For cleaner skies Climate-change report shows domestic action more urgent

The fifth report of the United Nations-backedIntergovernmental Panel on Climate Change (IPCC), released on Sunday, presents a picture that is far more scary than that outlined in any of its previous versions. It also shifts the goalpost for climate mitigation action to ensure that the rise in temperature is contained to two degrees Celsius, which is essential to prevent irreversible damage to global climate and its perilous economic and health consequences. The new target set by the IPCC requires phasing out the use of fossil fuels for power generation by the end of this century to bring down greenhouse gas (GHG) emissions to near zero. That translates to cutting down the GHG emissions by 40 to 70 per cent by 2050 from the levels that prevailed in 2010. For India, the implications of these changes are huge: shutting down its coal-run power plants, modifications to vehicular fuels, stopping the diversion of forest lands for infrastructure, industrial projects and other uses, and sweeping changes to agriculture and other economic activities.

Given the overwhelming scientific consensus that the IPCC reports represent, their conclusions cannot be overlooked. Nor can their recommendations be disregarded in economic and environment policy formulation. The latest report is particularly significant because it is likely to form the basis for negotiations leading, hopefully, to drafting an agreement to succeed the expired Kyoto protocol on climate change at Lima next month for final approval at Paris in December 2015.

One reason why many of the IPCC's warnings and prescriptions get less attention than they merit is that their projections usually pertain to the distant future rather than to the hazards on hand, such as environmental pollution and weather-induced natural calamities. In fact, India is already facing the consequences of climate change. Air pollution data released recently by the World Health Organization show that 13 of the world's 20 most polluted cities are in India and that the dirtiest air on this planet is in Delhi. Worse still, the cities ranked second, third and fourth for their poor air quality are also in India. This is a matter of grave concern requiring immediate remedial steps, especially because the high concentration of fine particulate matter (measuring less than 2.5 micrometres or PM2.5) recorded in these cities can cause breathing disorders, heart diseases and cancer. The country is also a victim of an increased number of intense rainfall events, and of severe cyclones that were rare earlier. The pattern of monsoon rainfall, the lifeline of the country's agriculture, too, seems to have changed noticeably, necessitating continual last-minute alterations in cropping plans.

India's National Action Plan for Climate Change can take care of many of these aspects provided it is implemented meticulously. This, unfortunately, is not the case, particularly with regard to some of its components. The content of solar, wind, hydro and bio energy in the total energy use needs to be progressively stepped up. At the same time, forests need to be preserved and upgraded to sequester greater amounts of GHGs and to cleanse the air of other pollutants. Equally important are adaptation measures to alleviate environment-induced economic losses.

PM Modi at No. 15 on Forbes' Most Powerful global list

Prime Minister Narendra Modi on Wednesday made his debut among the world's most powerful people, ranked 15th on the Forbes list, topped by Russian President Vladimir Putin who pipped his US counterpart Barack Obama for a second year.

The list of 72 most-powerful people in the world also included Reliance Industries Ltd (RIL) Chairman Mukesh Ambani at 36th, ArcelorMittal Chairman and Chief Executive Officer (CEO) Lakshmi Mittal at 57th, and Microsoft India-born CEO Satya Nadella at 64th.

On Modi, Forbes said "India's newest rock star doesn't hail from Bollywood. He is the newly elected Prime Minister who sailed into office in May with a landslide victory, ushering the Bharatiya Janata Party into power after decades of control by the Gandhi dynasty." Forbes described him a "Hindu nationalist" and referred to the 2002 Gujarat riots when he was the state's chief minister.

"Modi is credited with massive reconstruction projects in his home state of Gujarat. His administration promises to bring economic rejuvenation to other beleaguered parts of India. The world is as impressed as the citizens of India: So far he's toured the US and China and met with his Southeast Asian neighbours," the magazine said.

Singapore shows interest in developing a new smart satellite city in India

Committees to be set up to firm up specific areas of cooperation in urban sector Shri M.Venkaiah Naidu holds detailed discussion with present and former PMs of Singapore

Singapore has shown keen interest in partnering with India in the urban development sector, including development of a new smart satellite city and a new capital for the state of Andhra Pradesh. Top leadership of Singapore conveyed their areas of interest during the extensive talks that the Minister of Urban Development Shri M.Venkaiah Naidu held today with Singapore’s Prime Minister Shri Lee Hsien Loong and former Prime Minister and Emeritus Minister shri Goh Chok Tong in Singapore, in separate meetings. During the talks, both the sides decided to set up Committees to further examine and concretise the areas of cooperation between the two countries in the context of India’s initiative to build 100 news smart cities, develop infrastructure in 500 towns and cities, development of heritage cities and massing urban housing programme. Singapore reiterated its keenness to take up the project of developing the new capital of Andhra Pradesh which was first indicated during the recent visits of Shri Goh Chok Tong to India. Shri Venkaiah Naidu and the Singapore leaders spent considerable time in acquainting each other with India’s initiatives in urban sector and the experiences of Singapore leadership in making the city state as one of the models of smart city. The two top leaders of Singapore acknowledged that there is a new sense of purpose, dynamism and action in India since Shri Narendra Modi took over as the Prime Minister. Shri Venkaiah Naidu sough Singapore’s assistance in promoting smart city features like Intelligent Transport Systems, e-urban governance including delivery of services, water management including recycling and solid waste management. Shri M.Venkaiah Naidu visited the Urban Redevelopment Authority and the Centre for Liveable cities and held extensive discussions about Singapore’s public housing shemes and regulatlons for private housing. Means of financing of urban transport infrastructure was also discussed.

Government to push for standardization in Ayurvedic drug production

Dr Harsh Vardhan: AYUSH to lead ‘Brand India’ thrust in global pharma

Dr Harsh Vardhan, Union Minister for Health & Family Welfare, announced here today that the government would soon set up a separate Central Drug Controller for traditional medicines with a view to ensuring quality in production standards. Inaugurating the first “Arogya Expo” organised by the Ministry’s AYUSH Department as part of the World Ayurveda Congress here today, Dr Harsh Vardhan said that it was a pity that India’s experience and strengths in traditional medicine have not translated into market shares in the global traditional medicines market. “Call it whatever—Ayurvedic medicines or herbal medicines or traditional medicines –the global market is estimated at about $100 billion today. India’s share in this is negligible because quality standards are not maintained to international specifications. The government has decided to address this lacuna,” he said. The institutionalisation of a regulatory authority backed up by central and state laboratories would ensure for traditional and indigenous medicine pride of place in mainstream healthcare, the Health Minister said. An ENT surgeon himself, Dr Harsh Vardhan pointed out that his respect for Ayurveda does not sprint from emotions but scientific understanding. He said, “In this age no single stream of medicine is supreme. This is the age of holistic medicine and I wish to give India an edge in this.” With the world’s disease burden in non-communicable diseases growing, there is a new mindset in favour of holistic treatment. Also, with the explosion of information on the Internet people are getting aware of Ayurveda’s approach of treating each human body as unique, the Health Minister stated. He regretted that India had “missed the bus” in terms of capitalizing on her headstart in the traditional medicines sector. “It is a pity that China has captured such a huge share of the world market whereas India’s presence is non-existent. We are determined to develop Brand India through Ayurveda.” Dr Harsh Vardhan said that with the launch of the National AYUSH Mission, the government will focus in detail on building up a brand value for Ayurvedic drugs manufactured in the country. The new thrust on preserving and promoting AYUSH, as articulated by the Prime Minister, is expected to lead to a huge boom in the traditional medicine sector, the Minister said. The employment potential will be manifold as the scope for upstream and downstream expansion is considerable. The government is confident that a combination of incentives and regulation would help make up for the lost time, the Minister added. Accordingly, the Minister has made provision for financial support to be provided to traditional drugs manufacturing companies to enhance their quality lines and help them meet global standards. Drug testing laboratories will be set up at the state level in due course and regulatory arrangements are also proposed there. The Arogya Expo, the first to be organised by the government, is set to become the largest industrial fair involving stakeholders in the AYUSH sector. Trade associations from all over the world are expected to attend. The event offers opportunities for B2B interface. Facilities for medical check-up to the public have also been opened. Dr Harsh Vardhan said that special attention has been given to showcase the small sector manufacturers. Traditional doctors and vaidhyas, especially from the north-east, have been attracted to showcase their expertise. Mr Nilanjan Sanyal, Secretary, AYUSH, Dr P.M. Varier, Trustee, Kotakkal Arya Vaidhya Sala, Mr Anand Burman, Chairman, Dabur group, Mr Anurag Sharma, Managing Director, Baidyanath Pharma, Mr S. Saji Kumar, Managing Director, Dharithri Pharma, Dr G.Krishnan, MP, Dr Mrinalini, Special Secretary (AYUSH) of Delhi Government, and Dr Vijay Bhatkar, President, Vijnana Bharati, were also present on the occasion.

Indian Railways to go for Bio-Diesel in a Big Way - Gowda

With a concern for cleaner environment, Indian Railways has decided to promote use of alternative fuels like bio-diesel in a big way for powering our vast fleet of over 4000 Diesel locomotives. This was stated by the Minister of Railways Shri D.V.Sadananda Gowda at the inauguration of Bio-Fuels – 2014 Conference with a theme ‘Energize growth & Business opportunities in Biodiesel sector in India’ organized by Bio-Diesel Association of India (BDAI) here today, Shri Gowda said that Indian Railways, is the single largest bulk consumer of diesel in the country and as mentioned in Railway Budget 2014-15, Indian Railways will start using Bio-Diesel up to 5% of the total fuel consumption in diesel locomotives. This will save precious foreign exchange substantially. Diesel locomotives cater to a large segment of rail traffic in the country, hauling both passenger and freight trains. Indian Railways consume over two billion litres of diesel every year. For this Railways have to foot a bill of over Rs.15000 crore annually. Therefore, even a small reduction in fuel consumption through blending with Bio-Diesel will result in a substantial savings in the fuel bill. In addition, the attendant benefits of a cleaner environment would also accrue on account of lower carbon emission, without requiring any change in the locomotive design. Extensive trials have already been conducted by RDSO using bio-diesel in different proportions on railway locomotives and results have been found very encouraging, Shri Gowda said. Railway Minister said that Indian Railways initially attempted blending of High Speed Diesel (HSD) with Bio-Diesel extracted from the Jatropha plant. Jatropha oil had been used in India as biodiesel in remote rural and forest communities; Jatropha oil can be used directly after extraction i.e. without refining in diesel generators and engines. The Minister said that Indian Railways will consider exploring possibilities of planting Jatropha plants along the railway tracks. However, these forays by Indian Railways met with limited success. Indian Railways have also set up an Indian Railways Organisation for Alternate Fuels (IROAF) to promote Bio-Diesels and other environmentally benign alternate fuels. They have also been given the mandate to facilitate setting up of trans-etherification facilities for converting plant residues into Bio-Diesels. These facilities could be set up in the country on the PPP mode. Shri Gowda further said that Bio-fuels also have a role to play in our efforts to address environmental concerns, particularly where we cannot otherwise easily decarbonise, like in the transport sector. However, it is crucial that the bio-fuels used must be genuinely sustainable and cost effective. Unless these two imperatives are met, we would not be able to proliferate Bio-Diesels in the manner we intend to. Shri Gowda hoped that the deliberations in this conference would bring out solutions needed to chalk out a path, both by the policy makers and the industry to make this environmentally benign natural resource our fuel of the future. Speaking on the occasion, the Minister of State for Railways, Shri Manoj Sinha said that in order to generate interest in bio-diesel, adequate quantities of bio-diesel will have to be made available at competitive and attractive prices. To achieve this, setting up of raw material supply chain would be necessary. This is a big challenge in a country where neither edible oils nor other oils are surplus to the requirement. In case the availability is unsatisfactory, the interest of common user would not get generated. Shri Sinha said that as of now there is no retail of bio diesel and thus no network for countrywide availability of bio diesel. In case it is to be made popular with not only with railways but with road transport also, countrywide distribution and storage infrastructure will have be set up.

Raising the authorized share capital of Indian Renewable Energy Development Agency

The Cabinet today at the meeting chaired by the Prime Minister, Shri Narendra Modi gave its approval to raise the authorized share capital of the Indian Renewable Energy Development Agency Ltd. (IREDA) from the existing level of Rs.1000 crore to Rs.6000 crore. The approval does not involve any immediate requirement of funding. Infusion of equity, as and when required, would be based on level of operations. During the 12th Five Year Plan, Ministry of New and Renewable Energy (MNRE) has targeted 30,000 MW from various renewable energy projects out of which IREDA aims to finance projects of an aggregate capacity of 4800 MW. For this, IREDA would need to mobilize financial resources to the tune of Rs.14,000 crore. A higher level of authorised share capital would facilitate in leveraging higher levels of debt from the market. The MNRE has recommended strengthening of the equity base of IREDA by infusion of Rs.5000 crore through rights issue and the IPO route during the 12th Five Year Plan, in line with the Integrated Energy Policy (IEP) of the Government. Background :  IREDA is a public financial institution established in March, 1987 under the Company`s Act, 1956. IREDA is registered as a Non-Banking Financial Company with the Reserve Bank of India. Since its inception, IREDA has played a pioneering role in supporting and facilitating the policies and programs of the MNRE that has nurtured the renewable energy industry in the country. IREDA has primarily worked with private sector enterprises operating in the power sector. For over two and half decades, IREDA has been supporting the establishment of renewable energy projects and has greatly succeeded in the commercialization of sustainable energy technologies in the country. Subsequently, its business operations have been widened to extend term loans to energy efficiency and energy conservation projects as well.

Vice President Inaugurates 7th South Asia Economic Summit

The Vice President of India Shri M. Hamid Ansari has said that the leaders of SAARC countries have been continually emphasising the importance of enhancing economic cooperation for regional integration. At the 17th SAARC Summit, held at Maldives in 2011, South Asian leaders spoke about the need to work on a vision for future development of South Asia, including the goal and elements of a South Asian Economic Union (SAEU). Delivering inaugural address at the “7th South Asia Economic Summit organised by Research and Information System for Developing Countries” here today, he said that in this regard, Think-tanks have to stay ahead of governments and generate ideas and come up with possible ways forward. Therefore, this summit of regional think-tanks focusing on this ambitious theme is a welcome initiative.   He said that Intra-regional trade in South Asia has doubled since the region implemented the Agreement on South Asian Free Trade Area (SAFTA). The intra-regional exports have increased to about US$ 22 billion in 2013 from US$ 10 billion in 2006 (data source: IMF).  South Asia is expected to achieve substantial tariff reduction by 2016 as SAFTA implementation makes further progress. This should lead to a greater increase in intra-regional trade.  The Vice President said that while SAEU would require greater regional economic policy coordination, SAARC would benefit from the experiences of other groupings, such as the European Union and ASEAN. Some prioritised progression may be useful, beginning from completing the on-going trade liberalisation process. Another priority would be to undertake investment in regional infrastructure, especially transport connectivity that would facilitate ease of travel and trade. He said that some of the regional trade facilitation projects may ease the way for an economic union. These could be (i) coordinated border management, such as co-location of facilities, delegation of administrative authority, cross-designation of officials, and effective information sharing; (ii) regional single window which is a digital interface that allows traders to submit all information and documentation required by regulatory agencies via a single electronic gateway; and (iii) regional transit, which would help the region to move the goods and services move freely, thereby strengthening production networks in South Asia. The Vice President said that creation of South Asian Economic Union (SAEU) would prove to be a milestone in regional cooperation efforts. Most regions in the world are moving towards greater economic integration, as South Asia lags behind. The logic of economic union lies in re-distribution of common and shared resources within the region in a most efficient and effective manner. Economic union enhances manifold the bargaining power of member countries in the global arena and helps in realising the full potential of trade complementarities. There are definite advantages of moving towards an economic union but the roadmap has to be well thought out and a strategy has to be in place, which is ambitious but realistic. Following is the text of Vice President’s inaugural address :  “I am happy to be here today for the inauguration of the 7th South Asia Economic Summit (SAES) on ‘Towards South Asia Economic Union’, organized by the Research and Information System for Developing Countries (RIS) in association with prominent think-tanks of South Asia. The South Asian Association for Regional Cooperation (SAARC) has achieved almost three decades of partnership at the Summit level since the first Summit was held in Dhaka in December 1985. During this period, our region has made some progress towards greater regional economic cooperation, even if somewhat gradually and not to the full extent. At the same time, the economic size of South Asia has also witnessed significant expansion. South Asia was one of the high performing regions of the world during the period from 2003-2010. Growth has slowed somewhat following the global economic crisis and recession but even then it has remained above the world average. The regional growth outlook now appears to have improved with economic indicators pointing to recovery, including in India.  The leaders of SAARC countries have been continually emphasising the importance of enhancing economic cooperation for regional integration. At the 17th SAARC Summit, held at Maldives in 2011, South Asian leaders spoke about the need to work on a vision for future development of South Asia, including the goal and elements of a South Asian Economic Union (SAEU). In this regard, Think-tanks have to stay ahead of governments and generate ideas and come up with possible ways forward. Therefore, this summit of regional think-tanks focusing on this ambitious theme is a welcome initiative. Intra-regional trade in South Asia has doubled since the region implemented the Agreement on South Asian Free Trade Area (SAFTA). The intra-regional exports have increased to about US$ 22 billion in 2013 from US$ 10 billion in 2006 (data source: IMF).  South Asia is expected to achieve substantial tariff reduction by 2016 as SAFTA implementation makes further progress. This should lead to a greater increase in intra-regional trade.  South Asian countries have taken other steps to increase trade regionally. India has reduced the sensitive list under SAFTA for LDCs before the scheduled deadline. Over time, India’s bilateral trade with some of the South Asian countries, like Afghanistan, Bangladesh, Bhutan and Nepal, has grown faster than South Asia’s total regional trade during the period 2006 and 2013. This indicates that South Asia, in parts, is trading more within the region. There is also a rise in cross-border production networks. The FTA between India and Sri Lanka has successfully narrowed the trade gap between the two countries. Varied progress has been made in other areas such as SAARC Agreement on Trade in Services, as also on trade facilitation measures. However, there are many challenges, including persistence of restrictive Non-Tariff Measures, the need to harmonise standards and customs procedures and poor connectivity. Some other major elements that are holding back South Asian integration include high transportation costs, inadequate cross-border infrastructure, and absence of regional transit. As a result, South Asian goods often lose competitiveness before they can reach world markets. Intra-regional trade is also inhibited due to limited availability of short term trade finance in the region. The region needs to strengthen its institutional mechanism to augment short term trade financing to encourage regional trade. Average time and costs of trading across borders in South Asia is still relatively high in comparison with other developing regions of the world. Moreover, in South Asia, the costs of trade with countries outside the region appear to be lower than that for carrying out intra-regional trade. Clearly, a truly integrated region would not be achievable until we overcome these challenges. Many other issues also come in the way of trade competitiveness and exploitation of trade complementarities in South Asia. Foremost is the presence of two-fifths of world’s poor in South Asia. The region is faced with major developmental challenges of poverty, inequality, illiteracy, disease, hunger and homelessness. South Asia is also vulnerable to major natural disasters such as floods, draughts, cyclones, earthquakes, etc. An inclusive and stronger regional integration would greatly help in overcoming some of these common challenges. The overall objective of South Asian Economic Union (SAEU) is to ensure the transformation of South Asia into a peaceful, stable, and prosperous region. SAARC countries must consider the mutual benefits that could be derived from greater economic integration and thereby contribute to the furtherance of their common developmental agenda. They should, therefore, collectively address the challenges that confront them in the process of regional integration. While SAEU would require greater regional economic policy coordination, SAARC would benefit from the experiences of other groupings, such as the European Union and ASEAN. Some prioritised progression may be useful, beginning from completing the on-going trade liberalisation process. Another priority would be to undertake investment in regional infrastructure, especially transport connectivity that would facilitate ease of travel and trade. The 18th SAARC Summit later this month will be focussing on ‘Deeper Integration for Peace and Prosperity’.  Building on enhanced connectivity, we need to also encourage proliferation of regional value chains that can pool together competitiveness of each of our economies, at various stages of production. These would require greater flow of financial capital and intra-regional investments. An efficient, secure and integrated transport network is essential to support the realisation of South Asian Economic Union. Regional trade liberalization (for example, SAFTA) alone has not been able to achieve increased intra-regional trade. Infrastructure development, capacity-building measures, removal of NTBs, and supportive policies and institutions that promote economic activities along identified transport corridors are essential to increase regional trade. Some of the regional trade facilitation projects may ease the way for an economic union. These could be (i) coordinated border management, such as co-location of facilities, delegation of administrative authority, cross-designation of officials, and effective information sharing; (ii) regional single window which is a digital interface that allows traders to submit all information and documentation required by regulatory agencies via a single electronic gateway; and (iii) regional transit, which would help the region to move the goods and services move freely, thereby strengthening production networks in South Asia. South Asia has set-up many regional organisations, such as SAARC Development Fund (SDF) to finance regional development projects, a South Asia Regional Standards Organization (SARSO) to harmonize standards and reduce time taken in customs clearance, a South Asian University in Delhi to promote higher education, to mention a few. Regional institutions like the SAARC Food Bank and SAARC Disaster Management Centre have the potential to help address the common regional challenges.  Proposed institutions such as SAARC Satellite or SAARC Corridor or SAARC Development Bank deserve more attention, as we contemplate moving towards an economic union. Creation of South Asian Economic Union (SAEU) would prove to be a milestone in regional cooperation efforts. Most regions in the world are moving towards greater economic integration, as South Asia lags behind. The logic of economic union lies in re-distribution of common and shared resources within the region in a most efficient and effective manner. Economic union enhances manifold the bargaining power of member countries in the global arena and helps in realising the full potential of trade complementarities. There are definite advantages of moving towards an economic union but the roadmap has to be well thought out and a strategy has to be in place, which is ambitious but realistic. The next SAARC Summit will be held in Nepal later this month. I am sure that the outcomes of this 7th South Asia Economic Summit will provide important policy inputs to the forthcoming SAARC Summit and also guide the regional integration process.