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August 14th, 2024 Current Affairs
Ministry of Coal Unveils Ambitious Plan to Boost Coal Production Through Global Mining Operators
Key Highlights:
Objective: Boost coal production, reduce import reliance, and introduce advanced technology through Mining Developers cum Operators (MDOs).
Project Scope:
- Initially 15 projects (~168 MT capacity).
- Expanded to 28 projects (~257 MT capacity).
Current Status: 18 mines awarded to private parties.
MDO Responsibilities:
- Manage excavation, extraction, and delivery.
- Handle Rehabilitation and Resettlement (R&R), land acquisitions, and environmental clearances.
Contract Duration: 25 years or life of the mine.
Impact: Enhanced production, operational efficiency, and energy security.
Scenario of India’s Mining Sector:
- Indian mining industry is characterized by a large number of small operational mines.
- The number of mines which reported mineral production (excluding minor minerals, fuel minerals and atomic minerals) in India was 1319 in 2021-22 as against 1375 in the previous year.
- Out of 1319 reporting mines, 263 were located in Madhya Pradesh followed by Gujarat (147), Karnataka (132), Odisha (128), Chhattisgarh (114), Andhra Pradesh (108), Rajasthan (90), Tamil Nadu (88), Maharashtra (73), Jharkhand (45), and Telangana (39).
- These 11 States together accounted for 93% of total number of mines in the country in the year 2021 -22.
India’s Scope in Mining Sector:
- India ranks 4th globally in terms of iron ore production and is the world''s 2nd largest coal producer as of 2021.
- Combined Aluminium production (primary and secondary) in India stood at 4.1 MT per annum in FY21 becoming the 2nd largest in the world.
- In 2023, the mineral’s demand is likely to increase by 3%, driven byexpanded electrification and overall economic growth in India.
- India holds afair advantage in production and conversion costs in steel and alumina. Its strategic location enables export opportunities to develop as well as fast-developing Asian markets.
Status of some of the major mined minerals in India are the following:
- Coal Production: India is the second largest producer of coal. The All India production of coal stood at 777.31 MT (P) in 2021-22. Coal India Limited, a PSU engaged in the extraction of coal, is the world’s largest coal producer today.
- Iron Ore Production: India is among one of the largest iron ore producers in the world. National Mineral Development Corporation (NMDC) is among one of the largest iron ore producers in India.
- Major Minerals Extraction: India is one of the largest producers of chromium, bauxite, zinc, manganese, lead
Major Challenges in Exploring India’s Mining Potential:
- Regulatory Hurdles:
- Indian law does not let a miner own a mining lease beyond 10 km2in area for a mineral in a state.
- Although that limit has been expanded by some states, at the Union level, this limit restricts major companies from participating in auctions.
- Inadequate Mineral Exploration:
- Another crucial obstacle is the lack of adequate mineral exploration. India’s expenditure on exploration,particularly for deep-seated minerals like copper, zinc, lead, gold, silver, etc, has been abysmally low.
- Highly Import Dependent:
- Lack of exploration and a weak focus on mininghas seen India’s import bill for minerals and metals touch $157 billion in 2021-22, about 1/4th of the total imports.
- Double Taxation:
- Minerals like iron ore and bauxite also face a problem of double taxation inthe form of royalty on royalty.
- As royalty is payable on the average sale price (ASP)and the law does not allow any deduction of royalty from it, mineral users end up paying royalty on royalty, which dents their cost competitiveness.
Way forward:
- Increase Exploration-Expand exploration beyond the current 10% of India’s landmass to uncover more mineral resources.
- Strengthen Mining Regulations and strict implementation-There is a need for robust environmental, labour, and land laws to regulate mining and prevent exploitation. Stringent implementation of mining-related rules is needed especially regarding the ban on Rat-Hole and unscientific mining to prevent mine-related accidents.
- Transparency in allocations: Transparency in block allocations and rule-based order should be established. Technology should be used for a better way of mineral exploration and surveillance systems.
- Ensure minimal damage to society and environment: Proper environmental impact assessment (EIA) and social impact assessment (SIA) must be conducted before allocating the projects. Proper rehabilitation of the displaced population, the tribal rights need to be respected in accordance with the law.
India Celebrates First National Space Day on August 23
Key Highlights:
- National Space Day: Prime Minister Narendra Modi had declared August 23 as "National Space Day".
- Theme of Celebration: The theme for the first National Space Day is “Touching Lives while Touching the Moon: India’s Space Saga.”
- Events and Celebrations: A range of events will be held leading up to National Space Day, showcasing India’s space achievements and their societal impacts. These events will culminate in a main celebration in New Delhi on August 22-23.
- ISRO’s Contribution: M Sankaran, Director of the U R Rao Satellite Centre, highlighted the significance of the space program in advancing technology and improving lives, emphasizing the ongoing relevance and future potential of India’s space endeavours.
History of National Space Day
To commemorate the successful launch of the Chandrayaan-3 Mission and the soft landing of the Vikram Lander, along with the deployment of the Pragyaan Rover on the Moon on August 23, 2023, the Government of India has declared August 23rd as “National Space Day” to be observed annually. This achievement places India among the elite group of spacefaring nations, becoming the fourth country to land on the Moon and the first to land near the lunar south pole.
Chandrayaan-3 Programme
About:
- Chandrayaan-3 is India''s third lunar mission and second attempt at achieving a soft landing on the moon''s surface.
- On July 14, 2023, Chandrayaan-3 took off from the Satish Dhawan Space Centre in Sriharikota. The spacecraft seamlessly entered lunar orbit on August 5, 2023. The historic moment unfolded when the lander made a successful touchdown near the Lunar south pole on Aug 23, 2023.
Components:
- The Propulsion Module:It will carry the lander and rover configuration till 100 km lunar orbit. This propulsion module has Spectro-polarimetry of Habitable Planet Earth (SHAPE) payload to study the spectral and Polari metric measurements of Earth from the lunar orbit.
- The Lander Module: The Lander Module (Vikram) is carrying a scientific payload that includes a suite of instruments to study the lunar surface and atmosphere Chandra’s Surface Thermophysical Experiment (ChaSTE) to measure the thermal conductivity and temperature; Instrument for Lunar Seismic Activity (ILSA) for measuring the seismicity around the landing site; Langmuir Probe (LP) to estimate the plasma density and its variations. A passive Laser Retroreflector Array from NASA is accommodated for lunar laser ranging studies.
- The Rover Module: The Rover Module (Pragyan) is carrying a suite of instruments to study the lunar surface and subsurface which includes Alpha Particle X-ray Spectrometer (APXS) and Laser Induced Breakdown Spectroscopy (LIBS) for deriving the elemental composition in the vicinity of landing site.
Kiren Rijiju & George Kurian Launch Haj Application 2025 & Jiyo Parsi Scheme Portal
Key Highlights:
Haj Quota and Application:
- Quota: Saudi Arabia has allotted India a quota of over 1.75 lakh Haj pilgrims for Haj-2025.
- Application Process: Haj applications can now be submitted via the Haj Suvidha App and the Haj Committee of India''s website.
Reforms in Haj Administration:
- Ladies without Mehram (LWM): For the first time, Muslim women aged 45 and above can perform Haj without a male companion.
- Statistics: 4,558 women performed Haj under the LWM category in 2024, marking an all-time high.
Jiyo Parsi Scheme Portal:
- Purpose: Provides financial assistance to the Parsi community through Direct Benefit Transfer (DBT).
- Call to Action: Eligible Parsi couples are encouraged to take advantage of the scheme.
Jiyo Parsi Scheme
- The Ministry of Minority Affairs initiated the Jiyo Parsi Scheme in 2013 to check the declining Parsi population.
- The main objectiveof the scheme was to arrest the declining trend of the Parsi population by adopting a scientific protocol and structured interventions, in order to stabilize their population and thereby increasing the population of Parsis in India.
The scheme comprises of three components:
- Advocacy Componentthat includes workshops, advertisement campaigns to create awareness, etc.,
- Health of the Community Componentwhich covers Childcare and Creche support, assistance to elderly, etc.
- Medical Componentincludes financial assistance for the detection and treatment of infertility, fertility treatment, etc.
- The scheme also offers cash assistance to encourage Parsi couples to have children. The scheme is applicable to all couples, irrespective of their financial status.
- This has resulted in 214 births over the last five years through assisted reproductive techniques(ART).
- This is a 100% Central Sector Scheme.
About Parsis:
- Parsi are a group of followers in India who follow the Zoroastrianism. The religion was founded by Prophet Zoroaster (or Zarathustra).
- According to the Union Ministry of Minority Affairs, the population of Parsis has declined from about 114,000 in 1941 to 57,264 in 2011.
- Maharashtra has the highest Parsi population in the country followed by Gujarat.
- Infertility and late marriages are among the main reasons for the rapid decline in the Parsi population.
Hajj Pilgrimage
- The Hajj is a religious pilgrimage to the holy city of Mecca in Saudi Arabia that is mandatory for all able-bodied Muslimswho can afford it. It is one of the Five Pillars of Islam and is considered a central part of Muslim religious life.
Five Pillars:
- Shahada (Faith): The declaration of faith in the oneness of God and the acceptance of Muhammad as God''s prophet.
- Salah (Prayer):Performing the five daily prayers facing the Kaaba in Mecca.
- Zakat (Charity):Giving a portion of one''s wealth to those in need.
- Sawm (Fasting):Fasting during the month of Ramadan.
- Hajj (Pilgrimage):Making a pilgrimage to the holy city of Mecca at least once in a lifetime if one is physically and financially able.
- The Hajj takes place during the Islamic month of Dhu al-Hijjah and involves several rituals.
Flood Watch India 2.0
The Union Ministry of Jal Shakti has launched Version 2.0 of the ‘Flood Watch India’ mobile application.
Flood Watch India:
- It gives information related to the flood situation and forecasts up to 7 dayson a real-time basis to the public.
- The in-house developed user-friendly app has readable and audio broadcastand all the information is available in 2 languages, viz. English and Hindi.
- Another feature of the app includes real-time flood monitoringwhere users can check up-to-date flood situations throughout the country.
- It utilizes near real-time river flowdata from various sources.
- It also provides flood forecasts at the nearest location where users can check the flood advisory at the station nearest to them on the Home Page itself.
- The app will also provide State-wise/Basin-wise Flood Forecast(up to 24 hours) or Flood Advisory (up to 7 days) which can be accessed by selecting specific stations, state wise or basin wise from the dropdown menu.
New features in Flood Watch India 2.0
- Version 2.0 expands the number of flood monitoring stations from 200 to 592, providing more detailed flood forecasts.
- The app now includes data on the storage levels of 150 major reservoirs, aiding in flood risk assessment for downstream areas.
- Advanced technologies such as satellite data analysis, mathematical modeling, and real-time monitoring are utilized to deliver accurate forecasts.
India & US Sign MoU to Promote Cooperation on Small & Medium Enterprises
Key Highlights of the MoU:
- Parties Involved: Ministry of MSME (India) and SBA (USA).
- Purpose: Promote cooperation and dialogue on MSME issues.
Key Areas:
- Exchange of expertise on improving MSME global participation.
- Joint programs for women entrepreneurs.
- Facilitate trade partnerships between women-owned small businesses.
India’s MSME Sector
- MSME stands for Micro, Small and Medium Enterprises.MSMEs are businesses that produce, process, and preserve goods and commodities.
- These are broadly classified based on their investment in plant and machinery for manufacturing or equipment for service enterprises, as well as their annual turnover.
MSME Regulation in India:
- In 2007, the Ministry of Small-Scale Industries and the Ministry of Agro and Rural Industries merged to form the Ministry of Micro, Small, and Medium Enterprises.
- This ministry develops policies, facilitates programs, and monitors implementation to support MSMEs and aid in their growth.
Significance of MSMEs
- Contribution to GDP and Exports: In 2020-21, MSMEs accounted for 26.8% of Gross Value Added (GVA). The contribution of MSMEs in exports stood at 42.6% (April 2022-August 2022). The contribution of Manufacturing MSME Gross Value Added (GVA) contributed 38.4% of India’s total Manufacturing GVA (2020–21).
As Indian economy is poised to reach US$ 5 trillion status, the Ministry of MSME has set a goal of increasing its contribution to GDP to 50% by 2025.
- Rural Development: 51% of MSMEs are located in rural areas. In contrast to large corporations, MSMEs have aided in the industrialization of rural areas at a low capital cost. The sector has made significant contributions to the rural socioeconomic growth while also supplementing major industries.
- Creation of Employment: MSMEs are India’s largest employer outside of agriculture. They employ over 11.1 crore people, or 45% of all workers, and have low capital and technology requirements. MSMEs are key to the Make in India mission.
- Simple Structure: Given India’s middle-class economy, MSMEs offers the flexibility of starting with limited resources under the owner’s control. As a result, making decisions becomes easier and more efficient. A large corporation, on the other hand, requires a specialist for every departmental function due to its complex organisational structure.
- Innovation Promotion: They support local resource mobilisation, capacity building, industrial development in rural areas, and give aspiring entrepreneurs a chance to develop innovative products. It has enormous potential for connecting India’s MSME base with large corporations. Multinational corporations are increasingly purchasing semi-finished and auxiliary products from small businesses.
- Social Inclusion: According to the Annual Report of The Ministry of MSMEs (2021-22), the socially backward groups owned almost 66.27% of MSMEs. In rural areas, almost 73.67% of MSMEs were owned by socially backward groups.
Challenges in MSME
- Financial Constraint: Smaller firms and businesses in the Indian economy have always faced financial challenges, which poses a significant hurdle for both businesses and the MSME sector. However, it is even more concerning that only 16% of SMEs can obtain timely finance, leaving small and medium firms reliant on their resources.
- Lack of Innovation: Indian MSMEs lack innovation, with many products relying on outdated technologies. The sector lacks sufficient entrepreneurs, hindering the adoption of new technologies and tools. Consequently, MSMEs struggle with outdated technology and lower productivity levels compared to larger firms.
- The dominance of Small Firms: Micro and small businesses make up over 80% of MSMEs, making it difficult to access government initiatives such as emergency lines of credit, stressed asset relief, equity participation, and fund of funds operations due to communication gaps and limited awareness.
- Lack of Formalization Among MSMEs: Many MSMEs lack formal registration, contributing to the credit gap. Approximately 86% of manufacturing MSMEs in the country remain unregistered, and only around 1.1 crore MSMEs are currently registered under the Goods and Services Tax.