GS 3 Shaurya

6/28/2016 Evernote Export
“In ages long past a great son of India, the Buddha, said that the only real victory was one in which all were equally victorious and there was defeat for no one. In the
world today that is the only practical victory. Any other way will lead to disaster”.
World Military Spending report 2015; India at 6th position; ahead of Israel, Germany, France
Traditional notions of security
Military
Deterrence
Defence
Balance of powers
Alliance building
It includes threat to the core values of a country like sovereignty, independence and territorial integrity. The referent of security is the state and institutions. (Referent means for whom
security)
Diplomacy is the first line of defence but wars can be waged for self defence and to prevent genocides. Even then, soldiers and countries must take precautions during war in not killing
civilians, innocent children women. The recent drone attack of USA and other forces on MSF hospital or Israel on WHO camps speak of the impunity and insensitiveness, noncompassion in
waging wars.
Confidence building is an important measure to avoid wars where countries inform each other of their capabilities, missiles, special forces, future prospects and limit their rivalries.
Countries signed 1972 Biological Weapons Convention and 1992 Chemical Weapons Convention which banned the use of these weapons. However nuclear weapons show prowess and
countries only prefer to control its use like in Antiballistic Missile Treaty of 1972.
NonTraditional
Other than military; referent being individuals, the whole mankind
It means not only protecting individuals from violence but a broader concept of threats like poverty, hunger, diseases, malnutrition, economic security, environmental degradation as well
as dignity of individual.
A sea level rise of 1.5–2.0 meters would flood 20 percent of Bangladesh, inundate most of the Maldives, and threaten nearly half the population of Thailand.
Human rights
Freedom of speech and assembly
Economic and social rights
Rights of ethnic and indigenous minority
However, ambiguity is on rights which can be considered universal.
Refugees(need to be accepted) Migrants(need not be given entry) and Internally Displaced people (Kashmiri Pandits, Nigerian Muslims of north and east)
Cooperation
Present and impending conditions of climate change, terrorism, diseases like bird flu, Ebola, AIDS warrant international cooperation. A multilateral action against countries killing citizens or
doing genocided is acceptable rather than an individual one. Diplomacy should not only include governments but NGOs, civil society, soft power and people. The use of force should always
be of last resort.
Ministry of Home Affairs
1.Department of Border Management
Department of Border Management, dealing with management of borders, including coastal borders.
2.Department of Internal Security
Department of Internal Security, dealing with police, law and order and rehabilitation.
3.Department of Jammu & Kashmir Affairs
Department of Jammu & Kashmir (J & K) Affairs, dealing with the constitutional provisions in respect of the State of Jammu & Kashmir and all other matters relating to the State excluding
those with which the Ministry of External Affairs is concerned.
4.Department of Home
Dealing with the notification of assumption of office by the President and Vice President, notification of appointment of the Prime Minister and other Ministers, etc
5.Department of Official Language
Dealing with the implementation of the provisions of the Constitution relating to official languages and the provisions of the Official Languages Act, 1963.
6.Department of States
Dealing with CentreState relations, InterState relations, Union Territories and Freedom Fighters' pension
UNODC recent initiative “Networking the Networks” (especially its component on illicit financial flows) targets these two goals:
Connect the existing international and regional law enforcement cooperation centres to enable fast interregional cooperation;
Use the capacities of these networks to disrupt organized crime and the illicit financial flows related to it through the exchange of intelligence and providing platform for
coordination of joint/parallel operations
Underground Mines; Innocent dying
Casualties around borders due to unidentified mines; planted after Parliament attack in 2001
India is non signatory of 1997 Mines Ban Treaty which has resulted in decreased casualties since its adoption.
Instead India a signatory of UN convention on weapons were fresh mines need not be planted
SIACHEN Glacier
2000 soldiers of PakIndia died since last three decades.
Bone of contention is the triangle formed by NJ9842, Karakoram and Indira COI
Indian Army sits at heights of 21,000 feet at Bana post on the Glacier; acquired in April 1984.
Elaborate monitoring and weather data sent to troops by SASE or Snow and Avalanche Study Establishment based in Leh under DRDO
Need of better technology, equipments but it cannot replace manual presence there.
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South Asia Regional Information and Coordination Center (SARICC)
Regional platform for exchange of information/ intelligence on drug trafficking and related matters such as money laundering etc., with India in the lead, for the South Asian region.
This platform would initially comprise the founding members Bangladesh, Bhutan, Myanmar, Maldives, Nepal and Sri Lanka besides India.
Because of its geographical position – sandwiched between two of the major illicit opium and heroin producing regions of the world (Afghanistan to our North West and
Myanmar to our East), India has been a victim of drug trafficking originating in these countries for several years.
ShangriLa dialogue
The IISS Asia Security Summit: The ShangriLa Dialogue (SLD) is a "Track One" intergovernmental security forum held annually by an independent think tank, the
International Institute for Strategic Studies (IISS) which is attended by defense ministers, permanent heads of ministries and military chiefs of 28 AsiaPacific states. The forum gets its
name from the ShangriLa Hotel in Singapore where it has been held since 2002.
Participants Australia, Brunei, Burma, Cambodia, Canada, Chile, France, Germany, India, Indonesia, Japan, Laos, Malaysia, Mongolia, New Zealand, Pakistan, People's Republic of
China, Philippines, Russia, South Korea, Sri Lanka, Singapore, Sweden, Thailand, East Timor, United Kingdom, United States and Vietnam.
ShangriLa has contributed to the enhancement of defence diplomacy by participating countries, in part by inspiring similar forums in other regions (e.g. the Halifax International
Security Forum)
Regulation of explosive in India
Recently, Govt. put a ban on import of loose Potassium Nitrate for fertilizers
Petroleum Explosives Safety Organization under Ministry of Commerce and Industry.
Pros and cons of a single Chief of Defence Staff (CDS)
Interpol Notices
8; Blue corner notice against Lalit Modi identifying missing person who could be a criminal.
Red corner notice for arresting and extraditing to the wanting country of offender.
CBI in India issues
C series, Black, Modus Operandi, UNSC Interpol Special Notice against Alqaeda, Taliban.
Silver noticeTo seize illicit wealth abroad
POLICE REFORMS
Policing in India is governed by the archaic Indian Police Act, 1861 and suffers from range of issues like institutional weakness, mistrust between police and public, lack of incentives for
good behaviour etc. In this context supreme court laid down seven directives to states and centre in Prakash Singh case 2006 related to police reforms:
· Constitute a State Security Commission (SSC) to
Ensure that the state government does not exercise unwarranted influence on the police
Lay down broad policy guideline and evaluate the performance of the state police
· Ensure that the DGP is appointed through merit based transparent process and secure a minimum
tenure of two years.
· Ensure that other police officers on operational duties including Superintendents of Police and Station House Officers of a police station are provided a minimum tenure
of two years.
· Separate the investigation and law and order functions of the police; conflict of interests to be checked
· Set up a Police Establishment Board (PEB) to decide transfers, postings, promotions and other service
related matters of police officers.
· Set up a Police Complaints Authority (PCA) at state level
· Set up a National Security Commission (NSC) at the union level for selection and placement of Chiefs of the Central Police Organisations (CPO)
There is not a single state that has fully complied with the directives. The following challenges are encountered in the implementation of police reforms:
· The law and order is the state subject which put the responsibility of police reforms on the state governments.
· The political class is reluctant to lose control over postings and transfers of police officials
· Many states have argued that the directives violate the basic framework of the Constitution as they interfere with the exclusive prerogative of the State Executive.
Improving PoliceSMART
SMARTSmart and sensitive, Modern with mobility, Alert and accountable; Responsive and reliable; Trained and Tech savvy
The need is to recreate faith among public which is being eroded with increased crimes, free criminals etc
Movies like Dabang, Singham need to be promoted to change public opinion.
Police stations need to have better infrastructure; computers, sanitation facilities; ventilation; secure cells to contain thieves
HRA of piracy shifted to 65 degrees east after consulation with Contact Group on Piracy off the coast of Somalia CGPCS
CGPCS, is an international governance mechanism established in New York on January 14, 2009 to facilitate the discussion and coordination of actions among states and organizations to
suppress Somali piracy
The CGPCS was established in response to United Nations Security Council Resolution 1918 (2010). To date, more than 60 countries and international organizations are members.
5 Working Groups on illegal funding, naval capability, legal issues, public diplomacy and selfdefensive actions with chairs at different countries.
Will save Additional War Risk Premium and prevent unnecessary firing and surveillance of boats; foster economic and security relations between nations.
War risk insurance is a type of insurance which covers damage due to acts of war, including invasion, insurrection, rebellion andhijacking. Some policies also cover damage due to
weapons of mass destruction. It is most commonly used in the shipping and aviation industries.
War risk insurance generally has two components: War Risk Liability, which covers people and items inside the craft and is calculated based on the indemnity amount; and War Risk
Hull, which covers the craft itself and is calculated based on the value of the craft. The premium varies based on the expected stability of the countries to which the vessel will travel
CRIME
India does not have any criminal database (accused and convicted) to identify people from records easily. (in reference to UBER Taxi driver raping a passenger and UBER had no information
of Driver. Moreover, Police must give character certificate but with corruption real checks are lacking.)
* Corporates (UBER) are not public friendly, govt. compliant and escape ill doing with impunity. They should be charged with hefty fines. (B.G Tragedy 1984)
* Consumer courts in disarray today should be strengthened. Competition Commission of India is acting as a model.
JAGO GRAHAK JAGO scheme is being revamped.
Japanese women raped by a tourist guide in Jaipur
Issues
1.Licensing of guides
2500 guides licensed in Jaipur
At any given time of season, 50 % of them out of work.
2.Police checks
TAF (Tourist Assistance force) is inactive
CCTV cameras dysfunctional
MAOISTS
CRPF mess: Camps lack basic amenities, jawans with poor salaries, malaria prone, govt. apathy
Crime and Criminal Tracking National System
2000 crores in 11th 5 year plan connecting all 35 states and union territories.
Developed to connect police stations in India.
IT enabled tracking of criminals
Releasing under trials
2,87,000 prisoners are undertrials in Indian jails.
S.C decision to release those who have undergone half of the maximum punishment which can be awarded for the crime in trial.
Section 436A of Code of Criminal Procedure amended accordingly in 2005
Undertrial review committee to be setup in each district comprising of District Judge, DM, and SP of Police by National Legal Services Authority and State counterpart.
Hussaianara Khatoon judgement in 1979 where 40,000 prisoners were released
Issue
Still many not released.
Session Judges and magistrates were directed by S.C to visit jails. look for undertrials but nothing substantial happened.
Poverty, poor legal aid keeps their cases languishing for years and Salman Khan like people go scotfree always.
No jail reform committee
Way ahead
1.Strengthen rules to followed while judging cases
2.Expediting judicial processFixing time limit say 3 years for any case
3.ADR mechanisms
4.Lok Adalats
5.Providing adequate legal aid to undertrials
6.Prison Complaints CommitteeTo take care of prisoners, prevent torture, harassment
7.Surprise inspection of jails as done by CJI recently
DEFENCE
Funding in defence
Indian armed forces LTIPP (Long Term Integrated Perspective Plan)
Integration of all 3 forces

Indian Navy
Capabilities: INS Vikramaditya, INS Vikrant as aircraft carriers
Provide surveillance of maritime borders and internal waters (EEZ) to check illegal migrants, smuggling, terrorism, illegal fishing
Provide humanitarian assistance during disasters (Cyclones (hudhud),Tsunami) as domestic and foreign aids (Maldives with no fresh water resources desalinisation plant
generartor caught fire, so INA sent ships with reverse osmosis water plants). For ex: can provide electricity ashore through onboard generators, Act as hospitals (INS Jalashwa has 4
OTs)
Prime importance during war or security issues. exDuring 1971 war. UNCLOS III United Nations Convention on the Law of the Sea, allows naval vessels to navigate through
high seas and even inside territorial waters (within 12 nautical miles) of other countries, thus bringing itself close to scene of action. Whereas Air force and Army are restricted as
conflicts may rise or get escalated.
Evacuating Indian citizens overseas. ex from Libiya, Syria during recent ISIS turmoil etc
Navy drills with nations. It improves not only bilateral relations but also results in sharing of technology and expertise. IBSAMAR V exercise conducted with Brazilian and South
African ships off the coast of Goa just after the IFR 2015.
Providing security to Indian vessels (oil rigs) and other ships from pirates.
IMAC or Information Management Awareness Centre to promote maritime security
Blue water navy in construction; fleet of ships in collaboration with Hyundai Ship manufacturing company; Scorpene submarines from France
Indian Navy was delivered in November 2015, Second AntiSubmarine Warfare (ASW) Corvette, 'Kadmatt', built indigenously by GRSE shipyard Garden Reach Shipbuilders and
Engineers Limited / Ist was INS Kamrota delivered in 2014/ A total of four submarines to be built
Fully capable to fight in nuclear, biological and chemical warfare environment.
Release of the Indian Maritime Security Strategy (IMSS) titled Ensuring Secure Seas in October 2015
1.Principal threat “would be from states with a history of aggression against India”
2.It cautions that even countries with “divergent national interests can be significant trade partners today (read China)” while there may be divergent security perceptions “with nations that may be
traditional friends (read United States)”.
3.Other threats include disasters like Tsunami, Cyclones hudhud. Navy in humanitarian assistance during disasters and evacuating Indians overseas as in Operation Rahat in Yemen recently.
The Indian coast guard has been functioning as the national authority for Offshore Security Coordination Committee (OSCC), national authority for maritime search and rescue, lead intelligence agency
for coastal borders and the coordinating agency for coastal security
It is better suited than marine police and Indian navy to manage coastal security. Empowering it through more funds and manpower is important.
Marine police has not been given adequate attention by coastal states like Maharashtra, Gujarat. CAG report in 2013 showed 75%91% inefficiency. Many states with coastal security threat too have a
lackluster approach.
Nuclear Security Summit
Brain child of Obama ; 1st summit in Washington DC in 2009, 4th in 2016 and at the same location
Indian and Pakistan hyphenated together by Obama
India taken significant steps in Nuclear prudence ; Global Centre for Nuclear Energy partnership a Manmohan Singh government initiative; $2 million towards nuclear security fund and participation in
IAEA and UN joint mechanisms for nuclear security
Defence industries
Earlier FDI was 24 percent. It has been increased to 49% with no need to have a single Indian investor with 51% stake.
Indian defence machinery obsoleteTransfer of technology
Huge imports with increased share of defence in budget expenditure.
Heavy dependence on other countries like Russia, USA, Israel.
Licensing, approvals, land availability, tax structure etc are not supporting.
Delayed roll out of Defence Procurement Procedure by government giving leeway to bureaucrats to harass investors.
This confuses investors and corporates who want a clear demand supply situation.
FDI norms keep changing and companies are not allowed to shift from earlier to present rules and regulation.
Latest reports show HAL as an assemblage centre of Sukhoi30 with little indigenisation or transfer of technology from Russia; costs of locally assembled aircraft became costlier than
imported ones.
Ravindra Gupta Task report in 2012HAL imports of raw materials going up; HAL stopped submiting import dependency after this report
Quite a licensed way of manufacturing; License Raj
Failed to create robust supply network of domestic supply companies and R&D sector
HAL is CKD or Completely Knock Down and SKD or Semi Knock Down assembler; failed in skill development, ancillary job generation and revenue generation; No selfreliance
Air Marshal Matheswaran Report on Aeronautical sector
Shakti engine in helicopters not indigenous and made of foreign technology and equipments completely.
DRDO became a buyer rather than a designer in manufacturing of MRSAM and LRSAM with IAI or Israel Aeronautical Industries; No transfer of technology.
Department of Defence became a mere custodian of ordnance factories and de facto owner of aircrafts, shipyards thus causing conflict of interest; not an instrument of indigenisation
said to be.
Way ahead
1.Need transfer of technology from these countries; increasing FDI ceiling to 100% or allowing strategic investment.
Lockheed Martin proposal to setup production line for F16s in India; make India an exporter, fulfill 90 MMRCA need of India Maintenace and Repair of F16s 35004000 operational in the
world; foreign exchanege arner
But need to llok for transfer of tech like ASE radar used in Block 60 of f16 which is a two aircrafts in one with long distance travel capacity
2.Indian companies are considered rookies by USA. Hence they are apprehensive on sharing technology.
Government needs to provide level playing field to them by supporting in establishing industries for spare parts, assembles,
components etc.
3.Defence Trade and Technology Initiative DTTI (a brainchild of US Defence Secretary Ashton carter, also called as Carter initiative) of IndiaUSA needs more discussion and support.
Strategic partnership is necessary before a state transfers its defence equipments.
Executing the project plans for two governmenttogovernment pathfinder projects: the Mobile Electric Hybrid Power Sources (MEHPS) and the Next Generation Protective
Ensemble (NGPE). Two other projects are nearing finalisation: terms of reference for the Jet Engine Technology Joint Working Group are ready, and the second meeting of the
Joint Working Group on Aircraft Carrier Technology Cooperation (JWGACTC) will be held in February 2016.
Americans have already approved BAE Systems’ proposal to move the assembly line of M777 Howitzers to India
US insistence that India sign the foundational agreements: Communications InterOperability and Security Memorandum of Agreement (CISMOA), LSA (Logistics Support Agreement), and
the Basic Exchange and Cooperation Agreement for GeoSpatial Cooperation (BECA) . India fears of compromise in security on disclosing internal instruments of intelligence
to USA.
Logistics Supply Agreement signed with USA
4.Kelkar committee report10 years ago
Suggested setting up of 'Raksha Udyog Ratnas' after selecting a few firms on technical and managerial capability.
Request For Proposals was to be circulated for major systems to these firms.
5.Supporting private manufactures financially, morally by Government; US does the same, U2 aircraft
6.Create a body in MoD of defence personnel, civilians, industry men to evaluate FDI flows, identify foreign companies for acquisition
7.Offset requirements necessary; buy paying seller adequately to compensate for offset
INSAS (Indian NationSmall Arms System) rifles; Excalibur
Low quality guns; Ordinance Factory incapable of driving out quality guns for Indian army
Imported MP9 Submachine guns from Switzerland; ammunition manufactured in OF of low quality
New DPP or Defence Procurement Policy
Dhirendra Kumar Committee recommendations accepted; Committee under DRDO chief Mr Atare on strategic investments
Offset requirements threshold raised to 2000 crores from 300 crores; offset means benefits to buyer from seller like acquisition of technologies, research etc ( 30% of the value
of contract)
IDDM or Indigenously Designed Developed and Manufactured; first preference to domestic firms; 90%of development cost, refund of 100% if project does not start in 2 years
after request for proposal; 10% more price to acquire quality goods
Focus on MSME sector for domestic innovation
Department of Defence Production to fund private R&D projects
Issues
Domestic manufacturers not favored; foreign vendors dependence; they enjoy custom duty exemption
Approvals; returns, exemption form excise duty delayed
Monopoly of Defense PSUs; have become assembling centres rather than innovation, R&D centres
Effects
boost to Indian manufacturing
Less hurdles with increased threshold of offsets for foreign vendors
Black listing of firms only after proper trials
Negative
Indian manufactures do not have the wherewithal
Consultation with defence forces
Kelkar committee in 2006 suggested for defence integration by forming Raksha Udyog Ratnas to support big private players; not implemented after trade unions opposed.
VK Aatre, 2015 to suggest modalities for defence manufacturing; Group 1 and Group 2
Group 1 includes submarines, helicopters, tanks; Group 2 includes metallic alloys, nonmetallic alloys, smart ammunition
Companies to be given license for only a particular sector; It will again cause monopolies and prevent small firms to grow
Competitive bidding replaced by costplus model where a fixed profit will be paid to private investor over its investment; will make them akin to PSUs
Foreign vendors forced to join domestic companies which may decrease their efficiency and hence participation
Companies should be allowed to export products
SPIKE
ATGM or AntiTank Guided Missile 3rd Generation, fire and forget, manportable antitank missile,
Tejas vs Sukhoi vs Rafale
Rafale at 270 million $ per aircraft; 3 TEjas and 2 Sukhoi30 in that cost
No ToT in Rafale as 36 in flyaway condition; no assurance of timely delivery
Indian Tejas always considered an underdog; poor funding to develop further
IAF had a mindset of procuring from outside; keeps finding faults in improved models
Selfsufficiency is the only solution; Procurement of 30 plus upgraded Mirage 200009 form UAE can also be a solution
INDIAN AIR FORCE
Aero2015
'Sarang' team of helicopters showing manoeuvres with teams around the world.
DRDO
Panchi
Wheeled version of Unmanned aerial vehicle, Nishant
Doesnot have to carry air bag/ parachute
Used for battle field surveillance with an image processing system.
Blue water navy
Navy taking open oceanic expeditions for security
USA, China
Green water navy
Expeditions in littoral waters
New term
Brown water navy
Small boats, patrol boats for security in rivers, neighboring seas etc
International Fleet Review
NORTHEAST
Garoland : Garo National Liberation Army (GNLA) demand for a separate state carved out of Garo Hills of Meghalaya and parts of Assam.
GNLA Parent outfit: ANVC (Achik National Volunteer council, born 1995 ) ; ANVC B a splinter group
ANVC, State and Centre signed a tripartite ceasefire agreement in 2004.
ANVC B signed on SEP 2014 agreeement on more autonomy to GHADC (Garo Hills Autonomous Democratic Council)
Effect of ceasefire agreements:
Positive
* Less militancy terrorism in the affected areas.
* Special package by central govt. to improve socioeconomic condition of the region.
* Strong message to insurgent groups that govt. would not bow down to illegitimate demands and terrorism.
Negative
1.Without checks these outfits do illegal works, extort money, smuggling etc.
2.Keep venturing in public with arms terrifying people at will.

Need of more steps:
*To provide assistance to state govt. for developing tribal backward regions.
*Curb nexus of politicians with militants.
*Regular inspection of these areas.
*Rehabilitation of surrendered militants asap
*Checking corruption to see that government programmes reach people. This will quell separatism.
*Raise a common NE Law Enforcement Force.
*Collaboration with neighbors
NDF Bodoland (Songbijit) camps at borders of Arunachal Pradesh and Bhutan.
Myanmar border is penetrated by Naga militants.
BIMSTEC, BCIM corridor etc to economically integrate NE
*Strengthening police,admministration
*Dealing militants with iron hands who do violence with impunity.
NDF (Songbijit) killed tribals in Kokrajhar
Bodoland Territorial Council formed in 1993 following which tribals were evicted, killed by Bodo militants.
Tribals migrated from Chotanagpur to tea plantations
People live in penury with no education, health benefits, sanitation etc
Framework agreement with NSCNIssac Muviah.
Need is to bring multiple stakeholders into discussion like NSCN (khloekitovi), NSCN (reformation), Naga Student's Federation, Naga Hoho etc
Dialogue has certain components like inclusiveness, joint ownership, transparency, empathy, humanity, understanding historical context, listening to dissent
Intercommunity dialogue is very important; Meiteis, Nagas should talk simultaneously

Kashmir issue
2014 elections a watershed event after 2002 elections (NC thrown out)
High voter turnout in valley
Fledgling democracy bolstering its roots
Increased militancy; strikes
Meat, beef ban protests
Disputes
1.Independence of valley
2.AFSPA
3.Interference by Indian government
4. Miscellaneous Afzal Guru hangings, Machil killlings etc
5.Unemployed youth
6.Very less chances of alliance with pakistan as Kashmir knows the state of Pakistan
Solutions
1.Elections on a regular basis
2.Bringing separatists, pakistan, people on single platform
3.Stop LoC violations and insurgency
4.Provide freedom as Indian citizens take for granted; Kashmir is not a final frontier of India which needs to be conquered or handled aggressively
5.Bridging trust deficit; psychoemotional bonding is needed
1965 war50 years
Indian forces decimated the pride of Pakistan
Operation Gibraltar Haji Pir pass captured by India
Operation Grand SlamAttacking India on Plains; Chamjoria sector to capture Akhnoor
Air force was called; Pakistan called tanks, artillery, full fledged war; India was not prepared; International border opened at 3 places; Sialkot, Lahore; Battle of Usaluttar; Delhi was open
if Beas was crossed; 2 armoured brigades of India vs full division of Pakistan army; Madhopur gill canal cut; water bogged down tanks and we made minced meat;
Tashkent 1966, India surrendered Haji Pir to Pakistan
Huge morale booster for India.
GCTOC ActAntiterror law
Similar to MCOCA or Maharashtra Control of Organised Crime Act
Issues
1.Arrest without cause and investigations can be done in custidy for 180 days as against 90 days under CrpC
2.NonBailable warrant or warrant only after judge recommends on valid grounds
3.Section 25 makes government and executive immune from prosecution
4.Confessions can be used against accused. It violates Indian Evidence Act.
Safeguards
Only DIG can register case and investigating officer is of DSP rank. Hence misuse could be less.
Dharmadhikari committee on MCOCA 40 cases registered annually with 67 persons arrested.
Credibility of CBI, CVC, Lokpal
CBIUnder DSPE (Delhi Special Police Establishment) act, 1946.
Two parts
1.Anti corruption wingWorks under CVC CVC directs CBI to conduct investigations.
2.Others; crime etc
Director appointed for two years by a committee under DSPE act
1.Prime Minister Chairperson (Brought from Home ministry to PMO by Indira Gandhi)
2.Leader of largest opposition party in LKS.
3.CJI or judge recommended by him.
ISSUE
Credibility crisis
Recently CBI director was directed by S.C to stay away rom 2G case investigations as rumors of his alleged involvement in discussions with accused persons came to light. Autonomy of CBI
since many years is open to debate.
#CBI is answerable to central government
#CBI was taken out of RTI act by erstwhile UPA government.
#Bofors case, 2G scam, BG tragedy etc smack of political influence on CBI
Certain cases of national, international importance are taken by CBI director
Criteria of selection of such cases are ambiguous.
Home Secretary dictating CBI got dismissed
Restored CBI credibility
Way ahead
Selection should not be on seniority but on merit basis.
Personal conduct, character should be paramount in selection at such high posts.
Ram Narain vs UoI SC reiterated autonomy of CBI and related institutions. As aresult limited autonomy given but appointments are made by government. Thus the ruling party controls
functioning indirectly.
POLICE REFORMS
SC guidelines in 2006
Pathankot Air base attack; things to learn and act
Airbases located at crowded places; illegal settlements; Jammu base with Pir Baba mazar jutting into it; vulnerability
No regular guards for surveillance; poor and under utilised technology; DSC Defence Security Corps made of retired army men guarding airbases
Short supply of guards with multiple responsibilities; looking after aircrafts and inner base as well as securing the perimeter
Way Forward
A dedicated force for surveillance 24*7; Re raise the Air Defence Force Batallion of 1971 which was merged with infantry battalion of army
Help from local and state governments to raze illegal structures in vicinity of airbases
Electronic surveillance; UAVs; skill set for guards
Mock drills with police, army, BSF , Armymen guards etc at times to be ready for any emergency situation
The Santosh Hegde Commission, set up by the Supreme Court after seized of complaints of over 1,500 fake encounter killings in the state of Manipur, investigated six cases
and found these to be premeditated killings. The commission also stated that the security forces routinely transgress the legal bounds for counterinsurgency operations. Few complaints
were investigated — the commission noted that of the 66 complaints received against Assam Rifles personnel in five years, only three had been disposed of.
Robust internal mechanisms within the forces can check errant behaviour by security personnel. Probes into fake encounter claims are debilitated by procedural infirmities and
violations, some of which are deliberate. In the context, the Hegde Commission had laid down rules to ensure the independence of probing agencies and suggested supervisory
mechanisms to ensure that justice is served to victims.
AFSPA; Yes and No
Tripura withdraws AFSPA imposed since 1977.
Enacted after Naga rebellion in 1958 in Nagaland
Against some FRs, preserves other rights
If repealed in J&K and turmoil reborn then, its reintroduction will be tough.
Army has built roads, airfields connected vulnerable inaccessible areas, they will go in vain.
Jeevan Reddy committee, Verma committee & Veerappa moilly committee said to repeal
J&K strategically important. Separatism can only be controlled by tough hands but innocent lives are being lost.
Notorious neighbors in J&K than in NE
BCIM will economically integrate NE states
Reforms
1.Limit AFSPA
AFSPA should be limited to LoC. CRPF and state police should take care of the hinterland.
2.Punish wrongdoing
Some acts like Maachil firing was rogue behaviour and needed treatment at par with criminal cases. Only border related, insurgency cases should take help of AFSPA.
This will also instill confidence in government in kashmiris.
Parthribal case SC intervened to punish military officers for alleged killing, rapes.
Brutality in Manipur
3.Support
Army should come to rescue if asked by state administration. A joint force is needed to curb terrorism.
India’s total installed renewable energy capacity stands at close to 28GW, nearly 22% of the colossal target of 175 GW by 2022
GARV app
GVAs or Grameen Vidyut Abhiyantas appointed from local areas who submit reports on GARV app which persuades state governments to do quality delivery of electricity services.
States generally do not give accurate picture of services and may submit false electrification reports; hence NGOs, civil society groups can also hold state governments accountable; GARV
app also does the same.
IEA
The IEA is an intergovernmental organization with a broad role of promoting alternate energy sources (including renewable energy), rational energy policies and multinational
energy technology cooperation and acts as energy policy advisor to 29 member countries.
The OES, launched in 2001, is an intergovernmental collaboration between countries, which operates under framework established by the International Energy Agency. This initiative is to
advance research, development and demonstration of technologies to harness energy from all forms of ocean renewable resources, as well as for other uses, such as desalination etc.
through international cooperation and information exchange.
India joined in Jan 2016 and the nodal agency is Earth System Science Organisation and National Institute of Ocean Technology under Ministry of Earth Sciences.
Transformative Carbon Asset Facility
Four European countries Germany, Norway, Sweden, and Switzerland
$500 million initiative that will find new ways to create incentives aimed at large scale cuts in greenhouse gas emissions in developing countries to combat climate change. The World
Bank Group worked with the countries to develop the initiative.
help developing countries implement their plans to cut emissions by working with them to create new classes of carbon assets associated with reduced greenhouse gas
emission reductions, including those achieved through policy actions.
A UNEP report in 2011 showed that investments in renewable energy resources for a green economy gives a slow growth at the beginning but is beneficial in the long run with high
growth rates and decreased risks to cyclones, floods etc which are increasing as a result of climate change at present.
Wind Energy
65 MW of generation by 2022
Issues
Micro grids need smart metering; costs of RE should be separated from total usage to identify efficiency of RE
Millions of birds die of getting hit by wind blades
Increased environmental burden by use of polyvinyl plastic. concrete. steel.
Many windmills (30%) old and need replacement; government introduced a repowering policy where old inefficient windmills can be replaced by new heavier wind turbines that are more
efficient
Noise in surroundings
Location if far away from settlements will need cables for connections; in sea or near shores will need cables under water; corrosion in sea water
OIL & GAS
96 Trillion Cubic Feet of estimated shale gas reserves.
47 Trillion Cubic Feet of proven natural gas reserves.
740 MMT of proven oil reserves.
Coal Bed Methane Policy, 1997
35% pipeline transport
REInvest 2015 Summit
Investment for RE globally in India
Feb 2015
Green Bonds
These bonds are issued for projects having a cause for environment conservation like Renewable Energy etc
European Union first issued such bonds through Yes Bank in 2007; reached $500 million
There market will reach 100$ billion in 2020.
Asking NDB, ADB, WB to issue 15% of loans for renewable sector
Issuing of Green Bonds to NTPC, REC, PFC, IRDA.
need of atleast $200 bn for realising targets.
India needs to producet coal at maximum output to use it before a moratorium on fossil fuels is adopted
Linkage with Natural Gas as in TAPI is needed with shift to low carbon fuels and RE energy
ISSUE
Capacity addition of 22,000 MW
Rising demands; low generation; coal, gas shortage.
Investment to come from private sector; do they have the potential?
Public investment needed; curb transmission losses (70,000 crores losses daily)
Easy clearances for private sector
Since 2001, discom losses, as high as 2 per cent of GDP, have grown substantially. This can be attributed primarily to inadequate tariff increases, poor power purchase planning, lack
of timely subsidy payments, and inefficiencies in metering and billing. Reckless funding by banks to lossmaking discoms fuelled such practices until bailouts became inevitable
Hence, Investment in distribution also needed, along with generation, transmission.
WOES OF DISCOMS
Losses through thefts; nonpayment of bills by errant customers
No freedom of change in tariff rates with costly production
Populist policies of government; prices fixed which make production unprofitable
Generation capacity has increased substantially but actual production is low with low demand from discoms. In North East power deficit increased to 12% in 201314 in contrast to
decrease in other regions.
From 2008 to 2014, energy deficit (shortfall in energy supply during a day) has reduced from 11.0% to 3.6% and peak deficit (shortfall in supply during highest consumption period in
a day) has reduced from 11.9% to 4.7%.
(i) shortage of fuelcoal production has not been significant and imports have increased to more than 160 million tonnes from 50 million tonnes
(ii) high AT&C losses
(iii) a differential tariff structure; Populist waivers; subsidies making power supply unfeasible like in agriculture sector.
(iv) delays in tariff revisions.

High AT&C losses and losses arising due to issues with tariff affect the ability of distribution companies (discoms) to buy power to supply to the consumers.
Aggregate Technical and Commercial (AT&C) loss is the percentage of power procured by the discom for which it did not receive any payment. The national average for
AT&C losses for 201213 was about 25%. In countries such as UK and US, AT&C losses are about 67%.
Technical loss is the energy lost as heat when electricity is carried over wires. Poor equipment increases this loss.
Commercial losses are caused by theft and pilferage of power, and lack of metering and poor billing and collection systems.
The Accelerated Power Development Program was launched in 200203 with the main objective of reducing AT&C losses.
Reduction in AT&C losses (1.1% per annum) has been slower than the target (3% for utilities with losses above 30%; 1.5% for others).
The accumulated losses of stateowned discoms (without subsidies) rose from Rs 11,699 crore in 200405 to Rs 71,271 crore in 201314.
These losses have resulted in state discoms relying more on shortterm loans to fund their operations. The interest cost on these loans worsens the poor finances of state
discoms leading to power deficits
Way ahead
Prepaid electricity like Telecom; support of law and authorities to check leakage
Subsidy should be rationalised and fixed in quantity
National Budget encompassing these losses rather than leaving it to states
Mitigation of losses
Uday (Ujwal DISCOM Assurance Yojana)
Outstanding debt of DISCOMs has increased from about Rs. 2.4 lakh crore in 201112 to about Rs. 4.3 lakh crore in 201415, with interest rates upto1415%.
Involves the takeover of discom liabilities by state governments over a two to fiveyear period. This debt is to be financed via bondswith a maturity period of 1015 years. Under Uday,
this additional liability will not be considered for assessing fiscal responsibility limits of states. This, coupled with the expected 3 to 4 percentage point reduction in interest rates,
makes the scheme attractive to states. (13% for interest payment on borrowings to 8% in State bonds; varies with states but market driven rates where state bonds are traded will lead to
lowering of interest rates)
Four initiatives
(i) Improving operational efficiencies of DISCOMs;
(ii) Reduction of cost of power;
(iii) Reduction in interest cost of DISCOMs;
(iv) Enforcing financial discipline on DISCOMs through alignment with State finances.
UDAY is a shining example of the utilization of the best principles of cooperative and competitive federalism and has been evolved through discussions at the highest levels with
multiple States.
Adopting UDAY is optional for States, but provides the fastest, most efficient and financially most feasible way for providing 24X7 Power for All. It will be operationalized through a tri
partite agreement amongst the Ministry of Power, State Government and the DISCOM
States will be eligible for more funding through DDUGJY, IPDS, Power Sector Development Fund (PSDF)
Issues
Market distortion
At present complains of State led bonds crowding out other borrowers in the market is unfounded as there are many players and time of issue is a particular period generally the first half of
fiscal year rather than throughout the year like private bonds.
Difference between costs of State and centre borrowings.
The gap has widened with increased demand and high interest rates; became costly for states; however will stabilise with the passage of time.
Credit growth of banks
Many banks sit on the pile of huge NPAs related to discoms; such bonds will help in clearing of loans; many bnaks can buy these bonds and supply credit for other economic needs; also
these bonds will be freely traded.
Investment in green corridors, renewable energy (Power planning).
Leverage available through low crude oil prices must be use effectively in 3 fields
1.Railways
Freight traffic is more on roadways
Causes losses of 40,000 crores every year which is 16% of transport expenditure
Stagnant railways postindependence must be use for coal transport
2.Coal
Abundant reserves of coal
Need to develop state of the art thermal plants
Huge capacity to generate power which can fuel growth in other sectors
3.Renewable energy
Nearly 50 $ billions will be saved due to low prices
Current RE is 170 GW where wind has maximum generation with solar only 4500 MW
Government launched solar plants at Rajasthan, Gujarat, Tamil Nadu
India must reduce dependence on fossil fuels through RE
India should boost strategic reserves in overseas to tackle crisis in market. For example in Canada, SE Asia etc
Moreover, Indian Navy should be strengthened to protect Indian Tankers in conflict zones like Middle east.cost of fer
4.Fertilizers
Lower cost of fertilizer subsidies; kerosene subsidy costs will decrease
12th plan
National Bioenergy Mission in Bihar
Energy from biomass
National Biomass cookstove programme
RE development fund
RE Benefits; Measuring the Economics of IRENA or International RE Agency's 6th assembly session 2015
RE use will lead to boost in global GDP by 1.3 trillion dollars; global welfare increasing by 3.7%
Employment to rise from 9 to 24 millions by 2030
Japan will benefit the most followed by S. Korea, Australia, Mexico, Germany
India, China, Japan, Korea will import less fossil fuels and benefit; exporters of fossil fuels will benefit through diversified economy.
DELP (Domestic Energy Lighting Programme)
Under Minister of Power, Coal, New renewable Energy
Government distributing LED bulbs at reasonable rates
Customers can pay full money in installments with Rs 10 as initial purchase amount.
Green Corridor
Rs 48,000 crores project launched with the help of Germany.
Solar, wind, hydro etc supplying to national grid
Issue is with voltage fluctuations in renewable energy.
Need is to make power supply dynamic
Two partners; interstate and PGCIL.
Accurate weather forecasting for natural resources being used for electricity.
Cluster wise distribution of energy. (rural electrification poor)
Accessible, Affordable energy
Central ELectricity Regulatory Commission (CERC)
1.Quasijudicial body under section 76 of Electricity Act, 2003, works under Ministry of power
2.Aim is to regulate tariff of power generating companies under GoI and interstate transmission of energy under GoI
3.National grid through which states draw electricity in need.
Issue
1.States defaulted lke U.P and J&K and overdrew electricity but did not pay the dues.
2.National Electricity policy mentions 55 MW as reserve but it presently has no reserves.
Geothermal Energyat Manikaran, H.P and Puga valley in Ladakh
USA, Iceland, New Zealand, Philippines and Central America
Use of Geoexchange Pumps or Ground Source Heat Pumps; Refrigeration cycle; refrigerant flows from surface to earth; Earth gives heat in winter and sinks heat in summer
More than 100 billion $ needed to establish 100 GW RE in India by 2020; Indian banks only have 85 bn $ capacity for both conventional and nonconventional
energy at the moment
As of December 2015,
Total grid installed RE in country at 38,222 MW.
Total installed capacity of wind at 25,088 MW
Solar at 4,879 MW
Biopower as 4,551 MW
Hydroelectric Power Projects
22% of electricity generation in India.
Small hydroupto 25 MW managed by Ministry of RE
Large hydro>25 MW managed by Mo Power
40% after independence but plummeted to 15% over the years
148 GW potential but only 40,000 MW used
267 GW country's total installed capacity68% of thermal power plant and 80% of power supply.
Advantages
Environment friendly
Easily manipulated
Independent of climate
Round the clock availability
High voltage generated
Provide peak power support
Double energy production as compared to wind/solar in MW
No risk of fuel price hike
ISSUES
Costly
Land acquisition causing displacement of local population
Kills natural runoff and biodiversity
Tidal Energy
Russia, France, S.Korea, Ireland
Environmental impacts on fauna, fisheries etc with huge inundation of surrounding land
Renewable energy 33,200 MW in India
Ministry of New and Renewable Energy
1.National Institute of Solar Energy 1982, Gurgaon, Haryana
Under implementation of Jawahar Lal Nehru National Solar Mission
#Solar PV cells
#Solar thermal
#Solar Assessment
Make in India initiative where 1000 MW grid connected solar PV will be made domestically. Trade relations with Germany the largest user of solar PV technology are being established.
2.National Institute Wind Energy, Chennai
Collaborates with national and international R&D
3.Sardar Swaran Singh National Institute of RE
Biomass utilization R&D
All India energy shortage of 3,027 MW with surplus in western region (Load generation report,Central electricity authority)
South India with shortage of 9000 MW (WARDHAHYDERABAD link to supply 2500 mW, RaichurSolapur project 765kV)
JAWAHAR LAL NEHRU SOLAR MISSION
Govt. target of 1,00,000 MW solar, 60,000 MW wind
#PPP is needed with credit from banks.
#Open competition as govt. reduces itself to energy regulator only and open the supply sector for private players.
90% of solar is Crystalline silicon.
#Solar energy tariff is fixed and is to be revised after 25 years while for coal thermal tariff varies with the prices in market and is revised annually.
#Decentralisation of solar power in villages, MSMEs is needed. Large solar projects have cost around Rs 7/unit
Five segments in distributed generation:
*Commercial rooftop; has not picked much; to see solar energy as not only power generation but decreasing emissions also; target of 40,000 MW by 2022; silicon panel costs coming
down; Delhi gives Generation Based Incentive or GBI for every MW of solar energy generated.
*Industrial segment
*Residential segment
*Irrigation Pumping
*Solar microgrids
Issues with solar energy
Solar energy is not continuous and changes with weather pattern (clouds etc). Hence India wants to develop coal based thermal power simultaneously.
Currently government has plans for solar power generation costs but not for poor transmission losses, interstate transfer costs, grid construction costs. These will increase costs and
make the whole process ineffective.
Thermal generates more power at less costs. This is the reason for more coal thermal power plants. Latest technology is used in China which has decreased emissions considerably.
Land needed for solar forests. With tardy land acquisition in India and cost associated path to solar is tough. For 1 MW generation 1 sq km space is needed. Gujarat using in canals; roof
top solars but in crowded areas it will be a problem
Dumping of crystalline silicon from CHINA and thin film panels of USA; India issued DCR or Domestic content requirements; USA pulled India to WTO.
High maintenance costs of solar panels. India may become an importer of Rare Earth Metals adding to crude oil and gas
Labour intensive in setting up plants but much lower employment generation than hydro, nuclear, thermal etc.
Flash Frying of birds.
Noor Jahan, a Kanpur women lighting 500 homes with solar lanterns.
National Electricity Mobility Mission Plan, 2020
Sale of electric vehicles
FAME scheme or Faster Adoption and Manufacturing of Hybrid and Electric vehicles; got Rs 75 crores in Budget 201516; need more funds
CLFR (Compact Linear Fresnel Technology)
Reliance to setup power plants in Rajasthan
Concentrating linear fresnel reactor
Thin sheeted mirrors focus light to multiple absorbers in an area where solar intensity is 30 times.
This absorber heats up a thermal liquid at high temperature which is transferred to run a steam generator.
LFR uses single absorber only.
CSTP Concentrated Solar Thermal Power Plant and Biomass power generation should replace coal thermal.
Gemasolar in Spain generating 20 MW; 10 % more than Indian coal thermal. However, it is costly (4.50 rupees per unit) but maintenance and storage costs is quite less than photovoltaics
in the long run.
Priority sector lending in solar energy upto 15 crores in RE; 10 lakh loans in solar rooftop at interest rates of home loans
Pricing Solar energy
Solar tariffs at historic low Rs 4.34/unit for a 70 MW project in Rajasthan by Finnish Solar power company Fortum energy.
Usual buyers of costly solar energy are industrial users; when individual consumers use rooftop solar or other forms of renewable energy they buy less from discoms which affects their
financial health; hence they try to discourage such lowering of tariff
Hence the government should try to lower rates of solar energy by giving exemptions on VAT and other taxes.; this will help putting up solar energy in electricity grids
International Solar Alliance ISA
Unique organisation solely for solar energy; on the roads of IRENA, IEA etc
Creating an ecosystem for solar energy in solar rich countries especially Least Developed African countries
Funding requirements; 100 crores pledges at one time by India; 225 crores in 5 years
Interim Secretariat at Gurgaon; inagurated by French Prez in Jan 2016
Need to include corporate sector in funding and implementation; dovetailing MAKE IN INDIA program for producing solar technology
Exports from India to other countries; transfer of technology
121 countries in alliance
CEEW–NRDC or Council on Energy, Environment and Water (CEEW) and the Natural Resources Defense Council (NRDC) analysis, in the recently released report Filling the Skill Gap in
India’s Clean Energy Market, suggests that skilling for research and product development would be essential for scaling up the manufacture of photovoltaic (PV) panels and
wind turbines.
Solar and wind energy generation technology will create thousand of skilled jobs in the country. There is a need to skill the vast unskilled labour present in India.
NUCLEAR ENERGY
present: 4 MW
To raise to 80 GW
3 stage nuclear programme in India
1.PHWR Nuclear Power Corporation of India Limited NPCIL manages.
2.Fast breeder reactorPlutonium and thorium in combination with oxides. BHAVINI manages
3.Thorium based reactorsThorium and uranium 233Thorium breaks to give U233 and U232 with Thalidomide and other residuesEasy to handle, less costly, leakage issues can be
handled easily, better shielded walls of reactors
More than 40 years to produce enough fissile material for third stage; India can import materials from Japan, Russia which have abundant 3rd stage materials.
doubling time
IAEA or International Atomic Energy Association
Established in 1957 on Eissenhower the US prez "Atoms for Peace Proposal"
Checks nuclear facilities in countries; whether civilian reactors not being used for defence purposes
Peaceful use of nuclear energy
Why India thorium reserves not used?
1.Natural thorium 232 is non fissile and we need plutonium239 to react.
2.Plutonium can be generated by Uranium (Natural Uranium contains 0.7% U235 which is fissile and 99.3% Uranium 238 which is nonfissile)
3.Thorium is used as a blanket on Pu239 to generate U 233 which is fissile but not naturally occuring.
Again this U 233 with a blanket of thorium generates U 233. At each stage energy is produced and fissile fuel is also produced.
Hence we need uranium to start the process.
IndiaUSA nuclear agreement2008 signed b/w Bush and M.Singh
1.India separated its nuclear military and civil sector.
2.Under IAEA approval taken after inspection.
3.USA got a NSG waiver for India.
4.India got into nuclear agreements with France, USA
Hyde act & section 123 agreement
For making India compliant to nuclear supply and end the isolation.
Price Anderson actVictims in US can sue suppliers.
Vienna convention, Paris conventionUSA is a nonsignatory as they hold supplier independent of any claims raised by victims
However USA showed double face with India. Convention on Supplementary Compensation or CSC warrants India to abandon claims to supplier in mishap.
CLNDA (Indian Civil Liability for Nuclear Damage Act)
1.Section 46 On a catastrophe the nuclear supplier can be tried under Indian laws
(CSC Convention on Supplementary CompensationSuppliers cannot be tried in international courts.India is not a member)
2.Section 17(b)Only operator and not victims can sue nuclear supplier
An enabling provision based on contract and not mandatory.
3.Rule 24 fixes the amount of liability on a supplier to 1500 crores.
4.Clause 20 says that damage can be claimed only till 20 years of accident. However, radioactive damage festers for a long period which could be >20 years.

ISSUE
1.For compensation rule 24 of act limits 1500 crores or the value of contract between operator and supplier whichever is less. there is a writ petition in S.C against it.
Latest2160 crores in total1500 crores by operator like NPCIL; 1000 crores by government and if it exceeds then rest by insurance companies or taxes paid by people.
#Compensation runs into billions considering Fukushima disaster (200 bn $) as an example. It will be peanuts and highly unjustified.
#India is diluting these laws to call for GE, Toshiba Westinghouse etc of US and other nuclear commercial players to build nuclear reactors.
#India wishes to reach 20,000 MW power under N.E by 2020.
2.An insurance fund raised by government, taxpayers, operators to take care of nuclear liability is in process as announced in IndiaUS meet on 26 Jan, 2015.
#No private player in USA has the means to compensate in a nuclear catastrophe.
#France (Areva) and Russia (Rosatom) are in intergovernment agreement in nuclear supply. Hence they can compensate but not US commercial players.
3.Pricing
Moreover the reactors which westinghouse and General electric are hardly in use or without any problems in USA. Vogtle plant costs 7 bn $. Hence, the price perunit will come around Rs
15.
USA had economic channeling where victims can charge against operators, operators against designers, suppliers etc.
But overseas USA changed economic channeling to legal channeling where victims can charge only operators.
As, in foreign countries low grade reactors, ineffective management can cause mishaps in NE.
Alternate approach
1. Renewables
N.E power supply to Indian homes will be costly and it is better to enhance wind and solar power.
*But solar and wind have low power capacity to feed millions in India.
ITERInternational Thermonuclear Experimental Reactor
Constructed in France is working on using FUSION process for generating energy.
*Fusion is more energy efficient. Low heat produced
*Fusion products are relatively less radioactive and the process can be controlled.
Thorium based reactors 3rd stage
Produce less waste
Low maintenance cost
Residual material gets degenerated in 300400 years
Cheaper because of high burnup
More proliferation resistant; U232 a strong source of gamma radiation, Thalium208
India covertly developing nuclear weapons; Khudapura and Chitradurg sites; environmental impact; damage to grasslands called kavals habitat of Great Indian Bustard, Lesser Florican.
Disposal
Only 23% waste generated; rest recycled; this high level waste converted into glass by vitrification which is done at present at tarapur, Kalapakam plants.
Concrete structures are used to dispose and buried within plant premises for 3040 years to cool off and then dumped in uninhabited places
PARIS CONVENTION (1960)
VIENNA CONVENTION (1963)
BRUSSELS SUPPLEMENTARY CONVENTION (1963)
NSGNuclear Supplier's Group
1.Established in 1975 as a response to India's 1974 nuclear experiment
2.Aim is to reduce proliferation of nuclear weapons and retransport.
3.Currently has 48 members. India is believed to be a member soon.
Wassenaar Arrangement(Wassenar arrangement on exports control for conventional arms and Dual use goods and technologies)
1.Established July 1996 and is a post cold war body replacing COCOM (Coordinating Committee for Multinational Exports Control) at Wassenaar, Netherlands.
2.It is a multilateral export control regime with 41 participating countries which includes former Warsaw pact countries.
3.It checks the transport and export of arms and ammunition to non wassenaar countries every 6 months through meetings.
4.India is not a member.
Missile Technology Control Regime
1.Established in April 1987 by France, Italy, Germany, USA, U.K, Canada, Japan. Currently has 34 members.
2.Aim is to curb ballistic missile production, unmanned aerial vehicle with capability of carrying a payload of 500 kg to atleast 300 metres.
3.China didnot sign but agreed to limit its production of missiles. Similarily, India, North Korea, Israel, Pakistan make ballistic missiles.
Such non compliance is due to geopolitical locations of these countries. Terrorism and insurgency is rife around.
Australia Group
1.Informal group of countries established in 1985 in response to chemical weapon attack on Iraq in 1985.
2.Includes OECD countries, EU, EC, Ukraine.
3.Aim is to limit exports of chemical and biological weapons and proper discussion with members before any transfer is done.
Zangger Committee
1.Came in force in 1970 under NPT policy. IAEA norms have to be followed
2.It prohibits export of fissionable material to any nonnuclear country even for peaceful purposes.
CTBT (Comprehensive Test Ban Treaty)
CTBT: S&T conference, Vienna,June 2015
India is a nonsignatory
Has IMS (International Monitoring System) which can detect nuclear explosions around the globe.
Vibrations in earth crust, radionuclide fumes, are checked
Early disaster warnings can be given.
India can setup a radionuclide station before opting for CTBT
IndiaJapan Nuclear Agreement
India is very keen to enter into an agreement with Japan for supply of nuclear energy. However, the woes of nuclear energy are not hidden and known to everyone through Chernobyl
accident, Fukushima disaster. India needs to play a cautious approach considering vague compensation clauses in nuclear accidents and the vulnerable population.
Nuclear energy will need reactors from outside India. EPR of Areva, France, EBSWR of General Electric and Japanese reactors will be supplied to India. Their costs run into billions of
dollars which will be reflected in high cost of per unit usage of nuclear energy. Also their safety is an issue as they have not been used earlier.
Hiroshima, Nagasaki are already the victims of atom bomb in 1945. They raised red flags over this future agreement. India does not have necessary resources to mitigate losses in nuclear
accidents. GE is wary of investing in India until nuclear suppliers are exempted from compensation as in Fukushima disaster where 200 billion dollars were paid from taxpayer's money
exonerating suppliers.
Moreover, Make in India program warrants manufacturing in India. Domestic production of parts of reactors in India is a tough task considering skills involved and reluctance on the part of
companies to transfer their technologies.
Hence, India's craving for nuclear energy can also be satiated from other sources of RE like solar, wind etc. Nuclear energy is being abandoned by many countries considering the risks
associated and India should follow suit or atleast seek public opinion.
Atomic Energy Regulatory Board.
The Atomic Energy Regulatory board was constituted on November 15, 1983 by the President of India by exercising the powers conferred by Section 27 of the Atomic Energy Act,
1962 (33 of 1962) to carry out certain regulatory and safety functions under the Act. The regulatory authority of AERB is derived from the rules and notifications promulgated under
the Atomic Energy Act, 1962 and the Environmental (Protection) Act, 1986. The mission of the Board is to ensure that the use of ionizing radiation and nuclear energy in India does
not cause undue risk to health and the environment
NERPSIP North Eastern Region Power System Improvement Program
NEED
1.NE region has maximum number of rivers flowing through but the energy production is minimal.
2.Hydroelectric potential of NE if harnessed can bring economic development.
3.Distributional losses and absence of interstate transfer of surplus power call for better infrastructure.
AIM
To minimise the lacunae in infrastructure and power transmission between NE states.
STRUCTURE
1.Funded by World Bank and GoI in 50:50 partnership
2.Capacity building a full responsibility of GOI (89 Crores)
3.Capital disbursal in 3 phases of 500 mn $ each.
Coalfired/Thermal power plants
India has an annual production target of 1.5 billion tonnes by 2020
A source of air pollution.
a.Harmful gases like SO2, NOx
b.Particulate matter 2.5ppm
Need for reforms
1.FGD technique
Flue gas desulfurisation technique where limestone treatment, scrubbing etc is done.
Electrostatic precipitators, cyclone bag filters should supplement FGDs
2.Setting up of plants away from human residence
50200 km
3.MoEF recommendations
Building stacks according to power capacity.
4.Right to information and EIA
a.proper EIA before setting up plants.
b.Disclosing to public about emissions etc.
Renewable Energy
Woes
1.Supply but not peak demand
RE is not a continuous source of energy. Grid capability is increased but peak demands cannot be met.
Location away from residential areas.
High costs of RE generation and supply.
Coal Bed Methane
Contains methane
Lies above coal dissolved in water
Extracted through fracking.
Uses
1.Lower GHG effect than coal
2.Water extracted can be used for agriculture etc
3.Supplying electricity to local [population.
For ex Dhanbad coal mines to worker residential areas.
4.Coal can be extracted afterwards.
5.Easy, with less hazards to workers.
Dangers
1.Environmental impact
Methane has highest (100 times than CO2) GHG potential
2.More vehicles>More emissions
3.Water pollution
Groundwater not only decreases but is polluted as chemicals like carcinogenic benzene, radionuclides seep into aquifiers.
4.Chemical harming people around
Chemicals released with water contain chromium, flourides etc in high amounts which ruin crops and affect people living around.
5.Subsidence leading to abandoning of residences
Fracked coalbed causes sudden subsidence of mines.
Electricity Amendment Act, 2014
http://www.prsindia.org/billtrack/theelectricityamendmentbill20143507/
300 million homes not electrified
Deendayal Upadhyaya Gram Jyoti Yojana under ministry of Power
Supplying electricity 24*7 by 2019
Rajeev Gramin Vidyutikaran Yojana launched in 2005
1.Option to consumers
Consumers can change supply licensee
It may push government agencies to supply free of cost to low income households
2.Term of members
Central or State Electricity Regulatory Commission members term reduced to 3 years
It is quite less as decisions need stable and longterm heads.
3.Renewable Generation obligation
Good initiative but RPO existing will create unnecessary burden on distributors.
4.Power grid system
5.Open access and price rationalisation
Conflicting modification on 21112015 15:12:56
IndiaUSA PEACE/PACEsetter
Under MoRE
PEACE is Promoting Energy Access through Clean Energy
PACE is USIndia Partnership Agreement on Clean Energy
REInvest 2015 Summit
Investment for RE globally in India
Feb 2015
ISSUE
Capacity addition of 22,000 MW
Rising demands; low generation; coal, gas shortage.
Investment to come from private sector; do they have the potential?
Public investment needed; curb transmission losses (70,000 crores losses daily)
Easy clearances for private sector
Investment in distribution also needed, along with generation, transmission.
Investment in green corridors, renewable energy (Power planning).
Leverage available through low crude oil prices must be use effectively in 3 fields
1.Railways
Freight traffic is more on roadways
Causes losses of 40,000 crores every year which is 16% of transport expenditure
Stagnant railways postindependence must be use for coal transport
2.Coal
Abundant reserves of coal
Need to develop state of the art thermal plants
Huge capacity to generate power which can fuel growth in other sectors
3.Renewable energy
Nearly 50 $ billions will be saved due to low prices
Current RE is 170 GW where wind has maximum generation with solar only 3000 MW
Government launched solar plants at Rajasthan, Gujarat, Tamil Nadu
India must reduce dependence on fossil fuels through RE
India should boost strategic reserves in overseas to tackle crisis in market. For example in Canada, SE Asia etc
Moreover, Indian Navy should be strengthened to protect Indian Tankers in conflict zones like Middle east.
12th plan
National Bioenergy Mission in Bihar
Energy from biomass
National Biomass cookstove programme
RE development fund
DELP (Domestic Energy Lighting Programme)
Under Minister of Power, Coal, New renewable Energy
Government distributing LED bulbs at reasonable rates; LIFE SPAN; 25000 hrs of LED, CFLs with 8000 hours and Incandescent bulbs with 1200 hours
Customers can pay full money in installments with Rs 10 as initial purchase amount.
EESL or Energy Efficiency Services Limited PSU distributing LED bulbs; 7 crore bulbs
9.17 crore bulbs sold as of April 6; reduction of 26,451 tonnes of CO2 per day or atleast 10 million tonnes pr year
Street Light National Program; approx 7 lakh streetlights converted to LEDs; savings of 2.72 lakh units of electricity per day
Green Corridor
Rs 48,000 crores project launched with the help of Germany.
Solar, wind, hydro etc supplying to national grid
Issue is with voltage fluctuations in renewable energy.
Need is to make power supply dynamic
Two partners; interstate and PGCIL.
Accurate weather forecasting for natural resources being used for electricity.
Cluster wise distribution of energy. (rural electrification poor)
Accessible, Affordable energy
Central ELectricity Regulatory Commission (CERC)
1.Quasijudicial body under section 76 of Electricity Act, 2003, works under Ministry of power
2.Aim is to regulate tariff of power generating companies under GoI and interstate transmission of energy under GoI
3.National grid through which states draw electricity in need.
Issue
1.States defaulted lke U.P and J&K and overdrew electricity but did not pay the dues.
2.National Electricity policy mentions 55 MW as reserve but it presently has no reserves.
Geothermal Energyat Manikaran, H.P and Puga valley in Ladakh
USA, Iceland, New Zealand, Philippines and Central America
Hydroelectric Power Projects
22% of electricity generation in India.
Small hydroupto 25 MW managed by Ministry of RE
Large hydro>25 MW managed by Mo Power
40% after independence but plummeted to 15% over the years
148 GW potential but only 40,000 MW used
267 GW country's total installed capacity68% of thermal power plant and 80% of power supply.
Advantages
Easily manipulated
Independent of climate
Round the clock availability
High voltage generated
Provide peak power support
Double energy production as compared to wind/solar in MW
No risk of fuel price hike
ISSUES
Costly
Land acquisition causing displacement of local population
Kills natural runoff and biodiversity
Tidal Energy
Russia, France, S.Korea, Ireland
Environmental impacts on fauna, fisheries etc with huge inundation of surrounding land
Renewable energy 33,200 MW in India
Ministry of New and Renewable Energy
1.National Institute of Solar Energy 1982, Gurgaon, Haryana
Under implementation of Jawahar Lal Nehru National Solar Mission
#Solar PV cells
#Solar thermal
#Solar Assessment
Make in India initiative where 1000 MW grid connected solar PV will be made domestically. Trade relations with Germany the largest user of solar PV technology are being established.
2.National Institute Wind Energy, Chennai
Collaborates with national and international R&D
3.Sardar Swaran Singh National Institute of RE
Biomass utilization R&D
All India energy shortage of 3,027 MW with surplus in western region (Load generation report,Central electricity authority)
South India with shortage of 9000 MW (WARDHAHYDERABAD link to supply 2500 mW, RaichurSolapur project 765kV)
JAWAHAR LAL NEHRU SOLAR MISSION
Govt. target of 1,00,000 MW, 60,000 MW solar
#PPP is needed with credit from banks.
#Open competition as govt. reduces itself to energy regulator only and open the supply sector for private players.
90% of solar is Crystalline silicon.
#Solar energy tariff is fixed and is to be revised after 25 years while for coal thermal tariff varies with the prices in market and is revised annually.
#Decentralisation of solar power in villages, MSMEs is needed. Large solar projects have cost around Rs 7/unit
Five segments in distributed generation:
*Commercial rooftop
*Industrial segment
*Residential segment
*Irrigation Pumping
*Solar microgrids
Issues with solar energy
Solar energy is not continuous and changes with weather pattern (clouds etc)
Currently government has plans for solar power generation costs but not for poor transmission losses, interstate transfer costs, grid construction costs. These will increase costs and
make the whole process ineffective.
Thermal generates more power at less costs. This is the reason for more coal thermal power plants. Latest technology is used in China which has decreased emissions considerably.
Recent solar power per unit price was fixed in a deal at Rs 4.34; However such low prices may turn out to be uneconomical in the long run
Land needed for solar forests. With tardy land acquisition in India and cost associated path to solar is tough.
Dumping of crystalline silicon from CHINA and thin film panels of USA; India issued DCR or Domestic content requirements; USA pulled India to WTO.
*Recently WTO declared DCR cause invalid under violation of Article III:4 of GATT, 1994 and Section 2.1 of Trade Related Investment Measures.
*India does need RE to tackle CC and so does the world but it is also imperative to generate jobs for unemployed millions through RE market in India.
*But American states provide protection to domestic manufacturers.
*India argued at WTO that the domestic capacity is not adequate for solar tech production and wants exception under GATT; but such arguments can
encompass any trade; The better argument is that to augment domestic manufacturing capacity as the international supply is not adequate to meet
demands.
High maintenance costs of solar panels
National Electricity Mobility Mission Plan, 2020
Sale of electric vehicles
CLFR (Compact Linear Fresnel Technology)
Reliance to setup power plants in Rajasthan
Concentrating linear fresnel reactor
Thin sheeted mirrors focus light to multiple absorbers in an area where solar intensity is 30 times.
This absorber heats up a thermal liquid at high temperature which is transferred to run a steam generator.
LFR uses single absorber only.
NUCLEAR ENERGY
present: 4 MW
To raise to 80 GW
3 stage nuclear programme in India
1.PHWR Nuclear Power Corporation of India manages.
2.Fast breeder reactorPlutonium and thorium in combination with oxides. BHAVINI manages
3.Thorium based reactors.
Doubling time
Why India thorium reserves not used?
1.Natural thorium 232 is non fissile and we need plutonium239 to react.
2.Plutonium can be generated by Uranium (Natural Uranium contains 0.7% U235 which is fissile and 99.3% Uranium 238 which is nonfissile)
3.Thorium is used as a blanket on Pu239 to generate U 233 which is fissile but not naturally occuring.
Again this U 233 with a blanket of thorium generates U 233. At each stage energy is produced and fissile fuel is also produced.
Hence we need uranium to start the process.
IndiaUSA nuclear agreement2008 signed b/w Bush and M.Singh
1.India separated its nuclear military and civil sector.
2.Under IAEA approval taken after inspection.
3.USA got a NSG waiver for India.
4.India got into nuclear agreements with France, USA
Hyde act and section 123 agreement
For making India compliant to nuclear supply and end the isolation.
Price Anderson actVictims in US can sue suppliers.
Vienna convention, Paris conventionUSA is anonsignatory as they hold supplier independent of any claims raised by victims
However USA showed double face with India. Convention on Supplementary Compensation or CSC warrants India to abandon claims to supplier in mishap.
CLNDA (Indian Civil Liability for Nuclear Damage Act)
1.Section 46 On a catastrophe the nuclear supplier can be tried under Indian laws
(CSC Convention on Supplementary CompensationSuppliers cannot be tried in international courts.India is not a member)
2.Section 17(b)Operator can only sue nuclear supplier and not victim
An enabling provision based on contract and not mandatory.
3.Rule 24 fixes the amount of liability on a supplier to 1500 crores.
4.Clause 20 says that damage can be claimed only till 20 years of accident. However, radioactive damage festers for a long period which could be >20 years.

ISSUE
1.For compensation rule 24 of act limits 1500 crores or the value of contract between operator and supplier whichever is less. there is a writ petition in S.C against it.
Latest2160 crores in total1500 crores by operator like NPCIL; 1000 crores by government and if it exceeds then rest by insurance companies or taxes paid by people.
#Compensation runs into billions considering Fukushima disaster (200 bn $) as an example. It will be peanuts and highly unjustified.
#India is diluting these laws to call for GE, Toshiba Westinghouse etc of US and other nuclear commercial players to build nuclear reactors.
#India wishes to reach 20,000 MW power under N.E by 2020.
2.An insurance fund raised by government, taxpayers, operators to take care of nuclear liability is in process as announced in IndiaUS meet on 26 Jan, 2015.
#No private player in USA has the means to compensate in a nuclear catastrophe.
#France (Areva) and Russia (Rosatom) are in intergovernment agreement in nuclear supply. Hence they can compensate but not US commercial players.
3.Pricing
Moreover the reactors which westinghouse and General electric are hardly in use or without any problems in USA. Vogtle plant costs 7 bn $. Hence, the price perunit will come around Rs
15.
USA had economic channeling where victims can charge against operators, operators against designers, suppliers etc.
But overseas USA changed economic channeling to legal channeling where victims can charge only operators.
As, in foreign countries low grade reactors, ineffective management can cause mishaps in NE.
Alternate approach
1. Renewables
N.E power supply to Indian homes will be costly and it is better to enhance wind and solar power.
*But solar and wind have low power capacity to feed millions in India.
Currently we harness energy from fission processes.
ITERInternational Thermonuclear Experimental Reactor
Constructed in France is working on using FUSION process for generating energy.
*Fusion is more energy efficient. Low heat produced
*Fusion products are relatively less radioactive and the process can be controlled.
PARIS CONVENTION (1960)
VIENNA CONVENTION (1963)
BRUSSELS SUPPLEMENTARY CONVENTION (1963)
NSGNuclear Supplier's Group
1.Established in 1975 as a response to India's 1974 nuclear experiment
2.Aim is to reduce proliferation of nuclear weapons and retransport.
3.Currently has 48 members. India is believed to be a member soon.
Wassenaar Arrangement(Wassenar arrangement on exports control for conventional arms and Dual use goods and technologies)
1.Established July 1996 and is a post cold war body replacing COCOM (Coordinating Committee for Multinational Exports Control) at Wassenaar, Netherlands.
2.It is a multilateral export control regime with 41 participating countries which includes former Warsaw pact countries.
3.It checks the transport and export of arms and ammunition to non wassenaar countries every 6 months through meetings.
4.India is not a member.
Missile Technology Control Regime
1.Established in April 1987 by France, italy, Germany, USA, U.K, Canada, Japan. Currently has 34 members.
2.Aim is to curb ballistic missile production, unmanned aerial vehicle with capability of carrying a payload of 500 kg to atleast 300 metres.
3.China didnot sign but agreed to limit its production of missiles. Similarily, India, North Korea, Israel, Pakistan make ballistic missiles.
Such non compliance is due to geopolitical locations of these countries. Terrorism and insurgency is rife around.
Australia Group
1.Informal group of countries established in 1985 in response to chemical weapon attack of Iraq in 1985.
2.Includes OECD countries, EU, EC, Ukraine.
3.Aim is to limit exports of chemical and biological weapons and proper discussion with members before any transfer is done.
Zangger Committee
1.Came in force in 1970 under NPT policy. IAEA norms have to be followed
2.It prohibits export of fissionable material to any nonnuclear country even for peaceful purposes.
CTBT (Comprehensive Test Ban Treaty)
CTBT: S&T conference, Vienna,June 2015
India is a nonsignatory
Has IMS (International Monitoring System) which can detect nuclear explosions around the globe.
Vibrations in earth crust, radionuclide fumes, are checked
Early disaster warnings can be given.
India can setup a radionuclide station before opting for CTBT
NERPSIP North Eastern Region Power System Improvement Program
NEED
1.NE region has maximum number of rivers flowing through but the energy production is minimal.
2.Hydroelectric potential of NE if harnessed can bring economic development.
3.Distributional losses and absence of interstate transfer of surplus power call for better infrastructure.
AIM
To minimise the lacunae in infrastructure and power transmission between NE states.
STRUCTURE
1.Funded by World Bank and GoI in 50:50 partnership
2.Capacity building a full responsibility of GOI (89 Crores)
3.Capital disbursal in 3 phases of 500 mn $ each.
Coalfired/Thermal power plants
A source of air pollution.
a.Harmful gases like SO2, NOx
b.Particulate matter 2.5ppm
Need for reforms
1.FGD technique
Flue gas desulfurisation technique where limestone tratment, scrubbing etc is done.
Electrostatic precipitators, cyclone bag filters should supplement FGDs
2.Setting up of plants away from human residence
50200 km
3.MoEF recommendations
Building stacks according to power capacity.
4.Right to information and EIA
a.proper EIA before setting up plants.
b.Disclosing to public about emissions etc.
Renewable Energy
Woes
1.Supply but not peak demand
RE is not a continuous source of energy. Grid capability is increased but peak demands cannot be met.
Location away from residential areas.
High costs of RE generation and supply.
Coal Bed Methane
Contains methane
Lies above coal dissolved in water
Extracted through fracking.
Uses
1.Lower GHG effect than coal
2.Water extracted can be used for agriculture etc
3.Supplying electricity to local [population.
For ex Dhanbad coal mines to worker residential areas.
4.Coal can be extracted afterwards.
5.Easy, with less hazards to workers.
Dangers
1.Environmental impact
Methane has highest (100 times than CO2) GHG potential
2.More vehicles>More emissions
3.Water pollution
Groundwater not only decreases but is polluted as chemicals like carcinogenic benzene, radionuclides seep into aquifiers.
4.Chemical harming people around
Chemicals released with water contain chromium, flourides etc in high amounts which ruin crops and affect people living around.
5.Subsidence leading to abandoning of residences
Fracked coalbed causes sudden subsidence of mines.
Electricity Amendment Act, 2014
http://www.prsindia.org/billtrack/theelectricityamendmentbill20143507/
300 million homes not electrified
Deendayal Upadhyaya Gram Jyoti Yojana under ministry of Power
Supplying electricity 24*7 by 2019
Rajeev Gramin Vidyutikaran Yojana launched in 2005
1.Option to consumers
Consumers can change supply licensee
It may push government agencies to supply free of cost to low income households
2.Term of members
Central or State Electricity Regulatory Commission members term reduced to 3 years
It is quite less as decisions need stable and longterm heads.
3.Renewable Generation obligation
Good initiative but RPO existing will create unnecessary burden on distributors.
According to a survey conducted by NSSO:
Almost 97% of individuals in the age bracket of 15–60 years had limited exposure to technical education.
According to the occupational profile of India‘s workforce, 90% of the workforce population is employed in skillbased jobs, whereas more than 90% had no exposure to
vocational education or training even though more than half of the seats remain unutilised in vocational education.
There is a lack of training facilities and skills development in as many as 20 highgrowth industries such as logistics, healthcare, construction, hospitality and automobiles.
India has roughly close to 5,500 public (ITI) and private (ITC) institutes as against 500,000 similar institutes in China. India has only 4% formally trained vocational
workers. China has 100 million strong highly educated and skilled professionals.
Kushal Bharat, Kaushal Bharat
National Entrepreneurship Network(NEN)
Launched in 2003, as a nonprofit initiative of the Wadhwani Foundation. It was cofounded with IIT Mumbai, IIM Ahmedabad, BITS Pilani, SPJIMR Mumbai and IBAB Bengaluru
The goal of the community is to enable new and future entrepreneurs to access events and resources, share ideas and content, organize and market activities, and forge
relationships across India and the world. The offices are located in Bangalore &Palo Alto
For manufacturing enterprises
1.MicroInvestment in plant and machinery not more than 25 Lakhs
2.SmallInvestment between 25 Lakhs to 5 crores
3.MediumInvestment between 5 croes to 10 crores
For services companies
1.MicroInvestment in equipment not more than 10 lakhs
2.SmallInvestment in equipment between 10 lakhs to 2 crores
2.MediumInvestment in equipments between 2 crores to 5 crores
MSME sector has 44 mn units, employs 80 mn, provides 45% manufacturing output.
Social Enterprises
Companies which work for social, cultural, economic, community and environmental outcomes
They also earn revenue
Woes of MSME:
Poor funding; Lack of knowledge of financial services
Debt trap and money lenders; a need for bringing money lenders under regulation and putting an interest cap like in JAPAN
Training by banks to operate accounts, avail facilities by government etc; RBI sponsored NAMCABS Scheme or National Mission for Capacity
Building of Bankers for Financing MSME sector.
Training of bank staff for handling MSMEs as bankers are also unaware of functioning of MSMEs
#National Small Industries Corporation, a PSU joined hands with South Africa's Black Business Council to share knowledge, practices in vogue for development of MSMEs.
Labour Report 2014 India's current size of formally skilled labour force is only 2 %
Skill India Mission to aim 40 crore people by 2022 and enhance their employability
National Policy for Skill Development and Entrepreneurship 2015 wants skilling with speed, standard and sustainability.
Funding for MSME
SIDBI Make in India Loan for Small Enterprises (SMILE) with an allocation of Rs 10,000 crore.
"The Fund is expected to catalyse tens of thousands of crore of equity investment in startups and MSMEs, creating employment for lakhs of people over the next 45 years,"
"Indian Aspiration Fund" has been setup with a corpus of Rs 2000 crores managed by SIDBI
The objective of SMILE scheme will be to provide soft loans in the nature of quasiequity and term loans on relatively soft terms to MSMEs. The loan scheme's focus will be on 25
sectors under government's 'Make in India' programme with emphasis on financing smaller enterprises within the MSME sector
Creation of LMIS or Labour Market Information System under National Skill Development Mission launched in July, 2015 where labordemand supply situation will be monitored.
Technology Acquisition and Development Fund (TADF) under National Manufacturing Policy being implemented by Department of Industrial Policy &
Promotion(DIPP), Ministry of Commerce and Industry
To facilitate acquisition of Clean, Green & Energy Efficient Technologies, in form of Technology / Customised Products / Specialised Services / Patents / Industrial Design/
Green Manufacturing available in the market available in India or globally, by Micro, Small & Medium Enterprises (MSMEs).
Implemented by GITA or Global Innovation and Technological Alliance a JV to support MSME; Subsidies will be given
Capital Goods Scheme
Under Ministry of Heavy Industries and Public Enterprises
25% of value of technology acquired or upto 10 crores as support to SMEs
To promote industrial activity
TReDS (Trade Receivables Discounting SYstem)
Making finance available to MSMEs
They are not paid regularly by corporates which affect their performance
If a MSME has Rs 100 receipts left then it can exchange it through TReDS to another like a bank, NBFC at Rs 95. The latter will take Rs 100 from corporates and benefit also.
Apprenticeship Act (amended) 1961
India needs skill development of surplus labour
2.4 million people will be skilled with
It will 'ease doing business' in India.
v Definitions:
The Bill amends the definition of appropriate government to include an establishment operating in four or more states to be regulated by the central government.

v Minimum age for an apprentice:
The Act sets the minimum age for being engaged as an apprentice at 14 years. The Bill adds that the minimum age for apprenticeship in designated trades related to hazardous
industries shall be 18 years.
v Number of apprentices:
The Act says that the central government, after consulting the Central Apprenticeship Council (CAC) established under the Act shall determine the ratio of trade apprentices to workers
(except unskilled workers) for each designated trade.

v Cooperation between employers for training:
The Bill permits multiple employers to come together, either themselves or through an approved agency (vs. only themselves as per the Act), to provide apprenticeship training (vs.
practical training as per the Act) to apprentices under them.

v Practical training to apprentices:
The Act states that every employer shall make suitable arrangements in his workshop for imparting practical training to apprentices, as per the programme approved by the Adviser
v Basic training to apprentices:
The Act states that trade apprentices who have not received prior institutional training shall be imparted basic training before admission in the workshop for practical training. The
Bill specifies that such training can be provided in any institute with adequate facilities.
v Syllabus and equipment for practical training:
The Act states that the syllabus and equipment for practical training shall be as approved by the central government (with CAC consultation). The Bill limits the provision for training in a
designated trade only.

v Grant of certificate:
The Act specifies that every trade apprentice should appear for a proficiency test conducted by the National Council for Vocational Training (NCVT), on completion of his training.
On passing the test, NCVT shall grant him a certificate of proficiency. The Bill adds that such tests may be conducted and certificates may be granted by other authorized agencies as well.
v Hours of work, overtime, leave and holidays:
The Act states that the weekly and daily hours of work and leave entitlements of an apprentice shall be as prescribed by Rules. The Bill states that the hours of work and leave will be as per
the discretion or policy of the employer.
v Offences and penalties:
The Act specifies certain offences which are punishable with imprisonment up to six months or with a fine (quantum unspecified) or both. The Bill specifies the amount/maximum
amount of the fine and removes the provision for imprisonment for such offences.

v Power to make Rules:
The Act permits the central government (after consulting with the CAC) to make Rules for implementing the Act. The Bill states that these powers shall include the power to make Rules
retrospectively with effect from a date on or after the President grants his assent to the Bill. No Rule shall have a retrospective effect if it prejudicially affects the interests of any
person to whom such Rule may be applicable.
SVAVLAMBAN SchemeFinancial inclusion under PMJDY
Introduced in 2010 for unorganised sector workers to have a pension fund.
35 lakh subscribers with 1500 crore rupees.
Need
1. Majority in nonorganised sector
No old age pension benefits for them.
Structure
Central government gives Rs 1000 per person given that he/she contributes Rs 1000
ISSUE Uncertainity over governmemt's contribution as govt. said it would do so only till 201617.
Plus point
1.Low cost scheme with annual returns of 9.25 %.
Future
1.Awareness among people
2.Modification in process
KVIC Khadi and Village Industries Commission
1.Launched an initiative in 200506 named SFURTI (Structural and Financial Support for Regeneration of Technical Industries)
#cluster based scheme where improved equipments, designing, training, marketing etc are provided.
#101 clusters supported (khadi, village industries, coir)
2.Marketing Assistance Programme
Implemented by KVIC to inculcate modern techniques in MSMEs
3.PMEGP Pradhan Mantri Employment Guarantee Programme
Implemented by KVIC to provide jobs in rural sector. A way to shift people from agricultural activities.
Why Khadi?
1.Village economy
Handicrafts, weavers, craftsmen are poor in India since the british drained India of its wealth.
Gandhiji always wanted their emancipation.
Khadi is sustainable to economy, society, and environment. By wearing khadi, they are benefitted.
2.Cultural identity
Indian culture has maintained itself over the ages. Artisans, craftsmen etc belong to the real culture imbibed in our nation.
They have to work as underskilled labour because globalisation, S&T has taken their livelihood.
3.Environment friendly
All products are recyclable and environment friendly.
To write in detailThe Government aims to increase the growth and performance of the MSME sector by implementing various schemes / programmes. The major schemes / programmes
are Prime Minister’s Employment Generation Programme, National Manufacturing Competitiveness Programme, Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Cluster
Development Programme, Market Development Assistance Scheme, and Vendor Development Programme for Ancillarisation
4. Understanding innovation Indian national survey with social focus on MSMEs
It is being taken under STICK (Science and Technology Innovation and Creation of Knowledge) programme of DoS&T, GoI.

Skill Development
Huge D.D but unskilled. Only 2% of population with developed skills in 2004.
In BRICS India lags behind
MSME and National Skill Development Corporation with Wadhwani Foundation's programmes like National Entrepreneurship network and Skill Development Network.
TVET (Technical and Vocational and Educational Training) has been driven by government alone.
China has vocational training in schools where 1 year out of 3 years is practical training.
NSDC
Eleventh 5 year Plan (20122017) had a section on skill development for the first time.
National Skill Development Corporation (NSDC) was setup in 2010 with 51% shareholding from Assocham, Ficci, CII
37 Sector Specific Councils with >1,000 VTPs (Vocational Training Providers), 235 training partners with 3611 training centres spread across 450 plus districts across country.
NSDC havs been able to train 5.5 million people of which 61 % have been placed.
Quality of training is poor and system is limited
NSDCB
National Skill Development Coordination Board was setup for better coordination between ministries running skill development programmes
Others
NYKS (Nehru Yuva Kendra Sangathan)
YES (Youth Employability Skill)
Causes
1.Lack of funds
Making loans easily available to entrepreneurs, fast approval of projects.
Setting up of National Fund for Organised Sector as recommended by National Commission for Unorganised Sector in 2007.
2.Lack of ministry, district coordination
20 ministries and 35 state/UT run skill programmes which creates confusion and inefficiency.
There is a need of integrated skills department.
3.Private sector unaware
Industries can run apprenticeship programmes and train, certify individuals.

4.Lack of manpower and quality
This raises cost for them. Skilled personnel are in shortage, less trained,
ITIs, VTPs are not giving practical training.
5.Market demand based training
Currently skill programmes focus on IT services, BPO etc
In recent future with Make in India construction and manufacturing will increase. Hence government should focus on these areas.
6.Payment issues
Industries know that skills imparted to students are more theoretical as linkage between them and training providers is poor
Hence, they offer less salaries which do not promote students to opt for training.
Delayed payments of salaries by industries as regulation by government is poor also causes problems.
7.Education vs skills
Mc Kinsey report says that only 54% of the youth believe that postsecondary education improved their employment opportunities.
56% of students drop out between high school and higher education.; 53% of Indian employers find skill shortage as one of the prime reasons for entry level vacancies; vocational
education after senior secondary but students dream of higher education at that level; need to introduce vocational education in secondary education.
Lack of diploma colleges.
8.Support for disadvantaged
Disabled, women, children need to be rescued; skill development and securing jobs
Very low female participation rate; 22.5% in rural areas across all jobs
Inclusion of SC/ ST/OBCs and self employment for them
Way Ahead
1.One integrated managing and regulatory authority for skill development.
Universal Standards for certifying skill trained.
2.Linking industries
NITTTR (National Institutes of Technical Teacher Training and Research), needs to enroll others and provide trainers. Industries can get in partnership with it. Linkage with
industries with classification of courses according to salaries and course.
CSR initiatives from Cocoa cola, NTPC, Essar, PowerGrid in financing, infrastructure, qualification framework and occupational standards.
Recognition of Prior Learning Scheme implemented in 5 states of Odisha, Haryana, Telangana, Delhi, Chattisgarh.
At present, only in construction sites with more than 200 workers.
To recognise traditional works passed on to generations by giving them certificates.
Employers must continuously change their processes and skills upgradation; work should become school; technology and innovation is required.
Trade unions, employee, employer organisations working in coordination demanding skill development.
IT companies employing engineering graduates of civil, mechanical and electrical after proper training; skill centres opened by IT giants
Wipro's Newton Cradle; Infosys upskilling internally and promoting employees
Tata Swachh, the lowcost bacterial/virus water purifier through rice husk ash and nanosilver technology (only 27 paise per litre, gravitydriven).
According to the World Economic Forum, 2008, India ranks 43 in terms of industryacademia interaction, compared with China (23), Japan (21), South Korea (12) and the US
(1)
There is hidden power if universities reengineer themselves to meet national grand challenges like Swachh Bharat, Make in India and Digital India.
Atal Innovation Mission and like need project managers for meeting the needs of nation and individuals.
3.Certification, extra grades, campus placement.
4.Trained teachers, market based courses etc
5.School based
CBSE runs a vocational program from class 9th since 2014. It needs trained personnel.
Central Institute of Vocational Education of NCERT in Bhopal should come up with a secondary school curriculum.
Improving school infrastructure
Preventing dropouts
Coordination between NCVTs and SCVTs
6.ITIs, Polytechnics overhaul
Efficient administration, internship in industries is needed.
7. National Skills Qualification framework under National Occupation Standards prepared by SSCs should bring industries, trainers, workers on board and prepare a curriculum.
8.JETS (JobsEnterprisesTechnologySkills) Ecosystem
Solution lies in persuading youth to become entrepreneurs rather than job seekers.
HHH (Head Held High) surveyed rural India and found widespread dissemination of technology in villages. Ecommerce is gaining place and internet user base is including them.
Internet Santhe to promote and provide education on use of tech organised in 10 taluks across six districts in Karnataka.
Rurban Bridge through which haealth and education and other necessary services are brought to villages. It generated entrepreneurship and formed new markets
Technology can be a disrupter as well as a facilitator in employing youth and reaping of Demographic Dividend.
9.Targeted interventions
LWE, NAxalite areas, NE, J&K need special intervention through schemes like Himayat, Nai Roshini, Udaan, Step UP, Parvas etc
10.Skill classification
Not a topbottom approach but classifying skills as per demand of youth; diversification of jobs
11.Tribal youth inclusion
12.Women safety in jobs; creches in office; maternity leave with facilities
13.Better dissemination of information
14.Funding according to performance of institutes rather than adhoc.
Youth in India should be able to handle 4Cs communication, collaboration, creativity and critical thinking.
MUDRA (Micro Units Development Refinance Agency) banks
Budget 1516 alloted Rs 20,000 crores for MUDRA to fund micro finance institutions financing micro enterprises in India
Credit guarantee corpus of Rs 3000 crores
This will provide credit to informal sectors.
71,000 crores allotted further with 2000 crore disbursed as loans.
Why?
Schemes defunct; not reaching poor
MSMEs, SC/ST entrepreneurs needed money to expand business
Unskilled population in majority; selfemployment promotion
Function and Assessment
Shishu, Tarun, Kishor types
Even 10 lakhs loan hassle free; liberal KYC norms; no collateral or guarantor
Widespread awareness; public welfare at peak
Udaan Scheme
Rangarajan committee suggested for emplying youth from J&K
Udaan calls corporates to J&K and help them choose graduates, post graduates for employment.
PMKVY (Pradhan Mantri Kaushal Vikash yojana)
Under Ministry of Skill Development and Entrepreneurship; Implemented through NSDC
Skill development for 24 lakh people, 14 lakh youths
Outlay of Rs 1500 crores
Structure
1.Providing soft skills, personal grooming, personal cleanliness, swachta consciousness
2.Assessment about programmes at regular intervals
3.Grievance redressal system and online citizen portal
4.Skill Development Management System (SDMS) will be setup to verify training centre standards.
5,Improved curricula, better pedagogy, trained teachers would be provided.
6.Rs 150 crores for NE region.
7.Certification and training under Recognition of Prior Learning
Objectives
Increase productivity of youth
Monetary awards
Reward candidates with average of Rs 8,000 per candidate
Standardisation and certification; Registry of skills
Enable and mobilise youth for skill training
Progress yet
410 Kaushal Vikas Shivirs, across 300 constituencies in the country and the scheme has seen 847445 candidates enrol into the courses and take benefit from it.
The challenge is big in terms its goal of skilling 24 lakh Indian youth and making them more efficient and industry relevant through skill based training.
Private players can spend CSR money as guided by NSDC in specific sectors or CAPEX building infrastructure
More ITIs to open; direct industry linkage; Maruti Suzuki In Institutional Skill Councils/committees
National Web Portal for Apprenticeship Training
Sashakt Yuva, Samarth Bharat
Door step delivery of service
Security for women at workplace, grievance redressal through internal complaints committee
Multilingual platform with Marathi, Bengali, Tamil and Hindi
Skills for disabled scheme
Target 2.2 mn people in 7 years
Scheme for
Problems
1.Inclusion of all
More extensive coverage
2.Quality
Not checked
3.Low employability of skills learnt
4.Homogeneity
NGOS should work in a coherent, qualitative system acceptable for jobs
5.CSR money
Duplication and not properly managed
6.Channelised and proper utilisation
7.Not accessible to remote rural areas
NGOS to open centres
MOOC Massive Open Online Courses
8.Connection with industry
Apprehensions in industry to hire these people
Equal wages, equality in work
Low attrition rate, more serious in working
Industry realises that it is not charity
Psychological boost to disabled occurs.
Sector skill council strengthening
Monitoring
9.Occupational standard
Certain standards of any occupation which skill development programmes must meet
10.Financial support
SIPDA (Scheme for Implementation of Persons with disabilities)Funds for skill development
NHFDC (National Handicapped Financial Development Corporation)
Provide finance, loans to disabled to setup small industrial units, buy auto rickshaws etc
Person with disabilities 3% reservation ingovernment jobs.
MoU between KVIC and RSETI (Rural SelfEmployment Training Institute)
to provide training and employment to village youth.
It has been linked with PMEGP.
Reservation in private institutions plausible?
Deen Dayal Upadhyaya Grameen Kaushal Yojana
Launched under MoRD for inclusive growth
55 million people in 1535 age group, 57 million world labor demand by 2020
Features
1.Enable poor and marginal to access benefits
Skill training free of cost to poor
2.Inclusive growth
50% SC/ST, Minority 15%, women 33%
3.Post placement support, guaranteed placement fro 75% trained candidates
4.Improving quality of trained service providers by building partnerships.
5.Regional focus like HIMAYAT in J&K, Roshni in NE
6.Inspection by geotagged, time stamped videos.
NATIONAL MANUFACTURING POLICY
To create 100 million jobs and contribute 25% to country's GDP in a decade.
Creation of NMIZ or National Manufacturing Investment Zones
Clean energy with minimum size of 5000 hectares on nonagricultural land
Flexibility in labour market
Sunset industries for an easy exit mechanism
Financial and development initiatives to small and medium enterprises
Increase manufacturing share to 25%
Greater focus on SMEs, labour intensive sectors for absorbing unskilled labour like food processing, leather, footwear, textiles etc
SWOT analysis of schemes is necessary; Strength, Weakness, Opportunity, Threat
Piecemealapproach; target based approach
SWACHH BHARAT YOJNA
India has 750 million people who defecate in open as compared to 2.5 billion people in the world.
1 in 10 children die in India due to poor sanitation
Apart from, building toilets behavioural change is needed. Information about diseases, proper sanitation, gender equality are also important.
1.5 bn $ loan by World bank to India for Swachh Bharat
The BMC study revealed that 58 per cent of community toilets in slums have no electricity.
UNICEF norms
one toilet for 25 girls and one for 80 boys
Union Government's 1:80 for boys and 1:40 for girls
Women looses dignity in absence of toilets
Loopholes
1.Change in mindset
Cleanliness comes from the thoughts of people. It is better to create awareness in them for cleanliness, sanitation, hygiene alongwith building toilets.
For ex toilets built in villages are not used and instead made storage rooms.
Inspection in villages etc and counselling and penalising defaulters is necessary.
2.Role of civic bodies
Citizens can keep their surroundings clean. But, population is very high and waste generated in urban areas are not managed easily. Role of municipalities, civic bodies are important for solid waste
management etc.
3.Trickle effect
Education, health care, employment etc will clean India as standard of living grows.
4.Equality for all
Ban on manual scavenging is already there but states have hardly implemented the legislation.
People think it a stigma in India to clean waste and believe it to be work of low class. Awareness is needed.
CSR Corporate and Social Responsibility
Companies Act, 2013 Schedule VII, Section 135
#Mandatory for industries with annual turnover of Rs1000 crores or net profit of Rs 5 crores or net value of Rs 500 crores to invest 2 % of the average of three year profits in CSR
activities.
# Companies can work with NGOs, give donations to government or work themselves for emancipating the community.; Partnership Schools where NGOs manage school education;
efficiency increases; PPP can be promoted by establishing a national fund and pooling CSR funds into it for a proper use
#Such fund attracts top school quality operators from India and abroad; they will provide a framework for NGOs and governments to emulate
#Government has specified activities which can be considered under CSR. For ex renewable energy but not Marathons etc
#1200 companies listed on BSE spent 1 billion$ in 201415
#<Maharashtra and Gujarat saw most of CSR
# Not a substitute for government intervention; only an agent of transformation
Five areas most invested
1.Education;
Quality Improvement Programs being run in Haryana's 15,000 plus government primary schools; using MIS to deliver actionable data to teachers on their performance as well as of students; helps in
direct intervention and improvement; CSR funds can support such initiatives
2.Environment
3.Community welfare
4.Rural development
5.Healthcare
Ex TCS, Bharti airtel pledged Rs 200 crores in Swachh Bharat Yojna.
L&T for 5,000 toilets, CII for 10,000 toilets etc.
Issues
1.Formality or responsibility; Nation Building act
Companies think CSR as philanthropy but it is their responsibility to the people whose resources are used.
CSR becomes a onetime financial grant rather than capacity building of population.
For exTATA in Jamshedpur transformed the whole city.
For ex Coal India does health camps etc but mines leave big craters and pollute the whole environment.
Robbing Peter to pay Paul.
2.Corporate sector reforms
Allotting jobs in the industry to memebers of vulnerable population or people affected from the proposed project as CSR.
Donations to Voluntary organizations to take care of the needs of the people.
Appointing special institutions made of corporates or NGOs to look for development activities which are not effective when guided by inexperienced corporates.
Many companies reluctant and donot have CSR committee with 3 company directors
94% BSE listed companies have CSR policy in place
97% had CSR committee
3.Informal sector
93% of workforce is in informal sector and is out of scope of CSR
4.Fund crunch
Profits are not uniform always; important projects may be stopped midway.
Government mandate or budgetary support is needed; create an enabling environment.
5.Uncoordinated activities
Rather than taking up large projects it is better to take small projects at a larger scale for effective coordination.
Swachh Bharat Abhiyans; companies should collaborate for widereaching affects; share knowledge; enhance skills
6.Lack of clarity
Understanding a fairly complex legislation takes time
Lack of knowledge of right projects
7. Assuring donors that money is being used judiciously; if not why; presenting valid reports to government and corporate boards for evaluation.
8.Including Civil Society Organisations in CSR
Maruti Suzuki's tieup with Sulabh International for the construction of individual household toilets are perfect
examples of symbiotic relation between CSOs and companies.
Also to check that they do not enter into liaison with companies, violate laws, erode faith of people on them
Kudumbshree
Started in 1995 as a Womenoriented welfare scheme in Kerala for poverty reduction.
Thrift and credit society mobilised 1 crore as savings.
44 lacs women employed
Raises social status of women; decreased domestic violence, abuses.
Financial credit to collectives rather than individuals have not solved poverty but affected women socially.
In groups they discuss their issues, impart each other skills, nourish children; alleviation.
Kilkari
Audio recording disseminated as messages to pregnant females on their mobile.
Mobile Academy
Will be launched in August, 2015
To ASHAs and ANMs on child and women health.
MCTS
Mother and Child Tracking System, 2010
Pregnant women and children, ASHA, ANMs included for antenatal and post natal services.
Appropriate health messages are sent to mothers according to gestation period.
Deen Dayal Upadhyaya Grameen Kaushalya Yojana
Enable Poor and Marginalized to Access Benefits
Demand led skill training at no cost to the rural poor
Inclusive Program Design
Mandatory coverage of socially disadvantaged groups (SC/ST 50%; Minority 15%; Women 33%)
Shifting Emphasis from Training to Career Progression
Pioneers in providing incentives for job retention, career progression and foreign placements
Greater Support for Placed Candidates
Postplacement support, migration support and alumni network
Proactive Approach to Build Placement Partnerships
Guaranteed Placement for at least 75% trained candidates
Enhancing the Capacity of Implementation Partners
Nurturing new training service providers and developing their skills
Regional Focus
Greater emphasis on projects for poor rural youth in Jammu and Kashmir (HIMAYAT), the NorthEast region and 27 LeftWing Extremist (LWE) districts (ROSHINI)
Standardsled Delivery
All program activities are subject to Standard Operating Procedures that are not open to interpretation by local inspectors. All inspections are supported by geotagged, time stamped videos/photographs
National Policy for Early Childhood Care and Education (ECCE)
Adopted in November, 2013.
Serves children under 6 years of age.
Need to make it in accordance with international standards
Tamil Nadu's Draft Code of Regulations for Play schools of the Department of School Education flouts ECCE norms.WELFARE
APJ Abdul Kalam Amrut Ahar yojana
Laid by Maharshtra government
To give free meals to pregnant women in third trimester to three months after delivery
4 membered committee comprising of tribal women, pregnant or lactating mother under Gram Panchayat
Will bypass bureaucratic hold; decentralisation in practice
Village Grain Banks Scheme
Since 2004, earlier implemented by Ministry of Tribal Affairs; Now by Department of Food and Public Distribution
Grain banks are setup at drought prone areas; calamity prone areas, hilly, tribal areas and loans in form of grains are given to people in food scarcity
BPL/AAY households are identified by state governments and groups formed at banks allocate them food accordingly
Repayment is also accordingly managed.
ESIC
The ESI Act applies to factories with 10 or more workers, and employees drawing salary up to Rs. 15,000 per month are entitled to medical benefits.
The benefits covered under ESI Act include incidents of sickness, maternity, disability and death due to injury during work and other medical care benefits to insured persons and their
families.
At present, all the State governments bear 1/8th share of expenditure on medical benefits provided under the ESIC Act and the rest is borne by the Centre.
ESI Corporation is the custodian of the funds.
ESI Scheme is financed by contribution from both employers and employees. At present, covered workers contribute 1.75 per cent of their wages and the employers contribute 4.75
per cent of the wages, payable to the worker, to the ESI corpus every month.
The ESIC scheme is implemented in all the States across the country except Arunachal Pradesh, Mizoram, Manipur and Andaman and Nicobar Island.
State governments like Delhi do not disburse funds timely causing huge arrears.
Prime Minister Ujjwala Yojana
Free LPG connections to women from BPL households in thenext three years
Rs 8000 crore; Rs 1600 financial help for each BPL households; identification in consultation with respective state/UT governments
Why?
Biomass burning related health concerns; smoked chullahs causing cancer
Quality of life improves; women neglected in families
Issues
Most deprived households as through survey by CEEW or Council on Energy, Environment and Water do not use LPG because of inability to pay
Rural households provided LPG by Rajiv Gandhi Gramin LPG Vitaran Yojana or RGGLVY; collect cylinder from a dealer; located far away ; residential proofs which is tough for slum
dwellers to give; innovation in distribution is required
refilling cylinder capacity is quite poor for deprived; hence government has to look for it by providing small cylinders 25 kg at subsidised rates
Distribution at petrol pumps will also be helpful
DBT of subsidies necessitates nearby ATM for withdrawal otherwise it will be of little sue
way forward
creating awareness among for heath among rural families
While formulating his General Theory of Relativity, Einstein proposed that gravitational attraction was a result of the bending of the fabric of spacetime by the equivalent of a heavy
object. This is very often elucidated by an animation in which a large ball is placed on a rubber sheet, creating a curvature in the sheet.
When a smaller ball is rolled on the rubber sheet, it rotates around the large ball along the curvature for a while before falling into it. Einstein said the sun, the earth and all other
bodies formed similar curvatures around them, and this was the reason for smaller objects getting pulled towards them. But since the earth, sun and everything else are also moving,
the curvature around them moves too. This creates ripples in spacetime, just like a moving boat in water creates ripples. It is these ripples that Einstein called gravitational
waves
The discovery of gravitational waves would mean that now all four fundamental forces of nature — electromagnetic, weak and strong nuclear forces being the other three —
would be associated with wavelike properties. It would, therefore, be a significant step forward in the effort to unify the quantum theory, which operates at subatomic levels, and
gravitational theory, which operates at cosmic scales, into one single theory of nature. Not only will they be able to investigate black holes and strange objects known as
neutron stars (giant suns that have collapsed to the size of cities), they should also be able to "look" much deeper into the Universe and thus farther back in time. It may even
be possible eventually to sense the moment of the Big Bang.
A worldwide experiment called LIGO (Laser Interferometer GravitationalWave Observatory, reactors at Lousiana and Washington DC) has been searching for such waves,
without success, for nearly a quarter century. LIGO is a joint project between scientists at MIT, Caltech, and many other colleges and universities. LIGO fires lasers into long, L
shaped tunnels; the waves disturb the light
Scientists involved in the project and the analysis of the data forgravitationalwave astronomy are organised by the LIGO Scientific Collaboration which includes more than 900
scientists worldwide. LIGO is funded by the National Science Foundation (NSF), with important contributions from the UK Science and Technology Facilities Council, the Max Planck
Society of Germany, and the Australian Research Council
Endosulfan
An offpatent organochlorine insecticide and acaricide that is being phased out globally
A global ban on the manufacture and use of endosulfan was negotiated under the Stockholm Convention in April 2012
Victims at Kasargode, Palakkad Tamil Nadu, Kerala
Mukti Project
Joint prosthesis camps organised by Department of Biomedical Engineering at the University of Strathclyde, UK
Supporting amputees and polio victims
CIRB Central Institute for Research on Buffalo, Hisar, Haryana clones Buffalo Gaurav
Scatsat1 by ISRO for predicting cyclones
Will replace OceanSat2 which stopped functioning in 2014
Scatterometer is a microwave radar sensor. It measures the scattering effect produced while scanning the surface of the Earth from an aircraft or a satellite. It will measure the
direction and speed of winds over the seas and oceans. The satellite has been designed to withstand multiple system failures, unlike the last one.
It is a polar orbiting satellite that will take two days to cover the globe. The data will be used by NASA, European Organisation for the Exploitation of Meteorological Satellites, and
National Oceanic and Atmospheric Administration as well.
Designed at SAC or Space Applications Centre, Ahmedabad is one of the major centres of ISRO and it deals with disciplines like design and development of payloads, societal
applications, capacity building and space sciences, etc
Transmission electron micrographs of cadmium telluride nanoparticles, seen here using electron beams instead of visible light, which sparks chemical reactions in them. Fashioned in
water from semiconductor material—similar to that used in solar panels or mobile phones—the particles, or ‘quantum dots’, as their inventors call them, destroyed 92% of drugresistant
bacteria in a laboratory trial
Cloud Aerosol Interaction And Precipitation Enhancement Experiment (CAIPEEX)
Rain manipulated by man
New device that can use energy made by bacteria when it expands and contracts; spores of bacteria expand in moisture filled air and contracts in dry air.
Solitary bee; 6 mm long; Braunsapis Chandrai; black in colour; punctured legs discovered
Sunderbans mangrove forests; bee pollination
Earth Hour
60 minute annual campaign organised by conservation group WWF
Switch off lights from 8:30 pm for 1 hour
In 10th year
Pilot Whales 73 died on a beach in Tamil nadu.
Highly sensitive to noise pollution caused by manmade sounds that interferes with echolocation
Underwater earthquakes, sonars, changes in earth's magnetic field make them disoriented.
They are rescued by covered towels, pouring of water over whales to keep them cool, Zinc oxide is placed around blowhole to keep airways clear, tents to provide protection from sun.
Optogenetics by Karl Disseroth
neurons in brain are genetically engineered toe express a lightsensitive protein that can change electric properties
Checking neurological networks that regulate behaviour and are often disturbed in Schizophrenia or autism
Pritzker Prize
Nobel Prize for Arcchitecture
Received by Zada Hadid, IraqiBritish architect in 2004.
Indian Science Congress
Indian Science Congress Association (ISCA) is a premier scientific organisation of India with headquarters at Kolkata, West Bengal, started in the year 1914 in Kolkata and it meets
annually in the first week of January. It has a membership of more than 30,000 scientists.
Theme "Science and Technology for Indigenous Development in India"
103rd session in Mysuru
Harvard Business School professor Clayton M. Christensen coined the term disruptive technology. In his 1997 bestselling book, "The Innovator's Dilemma," Christensen
separates new technology into two categories: sustaining and disruptive.
Sustaining technology relies on incremental improvements to an already established technology.
Disruptive technology lacks refinement, often has performance problems because it is new, appeals to a limited audience, and may not yet have a proven practical application. For
example, typewriter replaced by Computer
LiFi Technology
Light Fidelity; using visual light to transmit data
Using LEDs, street lights to transmit data; it requires an adapter at both ends which can convert light into electrical energy and vice versa
High data capability, High speed in terabytes, High affordability is needed; Last quality requires wider usage like wifi which was costly earlier due to less use
Beneficial for India where broadband connectivity is an issue; but it will require more research and investment; phones can also be charged wireless
Green technology; no pollution
New class of frogs in NE discovered
Genus Frankixalus with large eyes, living inside forest canopies and bamboo slits
Olive Ridley turtles in Odisha, Gahirmatha, mouth of River Devi and Rushikulya on the Odisha coast for annual nesting
Being killed by trawlers who tresspass in protected rather banned waters during the season of breeding of turtles in winters in India
6 months ban on beaches and nearby waters fishing by Odisha government
Krishna Mystus
grows about 2 metres long; 70 kg; biggest fresh water fish
Found in Krishna; the king of riverine fishes
India joins select club to build LNG ships
Cochin Shipyard has received certification to build LNGtransporting ships for any client worldwide. In this regard, Cochin Shipyard has
signed an agreement with French technology company Gaztransport & Technigaz (GTT) for its maiden foray into liquefied natural gas
(LNG) shipbuilding. This makes Cochin Shipyard the first shipyard in India to get the nod, joining the league of South Korea, Japan and
China.
This opens a new chapter in shipbuilding technology in India and marks a big step for Make in India.
GTT is a leader in design engineering and provides membranetype containment systems for the transportation and storage of LNG. It holds patented technology for LNG ships. It
gives designs, engineering and supervision for building of the cryogenic carriers that transport natural gas frozen in its liquid form (LNG).
This move also enables Cochin Shipyard to qualify to bid for the GAIL tender. Since Indian shipyards do not have LNG technology, a clause in the GAIL tender sought performance
guarantee from shipbuilders.
The most critical part of an LNG ship is its cryogenic containment and handling system as the LNG is carried at a temperature of 163
degrees. This requires foolproof cryogenic containment and safe handling and transfer systems
Green Algal Bloom
In Arabian Sea exceeding depth of 2000 metres
due to Noctulica Scintillans; non toxic; occurs during winterspring
Harmful algal bloom as spread can lead to depletion of oxygen; on decomposition of high biomass release of ammonia
Remote sensing technology to identify them; no underwater probe required
New species of frogs discovered
Ghatilaxus magnus biggest known tree frog
Rarochestes Flaviventris Bush frog rediscovered after 1882
Amur falcons
weigh just 150 grams, cover 5, 600 kms, flying nonstop in five days from Mongolia, to arrive in Nagaland. (Pangti village, Doyang Lake, NagalandAF capital of world)
Amur falcons are the longest travelling raptors in the world and come to Doyang every year in millions. Until recently, Naga tribesmen used to hunt thousands of Amur falcons for
meat. But last year, after a vigorous campaign by wildlife activists, they pledged to protect the bird and since then, not a single bird has been hunted in the area.
Treating rubber wood
Developed by scientists at Wood Processing Division at IWST
A mix of organic plant extracts like pongamia, seed oil, cashew shell liquid, neem oil, acacia bark and leaves etc.
Susceptible to termite attack
Mud Banks
Occurrence of mud banks in a semi circular fashion in Alaphuzza, Kochi, kozikhode in Kerala.
Appears in monsoon and disappears in October.
Better fishing grounds; may be due to marine upwelling related to wind/water circulation
Primates
IUCN list of 25 most endangered primates compiled by Primate Specialist Group of IUCN's Species Survival Commission, Bristol Zoological Society, the International Primatological Society
and Conservation International
Madagascar has 5 species in list namely Lac Altaora bamboo lemur and Perrier's SifakaHainan Gibbon only 25 individuals left
Kashmir Grey Langur or Himalayan Gray Langur or Chamba Sacred Langur was listed as "critically endangered" in 2008 in Red list of IUCN
IUCN
IUCN was established in 1948. It was previously called the International Union for Protection of Nature (1948–1956) and the World Conservation Union (1990–2008). Its full
legal name is International Union for Conservation of Nature and Natural Resources .
The IUCN Species Survival Commission (SSC) is a sciencebased network of more than 10,000 volunteer experts from almost every country of the world, all working together towards
achieving the vision of, "A just world that values and conserves nature through positive action to reduce the loss of diversity of life on earth".
Most members are deployed in more than 140 Specialist Groups, Red List Authorities, Task Forces and SubCommittees. Some groups address conservation issues related to particular
groups of plants, fungi or animals while others focus on topical issues, such as reintroduction of species into former habitats or wildlife health.
Members include:
researchers
government officials
wildlife veterinarians
zoo and botanical institute employees
marine biologists
protected area managers
experts on plants, birds, mammals, fish, amphibians, reptiles, and invertebrates.
Working in close association with IUCN’s Global Species Programme, SSC’s major role is to provide information to IUCN on biodiversity conservation, the inherent value of species, their role
in ecosystem health and functioning, the provision of ecosystem services, and their support to human livelihoods. This information is fed into The IUCN Red List of Threatened Species.
SSC members also provide scientific advice to conservation organisations, government agencies and other IUCN members, and support the implementation of multilateral environmental
agreements.
The Policies, Guidelines & Standards produced by the SSC provide guidance to specialized conservation projects and initiatives, such as reintroducing animals into their former ranges,
handling confiscated specimens, and halting the spread of invasive species.
The International Union for Conservation of Nature (IUCN) is an international organization working in the field of nature conservation and sustainable use of natural
resources. It is involved in data gathering and analysis, research, field projects, advocacy, lobbying and education. IUCN's mission is to "influence, encourage and assist
societies throughout the world to conserve nature and to ensure that any use of natural resources is equitable and ecologically sustainable."
Over the past decades, IUCN had widened its focus beyond conservation ecology and now incorporates issues related to gender equality, poverty alleviation and
sustainable business in its projects. Unlike other international NGOs, IUCN does not itself aim to mobilize the public in support of nature conservation. It tries to influence the
actions of governments, business and other stakeholders by providing information and advice, and through lobbying and partnerships.
IUCN has a membership of over 1200 governmental and nongovernmental organizations. Some 11,000 scientists and experts participate in the work of IUCN commissions
on a voluntary basis. It employs approximately 1000 fulltime staff in more than 60 countries. Its headquarters are in Gland, Switzerland.[2]
IUCN has observer and consultative status at the United Nations, and plays a role in the implementation of several international conventions on nature conservation and
biodiversity. It was involved in establishing the World Wide Fund for Nature and the World Conservation Monitoring Centre.
Biodegradable plastics take 5 years to degrade in oceans and pollute it till then.
Amnesty International
A nonprofit organisation for human rights globally.
Archenius Principle A substance must have a certain temperature before burning
Le Chatlier's Principle If reactants have more weight than products then reaction is favorable and vice versa.
Sunderbans becoming 21st district of W.B
104 islands archipelago spread over 10,000 km2
62 Tigers
600 species of wildlife and 300 plants
UNESCO world heritage site
Reef 2050 Sustainable development plan
Protecting Great barrier reef affected by dredging, farm runoff, starfish
BIOLOGICS
Genetically engineered proteins derived from human genes.
BIOSIMILARS
Biologic medical products whose active drug substance is made by a living organism or is derived from one.
DHANUSH
Upgraded version of Swedish 155 mm 45 calibre BOFORS gun
Maximum effective range of 38 km in salvo mode compared to 39 calibre, 27 km range of original guns.
Astronomers have discovered a new secret planetary system which has 3 superEarths and one outer giant planet by using HARPSN spectrograph, a specially designed high
precision radialvelocity instrument built by an international consortium. It has been installed at the Telescopio Nazionale Galileo on the La Palma Island in Spain.
ASTROSAT
Indian observatory in space
Insights on Xrays, ultraviolet rays coming from celestial bodies which are filtered by earth's atmosphere.
Birth of high energy emitting black holes, neutron stars, origin of galaxies etc
Astrosat carries four Xray payloads, one UV telescope and a charge particle monitor. Apart from ISRO four other Indian institutions – Tata Institute of Fundamental Research,
Indian Institute of Astrophysics, InterUniversity Centre for Astronomy and Astrophysics and Raman Research Institute were involved in the payload development.
This would not only provide recognition but also spur research and innovation.
The scientific objectives of ASTROSAT mission are:
To understand high energy processes in binary star systems containing neutron stars and black holes
Estimate magnetic fields of neutron stars
Study star birth regions and high energy processes in star systems lying beyond our galaxy
Detect new briefly bright Xray sources in the sky
Perform a limited deep field survey of the Universe in the Ultraviolet region
Aerogel
Made of gold salt and milk proteins
20 carat gold; lighter than milk foam
Absorb oil spills
Green Highways
6,000 crores project for planting trees across national highways
Will generate employment, help environment and benefit local communities.
KALAVARI
Indian navy fleet of 6 submarines called Kalavari (Project 75)
Stealth capability, built indigenously, underwater reloading of weapons, Weapons Launching Tubes, compatible in tropics.
Minor Planet
Not a comet or a dominant planet
Vishyanand 4358 named after Vishwanathan Anand
International Astronomical Union names if planet is unnamed for 10 years.
Dhanush
Surface to surface missile like Prithvi
DRDO developed with range of 350 km with load of 1,000 kg
Uses liquid propellant
Not intercontinental
Science Express
Under Ministry of Railways, S&T, EF &CC
Climate change as theme
Aakash
Air defense missile system
Totally indigenous developed by DRDO in collaboration with others
DRISHTI
Indigenous visibility measuring system established at IGI airport, New Delhi.
Developed by CSIR National Aeronautics Laboratory
Nag Missile
3rd generation fire and forget antitank missile developed by DRDO
TTS or Thermal Target System was used for targeting
It has a range of 4 km and uses imaginginfrared seeker
Using HEAT or High explosive antitank warhead, it is capable of destroying modern tanks with armoured protection by nullifying their ERA or Explosive Reactive Armour
Maitri
DRDO made surface to air short range missile.
Being developed in collaboration with French
Antiradiation Missile ARM
To target radars and communication networks of enemies
air to surface tactical missile being developed by DRDOs DRDL
can be mounted in tejas, sukhoi (Su30)
Dual pulse propulsion system
Only few countries like US, Germany, have it
Scramble for melting Arctic
8 countries of Arctic Council namely Canada, USA, Russia, Norway, Denmark, Sweden, Iceland, Finland scrambling for share in Arctic to exploit its rich natural resources
and unique geography
Billions of crude oil in Arctic circle. USA in Alaska has drilled wells in 1960s in the wake of cold war but efforts were frozen after USSR
broke up. Rosneft, Gazprom of Russia in oil exploration. Oil blocks are being sold by Arctic countries.
Effects
Biodiversity loss
Oil spills devastating
Change in water level inundating low lying araeas.
Permafrost melt will release trapped CO2 which will increase GW
Benefits
New route from Northwest and Northeast connecting Pacific and Atlantic which will bypass troubled waters of western Asia and piracy prone South China sea ans South Asian waters.
More fossil fuel to feed human population
India has a observatory in Arctic called HIMADRI. It can benefit through Svalbard treaty signed when India was a commonwealth member.
It gives India right to explore Arctic circle for resources. However, India is too poor to reap the benefits as compare to China.
Nikshay
Web based monitoring of RNTCP
Cryogenic Engine CE 2.0
CUSP by ISRO
Low temperatures below minus 150 degrees celsius or 240 degrees celsius
Fuel and oxidiser in liquid state
Put satellites with heavy payload
Hydrogen, Oxygen in liquid compressed state
Push GSLV
Commercial purposes like launching foreign satellites.
Hospalite
Mixture of oxides of manganese, copper, cobalt and silver
Converts Carbon monoxide into carbon dioxide.
Thermal Plasma Technology
Used for disposing solid waste as incineration, land fills create problems
Inorganic waste is converted into a mass
Organic wastes vaporise, pyrolyse into flue gases namely H2, CO and lower hydrocarbon gases.
Environmental Isotopes
Used in water management to check contamination of groundwater, causes of pollution
Hydrological estimation, measure salinity, longterm changes in ground water
Eutelsat's, ABS Satellite
Uses electric propulsion system rather than chemical
Lightweight as electric propulsion keeps it in orbit.
AKRUTI (Advanced Knowledge of Rural Technology Implementation) Programme
Under CSR of BARC (Bhabha Atomic Research Center)
Safe drinking water measure, purifying water etc
Reuse Derived Fuel
Developed by BARC
Obtained from processing Municipal Solid Waste
As a substitute for coal energy
ASTRA
Beyond Visual Range (BVR) air to air missile, smallest
Developed by DRDO is 3.8 m tall, radar homing missile
MAN BOOKER INTERNATIONAL PRIZE
Given for works on fiction and not on a novel
Given in an interval of 2 years in contarst to Man BookerPrize for Fiction given annually
POLYGRAPH TEST
Measures breathing rate, pulse and galvanic skin response.
S.C made brain mapping, lie detector tests, narcoanalysis unconstitutional as they violate individual rights.
Information collected after voluntary consent can be used as an evidence under section 27 of the Evidence Act.
Revolution in digital world
OLEDS (Organic Light Emitting Diodes)
Quantum dots
pervoskite for solar ells, lighting and display
TMDs (Transition Metal Dichalcogenides)
Molybdenite
To be developed in ultrathin sheets for rechargeable batteries, supercapacitors and catalysts for photoelectrochemical hydrogen production
National Science Foundation CAREER $500,000 prize won by Gurpreet Singh for TMDs
Snow leopards
China's class A protected animals.
Found in Himalayan ranges of central and south Asia
At latitudes 3,0005,000 metres
Himachal Pradesh State Animal
REInvest 2015
An international meet in which countries have participated on PM's call of Make in India
Also India has ambitious projects in RE like 100,000 MW solar energy by 2020
Gyansetu
Internetbased real time ICT designed by Centre for Development of Telematics, a telecom R&D centre under GoI
To provide eservices to rural population of India.
1st World Ocean Science Congress
Ocean97% of earth
50% of oxygen
In Kerala
Sustainable fishing
Management of Indian ocean (under pressure of de oxygenation)
Food and Agricultural Organisation Report
Demand of fertilizers is going to surpass its supply.
Asia is largest consumer
SubSaharan Africa will show rise in demand of 3 major fertilizers in future i.e Nitrogen, Potash, Phosphate.
*Salim Ali's Himalayan Forest Thrush or Zoothera Salimali
*2 species in Coniferous (named after Salim Ali) and alpine tree limits of Arunachal Pradesh
Budget and STEAM (Science Technology Engineering Agriculture Medical)
S&T budget increased by modest 47%.
Budget 1516 allotted Rs 6,000 crores to Space programmes.
It cut 20% spending in health care with HIV programme cut by 30%.
Government put an excuse that funds are siphoned and help does not reach poor.
Why not improve health infrastructure than cutting funds and giving private players undue leverage.
NISRA (NASAISRO Synthetic Aperture Radar Mission)
50 crores allotted in the Budget
to codevelop and launch a dual frequency synthetic aperture radar satellite. The satellite will be the first radar imaging satellite to use dual frequency and it is planned to be used
for remote sensing to observe and understand natural processes of the Earth
Netneutrality; A Paternalistic approach
Recent cases
Airtel charging VoIP (Voice over Internet Protocol) services llike Skype.
Over the top services like Whats app, Vyber, Hike etc making SMS by telecom companies obsolete.
Internet.org now FREEBASICS by Facebook, Reliance to make some websites accessible free of cost.
ISPs warn of poor growth of infrastructure in view of lost revenue due to usurping of space by OTT.
Section 4 of Indian Telegraph Act talks about level playing field in internet and communications.
The beauty of internet is easy accessibility to everyone, anyone can upload or download data and express their views independently.
It promotes creativity among people who use it; students and professionals can benefit alot; an IT revolution as in the west like Silicon valley is in the offing.
1.Net neutralityTim Wu father of NN
All services on internet are neutral or at same level.
Using such measures like charging extra for skype is not wise
Still there is no legal framework regarding these services.
It will suppress entrepreneurship and promote monopoly in internet services.
Telcos clause is unsupported as these apps need more data usage which brings more income to telcos.
A number game for Facebook rather than an ethical matter for TRAI.
How can a corporate through money power influence a country's policies?
Earlier empires were based on the power of seas; today data ownership and control determine dominance and the silicon valley has no doubt colonised the world at present.
2.Need for laws
FCC (Federal communications Commission) of USA bringing laws for Netneutrality
TRAI working to sortout OTT services framework.
Noncharging of these services may persuade Airtel and others not to invest in network expansion in India.
DOT report on Net Neutrality
OTT services like Whats App, Skype to be registered or licensed as everyone has to work under the same law.
340 million people use internet; most of them through mobile phones; in reality penetration is 27 percent.
For
those opposing belong to the class of present internet base; target group is those who are not on internet.
a taste of internet; more demand from government for these services
Government can oversee for discrepancies in future
First apply then check; you killed the baby in fear of him becoming a bad man in future.
Way forward
Affordable services and easy accessibility; TRAI should regulate prices as in telecom sector
Stakeholder system of net control; moving from USA monopoly
Decreased rate of 2G services; allowing low end users benefits to use data services.
Only through competition in telecom sector prices became affordable; internet service will become affordable similarly through open competition and not through monopolistic
practices like Freebasics
Trai made the Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016.
The latest TRAI regulations state that:
(i) no service provider is allowed to enter into any agreement or contract that would result in discriminatory tariffs being charged to a consumer on the basis of content (data services),
(ii) such tariffs will only be permitted in closed electronic communications networks, which are networks where data is neither received nor transmitted over the internet,
(iii) a service provider may reduce tariff for accessing or providing emergency services,
(iv) in case of contravention of these regulations, the service provider may have to pay Rs 50,000 per day of contravention, subject to a maximum of Rs 50 lakh, etc.
Well intended to protect net neutrality
What about people who are still digitally excluded and with government provided internet not reaching to them soon?
Intranet services or closed network communications exempt; reliance can subsidise its private network for other offices; isn't it anticompetitive?
Other VPNs may get affected like medical services on net which follow differential pricing; more clear guidelines required.
About TRAI
TRAI was established on February 20, 1997 by an Act of Parliament to regulate telecom services and tariffs in India. Earlier regulation of telecom services and tariffs was overseen by
the Central Government.
TRAI's mission is to create and nurture conditions for growth of telecommunications in India to enable the country to have a leading role in the emerging global information
society.
One of its main objectives is to provide a fair and transparent environment that promotes a level playing field and facilitates fair competition in the market. TRAI regularly issues
orders and directions on various subjects such as tariffs, interconnections, quality of service, Direct To Home (DTH) services and mobile number portability
Amended in 2000 to establish TDSAT for appeals against decisions of TRAI
CarbFix
New method to contain carbon load in atmosphere; carbon sequestration
Industrial CO2 emmissions will be mixed with water, compressed and put in deep rocks (volcanic)
where it will combine with basalt to form minerals and get trapped indefinitely.
National science Film Festival, Lucknow, Feb, 2015
films on science, technology, health screened
National Beaver Award
Ibogaine substituting Morphine
From a plant in Africa
No sideeffects
Work as deaddiction drug.
Gas flame is limited to stove and does not reach inside gas cylinder
LPG has high density, compressed to 15kg/cm2 which is 15 times atmospheric pressure (so on releasing knob gas flows from high to low atm. pressure)
needs oxygen and sufficient temperature to burn, without which it is just a gas. O2 is absent inside cylinder.
combustion products CO2, water are of low density and keeps flame going upwards away from the burner.
Venturi effect, a vent midway enroute in stove allows mixture of O2 and LPG. Air cannot pass through that vent due to suction pressure of low density gases at the flame.
Retinopathy of prematurity RoP
*Eyes start developing in fetus around 16 weeks. Complete growth till 45 weeks past birth.
Blood vessels of retina supply nutrients for proper development of Retina. In Premature babies this growth is incomplete which results in retinal detachment if not treated within first
30 days.
Prevalence in India is around 20%
TEAR GAS
Cyanocarbon 2 chlorbenzalmanolonitrile CS most widely used, CN Phenacyl Nitrate
EMERGENCY BRAKING SYSTEM
Mechanism
There are air pipes or vacuum pipes connected in all the coaches of a train which are at high pressure. With chain pulling there is a break in continuity of pipes. Air gushes out and forces the
break shoe to act fully on train wheels. The train driver too gets a sign of lowering air pressure in the pipes and applies breaks accordingly.
Train cannot run again until the breach is located and corrected. This warrants legal probe in searching the person responsible for chain pulling as train delays, derailments, losses to Indian
railways occur. Indian railways allow pulling if a woman is expecting, elderly and other health complications and in preventing accidents etc
To our dismay, chain pulling is an usual affair in north India namely in Bihar, UP.
CLAY; Martian clay contains borates, a prerequisite for formation of RNA.
RNA was the primitive biomolecule on earth which led to life.
Earth too is poised to develop life with the help of borates i.e CLAY
SONAR
Sound Navigation and Ranging
Active Sonar
Sender is the receiver. Project ARTEMIS in bermuda triangle
Passive Sonar
To Identify sound sources (ships,submarines)
Uses: Military use (anti submarine,aircraft, ocean surveillance)
Civilian uses (fisheries,ECHO sounding, Vehicle location, For blind people)
Scientific uses (biomass estimation, bathymetric mapping)
Concerns: Blue whales and Beaked whales, Dolphins use ECHOLOCATION to identify prey, SONAR may confuse or distort their path to prey

RFID (Radio frequency Identification)
Electromagnetic properties used for identification, a supplement to BAR CODE (unlike bar codes multiple RFIDs can be read)
Uses: ETC (Electronic Toll Collection)
Traffic control, identifying pets, Food processing, Animal and Human tracking
TMT OBSERVATORY
INDIA partnered with USA, CHINA, CANADA, JAPAN to construct a 30 m telescope at Mauna kea, Hawaii. (4200 m above sealevel)
1.4 $ bn project, India supporting with 140 $ mn
Better than Hubble space telescope orbiting earth.
USES: *To understand beginning of universe.
*To identify life in other galaxies.
GEOENGINEERING
It is an ongoing research on mitigating climate change effects by lowering the temperature of earth.
Geo engineering can be of help for causing more rainfall and solve water issues.
AIM
To increase the amount of sunlight reflected normally by atmosphere, clouds etc
It includes:
1.Cloud condensation nuclei
Blowing seasalt particles from below will increase the amount of water droplets, more insolation will be achieved.
2.Effervescent atomisation spray
Increase in size of water droplets by mix of gas and water which fizzes into particles of desired size.
3.Installing giant mirrors in space to reflect sunlight.
4.Decreasing size of bubbles generated by ships in water
Sideeffects:
1.Ozone layer degradation
Chemical reactions will accelerate which will deplete ozone layer.
2.Weather changes
For ex if China uses geoengineering then it may effect Indian monsoons. Neighboring countries may suffer with droughts, storms etc
3.Low and time taking results
Research has shown that it will take years of geoengineering measures to lower temperatures with only low levels of reduction.
Hence, it is not feasible at the moment and demands more research.
Hydrological toolsNot important
1.Banes numberIf <1 then clouds go over the mountains and if >1 clouds go around the mountains.
2.Triple productVertical gradient of moisture
Slope of mountain from cloud base to cloud top level
Velocity of wind (>8m/s)
Javdu hills, Chennai can be geoengineered to cause more rain.
Monuments and pollution
Dust, black carbon, organic/brown carbon cause discolouration of marbles.
Hematite in dust causes brown hue.
32 sites on UNESCO world heritage list
Poor condition of historical monuments, culture, scripts in India
Reasons:
1.ASI in shambles
Poor funding and lack of manpower.
The Archaeological Survey of India (ASI), under the Ministry of Culture, is the premier organization for the archaeological researches and protection of the cultural heritage of the
nation. Maintenance of ancient monuments and archaeological sites and remains of national importance is the prime concern of the ASI. Besides it regulate all archaeological activities in the
country as per the provisions of the Ancient Monuments and Archaeological Sites and Remains Act, 1958. It also regulates Antiquities and Art Treasure Act, 1972.
For the maintenance of ancient monuments and archaeological sites and remains of national importance the entire country is divided into 24 Circles. The organization has a large
work force of trained archaeologists, conservators, epigraphist and scientists for conducting archaeological research projects through its Circles, Museums, Excavation Branches, Prehistory
Branch, Epigraphy Branches, Science Branch, Horticulture Branch, Building Survey Project, Temple Survey Projects and Underwater Archaeology Wing.
2.Lack of people participation and community engagement
3.Lack of concern in youth
One can see names carved on monuments and littering around.
Whitefi Technology
Use of frequency band 200600 MHz for communication, cloud services etc.
It is called white because most of the band is unused as it is restricted to TV channels broadcasting.
IISc Nano Vanadium
1.Prevents oxidative damage
Neutralises free radicals.
H2O2 is reduced to water on reaction with vanadium with no deactivation of vanadium.
2. Foam and solid vanadium
gets itself reduced and release free radicals.
ASAT/Rodnik/KOSMOS
Spacecraft to kill satellites
used by russia in cold war period.
USA (ANGEL spacecraft) and China follow the same.
NOBEL PRIZE2014
PHYSICSBlue LED
1.Energy efficient
Converts 50% electricity in to light as compared to 4% of incandescent bulbs.
2.Long life
100,000 hours of lighting as compared to 10,000 hours of CFLs and 1000 of incandescent bulbs.
3.Memory
Can be used for flash drives. GBs of memory in just small blue LED flash drives.
4.Environment friendly
No gases involved, no emissions.
PRIMATES
#Calcarine sulcus
#Flat nails
#Halluxpincer grasp
#Dextrous approachopposable thumb
#Ex Lemurs, lorises, old world monkeys, apes
Internet of Things
Wifi Backsatter technology
1.No battery issue
Wifi usage is known for battery consumption but this technology offers seamless connectivity without battery, using frequency signals as power source.
2.Radiofrequency
Tags will be put on devicesmobiles,laptops which will connect through radio frequency to wifi enabled devices.
ICBMIntercontinental Ballistic Missile
1.Can carry nuclear weapons upto 5,500 kms horizontal distance.
2.Contain multiple weapons which can be employed at multiple targets.
3.Can also carry chemical, biological weapons
AntiBallistic Missile
China, India,USA, Russia etc
NFCNear Field Communication
#Short range <4 cm, 13.6 MHz, transfer rate 424.6 kbytes/sec
#Seamless connectivity, an upgrade of RFID
#used in egovernance, PVR ticketing, Sony audio players, SBI, Mother Dairy smart change card initiative etc.
Mosquito repellants and incense sticks contain carcinogens
equivalent to smoking 100 cigarettes.
Bednets are the best.
Rashtriya Vigyan Chalchitra Mela
Vigyan Prasar under DeITY. National Beaver Award,
in S&T, cinematography
Plastic wastes in Ocean 5GYRES research in PLOS ONE Journal.
India (0.24 mn tonne annually) at 11th position in top 20 countries with China (3.53 mn tonnes annually) topping the list.
Effects
1.Harmful to marine animals
Degraded products are harmful to marine life.
2.Biomagnification
Toxic wastes eaten by marine animals get accumulated and are transferred to the predating animals. The whole food chain is affected
3.Organic pollutants
Plastic attracts organic pollutants and increases their propensity to cause harm
Way ahead
1.Plastic use
Recycling is an option but not a solution as huge population with low per capita waste amounts to huge numbers.
Government refused to ban single plastic use but can make it expensive to reduce consumption.
NEEM coated UREA
Neem oil prevents leaching of nitrates
70% mandatory production of NC Urea
Urea as fertilizer
#less nitrogen absorbed by crop
#More urea wasted
Neem oil dipped urea
#More absorption efficiency of nitrogen by plants.
#Less urea wasted
1.Low soil, air, water pollution
2.Subsidy decreases.
#increased crop yield
#low input costs to farmers.
Review2014INDIA
DRONES
Unmanned Aerial vehicle
Issues:
1. Power Low battery life
2. Regulation can be used for spying etc.

Carbon Dioxide measurement in earth's atmosphere by NASA's OCO2 (Orbital Carbon Observatory)
KVIC
ECharkha
#Spinning is done with the help of a dynamo and a storage battery to run LED, transistors, charge cell phones etc. 1446 Echarkhas in use.
#Problemsincreased workload due to attached dynamo.
TIDETechnology Intervention of Disabled and Elderly
1.Under Department of S & T
2.To provide easy access to services and make life comfortable for disabled and elderly through S&T
Measures
1.Electonic items with braille enabled keys
2.Stair climbing wheelchairs and Slopes for elderly and disabled
3.Mobile phone audio therapy
4.Interactive help to autistic children
5.Communication devices for dementia patients.
GIS (Geographic Information System)
Allows us to visualize, question, analyze geographical data.
INDIAN SCIENCE CONGRESS
1.Held in January every year since 1914
2.First meet in 1914, at Asiatic Society, Bengal
3.Recent 102nd meet at Mumbai, 2015.
Mars Missions
Beagle 2 (2003, ESA) spotted by NASA's Mars Reconnaissance Orbiter.
SpaceX DSCOVR(Deep Space Climate Observatory) To check CME (Coronal Mass Ejections) from sun
INMARSATI5s Four in number2 launched
Commercial satellite by UK telecommunications company
Uses
1.Mobile Satellite Services (MSS) Market
Principle user base is shipping sector
2.Connectivity away from fixed line
To defence, oil and gas installations, disaster areas
3.Used for telephone calls, audiovisual and data transfer.
Device to curb female foeticide
A set top box containing GPRS based SIM card along with every ultarsound machine. The box will also supply power to machine.
Each time both have to be switched together which will send amessage to CMO and the deputy commissioner and the entire process will be recorded and sent.
Form F is mandatory under PCPNDT act and can be filled online with this system.
AGNIV MissileAvinash Chander ex DRDO chief is key architect of Agni series of missiles.
1.Range of 5,000 km.
2.Can carry nuclear warhead of 1.1 tonnes.
Thermal Scanner
Used in airports to check for fever. Recently used for Ebola fever.
Uses MEMS (Micro Electromechanical System) Uses heat radiated from human body to generate images.
PrincipleHuman body radiate heat more than surroundings. Even ice radiates heat.
Urban Heat Islands
Builtup places trap more heat than surrounding rural areas.
GSLV and PSLV
PSLVPolar Satellite Launch Vehicle
1.Used to carry satellites to LEO (Lower Earth Orbit) i.e 800900 kms.
2.Payload of 1400 kg can be carried to GTO (Geosynchronous Transfer Orbit)
3.Four engine systemfirst and third are solid/ second and fourth are liquid.
4.Satellites close to earth so data related to topography etc are transmitted.
GSLVGeosynchronous Stellite Launch vehicle
1.Used to carry satellites of 2500 kg5000kg , the latest GSLV Mark III.
2.First satellites are put in GTO and then to geostationary orbit of 36,500 kms
3.Three engine system First solid, second liquid and third cryogenic apogee motor.3
4.Satellites need no tracking as they appear stationary at a point above the earth.
GFRG Technology for building
Glass Fibre Reinforced Gypsum panels
1.Water resistant and hard in structure and can build upto 8 storeys
2.Made by fertilizer wastes
3.Manufactured in collaboration with FACTRCF (Fertilizers and Chemicals Travancore Limited Rashtriya Chemical fertilizers)
Black Box
Flight data recorder
Monitors air speed, altitude and direction where plane is heading
It creates digital image of the plane just before crashing.
Cockpit data recorder
Stores radio transmission and sounds in the cockpit.
Investigator can determine speed of plane, banter between pilots, engine sounds,any unusual sound etc.
ULB (Underwater Locator Beacon)
Activated as soon as plane comes in contact with water.
It can end signals from 14,000 feet underwater.
Carries minimum of 25 hrs of data
Both are located in the rear of a plane to survive underwater.
Polymetallic Nodules
Occur deep down the ocean.
Formed when molten lava comes up and is cooled leaving behind technology metals like cobalt, silicon,vanadium on cracks in the surface.
International Symposium on Transforming Mountain Forestry
Organized by International centre for Integrated Mountain Forest and Forest Research Institute, Dehradun, GoI
For Hindkush, mountain people, climate change, remote sensing, transboundary effects
Graphene
Thinnest 2D material; hardest
Stronger than diamond; 300 times than steel
bendable can take nay shape
Excellent conductor of electricity than copper
use in paints, solar, oil, electronics, automobile etc
EPA Airnow programme
The U.S. Environmental Protection Agency’s (EPA) AIRNow program collects realtime groundlevel ozone data from over 1400 air quality monitors across the United States and
Canada. These data are used to generate hourly gridded maps that vividly show smog developing and moving. The gridded data are available free to weather service providers.
Floodforecast model Japanese
Asian water cycle project
Global earth's consortium with 18 countries
Water cycle study to tackle water related disasters
IPCC frequency of heavy rainfall rising
Direct implications for India
MM4TBMore Medicine For TB
International Consortium by EU for TB control
Antimicrobial agents and chemotherapy
Gas detector in mines
Earlier birds were used to check carbon monoxide and other toxic gases in mines.
Now, hand held detectors with 90 decibel alarm which can be heard within a radius of 10 metres in the mine.
Under safety provisions of Coal Mines Regulation act, 1957
Bird conservation activists opposed earlier.
Tejas (Light Combat Aircraft)
Engines starts even at 15 degrees celsius without external assistance in Ladakh.
Made by HAL Aeronautics Development Agency, Bangalore.
Tailless, Flat engine, singleseated, easy manoeuvrable.
RAILTel
MiniRatna PSU under Ministry of Railways
Telepresence provodes hasle free, carbon free communication to different railway stations.
For ex Railway Minister flagging off trains from Bengaluru for Patna, Guwahati etc.
Railtel provides internet connectivity with optical fibre network to 70% of population and connects different railway stations.
Rail engines have different sized wheels
Steam engines had three type of wheels.
In front Leading wheels Smaller and less in number than
Driving wheels Larger and more in number
To provide greater torque as it only was connected with driving axel.
Trailing wheels Rear wheelsLarge in size to take weight of coal and engine compartment.
iChip
With 96 chambers grows bacteria in natural conditions
Used to identify antibiotics to kill Staph. Aureus
Teixobactin, the potent one discovered.
Fungi as carbon absorbers
Soils with more ectomicorhizal fungi have 70% more carbon.
These fungi exchange nitrogen with plants in lieu of carbohydrates
MRIDAPARIKSHAK Minilab for soil fertility
Developed by Indian Institute of Soil Science, Bhopal under National Resource Management division, ICMR.
Soil testing at farmer's doorsteps
Compatible with soil health card
Determines soil pH, Nitrogen, potassium, micronutrients etc
Easy to use after short training.
Mobile SMS to farmers about soil condition
NATMO National Atlas Thematic Mapping Organisation
Country's Map producing organisation under Do S&T, GoI.
20 Braille maps
Genetic Research
Treatment for diseases after decoding human genome.
2.8 % of GDP in USA (31 bn $)
0.8% of GDP in India (1 bn $)
Brain drain leads to poor scientific ability
Existing institutions with less autonomy
SMAP
Satellite launched by NASA to assess water locked in soils.
RISHI
Initiative by DoS&T to provide S&T related activities a fresh platform.
GAGAN & SIMRAN
GPS aided by geoaugmented navigation system
To guide aircrafts etc which is normally less in accuracy, integrity in GNSS (Global Satellite Navigation System)
As a payload on GSAT8
Functioning:
(8) Indian reference stations>Master control centre>Signals formatted for GPS compatibility>Uplinking station
>Geosynchronous satellite(transponders L1 and L2)>User terminals.
Will cover areas missed by European Union Geostationary Navigation System and Japan's Multifunctional Navigation system
SE Asia, Africa, Middle east, South Asia will be covered.
IRNSS
Indian counterpart fro America's GPS
7 satellites
3 over Indian ocean at low altitudes.
The development of IRNSS has happened alongside that of GAGAN (GPSAided Geo Augmentation Navigation) which is meant for navigation services for civil aircraft over
the Indian region. GAGAN, which was authorised for use by the Directorate General of Civil Aviation in April 2015, can also provide services to other sectors like highways,
railways, maritime transport, survey, telecom, etc. The plan is to integrate IRNSS and GAGAN with Bhuvan, a satellitebased mapping service for the Indian mainland
developed by Indian Space Research Organisation (ISRO)
What is spectrum allocation?
Spectrum is the bandwidth allotted in different frequencies to operators.
For Telecom 800,900,1800,2100 MHz
Radio88100 MHz
Satellite 10,00015,000 MHz
Some rules
Every operator is allotted one frequency in a region.
Other operator can be accommodated in the same frequency at other place separated by some distance.
Multiferroics
Flexible electronics made by Bismuth ferrite nanoparticles into a polymer.
Energy efficient, instant on computing
High density, energy efficient memory
GSAT6
ISRO's first international satellite launchGermany’s 45kg DLRTUBSAT aboard the PSLVC2 in 1999
Aerogels
Lightest solid materials
Insulation material
Traditionally made of silica which is not environment friendly
New technology of paper waste turned into nontoxic aerogel
High oil absorption capacity;Oil spill cleaning,
Heat insulation in packaging, coating materials for drug delivery and smart material for biomedical applications.
GEOCEMENT
Industrial wastes in 35 kg Geocement powder and 15 kg Geobinder liquid
1 tonne with 800 kgs CO2 production.
EWastes
MoEF put the onus on manufacturers (ProducerResponsibility Organisations PRO, dealers, retailers and refurbishers of electronic goods to ensure that ewaste goods are collected
and scientifically recycled
Ewaste rules since 2011; new rulesproducers have to ensure 30% ewaste collection by 2018 and 70% by 2023 based on projected sales
Deposit refunds scheme a portion of sales amount to be refunded to consumer after endoflife products recollected, ewaste exchange, publicity awareness programs
States to setup ewaste dismantling units; register workers; skill developmnet activities; health and safety norms
Equipment manufacturers to have collection centres registered with CPCB
Implementation is very important
Harms
Materials broken down by hand; injurious; cancers
Residue after burning or breaking thrown in rivers, drains or dumped with solid wastes; pollution of water, soil; neurological, skin, genetic complications
Artificial Intelligence and ethics
Most of the scifi movies and S&T articles beckon an era where both robots and human live together amicably. But intelligence which is artificial is unaware of human values and emotions.
However some of the unethical qualities which we have developed over the ages will be absent in these bots.
Human values like morality, love. Etc
Artificial intelligence works on programmes feeded during its manufacturing. Increased dependence on them will mask love, compassion, kindness etc i.e humanity. Moreover they can break
laws without hesitation and encroach over human freedom. Who will then the law punish?
Human ills like immorality (corruption),
Robots cannot be bribed. Their work will be feeded to them well within laws. They can administer well alongwith authorities without any confusion,hesitation or bias. For ex Robots doing
surgery in medical science with 100% precision.
Artificial intelligence can be a boon or bane depending upon their programming. Human ethics may be absent in them but humans can control their intelligence
SLBM or Submarine Launched Ballistic Missile; Intermediate Range
The country’s gross cropped area amounts to 195.25 Million Hectares, with cropping intensity of 139%. The net irrigated area is 65.26 Million Hectare
India’s National Agricultural Research System (NARS) (comprising the Indian Council of Agricultural Research (ICAR), other central research institutes, and national research centres set up
by ICAR),
Taxing Agricultural income
Agricultural income should be taxed at 5% or so minimally
It will help lenders distinguish between good and bad farmers that is those who earn better income and have capacity to repay loans.
At present lenders have no means to determine credibility of farmers; hence they lend on discretion; a diligent farmer may get the same loan as a less capable one; leading to low
productivity
Filing of tax returns will help lenders identify income of farmers; credibility and help in giving loans.
Taobao, a consumertoconsumer portal established by Chinese ecommerce giant Alibaba, allows entrepreneurs to open online stores and sell their products to interested
consumers. A Taobao village is a cluster of rural etailers where at least 10% of village households engage in ecommerce. A likely replication in India can be a game
changer for farmers reeling under agricultural uncertainty.
Digital India; connecting villages through internet; OFN can bring rural economy to forefront
Competition between them should be there as protectionism will again eatup into their efficiencies; Taobao has open competition.
EAgriculture
DIGITAL INDIA Internet of things, Cloud computing in agriculture
Future of Food for All
TAD or Tinker with Agricultural Details; improving productivity, use of high quality high yielding crops, fertilizers, pest control
MSF or Mend Societal fundamentals; Birth control, minimising inequality
Jingo
A product by Sea6 for enhancing crop productivity
The Food and Agriculture Organization (FAO) of the United Nations, in collaboration with the International Telecommunication Union, has come up with the eagriculture
strategy to help countries use information and communication technology to drive rural development.
Bhutan and Sri Lanka are two countries with properly developed Eagriculture strategy
Agriculture Census
1st in 197071 and conducted every 5 years
Operational holdings are assessed
Ninth in 201011
KISAN (Krop Insurance using Space technology and geoInformatics )
Launched by Ministry of Agriculture
UAVs or Drones to have geospatial information to help insurance companies assess losses and compensate farmers accordingly.
A farmer affected with drop losses can click photos and upload them on the app; crop cutting experiments
Interest subvention and easy loans for farmers for buying solar run pumps and abandon diesel ones.
OPIUM (Alkaloid) Production
Rajasthan, Madhya Pradesh, Uttar Pradesh
Advanced technology of opium extraction called CPS, concentrate of poppy straw by France, Hungary, Australia
India produces raw opium thus causing illicit use in USA. Hence, USA has shifted to CPS from Turkey. According to resolution 471 of UN Economic and Social Council 80% import should
be from traditional supplies like India,
Turkey and 20 % from the rest.
Bhoochetna Programme in Karnataka to enhance productivity of rainfed areas.
To rejuvenate soil health; developed by ICRISAT or International Crops Research Institute for Semi Arid Tropics
Farm ponds with bed covered by plastic; to prevent seeping into ground; store water; pump it efficiently to every crop.
World Development Report 2008 shows that agricultural growth is twice successful than nonagricultural growth in reducing poverty.
Neem coated Urea
Spraying urea with neem oil slows the release of nitrogen, by about 10 to 15 per cent, concomitantly reducing consumption of the fertiliser. According to recent research, the "sustained
release" nature of neemcoated urea has seen rice yields jump 9.6 per cent and wheat by 6.9 per cent.
How to protect farmers from natural calamities?
Crop losses in sudden hailstorms or other causes are covered under various schemes of the government. Moreover, small and marginal farmers need extra support as they are more
vulnerable to losses.
Recent Pradhan Mantri Fasal Bima Yojana includes hailstorms, inundation.
CROP INSURANCE
According to a study by private weather forecasting agency Skymet along with business association Assocham, around 20 per cent of India’s 130million farmer families have crop insurance,
which is why a vast majority of them are exposed to the vagaries of weather
CCIS or Comprehensive CIS; withdrawn in 1997 as maximum premium and recovery went to certain states like Gujarat; very few takers
National Crop Insurance Scheme
Launched by UPA government in 2013 and comprises of:
1.Weather Based Crop IS
Collusion between private weather agencies and private insurance players
Farmers approach for compensation but companies dismiss them.
Churu village case with ICICI Lombard and a private weather data agency
The WeatherBased Crop Insurance Scheme (WBCIS) under the Union government’s National Crop Insurance Programme (NCIP) provides insurance coverage and financial support to
the farmers in the event of crop failure due to adverse weather conditions.
These conditions include deficit, unseasonal or excess rainfall, heat, frost, hailstorm and cloudburst. WBCIS depends on private weather agencies for data regarding temperature,
wind and other parameters.
NCIP has empanelled four private weather agencies and 10 private crop insurance companies to install AWS for recording the weather parameters
2.Modified National Agricultural Insurance Scheme
Oilseeds
Food crops millets, cereals, pulses
Horticultural and annual commercial crops
Income support in low yield and crop losses/failure
Private and Government companies
Premium subsidy shared by state and centre equally ; subsidy only if premium is >2 %; higher risk crops higher premium
Cap on subsidy; rabi 5, kharif 11 and horticultural 13%
Insured at 3 stages: sowing, during growth, after harvest
Very high premium for farmers hence less takers; no supervision of government; corruption, middlemen in assessing damage
3.Coconut Insurance Scheme
FIIS (Farm Income Insurance Scheme)
Introduced in 2003, being revived in Gujarat.
Farmers are compensated according to certain norms.
The difference between a farmer's predicted income calculated through measuring of yield of the crop and price in the markets and actual income after selling crops is compensated.
Problems associated with FIIS
1.Poor penetration
Most of the farmers are unaware of these schemes.
Lack of formal credit system in villages, poor markets for sale of produce etc.
Use of mobile technology, satellitebased monitoring etc is needed.
2.Poor implementation
Poor expertise, manpower in assessing crops is lacking
Soil health card schemes, fertilizer use guidance etc are recent steps in this field.
Evaluating correct market prices
Way ahead
Farmer education, regaining their trust, financial mobilisation is needed.
PMFBY or Prime Minister Fasal Bima Yojana
New crop insurance scheme which replaces all schemes like NAIS and MNAIS
Addition of hailstorms, drainage isues
Premium will be low at around 1.5% for Rabi and 2% for Kharif; 5% for horticulture crops ; no upper limit for subsidy; even in 90% premium balance
25% compensation immediately
Price risk management has always been an issue
Crop insurance needs assessment before sowing and beyond harvesting
Regulating futures market is necessary;
An Agricultural Economics Research Association paper cites a number of exchangespecific problems to explain the inefficiencies in futures markets—thin volume, infrequent trading, lack of
effective participation of trading members, nonawareness of futures market among farmers, absence of welldeveloped grading and standardization system and market imperfections.
Insurance scheme persuades farmers to grow cash crops which are more dependent on monsoon or irrigation.
Under this scheme, remote sensing satellites, land mapping, assessment of crop will be done; farmers can upload photos of farm cutting experiments through smartphones for fast action;
Digital literacy is needed for better effects
Usually Insurance market flourishes on two premiseslow risks and better premium paying capacity of customer but in PMFBY premiums are low and are highly subsidised; Hence in
droughts and other calamities, insurance companies will have to compensate heavily and they may get into losses.
On the other hand with already skewed MSPs in India in favour of rice and wheat, a low premium will perusade farmers to grow risky crops rather than pulses, millets and other climate
resilient crops.
Hence government will have to take a multipronged approach where farmers are counseled before hand not to take risky crops in view of three successive years of drought.
Issues
Implementation is an issue
Patwaris will click photos; not scientists nor experienced person
Technology not widely available with farmers; remote sensing, drones;
State governments should be on board; premium share with center
Private players in insurance; promoting competition and lowering of costs
MFP (Mega Food Park)
Direct marketing access to farmers
Farm value realization
Economic activity in rural areas will increase subsequently.
Water, waste management facilities at CPCs (50 acres minimum required)
Business houses will have extensions there to process food.
50% in general areas and 75% in NE areas will be government funding for setting up MFPs to a maximum of Rs 50 crores.
Issue
Land acquisition
Bank loans, credit facility
BUDGET 201617
100% FDI in marketing of processed food products; will persuade companies to procure food from local sources like Pepsico does contact farming for potatoes in Punjab for lays potato
chips, Fruits can be procured for Tropicana juice
Giants like Walmart will not benefit with restricted use of processed foods only but domestic retail markets like Reliance will surely benefit
Local farming will get a considerable boost
Aerobic rice cultivation
Rice is cultivated as direct sown in nonpuddle aerobic soil under supplementary irrigation and fertiliser with suitable high yielding rice varieties. Throughout the growing season, aerobic
rice field is kept under
unsaturated condition
and field is irrigated by surface or sprinkler system to keep soil wet.
Water productivity is reported to be higher in aerobic rice by 6488 per cent (calculated as grams of grain produced per kg of water input) and utilises 3,000 to 3,500 litres of water to
produce 1 kg of rice compared to rice raised under transplanted flooded system which requires 5000 litres of water.
GM Crops
DNA modified using genetic engineering.
3 types of G.E: Transgenic (from other species), Cisgenic (from related species), Subgenic (deletion of genes from crops)
TSA increased from 17,000 km2, 1996 to 1,60,000 km2, 2011
MONSANTO,a US firm leader in GM crops
Ex: Bt (Bacillus Thuringenesis) Cotton a great success, Moratorium on Bt Brinjal in 2009 after GEAC approved its cultivation
Consent given by Maharashtra government on field trials of GM crops rice, chana, maize, brinjal, cotton.
States like MP, Rajasthan have banned the field trials.
Central government has decided it would reduce the prices of Bt cottonseed. It also slashed the technology licence fee (or royalties) paid by the seed companies to the
technology provider, Mahyco Monsanto (MM).
In effect, the government expropriated about 74 per cent of the profits of MM and distributed it to domestic seed companies and farmers.
This is against Make in India prospects; government intervention will discourage innovation; farmers should have protested for Bt uselessness rather than an action by the government to
break its monopoly
Public sector companies should do active research to compete with these private players; latest bt cotton tech developed by public sector was derived from MM only causing much
criticism; bt mustard is stuck in conundrum of biosafety norms
Advantages:
Resistance to certain pests, Herbicides (Glycophosphate,)
Environmental resistance, drought resistant, demand less water,
Nutrition specific, Vitamin A rich etc, increased productivity
Toxin resistant (lower cyanogen glycosides in cabbage), Bioremediation (accumulate toxins in parts which are above surface and cut off; carbon sinks)
High yield and productivity; solution for decrease in size of land per capita of farmers in India
Pricing, taxation and IPR issues in India
Controversy:May contaminate the gene pool of domestic varieties., affect biodiversity (Bt cotton cleared traditional crops)
Monopoly of MNCs (MOSANTO), seed companies over crops
Pesticides use have not decreased as new pests have emerged.

GEAC (Genetic Engineering Approval Committee) approved but Parliamentary standing committee on Agriculture turned it down (UPA 2)
Recommendations :
Proper labeling of GM products
Check imports
Organic farming to be encouraged
Field trials only in confined area in labs,
Review of BRAI (Biotechnology Regulatory Authority of India) bill, as promotion and regulation should be in separate bodies.
FSSAI (Food Safety standards Authority of India) must flag entry of GM crops in India, Consumers have the right to know what they eat.
Industry based (Association of Biotechled EnterprisesAgriculture Group) ABLEAG predicts a decrease in farm production... But India has huge produce without GM crops.
In recent years, our food grain production has exceeded 260 million tonnes, horticultural production is about 280 million tonnes, milk is 137 million tonnes, eggs73 billions and fish over 9.8
million tonnes.
ICAR provides regularly financial and professional support (Development Grants) to Agricultural Universities for modernization and strengthening of academic facilities,
infrastructure and faculty improvement.
ICAR offers several fellowships such as National Talent Scholarship (NTS) for UG students, Junior Research Fellowship (JRF) for PG students and Senior Research Fellowship (SRF) for
PhD students every year to attract talent into agricultural education and for Human Resource Development, national integration and reducing inbreeding.
The outbreaks of white fly in North Karnataka and Andhra Pradesh in 1996, mirid bugs in Haveri and surrounding areas in 2013 and pink bollworm now in Raichur have
refuted the claims of Bt cotton seed producers on pestresistance
Bt Mustard now being opposed by activists; DMH 11 banned by GEAC; India imported 14.5 million tonnes of oilseeds at 10.5 billion $ in 201415; 0.4 million tonnes of rapeseed mixed with
mustard oil; Cottonseed oil is, in fact, the second largest produced edible oil in the country (1.4 million tonnes) after mustard (2 million tonnes). That makes cotton no less of a food crop.
Also soyabean and rapeseed oil produced in India are mainly GM crops.
GEAC under MOEF, Genetic review committees under Department of Biotechnology; conflict of interest as the regulator has also to promote it; need of a separate regulator as
envisaged in many policies and bills which could not see the light of the day; A biotechnology policy.
A “Barnase” gene isolated from a soil bacterium called Bacillus amyloliquefaciens. It codes for a protein that impairs pollen production and renders the plant into which it has been
introduced malesterile (as mustard is selfpollinating). This malesterile plant is crossed with a fertile parental line, containing, in turn, another gene, “Barstar”, from the same
bacterium that blocks the action of the “Barnase” gene. The resultant progeny, having both the foreign genes, is a hybrid mustard plant that is not only highyielding, but also fertile
and capable of producing seed/grain (thanks to the “Barstar” gene in the second fertile line)
ICAR launched Niche Areas of Excellence scheme to augment strategic strength of Agricultural Universities in new and emerging cuttingedge technologies.
It also established 434 Experiential Learning modules in all the universities for providing skill oriented handson training to the students at UG undergraduate level.
For capacity building of teachers and scientists, ICAR supports to conduct training programmes in advanced and emerging areas.
· This Agricultural University has introduced an academic innovation “Rural Work Experience Programme” for the first time in the country during the year 197980. Based on its
success, the programme was recommended by ICAR for adoption by all other Agricultural Universities in the country.
This programme provided opportunities for final year students of B.Sc.(Ag.) to gain insight and experience in field operations and problems related to farming and rural life, by
staying in villages for one semester.
· Now, ICAR has launched Students READY programme by integrating this “Rural Work Experience Programme” as a major component. The Students READY programme was recently
launched by our Hon’ble Prime Minister on 25 July 2015 and it will be implemented from the next academic year.
Under this programme, the Union Government shall provide fellowship of Rs 3000 per month for a period of six months to all the undergraduate students of agricultural science.
ORGANIC FARMING
Biofertilizer
Leguminous Plant (Leg hemoglobin)
Cyanobacteria (Nif)

Biopesticide
Bacillus Thuringinensis
Bacillus Subtilis
Fungus; Entmopathogenic Fungi, Metarhizium, Beauveria
Virus; Nucleopolyhedrovirus (speciesspecific narrow spectrumdestroys only crop pests and harmless to humans, animals, birds) Corn borer, Bollworm, Potato
Beetle
Flowering Plants; ChrysanthemumPyrethrin
Sikkim becomes a completely organic state. Major exporter of Cardamom.
Use of vermicompost (worm cast, organic material broken down), green manure, crop rotation and conventional methods to increase agricultural
productivity,growing of vegetables, cashew nuts at Rampachodavaram in East Godavari district, A.P etc
Benefits of Vermicomposting
Reduces pollution by breaking in presence of oxygen to nontoxic products.
Reduces greenhouse gas emissions whereas in landfills methane is generated.
Reduces the need for fertilizers.
Precautions
Not to mix salt, pickle, vinegar, oil, meat as diseasecausing organisms may grow
Use only used vegetables, cowdung, fruit waste, coffee, tea etc
Present scenario:states like rajasthan, sikkim (organic Tea) are frontrunners.
farmers have profited a lot which has shunned use of fertilizers and chemicals.
Pest control is also effective with O.F
Problems:
lack of govt support
lack of awareness in farmers as scared of failure of crops.
areas where green revolution happened have poor soil condition, thus areas out of green revolution may benefit.
monopoly of fertilizer companies cause govt. to act slow in this field.
lack of adequate O.F mandis or markets.
NAROKA a NPO works in this field and educates farmers about O.F
An All India Organic Farmers Committee have been set up.
MIDH
Mission for Integrated Development of Horticulture
NMSA
National Mission for Sustainable Agriculture for promotion of O.F.
For adption of O.F 50 % of cost limited to Rs 10,000 per hectare in 3 installments for max. of 4 hectares. Cost sharing on vermicompost etc
NABARD gives subsidy. Financial assistance for organic village adoption (10 villages per annum; 10 lakhs per village)
RIDF or Rural Infrastructure Development Fund is provided easy money by NABARD as compared to government measures.
Small farmers are going to reap the benefits rather than large farmers of UP, Punjab, Haryana, Maharashtra which may curb farmer suicides.
116 farmers ended their lives in the first three months of 2016
Maharashtra is notorious for the highest number of farmer suicides with Punjab ranking second in the list with 495 cases in 2015 and as many as 56 cases in the first quarter of
this year.
It is either the eternal debt burden or crop failure which drives farmers to such a distressing end.
Paramparagat Krishi Vikash Yojana (PMKVY)for organic farming in budget 201516.
Pradhanmantri Gram Sinchai Yojana to suuport microirrigation with a corpus of Rs 5,000 crores.
The ultimate irrigation potential (UIP) in the country, at current levels of technology, is 139.9 million hectares (m ha). Of this, almost 54 per cent comes
from surface irrigation and 46 percent from groundwater resources.
Overall irrigation potential can go up from 139.9 m ha today to 170 m ha, if we tap the potential of interlinking of rivers. Our gross cropped area (GCA)
hovers around 195 m ha. This needs to seen in context of the Prime Minister’s clarion call for “har khet ko pani,” and “per drop, more crop” under PM’s Krishi
Sinchayee Yojana
“Telangana, which is onethird of Maharashtra, has given Rs 25,000 crore for irrigation projects. A big state like Maharashtra has a budget of just Rs 7,000 crore for
irrigation projects”
Need to price water use to inculcate habits of water saving in farmers simulataneously.
PMKVY
300 crores in budget 201516
50 or more farmers will be given 50 acres to cultivate.
5 lakh acres to be cultivated by 10,000 farmers in 3 years
Market linkage and transport provided by the government.
Rs 20,000 to each farmer
Certification of organic produce will be done with no expenditure by farmers.
Validation of organic produce for exports
PMKSY
Pradhan Mantri Krishi Sinchai Yojana; Protective irrigation to agricultural farms within 5 years or 20192020 with an investment of 50,0000 crores
har khet ko pani, precision irrigation; More drop per crop
Convergence of investments in irrigation at the field level; integration of schemes
Private investment
reusing municipal water
Use 20–40 million ha of unutilised irrigation potential created in major, medium and minor irrigation projects.
Provide better quality power rations to farmers during the time of peak irrigation demand.
Madhya Pradesh is an example of the above which achieved double digit agri growth. Some measures adopted which can be a role model for others :
1.PLDPLS
Performance Linked Demands and Performance Linked Support which encouraged the bureaucracy in irrigation services
OSARABANDI or operating canals by rotation and operating canals at FSL or FullSupply Level.
Tail end farmers were required to submit water demands earlier so that they receive benefits like Head end farmers
2.Maintenance and repair of canals; lining big earthen canals on old systems; desilting them.
3.Engaging with Water User Associations in cleaning canals, informing officials; revitalising them helped alot.
Other ways
Irrigation Service Fees not collected as the service provided is not reliable; discoms too allowed power thefts but as their service improved farmers complied even
at high fees
It is because empowering these groups is very important; in absence of a supportive bureaucracy or CM they themselves demand and achieve the requisite services.
Received Krishi Kraman Award for foodgrains in 2015
State's agriculture growth rate was 20.11 per cent during 201415.
Adding another feather to state's cap, one lakh 9 thousand fallow land was converted into arable land in single year during year 201415.
Expansion of irrigation facilities has played a significant role in these achievements as areas irrigated through canals was only 9 lakh 75 thousand hectares in 2010
11, which rose to 32 lakh 29 thousand hectares in year 201415.
SUGARCANE
To facilitate clearance of cane arrears of sugar mills (to pay farmers) govt. notified SEFASU2014 Scheme for extending Financial Assistance to Sugarcane
Undertakings
Under this, interest free loans were provided. Last date to clear arrears was 31 dec 2014.
Govt. has fixed Rs 48.504949.50 for sale of ethanol by sugarcane mills to Oil Marketing Companies dept nearby it (100300>300 km).5% is minimum ethanol
blending required in petrol.
'BHeavy' Molasses are better to produce ethanol.
'C' molasses (>35% sugar) route yields more sugar than ethanol. This may persuade mills to produce ethanol through B heavy molasses route.
Issues
1. Sugarcane productivity
C4 crop which has better productivity than wheat, paddy and grows 11 months a year.
Still, govt. not supportive.
2.Biomass
Bagasse, the left over fibrous residue after sugar is extractes has energy generation potential and can feed many households.
Cost of power generation is Rs 34 per unit as compared to Rs 7.512 for solar energy.
Still, the focus is on other renewables.
3.Ethanol
Left over molasses ferment to give alcohol. No particular norm for petrol blending as in Brazil (25%). UP govt. fixes 34% for country liquor. Huge revenue from liquor
trade is neglected.
Thus, sugar mills too live in oblivion
4.Waterguzzling crop
Sugarcane occupies about 4 per cent of gross cropped area in Maharashtra’s agriculture but takes away almost twothirds of the state’s irrigation water. Such a huge
inequity doesn’t exist in any other state. In a market economy, a progressively rising price of irrigation water, with increasing usage of water (and power), can solve this anomaly. But when
water and power for agriculture are highly subsidised, it artificially creates excess demand, triggering a scramble for these scarce resources. No wonder, the more
powerful win and take away the potential prosperity of others. The fact that cotton area in Maharashtra is just 3 per cent irrigated, while sugarcane is 100 per cent irrigated,
and cotton needs just fourfive irrigations while sugarcane is flooded with 2530, tells the sordid story. In Gujarat, cotton is 57 per cent irrigated. No surprise then that Gujarat’s
yields are double that of Maharashtra.
Moreover spending across five year plans in creating irrigation infrastructure has not been less but utilisation remained less; costs remained high (more than 20 lakhs/hectare) in comparision
to Gujarat (approx 2 lakhs /hectare) and M.P (approx 4 lakhs per hectare); hence the problem is of inefficiency, leakages or of investment?
Solution
Government issued loans to sugar mills to pay off farmers.
But it is not sufficient as more than 20,000 crores have to be given.
Meanwhile stocks are piling up and farmers demand an increase in MSPs
Rationalisation of subsidies and taxes like import duty; current import duty of 40% and minimum export duty incentivises farmers to grow sugarcane; a lower import duty will
increase competition through more imports
It is better to make farmer cooperatives run sugar mills. This will increase profits for them.
COTTON
USA has monopoly over international prices. It provides huge subsidies to farmers.
Vidarbha suicides (Dryland farming area)
1.MSPs are low.
USA has monopoly over international prices. It provides huge subsidies to farmers. Low international prices affect Indian cotton farmers. Even then, MSPs are
low.below Rs 1000 per 20kg cotton
2.Vidarbha (Amravati, Yavatmal) has 90% nonirrigated lands. (Maharashtra has many rivers, still poorly irrigated)
3.Bt cotton demands more water than traditional. Also, soil at Vidarbha is shallow and demands high water.
4.Fake GM seeds and unbridled use of GM Bt cotton has degraded soil and crop quality.
5.Populist policies with low government spending.
6.Lack of markets and agricultural financing.
Cooperative financing is not successful. Also, govt. provides subsidies to irrigated lands and not for nonirrigated lands.
SOLUTIONS
1.Horticulture
Nagpur is world famous for Oranges. A shift is needed.
2.Government support
Increased spending, agricultural R&D for farmers.
IPMIntegrated Pest Management
#Trap cropsGrowing crops to attract insects for pests prevention or concentrating them to crops where they can be destroyed.
Indian Government decided to fix prices of Bollgard seeds or Bt cotton seeds for cheap availability to farmers
Bt cotton along with irrigation facilities, infrastructure facilities for trade and government support made India a net exporter from net importer. Huge foreign exchanges have been earned.
But such pricing by government will dissuade Mosanto from doing further research and laying markets in India. Indian ICAR budget expenditure has been 0.8 billion dollars which is much
less than 1.7 billion dollars spent by Mosanto. Hence much investment will come from private sector only in future.
Greenseeker Technology
Optical sensor device which analyses net vegetative index.
1.Emits infrared light on a crop and analyses the reflected light.
2.Reflected light determines the health of the plant.
3.Used as inputoutput device.
Can be used for fertiliser application assessment, nitrogen content of soil etc
Truck farming for vegetables
Horticultural practice of growing one or more vegetable crops on a large scale for shipment to distant markets.
Less intensive and diversified than market gardening. At first this type of farming depended entirely on local or regional markets but with increased penetration
of railroads, shipping of seasonal crops to relatively distant markets where their cultivation is limited by climate has become easy.
Tomatoes, lettuce, melons, beets, broccoli, celery, radishes, onions, cabbage, and strawberries.
APMCsAgricultural Produce Marketing Committees
The government of India launched the National Agricultural Market Scheme in July 2015 in 585 markets and has, since April 14, started etrading on the
platform.
Agricultural and allied sector in India grew at an annual average rate of 1.7 per cent per annum between 201213 and 201516 (at 201112 prices).
The gross value added at factor cost in the agricultural and allied sector, which is a first approximation to the income generated in the sector, has shown a
growth rate in excess of 10 per cent only in four years between 195051 and 201112 (measured in constant 200405 prices).
All these supra10 per cent growth rates came on the back of negative growth rates ranging from minus 1.1 per cent (198788) to minus 11.1 per cent (1979
80).
Issues
Fragmentation of state into multiple areas; multiple APMCs
Multiple levy of Mandi fees
license barriers; monopoly
poor infrastructure; obsolete technology
High level of market charges
Intermediaries
Transport costs not included in prices
Warehousing for vegetables; cold storages not there
Distant markets lead to wastage of produce mainly vegetables, fruits and losses to farmers.
National Agricultural Marketing eplatform
SFAC or Small Farmer's AgriBusiness Consortium, under Ministry of Agriculture
To setup Kisan Mandi in Delhi and enable FPOs to sell produce directly in markets with less intermediation.
Online auction of farmer's produce
Price offered by traders and prices expected by farmers; better profits to farmers
Will free farmers from APMC mandis, middlemen, better price
Karnataka uses eplatform where NCDEX in 50:50 JV with state government formed Rashtriya e Market Services Private Limited
AGriTech Infrastructure Fund for promotion of national agriculture market with budget allocation of 200 crore; capacity building of APMCs.

A timebound programme announced by the agriculture ministry for developing
NAM
envisages linking 250 mandis by September 2016 and all 585 mandis by 2018.
An emandi transaction is assumed to be done through APMC mandi and fees of mandis are deducted; hence APMCs shouild not worry about their decreasing
clout; but corruption would surely go; volume of transaction will increase
Cooperative federalism, interstate bonhomie is needed
Budget 201516
Adoption of model APMC acts by states and development of private markets and yards
Develop farmer markets in town areas for direct sale of produce
ReMS or Rashtriya eMarket Scheme launched in Karnataka in 2014 integrated 100 markets; successful indeed but what about the role of middlemen? Though they harassed peasants;
lower realisation of costs but their presence helped helped farmers in easy transportation and availability of credit; interest rates were high but in absence of public institutions
supporting their cause it was a big relief indeed.
NSSO SASSituation Assesssment Survey
1. 4% decadal growth.
2. Marginal and small farmers (less than 2 hectares of land) 84% in 200203 to 87% in 201213.
3. Percentage of farmers in debt from 48.6% to 51.9%
4. Farmers depending on noninstitutional resources has gone down from 42.3% to 40.2%
5. Percentage of area irrigated from 48% in 200203 to only 50% in 201213.
6. Percent of farmers aware of MSP from 70% to 68%.
7. 60 % of farmers have no access to technology in 201213 which is same as 200203.
8. 4% of farmers insured their crops in 200203 which increased to 4.8%.
Woes in agriculture
Drought Prone area programme (1974)
1.Focussed on minimising droughts.
2.Did not focus on livelihood.
National Policy on farmers (2007)
1.To improve farmer income by risk management and price policy.
2.Poor implementation with <30% farmers borrowing from institutional credit system.
Rashtriya Krishi Vikash Yojana (2011)
1.Allocated 10 lakhs to each district and planning with LGs.
2.DCs and local ministers hardly consulted LGs.
3.Money allocated to states by centre should be used for better technologies.
Micro Irrigation
T.N offers 100% subsidy for marginal farmers to take up microirrigation or drip or trickle irrigation upto 60,000 acres.
60 % of land is dependent on monsoons and it contributes 40% to total production.
The advantages of drip irrigation are:
Fertilizer and nutrient loss is minimized due to localized application and reduced leaching.
Water application efficiency is high if managed correctly
Field levelling is not necessary.
Recycled nonpotable water can be safely used.
Moisture within the root zone can be maintained at field capacity.
Soil type plays less important role in frequency of irrigation
Soil erosion is lessened.
Weed growth is lessened.
Water distribution is highly uniform, controlled by output of each nozzle.
Labour cost is less than other irrigation methods.
Variation in supply can be regulated by regulating the valves and drippers.
Fertigation can easily be included with minimal waste of fertilizers.
Foliage remains dry, reducing the risk of disease.
Usually operated at lower pressure than other types of pressurised irrigation, reducing energy costs.
The disadvantages of drip irrigation are:
Initial cost can be more than overhead systems.
The sun can affect the tubes used for drip irrigation, shortening their usable life.
If the water is not properly filtered and the equipment not properly maintained, it can result in clogging leading to more costs
For subsurface drip the irrigator cannot see the water that is applied. This may lead to the farmer either applying too much water (low efficiency) or an insufficient amount of water,
this is particularly common for those with less experience with drip irrigation.
Drip irrigation might be unsatisfactory if herbicides or top dressed fertilizers need sprinkler irrigation for activation.
Drip irrigation may lead to build up of salts in soil and at roots with decreased leaching.
Reforms
1.PPP
NGOs like ISPA (Indian Society of Agribusiness Professionals) in collaboration with government carry out research for better crops varieties, seeds, farming practices etc.
For ex Pulses TS3R, GRG811, BSMR36 were developed but never given government push to be adopted by farmers.
Farmers were unaware of such developments until NGOs like ISPA which works with OCP Morocco, largest phosphatic fertilizer maker came to their rescue.
2.FPOS, Cooperatives
SOIL HEALTH CARD
Why?
To decrease Rs 100,000 crores of subsidy on fertilizers
To promote judicious use of fertilizers.
Setting up laboratories
Structure
1.Soil is anlaysed for physical and chemical properties.
Physical color, texture, depth, water content etc
Chemical pH, salinity, nitrogen, potassium, sulphur content
AAS (Atomic Absorption Spectrometer) will be used with Rs 150 as charges.
2.Need of different nutrients
For ex Wheat and rice need nitrogen
Pulses need phosphorous
Banana, tomato, pineapple need potassium
3.Fertilizer industry transformation.
This in long term will persuade fertilizer companies to produce fortified fertilizers.
For ex ammonia with zinc, phosphorous etc.
No aid of chemical and biochemical laboratories needed.
Tamil Nadu has been distributing soil health cards since 2006
30 Soil testing laboratories and 18 mobile soil testing laboratories.
A.P, Gujarat, Haryana also distributing.
Nutrient Based Subsidy Policy (NBS)
Subsidy is allowed depending on nutrient content of P&K fertilizers (Phosphatic and potassic)
22 fertilizers in this scheme
Market price by manufacturers.
Not followed in Urea after opposition.
NMSA (National Mission for Sustainable Agriculture)
Under National Action Plan for Climate Change
More focus on biofertilizers, organic farming, microirrigation, SRI (System of Rice Intensification) saves water
Dovetailed with National Horticulture Mission, National Mission on Food Security
India is a net exporter of “virtual water” as 1 kg of rice requires 3000 to 5000 litres of water and 1 kg of sugar about 2000 litres of water, and both are being exported.
SRI
A climatesmart, agroecological methodology for increasing the productivity of rice and more recently other crops by changing the management of plants, soil, water and nutrients.
SRI methodology is based on four main principles that interact with each other:
Early, quick and healthy plant establishment
Reduced plant density; adequate spacing between plants for root growth
Improved soil conditions through enrichment with organic matter
Reduced and controlled water application
Agricultural Credit
Debt waiver schemes have constrained credit to farmers rather than helping them.
Q.What are the factors of production in farming?
1.Land
Farmers in India are grouped according to their share of land as small, medium and big farmers.
After independence, land holdings per farmer kept on decreasing over the generations as land was fixed and heirs more.
2.Labour
We are surplus in labour
Disguised EmploymentMore labour than needed in a field as whole family is dependent on agriculture.
3.Physical Capital
Fixed capital Used in production for many years; Tools (Plough), machines, buildings
Working capital Money, Raw materials
Agricultural credit is important for increased production
As land is fixed, Productivity can only be increased by use of modern farming methods like HYV seeds, pumpsets for irrigation, electricity, Fertilizers, pesticides and other S&T, R&D
products which are costlier.
Government provides money by cheap loans. Though informal banking is prevalent in rural areas where moneylenders harass peasants. It is difficult for farmers to get bank loans due to
rigid KYC norms.
Other methods to increase productivity are mixed cropping over the year. But one needs raw materials for that.
GREEN REVOLUTION short term and long term benefits
It happened because of use of modern farming methods like HYV seeds of wheat
Positive
Selfsufficiency
India became an agricultural surplus state, famines disappeared.
Punjab, Haryana, Western U.P farmers prospered
Negative
Overuse of land degraded land
Chemical fertilizers degraded land.
Groundwater table went down due to overuse of water
Pollution of potable water, aquifiers due to leaching of pesticides, fertilizers.
Vulnerability to pest, diseases.
Q.Who are other people dependent on agriculture than farmers?
Agricultural Labourers
‐‐Mostly dalits who do not own any land
‐‐Big farmers lure them to job as daily workers, and pay less wages
‐‐They cannot complain as they are many people in search of employment.
Small farmers
‐‐They usually donot produce surplus.
‐‐Hence they do subsistence farming to feed only their family
‐‐Lack of other sources of money puts them in trouble in crop failure, poor monsoons, infesta‸㤵on, hailstorms (climate change effects which are going to increase)
‐‐Some help can put them in non‐farm jobs.
Non‐Farming jobs
‐‐Fisheries
‐‐Dairy
‐‐Sugarcane crushers (Jaggery making)
‐‐Honey etc
‐‐They need markets to sell their crops, vegetables, non‐farm products
‐‐Transport is important‐ Government's job to connect villages with towns.
‐‐Procurement of produce‐‐ Public procurement at MSPs, APMCs, private mandis, e‐choupal etc
Q.Are agricultural subsidies needed?
Yes
Subsidies on Fertilizers, electricity, machines, tractors etc> Small farmers employ them on fields>Increase productivity>Public procuremnt or sale in market at adequate
prices regulated by government>Profits>More capital for farming, nonfarming jobs>Profits>Wealthy farmer. At the same time our buffer stocks go up.
70,000 crores fertilizer subsidy for the year 201415
But the grass is not green as above.
Implementation is an issue as only a section has benefited.
Big farmers reap benefits (Haryana, Punjab, West U.P)
Small farmers do not get loans.
SHGs, Cooperatives help but they too charge high rate of interest
No
Overuse of fertilizers
Urea subsidycausing problems
Urea retails at an administered price of Rs 5,360 a tonne, unchanged for several years, against an average production cost of Rs 18,000 a tonne. This means the government
subsidises about 70 per cent of cost compared with 30 per cent or so on P and K fertiliser, prices of which were partially decontrolled under a nutrientbased subsidy scheme in 2010.
Pollution of groundwater, rivers etc.
Overuse of urea vis a vis P, K; N:P:K ratio is increasing in soils which affect its fertility. (10:4:1 as against 4:2:1)
Wastage of fertilizers which kills microorganisms in soil, earthworms etc
Loss of micronutrients from soil
Huge burden on exchequer; 70,000 crores annually; every budget allocation gets spent in first 5 months; 40,000 crores of arrears also unaccounted in budget is disbursed.
Nonprofitable venture for industries; PSU and Private similarly
GHG effect by Nitrous oxide coming out of urea which destroys Ozone layer.
Populism and opposition on vague terms
Manmohan Singh withdre price hike of 40% to 10% after such opposition.
Way out
‐‐Neem coated urea
‐‐Bio‐fer‸㤵lizers‐ Pulses, Azola,etc
‐‐Bio‐manure‐ Cow dung, vermicompost, organic farming
‐‐Integrated Nutri‸㤵on Management
Balanced use of farm products
‐‐Fer‸㤵‐for‸㤵fica‸㤵on
Use of Zinc coated urea
‐‐Soil fer‸㤵lity tes‸㤵ng (Soil Health card ini‸㤵a‸㤵ve)
For ex‐Soil in North India is deficient in Sulphur and Zinc. Supplemen‸㤵ng these nutrients is helpful.
‐‐Urea sprinkling by hand which helps flowering, prepare soil for next crop.
‐‐Publicity and awareness in peasants by Kisan melas, KVKs, Farmer's conferences etc
‐‐DBT at JDY accounts seeded with Aadhar; will save 40,000 crores annually
Hence subsidies are needed but they should be targeted, checked, evaluated regularly for modifica‸㤵ons.
Q. What is food security? Explain in Indian context.
FOOD SECURITY BILL, 2013
Food security is availability, accessibility, affordability of food to all people at all times.
Amartya Sen Entitlements Combination of selfproduce, govt. supplies, market exchanges.
1995 World Food summit Poverty eradication is essential for food security.
Famine is characterised by widespread deaths due to starvation and epidemics caused by forced use of contaminated water or
decaying food and loss of body resistance due to weakening of body resistance.
Bengal Famine 1943 where 30 lakhs of people died due to increasing price of rice and low availability of food
Famines offset after independence by Green Revolution.
BACKGROUND: Indians spend 53% of their monthly income on food.
year before 1992: Universal PDS
year 1992: Revamped PDS; Backward Blocks
year 1997: Targeted PDS
year 2000: AAY (Antyodaya Anna Yojna for BPL households), 25 kg/month/family grains (increased to 35 Kg in 2002)
Anapurna Yojana; free 10 kg food grains to poor senior citizen
RATION CARDS Yellow BPL
Red/Saffron/Photo card APL
Antyodaya cards for extremely poor
Only 11 states have implemented NFSA.
Target groups
Vulnerable population
Beggars, labourers, Malnutritioned child, mothers. pregnant women, artisans, petty workers, migrants, disaster affected people etc
AIM
To curb malnutrition, hunger (Chronic and Seasonal Hunger) and cover 67% of the total population
*75% of food to rural and 50% to urban population. Mothers,children 614 age group to benefit. Midday meal, ICDS to ensure F.S
*35 kg/month/family to poor and 5 kg/month/person to others with Rice at Rs 3/kg, Wheat at Rs2/kg, Coarse grains at Re1/kg.
MSP fixed for three years.
*Grievance redressal to DGRO (District Grievance Redresssal Officer), State commission, Helplines etc. (Poor people may get trapped in the vagaries of desk to desk grievance shifts
prevalent in govt. offices)
*Food stamps to be distributed
*Cente allocating food grains to states>States transport it to PDS shops (expenditure,transport,storage state's liability (40% of costs states to bear) rest centre will pay)
>Identification of beneficiaries through UIDAI, responsibility of states to identify and notify centre which will then allocate grains accordingly. (centre does not guarantee F.S in disasters.)
Huge subsidy burden on govt. expenditure. Fiscal deficit will increase.Burden on tax payers, planned expenditure on infrastructure,social sector etc will have to be curtailed.
Less incentive for farmers to work hard and produce more. They divert crops from coarse grains to rice and wheat. The already low produce of pulses and its exclusion from NFSA
will cause further decrease in ts production.
Intensive utilisation of water leading to environmental degradation
Existing PDS is known for leakage, corruption
Benefits restricted to big farmers
Identification of households will be tough job, discretion of officials will need to be checked. Moreover poverty line is not clear. Though socioeconomic census have identified
target population. Chattisgarh, Bihar have improved
Ration cards prevent APL people to buy from PDS shops as issue price is more than market price. Hence, food stocks increase and are wasted. FCI (Food Corporation of India)
manages buffer stocks in granaries and sell them through PDS shops at issue prices lower than market prices. A proposal of not keeping food grains in godowns beyond 18 months.
Inequality among statesAll India average is only 1 kg/month; Bihar, Odisha, U.P <300 gm/month; A.P, Kerala 34 kgs/month
Latest issues
1.Political demoralisation
Governments preventing universalisation of NFS act.
Delayed implementation with no declaration of socioeconomic consensus in public.
2.Budget cuts
CSS scheme but budget cut in 201415
Mid day Meal Scheme cut from 13,000 to 9,000 crores
How to feed burgeoning population?
3.Limiting beneficiaries
Preventing new enrollment of households in Antyodaya Anna Yojana
Those who improve financially exclude them but do not include one.
Excluding pulses from PDS in nontribal areas.
4.Citizenship issue
Central government wants states to limit PDS to citizens only
What about marginalised migrants ?
5.Procurement issues
Chattisgarh which has the most efficient PDS deleted 7,00,000 beneficiaries.
Bureaucratic inertia and diminishing political credibility affecting NFS.
Reforms needed:
Pulses, edible oils must be included. It will not only provide options for consumers to eat but also incentives to farmers to grow crops and lower India's huge imports on edible oils.
More area should be brought into cultivation of pulses.
Procurement of pulses should be done through FCI.
Cash transfer scheme not feasible here, MSP,PDS,FCI will go and farmers will be impoverished.
PDS reforms in billcomputerisation, decentralisation, doorstep delivery ,taking examples of T.N, Andhra,Chattisgarh, H.P etc who have efficient PDS.
Other food security programs:
NFWP (National Food for Work Programme)
100 % centrally sponsored scheme where food is provided to states free of cost
Launched Nov, 2004 in 150 most backward districts
Manual unskilled labour+ wage employment
Subsumed with MNREGA
Cooperatives ensuring F.S
Fair price shops setup by societies to sell lowpriced goods to poor
Amul, Mother dairy etc
Maharashtra ADS (Academy of Development Science) grain banks
ICDS Integrated Child Development Services Program
100% CSS; decreasing budgetary allocation in ICDS to make states look after their children with more flexibility and untied funds.
Recent years mother's nutrition also added in the scheme
Gives children below 6 years a healthy meal free of cost with 500 calories and 12 gm protein at Rs 4/meal
Includes supplementary nutrition p[rogram (to be given by states), immunization, medical checkups, recommendation services, preschool nonformal education and nutrition &
health awareness.
Aided by UNICEF, CARE and World Food Program of UN
How to protect farmers from natural calamities?
Crop losses in sudden hailstorms or other causes are covered under various schemes of the government. Moreover, small and marginal farmers need extra support as they are more
vulnerable to losses.
Recent Pradhan Mantri Fasal Bima Yojana includes hailstorms, inundation.
FIIS (Farm Income Insurance Scheme)
Introduced in 2003, being revived in Gujarat.
Farmers are compensated according to certain norms.
The difference between a farmer's predicted income calculated through measuring of yield of the crop and price in the markets and actual income after selling crops is compensated.
Problems associated with FIIS
1.Poor penetration
Most of the farmers are unaware of these schemes.
Lack of formal credit system in villages, poor markets for sale of produce etc.
Use of mobile technology, satellitebased monitoring etc is needed.
A research published in EPW showed that farmers with higher education have more productivity than those with primary school education. It may be due to increased awareness on
programs, PDS, MSP, fertilizer use, organic farming knowledge etc
2.Poor implementation
Poor expertise, manpower in assessing crops is lacking
Soil health card schemes, fertilizer use guidance etc are recent steps in this field.
Evaluating correct market prices
Monsoon preparation 2015
IMD at 17 stations have nodal officers to guide farmers about monsoons arrival.
Expert advice at KCC
Seeds, fertilizers use, soil health cards are going to help
Power requirements
States to help each other so that farmers do not suffer.
Water reservoirs
Better storage capacity of water reservoirs will help in low rainfall; rainwater harvesting; MNREGA constructing bunds, ponds, pits for water storage
Buffer stock maintenance
Shift in farmers to cash crops like vegetables. fruits will need better storage facilities, cold storages etc
Food processing industries at vigil
Regular procurement and payment to farmers
DROUGHT
Drought year is declared by IMD.
When the average rainfall is less than 10% for a long period average and with more than 20% of agricultural area effected.
Agricultural drought When from midMay to midOctober with Kharif crops sown the average rainfall deficit is more than 50% weekly or for four weeks.
UP declares drought in 13 districts, Maharashtra too declared drought
There are three types depending on the impact.
Meteorological
This happens when the rainfall in an area is less than 25% of its longterm average.
Hydrological
A marked depletion of surface water causing very low stream flow and drying of lakes, rivers and reservoirs.
Agricultural
Inadequate soil moisture resulting in a fall in agricultural productivity.
When is a drought declared?
Traditionally, in India, district collectors recommend the declaration of a drought after obtaining crop production estimates. Generally areas with less than 50% normal sowing are
considered to be affected by a drought. The other markers of drought conditions include rain deficiency, normal difference in vegetation index and moisture content in the
soil.
What happens after the declaration of drought?
The government initiates planning and implementation of relief measures. States roll out contingency plans, which include measures to provide employment, food, drinking water,
and fodder for the livestock.
How does a drought impact the economy?
A drought impacts virtually all spheres of economic activity. Farm produce dips, water levels go down and the mortality rate of livestock and wildlife goes up. The economy takes a hit
as farm income falls, food prices accelerate, consumption demand increases and farm loan defaults rise. Its social costs include unemployment and migration.
A drought is assessed on five parameters—the availability of drinking water, irrigation water, fodder and foodgrains, and the energy sector requirement—according to the drought
management manual brought out in 2009 by the Government of India
Immediate efforts
Employment and livelihood through increased enrollment under MNREGA
Effective PDS distribution of food
Water conservation and recharge of tube wells
Exemption from crop loans
Long Term
Countering corruption in administration; Hoarding
Crop insurance a novel step but checking Patwaris who demand commission from farmers for reporting of accurate crop losses to government
Effective NFSA implementation in states with poor PDS like Uttar Pradesh
Way ahead
Need to integrate farming from crops to animal husbandry etc
Farming+Livestock is more profitable.
Agricultureinsurancewhich is only 20% is needed.
Existing schemes are National Crop Insurance Scheme, National Insurance scheme, Weather based crop insurance scheme
NOWCAST an ICT initiative under National Egovernance plan to disseminate early warnings of cyclones, hailstorms to farmers.
Use of AWS or Automatic Weather Satellites and LEO or Low Earth Orbit Satellites to determine crop loss at a fast pace and crediting losses to farmer's account through
DBT
The Ministry of Earth Sciences has constituted the Monsoon Mission of India to improve monsoon forecasts—on shortterm, seasonal and longer time scales. For example, the
IMD Indian Meteorological Department’s seasonal forecasts for the summer rainfall of 2015 were accurate and helped the agricultural and industrial sectors take adaptive measures.
Nomenclature changed by IMD; No Droughts in India now onwards
Technology needed
Tractors needed at affordable prices. India is the largest manufacturer of tractors in the world but 8th in usage.
Kisan Call centres are revolutionary and dispense information in 22 languages.
Soil testing machine developed by PUSA gives soil health status in 1 day. It costs Rs 30,000 but one machine is enough for a village.
Scientists who have become white collar need to work on fields and help farmers.
Eprocurement of crops is needed bypassing traditional mandi system.
Pusa hydrogel which costs Rs 1200/kg should be subsidised to decrease water requirement.
Certified seeds, fertilizers, needed. Adulterated ones as pointed by Swaminathan committee should be checked.
642 Krishi Vigyan Kendra in the country which are run by NGOs, Agricultural Universities. Kisan melas are organised where
technology is displayed for helping farmers.
China, Bangladesh have less land in cultivation than India but more productivity.
Improved technology has helped them. Indian farmers are not efficiently trained and helped by government. Land holdings per
farmer are decreasing and is 0.8 hectare average at present.
Need to focus on small and marginal farmers of the country.
MS Swaminathan Committee Report
http://www.prsindia.org/parliamenttrack/reportsummaries/swaminathanreportnationalcommissiononfarmers662/
LIVESTOCK
Rashtriya Gokul Mission to promote indigenous breeds.
7 CSS & 7 central Sector Schemes subsumed
Budget 201617
(850 crore) Four dairying projects – ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘EPashudhan Haat’and National Genomic Centre for indigenous breeds – (Helps
diversify Farming, assured income, increased sustainability – Reduce distress)
With 2 successive droughts and ban of cow slaughter in Maharashtra; farmers in distress are finding it difficult to maintain cattle; fodder requirements are not being met; low yield could
have been offset by selling cattle to slaughter houses; also new breeds or young animals could have been bought.
This is a crisis mounting day by day forcing farmers to sell cattle at low prices thus causing a sharp decline in costs of cattle in market.
Q.Green Revolution skipped pulses. Elaborate.
Pulses production declined in India with low acreage.
Demand of pulses increased with increasing population.
Imports increased to approximately 2000 thousand tonnes annually.
Canada (yellow/green peas,lentils), Myanmar (tur, green gram), Australia (chana), USA export to India
Tanzania, Malavi, Mozambique (tur), Korea etc Now imports are 4 mn tonnes annually
Exports increased till 2006 but with increased domestic demand banned in 2006.
Bangladesh, Nepal, Bhutan exported pulses.
Reasons
1.More focus on rice, wheat, oilseeds, maize in GR.
High yield and productivity of these crops gained over pulses to feed hungry population.
2.Per capita consumption decreased with rising prices.
3.Low MSPs made pulses production uneconomical for farmers.
4.Import duty almost zero on pules to lower domestic prices.
5.Yields lower
Way ahead
1.Acreage to increase
2.Irrigation facilities
3.Water scarcity in offing may push for less water intensive crops like pulses.
4.High MSPs in 201314 making beneficial for farmers to grow.
5.Will increase fertility of soil as Nitogen fixing organisms in leguminous pulses
6.More S&T, research in variety of pulses.
Pulses usually of 1 year duration; new varieties of 6 months and research is on to develop 90 days crops; short duration crops more remunerative.
7.Counseling farmers etc
Setting up of SAZs or Special Agricultural Zones where land is to be used only for farming.
Drought Prone Area Program
(DPAP) is the “earliest area development programme” launched by the Ministry of Rural Development of Central Government in 197374 to tackle the special problems faced by those
fragile areas which are constantly affected by severe drought conditions. These areas are characterized by large human and cattle populations which are continuously putting heavy
pressure on the already fragile natural resources base for food, fodder and fuel.
In 197778,was launched for hot desert areas of Rajasthan, Gujarat, Haryana and cold desert areas of Jammu & Kashmir and Himachal Pradesh.
Similarly, in 1989, Integrated Watershed Development Programme (IWDP) was launched under the aegis of National Wasteland Development Board for development of
wastelands on watershed basis.
In this context, In 1994, a Technical Committee under Chairmanship of Professor C.H. Hanumantha Rao was appointed to appraise the impact of DPAP / DDP and suggest
measures for improvement called ” Haryali Guidelines“.
11th Plan has stressed upon developing concerted action plans for rainfed areas in close consultation with the State Governments.
Since 2009, the three watershed programmes of the Department of Land Resources namely DPAP, DDP and IWDP have been consolidated as a comprehensive programme named ‘
Integrated Watershed Management Programme.
Accelerated Irrigation Benefit Program
199697 to provide central assistance in the form of loan to State Governments to complete those ongoing irrigation projects which were costing Rs.1000 crore or above
and were in advanced stage of completion.
From 200506 onwards, central assistance is now provided in form of grant till 201112
The key reasons as to why both CAD and AIBP schemes failed to deliver (CAGPAC report 2011 showing scam) is that the work is confined to construction of the main canal.
Unless distributory network is properly in place, the main canal is useless. Poor planning and lack of proper monitoring by Central Water resources ministry has been main reason for
these under achievements
RKVY or Rashtriya Krishi Vikas Yojana
State Plan Scheme of Additional Central Assistance launched in August 2007 as a part of the 11th Five Year Plan by the Government of India.
Launched under the aegis of the National Development Council , it seeks to achieve 4% annual growth in agriculture through development of
Agriculture and its allied sectors (as defined by the Planning Commission (India)) during the period under the 11th Five Year Plan (2007–11)
States have to allocate considerable resources to agriculture; then only central government would disburse funds
Procurement of rice
Done in two ways; govt. buys from farmers and give to mills for parboiling
Mills buy from farmers and sell to government
Rice Bran used for oil, husk as biofuel or making starch, alcohol being done illegally causing losses to government.
FPOs
Farmer Producer Organisations
US FPOs of 500 billion $ as compared to India's only one cooperative with 3 bn $ valuation
Not in good shape; only AMUL flourishes whereas nonmilk farm products get delayed and low remuneration to farmers.
Lack of capital; Banks ask for collaterals, KYC
RBI should declare FPOs as priority sector
Lack of managerial skills
Hiring skilled professionals
Non conversion into equity limits growth
Cooperativecorporation partnership is needed. Two or more cooperatives selling in a closed group can give initial capital.
Self help groups like funding from banks is needed.
Tax sops from government; will double profits.
NITI AAYOG Recommendations
Price Deficiency Payment mechanism
Fixing the floor of prices by calculating three year's average; compensating farmers in ups and downs of prices by crediting directly into their account
Many crops are not procured at MSPs; need to increase coverage of MSP to other crops like pulses, oilseeds
Procuring vegetables like milk is procured by cooperatives.
Using Essential Commodities Act, 1961 judiciously; it has prevented stockholding and storage as shopkeepers fear hoarding charges.
Genetic modification of crops to make them hardy and resistant
Weaning of significant chunk of small landholders from agri to nonagri jobs; communes like farming
Urea subsidy decanalisation and DBTs to farmers instead.
Agricultural Extension Services
According to the 68th round of the National Sample Survey (2013), only 15% of the farmers sourced technical advice from extension workers, Krishi Vigyan Kendras and
agricultural universities put together. An overwhelming 70% were dependent on “progressive farmers,” commercial agents and radio/TV/internet for agricultural
knowledge. This shows the pitiable status of our agricultural extension system.

The Agricultural Technology Management Agency (ATMA) has an integrated structure, which includes specialist scientist as well as farmer organisations and NGOs in its
ambit. A reformed ATMA can become the focal point of agricultural transformation in agriculturally backward states of India
Dissemination of information related to technolgy, implements, new schemes etc to farmers and training them to manage agriculture efficiently.
Managed by National Institute of Agricultural Extension Management under Ministry of Agriculture
Kisan clubs, Kisan Vigyan Kendras, Kisan Helpline booths, Krishi Darshan, Krishi channels. Agricultural universities.
JharkhandSameti an autonomous State level institution for consultancy services.
With the falling size of landholdings and lower market surpluses, small holder farmers (numbering close to 120 million) are increasingly trying to come together and find new ways
for establishing links to markets. Farmer Producer Organisations (FPOs) have come up as an option but for them to be viable, several support measures and policy changes are
needed. These cover areas of financing, storage and transportation, risk minimisation and value addition. Agencies like the Small Farmers AgriBusiness Consortium
(SFAC) have been active in implementing programmes for supporting FPOs and these efforts need to be sustained and considerably expanded.
SAVE & GROW
“produce more with less”.
The technique focuses on conservation agriculture, maintaining soil health, selecting crops with higher yield potential and greater resistance to climate change, efficient water
management and pest control.
New technologies and practices such as higheryielding varieties, precision irrigation, needsbased fertilizer management, biopesticides and directseeding without soil tillage; Zero
tillage reduces soil erosion; Kazakhastan is the largest zero tillage wheat producing country in world.
Ricefishing; fisheries in flooded rice fields; no need of fertilizers; remuneration from fish sale
Pulses, pigeon peas and chickpeas to replenish soil with nitrogen; improve soil health by secreting organic acids and making Phosphorous more available; vegetables, horticulture,
animal rearing
SDG goal of eliminating poverty and hunger; climate change leading to decreased production of rice, wheat, maize which can be salvaged with Save and Grow
Aerobic rice cultivation
No burning of rice husks but drilling holes and putting wheat seeds inside ground; conserve water
Nutrient based crops; Green Revolution failed to cure nutrition problems in India
RBI Committee on Medium term path on Financial Inclusion Report Dec 2015
Phase out interest subvention scheme
Money lending rampant; growth to 44% of total credit; Farmers take loan cheap at low interest rate (ceiling of 3 lakhs, interest rate of 7% or 4%, even 0% in some states) and deposit it in
banks at 8% interest; become money lenders.
Hence replace with an universal Insurance scheme
Using telecom, post offices, banks, payment banks for last mile service delivery
Linking aadhar with biometrics and bank accounts
DBT in subsidies; inputs per hectare based rates
Use of JAM trinity to prevent dormancy in accounts of PMJDY
Crop insurance scheme
Nonagri jobs; Food processing sector
Pathway to improved productivity in agriculture
Expansion in the share of irrigated areas,
investments to improve efficiency in water use,
suitable pricing of water,
mechanization of operations of agriculture to lower costs and reduce wastage,
seed development for improved varieties to increase yields,
debate and address the concerns about introduction of genetically modified seeds in a time frame of three to six months,
efficient use of fertilizers and pesticides through improved practices,
market driven pricing of fertilizers with no restriction on imports,
shift to direct benefit transfer of fertilizer and other agriculture subsidy,
distinguish and target subsidy to the farmer and that (subsidy) to inefficient operations of agriculture inputs,
credit access to farmers for investments at rates that the financial institutions pay for their deposits,
ringfencing of agriculture related operations of banks from NonPerforming Assets (NPA) to nonagricultural operations,
replacement of intermediation of agricultural finance with direct benefit transfers
development of real time information system to back an improved timely agricultural advisory services
CROPS In STATES
Bajra (millets): Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh and Rajasthan.
Barley: U.P., Bihar, Haryana. Its cultivation requires cool climate.
Cardamom: Karnataka. India is the largest producer of cardamom in the world.
Cashewnut: Kerala.
Cinchona: Tamil Nadu (Nilgiri Hills); West Bengal (Darjeeling).
Coconut: Kerala is the leading producer of coconut in India. A coconut tree normally yield 6070 nuts in a year.
Goa government felling coconut trees. Much of the unused lands have laterite soils which can be used for development processes like the brewery plant proposed in a
coconut orchard. Using up green land is not good. The Government passed Investment Promotion Act which mandates feeling of trees in development zones without any
approval. Horticultural trees in India can be cut after they get diseased or old as compared to normal forest trees which require state's approval.
Coffee: Karnataka, Tamil Nadu (Nilgiri Hills) and Kerala. It is a tropical shrub.
Cotton: Gujarat, Madhya Pradesh, Tamil Nadu, Punjab and Maharashtra.
Cotton Seeds: Maharashtra, Punjab, Madhya Pradesh, Andhra Pradesh and Tamil Nadu.
Gram and Pulses: U.P., Madhya Pradesh, Haryana, Punjab, Maharashtra and Karnataka.
Groundnut: Gujarat, Madhya Pradesh and Andhra Pradesh.
Hemp: Maharashtra, Madhya Pradesh and U.P.
Jute: Assam, West Bengal, Bihar and Orissa.
Linseed: Madhya Pradesh, Bihar, Orissa, U.P., Maharashtra and West Bengal.
Maize: U.P., Bihar and the Punjab.
Mustard and Rapeseed (Sarson): U.P., West Bengal, Punjab, Bihar and Orissa.
Poppy (opium plant): U.P., Madhya Pradesh, Punjab, Himachal Pradesh,Jammu and Kashmir.
Rice: Andhra Pradesh, West Bengal, Madhya Pradesh, Bihar, Tamil Nadu and Orissa. Rice has largest acreage in India.
Rubber: Kerala, Tamil Nadu, Karnataka.
Saffron: Jammu and Kashmir. It is obtained from the stigma of the saffron plant.
Silk: Karnataka, Jammu & Kashmir, West Bengal and Assam.
Spices: Pepper in Kerala and West Bengal; Chillies in West Bengal, Tamil Nadu and Maharashtra; Cardamom in Karnataka and Tamil Nadu; Betelnuts in West Bengal and South India;
Turmeric in Andhra Pradesh, Ginger in Kerala
Sugarcane: U.P., Bihar, West Bengal, Punjab and Maharashtra.
Tea: Assam, West Bengal, Kerala and Tamil Nadu (Nilgiri Hills), Uttarkhand (Dehradun) and Himachal Pradesh (Kangra Hills).
Tobacco: Andhra Pradesh, Gujarat, Bihar, U.P., West Bengal, Maharashtra, Tamil Nadu and Karnataka.
Wheat: U.P., Punjab, Haryana and Madhya Pradesh. To some extent in Bihar, Rajasthan and Maharashtra. It is sown in OctoberNovember and reaped in April.
Airways, Ports, Railways,Roads,Power, Renewables, Telecom and Coal
NIIF:
The Union Cabinet, in July 2015, had approved creation of National Infrastructure and Investment Fund (NIIF) as a trust that will have a corpus of Rs 20,000 crore.
The Fund aims to attract investment from both domestic and international sources.
The government’s contribution would be limited to 49% of the subscribed capital.
The government will seek participation from strategic investors such as sovereign fund, quasi sovereign funds and multilateral or bilateral investors, which can help leverage
this fund to many times; Russia, Singapore, UAE, UK interested
Cashrich PSUs, pension funds, provident funds, National Small Saving Fund will be able to pick up stake in the fund.
The government has budgeted to contribute Rs.20,000 crore to the fund in the current fiscal year while another Rs.20,000 crore is expected to be raised through sovereign wealth funds
Government's share would not increase than 49%; India Infrastructure Finance Company Ltd as investment advisor for 6 months and IDBI capital market services Ltd as advisor to NIIF
trustee Ltd for 1 year
10 crores in per km of normal speed railway; 79 crores in per km of expressways; 100120 crores in per km of high speed of railways
Road safety
The First Global Ministerial Conference on Road Safety was held in Russia in 2009.. Thereafter, the General Assembly of the United Nations adopted a resolution for "Improving
Global Road Safety", in 2014. The resolution expresses a concern about the fact that only 7% of the global population is protected by appropriate traffic laws, which provide
mandatory use of helmets, seat belts and protective devices for children in vehicles, prohibition of driving under the influence of alcohol, speed control and prohibition of the use of mobile
phones while driving, including sending text messages, which are the five keyfactors of risk on transit
According to WHO’s Global Status Report on Road Safety 2013, 35 countries, accounting for nearly 10% of the world population, have passed laws tackling one or more of the five
keyfactors of risk between 2008 and 2011. However the number of countries with comprehensive legislation about all five keyfactors of risk remained constant at 28 (representing 7% of
the world population, or 449 million people) since the last WHO report in 2009. The goal of the Global Plan is that, at the end of the Decade of Action, the number of countries with
comprehensive legislation on the subject increase by 50%.
The 2nd High Level Global Conference on Traffic Safety in Brasilia– Time of Results emerges from the UN resolution on “Improving Global Road Safety”. Led by the World Health
Organization (WHO) , the conference aims to strengthen the commitment of the international community around policies, legislations, measures and actions that can halt the
factors that cause 1.2 million deaths worldwide and physical trauma to another 30 to 50 million people due to traffic accidents every year,. The fatalities primarily affect children and
young people from 5 to 29 years, and young men are the main victims.
NHAI to monitor road projects with the help of ISRO and NECTAR or North Eastern Centre for Technology Application and Research, under Do S&T
MoU with NRSC or National Remote Sensing Centre; use of UAVs by NECTAR for aerial images of infrastructure planning
Supreme court will issue guidelines to protect Good Samaritans who help accident victims.
How to get capital?
Budgetary support + Commercial borrowing through bonds etc
Interest rates is around 13% excessively high as compared to US, Japan.
Target for private investment for 12 th 5 year plan is 48%, 11th 5 year plan was 37 % and 10 th 5 year plan was 22%.
Power sector in losses, as projects get stuck private players cannot rejuvenate.
Way ahead
Run on time, easy approval fast completion.
Land bill will help
NUTP or National Urban Transport Policy 2006
Promote public transport
Bringing people at centrestage of development
Roadways and woes
Cities facing congestion, air pollution, accidents
Energy security at peril with increasing motor vehicles, more import of crude oil; Foreign exchange reserves deplete
Roads and Highways
National Infrastructure Development Corporation Limited
SPV created by MoRTH to build highways, roads all over the country with special focus on NE
96,000 km of highways to be taken to 2 lakh km
405 of traffic on 2% national highways and as a result 5 lakh accidents take place every year
PPP a failure?
Projects lying stationary
Toll facilities like in Gurgaon was an impediment.
Cost escalation due to late approvals by government, land acquisition made private players nonprofitable
Government apathy after launching PPP
Environmental approval
Arbitration proceedings which needed dispute resolution.
EPC (Engineering Procurement Construction)
Plug and play model
Government invests totally and contractors carry construction
Cost of cements reasonable as cemented roads more durable.
Saves time as timely completion, approvals by government.
Less costs involved
BOT (Build Operate Transfer)
Private players invest totally and levy toll till costs are recovered.
Delays, tardy government approvals; escalating costs due to inflation, stalled projects
Projects made unviable and defaults in payment to lenders; NPA of banks increase
Hybrid Annuity Model
Govt. pays 40% of project cost, 90% of approvals
Saves cost as private player has to arrange only 60% of investment
Banks lend with government involvement and low costs involved
Government takes toll tax (NHAI) and credits to private player.
Presently 1000 km awarded under BOT and 3000 km under EPC
Other ways of transport:
BRT or Bus Rapid Transit System or High Capacity System
7 BRTS projects Successful in Pune, Chennai but failed in Delhi
Mass movement of people; safe; low pollution; less congestion
580 km of BRT is under development in 16 cities
Metro rail system in 10 cities apart from Delhi in development; Hyderabad, Nagpur, Mumbai, Bengaluru, Chennai
Managing IPT or Immediate Public Transport Systems like autoricksaws, taxis, car pooling systems
ericksaws
NonMotorised Transport like bicycle; Copenhagen, Netherlands
National Action Plan on Climate Change in National Mission for Sustainable Habitat 2009 focuses on greater use of nonmotorised transport for decreasing GHG emissions.
Intelligent Transportation System
Single card for payments at metro, bus stops and other financial services; Smart Mobility Payment Card; Kochi Metro Rail Limited Contactless storedvalue card
Green Transportation Hierarchy
Pedestrians at the top rung of the inverted pyramid.
Autofuel Policy committee, 2013
Sulphur levels in fuel at 10 ppm by 2020
Bharat VI by 2020
Vehicles to have onboard refuelling vapour recovery systems (OREVR)
Emission standards determined by CPCB and MOEFCC
HLC on National Transport Development Policy in Jan, 2014
Regular vehicle test with global standards
New Auto fuel Policy Committee every 5 years
National Automobile Pollution and Fuel Authority
Inspection and certification regime to ensure safety
Urban Transport Funds at National, state and city levels
Funded by Green cess, surcharge, purchase of new cars
LWE Areas
INTELLECTUAL PROPERTY RIGHTS
Patented Medicine
Under TRIPS, Indian government has flexibility to issue manufacturing licenses to pharma companies for drugs unaffordable to large sections of society.
USTRUS Trade Representative put India in "priority watch" list whose IPR policy warrants scrutiny every year.
What government is doing?
IPR think tank
It is being proposed to establish an IPR thinktank to carve out National IP rights Policy.
Section 3(d) of Patent act of 1970
Prevents evergreening of patents for a similar medicine with trivial changes
1..West wants to dilute it.
2.This will allow pharma companies to market new drugs without making any new inventions and only for profits.
WHY
USA, EU are knowledge based economies with >35% share of GDP from IPR related industry. Hence, IPR is very important to them.
Global IP index, released by US Chambers of Commerce put India at 29th position in 30 countries below China, Peru, Nigeria.
India has no regulatory data protection
Labour Laws
Govt. has amended factories act 1947. Rajasthan was quick to implement its own labour laws.
It was done with aim of increasing FDI and industrial growth.
Gujarat recently amended many laws and sent it for Presidential assent
Issue
Trade unions, workers were not consulted with new laws pall of gloom over labour rights.
ILO convention 144 requires consultation between employers, government and workers in deciding labour reforms.
Public Transport System
India has burgeoning urban population; 377 million in 2011 which is expected to increase to 600 million by 2030.
Issues
Top down approach
JNNURM led to bus facilities, mass rapid transits and metro stations; but the demand of public was not met completely
Many of the dense places were only connected leaving behind the others; This kept many people dependent on selfowned cars, two wheelers or
Intermediate Public Transport (IPT) like Autos, taxis
In decision making of public transport transformation of cities; IPT was not consulted which keeps the planning ineffective in application.
Bus services and taxis run at dense and nondense places both with the latter more active in dense areas for more profits. As a result, bus services and auto taxis of IPT compete with
each other; IPT earns profits but bus services remain vacant and at loss
Hence an integrated approach of public transport is needed; buses should have demarcated transport and IPT should have other areas demarcated for them; they should collectively
provide transport rather than compete with each other.
Urban Road safety Bill, 2014
India has 1% of global roads but 10% of global accidents
4% of India's GDP is lost in road accidents.
With present condition
1. Issue of Driving licence on discretion Biometric system and a unified portal to register vehicles and licenses.
No predriving tests, proper age, physical checks etc done.
Moreover, Online issue of licenses like Passport seva kendras is not there.
Corruption, middlemen in registering and issuing
Bill envisages National Information System for issuing licenses.
2.Reduce road accidents.
No single authority to deal with road accidents,offences, speeding, drunken driving.
The bill demands setting up of NATIONAL TRANSPORT AUTHORITY and state transport authorities.
Road designers, engineers come under scrutiny.
Weighing machines at toll plazas to check overloading.
3. Heavy fines
fine (Upto Rs 50,000) and jail on drunken driving, accidents to child and women
demerit points on repeat offenders
Under the existing Motor Vehicles Act, 1988, the fine for allowing an “unauthorised person” (the provision does not mention a minor) to drive a vehicle is Rs 1,000 or three
months of imprisonment or both. However, the draft bill enhances the fine to Rs 10,000, mentions a “minor” is an unauthorised person, and also provides for impounding the vehicle
for two months along with a system of penalty points, which ensures that repeat offenders could lose their licences.; an underage driver killing a pedestrian by a posh car; a repeat
offender and parents complicit in giving him car inspite of this fact
4.Increased investment
Outsourcing for driver licenses will create jobs.
Smooth transport policy will increase investment and prevent smuggling, illegal works as each vehicle is registered along with registered drivers.
5.Madatory crash tests from October 2017
This warrants use of air bags which are quite costlier in India as parts are imprrted.
6.Introduction of safety norms
only $300 safety content per vehicle in India as compared to $3000 or more in Europe and other developed countries
ABS for twowheelers above 125 cc and CBS for below 125cc; market to grow; bikes may get costlier; innovation needed to make t cheap; economies of scale may help
Problems
1.Accidents more due to poor roads
To control road accidents, metalled and well designed roads with speed breakers at requisite areas etc are also needed.
2.Corruption
Heavy fines may lead to more corruption.
Truckers would bribe officials and carry on.
3.Pressure on Indian consumers
Ensuring safety standards on vehicles entails money
Indian consumers are not wealthy. For ex Airbags would increase costs by Rs 30,000.
Other initiatives
Bloomberg Philanthropies promised 125 mn $ to Mumbai and India for road safety.
World ABnk Road Safety programmes has studied 4000 miles roads in India.
Bus Rapid Transit is needed.
For ex Macrobus in Mexico has reduced accidents
National Highways Protection Services
NHARSS National Highways Accident Relief Scheme
1.Provides assistance to road accident victims with availability of cranes, ambulances to rescue victims during the golden hour (first 48
hours).
2.A new plan is in making to support upto Rs 30,000 for medical care to nearest medical centre.
3.Pilot project on
NH8Gurgaonjaipur
NH8AhmedabadMumbai
NH33RanchiRargaonMahulia
PMGSY or Pradhan Mantri Gram Sadak Yojana
PMGSY 1 and PMGSY II (only those states eligible for funding which have completed phase I construction)
ADb, WOrld Bank funding
Single lane width of 3.75 m to all areas with population above 1000 in plains or above 500 in tribal, desert and hilly areas by 2003 and above 500 in plains and above 250 in hilly, desert,
tribal areas by 2007
Issues
Population criteria not effective; needs based approach better
Construction of roads and accessibility; roads and village distance of maximum 0.5 or 1.5 km not feasible in desert areas
High costs, delays; poor quality material; leakages of materials; inadequate funding by states
Maintenance; poor drainage; Phase I roads are more than 12 years old
High load of traffic; road safety?
POLLUTION NORMS
Introduction of BS V by 2019 instead of 1 April 2020 and BS VI by 2021 instead of 1 April, 2022
Govt. announced upgrading of vehicles to BS VI by 2020 from BS IV skipping BSV
BS V is meant to lessen particulate matter, PM 2.5
BS VI will reduce NOx; Sulphur content will remain at 10 ppm in both though 50% less than BS IV (50 ppm for BS IV; 150 ppm in Petrol and 350 ppm in diesel in BSIII)
India has BS IV in 30 cities and rest of the country has BS III; deadline for BS IV for the whole country is 1 April, 2017
Issues
1.High cost of fuel and vehicles
Research and development in engine production; Euro VI in Europe can be replicated in India though gradually
Oil companies are ready to pump Rs 28,000 crores for better fuel
Burden to consumers; less vehicle sale which may hurt manufacturers
BS V needs introduction of DPF or Diesel Particulate Filter which will require large bonnet size; it needs 600 degrees celsius to burn soot; with more injection of diesel it may cause fire
if not properly tested; 6,00,0009,00,000 kms before transition which requires atleast 4 years; haste may make waste
BS VI introduces Selective Catalytic Reduction (SCR) which requiress injection of aqueous Urea solution (Aus 32 which contains ammonia). Fuel pumps have to sell Aus 32 too which
also warrants time. Moreover, if both these technologies are included together at a time, errors in systems cannot be easily found.
2.Time limit
PM 2.5 has to be decreased before NOx; warrants time and not sudden approach
Sumitra chaudhary committee on Auto Fuel vision and Policy 2025 report; new fuel norms, appropriate levies to facilitate transition to cleaner fuels.
Footpaths pavements public transport etc
Biofuels; Flexifuels
Sugarcane diverted to production of ethanol which will be blended with petrol; 5% to 10% in new policy
Ethanol is energy efficient; nonpolluting
Only problem lies that in normal engines it sticks to the engines on oxidation like gums; degrades rubber
New engine needed; Brazil uses flexifuel
Pump stations will have to be established; costs of vehicles may increase
Issues with food security; farmer income on diversion to ethanol
National Policy on Biofuels in 2009 stressed on production from nonfood sources on wastelands
Sugarcane is water intensive; less land more irrigation; Maharshtra's Marathwada reeling under drought; more pressure on land and farmers indirectly
A policy well thought & discussed among stakeholders is needed.
Jatropha, a weed known for growth in drought like conditions failed when commercially planted
Electric vehicles; Maharashtra to waive VAT, registration charges and road tax on EVs
Use of ICT to manage public transport in cities; IIT Madras and Urban Development Ministry building an app which will give commuters exact location of bus, time of travel between two
sections; a smart solution for public transport
JNNURM specified on ITS or Intelligent Transportation System; AMRUT, Smart cities project should work on this
Airways
Passenger traffic in 2020 will touch 420 million as compared to 190 million in 2015
India is a least penetrated airmarkets in the world with 0.04 trips percapita per annum as compared to 0.3 of China and 2 of USA
5/20 rule
Aircrafts have to have atleast 20 aircrafts and 5 years of domestic experience before flying on international routes.
Against
Open business; no discrimination between new and old entrants
Beneficial to customers; migrant workers who hail from less well off backgrounds; increased competition will decrease prices
For
Level playing field; other airlines had to follow the rule; what so special about new entrants?
Experience is necessary before long distance flights are operated
Proposed changes
1. Need minimum 5 aircrafts
Minimum 5 aircrafts with better domestic credits.
Domestic Flying Credit (DFC)
Minimum of 200 crore DFCs before flying internationally.
An airline with five A320 size aircrafts can have 150 crore DFCs in a year.
2.Purchasing DFCs
Airlines can purchase 2025 %DFCs from other carriers.
Flying to places in Category II, IIA will give more DFCs.
This will incentivise carriers to fly to small towns.
Opeartors of small aircrafts can sell there DFCs to big airlines.
Draft Aviation Policy
RCS or Regional Connectivity Scheme to fix Rs 2500 fare and tax sops for connecting isolated regions
The idea is to break the stereotype that airways are made for rich; creating awareness among people about it being a time saving fast connecting transport.
Tax sops like exemption from custom duties on parts, no tax for initial years of launch
Better MRO or Maintenance Repair and Overhaul service at concessional rates in India; repairs are done at foreign centres; 15% cost on repair.
High tax on ATF; variability in states; a uniform policy with lower taxes is needed.
Way ahead
Separating navigation services and airport management for more focus and no conflict of interest
Improving transit services of domestic, international airports; separate lounge, hangars for transit aircrafts
Bringing nonscheduled airways operators, 122 such operators with 400 aircrafts in mainstream; they give last mile connectivity
Private sector running airports
Three ways to reform aviation sector; Doing away with 5/20 rule; removing bilateral airways agreements; increasing FDI to 49% as done in the budget from 26%, instead making it fully
privatised will foster more competition.
5/20 rule prevents competition; airlines enjoy monopoly; new rules could decrease air fares and increase capacity
Bilateral pacts prevent use of air routes by all airlines; monopoly arises and many seats remain underutilised; better to promote competition and allow any certified operator to fly
anywhere; Protectionist policy needs to go.
Exemption from MAT to prevent accumulated losses
Lease of aircrafts should be income tax free; all lease transactions take place outside India sisnce it is taxable in India; an exemption would help domestic leasing services
ECBs limit of 1 nillion dollars should go; limit on the basis of revenue generation, profits of airlines; sevicing this borrowing through domestic earnings
High cost of ATF; high taxes; but states get less revenue through charging high sales tax; need to rationalise taxation on ATF
MROs are charged service tax (14%)/ VAT; hence aircrafts go to cheaper MRO centres like China, Sri Lanka, Dubai; need to create India as a potential market too.
ICRA report
Setting up a National Civil Aviation Training Authority
Cargo and Ground Handling Sector Skill Council
Building a robust fund mechanism for the above
Identifying skill requirements for MRO, cargo and ground handling
HRIDAY (Heritage city development and augmentation yojana)
Under Ministry of Urban development
India has 32 UNESCO sites, 2nd in Asia and 5th in the world.
500 crores project for 12 cities in 1st phase
Amritsar, Varanasi, Gaya, Puri, Ajmer, Mathura, Dwarka, Badami, Velankanni, Kanchipuram, Warangal and Amaravati.
To be joined in PRASAD Piligrimage Rejuvenation and Spiritual Augmentation Drive.

100 crore project for infrastructure development
Under Ministry of Culture and Tourism
Railways
21,000 plus trains, 23 million passengers per day
8000 freight trains per day; 3 million tonnes freight every day
network of 65,000 Km
Rail coefficient or percDMFentage of public using railways is 30% for passengers and 10% for freight
Benefits over roads
low environmental damage; 17 gm CO2 per PKm as comapred to 84 gm per PKM of road
low energy consumption; 75% to 90% less energy for freight traffic and 521% les for passenger traffic
Low Financial costs
Low Accident costs; 45 times less costlier
Problems
The accident rate per million Train Kilometres over IR is 0.201 for 201213 and 0.147 for 201314 compared to o.210 over Europe for 2012. Fatalities are 0.240 for 201213 and 0,147 for
201314 as compared to 1.033 for Europe in 2012
1.Fund crunch
Passenger fairs are subsidised by freight charges.
Hence, there is a need to increase fares.
Funds allotted in budget of 8.5 lakh crores which goes to annually 1.7 lakh crores
But funds are 1.1 lakh crores. Hence, a plan of attracting investors in particular framework is needed.
China succeeded due to three times more public investment. There is a need for the same in India as IR is only 1% of GDP
Re 1 invested in IR adds Rs 3.5 to economy.
PPP investment, FDI did not succeed.
#Poor connectivity invested through PPP
#TATA in Dhamar port, tariffs diluted.
FDi considering financial interests.
Will only succeed if private parties have interests.
A clear demarcation of responsibilities is needed.
For ex Locomotive factories in Madhepura (FDI) didn't succeed.
Inhouse factories like Chittranjan Locomotive factories should be manufacturing coaches.
Implementation is needed.
2.Illegal activities
Chain pulling, travelling without tickets
3.Pending projects
No land acquisition problem, but political inertia prevents.
4.Poor connectivity in Northeast
5.Privatisation not supported by railways.
Against privatisation
1.people travel in sleepers more.
2.Capacity augmentation is needed.
3.Bullet trains etc eat up budget of railways.
Kakodkar committee
Investment of Rs 1 lakh crores in five years needed.
High level safety committee report.
Elimination of manned and unmanned crossings.
Setting up a Railway Research council
Taking safety regulation out of railways to a separate body.
Substitute ICF (made by I.R, 160 kmph speed, used in other trains) coaches with LHB (made by Alstom Germany, kapurthala coach factory, more speed, more safe does not turn
turtle on derailment, used in Rajdhani, Shatabdi) coaches
Debroy Committee
Bringing in competition in Indian railways sector through liberalisation.
Separation of infrastructure from core business
Railway police, CRPF etc which are selected by General Managers, Divisional Mangers in railways should be phased out and state government should be made responsible for it.
Regulator is required for accounting, management in PPP projects where risks are not shared equally.
(Indian Railways Authority)
Getting railway out of hospitals, schools etc
But what about railway staff who work in periphery? Better schools not there.
Rationalisation of staff as 7th pay commission will put extra burden
Technical skills, technology is needed.
Depreciation Reserve Fund should be given more money, dividend policy be revised etc
Channelising dividends of PSUs, private investment, FDI in railways.
Way ahead
Public investment is needed as depicted in Economic Survey 201415
More or equal share of railways in plan expenditure than roads.
Better tracks, high speed trains to free traffic for freight carriage.
Separate infrastructure and service providers
Solid waste disposal system; Biotoilets
Improve connectivity by joint ventures and SPVs between Ministry of coal, state governents, private companies
wifi at stations; Google at CST RS, Mumbai
E services; ecatering, ebooking tickets etc
More allocations from central road Fund which gives only 12.5% at present as comapred to 50% to roads
This will help in faster elimination of crossings.
For preventing accidents, TPWS or Train Protection and Warning System, ATP or Automatic Train Protection systems
Track renewal, maintenance and repair
FREIGHT CORRIDORS
Golden Quadilateral
DelhiMumbaiChennaiKolkata
10,122 km and 55 % of revenue earning of freight traffic
Heavy coal movement; international trade
Eastern corridor
1839 Km long connecting Ludhiana in Punjab to Dankuni in West Bengal passing through Bihar, UP, Haryana and Punjab
Electrified Double track section and single track section
Coal, steel, cement, fertilizers
Western Corridor
1500 km
Connecting JN Port near Mumbai with Dadri and passing through states like Haryana, Rajasthan, Gujarat and Maharashtra.
Support by Japan International Coperation Agency and World Bank
Dedicated Freight Corridor Corporation of Inia Ltd to complete it by 201718.
Effects
Fast transport
Reduced costs
Increased commercial activity
Future corridors
eastwest, Northsouth, east coast, southern corridors
Diamond Quadilateral
High speed railways connecting DelhiMumbaiKolkataChennai
543 km MumbaiAhmedabad on development
Rs 80120 crores on bullet train per km while Rs 1012 crores for ordinary tracks and Rs 150200 crores for metro tracks
NTDPC (National Transport Development Policy Committee)
increase rail freight transport share from 35% to 50%
COastal shippinh and IWT increase its share to 20% and road decreases its share to 30%.
HIGH SPEED RAILWAYS
Issues
Environmental Degradation along the route
Dislocation of people
Noise Pollution
Regionally imbalanced development
Rs 980 billion, 505 km segment between Ahmedabad Mumbai for bullet trains with JICA or Japan International Corporation Agency as partner of IR; at 0.1 interest rate for 50 years with
15 years grace
Per passenger HSR has low GHGs emissions than roads or air transport. Also, the construction, infrastructure and manufacturing costs of HSR trains have not been estimated.
Research by UNEPDTU or Technical University of Denmark shows that HSR caters to 1/5th of total travel demand in 2050 and growth of air travel, roads slows down; many airlines
were closed after introduction of HSR in France, Germany
Costs; International Union of Railways (UIC), while the external cost of trains is 15 euros per 1,000 pkm (passenger kilometre) it is 57 euros for airlines and 64 euros for cars
Also, Trains with speed more than 250 km pr hour are more costlier to build with increased infrastructure costs; but below 250 costs decreases significantly; India needs the latter in view
of cheap tickets and middle income population.
With HSR India will need other supporting infrastructure or a similar efficient means of transport for last mile connection for passengers. Hence a comprehensive approach is required
before HSR is launched
Will decrease migration load on Mumbai; Further development of economic centres; China Gunagzhau developed similarly
will lead to creation of new technologies, research and development will increase; new enterprises will be able to get projects to develop components; 500 enterprises in China have helped
build HSR;
COAL BLOCK ALLOCATION
Coal Mines Nationalisation Act, 1973
Companies can be allocated coal mines for captive use
Captive use is production of coal for specific purposes like power, iron and steel, cement etc and not for sale of coal.
214 blocks were allocated from 1993 to 2011 arbitrarily without proper revenue to governments.
Supreme court after reports of CAG and subsequent PIL cancelled allocation of 204 out of 218 coal blocks in September, 2014
Government drafted Coal mines allocation bill, 2015.
4 UMPP were left as they were bidded through lower tariffs.
According to this bill 3 schedules of mines will be allocated through public auction where participants can be private, public or joint companies.
1.Schedule 1 Coal for consumption, sale or any use 204 blocks
2.Schedule 2 Coal for captive uses an functioning. 42 blocks
3.Schedule 3 Coal for captive or end use but not functioning. 32 blocks.
ISSUES
1.No independent regulatory commission
As telecom was opened to private sector TRAI was setup.
No provision in this bill.
2.Bottlenecks in functioning
Some blocks will need land acquisition which is a tedious process
No provisions in bill about delays or compensation to companies.
INFRASTRUCTURE STAGNANT
Budget had provisions for
REITs (tax free),
Infrastructure Investment Fund (Rs 20,000 crores)
Plug and Play model,
PPP model as BOT (Build Operate Transfer) failed,
Bankruptcy code etc
Public Contracts (Regulation) and Reforms bill
Commercial divisions in courts to handle defaulters in corporates
URBANISATION
Cities are engines of economic growth
3032% population but 6263% of GDP from Urban areas
The metropolitan regions of Mumbai, Chennai, Bangalore, Kolkata and Hyderabad together contribute 11 per cent to the GDP of the country. Mumbai and Bangalore metropolitan
regions contribute 35 per cent and 38 per cent to the respective state GDPs.
Issues
Metropolitan Planning and governance is missing; MPC under Article 243ZE has not been formed in many states; adequate powers and planning if formed is missing
Connectivity between cities and satellite towns is poor and not coordinated with the main city; NCR region has Gurgaon, Noida and other associated regions but they belong to different
states; different planning
Floor space index regulations are very low, stringent building norms, clearances, tardy land acquisition etc which prevent rapid urbanisation.
Pioneers in urban development
IAS officers Mahesh Buch of Delhi Development Authority
KC Balakrishnan of Calcutta Metropolitan Planning Organisation (CMPO)
Charles Correa; Bharat Bhawan, Bhopal
Ashish Bose; termed Bihar, UP, MP and Rajasthan as BIMARU states and other acronyms like GEM or Generators of Economic Momentum in National
Commission for Urbanisation
Syed Safi; Member of Town and Country Planning Organisation
Issues with villagesrural or urban?
More than 6 lakh villages in India; Population varies from 100 to 10,000; 2,50,000 Gram Panchayats
Easy to govern GPs but small villages; connectivity is missing; not in the mainstream
If in a population size of 5,000, 75 per cent of the male working population is engaged in nonagricultural pursuits and the population density exceeds 400 people per sq km, this becomes a
Census town, regardless of whether it is a statutory town or not.
1.What is Real Estate Bill, 2015? Contrast it with the similar bill in 2013? Comment on the present conditions.
22% of 7.3 crores of projects not handed over to customers.
RE Bill, 2015
Covers both residential and commercial estate. Earlier bill was only for housing.
Timely completion of projects
Decisions by buyers and builders both.
Contents with criticism
Escrow account
50% of money for project to be kept in an escrow account for construction purposes only. Earlier bill had 70%.
It helps buyers who are put on waiting and builder buys new projects from the available money.
It is not clear whether total amount includes cost of land or cost of construction.
Mumbai, NCT Delhi have 6070% cost of land and 2030% cost of construction. It may affect the project and funds will be unutilized.
Regulatory authorities
Real Estate Regulatory Authority in all states.
Brokers have to be registered.
Projects have to be certified and approved by it.
Setting up of Real Estate Tribunals to deal with cases.
Central Advisory Council
It will help in regulation of sector as middlemen, brokers create problem for buyers
Mandatory registration of brokers will increase accountability.
But flexibility in states is an issue. Land and land improvement in entry 18 of state list. States have to work accordingly.
Fast track clearance
Major impediment in projects due to land clearances, environmental, municipal clearances etc will vanish
Single window clearance will help developers (within 15 days)/ The new authority should be given responsibility for clearance of all projects rather than harassing builders with red tapism.
But, bill does not hold these authorities accountable with any penalty provisions which keeps fingers crossed.
Project engineer, architect, landowner etc are also involved but bill concentrates only on developer, allottee, buyer.
May be because the problem is mostly when builder turns greedy or official red tapism and corruption causes issue.
Public disclosure
Mandatory disclosure of account balance, plan, storeys, progress will help buyers
Consent from owners
2/3rd owners consent needed to change plans
Will prevent discretion of builders.
Structural changes
Standing committee of Rajyasabha
1.All prjects above 500 sq meters should be registered.
2.Proper declaration of layout, status, plan.
3.Strict imprisonment on violation by companies and brokers.
GRIHA Green Rating for Integrated Habitat Assessment
Established by TERI (Energy Resources Institute of India), New Delhi under Ministry of Renewable Energy
Effective electricity, better building structures with green compliance, waste management etc.
IIT kanpur, Suzlon given GRIHA 5 star rating.
Surprisingly, Slums have become tourist places with advertisements like "Visit the Largest slum of Asia Dharawi" etc. But the reality of slums is heart aching as people live in impoverished,
unhygenic conditions. They are the centres of diseases and malnutrition which are aggravated by improper health facilities.
In view of such deplorable condition if they are given proper rehabilitation then it is in public interest to shift them. Options are to provide adult jobs, education for children and then propose
their safe rehabilitation to government constructed apartments like Indira Awas etc. Delhi has done a remarkable job in this area but Mumbai is yet to follow.
Also, problems like shifting from centre of city to periphery, compensation according to space occupied at slums, hooligan and miscreants opposition can hinder safe transformation. A
sympathetic approach and arriving at consensus with slum dwellers is needed.
Slums and slum dwellers need to be shifted and rehabilitated and not merely evicted as they too have fundamental rights and are citizens of India.
HOUSING
Why?
Demand for houses is going to increase.
Pronab Sen committee said of 88.8 million households in next 4 years. An investment of 17 trillion required.
Slums going to increase as more urbanisation.
2nd largest employment generator. Real estate contributes 5 % to GDP
Issues
1.Absence of land
Floor space index not correctly demarcated.
Small apartments, low rise buildings which increase cost of construction and price in market.
Land pooling policy is needed.
2.Long time for approvals
34 clearances tedious and timetaking
Single window clearance needed
National Building Code 2005 to be reframed
Green buildings which are a costly affair need to be subsidised.
Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale and Transfer) Act, 1963, or MOFA. Section 3 of this act makes developers responsible for approvals,
certificates, plan outline etc before inviting buyers. But this norm is flouted and babus get upperhand in doing corruption.
It is a process where developers are harassed by politicians babus through extortion and consumers or buyers by developers.
3.Poor funding
Most of the projects are stalled as costs are more than profits to private players.
As real estate is not in infrastructure financial needs are not met
Public investment is needed as private sector is in fundcrunch.
Infrastructure bonds, insurance firms can be roped in
REITs or Real Estate Investment Trusts
FDI in real estate is needed.
4.Black money
Huge amounts of money invested in real estate sectors.
Benami bill, Undisclosed Foreign assets bill will curb.
5.Banking problems
High interest rates of loans from banks make projects costlier
Delayed approvals with inflation in play make costs unmanageable.
Banks treat developers with kid gloves and don't push them to repay. Instead loans are restructured, no inspection of site is done by bank officials thus leading to frauds and increased
NPAs.
Low cost housing by CSIRSERC (Structural Engineering Research Training)
Cold formed deformed bars Black revolution.
Cyclone shelters in Odisha
Construction
Prefab light weight large panels using expanded polystyrene,
Preengineered Cold Formed Steel for Multistoreyed Buildings,
Preengineered FABcrete – An Innovative Material for Sandwich Panels, Selfcompacting FerroCement Mortar for Thin Panels and
Steelfoam Concrete Composite Light Weight Panels
Geotextile
Made of polypropelene or polyester
Used in civil engineering, environmental protection methods, bunds to prevent soil erosion etc
Permeable fabric used as geogrids, geonets, geofoams etc
India is going to need huge number of houses in future. How prepared are we? Elaborate with special emphasis on Government initiatives.
National Mission for Urban Housing or Housing for All by 2022
2 crore households needed by 2022, More urbanisation as people move to cities, demand of houses will increase.
Free housing for all by 2022
Options to states:
1.Slum rehabilitation programmed with developemnt of land
2.Credit linked subsidy for affordable housing
3.PPP mode of housing
4.Subsidy for beneficiary led self construction of houses. (Interest subvention of 6.4%)
Rent housing policy
20% of the 2 crore houses constructed will be rental properties where families would be given rooms of 300 sq feet to live for 5 years within which they have to build their own homes or
rent a home at market prices as new entrants would replace them.
It was discarded and anew separate policy will be made afterwards.
Problems
Very high construction cost
Urban slums where cost of land is very high (Mumbai, Delhi). People are wary of shifting outside those places.
KYC norms are tough to get loans from banks (For EWS more problematic)
In satellite towns for housing linkage to city will be needed. Infrastructure of roads, railways have to be brushed up.
Proposals
Interest subvention scheme where 6.5% interest subsidy will be given to EWS
Credit linked subsidy scheme with Rs 1 Lakh to every beneficiary under 'Slum Rehabilitation Programme'.
PPP to construct houses
Way ahead
Single window clearance for private players by state governments
Easy finance for consumers, builders.
Housing will be in women's name, loans also in the name of wife
Innovative to make women gain equality with men.
Map of lands which can be used for affordable housing. (Digital Mapping)
Power supply needed
Prefabricated models of houses like Metro
Green compliant buildings needed
States need to come forward and support in providing sanitation, jobs, power.
Three ways for affordable housing in India:
1.Government based 'Housing for All' like scheme
Huge costs related
18 million houses to be constructed
Shortage of houses is a likely result
2.Private or PublicPrivate Partnership
Comfortable in Rs 1015 Lacs segment for house building
Most people without houses earn below Rs 2 Lacs annually
Government can support them but regulatory hurdles, land acquisition, crony capitalism are issues
3.People themselves
Slums can be rehabilitated
Usually people construct houses themselves but legalisaton of land is needed
Government work will decrease as it only have to provide electricity, sanitation and other basic facilities.
But it may lead to unplanned way of settlements harmful in future.
Upgrading old houses with government support can work.
4.Social infrastructure
With housing education and health facilities need equal importance.
5.Urban Planning
18.3 percent of urban population lives in slums
Community participation and including alternate service providers like NGOs, selfhelp groups, civil society
Community is trained in basic use of infrastructure like toilets, maintaining buildings etc
IITM research shows better results from alternate service providers and community participation.
Of the 538 projects examined, 294 suffered from cost overruns, 303 from time overruns, and 166 projects suffered both time as well as cost overruns; as shown by a research done by
IIMA scholars.
Multiple agencies in urban governance is an issue; nobody can be held accountable for tardy implementation of projects; an overhaul in urban governance is
needed with clear demarcation of responsibilities and functions.
Smart cities
1.500 acres of development in a city to get smart.
2.Criterias like affordable housing, electricity, sanitation, drinking facilities, internet connectivity, solid waste management.
3.20 cities to be choosen at last.
4.500 crores or 100 crores for 5 years to each city with an equal funding from states.
Demands funding, private sector will be roped in.
Tied funding grants by GoI to be kept in a separate Grant fund. Will be utilized as ULBs share in equity to SPV. Hence initial funding will be 100 crores from GOI and 100 crores from
state/ULBs.
The Smart City Mission will be operated as a Centrally Sponsored Scheme (CSS) and the Central Government proposes to give financial support to the Mission to the extent of Rs.
48,000 crores over five years i.e. on an average Rs. 100 crore per city per year.
An equal amount, on a matching basis, will have to be contributed by the State/ULB; therefore, nearly Rupees one lakh crore of Government/ULB funds will be available for
Smart Cities development.
5.SPV with commisoner as head to guide projects.
The SPV will be a limited company incorporated under the Companies Act, 2013 at the citylevel, in which the State/UT and the ULB will be the promoters having 50:50 equity
shareholding.
The private sector or financial institutions could be considered for taking equity stake in the SPV, provided the shareholding pattern of 50:50 of the State/UT and the ULB is
maintained and the State/UT and the ULB together have majority shareholding and control of the SPV.
The core infrastructure elements in a Smart City would include:
i. adequate water supply,
ii. assured electricity supply; atleast 10% from solar
iii. sanitation, including solid waste management,
iv. efficient urban mobility and public transport,
v. affordable housing, especially for the poor,
vi. robust IT connectivity and digitalization,
vii. good governance, especially eGovernance and citizen participation,
viii. sustainable environment,
ix. safety and security of citizens, particularly women, children and the elderly
x. health and education.
Four ways of smart cities transformation:
1.Retrofitting; upto 500 acres of land with infrastructure already present; will be fitted with smart applications
2.Redevelopment: upto 50 acres of land with land available around the inbuilt infrastructure
3.Greenfield Project; upto 250 acres of unused lands for construction of new infrastructure; atleast 15% affordable housing
4.Pan city solutions; smart solutions like data information, technology for the whole city to have something for every citizen.
Atleast 80% buildings should be energy efficient and green buildings; demands collaboration with GRIHA
Challenges
1.Role of local bodies
Municipalities should be integrated otherwise multiplicity of roles of different authorities will occur.
Political leadership is needed for success. People will have to be incorporated in governance.
It has been found that municipals are reluctant to part powers with SPVs in view of weakening of decentralization and democratic structure. Hence it is the responsibility of
government to demarcate responsibilities of SPVs and municipals for a coordinated functioning.
Greater MC of Mumbai decided against private participation and to have veto powers on SPV decisions.
2.Integration of schemes
Many urban development schemes will have to be converged.
Other authorities like transport authority, environment authority etc should be brought in control of SPV
Varanasi is included in SCM and HRIDAY; there is no clarity regarding integration of these schemes. There is a need of clear guidelines in such cases.
A hierarchy of projects will be of help for better funding and interventions.
AMRUT is a project based scheme and SCP is an area based project; but dovetailing of schemes like Swachh Bharat Yojana, Digital India, HRIDAY, SKill development, Housing for All
and construction of museums by Ministry of culture etc should be done.
3.Pilot projects
As SPV increases its function beyond 500 acres difficulties would arise.
Pilot projects can check its efficiency before large scale overhaul
4.What about geographical equality
Cities which are performing well have been chosen and will compete with other state cities.
The less excellent cities too need focus.
5.Social infrastructure
Schools colleges universities need to be opened for the benefit of population. Hospitals will have to improve.
Behavioural change in people is important.
6.Structural issue
Retrofitting is a tough job considering unplanned and populated areas in cities. People will have to be rehabilitated for which immense resources funds will be needed.
7.Funding
SPVs in lesser known cities have little support of urban bodies; unclear revenue process and may not attract private investments; also private sector has less knowledge about areas of
intervention.
But agencies like World Bank, JICA, ADB, and Indian instruments like NIIF, Green Bonds can provide adequate funds. It depends on the cooperative and competitive spirit of federalism
shown by governments.
Government have to provide with incentives; pricing of services keeping in mind public welfare
Smart city should be a city with a heart, which is inclusive and just and where children are safe and healthy
8.ICT failure
Rsearch shows that 35% of egovernance schemes have been ineffective; Excessive dependence on ICT has not led to good governance
Smart water management in Pimpri Chinchwad remained an issue; informal supply, vested interests prevent formalisastion
JNNURM remained ineffective because of ineffective implementation of programs and ineffective ICT infrastructure
AMRUT,
Union government will provide an assistance of 50 per cent of the project cost for each city with a population of up to 10 lakh.
For cities with population exceeding 10 lakh, the Central aid will be onethird of project cost.
The rest of the project cost has to be borne by the States and urban local bodies.
Union government has approved an outlay of Rs.50,000 crore for development of 500 cities in the country under the scheme
WATERWAYS
Cost savings
1 L of fuel moves 24 km on road, 85 on rail and 105 on water
Cost of developing waterways is much lower
Reduced transportation and transition losses
Least fuel consumption
Low CO2 emission
Supplementary mode
Reduces pressure on road and rail
Reduces congestion and accidents on road
5 National waterways
NW1AllahabadHaldia GangaBhagirathi Hoogly river system (1620 km)
NW2DhubriSadiya stretch of River Brahamputra (891 Km)
NW3Kottapuramkollam stretch of west coast cana with Udyogmandal and Champkara canals (205 km)
NW4KakinadaPuducherry on Godavari and Krishna rivers (1078 km)
NW5East coast canal, Brahmani and Mahanadi delta (588 km)
Way ahead
Developing transhipment ports on both the coasts
PORTS
Sagarmala project
Developing ports along 7,000 Km of coastline with 70,000 crores investment; connecting them with inland waterways as well as roadways
CAG: slow execution of port projects defeats public private partnership model
Issues
1.Tariff fixation policy
High tariffs
Ports cannot fix prices independently
2.Stringent cabotage laws; relaxed now
Cabotage means transportation of passengers and goods along the coast
Transshipment means transportation of goods and services between domestic gateways usually for transport to another destination
3.Issues with banking sector
Funding issues; lack of skills of banking staff in handling coastal shipping
Lack of knowledge and awareness about this field
4.Lack of interest shown by foreign investors.
5.Poor support of physical infrastructure in ship repair; tax breaks also not available
6.Coastal vessels less; old
7.Lack of draft at major and nonmajor ports
8.Wait time; 70% of time in waiting at ports with only 30% in voyage for coastal shipping vessels
9.Connection between major and nonmajor ports unavailable
Way ahead
Change governance structure
Bring ports under companies act; Port administration should only look after infrastructure and safety, management should be in private
hands
Flexibility and independent decision making to authorities.
Declaration of rates; international standards
Privatisation of ports through BOT mode and adequate support through tax sops; Adani Mundra, Kamrajar, Kandla; SEZ system at ports
Captive ports for specialised items like oil, iron steel etc
EDI or ICEGATE (Indian Customs Ecommerce/Electronic Data Interchange gateway)
Under etrade; electronically links DGFT, exporter/importer agents, banks, airports, seaports, container corporation of India , shipping lines,
airlines; making India TFA compliant
90 percent of India’s total EXIM trade volume by ports.
proportion of merchandise trade in Gross Domestic Product (GDP) of India is only 42 percent, whereas for some developed countries and regions in the world such as Germany and
European Union, it is 75 percent and 70 percent respectively.
India lags far behind in ports and logistics infrastructure; share of 9 percent of railways and 6 percent of roads in the GDP the share of ports is only 1 percent.
High logistics costs make Indian exports uncompetitive.
Gujarat benefited alot from port led development with growth reaching beyond 10 percent
Problems
involvement of multiple agencies in development of infrastructure to promote industrialization, trade, tourism and transportation;
dual institutional structure that has led to development of major and nonmajor ports as separate, unconnected entities???
lack of requisite infrastructure for evacuation from major and nonmajor ports leading to suboptimal transport modal mix;
limited hinterland linkages that increases the cost of transportation and cargo movement;
limited development of centres for manufacturing and urban and economic activities in the hinterland
low penetration of coastal and inland shipping
limited mechanization and procedural bottlenecks
lack of scale, deep draft at ports.
Sagarmala initiative
(i) Portled industrialization
(ii) Port based urbanization
(iii) Port based and coastal tourism and recreational activities
(iv) Shortsea shipping coastal shipping and Inland Waterways Transportation
(v) Ship building, ship repair and ship recycling
(vi) Logistics parks, warehousing, maritime zones/services
(vii) Integration with hinterland hubs
(viii) Offshore storage, drilling platforms
(ix) Specialization of ports in certain economic activities such as energy, containers, chemicals, coal, agro products, etc.
(x) Offshore Renewable Energy Projects with base ports for installations
(xi) Modernizing the existing ports and development of new ports.
This strategy incorporates both aspects of portled development viz. portled direct development and portled indirect development.
Gadkari’s promise of 8 new ports, connected by railways and roads (12 existing ports), is one building block. Experts have suggested building small ports along the coast, as
well as reviving longdisused inland waterways, to ease the load on highways and facilitate regional trade. Efficiencies at ports, business advocates have been saying, could also
be dramatically increased, bringing down the time needed to handle freight, and the cost of doing so. These measures, however, need focused political action.
Investors do not invest on the basis of a comparison between the past and the present. They do so on the basis of future potential
Amory Lovins has captured these emergent trends acronymically. He says the transportation sector is transiting from “Pigs” (personal, internal combustion, gasoline, steeldominated
vehicles) to “Seals” (shared, electrified, autonomous, lightweight service vehicles).
There are just 18,359 individuals who have reported earnings in excess of Rs 1 crore in 201112 and paid tax on it
NBFCAA
NBFC Account Aggregator which will help customers to see pension fund, mutual fund, saving bank account, insurance policies in a consolidated manner
Decided in Financial Stability and Development Council
SOVEREIGN WEALTH FUND
India felt updowns in Sensex and high exchange rate of Rs 68 per dollar in the headwinds created by Chinese devaluation of Yuan and following outflow of FIIs despite robust
macroeconomic fundamentals.
Hence the need of a SWF with a corpus of 15$ billion is required. The government should have a stake more than 26% but less than 15%.
Its managers should be chosen meticulously from eminent professionals in government and private sector both. It will invest in equities whenever FII outflow occurs to stabilise markets.
Also in the process it will keep earning money.
World Economic Forum 2016 meeting theme: Mastering the Fourth Industrial Revolution
Loss in jobs with more robots; in white collar jobs mostly; Future Jobs Report
MFNforwardFuture concessions accorded to any country in a bilateral pact by India will be automatically extended to Other countries too. Canada proposed such clause in FTA
Ratchet means benefits arising from future liberalisation of policies will be extended to Canada and vice versa.
Varying Rates
Small savings schemes like PPF, Sukanya Samridhi and others offer high interest rates than commercial banks making the former more attractive to consumers
This interferes with transmission of rate cuts by RBI down the line to banks; harms the money infusion in the economy and credit growth
The government should follow the report of the Shyamala Gopinath committee that, 2011, had suggested fixing small savings rates based on “a positive spread of 25 basis
points, visavis government securities of similar maturities…” One way to make it politically more palatable could be to retain the current rates only for deposits below a certain limit
Gyan Sangam, a meet of bankers, government officials, RBI to take policy decisions; BBB to be setup; Organised in Pune in 2015; again in 2016
INEQUALITY IN INDIA
Thomas Piketty world famous economist predicted of increasing inequality in India
TaxGDP ratio only 11%; less than Brazil having 15%;
Gini coefficient 0.36 in 2012
“Pareto improvement”—that is, making at least some people better off, while harming no one. This is entirely consistent with rising incomes, falling poverty and rising inequality.
Issues
1.Rich has 90% of the wealth 70% of Indians hold
Taxing the rich is needed as in China; Wealth tax should increase
Direct Tax should increase as compared to Indirect tax which affects common men more
2.Tax exemptions help rich corporates; affect fiscal health of government
Massive capital gains tax exemption, DDT exemptions; found nowhere in the world
Need to implement GST; make direct taxes more and indirect taxes low
3.Social sector
Poorly developed education and health public sector
Bottom half remains in poverty or keeps swinging in and out of BPL due to expenditure on health mainly
Need to increase the share in GDP which is peanuts compared to China; beneficial in the long run
4.Corruption and inefficient implementation of government schemes.
The most common fraud in banking is identity theft with fraudsters falsifying address proof or contact information. Using biometrics to identify customers will check these frauds.
RBI allows 2,50,000 $ overseas investment per financial year under Liberalised Remittance scheme.
'Ease of doing business'
Arbitration and Reconciliation Amendment Act
BSE Bankex Index Falling down with increased NPAs
*Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2016
Setting up of commercial courts which will function as district courts; high courts of Delhi, Bombay, Calcutta, Madras will have commercial division
Minimum threshold raised to Rs 1 crore from Rs 50,000; will decrease cases pending from 36,000 or 52% of pending civil suits to aprrox 4,000.
Need of infrastructure for better effects; states need to spend
Upper limit should have been more; cases would have decreased in numbers further; important high value cases would have been resolved
Reports
RBIFinancial Stability
World BankMigration and Development; World Development Report
UNCTADWorld Investment Report 2015
12th Finance Commission, led by C Rangarajan. Debt relief was linked to the enactment of fiscal responsibility legislation, and as a result the states showed a primary surplus for the first
time in their history in 200607. Several states reformed their support of lossmaking public sector enterprises, and others attempted to raise power tariffs that bled their exchequer.
India will slow down with devaluation of yuan, lower interest rates in India vis a vis US interest rates
SLow down leading to more fiscal deficit; less public investment; less private investmnet
China wages increased; domestic consumption increase; exports decrease; overcapacity; global prices down; cheap exports
China has same export category like India; India may loose exports; Tyres, steel dumping; apparels
China shifting to service sector but finding road tough
Boosting exports
BOT or Board of Trade established under the chairmanship of Commerce minister with 72 members to mull on trade exports policies, tariffs, steps needed to ease trade etc; was
proposed in FTP 20152020.
ASIDE scheme or Assistance to States for Infrastructure Development of Exports; poor infrastructure hampering exports in India

Startups in India
Majority of Startups fail but not the entrepreneurs
Atal Innovation Mission (150 crores)
Entrepreneurs to solve socioeconomic issues
SETU or Self Employment Talent Utilisation (1000 crores)
Strengthening incubators and tinkering labs to give ideas a concrete shape
Huge intellectual environment; startups on ideas; but IPOs are done abroad (Singapore, US) rather than India
This constrains growth of economy as employment goes outside; silicon valley startups employ 2/3rd of US youth
Small firms which grow big only employ maximum people as said by RBI chief, Raghuram Rajan.
The best thing about India is that regulations and laws persuade you to innovate and act against adversity as Bombay small factory owners did in 1970s and emerged as giants in the 21 st
century.
Issues in India
Capital Gains Tax; Tax levied on profits accrued from sale of capital above the purchasing price; on venture capital firms
Proposal to grant exemption on CGT of FOFs; Fund of Funds which invest in venture capital firms and are recognised or owned by the government SIDBI or CANBANK VC managed
Electronic Development Fund for digital India FoF.
Taxation of ESOPs; taxed at 2 times, once at time of exercise or allotting of shares to employees and another at time of sale i.e when shares are encashed or sold to others called
capital gains tax.; Exemption needed in this front
Taxation of share swaps; shareholders receiving illiquid shares and no cash should be exempted like tax free mergers
Scheme talks of exemption from income tax but most of startups in beginning do not earn taxable income; hence a need to provide relaxation in service/VAT tax to benefit them in reality
Tough M&A laws; startups grow by acquisitions
High custom and excise duties; double taxation on supplies and finished products
Red Tapism; delayed approvals
Convertible Notes; An instrument through which startups give assurance of conversion of investment to equity to AIs on large investments from venture capital firms; It secures start
ups from giving away their controls to Angel investors
IPR laws; Patents
Disclosure of proceedings; sales; IPO proceedings; SEBI mended these laws for startups to become public in Indian markets rather than overseas.
Company law is a big hindrance, putting a heavy compliance burden on small startups. The penalty provisions are onerous.
Taxes on alternative investment funds and venture capital need rationalisation.
The valuation of startups for investment by angels needs clarity.
Policies on digitisation and digital business are not clear.
Marketplaces are not understood, least of all ecommerce!
Mobile banking needs a boost.
Payment systems need change.
Supply chain issues continue to linger.
Funding is needed for training in new technologies.
In biotechnology, speedier clearances, Intellectual Property Rights issues and the like need clarification
Maximum investment in IITs; what about others; need to tap into their potential
New definition for startups other than the below:
GOVERNING RULES
Criteria for startups to get government incentives
under Startup India Action Plan
The firm incorporated should be less than five
years old
Annual Revenue of less than Rs 25 crore
Needs to get approval from interministerial
board to be eligible for tax benefits
Get recommendation from an Incubator
recognised by government, domestic venture
fund or have an Indian patent
Government with new Startup plan
Bureaucratic hurdles should not be there in certifying innovative startups
Nontech startups need to be funded as well like in agriculture, handicrafts etc
Labour laws 45 in number; only 6 relaxed; further assurance and check for problems; state and central labour laws; coordination between states needed.
NSSO prepares employment data every 5 years; it is to be made an annual affair; will cause speedy changes in labour related policies for creating more employment; developed
countries release quarterly reports
SBI InCube to assist startups in taxation, policy matters, foreign exchange, remittances
UWIN card or Unorganised Workers' Identification Number Scheme; Shelved by Finance ministry because of increased costs, overlap with Aadhar Card.
Anchor investors
A Qualified Institutional Buyer or QIB making an application for a value of Rs 10 crore or more through the book building process.
SEBI in 2009 introduced this in public issues in order to create significant impact on pricing of IPOs.
The volume and value of AIs determine soundness of the offer and sets guidelines for issue pricing and interest among QIBs
Finance Act 2013 done away with AI Tax
Indhradhanush Plan for Banks
Infuse Rs 70,000 crores in banks; 25,000 crores in Budget 201617; need of Rs 1.80 Lakh crores
Bank Boards Bureau comprising of 6 members; 3 government officials 3 experts 2 from private
Bottomsup planning by inviting banks in developing strategies, in appointment of officials
100 points framework of Key Performing Indicators for evaluating PSU banks; 25 for 'Efficiency of capital use' and 'Growth Processes' while 15 points each to' NPA management'
and 'Financial Inclusion'
Missing points
Overhaul in organisational structure
Capital Infusion; Banks need around Rs 3 lakh crores
FinTech Startups
Banks loosing their space to new financial services startups
Paytm wallet; mobile cash services etc
Banks also hire them for checking frauds, tracking loan repayments etc
Customer friendly
RCEP
ASEAN + 6> India, China, Japan, New Zealand, Korea, Indonesia
TPP and RCEP has 11 common members namely Brunei, Vietnam, Malaysia, Australia, Singapore, Japan
Effects of TPP
12 countries; will bypass developing world friendly WTO regime
World Bank predicts 0.1% loss of GDP to nonmember countries
Strict IPR norms, labour standards pushing developing countries for a change
Indian Pharmaceuticals will get affected; Push India to Join TPP
GSP plus or special incentive arrangement for sustainable development and good governance which is one of the three nonreciprocal preferential import regimes for developing countries by
EU's eneralised System of Preferences; Sri Lanka lost it due to human right violations
TERMS
Marginal Standing Facility Rate
Rate at which banks borrow money from RBI against Gsec overnight in need of liquidity.
Repo Rate
Rate at which banks borrow money from RBI. Discount rate in USA.
Reverse Repo Rate
Rate at which RBI borrrows money from banks.
CRR (Cash Reserve Ratio)
Amount of deposits banks have to keep with RBI.
Government Securities
Treasury Bills, notes, Saving bonds, Cash Management bills, dated government securities, State Development loans
Debt Security
Municipal bonds, Government bonds, corporate bonds, collateral securities.
Money Market
Financial markets with shortterm bonds, bills with maturity of 1 year or less.
Money Market in India
Shortterm or longterm bonds which includes mutual funds, securities, treasury bills, interest rate swap, certificate of deposit but not share market.
PFMIs (Principles for Financial Market Infrastructure)
Global standards for financial entities, regulators all over the globe led by IOSCO and BIS
IOSCO (International Organisation of Securities Commission) is a global group of capital regulators.
BIS (Bank of international Settlements) is central bank of all central banks
Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. In other words, the Effective Revenue Deficit excludes those revenue
expenditures which were done in the form of grants for creation of capital assets aka GoCA
IBPC
An interbank participatory certiifcate is aform of security through which abank bus other;s assets for astipulated period of time taking the credit risk of the
folio.
Crowding out effect
At times of increased government spending
BASE rate of banks is calculated using a combination of Average cost, Marginal cost, Blended cost of funds
Will be replaced by MCLR or Marginal Cost of funds based Lending Rate which includes corresponding tenor premiums of marginal cost of funds, cost of maintaining CRR and operating
costs.
Like base rate below MCLR lending will not be allowed except against deposits or loans t]o employees. Also, fixed rate loans will be exempt.
ECBs (External Commercial Borrowings)
Regulated by DEA (Economic Affairs), MoF, RBI
Private and Public sectors both are allowed
50% of ECB permitted for investment in infrastructure
50% in telecom sector
25% to pay existing rupee debt and 75 percent for new projects
A borrower cannot refinance its debt through ECBs
Real estate and stock market use not allowed
Track I
Short term; 35 years foreign currency denominated ECBs
Track II
Long term; 10 years; foreign currency denominated
Used by Road sector for infrastructural needs; less attractive for investors in need of more profits and easy exit
Track III
Rupee denominated borrowings; 35 years
Foreign Currency Denominated ECBs; Less risky as a debt instrument
Foreign Currency Exchangeable ECBs; More risky as an equity instrument
Nostro Account
Account opened in foreign where loans are paid in foreign currency. It escapes vagaries of exchange rate of rupees.
FM Global Resilience Index
India stood 119th in 2015
It is based on GDP, fire risk management, natural hazard management, political situation, corruption control
Credit Rating
Big threeMoody HQ NY and London, Fitch and S&P HQ US
Fitch and S&P use (from the most credit worthy to the least) AAA, AA, A, and BBB for investmentgrade longterm credit risk and BB, CCC, CC, C, and D for "speculative" longterm credit
risk.
Moody's longterm designators are Aaa, Aa, A, and Baa for investment grade and Ba, B, Caa, Ca, and C for speculative grade. Fitch and S&P use pluses and minuses (e.g., AA+ and AA),
and Moody's uses numbers (e.g., Aa1 and Aa3) to add further gradations
Financial literacy
It has the following components:
1.Money management
2.Credit management
3.Debt management
4.Risk management
5.Investments and retirement plans
USAID report says that still 97% of retail transactions in India are cashbased
RBI changed base rate to MCLR from 1 April, 2016; banks were not transmitting repo rate changes
RRBs Regional Rural Banks
Setup under RRB Act, 1976
To provide alternative credit to cooperative sector
Centre share, State share and sponsor bank share is 50, 15, 35 percent rspectively
Managed Exchange System
Countries manipulate exchange rate of currencies during economic turmoils.
Followed world wide by monetary policy changes (interest rate etc), buying or selling currencies
Balance of Payment
Current account+Capital account
Current account= (ExportsImports) + Transfers (Foreign aid) + Net Income (Interests and liabilities)
Hard Currency
Highly liquid currency
Belongs to a country with highest and highly diversified exports
Demanded by every economy
NPA (NonPerforming Assets)
When borrower defaults on installments for three consecutive times then the loan is declared as bad assets or NPA.
If one month installment not paid then it is overdue and if two months then it is overdue regular.
Rising because of Collective convergence of interests; lenient payment tenure, policy flip flops; fund diversion to new projects
According to an analysis by the P.J. Nayak Committee report on the governance of bank boards in 2014, the market share of PSBs in India has fallen from 80.2 per cent in
2000 to 73 per cent in 2013. It calculated that, given this trend, PSBs will further relinquish market share and be reduced to just 63.2 per cent by 2025.
Irrespective of which variable one looks at — return on assets, average net interest margin, net profit per employee or the ratio of staff costs to operating expenses
— PSBs massively lag behind privatesector banks. This is evident in the scale of the NPA crisis, too
Effects
Burden on retail borrowers; high bank rates as RBI LAFs not transmitted properly
Tax payer's money losses
Way Forward
Debt Disposal
Establishing Debt Disposal Companies; selling them at adequate rates
Transparency and declaration of sale particulars in public; oversee of CAG in sale
Banks can tie up for profits later if the company gets revived
Asset Reconstruction Companies
Bad debt taken away; managed by ARC
Not corrective in true sense as it treats symptoms not the source; autonomy of banks, governance reforms needed
Private bank participation in lending for welfare schemes
Checking political interference; crony capitalism
Why banks are reluctant to pass rate cut benefits to customers?
Banks have surplus liquidity. They do not want to borrow from RBI.
They need deposits so CRR lowering affects them more.
NPAs, Bad loans affect the balance sheet.
HSBC PMI (Purchasing Manager Index) or Nikkeki's Index
It comprises new orders, inventories, production supplier deliveries and employment opportunities.
More than 50 means expansion of manufacturing sector compared to previous month and below means contraction.
Crowdfunding
Crowdfunding platform, investor, issuing company will be regulated by SEBI
Companies raise capital from large number of people through internet
Movies. social campaigns, music album funded
Section 42 of Companies act, 2013 allows companies to raise capital through issuing securities to 200 people, equity to 50 people without public issue
NRI invest in companies (approved under sec 42, Foreign companies get investment from India (not in regulation)
Bitcoins
Satoshi Nakomoto in 2009
Crypto currency, decentralised digital currency, virtual currency
Used by data algorithm solving, exchange of goods and services, fiat currency (mygox.in issued dollars against bitcoin)
Used in money laundering, drug rackets, terrorism etc
America declared it as a commodity chargeable at 23%.
REER in India
1.Weighted average of exchange rates of USD $, Yen, Pound Sterling, Euro, Australian Dollar
2.Weighted average of 36 countries with which India has substantial trade.
What is special drawing rights?
SDR is an international reserve asset, which was created by the International Monetary Fund (IMF) in 1969 to support the Bretton Woods exchange rate system — in which
every currency was pegged to the US dollar, which was in turn pegged to gold. This was done because the IMF felt that the supply of US dollars and gold “proved inadequate to support
world trade.
It is currently 41.9 % dollar, 37.4 % euro, 11.3 % sterling, 9.4 % yen. China has been included in SDR recently as it satisfied the criteria of freely usable and widely traded in Forex
markets.
How does SDR work?
IMF allots every member country a certain number of SDRs depending on its quota, which is calculated by the Fund based on a country’s GDP, openness, economic stability and
reserve assets.
For instance, the US has been allocated over 35 billion SDRs while India has almost 4 billion.
As on October 31, the IMF had allocated a total 204.1 billion SDRs ($281 billion or Rs 18.54 lakh crore) among 188 countries. (1 SDR is equivalent to $1.38)
SDR is neither a currency, so you cannot buy anything with it, nor a claim on the IMF, which means you cannot exchange the SDRs with the IMF for dollars or rupees.
SDRs can only be exchanged by a country with currencies of member countries at an exchange rate determined by the IMF.
How is SDR’s value calculated?
The IMF calculates the value of SDR using the US dollar, euro, yen and pound — collectively called the SDR basket — on the basis of their daily exchange rate on the London
currency exchange. Each of the four currencies is given a weightage based on their importance in world trade. Since the US dollar is the most used currency in the world, it has the
highest weight.
The IMF reviews the composition of this basket every five years to reflect changed circumstances in world finances.
The review is based on two conditions — the export and the freelyusable criteria
Effect on India
India can keep stocks of yuan as forex
BRICS trade can be in yuan
Monopoly and vagaries associated with USA will go
However, China's dominance may countereffect Indian interests
Multilateral Competent Authority Agreement on Automatic Exchange of Financial Information
Automatic exchange of tax payers income annually through Common Reporting Standards (CRS)
94 countries to join till 2017. India has joined with 54 countries.
Will curb tax avoidance, a curb on black money.
NPS and its use
Government proposal to increase share of equities to be invested from NPS (50% in private NPS and 15% in government NPS to 75%).
Indian Financial Code
Recommended by FSLRC constituted by MoF in 2011 which submitted report in 2013
Consumer protection
Microprudential regulations
Resolution
Resolution Corporation to take over the role of Deposit insurance and credit guarantee
Capital controls
Systemic risk
Establishing Financial Stability and Development Council
Development and redistribution
Monetary policy
Executive Monetary Policy Committee
Public debt management
Financial Redressal Agency (FRA)
Contracts, trading and market abuse
Regulators
1.United Financial Agency Subsuming SEBI, PFRDA, FMC, IRDA
2.Financial Securities Apellate Tribunal
It may truncate the role of RBI and reduce it to a financial agency only.
Ministry of Finance contains departments of Revenue, Economic affairs, Expenditure, Disinvestment and Financial services
CAPITAL ACCOUNT CONVERTIBILITY
(Related only to outflow of foreign currency)
As Indian economy opens more and trade increases capital account convertibility is inevitable.
At present corporates do transfer pricing, under and over invoicing of their balance sheet.
What?
It is conversion of local financial assets into foreign ones at market determined exchange rates.
It can lead to free exchange of currencies and increased mobility of capital.
For ex Dollar,yen are convertible in India but rupee is not and so of no value in USA.
Benefits/harm?
It can trigger inflow of capital. Foreign investment will increase. Portfolio diversification will be there. Free access to global markets.
People can purchase by paying yen/dollars etc in India. BAnks can transfer currencies to any country without any regulation.
Banks should have proper KYC norms, antimoney laundering checks before transferring money.
But it may cause sudden outflow too thus devaluing currency. Currency appreciation, depreciation affects balance of trade.
Present situation
Current account convertibility in export/import but capital account convertibility in securities, external debt, borrowings not allowed.
All developed countries capital account convertible.
Participatory Notes
Issued to FIIs who invest in government bonds, securities, corporate equities.
Issue
Dubious as P Notes do not need FIIs to declare whose money is being invested. Black money can be reinvested in India.
It has been a way to reroute black money to India.
Priority sector lending
It includes total 40% of loans from ANBC (Average National Bank Credit) to priority sector for domestic commercial banks and foreign banks with 20 and more branches and 32% for foreign
banks with <20 branches.
Agriculture Total agriculture lending should be 18 % for domestic commercial banks and foreign banks with more than 20 branches.
8% for small and marginal farmers
Education Loans upto 20 Lakhs for abroad and 10 lakhs in India
Housing 15% /25 lakhs in metropolitan with population above 10 lakhs and 15 lakhs for rest.
Micro and small enterprises
Export credit
Others
Issues
NPAs of banks increase due to nonrepayments.
Core Sector (Index of Industrial Production)
Includes Coal, Crude oil, natural gas, refined products, cement, electricity, fertiliser, steel industries.
Account for 38% of total industrial production.
GDP
GDP at Factor Cost= C+G+I+SubsidiesIndirect taxes
GDP at Market Prices= GDP (FC) + Indirect taxes
GDP estimation revised
1.Changed from GDP from FC to MP
Indirect taxes included and subsidies excluded.
The numbers for 201213 and 201314 were also changed and the new method was used to calculate the figures for 201415. The new numbers changed GDP growth to 5.1 per cent from
the earlier 4.5 per cent for 201213 and 6.9 per cent from the earlier 4.7 per cent for 201314. For 201415, the growth came at 7.3 per cent.
2.Base year made 201112
3.Coverage of data increased
70% of coverage
Informal sector data being covered increasingly over the years.
Earlier IIP data used; now MCA data of many industries will be used
4.GDP data calculated for 3 quarters different than 4th quarter
MCA21 (egovernance initiative) fillings in 4th quarter
For 3 quarters SEBI listed companies fillings and IIP data
IIP share to be increased to 3234%.
Data of individual plants of industries being calculated rather than earlier method of Headquarter's data.
1,30,000 companies18,000 listed in SEBIFor others plant basis calculation of industrial growth.
Institutional composition has changed; private corporate sector's (PCS) share in GDP to 34% (23% earlier ), household (unorganised or informal) sector's share to 45% (56% earlier)
Effects
1.Better comparision with international
2.FII will get better idea of the economy
Nayak committee report
Setting up of BIC (Bank Investment Committee) under Companies Act
Government share will be divested and managed by this committee.
This will lessen Government interference in banks.
Will provide banks with solutions and additional capital
INFLATION
The target is to keep inflation below 6 percent for three successive quarters in 201516 and below 2 percent in three successive quarters in 201617 and subsequent years.
Urjit Patel committeeon Inflation targeting established by RBI
1.Creation of Monetary Policy Committee (MPC) with 3 members.(RBI governor, Deputy governor, Government appointee, Independent experts as majority)
(Sri Krishna Committee said of 7 members with Governor as head, 2 selected by Union government in consultation with RBI and
two by union government)
Against
This decreases the autonomy of RBI with govt. also pressing for an 8 member committee to increase its control over monetary policy
formulation.
Few experts suggest that Inflation in India is not due to monetary policy but high food and fuel prices.
Moreover, RBI should control growth and inflation both.
Government should supplement with fiscal discipline.
2.Adoption of Consumer Price Index, CPI replacing Wholesale Price Index, WPI on inflation targeting.
Causes
1.Industrial contraction Since NDA took hold IIP has decreased or remained stagnant; global demand slow down
a.Either demand is more and supply is less or people donot have enough money.
b.Current condition is more of the supply part than the money constraints where a demand of a cut in interest rates of RBI was put.
c.Agricultural uncertainty; Low monsoon, poor storage and distribution mechanism, bureaucratic and political inertia contributes to low supplies.
d.GDP deflator in negative; global prices down
e.Infrastructure stagnation; stalled projects
f.Policy uncertainty
f.Huge NPA of banks; less money in economy; increased rates
Anomaly with CPI, GDP Deflator, Average of CPI & WPI
High real policy (repo) rate will persuade consumers to financial savings thus creating more deposits in banks.
It will decrease demand in economy and lower inflation
But what about producers?
Debt equity ratio of companies has increased.
Even low interest rates may not benefit them as they appear high due to their stressed balance sheets.
GDP deflator includes producers and inflation based on GDP deflator will be high at the moment.
But it is assessed quarterly and depends on fluctuating national income which makes monetary policy framework tedious.
Services sector contribution to GDP more than 60%. WPI has no weightage. CPI has less weightage.
What is then RBI targeting? Prices of IT services etc will rise and monetary policy will remain unchanged?
FSLRC rcommendation to form MPC with dilution of RBI governor powers
3 member in MPC to be from government
Government wants 4 members and removing veto power of RBI gov
That means RBI will not control inflation. It smacks of capitalists pressurizing gov to lower RBI rates which currently is not willing to
decrease them in wake of poor monsoons, high NPAs etc.
The draft IFC talks of RBI role only as a monetary policy authority but it should also be on controlling output.
BASE EFFECT
Suppose Price Index was 100 in 2010. It rose to 150 in 2011. Percentage increase is 50%. Now for 2012 it becomes 200 then percentage increase will be 33.3% as base year has changed.
# If inflation rate for base year was low then a minimum increase in Price Index will show high inflation rate for next year. Similarily, if inflation rate was high then large increase in Price
Index will show low inflation rate.
Minimum paidup capital
It is the amount of company's capital paid by shareholders.
Currently, RBI norms Rs 1 Lac for private company promoters, Rs 5 Lacs for public limited company promoters.
Government's spending
#To rein fiscal deficit
#Under spending caps, government should not spend >33 percent of their fiscal budget in last quarter and not >15 percent in schemes.
Book Value
Price paid to buy a stock, share
FSDC (Financial Sector Development Council)
Chaired by Finance Minister,
RBI governor, secretaries of DEA, chairman of PFRDA, SEBI as memebers
For financial regulation, inclusion
FINANCIAL INCLUSION
Nicholson Report, 1895; Establish Land Banks as alternative to moneylenders
Cooperative Credit Societies Act, 1904
All India Rural Credit Survey, 195154
In 195051, only 0.9% of total credit by commercial banks, agriculturalist moneylenders 25% and professional moneylenders 45%
SBI nationalised in 1955 followed by others in 1969 and 1980s. NABARD established for agricultural credit.
Rangarajan Committee Report
ICT based BC model at doorstep in remote villages
Board approved Financial Inclusion Plan for 3 years from 2010
Cover villages with population above 2000 by 2012 and above 3000 by 2013
Opening of atleast 25% of new branches in unbanked rural areas
Recommendations of Mohanty setup by RBI on financial inclusion
KEY RECOMMENDATIONS
Deepak Mohanty Committee on mediumterm path on financial inclusion
Recommends phasing out of interest subvention scheme and ploughing the subsidy amount
into a mandatory crop insurance scheme for small and marginal farmers
Those who cultivate do not benefit but landholders who turn into moneylenders; Fertiliser subsidy
increased to Rs 73,000 crores in 201415; does not benefit farmers but manufacturers;

Suggests banks to open more accounts for females
Females pay high interest rates than men; no collateral; illiteracy; gender disparity
Proposes a new welfare scheme for girl child — Sukanya Shiksha
Education and social security of girls

Suggests stepping up financial inclusion in northeastern, eastern and central states

Recommends Aadhaar to be linked with each individual credit account

Recommends use of lowcost solution based on mobile technology for ‘last mile’ delivery

Recommends ‘Gold KCC’ scheme for good borrowers

Recommends commercial banks to open specialised interestfree windows with simple products

Recommends RBI to take lead in creating a geographical information system to map banking access
points

Recommends more bank credit to the MFI sector

Suggests more ATMs in rural centres
JAN DHAN YOJNA (PMJDY)
*Financial literacy is needed to help people operate accounts.
*DBT should be supplementary with welfare subsidies.
RuPay debit card
Low financial literacy and knowledge about technology may push account holders to submit cards to bank correspondents, others who can siphon off their funds.
The need is to make RuPay push for cashless transactions by having inbuilt Immediate Payment Service (IMPS) registration and NFC tags.
Issues
Unawareness among people, banking correspondents
Duplication of accounts as Aadhar is not mandatory to be linked.
Arrogance and apathy of banking staff to poor
Overdraft facility to RuPay card holders; everyone does not have this card
PSBs are not being compensated adequately for public service; may affect banking health further which is burdened with NPAs.
BC Models in India
Reduced cost of financial services
Weaning off people from informal moneylenders to institutional credit; Mahabubnagar in Telangana showed decrease in informal money transfer agents.
Cost of remittances decreased
Mobilise term deposits to banks; preventing chit fund investments; saradha, sahara etc
Agent dormancy has been a huge problem; while the PMJDY has recommended a minimum monthly remuneration of Rs.5,000, the role of the ministry of finance in raising the agent’s
income has not met with sufficient attention.
low commission paid out to banks on DBT transactions. While the Report of the Task Force on an AadhaarEnabled Unified Payment Infrastructure had recommended a
3.14% transaction processing charge to the banks, in reality the rates allowed by the central and state governments have been 12%.
The three critical asks for JAM to be an effective enabler of DBT are:
(a) for the finance ministry: adequate and timely disbursement of transaction processing charges for the bank and agent network;
(b) for Parliament: passage of the NIAI bill; merging DBT and PMJDY accounts completely
(c) for the finance ministry, Trai, NPCI and UIDAI: setting up and monitoring service quality benchmarks for digital financial transactions
Payment Banks
will be introduced in India to strengthen the financial inclusion process.
Rules laid by RBI:
*Corporate sector, Private Banks etc have been invited
*can accept deposits up to Rs 1 lakh
*Cannot lend but accept deposits,issue debit cards (not credit cards)
*75% deposits in SLR eligible govt. bonds & treasury bills
*25% in current and time deposits
*75% branches in rural areas.
*Promoters to invest 40 % at max and need to dilute their share to 26% in 12 years.
Small banks
*Half of loans should be below 25 lakhs; 10% to single borrower and 15% to a group.
*1/$ branches in villages and places with <10,000 population
Effects
1.It will be helpful for migrant labourers and unorganised sectors.
2.Financial inclusion of marginalised communities.
Against:
1.little profit for banks as no loan can be disbursed in payment banks.
2.MFIs can get funds from foreign investors but after conversion to small banks it will be difficult.
3.threat to business of commercial banks; but a lot of customers are untouched, hence profits will not decrease.
India Post (55,000 branches) accepts deposits, pays out cash,forex services, e payments, telecom companies ; can serve as a payment bank
Kishan Vikas Patra
Launched in view to provide non tax payers, low income bracket, and areas with inaccessibility to banks with savings option.
To phase out savings from gold
Broad features: Earlier KVP:
Interest rate of 8.7% Interest rate 8.2%
Tenure of 100 months 103 months to double
Minimum lockin period of 2.5 years
KYC, PAN not needed except when >1 lakh investment, Address/Identity proof required
Minimum inveatment of Rs 1,000 and then in multiples of 5,000, 10,000, 50,000
No tax exemption, interest fully taxable
Against: Carries the burden of old KVP i.e Money laundering as it is a bearer bond, transferable by endorsement and delivery.
There is little proof required for address of the buyer, PAN is not needed. So, black money can be round tripped.
Other financial instruments like Bank deposits offer better returns at 9% being more liquid with tax exemption.
SEZs in India
SEZ act, 2005/ Amended Rules,2013
Export Processing Zones or EPZ setup in Kandla in 1965
Export Promotion Council for export oriented units EPCES and SEZ demanding for reforms
Aims
*Increase trade (exports)
*Increase employment
*increase investment; FDI etc
*manufacturing hubs
25% of raw materials to be bought from domestic companies to promote domestic growth.
Single window clearances for approvals; hardly followed
But, SEZs have shown less growth as expected in India. Only 194 out of 564 SEZs were functional in june 2014.WHY?
* Tax exemption (MAT, DDT) was given but withdrawn on speculations that profits are being siphoned off. Import duties, Custom duty on finished goods on exports; Budget 201617 has
exempted IFSC International Financial Services Corporation from MAT, DDT but not other SEZs
* Poor infrastructure of road, railways, port connectivity, unstable power supply. (CHINA has excelled with SEZs due to efficient infrastructure)
* Poor professional management.
Processing part of SEZ deals with production of goods and services
Nonprocessing deals with support infrastructure. Schools, parks etc have been opened to people leaving out of SEZs also.
Reverse SEZs
SEZs located abroad where chemicals and fertilizers will be exported from India and produced without any import duty. For ex in Myanmar, Iran
SEZs need to pay duties on sale of goods in domestic markets;this makes their goods costlier than FTA goods which are duty free; EPCES asked for duty free domestic sale
NBFCs Non Banking Financial Companies
Registered under Companies act, 1956
Financial lending institution which accepts deposits but not demand deposits (Payable on demand like current and savings)
Involved in buying G secs/equities/shares/debentures
Not involved in agricultural/industrial activity and sale/purchase/construction of immovable property
Includes companies which lend money
Does not issue cheques.
RBI plays a stepmother role.
*Not included in SARAFESI (Securitisation and reconstruction of financial assets and enforcement of security) act 2002
*No tax exemption allowed on income relating to NPAs as allowed for banks
DRTs at dismal state
Only Rs 30,000 crores recovered from 2 lakh crores; judicial system overloaded
Less number of DRTs, Debt Recovery Appellate Tribunals
Unnecessary delay deliberately favored by defaulters; need to fix resolution time
Makes bank more cautious in giving loans; affects normal customers; charging of high interest rates
NITI Ayog recommends setting up of a State ARC where all the NPAs of banks will be transferred. But from most of these companies promoters have taken out money and banks have to
invest taxpayer's money to recover the losses. Is it plausible to invest good money after bad assets?
MERGER and ACQUISITIONS
(Effects of ING VYSA merged with Kotak Mahindra)
Both serve in south and north (Punjab) respectively. This will increase their customers diversity.
Large banks in line with Goldman Sachs etc can offer variety of financial services to customers.
NPAs get distributed and recovery is hastened.
Market share and revenue increases along with decreased competition
Better managerial and infrastructure, technology capabilities
Tax savings and increased investment
INTEREST RATE CUT, MONETARY EASING
RBI has kept interest rates unchanged for quite sometime. A low interest rate is believed to increase industrial growth.
But, reasons for low investment are not only the above but also bottlenecks in the administration namely red tapism, list of unnecessary clearances, adhoc tax system etc.
Otherside of the coin in fiscal consolidation:
Infrastructure and social sector investment pays in the long term. Aggregate demand rises.
It expands potential output by increasing productivity boosting capital.
Recently, government decreased social sector spending by 11,000 cr. Our five year plans after independence also had low spendings on social sector. In the long term this
stunted India's growth and despite having huge demographic dividend, skilled labour and organized sector employment are minimal.
5/25 rule: A loan/asset with a term of 25 years that can be restructured after 5 years. (Corporate Debt Restructuring)
Done away with
BASEL III norms:
Basel in Switzerland, started in 1988, revived in 2007 and 2011
Will come in effect from 31 march 2019, In view of 200708 financial crisis (fall of Lehman Brothers)
Under this, banks have to keep Total Capital Adequacy (CRAR) as 9% of total riskweighted assets where,
Minimum tier 1 capital of 7%. (Tier I capital : Common stocks, preferred stock; contains debt and equity, retained earnings)
Minimum tier 2 capital of 2% which included government securities, bonds which are less liquid.
Tier II bonds
Revaluation reserves; deferrable and cumulative as compared to preferred stocks
Riskier to customers; fear of insolvency of banks
Costlier to banks as more interest rates
Why?
To deal with financial stress and better risk management
Indian banks may not behave like US banks so fuss is unnecessary.
Banks need more capital but government denies infusion. Hence they have to create capital through bonds, equities, divestment etc.
In case of bankruptcy, preferred stocks are first cleared followed by bonds and lastly the common stocks.
GST (Goods and Services Tax)
A value added destination based tax which subsumes all indirect taxes and consolidates them into one is in process.
Will be charged on proceeds above Rs 10 Lacs
VAT on goods only
State charge tax on goods and not services.
Centre charges tax on services and manufacturing but not wholesale/retail trade
The finance minister has recently announced his intention to phase out direct tax exemptions to the corporate sector. The budget documents estimate these exemptions at Rs 62,398
crore for 201415. The corresponding excise exemptions, on the other hand, are estimated at Rs 1,84,764 crore (three times the corporate direct tax exemptions and comparable to the
total excise revenue of Rs 1,85,480 crore). If these indirect tax exemptions are significantly reduced (as is in any case required under a GST regime), the standard rate can be
brought down appreciably. As per government data, excise tax exemptions and taxing goods at low rates result in foregone revenues (tax expenditure) of Rs 1.8 lakh crore
for the Centre, and about Rs 1.5 lakh crore for states. India loses about 2.7 per cent of its GDP because of exemptions.
GST amendment bill 122 ???
1.Centre to charge sale of goods and states to charge services.
2.Setting up of GST council and State GST 12% high for 3 years to compensate losses.
A 1% origin based charge proposed for source states (likely to be discarded) to compensate them as GST is destination based; rich states like Gujarat, Maharashtra which are manufacturing
states stand to loose in GST; Destination states like Kerala, Bihar will gain
Issues
1. Consensus between centre and state
States were not agreeing on inclusion of petroleum and alcohol in GST as it would decrease their revenue. For ex: Maharashtra has >50% revenue from petroleum and petroleum products.
2.Revenueneutral rate
Central and state GST rates were proposed to be below 12%. but, different states have different sources and amount of revenue. Interstate variability has to be taken into account.
Neither very low (12%) nor very high (27%) RNR is needed.
3.Service tax of states excluded
4.Implementation of GST
It will be tough to implement GST and states will have to be given compensation for losses for 5 years.
GST network to operate with technologyintensive methods of collecting taxes, filling returns, notifying malpractices. Digital divide in India. Need of Cyber security
5. Inclusion of ecommerce and real estate (will curb black money generation and promote lowcost housing) in taxation.
6.Consumers,Industry,Traders not involved in debate and timeline decided for adoption is not achievable.
7.
Effects
POSITIVE
1.Producers & Consumers will be relieved with no tax cascading effect
2.Tax base will widen with more production and low rates will eventually increase revenues.
3.Production costs would decrease with credit at every stage of input. This will make exports competitive.
4.More foreign investment as tax laws will be business friendly; tax evasion will decrease
5.Earlier exempt services like education will be taxed; states get share from service taxation
NEGATIVE
5.End consumer will be burdened with indirect taxes.; a shortphase of inflation may occur
6.Political and fiscal autonomy of states will be affected as they cannot exempt/increase tax on goods at their whims as taxes will be decided and fixed by GST council.
Membership of GST council is 1/3rd of centre and 2/3 for states collectively
State's reservations
1.Sales tax on Destination
Loose Central sales tax part
Cenvat given to states
Would exceptions undermine GST?
Revenues lost so states must be compensated
Regular assessment will be needed; revenue authorities have to be supportive while dealing with taxpayers
FDI
Foreign exchange >Rs 600 Cr require Cabinet Committee on Economic Affairs approval which is chaired by PM (AircelMaxis Rs 3500 Cr deal passed by FIPB)
FDI inflows:
1.Services sector 17%
2.Telecommunications sector 7%
3.Construction Development sector 10%
FDI or Foreign Direct Investment is investment by a foreign company through acquisition/merger or setting up of subsidiaries in India.
This eats up entrepreneurs, startups; domestic intelligence gets limited
FPI or Foreign Portfolio Investment is investment by foreigners in securities of government or corporate bonds. It is
very volatile as a rare projection of changing interest rates would lead to withdrawl or transfer of investment.
FDI has not led to transfer of technology rather we pay for using IPR
Global interest rates, market volatility can lead to sudden outflows; hence domestic investment or reliance is needed.
Black Money in infra from tax havens
FIPB (Foreign Investment Promotion Board)
Constructed under PMO during 1990s reforms.
Transfered to DIPP in 1996 whose norms are followed.
Transfered to Ministry of Finance; Department of Economic Affairs in 2003 but DIPP norms were retained:
Investment upto 600 crores requires approval of industry mnister.
Investment more than 600 crores would be submitted to CCFI (Cabinet Committee on Foreign Investment)
Further investments need no approval if below 600 crores but approval for >600 crores and notification within 30 days of receipt
of funds.
Consists of secretaries of DEA, DIPP, DoC, etc comprise 7 permanent members and others can be coopted as secretaries.
Issue of MAT (Minimum Alternate Tax)
Companies which showed book profits after giving dividends to share holders and going through deductions showed no profits
applicable for any taxes. These companies were called 'Zero Tax Companies'.
MAT is applicable to all companies under Companies Act, 1956 except power and infrastructure. Free trade zones, charities,
venture capital are exempted.
Section 115JA was introduced in IT act to take MAT @18.5% in 19978
MAT is issued at 18.5% if the income tax paid by corporates is below 18.5% of book profits.
For example, a company showed 20 lakhs in book profits and after deductions its income became 10 lakhs which is taxable under IT
act. Then tax @25% on 10 lakh is 2.5 lakh. But under MAT @18.5% on 20 lakhs is Rs 3,70,000. Thus companies were dodging taxes.
FM made MAT inapplicable from 1 April, 2015 but the issue of retrospective taxation is there.
Problems with companies
A bad signal to FDI/FPI as more taxes less investment.
Dividends, profits already distributed so MAT will take a toll on Company's balance sheet.
MAT should be levied on companies having permanent establishment (PE) in India under Section 115JB of IT act specified by AAR
(Authority for Advanced Rulings)
Companies belonging to countries with which India has DTAA (Double Taxation Avoidance Agreement) like Singapore. MAT will
override those.
BIT/BIPS Bilateral Investment Treaty
Trade pact between foreign investors and the state which outlines the measures to be used in case of issues with the government.(at International Centre for Settlement of Investment
Disputes, ICSID). Currently, India is in BIPS with 83 countries. First BIT in 1994
New measures of Indian govt
1.Investor has to exhaust all measures available in India and then negotiate with govt. for 1 year before going for international arbitration
failing which terms between government and investor are liable to be cancelled. Fear of judicial delays discourages company from investing in India.
2.Applicable only to MNCs with substantial business activity in India so as to prevent them using tax havens.
3.Will include IPR issues, environmental,labour,land rehabilitation etc
Ex Impasse between local people and S.Korean steel giant POSCO..
SUBSIDIES/DIRECT BENEFIT TRANSFER
LPG subsidy
NSSO report shows that 28% of households use LPG as primary fuel with>70 % on traditional sources. Govt. allows 12 (14.2Kg) cylinders at subsidised rates per year. NDA govt. has
declared DBT for LPG subsidy with UID as target identification.
Problems
1.Low LPG usage
Urban areas use LPG more than rural households.
2.Identification of beneficiaries.
UID can help but BPL people should get more subsidies. Thus, proper KYC norms where per capita, owned assets, expenditure are used to identify poverty line is needed.
3.Misdirected subsidies
Top 15% rich households are more benefitted than poor households.
DBT can save subsidy costs to govt. and reduce nonplan expenditure along with imports of LPG.
Why is subsidy needed?
1.Developing economy
Poverty and inequality has stunted India's growth. Still, the rich are getting more rich and poor are in statusquo. So, to make resources available to poor and include them in economic
growth subsidies are important.
2.Uncertain international prices
As India became an open market economy and liberalised trade, domestic consumers and producers were also affected. Rise in prices and competition in markets affect the middle class and
poor households in India.
3.Boosting economic growth
Traders, manufacturers, producers need incentives and support from government to match global standards. Subsidies boost domestic production and lessen the imports. This not only leads
to economic growth but trade deficit is also controlled.
4.Environmental concerns
Renewables are the need of the hour. Their high cost in establishment and maintenance need subsidies from govt.
5.Agrarian economy
Agriculture is dependent on monsoons in India. Subsidies in fertlizers, seeds etc provide low costs to marginal farmers to produce. Moreover, if crop fails due to vagaries of nature then
losses are not more. (Even then money lending is highly prevalent in India in farm sector and crop failure result in suicides, Vidarbha is a burning example.)
Why is subsidy not needed?
1.Huge burden on govt. and in turn on tax payers.
Subsidies are the sole factor which increase govt. expenditure more than the revenues collected.
2.Corruption and leakage
PDS system in India is famous for leakages and corrupt practices. Consumers too waste products if they are subsidised.
3.Less incentives to producers
Farmers with subsidised factors of production, MSPs may get dependent on govt. and marginalise their produce to subsidised crops. This may affect the variety of produce. For ex:
Oilseeds cost huge import burden on India as MSPs are not for these crops and
farmer's too find it unprofitable to grow.
4.Harms people
Fertilizers are used injudiciously. Equal prices do not give private players to go to villages.
Overuse of water depletes water table which affects poor farmers.
Freight subsidies to make transport of products in and out of villages not supported by traders as rates very high which compensate
low passenger fares.
5.Non targeted schemes
Subsidies are mostly nontargeted in India. this leads to less benefits to poor households and restriction of benefits to already
affluent households. Also, grey distinction areas of BPL & APL limit the identification of target groups.
Water subsidy benefits 80% private taps rather than 65% public taps.
Railway subsidies benefit rich than lower class who use 28% of railways services.
DBT
1.Conditional transfers
Norms where money has to be used in child development (Human capital)
Unnecessary delay in submitting proofs occur.
2.Unconditional transfers
Pilot study shows that it leads to better use of money for education, small businesses, clearing debts and using it for their own benefits better than subsidy schemes which are delayed and of
low value.
UREA SUBSIDY
Problems
1.Huge burden on exchequer
Increased subsidies with low urea prices (86 $ MT) put crores of burden on govt. with international prices quite high.
2.Nonagriculture use
Low prices lead to misuse. urea is used for other activities.
3.Wastage of Urea
Nitrogen, potassium,Phosphorous ratio is disturbed with injudicious use of urea.
4.Soil degradation
Excessive use leads to leaching of nutrients. Soils have been found to have deficiency of N, P, K, S, Zn, Boron.
Kerosene subsidy
Government decided to end subsidised kerosene through PDS
Reason
Leakage 40% of total PDS
Kerosene was adulterated to petrol and kerosene
Profitable business to have kerosene and petrol service stations due to fuel diversion.
Effects
1.Import bill
Kerosene substituted by solar lanterns will decrease oil import bill.
B.K Chaturvedi committee, 2008
In view of NSS data 2005
Kerosene primarily for lighting and 1% use for cooking.
With electrification use has fallen.
2.Only BPL and unelectrified households
49 million BPL households use kerosene in India.
Targeting them will save 19,000 crores of subsidy.
MARKET MODEL ECONOMYIS IT FAILING?
Presently, world is in economic slowdown since 2008 when leading US banks were rescued from bankruptcy by federal government. (Failure of Lehman Brothers). Indian economy has
shown an up and down pattern of growth.
DEVELOPED WORLD
1.Credit infusion economy
Loans(Credit) to consumers (corporates, households etc)> NPAs> Burden to govt.>load on tax payers>Demand slows> Central banks
monetary stimulus to rescue.
2.Printing Money
Consumers take loans for things they can hardly maintain and eventually default on payments.
Low saving rates, focus on shortterm financial aspects rather than long term plans to sustain income are prevalent in developed world.
3.Interest rates
Debt to GDP ratio keeps on increasing.
A shift in interest rates cause havoc in markets.
DEVELOPING WORLD INDIA
1.High saving rates
High saving habits of Indians save them from vagaries of international prices. But, as Indian economy opens more problem can
arise.
High domestic consumption of products will keep India secure. (Make for India)
2.Good money gone bad
Credit infused in real sectors, infrastructure have led to huge NPAs of banks.
Hence, monetary stimulus on sectors which ensure maximum productivity is needed. (16% of private projects are redundant)
MAKE IN INDIA
Industries of importance
Defence
Electronics; 45 bn $ imports' will rise to 300 bn $
Agroprocessing; food spoiled in storage
Infrastructure
Pharmaceuticals
Constraints & Remedies
1.Infrastructure
Poor transport facilities like roads, port connectivity etc
Electricitypoor supply with distribution losses
Need for environment friendly infrastructure (renewable energy)
2.Credit access
SMEs are poorly fundedTedious KYC norms, High interest rates
RBI's policy of constant rates since 2 quarters may be affecting credit to SMEs, though the focus of our discussions go to corporates which contribute 15% to GDP with 10% labour force.
Need for more liberal norms for SMEs to formalise them.
3.Land availability
Though government allocates land to industries work is delayed for a long time.
Tribal land rights, poor rehabilitation and compensation with no environmental impact assessment ultimately stalls growth.
(Kundakulam N.P, TATA Nano plant in Singur, W.B, POSCO in Orissa)
Proper Land Acquisition Policy with relief and rehabilitation of displaced population. Bringing states in confidence and persuading them to change laws; foster competitive federalsim
4.Poor human capital
70% of workforce is educated but only 10% are skilled.
Poor quality of education, health care etc affect human resources. (Need of a National Health Policy)
Education with skill development for employment. Improving ITIs an option.
5.Regulatory hurdles
Red tapism, bureaucratic inertia, rigid laws prevent establishing of industries and investors are demoralised.
For ex: to get clearance for industries one has to get environmental regulation ratification under environment act, air pollution act, forest act etc.
Recent TSR Subramaniam committee report called for relaxation and consolidation of environmental laws.
6.Labour regulations
India doesnot have business friendly labour laws, Trade unions strike on their whims, Factory act, labour regulation act create problems in smooth functioning of industries.
A well written labour policy with inspections and checks to look for the rights of emloyee and the employer is needed.
7.Tax constraints
High taxes prevent better profits for companies. MAT and DDT non exemption for SEZs caused a slack in their functioning and most of them lie dormant.
GST can be beneficial for both corporates and government as well as consumers.
8.Business environment
Corruption rampant at all levels is a festering issue. Pleasing ministers to officials for setting up industries, SMEs, have stunted economy's growth since ages.
Tough merger and acquisition laws, arbitrary laws on dispute settlements
Use of technology to curb corruption, making visits to government offices only requisite in important matters or industries of national importance like defence, food, pharmaceuticals etc.
Egovernance is a better option. Make all approvals online followed by doorstep survey.
Amended Arbitration and Conciliation act, 1996
9.Intellectual Property Rights
India is a signatory to TRIPS but a well formulated IPR policy is absent. This causes patent issues as seen in Pharmaceutical industry.
USA has always been apprehensive in transferring technology to India despite years of defence trade, business activities.
Transfer of technology will only be feasible if India provides protection to foreign intellectual properties. It will lessen India's import expenditure.
Most importantly, every state is compliant in some aspect and deficient in another. Hence, a MAKE IN INDIA initiative considering every state's priorities will be more effective than a one
size fits all policy.
Way ahead
1.Public investment
As PSU banks supply 80% of the credit to industries in India, the projects are highly leveraged. (70%, highest in the world).
PPP has increased NPA of banks and many projects are jammed. Under such circumstances only public investment can bring the economy on right track.
Better policy making like the new National Capital Goods Scheme to make India a net exporter of capital goods. HIEMDA or Heavy Industry Export and Market Development
Assistance Scheme, budgetary allocation, Technology Development Fund, new accreditation and standards facility.
2.Credit supply
As RBI decreased SLR (Feb,2015), money will be pushed in the economy.
Also, banks are being given freedom to choose lending rates according to class of borrowers.
But due to overburdened NPAs, banks are unwilling to provide credit to private players.
3.Inflation targeting
MSPs contribute heavily to inflation in India. Hence, keeping MSPs at reasonable rates are important.
Also, oil prices are low and poised to be low in future. This will further cause interest rates lowering.
4.Investment in sectors
Government should first try to start projects which need small push.
It should concentrate on roads, rural housing, urban housing (Slum renovation). This will save extra money in sanitation and have a multiplier affect in the economy.
5.Start and transfer
All projects lying dormant should be brought back on track by government.
Taxation system should be clear and investor friendly in SEZs etc. Then, government can act as a regulator and transfer it to private players.
Bureaucratic inertia, bottlenecks like tardy environmental laws etc must be reformed to start development.
6.Efficient Judiciary
Law Commission of India in 253rd report demand of fast settlement of commercial disputes
A separate commercial division in courts to hear cases vaued above Rs 1,000 cr.
Supreme court will allot judges and transfer cases.
Lack of judges in comparison to pending cases is an issue which must be resolved before foreign investments.
7.Change in tax structure
Tax sops like MAT in SEZs.
Lowering of corporate tax to 25% which will be a game changer for MSME sector.
8. R &D investment
Government mulling over reserving a part of tax exemption mandatory for R & D in industries.
Invent, Discover in India
POVERTY
Poverty Line
Rural at 201112 prices
Alagh,
1993,Lakadwala
Rs 650 per person per month
2009, Tendulkar
2014, Rangarajan
Rs 1407 per person per month in urban areas
30.9% of rural and 26.4% of urban were BPL in 201112.; All Indiaratio was 29.5%
SECC data
8.69% of rural households with one of seven deprivations.
0.01% households suffer from all
identification of beneficiaries
Some indicators do not necessarily define poverty; landlessness will increase with growth in nonagri jobs.
NSS Data
30.9% in 201112; equal to households with 2 deprivations
Per capita data as compared to household data of SECC
used to assess changes at national, state or district level
Rangrajan Panel
Elements Includes fats, proteins in diet. (Tendulkar Committee only on calories)
1.Expenditure on food and nonfood items like housing, clothing, education, conveyance etc.
2.Behavioural calculation of consumption expenditure on nonfood items
3.Household savings.
OIL BONDS
Meaning
These are bonds issued by GoI to Oil companies which produce and sell petroleum products incurring losses due to subsidies and price ceiling of the government.
Why issued?
1.Government has to provide LPG, petrol, diesel etc at reasonable rates to consumers. So, Oil companies keep selling price lower than cost of production on government's directions.
2.Government must compensate oil companies, hence bonds are issued which carry 67% interest rates.
3.Oil companies need money, hence they sell these bonds in market to mutual funds etc and earn capital.
Effects
It adds to debt of the government as government has to pay beneficiaries (mutual funds etc) in future.
BBPS (Bharat Bill Payment System)
An integrated bill payment system with interoperable, instant receipts, multiple agents involved in providing services and multiple payment modes.
AIM
1.Will allow consumers to pay electricity, water, education bills at a single place.
2.To track all payments being made within the economy.
3. Will contain corruption as government will have records of fees received.
Structure
1.It includes setting National Payment Corporation Unit as the nodal agency for operating BBPS and makes it Bharat Bill Payment central Unit (BBPCU)
2.A Bharat Bill Payment Operations Unit (BBPOU) with multiple agents will work under BBPCU.
3.Banks, payment gateways etc will also be included in this system.
Quantitative Easing
1.Signalling effect
A message to investors, markets that the central bank is determined to improve markets and promote business.
2.Portfolio effect
People get money in hands as central bank buys back bonds>Money invested in overseas bonds i.e outside euro zone>
>Exit of funds lowers the exchange rate, making exports cheaper, imports dearer>Inflation rate increases.
SHOME PANEL Tax Administration Reforms Commission report in 2012
Setup by UPA governemnt on public outcry against retrospective taxation
1.Section 9 of IT act 1961 says that capital gains arising from indirect transfer of overseas sale can be taxed only if substantial part of
the company's total value of global assets derives from India. (Vodafone case)
2.It declares that 'substantial' part as 50% of the assets.
Income tax returns should also include wealth tax details
Reforms in Tax administration
Abolish the post of Revenue secretary
Merge CBDT and CBEC
Use of PAN
GES (Global Exhibition on Services)
In April, 2015
Global platform for increased trade and services.
Multilateral partnerships with countries for FDI
Greece in crisis
Solutions
Austria and Germany used Stamp Scrips in 1930s when their economies collapsed
It was a piece of paper with boxes made in it.
It has to be stamped regularly otherwise its value would decrease.
This cured unemployment, corruption and economy revived in fascist Europe.
Monetisation of Gold
3 Programmes:
1.Gold Monetisation Scheme
2.Sovereign Gold Bond
3.Gold coin
Why?
1.Because it has intrinsic value
2.Low Crude oil prices being nullified by import of golds. CAD increasing.
(Rose from 471 tonnes in 200001 to 906 tonnes in 201415.)
3.Illegal gold seized more than 1000 crores in value in 201415.
4.Indians fond of gold; have 20,000 tonnes of gold
Domestic demand of 850900 tonnes every year can be made from reshuffling this amount gold.
Gold as reserves
Indians have a tendency to keep gold as reserves inspite of low Purchasing Power capacity.
Converting gold to money in banks will lead to financial inclusion.
Process
Customers will go to banks where they will sign for gold monetisation. Jeweleries wiil be melted to take accurate amount of pure gold. The total amount of Gold will be converted into bricks.
Customer can withdraw cash in lieu or deposit the gold brick. Certain interest rate will be awarded which will show increase in quantity of gold or one can en cash it with interests earned.
For exDeposited 10 gm gold will become 11 gm at the end of one year etc.
1.Gold Deposit Scheme, 1999
Didnot work out cause of ceiling on amount of Gold (500gm) which can be monetised.
2.Holding gold as securities.
High interest rates in a modified gold scheme.
Taking loans on gold. for ex Mannapuram gold loans etc.
3.Indians prefer jeweleriesTraditional usage
4.Temples like Padmanaswamy Temple treasury and others can be used.
Religious hurdles need to be treated.
Coal block allocation
Reverse auction and forward auction.
1.Reverse auction
Being followed in present coal block allocations.
A ceiling is fixed by CIL in discussion with experts and GoI.
Bidders bid on how much discount can they give to consumers.
For ex Rs 100 as ceiling, Rs 80 as bidding price.
It means Rs 20 will be discounted to consumers.
2.Forward auction
Price declared by CIL above which biddings are done.
Transfer price of coal to nonregulated end product exceeds the same supplied by CIL.
International prices add to glut in profits.
Problems and benefits
1.Transparency
Coal block allocation may fetch government Rs 10 lakh crores. (Loss was 1.86 lakh crores)
2.Problem to bidders
High bidding price or discounts may make coal mining nonfeasible.
This may stuck Ultra Mega Power Project with operators raising hands on fund crisis due to low profits.
Forward auctionTransfer price of coal to nonregulated end product exceeds the same supplied by CIL.
International prices add to glut in profits.
National Payment Corporaton of India
Setup by RBI
For financial services
RuPay for financial inclusion in similarity with VISA, Mastercard
National Financial Switch (NFS)
1st ATM in 1987 by Hongkong corporation
Swadhan was launched to manage ATMs across India
NFS was launched to connect all ATMs in India.
FSLRC (Financial Sector legislative Reforms commission)
1.Single complaints resolution agency
Effects
Trust among consumers with greater responsibility in sellers.
Create corruptionfree environment.
Indian Financial code
INTEREST RATE CUT by RBI
Reasons
1.Fall in consumer inflation
Inflation falls due to increase in supply or low demand in economy.
Excessive fall will lead to deflation thus harmful to economy.
Hence, RBI cuts rates to bring money in market to create demand by increasing purchasing capacity (spending) of people.
2.To aid economic growth
More money for corporates, MSMEs.
More creation of public assets
But countering bureaucratic inertia, fast approval of projects, government reforms in governance are needed too.
Implications
1.Pressure on banks to cut rates
Monetary transmission not carried out by banks similarly, the reason being:
*Small saving schemes like KVPs had high interest rates; Government recently cut those rates
*But rating of savings schemes like Sukanya Samridhi Yojana and long term 510 year bonds have been kept high
*High NPA
*High SLR, CRR
2.Increase in loans to consumers, corporates etc
This will make loans cheaper, consumers can adjust the term of their loans or increase EMIs.
3.Credit off take to pick up
Peter Pan Syndrome
Small firms prefer to be small to avoid transparency
They never want to grow big, technology is avoided when corruption is there.
With decreased corruption more technology is adopted.
EU debt crisis
Why?
1.Global recession
Banks in Europe who have loaned to US could not get their payments
Credit crunch occurred in European banks.
2.Investor sentiments
Investors earlier thought their funds were safe in Euro zone.
Credit crunch made them anxious and they started selling bonds of countries like Greece,Spain
These countries were already in debt as Greece due to social welfare, pensions, increased wages.
Defaults risk increased interest rate on bonds in the market as people demand high rate for assumed risks.
But countries were already in debt, how will they pay?
3.Housing bubble burst
Ireland invested freely in housing but when bubble burst due to low housing returns it ran into debt
With global recession, housing prices fell which increased credit crunch in banks.
4.Decreased revenue
People paid less taxes, spent less thus affecting revenue of governments. Thus huge debt situation arose.
5. Devaluation not possible
Euro cannot be devalued, hence countries went into crisis as exports remained dud. Balance of trade was negative
6.No fiscal union
Euro was common to all but fiscal policies were independent. Thus spending of governments varied. Huge debts in Greece, Ireland.
7.No lender of last resort
In case of defaults there is no Euro zone institution or a permanent bank to loan them. IMF bailouts are roped in.
Currently, European Commercial Bank (ECB) only has role in monetary decisions.
Solution
1.Decreased public expenditure
Greece is doing that but it will cause less growth and more instability in future as unemployment will rise.
2.Exiting Euro and devaluing currencies
But investors are attracted with Euro and not individual currencies.
3.Bailout packages by stable economies like Germany
As these economies performed better due to trade surplus they never cared about others.
4.Fiscal planning
Changes in fiscal governance of defaulting countries. But it may be sovereignty issue.
AIIB and its effects
Asian Infrastructure Investment Bank was established at Beijing with a corpus of 100 bndollars, subscribed capital of 50 bn $
Bretton Wods Institutions World Bank with 232 bn dollars and Asian Development Bank with 165 bn dollars.
USA, japan, Philippines refused to join.
Supplementing EBRD or European Bank for Reconstruction and Development setup in 1991 for Eastern Europe.
China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake respectively in the newlyformed bank. Their voting shares
are calculated at 26.06 percent, 7.5 percent and 5.92 percent.
Issue
1.China the new economic behemoth
USA's role is being challenged
India and other emerging economies like Africa have to be cautious of Chinese Hegemony
2.Developing countries
Infrastructure in developing countries need a boost
Need of infrastructure, roads in Africa, India
3.Decreased capital in Bretton woods
Developed countries of Europe in crisis
India and China has capital to supplement funding
Geo strategical Impications of AIIB
Self sufficiency with reduced dependence on bretton wood institutions which in turn minimises the monopoly of west.
Capital support to Asian countries
Infrastructure development will need $8 tn in 2020. World bank and IMF donot have sufficient resources to feed that demand.
Increased trade between nations which will mask over border disputes.
China and India emerge as strategic players
Considering much larger economy of China. It may dominate like the US and EU.
Rise of developing countries
Western supremacy will be curbed. Military and technolgical exchange will follow. A parternership amounting to
political, economical and defence relations will follow.
Developed south east Asian countries can support poor countries like Bangladesh, India, Pakistan ,Afghanistan etc
How depreciation of rupee manifests for India?
1.Remittances increase
Remittances to India are cost effective at 4 percent than global average of 8%. G20 decided to lower rate to 3%
Blue collar workers irrespective of exchange rate remit.
White collar and High Net Worth Individuals see it as better returns on investment
2.Favoring exports vs imports
RBI buys dollars to create artificial demand by decreasing its supply in the market. This depreciates rupee.
Demand for dollar increases, price of dollar increases and rupee depreciates.
However, rupee has depreciated only 45% wrt to dollar as compared to Japanese yen, pound, Australian Dollar and Euro. This is because of huge inflows of FII/FPI in India.
This has helped other emerging countries currencies to gain over rupee and boost their exports and hurt Indian exports. India has remained a non export led economy but is shifting to
export led growth (Make in India, Exports formed 25% of GDP in 2013).
Imports are decreasing due to low oil prices, depreciating rupee but exports are also decreasing due to relatively slow depreciation of rupee against dollar. Oil prices have decreased by
>20% as compared to 5% decline in rupee.
3.Public investment
Government should counter red tapism, corruption and restart stalled projects to boost growth. Public investment is needed in the beginning. This would crate demand in economy and
domestic consumption will increase making it resilient to external impacts.
4.Increased investment
IT, Pharma sectors will benefit as more investments will come.
India stands to gain from China as FDI destination.
However, steel, banking, textiles sectors will loose as currency depreciates. NPA of banks will increase.
PENSION
According to World Bank India has better savings than UK, US but insurance coverage is less only 8%
NPS, EPF, Mutual Funds
EPFO and reforms
Government raised maximum payment on demise of an EPFO contributory employee for more than 12 months to 5.5 lakhs from 3.6 lacs. (15,000 as maximum salary per month; 12
months average plus 20% bonus; 20 times of this amount)
Functions
1.Unorganized sector benefits; pension or insurance
2.Low interest rates and inflation decrease amount paid after retirement;
Inflation indexed bonds, investing in equity of 15% from 5% of total assets
3.Low cost loans for housing; not necessarily low cost
Need is for education loans as middle and lower class want education for their children.
Bank loans costly; tedious KYC; less supportive to low income groups.
4.Earlier EPFO accounts had to be changed with change in job but now a single PAN account number will take care of
contributions.
Way ahead
1.Boost to young who believe in instant money; life has no certainty so better keep it
Whereas old prefer future plans and invest in pension schemes
2.EPFO made an option; one can opt NPS or private pension funds.
3.Decreasing administrative costs under EPF, NPS
4.Bajpai committee report for improvement in NPS
Assigning management of NPS to PFMs or Pension Funds Manager which will also diversify their Assets Under Management (AUM)
Need of a regulator like PFRDA to fix prices of PFMs; the reason for slow take off of NPS roots from low fixed prices i.e 0.01% which makes it uneconomical.
Facility to open NPS accounts online; online account for subscribers who do not need to show documents
S. Asia is important geopolitically and not economically?
India's biggest markets are international.
NAFTA, ASEAN gained success because
1.Levels of development were different; US & Mexico economy 10 times difference; not much difference in India and neighbors
2.Mexico looked USA as anchor economy; S Asia will not support India in forefront
3.Mexico got access to US markets and liberalised its economy; S Asia may not favor universal liberalisation
4.No other alternative than USA; China is an alternative in S.Asia
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.
It was established in the year 1988 and given statutory powers on 12 April 1992 through the SEBI Act, 1992.
SEBI is composed of
The chairman who is nominated by Union Government of India.
Two members, i.e., Officers from Union Finance Ministry.
One member from the Reserve Bank of India.
The remaining five members are nominated by Union Government of India, out of them at least three shall be wholetime members.
Important functions performed by SEBI:
Approve by−laws of stock exchanges.
Require the stock exchange to amend their by−laws.
Inspect the books of accounts and call for periodical returns from recognized stock exchanges.
Inspect the books of accounts of financial intermediaries.
Compel certain companies to list their shares in one or more stock exchanges.
Registration of brokers.
Tax reformsThomas Pikketty
Taxing wealthy more
Income tax processes to be transparent; publish individual wages, nonwages, tax paid; to check who is getting richer and why?
FMC merger SEBI
Currently 43 of the 113 commodities that are notified for futures trading are actively traded in 4 national exchanges and 6 commodityspecific exchanges.
Forward Contracts Regulation Act stands diluted with forward market under ambit of Securities Contracts Regulation Act, 1962
Rajan Committee 2009
Merger SEBI FMC
Separation of monetary policy and banking regulation of RBI
Financial Sector Oversight Agency (led to formation of FSDC or Financial Stability and Development Council and PFRDA)
Bringing financial intermediaries like SBI, PSBs, SBI associate banks etc form special statuses to general statuses (LLPs or BIC making them State Bank of India Ltd)
Streamlining tier 2 regulators like NABARD, SIDBI, NHB; separating regulation of functions and commercial functions
Percy Mistry Committee 2007 or HPC to make Mumbai an IFC
Integrate all financial regulation into single agency
From entity based regulation to sector based regulation like for banking, monetary policy, securities and commodities in one etc
For example a regulator for banking business but separate regulator for banks governance
Challenges for SEBI in relation to futures
Infrastructure building; trading is not done panIndia on electronic format
Warehousing Development and Regulatory Authority (WDRA) a important part of Forward market will not be under SEBI
APMC products will be kept in these warehouses and their quality will determine effective delivery of products; SEBI does not deal with actual delivery
but only cash based transactions; Engaging with FSSAI for better quality assurance will be needed
States regulate prices of commodities; bringing them under one eye will be tough as FMC suffered from over regulation by MCA or Ministry of Corporate Affairs and State governments
apathy
Way forward
Allowing FPIs or Foreign Portfolio Investment in commodities and futures market.
Boost to investors as brokers will now be regulated as was not possible in FMC
SEBI has better market surveillance, enforcement standards and mechanisms; SEBI has access to call data records now for better checks; A commodity futures cell has been
established to better manage
MCA or Ministry of Corporate Affairs announced merger of NSEL or National Stock Exchange Limited the ponzi scheme firm of Jignesh Shah with its promoter FTIL or Financial
Technologies Limited; To compensate investors with losses of more than Rs 5000 crores
More options to investors
However, SEBI's experience in futures market is less and future will only speak of Futures trading regulations
Professional Tax
Article 276 allows state government and local bodies like municipalities to levy professional tax
Source of income for municipalities are mainly professional and property tax; 21 states impose PT
Ceiling of Rs 2500 at present; Chennai sources annually 200 crores form professional Tax
Need of infrastructure building; need to increase revenue; demand to increase PT to Rs 12,000
14th FC recommended increase in PT; legislation of state needed to make PT an important source of revenue for municipalities
US; Federal and State both levy PT; Government of India Act 1935 too called for levying of PT by provinces;
Union government should act as a facilitator
Seventh Pay Commission
1st pay commission setup in May 1946
Set up by a resolution dated 28th February 2014 under chairmanship of Justice Ashok Mathur.
2 full time members and one part time member and a secretary
Given 18 months to submit report; ended on 31st December 2015
SUGGESTIONS
1.10 Lakh crore to meet liabilities or increase in salaries
Threshold limit for mandatory PAN requirement raised to Rs 5 lakh and above from Rs 2 Lakh now
Income tax exemption ceiling to 4 lakh from present 2.5 lakh
Service tax exemption limit raised to 25 lakh from 10 lakh
More allocations for agriculture sector and settingup of an ICVR or Indian Council for Veterinary Research to boost milk production
Bring in more clarity to and awareness about government's new schemes.
Budget should give relief to industries in settingup sewage treatment plants
More allocations for drip irrigation systems to save water
Some members suggested greater focus be given on providing employment opportunities in rural areas.
Changes in Indian GAAP or Generally Accepted Accounting Principles to affect Indian Pharma, IT, infra, telecom
IFRS (International Financial Reporting Standards) and Indian GAAP; a set of rules, procedures and standards that publicly traded companies use to prepare their financial statements.
It gives investors confidence to invest in these companies; penalties if not acording to GAAP.
It brings transparency in companies management; however companies can dodge these rules and inflate their health.
Deepak Mohanty Panel setup by RBI
Phasing out interest subvention not necessary as it helps farmers even in normal conditions (lower cost of loans) while insurance helps only when crop
fails
Girls still dropping out of schools, excluded from inclusive development; hence SSY needed to incentivise parents
Fertilizer subsidies increased from 18,000 crores to 70,000 crores in 201415; DBT is better option for agri inputs
Many parts of NE, eastern and central India excluded; last mile delivery systems needed; JAM trinity effectiveness needed.
MSMEs need to be financially supported without any hassles; rolled back by incumbent government; need to amend old schemes and not dismantle
Bankruptcy law
To check failure of company and to check whether it can be salvaged
Why needed?
Loss to creditors with 25.7 cents recovered form 1$ which is lower than SE Asia (36) and OECD (72)
Long, time taking insolvency procedures in India which is 4.3 years on average as compared to 1.7 years in OECD. (WB's Doing Business Report)
Companies, Banks and government regulations delay resolution. Promoters litigate unnecessarily.
Out of court resolution measures like SARAFESI, CDR only for banks, NBFCs and not for unsecured creditors or debt holders. Debt Recovery Tribunal and DR Apellate Tribunal have less
manpower.
No concrete legal infrastructure
Sick Industrial Companies Act, 1985; Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and SARAFESI or Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 failed to meet expectations
BIFR (Board of Financial Reconstruction) under SICA (Sick Industrial Companies Special Provison Act )impedes insolvency. Companies act is also not supportive
Under CA, 2013 insolvency process is started only when 50% of debt is defaulted.; loss is done and resolution will not be effective
Ease of doing business in 2015 ranked India at 142 among 189 countries and 137 in insolvencies. A bankruptcy law will attract investment
Bankruptcy Law Reform Committee Report by TK Vishvnathan in March 2015
Secured and unsecured creditors can initiate insolvency procedures.
NCLT or National Companies Law Tribunal under CA act is given with the power to look faster insolvency of companies/ DRTs for individuals
75% creditors must consent for dilution of proceedings or change in administration and appointment of a company administrator and moratorium on insolvency proceedings.
Unsecured creditors may proceed for insolvencies if 25% or more of companies assets represent unsecured credit.
Way ahead
State of DRT is worrisome, NCLT is overburdened and yet not in operation due to a petition declaring it unconstitutional in SC.
Merging of all insolvency procedures into a single law.
Sections 243 to 245 of the proposed code amend laws relating to central excise, income tax and customs to safeguard the priority rights of secured creditors over tax dues
Section 224 of the code creates an insolvency and bankruptcy fund that will receive grants from the Central government, deposits from any person or any other sourceTPP
Circumvention of Rajyasabha to escape logjam; this bill was passed as a money bill; Speaker under Article 110(3) certifies a bill as money bill; an unconstitutional act; speaker
too takes oath of allegiance to CoI
Proposed IBC or Insolvency and Bankruptcy Code
The Code seeks to repeal the Presidency Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920. In addition, it seeks to amend 11 laws, including the Companies
Act, 2013, Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and Sick Industrial Companies (Special Provisions) Repeal Act, 2003, among others.

A creditor's committee comprising of creditors, insolvency professionals, banks will be formed; 75% of vote is necessary to decide whether liquidation or methods to revive the
company has to be applied
A legal infrastructure is provided with insolvency professional doing work in a time bound manner of 180 days; a extension of 3 months is granted if 75% creditors agree after which the
company will have to be liquidated; during this period assets of company are secure and creditors cannot interfere; it is based on debtors commitment to revive company;
Insolvency regulator: The Code seeks to establish the Insolvency and Bankruptcy Board of India, to oversee insolvency resolution in the country. he Board will consist of
representatives of Reserve Bank of India, and the Ministries of Finance, Corporate Affairs and Law.. It will register information utilities, insolvency professionals and insolvency professional
agencies under it, and regulate their functioning.
Insolvency and Bankruptcy Fund
Information Utilities: Will maintain a range of financial information about firms; creditors would know financial information of debtors
Bankruptcy and Insolvency Adjudicators: (i) the National Company Law Tribunal will have jurisdiction over companies and limited liability partnerships, and (ii) the Debt
Recovery Tribunal will have jurisdiction over individuals and partnership firms. Appeals against orders of these tribunals may be challenged before their respective Appellate Tribunals,
and further before the Supreme Court.
Offences and penalties:Imprisonment of up to five years, with a fine of up to one crore rupees. The fine will not exceed five lakh rupees.
Preference order for insolvency procedure:i) insolvency resolution costs, including the remuneration to the insolvency professional, ii) secured creditors, whose loans are backed by
collateral, dues to workers, other employees, iii) unsecured creditors, iv) dues to government, v) priority shareholders and vi) equity shareholders.
Issues
Usually secured creditors will dominate committee; they will prefer liquidation against recovery to sell collaterals and get their money
Unsecured creditors will hope for recovery but their voice may go unheard; this will result in inefficiency
Infrastructure of insolvency professionals does not exist in India; NCLT not constututed
Earlier laws had same duration of resolution; did not comply; why now?
Companies do not declare balance sheets properly and do creative accounting like Satyam case; stigma attached to it
Considering slowdown in private sector investment; ARCs would find it difficult to find buyers
Hierarchy of regulators; IBB regulating Insolvency agencies which in turn will regulate Insolvency professionals
Asset Reconstruction Company
A bad bank to buy NPAs from all the PSBs and overtake the process of recovery.
Is it justified?
For
High NPA of banks; low transmission rate of monetary policy cuts
India cash starved and needs investment; BASEL III requirements need to be fulfilled by 2017
Priority sector and other welfare schemes give banks less profit as compared to private banks; hence bailout
Better to manage as banks are not able to track defaulters effectively in an overburdened environment
Against
Taxpayer's money to be wasted for bad loans; not needed; Money needed for welfare schemes
Wilful defaulters list and public shaming and strict action not taken; politicianscorporatebankers in nexus
Banks need governance reforms; free from clutches of political interference
Accounting System
Cash accounting in Government which recognises transaction when it is made whereas accrual accounting measures transactions when the money changes hands actually.
Accrual system in medium and large companies to compare efficiency; Government canuse it to assess public and private hospitals difference in cost effectiveness or in other agencies.
14th FC recommended; 12th FC raised issue of bringing states on board which may use different accounting
In short, government spending must be transparent and reflect details in CAG reports which at present uses Other spendings in majority of expenditures.
Amendments in Companies Act suggested by a committee appointed by GoI
Generic Object clause
Section 4(1)(c) should be amended allowing promoters to setup new business or any lawful activity.
This should be discarded as promoters have earlier formed fake companies or invested money for their selfish needs without the consent of shareholders. This ease of doing business
should not be at the cost of investing public.
Subsidiaries
Amending the clause which prohibited more than two layers of subsidiaries for investments.
Black money issue is perennial issue in India and companies are known to siphon off money by creating multiple subsidiaries. Also, for corporate restructuring and the need of
infrastructure investment such clause is needed. Hence instead of completely eliminating the clause, central government should regulate establishment of multiple subsidiaries.
Independent Directors
Section 149 says that independent directors cannot have any monetary or financial relationship with the company. SEBI also says of no such relation for the current year and last two years.
This committee suggests of including a parameter to check such relationship within the law. Irani committee talked of transaction by an independent director upto 10% of turnover of
company which was not accepted.
Such suggestions should not be accepted considering independence of directors an important feature of corporate governance.
ManagingDirector Definition
The act omits function of MD in the superintendence and direction of Board of Directors. The committee rejected any such inclusion saying it can be inferred easily.
But with complex litigations any leeway in such clause should not be there.
Others
NFRA or National Financial Reporting Authority should be established early; consultation with ICAI (Institute of Chartered Accountants of India) for its jurisdiction.
Amendment in selection committee and qualification of technical members of NCLT and NCLAT which have not been setup yet under CA 2013 according to SC judgment of May 2015
CASHLESS ECONOMY
Open wallets
Can be used to store money, withdraw from ATMs, transfer funds; MPesa of Vodafone
Closed wallets
Money refunded after return; can be used only on that platform; Flipkart
Semiopen wallets
Have to spend what is uploaded, cannot be encashed again; Airtel Money
Semiclosed wallets
No cash withdrawal but can buy goods and services; Paytm
GES or Global Exhibition on Services
2nd edition in April 2016 to boost trade and FDO in services sector; organised by Government alongwith CII and Services Export Promotions Council
India to raise TFA in services in WTO
Focus on banking, financial, education and environmental services
For science to have an impact, it has to be more egalitarian.
Earth does not belong to man but Man belongs to earth.
Earth overshoot day the day when global demand for resources exceed what earth's ecosystem can renew in a year.
Gandhiji said that the earth has enough for everyone's needs but not for greed.
Theme of World Environment Day, 2016
"Go Wild for Life" (ZERO TOLERANCE FOR THE ILLEGAL WILDLIFE TRADE).
Angola is the host country of this year.
“Your temples are made of bricks and cement; ours are these hills, forests, leaves and streams. If you dig these, we will die with our gods,”
A tribal in Niyamgiri hills
2,000 arsenic and 12,000 fluoride affected rural habitations in the country.
UNESCO report, “World Heritage and Tourism in a Changing Climate (2016)". Many national parks in Africa, AsiaPacific at threat. Sunderbans and Australian Great Barrier Reef
not reported.
WWFIUCN Report
Protecting people through nature
manas sanctuary, sundarbans and western ghats under threat
wg supports single largest population of endangered asian elephants and vulnerable Indian bison
threats from oil extractions mining in wg; manas from unsustainable water use; sundarbans with water management issues
survey estimates of 11 million people dependent on natural heritage sites for food shelter medicine water.
New Snake species in Gujarat
Wallaceophis Gujaratensis
Belongs to Family of Colubrid snakes
S&T woes
Electric fencing killing wildlife; black bucks killed in Telangana by illegal electric fencing; farmers do that usually to prevent elephants from trampling fields.
Ballast water bringing invasive seaweeds like seaslug or Winged Thelacecra in Southwest coast of India to Indian waters; 10,000 marine species exported annually
Afforestation
In Karnataka, where more than Rs. 1,500 crore have been spent on afforestation projects over the past 30 years, data from the Forest Survey of India shows that dense and moderately
dense forest cover in the State went down by 2,898 sq km between 1997 and 2011. In Maharashtra, a recent official evaluation of tenyear old plantations (20042014) in all 11 forest circles
has shown that 74 per cent of them have failed while 13 per cent are partially successful and only 13 per cent successful.
Earlier prediction of fuelwood using village communities causing deforestation was proved false in reports in 1990s
NCAER report showed that firewood use in rural areas has not led to decrease in forests; people use tree plantations, Julifora weeds and other plants for fuel; The 2011 State
of Forest Report, published by the Forest Survey of India, corroborates this. It estimates that in 2010 the total fuelwood used was 216 million tones. Of this, only 60 million tonnes,
or 27 per cent, came from forests. The rest came from private or wasteland.
In many parts of the country people make rational and careful choices of multiple sources of cooking energy fuel. They use a combination of biomass, expensive and often
unavailable LPG, and kerosene to cook. The decision depends on the type of food and cost involved. This has averted a major ecological crisis.
Black Mambas, an all female award winning patrol, for 19,000 Rhinos in Kruger National Park, South Africa where poaching has reduced with efforts from officials and involving local
communities in conservation.
EVMs were used throughout the country for the first time in the 2004 general elections. The use of EVMs in 2004 saved around 1,50,000 trees which would have been cut to produce
about 8,000 tons of paper for printing the ballot papers.
Koringa Wildlife Sanctuary, East Godavari district, T.N; Sperm whale skeleton
Climate Bonds by Hero Corp; certified by Climate Bonds Initiative Standards Board, a nonprofit organisation
Bhagatpur Crocodile Project in sunderbans
started in mid1970s
Aims
To increase salt water crocodiles, a schedule 1 species under wildlife protection act, 1972.
Present status
1.Saltwater crocodile number has decreased due to habitat loss, overexploitation of their prey i.e fish.
2.Global warming poses aproblem to maintain sexratio.
Migratory birds
During winter
1.Siberian crane
2.Greater flamingo
3.Ruff
4.Black wind silt
During summer
1.Cuckoo
2.Asian pevele
3.Eurasian golden auriele
4.Black brown heron
5.Home duck
How tigers are spotted and counted?
>2000 tigers in Wildlife Institute of India survey
1.Photos or plaster casts of pugmarks
2.Thermal cameras or usual digital cameras Each tiger has distinct stripe pattern.
3.DNA analysis of scats
4.Extrapolation through statistical and mathematical methods.
Efforts to increase numbers
1.Voluntary relocation of forest dwellers.
2.Severe crackdown on hunting
3.Preventing harmful land use changes.
4.Keeping an eye on poaching.
5.Better identification and monitoring with scientific methods.
Tiger census
The number of wild tigers has gone up globally by 22 per cent to 3,890, from the earlier 2010 estimate of 3200, based on the best available data, according to the World Wildlife Fund
and the Global Tiger Forum (GTF).
India leads tiger population countries with an estimated population of 2226, according to a 2014 national survey. India’s own tiger population has gone up significantly from 1706, as per
its own national estimates, reported by the IUCN in 2010
Global Tiger Initiative process that began with the 2010 Tiger Summit in Russia. Governments at that meeting agreed to the Tx2 goal to double wild tiger numbers by 2022. 3rd
summit at New Delhi in April 2016
Tiger sanctuaries
Maharshtra; Tadoba, Melghat, Pench, Sahyadri, Nagzira, Bor
Karnataka home to 406 tigers; Bandipur 2nd largest in the world
CAMF bill 2015is erroneous in the sense that it will fuel corruption and inefficiency; forests would not be rehabilitated in a biodiversity like manner.
90% of Rs 35,000 crores assembled in CAMPA to be disbursed to states and 10% for National use
Issues
Unavailability of land
Land needed for industry; how to get for forests
Complete rehabilitation
Forests need biodiversity; species which can adapt to surroundings; poor quality plants never lead to forest like growth
Using up of grasslands; ecosystem imbalance; Kendrujhar mines case where grasslands were turned into forests
A 2013 CAG report noted that state forest departments lack the planning and implementation capacity to carry out compensatory afforestation and forest conservation.
With the share of funds transferred to states increasing from 10% to 90%, effective utilisation of these funds will depend on the capacity of state forest departments.
A High Level Committee on Environment Laws observed that quality of forest cover has declined between 1951 and 2014, with poor quality of compensatory afforestation
plantations being one of the reasons behind the decline.
The Bill delegates the determination of NPV (value of loss of forest ecosystem) to an expert committee constituted by the central government. As NPV constitutes about half of
the total funds collected, its computation methodology would be important.
Way ahead
Regeneration of old forests; funds primarily for these degraded forests
Environmentalist experts and other supervision in afforestation keeping in mind the biodiversity of location
Supreme Court guided establishment of National CAMPA advisory council to resolve disputes between states and guide formation of state CAMPA
Evidence we’ve started an‘Anthropocene’
We’ve pushed extinction rates of flora and fauna far above the longterm average. The Earth is now on course for a sixth mass extinction which would see 75% of species extinct
in the next few centuries if current trends continue
Increased the concentrations of CO2 in the atmosphere by about 120 parts per million since the industrial revolution because of fossil fuelburning, leaving concentrations
today at around 400 ppm and rising
Nuclear weapon tests in the 1950s and 60s left traces of an isotope common in nature, 14C, and a naturally rare isotope, 293Pu, through the Earth’s midlatitudes
Put so much plastic in our waterways and oceans that microplastic particles are now virtually ubiquitous, and plastics will likely leave identifiable fossil records for future
generations to discover;
Ideonella Sakaiensis a microbe which breaks PET or Polyethylene Terpethalate the daily plastic polymer into MHET or which is hydrolysed by MHETase to ethylene glycol
and terpethalene; recycling can be possible if MHETase is used to recombine ethylene glycol and terpethalene into PET.
Doubled the nitrogen and phosphorous in our soils in the past century with our fertiliser use. According to some research, we’ve had the largest impact on the nitrogen cycle in
2.5bn years
Left a permanent marker in sediment and glacial ice with airborne particulates such as black carbon from fossil fuelburning
Extinct
Cheetah, Banteng, Sumatran and Javan Rhinos
Critically Endangered
Pygmy Hog (Manas), Malabar civet, Large rock cat, Kondana rat
Pollinators (towards extinction)
BirdsHumming bird, honeybee, whiteyes, Sun birds; bees in pulses, sunflower, cardamom, apple, oranges, mangoes, coffee, cashew nuts
Sunda Slow Loris, anonflying pollinator
Annual economic value of around $235$577 bn in 2015
IPBES or Intergovernmental Panel on Biodiversity and ecosystem Services
Secretariat in Germany; administered by UNEP and UNDP
Report talks of declining population of bees in North America and Europe; increased use of pesticides, pollution, loss of habitat, climate change
India too affected with bees population declining; apple yield decreased in J&K.
Indian Long Term Ecological Observatories or ILTEO to monitor ecosystem; wild pollinators; managing urban, rural, agricultural landscapes
National Wildlife Policy
Hunting allowed for preserving traditional and religious practices
Nyshi tribals of Arunachal Padesh use artificial glass for headgear instead of beaks of Hornbill.
Habitat Shift
Mackerel shifting to coast of W.B from A.P
Apple moving up the mountains of Kulu valley
Shift in habitats of prey persuade species to move; rainfall pattern changes; global warming; heat stress etc
Pichavaram Mangroves, T.N
Different species like aviccenia, rhizophora secreting salts
Prevented damage by Tsunami through slowing the speed of waves and distributing volumes of water in natural creeks and canals.
High variety of fauna like fishes, crabs, detritus eating organisms but no algal weed due to low sunlight in the presence of suspended matter in waters
The National Green Tribunal has been established on 18.10.2010 under the National Green Tribunal Act 2010 for effective and expeditious disposal of cases

relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and
giving relief and compensation for damages to persons and property and for matters connected therewith or incidental thereto. It is a specialized quasi judicial body
equipped with the necessary expertise to handle environmental disputes involving multidisciplinary issues. The Tribunal shall not be bound by the procedure laid down under
the Code of Civil Procedure, 1908, but shall be guided by principles of natural justice .
The Tribunal's dedicated jurisdiction in environmental matters shall provide speedy environmental justice and help reduce the burden of litigation in the higher courts .
The Tribunal is mandated to make and endeavour for disposal of applications or appeals finally within 6 months of filing of the same . Initially, the NGT is proposed to be
set up at five places of sittings and will follow circuit procedure for making itself more accessible. New Delhi is the Principal Place of Sitting of the Tribunal and Bhopal,
Pune, Kolkata and Chennai shall be the other four places of sitting of the Tribunal.
CCAMlR
Conservation of Antarctic Marine Living Resources
24 nations and EU; meet every October to decide on conservation of Antarctica
Ross sea and East Antarctica conservation and declaration as MPAs
Mangar Bani forest area near Aravali Range
Ngapang
Manipur's catfish
Thoracic adhesive apparatus to cling to rocks
361 of 816 species of fish found in Manipur
High diversity of aquatic fauna because of two river basins; BarakBrahamputra and Chindwin river basin
Whale Watch Tool
Released by NOAA to protect endangered blue whales.
1/4th of 12,000 blue whales are in Pacific ocean
GPS tags on blue whale species and tracking through satellites by NASA and other agencies.
Short finned pilot whales
Died as were stranded in groups at Gulf of Munnar; Tuticorin district, T.N
May have reached near shore to help a distressed group member and met their waterloo.
These whales are deep sea whales diving to 1000 metres below surface water.
International Whaling Commission (IWC)
International body set up by the terms of the International Convention for the Regulation of Whaling (ICRW) signed in Washington, D.C, United States, on 2 December 1946
to "provide for the proper conservation of whale stocks and thus make possible the orderly development of the whaling industry"
In 1982 the IWC adopted a moratorium on commercial whaling. Currently, Japan, the Russian Federation and a number of other nations oppose this moratorium. The IWC allows non
zero whaling quotas for aboriginal subsistence and also member nations may issue 'Scientific Permits' to their citizens. Japan has issued such permits since 1986,
Norway and Iceland whale under objection to the moratorium and issue their own quotas. In 1994, the Southern Ocean Whale Sanctuary was created by the IWC.
To keep under review and revise as necessary the measures laid down in the Schedule to the Convention which govern the conduct of whaling throughout the world.
Provide for the complete protection of certain species; designate specified areas as whale sanctuaries; set limits on the numbers and size of whales which may be taken; prescribe
open and closed seasons and areas for whaling; and prohibit the capture of suckling calves and female whales accompanied by calves.
Encourages, coordinates and funds whale research, publishes the results of scientific research and promotes studies into related matters such as the humaneness of the killing
operations.
Western Ghats
Kanam ecogrove in western ghats, Kerala, Kovayai river.
Palakkad Gap; 45 km ; biodiversity at stake with sand and granite minning
Biodiversity Board was to restore Bhartaphuza and its tributaries, massive afforestation with the help of NGOs, Biodiversity Youth clubs and including it in MNREGA
a nonstarter as biodiversity board blames local bodies; meanwhile with depleted forest cover summer will become unbearable
Monosodium Glutamate
Salt of amino acid glutamate; naturally occurring in vegetables and fruits
Used as taste enhancer, USFDA approved.
According to FSSAI (Food Safety and Standards Authority of India), it should not be added to infants
Permissible lead amount is 2.5 ppm. These are governed under Codes international standard 249.
Hot spots of poaching of elephants in Africa
1.Savannah elephants
Tanzania and Mozambique
2.African elephants
Tridom (Parts of Gabon, Republic of Congo, Cameroon) & Central African Republic
Global Extinction
6th mass extinctionLast extinction of dinosaurs (65 mya)
100 times faster than background ratenormal rate between mass extinctions.
Humans responsible41% amphibians, 26% mammals on brink according to IUCN.
Extinct species
Pyrenean Ibex, Quagga (subspecies of zebra), Tasmanian Tiger, Great Auk (flightless bird in Canada, UK, Iceland)
Solid waste management in India
There are no estimates with municipalities on managing solid wastes.
Sanitary landfills are getting costlier and polluting ground water, surroundings. Moreover, cost of land is increasing.
Deonar, landfill in Mumbai caught fire as it got saturated completely. Mumbai generates 10,000 tonnes of waste per day.
Small cities generating more wastes than before like Ludhiana with 850 tonnes per day
Ragpickers are a burgeoning part of informal economy. Many earn Rs 250500 perday. They get into agreements with companies and
provide them with recyclable waste. They must be formally included in MSW by municipalities.
Brazil, Cairo have micro companies operating as waste collectors.
Separation of bio and non biodegradable is not done in cities completely; proper following of rules can help in MSW. Teaching residents on separating wastes at home is necessary;
Digging compost pits at home; A mumbai family keeps MSW in plastics and form compost and sells it to neighbours and others who want it for growing plants at home.
It is a 600 million $ industry in India helpful to environment presrvation also.
PPP (Polluter Pays Principle) must be invoked in India. Consumers, businesses, producers all can be levied taxes in PPP.
Recent central government initiative to make it mandatory for private distributors to buy power generated from solid waste power plants.
India plans to generate 700 MW from solid waste.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=138591
Harmful effects of plastic:
New Delhi generates almost 250,000 tons of plastic waste every year
Over 10 million plastic bags are used and discarded daily
Plastic can have harmful effects on aquatic and terrestrial animals too
They are nonbiodegradable and take as long as 1,000 years to fully break down
Plastic bags, if not disposed properly, may find their way into the drainage system, resulting into choking of drains
Coloured plastic bags contain certain chemicals, which can leach to the ground and contaminate soil
According to the reports, India's consumption of plastic is one of the highest in the world
About 100,000 animals such as Dolphins, Turtles, Whales, Penguins are killed every year due to plastic bags.
Phytoplankton absorbs as much CO2 as Tropical Forests which can also help in keeping temperatures below 2 degrees
Subhash Kumar vs. State of Bihar (1991)
Supreme Court held that the Right to Life is a Fundamental Right under Article 21 of the Constitution and it includes the right to the enjoyment of pollution-
free water and air for full enjoyment of life.
WWF Report on Oceans
Oceans a 24 trillion dollar economy but sinking fast
World Bank report Building Resilience for Sustainable Development of Sunderbans
Loss of Rs 670 crores due to biodiversity loss in Sunderbans. (60% in Bangladesh, rest in India)
Loss of Rs 620 crores due to health issues
Economic activities of state, unsustainable fishing, mangrove destruction are affecting Sunderbans.
Cyclones cause Rs 290 crores damage
Bee keeping interfering with pollination by flies, domestic insects as bees are more aggressive.
Mangroves in India account for 3% of world's.
West Bengal has more than half of mangrove cover in the country.
Causes for depletion
1.Increased grazing
2.Neotectonic shift in river streams
3.Dams, barrages disturbing sedimentation.
4.Climate change
5.Reclamation
Effects
Increased effect of cyclones as tidal surge is not controlled.
Loss of biodiversity
Joint Forest Management
Government i.e forest officials preserve forests with the help of local people.
People are not allowed to venture their livestock in forests.
Else they get share of revenue from timber produce.
But the revenue turns out to be very less.
The way out is to allow people conserve and manage forestlands themselves with government playing a regulatory role through inspections.
Compensatory Afforestation Fund Bill
Compensatory Afforestation Fund Managaement and Planning Authority funds of Rs 38,000 crores not utilised properly.
Diverted for plantation agriculture; undermines ecological restoration; forest is not only trees but ecological diversity
Conservation of species, protecting endangered species like Caracals, gugong etc
Centre for Environment Law vs UoI, SC held that critical areas and species should be conserved through concreted actions
NHAI wanted funds to construct over and under passes and prevent animal deaths.
Carbon emission capture
Killing of animals at roads, unmanned railway crossings
Roads are an ecological trap for wildlife
Principle of avoidance can be adopted where highways are constructed away from dense forest areas
Environmental Conflicts (Atlas prepared by Current Science Journal) related to water management appear highest in India with 59 cases, followed by conflicts in fossil fuels and
climate justice category with 47 cases and the industrial and utilities conflicts category with 36 cases
Two Algae discovered in the west coast of India
Endemic to India
Ulva paschima Bast and Cladophora goensis Bast
Uses
Medicinal Kalanide F Prostate and breast cancer
Carbon capture
Biofuels and grow spontaneously
Shiwaram Wildlife Sanctuary ,Telangana
Established in 1978
For preserving crocodile fresh and marsh water In Godavari
Greenpeace Foundation
As per Foreign Contribution Regulation Act (FCRA), NGOs can only spend 50% of funds in infrastructure
Greenpeace was violating FCRA. So funds seized.

Greenpeace
is a
nongovernmental
[3]
environmental
organization with offices in over forty countries and with an international coordinating body in
Amsterdam
, the
Netherlands
.
[4]
Greenpeace states its goal is to "ensure the ability of the
Earth
to nurture
life
in all its
diversity
"
[5]
and focuses its campaigning on worldwide issues such as
climate change
,
deforestation
,
overfishing
,
commercial whaling
,
genetic engineering
, and
antinuclear
issues. It uses
direct action
,
lobbying
, and
research
to achieve its goals. The global organization does not accept funding from governments, corporations, or political parties, relying on 2.9 million individual supporters and
foundation grants.
[6]
[7]
Greenpeace has a
general consultative status
with the
United Nations Economic and Social Council
[8]
and is a founding member
[9]
of the
INGO Accountability Charter
; an international nongovernmental organization that intends to foster accountability and transparency of nongovernmental organizations
Rockfeller Foundation
2013 centenary year proposed Resilient programme worth $100 mn
Chennai, Surat, Bengaluru chosen alongwith 67 cities worldwide.
Provide knowledge about key challenges in the city and measure to tackle it
Deal with urbanisation, globalisation and climate change.
NBWLNational Board for Wildlife
Statutory organisation under wildlife protection act 1972
Includes Parliament Members, NGOs, eminent conservationists, ecologists and environmentalists, Government secretaries of various departments, Chief of the Army Staff, Director General
of Forests, tourism etc.;chosen by PMO in advice of MoEF
5 NGOS selected GEER (Gujarat Ecological Education Research), Aranyak of Assam, BNHS, WWF, Nature Conservation Society of
Jharkhand
47 members chaired by PM
For environmental clearances of the project.
Help government in framing poicies.
Environmental Impact Assesssment
Recommends state governments on boundaries of National parks, wildlife sanctuaries
No alteration of boiundaries of Tiger reserve except on its recommendation with national Tiger Conservation
Authority
Issues
Selection of members not transparent; cronyism
Development vs Environmental conservation; 200 pending approvals; tardy clearances
Case in Supreme court; shift in focus to utilitarian; environment in jeopardy
Gorumara National Park, W.B
330 species of butterflies safe haven
Only 80 sq km
Schedule I
Wildlife act, 1972 Animals most threatened
Bicolour Cupid & Malayan Nawab
Schedule II
Witch and Branded Young Fly
Chestnut breasted Partridge birdVulnerableFound in Arunachal Pradesh, Lower Tibet along Himalayas, Bhutan
New frog species named ‘Indirana Salelkari’ discovered in Goa
BNHS (Bombay Natural History Society)
Founded in September, 1883
Largest NGO in biodiversity and conservation in India
Supports many research efforts through grants and DoS&T made it Scientific and Industrial Research Organisation (SIRO).
Dr Salim Ali, famous ornithologist associated with it
Flamingo festival in Feb, 2015
National Conservation Society, Palamu, Jharkhand
Since 1976, an NGO
Formed for conservation of forests and wildlife with Tiger Reserve, Palamu
Sustainable ecological dvelopment as an aim
International Union for Conservation of Nature and Natural Resources
Mission is to conserve natural diversity around the wrold
Publishes 'Red List' of endangered species
HQGland, Switzerland
Threatened species
Critically endangered+Vulnerable+Endangered
Others
Extinct
Extinct in the wild
Near vulnerable
Least concerned
Data deficient
unknown
Lions in Gujarat Gir forest; Junagadh, Somantah, Bhuvanagar, Amreli and Dwarka, only habitats of lions in Asia
Aranyak of Assam
Based at Guwahati
Involved in conservation of natural biodiversity in Eastrn Himalyas
SIRO declared by DoS&T
Carries out environmental education programmes.
Involved in counting tigers in Kaziranga, rhinos etc
GEER
setup in 1982
Ecological education and research
community participation
Wildlife Research and Conservation Society (WRCS)
Survey of Forest owlets a critically endangered in Maharashtra
Founded in 2005, located at Pune.
Environmental activists should take up only those issues which are really problematic rather than being an obstacle in projects which can generate employment and prosperity to nation.
The International Tropical Timber Organization (ITTO) is an intergovernmental organization that promotes conservation of tropical forest resources and their
sustainable management, use and trade
Ramsar wetlands
Sambhar Lake (largest among 26 ramsar sites in India)
#Birdlife International, USbased identified 466 birdliferich habitats in India in 2004.
#It resurveys them every 10 years. BNHS acts as a partner.
Ramsar convention has listed 2122 wetlands of international importance spread across 20.53 crore hectare across the world.
26 Ramsar sites in India
Threatened due to salinity, inundation, degradation, road development, rapid urbanisation
At present, 51 sites were listed in the Montreaux Record established in 1990. Indian sites in the Montreaux Record are Keoladeo National ParkRajasthan, Loktak Lake –
Manipur, Chilika lake was taken out.
Sasthamkotta Lake, largest freshwater lake of Kerala
Vemband Lake; Ashthamudi Estuary fed by Kaada river
The Changwon Declaration highlights positive action for ensuring human wellbeing and security in the future under the 5 themes ㅡ water, climate change, people's
livelihood and health, land use change, and biodiversity
Theme of wetlands day 2016
Wetlands for our FutureSustainable Livelihoods
Birdlife International
It is a global partnership of
conservation
organisations, NGOs have independent identities, that strives to conserve
birds
, their
habitats
and global
biodiversity
, working with people towards sustainability in the use of natural resources.
It is the world's largest partnership of conservation organisations, with over 120 partner organisation
It enlists birds for Red List of IUCN
5 Redlist birds
1.Lesser Flamingo
2.Ferruginous duck
3.Spotted redshank
4.Blacktailed Godwit
Raptors in India
India is home to 18% of raptors (birds of prey)
They maintain ecological balance by controlling population of small mammals and rodents.
Signatory for conservation of raptors.
Critically endangered
1.Slender billed Vulture
2.Indian White backed vulture
3.Long billed vulture
4.Red headed vulture
5.Forest owlet
6.White bellied heron (W.B, Bangladesh, Assam)
7.Great Indian Bustard (Rajasthan, Gujarat, Pakistan) of Great Indian Desert
Endangered
1.Egyptian vulture
2.Saker
Vulnerable
1.Chestnut Breasted Partridge found in Eastern Himalayas in Arunachal.
2.
Antarctic ice; Resilent to G.W. at present
SeaBED an Autonomous Underwater Vehicle mapped Antarctic ice.0
Upward facing sonar used
Satellite method misleading due to snow on ice.
Ice Effects
1.Carbon sink
Too much heat would leave oceans and cause G.W.
2.Holes in ice called POLYNYAS important
Act as natural vents of heat
Arctic Ice
IndARC is the first underwater moored observatory in the Arctic ocean at kongsfjorden ford, between Norway and North pole.
#Aim
To check melting of glaciers due to G.W and its effect on Indian monsoon
SUSTAINABLE FISHING
Effects of human intervention:
International sea waters are tough to be regulated
Trawlers have nets with hooks in an expanse of 100 km over sea.
Turtles, birds, reptiles and other small fishes too get affected.
Populations of Bluefin Tuna, Sturgeon decreased by 70 %; Around 26% overfished areas in Asia and Africa
Fishes need time to replenish themselves and sturgeon takes 20 years to grow; migration pattern interrupted like of turtles.
Marine Stewardship Council (MSC) determines methods of SF; clam fishery in Asthamudi lake in Kerala given MSC certification
Oil spills; nuclear experiments
anthropogenic noise from ships, sonars; 76% of world trade by seas with increased cargo and millions of vessels
Dredging affecting sea bed ecology
Climate change; ocean acidification; RE systems animals stuck in turbines; desalination plants (Humans are shifting to clean energy but must not harm other species otherwise the
whole purpose of ethical and moral responsibility to environment will be defeated)
Pollution by inputs from humans
Overexploitation of fish and marine life
Dumping of untreated sewage and waste
Over mechanisation
Terrestrial pollutants carried by rivers
Pollution from industry along coast
Aquaculture farm effluent pollutes
Way ahead
17 RFMO (Regional Fisheries Management Organisation) a group of countries interested in fishing tries to manage fisheries.
NPAFC (North Pacific Anadromous Fish Commission) to preserve salmon stocks.
Members are Canada, US, Japan, Russia, Korea
Regulating time of fishing to give fishes time to spawn
Some methods
Cast net fishing used in Vietnam, needs skill.
Traditional Rod and Reel fishing Rods and reels come in different sizes.
Aquaculture Risks outweigh benefits.
Purse seiningEnvelope fishes in an enormous net.
Attaching LEDs to catch shrimps Alerts other fishes from getting trapped.
We can contribute by eating less fishes.
Laws
INCLOS
200 EEZ for commercial extraction
National Regulations Fisheries Act, 1987;
Prohibits use of poison and dynamite in the use of inshore fishing, regulates size of weirs (dam)
Amendment to Indian wildlife protection act 1993, 2002
Fish included as animals
Marine Fishing Policy, 2004
*To change marine fish production to sustainable level
*Ensure economic security of traditional fishermen
*Environmentally sustainable fisheries
*Increase export and per capita intake of fish protein
WATERSHED CONSERVATION
It includes
1.Soil conservation
2.Agriculture best management practices.
3.Reforestation
4.Riparian reconstruction
5.Forest fuel reduction.
Coal Preparation Plants
Good quality coalFly ash content <30% and Sulphur content >3%
1.Crushing and washing of coal
2.coal is separated from high density rocks after crushing and centrifuging in cyclone
3.Coal is washed in fluids where low density coal gets separated. Liberation of coal is the amount of crushing needed to separate density wise components through float and sink tehnique.
Coal base thermal power plants
Recent study by Centre for Science and Environment
Half of India's power capacity by 47 plants. Only 12 of them have efficiency >36% which is at par with China.
Fly ash generated at 160 million tonnes annually. 1 bn tonnes still unused. Indian coal of poor quality so 35% of coal is wasted on burning.
SO2, Mercury, Nitrogen oxides are produced.
Cap and trade system visavis Carbon taxation
Cap and trade
It puts a cap on quantity of emissions (flexible) and rights to emit are traded for a price among consumers.
Market based and used in US to curb SO emissions in acid rain control.
Provide incentives for emission to decline.
Only problem is that countries have to declare their emissions. So these countries which have problem can go for taxation system
Carbon Taxation
1.A cess is charged over every tonne of fossil fuel produced. UPA government proposed Rs 50 as cess over every tonne of coal.
2.As oil price has declined and Arctic is ready to be explored for fosil fuels G.W concerns are heavy.
3.Hence, carbon taxation can deincentivise emissions and shift to renewables.
4.Revenues for National Green Energy fund will increase.
Western ghats
Gadgil Panel
1.Gadgil panel was more conservative and wanted 67% of W.G declared as ecosensitive zone but Kasturi wants only 37%.
2.Zone 1,2,3,4 were divided according to biodiversity there by Gadgil. Zone 1,2 should not have any mining, quarrying and whatever minning is in zone 2 it should be phased out.
3.Aithrapily dam in kerala, Gunti Dam in karnataka should not be constructed; allowed by Kasturinangan with 30% uninterrupted river flow
Main issue
Government talks of environment friendly steps but committees are formed and reports are carved to suit government's development projects.
http://mrunal.org/2013/02/enbgadgilpanelreportonwesternghatsrecommendationsecologicallysensitivezoneseszwgeapart3of4.html
Kasturinangan Panel (To be implemented soon)
1.It was formed to study plausibility of Gadgil report.
2.90% of the forest left in Kerala or 60,000 sq Km and 37% of total hilly area will be declared as Ecologically Sensitive Area
3.Complete ban on mining activity with limitations on hydroelectric projects; opposed by Kerala and Karnataka government as anti
development
4.Consent from gram panchayats mandatory. No township permitted
5.2 Maharashtra states Ratnagiri, Sindhudurg can be engaged except ESA
6.Setting up a national authority to regulate exploitation of western ghats; Western Ghats Ecology Authority
Issue
Kasturinangan report gives a bit relief than Gadgil panel which wanted moratorium on any type of activity in western ghats.
May be corporate lobby and state connivance.
GO NO GO Zone
MoEF issued details on mining areas which should not be used and turned ecologically sensitive; 536 mines
Criteria of classification based on forest density, forest type, biodiversity richness etc.
In 2010 49% was declared; but in 2012 nine blocks were assessed and only 23.27% was declared as GO NO GO zones.
Environmentalists have raised red flags; industrial pressure may harm environment; violation of wildlife protection act; judiciary may intervene.
Coal production needs to be upgraded; less coal block allocation will hurt energy needs
Sustainable Livelihoods and Adaptation to Climate Change Fund
1.Setup to supplement adaptation in farmpractices like MNREGA in Bihar and Madhya Pradesh in view of climate change.
2.World bank to donate 8 mn $ to India.
Environment laws diluted by politicians
why in news?
J. Natarajan blamed Rahul gandhi for interference in environment related ministerial decisions
It points out that politicians are superior than laws in environment regulation.
Issues
1.Favouring industrialists
FRA, 2006 has been diluted New criteria for forestsThose forests where tribals had proof of living 75 years before 31st December, 2015.
It will favour industrialists and lead to easy clearing of forests without the consent of tribals.
India based Neutrino Observatory (INO)
Proposed in 2000
Neutrinos
Chargeless particles like photons but with some mass may be millionth of an electron's mass.
Types electron, muon, tau
Conversion/oscillation in each other normally with mechanisms known but not about tau to electron
Whole universe has neutrinos but are not detected due to cosmic rays interference.
It requires huge rock cover to filter cosmic rays. hence an underground observatory.
Why needed?
1.Can answer about origin of universe, big bang etc.
2.Neutrinos can be used to transfer data fast than present radars, towers, satellites etc
3.Pilferage of nuclear material for weapon rather than power as it detects plutonium
4.Track minerals and oil deposits in earth crust
5.Detect cancerous tumors by analysing photons from PET scan.
Issue
People protesting on it being radioactive, weapon of USA by fermilab etc.
For INO
1.Neutrinos emerge from radioactive material but are not radioactive themselves.
2.Destruction of aquifiers
Theni hills are made of nonporous charckonyte, hence nothing will be damaged in groundwater etc.
Observatories elsewhere
1.Jiangmen Underground Neutrino Observatory in China
2.HyperKamionkade in Japan
3.LAGUNA Large Appartus studying Grand Unification and Neutrino Astrophysics in Europe
Earlier attempts
Kolart Gold fields lab in 1965 but closed in 1992 when it turned uneconomical.
Conservation of water
Punjab Preservation of Subsoil Water Act, 2009
Prevents transfer of water to fields before June 10 or before monsoons.
Noncompliant farmers are fined Rs 10,000 per hectare
In Punjab, Haryana after harvesting, straw remains on field
Farmers burn these>Wind blows>Delhi chokes (Black Carbon though transient as compared to CO2 but has GHG effect)
Haryana banned it under air act
Way ahead
1.Buy straw for other purposes
Punjab has 200 MW plants to use straw for electricity generation.
2.Fertility of soil
Giving farmers support to use available equipments for sowing wheat and ploughing straw in field at the same time.
4 billion people globally face severe water scarcity; India; 1 bn people and China 0.9 bn people affected by severe water scarcity.
National Adaptation fund
Future Earth Engagement Committee
Jairam Ramesh in chair with 18 members
A sustainable development initiative under UNEP, UNESCO, World Meteorological Organistion
Canine Distemper Virus
Wild animals, dogs etc affected
It is causing massive deaths in Tiger Population as studied in Russia.
MSC (Marine Stewardship Council)
Asthamudi clam fishery in Kerala awarded.
It is for sustainable fishing.
Buyers and sellers both can be satisfied that they are not harming environment.
PM council on Climate change
To advise government on climate change
Interministerial coordination
monitoring policies on climate change.
Members
Headed by PM with 13 government (8 ministers) and 5 nongovernment members
First council by Dr M. Singh in 2007 but did not meet for 3 years.
Will formulate National Action Plan for Assessment, Adaptation, Mitigation of Climate change
Pangolins in extinction
China, vietnam, Indonesia eat their meat
Only mammal with scales
have a long tongue, no teeth.
Eat insects, termites in millions in a year.
NewtonBhabha Fund
Joint initiative of IndiaUK, 50 mn pounds over 5 years by UK matched by India.
Funds for science, research and innovation.
Mental health, neurosciences, cancer, antimicrobial resistance, renewable energy, PhD programmes in universities
Global Environment Facility (GEF)
183 countries, partners with civil society, private institutions
To address global environment issue
Autonomous financial organization which provide grants for biodiversity, climate change, international waters, land degradation,
ozone layer and persistent organic pollutants.
UNEP (United Nations Environment Programme)
HQNairobi, Kenya
World Meteorological Organization and UNEP founded Intergovernmental Panel on Climate Change, 1988., multilateral fund for GEF and implementing of Montreal Protocol
International Cyanide Management Code for Gold mining developed.
Main activities
Climate change, TACC (Territorial Approach to Climate Change Works with local level governments in developing countries), disasters, ecosystem, harmful substances etc., Funding
environment related projects.
Glaciers sinking and Electric vehicles, Marshlands project in Middle east
IPCC
Scientific,technical and socioeconomic information on climate change
Potential impacts and options for adaptation and mitigation.
IPCC 7th report published recently.
ICIMOD (International Centre for Integrated Mountain Development,1983)
Regional intergovernmental learning and knowledge sharing centre.
Serving 8 regional member countries of Hindukush Himalayas
HQKathmandu,Nepal
CSD (Commission on Sustainable Development)
Functional body of UN replaced by High Level Political Forum on S.D
SACEP (South Asian Cooperative Environment Programme)
UNESCAP (United Nations Economic and Social Council for AsiaPacific)
NOISE POLLUTION
Noise pollution Rules, 2000
1.Fixed maximum day and night decibels for residential, commercial, industrial and silence zones.
2.No loudspeakers in night after 10 pm to 6 am
3.Right to life Article 21
People can complain if noise affects their lives.
4.Right to religion Article 25
It does not give right to honk loudspeakers during religious festivals.
Problem in India
1.People make noise to show happiness in festivals, cultural meets etc
2.Politicians take out their rallies with impunity.
3.Laws not implemented.
AWAAZ foundation has worked considerably in Mumbai against noise pollution.
Effects
Hypertension, annoyance,tinnitus, hearing loss, accidents, abortions etc
AIR POLLUTION
6% of global deaths; Health cost is 3% of India's GDP; mitigation will cost 1% of GDP;
77% of urban agglomerations in India have above the levels of NAAQS (National Ambient Air Quality Standards)
Decreasing pollution increases life expectancy by 3.2 years on an average of 2.1 billion years.
Burning leaves an offence declared by S.C (More harmful than emitting vehicles)
Air quality index introduced. Daily declaration of pollution level will curtail.
Women exposed to Indoor Air Pollution (IAP);59 lakhs death per year.
Ministry of Health aims to decrease IAP by 50%
Clean cooking and electricity as Sustainable goal SDG 7
WHO estimated; 3 million die annually due to air pollution; 150,000 dying annually due to climate change
Air pollution is a menace of developing world and has a local warming effect but this does not mean that developed world is exonerated for global warming.
Effects
Lung cancer, skin cancer; 70,000 new cancer cases and National Cancer Control Programme forecast that 1,4 million peopole will be affected by 2026
Damage to plants
Damage to monuments, buildings through acid rains
Urban heat islands
Ozone pollution worsens during summer season
Black carbon accelerates icemelt; interferes with cloud formation and rainfall; light absorbing
Organic carbon and suplhate come from open biomass burning and cook stoves have cooling effect as light reflecting
Way ahead
WHO limit is 10 micrograms per metre cube
NAAQS is 40 micrograms per metre cube
Many cities including Delhi have >90 micrograms per metre cube
1.Vehicle standards
Bharat III norms must be followed
Unleaded petrol mandatory.
Electric vehicles
Public transport rejuvenation
Manpower is less, traffic police do not seize vehicles.
Corruption is also contributory, PUC is not taken
Public is not supportive and break laws with impunity.
Success depends on administrative machinery
2.Industrial reining
Draconian laws of closing industries were never followed.
Progressive fines needed
3.Other measures
ETS (Emission Trading System) is needed.
Industries buy from low polluters thus infusing credit in economy.
CMEs (Continuous Monitoring of Emissions) is needed as annual measures are not helpful.
Checking size of chimneys etc with proper inspection of plants for treatment (scrubbers) before emissions.
CSR to contribute to National adaptation Fund, Swachta fund etc.
Switching off ignition at traffic signals.
Make people aware
Inter coordination of pollution boards, power companies, LPG suppliers.
Distributing improved cook stoves, LPG (Give it up campaign will decrease subsidy costs and boost use of LPG)
4.Institutional measures
More monitoring stations
Beijing has 35, Kolkata has 20.
5.Sensitising public and administration
People and policy makers fee that the immediate effect of Climate Change is not profound. Only the future generations will have to deal with its consequences. Hence the focus
has not been enough. Recent estimates show that 250 billion dollars can be saved every year from now to 2030 through health benefits if air pollution and climate change is controlled
which is much more than the cost involved in establishing clean energy and transportation globally.
GLOBAL FOREST WATCH
Launched in 2014 by World Resources Initiative
Satellite bases data on forests worldwide.
A coalition of NGOs, Corporates like Google, universities, Brazil's Imazon, ESRI, University of Maryland etc
Useful to governments, used by Democratic Republic of Congo to prevent slaughter of elephantsfor ivory in Garamba National Park, used to check illegal fishing.
Green Highways Policy
Ecofriendly national highways
need to protect animals from accidents, habitat fragmentation due to roads, loss to biodiversity etc
Overpasses, underpasses construction which do not cross national parks etc
9.2 km stretch on NH7 highway between NagpurJabalpur resulted in 1035 kills in 2010
National Board for Wildlife reiterated National Wildlife Action Plan 200216Highways, expressways to bypass wildlife zones.
Need for Smart Highways
Plantation on 79,000 kms of national highways
Generate employment for 5 lakh people in rural areas
1 % of total project cost of highways for plantation
Ewaste
Total waste generated will be 50 million tonnes in 2 years
1.7 million tonnes in 2014, UN report
Why?
US, EU, Japan origin and China, India, Ghana, Nigeria, Pakistan, Bangladesh destinations
Digitalisation, smart phones etc
Costly to process, hence cheaper to export to India and others
Effects
Harmful to environment
Compressors imported by Pakistan but not depolluted before.
Degradation of land,water, air as incinerators are few and dumping, land filling is preferred.
Ragpickers too get affected. Children involved suffer.
Way ahead
Channelisation of ewaste to authorised dismantling and recycling units through a project run by SEWAGitanjali Cooperatives, a joint collaboration with Deutsche organisation and
Microsoft corporation
Kolkata DISHA, Bengaluru SAAHAS in tieup with ISRO; these setup collection centres and send wastes to authorised recyclers
People earning wages of Rs 4500 a month; formalisation in process
EWASTE (Management and Handling) Rules, 2011, says that producers/manufacturers of electrical and electronic equipments (EEE) and Waste EEE (WEEE) should set up
authorised collection centres to ensure maximum collection of ewaste, under the Extended Producer Responsibility, following which they have to ensure environmentally
sound disposal of the collected waste.
Bulk consumers will have to give annual returns
Mercuryladen bulbs as ewaste which will separate them from usual solid waste now
However, producers/manufacturers failing because of:
Lack of collection centres;
Nonrecognition of the vast informal sector, who can become the last mile connect to collect ewaste from individual households; and,
Absence of mass awareness programs on the need to manage discarded ewaste.
Other reasons include lack of authorised recyclers who undertake endtoend recycling.
Environmental Impact Assessment
Mandatory under Environment Protection act, 1986 for 29 categories of industries with investment more than Rs 50 crores.
National Biodiversity Authority (NBA)
Established in 2003 as a statutory, Autonomous Body
performs facilitative, regulatory and advisory function for the Government of India on issues of conservation, sustainable use of biological resources and fair and equitable sharing of
benefits arising out of the use of biological resources.
Advising the State Governments in the selection of areas of biodiversity importance to be notified as heritage sites
Headquarters in Chennai, Tamil Nadu
State Biodiversity Boards (SBBs)
Focus on advising the State Governments, subject to any guidelines issued by the Central Government, on matters relating to the conservation of biodiversity, sustainable use of its
components and equitable sharing of the benefits arising out of the utilization of biological resources;
Rregulate, by granting of approvals or otherwise requests for commercial utilization or biosurvey and bioutilization of any biological resource by Indians.
Local level Biodiversity Management Committees (BMCs) are responsible for promoting conservation, sustainable use and documentation of biological diversity
including preservation of habitats, conservation of land races, folk varieties and cultivars, domesticated stocks and breeds of animals and microorganisms and chronicling of knowledge
relating to biological diversity.
BLUE WATER ECONOMY
In September 2015, the Indian Ocean Rim Association (IORA) hosted the first Ministerial Blue Economy Conference and identified priorities. Goal 14 of the UN’s Sustainable
Development Goals (SDGs) — “Conserve and sustainably use the oceans, seas and marine resources for sustainable development” —reduction of marine pollution, conservation of coastal
and marine areas and regulated fish harvest. The convergences in the IORA and SDG agendas have to be developed into action.
Antarctic Treaty 1959, Montreal Protocol, 1987, Antarctic Environment Protocol 1991
Difference between North and South conservation
The global north believes that environment is something out there; it does not have humans as inhabitants
Also, forests in north do not have human inhabitants as compared to the global south where forest tribes are there
The global south believes environment as the necessary part of human life whose preservation includes benefit of humanity.
Hence the north makes national parks, zoological parks as compared to south which has sacred groves and other hotspots.
Resource Politics
Nations fighting for freshwater resources.
For example Israel, Syria, and Jordan in the 1950s and 1960s over attempts by each side to divert water from the Jordan and Yarmuk Rivers
Turkey, Syria, and Iraq over the construction of dams on the Euphrates River.
Indigenous People
Mapuche of Chile, Tribals of South Asia, Small peoples of Soviet North
Many indigenous tribes of Latin America, North America and Australia were wiped out during colonialism. Many of the present nations have asked for forgiveness, confess and repent the
crimes committed by their ancestors.
The World Council of Indigenous Peoples was formed in 1975. The Council became subsequently the first of 11 indigenous NGOs to receive consultative status in the UN
AMPHIBIANS
Toadskinned frog Indirana phrynoderma, which has been classified as Critically Endangered in the Red List
36 species of frogs in Munnar. Of these, nearly 50 per cent are threatened by extinction.
The Anamalai gliding frog (Rhacophorus pseudomalabaricus), Green eyed bush frog (Raorchestes chlorosomma,Raorchestes griet, Raorchestes munnarensis and the Resplendent Shrub
FrogRaorchestes resplendens) are the critically endangered species in the region, says the IUCN Red List.
Research on tadpoles of dancing frog ; life cycle completed only if critical features of landscape are preserved which demands no human interference in their habitats;
7300 known species are threatened; western Ghats ESA at threat; climate change, pollution; excessive hunting by tribals for tadpoles for food
but through scientific evidences tribals have been made aware of importance of frogs and their life cycle; decreased incidence now
Such keystone species which needs preservation
CORALS
*Are polyps like sea anemones with tentacles, supply water & CO2 to algae
*In symbiosis with zooxanthellae, which provides food to corals.
*Secrete calcium carbonate and form exoskeleton.
* Benefits: Large biodiversity of fishes, Prawns,crustaceans found.
Protection to beaches,coastal communities
Maintain pH of Ocean
Medical uses, treatment of cancer, HIV, CVDs, ulcers etc used in bone grafts
Jwelleries
Comparable to tropical rain forests
Rising ocean temperature, UV radiation, PAR has lead to CORAL BLEACHING
Corals expell their zooxanthellae and starve to death.
Slow growing corals are adapting to high ocean temperatures (>2 celsius)
Corals ingest microplastics (<1cm) in their digestive system.
Coral reefs found in Sindhudurg coast near Malvan, Maharashtra pristine and unbleached.
Corals in Lakshadweep have MAA or Mycosporine like Amino Acids; boosts cellular tolerance to dessication and heat stress, protects from mutations
100 species of corals in Lakshadweep sea
Snowflake coral found in Gulf of Mannar, A&N islands and Goa; invasive species
Grows in underwater structures like metal, plstics, concrete
At Thiruvananthpuram and Kanyakumari amidst Barnacles cluster.
Forest Fires
Uttarakhand reeling under forest fires since February attained massive proportions in AprilMay
Dry Chir Pine tree is responsible; dry needles which fall on ground have resin which is highly inflammable
Drought like conditions, climate change, dry environment support forest fires in absence of moisture in soil.
Solutions
Picking up of these dry needles by forest dwelling communities; making it a MNREGA related work; incentivising them to make tiles, brickbats from
FRPs
Plantation of other varieties in a mixed manner; according to altitude, ecology of the region; planned cutting of chir pine trees
Modern technology tools like remote sensing, early warning and detection systems via radio acoustic sounding systems, doppler radar etc
Soil moisture conservation techniques; keeping soil wet will prevent fires
Using social media, communication tools to create awareness among people; a JFM or Joint Forest Management type approach where communities are supported by authorities in
managing forests.
Animal Welfare Board of India (AWBI) is an independent statutory body that functions under the Centre, and People for the Ethical Treatment of Animals (PETA), are
the main organisations fighting for the rights of animals. (Right against cruelty)
In 1991, the Environment Ministry had banned the training and exhibition of bears, monkeys, tigers, panthers and dogs. In 2011, the Ministry through a fresh notification included bulls in the
list notified in 1991.
The 2011 notification paved the way for the ban of jallikattu and bullockcart races in TN and Maharashtra and elsewhere. In May 2014, the SC held that bulls cannot be
allowed as performing animals either for jallikattu or bullockcart races in the country. The SC order also identified “the five freedoms” of animals including:
(1) Freedom from hunger, thirst and malnutrition
(2) Freedom from fear and distress
(3) Freedom from physical and thermal discomfort
(4) Freedom from pain, injury and disease
(5) Freedom to express normal patterns of behaviour
United Nations Environment Programme (UNEP)
Coordinates its environmental activities, assisting developing countries in implementing environmentally sound policies and practices.
It was founded by Maurice Strong, its first director, as a result of the United Nations Conference on the Human Environment in June 1972 and has its headquarters in the Gigiri
neighborhood of Nairobi, Kenya.
The winner of Miss Earth beauty pageant serves as the spokesperson of UNEP.
UNEP has aided in the formulation of guidelines and treaties on issues such as the international trade in potentially harmful chemicals, transboundary air pollution, and contamination of
international waterways.
The World Meteorological Organization and UNEP established the Intergovernmental Panel on Climate Change (IPCC) in 1988.
UNEP is also one of several Implementing Agencies for the Global Environment Facility (GEF) and the Multilateral Fund for the Implementation of the Montreal Protocol, and it is
also a member of the United Nations Development Group.
The International Cyanide Management Code, a program of best practice for the chemical’s use at gold mining operations, was developed under UNEP’s aegis.
National Centre for Biological Sciences (NCBS)
Bangalore, Karnataka, is a research centre specialising in biological research. It is a part of the Tata Institute of Fundamental Research (TIFR) under the Department of Atomic
Energy of the Government of India.
The mandate of NCBS is basic and interdisciplinary research in the frontier areas of biology. The research interests of the faculty are in four broad areas ranging from the study of single
molecules to systems biology
Engages in a number of collaborative initiatives, such as Institute for Stem Cell Biology and Regenerative Medicine (inStem) and the Centre for Cellular and Molecular
Platforms (CCAMP) (both under Department of Biotechnology)
Together these three institutions serve as part of the Bangalore Biocluster, bringing together fundamental research, translational studies, and technology development
Bombay Natural History Society
founded on 15 September 1883, is one of the largest nongovernmental organisations in India engaged in conservation and biodiversity research.
It supports many research efforts through grants and publishes the Journal of the Bombay Natural History Society.
Many prominent naturalists, including the ornithologists Sálim Ali and S. Dillon Ripley, have been associated with it.
BHOPAL GAS TRAGEDY, 3rd December,1984
Methyl Isocyanate gas leak from Union Carbide Factory, a US company run by Warren Anderson.
Issues
1. Culprit not punished
Warren Anderson got bail and never returned and died recently
2.Poor compensation
15,000 people died and many were injured but only 430 mn $ in compensation. Also, relief measures were poor and health risks from cancers, kidney ailments have increased.
3.Govt. apathy
USA, Indian govt. in connivance neglected affected people.
4.Festering sore
Still, children born are disabled or retarded.
Message
1. Strong measures for violation of rules by corporates
Govt. should check factories of MNCs and inspect regularly. Industrial norms with environmental impact assessment must be followed. Violators must be dealt with strict measures.
Groundwater contamination (mercury,lead,chromium) from BG plant was there but no step was taken by the authorities.
2. Alarm to prevent
Efficient alarm system and necessary precautions to save lives. This was not followed in BG as authorities were aware but neglected.
LESSON: Mitigation, Risk Reduction
1.Industries should be far from densely populated areas
2.People in the vicinity of industries must be aware of toxins, chemicals if accident occurs in industry
3.Fire warning, lighting system
4.Storage capacity of toxic substances should be limited and be used asap
5.Pollution control measures adopted by industries
6.Inspection by government to check flouting of environmental norms
UTTARAKHAND FLOODS
Natural causes: 350 mm of rainfall, cloudburst over days etc
Non natural causes : River bed was raised due to heavy sedimentation and muck due to crowded run of the river projects. (5 km should be the minimum distance b/w projects.)
Effects of River dams:
floods are controlled but the non conventional construction of dams pose a problem.
Deforestation, displacement, forest area reduction etc affect the environment, increase landslides etc.
Fish migration is affected, river natural flow is affected
Chopra Committee report: Hydroelectric power projects in the paragalacial regions must be scrapped. (2202500 m above sealevel). Glacial debris, moraines can be disastrous downstream.
23 of 450 HEPs should be scrapped. Supreme court took suomoto action in UK floods after MoEF and state govt. showed reluctance.
It was feared that Uk will plunge into energy shortage and Rs 17,000 cr invested will be wasted.
TSUNAMI MANAGEMENT
CYCLONES
ESSO (Earth System Science Organisation)Integrated cyclone and storm warning system along coastal regions of India.
1.Contain 5 Doppler radars at chennai, vishakhapatnam, Kolkata, Sriharikota, Masulipatnam, 675 Automated weather stations, 1210 Automatic rain Gauges.
2.Satellite based monitoring system with high performance computing has led to early identification and management of Phailin, Hudhud cyclones.
NCRMP (National Cyclone Risk Management Project)
World bank assistance and GoI
Phase I
States like Andhra Pradesh and Odisha since 2011
Phase II
States like Kerala, Karnataka, Goa, Maharashtra and W.B from 201516 to 201920.
COAL MINE FIRE
ISGN (Indian Seismic and GNSS Network)
Started in 2013 in leadership of Hyderabad based INCOIS (Indian National Centre for Oceanic Information System)
DISASTER MANAGEMENT
IPCC 4th assessment report 2007converging climate change adaptation with disaster management
India will host Asian predisaster reduction meet 2015.
International Decade for Natural Disaster Reeduction (IDNDR 199099)
Yokohama Strategy and Plan of Action for a safer world adopted in World Conference (1994); sustainable development and disaster reduction
UN meet on Disaster Reduction, at Sendai, Japan 1418 March, 2015HYOGO Framework for Action
National Geophysical Observatory under IIG (Indian Institute of Geomagnetism) at Port Blair, A&N islands.
Floods in Thailand, Myanmar
Nepal is vulnerable to earthquakes
Eurasian plate is in constant tussle with Indian plate.
Aftershocks to be felt till 3 months.
Other earthquakes
1934Bihar8.1
1905Kashmir7.5
2005Kashmir7.6
PostNepal earthquake, India took the lead to begin the process of Simulation Exercises on Disaster Management in the region, coined as ‘South Asian Annual Disaster Management Exercise’
(SAADMEx).
The main focus of ‘SAADMEx – 2015’ will be
to test intergovernmental coordination efforts,
create synergy and synchronise efforts to institutionalise regional cooperation on disaster response among the membercountries.
Simulation demos for quake and chemical emergency will be conducted at Greater Noida & Ghaziabad
Landslides
Mass movement of rockdebris or earth down the slope.
Retention Walls should be constructed along roads to prevent accidents
Hazard mapping to prevent construction of settlements in vulnerable areas.
Increase in vegetation cover
Surface drainage control
National Disaster Management Authority (NDMA)
Agency of the Ministry of Home Affairs whose primary purpose is to coordinate response to natural or manmade disasters and for capacitybuilding in disaster resiliency and crisis response.
NDMA was established through the Disaster Management Act enacted by the Government of India in December 2005.
The Prime Minister is the de facto chairperson of NDMA.
The agency is responsible for framing policies, laying down guidelines and bestpractices and coordinating with the State Disaster Management Authorities (SDMAs) to ensure a holistic and
distributed approach to disaster management
NDRF
Poor funding; dependence on centre; neglected; even when annual budget is 350 crores
Less manpower; Chennai floods showed illequipped NDRF; Army had to be called in
Poor skills and training;
NDRF team needs coordination from fire brigade, health sector, district administration
Members from other forces; random recruitment
Obsolete technology and eqipments
Way forward
District based forces; properly trained; states funding
Odisha, Bihar, Gujarat, Assam have impressive units as compared to tsunami hit T.N
Preventive measures; creating awareness among citizens; listing these as functions of DMAs;
Better integration of members from CISF, CRPF, BSF in NDRF
UN Kalam Global Sat
· The GlobalSat was proposed in response to the need for a globally interconnected disaster and
environmental management system since no single country can afford to develop a complete set of
sensors and satellite systems needed for forecasting, monitoring and mitigating disasters like floods,
drought, typhoons, earthquakes, wild fires, windstorms, or tidal events.
· It will provide a common platform that will allow sharing of space and data segments, with an ability to
serve individual nation’s disaster management and development needs.
Soura Rath
Solar powered car generating 1 KW from solar energy during disaster or emergency situations
Odisha Renewable energy and Odisha Disaster Management Authority.
Current Affairs sources
The Hindu
Insights secure
Insights current events (During night)
FeedlyIndian express editorials
MAGAZINES
Yojana
Science Reporter online
Monthly current affairs of VISION IAS
History
NCERT notes
Romila Thapar Ancient
IGNOU
Upinder Singh maps or read full
Norman Lowe
L. Mukherjee
Grover Modern
Shekhar Bandhopadhyay
Bipin Struggle
India after Gandhi
India after Independence
Balyan Sir notes
Art and cultureNCERT, CCRT, NIOS
Writing answers previous years and test series.
Polity
NCERT
Laxmikanth
Basu
Pub Ad pdfs
ARC reports, Punchi commission
Notes
Economics
NCERT
Dutt and Sundaram
Eco Survey
ARC
Mrunal
Geography
NCERT
GOH CHEN LONG
Majid Hussain Indian Geography if possible
Sociology
NCERT
Ethics
Mishra
Insights
Writing daily+ Self Thoughts based on experience and observations
Making notes on each topic according to syllabus
Write on case studies
ESSAY
Write something daily
One essay every week on Sundays
Take one topic from newspaper and write 2 pages daily.
VIP
Solving MCQs
Revision on Sunday or Saturday
Daily revision of days work before bedHalf an hour recall
Word Meaning notes
Invisible Hand
Adam Smith, 18th century
Freemarket economy
Every one pursue their own interest/profits
Will do good as a whole to society
DEVELOPMENT
A country's well being is measured by the level of development. In recent times development is measured by Human development of a country which not only includes income but education,
life expectancy. The meaning is evolving over the years with not a single but multiple factors determining the level of development.
Development has different meanings
Every individual has his/her own thoughts of development. Some see availability of materialistic comforts as development, some see friends, family life, social interactions as necessary
part of development.
Moreover, people strive for development depending upon their living conditions.
For example, a prosperous business man would see widespread use of his products, opening of factories, more income as development. At the same time for a small farmer development
would be meeting his daily requirements of food for the family, educating his children, a pucca house etc.
However, different goals of development may be conflicting sometimes.
Conflicting goals of development
Various goals of development may be contradictory to each other sometimes. One should seek for development which is not only 'beneficial to him/her but also does not encroach on rights
of others.
For example, industrial projects, dams may be beneficial to economy of India but derogatory to inhabitants of the place of proposed project. Niyamgiri hills is rich in aluminium but tribals
are wary of Vedanta project due to their spiritual and livelihood dependence on forests.
Hence, government tries to check that development benefits all by rehabilitating the affected tribes.
Meaning of development for government
Government strives for development of the whole economy i.e welfare of all. Inequality is an effect of lopsided development which government tries to counter through its policies.
Even then, India has widespread inequality with only 86 billionaires controlling the majority of wealth in the country. Corruption is the root cause behind failure of government programs to
reach the periphery.
Hence, development is a relative term and inclusion of everyone is prerequisite for development.
World Development Report
An annual development report published by World Bank since 1978.
It is a measure of economic development based on average income of a country
It is useful to international agencies, bilateral institutions, voluntary agencies etc.
There have been reports on gender equality, climate change, disaster management, agriculture etc
Average income hides disparities in the economy. Inequality is not measured.
How is money important? Is it everything?
States like Punjab, Haryana with high percapita income have high Infant mortality rate, Literacy rate (Literate above 7 years), Net attendance ratio (610 Years of age enrolled in
schools), Child sex ratio.
Still, they perform better than Bihar, Jharkhand, Odisha etc.
Lack of availability of schools, poor primary health centres, inefficient health programmes are some causes.
Community should come forward and ask for these public facilities
Without public demand these facilities would not come as if one family wants a school, government will not find it cheap and useful.
Hence community needs to take preventive steps.
Kerala has better PDS, health care. Hence human development is better there.
Human Development Report, 2014
India ranks 135, a place below its previous year ranking.
Sri Lanka performs better than us.
Bangladesh has better IMR than India.
Q)“The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person”. How is this statement relevant to the disscusion of development? Discuss.
Sustainable development is needed as earth has limited resources. Moreover, some resources when overused damage environment.
For exFossil fuels like coal, crude oil.
We have borrowed resources from the posterity as our acts today will affect their future. Nuclear damaged areas in Japan, Ukraine etc are
harmful to children due to health related problems.
Increased use of fossil fuels cause global warming, pollution etc. Future is going to be tough if climate change is not controlled.
Overuse can use up all stock of resources.
Q)What effect crude oil has on Indian economy?
1.Growing population, growing economy, more vehicles, more demand, more imports of crude oil, more emissions, climate change, destruction, poverty.
2.More burden to public exchequer, more subsidies to oil companies, more dependence on other countries more drain of wealth.
Measures needed
1.Renewables
2.education to people on balanced use
3.Public facilities like transport, pollution norms, effective checks and balances etc (Bharat stage IV, Euro III)
4.Transfer of technology from developed countries like USA for renewable.
5.Subsidy to people for establishing solar rooftops, coal cess, Green climate fund, National adaptation fund, Swachhta fund etc
INDIACHINA
China's GDP grew at twice the rate of India from 196580. (>9%)
India has 38 bn $ trade deficit with China.
China's HDI was 0.719 as compared to 0.586 of India.
Woes of China a leverage for India
1.Environmental pollution load
2.Aging population.
3.Lags in computer services and agricultural research.
4.Export industries catching from other areas having cheap, semiskilled labour. For exIndia.
POVERTY
In urban India 26% of people are below poverty line. This poverty is not about numbers, rupees and paise. It is the poverty of absence the absence of basic necessities. It is the poverty
that forces families to make the heartbreaking choice of not treating the elderly, of taking them to their villages because they cannot afford treatment in the city. It is the poverty that
exacerbates the indignities that most elderly people suffer, regardless of their economic situation. It is the poverty of hopelessness that you see reflected in the eyes of this 'everywoman'.
Antipoverty measures
1.National Rural Employment Guarantee Act, 2005
Passed in September, 2005
100 days of assured employment to every household every year in 200 districts
Remuneration if not employed within 15 days
National Employment Guarantee Funds
2.National Food for Work Programme (NFWP)
Launched in 2004 in 150 most backward districts.
Wage employment (JOB FOR SURVIVAL) and unskilled works
100% CSS
3.Prime Minister Rozgar Yojana (PMRY)
Started in 1993
Selfemployment opportunities for educated youth
Setting up businesses, industries.
4.Rural Employment Generation Programme (REGP)
Launched in 1995
Selfemployment in rural areas and small towns
5.Swarnajayanti Gram Swarojgar Yojana (SGSY)
Launched in 1999
Selfhelp groups given bank credit and subsidy
6.Pradhan Mantri Gramodaya Yojana (PMGY)
Launched in 2000
Additional central assistance to states for health, education, rural drinking water, electrification
Issues associated
1.Lack of proper implementation
2.Meddling of programs which confuses beneficiaries.
3.poor funding leading to nondisbursal of wages.
4.Unskilled works which are not always needed as skills to these workers can secure future.
5.Corruption, leakages, poor quality of infrastructure created.
Way ahead
1.More implementation.
2.Digital monitoring
3.Electronic transfers to accounts to curb corruption through technology.
Demarcating a Poverty Line
Basic needs of subsistence not defined and is changing with time.
Poverty line is not holistic as poverty varies on the basis of society.
Data is also not comparable. However headcount ratio has decreased.
Even if one is below poverty line, the degree of poverty, deprivation is unknown.
Social deprivation, poor sanitation , drinking facility too affects poverty.
Committees
YK Alagh in 1977 on income derived from nutritional requirments
Lakadwala in 1993 on nutritional requirements, state specific poverty lines in rural, urban
Tendulkar in 2009 with education, health included, inflation changes in spatial and temporal basis, basket of goods increased and calorific value in expenditure
C. Rangarajan on 5 member family, fats & proteins expenditure also included.
ISRO
PSLV is the first operational launch vehicle of ISRO.
It is capable of launching 1600 kg satellites in 620 km sunsynchronous polar orbit and 1050 kg satellite in geosynchronous transfer orbit.
It has four stages using solid and liquid propulsion systems alternately. The first stage is one of the largest solid propellant boosters in the world and carries 139 tonnes of propellant.
NASA
New Horizon's spacecraft to Pluto
Curiosity Rover to Mars
Orion to Mars
Research in process to send astronauts to Mars; will be a joint effort of different countries; NASA, ESA, Chinese Space Agency
Mars MAVEN Mission of NASA
Aims
1.To explore Mars upper atmosphere
2.To check if life ever developed on Mars.
Meteorite hit college in T.N
Report by NCIF through a Scanning Electron Microscope (SEM) study
The NCIF or National College Instrumentation Facility (NCIF) in Trichy, is an advanced laboratory set up by the Department of Science and Technology under the Central government and
attached to National College, an autonomous institution accredited by the National Assessment and Accreditation Council (NAAC).
“Carbonaceous denotes objects containing carbon or its compounds and chondrites refer to nonmetallic meteorite parts containing mineral granules,”
Meteorites are always named for the places they were found, usually a nearby town or geographic feature. In cases where many meteorites were found in one place, the name may
be followed by a number or letter (e.g., Allan Hills 84001 or Dimmitt ). The name designated by the Meteoritical Society (nonprofit scholarly society founded in 1933, 900 scientists as
members is used by scientists, catalogers, and most collectors
ARADS (Atacama Rover Astrobiology Drilling Studies)
Studying Atacama desert as similar conditions lie in the Red Planet, Mars.
Aditya Mission
Designed by ADCOS or Advisory Committee on Space Sciences a branch of ISRO which has also designed Chandrayan I in 2008, MOM in 2013
to study corona of sun which has a temperature of 2 million kelvin and the core of sun is only 6000 degrees kelvin
Will be put in L1 Halo orbit about 1.5 million km from earth.;
Lagranian points are imaginary points where sun and earth's pull is balanced and any body can remain stable; there are 5 such points
Putting two space crafts at two different points will give a better picture
400 Kg; 7 instruments to focus on sun corona, magnetic field, solar winds
Likely launch in 201920 by PSLV
Future in India
1.Use by different departments
NHAI for laying roads, Urban plannning, GIS, Remote sensing
Agriculture based measuring crop productivity
EDUSAT though utilization was not complete.
Land records
Weather prediction
Small satellites providing internet connectivity to peripheral inaccessible areas.
2.Coordination with ISRO and use department
Telemedicine would need coordination with AIIMS and other hospitals
3.Collaboration globally
4.Use of data by common men and institutions
Wider inclusion with space science literacy
Capacity formation in students; will need development in S&T also
Awareness among people; better solution of problems
5.Navigation
GAGAN, IRNSS
Preventing accidents, drivers knowledge about railway crossings.
IRNSS
Recent launch of fifth satellite in this series 1E
India uses GPS which cannot be used for military purposes like missile trials without permissions; moreover US domination over Indian technology cannot be ruled out.
Security of data will be tehre with regional owning of navigation systems
1500 km range of navigation capabilities; Standard Positioning System for <20 metres accuracy and for Restricted Positioning, >20 metres which will be used by defence forces
India joins China BEDOUIN, USA GPS, France's DORIS in this field; Russia and Japan are yet to follow
JWST or James Web Space Telescope
To be an improvment over Hubble
To be launched in October 2018 as a collaboration between NASA, ESA and Canadian Space Agency
Can record red shifts more than 12; longer wavelengths than infrared
much larger telescope than Hubble; 2.7 times more diameter; 7 times larger in area can detect farthest galaxies easily
CURIUM
Solar system developed in its presence
Found in Curious Marie named after Madam curie; taken from a carbonanceous meteorite
Exists on earth as byproduct of nuclear reaction
http://www.medianama.com/2016/04/223indiascybersecurityagencies/
Computer security or Cyber or IT security is the protection of information systems from theft and damage to the hardware, software and information on them as well as disruption and
mis direction of services provided.
NAASCOM; 1 million jobs coming up in cyber security related areas.
CISCO to invest in India; train people; employ them.
Reliance hired around 15,000 exmilitary personnel for security purposes; IT security too
Why needed?
India digitalising fast; Digital India Program; ecommerce
More people on internet; dependence on cloud services; more than 220 million people on internet; 27% penetration rate
Government schemes like Aadhar, DBT, cashless transactions, mobile use and others need robust cyber security measures
Growing threats of cyber crimes; hacking; Pakistan, Chinese; Snooping by USA
Big infrastructure projects run on Cyber implements like nuclear projects
IT boom; ICT infrastructure need cyber security laws
Existing institutions
NIC or National Informatics Centre since 1975 advises government on IT solutions
3 networks namely NICNET, INDONET, ERNET
New Internet Policy of 1988 paved the way for Telecom ISPs; BSNL monopoly ended
National Egovernance Program; 160 million households connected by broadband by 2016
Cyber Espionage
Illicit means through use of computer to gain access to secret government data or spy on its programs
China accused by US in 2014
Cyber Crime/ Attacks
Using computer and applications to destroy information on other systems illegally; government or corporate
Recent MI office of UK was attacked; USA created a superbug to destroy nuclear software of Iran
Sony was hacked by North Korean hackers and leakage of an officially unreleased movie The Interviewer online
Small enterprises in India falling prey
Cyber mafia; an underground economy
Tools
Bluetooth Hijacking
Botnet
Denial of Service
Browser hijacking
Email related crimes; mails to hack
Hacking
Keyboardlogging
Logical bomb
Identity theft; Phishing
Pharming; visiting fraudulent websites
Skimming; seeing credentials secretly
Spamming
Spyware
Trojans
Virus
Wardialing
Worms
Zeroday exploit
Cyber Terrorism
Crippling of critical infrastructure which is more than the physical violence
Usually on financial institutions
New modalities of recruitment, radicalisation by ISIS, brainwashing of youth
Government amended IT act to include cyber attacks and cyber terrorism.
Balancing the right to privacy and national security requirements
Cyber Warfare
Countries waging wars on cyber platform
Cyber exploitation and Cyber attacks; espionage and destruction of cyber infrastructure through various tools
Stuxnet used by USA to dismantle nuclear program of Iran
Global Steps
USCYBERCOM China too made a separate department
Cyber deterrence
Cyber counter intelligence
The problem lies in identifying defaulters or culprits as hackers are not easily identified and many times sources are dispersed sometimes from different countries. There is no international
law to indict these offenders nor an international consensus.
Indian Steps
IT act amended to include data piracy and cyber crimes in 2008
Section 66 F of IT act dealing against cyber crimes. Other cases of sexual content publishing, hate speeches, etc covered.
National Cyber Security Policy, 2013
Setting up of NCIIPC or National Critical Information Infrstructure Protection Centre
Skill development of 500,000 people in cyber security
PPP in formulation and implementation of laws; private sector plays an important role in cyber world
Global collaboration; International standards and technology
Incentives to businesses to setup cyber security measures
Creation of infrastructure ICT
Awareness in general public; social media privacy; data privacy
Cyber crimes; ISIS radicalisation; monitoring of websites through Section 69A
Only defensive and not offensive or any legal action against cyber crimes. as in IT act 2000
A need of National Cyber Security Warfare Policy
Inclusion of DoT, MoDefence, CERT, NCIIPC, National Cyber Response Centre
India's Computer Emergency Response Team (CERTIn) to check cyber security and prevent hacking, phishing.
It works under Ministry of Communication and Information Technology
It is the national body to act against cyber threats under IT act, 2000
Overcoming digital divide
Balancing human rights and cyber security measures
Reaching a convention on cyber warfare; contentious but can be reached through consensus and not imposition; preserving of national sovereignty
A need of National Cyber Security Agency with manpower skillfully developed to tackle such attacks; even manufacture cyber weapons for India to act as a deterrent; skill developmnet for
cyber security is very important
Agencies should also include MoD, MoH and MoCIT as active participants; civilian and military cyber security cannot be differentiated easily; a holistic policy is needed
India a member of Tallin manual which gives guidelines for such warfare
National Technical Research Organization (NTRO)
Indian scenario has many agencies looking after cyber security operations covertly; Inclusion of public is missing
It functions under NSA in PMO
National Cyber Coordination Committee
yet to be setup
Conflicting role with CERT
Segregation of data at all levels from gateway to enduser
Despite having a National Cyber Security Coordinator in 2014, lack of coordination, information flow between NTRO and Ministry of Communications and Information Technology proper
cyber security management gets limited.
APPLE vs FBI
San Bernardino attacker's iPhone was asked to be opened or deleting encryption but apple refused and the matter went to courts.
Issues
Compromise with right to privacy of customers of apple; a one time back door entry software can be used by authorities to snoop over others; post snowden revelations snooping has
already brought disrepute to US government
Will lead to similar demands by other authorities from apple and like companies in cyber world.
Breaching trust posed by customers on apple
A balance between national security and privacy of individuals
Effects on India
Lack of an Encryption policy or law in India; a balance between national security and protecting data.
Similar requests made to Facebook and other internet giants based outside India have met with poor compliance.
Low data protection standards as well as low legal barriers to extract data make ISPs in India and other software companies vulnerable to cyber attacks and other crimes

RBI & Banks
RBI directed banks to separate cyber security strategy from traditional security plans
Create a special cyber security management plan to handle such cases
Report such cases to RBI for immediate redressal and prevention in future
63% IT professionals oppose govt’s back door access to encrypted information systems: ISACA
The 2016 Cybersecurity Snapshot by global IT and cybersecurity association, ISACA of 2,920 members in 121 countries also reveals marked skepticism about the likelihood of
organizations sharing data breach information voluntarily as called for by the recently passed U.S. Cybersecurity Information Sharing Act of 2015.
According to the 2013 Security Threat Report published by the cyber security company, Sophos, Asia accounted for eight of the top10 countries most vulnerable to cyber crime.
#Rs 1,000 crores National Cyber Cordination Committee to be established Edward snowden proposed 10 times more money for establishment.
#Standardisation of Testing and Quality Certification (STQC) to check softwares of different ministries for loopholes.
Other ways
Entrenched collaboration between corporates, public institutions, internet giants, telecoms
Cyber Apellate Tribunal
Formed under IT act, 2000 under the aegis of Controller of Certifying Authorities (CCA)
It is the first cyber apellate court in India.
It has the powers to act like a civil court under Civil PC and has the right to regulate its own procedures including the sittings of tribunal.
Icann (Internet council for added names and numbers)
53rd meeting held at Buenois Aires
India supported multistakeholder model of internet governance
At present, USA has monopoly. Now IANA will be shifted out of USA soon; founded in 1998 and responsibility given to US National Telecommunications and Information Administration
(NTIA)
Montevideo statement after Snowden revelations to globalise icann.
A nongovernmental multistakeholder group will take care of IANA (Internet Asigned Numbers Authority)
India wanted democratic participation but was reluctant on multistakeholder model. USA and international companies bigger than countries
could have monopoly in multistakeholder model. Hence India wanted multilateral model with sovereign governments regulating internet.
China wanted fragmentation; every country with a particular domain
Even then, legislative, executive and judicial control of USA over ICANN remains; in exceptional circumstances US may direct ICANN
Hence a need of external control apart from governments for transparency and checking US dominance.
Net Mundial meeting held in Sao Paulo, April 2014, where multiple stakeholders from 97 countries met to address Internet governance challenges.
The final resolution says ICANN should be under international control by September 2015.
Cyber Security
Tallinn Manual for dealing with cyber crimes; it is not classified clearly and definition of attack is not clear
Role of India
Push for interpretation of Tallinn manual and push for a binding treaty on cyber warfare
International cooperation and exchange of information
International court to try crimes
Indian initiative
Section 70A and 70B of IT act 2000; 70A warrants establishment of a special agency to look after CII or Critical Information Infrastructure
NCIIPC or National CII Protection Centre established in 2014; 12 sectors identified as CII; cyber attack protection procedures identified
Still alot needs to be done
Way ahead
Publicprivate participation; bridging trust deficit
Convention 108
1981 entered by European Council for Protection of individual data and automatic processing of data
Penetrating ecosystem of mobile and internet users; 600 million and 300 million respectively
IT act, 2000 ambigous on actions against data piracy ; Need of a comprehensive legislation
Right to Privacy; SC judgment awaited
Justice AP Shah Commission report in 2012 talked about data privacy:
notice (to be given to users while collecting data); choice and consent (of users while collecting data from them); collection limitation (to keep user data collected at the minimum
necessary); purpose limitation (to keep the purpose as adequately defined and narrow as possible); access and correction (for end users to correct or delete their personal data as
may be necessary); disclosure of information (private data should not be disclosed without explicit consent of end user); security (defining responsibility to ensure technical,
administrative and physical safeguards for data collected); openness (informing end users of possible collection and utilization of personal data); accountability (institutionalize
accountability for adherence to these principles).
A legislation in 2011 failed in attempt to provide data security.
PET or Privacy Enhancing Technologies used by endusers at present; encryption policy is also needed
Awareness among public; options in agencies providing data security
Government in properly decided guidelines or rules of contract before sharing data for analysis
Phishing cases emerging; duplicate SIM cards issued and money embezzled through credit card after getting OTP; Telecoms distribute numbers without properly registering customers
and having a robust KYC
Issues
*Companies not compliant
Don't disclose hacks in fear of.loss of reputation
Need to stop these companies from trading as prevalent in USA
mobile use more than computers: companies loosing markets and focusing on enterprises more
latest reports of cisco says that Indian companies use efficient defence software.
Recently, India signed cyber security pacts with malysia singapore.
IndiaUSA pact on cyber security and cooperation
India nad USA both support multistakeholder governance in ICANN
But India made a declaration in Moscow with China and Russia of multistakeholder and multilateral
Currently, USA decides on cyber security matters according to MCLA or Mutual Legal Assessment Treaty through judicial process; but compliance rates of different companies is very less
as compared to requests made by USA to these companies; Muzaffarnagar riots whatsapp request is still pending
Hence a fast track mechanism is needed and this pact can be a gamechanger
The budget process predates independence. Budget was first introduced on 7th April, 1860 two years after the transfer of Indian Administration to British crown. James Wilson the first
Finance Member of India delivered the budget speech expounding the Indian Financial Policy as the integral whole fro the first time. Liaquat Ali Khan, member of the Interim Government
presented the budget of 194748
Three documents to be laid down with budget according to FRBM act 2003; Medium term Fiscal Policy Statement, Medium Term Fiscal Strategy Statement, Macroeconomic Framework
Statement
Amendments in 2012 added Effective revenue deficit in MFTP and also Medium Term Expenditure Framework Statement to be laid in the coming session after the above three documents
are published in a session.
The Mediumterm Fiscal Policy Statement (MTFP) is a statement presented to the Parliament under Fiscal Responsibility and Budget Management (FRBM) Act, 2003, which sets
out threeyear rolling targets for five specific fiscal indicators in relation to GDP at market prices
(i) Revenue Deficit (ii) effective revenue deficit, (iii) Fiscal Deficit, (iv) Tax to GDP ratio and (v) Total outstanding Debt as percentage of GDP at the end of the year.
Economic Survey
Department of Economic Affairs
CEA or Chief Economic Advisor is the author
1.Reforms needed in banking
Deregulation SLR and Priority sector lending
Differentiation Within PSBs in relation to recapitalisation, shrinking balance sheets and ownership
Diversification Source of funding from outside.
Disinterring Improving exit mechanisms.
2.Domestic savings
More savings in physical assets like real estate and gold.
59.5% savings in physical assets in 201415
Hence, monetisation of physical gold as gold bonds
FISCAL DEFICIT Expenditure Receipts
To counter fiscal deficit government has cut capital expenditure.
Other measure
1.Divestment of PSUs
2.PPP with plug and play method where clearances are taken already and private are called to work without any hassles.
3.Increasing tax base
Direct Tax Code
DTC bill,2009. 2010
Not implemented in this budget
Features:
1.Dilute Income Tax act, 1961
2.Introduce General Anti Avoidance Rules (GAAR) with power to income tax commisioner to mark defaulters.
3.Widen tax base, DDT (15%), MAT, Corporate tax (30%), Securities Transaction Tax
4.Tax mutual funds, savings withdrawl before 3 years or long time To encourage savings.
14th Finance commission
42% tax devolution to states.
Avijit Sen dissented and suggested 38%
Effects:
States with more untied funds Fiscal Federalism
Funds to centre will decrease
Central assistance and sponsored programmes budget will decrease.
BUDGET 201516
Panchayati Raj ministry was allotted Rs 94 crores which is a decrease from Rs 7,000 crores.
This will decrease BRGF (Backward Region Grants Fund)
No allocation for NCA (Normal Central Assistance)
Funds to RKVY (Rashtriya Krishi Vikash Yojana) was decreased.
BUDGET 201617
14 documents; mainly four colour coded and plain documents.
Article 265 provides that no tax shall be levied or collected except by authority of law; Article 266 provides that no expenditure can be incurred from the Consolidated Fund of India and
of the states, except with the authorisation of the legislature.
The Constitution of India does not specifically use the word Budget.
Article 112 of the Constitution provides for laying before Parliament an 'Annual Financial Statement'
THE CONSTITUTION CONNECTION
Core Budget documents
Key to Budget Documents Receipts Budget
Annual Financial Statement* Finance Bill*
Budget at a Glance Explanatory Memorandum
Budget Speech Appropriation Bill*
Budget Highlights Demands for Grants* article 113
Action Taken on Budget Announcements FRBM Statements#
Vote on credit for exceptional grant; * fiscal policy strategy statement for the
Vote on account for unexpected release from financial year;
Consolidated account of India *mediumterm fiscal policy statement and
*mediumterm expenditure framework
FRBM Act 2003 wants effective revenue deficit statement.
to be zero; ERD=RDGrant for capital assets Detailed Demand for Grants
*Constitutionally mandated; # Legally mandated
The ‘Budget Estimate’ for any ministry or scheme is the amount allocated to it in the budget papers for the following year.
For instance, in the budget speech in February, the finance minister will present ‘budget estimates’ for expenditures under various ‘heads’ for the 201011 financial year which runs from
April 2010 to March 2011.Once the financial year gets underway, some ministries may need more funds than was actually allocated to them under the ‘budget estimates’.The
government approaches parliament with such ‘supplementary’ requests for funds during the course of the financial year (in the monsoon or winter session).These supplementary
demands, are reflected in the ‘revised estimates’ for the current year.Thus along with budget estimates for 201011, the finance minister presents the revised estimates for
200910.‘Actual’ expenditures are the final amounts spent under different heads and may exceed (or fall short of) the Revised Estimates. Since the actual expenditure can only be
assessed once the financial year is over and final accounts have been prepared, the Actual expenditures presented in the budget papers are for the earlier financial year i.e. for the
year 200809.
What is the difference between ‘charged’ and ‘voted’ expenditure ?
There are certain items of expenditure which are not voted on by Parliament but are ‘charged’ directly to government revenues – these include the salaries and
allowances of the President, judges of the supreme court etc. However, the biggest component of charged expenditure is interest paid by the government on its debt.
A social economy budget with estimated budgetary expenditure of Rs 3,00,000 crores to Gram Panchayats. A strong push to decentralisation and fiscal federalism. States need to follow
with devolution of financial and other powers to village panchayats.
No doubt rural economy demand will increase with investment but the whole Indian economy can grow only with an equal or greater ush to urban economy which differs in structure and
quality to villages. This mismatch needs to be countered for better growth. Smart cities, AMRUT an dother infrastructure projects need to be completed efficiently.
Banks with high NPAs need a spade by spade approach; their health is necessary for the future of economy; 25,000 crores recapitalisation money in budget is peanuts considering a need
of 1.8 Lakh crores to meet the BASEL III norms by 201718.
Outcomebased financing model for social policy in India?
NITI Aayog recommendations accepted to streamline 30 CSS; assigning them to umbrella schemes; sunset clause to review these programs on
efficiency and outcome; distinction between Plan and NonPlan expenditure done away with
Centrally Sponsored Schemes should have flexibility in structure and implementation; while state machinery can help in its proper implementation
Hence states need to have representation in designing and funding of schemes. More untied funds should be there to states rather than tie them through schemes and send directly to local
bodies or government agencies or parastatal.
Periodic review of schemes by state and centre together can help in formulation or amendment of schemes. Hence centre should give states greater flexibility and track use of funds by
ICT and collaborative federalism to hold them accountable.
FRBM Act
Needs review as raised by MoF
Stems from European Union's fiscal deficit ceiling of 3%; but most of the countries including Germany have exceeded the limits
It assumes that Indian household savings are 13%; 5% loan for corporates; 2% for PSUs; the remaining 6% to be shared equally by centre and states.
What if the ceilings are breached? a growing economy needs credit; but at present fiscal deficit has decreased causing credit crunch and limiting growth; India is becoming a cash starved
economy
Committee setup by Yashwant Sinha, FM in NDA government 19992004; suggested in 2001 for establishment of a Fiscal Management Review Committee which was not accepted
It was to constitute of PM as chairman and FM, LoO LKS, RJS, SPeaker of LKS, CAG and RBI governor as members.
Shivraj Patil 2009 committee for flexibility in deficit financing until productive assets are being created.
13th FC also reiterated the Shivraj Patil committee recommendations; suggested presentation of estimates of revenue and capital expenditure expected in a year; a range probably; this
led to addition of a policy document in budget Medium Term Expenditure framework Statement alongwith Medium Term Fiscal Policy statement, Fiscal Policy Strategy Statement,
Macroeconomic Framework Statement
Target should shift to managing effective revenue deficit and making it nil; and 3% fiscal deficit by March 2015; Finance Act 2015 shifted dates to 2018.
Recommendation of 14th FC to setup an Independent Fiscal Council; will review budgetary estimates, data and even estimates like of 7th pay commission, OROP.
will give a clear picture of feasibility of or deficits in estimates
a regulatory organisation advising government
At present only centre monitors state spendings and fiscal deficit and no one assesses centre's fiscal responsibilities.
EPFO issue
60% of the total amount withdrawn from EPFO will be taxable;
Was Exempt exempt, exempt or EEE earlier if withdrawn after 5 years but is EET now; To persuade people to invest in annuity or pension schemes like the NPS which has similar EET
format.
If the person invests 60% of EPFO in annuity then nothing is taxable; also on death of the employee the amount will be non taxable if diverted to annuity.
People with salary to maximum of Rs 15,000 must have EPFO contribution while above it is optional. A firm with >20 employees contributes 12% and 12% is by employees;totalling 24%;
Also 8.33 % of this is diverted to Employees Pension Scheme; A demand was to make this diversion optional.
Government contributes 8.33% in Provident Fund of its employees.
The majority of users are of below 15,000 earning ones; however rich invest a lot in EPFO and earn high interest rates; Also its EEE for below Rs 15,000 employees.
This initiative targets the rich to invest in pension funds; this will again help the economy and provide social security; at present on withdrawal banks benefit from these deposits.
At present, NPS accounts grew to 1.15 crores in February 2016 according to PFRDA. However, funds are 1.10 lakh crore while EPFO has Rs 10 Lakh crore.
EPFO is managed by labour ministry with finance ministry having veto powers on its annual rate (8.8% for 201516) of return to members
NPS is under PFRDA or Finance ministry
Though EPF EET has been withdrawn the importance of annuity cannot be overlooked.
Such options of annuity are not much in India and the market is undeveloped. The skewed mortality in India with lower class labour dying early, annuity schemes are not favored.
Also, inflation linkage is required to meet the adequate demands with changing times.
Proper regulations will be required for consumer protection.
TERMS IN ECONOMIC SURVEY AND BUDGET
(Very important for Prelims)
Debt Recovery Tribunals
Livestock Health and Disease control Scheme
MSPs
Bankruptcy Code
Prevention of Corruption Act
Commission for Agricultural Costs and Prices (CACP)
PAHAL
JAM trinity
Bank Correspondents
MNREGA
National Social Assistance Programme
NFSA
Prime Minister’s Krishi Sinchai Yojana (PMKSY)
Nutrient Based Subsidy Scheme (NBS)
ICAR (Indian Council Of Agricultural Research)
Central Insecticide Board and Registration Committee (CIBRC)
Long Term Rural Credit Fund (LTRCF)
National Bank for Agriculture and Rural Development (NABARD)
Cooperative Banks
Regional Rural Banks (RRBs)
Kisan Credit Cards
Negotiable Warehouse Receipts (NWRs)
Interest Subvention Scheme
Global Forum for Rural Advisory Services (GFRAS)
central sector or a centrally sponsored scheme,
Mission for Integrated Development of Horticulture (MIDH)
National Horticulture Mission (NHM),
Horticulture Mission for North East & Himalayan States (HMNEH)
National Bamboo Mission (NBM)
National Horticulture Board (NHB)
Coconut Development Board (CDB)
Central Institute for Horticulture (CIH), Nagaland.
Central Institute of PostHarvest Engineering and Technology (CIPHET)
National Livestock Mission
Integrated Child Development Scheme (ICDS)
MDMS (Mid Day Meal Scheme)
TPDS, Annapurna
MNREGA
National Agricultural Market
Agri Tech Infrastructure Funds
CCEA
SFAC
DAC&FW
Agricultural Produce Market Committees (APMC)
Accelerated Irrigation Benefit Programme (AIBP)
Integrated Watershed Management Programme (IWMP)
On Farm Water Management (OFWM)
Prime Minister’s Krishi Sinchayi Yojana (PMKSY)
Ebiz project
Antidumping duty
Countervailing Duty
Safeguard duty
OIL
ONGC
IIP
NBFC
UDAY
Prime Minister’s Employment Generation Programme (PMEGP),
Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)
Credit Linked Capital Subsidy Scheme (CLCSS)
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Micro and Small Enterprises Cluster Development Programme (MSECDP)
Udyog Aadhar Memorandum (UAM)
NTPC, NMDC, Power Finance Corporation
Hindustan Photofilms Manufacturing limited
Mangalore Refinery and Petrochemicals Limited
Atal Innovation Mission (AIM)
Startup Stand up India
FDI Policy, National Manufacturing Policy, Intellectual Property Rights and the proposed National Industrial Corridors including the Delhi Mumbai Industrial Corridor (DMIC)
DIPP
SETU
Invest India
India Aspiration Fund
Small Industries Development Bank of India (SIDBI)
SIDBI Make in India Loan for Small Enterprises (SMILE)
Service Exports from India Scheme (SEIS)
PRASAD
Swadesh Darshan
HongKong Convention on recycling
Jal Marg Vikas Project.
IMPRINT
AIM
SETU
STAR or Standard Training and Assessment Reward Scheme
National Social Assistance Programme (NSAP)
EPF scheme
PMJDY
PAHAL
MNREGA
PMCCC (PM Council on Climate Change)
Market Stabilization Scheme
Nectar
Natural sugar containing Sucrose (55%), Glucose (24%), Fructose (21%)
Capsaicin
In Chilli as an irritant, sensation of burning
Sprouting
Complex compounds broken into simple
Chance of infection with E.Coli etc
Starch
Tasteless, insoluble in alcohol, cold water or other solvents
Stored in plants as extra glucose and used as food.
Lugol's Iodine, Benedict's Test, Molisch Test
Test for Proteins
Caustic Soda or Sodium Hydroxide + Copper sulfate as BIURET Test (Other tests include Ninhydrin test)
Food turns violet
Used as softening and washing agent in food processing industry
Decantation
Separation of two layers of liquid by pouring it out from other.
It can be done in water and sand precipitate, oil and water etc.
Churning
Separating solids mixed in a liquid by churning it while heating or in pressure
Butter from Milk etc
Filtration
Filtering solids and liquids in a mixture.
Impurities from water, tea making
Sieving
Separation of two kind of solids or impurities from a desired substance
Sand from stones, pebbles at construction sites.
Threshing
Beating of crops to separate grains.
Wheat threshing by hand, machines, bullocks.
Winnowing
Separating light and heavy materials by keeping them in a slope or blowing in wind
Saw dust and sand, Wheat from husk etc
#Shadow can be seen only on a screen.
#Pinhole camera shows inverted objects.
Rectilinear motion is motion in a straight line. ExBall thrown straight up.
Periodic motion is motion which repeats itself. Ex Pendulum,
1 cubit was elbow to fingers as a unit of measurement
1790 French created Metric System.
Biogas
Formed by decomposing of organic matter in the absence of oxygen
Contains mainly Methane, Carbon dioxide, Hydrogen sulphide
Similar to natural gas and can be cleaned and compressed.
Magnets
Discovered in Greece in Magnetite by Magnes, a shepherd.
Always show NorthSouth pole in a free position
Magnetic materials are Iron, Cobalt, Nickel
Magnetic properties get destroyed by hammering, heating, dropped from some height.
Have to be kept cautiously as properties decrease. So placed with unlike poles separated by wood with soft iron covering ends.
Keep mobiles, computers, cassettes, CDs away from magnets.
Flash drives, Hard Drives immune.
Parasitic Plants
Cuscuta or Amarbel doesnot manufacture own food but is a heterotrophic plant.
Insectivorous plant like Pitcher plant has both autotrophic and heterotrophic moded of nutrition.
Lichens
Algae and fungus in a symbiotic relationship. Fungus provides minerals, protection to it and alga gives food to fungi.
Ruminants
Herbivorous animals like cow, grazing cattle partially digest food to a organ called rumen from which food keeps coming to mouth as cud and is digested properly.
Steps of nutrition in animals
Ingestion>Digestion>Absorption>Assimilation>Excretion
Starfish digests food containing calcium carbonate like shells etc. Stomach descends out from mouth and ingests the prey.
Amoeba through pseudopodia and food vacuole.
Wool
Obtained from fleece or hair of yak or sheep.
Outer or had hair and inner or soft hair.
Soft hair breeds are bred for wool.
Yak wool from Tibet and Ladakh
Angora wool from J&K angora goats
Pashmina wool from kashmiri goats
Different types of wool:
1. LohiGood quality wool Rajasthan, Punjab
2. Rampur bushairBrown fleeceUttar Pradesh,Himachal Pradesh
3. NaliCarpet woolRajasthan, Haryana, Punjab
4. BakharwalFor woollen shawlsJammu and Kashmir
5. MarwariCoarse woolGujarat
6. PatanwadiFor hosieryGujarat
Steps
1.Shearing
Hairs shaved
Upper layer of cells dead and same as beards in humans which do not pain on shaving.
2.Scouring
Hairs are washed for grease,dirt etc
3.Sorting
Different fibres short and long are sorted out
Sent to factory for sorting on texture
4.Again scouring is done and burrs removed.
Hairs are dried and are ready to be drawn and ready to be drawn into fibres.
5.Dying is done if required.
6.Short fibres are spun and woven into cloth
Long fibres are sent to yarn for wool fibres.
Anthrax can infect during shearing. Hence care is needed.
India ranks 3rd in world behind China, Australia. New Zealand wool is of best quality.
Sericulture
Rearing of silkworms
Ancient China started
Silk moths lay eggs
Eggs develop into caterpillar in warm conditions and are fed on mulberry leaves
Caterpillars are placed on bamboo shelfs and boxes are created with stones in them where they wove silk fibres around to form cocoons
These cocoons contain pupa which develops into adult moths.
Silk is extracted from these cocoons by placing them in warm water or in sun. This is called reeling of silk.
Silk is strong as steel
Examples are mulberry, tasar, erri, muga,
China is the leading producer, exporter. (Silk roads)
Heat
Celsius scale
0 to 100
Normal human body temperature is 37 degrees celsius
Range in celsius thermometer is 35 top 42
Laboratory thermometers have range from 10 to 110 degrees celsius.
Conduction
Mainly solids
Copper over stainless steel utensils for better heating.
Convection
Liquids and gases
Air on top of flame heats up, displaces, cold air comes, again heated and cycle continues. Hence Air on top of flame is more hot than
surroundings.
Radiation
Hot bodies like Sun
Acids
Bitter in taste
Turn blue litmus red
Phenolpthalein remains colourless
Formic acid from ants (ant bite treated by rubbing bases like calamine lotion which is zinc carbonate)
Ascorbic acid in Amla, citrus fruits
Oxalic acid in Spinach
Tartaric acid in Tamarind, grapes.
Bases
Sour to taste and feel soapy to touch
Turns red litmus blue
Phenolpthalein is turned pink
Magnesium hydroxide in milk of magnesia
Ammonium hydroxide as window cleaner
Calcium hydroxide as lime water
Sodium hydroxide as soaps
Indicators
Turmeric
Turn bases red
China rose (Gudhal)
Pink solution
Acids turn dark pink or magenta
Bases turn green
Litmus
Obtained from lichens
Mauve or purple colour in distilled water
Neutralisation
Acid+Base>Salt+water+Heat
Uses
1.Farming
Excess acid and base is harmful
Acids are neutralised by adding bases like Calcium oxide or quick lime and calcium hydroxide or slaked lime
If soil is basic, organic matter is added which is broken down by microbes to give acids.
2.Ant bites
3.Factory wastes
Acids present in wastes are harmful to aquatic life
They are neutralised by reacting with bases.
Chemical changes
Copper Sulphate or Nila Thotha
Reacts with Iron to from iron sulphate and deposits copper (brown).
Lime water turns milky (forms calcium carbonate) on mixing with carbon dioxide.
Salt water increases rusting
Galvanisation is coating with zinc on iron to prevent rusting.
Lightning
Travels with a speed of around 4,00,000 km/hr and raises temperature to 4 times the surface of sun.
Banners have holes to allow flow of air. Otherwise winds can blow it away.
Breathing
Root hairs absorb water and minerals in water. It increases the surface area of roots.
Humans inhale and exhale oxygen and carbon dioxide.
Pure oxygen inhaled for long time is toxic to humans
Insects have spiracles, fish gills, earthworm moist skin for breathing.
Excretion
Fish excrete ammonia which easily dissolves in water
Lizards, some other reptiles excrete semisolid urine as uric acid crystals
ReproductionPlants
Bryophylum has buds at leaf margins
Ferns through spores
Yeast through budding
Spirogyra alga through fragmentation.
Roses have buds in stems
Potato grows through eyes of roots.
Bisexual flowers
Have both stamen and pistil
Mustard, Rose, Petunia
Unisexual Flowers
Have stamen or pistil but not both
Cucumber, Papaya, Corn
Pollination
Selfpollination where same flower has stamen and pistil
Crosspollination from different flowers in same or different plant.
Insects help in pollination and are attracted through fragrances, physical features of flowers.
Pollens get stick to them and are transferred.
Wind and water transfer pollens.
Seeds
Are formed when pollen lands at pistil, sends pollen tube and forms zygote by fusion with egg which is called fertilisation.
Seed dispersal occur through winds, water to prevent competition between themselves, for sunlight, water and invading new
habitats.
Some seeds have wings like drumstick, maple and some have hairs like madar, some fruits are hairy like of sunflower.
Some seeds have hooks & get stuck to animal body. Ex Xanthium
Some fruits burst and disperse seeds. Ex Balsam, Castor
Time
Time keeping services in India is provided by National Physical laboratory, New Delhi with an accuracy of 1 millionth of a second.
The most accurate time is given by National Institute of Standards and Technology, USA. It loses or gains a second in 20 million years.
Contributed 6.6 % of India's GDP and created 40 million jobs in 2012.
India comes in Top 10 tourist destinations in the world as it has a variety of tourist spots related to environment, history, relief, monuments etc. Its cultural diversity is also an attraction.
‐‐Travel and Tourism Competitiveness Index (TTCI) 2015, of the World Economic Forum
India’s rank has improved significantly to 52nd this year from 65th in 2013. Improving the ranking had been set as a target in the
Result Framework Document (RFD) of the Ministry of Tourism for the year 201415.
MICE or Meetings, Incentives, Conferences, Exhibitions Tourism in Kashmir
UP Propoor tourism development
World Bank Rs 440 Crores redevelopment project that will lead to creation of Braj tourism circuit covering Mathura, towns and hamlets like Vrindavan (150 year old BankeyBihari
temple), Gokul etc.
7.61 lakhs FTAs (Foreign Tourist Arrivals) in Feb, 2015 than 7.58 lakhs in Feb, 2015.
ITDC (Indian Tourism Development Corporation) has hotels in JV named ASHOKA
HSRT (HunarSeRozgarTak) scheme
Providing skills on tourism management for 5 days followed by atest and certification.
Started in 200910
Train 8th class pass upto 28 years of age in food production
Cosponsored by Institutes of Hotel Management and Food Craft Institutes at state government institutes and star category hotels
Japan Habba 2016
Only few students come to India due to safety concerns
Kimono a Japanese dress worn by people in this festival
Hunar Zaika
Upgradation and certification of street food vendors
PRASAD and SWADESH DARSHAN schemes for development of cities for tourism.
12 cities in National Mission for Piligrimage Rejuvenation and Spiritual Augmentation Drive
Amritsar, Kedarnath, Dwarka, Ajmer, Mathura, Varanasi, Gaya, Puri, Amravati, Kanchipuram, Velankanni, Kamakhya
Vision is to achieve 1% of ITA or International Tourist Arrivals by the end of 201617 which is 0.64% at present.
Foreign Tourists Arrival in 2014 was 7.70 million with a growth of 10.6 percent
Electronic Travel Authorisation for 44 countries to be extended to 106 countries
Einitiatives for hotel booking, Ebook of Ministry of Tourism
Reforms
1.Infrastructure
Transport Infrastructure
airways, roadways, railways
Social Infrastructure
hotels, stadiums, galleries, convention centres, wifi, fast internet
Environment Infrastructure
Marine parks, natural reserves
Collaborative Infrastructure
Network of regional, state and national tourism organisations; travel agents
2. Development of specific circuits as funds are limited
Choosing centres through tourist arrivals; Rural tourism promotion; art and craft, handloom; interaction between local population and tourists; Propoor tourismFortune at the bottom
of the Pyramid
Promoting tourism of Mystery Spots; Mahandai water pond, Jatinga Assam for birds, Bhangarh fort in Alwar for ghosts, Shani Signapur of Maharshtra with no doors, locks
3.Government support
Developing centrestate coordination; coordination between different ministries like MHA, MoEA, MOT&C, MoUD etc
Single window clearances for tourism projects keeping in mind environmental aspects
More teeth to ASI to preserve monuments; World Heritage Status to some monuments
Capacity building of tourism personnel, authorities
4.Civic amenities
Toilets, sanitation, drinking water
Integrating JNURM projects
5.Swachhta; cleanliness around sites
Preventing littering by tourists
6.Advertisements
Incredible India campaign, limited effect and escalation in steps is needed.
Social media campaigns
7.Security and safety
Safe travel; registered guides, travel companies and agents
Police on vigil for safety of women
8.Visa changes
ETA or Electronic Travel Authorisation for evisas
Evisas; online application before arriving in India; visa on arrival for 1 month; demand for increasing it to 2 months
Used mainly for tourism, medical tourism etc
Diplomatic passports are not allowed evisa
Extended to 44 countries; US, UAE, Germany only account for 40% of tourists
Tourists on evisas to gain immediate access to phone connectivity with a preactivated SIM
9.Accessible Tourism
Disabled and special people; lifts, slopes, volunteers, help centres
10. Student tourism
rganised camps; safety vigil by teachers
Preventing accidents like the tragedy involving 24 engineering college students from Hydrabad swept by sudden upsurge of water level in Beas river due to opening of gates of Larji Hydro
Electric dam.
11. Manmade tourism
Skydiving, scuba diving, water sports, essel world etc
Theme and amusement parks; Ramoji Film city etc
MEDICAL TOURISM
Sunrise industry, Growing by 30% every year
Creating 40 million new jobs every year; competing with Thailand, Singapore
Mainly from middle east for cardiac surgeries, angioplasty
Export industry; foreign exchange earnings.
1.3 million people out of 7.7 million tourists in 201414 visited for MT; however this data needs more assessment as it is solely based on medical tourism visas whereas many also opt for
normal visas for MT.
Effects on
Marketing professionals in demand; hospitals need advertising, pricing
Linguistic services; translators, guides
Backoffice operations
Hospitality Professionals
Challenges
Still remains an unorganised sector
There is no proper policy regarding Medical Tourism in India. No travel companies or hospitals formally calling patients from around the world.
VISA issue
*Medical visas are not issued frequently; takes time and often have no sops than the normal visa; hence many patients opt for normal visa and arrive in India.
*They get stretcher and other facilities only in the airport and outside they are on their own; hence a prey to middlemen out there
*These middlemen are informal agents of hospitals who spuriously charge heavy amounts from patients; like 30% of the cost goes to hospitals only with rest seized by the intermediaries;
also they often get foreign currency converted to Indian currency through illegal ways at lesser than official value.
Poor government support
No proper advisory nor any program to help medical tourists choose better hospitals in India; Govt. provides proper information in medical visas which needs to be further upgraded; normal
visas do not have such facilities.
A special cell for such tourists should be created to look into their grievances; make India a unique player in this field.
Low coordination between hotels, hospitals, travel companies etc
Customer perception as unhygenic country
Lack of uniform pricing policies
Strong competition from southeast Asian countries
Lack of international accreditation
Under investment in health infrastructure
Lack of proper insurance facilities
Middle men fooling foreigners or harassing them
Way Ahead
Government support
Infrastructure mapping
eTVs or etourist visas to medical tourists
VISA or Visitors International Stay Admission
Tourist, Employment, Student, Medical, X visa, Business, Conference, Research, Transit, Conference, journalist
Ecotourism
IUCN lists tourism as 2nd biggest threat to protected areas.
Rio + 20 Outcome document ' Future we Want"
Sustainable Tourism as a balance between poverty alleviation and environment conservation
IUCN adopted definition of ecotourism
Environmentally responsible travel and visitation to relatively undisturbed natural areas to enjoy and appreciate nature that promotes conservation has low impact and provides
for involvement with local populations.
Bhitarnaika Wildlife Sanctuary
Gharials, Bhitarnaika Mangroves which lie in river delta formed by Baitarni, Brahmani and Dhamra rivers
Not much profitable due to illiterate workers; poor skills
National Parks, Wildlife Sanctuaries
Periyar Tiger Reserve. Kerala
Local community involved in rafting, trekking, horse riding, natural camps; ecodevelopment committees formed
Women Saving and Credit Groups; women empowerment
Educational tourism
Universities of good quality; cheap education
African and middle east students
India does not have a strict immigration policy; easy flow of students and ideas
Cultural Tourism
Yoga, Indian diversity, traditional values
Wagah like ceremony at AgartalaAkhaura check post with Bangladesh.
Under Swadesh Darshan Scheme (Tourist circuits infrstructure development; Buddhist circuit proposed); building of ministadiums and roads
Beating retreat ceremony at Wagah since 1959
Right to Education, Act, 2009
A sports playground in school, sports teacher, physical education class, sports eqipments
CBSE makes 1 period mandatory for sports till class 10th daily and 12 in a week in 1112th classes.
Rajiv Gandhi Khel Abhiyan
Creation of sports complexes with state of the art facilities in each block of the country.
Since 1880 global temperature has risen by 0.8 degree celsius as compared to mid 20th century baseline (19511980)
Global warming and climate change are slightly different. Climate change encompasses global warming.
Oceans (Largest reservoir of carbon capture) trapping more heat. Ocean water expands by melting of glaciers or thermal expansion.
Recent World Economic Forum Report mentions CC as the most impactful risk in 2016
AWARE or Atmospheric Radiation Measurement West Antarctic Radiation Experiment, project by USA at Mc Mudro station
Observe how climate change affects polar region, ferrel cell and strength of circulation in both cells.
Beef Consumption
More emissions
More water consumption; 16,000 litres per kg as compared to 320 per kg for starchy foods
Occupy more land which can be used for plant products
Use of antibiotics
Shortlived Climate forcers
Particulate matter of various kinds emitted into atmosphere by natural and anthropogenic sources and which stay in atmosphere temporarily for a month at maximum.
Black Carbon and Ozone cause warming; aerosols lime NOx, SOx, VOCs, CO affect climate through formation of ozone
Warming of Arctic region can be reduced by 0.2 degrees C by 2050 by cutting down these emissions; ASIA is the largest contributor
Black Carbon affects aerosol capacity to form condensation nuclei for clouds thus decreasing precipitation.
IPCC and its use for India
Recent IPCC report stresses on Harmful impacts of global warming an urgent need for countries to act. The objective is to keep temperature rise below 2 degree celsius. There is a need to
stop use of fossil fuels completely and bring down emission of GHGs to 70 % from 40% of values in 2010. Delhi has been marked the most polluted city in the world. Ethics and equity
have been talked for the first time. This gives weight to developing countries concern over developed countries propensity to pollute more.
To contain global warming India will have to shut off coal plants, change fuel emission satndards etc. In short the whole path of development on which India is marching will have to be
slowed and changed to energy conservation and environmentally sustainable way.
Basic limitation
These reports stress on long term impending problems of global warming and not on recent disasters emerging due to climate change. For ex kashmir,uttarakhand floods,cyclones
etc which have effected India and its eonomy recently.
Monopoly of developed countries
USA and EU are the biggest polluters of environment. But the impilcations are being felt more on developing countries. These countries hesitate to provide capital to developing countries to
shift to more energy conserving ways.
Unequal China and India
China is a much bigger polluter than India with its manufacturing industries emitting tonnes of GHGs annually. But India and china both are being termed as equally responsible for emissions.
Conclusion
If IPCC really wants that its reports are given importance then it must direct developed countries to mend their ways and help developed countries meet their energy needs. Moreover,
These reports should be country specific so that they can deal with impending risks effectively.
Synthesis report of AR5:
For 33% chances of crossing temperature of 2 degrees celsius, amount of CO2 emission should be below 1,000 billion tonnes in 20112100
For 50% chances of crossing 2 degrees it should be 1300 billion tonnes.
To limit warming to 2°C, carbon dioxide emissions will have to be cut by 25 per cent more than the pledges already made.
To limit global warming to 1.5°C, we will need additional cuts in emissions of 40 per cent by 2030, according to Bernstein Research.
We only have about 1,100 giga tonnes (gt) of carbon dioxide (CO2) that can still be emitted.
Current proven reserves of fossil fuels are about 812 billion tonnes of oil equivalent (oil, gas and coal). Just burning all these proven reserves
would generate about 2,512 gt of CO2 equivalent emissions; only 40% should be burnt for <2 degrees
Causes
Biotic, volcanic eruptions (SO2), plate tectonics, variation in solar radiation, oceanic variations (ENSO)
Fluctuating changes like El Nino does not represent climate change.
Sun does not cause global warming as its energy has been same. Also, atmosphere was not heated uniformly as in G.W
Ozone hole affecting climate change
Ozone hole develops over southern hemisphere in spring due to CFCs emitted by us. UV rays which enter contain only 1% of total energy. Hence their role is minimum.
However, ozone is a greenhouse gas which keeps stratosphere warm. Ozone hole has made stratosphere cold resulting in cold winds and change in atmospheric circulation. This may
affect Tropical climates.
Measuring temperature and climate conditions in ancient times
Ice sheets are not permanent but are in continuous formation incorporating dust, pollen, ash, bubbles of gas. Ice sheets 8,00,000 years old have been found. These are taken in thickness
and assessed by the scientists.
Growth ring in trees (thickfertile,rainy period/ thin ringsdry),
Corals too represent more than 2,000 years before conditions. (Uranium, strontium levels)
Beetles, autotrophs, fishes

Temperature measurement of earth
It is done by NASA Goddard Institute for space studies. NOAA (National Oceanic and Atmospheric Administration) National Climatic
Data Centre and UK Meterological Office's Hadley centre (since 1880)
8,700 citizen observers feeding data in weather platforms in US National Weather Services Cooperative Observer Programme
They collect and process data from thousand of stations across the world situated at Antarctica and through satellites.
Temperatures are adjusted according to urbanization effects, heat island effects which increase local temperature.
Melting ice will change earth's rotation?
An objects rotation speed increases if mass near the line of axis increases as a skater's when he folds hands to body.
Similarly if all ice melts and increase ocean's water then earth speed of rotation will slow. (By milliseconds)
However, arctic ice cap is a sea ice and no change in volume of water will occur as ice displaces water already.
But Greenland ice sheet melt may affect the volume of ocean
IPCC predicts rise in sea level by 1 m at the end of the century.
WAIS or West Antarctic Ice Sheet melting fast and can raise sea level by 4.8 m whereas East Antarctic IS the largest on planet (Totten Glacier) will raise by 3.8 m
Preindustrial revolution Postindustrial revolution
CO2 followed temperature rise. Temperature rises with rising CO2
Effects
Precipitation changes
Ice melts will cause rise in water; inundate low lying areas
Water scarcity; Some 2.7 billion people or 40 per cent of the world’s population suffers water shortages for at least a month each year.
Crop habitats, animal habitats will change. Some will benefit, some will be harmed. Insects may increase harming trees, crops.
Food chain pattern may change thus affecting the balance of nature.
Storms, cyclones, tornadoes, droughts will increase
Heavy casualties; children, women. elderly; loss of property; Increased expenses to rebuild; economic collapse of nations
Migration of people; Small Island Nations to get affected; under UN Convention on Refugees they cannot be termed as refugees if displaced.
Environmental refugees; trigger wars between nations; rich and poor; urban and rural
Development refugees
Baiga people of M.P being evicted for Bargi Dam.
Climate change is adding to the toll of refugees and will be a cause of mass migration in future.
Wheat production will decrease with rise in temperature to 23 Degrees as duration of crop will decrease; Sorghum yield will decrease by 214 % by 2020; One recent study points
out 18% decline in overall foodgrain production by 2050.
India; growing urbansiation; heat strokes; 80% vulnerability to extreme events like cyclones
Way ahead
Future belongs to nations with grains and not guns
A shift to drought tolerant crops like millets; Climate smart agriculture
Biosaline farming; Pokkali Rice grown in Kuttanad, Kerala; declared as GIAHS or Globally Important Agricultural heritage Systems
Gender sensitive adaptation and mitigation
Nitrous Oxide emission of methane decrease by Neem coated Urea
NMEEE National Mission on Enhanced Energy Efficiency
PAT or Performance Achieve Trade mechanism in 2015 focused on 9 sectors with high energy demands namely
Alumunium, Cement, Chloralkali, Fertilizers, Pulppaper, Power, Iron and steel, Sponge Iron and Textiles
Private sector participation will be needed; energy efficient technology will reduce emissions per unit of electricity
CO2 sequestration technology
Carbon capture technology; In deep seas, thermohaline zones; depths of 3000 m to form lakes which remain below as being denser than water as limestones etc
Clean coal technology
Preferred; Pre combustion coal is converted into coal syn gas i.e CO and H2
Post combustion capture of CO2 is more costlier
In combustion CO2 capturesupercritical and ultrasupercritical combustion or oxy fuel combustion
Energy fuels by CO2 sequestration; Coal bed methane; 3 molecules of CO2 are absorbed in coal and displaces 1 molecule of CH4.
CO2 utilisation technology; low chemical reactivity but catalysts can produce ethanol, fertilizers, carbonated drinks from CO2
Terrestrial sequestration CO2 in soil making it more fertile and increased uptake by roots of plants, microorganisms etc
SAI or Stratospheric Aerosol Injection; SO2 can be used; volcano eruption but rainfall affected, ozone depletion and alot of otherharmful effects
A study by Gujarat Ecological Education and Research (GEER) has prepared a hierarchy of local trees in India on the basis of their capacity for carbon sequestration. Teak has
maximum potential.
India announced National Biofuel Policy by which biofuels like Jatropha will be grown in nonagricultural lands.
Paris Agreement
Formulated after COP 21 at Paris; to be signed by countries before 1st April 2016
Something for everyone
Climate change is a reality which has been accepted by developed and developing world together. Many conference and treaties have been signed to reverse climate change and its
consequences.
Kyoto protocol was formulated in Earth Summit in 2002 against GHG emission. It was a binding agreement but was not ratified by major polluters like USA. This weakened the prospect of
success in such agreements. Hence from the very beginning Paris Agreement was based on creating consensus among the member countries.
Harsh treaties binding and penalising ones will not gather support form every country; moreover developing countries will have to stall their growth plans to counter CC. Thus, Paris
Agreement is a culmination of consensus building exeecise.
Issues involved
Article 3 of convention declares CBDR; action by all countries alike to counter CC ; historical responsibility diluted
Article 2 calls for a target of 2 degrees celsius of Earth's temperature and 1.5 degrees celsius if possible: A CRUEL JOKE
Considering INDCs of countries such targets will never be met and temperature can even rise to 3 degrees celsius.
Article 9 talks of funding form developed countries and developing countries together to counter CC; transfer of technology. The earlier distinction of historical responsibilities has been
diluted.
Global stocktake or periodic review has been included; 5 yearly review after 2020; tis will keep countries on track, assess funding from developed world; reassessment of INDCs etc
No data on Peaking of emissions; countries have been asked to peak their emissions fast; that means China can also peak at its own level thus limiting the carbon budget available
for others
India is a developing country with huge growth potential. Development is necessary but India has to take care of GHG emission, (Chennai with highest per capita emission, Delhi with
highest absolute emissions) pollution etc. It is correct to say that Inida was not a part of problem but is a part of solution.
By not stressing on legally binding commitments and putting a leash on emissions of developed countries; India has put itself in a vulnerable position; The issue of cumulative emissions
missed by Article 4 of Paris Agreement will be the focus point in future and during that period developing countries like India will have to compromise with carbon budget and limit their
growth potential.
2.53.0 Billion tonnes of carbon sink through forest cover and afforestation by 2030.
US China Climate deal
Both countries recently signed a Climate deal declaring their intended GHG emission levels and use of renewable resources to counter GW and keep temperature below 2 celsius.
Implications on India:
India is a developing country and its global GHG share is 1.7 tonnes per capita as compared to US 18 and China's 8. Also it has 6% share of emissions and largest emitter in developing
countries.
*Pressure on India to declare GHG peak levels.
But USCHINA deal has hidden motives.
*Both countries want to equal their share of GHG emission in coming years. (at 16%)
*Even through this deal global temp will cross 2 celsius and reach 4 only if Brazil, India, S. Africa stop emissions.
Indian govt. put an expert report on Low carbon strategies for Inclusive gowth (2014)
*Avg. GDP growth will be affected by .15 % with CO2 emission less from 3.6 to 2.6 tonnes
*Access to modern energy services and electricity with technological improvements and low carbon emission growth.
*India can get 30% energy from nonfossil sources by 2030
EU too pledged to decrease emissions by 40% of 1990 levels.
INDIA declares INDC
will decrease emissions intensity by 3035% of GDP till 2030 from 2005 levels
Increased share of RE; 40% from nonfossil based resources by 2030
2.5 trillion USD to complete transformation.
200$ per tonne cess on coal; 100$ on petrol and 64$ on diesel
Increased carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through forest cover by 2030
An ADB study cites that India will have 1.8% of GDP lost due to CC by 2050.
Around USD 206 billion will be required between 20152030 for adaptations in agriculture, forestry, fishing.
India GHG inventory
Electricity 38%
Agriculture17.60%
Transport7.50%
Road to Paris (COP21) from Lima, Peru
Developed countries stand
1.Equity in emission responsibility
China, Brazil, India responsible for 50% of emissions today.
Norway has RE as major source of electricity but exports crude oil of >60.5 bn $ annually.
Developed countries may be pioneers in RE but are dependent on sale of hydrocarbons as major source of wealth.
2.Intended Nationally Determined contributions
Want countries to declare their peak levels
Could be disastrous for India which is still devloping
No external agency to watch these limits obeyed make it less effective.
Developing countries
1.Common but differentiated responsibilities
Developed should take lead to provide solutions.
They have caused carbon emissions much before developing countries.
2.Green climate fund
Developed countries should contribute 100 bn $ by 2020.
This will be used to help mitigate risks in countries affected by climate change.
Only 10 bn $ till now, west in recession, apprehensive of developing stand.
3.Providing green technologies
Green technologies to be transferred to developing countries.
4.Carbon subsidy to carbon taxation
Taxing petrol and other products as international prices have declined.
Carbon taxation on coal or CO2 emission per tonnes coal.
India can do sustainable development with low levels of emissions
INDC (Intended Nationally Determined Contributions)
Pledged at CoP 19 Warsaw 2013 and was to be submitted at CoP 21 in Paris
INDC proposals:
1.Sustainable lifestyles
2.Cleaner economic development
3.Reduce emission intensity of GDP
4.Increased share of nonfossil fuel based electricity
5.Enhancing Carbon sink
6.Adaptation
7.Mobilising finance
8.Tech Transfer and capacity building
Initiatives
UNFCC
UN REDD
IPBES (International Platform on Biodiversity and Ecosystem Services)
SDG or Sustainable Development Goals, 20152030
Sustainable management of Water and sanitation
Affordable and sustainable energy
Employment, sustained economic growth
resilient infrastructure
Safe cities
Sustainable production and consumption
Combat CC; UNFCCC
Conserve and sustainable use of oceans
Restore terrestrial ecosystem
Montreal Protocol and Refrigerant Gases
Hydrofluorocarbons HFCs replaced Chlorofluorocarbons CFCs as the latter has Ozone Depleting capability.
HFC has Global warming potential; amendment was made to the Montreal Protocol to phase down HCFCs as well. Developed countries agreed to freeze the use of HCFCs by
2004 and phase them out by 2020. Developing countries too agreed to freeze HCFCs by 2013 and phase them out by 2030.
Developing countries are worried that with the phase out of HFCs they have to get dependent on developed countries. Their tough IPR laws will force developing world to buy at costly
prices.
India has submitted a proposal with other four to discuss this issue. Also there was a dispute regarding inclusion of HFC under montreal or Kyoto protocol. Montreal has no CBDR in clauses
Mobile Air Conditioning (MAC) sector where the only safe alternative with low GWP is hydrofluoroolefin (HFO). Patents for HFO are owned by Dupont and Honeywell in the
US.
If negotiations head in a direction unfavourable to India because of pressure from the international community, the Indian MAC Industry will be forced to buy the only alternative available
in the market and might not be in a position to manufacture inhouse
But even in 2030 only 10% use of MAC will be in India and hence HFO effect will be less; as for refrigeration and room air conditioners hydrocarbons like propane, CO2, ammonia are
being used in China and other developed countries which have low GWP and easy and cheap availability.
India ranks 81 out of 141 countries on the Global Innovation Index (GII) 2015, well behind middle income countries such as Brazil, China and South Africa. But, in the Central and
Southern Asia region, it retains its top stop in the regional ranking, followed by Kazakhstan and Sri Lanka. Globally, Switzerland, followed by the United Kingdom, Sweden, Netherlands and
the US are ranked as the most innovative countries in the world.
The GII 2015, released on Thursday, is calculated on the basis of how a country fares on seven key parameters institutions, human capital and research, infrastructure,
market sophistication, business sophistication, knowledge and technology outputs and creative outputs
When state governments prepare to compete with each other for capital, they need to first assure industry of a peaceful social environment. The recent Jat agitation in Haryana
may discourage industries from setting up units. Other states like West Bengal faced some kind of social unrest. Other states should be cautious and maintain law and order to attract
investments. (Competitive federalism)
The United Nations Industrial Development Organization (UNIDO), is a specialized agency in the United Nations system, headquartered in Vienna, Austria. The
Organization's primary objective is the promotion and acceleration of industrial development in developing countries and countries with economies in transition and the
promotion of international industrial cooperation. It is also a member of the United Nations Development Group
India is poor because
too many of our 63 million enterprises are informal (only 1.5 million pay mandatory employer pensions and healthcare),
small (85 per cent of manufacturing is done in entities with less than 50 employees),
unproductive (there is a 22times difference in productivity between manufacturing enterprises at the 90th and 10th percentile by size),
unincorporated (only one million of them have limited liability), and
thinly capitalised (only 18,000 companies have paidup capital of more than Rs 10 crore).
A UEN or Universal Identification Number in the offing as many discourages formalisation and promote red tapism.
Aadhar and PAN should be brought into a single entity regulator UIDAI.
Ministries may be reluctant to have PAN as only UEN as it is in MoF. But UIDAI can generate consensus.
No FDI in retail sector has its own woes; 57% of the total wastage postharvest can be avoided with building of warehouses, cold storages, transport chains etc; FDI has been sluggish
in this sector with the regulation.
National Handloom Development Corporation Ltd (NHDC) has become the first PSU under the Ministry of Textiles to have an ERP (Enterprise resource Planning) system.
The ERP system will improve productivity, increase efficiencies, decrease costs and streamline supply of raw material processes in NHDC.
The ERP system will significantly benefit the weavers, who are the primary beneficiaries of the yarn supply scheme of Government of India.
Weavers will gain from quicker delivery of NHDC material. It will also result in higher transparency and accountability, making the corporation’s activities visible for all stakeholders.
Iron & Steel
Cheap imports; less or nil import duty on Korea, Japan due to FTA; China antidumping imposed
Lower production as compared to other countries; 765 million tonnes' 10 million tonnes exported
Less investment by government and private sector; Investment of 200 billion $ in Indian market to nullify imports
Infrastructure worries; transport of iron ore from mines to TATA plants; Noamundi mine closed, coal not received
Forging units in problem with high stell prices in domestic market, BIS certification norms, high minimum import price of steel.
Auto industry will loose; globally prices are low with lower prices of iron ore, coke but Indian iron ore prices are high with huge difference from international prices; A need to balance
interest of few major steel players and hundreds of steel forging units in India.
MIP Minimum Import Price imposed on import of steel; Cost, freight and Insurance of imports must be equal or above than MIP otherwise one cannot import
MIP may hurt small steel end users or engineering firms MSMEs; government must subsidise them, AAS or Advanced Authorisation Scheme imorts are free from MIP but MSME hardly use
AAS ( An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product.
SIT on Black money suggested to scrap MIPs as it causes money laundering; MIP is overpriced by importers in collusion with exporters in other countries ; the difference in actual MIP
is credited in overseas account of the importer.
RareEarth Metals
India has second largest deposits after China but have not really tapped into its potential
China rose to heights in REM industry and became largest exporter and manufacturer of goods with REM. Overtook US, EU
Issues
India needs to utilise REM potential
Industries linkage not there; only PSU like RE Limited; no private sector industry
No market for it in India; only raw materials exported; Monazite sands contain Uranium, thorium and alot of REM like neodymium, yttrium etc
Vikram Sarabhai Space Centre (VSSC) used REM but through imports
Permanent magnets made of neodymium oxides; oxides less profitable than REM
Used in digital tech, mobiles, permanent magnets; India needs domestic REM industry to logically culminate digital India and Make in India.
Way Forward
production of high end specialty steel as being done by global players to counter small grade steel overcapacity in China
But eventually chinese will catch up; maintaining quality by producing tailored steel and other forms can only ensure profitability.
Fourth Industrial revolution
World Economic Forum meet at Davos in 2016 January
1st was based on coal, cotton and steam engine
2nd was based on replicating millioins of copies in a short time; Ford cars and machines
3rd was in 1970s of digital, communication technology
4th is straddling physical, biological and digital technologies.
This time India needs to capitalise on it; also it does not have Britain to blame for its decline as earlier
Artificial intelligence; genome editing; cyber technology etc Human privacy and national security
More inequality; 41% decline in wealth of 50% of the bottom population since 2010; rich getting richer
India and like countries with huge unskilled labour may suffer as high skilled jobs will increase; more mechanisation and robotics
Sedentary lifestyle will be promoted; nutraceticals instead of food; driverless cars etc
Bureaucracy needs to be upgraded to deal with dynamic changes
Ecommerce
Assocham3.8 billion $ in 2009, went up to 23 billion $ in 2015; expected to reach 40 billion $
45% prefer cash on delivery over credit or debit card paymnet
Industrial Corridor
NICA or National Industrial Corridor Authority like NHAI in Budget 201617 probably HQ in Pune
DIPP is nodal agency for industrial corridors like
DMIC, AmritsarKolkata IC, BengaluruMumbai EC, ChennaiBengaluru IC, VishakhapatnamChennai IC (ADB) etc
Will create confidence among investors and lenders like Japan International Cooperation Agency and JBIC, ADB
AKIC Punjab, Haryana, UP, UK, Bihar, Jharkhand, West Bengal
CBIC T.N, Karnataka, Andhra Pradesh
VCIC A.P & T.N
BMEC Karnataka, Maharashtra
DMIC U.P, Haryana, Rajsthan, Gujarat, M.P, Maharshtra
Issues
Parliamentary committee setup to look into problems with ICs
Land acquisition problems
Delegation of powers to SPVs need legislation which is a timeconsuming process, needing amendment of existing laws
Notification and identification of nodes
Loan availability after inspections like ADB in VCIC, JICA in CBIC
(AKIC work has hardly begun)
Water Pollution
Currently only 31% of sewage generated can be treated; 268 STPs but only 231 function across 27 states
Low capacity of STPs treat sewage upto secondary stage which ca be used for low end industries and gardens, toilets
Need to transport recycled water from STPs to industries; a transparent management of such network
Industries use water according to costs associated and availability
But overusgae of groundwater and water bodies, untreated sewage disposal has caused resentment among general public
Government can support industries setup new STPs; get into agreements with Municipals for supply of waste water
Boosting Exports as suggested by FICCI
Proper implementation with easy accessibility of interest subvention scheme and MEIS or Merchandise Export Incentive Scheme
Self certification of goods from origin; renewal of license of factories every 5 years rather than 15 years
Antidumping duty of 25% on steel and customs of 15% which is 1012% at present
Fast disposal of pending cases by Board of Industrial and Financial Reconstruction formed under Sick Industries Act, 1985
SUUTI divestment can fetch government Rs 60,000 crores approx.
Establishing the 3P authority for PPP projects
Adjudication of cases related to customs duty and indirect taxes to help MSMEs.
NATIONAL MANUFACTURING POLICY
Aims to increase share of manufacturing in GDP from 15% to 25%.
Providing single window clearances for various projects
Settingup of NMIZ or National Manufacturing Investment Zones
A Special Purpose Vehicle or SPV will be formed which can have state ownership or a state undertaking or in joint venture with private.
Master Planning will be done by centre and board of approval will be set up by DIPP (nodal body for implementing NMIZ policy)
DMIC will have 8 NMIZ; approvals will be done fast and EIA will be given topmost priority; public hearings will be dispensed with; land pool, acquisition will be done before hand
The size will not be less than 5000 hectares and will differ from SEZs in infrastructure planning, size, exit policies, governance structure.
TADF or Technology Acquisition Development Fund will buy patented technologies and create a pool; MSMEs can meet technology needs from TADF after entering into a contract
for royalty paymnet to patent holder.
18 NMIZs have been setup or are proposed in 201314
Important industries having employment intensive character like textiles, capital goods industry, green manufacturing industries, defence, automobiles, electronics
Funding can be from government along with FDI, ECBs; Declaring NMIZ as Industrial township under Article 264 of CoI
Textile Industry
TUFS introduced in 1999; amended as Revised Restructured TUFS; newly amended ATUFS guidelines; ginning and spinning not covered under revised scheme which gives boost to
garment and technical textiles segments
Integrated Textile Parks Scheme leading to 22 parks with an investment of Rs 30,000 crore by 2020 ; will take total parks to 72
Integrated Processing Development scheme
Amnedment in labour laws
Incubation centres from technical textiles; manufactured for nonaesthetic purposes like in protective clothing in automobile industries,
medical; technology mission for technical textiles; 8 centres of excellence
New Hydrocarbon Exploration and Licensing Policy
License to be comprehensive for all hydrocarbons rather than for crude oil, natural gas and others separately.
Open acreage policy; explorers can choose from the blocks they want to use in the designated area.
Profit Sharing Contract has been replaced with Revenue Sharing Contract; profitable to government but private player will have to increase capital expenditure to reap profits; may put
more pressure on private player
Production sharing contract of 28 small and marginal fields extended till the life of assets
ECONOMIC CENSUS
Census of the Indian economy through counting all entrepreneurial units in the country which involved in any economic activities of either agricultural or nonagricultural
sector which engaged in production and/or distribution of goods and/or services not for the sole purpose of own consumption.
Economic census provides detailed information on operational and other characteristics such as number of establishments, number of persons employed, source of finance,
type of ownership etc.
These information used for micro level/ decentralized planning and to assess contribution of various sectors of the economy in the gross domestic product (GDP)
6th Economic census in 2013 while it started in 1977.
Employment increased with creation of more enterprises in Uttar Pradesh; 67% increase since 2005
Rural areas have seen growth of enterprises
1/3rd of 36 states/UTs shown increase in enterprises and employment faster in rural than urban; positive growth in number of enterprises in every state/UT except Delhi where it dipped
The Economic Census also provides data on whether the enterprises and employment have been created in rural or urban areas.
Overall, urban India has performed better, seeing a growth of 47 per cent in the number of establishments and 42 per cent growth in employment over the last decade.
Rural India saw a growth of 38.4 per cent and 34.8 per cent, respectively.
“Top five States, namely, Uttar Pradesh (11.43 per cent), Maharashtra (10.49 per cent), West Bengal (10.10 per cent), Tamil Nadu (8.60 per cent) and Andhra Pradesh (7.25
per cent) together accounted for about 50 per cent of the total number of establishments in the country,”
PPP or Public Private Partnership Model
The Planning Commission defines PPP to be ‘involving private management of public service through a longterm contract between an operator and a public authority,
whereas privatization involves outright transfer of a public service or facility to the private sector.’
Public Utilities Dispute Resolution Bill will be tabled as per Budget 201617.
India is the largest issuer of PPP projects.
But many PPP are stuck in delayed approvals, lack of credit, land acquisition issues
MCA or Model Concession Agreements are not flexible; Private player and Government should look after each other's profits and manage accordingly; Budget 201617 focuses on
Negotiation mechanisms; will help in Port infrastructure
Kelkar committee recommendations
PPP in managing airports; better regulatory oversight of services provided by airports like customs, immigration
Suggestions of return of equity, use of nonairport lands etc
Speed up the overall environmental clearance process
For the port sector; increase manpower, infrastructure and competencies with statutory authorities at the state and central levels.
Tariff Authority for Major Ports or TAMP to have stable frameworks rather than multiple which creates confusion
Acquisition of land, dredging, railroad connectivity and other infrastructure facilities
An independent regulator for PPP projects; stalled projects need private and public investment; easier funding with longgestation periods;
Small projects should not be taken in PPP model
PROBLEMS & SOLUTIONS
Some points of criticism by CAG in its various PPP reports and the possible solutions by
Kelkar committee
PORTS
CAG
Delays in majority of projects due to time taken in finalization of tenders, security clearances,
concession agreement and tender process

Delays in obtaining environmental clearance

Delays in handing over of project sites and back up area
KELKAR COMMITTEE
Urgent need to focus on strengthening the systems to speed up the overall environmental
clearance process

More institutions are required to be given authorization for conducting Coastal Regulation
Zone demarcation

Need to provide support infrastructure facilities including land, utilities, dredging, rail and road
evacuation infrastructure through enforceable obligations
ROAD
CAG
Inconsistency in adopting carrying capacity/tollable traffic as yardstick for determining the
Concession Period by NHAI resulted in fixing higher concession period and higher toll burden on road
users

Projects were approved despite the known late realization of minimum threshold traffic

The Total Project Cost (TPC) worked out by the concessionaires was higher as compared
to TPC worked out by the NHAI. In 25 projects, TPC worked out by concessionaire was higher by
50%
KELKAR COMMITTEE
In the case of BOT toll projects, focus on projects with longer concession period. NHAI,
concessionaire can opt for revenue share on a case to case basis

In case of projects that are not viable on BOT toll basis, options to fund through hybrid models,
grant of VGF, part annuity, O&M grants, and debt instruments, maybe explored.

The concessioning authority may undertake detailed project development activities including
demand assessment, soliciting stakeholder views on project structure and financial viability analysis to
estimate a shadow bid, which could be used to compare actual bids received
More than 40 % of all central government projects behind schedule or overrun cost estimates; Ministry of Statistics and Implementation report
Setting up of Infrastructure PPP Review Committee (IPRC) and Infrastructure PPP Adjudication Tribunal (IPAT) statute enacted under Article 323B of CoI to enable 2 tier mechanism
Under Swiss challenge bidders can improve upon costs estimated by another player; lack of transparency and fair treatment of bidders; Railways award projects through this route
Officers saved from witch hunt by amending PCA
PPP in violation
Designation under UNSC Resolution 1267 does not explicitly require a government to arrest the designated individual, although it demands an arms embargo, a funds freeze, and
a travel ban
Between 25 to 35 million Kurds inhabit a mountainous region straddling the borders of Turkey, Iraq, Syria, Iran and Armenia. They make up the fourthlargest ethnic group in the
Middle East, but they have never obtained a permanent nation state.
In recent decades, Kurds have increasingly influenced regional developments, fighting for autonomy in Turkey and playing prominent roles in the conflicts in Iraq and Syria, where they have
resisted the advance of the jihadist group, Islamic State (IS).
By injecting a sense of fear it gets easier for terrorists to impact the psyche of government deeply.
Where do they come from?
The Kurds are one of the indigenous people of the Mesopotamian plains and the highlands in what are now southeastern Turkey, northeastern Syria, northern Iraq, northwestern Iran
and southwestern Armenia.
Today, they form a distinctive community, united through race, culture and language, even though they have no standard dialect. They also adhere to a number of different
religions and creeds, although the majority are Sunni Muslims.
National Counter Terrorism Centre (NCTC)
The key pillars of counterterrorism are intelligence, analysis, and single command and control. Raw information lies as raw information and is
practically useless. Honing information into intelligence is analysis and that is a specialist’s function. In the complex world of counterterrorism, high
quality analysis requires a multidisciplinary approach bringing together the skills of the border guard and the computer technologist, the policeman
and the professor (of chemistry or engineering or psychology), the spy and the scientist. The third pillar is a single command and control to undertake
counterterrorist operations.
Antiterrorism approach
A step by step normalisation process of relations against Pakistan
Operation Parakaram in 200102 showed loopholes in army after the Parliament attack in 2001
A counterforce doctrine is needed for swift and accurate action
Converting army into mobile and leaner units
ISIS
1st city captured was Mosul, then Kirkuk in Iraq
A political dialogue is needed between Syrian government, rebels, Iraqi government and US & Us backed groups.
Multistakeholders approach; Iran should also be brought in fold.
Turkey should stop supporting rebels. Iran, Saudi Arabia should talk.
As millions support ISIS, annihilation of ISIS is not possible but truce.
25 Indians have so far joined ISIS as reported by intelligence agencies; many stopped and many under surveillance
Global Counterterrorism Forum
30 founding members (29 countries + EU) on 22 September, 2011 with the help of then US secretary of state Hilary Clinton.
Talks and discussions between domestic and international agencies and preparing strategies.
Belgium Blasts
Belgium a state created by Britain; buffer state between France and Netherlands; constitutional monarchy setup by Britain; Britain as a protector of neutrality and Belgian independence
through Treaty of London signed in 1839 under Lord Palmerston
Divided on lingual grounds; French and Dutch; 589 days of no elected government in 201011; cultural issues
Terrorist's visiting land with EU institutions
Schengen area visa free travel; Benelux customs agreement in 1944; relaxation of entry at borders; inviting trouble
The Indian Government constituted the Intellectual Property Appellate Board ("IPAB") on September 15, 2003 to hear and adjudicate appeals against the decisions of the Registrar
under the Indian Trade Marks Act, 1999 and the Indian Geographical Indications of Goods (Registration and Protection) Act, 1999.
The IPAB has since April 2, 2007 been extended to Patent law and is now authorized to hear and adjudicate upon appeals from most of the decisions, orders or directions made by the
Patent Controller. Also vide a notification, all pending appeals from the Indian High Courts under the Patents Act were transferred to the IPAB from April 2, 2007.
The IPAB has its headquarters at Chennai and has sittings at Chennai, Mumbai, Delhi, Kolkata and Ahmedabad.
Agreement on TradeRelated Aspects of Intellectual Property Rights (TRIPS)
An international agreement administered by the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP)
regulation as applied to nationals of other WTO Members. It was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994.
In 2001, developing countries, concerned that developed countries were insisting on an overly narrow reading of TRIPS, initiated a round of talks that resulted in the Doha Declaration.
The Doha declaration is a WTO statement that clarifies the scope of TRIPS, stating for example that TRIPS can and should be interpreted in light of the goal "to promote access to
medicines for all."
Specifically, TRIPS requires WTO members to provide copyright rights, covering content producers including performers, producers of sound recordings and broadcasting organizations;
geographical indications, including appellations of origin; industrial designs; integrated circuit layoutdesigns; patents; new plant varieties; trademarks; trade dress; and undisclosed
or confidential information. TRIPS also specifies enforcement procedures, remedies, and dispute resolution procedures.
Compulsory Licensing
India's new National IPR Policy and National Manufacturing Policy
Bone of contention with EU, USA; may discourage investment
Under CL, India will grant licenses for certain technologies if Patent holder does not provide it at reasonable rates or domestic demand is not being met
However India does not confiscate but pays royalty to patent holder; a need for transfer of technology
Section 92 of Indian Patents Act assures patent holders that compulsory license is to be granted only for emergency purposes or matters of extreme urgency or for non
commercial use. It forms a part of TRIPS since 1995
India used CL once in Bayer Pharma's Nexavar drug priced at $4700 per month making even top 20% of Indians shaky of their health concerns
Lack of data depicting gravity of any disease like Cancer prevents compulsory licensing. Only a few times patents have been awarded like to natco for a drug related to kidney cancer
under compulsory licensing or for cheap availability.
Private hospitals must release data for better policy formulation by the government
ISSUES
US Chamber of Commerce's Global Intellectual Property Centre (GIPC) has ranked India second to last among the 38 countries included in its fourth annual intellectual property
rights (IPR) index.
In other words, it holds the patent protection regime in India as not being in line with the international best practices. Among the limitations mentioned in India's IPR
environment are
the absence of specific IP rights for the life sciences sector;
weak enforcement environment;
lack of mechanisms to effectively combat online piracy, copyright infringement
flawed data protection norms;
nonparticipation in the international IPRrelated treaties referenced in the index.
Besides, it has cited the usual objections raised by US industry and the office of the US Trade Representative (USTR) concerning the patent requirements and the provision for
compulsory licensing in the Indian patent law.
But India's patent regime is based upon providing cheap public health care to millions of poor and compliant under TRIPs and Doha Declaration; it may not suit developed world but is
highly recommended for Indian circumstances.
India should frame a internationally compliant IPR policy and provide better and easy resolution of disputes at courts
Geographical Indica‸㤵on Status
1.Place of origin of a product is used which shows assurance of quality.
2.It s a form of IPR under Paris Convention for Protection of Industrial Property.
3.GI act (Registration and Protection) 1999 of India for registration, infringement protection & protection of authorised users.; a weak law as it does not specify inspection and
monitoring mechanisms for GI protection; Europe has tough GI inspection laws
4.Due to nonrecognition, lack of knowledge among people, government support these are imitated, duplicated, mixed and sold inferior in quality thus harming the workers, artists.;
proper marketing facilities, funding, advertisement and protection
5.Article 22 of Trade Related Aspects of Intellectual Property Rights Agreement says that unless a product is protected in domestic country by GI status no obligation to other countries for
protection.
6.Can supplement Make in India program by indigenous quality production
Ex Gulbarga toor.
#Nendran banana variety Chengalikonda chosen as GI
#Darjeeling Tea was the first Indian product.
#Nagpur Orange among the last.
#Mysore silk, Mysore Pak (sweet), Thanjavur Veena.
Others in race
1.Chattisgarh
Bastar Dhokra
Metal artifacts by waxcasting technique.
ExDancing girl of Mohenjodaro
2.Uttar Pradesh
Kalanamak Rice
Found in Aligarhwa the terrirtory of Buddha's father, Shuddodhan.
3.Firozabad glass
Chandeliers
Brought to India by Muslim invaders.
4.Gujarat
Patan Patola
Double ikat craft800 years old.
Patola saris made elsewhere too. But patan patola is best.
5.Kerala
Kaipad rice
Rice and aquaculture together
Grown by organic farming.
6.Maharashtra
Warli Painting
No outline before painting
2500 years old
Kolhapur Jaggery
Fresh sugarcane juice without chemicals
Nagpur Orange
Acidsugar blend with sweet flavour aroma
7.Orissa
Orissa Pattachitra
8th century A.D
8.Madhya Pradesh
Bell Metal ware of Datia and Tikramgarh
Bronze used for making bells.
A tribal craft
9.Assam
Muga silk
Goldenyellow silk.
10.Andhra
Dharamveeram Handloom Pattu Sarees and Paavadas
Mulberry silk woven by hand
11.Rajasthan
Thewa At work
Jewelery with base material of gold and silver
Goes back to 300500 years
12.Manipur
Shaphee Lanphee, Wangkhei Phee
S.L is Redborder shawl worn by Nagas of Manipur as honour.
W.P is fine cotton and seethrough fabric worn by women.
13.Himachal
Kullu Shawl
Geometrical designs
Devika Rani, an actor propagated.
14.West Bengal
Four sweetmeats namely Moa of Jainagar, Sarpuria of Krishnagar, Sitabhog and Mihidana of Burdwan
15.J&K
Pashmina shawls or Pamb as locally called
Fake shawls in market; GI tags on shawls from the valley; ecommerce can check that; sale gets disturbed often with curfews and protests; around 7 lakh educated youth unemployed;
state ranks 29 on the ease of doing business
Basmati rice given GI status by Intellectual Property Apellate Board (IPAB) in IndoGangetic plains on foothills of Himalayas namely Punjab, Haryana, H.P, Delhi, Uttarakhand,
Western UP and two districts of Jammu and Lathua
India exports a major quantity of basmati rice to Saudi Arabia, Iran, UAE, Iraq and Kuwait
USTAAD (Upgrading the Skills and Training in Traditional Arts/crafts for Development Scheme) launched in Varanasi
Will benefit 40,000 silk weavers
Patent of Software
Office of The Controller General of Patents, Designs and Trade Marks August 2015 guidelines allowed patents on technological advancements.
But in February it has become clear that software cannot be patented
3 processes of awarding patents; first interpretation, second checking improvement in business method, algorithm or mathematical model only and third checking conjunction with
novel development of hardware
If allowed big corporates can invest and develop existing softwares and acquire patents which will affect small players;
On the other hand it can help small players who have to invest a
lot to protect their softwares and innovations.
India has foiled UK based company Pangaea Laboratories Limited’s bid to patent use of pine bark, turmeric and
tea for treating hair loss.
India was able to protect its traditional knowledge after Traditional Knowledge Digital Library (TKDL), a unit of Council
of Scientific and Industrial Research (CSIR) had filed pregrant opposition against UK based company along with
priorart evidences using these 3 natural ingredients
National Security Guard (NSG)
Under the Ministry of Home Affairs (MHA) since 1984, following Operation Blue Star
Not categorised under the uniform nomenclature of Central Armed Police Forces
It has a special forces mandate, and its core operational capability is provided by the Special Action Group (SAG) which is drawn from the Indian Army. The Special Rangers
Group (SRG), the police component of NSG, which also handles VIP security, is composed of personnel on deputation from other Central Armed Police Forces and State Police Forces.
The NSG personnel are often referred to in the media as Black Cats because of the black dress and black cat insignia worn on their uniform.[6]
Recent Pathankot operation by NSG commandos with death of one officer
NBDC or National Bomb Data Centre for dealing with bomb related diffusion, management all over India.
National Biotechnology Development Strategy
India as a biotech innovation hub
Capital, quality infrastructure, talent needed
R&D
Tax exemption; withdrawal of weighted deduction for expenditure on scientific research impede innovation
Impact SEZs; pharma exports at 15 billion $ in 2015. employment to 10 million people
Impact of sectors must be assessed on economy before any tax exemption withdrawal
Four missions in healthcare, food and nutrition, clean energy and education and create a technology development and translation network across India
Seed Fund
0.1 million dollars fund by Department of Biotechnology through the Biotechnology Industry Research Council (BIRAC)
For R&D; rising TB drug resistance; 2 million cases
Affordable, effective diagnostic test to detect resistance to microbes; Longitude Prize a 10 million pounds prize
Collaboration with Finnish funding agency, Tekes and HIA or Horticulture Innovation Australia for sustainable horticulture.
1. SecurityInternal/External
2. Technology and Issues
3. Agriculture
4. ENVIRONMENT
5. Biotechnology
6. IPR
7. SPACE TECH
8. Economy
9. Infra
10. WELFARE
11. CYBER SECURITY
12. E.S/BUDGET 20141516
13. Climate Change
14. Organisations
15. Skill Development
16. Terrorism
17. Industries
18. Energy in India
19. Tourism
20. Disaster Management
21. Investment Models
22. National Security Guard (NSG)
23. Nanotechnology
24. NCERT/Books
25. NCERT
26. Sports

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6/28/2016 Evernote Export

3.Bt cotton demands more water than traditional. Also, soil at Vidarbha is shallow and demands high water.

The National Green Tribunal has been established on 18.10.2010 under the National Green Tribunal Act 2010 for effective and expeditious disposal of cases

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