Abhimanu

Weekly current affairs Series

Week: III, Feb 2017

Abhimanu’s IAS Study Group Chandigarh

NATIONAL ECONOMIC AFFAIRS

India’s twin balance sheet problem

Economic Survey 2016-17 devotes an entire section to the twin balance sheet problem of stressed corporates and banks.

A solution to the NPA problem must necessarily address corporate balance sheet stress.

The Economic Survey called for a need to set up a government-owned asset reconstruction company, PARA (Public Sector Asset Rehabilitation Agency) in an attempt to resolve India’s twin balance sheet problem - over-leveraged companies and the rising bad loans in public sector banks.

The Survey report builds up the rationale on the following lines:

The twin balance problem required a coordinated approach to debt management, which was lacking.

NPAs are largely the result of the stressed cash flows of a few large companies, mainly in core industry and infrastructure, caused by economic downturn rather than bad governance.

Therefore, the solution lies in trimming debt to sustainable levels, including through write-offs or conversion to equity.

While the RBI introduced several schemes on exactly the same lines, they did not work because banks were apprehensive about writing off loans or taking strategic stakes.

Analysis:

Vast bulk of the NPA problem was caused by unexpected changes in the economic environment, which is at odds with the statement that growth will not solve the problems of the stressed firms.

The sectoral distribution of NPAs of PSU banks reveals a widespread issue, not confined to a few sectors, which makes it hard to accept that economic distress was the main cause.

And, if most of the distressed loans are concentrated only in a few large companies and in a few sectors such as infrastructure, the debt restructuring that banks undertook should have borne some results, but that was not the case.

In order to solve this problems, It needs long-term financing (10 years and above) with long start-up periods (three-five years) — a remit that is clearly unviable for banks that have an average liability profile of less than two years, and limited project financing capabilities.

It is not the debt levels that are unviable, but the terms of the debt — the cost, the repayment. It is no coincidence that banks’ exposure and NPA levels in the infrastructure sector shot up after the demise of specialised term lending institutions such as the IDBI and ICICI.

Finally, the operational model of PARA is unclear. Although several assumptions are offered, most are variants of old themes — funding through transfer of government securities and not cash, or government support, capital market issues etc.

The report says that private asset reconstruction companies (ARCs) failed because they probably did not see value in the debts, reflected in the low prices offered. But, this can hardly be the rationale for setting up a public ARC, unless it implies that PARA will pay higher prices irrespective of loan quality.

Smaller states and Trade

According to Economic Survey, Smaller States such as Uttarakhand, Himachal Pradesh and Goa trade more, while the net exporters are the manufacturing powerhouses of Tamil Nadu, Gujarat, and Maharashtra.

Main highlights:

Internal trade between States, of the first-ever estimates for interstate trade flows, is that cross-border exchanges between and within firms amount to at least 54% of GDP (in 2015), implying that India’s interstate trade is 1.7 times larger than its international trade of 32% of GDP.

Haryana and Uttar Pradesh appear to be manufacturing powerhouses because of their proximity to the national capital region, according to the Survey.

All political borders impede the flow of people, language (Hindi specifically) does not seem to be a demonstrable barrier to the flow of goods.

India’s aggregate interstate trade (54% of GDP) is not as high as that of the U.S. (78% of GDP) or China (74% of GDP), but substantially greater than provincial trade within Canada and greater than trade between Europe Union countries.

The costs of moving (within India) are about twice as great for people as they are for goods.

However, it said there is a potential dampener on the finding that trade in goods is high within India.

India traded so much because of the consequence of the current system of indirect taxes which perversely favours interstate trade over intra-state trade.

Economic Survey on Employment

According to Economic survey 2016-17, in order to exploit the demographic dividend and meet the growing aspiration of those entering the labor force, India's economy needs to create enough good jobs - jobs that are safe and pay well, and encourage firms and workers to improve skills and productivity.

Important highlights :

It may be noted that of the 10.5 million new jobs created between 1989 and 2010, only 3.7 million-about 35 percent - were in the formal sector. Thus, the challenge of creating the good jobs of India could be seen as a challenge of creating more formal sector jobs which also guarantee workers protection.

The survey has suggested that productivity in the apparel sector can be substantially improved by relocating capital from less productive to more productive firms. Incidentally formal apparel sector firms in India are about 15 times more productive than there informal sector counterparts.

However, India's apparel sector is dominated by informal firms where approximately 2.0 million establishments employing about 3.3 million workers, dwarfing the formal apparel sector's 2800 firms which employ 330,000 workers. Apparently this sector is now in process of relocating its units in second and third tier towns and cities.

This business model of moving factories to workers has a number of commercial and social advantages-it involves spreading economic development to underdeveloped areas, reduces spatial mismatch in the labour market and can improve competitiveness by raising firms' access to lower cost labour. Moreover, about 70 per cent of the employees of India's larges apparel exporter are women.

Recent studies have estimated that India's GDP would grow by an additional 1.4 per cent every year if women were to participate as much as men in the economy.

To boost economy the centre has to ensure that labour regulation is worker-centric, by expanding workers choice and reducing mandatory taxes on formal sector employment

The survey has also suggested to improve the function of EPFO (Employees Provident Fund Organization).

Policymaker should consider whether lower earners should be offered the same choice- of whether to contribute part of their salaries to the EPF- which the rich have.

This would both introduce competition in the market for savings, which may improve EPFO's service standards, and allow the poor-some of whom may be liquidity constrained- to optimize as per their own personal requirements.

Index of Economic Freedom report 2017

The heritage foundation has released Index of Economic freedom report , 2017.

Highlights of the report:

India ranked at 143rd in an annual index of economic and lag behind its several South Asian neighbours including Pakistan, as progress on market-oriented reforms has been “uneven”.

India was ranked 143rd, a slip from its previous 123rd position last year. It has been put in the category of “mostly unfree” economies.

Indian state “maintains an extensive presence” in many areas through public-sector enterprises. “A restrictive and burdensome regulatory environment discourages the entrepreneurship that could provide broader private-sector growth.”

Also, India’s overall score of 52.6 points is 3.6 points less than that of last year, when India was ranked 123rd.

India has technology and manufacturing sectors as advanced as any in the world as well as traditional sectors characteristic of a lesser developed economy. Extreme wealth and poverty coexist as the nation both modernises rapidly and struggles to find paths to inclusive development for its large and diverse population,.

India is a significant force in world trade, the report noted, but corruption, underdeveloped infrastructure, and poor management of public finance undermine overall development.

Nepal (125), Sri Lanka (112), Pakistan (141), Bhutan (107), and Bangladesh (128) surpassed India in economic freedom.

Among South Asian countries, only Afghanistan (163) and Maldives (157) were ranked below India.

China with a score of 57.4 points - an increase of 5.4 points compared to previous year - was placed at 111 position. The United States was ranked 17 with 75.1 points.

About index

Economic freedom is measured based on 12 quantitative and qualitative factors, grouped into four broad categories, or pillars, of economic freedom:

Rule of Law (property rights, government integrity, judicial effectiveness).

Government Size (government spending, tax burden, fiscal health).

Regulatory Efficiency (business freedom, labor freedom, monetary freedom).

Open Markets (trade freedom, investment freedom, financial freedom).

Each of the ten economic freedoms within these categories is graded on a scale of 0 to 100. A country’s overall score is derived by averaging these ten economic freedoms, with equal weight being given to each.

Analysis:

Economic freedom is the fundamental right of every human to control his or her own labor and property.

In an economically free society, individuals are free to work, produce, consume, and invest in any way they please.

In economically free societies, governments allow labor, capital, and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.

Economic freedom brings greater prosperity. The Index of Economic Freedom documents the positive relationship between economic freedom and a variety of positive social and economic goals. The ideals of economic freedom are strongly associated with healthier societies, cleaner environments, greater per capita wealth, human development, democracy, and poverty elimination.

The Index of Economic Freedom is a helpful tool for a variety of audiences, including academics, policymakers, journalists, students, teachers, and those in business and finance. In the The Heritage Foundation’s new guide, Using the Index of Economic Freedom, users can learn innovative ways use the Index in research, public policy, business, and advocacy.

Economic survey on Health and Fertility

According to economic survey 2016-17, despite overall growth, there is a striking evidence of divergence or widening gaps in income as well as consumption across the Indian states.

This pattern is opposite to many other countries in the world including China. Across the world, the poorer countries are catching up with richer countries. Across China, the poorer Chinese provinces are catching up with richer ones, but in India, the less developed states are not catching up; instead they are on average falling behind richer states.

Important highlights:

Life expectancy of Indians has improved, but mother and children are bearing the brunt of a weak health system.

Despite growing rapidly on average, there is sign of growing regional inequality among the Indian states.

This is puzzling because the underlying forces in favour of equalization within India — namely strong and rising movements of goods and people — are strongly evident.

One of the possible reasons is that there might be governance traps that impede the catch-up process.

But why such traps persist if competitive federalism is forcing change upon the lagging states remains an open question.

The central message of this survey is that life expectancy has gone up- although it is hugely affected by interventions other than health like education, unemployment etc.

Despite of low level of health expenditures, there has been convergence on key health indicators among states in India. Two of these key indicators are Life expectancy (LE) and Infant Mortality Rate (IMR).

Two possible primary reasons for convergence in key health indicators could be: Firstly, the worse initial situation but progress occurred because many medical technologies such as antibiotics and other medical practices. These are commonly available across the world and India but despite such availability the progress is comparatively slow;

Secondly, There are much clearer bounds on health indicators which would naturally lead to convergence. For example: once a country has reduced its IMR to near zero, it’s almost impossible for it to further reduce, while countries with high IMR have much more room for improvement.

The survey finds that as far as fertility is concerned, India has done exceptionally well. This is evident from the fact that 12 out of 23 reporting states have reached below replacement level of fertility (2.1).

Thus, as in case of LE and IMR, there is evidence of strong convergence across the states.

Further, compared globally all Indian states (Except Kerala) are performing much “better” than countries on average in reducing TFR. These developments have strong implications for demographic dividend in future.

There seems to a broad brush because the survey does not look at morbidity or mortality caused by infectious and non-communicable diseases (NDCs).

While IMR is a central outcome, that alone has been factored in with years lost or economic cost of NCDs and infectious disease not even figuring. In fact, it makes no mention of NCDs at all, which is among the biggest disease burdens in India.

Multilateral FIs allowed investing in ‘masala bonds’

The Reserve Bank of India (RBI) has permitted multilateral and regional financial institutions to invest in rupee-denominated bonds.

This decision aims to provide more choices of investors to Indian entities issuing rupee-denominated bonds abroad.

With this, agencies like the Asian Development Bank and the BRICS led New Development Bank can also invest in these bonds.

About Masala bonds

The term is used to refer to rupee-denominated borrowings by Indian entities in overseas markets.

The International Finance Corporation (IFC), the investment arm of the World Bank, last year , issued a ₹1,000 crore bond to fund infrastructure projects in India.

These bonds were listed on the London Stock Exchange (LSE).

IFC then named them Masala bonds to give a local flavour by calling to mind Indian culture and cuisine.

Analysis:

Masala bonds are issued to foreign investors and settled in US dollars. Hence the currency risk lies with the investor and not the issuer, unlike external commercial borrowings (ECBs), where Indian companies raise money in foreign currency loans.

While ECBs help companies take advantage of the lower interest rates in international markets, the cost of hedging the currency risk can be significant. If unhedged, adverse exchange rate movements can come back to bite the borrower. But in the case of Masala bonds, the cost of borrowing can work out much lower.

Masala bonds can have implications for the rupee, interest rates and the economy as a whole. Competition from overseas markets may nudge the government and regulators to hasten the development of our domestic bond markets.

A vibrant bond market can open up new avenues for bond investments by retail savers. If Masala bonds are eagerly lapped up by overseas investors, this can help prop up the rupee.

The rising demand for Dim-sum bonds in 2011, for instance, promoted the use of the yuan in global trade and investment. Dim-sum bonds also provided investment avenues for yuan-holders outside of China. With talks of a full rupee convertibility back home, Masala bonds can help the rupee go global.

But these bonds can have bad after-effects too if companies decide to binge on them. As of December 2014, corporate overseas borrowings stood at $171 billion.

The recent turmoil in the rupee is already prompting caution on existing foreign loan exposure.

With our economy still on shaky ground, too much reliance on external debt (even in rupees) can weigh heavily on our rating by global agencies.

Masala bonds are a good idea to shield corporate balance sheets from exchange rate risks. But they are best used in moderation. The after-effects of too much masala are not pleasant.

NATIONAL POLITY

Food Legumes Research Platform (FLRP)

The Union Cabinet has approved the establishment of Food Legumes Research Platform (FLRP) by International Center for Agricultural Research in Dry Areas (ICARDA) at Amlaha, Sehore, Madhya Pradesh with satellite hubs in West Bengal (for pulses) and Rajasthan (for natural resource management).

The Cabinet also approved signing of lease deed with MP government for the land provided by them (70.99 hectare, 175.42 acre) at Amlaha Farm, Sehore on land rent of Re 1 per acre per year for 30 years on lease and to further lease it to ICARDA to establish the FLRP in MP.

There is ‘In principle’ approval of the Cabinet for conferring on the Food Legume Research Platform of ICARDA an international status as contemplated in Clause 3 of the United Nations (Privileges and Immunities) Act, 1947.

Cabinet also authorized the Department of Agricultural Research (DARE) on behalf of Government of India in all matters regarding establishment of the Platform.

IT also Authored the Ministry of Agriculture to carry out technical modifications in the Supplementary Agreement signed between ICAR and ICARDA relating to establishment of FLRP, if required.

About ICARDA:

The International Center for Agriculture Research in the Dry Areas (ICARDA), a member of the CGIAR(Consultative Group for International Agricultural Research), supported by the CGIAR Fund, is a non-profit agricultural research for development institute that aims to improve the livelihoods of the resource-poor across the world’s dry areas.

Established in 1977, the ICARDA’s founding mandate is to promote agricultural development in the dry areas of developing countries.

Analysis:

The establishment of FLRP in India will enable India to harness the best of international science in meeting the emerging food security challenges.

India would be able to rapidly and effectively absorb the research output achieved in the country by FLRP.

A major international R&D institution will make India an even bigger center for agricultural research in the world and this in turn, will attract further research & development investment in the country.

ICARDA has a good track record of innovation, as in climate resilient technologies including suitable food legume varieties for dry-land production systems.

ICARDA will carry out research through a multi-disciplinary team of scientists for enhancing productivity of crops range-land and livestock.

This platform will contribute significantly towards reducing poverty, improving food security, improving nutrition and health, and sustaining the natural resource base.

The research output would benefit farmers of all regions, whether big, small or marginal; and as technologies developed would be eligible for use by all farmers, the project is equitable and inclusive.

Cloud Seeding Programme

Maharashtra Government has approved Rs. 250 crore Cloud Seeding Programme during 2017 monsoon season to produce sufficient rain.

Under this programme, weather scientists using aircrafts will spray chemicals (silver iodide) over clouds clouds hovering above Solapur district, a rain shadow region of Western Ghats in the state.

About Cloud seeding:

Cloud seeding is the technique of inducing rain from a cloud, usually by dropping suitable particles into clouds containing super cooled water in an attempt to cause them to dissipate, modify their structure, or alter the intensity of associated phenomena, such as wind speed or hail.

The most common application of cloud seeding is to increase precipitation, possible with both warm and cold clouds.

There are two primary methods employed to stimulate precipitation. One, hygroscopic seeding, affects warm cloud processes. The other, glaciogenic seeding, initiates cold cloud processes.

Though occasionally both techniques may be helpful, in most cases one can be utilized more effectively than the other.

This technology can be applied from the surface or from an aircraft.

Glaciogenic seeding can also be used to increase precipitation from stratiform and orographic clouds.

By increasing snowpack and resultant spring runoff, subsequent water supplies for hydropower are increased. In addition to alleviating the need for alternative costly power supplies, cloud seeding increases the water availability for municipal, recreational, and environmental interests.

Efforts to increase rainfall during the warm seasons are typically aimed at convective clouds. While it is theoretically possible to seed such clouds using ground-based equipment, targeting from aircraft is much more efficient and accurate.

Cloud seeding can be used as a tool to help mitigate hail damage and protect crop yields, homes and other property, thus reducing the economic harm from disastrous storm damage.

Another useful application for cloud seeding is the treatment of ground-based clouds, also known as fog. Supercooled fogs, comprised of water droplets at temperatures cold enough to permit ice development, can easily be cleared by glaciogenic seeding. This can be done either from the ground or from airborne application. Your choice between the two will depend on characteristics such as local infrastructure, topography, and wind.

India’s rapidly worsening air pollution

According to a report on air pollution, India’s rapidly worsening air pollution is causing about 1.1 million people to die prematurely each year and is now surpassing China’s as the deadliest in the world.

This report is issued by Health Effects Institute and the Institute of Health Metrics and Evaluation.

Highlights of the report:

As air pollution worsened in parts of the world, including South Asia, it improved in the United States and Europe.

Environmental regulations in the United States and actions by the European Commission have led to substantial progress in reducing fine particulate pollution since 1990.

The United States has experienced a reduction of about 27 percent in the average annual exposure to fine particulate matter, with smaller declines in Europe.

Although deaths caused by air pollution grew to 4.2 million in 2015 from 3.5 million in 1990, the rate of increase of about 20 percent was slower than the rate of the population rise during that time.

This is because of improved health care in many parts of the world, as well as public policy initiatives undertaken in the United States, Europe and other regions that reduced emissions from industrialization.

In China, Premature deaths from particulate matter each year have stabilized at around 1.1 million since 2005. Still, that is an increase of 17 percent since 1990, when it was a little more than 945,000.

In 2015, long-term exposure to fine particulate matter – the dangerous tiny particles that can penetrate the lungs and cause cancer, heart disease and other ailments – contributed to 4.2 million deaths globally. China and India together accounted for 52 percent of those.

Report and India:

India has registered an alarming increase of nearly 50 percent in premature deaths from particulate matter between 1990 and 2015.

Confluence of rapid industrialization, population growth and an aging populace in India that is more susceptible to air pollution.

India’s notoriously poor air quality causes nearly 1.1 million premature deaths every year, almost on a par with China.

India and neighbouring Bangladesh have experienced the steepest increases in pollution since 2010 and now have the highest PM2.5 concentrations in the world.

Lack of proactive policies is responsible for the rising air pollution.

The report asks the government to undertake sustained public policy initiatives to reduce the pollution.

About PM 2.5 :

A fraction of the width of a human hair, these particles can be released from vehicles, particularly those with diesel engines, and by industry, as well as from natural sources like dust. They enter the bloodstream through the lungs, worsening cardiac disease and increasing the risk of stroke and heart failure, in addition to causing severe respiratory problems, like asthma and pneumonia.

Analysis:

India is taking longer to address coal emissions and vehicle standards, meaning its death toll will continue to rise.

The country has tightened its emissions standards for cars and will align them with strict European standards by 2020.

In India’s capital, New Delhi – the world’s 11th-most-polluted city, according to the World Health Organization – the courts forced the authorities to come up with an emergency plan to address an air-pollution emergency after a toxic cloud of smoke from fireworks and crop-burning descended on the city in November, sending pollution levels skyrocketing to more than six times the acceptable levels.

India’s Supreme Court banned the sale of fireworks, popular during the festival Diwali, in the capital after the emergency.

Project Loon

Researchers at Google have moved a step closer to rolling out a network of huge balloons to provide Internet connectivity to billions of people around the world, particularly those in difficult-to-reach rural areas.

The Project Loon team, part of the company’s X research lab, can now use machine learning to predict weather systems.

By using machine-learning algorithms, it has found a way to predict weather with enough accuracy to make it possible to hover balloons over a relatively small area for a long period of time.

How Project Loon works

1. Balloon

The balloon is a superpressure envelope--meaning it maintains constant pressure in changing temperatures--made from three-millimeter-thick sheets of polyethylene plastic.

Partially inflated with helium for launch, it swells to full size once in the stratosphere.

Solar panels power the elec-tronics (and charge a battery for night use). The electronics box holds a flight computer with navigational algorithms; an altitude-control system; a battery; and a handful of radios and antennas for receiving and relaying 4G LTE signals.

2. Network

Regional telecoms beam 4G LTE signals to the balloons. Each balloon communicates with dozens of others to form a mesh-like global network, always in motion.

A single balloon relays the signal--like a cell tower in the sky--to a ground area many miles in diameter.

Google had tested the concept with Wi-Fi, but abandoned the plan because it would have meant building a network of ground-based antennas, too. With 4G LTE, people in even the most remote regions can access email and internet on a cell phone alone.

Navigating the Stratosphere

Layers of stratospheric wind move in varying, but predictable, directions.

Ground engineers shift the balloon up or down through layers to steer it north, south, east, or west.

To lower the balloon, they trigger an on-board pump to draw in air, which is seven times denser than helium. To raise it, they release air.

Using algorithms based on National Oceanic and Atmospheric Administration wind-prediction data, they drive the balloon into the current that takes it where needed.

Muziris Heritage Project

The uniquely ambitious Muziris Heritage Project (MHP) is on the cusp of being revitalised.

About the Muziris Heritage Project:

The Government of Kerala has initiated the Muziris Heritage Project to reinstate the historical and cultural significance of the legendary port of Muziris.

The region is dotted with numerous monuments of a bygone era that conjure up a vast and vivid past.

The entire project is designed to involve and integrate the local community in all intended developmental initiatives.

This project stands at the very spot where an ancient port city by the name of Muziris stood, which many say dates back as early as 3000 BC.

A Tamil poem from the Sangam period describes the port, “Here lies the thriving town of Muchiri, where the beautiful large ships of the Yavana come, bringing gold, splashing the white foam on the waters of the Periyar, and then return laden with pepper. Here the music of the surging sea never ceases, and the great king presents to visitors the rare products of sea and mountain.”

As the quality of the spices from Muziris spread far and beyond the Indian Ocean, a stream of merchants kept flowing into Kerala and the port gradually became an unavoidable juncture in the ‘Spice Route.’ While spices were the major commodity traded, semi-precious stones were bartered as well.

Arabs in later periods kept the route to Muziris a secret and it was only in 40 AD that the Greek mariner Hippalus found a direct route to Kerala, after whom came the Romans

This region is also the hallmark for religious diversity of the country. One would find an ancient Hindu temple dedicated to Goddess Mahakali, in the same vicinity as the Cheraman Juma Masjid, India’s first Muslim mosque, a Jewish synagogue and the Marthoma.

The demise of Muziris as a developed urban center is believed to have occurred when a flood in the main Periyar River in the 14th century blocked water access to the port and changed the demographics to a great extent.

Mekadatu project Karnataka has decided to implement the Rs. 5,912 crore Mekedatu multi-purpose (drinking and power)

project that involves building a balancing reservoir across the Cauvery near Kanakapura in Ramanagaram district.

This project has been opposed by Tamil Nadu on the grounds that it violates the Cauvery tribunal order.

About the project:

The dispute between Karnataka and Tamil Nadu over the sharing of Cauvery waters is decades old. For many years, both the states have been maintaining differences over the sharing of water.

Karnataka intends to build a reservoir across river Cauvery near Mekedatu in Kanakapura taluk.

It was first proposed along with Shivanasamudra hydro power project at Shimsa in 2003 with an intention to use the water for a hydro power station and supply drinking water to Bengaluru city.

However, Tamil Nadu objected saying Karnataka had not sought prior permission for the project. Its argument was that the project would affect the flow of Cauvery water to Tamil Nadu.

Mekedaatu, located about 110 km from Bengaluru, could address the city's growing thirst in the near future .

Since it is for potable purpose, the government need not take approval from the ministry of environment and forests (MoEF) for this project.

It is estimated that after supplying 192 tmc ft water to Tamil Nadu as per the agreement between the two states, another 250 tmc ft water flows to Tamil Nadu, which further joins the sea.

The Karnataka government wants to tap this additional water and use it for drinking water needs of Bengaluru. It could either build one reservoir or two reservoirs with 25 tmc capacities each.

Border Wall

The Centre has given up its proposal to build a wall along the Pakistan border in Jammu, originally envisaged as a barrier to cross-border terror.

Analysis:

The wall proposal was opposed by Pakistan, which accused India of converting what it called a “working

boundary” into a “quasi international boundary.”

The Indian Army too opposed the embankment, saying it would pose hurdles for their forward movement during military operations.

Also, unlike the Line of Control, the International Border is densely populated and has fertile agrarian land. Not many people were willing to let go of their land.

The present system of border guarding continues to remain manpower intensive with a unit area of responsibility varying from about 25 km in Jammu to over 60 kms in Rajasthan and Gujarat.

India fenced and floodlit 461 km of Punjab’s border with Pakistan from 1988 to 1993. The 1,048 km Rajasthan-Pakistan border was fenced and floodlit by 1999.

Of the construction of 340 km of border roads and 137 km of link roads along Pakistan border in Gujarat sector sanctioned, 294 km of border roads and 136 Km of link roads had been completed till a few years back.

The challenges remained along the LoC in J&K and the unfenced 93 km of Rann of Kutch in Gujarat.

BSF had also proposed shifting of 23.380 km of fencing closer to the border in certain stretches of Ferozepur sector in Punjab due to the problems being faced by farmers in cultivating their lands.

A dozen laser walls are already installed in the India-Pakistan border in Punjab in areas prone to infiltration.

India has erected 407 km border fencing in J&K in areas where there is high threat but the gaps between posts can only be covered through patrolling or ambushes which spread the security forces thin on the ground and is not 100 percent foolproof despite best efforts especially in hours of darkness, fog and adverse weather.

Pakistan has been employing heavy cross-border firing to assist the infiltration and terrorists have also been using explosives to make gaps in the fencing or dig holes under the fence.

In addition, heavy snows buried the fence especially in north Kashmir and large portions are also destroyed annually because of avalanches.

There is no denying that we need ‘smart’ borders. We need to optimize the best technology. Abroad, solar panels, rechargeable batteries, and diesel generators support extensive floodlighting with enough power.

Operators pan and tilt the cameras remotely whenever any suspicious activity is observed. However, such arrangements are not feasible along active borders where Pakistan resorts to unprovoked firingy.

Modern electronic surveillance involves detection of movement, and is largely based on seismic, acoustic, inductive sensors, and infrared sensors.

Seismic sensors can distinguish between people and vehicles. Inductive sensors detect metal in an object that is moving, while IR sensors can detect human body heat from a distance of up to 100 metres.

The Unattended Ground Sensors (UGS) in use by the Army are mostly imported and primarily meant for guarding houses or premises. These are ineffective with snowfall and the DRDO has not been able to come up with one suitable for snow conditions

INTETRNATIONAL AFFAIRS

WHO Assessment on National Regulatory Authority of India

The National Regulatory Authority of India (NRAI) has been given the maximum ratings by global health body World Health Organisation for vaccine regulations.

National Regulatory Authority of India (NRAI) of India comprises the Central Drugs Standard Control Organisation (CDSCO), State Drug Regulatory Authorities, Pharmaco-vigilance Programme of India (PvPI) and Adverse Events Following Immunization (AEFI) structures at the Central and States levels.

WHO completed the assessment of the status of the Indian vaccine regulatory system against WHO NRA Global Benchmarking Tool (GBT) and measured the maturity of the system in India.

The assessment has been done in respect of 9 different functionalities and Indian NRA has been declared 'functional' with a maturity level of 4 which is the highest level as per currently evolved definitions in respect of 5 functions, and maturity level 3 in respect of 4 functions.

While, maturity level 4 indicates good results and sustained improvement trends, level 3 reflects systematic process based approach, early stage of systematic improvements, data availability regarding conformance to objectives and existence of improvement trends,.

Analysis:

India is one of the main players in the pharmaceutical industry worldwide. The pharmaceutical industry covers conventional as well as biological medicinal products including vaccines, medical devices, and traditional medicines. India, as a large vaccine producing country, is currently supplying several vaccines to the UN agencies (UNICEF, WHO and PAHO).

A fully functional NRA is a pre-requisite for WHO prequalification of vaccines. One of the requirements to become eligible and retain prequalification status is to have the National Regulatory Authority (NRA) assessed as functional against the WHO published NRA indicators.

WHO Prequalification Programme, as such, facilitates access to vaccines that meet the unified standards of quality, safety and efficacy as well as programme needs.

The vaccine manufacturers can only apply for WHO vaccine prequalification if the NRA meets the standards of the WHO NRA published indicators i.e. WHO Global benchmarking Tool on functional regulatory system for vaccines.

The nine functions included in the tool are National Regulatory System; Registration and Marketing Authorization; Vigilance; Laboratory Access and Testing; Regulatory Inspection; Clinical Trial Oversight; NRA Lot Release; Licensing Premises; and Market Surveillance and Control.

The Global Benchmarking Tool (GBT) so developed has 63 indicators and 288 sub-indicators, out of which 150 are critical with the following maturity level definitions:

This result reflects the growing maturity of the Indian NRA emanating from a concerted effort by the Government in consultation WHO to build capacity and capability of the National Regulatory Authority over last several years.

SCIENCE AND TECHNOLOGY

GraphAir Technology

Graphene is normally grown in a highly-controlled environment with explosive compressed gases, requiring long hours of operation at high temperatures and extensive vacuum processing.

But now, Australian CSIRO scientists have developed a novel “GraphAir” technology which eliminates the need for such a highly-controlled environment.

About technology:

GraphAir transforms soybean oil – a renewable, natural material - into graphene films in a single step.

GraphAir technology results in good and transformable graphene properties, comparable to graphene made by conventional methods.

With heat, soybean oil breaks down into a range of carbon building units that are essential for the synthesis of grapheme.

The technology grows graphene film in ambient air with a natural precursor, making its production faster and simpler.

This ambient-air process for graphene fabrication is fast, simple, safe, potentially scalable, and integration-friendly

This unique technology is expected to reduce the cost of graphene production and improve the uptake in new applications.

About Graphene:

Graphene, is a thin layer of pure carbon; it is a single, tightly packed layer of carbon atoms that are bonded together in a hexagonal honeycomb lattice. It is the thinnest compound known to man at one atom thick, the lightest material, the strongest compound discovered, the best conductor of heat at room temperature and also the best conductor of electricity known.

Uses of Graphene:

Ultra-fast charging of batteries.

Collection of radioactive waste for easier clean-up.

Faster flash memory.

Stronger and better-balanced tools and sporting equipment, such as tennis racquets.

Ultra-thin touchscreens that can be pasted onto a non-breakable material.

Graphene-based e-paper that can update with new information.

Quick and efficient biosensor devices, to measure blood glucose, cholesterol, and possibly your DNA

Headphones with phenomenal frequency response.

Supercapacitors that essentially make batteries obsolete.

Novel waterproof coatings.

Bendable batteries.

Stronger and lighter aircraft and armor.

Aiding tissue regeneration.

Purifying salt water into drinking water.

Bionic devices that can connect directly to your body's neurons.

ISRO launches 104 satellites in one go

The Indian Space Research Organisation (ISRO) has successfully launched a record 104 satellites into space on a single rocket from Sriharikota in Andhra Pradesh.

Its launch of 104 satellites from a single rocket was a world record most satellites launched at the same time from a single rocket.

The country that comes second to us in this aspect is Russia, who is far behind with a maximum of 37 satellite launches from a single rocket.

It is using the same rocket this time — the XL version of the popular Polar Satellite Launch Vehicle (PSLV), to push the boundaries of efficiency and effectiveness in space launches.

Main highlights of this launch:

India's Polar Satellite Launch Vehicle, in its thirty ninth flight (PSLV-C37), launches the 714 kg Cartosat-2 series satellite for earth observation and 103 co-passenger satellites together weighing about 663 kg at lift-off into a 505 km polar Sun Synchronous Orbit (SSO).

PSLV-C37 was launched from the First Launch Pad (FLP) of Satish Dhawan Space Centre (SDSC) SHAR, Sriharikota.

This was the sixteenth flight of PSLV in 'XL' configuration (with the use of solid strap-on motors).

The co-passenger satellites comprised of 101 nano satellites, one each from Kazakhstan, Israel, The Netherlands, Switzerland, United Arab Emirates (UAE) and 96 from United States of America (USA), as well as two Nano satellites from India. The total weight of all these satellites carried on-board PSLV-C37 was about 1377 kg.

The 101 International customer Nano satellites were launched as part of the commercial arrangements between Antrix Corporation Limited (Antrix), a Government of India company under Department of Space (DOS), the commercial arm of ISRO and the International customers.

PSLV-C37 also carried two ISRO Nano satellites (INS-1A and INS-1B), as co-passenger satellites. These two satellites carry a total of four different payloads from Space Applications Centre (SAC) and Laboratory for Electro Optics Systems (LEOS) of ISRO for conducting various experiments.

About PSLV:

PSLV is a four-staged launch vehicle with first and third stage using solid rocket motors and second and fourth stages using liquid rocket engines.

It also uses strap-on motors to augment the thrust provided by the first stage, and depending on the number of these strap-on boosters, the PSLV is classified into its various versions like core-alone version (PSLV-CA), PSLV-G or PSLV-XL variants.

FSSAI constitutes panel to identify nutritional gaps

The Food Safety and Standards Authority of India (FSSAI) has constituted a Scientific Panel on “Food Fortification and Nutrition” to take the food fortification program further.

What panel will do?

The Panel will identify critical nutritional gaps in the Indian diet in general as well as in specific target groups based on diet surveys and credible scientific evidence, define strategies to address nutritional needs of the general population and vulnerable groups, and review the standards for all suitable food fortifying vehicles,in addition to the healthy dietary intake of Fat, Sugar & Salt.

It will also address regulatory and related technological issues, review proposals from industry using modern risk assessment methods, and prescribe standard sampling and test methods for effective monitoring, surveillance and enforcement of the relevant regulations.

FSSAI had earlier brought “Food Safety and Standards (Fortification of Food) Regulations, 2016 which were operationalized at the National Summit on Food Fortification held in mid-October, 2016.

As a consequence of the National Summit, FSSAI has launched the Food Fortification Resource Centre (FFRC) to promote large-scale fortification of food across India.

What is food fortification?

Food fortification or enrichment is the process of adding micronutrients (essential trace elements and vitamins) to food.

Food fortification is a proven and effective strategy to meet the nutritional needs of a large number of people across various sections of the society, including the poor and underprivileged as well as the vulnerable, such as pregnant women and young children.

Fortification requires neither changes in existing food patterns, habits nor individual compliance.

It is socio-culturally acceptable and does not alter the characteristics of the food. It can be introduced quickly and can produce nutritional benefits for populations in a short period of time.

It is safe and cost effective, especially if advantage is taken of the existing technology and delivery platforms.

Food fortification reinforces and supports existing nutrition improvement programmes and is part of a broader, integrated approach to prevent micronutrient deficiencies, thereby complementing other approaches to improve health and nutrition.

About The Food Safety and Standards Authority of India (FSSAI)

It has been established under Food Safety and Standards Act, 2006 which consolidates various acts & orders that have hitherto handled food related issues in various Ministries and Departments.

FSSAI has been created for laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption.

FSSAI being the standard setting and regulatory body has taken a step in public health domain to address these and other vitamin deficiency-related Malnutrition Disorders through fortification of food.

Analysis:

Micronutrient Malnutrition Disorders are ubiquitously prevalent in all age groups of the population. According to National Family Health Survey (2006-07) and the World Bank (2006), about 70% preschool children suffer from iron deficiency anaemia and 57% preschool children have sub-clinical Vitamin A deficiency respectively.

As per the World Bank (2006), Iodine deficiency is endemic in 85 per cent of districts. Moreover, folate deficiency which leads to Neural Tube Defects (NTDS) are the most common congenital malformation in Indian context with an incidence that varies between 0.5-8/1000 births. It is estimated that 50-70% of these birth defects are preventable.

‘Thubber’

Engineers have developed a thermally conductive, stretchable rubber (dubbed “thubber”) that could open new doors in the pursuit of flexible electronics.

About Thubber:

Thubber is a soft-matter material that consists of liquid metal micro droplets embedded within a deformable silicon elastomer.

This composite nature allows thubber to achieve its dual properties of high elasticity and metal-like thermal conductivity, as the liquid metal can deform along with the surrounding rubber to maintain pathways for heat dispersion.

Normally if material is stretchier then it will have less thermal conductivity. But in the case of thubber, this constraint is bypassed because the thermal conductivity of the liquid metal droplets is dominated by electrons, not phonons, and the droplets can deform with the surrounding matter.

In this way, thubber demonstrates an unprecedented balance of thermal and mechanical properties

Thubber can stretch to over six times its initial length, while achieving a thermal conductivity of up to fifty times the base polymer alone.

Despite the liquid metal droplets, thubber is also electrically insulating.

Applications:

The fields of soft robotics and flexible electronics are growing, and the need for thubber-like materials will grow as well.

Its Applications could extend to industries like athletic wear and sports medicine — think of lighted clothing for runners and heated garments for injury therapy.

Advanced manufacturing, energy, and transportation are other areas where stretchable electronic material could have an impact.

IAF inducts indigenous early warning system NETRA

The IAF has formally inducted the first indigenously built Airborne Early Warning and Control System Netra.

About airborne early warning and control system (AEW & CS) and its use:

The AEW & CS system is developed for detection and tracking, identification and classification of threats, guidance and interception control, display of air situation picture and multisensor data integration.

It is developed by DRDO in collaboration with CAB (Centre for Airborne Systems) that provides an airborne surveillance system.

The system enables the armed forces to communicate with fighter jets and other AEW&C assets, while it also allows for Search and Rescue (SAR) operations, mission planning as well as record and replay for post mission analysis.

The modified aircraft has additional power unit to power onboard mission systems. It can also support the in-flight re-fuelling system for extended endurance of the mission.

Two radiating planar arrays are mounted above the fuselage of the EMB-145 to provide 240° coverage. The arrays are fixed in back-to-back arrangement in an active antenna array unit (AAAU).

The AAAU is designed to fit 10x2 antenna array panels, 160 Transmit Receive Multi Modules (TRMM) and all the supporting devices, including power supply units and control units. Each TRMM is made of eight compactly fused transmit receive modules to ensure high density installation of 160 TRMMs.

The Government of India approved the AEWCS programme after the Indian Air Force (IAF) and Defence Research and Development Organisation (DRDO) jointly studied the feasibility of the AEWCS. Three EMB-145s were ordered by the Indian Government. The indigenous radar system of the DRDO was integrated after the aircraft was modified accordingly.

The first aircraft AEW&C platform developed for India was unveiled at Embraer's headquarters in São José dos Campos in February 2011. The fully modified aircraft equipped with Active Electronic Scanning Array (AESA) radar and other electronic payloads made its first flight in December 2011 at Embraer's facilities. It incorporated more than 1,000 mission system components manufactured by DRDO.

Embraer delivered the first fully modified EMB-145 aircraft to accommodate the Indian AEWCS in August 2012. The company delivered two of three modified EMB-145s to DRDO in 2012. The two aircraft were installed with the native AEW&C system for mission system testing.

Mission system control (MSC)

Mission system control (MSC) is the brain of the AEW&C system, as it incorporates all the data from sensors and other systems to control the whole system. It assesses threats using data received from the on-board sensors and other sources, and presents the Air Situation Picture (ASP).

It manages the whole communication system of the AEW&C system. The MSC can record the data and play back the same for conducting mission analysis. The Intercept Control Segment (ICS) integrated into the MSC will carry out recovery operations by guiding interceptors and vector strike aircraft.

Spitzer Space Telescope

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star.

Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water.

The discovery sets a new record for greatest number of habitable-zone planets found around a single star outside our solar system.

All of these seven planets could have liquid water – key to life as we know it – under the right atmospheric conditions, but the chances are highest with the three in the habitable zone.

Seven Earth-sized planets have been observed by NASA's Spitzer Space Telescope around a tiny, nearby, ultra-cool dwarf star called TRAPPIST-1. Three of these planets are firmly in the habitable zone.

At about 40 light-years (235 trillion miles) from Earth, the system of planets is relatively close to us, in the constellation Aquarius. Because they are located outside of our solar system, these planets are scientifically known as exoplanets.

About Spitzer Space Telescope:

NASA’s Spitzer Space Telescope was launched in 2003 to study the universe in the infrared. It is the last mission of the NASA Great Observatories program, which saw four specialized telescopes (including the Hubble Space Telescope) launched between 1990 and 2003.

The goal of the Great Observatories is to observe the universe in distinct wavelengths of light. Spitzer focuses on the infrared band, which normally represents heat radiation from objects. The other observatories looked at visible light (Hubble, still operational), gamma-rays (Compton Gamma-Ray Observatory, no longer operational) and X-rays (the Chandra X-Ray Observatory, still operational.)

Spitzer’s highly sensitive instruments allow scientists to peer into cosmic regions that are hidden from optical telescopes, including dusty stellar nurseries, the centers of galaxies, and newly forming planetary systems.

Spitzer’s infrared eyes also allows astronomers see cooler objects in space, like failed stars (brown dwarfs), extrasolar planets, giant molecular clouds, and organic molecules that may hold the secret to life on other planets.

QUICK FACTS

First state to announced a total ban on polythene bags in the state- Madhya Pradesh

First Northeast State to Implement e-Cabinet Solution- Arunachal Pradesh

Global conference on Nuclear Terrorism held at – New Delhi

International Spice Conference held in - Thiruvananthapuram.

UNESCO Natural Heritage Festival was held - at Great Himalayan National Park (GHNP) in Sairopa, Himachal Pradesh

India ranks in economic freedom index- 143rd

World Day of Social Justice was observed globally on - 20 February

Newly appointed High Commissioner of India to Rwanda - Ravi Shankar

Vyas Samman-2016 has been conferred to - Surendra Verma