Current Affairs

Power Sector in India

  • Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy.
  • The fundamental principle of India’s power industry has been to provide universal access to affordable power in a sustainable way.
  • The Government has made significant efforts over the past few years to turn the country from one with a power shortage to one with a surplus by establishing a single national grid, fortifying the distribution network, and achieving universal household electrification.
  • India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable non-conventional sources such as wind, solar, agricultural and domestic waste.
  • Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.

Facts Associated with Power Sector in India:

  • India was ranked 4th in wind power, 5th in solar power and 4th in renewable power installed capacity, as of 2020.
  • India is the only country among the G20 nations that is on track to achieve the targets under the Paris Agreement.
  • As of October 31, 2022, India’s installed renewable energy capacity (including hydro) stood at 165.94 GW, representing 40.6% of the overall installed power capacity.
    • Solar energy is estimated to contribute 61.62 GW, followed by 41.84 GW from wind power, 10.70 GW from biomass, 4.92 GW from small hydropower, and 46.85 GW from hydropower.
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  • The peak power demand in the country stood at 210.79 GW on June 9, 2022.

Why is India at an Advantage:

  • Growing Demand:
    • India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 408.71 GW as of October 31, 2022.
    • Growing population along with increasing electrification and per-capita usage will provide further impetus. Power consumption is estimated to reach 1,894.7 TWh in 2022.
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  • Attractive Opportunities:
    • Under the Union Budget 2022-23, the government announced the issuance of sovereign green bonds, as well as conferring infrastructure status to energy storage systems, including grid-scale battery systems.
    • In the same budget, Rs. 19,500 crore (US$ 2.57 billion) was allocated for a PLI scheme to boost manufacturing of high-efficiency solar modules.
  • Policy Support:
    • 100% FDI allowed in the power sector has boosted FDI inflow in this sector.
    • Schemes such as Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS) are expected to augment electrification across the country.
  • Higher Investments:
    • As per the National Infrastructure Pipeline 2019-25, energy sector projects accounted for the highest share (24%) out of the total expected capital expenditure of Rs. 111 lakh crore (US$ 1.4 trillion).
    • Total FDI inflow in the power sector reached US$ 16.39 billion between April 2000-June 2022.

Issues Associated with Power Sector

  • Challenges in fuel supply: include unequal contractual provisions, inadequate supply, and poor transport logistics. Coal is transported over long distances through railways, but such long haulage leads to increased delivery costs, thefts and life-cycle energy consumption
  • Challenges to open access: While all states in India have notified open access, only 19 have determined all the charges (cross-subsidy charges, wheeling charges, transmission charge) on open access.
  • Poor financial health of DISCOMS: The main causes of which include unmetered consumption, low collection efficiency, and high technical losses due to insufficient capital expenditure on up-gradation of existing infrastructure. The extent of commercial losses of DISCOMS across India increases by over 50% in the absence of subsidy.
  • High Transmission & Distribution Losses: averaging about 22.3% of electricity which is very high as compared to those of the developed countries (6-11%).
  • Under-procurement of power by states - cancelling out costlier Power Purchase Agreements (PPAs) in favour of newer and cheaper agreements.
  • Coordination Issues: Multiple ministries and agencies are currently involved in managing energy-related issues which presents challenges of coordination and optimal resource utilisation, thus undermining efforts to increase energy security.

Government Policies & Initiatives

The Government of India has identified the power sector as a key sector of focus to promote sustained industrial growth. Some initiatives by the Government to boost the Indian power sector are as below:

  • In the Union Budget 2022-23, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost manufacturing of high-efficiency solar modules.
  • As of August 24, 2022, over 36.86 crore LED bulbs, 72.18 lakh LED tube lights and 23.59 lakh energy-efficient fans have been distributed across the country, saving around 48,411 million kWh per year and around Rs. 19,332 crore (US$ 2.47 billion) in cost savings.
  • As of November 2022, over 51.62 lakh smart metres have been deployed under the National Smart Grid Mission (NSGM), with a further 61.13 lakh to be deployed.
  • Electrification in the country is increasing with support from schemes like Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY), Ujwal DISCOM Assurance Yojana (UDAY), and Integrated Power Development Scheme (IPDS).
  • In order to meet India’s 500 GW renewable energy target and tackle the annual issue of coal demand supply mismatch, the Ministry of Power has identified 81 thermal units which will replace coal with renewable energy generation by 2026.
  • In February 2022, a parliamentary standing committee recommended the government to take steps to increase the loan limit for the renewable energy sector under priority sector lending. The current limit stands at Rs. 30 crore (U$ 3.93 million).
  • In November 2021, the government announced future plans to increase the funding under the PLI scheme for domestic solar cells and module manufacturing to Rs. 24,000 crore (US$ 3.17 billion) from the existing Rs. 4,500 crore (US$ 594.68 million) to make India an exporting nation.
  • In November 2021, Energy Efficiency Services Limited (EESL) stated that it will partner with private sector energy service companies to scale up its Building Energy Efficiency Programme (BEEP).
  • The Pradhan Mantri Sahaj Bijli Har Ghar Yojana, “Saubhagya”, was launched by the Government of India with an aim of achieving universal household electrification. As of March 2021, 2.82 crore households have been electrified under this scheme.

Road Ahead

  • In the current decade (2020-2029), the Indian electricity sector is likely to witness a major transformation with respect to demand growth, energy mix and market operations.
  • India wants to ensure that everyone has reliable access to sufficient electricity at all times, while also accelerating the clean energy transition by lowering its reliance on dirty fossil fuels and moving toward more environmentally friendly, renewable sources of energy.
  • Future investments will benefit from strong demand fundamentals, policy support and increasing government focus on infrastructure.
  • The Government of India is preparing a 'rent a roof' policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022. It also plans to set up 21 new nuclear power reactors with a total installed capacity of 15,700 MW by 2031.
  • The Central Electricity Authority (CEA) estimates India’s power requirement to grow to reach 817 GW by 2030. Also, by 2029-30, CEA estimates that the share of renewable energy generation would increase from 18% to 44%, while that of thermal energy is expected to reduce from 78% to 52%.
  • The government plans to establish a renewable energy capacity of 500 GW by 2030.

TELANGANA GOVT. MOVES SC AGAINST GOVERNOR

Delaying of Bills by the Governors has become a recent flashpoint especially in opposition ruled states. On this premise, State Government of Telangana has filed a writ petition before the Supreme Court under its extraordinary jurisdiction under Article 32 of the Indian Constitution against Telangana Governor for her refusal to approve ten bills passed by state assembly. Providing assent to Bills passed by the State Legislature has been provided under Article 200 of the Indian Constitution.

Relation of Extraordinary Jurisdiction with PILs

  • Supreme Court has started entertaining matters in which interest of the public at large is involved.
  • Such petitions can be moved by any individual or group of persons either by filing a Writ Petition at the Filing Counter of the Court or
  • by addressing a letter to Hon'ble the Chief Justice of India highlighting the question of public importance for invoking this jurisdiction.
  • Such concept is popularly known as 'Public Interest Litigation' and several matters of public importance have become landmark cases.
  • This concept is unique to the Supreme Court of India only and perhaps no other Court in the world has been exercising this extraordinary jurisdiction.
  • A Writ Petition filed is dealt with like any other Writ Petition and processed as such.
  • In case of a letter addressed to Hon'ble the Chief Justice of India the same is dealt with in accordance with the guidelines framed for the purpose.

Writ Petition Filed by Telangana Govt. Against Governor

  • Bench of Supreme Court led by Chief Justice of India agreed to hear a petition filed by the Telangana government against Governor for creating a “constitutional impasse” by refusing to act on several Bills passed by the State legislature.   
  • Arguments by the State Government
  • The state government highlighted that ten Bills have been pending awaiting the assent of the Governor since September 2022.
  • The Governor may or may not give assent to the Bill but should not delay the legislations by pocketing the Bill indefinitely.
  • Any refusal on the part of the Governor, including delay, will defeat parliamentary democracy and will of the people.
  • In a parliamentary democracy, the Governor has no discretion to delay necessary assent as required on the Bills.       
  • The State urged the court to declare that the inaction, omission and failure to comply with the constitutional mandate i.e. assent of the Bills by the Governor as highly irregular, illegal.   
  • The state also suggested that under Article, 163 the Governor is not “expected to act independently”.

Understanding the Powers of Governor to give Assent to Bills

  • Article 200 of the Indian Constitution empowers the Governor to declare either that he assents to the Bill or that he withholds assent therefrom or that he reserves the Bill for the consideration of the President.
  • Thus, a Bill passed by the Assembly or both houses in case of Bicameral Legislature, is presented to the Governor who has the following alternatives:
  • He/she may give assent to the Bill; or
  • He/She may withhold assent therefrom; or
  • He/She may return the Bill to the Legislature for reconsideration; or
  • He/She may reserve it for the consideration of the President.
  • When the Bill is so returned as per the third scenario, the House or Houses shall reconsider the Bill accordingly. And if the Bill is passed again by the House or Houses with or without amendment and presented to the Governor for assent
  • The Governor shall not withhold assent therefrom (so it becomes mandatory for the Governor to give assent to the Bill if the Bill is passed by the House the second time with or without changes as suggested by the Governor).
  • Another proviso clause under Article 200 states that the Governor shall not provide assent to the Bill and reserve the same for the consideration of the President if the bill intends to take away powers of High Court.   

ARTICLE 201 - Bills reserved for President’s consideration

Understanding Article 201 - Bills reserved for consideration

  • When a Bill is reserved by a Governor for the consideration of the President, the President shall declare either that he assents to the Bill or that he withholds assent therefrom.
  • Provided that, where the Bill is not a Money Bill - the President may direct the Governor to return the Bill to the House or Houses of the Legislature of the State together with such a message as is mentioned in the first proviso to article 200.
  • And when a Bill is so returned, the House or Houses shall reconsider it accordingly within a period of six months from the date of receipt of such message and, 
  • if it is again passed by the House or Houses with or without amendment, it shall be presented again to the President for his consideration.

No Time Limit Imposed Under Article 200 or 201

Article 200

  • The Constitution does not impose any time limit within which the Governor needs to make decisions under Article 200 regarding providing assent to Bills.
  • There is no means to compel the Governor to make him/her provide his/her assent if the Governor decides to keep the Bills pending.
  • Further, a bill pending the assent of Governor under Article 200 does not lapse as a result of dissolution of state assembly.

Article 201

  • Even under Article 201, no time limit has been provided under which the President has to assent or reject the Bill once the Governor reserve the Bill for President’s Assent.
  • The Article ends with the words that the Bill shall again be presented again to the President for his consideration.
  • But what happens after the Bill is presented again has not been mentioned. So, technically, the President is not time bound to assent or reject the Bill which is sent again for his consideration and the Bill can be delayed.

Article 163

  • Another constitutional provision of importance is Article 163 which states that there shall be a Council of Ministers with the Chief Minister at the head to aid and advise the Governor in the exercise of his functions, except in so far as he is by or under this Constitution required to exercise his functions or any of them in his discretion.  
  • However, the discretionary powers of the Governors have not been explicitly defined in the constitution and can only be ascertained by going through certain constitutional provisions.

Governor’s Discretionary Powers

  • Article 163 of the Indian Constitution empowers the council of minister to aid and advise the Governor in the exercise of his functions along with certain discretionary powers. This acts as mechanism of checks and balance against any unconstitutional decisions taken by the state government.   
  • Governor functions both and head of the state and as an agent of the centre and accordingly has been bestowed with the following discretionary powers:
  • Reserve any Bill for the consideration of the President - Article 201.
  • Appoint Chief Minister of State - Article 164(1), inviting leader of the single largest party in to prove majority in case of hung assembly. 
  • Dismiss the ministry as the CM and his ministers holds office during the pleasure of the Governor - Article 164(1) 
  • Sending report to the President under Article 356 - failure of Constitutional machinery in States. 
  • Governor’s responsibility for administration of Tribal Areas and responsibilities placed on the Governor under Article 371A (Nagaland), 371C (Manipur), 371H (Arunachal Pradesh). 

Important Supreme Court Judgments on Powers of Governor

  • Shamsher Singh v. State of Punjab (1974) - Supreme Court said: “The Governor has no right to refuse to act on the advice of the Council of Ministries. Such a position is antithetical to the concept of ‘responsible government’.”     
  • B.P. Singhal v. Union of India (2010)
  • Five Judge Bench of Supreme on removal of governors mentioned about the dual role of governor: 1. Agent of the Centre & 2. Head of the state.
  • SC also held that there may be instances of conflict between Centre and states where the governor has to act neutrally.
  • Nabam Rebia and Bamang Felix v Deputy Speaker
  • Supreme Court decided that Governor can summon, prorogue and dissolve the House, only on the aid and advice of the Council of Ministers with the Chief Minister as the head and not at his own.
  • The Court gave its decision based on discussion in Constituent Assembly debates whereby it was finalised not to give discretionary power to Governor under Article 174. 

Need for Politically Neutral Governor – Sarkaria Commission’s Recommendation

  • Sarkaria Commission on Centre-State Relations, the National Commission to Review the Working of the Constitution and Punchhi Commission has reiterated the need for politically neutral governor.
  • Neutrality of governor is best displayed when he uses his discretionary powers as per the constitution. However, the use of discretionary power by the Governor also leaves certain space for its misutilisation.
  • Sarkaria Commission has recommended the following criteria which must be considered while appointing Governors of state:
  • He should be eminent in some walk of life.
  • He should be a person from outside the State.
  • He should be a detached figure and not too intimately connected with the local politics of the State; and
  • He should be a person who has not taken too great a part in politics generally and particularly in the recent past.  
  • In selecting a Governor in accordance with the above criteria, persons belonging to the minority groups should continue to be given a chance.

Way Forward –

Let us wait for the Supreme Court’s order on the aspect of time limit under which Governor needs to provide assent under Article 200 of the Indian Constitution.

Europe picks up more arms even as global weapon imports drop (SIPRI)

SIPRI’s has released its latest report titled “Trends in International Arms Transfers, 2022”

Stockholm International Peace Research Institute (SIPRI)

SIPRI is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament. Established in 1966, SIPRI provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public. SIPRI defines major arms as aircrafts, warships, tanks, artillery, missiles and various heavy defence systems. SIPRI uses the Trends Indicator Values (TIV) methodology to present the figures on global arms imports.

Highlights of the report:

  1. Ukraine was the third largest importer of arms in 2022 (sharp increase of imports from U.S. and Europe in the latest period after Russian invasion).
  2. Europe’s share in global volume of arms transfers increased significantly by 47% in the five-year period between 2013-17 and 2018-22.
  3. The global volume of international arms transfers fell by 5.1% between 2018-22.
  4. The share of West Asia, Americas, Asia, and Oceania decreased marginally in the last five years.
  5. U.S. arms exports increased by 14% between 2013-17 and 2018-22. It accounted for 40% of global arms exports in 2018-22.
  6. Russia’s arms exports fell by 31% between 2013-17 and 2018-22.

Why European countries has increased their arms imports?

  1. Security concerns: Many European countries have increased arms imports due to security concerns, including conflicts in Ukraine, instability in the Middle East, and tensions with Russia.
  2. Modernization: European countries are also increasing arms imports as part of modernization efforts, which involve replacing outdated or obsolete weapons systems with new equipment and technologies.
  3. Geopolitical considerations: Some countries may view arms imports as a way to build strategic relationships with other countries, such as purchasing weapons from the United States to strengthen ties or signal commitment to NATO.

Way Forward:

The prioritization should shift towards investing in human development by reducing defense spending. To achieve global peace, reduce armed conflicts, and foster sustainable development, disarmament is an essential step. While there has been some success in eliminating certain weapons, significant obstacles still exist. It is imperative that governments, organizations, and individuals unite in their efforts to promote disarmament through advocacy, education, and action. Ultimately, the aim should be to create a safer and more secure future for everyone.

Intergovernmental Panel on Climate Change (IPCC)

The Intergovernmental Panel on Climate Change (IPCC) is meeting in Switzerland this week to finalise the last report of its sixth assessment cycle, which is expected to set up the tempo for a string of climate change-focused discussions over the next fortnight.

About Intergovernmental Panel on Climate Change (IPCC)

  • It was set up in 1988 by the World Meteorological Organisation (WMO) and the UN Environment Programme (UNEP). 
  • It has a secretariat in Geneva, Switzerland, hosted by the WMO, and is governed by 195 member states.
  • Its main activity is to prepare Assessment Reports, special reports, and methodology reports assessing the state of knowledge of climate change.
  • It is  a scientific body whose periodic assessments of climate science form the basis of global climate action, is set to finalise what is known as the Synthesis Report, incorporating the findings of the five reports that it has released in the sixth assessment cycle since 2018.
  • However, the IPCC does not itself engage in scientific research.
  • Instead, it asks scientists from around the world to go through all the relevant scientific literature related to climate change and draw up the logical conclusions.

About Assessment Reports

  • The IPCC’s Assessment Reports (ARs), form the basis for government policies to tackle climate change, and provide the scientific foundation for the international climate change negotiations.
  • Six Assessment Reports have been published so far, the sixth report (AR6) coming in three parts — the first in August 2021, the second in February 2022, and the third to be finished in March 2023.

About Synthesis Report

  • It is the last of the Sixth Assessment reports.
  • It is supposed to be a relatively non-technical summary of the previous reports, aimed largely at policymakers around the world.
  • It is meant to address a wide range of policy-relevant scientific questions related to climate change, but, like all IPCC reports, in a non-prescriptive manner.

What previous reports have said

  • The first Assessment Report (1990)  formed the basis for the negotiation of the UN Framework Convention on Climate Change (UNFCCC) in 1992, known as the Rio Summit.
  • The second Assessment Report (1995) -AR2 was the scientific underpinning for the Kyoto Protocol of 1997.
  • The third Assessment Report (2001) presented new and stronger evidence to show global warming was mostly attributable to human activities.
  • The fourth Assessment Report (2007) won the 2007 Nobel Peace Prize for IPCC. It was the scientific input for the 2009 Copenhagen climate meeting.
  • The fifth Assessment Report (2014) -AR5 formed the scientific basis for negotiations of the Paris Agreement in 2015.

AUKUS: Nuclear Submarine to Australia

The AUKUS partnership for Canberra, London, and Washington is about promoting deterrence and stability in the Indo-Pacific. For China, AUKUS, along with the Quadrilateral forum or the Quad, is one of the dangerous “small cliques” that the US is building in Asia. China has warned Canberra that Australia is making an “expensive mistake” that will “plant a time bomb” in the region.

The future of this partnership will involve Canberra, London and Washington to overcome several technical and policy issues in implementing the AUKUS road map. The current estimated cost of the project will be around $250 billion. It will be nearly three decades before an Australian-built nuclear submarine will enter service.

This multi-decadal plan will trigger multiple strategic consequences:

  1. AUKUS is in essence about transforming Australia’s strategic capabilities and making it a powerful factor in shaping the Indo-Pacific regional security environment. AUKUS will see a deeper partnership between the US, UK, and Australia in developing a range of underwater technologies to cope with the dramatic expansion of Chinese naval capabilities in the Indo-Pacific.
  • The UK is the lynchpin in the AUKUS, with its critical role in designing and developing a new class of nuclear-powered submarines by including cutting-edge US technologies to Britain’s domestic nuclear capabilities and the Australian demand. AUKUS will begin to change that by reinforcing London’s renewed claim for a long-term role in Indo-Pacific security.
  • AUKUS has reinvigorated the idea of an “Anglosphere” that speaks of the enduring geopolitical bonds between the US, UK, Australia, Canada, and New Zealand. India, which had difficult ties with the Anglosphere in the past, is now seeing a rapid expansion of its ties with the English-speaking world.

FUNCTIONAL CHALLENGES THAT AUKUS WILL FACE

  1. It is for the U.S. to build nuclear-powered attack submarines (SSNs) for Australia but the U.S. policymakers seem sceptical about the option.
  2. Even if Australia acquires a submarine the integration with the onboard combat system would be difficult due to differences between the current Australian and American fleets.
  3. Canberra could announce a modified version or new design i.e. a completely new AUKUS-class design to be acquired by all three countries but again the biggest of challenges which Australia has to figure out how to get around U.S. export controls. As the U.S.’s stringent export control and protocol regime could jeopardise the technology transfer agreement.
  4. Nuclear technology is difficult under the international system. For Australia to operate nuclear-powered submarines with high-enriched uranium (HEU) fuelled reactors, it will have to exploit a loophole that allows non-nuclear weapon countries to withdraw the fissile material required for submarine reactors from the International Atomic Energy Agency (IAEA)-monitored stockpile.
  5. For India Acquiring nuclear propulsion technology is likely to be complicated as India is not a party to the Non-Proliferation Treaty.

ABOUT AUKUS USA, UK and Australia have formed a security partnership in Indo–Pacific with an aim to counter Chinese aggression. This group has been created in addition to already existing collaborations like QUAD, 5 eyes alliance etc. In this backdrop let us understand the various dimensions of AUKUS and its implications on the geo-politics of Indo- Pacific.

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BENEFITS OF AUKUS FOR INDIA

  1. Strengthens India-Australia relations
    • Aims at improving defence capabilities of Australia which is a strategic partner of India.
    • India & Australia recently held their first round of 2+2 dialogue to deepen their defence & strategic ties.

India can now see a dramatic upgradation of those Australian capabilities in the coming years. This should also open the door for greater S&T cooperation between India and Australia which should eventually expand to cover sensitive strategic areas.

2. Augments Quads capability

  • Augment capacity of Quad of which both US and  Australia are members.
  • This is a first of its kind defence initiative of the US in the Indo - Pacific since Quad has not clearly outlined its defence motives clearly.
  • AUKUS is beneficial for India because it reflects continued & intensifying US-Australian concerns about China.
  • Bolster both Australian and American ability to deter China or to respond in the event of a crisis. Thus, supplements Quad’s efforts.

3. Clarifies role of Big Powers in Indo - Pacific

  • Indian policymakers have gone from worrying about too much US presence and interest in Indian Ocean to worrying about Washington paying too little attention to this region. AUKUS could ease this concern.
  • AUKUS conveys the U.K.’s seriousness about its tilt to the Indo-Pacific and signals a change in UK’s assessment of China.
  • AUKUS rollout gives India an opportunity to boost diplomatic, defence & trade ties, particularly with France. France will probably double down on its efforts to secure arms deals with India—for commercial and political economic reasons and maybe even to get one over on the U.S.
  • France’s reaction to AUKUS could make it more willing and able to help India attain nuclear-powered submarines in addition to or in place of Russia.

Thus it can be concluded that India has now  a rare opportunity to develop a unique set of arrangements of its own with Washington and its allies that will strengthen India’s comprehensive national power as well as enhance its contribution to regional peace and security.

CHALLENGES FROM AUKUS FOR INDIA

  1. Tussle between AUKUS nations & France discourages consensus on larger issue of rise of China.
  2. France's discontent feeds China’s narrative about U.S. unreliability.
  3. Despite India’s increasing collaboration with US, India did not get the offer that US has offered to Australia under AUKUS.
  4. Creation of AUKUS signals a dilution of USA’s interest in India, in its Indo – Pacific strategy.
  5. Shrinks potential space available for Quad, and India, to play a serious role in region’s security architecture.

Multiple Indicator Survey (MIS) - NSS 78th Round Report [2020-21]

The National Sample Survey Office (NSSO) carried out the Multiple Indicator Survey (MIS) covering the entire country in its 78th round. The objectives of the MIS were:

  • To collect information for developing estimates of some important Sustainable Development Goal (SDG) indicators.
  • To collect information Purchase/Construction of house(s)/ flat(s) by the household for residential purpose after 31.03.2014 and information on Migration.
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OBC census

The Union Government on March 14 informed Lok Sabha that the Justice G. Rohini Commission which is looking into the sub-categorisation has been working without the data from the last Socio-Economic Caste Census (SECC) conducted in 2011.

Need for Caste-based Census:

  • Estimate change in demography: Present reservations and other welfare scheme entitlements to OBC are still based on the population estimates of 1931.
  • Bring about social justice: Help governments’ welfare schemes reach the most backward and deprived castes that have been marginalised till date.
  •  Help rationalize reservation policy as per need of a specific caste or community: Land fragmentation and decades of agricultural stagnation have turned many upper caste landowners into marginal farmers. Whereas rising rural wage has benefitted some of the backward classes including Dalits.
  • Demand for Reservations: There has been demands to expand OBC reservation (as the present 50% cap is arbitrary) and inclusion of dominant castes like Jats, Kapus, Patidars, Marathas etc. into OBC category. Often these demands are not based on scientific evidence. Hence, a Caste based socio-economic census will bring out the real picture.
  • OBC Sub-categorisation: OBC membership is large and heterogeneous, with vast intra-caste differences in socio-economic conditions. Some better-off groups among OBC castes have cornered a disproportionately large share of seats reserved for OBCs giving rise to demand of sub-classification of various caste groups among OBCs. Caste based socio economic census will help in such classification.
  • Assess impact of Affirmative action: A socio economic caste census would help in assessing how far the extension of reservations to OBCs benefited them.

Rohini Commission:

This Commission was constituted under article 340 of Constitution with mandate is to examine issues of sub-categorization within Other Backward Classes in Central List.

 Findings/suggestions:

  • It found that 97% of all jobs and educational seats have gone to just 25% of all sub-castes classified. And around 25% of these jobs and seats went to just 10 OBC communities.
  • 983 OBC communities, 1/3rd of the total, had almost had zero representation in jobs and admissions in educational institutions.
  • Proposed to divide 27% reservation for the castes on the Central list into four sub-categories.
Rohini Commission: This Commission was constituted under article 340 of Constitution with mandate is to examine issues of sub-categorization within Other Backward Classes in Central List.  Findings/suggestions: It found that 97% of all jobs and educational seats have gone to just 25% of all sub-castes classified. And around 25% of these jobs and seats went to just 10 OBC communities.983 OBC communities, 1/3rd of the total, had almost had zero representation in jobs and admissions in educational institutions. Proposed to divide 27% reservation for the castes on the Cent

Kuiper Internet Satellite

Kuiper is a satellite internet constellation project that is being developed by Amazon. The project aims to provide high-speed broadband internet access to areas of the world that currently lack reliable internet connectivity.

Features

  • The Kuiper constellation will consist of over 3,000 satellites that will operate in the Ka-band frequency range.
  • The satellites will be capable of providing internet speeds of up to 400 Mbps, which is significantly faster than most current satellite internet services.
  • The Kuiper satellites will be launched into low Earth orbit, which will enable them to provide low-latency internet service.

Purpose

The primary purpose of the Kuiper satellite constellation is to provide high-speed broadband internet access to areas of the world that currently lack reliable internet connectivity. This includes rural areas, developing countries, and other locations where traditional internet infrastructure is not available or is prohibitively expensive.

Advantages of satellite-based internet

  • Reduced Latency: 20-30 milliseconds, roughly the time it takes for terrestrial systems to transfer data. The transmission from a satellite in geostationary orbit has a latency of about 600 milliseconds. 
  • High Bandwidth: Satellite internet connections can handle high bandwidth usage, so your internet speed/quality shouldn’t be affected by lots of users or “peak use times.”
  • Viability: The signals from satellites in space can overcome obstacles faced by fibre-optic cables or wireless networks easily. We don’t need a phone line for satellite internet.
  • Quick recovery post-disaster.
  • We don’t need a phone line for satellite internet.

Disadvantages of satellite-based internet

  • More vulnerable to bad weather.
  • Coverage: Due to its lower height, its signals cover a relatively small area. 
  • Space Debris: It will generate more space debris.
  • Difficulty in Space Studies: The constellations of space internet satellites will make it difficult to observe other space objects, and to detect their signals. Light reflected from the man-made satellites can interfere with — and be mistaken for — light coming from other space bodies.
  • Light Pollution: There will be an increased risk of light pollution.

Significance

  • Bridging the digital divide: The Kuiper satellite constellation has the potential to bring internet connectivity to areas of the world that currently lack reliable internet access, particularly in rural and remote regions. This could help bridge the digital divide and provide more equitable access to information and communication technologies.
  • Enabling economic development: Access to high-speed internet can enable economic development by providing businesses with the tools they need to reach new markets, improve efficiencies, and create jobs.
  • Supporting education: Access to high-speed internet can help improve educational opportunities by providing students and teachers with access to online educational resources, remote learning tools, and virtual classrooms.
  • Enhancing emergency response: High-speed internet access can be critical during emergencies, providing first responders with access to real-time information and communication tools that can save lives.
  • Advancement of IT infrastructure: the Kuiper project is one of several satellite internet constellations currently being developed by major technology companies, which suggests that satellite internet is likely to become an increasingly important part of the global telecommunications infrastructure in the coming years.
  • Advancing space technology: The development of the Kuiper satellite constellation is an important milestone in the advancement of space technology, particularly in the area of satellite communication systems. This could have broader implications for space exploration and the development of space-based infrastructure.

WPI and CPI

Inflation based on the Wholesale Price Index (WPI) moderated to a two-year low of 3.85% in February from 4.73% in January, with manufactured products’ inflation cooling from 3% to a little under 2%, and primary articles, food and fuel and power recording milder downturns in the pace of inflation from a month earlier. The base effect also contributed as February 2022 saw a 13.4% pace.

Measurement of Inflation in India

CriteriaWholesale Price IndexConsumer Price Index
LevelMeasures Inflation at Wholesale levelMeasures Inflation at Retail Level
Who Calculates?Office of Economic Advisor, Ministry of Commerce, and IndustryNational Statistical Office, Ministry of Statistics and programme Implementation
Base year2011-122012
CategoriesPrimary Articles Manufactured products Fuel and PowerFood and beverages Pan, Tobacco, and Intoxicants Clothing and Footwear Housing Fuel and Light Miscellaneous- Education, Healthcare, Transportation etc.
Highest WeightageManufactured productsFood and Beverages
Impact of increase in Food itemsLess impact on WPI as compared to CPI since WPI provides higher weightage to manufactured products and lower weightage to Food items.Larger impact on CPI as compared to WPI since it gives more weightage to food products.
Services includedNoYes
Indirect Taxes Included?NoYes
Targeted by RBI?NoYes. The RBI is required to maintain CPI rate of inflation of 4% with a deviation of 2%.

Headline and Core Inflation

The headline inflation simply refers to the inflation in the CPI (or WPI) covering all the categories of goods and services. On the other hand, the core inflation excludes the volatile categories such as food and fuel in order to measure the increase in the prices of goods and services. Hence, a drastic fall in the food and fuel prices can bring down the headline inflation by a to a large extent. However, the core inflation may remain unaffected.

Note: Presently, the RBI is targeting the CPI headline rate of inflation (and not Core Inflation)

Base Effect: To calculate the rate of Inflation, the prices of Goods and services in the current month are compared with the prices in the corresponding month of the previous year.

The rate of inflation in the current month is calculated as

(Prices of Goods in Current Month- Prices of Goods in Corresponding month of Previous year)/ Prices of Goods in Corresponding month of Previous year * 100

As can be seen in the above formula, the denominator (base) is the prices of Goods in the corresponding month of previous year. So, the if the denominator (base) value is lower, the rate of inflation in the current year would be higher. Similarly, if the  denominator (base) value is higher, the rate of inflation in the current year would be lower. This can be understood as seen below:

image 14

Reasons for the rising Inflation in India

  • Imported Inflation: Increase in global commodity prices such as Crude oil, Edible oil etc.
  • Increase in certain food items such as Egg , Edible oils, Fruits, Pulses.
  • Increase in services such as Health, Transport and Communication etc.
  • Low Base effect as the prices of some of the Goods had declined last year due to the pandemic.

What to Target: Headline or Core Inflation?

Presently, the RBI targets CPI headline rate of inflation and not the Core Inflation. In this regard, the Economic Survey 2020-21 has highlighted that sole focus on CPI headline rate of Inflation may not be appropriate on account of number of reasons. Accordingly, it has recommended that a greater focus on core inflation is warranted.

Reasons:

Firstly, Headline inflation may take place due to volatility in prices of Crude oil and Food commodities, over which RBI has no control. For example, failure of monsoons, lack of cold chain infrastructure, supply side bottlenecks etc. usually lead to increase in Food prices.

Secondly, most of the time inflation in Food commodities is transitory and may not require any policy action by the RBI

Thirdly, if the RBI tries to control inflation due to volatility in prices of food commodities, it can prove to be counter productive. For example, to control inflation, rate of interest would increase--> Decline in Investment and Consumption Expenditure--> Economic Slowdown.

Fourthly, to measure inflation correctly, weightage must be assigned to different categories of commodities depending upon their share in the household expenditure. Higher the share, higher should be weightage. The share of food commodities in the household expenditure has declined since 2011-12, yet the CPI gives a weightage of almost 45% to the food commodities.

Martand Temple

Archaeological survey of India is looking towards bringing back artefacts belonging to the medieval History of Jammu and Kashmir that were lost or stolen previously. Among these includes the objects stolen from Martand Temple.

ABOUT MARTAND TEMPLE

  • It is a Hindu temple dedicated to Sun God located near Anantnag in Kashmir Valley of Jammu and Kashmir (Union Territory), India.
  • According to Kalhana in Rajatarangini, Martand Sun Temple was commissioned by Lalitaditya Muktapida in the eighth century AD. Lalitaditya belonged to the Karkota dynasty.
  • Dedicated to Surya, the chief solar deity in Hinduism. Surya is also known by the Sanskrit language synonym Martand.
  • The temple was destroyed by Sikandar Shah Miri in a zeal to Islamise the society under the advice of Sufi preacher Mir Muhammad Hamadani.
  • Other Sun Temples in India: Sun Temple at Konark (Odisha), Sun Temple at Modhera (Gujarat).

Temple architecture:

  • It blended the Gandharan, Gupta and Chinese forms of architecture.
  • Primary shrine in its centre and surrounded by 84 smaller shrines.
  • Temple walls are depicted with the images of lord Vishnu and river goddess such as Ganga and Yamuna.
  • Material: Lime mortar was used with huge blocks of grey limestones.
image 13

ABOUT KARKOTA DYNASTY

  • Duration: 625 − 855 CE
  • Region: Kashmir Valley
  • Founder: Durlabhavardhana
  • Succeeded by: Utpala dynasty (Avanti Varman was the founder)
  • Patronised the both Hinduism (Vaishnavite) and Buddhism (ruins of Stupa, Chaitya and Vihara could be found).
  • Sources for the dynasty: Kalhana’s Rajatarangini, Nilamata Purana, Vishnudharmottara Purana, Chronicles of Xuanzang.
  • Coins: based on the Kushan style (image of king standing or Gods on obverse) with Sharada script. Coins were always inscribed in the name of Kidara I on the reverse. They were made using the mixed metals.
  • Lalitaditya commissioned numerous gold and silver images for temples and monasteries across faiths, and his span is considered to be the zenith of Kashmiri sculpture.

Need to expand India’s refining capacity

India is aiming to add 200 million tonnes (MT) of refining capacity, or around 4 million barrels a day, in the next 10 years to meet the growing demand for fuel. This is important for India’s energy security as India’s oil demand will double to 11.1 million barrels a day (550 MT) by 2045, according to OPEC’s World Oil Outlook. However, the achievement of target is facing challenges

Oil refining in India

Oil refining in India is a significant industry that plays a crucial role in meeting the country's energy needs. India is one of the largest consumers of petroleum products in the world and imports more than 80% of its crude oil requirements. As a result, oil refining has become an important activity in the country.

India has several oil refineries, both public and private, located in different parts of the country. These refineries process crude oil and produce a variety of petroleum products such as petrol, diesel, aviation fuel, liquefied petroleum gas (LPG), kerosene, and others. The Indian oil refining industry has been growing steadily over the years, driven by the increasing demand for petroleum products.

The largest oil refinery in India is located in Jamnagar, Gujarat, and is owned by Reliance Industries. The refinery has a capacity of 1.24 million barrels per day and is one of the largest refineries in the world. Other major refineries in India include the Indian Oil Corporation refineries in Panipat, Gujarat, and Mathura, and the Bharat Petroleum Corporation refinery in Mumbai.

The Indian government has also taken several steps to encourage investment in the oil refining sector. The government has liberalized the sector, allowing private players to enter and operate in the market. It has also set up several Special Economic Zones (SEZs) to promote oil refining and attract foreign investment.

Challenges to addition of refining capacity

  • State-run refiners, which account for 65% of the domestic business, are proving slow to act, with IOC’s Paradip the last greenfield project to be commissioned in 2016 after a long delay.
  • Indian refiners need to add 20 MT of capacity per year to meet the target, but the growth in refining capacity has stalled, expanding by only 17 MT over the past five years, compared to 21 MT in the previous five years.
  • Over the next few years, only around 50 MT of capacity may come up with state-owned refiners sitting on decisions for the past six years to build new projects, despite government backing.
  • Exports leave India with less fuel for domestic use. Earnings from oil product exports accounted for 15% of India’s gross exports by value in April-January FY23. Reliance and Nayara account for the bulk of exports with state oil companies catering to the domestic market.
  • The upcoming capacity of 50 MT may yield only around 30 MT of fuels because around 25% of the capacity from new refineries will be dedicated to petrochemicals, and another 10% used to run the refinery, according to a former chairman of a state refiner.
  • State refiners slowed capacity addition fearing an exodus to EVs, yet EV sales next fiscal will trail state targets by half, according to a Business Standard report.
  • While the current impetus on decarbonisation is expected to cast a shadow over long-term consumption growth, a significant decline in consumption of petroleum products remains unlikely.

In order to solve the challenges, following measure can be suggested.

Measures Suggested

  • Encourage private investment: The government could create a more conducive environment for private companies to invest in the oil refining sector. This could include offering tax incentives, reducing regulatory hurdles, and simplifying the approval process for new projects.
  • Streamline decision-making: The government could work to streamline the decision-making process for state-owned refiners. This could help reduce delays and ensure that new projects are approved and completed more quickly.
  • Improve efficiency: The government could work with refiners to identify opportunities to improve efficiency and increase output from existing refineries. This could help address the current shortfall in refining capacity and reduce the need for new projects.
  • Increase exports: The government could encourage refiners to increase exports of refined petroleum products. This could help generate additional revenue to fund new projects and reduce the impact of lower domestic demand.
  • Develop alternative fuels: The government could invest in research and development of alternative fuels, such as biofuels or hydrogen. This could help reduce India's dependence on fossil fuels and provide new opportunities for refiners to diversify their businesses.
  • Address the issue of petrochemicals: The government could work with refiners to address the issue of petrochemicals. This could include developing policies to incentivize investment in petrochemical production and reducing the amount of refining capacity dedicated to petrochemicals to free up more capacity for fuel production.
  • Focus on domestic demand: The government could prioritize meeting domestic demand for refined petroleum products over exports. This could help ensure that India has sufficient capacity to meet its growing energy needs and reduce dependence on imports.

Higher Education

AISHE report
The Ministry of Education, Government of India has released All India Survey on Higher Education (AISHE) 2020-2021.

The Ministry has been conducting All India Survey on Higher Education (AISHE) since 2011, covering all higher educational institutions located in Indian Territory and imparting higher education in the country.

The survey collects detailed information on different parameters such as student enrolment, teacher’s data, infrastructural information, financial information etc.  

Key findings of the survey: The total enrolment in higher education has increased to nearly 4.14 crore in 2020-21 from 3.85 crore in 2019-20.  Since 2014-15, there has been an increase of around 72 Lakh in the enrolment (21%).

Higher education's Gross Enrolment Ratio (GER) has also surpassed 27.3%. The GER measures the proportion of adults between the ages of 18 and 23 who are enrolled in college. It was determined using data from the 2011 Census.The Female enrolment has increased to 2.01 crore from 1.88 crore in 2019-20. 

There has been an increase of around 44 Lakh (28%) since 2014-15.

Female GER has overtaken Male GER since 2017-18. Gender Parity Index (GPI), the ratio of female GER to male GER, has increased from 1 in 2017-18 to 1.05 in 2020-21.

There has been a noticeable increase in the enrolment of students from Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Classes (OBC) in higher education institutions between 2014–15 and 2020–21.

ST students have seen the largest growth, with a nearly 47% increase. Government universities constitute contribute 73.1% of total enrolment of students. Whereas private universities account for only 26.3% of the total enrolment.

The University Grant Commission (UGC) has unveiled draft norms to allow foreign universities to set up campuses in India. The draft rules are intended to regulate the entry and operations of Foreign Universities to conduct various degrees, diplomas and certificate programmes.

The draft regulations provided foreign universities intended to setup in India with significant freedom in terms of fee structure, recruiting staff, designing courses and awarding degrees, diplomas and certificates. This was done, in line with National Education Policy (NEP) 2020, to promote internationalisation of the higher education in India.

Internationalisation of Higher Education:

Internationalisation of higher education promotes sharing of best academic and research practices through interactions between diverse education systems, and helps in developing global citizens through mobility of students and scholars. In Indian context, this aspect of internationalisation of higher education is as old as education itself. Ancient universities like Takshashila and Nalanda attracted many scholars from various parts of the globe. In modern times, globalisation gave opportunities to attract international students, academics and funding and many Indian Higher Education Institutions are now committed to increase their global outreach.

Need for Internationalisation of Higher education in India:

  • Improve global rankings: Though few Indian educational institutions are appearing in world rankings of universities, the score for “Internationalisation” among all the indicators is found to be relatively poor for them. Thus, Internationalisation of Higher Education may act as the catalyst to spur many Indian universities to improve their global rankings.
  • Potential for foreign investment: There is exponential growth in number of students enrolled in higher education outside their country and this trend is likely to continue.

However, as on December 2020, India had more than 10 Lakhs students studying abroad (MEA 2021). whereas, number for foreign students coming to India for the purpose of higher education as per All India Survey on Higher Education (AISHE) 2019-2020, is around 50,000.

  • Quality upgradation: systematic internationalisation of higher education will result in increased global outreach, knowledge acquisition, development of internationally relevant curricular framework and sharing of teaching-learning-research best practices.

In order to promote internationalization of higher education in India, the Government of India has taken several initiatives. These include:

  • Establishment of the National Commission for Higher Education and Research (NCHER) which aims to facilitate and coordinate the internationalization of higher education in India.
  • Launch of the Study in India programme, which seeks to attract more foreign students to Indian universities.
  • Launch of several international scholarships, such as the Prime Minister's Scholarship Scheme and the Central Sector Scheme of Scholarship for Foreign Students, to attract students from abroad.