. Shashanka Bhide, Senior Advisor, National Council of Applied Economic Research, Delhi—Member
  • Last three persons are to be appointed by the central government. This category of appointments must be from “persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy”. (Section 45ZC)
  • The MPC determines the policy repo rate required to achieve the inflation target.
  • The MPC is required to meet at least four times in a year. The quorum for the meeting of the MPC is four members.
  • Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.
  • Each Member of the Monetary Policy Committee writes a statement specifying the reasons for voting in favour of, or against the proposed resolution.

Instruments of Monetary Policy

There are several direct and indirect instruments that are used for implementing monetary policy.

  • Repo Rate: The interest rate at which the Reserve Bank provides liquidity under the liquidity adjustment facility (LAF) to all LAF participants against the collateral of government and other approved securities.
  • Standing Deposit Facility (SDF) Rate: The rate at which the Reserve Bank accepts non collateralized deposits, on an overnight basis, from all LAF participants. The SDF is also a financial stability tool in addition to its role in liquidity management. The SDF rate is placed at 25 basis points below the policy repo rate. With introduction of SDF in April 2022, the SDF rate replaced the fixed reverse repo rate as the floor of the LAF corridor.
  • Marginal Standing Facility (MSF) Rate: The penal rate at which banks can borrow, on an overnight basis, from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a predefined limit (2 percent). This provides a safety valve against unanticipated liquidity shocks to the banking system. The MSF rate is placed at 25 basis points above the policy repo rate.
  • Liquidity Adjustment Facility (LAF): The LAF refers to the Reserve Bank’s operations through which it injects/absorbs liquidity into/from the banking system. It consists of overnight as well as term repo/reverse repos (fixed as well as variable rates), SDF and MSF. Apart from LAF, instruments of liquidity management include outright open market operations (OMOs), forex swaps and market stabilisation scheme (MSS).
  • LAF Corridor: The LAF corridor has the marginal standing facility (MSF) rate as its upper bound (ceiling) and the standing deposit facility (SDF) rate as the lower bound (floor), with the policy repo rate in the middle of the corridor.
  • Main Liquidity Management Tool: A 14-day term repo/reverse repo auction operation at a variable rate conducted to coincide with the cash reserve ratio (CRR) maintenance cycle is the main liquidity management tool for managing frictional liquidity requirements.
  • Fine Tuning Operations: The main liquidity operation is supported by fine-tuning operations, overnight and/or longer tenor, to tide over any unanticipated liquidity changes during the reserve maintenance period. In addition, the Reserve Bank conducts, if needed, longer-term variable rate repo/reverse repo auctions of more than 14 days.
  • Reverse Repo Rate: The interest rate at which the Reserve Bank absorbs liquidity from banks against the collateral of eligible government securities under the LAF. Following the introduction of SDF, the fixed rate reverse repo operations will be at the discretion of the RBI for purposes specified from time to time.
  • Bank Rate: The rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate acts as the penal rate charged on banks for shortfalls in meeting their reserve requirements (cash reserve ratio and statutory liquidity ratio). The Bank Rate is published under Section 49 of the RBI Act, 1934. This rate has been aligned with the MSF rate and changes automatically as and when the MSF rate changes alongside policy repo rate changes.
  • Cash Reserve Ratio (CRR): The average daily balance that a bank is required to maintain with the Reserve Bank as a percent of its net demand and time liabilities (NDTL) as on the last Friday of the second preceding fortnight that the Reserve Bank may notify from time to time in the Official Gazette.
  • Statutory Liquidity Ratio (SLR): Every bank shall maintain in India assets, the value of which shall not be less than such percentage of the total of its demand and time liabilities in India as on the last Friday of the second preceding fortnight, as the Reserve Bank may, by notification in the Official Gazette, specify from time to time and such assets shall be maintained as may be specified in such notification (typically in unencumbered government securities, cash and gold).
  • Open Market Operations (OMOs): These include outright purchase/sale of government securities by the Reserve Bank for injection/absorption of durable liquidity in the banking system.

Monetary Policy Process

The Reserve Bank has notified the Reserve Bank of India Monetary Policy Committee and Monetary Policy Process Regulations, 2016 which consists of the following:

  • Meeting schedule: The schedule of monetary policy voting/decision meetings for the entire fiscal year is announced in advance.
  • Meeting notice: Ordinarily, not less than fifteen days’ notice is given to members for meetings of the Committee. Should it be found necessary to convene an emergency meeting, 24 hours’ notice is given to every member to enable him/her to attend, with technology enabled arrangements for even shorter notice period for meetings.
  • Meeting duration: The duration of monetary policy meetings is as decided by the Committee. The policy resolution is publicly released after the conclusion of the MPC meeting keeping in view the functioning and timing of financial markets.
    • The MPC in its meetings reviews the surveys conducted by the Reserve Bank to gauge consumer confidence, households’ inflation expectations, corporate sector performance, credit conditions, the outlook for the industrial, services and infrastructure sectors, and the projections of professional forecasters. 
    • The MPC also reviews in detail the staff’s macroeconomic projections, and alternative scenarios around various risks to the outlook. Drawing on the above and after extensive discussions on the stance of monetary policy, the MPC adopts a resolution.
  • The MPC Resolution: The Bank publishes, after the conclusion of every meeting of the MPC, the resolution adopted by the said Committee. The resolution includes the MPC’s decision on the policy repo rate.
  • Minutes of the MPC meeting: On the 14th day after every meeting of the MPC, the minutes of the proceedings of the MPC are published which include: (a) the resolution adopted by the MPC; (b) the voting of each member on the resolution; and (c) short written statements of individual members justifying the vote, consistent with the provisions of Section 45ZL of the RBI Act. Minutes shall be released at 5 pm on the 14th day from the date of the policy day (or next earliest working day, if a holiday in Mumbai).
  • The Monetary Policy Report: Once in every six months, the Reserve Bank publishes the Monetary Policy Report containing the following elements:
    • Explanation of inflation dynamics in the last six months and the near term inflation outlook.
    • Projections of inflation and growth and the balance of risks.
    • An assessment of the state of the economy, covering the real economy, financial markets and stability, fiscal situation, and the external sector, which may entail a bearing on monetary policy decisions.
    • An updated review of the operating procedure of monetary policy.
    • An assessment of projection performance.

Monetary Policy Stance

The MPC indicates its broader policy approach by guiding the markets with policy stances.

  • Accommodative: means the central bank is prepared to expand the money supply to boost economic growth. The central bank, during an accommodative policy period, is willing to cut the interest rates. A rate hike is ruled out. The central bank typically adopts an accommodative policy when growth needs policy support and inflation is not the immediate concern.
  • Neutral: suggests that the central bank can either cut rate or increase rate. This stance is typically adopted when the policy priority is equal to both inflation and growth. During neutral policy, the central bank doesn’t commit to hiking rates or cuts. The interest rate can move to either side depending on incoming data. The guidance indicates that the market can expect a rate action on either way at any point.
  • Hawkish: indicates that the central bank’s top priority is to keep the inflation low. During such a phase, the central bank is willing to hike interest rates to curb money supply and thus reduce the demand. A hawkish policy also indicates tight monetary policy. A rate cut is nearly certain during such a period. When the central bank increases rates or 'tightens' the monetary policy, banks too increase their rate of interest on loans to end borrowers which, in turn, curbs demand in the financial system.
  • Calibrated tightening: means during the current rate cycle, a cut in the repo rate is off the table. But, the rate hike will happen in a calibrated manner. This means the central bank may not go for a rate increase in every policy meeting but the overall policy stance is tilted towards a rate hike. This can happen outside the policy meetings as well if the situation warrants it.

Over half of the heavy industry eyeing Low Carbon hydrogen

Context: As many as 62% of heavy industrial organisations across sectors are considering using low-carbon hydrogen to replace carbon-intensive systems, according to a recent report from the Capgemini Research Institute titled "Low Carbon Hydrogen - A Path to a Greener Future." According to the report, Energy and Utilities (E&U) companies anticipate Low-Carbon hydrogen to account for 18% of all energy use by 2050, and demand from more than half of organisations has increased by more than 10% in France, India, the United Kingdom, Japan, the United States, Germany, and Sweden.

Hydrogen as a fuel for the future

  • According to the International Energy Agency (IEA), hydrogen has the potential to be a key component of our transition to a clean energy future. 
  • However, for hydrogen to truly contribute to the energy transition, it must be used in industries where it is currently almost non-existent, such as transportation, construction, and power generation.
  • To identify ways to accelerate its adoption, the World Economic Forum developed the Accelerated Clean Hydrogen Initiative as part of its Climate Action Platform, Shaping the Future of Energy, Materials, and Infrastructure. 
  • Generating electricity from hydrogen does not produce pollution because the by-product is only heat and water.

Types of Hydrogen

When burned, hydrogen emits only water, although its production can be carbon intensive. As a result, several methods for reducing this impact have been devised, and depending on production methods, hydrogen can be grey, blue, or green, and sometimes pink, yellow, or turquoise, however naming practises vary across countries and over time.

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Green Hydrogen: 

  • The only variety that is created in a climate-neutral manner. It could be vital in the worldwide effort to achieve net-zero emissions by 2050. 
  • Also referred to as 'Clean hydrogen' is produced by splitting water into two hydrogen atoms and one oxygen (electrolysis process) atom using clean energy from surplus renewable energy sources such as solar or wind power. 
  • It presently accounts for roughly 0.1% of total hydrogen production, but this figure is likely to climb as renewable energy costs continue to fall. 
  • Ideal method to balance the Intermittency of Renewables: Storing excess energy during periods of low demand to be fed back into the grid when need increases, while de-carbonizing the chemical, industrial, and transportation sectors.

Grey hydrogen

  • It is the most prevalent type and is produced from natural gas, or methane, by a process known as "steam reforming". This technology emits far fewer emissions than black or brown hydrogen, which employ black (bituminous) or brown (lignite) coal in the hydrogen-production process. It produces carbon dioxide as a by-product.

Black/Brown Hydrogen

  • The main issue with black/ brown hydrogen is that they still produce a significant amount of greenhouse gases, and there is no Carbon Capture and Storage (CCS) as part of the process to mitigate this. Black and brown hydrogen are produced using fossil fuels. The process involves converting coal into gas.

Blue hydrogen

  • It is produced from hydrocarbons where the emissions generated from the process can be captured and stored. They are stored underground by industrial carbon capture storage (CSS). Therefore, sometimes referred to as being carbon neutral.
  • It is a better alternative compared to grey hydrogen.
  • There are arguments that it should be labelled as “low carbon”, as a more accurate description since 10 to 20% of the generated carbon cannot be captured.

Pink hydrogen

  • Nuclear produced hydrogen, often referred to as pink (or sometimes purple or red) is generated through electrolysis. The very high temperatures from nuclear reactors could also be used in other hydrogen productions by producing steam for more efficient electrolysis or fossil gas-based steam methane reforming.

Yellow hydrogen

  • It is the term used for hydrogen made through electrolysis of water using solar power, although some use it to mean hydrogen generated through electrolysis of water using mixed sources depending on what is available. 

Turquoise hydrogen

  • Its production is still in the experimental phase. It sits between blue and green hydrogen and uses methane pyrolysis as a production method. The outputs of this process are the hydrogen and carbon, however unlike steam reformation the carbon is solid.  This means there’s no requirement for CCS, the solid carbon can be used in other applications such as a soil improver or the manufacturing of goods like tyres.

Challenges

  • Economic Sustainability: One of the major obstacles that the industry faces in commercialising hydrogen is the economic sustainability of harvesting green or blue hydrogen. 
  • The electrolysis process, which is used to make green hydrogen, takes a considerable quantity of electricity, and renewable electricity is quite expensive. 
  • Nascent stage technology: Carbon capture and storage (CCS) and hydrogen fuel cell technologies are in their early stages and are expensive, which raises the cost of hydrogen production.
  • In India, there is currently a scarcity of infrastructure for the generation, storage, and transport of green hydrogen. This includes a scarcity of hydrogen refuelling stations and pipes for hydrogen transport.
  • Limited Adoption: Despite the potential benefits of green hydrogen, adoption of this technology in currently restricted. 
  • This is owing to a lack of public awareness and comprehension of green hydrogen, as well as a lack of incentives for businesses to use this technology.
  • Cost competitiveness: One of the main issues facing the industry in commercialising hydrogen, is the extraction of green hydrogen. 
  • On a per-mile basis, hydrogen must be cost-competitive with conventional fuels and technology for transportation fuel cells.

Way Forward

  • Increasing the use of renewable energy sources, so as to minimise the cost of green hydrogen generation.
  • Improve in infrastructure for its production, storage, and delivery: Construction of hydrogen refuelling stations as well as pipes, for transporting hydrogen and make green hydrogen more accessible. 
  • Role of Governments: By implementing regulatory incentives such as tax credits and subsidies to encourage the production and use of green hydrogen, the government can play a critical role in boosting its acceptance.