Daily Prelims Notes 1 April 2022

Daily Prelims Notes

1 April 2022

Table Of Contents

1. India’s First Steel Slag Road
2. Genome Editing Technology
3. ‘Post-2020 Global Biodiversity Framework’ for CoP15
4. Blockchain Technology
5. Rights To Nature
6. TN quota law is ultra vires Constitution
7. Tripura and Meghalaya pact
8. Public Borrowing
9. External debt
10. What determines exchange value of currency – rubble case study
11. EV fires
12. Exide Industries to invest ₹6,000 cr to set up giga factory in Karnataka

1. India’s First Steel Slag Road

Subject: Environment

Context- Surat has become the first city in the country to get a processed steel slag (industrial waste) road built as part of a joint-venture project by the Council of Scientific and Industrial Research (CSIR), Central Road Research Institute (CRRI), Union Ministry of Steel, government think-tank NITI Ayog, and ArcelorMittal-Nippon Steel (AM/NS), at Hazira.

Concept-

What is the project all about?

• The six-lane public road is a kilometre-long stretch in Hazira industries, which also houses the AM/NS plant.
• The construction began around a year ago by converting mounds of steel waste into steel slag aggregate.
• The road is now being used by heavy-duty vehicles of multinationals located in the industrial estate on the outskirts of Surat.

Benefits of using steel slag:

• The construction cost of the processed steel slag road is 30 per cent cheaper than roads built from natural aggregates.
• The thickness of the road is also 30 per cent lesser than normal ones, while the durability is much longer due to the utilisation of steel slag.
• This project falls under the initiative of the Waste to Wealth and Clean India
• The slag has better material properties in place of the natural aggregate commonly used in road constructions
• According to the Indian Road Congress guidelines for construction of a heavy traffic road that is capable of taking the load of 1,000 to 1,200 trucks per day
• The CRRI will now prepare guidelines and specifications for the utilisation of steel slag in road construction.
• This process is also expected to reduce GHG emissions and carbon footprint in road construction activity and is in line with India’s commitment to the United Nations Sustainable Development Goal No. 9 for building resilient infrastructure through inclusive and sustainable industrialization and green technologies.
• However, The lifespan of a cement or concrete road is over 30 years while that of bitumen and steel slag road is around 15 years.

Why has it been done at Hazira?

• The Hazira road in Surat was chosen because of the proximity to the AM/NS steel plant and the availability of heavy traffic on the road for study purposes.
• AM/NS produces around 2 million tons of steel slag annually which can be utilised for the construction of roads.

2. Genome Editing Technology

Subject: Science & Tech

Context- The central government paved the way for easy introduction of genome edited crops. The government has clearly distinguished such crops from genetically modified crops and has prescribed relatively easier norms for their introduction.

Concept-

What has the government decided?

• On Wednesday, the Environment Ministry put a lid to the topic by issuing fresh guidelines. The notification has exempted SDN 1 and SDN 2 genome from the same and instead it would rely on reports of Institutional Biosafety Committee to exclude exogenous genetic material.
• The institutional biosafety committees are expert committees constituted under the Act to deal with research and release of GM material.
• Such committees would now be entrusted to certify that the genome edited crop is devoid of any foreign DNA.

What is genome editing?

• A decade ago, scientists in Germany and the US discovered a technique which allowed them to ‘cut’ DNA strands and edit genes.
• For agriculture scientists this process allowed them to bring about desired changes in the genome by using site directed nuclease (SDN) or sequence specific nuclease (SSN).
  • Nuclease is an enzyme which cleaves through nucleic acid — the building block of genetic material.
• Advanced research has allowed scientists to develop the highly effective clustered regularly interspaced palindromic repeat (CRISPR) -associated proteins based systems.
  • This system allows for targeted intervention at the genome sequence.
• Using this tool, agricultural scientists can now edit genome to insert specific traits in the gene sequence.
• Depending on the nature of the edit that is carried out, the process is divided into three categories — SDN 1, SDN 2 and SDN 3.
  • SDN1 introduces changes in the host genome’s DNA through small insertions/deletions without introduction of foreign genetic material.
  • In the case of SDN 2, the edit involves using a small DNA template to generate specific changes.
    • Both these processes do not involve alien genetic material and the end result is indistinguishable from conventionally bred crop varieties.
  • On the other hand, SDN3 process involves larger DNA elements or full length genes of foreign origin which makes it similar to Genetically modified organisms (GMO) development.

How is gene editing different from GMO development?

• In the case of agriculture, both the techniques aim to generate variants which are better yielding and more resistant to biotic and abiotic stress.
• Before the advent of genetic engineering, such variety improvement was done through selective breeding which involved carefully crossing plants with specific traits to produce the desired trait in the offspring.

What are the regulatory issues which have prevented wider adoption of this technique?

• In India, the introduction of GM crops is a laborious process which involves multiple levels of checks.
• The Genetic Engineering Appraisal Committee (GEAC), a high power committee under the Ministry of Environment, Forest and Climate Change, is the regulator for introduction of any GM material and in case of agriculture multiple field trials, data about biosafety and other information is necessary for getting the nod before commercial release of any GM crop.
• Till date the only crop which has crossed the regulatory red tape is Bt cotton.

3. ‘Post-2020 Global Biodiversity Framework’ for CoP15

Subject: Environment

Context- The 15-United Nations Geneva Biodiversity Meetings concluded March 29, 2022, with negotiators from around 164 countries working out the post-2020 Global Biodiversity Framework before CoP15, which is scheduled to be held in China in August.

Concept-

• The 15th meeting of the Conference of the Parties (CoP15) to the UN Convention on Biological Diversity, to be held in Kunming, China in August 2022, was supposed to take place in 2020 but was postponed due to the global pandemic.
  • Before the UN Convention on Biodiversity, Parties have agreed to another round of negotiations in Nairobi, Kenya from June 21-29, 2022.
• It has also urged Parties and invited other governments to take action to
  • conserve and sustainably use marine and coastal biodiversity.
  • address threats and pressures on marine biodiversity and ecosystems like marine plastic litter and fishing.
  • to develop a strategic review and analysis of the programme of work on island biodiversity and to review progress towards global commitments and goals for island biodiversity.
• The report also welcomed the work of the executive secretary on the compilation and synthesis of information on impacts of anthropogenic underwater noise and marine debris on marine and coastal biodiversity and means to minimise and mitigate these impacts.
• It welcomed the efforts to implement the ‘Priority Actions to Achieve Aichi Biodiversity Target 10 for Coral Reefs and Closely Associated Ecosystems’ and ‘Voluntary Specific Workplan on Biodiversity in Cold-water Areas’ within the scope of the convention.

Post-2020 Global Biodiversity Framework:

• The overarching goals of the draft post 2020 framework — to protect the elements of biodiversity at all levels (genetic, species and ecosystem), sustainability and human well-being in the use of biodiversity and the fair and equitable sharing of benefits from the use of biodiversity — were reaffirmed during the Geneva sessions.

About UNCBD:

• The Convention on Biological Diversity (CBD), a legally binding treaty to conserve biodiversity has been in force since 1993.
• It has 3 main objectives:
  • The conservation of biological diversity.
  • The sustainable use of the components of biological diversity.
  • The fair and equitable sharing of the benefits arising out of the utilization of genetic resources.
• Nearly all countries have ratified it (notably, the US has signed but not ratified).
• The CBD Secretariat is based in Montreal, Canada and it operates under the United Nations Environment Programme.
• The Parties (Countries) under Convention of Biodiversity (CBD), meet at regular intervals and these meetings are called Conference of Parties (COP).
• In 2000, a supplementary agreement to the Convention known as theCartagena Protocol on Biosafety was adopted.
  • It came into force on 11th September 2003.
  • The Protocol seeks to protect biological diversity from the potential risks posed by living modified organisms resulting from modern biotechnology.
• The Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (ABS) was adopted in 2010 in Nagoya, Japan at COP10.
  • It entered into force on 12th October 2014.
  • It not only applies to genetic resources that are covered by the CBD, and to the benefits arising from their utilization but also covers traditional knowledge (TK) associated with genetic resources that are covered by the CBD and the benefits arising from its utilization.
• Along with the Nagoya Protocol on Genetic Resources, the COP-10 also adopted a ten-year framework for action by all countries to save biodiversity.
• Officially known as “Strategic Plan for Biodiversity 2011-2020”, it provided a set of 20 ambitious yet achievable targets collectively known as the Aichi Targets for biodiversity.
• India enacted Biological Diversity Act in 2002 for giving effect to the provisions of the CBD.

4. Blockchain Technology

Subject: Science & Tech

Context- Gadchiroli uses blockchain caste certificates to deter forgery.

Concept-

• Bengaluru-based LegitDoc is powering a Maharashtra government initiative to issue 65,000 blockchain caste certificates in Gadchiroli district, which has about 70 per cent tribal population.
• The caste certificates are produced on blockchain to deter any forgery.
• LegitDoc will cryptographically commit selective details of every caste certificate from the ‘MahaOnline’ portal on the polygon POS blockchain and generate a unique QR code.
• These QR codes will consist of blockchain-proofs, which can be embedded on the certificate.
• Anyone who wants to cross-check can go to the verification portal on the district website and scan the QR code. The verification process takes less than ten seconds.

About Blockchain:

• Blockchain derives its name from the digital databases or ledgers where information is stored as “blocks’’ that are coupled together forming “chains”.
• It offers a singular combination of permanent and tamper-evident record keeping, real-time transaction transparency and auditability.
• A block is the “current” part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database.
• Each time a block gets completed, a new block is generated. Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block.
• An exact copy of the blockchain is available to each of the multiple computers or users who are joined together in a network.
  • Any new information added or altered via a new block is to be vetted and approved by over half the total users.

Read More: https://optimizeias.com/blockchain-technology/

5. Rights To Nature

Subject: Environment

Context- Chile poised to grant rights to Nature; could become 2nd such country besides Ecuador.

Concept-

• On March 25, 2022, the plenary body of Chile’s Constitutional Convention formally approved the Rights of Nature within its proposed constitutional text.
• Two articles reflect elements of the proposals include:
  • Article 4 on the Rights of Nature: Nature has the right to have its existence protected and respected, to regeneration, to the maintenance and restoration of its functions and dynamic balances, which includes natural cycles, ecosystems and biodiversity. The State through its institutions must guarantee and promote the Rights of Nature as determined by the constitution and laws.
  • The other is Article 26 on various Earth-centred principle It reads: These are principles for the protection of nature and the environment and include, at minimum, the principles of progressivity, precautionary, preventive, environmental justice, intergenerational solidarity, responsibility, and fair climate action.
• Other proposals related to environment include:
• Article 1: Climate and ecological crisis. It is the duty of the State to adopt actions of prevention, adaptation and mitigation of risks, vulnerabilities and effects caused by the climate and ecological crisis.
• Article 2: Animals. Animals are subject to special protection. The State will protect them, recognising their sentiment and the right to live a life free from abuse. The state and its agencies will promote an education based on empathy and respect for animals.
• Article 23 B: The State protects biodiversity, having to preserve, conserve, and restore the habitat of wild native species, in such quantity and distribution that adequately sustains the viability of their populations and ensures the conditions for their survival and non-extinction.
• Article 33: Environmental democracy. The right of participation to inform environmental matters is recognised. Participation mechanisms will be determined by law. All people have the right to access environmental information that is in the possession or custody of the State.

6. TN quota law is ultra vires Constitution

Subject: Polity

Section: Constitution

Context: The Supreme Court confirmed that the grant of 10.5 per cent internal reservation to Vanniyakula Kshatriya community violates the fundamental rights of equality, non-discrimination and equal opportunity for 115 other most backward communities (MBCs) and de-notified communities (DNCs) in Tamil Nadu.

Background

• The Special Reservation Act of 2021, which was enacted by the AIADMK government in consultation with Tamil Nadu Backward Classes Commission Chairperson Justice (retired) M. Thanikachalam, scooped 10.5 per cent of the total 20 per cent MBC quota for Vanniyakula Kshatriyas alone, citing their “extreme backwardness”
• Madras High Court has declared reservation law passed by the Tamil Nadu legislative Assembly as
• Tamil Nadu Government then has filed an appeal in the Supreme Court, challenging the Madras HC order against internal reservation to Vanniyars in government jobs and higher education

SC Observation

• Caste can be the starting point for internal reservation, it is incumbent on the State government to justify the reasonableness of the decision (to provide quota to a particular community) and demonstrate that caste is not the sole basis”.
• A Bench of Justices L Nageswara Rao and BR Gavai held that the allotment of 10.5 per cent reservation to a single community from within the total MBC quota of 20 per cent in the State, leaving only 9.5 per cent to 115 other communities in the category, was without “substantial basis”.
• Population was made the sole basis for recommending internal reservation for Vanniyakula Kshatriya, which is directly in violation with the law laid down by this court

Vanniyyars Communities

• Even as backward communities such as Thevars and Gounders are largely seen as Tamil Nadu’s socially and politically powerful communities, Vanniyars were one of the largest and most consolidated backward communities that had a consistency in retaining political representation from the 1940s and 1950s.
• Politically also more represented: 
  • In the political act of bargaining for community representation too, Vanniyars had been far ahead of other backward and Most Backward Communities (MBC) for decades, which includes their organised state-wide agitations in the mid-1980s demanding an exclusive 20 per cent reservation in the state and 20 per cent in central services.

SC Judgements on Reservation

1. Indra Sawhney case 1992

• The Supreme Court’s Indra Sawhney vs Union of India(1992) has been hailed as a landmark judgment as it upheld reservations for Other Backward Classes (OBCs). However, this judgment also held that reservations in appointments, under Article 16(4) of the constitution, don’t apply to promotions.
• The Supreme Court upheld the Mandal Commission’s 27 percent quota for backward classes, as well as the principle that the combined scheduled-caste, scheduled-tribe, and backward-class beneficiaries should not exceed 50 percent of India’s population. At the same time, the court also struck down the government notification reserving 10% government jobs for economically backward classes among the higher castes in 1992. In this case, the Supreme Court stated that;
• Backward Classes of the Citizens of in Article 16(4) can be identified on the basis of caste and not only on the economic basis.
• There should be NO reservation in the Promotions.

2. Nagraj Case 2006

• According to it, the government cannot introduce a quota in promotion for its SC/ST employees unless they prove that the particular Dalit community is backward, inadequately represented and such a reservation in promotion would not affect the overall efficiency of public administration.
• The opinion of the government should also be based on quantifiable data.
• It was made clear that even if the state has compelling reasons, the state will have to see that its reservation provision does not lead to excessiveness so as to breach the ceiling limit of 50% or obliterate the creamy layer or extend the reservation indefinitely.
• In the 2006 judgment, the apex court had ruled that the government can provide reservations in promotions to SCs and STs provided it was justified through quantifiable data collected by the State on the inadequate representation of the two communities in various posts.

7. Tripura and Meghalaya pact

Subject: Geography

Section: Map

Context: The chief ministers of Assam and Meghalaya have signed a pact to resolve part of their five-decade-old boundary dispute.

What’s the dispute?

• Assam and Meghalaya share an 885-km-long border. As of now, there are 12 points of dispute along their borders.
• The Assam-Meghalaya border dispute are the areas of Upper Tarabari, Gazang reserve forest, Hahim, Langpih, Borduar, Boklapara, Nongwah, Matamur, Khanapara-Pilangkata, Deshdemoreah Block I and Block II, Khanduli and Retacherra.

What is the root of the conflict?

• During British rule, undivided Assam included present-day Nagaland, Arunachal Pradesh, Meghalaya and Mizoram. Meghalaya was carved out in 1972, its boundaries demarcated as per the Assam Reorganisation (Meghalaya) Act of 1969, but has held a different interpretation of the border since.
• In 2011, the Meghalaya government had identified 12 areas of difference with Assam, spread over approximately 2,700 sq km.
• Some of these disputes stem from recommendations made by a 1951 committee headed by then Assam chief minister Gopinath Bordoloi.
• The 1969 Act is based on these recommendations, which Meghalaya rejects, claiming that these areas originally belong to the Khasi–Jaintia Hills. On the other hand, Assam says Meghalaya does not have the requisite documents to prove these areas historically belonged to Meghalaya.

8. Public Borrowing

Subject: Economy

Section: Fiscal policy

The Centre, finalised its borrowing programme for the first half of FY23, pegging the target at ₹8.45 lakh crore for this period. With this the borrowing plan for the first half of FY23 coming is at about 60 per cent of the overall borrowing target of ₹14.95-lakh crore for FY23,

The borrowing plan, is finalised by the Government in consultation with the Reserve Bank of India (RBI)

Concept:

Borrowing is a loan taken by the government and falls under capital receipts in the Budget document. Usually, the Government borrows through the issue of government securities called G-secs and Treasury Bills.

Composition-

A. Public Debt (A1+A2) 

   A1. Internal Debt (a+b)

1. Marketable Securities
2. Non-marketable Securities

   A2. External Debt

B. Public Account – Other Liabilities

C. Extra-Budgetary Resources (EBRs) 

D. Total Liabilities (A+B+C)

Total liabilities of the Central Government include debt contracted against the Consolidated Fund of India, technically defined as Public Debt, as well as liabilities in the Public Account. These liabilities include external debt (end-of-the financial year) at current exchange rate but exclude part of NSSF liabilities to the extent of States’ borrowings from the NSSF and investments in public agencies out of the NSSF, which do not finance the Central Government deficit.

Public Debt accounted for 89.9 per cent of total liabilities, while Public Account Liabilities, which include National Small Savings Fund, State Provident Funds, Reserve Funds and Deposits and other Accounts, constituted the remaining 10.1 per cent

% of Debt to GDP ratio

Factors making the public debt portfolio stable and also sustainable.

• low reliance on external borrowing and issuance of majority of securities at fixed coupon.
• external borrowing from official sources which are of long term and concessional in nature.
• low issuance of short-term bonds with a view to elongate the maturity profile.
• Issuance of dated securities is planned and conducted, keeping in view the debt management objective of keeping the cost of debt low, while assuming prudent levels of risk and promoting market development
• A vibrant secondary market provides opportunity to the investors to balance their portfolio as desired and at the same time diversify public debt.

What are off-budget borrowings?

According the budget document, “Extra budgetary resources (EBRs) are those financial liabilities that are raised by Public Sector Undertakings for which repayment of entire principal and interest is done from Government budget,” Such borrowings are made by state-owned firms to fund government schemes but are not part of the official budget calculations. Thus, Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution which borrows on the directions of the central government.

Such borrowings are used to fulfill the government’s expenditure needs.

But since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal deficit. This helps keep the country’s fiscal deficit within acceptable limits.

9. External debt

Subject: Economy

Section: External Sector

Context:

India’s external debt continues to be sustainable and prudently manageable

Key Developments:

• India’s external debt increased by $11.5 billion sequentially in October-December 2021 and it rose by $46.6 billion on a year-on-year basis.
• The percentage of the external debt to the Gross Domestic Product (GDP) declined slightly to 20 per cent as of December-end 2021 from 20.3 percent as of September-end 2021.

Concept:

• The appreciation of the US dollar against other major currencies such as the euro and yen helped limit the rise in external debt.
• The short-term debt, on a residual maturity basis, accounted for 43.1 percent of the foreign exchange reserves as on December 31. (i.e., debt obligations that include long-term debt by original maturity falling due over the next twelve months and short-term debt by original maturity)
• As much as 52.0 per cent of the external debt was denominated in US dollars at the end of December 2021.Rupee debt constituted 32 per cent, while debt in yen and euro made up 5.3 per cent and 3.1 per cent respectively.
• The forex reserves cover ratio is 103 per cent (A cover ratio of 90 percent-plus is considered comfortable).
• The ratio of short-term debt has increased to 18.1 percent from September, but is still lower than the pre-pandemic times
• Commercial borrowings remained the largest chunk of the external debt, with a share of 36.8 percent. Non resident deposits follow with 23.1 per cent, and short-term trade credit is the third-largest component at 18.0 per cent.
• Debt with an original maturity of up to one year rose to 18.6 percent of the total external debt from 17.4 percent as on September 30. While this is a small number, short-term debt on a residual maturity basis – debt that must be repaid in the next 12 months, irrespective of original maturity – rose to 44.4 percent of the total from 43.2 percent at the end of September 2021.

External debt: It refers to money borrowed from a source outside the country. External debt has to be paid back in the currency in which it is borrowed. External debt can be obtained from foreign commercial banks, international financial institutions like IMF, World Bank, ADB etc and from the government of foreign nations. Normally these types of debts are in the form of tied loans, meaning that these have to be used for a predefined purpose as determined by a consensus of the borrower and the lender.

Governments and corporations are eligible to raise loans from abroad. These are in the form of external commercial borrowings. The interest rate on foreign loans is linked to LIBOR (London Interbank Offer rate) and the actual rate will be LIBOR plus applicable spread, depending upon the credit rating of the borrower.

Debt Profile – External debt is classified as ‘External Commercial Borrowing’, ‘Currency Convertible Bonds’ and ‘Government Borrowings’.

Composition of India’s external debt

• Multilateral -Multilateral institutions such as the International Development Association (IDA), International Bank for Reconstruction and Development (IBRD), Asian Development Bank (ADB) etc are regarded as multilateral creditors.
• Bilateral – nations that engage in sovereign and non-sovereign arrangements such as one-to-one loan arrangements are bilateral creditors. India’s bilateral creditors are Japan, Germany, the United States, France, etc.
• International Monetary Fund –loans from IMF in form of SDR
• Trade Credit -It is when the loans and credits are extended for imports by overseas suppliers, banks and financial institutions to sovereign and non-sovereign entities.
• Commercial Borrowings -It includes borrowings from commercial banks, financial institutions, money that is raised through issuing securitized instruments such as bonds, floating rate notes (FRN), securitized borrowing of commercial banks etc.
• NRI Deposits (above one-year)
• Rupee Debt 
• Total Long-Term Debt– is debt with an original maturity of more than one year
• Short-term Debt– is defined as debt repayments on-demand or either with an original maturity of one year or even less.

Composition in terms of government and non government external debt:

• Government Debt 
  •  External Debt on Government Account under External Assistance       
  •  Other Government External Debt-includes defence debt, investment in Treasury Bills/government securities by FPIs, foreign central banks and international institutions and IMF.
•  Non-government Debt       
  • Central Bank
  • Deposit-taking Corporations, except the Central Bank
  • Other Financial Corporations
  • Non-financial Corporations
  • Households and nonprofit institutions serving households (NPISHs)
  • Direct Investment: Intercompany Lending

External debt sustainability:

A country’s public debt is considered sustainable if the government is able to meet all its current and future payment obligations without exceptional financial assistance or going into default. External debt sustainability can be measured based on the following parameters:

• Government’s debt and current fiscal revenue ratio.
• The overall share of short and long-term debt in the total debt burden.
• Share of concessional debt.
• Foreign debt to exports ratio
• Debt to GDP ratio
• The share of external debt to the total debt of the country.

Read More: https://optimizeias.com/external-debt/

10. What determines exchange value of currency – rubble case study

Subject: Economy

Section: External Sector

Context:

The Russian ruble has staged an impressive recovery after it lost about half of its value in the wake of Russia’s invasion of Ukraine.

Concept:

The currency has recovered almost all of the losses it incurred following the invasion and has thus, surprised many who had predicted a further fall in its value.

Cause:

• Capital controls that aim to increase demand for roubles and reduce the demand for dollars. For example, the Bank of Russia ordered Russian energy exporters, who still had access to US dollars, to use 80% of their forex holdings to purchase roubles.
• The Russian central bank, also ordered Russian brokers to not allow foreigners to sell their assets in Russia to prevent the outflow of capital which would further depreciate the rouble as investors sell their roubles to purchase dollars.
• The Russian central bank’s decision to raise its benchmark interest rate to 20% could have also helped draw some foreign investment that propped up the exchange value of the rouble.
• Lastly, peace talks between Russia and Ukraine have also perhaps helped in the rouble’s recovery to some extent by raising hopes of a return to economic normalcy.

Determination of exchange rate:

The price or exchange value of any currency is determined by the supply and demand for the currency.

Rouble depreciation post Ukraine crisis was mainly due to the decline in supply of the US$ relative to the Russian rouble thus, leading to the depreciation in the currency.

Causes of decline in supply of the US$

• When Western governments imposed sanctions, it made it harder for dollars to flow into Russia in terms of investment or financing for Russian exports
• Sanctions on the Russian central bank also made sure that the Bank of Russia could not flood the currency market with US dollars to prop up the value of the rouble.
• Large scale capital outflows
• Russian banks banned from SWIFT delayed payment settlement.
• The demand for foreign goods and assets, however, remained stable and when and when combined with a drop in the inflow of dollars, it caused the value of the rouble to fall

11. EV fires

Subject: Science

Section: Msc

Context: EVs catching fire

Concept:

Drawback of Li ion batteries:

The main reason for fire in Li ion batteries is a phenomenon of thermal runaway

What is thermal runaway?

Thermal runaway is one of the primary risks related to lithium-ion batteries. It is a phenomenon in which the lithium-ion cell enters an uncontrollable, self-heating state.

Thermal runaway can result in:

• Ejection of gas, shrapnel and/or particulates (violent cell venting)
• Extremely high temperatures
• Smoke
• Fire

Fundamentals of lithium ion battery

A lithium-ion battery cell consists of the following:

• Cathode: the positive terminal of the battery – typically a form of lithium metal oxide or similar
• Anode: the negative terminal of the battery – typically graphite
• Separator: a thin permeable polymer or similar that separates the cathode and anode
• Electrolyte: a solvent (typically alkyl carbonate based) containing conductive salts that permit the flow of ionic charge

• To produce electricity, an oxidation reaction at the anode, releasing electrons. Simultaneously, a reduction reaction occurs at the cathode, allowing the cathode to receive the electrons released by the anode, forming an electrical circuit.
• The anode and the cathode are isolated from each other via the separator, but over time, separators have the potential to wear down. Breaching of the separator causes high amounts of current to flow directly between the anode and cathode, short-circuiting the cell and producing tremendous amounts of trapped thermal energy.
• At the onset of thermal runaway, the battery heats in seconds from room temperature to approximately 700°C. As a result, the electrolyte breaks down into constituents such as methane, ethane, and ethene, as well as flammable and toxic gases such as carbon dioxide, carbon monoxide, and hydrogen gas. The cathode then begins to decompose, releasing oxygen, further accelerating the thermal runaway process. When the flammable electrolyte gases react with oxygen in the presence of heat, combustion occurs. The risk for explosion increases as the pressure in the cell builds.
• Mechanical damage of lithium-ion batteries such as accidental rupture or puncturing can result in the release of the electrolyte leading to the exposure of possibly toxic, corrosive, and flammable chemicals

Why li-ion battery preferred for E vehicle /smartphones?

• light weight
• high energy density
• ability to recharge.
• longer lifespan compared to a lead acid battery
• A Li-ion battery can typically store 150 watts-hour per kg as compared to a lead-acid battery which stores only around 25 watts-hour per kg.

However,

High energy density can also be a potential reason for catching fire

12. Exide Industries to invest ₹6000 cr to set up giga factory in Karnataka

Subject: Economy

Section: Indian economy

Context: Giga factories coming up in India

Concept:

• Giga factory is a term that we can first trace back to it being used by Elon Musk’s Tesla, for the then-upcoming lithium-ion battery manufacturing facility in Nevada.
• ‘Giga’ which represents a ‘billion’.
• However, in common parlance, a Giga factory has come to represent a battery-production facility that’s simply gigantic in scale and brings multiple companies and components together to scale up lithium-ion battery production at an unprecedented level.
• Giga factories aren’t just about making lithium-ion battery cells. While that may be their primary function, they are end-to-end renewable energy solution providers.
  • Giga factories are also designed to be the main hubs for renewable energy storage.