Current Affairs – December 05, 2024

{GS1 – Geo – EG – Mineral Resources} Oilfields Regulation Bill

• Context (IE): Rajya Sabha passed the Oilfields (Regulation and Development) Amendment Bill 2024 to streamline oil and gas exploration in India.

Need for the Bill

• Energy Demand: Reduces the gap between domestic production and consumption of oil and gas.
• Ease of Doing Business (EoDB): Encourages investments by modernising the legal framework.
• Policy Stability: Attracts domestic and international stakeholders by offering regulatory clarity.

Key Features of the Bill

• Broadened Definition of Mineral Oils: Includes hydrocarbons, coal bed methane and shale gas/oil.
• Delinking Petroleum and Mining Operations: Separates the regulatory frameworks for EoDB.
• Decriminalisation of Offences: Removes imprisonment provisions; introduces enhanced penalties for non-compliance.
• Simplified Dispute Resolution: Establishes an expedited mechanism for penalties and appeals.

Key Issues Raised

• Lack of Parliamentary Scrutiny: The opposition demands that the bill be sent to a standing/ select committee for detailed review.
• Fear of Centralisation: Concerns over reduced state control over resources & increased central authority.
• Impact on Arbitration Provisions: Changes could discourage foreign investors, raising investment risks.
• Priority for Public Enterprises: Emphasis on prioritising public sector entities over private companies.

Benefits and Potential Impact

• Investment Opportunities: Attracts both domestic & international players, enhancing economic activity.
• Infrastructure Sharing: Promotes efficient use of existing resources.
• Business-Friendly Environment: Simplifies compliance and reduces regulatory hurdles.

Way Forward

• Balanced Federal Approach: Ensure equitable resource benefit-sharing between the centre & states.
• Support for Public Enterprises: Prioritize entities like ONGC for key exploration projects.
• Stakeholder Engagement: Continue consultations to address concerns and improve transparency.

{GS2 – IR – Asia} Trans-Himalayan Multi-Dimensional Connectivity Network

• Context (TH): Nepal and China signed the MoU to build the Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN) and the Belt and Road Cooperation framework.

• THMDCN is an economic corridor between Nepal and China & part of China’s Belt and Road Initiative.
• The corridor consists of several transportation infrastructure projects, such as the China-Nepal railway, the restoration of the border ports, and highway construction.

Source: nepalitimes

Read More > India-Nepal Relations.

{GS2 – IR – Issues} China Banned Export of Minerals to the US

• Context (IE): China has banned the export of gallium, germanium, and antimony, citing national security concerns. The development came a day after the US prohibited certain chips and machinery and added more than 100 Chinese companies to a restricted trade list.

Significance of the Banned Rare Minerals

• Gallium: A soft, silvery-white metal similar to aluminium, melting point just above room temperature. It is used in semiconductors, LEDs, high-efficiency solar cells, and medical thermometers.
• Germanium: A greyish-white metalloid that is brittle. It is important for low-carbon technologies such as solar cells, fibre optic cables, infrared technology, and thermal imaging devices.
• Antimony: It is a hard, brittle, silvery metalloid used in bullets, night-vision goggles, batteries, and other military applications.

Implications of China’s Ban

• Impact on Technology and Defense Industries: These minerals are important for manufacturing various technologies, including semiconductors, renewable energy, and defence systems. The ban could disrupt the supply chain for these industries in the US, leading to potential delays and increased costs.
• Economic Consequences: The US tech sector, which relies heavily on these minerals, may face increased production costs and reduced competitiveness.
• Global Supply Chain: China is a major player in the global supply chain for rare earth minerals. Ban could prompt US & other countries to seek alternative suppliers, potentially reshaping global trade dynamics.
• National Security Concerns: Both countries cite national security as a reason for their actions. The US aims to prevent China from gaining supremacy in certain high-tech areas, while China seeks to protect its technological advancements.

{GS2 – Vulnerable Sections – Women} Cash Transfer Schemes for Women

• Context (TH): Schemes for women like Maharashtra’s Mukhyamantri Majhi Ladki Bahin Yojana & Jharkhand’s Mukhyamantri Maiya Samman Yojana were in the news.

Need for Women-Centric Schemes

• Rising voter turnout: Women turnout grew from 47% in 1962 to 66% in 2024.
• A Distinct “Women Constituency”: Women increasingly vote independently, forming
• Electoral significance: Swing votes from women can decide election outcomes.

Advantages of Direct Cash Transfers

• Bypassing Middlemen: Reduces corruption by directly transferring benefits to Aadhaar-linked accounts.
• Quick Impact: Creates immediate perception of welfare commitment without delays.
• Leader-Citizen Bonding: Strengthens personal loyalty through direct transfers.

Benefits for Political Parties

• Encourages policy learning and emulation to avoid losing voters to opposition schemes.
• Aligns with women-centric narratives like “Nari Shakti” and reservation initiatives.

Challenges of Cash Transfer Schemes

• Creates dependency without addressing systemic empowerment needs.
• Neglects public infrastructure like schools and hospitals requiring long-term investment.
• Narrow policy focus reduces alternative welfare approaches.

Way Forward

• Combine cash transfers with investments in education, healthcare and skill development.
• Strengthen DBT mechanisms to eliminate residual inefficiencies and ensure fund utility.
• Develop inclusive policies addressing broader societal challenges with a gender-specific focus.

Read more > Freebies.

{GS3 – Agri – Tech} Hybrid Agricultural Intelligence

• Context (TH): AI-driven solutions and farmers’ indigenous knowledge offer a transformative path to sustainable Indian agriculture.

• Hybrid Agricultural Intelligence (HAI) integrates traditional farming knowledge with modern AI tools for sustainable, efficient solutions tailored to local conditions. It addresses soil degradation, climate change and market volatility while enhancing resilience and productivity.

Importance of Agriculture in India

• Economic Backbone: Contributes 18.2% to GDP and sustains 42.3% of the population.
• Extent of Farming: 219.16 million hectares were cultivated in 2021-22.
• Indigenous Knowledge: Farmers have refined methods for crop management, soil health and weather adaptation over centuries.

Need for AI in Indian Agriculture

• Tech Advancements: Machine learning, sensors & drones make global agriculture more efficient.
• Challenges in India: Small landholdings limit the adoption of large-scale AI technologies for vast farms.
• Pilot Success: Programmes like ‘Saagu Baagu‘ in Telangana increased chilli yield by 21% and improved income by ₹66,000 per acre.

Benefits of HAI

• Increased Efficiency: AI tools reduce pesticide use by 9%, fertiliser use by 5%, and costs by 22%.
• Enhanced Income: Quality improvements increase market prices and farmer earnings.
• Sustainability: Combines low-input organic methods with advanced technologies for long-term ecological balance.
• Gender Inclusivity: Leverages women’s role in sustainable farming, from seed selection to pest control.

Issues

• Data Privacy: Concerns over the misuse of sensitive agricultural data.
• Financial Constraints: Small farmers face difficulty accessing costly AI technologies.
• Social Resistance: Farmers need awareness and training to adopt new technologies effectively.
• Infrastructure: Lack of collaborative platforms for integrating traditional and AI-driven practices.

Way Forward

• Collaborative Platforms: Develop forums like ‘Kisan-e-Mitra’ and ‘Bhashini’ for knowledge sharing and technology integration.
• Training Programmes: Educate farmers on the use of AI tools alongside their indigenous practices.
• Equitable Partnerships: Ensure government, ICAR, tech firms and cooperatives work inclusively to safeguard farmers’ interests.
• Recognition and Incentives: Encourage farmers through awards such as PPVFRA’s Genome Saviour Awards for their innovations.
• Policy Support: Expand initiatives like AI4AI programme to promote accessibility of affordable AI tools.

Also refer to Integrated Command and Control Centre, Natural Farming.

{GS3 – Envi – UNFCCC} Reflections on Baku’s NCQG Outcome

• Context (TH): The COP29 outcome in Baku on the New Collective Quantified Goal (NCQG) faced several criticisms, including for bypassing principles of climate justice and equitable burden-sharing.

Takeaways from COP29

• Origin of NCQG: Established at COP21 with a base point of $100 billion annually pledged in Cancun.
• Objective of NCQG: To create a transparent, accountable framework with specific financial goals.
• Incremental Progress: Public resource flows are set to triple by 2035, but at a slow pace misaligned with the urgency of climate action.
• Shortfalls: The $300 billion commitment lacks ambition and transformative potential, falling short of the $5-7 trillion needed by 2030 (as per the UNFCCC’s Second Needs Determination Report).
• Disappointment in Scale: The outcome failed to address the financial disparity between developed and developing nations or ensure transformative change.

Need for Climate Action

• Rising Global Temperatures: Current policies risk a temperature rise of up to 3.1°C, far exceeding the IPCC-recommended 1.5°C limit.
• Visible Impacts: Widespread climate change effects necessitate urgent global efforts.
• Emerging Solutions: Cleaner fuels and advanced technologies need focused implementation.

Financing Needs of Developing Countries

• Cost Barriers: High upfront costs of renewable tech demand government support for affordability.
• Technological Risks: Evolving green technologies pose risks that limit adoption in developing nations.
• Developmental Pressures: Government resources are crunched due to competing priorities.

Challenges in Climate Finance

• Inadequate Commitments: Developed nations pledged only $300 billion annually till 2035, far below the developing world’s conservative ask of $1.3 trillion annually.
• Debt Issues: Loans add to fiscal debt burdens, limiting the ability to mobilise private capital.
• High Cost of Capital: Developing nations face much higher lending rates than OECD countries, reducing financial flows.

India’s Green Energy Investments

• Budgetary Allocations: The MNRE received ₹19,100 crore in 2024-25, its highest allocation to date.
• Subsidies: ₹5,790 crore provided under FAME II for electric vehicles.
• Energy Efficiency: ₹40 crore allocated to promote energy-efficient solutions.

Way Forward

• Global Cooperation: Strengthen international collaboration while respecting Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).
• Climate Justice: Prioritize equitable burden-sharing and focus on the needs of the Global South.
• Unified Developing Nations: Ensure fair transitions through collective advocacy for just outcomes.

{GS3 – IE – Exports} Analysing India’s Production-Linked Incentive (PLI) Initiative

• Context (IE): Six out of 14 Production-Linked Incentive (PLI) schemes, including textiles, solar modules, IT hardware, automobiles, advanced chemical cells (ACC) and steel, are relatively in the slow lane.

Factors Contributing to the Delayed Implementation of PLI Schemes

• Delayed Fund Disbursement: The scheme’s initial years saw minimal fund disbursement, with only a small fraction of the total incentive outlay paid out in the first two years.
• Resource Accessibility Issues: Companies face difficulties obtaining critical resources, including Chinese machinery and skilled technicians, which can hinder their capacity to scale up production rapidly.
• Stringent Qualification Norms: Numerous industries have highlighted that criteria for participating in PLI schemes are excessively rigorous, limiting the number of companies that can avail of these incentives.
• Initial Infrastructure Challenges: Establishing a domestic manufacturing base from scratch is formidable. Sectors such as solar modules and ACC require significant time — ranging from one and a half to three years — to set up manufacturing operations, thereby delaying employment generation.
• Market Reliance: Certain sectors remain heavily dependent on imports and have not yet transitioned to a self-sufficient manufacturing model, impacting their growth under the PLI framework.

Sectors Experiencing Significant Slowdowns

• Solar Modules: Despite being a strategic sector for renewable energy, delays in establishing manufacturing capabilities have led to slow progress. As of June 2024, India’s solar module manufacturing capacity reached 77.2 GW, but solar cell capacity was only 7.6 GW, leading to supply shortages.
• Advanced Chemical Cells (ACC): Similar to solar modules, this sector faces long commissioning periods that delay employment outcomes. Lengthy development timelines for manufacturing facilities and substantial technological investment contribute to slower growth in this strategic area.
• Automobiles: Factors such as rising raw material costs & shifting consumer preferences towards electric vehicles create a complex environment for traditional automakers.
• Textiles: High competition & stringent norms have slowed participation and growth in the sector.
• IT Hardware: Although recently upgraded with increased funding, this sector still lags in implementation compared to more successful areas like mobile manufacturing.

Measures to Enhance PLI Scheme Effectiveness

• Boosting Supply Chain Support: Establishing robust supply chains is important. The government could provide additional support to smaller suppliers, which is essential for scaling production across sectors.
• Facilitating Resource Accessibility: Easier access to necessary machinery and skilled labour can help companies ramp up production more effectively and reduce import dependency.
• Regular Monitoring and Adjustments: Continuous monitoring and adjustments based on sector performance can help identify bottlenecks early and allow for timely interventions.
• Revising Qualification Criteria: Simplifying the eligibility requirements could encourage more companies, especially smaller firms, to participate in the schemes and benefit from the incentives.
• Promoting Ancillary Industries: Encouraging the establishment of ancillary industries around larger beneficiaries could create additional jobs and enhance local manufacturing capabilities.

{Prelims – Awards} The Turner Prize

• Context (IE): Indian-origin Scottish artist Jasleen Kaur has won the Turner Prize 2024 for her exhibition, “Alter Altar”, which reflects on plurality, personal and political themes.

• Name Origin: It is named after the renowned British painter J.M.W. Turner.
• Eligibility: It is open to a British artist or an artist working primarily in Britain.
• Award Ceremony: The Turner Prize is awarded annually. The ceremony’s location changes each year, rotating between various art institutions in the UK.
• Social and Political Themes: The Turner Prize often highlights social, political, and environmental issues through its nominees and winners. Indian-origin British artist Anish Kapoor won the prize in 1991.

{Prelims – Sci – Bio} Extrachromosomal DNA (ecDNA)

• Context (TH): A recent study has shown that Extrachromosomal DNA (cDNA) is present in approximately 50% of cancer types and is important in tumour evolution and genetic heterogeneity.

• ecDNA are circular fragments of DNA located outside chromosomes, present in nucleus of cancer cells.
• It contains amplified oncogenes, which drive cancer progression and form “hubs” to enhance oncogene expression, promoting tumour growth.
• It is created by DNA damage, chromosomal rearrangements, or errors during cell replication.
• It was first discovered in cancer cells about 50 years ago but was initially considered unimportant due to its low prevalence (1.4% of tumours). Advances in genomic techniques revealed its presence (40% of cancer cell lines and up to 90% of patient-derived brain tumour samples).

Source: springer

Recent Studies and Findings

• Factors like smoking, exposure to certain substances, and genetic mutations can lead to DNA damage and the formation of ecDNA. It was found in 17% of tumour samples, more prevalent in liposarcomas, brain tumours, & breast cancers.
• Violation of Mendel’s Law: Mendel’s Law of Independent Assortment states that genes on different chromosomes are inherited independently and passed randomly to offspring.
• Clustered Inheritance of Genes: ecDNA defies this law by grouping genes and transmitting them as clusters during cell division.