11 June 2016

SYNERGY IAS
DAILY CURRENT
AFFAIRS 11th June
2016

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SYNERGY
Date: 11th June 2016

GS III: Issue related to

Infrastructure Energy
The UMPPs are seen as an
expansion of the MPP (Mega
Power Projects) projects that the
Government of India undertook
in the 1990s, but met with
limited success. The Ministry of
Power, in association with the
Central Electricity Authority and
Power Finance Corporation Ltd.,
has launched an initiative for the
development of Coal-based
UMPP's in India. These projects
will be awarded to developers
based on Competitive Bidding.

Current Affairs
UMPP
(ULTRA
PROJECTS)

MEGA

POWER

Context: Ultra Mega Power Projects (UMPP) are a series of ambitious power stations
planned by the Government of India. This would entail the creation of an additional
capacity of at least 100,000 MW by 2022. Ultra Mega Power projects, each with a
capacity of 4000 MW or above, are being developed with the aim of bridging this gap.
Based on Supercritical Technology, 16,000 MW of capacity has been contracted through
the competitive bidding process for UMPPs. The average tariff for these projects is in
the range of 2-3 per kwh which is much lower than the recent cost plus tariffs.
Gujarat, the Most Energy Surplus State in the Country, wants another mega investment
in power generation even as other states seem to be no longer interested in hosting Ultra
Mega Power Projects (UMPP).
Gujarat housed the first UMPP in the country when Tata Power started generation from
Mundra unit in 2012. If the second UMPP goes through, it would be the First Thermal
Power Generation Project to be tendered by the NDA government.

Why Gujarat Can Sell Power to Other States:

Southern Region faces power deficit of

10%
North and Northeast have power deficit
of 1.6% and 3.8%, respectively
West and East are power surplus regions,
with Gujarat and Maharashtra facing no
deficit
Gujarat has Tata Power-promoted
Mundra UMPP

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Some More about UMPP:

Ministry of Power launched a unique initiative in 2005-06 to facilitate the

development of Ultra Mega Power Projects (UMPPs) at both the Coal pitheads and
Coastal locations aimed at delivering power at competitive cost to consumers by
achieving economies of the scale.
The Central Government has accordingly taken the initiative for facilitating the
development of UMPPs under Tariff based Competitive Bidding Route using Super
Critical Technology on Build, Own and Operate (BOO) basis.
Central Electricity Authority (CEA) is the Technical Partner and Power Finance
Corporation (PFC) is the Nodal Agency.
In order to enhance Investors confidence, reduce Risk Perception and get good
response to competitive bidding, PFC incorporates Special Purpose Vehicles (SPVs)
for each UMPP to undertake the bidding process on behalf of the power procuring
(beneficiary) States.
The purpose of the SPVs is to carry out the bid process management and obtain
various clearances/consents for the projects so that the same transferred to the
successful bidder along with the SPV. SPV is selected through the tariff based
International Competitive Bidding (ICB), in accordance with the Guidelines for
determination of tariff by bidding process for procurement of power by distribution
licensees, issued by Ministry of Power, Government of India, as amended from time
to time.

UMPPs at a Glance:
S. No.
1.
2.
3.
UMP Awarded:
S. No.
1.
2.
3.
4.

Particulars
Total UMPPs Envisaged
SPVs Incorporated
Awarded

No. of UMPPs
16
13
04

UMPP Name
Sasan Power Limited, Sasan UMPP, Madhya Pradesh
Coastal Gujarat Power Limited, Mundra UMPP, Gujarat
Coastal Andhra Power Ltd., Krishnapatnam UMPP, Andhra Pradesh
Jharkhand Integrated Power Ltd., Tilaiya UMPP, Jharkhand

UMPPs in Process:
1. Chhattisgarh Surguja Power Ltd., Chhattisgarh UMPP, District Surguja
2. Odisha Integrated Power Ltd., Odisha UMPP, District Sundargarh
3. Coastal Tamil Nadu Power Ltd., Cheyyur UMPP, Tamil Nadu, District Kanchipuram
4. Tatiya Andhra Mega Power Ltd., Andhra Pradesh 2nd UMPP, District Prakasam
5. Deoghar Mega Power Ltd, Jharkhand 2nd UMP, Disrtict Deoghar
6. Sakhigopal Integrated Power Co. Ltd., Orissa 1st Additional UMPP, District Bhadrak
7. Ghogarpalli Integrated Power Co. Ltd., Orissa 2nd Additional UMPP, District Kalahandi
8. Coastal Maharashtra Mega Power Ltd. Maharashtra UMPP, District Sindhudurg
9. Coastal Karnataka Power Ltd., Karnataka UMPP
10. Bihar UMPP
11. 2nd UMPP in Tamil Nadu
12. 2nd UMPP in Gujarat
(Source: Business Standard, pfcindia (website-UMPP)

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4
GS -II: India and its
neighborhood- relations
What is the CPEC project?
It is an infrastructure project
intended to link Kashgar in
Chinas Xinjiang province to
Gwadar port of Pakistan. It
includes several Rail, Road and
Power projects associated with
it.
Challenges

Balochistan and
Khyber Pakhtunkhwa
province are opposing
the project. They have
complained that Power
Projects that ought to
be theirs have gone to
Punjab and there is no
clarity about how they
would be benefitted.
Because of Terror
threat, Security
situation remains a
huge concern. There is
some concern about the
Uighur militants in
Xinjiang as well.

THE ELEPHANT AT THE PEACE TABLE

Issue: Pakistan and Indian leadership, especially both the Prime Ministers are reaching
out to each other to make peace. They have personally greeted each other. PM Modi
accepted invitation of Mr. Sharif and visited Lahore. Nawaz Sharif is also a ardent
supporter of Indo-Pak peace, but Indo-Pak peace process must go beyond personal
bonhomie between two leaders and it should involve the Military establishment.
Reasons for continued stalemate:
Pakistan Domestic Politics:

Role of Military:

According to one perspective, Pakistans Army hampers any move forward towards
peace because its very existence depends upon conflict between two countries. PM
Sharifs strategy to deal with foreign countries like India and Saudi Arabia without
taking Army establishment in the loop is further creating suspicion in Military
establishments.

Role of Media and Scholars:

Concern of IndiaA key part of the project will

pass through Gilgit-Baltistan in
Pakistan Occupied Kashmir,
which is a disputed land.
According to some experts it
may cause Security Challenge to
India but according to others
India should not worry as an
Economically strong Pakistan
would bring stability in the
region.(excerpt from 20th April
2016 Current Affairs)

Pakistan Politics is driven by Anti India rhetoric. PPP (Pakistan Peoples Party)
leader Benazir Bhutto, when she was the PM, had welcomed her counterpart Rajiv
Gandhi, to Islamabad and started Peace process. The same party is protesting against
PM Sharifs outreach towards India and calling slogans that friend of Modi is a
traitor.

Indian scholars are writing against the China-Pakistan Economic Corridor (CPEC),
seeing all kinds of evil conspiracies to harm India. According to them, this must be
part of a plan to encircle India, already partly done by the Chinese troop deployment
in Kashmir. Gwadar is being seen as the next Chinese Naval Base to challenge, and
ultimately blockade, India.
On the other hand, Pakistani scholars view Indias Chabahar venture as aimed against
Pakistan, a stepping-stone to an encircling move in Afghanistan with Irans help.

What needs to be done?

First, the talk process should not be derailed based on minor issues. Kashmir is the
crucial issue in Peace process between India and Pakistan, but it is not the only issue.
Other issues like Trade and Transit should be highlighted to elevate Economic
Relations.
CPEC and Chabahar project can be linked and both the countries can rise above
mutual suspicion and allegation.
Both the countries should involve all the stakeholders, especially army, in the peace
process.

(Source: The Hindu, The Indian Express-Editorial)

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5
GS I: Issue related to Indian
Culture
GS III: Issue related to
Infrastructure Roads

BUDDHIST
CIRCUITS

AND

CHARDHAM

News: The Government plans to invest Rs 20,000 crore in upgrading and building the
National Highway network around Char Dham and Buddhist Circuits. The two circuits
together cover three states and parts of Nepal.
Highway to divinity

Road Ministry to develop Religious Circuit at an investment of about Rs 20,000

crore.
Religious Circuit includes Chardham pilgrimage in Uttarakhand, Buddhist holy sites
in Uttar Pradesh, Bihar.
Reconstruction cost for 889-km long Chardham pilgrimage approximately Rs 11,700
crore.
Construction of Buddhist Circuit will extend to Nepal.
Buddhist Circuit will cut across major cities in Bihar and Uttar Pradesh.
Hurdles at some stretches are due to contract termination.

About Char Dham:

It is the holy shrine of Hindus.
It includes Kedarnath, Badrinath, Gangotri and Yamunotri in Uttarakahand.
Kedarnath is dedicated to Hindu God Shiva and Badrinath to Vishnu.
Gangotri and Yamunotri are the source of Ganga and Yamuna, respectively, which
revered by the Hindus.
About Buddhist circuit:

GS II: Issue related to Statutory,

Regulatory and various QuasiJudicial Bodies

Buddhist Circuit includes the holy site of Buddhism where Lord Buddha was Born,
attained Enlightenment, preached the First Sermon and reached Nirvana.
Lumbini (Nepal), Bodhgaya (Bihar), and Sarnath and Kushinagar (Uttar Pradesh) are
places of importance for Buddhists.

(Source: Business Standard, HTmint In News)

CBFC AND FREEDOM OF EXPRESSION

Context: CBFCs role on film censorship has been crystallised by various judgments of
the Supreme Court, which its chairperson and his august colleagues are delightfully
oblivious.
A Constitution Bench of the Supreme Court had ruled in a case that the censorship of
films based on precise statements of what may not be subject matter of filmmaking.
There should not be any interference with the full liberty of Art and Literature to flower
and flourish.
The essence of the law is that the overall theme of the film taken into consideration
before censorship.

The Bombay high court pointed out to the Central Board of Film Certification
(CBFC) was a body meant to certify films and not censor them. The court made the
observation at a hearing on cuts the CBFC, widely referred to as 'Censor Board' was
attempting to impose on the film 'Udta Punjab'. The court will pass orders on the case
on June 13, four days before the film's scheduled release.

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In recent
ecent years, two committees
constituted to suggest changes in the
Cinematograph Act.
The first headed by Justice Mukul
Mudgal was of the view that CBFC
must not take a morali
moralistic view.
Cinema is a form of A
Art and by its
inherent character capable of varied
forms
of
representation
and
consequently myriad forms of
interpretation.
erpretation.
These
concepts
incapable of surgically precise
definitions and interpretation and
would vary from person to person, it
said.
The second by Shyam Benegal,
constituted
by
the
present
Government,
overnment, recommended that the
CBFC only remain a certifying body
and have no role in imposing cuts and
unduly curbing artistic expression and
creative freedom of the director.
CBFCs action has reinforced its
sobriquet
et Censor Board.

Udta Punjab
Punjab reflects the menace of the Narcotisation of Punjab in the P
Past decade.
Hundreds of innocent young lives have been lost as myriad Pablo Escobars have
flourished.
Real estate companies allegedly engaged in laundering profi
profits of the drug trade are
among
ong influential players in the Economy of the State.
S
CBFC has asked for cuts like remo
removal
val of names of cities and the State.
S
The ground
for such removal said to be the Sovereignty and Integrity of the C
Country.
However, it argued that a Movie that echoes concerns of a State
S
by cinematographic
expression could not be denigrating the Sovereignty and Integrity
ntegrity of India.
In response to the makers of the film it said that freedom of speech cannot be
absolute and films in our country ne
needed
eded censoring to filter out bad and offensive
content.
Makers are saying if CBFCs writ allowed the Right to Freedom of Speech and
Expression
xpression would be history.
(Source:
Source: Image HTmint, Some CBFCs related Decisions
Decisions)

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GS -III: Conservation,
Environmental Pollution and
Degradation

WHITE HEAT: THE THIRD GLOBAL

CORAL BLEACHING

What Do Coral Reefs Need to

Survive?

Issue: The Third Global Coral Bleaching after events in 1998 and 2010, is laying
waste thousands of square kilometres of unique Oceanic Ecosystems. The Bleaching
began in 2014 and likely to last through 2016. The Bleaching is supposed to affect over a
third of the Worlds Corals.

Sunlight: Corals need to grow

in shallow water where sunlight
can reach them. Corals depend
on the zooxanthellae (algae) that
grow inside of them for oxygen
and other things, and since these
algae needs sunlight to survive,
corals also need sunlight to
survive. Corals rarely develop in
water deeper than 165 feet (50
meters).
Clear water: Corals need clear
water that lets sunlight through;
they do not thrive well when the
water is opaque. Sediment and
plankton can cloud water, which
decreases the amount of sunlight
that reaches the zooxanthellae.
Warm water temperature:
Reef-Building Corals require
warm water conditions to
survive. Different corals living
in
different
regions
can
withstand various temperature
fluctuations. However, corals
generally
live
in
water
temperatures of 6890 F or 20
32 C.

Spread of Bleaching:

The Bleaching is taking place in most of the coral colonies including the Great
Barrier Reef, Reunion, Madagascar, East Flores, Indonesia, Guam and Hawaii in the
Pacific and Florida in the Atlantic.

What are corals?

Corals are soft-bodied marine organisms called polyps that live in spectacular
colonies called Reefs. These Reefs are built by polyps using a limestone skeleton
(calicle) lying at their base. Polyps start building reef by creating their clones and
process continues for thousands of years.
Corals themselves are translucent animals, but the Reefs host Zooxanthellae Algae,
which give them a range of fascinating colours.
The Algae have a symbiotic relationship with the polyps, capturing Sunlight and
Carbon Dioxide to make Sugars that feed the polyps. The Corals also feed on
Zooplankton and small fish.

Importance of Corals:

Coral Reef Ecosystems provide food and shelter to 25% of all marine species. They
support fish stocks on which some 500 million people are dependent globally,
including an estimated 30 million small-scale fishermen and women whose
livelihoods depend directly on the reefs survival.
Losing a Coral Reef can have catastrophic consequences for local food, fisheries and
livelihoods.

Reasons for Bleaching:

The brilliant colours of a healthy coral colony come from tiny plant-like cells that
live inside the clear body tissue of the polyps. These plant-like algae convert sunlight
into food for the corals.
Heat or Pollution stresses the symbiotic relationship between the polyps and the
algae. As the algae turn toxic, the coral, resulting in the corals white skeleton
showing through, expels them.
Without enough plant cells to provide the coral with food, it soon starves or becomes
diseased. With time, the tissue of the coral disappears altogether, and the exposed
skeleton is covered with algae.
Factors:

Warmer water: If the temperature of the Ocean is just 1 degree Celsius higher than
the average summer maximum for 4 weeks, Bleaching can start. Temperature can be
because of Global Warming and El Nino conditions.
Strong Sunshine: Excessive Sunlight adds to the impact of Rising Ocean
Temperatures. It is made worse by Calm Seas and Low Tides.
Sedimentation can block the Nutrient entrance of polyps leading to death.

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8
Clean
water: Corals
are
sensitive to pollution and
sediments. Sediment can create
cloudy water and deposited on
corals, blocking out the sun and
harming the polyps. Wastewater
discharged into the Ocean near
the Reef can contain too many
Nutrients that cause seaweeds to
overgrow the Reef.

Pollution.
Chemical and Pesticides in the seawater.

The Reef Survey:

The XL Catlin Sea view Survey is a pioneering scientific expedition revealing the
impact of Environmental changes on the Worlds Coral Reefs.
The Survey currently focused on the Pacific and Indian Oceans and it aims to create a
high-resolution 360-degree panoramic vision of coral reefs that would provide a vital
scientific baseline for the study of the reefs.

Saltwater: Corals need saltwater

to survive and require a certain
balance in the ratio of salt to
water. This is the reason corals
do not live in areas where rivers
drain fresh water into the ocean
like Estuaries.

(Source: The Indian Express-News)

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GS -III: Conservation,
Environmental Pollution and
Degradation

WHITEFLY IN PUNJAB, HARYANA A

WORRY

Whiteflies

News: Officials have spotted whitefly pest in cotton belts of Punjab and Haryana and
have asked the farmers to keep an eye on their crop. The pest damaged the Bt cotton
varieties last year in both States, bringing the yield down by 40 per cent.

Whiteflies are members of the

Homopteran order and are widely
distributed pests.
Whiteflies attack a huge assortment
of vegetable, herb and floral crops,
causing, huge damage.
They feed by sucking plant sap or
juices. This feeding activity will
normally cause leaf spotting and
yellowing or interveinal chlorosis.
Moreover, it can aid the transmission
of various plant diseases. If left
unchecked, it can kill the plant. Other
problems associated with their
presence may be the build-up of
sticky honeydew, which can spur the
development of an ugly black-sooty
mold.
GS -II: Defence Cooperation of
India with other countries.

Why serious concerns:

This season, Bt cotton accounts for over 92 per cent of the total cotton sown and the
variety is vulnerable to whitefly.
In Haryana, last year farmers had suffered huge losses due to whitefly attack and the
State Government had to announce a compensation package of nearly Rs 967 crore
for farmers who suffered losses.
During Kharif-2015 in Punjab, the Pest damaged over 75 per cent of the crop and
considered the major reason for the suicide of more than 12 farmers.
Earlier, whitefly used to appear after June; but now, this insect has started appearing
within 10 days of sowing and needs management at every cost.

(Source: The Hindu-News)

MALABAR EXERCISE BEGINS

ISLANDS CONTESTED BY CHINA

NEAR

News: The navies of India, Japan and the U.S. started the annual Malabar naval
exercises in Japan, close to islands contested by China. The site of the exercise is not very
far from the Air Defence Identification Zone imposed by China over the East China Sea
in November 2013, including the Senkaku Islands, controlled by Japan but claimed by
Beijing.
Malabar exercise:

Malabar Exercise is an annual joint Naval Exercise among US, India and
Japan.
The primary aim of this Exercise is to increase Interoperability among the
three navies and develop common understanding of procedures for Maritime
Security Operations.
The exercise included professional interactions in harbour and a diverse range
of activities at sea, (There are two phases, harbor phase and sea phase).
This is the 20th Edition and this time major emphasis will be on AntiSubmarine Drills and protecting Aircraft Carriers from hostile assets lurking
under water.

(Source: The Hindu-News)

GS III: Issue related to Economy

SEBI ANNOUNCES STRICTER NORMS

ON P-NOTES, EFFECTIVE JULY 1
News: The Securities and Exchange Board of India (SEBI) has tightened its Know-YourClient (KYC) and disclosure rules on issue of Participatory Notes (P-notes), to curb
misuse of the Investment Route used by Foreign Investors not registered in India. These
take effect from July 1.

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GS III: Issue related to Economy

Background:

The move approved by its Board of Directors on May 19, on Regulation of what are
formally termed Offshore Derivative Instruments (ODI).
This was after considering the suggestions of the Supreme Court-appointed Special
Investigation Team on undisclosed money, to ensure this route not used for Money
Laundering. P-notes allow foreign investors to take exposure to Indian Stocks
without registering with SEBI.
These issued by Foreign Portfolio Investors registered with SEBI.

SEBIs Guidelines on P-Notes and Their Impact:

Indian Know-Your-Customer and Anti-Money Laundering norms to be
applicable
Impact: KYC/AML norms will be same for P-note holders and Onshore Investors
No transfer of P-notes without Prior Permission
Impact: Might impact liquidity, attractiveness
Risk-based KYC
Impact: Increase in Frequency of Reporting
Identify and verify Beneficial Owners
Impact: More information on Beneficial Owners
Reconfirmation of Offshore Derivative Instrument positions
Impact: Increase in Frequency of Reporting
Suspicious Transaction Report
Impact: Strengthen Surveillance
Periodic Operational Evaluation
Impact: Increase control, systems and procedures with respect to ODI
(For more details, see Synergy Current Affairs 13 May, 2016)
(Source: Business Standard In News)

UP SET TO SURPASS MAHARASHTRA

AS LARGEST SUGAR PRODUCER
News: In UP, sowing for the 2016-17 crushing season so far estimated at 2.18 million
hectares, the highest in five years, which could surpass Maharashtra as country's largest
sugar producer.

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The Total Sugarcane sown around 5 million ha, 4.41 million ha is complete until
June 1. More area covered this 7.6 per cent than last year.
UP is making larger use of Co-0238, a higher-yielding variety. In the ongoing season
(2015-16), this was planted on 0.4 mn ha in UP, about 55 per cent more than in 201415.
The expectation of a drop in 2016-17 has pushed up retail prices since April by Rs 47 a kg.
The Centre, in a series of measures to boost supply, first withdrew an incentive it
gave to sugar manufacturers to export and followed with a stock holding limit to
prevent hoarding.
It had fixed a limit of 1,000 tonnes for traders in Kolkata and neighbouring areas and
500 tonnes for traders in all other parts.
It also plans a 25 per cent export duty and is contemplating lowering the import duty
(now 40 per cent), to boost supply.

(Source: Business Standard In News)

Question of the day: Opening of Trade routes and Economic cooperation can resolve
various contentious issues between two countries. Critically analyse the statement in
context of Indo-Pak relations.

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(Source: The Hindu)

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