Various Aspect of Energy Conservation

ALL INDIA RADIO- 5th January 2018 here http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx

Oil and gas conservation week

Oil is important as energy source in life. Without energy, the modern lifestyle or even the ordinary lifestyle cannot survive. Energy is vital for existence of human being. Oil conservation week is celebrated every year, from 4th of January to the 10th of January, by the people worldwide in order to increase the awareness all across the world regarding to the importance of conservation of the petroleum products.

Oil is essential

Oil is a conventional energy resource and is finite. Oil stock of the planet is estimated to exist only for next 65 years. Government of India has taken a pledge to reduce 10% of oil imports and India being energy deficient country and oil deficient country, most of the oil requirements are imported. In such situation, conservation is very vital.

However, there are certain scientific operations and activities for which oil is essential. Renewable energy cannot replace them in those kind of scientific resources.

Today, petroleum products are being used by the people in many ways such as power plants, industries, fertilizer, commercial, domestic, transport sectors and so many. In first seven months of the current financial year 2017-18, the petrol and diesel consumption in India posted a growth of 9.2% and 5% respectively. Thus there is constant huge demand for the fuel consumption.

• The population is increasing
• The living standards are improving
• The average expectations are rising

In such a situation, there is aspiration for a comfortable lifestyle for which energy is vital input.

Prefer the new- Renewable energy

Renewable is preferred as it doesn’t emit carbon and other GHGs.

Ethanol blending or biofuel mixing are options to provide for automobile energy as these are future generation related energy resources.

Electric vehicle is going to be one of the biggest flagbearer of promoting renewable energy when fossil fuels will no longer be considered for transportation.

Contribution of common man to conserve energy

Energy conservation means energy generated. India is heavily dependent on import of crude oil and it is needed to bring down the crude oil import by 10% in next few years.

This may help India financially, help increase the domestic production, increase the share of renewable energy in the mix. In this effort, the common man has to also support the government initiatives. If people will not know how to conserve energy, no one will be able to conserve it.

• Vehicle standing idle should be shut down.
• Cooking processes should be fuel efficient.
• Heat from industrial process can be recycled and energy be conserved.
• Tree plantation to conserve the forests
• Children can be the ambassadors for existence of humanity.

Conclusion

Whatever is required for sustenance and meaningful objective is welcome but wasting of oil cannot be tolerated. Any form of energy cannot be wasted- financially it is loss making and create a question of its sustainability. To protect our own existence and interest, there is a need to protect the earth. The trees will inhale GHGs and conserve it as biomass in their body and in return they will give oxygen which will purify the air and help the people.

ndia should depend more on clean and renewable energy and seek to develop technology for the same. For eg.  In solar energy, the latest tender in Madhya Pradesh revealed that the cost per unit of solar energy is 2.43 rupees. It is less than half of the cost of thermal power unit. If the market will be competitive and the cost of renewable energy will go down then automatically, oil and gas deposits will be available for longer period and renewable energy will take over the conventional energy.

India in its INDCs at Paris agreement had committed that 40% of India’s energy mix will come from renewable and non-fossil fuel sources life hydro, nuclear, solar etc. Now is the time to bring forward the efforts to conserve energy on a warfront basis.

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Indo-US Nuclear deal and 2018

Indo-US Nuclear deal: an obsolete agreement

Context:

• Nearly a decade since the memoranda of understanding were inked, the India-U.S. civil nuclear agreement remains obsolete.
• There is no sign yet of any concrete contract between an American company and the Indian authorities to build a reactor.

Background:

• 2004: In January 2004, the United States and India agreed to expand cooperation in three specific areas: civilian nuclear activities, civilian space programs, and high-technology trade.
• 2005: The India-US nuclear deal was initiated in 2005.
• On 18 July, 2005, the then prime minister, Manmohan Singh visited Washington, and in a joint statement with George W Bush, India and the United States agreed to enter into a civil nuclear agreement.
• 2014: In September 2014, Prime Minister Narendra Modi visited Washington and the nuclear deal was once again discussed.
• Discussions were on supplier liability and tracking requirements, which would enable American companies to build nuclear power reactors in India.

What is the Indo-US Nuclear deal?

• Signed in 2005, The 123 Agreementsigned between the United States of America and the Republic of India is known as the S.–India Civil Nuclear Agreement or Indo-US nuclear deal.

Objective:

• As per the deal, India agreed to separate its civilian and military nuclear activity.
• India also agreedopen up the civilian part to inspection by the International Atomic Energy Agency (IAEA).
• In return, the US offered to resume full nuclear trade (selling of reactors, transfer of technology, Uranium sale)with India, ending its nuclear ostracism.

Why the Indo-US Nuclear deal holds significant importance to both India and the U.S.?

The Indo-US nuclear deal holds significant importance to both India and the U.S. The reasons are as follows:

Fissile material:

• The best way to get access to the requisite fissile material for India would be through uranium imports, which was not possible without ending India’s nuclear isolation by US and the Nuclear Suppliers Group (NSG).

Energy security concerns:

• This deal would partially ease India’s energy security concerns.

Growth under the Make in India scheme:

• Access to uninterrupted reliable power would aid in industrial growth under the Make In India scheme and would bring in foreign investment.

Access to better technologies:

• India also gets access to better technologies in the civilian power generation ambit.

Recognizes India as a de-facto nuclear power:

• Strategically, this deal recognizes India as a de-facto nuclear power and has taken Indo-US relations (in all matters including political, economic, military, etc) to the next level (the N deal has turned into a flag-point for Indo-US relations).

India as a possible counter to China:

• The US views India as a possible counter to China in the Asian region and this is good for India.

Nuclear ties will other NSG signatories:

• By getting the Nuclear Suppliers Group (NSG) waiver, India can now look to have nuclear ties will all the other NSG signatories.

Development of a strategic reserve of nuclear fuel:

• The Agreement provides for the development of a strategic reserve of nuclear fuel to guard against any disruption of supply over the lifetime of India’s reactors.

Bringing India closer to Non-Proliferation regime:

• The US wants to bring India closer to the Non-Proliferation regime by placing most of its nuclear capabilities under IAEA safeguards.

Boost India’s economic growth:

• Financially, the U.S. also expects that such a deal could spur India’s economic growth and bring in $150 billion in the next decade for nuclear power plants, of which the U.S. wants a share.

Allow Uranium sale to India:

• It also was under pressure from other nations to allow Uranium sale to India as India is one of the largest buyers of Uranium and everyone wants a share of this market.

Benefit from Indian technology:

• The US may also benefit from Indian technology, especially the Thorium based research, as India had to develop its capabilities in isolation, it may well have developed novel techniques.

Counter to China:

• India can be a useful counter to China in Asia and the US does not want to let go of this opportunity.

What are the reasons for which the Indo-US Nuclear deal is not able achieve its vision?

The reasons for the slow progress rate of Indo-US Nuclear deal are as follows:

No liability of U.S. companies:

• Westinghouse’s new buyers have already pared the business; they will not construct the nuclear power project in India, and will only supply reactors and components.
• In the terrible scenario of a Fukushima-type nuclear accident in India, this further dilutes the liability that U.S. companies would carry.

No support from Donald Trump’s presidency:

• Donald Trump’s presidency has taken a very sharp turn away from renewable energy, and even the promise of nuclear dollars has dimmed.
• India may not get the support that the Obama administration had promised both on financing renewable energy projects and in facilitating India-U.S. civil nuclear power deals.
• India also received a rude shock with the U.S. pulling out of the Paris climate change accord.
• Also, Mr. Trump’s singled out India as a “leading polluter”.

The dynamics of nuclear industry must be studied:

• Shifts in the world nuclear industry must be studiedclosely before heading back into negotiations with new companies.
• As the pressure to lower nuclear power tariffs increases, nuclear safety requirements have become more stringent, putting intense strain on all those in the business.

Conclusion:

• As a result of all these changes, the India-U.S. civil nuclear agreement for commercial projects is now obsolete.
• To bring back to track, the deal will require a different template that takes into account India and the new global realities.

Some related and basic terminology:

International Atomic Energy Agency (IAEA):

• The International Atomic Energy Agency(IAEA) is an international organization.
• The IAEA was established as an autonomous organisation on 29 July 1957.
• It seeks to promote the peaceful use of nuclear energy, and to inhibit its use for any military purpose, including nuclear weapons.

Nuclear Suppliers Group (NSG):

• Nuclear Suppliers Group(NSG) is a multilateral export control regime and a group of nuclear supplier countries.
• The NSG was founded in response to the Indian nuclear test in May 1974 and first met in November 1975.
• It seeks to prevent nuclear proliferation by controlling the export of materials, equipment and technology that can be used to manufacture nuclear weapons.

Fissile material:

• In nuclear engineering, fissile materialis material capable of sustaining a nuclear fission chain reaction.
• By definition, fissile material can sustain a chain reaction with neutrons of any energy.

Growth and fiscal management - RSTV

The 3.2% fiscal deficit target for FY18 has gone up due to CSO lowering the growth for FY18 in its first advance estimate. The blip was expected given the earlier aggressive forecast of 11.75% growth in normal GDP for FY18 which has now been revised down to 9.5%.

While the miss in fiscal deficit target is a marginal 4 basis points for now, it could be higher growth estimates for the current estimates are revised lower during CSO’s second revised estimates.

The CSO’s growth estimate implies real GDP growth to pick up from 6% in first half of FY18 to 7% in second half. While the transitory impact of demonetization and GST is expected to wane in the second half, leading to higher growth, a substantial jump is unlikely.

Growth needs more public spending but there is a need to look beyond than just spending more money.

• The key is boosting private investments– it is not the question of new projects not being taken up as 100 trillion rupees worth of projects under implementation. The companies are going slow as they don’t feel the need to have maximum capacity utilization. Though the fiscal deficit is being brought down, there is no increase in investments from private sector. The problem is the ability to induce the private sector to invest. It will invest once they see demand picking up on a sufficient scale and they can also increase their own capacity.
• Secondly, companies are occupying vast quantities of cash in mutual funds of around 800,000 crores. This is the reason why markets are doing well. But these companies don’t have the capacity to spend it. Here, an action can be taken that as the income which it earns is not part of stated goal as a company, it will be treated as a different tax rate. So if they are making money by investing in mutual funds and they are an engineering company, big profits being untaxed won’t do. These are things which can be done to boost growth and not hurt the fiscal management.
• The size of the budget per se matters and not only the fiscal deficit. In 1991, the union budget was 17% of GDP and today it is down to 12.55% of GDP. So how much the government spends of total output of the economy also has impact on economic growth and momentum.
• PPP projects must be revived so that investments can flow in. The population is now increasingly migrating towards urban areas. The tier-I cities are filled to brim and now is the turn to develop the tier-2 cities, industrial townships and constructions around industrial corridors like DMIC. Increased investments in projects will give rise to increased spending.
• Today the private savings, the non-government sector savings are not being fully utilized by government for investments. So there is plenty of scope for government to tap the savings and use for capital formation.
• The need of the hour is to increase the spending in agriculture infrastructure to attract the private investments in the supply chain. This will create employment opportunities in rural areas, thereby decreasing growing burden on urban infrastructure.
• Improve the governance in the public utility to increase the non-tax revenue with the improvement in the quality of expenditure and quality of public utilities.
• Revive the debt and bond market and increase large infrastructure project funds through bond markets.

Measure for short term and long term

Short term

• Increase the demand scenario, with the revival of rural demand.
• More focus on MSMEs development
• Capacity utilization problem will also be solved if there is increase in demand
• Despite rise in crude oil prices or increasing US federal interest rates, India has remained stable.

Long term

• Focus on infrastructure development with public spending, particular agriculture sector to solve the supply side problems because inflation is again increasing.
• Focus on export scenario. Global market is reviving but not able to compete due to domestic issues. Focus on exporters to increase competitiveness in international market
• Focus on stalled projects which can revive the demand for raw materials and basic industries.

Conclusion

There shouldn’t be a single goal oriented fiscal policy and single goal oriented monetary policy.

The interest rate, exchange rate and fiscal deficit have to work together keeping in mind internal balance and external balance. It is very important to know whether the deficit is to create asset or run revenue expenditure.

The FRBM is expenditure switching mechanism from revenue deficit to capital expenditure. FRBM has three targets

• Fiscal deficit
• Revenue deficit
• Public debt target

It is more crucial to achieve revenue debt target rather than fiscal deficit. If the government is forced to achieve 3.25 % fiscal deficit, there will be impact on outstanding liability. The 3.2% fiscal deficit was assumed when there were no shocks in the economy. Now there is effect of demonetization, GST which has contributed to ring down the fiscal deficit. Hence, the government should avoid sticking to FRBM target very strictly.

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M.M. Punchhi Commission Recommendations - centre State relation

M.M. Punchhi Commission Recommendations

In April 2007, a three member commission headed by the former chief justice of India M.M. Punchhi was set up by the UPA Government to take a fresh look at relative roles and responsibilities of various levels of government and their inter-relations. This commission had submitted its report in 2010 to then Home Minister P. Chidambaram.

Main Terms of Reference

• To examine what could be the role, responsibility and jurisdiction of the Centre during major and prolonged outbreaks of communal violence, caste violence or any other social conflicts.
• To review other aspects of Centre-States relations including taxes and linking of rivers.
• To examine whether there is a need to set up a Central law enforcement agency to take up suo motuinvestigation of crimes having inter-State or international ramifications with serious implications on national security.
• To study the feasibility of supporting legislation under Article 355 for the purpose of suo motu deployment of Central forces in the States if and when the situation demanded.
• To study the role, responsibility and jurisdiction of the Centre vis-à-vis States in promoting effective devolution of powers and autonomy to Panchayati Raj institutions and local bodies.
• To promote the concept and concept of independent planning and budgeting at the district level and linking Central assistance of various kinds with the performance of the States.
• To study the need and relevance of separate taxes for freeing inter-state trade to establish unified domestic market.
• To examine the role of Governors, emergency provisions, financial relations, economic and social planning, Panchayati Raj institutions and sharing of resources, including inter-State river waters.

In summary, the key study point of this commission was to examine possibility of giving sweeping powers to the union  government  to deploy  central forces in the states and the investigation  of crimes affecting  national  security.

Major Recommendations

The Punchhi commission provided 312 recommendations in a seven volume report comprising:

1. Evolution of Centre-state relations
2. Constitutional scheme of relations, covering recommendations regarding Article 19, Article 355 and 356 and Article 263.
3. Economic and financial relations and recommendations include upgrading of the planning model to remove regional imbalances.
4. Recommendations regarding 73rd and 74th amendments and the Sixth Schedule.
5. Internal security, covering issues like terror, Naxalism, insurgency and communal violence.
6. Environment issues and resource-sharing, particularly of rivers and minerals
7. Social development and good governance.

This commission dealt at length with Emergency provisions under Article 355 and Article 356 and proposed safeguards to prevent their abuse to dismiss state governments. The commission has also studied set-ups like the National Investigation Agency, and recommended procedures to ensure smooth co-operation of the states in terror investigations entrusted to NIA. The committee report was in 7 Volumes as follows:

Here are some major and notable recommendations of the MM Puncchi Commission Report.

Concurrent List subjects

There should be a mechanism whereby the centre consults states before introducing a bill on concurrent list items. This consultation mechanism should be through inter-state council.

Centre should occupy only that much of subjects in concurrent list or any other overlapping jurisdiction which is absolutely needed to achieve uniformity of policy in national interest.

On President’s Pocket Veto

Once a bill is passed in legislative assembly and then reserved by the governor for president’s consideration, President applies pocket veto in several cases. No communication is given to the state which is baffling for states. Thus, there should be mechanism so that president communicates his decision in reasonable time {6 months).

Treaty Making Power of Union

There is a need of some kind of legislation to regulate the treaty making power of union executive with respect to treaties which have anything to do with the matters listed in state list. There should be greater involvement of states in such treaties.

Appointment of Chief Ministers

There should be clear guidelines for the appointment of chief ministers, so that there is sort of regulation on discretionary power of Governor. A pre-poll alliance should be treated as one political party, because that lays down the order of precedence that ought to be followed by the governor in case of a hung house as follows:

• The group with the largest pre-poll alliance commanding the largest number;
• The single largest party with support of others;
• The post-electoral coalition with all parties joining the government
• The post electoral alliance with some parties joining the government and remaining including Independents supporting from outside.

Appointment of Governor

The Punchhi commission recommended that the person who is slated to be a Governor should not have participated in active politics at even local level for at least a couple of years before his appointment. We note that Sarkaria Commission had also recommended that governor be an eminent person and not belong to the state where he is to be posted. State chief minister should have a say in the appointment of governor. Appointment of governor should be entrusted to a committee comprising the Prime Minister, Home Minister, Speaker of the Lok Sabha and chief minister of the concerned state. The Vice- President can also be involved in the process.

Removal of Governor

For office of Governor, the doctrine of pleasure should end and should be deleted from the constitution. Governor should not be removed at whim of central government. Instead, a resolution by state legislature should be there to remove Governor. The report supported the right of the Governor to give sanction for the prosecution of ministers against the advice of the state government.  There should be provisions for impeachment of the Governor by the state legislature along the same lines as that of President by President. (Goes against doctrine of pleasure)

Governor as Chancellor of Universities

The convention of making the Governors as chancellors of universities should be done away with.

Article 355 and 356

Article 355 and 356 should be amended. Via these amendments, the Centre should be enabled to bring specific troubled areas under its rule for a limited period. This means that the commission recommended for “localising emergency provisions” under Articles 355 and 356, contending that localised areas — either a district or parts of a district — be brought under Governor’s rule instead of the whole state. The duration of such an emergency provision should however not be of duration of more than three months.

National Integration Council

For internal security, commission recommended creation of an overriding structure on the lines of the US Home­land Security department, giving more teeth to the National Integration Council. This council should meet at least once a year. In case of any communal incident, a delegation of five members of the Council, who would be eminent persons, should visit the affected area within two days. However, it rejected constitutional status to NIC.

Communal Violence Bill

The commission recommended that the Communal Violence Bill should be amended to allow deployment of Central forces without the state’s consent for a short period. The state consent should not become a hurdle in deployment of central forces in a communal conflagration. However, such deployment should only be for a week and post-facto consent should be taken from the state.

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