Weekly Current Affairs (1st to 7th September 2023) Part - 1 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India’s Interests in Africa's RE Potential

Context: Recently, the International Solar Alliance (ISA) held its 5th regional meeting in Kigali, Rwanda. Nine solar power demonstration projects across three countries: 4 in Uganda, 2 in Comoros and 3 in Mali, were virtually inaugurated in the meeting.

• During the meeting, a report titled "Roadmap of Solar Energy for Universal Energy Access", was unveiled.

What are the Key Highlights of the Report?

• The report outlines a strategic approach to effectively and economically tackle the global energy access challenge using solar-powered solutions. It encompasses case studies, real-world examples, and innovative policies aimed at bringing about a transformative shift in the implementation of solar mini-grids.
• The report's conclusions hold significant relevance for Africa, especially the Sub-Saharan region and rural areas. It identifies a range of electrification strategies centred on solar energy, particularly focusing on solar mini-grids and Decentralised Renewable Energy solutions.
  • These approaches offer effective solutions to address diverse energy access challenges.
  • Promoting these solutions could encourage the emergence of local innovations and business models, thereby advancing the adoption of solar energy generation within the country.

Note:

• A decentralised energy system is characterised by locating energy production facilities closer to the site of energy consumption.
  • This allows for more optimal use of renewable energy (RE) as well as combined heat and power, reduces fossil fuel use and increases eco-efficiency.

What is the Significance of Solar Power Projects?

• Creating Solar Project Models that can be Replicated in Member Countries:
  • The main objective of these projects is to enhance the well-being of underserved communities. The projects are not just limited to providing energy, but they also serve as drivers of advancement and symbols of global cooperation.
• Promoting Solar Energy to Enable Sustainable Energy Transition:
  • ISA is partnering with the G20 Presidency of India and promoting solar energy as a means to achieve universal energy access and enable a sustainable energy transition.
• Tackling the Lack of Affordable Credit and Technical Expertise:
  • The central idea behind these projects is to highlight the substantial potential of solar technology applications in improving the quality of life for individuals across the member nations.
  • ISA will address the critical lack of affordable funding and technical expertise in its member countries, especially focusing on LDCs and Small Island Developing States (SIDS).

What is Africa's Potential in Global RE Transition?

• Africa holds the potential to emerge as a prominent force in renewable energy generation and innovation on a global scale.
• Despite facing various obstacles, the continent is endowed with a rich array of renewable energy sources, including substantial solar capacity, wind resources, geothermal areas, hydro energy, and green hydrogen prospects.
• Furthermore, Africa possesses over 40% of the world's crucial mineral reserves crucial for renewable and low-carbon technologies.
• Leveraging these resources offers the opportunity for Africa to not only fulfil its energy requirements but also to establish itself as a significant player in RE production and advancements worldwide.
  • However, there is a need for collaboration among governments, private sector entities, and international organisations to fully unlock the potential of solar energy across the continent.

What is the Importance of Africa for India?

• Potential Market: Africa is home to over half a dozen of the fastest growing countries of this decade such as Rwanda, Senegal, Tanzania, etc. making it one of the growth poles of the world.
  • The African continent has a population of over one billion with a combined GDP of 2.5 trillion dollars making it a huge potential market with a wide range of opportunities for economic growth, trade expansion, and strategic partnerships, benefiting both regions in various ways.
• Rich in Resource: Africa is a resource-rich nation dominated by commodities like crude oil, gas, leather, gold and other metals, all of which India lacks in sufficient quantities.
  • Namibia and Niger are among the top ten global producers of uranium.
  • South Africa is the world's largest producer of platinum and chromium.
  • India is seeking diversification of its oil supplies away from the Middle East and Africa can play an important role in India’s energy matrix.
• Indian Ocean Geopolitics: Eastern African nations' geographical location, natural resources, security concerns, and regional engagements collectively position them as key actors in the global geopolitics of the Indian Ocean Region (IOR), with significant implications for international trade, security, and diplomacy.
  • Eastern African nations, such as Somalia, Kenya, Tanzania, and Mozambique, are strategically positioned along the eastern coast of Africa, which borders the Indian Ocean.
  • This location gives them access to important sea lanes and trade routes in the IOR, making them critical players in maritime security and commerce.
• Trade MoUs: India has signed MoUs with all African nations on the Indian Ocean Rim (IOR) is evidence of increased defence engagement with African countries.
  • Under the Pan African e-Network Project (initiated in 2009), India has set up a fibre-optic network to provide satellite connectivity, tele-medicine and tele-education to countries of Africa.
  • The subsequent phase, e-VidyaBharti and e-ArogyaBharti (e-VBAB), introduced in 2019, focused on providing free tele-education to African students and continuing medical education for healthcare professionals.

Way Forward

India Assisting Africa in Harnessing Solar/RE Potential:

• Technical and Financial Support: India can offer technical expertise and financial assistance to African nations in developing their RE infrastructure.
• Capacity Building and Collaboration: India can facilitate capacity-building programs and research partnerships through collaborative projects that address specific energy challenges in African countries and foster technology transfer.

India Taking Advantage of Africa's RE Potential:

• Investment Opportunities: India can explore investment opportunities in African RE projects while contributing to local economic development.
• Exporting Renewable Technology: Indian companies can export RE technologies and equipment to African markets. Leveraging India's manufacturing capabilities, this can be a win-win for both regions.
• RE Partnerships: India can work towards regional energy partnerships with African countries, fostering cross-border energy trade.

This can involve the development of energy corridors and transmission infrastructure to efficiently transfer RE across borders, ensuring a stable and sustainable energy supply.

Electrified Flex Fuel Vehicle

Context: Recently, the Prototype of the world’s 1st Bharat Stage-6 (BS6) Stage-II, Electrified Flex fuel vehicle, developed by Toyota Kirloskar Motor was unveiled.

• This vehicle is capable of running on up to 85% ethanol blended petrol and features an electric powertrain.
• The Ministry of Petroleum & Natural Gas has also highlighted flex-fuel vehicles' potential to substitute petrol with higher ethanol blends beyond 20%.

Note:

• Flex-fuel vehicles (FFV): They have engines that can run on flexible fuel - a combination of Petrol/Diesel/Electric and ethanol, which can include up to 100% ethanol.

What are the Electrified Flex Fuel Vehicles?

About:

• Electrified Flex Fuel Vehicle integrates both a Flex Fuel engine and an electric powertrain, offering the dual benefit of higher ethanol use and improved fuel efficiency.
• Flex Fuel Strong Hybrid Electric Vehicles (FFV-SHEV): When FFV is integrated along with strong hybrid electric technology, it is referred as FFV-SHEVs.
• Strong hybrid is another term for full hybrid vehicles, which have the capability to run solely on either electric or petrol modes.
• In contrast, mild hybrids cannot run purely on one of these modes and use the secondary mode merely as a supplement to the main mode of propulsion.

Significance:

• The integration of an electric powertrain reduces reliance on conventional fuels, contributing towards sustainable transportation and India's 'Aatmnirbhar Bharat' initiative as production of ethanol increases.
• Similar to SHEVs, this vehicle can achieve significantly higher fuel efficiency, optimizing the use of ethanol and electricity.
• By promoting the use of FFVs, India can capitalize on its abundant ethanol potential, reducing petrol consumption.
• The vehicle represents a significant stride towards decarbonization and greener mobility, aligning with global efforts to combat climate change.

What are BS6 (Stage II) Norms?

• BS6 Norms: The Bharat Stage (BS) norms are emission standards instituted by the Government of India to regulate the output of air pollutants from motor vehicles.
  • The BS regulations are based on the European emission standards and the Central Pollution Control Board implements these standards.
  • Presently, every newly sold and registered vehicle in India is required to adhere to the BS-VI version of emission regulations.
• BS6 Stage II: BS6(Stage II) has even stricter emission limits compared to the initial BS6 norms.
  • BS6 (Stage II) incorporates Real Driving Emissions (RDE) and Corporate Average Fuel Economy (CAFE 2) and On-Board Diagnostics.
  • The new RDE test figures will provide a more realistic estimation of the amount of emissions likely to be produced by vehicles in real traffic conditions with frequent changes in speed, acceleration, and deceleration.
  • Onboard diagnostic (OBD) systems monitor and report the status and performance of various vehicle subsystems and sensors.

Ethanol Blending:

About:

• Ethanol, a key biofuel produced through fermentation of sugars by yeasts or petrochemical methods.
• The Ethanol Blending Programme (EBP) in India aims to decrease oil imports, curb emissions, achieve energy self-sufficiency, and doubling farmers' income, transitioning them to 'urjadata' while remaining 'annadata', and contributing to environmental improvement.
• The Government of India has advanced the target for 20% ethanol blending in petrol (also called E20) to 2025 from 2030.
• India has been increasing its ethanol blending in petrol from 1.53% in 2013-14 to 11.8% in August, 2023.

Other Initiatives to Promote Ethanol Blending in India:

• National Policy on Biofuels 2018
• E100 Pilot project
• Pradhan Mantri JI-VAN Yojana 2019
• Repurpose Used Cooking Oil (RUCO)

India’s Fiscal Deficit

Context: Recently, the Centre's fiscal deficit in the first four months of 2023-24 touched 33.9% of the full-year target.

• In the Union Budget, the government projected to bring down the fiscal deficit to 5.9% of the gross domestic product (GDP) in the current FY.
• The deficit was 6.4% of the GDP in 2022-23 against the earlier estimate of 6.71%.

What is Fiscal Deficit?

About:

• Fiscal deficit is the difference between the government's total expenditure and its total revenue (excluding borrowings).
• It is an indicator of the extent to which the government must borrow in order to finance its operations and is expressed as a percentage of the country's GDP.

High and Low FD:

• A high fiscal deficit can lead to inflation, devaluation of the currency and an increase in the debt burden.
• While a lower fiscal deficit is seen as a positive sign of fiscal discipline and a healthy economy.

Positive Aspects of Fiscal Deficit:

• Increased Government Spending: Fiscal deficit enables the government to increase spending on public services, infrastructure, and other important areas that can stimulate economic growth.
• Finances Public Investments: The government can finance long-term investments, such as infrastructure projects, through fiscal deficit.
• Job Creation: Increased government spending can lead to job creation, which can help reduce unemployment and increase the standard of living.

Negative Aspects of Fiscal Deficit:

• Increased Debt Burden: A persistent high fiscal deficit leads to an increase in government debt, which puts pressure on future generations to repay the debt.
• Inflationary Pressure: Large fiscal deficits can lead to an increase in money supply and higher inflation, which reduces the purchasing power of the general public.
• Crowding out of Private Investment: The government may have to borrow heavily to finance the fiscal deficit, which can lead to a rise in interest rates, and make it difficult for the private sector to access credit, thus crowding out private investment.
• Balance of Payments Problems: If a country is running large fiscal deficits, it may have to borrow from foreign sources, which can lead to a decrease in foreign exchange reserves and put pressure on the balance of payments.

Red Sand Boa

Context: Recently, a report by the Wildlife Conservation Society (WCS)-India titled 'Illegal Trade of Red Sand Boa in India 2016-2021' has exposed the trade of red sand boa.

• This alarming revelation underscores the pressing concern about the illegal trade of Red Sand Boas and the urgency for conservation efforts.

What are the Key Highlights of the Report?

• The report documents a total of 172 incidents of seizures involving red sand boas between 2016 and 2021, revealing the alarming extent of illegal trade.
• Illegal trade spans 18 Indian states, 1 Union Territory, and 87 districts; Maharashtra and UP record the highest incidents.
• Maharashtra dominates with 59 cases, including urban areas like Pune, Thane, Mumbai Suburban.
• Uttar Pradesh closely follows 33 incidents, often near Nepal's border in districts like Bahraich, and Lakhimpur-Kheri.
• Social media, especially YouTube, aids illegal trade, with 200 sales-promoting videos in 2021.
• The report's findings underscore the urgent need for conservation efforts to prevent the further decline of the red sand boa population and protect India's biodiversity.

What are the Key Facts About Red Sand Boa?

About:

• The Red Sand Boa (Eryx johnii), commonly called the Indian Sand Boa, is a non-venomous species.
• It is a primarily reddish-brown and thick-set snake that grows to an average length of 75 cm.
• Unlike most snakes, the tail is almost as thick as the body and gives the reptile the appearance of being "double-headed".
• The Red Sand Boa is the largest of the sand boa in the world. Nocturnal and spends the majority of its time under the ground.

Distribution:

• Found in the whole of India excluding North-east states and North-Bengal; also not found in Indian islands.

Status:

• IUCN Red List: Near Threatened
• Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES): Appendix II.
• Indian Wildlife (Protection) Act of 1972: Schedule IV.

Threats to Red Sand Boa:

• Expansion of human settlements and activities.
• Demand upsurge in pet trade, as well as for use in black magic.
• Poached for perceived medicinal benefits.

Wildlife Conservation Society (WCS)-India:

• WCS-India is a Section 25 (association having objects to promote commerce, art, science, religion, charity or any other useful purpose and not having any profit motive) non-profit organization in India, demonstrates a strong commitment to conservation.
• It operates in full compliance with Indian regulations, emphasizing its dedication to preserving the country's natural environment and its rich biodiversity.

Nine Years of Pradhan Mantri Jan Dhan Yojana

Context: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has successfully completed nine years of implementation.

• It was launched on August 28, 2014 and stands as one of the largest financial inclusion initiatives globally, led by the Ministry of Finance to provide affordable financial services to vulnerable and economically disadvantaged sections.

What is Pradhan Mantri Jan Dhan Yojana?

About:

• PMJDY creates a platform for universal access to banking facilities with at least one basic banking account for every household, financial literacy, and access to credit, insurance, and pension facilities.

Features of PMJDY:

• It aims to expand banking services through branches and Banking Correspondents (BCs).
• It covers both urban and rural areas and those who open an account would get indigenous Debit Card (RuPay card).
• There is no requirement to maintain any minimum balance in PMJDY accounts.
• Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.
• It provides an overdraft facility of Rs. 10,000 to every eligible adult.
• PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY).

Note: An overdraft allows individuals to withdraw money from their bank account even if they have an insufficient balance. Overdrafts are primarily intended to be used for covering immediate, short-term expenses.

Significance:

• Promoting Equitable Growth: PMJDY fosters Financial Inclusion (FI), leading to inclusive growth through the provision of affordable financial services to low-income and disadvantaged segments of the population.
  • The Jan Dhan–Aadhaar–Mobile (JAM) architecture has enabled seamless transfer of government benefits to common citizens' accounts.
• Bringing Savings to Formal Systems: PMJDY has brought the savings of the poor into the formal financial system, freeing them from usurious money lenders.
• Empowering Women: Approximately 55.5% of Jan Dhan accounts belong to women, promoting financial empowerment.
  • Overdraft is available in only one account per household, preferably lady of the household.

Achievements:

• More than 50 crore people have been included in the formal banking system through Jan Dhan accounts.
• Approximately 67% of these accounts have been opened in rural and semi-urban areas.
• Around 34 crore RuPay cards have been issued to these accounts, providing ₹2 lakh accident insurance cover.
• Guinness World Records has acknowledged the PMJDY's success, certifying that the "Most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130 and was achieved by the Department of Financial Services, Government of India."

What are the Other Government Initiatives to Promote Financial Inclusion in India?

• National Centre for Financial Education (NCFE)
• Unified Payments Interface
• Micro Units Development and Refinance Agency (MUDRA)
• Small Finance Banks (SFBs) and Payment Banks
• Jan Dhan Darshak App