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DAILY CURRENT AFFAIRS, 31 MARCH 2025

EARTHQUAKE

 

1. Context

The death toll from a huge earthquake that hit Myanmar and Thailand passed 1,600 on Saturday, as rescuers dug through the rubble of collapsed buildings in a desperate search for survivors

2. What is an Earthquake?

An earthquake is an intense shaking of the ground caused by movement under the earth’s surface. It happens when two blocks of the earth suddenly slip past one another, according to USGS. This releases stored-up ‘elastic strain’ energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground.

3. How do exactly Earthquakes Occur?

  • As we know, the earth’s outermost surface, crust, is fragmented into tectonic plates. The edges of the plates are called plate boundaries, which are made up of faults.
    The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other.
  • As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving.
  • Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults.
  • The location below the earth’s surface where the earthquake starts is called the hypocenter, and the location directly above it on the surface of the earth is called the epicenter.”

4. Earthquake waves

The release of energy during an earthquake generates waves which are called Earthquake Waves. Earthquake waves are basically of two types body waves and surface waves.
Body waves: They are generated due to the release of energy at the focus and move in all directions traveling through the body of the earth. Hence, the name body waves. The body waves interact with the surface rocks and generate a new set of waves called surface waves.
Surface waves: These waves move along the surface. The velocity of waves changes as they travel through materials with different densities. The denser the material, the higher the velocity. Their direction also changes as they reflect or refract when coming across materials with different densities.

There are two types of body waves. They are called P and S-waves.

P-waves or ‘primary waves’ move faster and are the first to arrive at the surface. The P-waves are similar to sound waves. They travel through gaseous, liquid, and solid materials.
P-waves vibrate parallel to the direction of the wave. This exerts pressure on the material in the direction of propagation. As a result, it creates density differences in the material leading to stretching and squeezing of the material.
S-waves or secondary waves arrive at the surface with some time lag. They can travel only through solid materials. This characteristic of the S-waves is quite important. It has helped scientists to understand the structure of the interior of the earth.
The direction of vibrations of S-waves is Perpendicular to the wave direction in the vertical plane. Hence, they create troughs and crests in the material through which they pass. Surface waves are considered to be the most damaging waves.

5. Measuring of Earthquakes

  • The earthquake events are scaled either according to the magnitude or intensity of the shock.
  • The magnitude scale is known as the Richter scale. The magnitude indicates the energy released during the quake. It is expressed in absolute numbers 0-10.
  • The intensity scale is named after Mercalli, an Italian seismologist. The intensity scale indicates the visible damage caused by the event. The range of intensity scale is from 1-12.

6. Turkey and Syria lie in a seismically active region

  • The region where the earthquake struck lies along a well-known seismic fault line called the Anatolia tectonic block that runs through northern, central, and eastern Turkey.
  • It is a seismically active zone-though not as active as, say, the Himalayan region which is one of the most dangerous regions in the world from the perspective of earthquakes.
  • Large earthquakes, of magnitude 5 or higher, have not been very frequent in recent years. According to USGS, only three earthquakes of magnitude 6 or more have happened in the region since 1970. The last major quake in this area came in January 2020.
  • The seismicity in this region is a result of interactions between the African, Eurasian, and Arabian plates. The Arabian plate is known to be pushing northward, which results in a slight westward movement for the Anatolian plate, where Turkey is located.
  • The earthquake happened around the near-vertical fault line on the eastern Anatolian block, close to the Syrian border.

7. Shallow Earthquakes cause much greater damage

  • Earthquakes in Turkey emerged from relatively shallow depths which made them devastating. The first earthquake, of magnitude 7.8, originated 17.9 km below the earth's surface.
  • All the subsequent ones, including one of 7.5 magnitudes, emerged from even closer to the surface.
  • Shallow earthquakes are generally more devastating because they carry greater energy when they emerge on the surface.
  • Deeper earthquakes lose much of their energy by the time they come to the surface. The deeper quakes spread farther though- the seismic waves move conically upwards to the surface even as they lose energy while traveling greater distances and hence cause less damage.

8. Can earthquakes be predicted?

  • An accurate prediction of an earthquake requires some sort of a precursory signal from within the earth that indicates a big quake is on the way.
  • Moreover, the signal must occur only before large earthquakes so that it doesn’t indicate every small movement within the earth’s surface. Currently, there is no equipment to find such precursors, even if they exist.
  • Theoretically, it is possible to offer a lead time of a few seconds between the time of the origin of the earthquake and the time it reaches the Earth’s surface.
  • Seismic waves travel significantly slower than the speed of light between 5 and 13 km
    per second. So if the earthquake is detected as soon as it is triggered, information about it can be related a few seconds ahead of it reaching the ground.
  • Such systems are already in use in some locations to issue alerts about earthquakes. However, these are not predictions. The alerts are issued post-event.
  • Attempts to find reliable predictors of earthquakes have not been fruitful so far. Scientists have been able to map the areas that are earthquake-prone, and are likely to generate earthquakes in the future, but there is no way to predict when.

For Prelims & Mains

For Prelims: Earthquake, Tectonic plates, Hypocenter, Epicenter, Body waves, Surface waves, P-waves or ‘primary waves’, S-waves or secondary waves, Richter scale, and Seismic waves.
For Mains: 1. What is an Earthquake? How do exactly Earthquakes Occur? Discuss the effects of Earthquakes.
 
Source: The Indian Express
 
 

INDIA-US DIGITAL TRADE

 

1. Context

Top trade officials from India and the U.S. have broadly come to an understanding on the next steps toward a bilateral trade agreement (BTA) setting the pitch for sectoral expert level engagements that will start virtually in the coming weeks, as per the Commerce Department

2. Current Status of India-US technology trade

  • In FY2023, the United States became India's largest overall trading partner with a bilateral trade increase of 7.65% to $128.55 billion in 2022-23.
  • Digital or technology services did not play a prominent role in bilateral trade between the two countries.
  • The US ran a trade deficit of $27 billion in digital services with India in 2020.
  • The US and India have been strengthening their tech partnership through initiatives like the Initiatives on Critical and Emerging Technology (iCET) announced by President Joe Biden and Prime Minister Narendra Modi.
  • The iCET led to the establishment of a strategic Trade Dialogue between India and the US, focusing on addressing regulatory barriers and aligning export controls for smoother trade and deeper cooperation in critical areas.

3. CCIA's Concerns in U.S.-India Economic Relationship

  • The CCIA (Computer & Communications Industry Association) acknowledges the efforts to enhance bilateral trade but raises concerns about the "significant imbalance" and "misalignment" in the U.S.- India economic relationship.
  • According to the CCIA, the Indian government has implemented protectionist industrial policies that favor domestic players over U.S. digital service providers, resulting in a tilted playing field.
  • One example highlighted by the CCIA is India's guidelines on sharing geospatial data, which allegedly provide preferential treatment to Indian Companies.
  • The CCIA also expresses dissatisfaction with India's departure from democratic norms and values, citing increased government censorship and control over political speech, making it challenging for U.S. companies to operate in India.

4. India's Expanded Equalisation Levy on Digital Services

  • In 2016, India introduced an "equalization levy" of 6% on specific digital services received by non-residents without a permanent establishment in India from Indian residents.
  • In 2020, the "Equalisation Levy 2.0" was implemented, imposing a 2% tax n gross revenues received by non-resident e-commerce operators from providing e-commerce supplies or services to Indian residents or non-resident companies with a permanent establishment in India.
  • The initial introduction of the equalization levy in 2016 resulted in double taxation and complexity in the taxation framework. It raised concerns about constitutional validity and compliance with International obligations.
  • The 2020 amendment expanded the levy's scope, making it sweeping and vague.
  • In 2021, instead of introducing an amendment, the Indian government issued a "clarification" stating that the expression "e-commerce supply or service" includes the online sale of goods, online provision of services, and facilitation of online sales or services.

5. Concerns Regarding India's IT Rules 2021

  • The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 have been flagged by a consortium of foreign tech firms as "problematic policies".
  • The rules impose compliance burdens on social media intermediaries (SMIs) and platforms with five million or more registered users, affecting several U.S. firms.
  • Points of concern include impractical compliance deadlines and content takedown protocols. Intermediaries are required to remove content within 24 hours of receiving a government or court order.
  • The rules also require platforms to appoint a local compliance officer.
  • Amendments made to the rules oblige SMIs to remove information or communication links related to prohibited content categories within 72 hours of receiving a complaint.
  • Criticism is directed at the establishment of three-member Grievance Appellate Committees (GAC), which have the power to hear user complaints about content-related decisions by SMIs and can overturn those decisions.

6. Ambiguities in India's Digital Personal Data Protection Bill

  • Foreign tech firms appreciate improvements in the fourth draft of the Digital Personal Data Protection Bill released in November 2022.
  • However, uncertainties remain regarding cross-border data flows, compliance timelines, and data localization.
  • India, with over 759 million active internet users, holds significant data and aims to become a hub for data processing.
  • India's policy on data flow across borders will have global implications, similar to the impact of the European Union's GDPR.
  • Data localization requirements can increase operating costs for companies and may be viewed as discriminatory by foreign firms.
  • The new draft has minimal information on cross-border data flows, stating that it will only be allowed to countries notified by the Indian government.
  • The basis for country notifications and the terms for data transfers are not specified, raising questions about the potential backlisting of non-notified countries.
  • The CCIA suggests a proactive approach supporting cross-border data flows through certifications, standard contractual clauses, and binding corporate rules instead of an opaque approach.

7. CCIA's Concerns about the Draft Telecommunications Bill, 2022

  • The CCIA argues that the draft Telecommunications Bill has an expansive regulatory scope that would redefine "telecommunication services" to include internet-enabled services that differ significantly from traditional telephony and broadband services.
  • The current draft includes both Telecom Service Providers (TSPs) and Over-the-Top (OTT) communication services within the definition of " telecommunication services."
  • OTT communication services, such as messaging platforms (WhatsApp, Telegram, Signal, and Google Meet) utilize TSP's network infrastructure to offer features that compete with traditional telecommunication services like voice calls and SMS.
  • If passed in its current form, the proposed law would impose burdensome obligations on platforms, including licensing requirements, government access to data, encryption requirements, internet shutdowns, infrastructure seizure, and potentially monetary obligations.
  • The CCIA argues that the law would introduce a global authorization/licensing requirement for digital firms, which is unprecedented.

8. Proposed "Digital Competition Act" and Estimated Taxes

  • The Parliamentary Committee on Finance proposed a "Digital Competition Act" last year to tackle anti-competitive practices by big tech companies.
  • The proposed act includes the implementation of estimated taxes specifically for significant digital intermediaries.
  • The CCIA suggests that the proposal seems to be primarily aimed at U.S. tech companies.
  • The details and specifics of the proposed act and estimated taxes are not provided in the given information.
For Prelims: Critical and Emerging Technology (iCET), CCIA (Computer & Communications Industry Association), Equalisation Levy 2.0, Double taxation, IT (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021, Social Media Intermediaries (SMIs), Grievance Appellate Committees (GAC), Telecom Service Providers (TSPs) and Over-the-Top (OTT).
For Mains: 1. Discuss the recent trends and developments in India-U.S. digital trade, highlighting its significance for both countries. Examine the key sectors and areas of cooperation in this domain. (250 Words).
 
 

Previous year Question

1. Recently, the USA decided to support India's membership in multilateral export control regimes called the "Australia Group" and the "Wassenaar Arrangement". What is the difference between them?
1. The Australia Group is an informal arrangement that aims to allow exporting countries to minimize the risk of assisting chemical and biological weapons proliferation, whereas the Wassenaar Arrangement is a formal group under the OECD holding identical objectives.
2. The Australia Group comprises predominantly Asian, African, and North American countries, whereas the member countries of Wassenaar Arrangement are predominantly from the European Union and American continents.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: D
 
Source: The Hindu
 

INDIA-US PARTNERSHIP

 
 
1. Context
Two decades after it was inked, decks have been cleared to tap the commercial potential of the India-US civil nuclear deal with an unprecedented regulatory clearance from the US Department of Energy (DoE) that will allow a US company to build and design nuclear reactors in India
 
2.India-US Relationship
  • India and the United States has been multifaceted and has evolved over the years. It covers various areas such as strategic, economic, technological, and cultural cooperation.
  • India and the United States have developed a strategic partnership, marked by regular high-level diplomatic engagements and cooperation on regional and global issues. Both countries share common values such as democracy and a commitment to a rules-based international order
  • Defense and security ties between India and the U.S. have strengthened. Both countries participate in joint military exercises, and there is ongoing collaboration in defense technology and procurement. The Logistics Exchange Memorandum of Agreement (LEMOA) and the Communications Compatibility and Security Agreement (COMCASA) are examples of agreements aimed at enhancing defense cooperation.
  • Economic ties have expanded, with both countries being significant trade partners. Bilateral trade has increased, and efforts have been made to address trade imbalances. The U.S. has been a major source of foreign direct investment (FDI) in India, and both sides have expressed interest in further deepening economic collaboration.
3. Key Elements of Partnerships of India-US

3.1.Technology partnership

  • Micron Technology, in collaboration with the backing of the India Semiconductor Mission, plans to allocate over $800 million for the establishment of a new semiconductor assembly and test facility in India, contributing to a total investment of $2.75 billion. Additionally, Applied Materials is set to construct a Semiconductor Centre for Commercialization and Innovation in India, aimed at enhancing the diversification of the semiconductor supply chain between the two countries. Simultaneously, Lam Research intends to facilitate the training of 60,000 Indian engineers through its "Semiverse Solution," aligning with India's objectives for accelerated semiconductor education and workforce development
  • India has recently joined the Minerals Security Partnership (MSP) led by the United States, aimed at expediting the establishment of robust and sustainable global supply chains for critical energy minerals. Commencing in June 2022, MSP already includes 12 other partner nations and the European Union. As part of this collaboration, Epsilon Carbon Limited from India is set to inject $650 million into the creation of a greenfield facility for electric vehicle battery components, marking the most substantial Indian investment to date in the U.S. electric vehicle battery sector.
  • India and the United States have initiated collaborative efforts through public-private Joint Task Forces dedicated to the advancement and implementation of Open RAN systems, as well as the progress of advanced research and development in telecommunications. The joint leadership of India's Bharat 6G and the U.S. Next G Alliance in this public-private research endeavour is aimed at diminishing expenses, enhancing security, and fortifying the resilience of telecommunication networks.
  • India has officially endorsed the Artemis Accords, aligning itself with 26 other nations dedicated to fostering peaceful, sustainable, and transparent collaboration for the exploration of celestial bodies such as the Moon, Mars, and beyond. In a significant development, NASA is set to offer advanced training to astronauts from the Indian Space Research Organization (ISRO), with the objective of initiating a joint mission to the International Space Station in 2024. Furthermore, NASA and ISRO are actively working on establishing a strategic framework for cooperation in human spaceflight, with plans to finalize the agreement by the conclusion of 2023.
  • A collaborative effort has been instituted by both nations through the creation of a Joint Indo-US Quantum Coordination Mechanism. This mechanism is designed to streamline cooperative research endeavors involving the public and private sectors in both countries. Additionally, they have formalized an implementing arrangement to bolster joint research initiatives focusing on quantum technologies, Artificial Intelligence (AI), and advanced wireless technologies.
  • The National Science Foundation of the United States has disclosed 35 collaborative research projects in conjunction with India's Department of Science and Technology. Additionally, a fresh cooperative agreement has been formalized between the U.S. National Science Foundation and India's Ministry of Electronics and Information Technology, specifically targeting emerging technologies
  • Sterlite Technologies Limited of India has committed a $100 million investment towards establishing a manufacturing facility for optical fiber cables in close proximity to Columbia, South Carolina. This initiative is expected to support annual optical fiber exports from India amounting to $150 million
3.2.Defence Partnership
  • The Joint Statement expressed approval for the innovative proposal put forth by General Electric to collaboratively manufacture the F414 jet engine in India. General Electric and Hindustan Aeronautics Limited (HAL) have formalized a Memorandum of Understanding (MoU), and a manufacturing license agreement has been presented for Congressional Notification. This unprecedented initiative, marking the first time F414 engines will be produced in India, is poised to facilitate a more extensive transfer of U.S. jet engine technology than previously experienced
  • India has plans to acquire armed MQ-9B SeaGuardian Unmanned Aerial Vehicles (UAVs), aiming to enhance the country's intelligence, surveillance, and reconnaissance capabilities
  • The U.S. Navy has finalized a Master Ship Repair Agreement (MSRA) with Larsen and Toubro Shipyard in Kattupalli (Chennai) and is in the process of completing agreements with Mazagon Dock Limited (Mumbai) and Goa Shipyard (Goa). These arrangements will permit U.S. Navy vessels to undergo maintenance and repair at Indian shipyards during their voyages.
  • The inauguration of the India-US Defence Acceleration Ecosystem (INDUS-X) took place on June 21, 2023. This network involves participants from universities, incubators, corporations, think tanks, and private investors. The program is designed to foster collaborative innovation in defense technologies and expedite the integration of India's private sector defense industry with its U.S. counterpart
3.3. Cooperation in the Indo-Pacific
 

Titled 'Taking the Lead on the Global Platform,' the Joint Statement highlights several strategic actions undertaken by the two nations.

  • Indo-Pacific and Indian Ocean: The United States will become a participant in the Indo-Pacific Oceans Initiative, a regional effort initiated by Prime Minister Modi in 2015 to ensure a secure, stable maritime environment and advocate for its conservation and sustainable utilization. India will maintain its role as an observer in the Partners in the Blue Pacific. The U.S. and India plan to conduct an Indian Ocean Dialogue involving experts and stakeholders from the broader Indian Ocean region to enhance regional coordination.
3.4.Sustainable development
  • India and the United States will persist in their collaborative efforts to meet their individual climate and energy objectives. The United States appreciates India's commitment to jointly spearhead the Hydrogen Breakthrough Agenda, a multinational initiative aimed at making affordable renewable and low-carbon hydrogen accessible worldwide by 2030
  • The Joint Statement underlines the mutual dedication of both nations to establishing inventive investment frameworks. These frameworks aim to reduce the capital costs and draw substantial international private financing for projects related to renewable energy, battery storage, and emerging green technologies in India. Additionally, the statement acknowledges efforts to decarbonize the transportation sector and highlights India's establishment of the Global Biofuels Alliance, in which the U.S. is a founding member
3.5.Initiatives on health
  • The U.S. National Cancer Institute is set to encourage cooperation between American and Indian scientists through two recently awarded grants. These grants aim to create an Artificial Intelligence (AI)-enhanced digital pathology platform for purposes such as cancer diagnosis, prognosis, and forecasting therapeutic outcomes. Additionally, the grants will support the development of AI-driven automated radiotherapy treatment specifically for cervix, head, and neck cancers.
  • The U.S. National Institute of Diabetes and Digestive and Kidney Diseases is poised to enter into an agreement with the Indian Council of Medical Research. This collaboration aims to advance research in the realms of basic, clinical, and translational studies on diabetes. Additionally, the United States and India are set to convene a US-India Cancer Dialogue, facilitated by President Biden's Cancer Moonshot initiative. This dialogue will serve as a platform for experts from both countries to identify specific areas of collaboration, accelerating the pace of progress in the fight against cancer.
3.6.Fighting terror and drugs
  • The Joint Statement reaffirmed the commitment of the United States and India to jointly combat global terrorism, condemning terrorism and violent extremism in all its forms. President Biden and Prime Minister Modi reiterated the need for concerted action against UN-listed terrorist groups, including al-Qa’ida, ISIS/Daesh, Lashkar e-Tayyeba (LeT), Jaish-e-Mohammad (JeM), and Hizb-ul-Mujhahideen.
  • They strongly denounced cross-border terrorism and the use of terrorist proxies. The leaders called on Pakistan to take immediate action to prevent any territory under its control from being used for launching terrorist attacks. Additionally, they urged for the perpetrators of the 26/11 Mumbai and Pathankot attacks to be brought to justice.

4. Way forward

India and the U.S. often collaborate on various global and regional challenges, including United Nations initiatives, counterterrorism efforts, and regional stability.
 
Source: Indianexpress
 
 

SOVEREIGN GREEN BONDS

 
 
 
1. Context
 
 
After sovereign gold bonds, the Centre has drawn the curtains on another gold-related scheme — the Gold Monetisation Scheme (GMS) — amid a spike in gold prices. The Ministry of Finance in a release issued late on Tuesday said that it will discontinue medium- and long-term deposits under the Gold Monetisation Scheme from March 26
 
 
2. About Sovereign Green Bonds
 
  • Sovereign Green Bonds are a type of government debt instrument issued by a sovereign nation specifically to finance environmentally sustainable projects. These bonds are dedicated to funding initiatives that contribute to the transition to a low-carbon economy, mitigate climate change, and promote environmental sustainability.
  • The proceeds from Sovereign Green Bonds are earmarked for projects such as renewable energy infrastructure development, energy efficiency improvements, green transportation initiatives, sustainable agriculture, and other environmentally friendly endeavours.
  • The key characteristic of Sovereign Green Bonds is their alignment with internationally recognized green finance principles and standards.
  • Issuers typically establish a framework outlining the types of projects eligible for financing through these bonds, ensuring transparency and accountability in the allocation of funds.
  • Investors in Sovereign Green Bonds are attracted not only by the financial returns but also by the opportunity to support sustainable development and address pressing environmental challenges.
 

3. Facilitating the Green Transition

 

  • Enabling Foreign Institutional Investors (FIIs) to invest in India's green projects expands the financial resources available to support the country's ambitious goals for transitioning to a greener economy by 2070. These goals include ensuring that 50% of India's energy is sourced from non-fossil fuel-based sources and reducing the carbon intensity of the nation's economy by 45%, as pledged by Prime Minister Narendra Modi at COP26 in Glasgow in 2021.
  • The Reserve Bank of India (RBI) had issued Sovereign Green Bonds (SGrBs) worth ₹16,000 crore in two tranches in January and February of the previous year, with maturities in 2028 and 2033. While these bonds were oversubscribed on both occasions, the primary participants were domestic financial institutions and banks, limiting the avenues for government borrowing. Additionally, these green Government-Securities (G-Secs) were classified under the Statutory Liquidity Ratio (SLR), further constraining the financial institutions' lending capacity.
  • SGrBs typically offer lower interest rates compared to conventional G-Secs, leading to what is termed as a "greenium" - the amount foregone by a bank by investing in them. However, central banks and governments worldwide are encouraging financial institutions to embrace green investments to accelerate the transition to a sustainable future.
  • Climate finance experts believe that allowing FIIs to invest in green G-Secs would benefit India. They point out that FIIs are seeking to diversify their portfolio of green investments, especially in light of significant regulatory support in developed countries. Investing in India's green G-Secs presents an opportunity for them to do so.
  • FIIs may also be motivated to acquire green credentials, particularly when such investment opportunities are limited in their home markets. India's successful implementation of the Sovereign Green Bonds Framework in late 2022 has addressed concerns about greenwashing, further enhancing the attractiveness of these investments.
 

4. Understanding the Green Taxonomy Gap

 

  • In the 2022-23 Union Budget, Finance Minister Nirmala Sitharaman announced the government's decision to issue Sovereign Green Bonds (SGrBs) to expedite funding for various government projects, including initiatives such as offshore wind harnessing, grid-scale solar power production, and promoting the transition to battery-operated Electric Vehicles (EVs).
  • However, a critical gap emerged as the Reserve Bank of India (RBI) had not established a green taxonomy or a standardized method to evaluate the environmental or emissions credentials of investments. This gap raised concerns about potential greenwashing, wherein projects falsely claim environmentally friendly characteristics to secure funding.
  • To bridge this gap, the Finance Ministry unveiled India's inaugural SGrB Framework on November 9, 2022, outlining the types of projects eligible for funding through this category of Government-Securities (G-Secs).
  • These projects encompassed a range of initiatives, including investments in small-scale solar/wind/biomass/hydropower energy projects with integrated energy generation and storage, upgrades to public lighting systems (e.g., transitioning to LED lights), construction of low-carbon buildings, energy-efficiency retrofits for existing buildings, enhancements to public transportation infrastructure, subsidies to promote EV adoption, and the establishment of EV charging infrastructure.
  • Furthermore, the government sought validation from Norway-based validator Cicero to compare India's SGrB Framework with the green principles outlined by the International Capital Market Association (ICMA).
  • Cicero rated India's framework as a "green medium," highlighting its good governance practices.
  • The importance of identifying new green projects with credible audit trails and significant impact, particularly those areas that have received limited private capital, such as Distributed Renewable Energy and clean energy transition finance for Micro, Small, and Medium Enterprises (MSMEs).
  • Addressing this gap is crucial for effectively deploying the proceeds from SGrBs and advancing India's sustainable development goals.
 
5. The Way Forward
 
India can leverage Sovereign Green Bonds as a powerful tool to mobilize resources, foster international collaboration, and achieve its ambitious green goals. This integrated approach will pave the way for a sustainable and low-carbon future for the nation.
 
 
For Prelims: Sovereign Green Bonds, MSMEs, Climate Change, RBI, International Capital Market Association, Government-Securities
For Mains: 
1. Discuss the significance of Sovereign Green Bonds (SGrBs) in India's transition to a low-carbon economy. How can the issuance of SGrBs attract foreign investment and support the country's ambitious green goals?  (250 Words)
 
 
Previous Year Questions
 
1. Which of the following statements regarding the Green bonds is NOT true? (UPPSC RO/ARO 2020)
A. Green Bond investment is only for climate friendly projects
B. Green bonds were first introduced by European Investment Fund in 2007
C. Green Bonds are Financial Market Innovation
D. Green Bonds are fixed interest loan is short date maturities
 
2.  Indian Government Bond Yields are influenced by which of the following? (2021)
1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short-term interest rates

Select the correct answer using the code given below.

(a) 1 and 2 only           (b) 2 only               (c) 3 only           (d) 1, 2 and 3

3. With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/ are correct? (2016)

1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below:

(a) 1 only                 (b) 2 only                 (c) Both 1 and 2                 (d) Neither 1 nor 2

Answer: 1-D, 2-D, 3-C

 Source: The Hindu

 

NUCLEAR ENERGY

 
 
1. Context
Amid delays in plans for large-scale deployment of Fast Breeder Reactors (FBR) — the vital second stage of India’s three-stage atomic energy programme — one of the country’s top nuclear scientists has said that a solution could lie in the country’s policy makers looking at fuel cycle options instead of reactor options. 
 
2. What is Nuclear Energy?

Nuclear energy is a form of energy that is generated from the nucleus of an atom. It is released through two main processes: nuclear fission and nuclear fusion.

  1. Nuclear Fission: Nuclear fission is the process by which the nucleus of a heavy atom, such as uranium-235 or plutonium-239, is split into two or more smaller nuclei, along with the release of a significant amount of energy. This process can be controlled and sustained in a nuclear reactor. In a nuclear power plant, the heat produced by nuclear fission is used to generate steam, which, in turn, drives turbines connected to generators. These generators produce electricity, which is then distributed for various purposes.

  2. Nuclear Fusion: Nuclear fusion is the process of combining the nuclei of light atoms, such as isotopes of hydrogen (e.g., deuterium and tritium), to form a heavier nucleus, along with the release of energy. Fusion is the process that powers the sun and other stars. It has the potential to provide a nearly limitless and cleaner source of energy compared to fission. However, achieving controlled nuclear fusion on Earth has proven to be technologically challenging and has not yet been realized for widespread energy production.

3. Why do we need nuclear energy?

Nuclear energy serves several important purposes and is considered valuable for various reasons, which include:

  1. Low Greenhouse Gas Emissions: Nuclear power plants produce electricity with very low greenhouse gas emissions. This makes nuclear energy an attractive option for countries aiming to reduce their carbon footprint and combat climate change. It provides a source of electricity that is relatively clean and doesn't release significant amounts of carbon dioxide or other greenhouse gases into the atmosphere.

  2. Reliable Baseload Power: Nuclear energy provides a consistent and reliable source of electricity, known as baseload power. Unlike some renewable energy sources, such as wind and solar, which are intermittent and weather-dependent, nuclear power can operate continuously and meet the minimum electricity demand, ensuring grid stability.

  3. Energy Security: Nuclear energy can contribute to energy security by diversifying a nation's energy sources. This reduces the reliance on fossil fuels, which can be subject to price volatility and supply disruptions due to geopolitical conflicts.

  4. High Energy Density: Nuclear fission, the process used in nuclear power plants, has a high energy density, meaning that a small amount of nuclear fuel can produce a large amount of energy. This is particularly important in scenarios where space and resource constraints are factors.

  5. Long Fuel Supply: Uranium, the primary fuel used in nuclear reactors, is relatively abundant and can provide a stable and long-term source of energy. Additionally, there is ongoing research into advanced nuclear technologies, such as breeder reactors, which can extend the use of nuclear fuel resources.

  6. Reduced Air Pollution: In addition to lower greenhouse gas emissions, nuclear power plants do not produce the air pollutants associated with fossil fuel combustion, such as sulfur dioxide, nitrogen oxides, and particulate matter, which can have adverse health effects and contribute to air pollution.
  7. High Energy Independence: Nations with nuclear power capabilities can reduce their dependence on imported fossil fuels. This enhances energy independence and can have economic and geopolitical benefits.
4.Types of Water reactor

Water reactors are a common type of nuclear reactor that use water as a coolant and/or moderator. There are several types of water reactors, including pressurized water reactors (PWRs) and boiling water reactors (BWRs). Here's an overview of these two main types:

  1. Pressurized Water Reactors (PWRs):

    • Pressurized Water Reactors (PWRs) are the most prevalent type of commercial nuclear reactors in the world.
    • PWRs use ordinary water (light water) as both a coolant and a moderator. The water is kept at high pressure to prevent it from boiling.
    • The reactor core contains fuel rods, typically enriched uranium, and control rods to regulate the nuclear reaction.
    • The heat generated in the reactor core is transferred to a secondary loop of water (usually at lower pressure) through a heat exchanger. This secondary loop is used to produce steam to drive turbines and generate electricity.
    • PWRs are known for their safety features, as the high pressure in the primary coolant loop helps prevent the release of radioactive materials.

  2. Boiling Water Reactors (BWRs):

    • Boiling Water Reactors (BWRs) also use water as a coolant and moderator, but they allow the water in the reactor core to boil.
    • The fuel rods are located in the reactor core, and as the nuclear fission reactions occur, they generate heat, causing the water in direct contact with the fuel rods to boil and produce steam.
    • The steam from the reactor core is directly used to drive turbines and generate electricity without the need for a separate heat exchanger.
    • BWRs are simpler in design but have different safety features compared to PWRs.
 
 5. Pressurized Heavy Water Reactor vs Light Water Reactor vs Prototype Fast Breeder Reactor
  Pressurized Heavy Water Reactor (PHWR)  Light Water Reactor (LWR) Prototype Fast Breeder Reactor (FBR) 
Coolant and Moderator Uses heavy water (deuterium oxide, D2O) as both the coolant and moderator. Heavy water moderates the neutrons and helps sustain the nuclear chain reaction Uses ordinary light water (H2O) as both the coolant and moderator. The light water absorbs some neutrons, which affects the reactivity of the reactor Uses a liquid metal coolant (sodium or lead) and typically does not use a separate moderator. The fast neutrons produced in the reactor core drive the breeding of fissile material.
Fuel Typically uses natural uranium or slightly enriched uranium as fuel. It relies on heavy water to sustain the chain reaction Uses enriched uranium (typically U-235) or mixed oxide (MOX) fuel, which contains both uranium and plutonium. Light water reactors require enriched fuel to compensate for neutron absorption by the coolant Uses plutonium or enriched uranium as fuel. The reactor is designed to create more fissile material (usually plutonium-239) than it consumes
Neutron Spectrum Has a thermal neutron spectrum, where neutrons have lower energy and are moderated by heavy water Also has a thermal neutron spectrum, where neutrons are moderated by light water Operates with a fast neutron spectrum, meaning that neutrons have higher energy and are not significantly moderated. This allows for efficient breeding of fissile material
Efficiency Relatively low thermal efficiency due to the neutron-absorbing properties of heavy water Moderate thermal efficiency. Most commercial nuclear power plants worldwide are LWRs High potential for efficiency as it can produce more fissile material than it consumes, making it a potential source of sustainable nuclear fuel.
Development and Use Used in some countries like Canada and India for power generation The most common reactor type for commercial power generation worldwide Developed as a prototype for future breeder reactor technology. Few operational FBRs exist
 
 
6. Nuclear power plants in India?

The following are nuclear power plants in India:

  1. Tarapur Atomic Power Station (TAPS):

    • Located in Tarapur, Maharashtra.
    • Features two boiling water reactors (BWRs) and two pressurized heavy water reactors (PHWRs).

  2. Kakrapar Atomic Power Station (KAPS):

    • Located in Kakrapar, Gujarat.
    • Consists of two pressurized heavy water reactors (PHWRs).

  3. Rajasthan Atomic Power Station (RAPS):

    • Located in Rawatbhata, Rajasthan.
    • Comprises several units, including both pressurized heavy water reactors (PHWRs) and pressurized heavy water reactors with enriched uranium (PHWRs-PU).

  4. Madras Atomic Power Station (MAPS):

    • Located in Kalpakkam, Tamil Nadu.
    • Features two pressurized heavy water reactors (PHWRs) and a Prototype Fast Breeder Reactor (PFBR).

  5. Narora Atomic Power Station (NAPS):

    • Located in Narora, Uttar Pradesh.
    • Houses two pressurized heavy water reactors (PHWRs).

  6. Kaiga Generating Station (KGS):

    • Located in Kaiga, Karnataka.
    • Operates with pressurized heavy water reactors (PHWRs).

  7. Kudankulam Nuclear Power Plant:

    • Located in Kudankulam, Tamil Nadu.
    • Currently, it has two VVER-1000 pressurized water reactors (PWRs) in operation, and additional units were under construction.

  8. Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP):

    • Located in Fatehabad, Haryana.
    • Houses two pressurized heavy water reactors (PHWRs).
 
7. Way forward
The role of nuclear energy in a country's energy mix is often a subject of debate, and it depends on a combination of factors, including national energy policy, safety measures, public opinion, and the availability of alternative energy sources
 
 
For Prelims:  Current events of national and international importance and General Science
For Mains:  General Studies III: Science and Technology- developments and their applications and effects in everyday life
Source: indianexpress
 
 

PRODUCTION LINKED INCENTIVE (PLI) SCHEME

 
 
 
1. Context
 
The Union Cabinet on Friday cleared a Rs 22,919 crore incentive scheme for manufacturing electronic components, spread over a period of six years. The scheme aims to deepen India’s presence in global value chains, while increasing domestic value addition in the country.
 
 
2. About Production-Linked Incentive (PLI) Scheme

 

The Production-Linked Incentive (PLI) scheme is an initiative by the Indian government to boost domestic manufacturing in specific sectors. It incentivizes companies, both domestic and foreign, to set up or expand production facilities in India by offering financial rewards based on incremental sales achieved over a set period.

  • The government announces a PLI scheme for a particular sector with specific targets for production and sales.
  • Companies apply for the scheme and submit their production plans.
  • If selected, companies receive a percentage of their incremental sales (over a base year) as an incentive.
  • The incentive amount varies depending on the sector and the level of incremental sales achieved.
  • The scheme typically runs for several years, providing companies with long-term financial support.

 

3. Sectors with Current PLI Schemes

 

  • Mobile phone manufacturing and specified electronic components have been successful in attracting major players like Apple and Samsung to set up production in India.
  • Large-scale electronics manufacturing to boost domestic production of TVs, laptops, and other electronics products.
  • High-efficiency solar PV modules to make India a global leader in solar energy production.
  • Automobiles and auto components incentivize the production of electric vehicles, hydrogen fuel cell vehicles, and advanced auto components.
  • Man-made fibre (MMF) apparel and textiles to boost domestic production of high-quality MMF textiles.
  • White goods (air conditioners, refrigerators, etc.) to make India a global hub for white goods manufacturing.

 

4. Sectors Likely to See PLI Schemes in the Future

 

  • The pharmaceuticals and medical devices sector is crucial for national health security and has the potential for significant growth.
  • Green hydrogen and ammonia fuels are essential for achieving climate goals and could benefit from PLI support.
  • Advanced manufacturing technologies include robotics, 3D printing, and artificial intelligence, which are crucial for future industries.
  • The food processing sector has vast potential for value creation and job creation, and PLI could help address inefficiencies.

 

5. Benefits of the PLI Scheme

 

  • PLI attracts investment and encourages companies to manufacture in India, reducing dependence on imports.
  • New manufacturing units and increased production lead to job creation in various sectors.
  • PLI attracts global companies with advanced technology, leading to knowledge transfer and skill development in India.
  • Increased domestic production can lead to higher exports and strengthen the Indian economy.
 

6. Challenges in the PLI Scheme

 

  • Companies need significant upfront investment to set up new production facilities, which can be a deterrent for some.
  • The application and approval process for PLI schemes can be lengthy and complex, discouraging some companies.
  • The government needs to ensure the long-term sustainability of PLI schemes to avoid dependence on subsidies.

 

7. The Way Forward

 

The PLI scheme is a promising initiative with the potential to transform India's manufacturing landscape. By addressing the challenges and continuously improving its design, the government can further incentivize domestic production and boost India's economic growth.

 
For Prelims: Production Linked Incentive scheme,  industrial policy
For Mains: 
1. Discuss the role of the government in promoting domestic manufacturing. Should the focus be on incentives like the Production Linked Incentive scheme or on creating a conducive business environment? (250 Words)
 
 
 
Previous Year Questions
 

1. Consider, the following statements : (UPSC 2023)

Statement-I : India accounts for 3.2% of global export of goods.

Statement-II : Many local companies and some foreign companies operating in India have taken advantage of India's ‘Production-linked Incentive’ scheme.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

Answer: D

 

Source: The Indian Express

 

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