Mar 21, 2022

WILL THE WAR IN UKRAINE RATTLE INDIA’S BANKS? S&P Global earlier this week forecast that banks in India would face ‘headwinds’ as a fallout of the Russia-Ukraine conflict. The rating agency flagged rising inflation and borrower ‘stress’ that could affect companies’ ability to fully pay back loans. War in eastern Europe affect India?
  • The war has impacted the production and movement of a wide range of raw materials and commodities.
  • Ukraine, for instance, is the main source of sunflower oil imported into India. Supplies have naturally been hit and are bound to further push up the retail prices of edible oils.
  • The conflict has also forced Ukraine to shut two neon factories that account for about 50% of the global supply needed in the manufacture of semiconductors. As semiconductors become scarcer, user industries bear the brunt.
  • Already, the global chip shortage has led to the waiting period for delivery of new premium cars in India being extended to several months.
  • And with major carmakers having reported declines in sales for January and February, the profit outlook for these companies and their component suppliers looks significantly clouded.
  • The domino effect on the automobile and other industries’ supply chains could impair the ability of businesses, especially medium and small enterprises, to fully service their loans.
What are the other factors that may undermine a company’s ability to repay loans?
  • Oil has been on the boil ever since Russia invaded Ukraine on February 24. After zooming to $139 a barrel near historical highs Brent crude prices were at the $106 level as of Friday.
  • With India’s state-run oil marketing firms certain to raise the retail prices of petrol and diesel sooner than later, the higher cost of transportation is bound to feed into prices of goods from agricultural produce to raw materials for factories and to finished products headed to store shelves, thus quickening inflation across the board.
  • Higher input costs for manufacturers and service providers would leave them in a tough spot as they would have to choose between passing on the price increases to consumers thus risking the already tenuous demand and hurting their profitability if they opt to absorb the impact. Here again smaller businesses, that are most dependent on bank credit, are bound to be hit the hardest.
  • If the war in Europe is prolonged, Indian banks could end up facing delays in the repayment of loans or possibly even having to write them off as ‘bad’.
  • Separately, with the dollar benefitting from a global flight to less risky assets, as well as the start of the U.S. Federal Reserve’s calibrated monetary tightening to rein in inflation from a 40-year high in the world’s largest economy, the rupee is expected to weaken against the U.S. currency.
  • With the exchange rate impacted, importers would have to shell out more rupees for the same dollar value of imports than before. Unless demand expands, allowing them to sell more, a weaker local currency eats into their profits, leaving them with lesser cash available to service loans.
  • Official data for February show that overall goods imports are growing faster than exports compared with a year earlier, widening the current account deficit (CAD).
  • Widening CAD is likely to cause the rupee to weaken further to 77.5 to a dollar by March 2023, from 75, Crisil Ratings said on March 17.
  • Rising inflation, which is already just beyond the RBI’s 6% upper tolerance limit, may nudge the central bank into raising benchmark interest rates. This means more interest will have to be paid by companies that would likely face the prospect of lesser profit.
  • Earlier this month, India Ratings said that the increase in commodity prices could result in a stretched working capital cycle for small and medium enterprises, weakening their debt servicing ability.
Why is the situation particularly worrying for Indian banks?
  • India’s lenders had already been struggling to cope with an overhang of non-performing assets or bad loans even before the pandemic severely hurt overall economic momentum.
  • In its Financial Stability report for December 2021, the RBI warned that from a Gross Non-Performing Asset Ratio of 6.9% in September 2021, commercial banks were likely to see the metric rise to 8.1% in a baseline scenario, and possibly soar to 9.5% under a ‘severe stress’ situation by September 2022.
OUR WEAK EDUCATIONAL OUTCOMES HAVE A WIDE SET OF SOCIETAL CAUSES The education sector suffers such neglect that we may need to recalibrate our expectations from it. Why are children not learning what they should in school’ and explored the basics of the reasons relating to children, teachers, and then to the education system. Governance and administrative culture in India
  • Education does not get the importance that it deserves. Quick-fire welfare measures or high-visibility infrastructure projects are favoured over education, perhaps in the belief that this is what gets votes or plaudits. This low prioritization of education manifests itself in budget allocations, human resources and more.
  • There is a widespread failure to recognize that education is a matter of deep expertise, even more so than economics. But unlike the economic realm, too often key decisions on education are taken by people who have almost no background in the field. These are some of our top officials and politicians. The advice of professional educators is undervalued, or worse, ignored. There have been (and are) high-level officers and politicians with deep education sensibilities, but largely as exceptions.
  • Improvement in education requires continuity of direction and action. Most educational interventions would take 10 -15 years before they show any sign of real success. However, our governance culture is such that priorities and directions are changed rapidly. Education, which is a matter of inter-generational change, just can’t improve with this kind of instability.
Socio-political trends that have pulled back progress in education
  • From the early 1990s, the notion that the private sector would solve all our problems took hold of our public imagination.
  • This is plainly false. Now that over 30% of India’s children in the past 20 odd years have started going to private schools and learning levels have continued to drop, at least that fixation has eased. However, we have lost two decades at the altar of market fanaticism.
  • The notion that technology will somehow cure all our ills has infected us. With tragic learning losses during the pandemic, even the most enthusiastic votaries of technology and online learning have quietened down. Decades of global experience and research have demonstrated the cul-de-sac that techno holism leads to. But still, too much of our limited resources and energy has got diverted and distracted.
  • The effect of sharp and deep inequalities in India over everything cannot be overestimated. In education, it has a very direct and simple implication.
  • The children of the well-to-do attend elite well-resourced schools, with access to more than enough support at home. They have no problems in learning.
  • But the vast majority of children in our unequal country go to schools that might as well be on a different planet. Thus, the well-off, who control or influence the levers of power, have no personal stake in nor any exposure to the reality of most Indian lives.
  • It is this mental landscape of those in power that informs decision making and prioritization. This is a very serious limitation.
  • And lastly, there is no escape from poverty in our country. It shackles and limits learning in many ways.
  • Poverty means poor nutrition for children. Not only does it undermine their physical and social development, including their neurological responses, it also has day-to-day implications.
  • Hungry children, which is unfortunately the state of too many, cannot concentrate in the classroom.
  • A malnourished child falls ill frequently and can’t attend school. Education is not the only cause of this tragic phenomenon. One has to just observe the wasting of our children because of poor nutrition. We are truly wasting the future of our nation.
  • Poverty ensures that children do not have the same kind of adult support and care at home as in middle-class families.
  • Not because their parents and grandparents love them any less, but simply because the adults are struggling to make a livelihood. Such adult care and contact are critical for learning.
  • Homes in poverty do not have resources that support and create an environment for learning. Their adults themselves are often inadequately educated and they are short of books, other learning material and time.
  • The list of such societal factors is much longer mores that force girls out of school, caste-based discrimination, and so on.
Road Ahead:
  • We have become a society where we think that the path to all progress and development is through education. Both individuals and of overall society. Education has become our panacea. Despite such expectations, we continue to treat education and educators poorly. Without a fundamental transformation of our societal treatment of education, it simply cannot serve even a fraction of the role we expect it to.
  • We need to re-calibrate our expectations from education. Good education is foundational to a strong economy, good society and vibrant democracy. Yet, while good education is a necessary condition for all this, it’s not a sufficient one.
INDIA’S ARCTIC POLICY: BUILDING A PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT India’s Arctic Policy, released by the Government of India on 17 March 2022, fulfils a longstanding need for a clear articulation on a rapidly transforming Arctic, which is warming three times faster than the rest of the world.
  • This is leading to major transformation of global shipping routes and increased availability of mineral and hydrocarbon resources, both of which are likely to have an immense impact on the geo-political and resources landscape of the world, including India, in the coming years.
  • This Issue Brief examines the need for an Arctic Policy for India; looks into the gaps in India’s present engagement in the Arctic; and analyses the features of the India’s Arctic Policy released recently.
The relevance of Arctic for India Scientific Research, Climate Change and Environment
  • Monsoons: The changes occurring in the Arctic are yet to be understood fully, but it is clear that they have been impacting global weather, climate and ecosystems including the monsoons in India.
  • During the monsoons, India receives over 70 per cent of its annual precipitation. India’s agriculture, which is the primary source of livelihood for about 58 per cent of India’s population and contributes around 20 per cent to the GDP is directly dependent on monsoons.
  • Rising Sea Level: From 1971 till 2019, the Arctic snow cover and the extent of Arctic Sea ice have shrunk by 21 per cent and 43 per cent respectively, and all regions of the Arctic experienced net loss of land ice.
  • This land ice loss in the Arctic is a major contributor to global sea-level rise6 and it can have a significant impact on India, especially over its 1,300 island territories and maritime features.
  • Himalayas: The Arctic and the Himalayas, though geographically distant, are interconnected and share similar concerns. The Arctic meltdown is helping the scientific community to better understand the glacial melt in the Himalayas, which has often been referred to as the ‘third pole’ and has the largest freshwater reserves after the North and South poles.
  • They are also the source of main rivers of India, including the Ganga and Brahmaputra, the basins of which support a population of about 600 million and 177 million respectively8 and generate over 40 per cent of India’s GDP. The study of Arctic is therefore critical to Indian scientists.
Economic and Human Resources
  • Mineral Resources and Hydrocarbons: The Arctic region has rich deposits of coal, gypsum and diamonds and also substantial reserves of zinc, lead, placer gold and quartz.
  • Greenland alone possesses about a quarter of the world’s rare earth reserves. The Arctic also contains a wealth of hydrocarbon resources.
  • A US Geological Survey (USGS) appraisal of the Arctic estimated that the region “may constitute the geographically largest unexplored prospective area for petroleum remaining on Earth” amounting to 30 per cent of the world’s undiscovered natural gas and 13 per cent of the world’s undiscovered oil.
  • With the increasing ice-melt, these resources are becoming more accessible and feasible for extraction.
  • India is the third-largest energy-consuming country in the world, the third-largest oil importer (83 per cent) and the fourth-largest importer of gas which caters to almost half of the total gas consumption.14 India’s gas mix in the energy basket amounts to only 6 per cent, which is among the lowest in the world, compared to the world average of 24 per cent.
  • This is targeted to be scaled up to 15 per cent by 2030.Arctic can therefore potentially address India’s energy security needs and deficiency of strategic and rare earth minerals.
Geopolitical and Strategic
  • China: The melting Arctic ice is also raising the geopolitical temperatures to levels not seen since the Cold War. In January 2018, China’s White Paper on Arctic policy called itself a ‘Near-Arctic State’.  It also referred to trans-Arctic shipping routes as the Polar Silk Road, identifying it as a third transportation corridor for the Belt and Road Initiative (BRI).
  • China’s assertion has been highly contested by the US,18 which has demolished China’s locus standi in the Arctic declaring that “there are only Arctic States and Non-Arctic States. No third category exists, and claiming otherwise entitles China to exactly nothing”.
  • China has made significant investments in the Arctic, primarily in infrastructure and energy sectors, to the tune of US$ 90 billion, between 2012 and 2017,20 and is the only country apart from Russia, to be constructing nuclear ice-breakers.
  • Russia: Russia accounts for almost half of the Arctic in terms of area, coastline, population, mineral wealth and hydrocarbons. Even though the Russian Arctic houses just 1.5 per cent of Russia’s population, its contribution to the country’s GDP is 15 per cent, and 20 per cent to its exports.
  • Russia could be said to have the most at stake in the Arctic in absolute terms. Facing sanctions, Russia is soliciting funding and collaboration for developing infrastructure in the Arctic and the Northern Sea Route (NSR). Russia considers parts of NSR to be internal waters, regulates transit of merchant ships and restricts passage of foreign warships, which is being opposed by the US.
  • The opening of the shipping routes and possibilities of increased resource extraction is leading to the big three—US, China and Russia—and NATO, jockeying for position and influence in the region.  In 2018, Russia and NATO conducted Exercise Vostok22 and Trident Juncture respectively, their largest since the Cold War. 
  • While the former witnessed participation by China, the latter comprised all 29 NATO members (at that time) plus Sweden and Finland and included the first deployment of a US Navy aircraft carrier above the Arctic Circle since 1991.24 In May 2018, US re-established the 2nd Fleet, which was created in 1950 (and disestablished in September 201125) for countering Soviet naval forces in the North Atlantic.
  • Boundary Disputes: Apart from the strategic contestation, there are unresolved boundaries between the Arctic States.27 For instance, US has continental shelf overlap with Canada and Russia, while Russia and Canada themselves have differing continental shelf claims.
  • US and Canada have not yet delimited their maritime boundaries and they also have differences over North West Passage, part of which Canada considers (like Russia for NSR) as its internal waters.29 Also, Canada and Denmark have a dispute over Hans Island.
Gaps in India’s Approach
  • Lack of an Articulated Policy: Even though the Ministry of External Affairs (MEA) of the Government of India has listed India’s interests in the Arctic to be “scientific, environmental, commercial as well as strategic”, till recently India was one among the four of the 13 Observer nations of the Arctic Council that did not have a nationally articulated Arctic Policy.
  • Scientific Orientation: India needs to go beyond the purely scientific approach in the Arctic. In keeping with its growing stature and consequent say in world affairs, India ought to be better equipped to understand the dynamics of the Arctic geopolitics and governance.
  • Inadequate Funding: Presently, India’s polar research, for Antarctic, Arctic, Southern Ocean and Himalayas, is budgeted under the umbrella Polar Science and Cryosphere (PACER) programme of the Ministry of Earth Sciences (MoES).
  • The total financial allocation (BE) under the PACER programme for the financial years 2018–19, 2019–20 and 2020–21 was Rs 365 crores.33 Considering that India’s Antarctic Programme is about five times bigger34 than its Arctic programme, it is estimated that allocations for the Arctic are nearing Rs 10–15 crores per year.
  • Polar Research Vessel (PRV): The lack of a dedicated PRV is considered to be a serious impediment in the growth of India’s polar activities. On 29 October 2014, India’s Cabinet Committee on Economic Affairs, had approved the acquisition of a PRV at a cost of Rs 1,051.13 crore within 34 months.35 The vessel is yet to see the light of the day.
  • The strategic importance of India’s presence in the Arctic, and the impact of scientific research carried out there, for the nation, has been acknowledged by the Parliamentary Standing Committee on Science and Technology, Environment, Forests and Climate, in 2021.
  • It also noted China’s investment in these regions and asked the MoES to “prepare a realistic plan for its expansion in the next five years, including capital expenditure for the acquisition of polar research vessel”.
  • Whole-of-Government Focus: Presently, the National Centre for Polar and Ocean Research (NCPOR), under the MoES, is the nodal agency for India’s polar research programme, which includes Arctic studies. The MEA provides the external interface to the Arctic Council through the United Nations Economic & Social (UNES) Division.
  • However, the eight countries of the Arctic Council are divided between the Americas, Eurasia and Central Europe Divisions, possibly preventing a region-wide focus to the fast-changing geo-physical and geopolitical Arctic landscape. Further, there is no nodal body to coordinate all the activities of the Government of India relating to the Arctic region.
  • Awareness and Capacity: Arctic has largely been ignored in India on the ground that it is far away and does not have a direct impact on India. This has resulted in a lack of national capacity on Arctic issues.
  • As Arctic opens up, India needs to expand domestic capability and capacity by building a wide-ranging institutional base on Arctic maritime, legal, environmental, social, policy and governance issues.
  • This can only happen through the introduction of Arctic-related curriculum in our education system at all levels. India’s engagement with the Arctic needs to be built on sound augmentation of its domestic capacity.
India’s Arctic Policy
  • India’s Arctic policy titled “India’s Arctic Policy: Building a Partnership for Sustainable Development. The Policy is divided into eight chapters based on six pillars.
Does India’s Arctic Policy Address the Gaps?
  • Scientific Orientation: India’s Arctic Policy has gone beyond the hitherto for purely scientific approach. While the primary focus is still scientific, the six pillars address all the aspects of Arctic relevant to India, including climate change and environment, economic and human resources and geopolitical and strategic aspects. This would likely make India’s engagement with the Arctic more broad-based and enable a holistic approach. 
  • Funding: The Policy declares that its implementation will be based on allocation of requisite resources. With the enhancement of a multidisciplinary approach to the Arctic, it is hoped that budgetary support to India’s scientific Arctic endeavours will be substantially augmented.  
  • Polar Research Vessel: The intent articulated in the Arctic Policy of acquiring a dedicated ice-class Polar Research Vessel will hasten the process and provide impetus to India’s Arctic Programme.
  • Whole-of-Government Focus: The objectives outlined in India’s Arctic Policy are to be implemented through an Action Plan and a governance and review mechanism consisting of an inter-ministerial Empowered Arctic Policy Group (EAPG).
  • The Policy further states that implementation will be based on timelines and prioritisation of activities, involving all stakeholders including academia, research community, business and industry.
  • This mechanism is likely to enable better analysis, prediction and coordinated approach in the Government of India, lend policy coherence to the region and will result in better realisation of India’s strategic, military and economic interests.
  • Awareness and Capacity: In India’s engagement with the Arctic, the Policy declares to develop a robust human, institutional and financial base in keeping with the philosophy of ‘Aatmanirbhar Bharat’.
  • The Policy also seeks to expand the capacity and awareness of Arctic-related scientific research in the country, and widen the pool of experts in sectors such as mineral, oil and gas exploration, blue-bio economy and tourism relevant to the Arctic.
  • In the maritime domain, the Policy aims to strengthen training of seafarers in polar/ice navigation, build region-specific hydrographic capacity, build indigenous shipbuilding capacity of ice class standards, and expand India’s trained manpower in maritime insurance, chartering, arbitration and brokerage.
  • It also targets building of wide-ranging institutional capacity on the study of Arctic maritime, legal, environmental, social, policy and governance issues, including application of UNCLOS (United Nations Convention on the Law of the Sea) and other Treaties governing the Arctic region. It is hoped that India’s Arctic Policy will promote a larger pool of experts in the government as well as academia and lead to better awareness of the Arctic in India.
  • Connectivity: Arctic’s ice meltdown and its geographical location ensuring shortest sea distance between America, Europe and North East Asia, is likely to transform the global maritime commerce, presently conducted through the traditional East–West route through the Malacca Strait and Suez Canal.
  • The opening up of Arctic shipping routes will result in huge savings of cost and time, with the major gainers being the North East Asian ports of Japan, South Korea and China. It would also mitigate China’s Malacca dilemma to a large extent and would need a re-evaluation of the resultant strategic maritime advantage of India, to cut off Chinese shipping supplies through the Indian Ocean, in times of a conflict. 
  • India’s Arctic Policy targets linking of International North South Transport Corridor (INSTC) with the Unified Deep-Water System (UDWS) of Russia and its further extension to the Arctic.
  • This, it points out, may result in lowering shipping costs and overall development of the hinterland and of indigenous communities, more than East–West connectivity.
  • It bears mention that China has referred to trans-Arctic shipping routes as the Polar Silk Roads part of BRI.
  • The intent of connecting INSTC with UDWS is commendable, and is likely to unlock trade potential of over US$ 250 billion and bring the much-needed progress, prosperity, stability and peace through the areas of the region that it traverses.
  • This will also open up new vistas of cooperation with Russia on connectivity. The development of INSTC has found mention in several India–Russia joint statements and has been mentioned, both by Prime Minister Modi as well as President Putin, on several occasions.
  • A study by Federation of Freight Forwarders Association in India (FFFAI) estimates that INSTC is 30 per cent cheaper and 40 per cent shorter than the current traditional route51 and has the potential to move 30 to 50 million tons of goods per year.
  • India has also proposed the inclusion of Chabahar port in the INSTC and is seeking to expand membership of this project.
  • More recently, the Delhi Declaration issued after the summit between India and the five Central Asian countries on January 2022, supported India’s proposal to include the Chabahar Port, called upon the other Central Asian countries to consider joining INSTC and noted Turkmenistan’s proposal to include the Turkmenbashi Port within the framework of INSTC.
  • Strategic Contestation: Despite the Arctic emerging as an arena of great power rivalry and competition, India’s Arctic Policy has rightly underplayed it and instead focused on the mutually beneficial aspects. This is in stark contrast to China’s self-declaration as a Near Arctic State, which raised the hackles of all Arctic states and threw light on China’s designs towards the region.      
Conclusion
  • India’s association with Arctic is over 100 years old, having been one of the original High Contracting Parties to the Svalbard (formerly Spitsbergen) Treaty in February 1920.Even today, the Treaty provides the right of visa-free access and conduct of economic and commercial activities to the citizens of India in Svalbard. Indian research station ‘Himadri’ at Ny-Ålesund was dedicated to the nation in 2008, making India the only developing country apart from China to have an Arctic research base.
  • India’s Arctic Policy is timely and is likely to provide a direction to India’s policy-makers on contours of India’s engagement with the region. It is the first step towards developing a whole-of-government approach on India’s engagement with the region.
  • The Policy is likely to have a multiplier effect towards a more synergised and focused scientific research including an enhanced understanding of linkages between monsoons and climate change in the Arctic, and between polar studies and the Himalayas.
  • The economic agenda of the Policy is likely to help Indian industries establish a toe-hold in the region, as also gain access to clean and environmentally sustainable technologies. India’s expertise in the e-commerce and space sectors can bridge the great physical distances and far-fledged communities in the Arctic.
  • The development of indigenous capacities on the Arctic will lead to a greater and multi-faceted cooperation with the Arctic region. The Policy is also likely to raise awareness about the Arctic within India and vice-versa through conduct of programmes, seminars and events in India and in the Arctic. It will also create capacities for research in the country on Arctic governance and geopolitics as also serve the role of signalling India’s interest in the Arctic, to the world.
  • India’s Arctic Policy is deftly dovetailed, enmeshed and in synergy with the broader policy framework of the Government of India. Most importantly, in keeping with India’s civilisational ethos of Vasudhaiva Kutumbakamthe world is but one family, India’s Arctic Policy is inclusive and participative wherein India offers its readiness to “play its part and contribute to the global good”. The release of India’s Arctic Policy, therefore, augurs well for India’s Arctic endeavours and the world at large.
WHAT IS THE NATIONAL PHARMACEUTICAL PRICING AUTHORITY’S ROLE IN FIXING DRUG PRICES? Consumers may have to pay more for medicines and medical devices if the National Pharmaceutical Pricing Authority (NPPA) allows a price hike of over 10% in the drugs and devices listed under the National List of Essential Medicines (NLEM), this coming month.
  • The escalation which is expected to have an impact on nearly 800 drugs and devices is propelled by the rise in the Wholesale Price Index (WPI).
  • Lobby groups that represent domestic pharmaceutical companies have been engaging with the Central Government to ask it to extend the 10% annual hike to scheduled formulations under price control.
How does the pricing mechanism work?
  • Prices of Scheduled Drugs are allowed an increase each year by the drug regulator in line with the WPI and the annual change is controlled and rarely crosses 5%.
  • But the pharmaceutical players pointed out that over the past few years, input costs have flared up. “The hike has been a long-standing demand by the pharma industry lobby.
  • All medicines under the NLEM are under price regulation. As per the Drugs (Prices) Control Order 2013, scheduled drugs, about 15% of the pharma market, are allowed an increase by the government as per the WPI while the rest 85% are allowed an automatic increase of 10% every year.
  • The pharma lobby is now asking for at least a 10% increase for scheduled drugs too than going by the WPI,” said an industry expert.
Who regulates prices?
  • The NPPA was set up in 1997 to fix/revise prices of controlled bulk drugs and formulations and to enforce price and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995-2013.
  • Its mandate is to implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it, to deal with all legal matters arising out of the decisions of the NPPA and to monitor the availability of drugs, identify shortages and to take remedial steps.
  • The ceiling price of a scheduled drug is determined by first working out the simple average of price to retailer in respect of all branded and generic versions of that particular drug formulation having a market share of more than or equal to 1%, and then adding a notional retailer margin of 16% to it. The ceiling price fixed/revised by the NPPA is notified in the Gazette of India (Extraordinary) from time to time.
  • The NPPA is also mandated to collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies etc., for bulk drugs and formulations and undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals.
  • Prices are revised when there is a rise in the price of bulk drugs, raw materials, cost of transport, freight rates, utilities like fuel, power, diesel, and changes in taxes and duties.
  • The cost rises for imported medicines with escalation in insurance and freight prices, and depreciation of the rupee.
  • The annual hike in the prices of drugs listed in the NLEM is based on the WPI. The NLEM lists drugs used to treat fever, infection, heart disease, hypertension, anaemia etc and includes commonly used medicines like paracetamol, azithromycin etc.
Why are input costs high?
  • All-India Drug Action Network (AIDAN), pointed out that one of the challenges is that 60%-70% of the country’s medicine needs are dependent on China.
  • Self-reliance for India also means self-reliance in bulk drugs (Active Pharmaceutical Ingredients/APIs) and chemicals/intermediates that go into making the drug.
  • The method to calculate the annual ceiling price increase should be revisited. “WPI is dependent on price rise in a basket of a range of goods that are not directly linked with the items that go into the cost of medicines.
  • More importantly, the unrealistic simple average method of calculating ceiling prices should be replaced by a cost-plus mechanism that was prevalent under the earlier DPCO 1995.
NITI AAYOG TO ORGANIZE 5TH EDITION OF WOMEN TRANSFORMING INDIA AWARDS ON 21 MARCH NITI Aayog’s Women Entrepreneurship Platform (WEP) is organizing the fifth edition of the Women Transforming India Awards (WTI). Women Transforming India Awards (WTI)
  • The Women Transforming India Awards is NITI Aayog’s annual initiative to highlight the commendable and ground-breaking endeavours of India’s women leaders and change-makers.
  • WTI Awards is open to all women creating an impact in India. WTI will also be recognizing and felicitating Women who have taken “Brand India "globally.
  • The WTI Awards is NITI Aayog’s endeavour to recognise and celebrate stories of exceptional women change-makers from across India. Since 2018, the WTI Awards have been hosted under the aegis of the Women Entrepreneurship Platform with a focus on ‘Women and Entrepreneurship’.
  • The awards continue to bring to the fore, inspiring female role models charting impact across the country. The previous editions have shed much needed spotlight on the stellar work of women-led businesses, both in commercial and social sectors.
  • Applications for the WTI Awards ’21 under seven categories
    • Public and Community Service
    • Manufacturing Sector
    • Non-manufacturing Sector
    • Financial Products enabling Economic Growth
    • Climate Action
    • Promote Art, Culture and Handicrafts
    • Digital Innovation
About Women Entrepreneurship Platform
  • NITI Aayog has launched a Women Entrepreneurship Platform (WEP) for providing an ecosystem for budding & existing women entrepreneurs across the country. SIDBI has partnered with NITI Aayog to assist in this initiative.
  • Women Entrepreneurship Platform (WEP) is an aggregator portal that aims to catalyse the entrepreneurial ecosystem for women and address information asymmetry.
  • To build a vibrant ecosystem for women-led enterprises, the platform works to strengthen industry linkages and increase awareness of existing programmes and services.
  • As an enabling platform, WEP is built on three pillars-
    • Iccha Shakti represents motivating aspiring entrepreneurs to start their business
    • Gyaan Shakti represents providing knowledge and ecosystem support to women entrepreneurs to help them foster entrepreneurship
    • Karma Shakti represents providing hands-on support to entrepreneurs in setting-up and scaling up businesses
  • To date, more than 900 women entrepreneurs have been benefitted through 77 programmes and events hosted on the platform.
  • The platform played an active role during Covid-19 by conducting webinars to provide business support to women entrepreneurs and through its Masking It Up campaign, whereby women-led small businesses in India that were adversely impacted were supported.
Scheme Benefits & Highlights
  • In addition to providing services such as free credit ratings, mentorship, funding support to women entrepreneurs, apprenticeship and corporate partnerships; WEP will encourage entrepreneurs to share their entrepreneurial journeys, stories & experiences to nurture mutual learning.
  • WEP platform, as a driver of change, will also promote offline initiatives and outreach programmes to promote entrepreneurial spirit among potential women entrepreneurs, in collaboration with partner organizations.
  • Also, WEP offers incubation and acceleration support to women founded / co-founded startups through its various partners who handhold women entrepreneurs registered with WEP and provide them necessary support to help them start and scale-up.
Eligibility
  • Women Entrepreneurs who are at ideation stage, have just started off with their start-up’s or are an established start-up can register under the scheme to take the benefit.
  • Corporates, NGOs, research organisations, Incubator, Accelerator, etc. who can provide support in any form to the women entrepreneurs.
ENVIRONMENTALISTS CONCERNED OVER RISING LAND IN BHAVNAGAR, SAY LIGNITE MINING TO BLAME Land has risen in the period March 9-March 17, 2022 at the Gujarat Mineral Development Corporation’s (GMDC) lignite mining site at the Bhuteshwar-Bhumbhali village in Bhavnagar district, according to a statement by Vadodara-based non-profit, Paryavaran Suraksha Samiti (PSS). About Lignite
  • Lignite, often referred to as brown coal, is a soft, brown, combustible, sedimentary rock formed from naturally compressed peat.
  • It has a carbon content around 25–35%, and is considered the lowest rank of coal due to its relatively low heat content. When removed from the ground, it contains a very high amount of moisture which partially explains its low carbon content.
  • Lignite is mined all around the world and is used almost exclusively as a fuel for steam-electric power generation. Gujarat in India is rich in high grade Lignite. GMDC is the 2nd largest Lignite producing company in the country. GMDC satisfies the needs of lignite as fuel to the industries of Gujarat. Lignite mining operations expanded widely in the State.
  • Lignite has a high content of volatile matter which makes it easier to convert into gas and liquid petroleum products than higher-ranking coals. Unfortunately, its high moisture content and susceptibility to spontaneous combustion can cause problems in transportation and storage.
  • Processes which remove water from brown coal reduce the risk of spontaneous combustion to the same level as black coal, increase the calorific value of brown coal to a black coal equivalent fuel, and significantly reduce the emissions profile of 'densified' brown coal to a level similar to or better than most black coals.
  • The combustion of lignite produces less heat for the amount of carbon dioxide and Sulphur released than other ranks of coal. As a result, environmental advocates have characterized lignite as the most harmful coal to human health.
  • Depending on the source, various toxic heavy metals, including naturally occurring radioactive materials may be present in lignite which are left over in the coal fly ash produced from its combustion, further increasing health risks.
Uses
  • Most lignite is used to generate electricity.
  • Lignite was and is used as a replacement for or in combination with firewood for home heating.
  • An environmentally beneficial use of lignite is in agriculture. Lignite may have value as an environmentally benign soil amendment, improving cation exchange and phosphorus availability in soils while reducing availability of heavy metals, and may be superior to commercial K humates.
  • Lignite fly ash produced by combustion of lignite in power plants may also be valuable as a soil amendment and fertilizer. However, rigorous studies of the long-term benefits of lignite products in agriculture are lacking.
  • Lignite may also be used for the cultivation and distribution of biological control microbes that suppress plant pests. The carbon increases the organic matter in the soil while biological control microbes provide an alternative to chemical pesticides.
  • Reaction with quaternary amine forms a product called amine-treated lignite (ATL), which is used in drilling mud to reduce fluid loss during drilling.
  • Lignite may have potential uses as an industrial adsorbent. Experiments show that its adsorption of methylene blue falls within the range of activated carbons currently used by industry.
Impact of Lignite Mining
  • Maleshree river that flows 350 metres away from the residential area of Badi village and the village pastoral land, was contaminated due to illegal mining waste being dumped into them.
  • The village pastoral land was being rendered unfit for agriculture and animal husbandry needs.
  • Lignite is often found in thick beds located near the surface, making it inexpensive to mine. However, because of its low energy density, tendency to crumble, and typically high moisture content, brown coal is inefficient to transport and is not traded extensively on the world market compared with higher coal grades.
  • Burning lignite generates more CO2 emissions than hard coal, and between three and seven times more than gas.
  • Just like with regular black coal, lignite-firing results in dust, NOx and SO2 emissions. These can combine to create a cocktail of air pollution — which is dangerous to health. Exposure to air pollution can increase the risk of lung cancer, chronic bronchitis, and heart disease.
  • Mercury — which is a highly toxic substance that is hazardous to health and the environment — is released during the burning of lignite (and hard coal), and emitted in the stack gases.
  • Lignite is fairly wet compared to hard coal when it is excavated, and it is often burned wet — it can be as much as 75% saturation in some varieties. This makes it inefficient to burn compared to if it was dried out – which means using more fuel to get the same amount of energy, and more mining.
  • Historic settlements have been razed to the ground, villagers have been relocated, and cemeteries have been dug up.
  • Groundwater quality can be affected and the effects on surface water can also be significant.
  • Removing the moisture increases the cost of the final lignite fuel.
What Should be Done?
  • The PSS urged an immediate halt to all mining activities till the reason for the unusual occurrence was ascertained.
  • It suggested that experts should carry out a drone survey and put the findings on record. The administration should also suggest short-, medium- and long-term measures to tackle the disaster.
  • The affected area should be fenced off, with public warning notices to the effect that it is a disaster-prone zone.
  • It has also been urged that a GPR (Ground Penetrating Radar) study to ascertain neotectonics activities in the area to get an idea of impact due to mining activities in the area beneath land surface.
  • They also called for recognising and demarcating faults in the area and to ascertain tectonic activity and the impact of unusual geological phenomenon.
  • Finally, they also urged action against errant officials for violations of the conditions of the Environment Clearance and Consent under the Environment (Protection) Act, 1986.
ATTEND THE FOURTH EDITION OF THE INTERNATIONAL CONFERENCE ON “ARBITRATION IN THE ERA OF GLOBALIZATION” Speaking at the fourth edition of the International Conference on 'Arbitration in the Era of Globalisation' in Dubai, the Chief Justice of India, N.V. Ramana pointed out the importance of developing an acceptable and fair dispute mechanism system for the globalised world and underlined the significance of institutions with a strong emphasis on the rule of law, saying only they can build trust in the globalised world. Globalisation and Arbitration
  • Countries across the world have moved from being protectionist States to open economies. This has led to immense growth in trade and commerce between countries. In the 1980s, the total value of world trade stood at around 2 trillion US dollars. In 2019, the value of global trade was more than 19 trillion US dollars.
  • With technological advancements, improvement in the mode of transportation and communication, the world has become a global village.
  • The enhanced inter-dependence also makes us vulnerable in such a manner that a crisis in one country flows down, in some manner to the others, ultimately disturbing the global supply chain and in turn the global trade.
  • Each country, though a part of the globalised world, has a distinct legal regime and while evolving a universally acceptable mechanism for dispute resolution the same has to be taken into account.
  • It was pointed out that uniformity in the arbitration process is essential to gain the confidence of the parties, to the effect that the award passed in one jurisdiction can be enforceable in another without any hassle.
  • Mediation is increasingly gaining prominence in the international commercial sphere. Private mediation, which takes place at the pre-litigation stage, is also becoming more prevalent in the country.
About Arbitration
  • Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
Its principal characteristics are: Arbitration is consensual
  • Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties. In contrast to mediation, a party cannot unilaterally withdraw from arbitration.
The parties choose the arbitrator(s)
  • Under the WIPO Arbitration Rules, the parties can select a sole arbitrator together. If they choose to have a three-member arbitral tribunal, each party appoints one of the arbitrators; those two persons then agree on the presiding arbitrator.
  • Alternatively, the Center can suggest potential arbitrators with relevant expertise or directly appoint members of the arbitral tribunal. The Center maintains an extensive roster of arbitrators ranging from seasoned dispute-resolution generalists to highly specialized practitioners and experts covering the entire legal and technical spectrum of intellectual property.
Arbitration is neutral
  • In addition to their selection of neutrals of appropriate nationality, parties are able to choose such important elements as the applicable law, language and venue of the arbitration. This allows them to ensure that no party enjoys a home court advantage.
  • Arbitration is a confidential procedure
  • The WIPO Rules specifically protect the confidentiality of the existence of the arbitration, any disclosures made during that procedure, and the award. In certain circumstances, the WIPO Rules allow a party to restrict access to trade secrets or other confidential information that is submitted to the arbitral tribunal or to a confidentiality advisor to the tribunal.
The decision of the arbitral tribunal is final and easy to enforce
  • Under the WIPO Rules, the parties agree to carry out the decision of the arbitral tribunal without delay. International awards are enforced by national courts under the New York Convention, which permits them to be set aside only in very limited circumstances. More than 165 States are part of this Convention.
Benefits of Arbitration
  • Arbitration is the best-suited dispute resolution mechanism for the globalised world and a time-bound process structured to deliver immediate relief.
  • Both arbitration and judicial adjudication aim to serve the same goal - the pursuit of justice. Indian courts are known for their pro-arbitration stance. Courts in India assist and support arbitration, and leave the substantive part of adjudication to the arbitral tribunal itself.
  • The Commercial Courts Act enacted by the Indian Parliament led to further streamlining and speedy dispensation of justice in commercial matters
  • A pre-requisite for achieving globalisation in its true sense is ensuring universal respect for the rule of law. Trust in the globalised world can only be built by creating institutions with a strong emphasis on the rule of law.
  • A crucial component of attracting investors is providing a stable and efficacious mechanism for redressal of disputes.
  • Apart from having a pro-arbitration jurisprudence, countries have to take other innovative steps to promote arbitration culture.
  • A dispute redressal mechanism acceptable and fair to all is the demand of the globalised world. It has been identified that arbitration as the best suited dispute resolution mechanism because it is time bound and is aimed at delivering immediate relief.
About Rule of Law
  • The concept of rule of law is of old origin. Greek philosophers such as Plato and Aristotle discussed the concept of rule of law around 350 BC.
  • Plato wrote “Where the law is subject to some other authority and has none of its own, the collapse of the state, in my view, is not far off; but if law is the master of the government and the government is its slave, then the situation is full of promise and men enjoy all the blessings that the gods shower on a state”. Aristotle wrote “law should govern and those who are in power should be servant of the laws.”
  • The doctrine of rule of law is the entire basis of administrative law. As discussed by Aristotle, the concept of rule of law is grounded in the ideas of justice, fairness and inclusiveness.
  • Today, an intricate chain of fundamental ideas is incorporated in rule of law which further encompasses equality before law, equal treatment before the law for government, independence of judiciary, consistency, transparency and accountability in administrative law.
  • To simply understand the meaning of rule of law, it means that no man is above law and also that every person is subject to the jurisdiction of ordinary courts of law irrespective of their position and rank.
  • The term ‘rule of law’ is originated from England and India has taken this concept. The concept of rule of law further requires that no person should be subjected to harsh or arbitrary treatment.
  • In 1885, Professor A.V Dicey developed this concept of Coke and propounded three principles or postulates of the rule of law in his classic book ‘Law and the Constitution.’ According to Professor A.V Dicey, for achieving supremacy of law three principles of postulates must be followed which are as follows:
    • Supremacy of law,
    • Equality before law and
    • Predominance of Legal Spirit
Rule of Law Under Indian Constitution
  • The term ‘Rule of Law’ is nowhere defined in the Indian Constitution but this term is often used by the Indian judiciary in their judgments. Rule of law have been declared by the Supreme Court as one of the basic features of the Constitution so it cannot be amended even by the constitutional amendment. Rule of law is seen as an integral part of good governance.
  • As per rule of law, it is required that the people should be governed by the accepted rules rather than the decisions that are arbitrarily taken by the rulers. For this, it is essential to keep in mind that the rules that are made should be general and abstract, known and certain and it should apply equally to all individuals.
  • Legal limitation on government is the essential attribute of constitutionalism. Rulers are not above law under the concept of constitutionalism, government power is divided with laws enacted by one body and administered by another and for that an independent judiciary exists to ensure laws.
  • In order to develop Indian democracy, rule of law has played a great role. At the time of framing of Constitution, the framers had two options i.e., USA and England. Some of the provisions were adopted from the USA and some of them were adopted from England.
  • Rule of law was adopted from England by our constitutional fathers and many provisions were incorporated in the Indian Constitution. Indian Constitution is considered to be supreme and no one is above Indian Constitution. Rule of law is also given impliedly in the preamble and such concept is enshrined in Part III of the Indian Constitution.
  • The word ‘law’ in rule of law means that whether he is a man or a society, he must not be governed by a man or ruler but by law. In other words, as per Article 13 of the Indian Constitution rule of law means law of land.
  • Under Article 32 of the Indian Constitution, the Supreme Court has the power to issue writs in the nature of Habeas Corpus, mandamus, prohibition, quo warranto, and certiorari. The power of judicial review is also given to Supreme Court in order to prevent any ultra vires law so as to preserve ‘Rule of law’.
  • In case of violation of such rights, one can approach Supreme Court or High Court under Article 32 and 226 of the Indian Constitution. The Constitution of India is enriched with the principles of law i.e., justice, equality and liberty.
  • Any law made by the Central government or State government must be complied in accordance with the Constitution of India. If any law made by the legislature contravenes with the provisions of the Constitution, then such law will be declared void.
4 Principles of Rule of Law
  • Accountability
    • The government as well as private actors are accountable under the law.
  • Just Law
    • The law is clear, publicized, and stable and is applied evenly. It ensures human rights as well as property, contract, and procedural rights.
  • Open Government
    • The processes by which the law is adopted, administered, adjudicated, and enforced are accessible, fair, and efficient.
  • Accessible and Impartial Justice
    • Justice is delivered timely by competent, ethical, and independent representatives and neutrals who are accessible, have adequate resources, and reflect the makeup of the communities they serve.
What can be Done for More Effective Arbitration and Establishing Rule of Law?
  • Scope for judicial interference from pre-reference stage to challenging an award needs to be minimised.
  • Timelines for completion of arbitral processes should be strictly adhered to.
  • Execution of arbitral awards needs to be ensured.
  • The autonomy of the party should be respected.
  • Mechanism for regulating the arbitral fee has to be in place. Grounds for challenge to the arbitral award should be limited to the bare minimum.
  • Granting of stay on arbitral awards should not become the norm.
  • Emergency awards should be accorded recognition.
  • Focus has to shift to institutional arbitration.
  • To meet the ever-increasing demands, more and more arbitration centres should be promoted.
  • Institutional mechanisms need to be promoted to attract the services of eminent panelists and professional arbitrators. It adds to the credibility of the process.
  • New technologies should be put to use while promoting online interface and proceedings.
  • The practical knowledge of the arbitrator will be a key factor and accordingly needs to be given due importance.
  • Robust training programmes need to be created for training young professionals.
Conclusion
  • The legislature, executive and the judiciary of India at all levels, are committed to improving the arbitration landscape and the ease of doing business in the country.
  • “The bedrock of our democracy is the rule of law and that means we have to have an independent judiciary, judges who can make decisions independent of the political winds that are blowing.”-Caroline Kennedy
CHINA’S 4TH INDIGENOUS ‘HUALONG ONE’ NUCLEAR REACTOR GETS GOING IN PAKISTAN’S KARACHI Recently, according to news reports, China is trying to build a reactor that can generate 1 megawatt (MW) of electric power. Genesis:
  • In 1961, the first RTG-powered satellite, the Transit 4A spacecraft, took off from the US. Since then, several nuclear-powered missions have been launched, including 25 from the US.
  • RTGS, though, come with safety concerns. On April 21, 1964, the US Transit-5BN-3 navigation satellite failed to launch. It burned up on re-entry north of Madagascar, ejecting plutonium fuel into the atmosphere over the southern hemisphere.
  • Russia has also invested in this technology. In 2013, China soft-landed its RTG-powered Chang'e 3 robot on the moon. NASA’s Perseverance rover, which touched down on Martian soil in 2021, is also nuclear-powered.
  • The global discourse is now moving beyond RTGs. The US and China plan to set up a nuclear power reactor on the moon to provide electricity for astronauts camping on the lunar body.
  • In 2021, NASA invited proposals from industries to design nuclear power systems for lunar applications. By 2030, the space agency plans to set up a plant that will continuously provide 10 kilowatts (kW) of power—the average annual power intake of a home on Earth.
  • India, which has till now relied only on solar power for its outer space missions, wants to join the bandwagon. In 2021, Indian Space Research Organization (ISRO) took its first step by inviting companies to develop a 100-watt RTG.
  • Nuclear Reactors and Radioisotopes for Space
  • Nuclear power reactors use controlled nuclear fission in a chain reaction. With the use of neutron absorbers, the rate of reaction is controlled, so the power depends on the demand.
  • Most RTGs use plutonium-238. With the use of RTGs, the power generated cannot be varied or shut down so supplementary batteries need to be taken into account for the peak times. RTGs are used when spacecraft require less than 100 kW. Above that, fission systems are much more cost effective than RTGs.
Types of Radioisotope Power Systems RTGs
  • A Radioisotope Thermoelectric Generator, or RTG provides power for spacecraft by converting heat generated by the natural radioactive decay of its fuel source, plutonium dioxide, into electricity using devices called thermocouples. RTGs have no moving parts.
  • The latest RPS to be qualified for flight, the Multi-Mission Radioisotope Thermoelectric Generator (MMRTG) is powering the Mars Science Laboratory rover, Curiosity, which landed on Mars in August 2012. The MMRTG continues to perform as designed, providing both power and heat for the rover.
  • The MMRTG is designed to be used in the vacuum of space as well as within the atmosphere of Mars.
Radioisotope Heaters
  • A Radioisotope Heater Unit, or RHU, employs a small, pencil eraser-sized pellet of plutonium dioxide to generate heat for spacecraft structures, systems, and instruments, enabling their successful operation throughout a mission.
  • Some missions employ just a few RHU’s for extra heat, while others have dozens. NASA has also studied the potential for using the same small fuel pellet in an RHU to power a compact system that could provide a few dozen milliwatts of electrical power.
Additional Nuclear Technologies for Space Exploration
  • NASA and DOE have explored other types of nuclear power technology over the years, including space nuclear reactors and nuclear propulsion technologies. Continued research and development of these and other related technologies might one day enable space missions to deliver more payloads on cargo missions, achieve faster trip times on piloted missions, or even provide power for crew stations on the surface of Mars or the moon.
Radioisotope systems – RTGs
  • Radioisotope Thermoelectric Generators (RTGs) are lightweight, compact spacecraft power systems that are extraordinarily reliable.
  • RTGs provide electrical power using heat from the natural radioactive decay of plutonium-238, in the form of plutonium dioxide.
  • Radioisotope Thermoelectric Generators (RTGs) have been the main power source for US space work since 1961. The high decay heat of Plutonium-238 (0.56 W/g) enables its use as an electricity source in the RTGs of spacecraft, satellites and navigation beacons. Its intense alpha decay process with negligible gamma radiation calls for minimal shielding.
  • Heat from the oxide fuel is converted to electricity through static thermoelectric elements (solid-state thermocouples), with no moving parts. The importance of such power sources was equipped with batteries and solar panels, the position in which Philae came to rest on the comet's surface – shielded from the Sun's rays by cliffs – meant that the lander was unable to make use of solar energy and was only able to send 64 hours' worth of data before its battery power ran out.
Fission systems
  • Fission power systems may be utilized to power a spacecraft's heating or propulsion systems. In terms of heating requirements, when spacecraft require more than 100 kW for power, fission systems are much more cost effective than RTGs.
  • Nuclear thermal propulsion systems (NTR) are based on the heating power of a fission reactor, offering a more efficient propulsion system than one powered by chemical reactions. Current research focuses more on nuclear electric systems as the power source for providing thrust to propel spacecraft that are already in space.
Applications
  • The simple design of RTGs leads to their utilization in many applications fittings the parameters listed in the introduction, both on Earth and in space. On Earth, RTGs have been used in unmanned facilities such as hundreds of old, abandoned Russian lighthouses and various U.S.- commissioned arctic monitoring sites.
  • The keys to these terrestrial uses are that the RTGs have been placed in remote areas not frequently accessed by humans for maintenance and used in facilities that will remain at their locations for extended periods of time, lasting decades.
  • This justifies the use of these potentially hazardous nuclear-powered RTGs on Earth, minimizing danger to human beings. The safety element of RTGs will be discussed briefly in the next section.
  • The most impactful usage of RTGs has been in a variety of interstellar projects including a fairly large variety of space probes sent to the Moon, flights to the outer planets of the Solar System such as Pioneer and Voyager, and most recently, the robotic rover Curiosity sent to Mars.
  • The implementation of an RTG into the Mars rover is particularly interesting here since it provides an opportunity to discuss the most modern iteration of space-bound RTGs, named multi- mission radioisotope thermoelectric generators (MMRTGs).
  • Functionally, MMRTGs actually retain exactly the same ingredients as all other RTGs described above, even using Pu-238 as their source of radiation fuel.  This is a testament to the true reliability and effectiveness of the original RTG idea and model.
  • Perhaps the only major upgrade is the use of newer and improved thermoelectric converters, namely PbTe / TAGS devices designed to squeeze out between 100 and 125 Watts of electrical energy from Pu-238 fuel pellets over the course of 14 years. This MMRTG design has been reliably running Curiosity since its landing on August 6, 2012 and will most likely be used in future space-bound probes and modules.
Safety
  • As with the implementation of any nuclear-based processes into functioning devices, there is always concern over human safety and radioactive contamination. Even though RTGs are designed to function in remote environments with sparse human populations, the worries are not totally unwarranted as there are plenty of questions regarding the event of RTG fuel leaks or possible explosions while launching space-bound RTGs.
  • In the worst-case scenarios of these situations, there would be substantial radioactive contamination in the environment along with the potential for radiation damage to humans. This makes the use and launch of RTGs at least semi-controversial. However, in practice, there are safety measures applied to minimize the risks of radioactive contamination from RTGs.
  • For instance, in the NASA mission to Saturn featuring the Cassini-Huygens probe, the RTG isotope fuel was stored in high-strength blocks of graphite and surrounded by a layer of iridium metal in order to curb the risk of accidental explosions.
  • These graphite blocks have proven to be successful in preventing radiation contamination as in the case of the famed failed Apollo 13 landing in 1970, which left its RTG in the ocean after its return to Earth, but with no detectable plutonium contamination. In the end, despite potential radiation risks, the advantages of RTG use far outweigh all other factors.
Advantages of RTGs
  • Radioisotope Thermoelectric Generators (RTGs) are an alternative source of power where a chain reaction does not take place. The power depends on the initial amount of the radioisotope used as fuel and the power is provided by converting the heat generated by radioactive decay of the radioisotope into electricity using thermocouples.
  • The advantages of nuclear thermal propulsion (NTP) are that space flights would need to lift less fuel into space, and NTP engines would reduce trip times – cutting travel time to Mars by up to 25 per cent compared to traditional chemical rockets. Reduced time in space also reduces astronauts’ exposure to cosmic radiation.
  • RTGs have longer life-spans. There are no concerns about refuelling or recharging. In short, there is no operational range anxiety.
  • Nuclear spacecraft can swiftly jump into action and protect space assets from attacks.
  • Faster travel times mean astronauts will be less exposed to harmful space radiation.
  •  Unlike solar cells, nuclear power systems function independently of sunlight, which is necessary for deep space exploration. Nuclear-based systems can have less mass than solar cells of equivalent power, allowing more compact spacecraft that are easier to orient and direct in space.
  • In the case of crewed spaceflight, nuclear power concepts that can power both life support and propulsion systems may reduce both cost and flight time.
  • RTGs are safe, reliable and maintenance-free and can provide heat or electricity for decades under very harsh conditions, particularly where solar power is not feasible.
Disadvantages
  • RTGs are not, however, without their drawbacks. Given their use of radioactive material, they obviously pose environmental risks that solar panels do not. The most commonly-used radioisotope in RTGs, Plutonium-238 (238Pu), is relatively safe in comparison to alternatives.
  • The radiation emitted by the decay of 238Pu primarily takes the form of alpha particles, which can be blocked with a thin sheet of paper or even the outer layer of one’s skin.
  • In addition to reducing mass requirements in terms of heavy shielding for humans or spacecraft, this means that 238Pu poses little danger unless pulverized into particles fine enough to inhale. Should this occur, it would cause severe damage to internal organs, particularly the skeleton and liver.
Future Developments in RTG Technology ASRG
  • One of the most promising future technologies which could potentially replace the MMRTG powering NASA’s current missions is the Advanced Stirling Radioisotope Generator (ASRG). First created in 1816, the conventional Stirling engine has served a variety of purposes, from wood-fired stove fans to battery chargers on nuclear submarines.
  • The engine uses a small amount of gas (also called a ‘working fluid’) contained within a fixed area which is heated on one end and cooled on the other. Two separate, reciprocating pistons help direct the movement of the working fluid and harness the energy from its expansion to perform mechanical work.
  • Like conventional RTGs, the ASRG would use the heat produced by the decay of a radioisotope along with the cool surrounding environment to form the temperature differential for its Stirling engine. But rather than producing current across thermoelectric couples, the ASRG uses the heat source to move a magnetized piston through a coil of wire.
  • The benefit of this alternative is that it is far more efficient: the MMRTG used on Curiosity and Perseverance only converts around 8% of its heat energy into electricity. The ASRG design, however, would outperform the MMRTG by a factor of four, meaning only one quarter of the amount of 238Pu would have to be included to generate the same amount of power.
  • The principal downside of the ASRG design is that this efficiency comes at the cost of moving parts, sacrificing the long-term reliability of the solid-state MMRTG. Furthermore, the vibrations induced by the ASRG could have negative repercussions for sensitive scientific instruments attached to the spacecraft.
  • Finally, the loss of the excess heat produced by the MMRTG might necessitate the inclusion of an alternative heating system, thereby increasing complexity and mass.
Variable Specific Impulse Magneto plasma Rocket (VASIMR)
  • An NEP system being developed by Ad Astra Rocket Company, the Variable Specific Impulse Magneto plasma Rocket (VASIMR), is a plasma rocket in which electric fields heat and accelerate a propellant, forming a plasma, and magnetic fields direct the plasma in the proper direction as it is ejected from the engine, creating thrust for the spacecraft.
  • Unlike traditional NEP, the VASIMR design would enable the processing of large amounts of power while retaining the high fuel efficiency that characterizes electric rockets.
  • In the near term, we envision the VASIMR engine supporting a wide array of high-power applications from solar electric in cislunar space, to nuclear-electric in interplanetary space. On a longer term, the VASIMR could be a precursor to future fusion rockets still in the conceptual stage.
Direct Fusion Drive (DFD)
  • Fusion rockets, like the Princeton Field Reversed Configuration reactor concept under development at the Princeton Plasma Physics Laboratory, would have the advantage of producing a direct fusion drive (DFD), directly converting the energy of the charged particles produced in the fusion reactions into propulsion for the spacecraft.
  • A DFD can produce specific power several orders of magnitude higher than other systems, reducing trip times and increasing payloads, thus enabling us to reach deep space destinations much faster. A DFD could have the advantages of its small size and the need for very little fuel – a few kilograms could power a spacecraft for ten years.
Alternative Isotopes
  • Another option for improving RTGs is changing the fuel source. 238Pu has historically been the most popular choice, but alternative radioisotopes exist. To be effective in RTGs, these alternatives must exhibit the following qualities:
    • Good power density, to account for low energy conversion efficiencies
    • Long half-life, to provide useful power output over a long lifespan
    • Low shielding requirements, for safety and to reduce interference with science instruments
    • High power/mass ratio, to reduce total mission mass
  • 238Pu meets all four of these requirements, while alternatives such as Strontium-90, Polonium-210 (used in older Russian RTGs), and Curium-242/244 fall short in one or more areas.
  • The most promising alternative is Americium-241 (241Am). Favoured by the European Space Agency and currently used in smoke detectors and moisture gauges, 241Am is far more plentiful due to being a by-product of regular nuclear reactors rather than weapons-grade refineries. It has a half-life of 432 years compared to 238Pu’s 88, making it superior in category 2 above.
  • On the other hand, it suffers in categories 1 and 3: it has roughly one quarter the power density of 238Pu and emits high levels of gamma radiation, a more hazardous form of ionizing radiation than that produced by 238Pu.
  • If, however, future RTGs can make efficiency gains offsetting 241Am’s reduced power density, it may come to be a more popular fuel source.
  • Countries are also looking at nuclear alternatives such as solar sails and beam-powered propulsion for deep-space missions in the outer solar system. Solar sails use light made of photons to propel spacecraft.
Conclusion
  • The use of RTGs is a perfect example of the application of nuclear processes on smaller size scales. They are widely implemented in space-bound projects that require energy where resources for power are meagre along with terrestrial projects in areas with very little human presence. RTG use will only increase in the future as they are effective sources of energy for specific situations, although different fuel sources must be discovered and effectively integrated with the gradual depletion of Pu-238.


POSTED ON 21-03-2022 BY ADMIN
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