Daily Prelims Notes 11 July 2024

July 11, 2024
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

11 July 2024

Table Of Contents

1. Why is India drilling a 6-km deep hole in Maharashtra?

Sub: Geography

Sec: Geomorphology

Context:

The Borehole Geophysics Research Laboratory (BGRL) in Karad, Maharashtra, a specialized institute under the Ministry of Earth Sciences of the Government of India is mandated to execute India’s sole scientific deep-drilling programme at Koyna, Maharashtra.

More on news:

Powerful earthquakes measuring more than 7.5 on the Richter scale occur at the boundaries of tectonic plates and are almost certainly associated with a severe loss of infrastructure and life.
However minor earthquakes that occur in a plate’s interior are more challenging to predict because they occur at the least expected sites and could strike densely populated habitats.
Therefore scientific deep drilling becomes an indispensable tool for progress in the earth sciences.
Countries like the U.S., Russia, and Germany conducted such scientific projects in the 1990s.
Similarly India aims is to drill the earth’s crust to a depth of 6 km and conduct scientific observations and analysis to help expand the understanding of reservoir-triggered earthquakes in the active fault zone in the Koyna-Warna region of Maharashtra.

What is scientific deep-drilling?

Scientific deep-drilling is the enterprise of strategically digging boreholes to observe and analyze deeper parts of the earth’s crust.
It offers opportunities and access to study earthquakes and expands our understanding of the planet’s history, rock types, energy resources, life forms, climate change patterns, the evolution of life, and more.
Such missions can be a hub of direct, in-situ experiments and observations and strategically monitor a region’s fault lines and earthquake behavior (including nucleation, rupture, and arrest).

What is the drilling technique used at Koyna?

The Koyna pilot borehole is about 0.45 m wide (at the surface) and roughly 3 km deep.
It is unique in many ways because of the drilling technique: a hybrid of two well-established techniques called mud rotary drilling and percussion drilling (a.k.a. air hammering).
The rotary drilling technique uses a rotating drilling rod made of steel, attached to a diamond-embedded drill bit at the bottom.
The second technique, air hammering, pushes highly compressed air (in place of the drilling mud) through the drilling rod to deepen the borehole and flush the cuttings out.

What are the challenges of scientific deep-drilling?

Scientific deep-drilling is also the most challenging method as deep-drilling is labor- and capital-intensive.
The earth’s interior is also a hot, dark, high-pressure region that hinders long and continuous operations.

2. MSMEs Need Outlays for Technology Upgrades to Aid in Green Transition

Sub: Eco

Sec: National Income

Union Minister for MSMEs has identified six pillars crucial for the growth of the Micro, Small, and Medium Enterprises (MSME) sector:

Formalization and Access to Credit: Ensuring MSMEs have access to necessary financial resources.
Increased Market Access and E-commerce Adoption: Facilitating broader market reach through digital platforms.
Higher Productivity through Modern Technology: Encouraging the adoption of advanced technologies.
Enhanced Skill Levels and Digitalization in the Service Sector: Improving skills and digital capabilities.
Support to Khadi, Village, and Coir Industry: Promoting traditional industries on a global scale.
Empowerment of Women and Artisans: Fostering enterprise creation among these groups.

Budget Priorities

The upcoming budget should balance growth, curb inflation, generate employment, support MSMEs, and promote the ease of doing business.
Infrastructure development, particularly in industrial clusters, is critical for sustainable economic growth.

Export Growth and Employment

Exports have grown with a CAGR of 8.5% over the past six years, from $478 billion in FY18 to $778 billion in FY24.
The goal is to reach $2 trillion in exports by FY30, requiring a CAGR of 14.4%.
Supporting MSMEs is vital as they are key employment generators and crucial for sustaining and growing the economy.

Recommendations for MSMEs

NPA Timeline Extension: Extend the NPA recognition period from 90 to 180 days to provide relief to struggling MSMEs.
Credit Guarantee Scheme Revamp: Revise the scheme for micro and small enterprises in the manufacturing sector to better support these businesses.
Interest Equalisation Scheme: Extend this export-supporting scheme for five years.
Sector-Specific Support: Extend the RoDTEP and ROSCTL schemes for the textile and garment sector, predominantly MSMEs, for another five years.
Emergency Credit Line Guarantee Scheme: Reintroduce this scheme for MSME exporters for another two years to support export activities.
Payment Timeline Extension: Extend the payment timeline for MSME job work to 120 days from 45 days to ease fund flow issues.
PLI Scheme Adjustments: Lower the investment limit to ₹25 crore and the turnover limit to ₹70 crore under the PLI scheme for the textile and garment sector to help MSMEs upgrade technology and compete internationally.

Green Transition and R&D

Climate Change Adaptation:
Allocate more soft funds for MSMEs to aid in green transition efforts and fuel growth with sustainable resources.
Research and Development:
- Increase the weighted tax deduction under Section 35(2AB) to 300%.
- Extend R&D benefits under Section 35(2AB) to LLPs, partnership firms, and proprietary firms to encourage innovation within MSMEs.

Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)

The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) is a key initiative aimed at supporting Indian exporters. It became operational on January 1, 2021, replacing the Merchandise Exports from India Scheme (MEIS) following a World Trade Organization (WTO) ruling that deemed MEIS non-compliant with WTO regulations due to its provision of export subsidies across a wide range of goods.

Objective:
- The primary objective of RoDTEP is to provide comprehensive support to exporters by remitting duties and taxes incurred during the production and distribution of exported products. It covers taxes, duties, and levies at central, state, and local levels that are not refunded through other mechanisms.
Rebate Mechanism:
- The rebate is based on a percentage of the FOB (Freight On Board) value of exports.
- It is issued in the form of transferable duty credit/electronic scrip (e-scrip), with details maintained in a digital ledger by the Central Board of Indirect Taxes and Customs (CBIC).
Validity and Extension:
- Initially notified until September 30, 2023, the RoDTEP scheme has been extended until June 30, 2024, with the same rates applicable to existing export items.
Implementation and Management:
- The RoDTEP Committee operates within the Department of Revenue and is responsible for reviewing and recommending ceiling rates for different export sectors.
Financial Allocation:
- For the financial year 2023-24, the Indian Government has allocated Rs. 15,070 crores to support the RoDTEP scheme.
Stakeholder Engagement:
- The RoDTEP Committee engages with Export Promotion Councils (EPCs) and Chambers of Commerce to ensure the scheme meets the needs of exporters and addresses sector-specific concerns.

Rebate of State and Central Taxes and Levies (RoSCTL) Scheme

The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is designed to reimburse all embedded State and Central Taxes/Levies for the export of manufactured goods and garments. This scheme has succeeded the previous Rebate of State Levies (RoSL) Scheme, extending benefits to include both state and central taxes and levies.

Objective:
- To compensate for State and Central Taxes and Levies in addition to the Duty Drawback Scheme on the export of apparel/garments and made-ups by providing a rebate.
Rebate Form:
- The rebate under the scheme is provided in the form of duty credit scrips.
Issuance of Scrips:
- These scrips are issued electronically through the Customs system.
Usage of Scrips:
- Duty credit scrips can be used for the payment of Basic Customs Duty on the import of goods.
- These scrips are freely transferable.
- The duty credit available in an e-scrip must be transferred in its entirety at one time; partial transfers are not permitted.
Validity of E-Scrips:
- E-scrips are valid for one year from their creation date, and this period remains unchanged even if the e-scrip is transferred.

Implementing Agency

The scheme has been notified by the Ministry of Textiles.
It is implemented by the Department of Revenue.

3. Industry to Offer Ideas to Ease Compliance Burden

Sub: Eco

Sec: National Income

Union Commerce and Industry Minister addressed the FICCI National Executive Committee meeting emphasizing the government’s efforts to reduce the compliance burden on businesses and decriminalize laws to ease investment inflows.

Jan Vishwas Law 2.0:
- The government is working on a second iteration of the Jan Vishwas law to further reduce compliance burdens and decriminalize laws.
- The first iteration in 2023 decriminalized 182 sections across laws governed by 18 central government departments.
- Urging businesses to be more proactive and demanding in providing feedback and suggestions, to provide ideas on reducing the compliance burden and decriminalizing laws.
- Urged the industry to share practical, result-oriented ideas that can be implemented without compromising health, safety, or security.
- He emphasized that the industry must provide a balanced view on necessary changes, suggesting how issues like fraud or misuse could be tackled through fines or other measures.
Foreign Direct Investment (FDI):
- Net inward FDI inflows declined to $26.5 billion in 2023-24 from $42 billion in 2022-23, according to the RBI’s Annual Report for 2023-24.
- Goyal’s visit to Switzerland on July 14 aims to work towards achieving the $100 billion FDI goal under the India-EFTA Trade & Economic Partnership Agreement.
Sector-Specific Example: Entertainment Industry:
- Goyal cited the entertainment industry, which has significant potential, as an example of where easing licensing procedures could help.
- He proposed the idea of a single portal to handle all approvals to counter harassment faced by industry players for licenses and approvals.

Jan Vishwas Act, 2023

The Jan Vishwas (Amendment of Provisions) Act, 2023 aims to enhance the business environment in India by reducing compliance burdens and removing the fear of imprisonment for minor offences, fostering trust-based governance.

Decriminalization of Offences:
- Minor offences not involving harm to public interest or national security are decriminalized, replacing them with civil penalties or administrative actions.
- 183 provisions across 42 Central Acts are decriminalized, such as under the IT Act, 2000, where disclosing personal information in breach of a lawful contract now attracts a penalty of up to ₹25 lakh instead of imprisonment.
Removal of Offences:
- Certain offences are fully removed, including all offences under the Indian Post Office Act, 1898.
Periodic Revision of Penalties:
- Fines and penalties will increase by 10% of the minimum amount every three years.
Adjudicating Officers:
- The government may appoint one or more adjudicating officers to determine penalties through an adjudication mechanism, imposing monetary penalties.
Appellate Mechanisms:
- An appellate mechanism is introduced for grievance redressal regarding decisions made by adjudicating officers.

4. Mega dam, protest in Arunachal

Sub: Geo

Sec: Human geo

Context:

Two anti-dam activists against the Upper Siang Multipurpose Storage Project from Arunachal Pradesh were detained before Union Power Minister Manohar Lal Khattar’s visit.

The Upper Siang Project:

Proposed 11,000 MW hydropower project on the Siang River in Arunachal Pradesh.
Siang originates in Tibet as Tsangpo and becomes Brahmaputra downstream in Assam.
The government replaced two planned projects with a single 11,000 MW project by NHPC.
The project includes a 300-meter high dam, the largest in the subcontinent.
There are 29 hydroelectric projects in the Siang River basin with a combined capacity of 18,326 MW.
The upper Siang project’s capacity is 60% of the total current capacity.
Strategically aims to counter China’s hydel projects on Tsangpo, especially the planned 60,000 MW ‘super dam’ in Tibet.

Environmental and Social Concerns:

Concerns about the displacement of over 300 villages, including Upper Siang district headquarters in Yingkiong.
Threatens ancestral lands, delicate ecosystems, wildlife habitats, and biodiversity.
Impact on livelihood and cultural practices.

About Siang/Brahmaputra river:

The Brahmaputra is a transboundary river which flows through Tibet, northeast India, and Bangladesh.
It is also known as the YarlungTsangpo in Tibetan, the Siang/Dihang River in Arunachali, Luit in Assamese, and the Jamuna River in Bangla.
It is the 9th largest river in the world by discharge and the 15th longest.
With its origin in the Manasarovar Lake region, near Mount Kailash, on the northern side of the Himalayas in Burang County of Tibet where it is known as the YarlungTsangpo River, It flows along southern Tibet to break through the Himalayas in great Gorges (including the YarlungTsangpo Grand Canyon) and into Arunachal Pradesh.
It flows southwest through the Assam Valley as the Brahmaputra and south through Bangladesh as the Jamuna (not to be confused with the Yamuna of India).
In the vast Ganges Delta, it merges with the Ganges, popularly known as the Padma in Bangladesh, and becomes the Meghna and ultimately empties into the Bay of Bengal.

Source: IE

5. A case of people versus population

Sub: Geo

Sec: Human geo

World Population Day:

July 11 has been observed as World Population Day since 1989 after the global population crossed the five billion mark.
The population is now estimated to be 8.1 billion, with India as the most populous nation (1.44 billion), slightly more than China’s.

Changes in India:

The population has grown 44% from 100 crore to 144 crore, but the annual growth rate of the population has fallen sharply from nearly 2% to below 1%.
The total fertility rate (TFR) has fallen from 3.4 to 2, just below the “replacement level” of 2.1.
The per capita GDP of Indians grew six times, from $400 to $2,400, and the average lifespan of an Indian increased from 61 years to 70 years.
India faces a demographic shift towards an ageing population, with 19.5% of the population projected to be 60 years or older by 2050.
The reduction in fertility signifies a transition toward smaller family norms, potentially leading to a demographic dividend. However, urban migration and gender inequality pose challenges.
Indians living below the multi-dimensional poverty line decreased from 43% to 11%, although 16 crore people still remain below the poverty line, predominantly in Uttar Pradesh, Bihar, Madhya Pradesh, and Jharkhand.

Impact of Climate Change:

Climate change poses a significant threat to India, with the debate on historical vs. current emissions closely linked to the population vs. people dichotomy.
OECD countries, with a per capita income of $40,000 and a population of 1.39 billion, produce and consume $55.6 trillion worth of goods, whereas India, with a per capita GDP of $2,400 and a population of 1.44 billion, produces and consumes $3.5 trillion.
This disparity has been a major cause of global warming, impacting developing nations more severely.
The Narendra Modi government emphasizes the importance of economic growth in the Global South, as articulated in the G-20 New Delhi Declaration of September 2023.
India aims to achieve net zero by 2070, with a focus on eradicating poverty within the next decade. The Global South, including India, prioritizes economic growth to alleviate poverty over responding to population growth concerns.

Future Population Trends:

The global population is expected to reach 8.5 billion by the end of the decade, with Asia overpopulated and Europe underpopulated.
Urbanization will strain infrastructure and amenities.
The theme of World Population Day focuses on women’s sexual and reproductive health and rights.
While progress has been made, maternal deaths remain high in developing countries. India, as the most populous country, must address issues of inequality and the care burden on women.

Migration Trends:

Migration will continue to shape population distribution. With 60 crore Indians migrating within the country annually and 2 crore abroad, India needs to develop new cities to alleviate pressure on existing megacities.
Urban centres drive the global economy, but Indian cities rank poorly in global quality of life assessments.
India must address urban challenges to make its cities livable. Accurate population data from a census is needed to draft better policies.

International Conference on Population and Development (ICPD):

The United Nations coordinated an International Conference on Population and Development (ICPD) in Cairo, Egypt, on 5–13 September 1994.
Its resulting Programme of Action is the steering document for the United Nations Population Fund (UNFPA).
The ICPD was the largest intergovernmental conference on population and development ever held, with 179 governments participating and some 11,000 registered participants- from governments, UN specialized agencies and organizations, intergovernmental organizations, non-governmental organizations and the media.
Context and history:
- The first World Population Conference, organised by the League of Nations and Margaret Sanger, had been held at the Salle Central in Geneva, Switzerland from 29 August to 3 September 1927.
- The first World Population Conference sponsored by the United Nations was held in 1954 in Rome, a second in 1965 in Belgrade, a third in 1974 in Bucharest, a fourth in 1984 in Mexico City.