On the highway to a better trade regime

Along with GST, India needs infrastructure for easy movement of goods 

The opening of the Suez Canal in 1869 helped India participate in an expanding world economy. An industrial boom followed, albeit under conditions of unequal colonial trade. The broader lesson is clear. Interlinked trade routes—be it the Suez Canal or the Silk Route—have always been essential to the spread of economic prosperity.

The creation of a seamless internal market that promotes economic growth is an unfinished job in India. One part of the task is removing barriers to interstate trade through the goods and services tax (GST). The other task is to provide physical infrastructure that will allow goods to move across the country comfortably.

The Indian government plans to build a network of 27 road corridors that will bring various parts of the country together. The blueprint for the grid is reportedly ready. Such a proposal needs to be welcomed. It may seem ambitious to some, but it is useful to remember that the Golden Quadrilateral and the North-South corridor projects were met with a lot of scepticism when they were first announced by then prime minister Atal Bihari Vajpayee at the turn of the century.

The proposed national highway grid will connect 12 major ports and cities with populations of more than 45 million and 26 state capitals, and ensure that highways are linked every 250km, conforming to the ambitions of Bharatmala—the government’s flagship project to “connect India like never before”.

Roads form vital links between markets that are not connected. They link producers to distant markets, promote economic specialization, provide linkages to other parts of the economy and generate positive externalities. But the greatest benefit of the proposed national highway grid would be for interstate trade. Interstate trade for India is less than 15% of gross domestic product, whereas the corresponding figures for the US and China are 40% and 35%, respectively. High transaction costs, which include physical and legal infrastructure problems, are among the primary reasons for the low level of such trade in the country.

In India and elsewhere, travel—both passenger and freight—involves costs in terms of money and time. The reduction of these costs requires the expansion of roadways as well as the simultaneous deployment of resources on alternative means of transport such as rails, inland waterways and air.

Though India has the second largest road transport network in the world, the growth rate of road development is slow compared to the growth of road freight and vehicle volume. The disproportionate burden of freight on roads does not help either. The current road to rail ratio of 70:30 is inadequate and inefficient for economic as well as environmental reasons.

If roadways form the physical foundation for uniting India’s markets into an integrated whole, reducing transaction costs and facilitating interstate trade, GST—now with the backing of most states—will form the legal and fiscal foundation. It will address the cascading effect of the present tax regime, broaden the tax base, increase compliance and reduce inter-state variations in taxes. The current tax regime also imposes significant time costs on interstate road freight via interstate checkpoints, and that translates to lower freight volumes moved.

India has one of the lowest average speeds for trucks and about 60% of their time is taken up at these checkpoints and tollgates. A joint study report by Transport Corporation of India and Indian Institute of Management Calcutta released last week estimates that India incurs costs of $14.7 billion and $6.6 billion annually due to additional fuel consumption costs and transportation delays, respectively. This makes producers less competitive despite having competitive input prices. According to a McKinsey estimate, around 13% of GDP is compromised by these logistical lacunae in India compared to 7-8% in developed economies.

Freight transport depends on the volume of goods produced, location of suppliers and consumers and efficient use of resources. But in India, infrastructure problems and red tape have compromised the manner in which these factors are balanced—and consequently, the demand-supply equation. The highway grid will not set it right by itself. But it could be a good start.

In what other ways can India resolve its logistics issues?

Nasa spots methane leak from space for the first time

The observation is an important breakthrough to measure, monitor methane emissions from space 

In a first, an instrument onboard an orbiting spacecraft has measured the methane emissions from a specific leaking facility on Earth’s surface.

The observation — by the Hyperion spectrometer on Nasa’s Earth Observing-1 (EO-1) — is an important breakthrough in our ability to eventually measure and monitor emissions of this potent greenhouse gas from space.
David R Thompson of Nasa’s Jet Propulsion Laboratory in the US said that the leak occurred over Aliso Canyon near Porter Ranch in California. The Hyperion instrument successfully detected the methane leak on three separate overpasses during the winter of 2015-16.
The research was part of an investigation of the large accidental Aliso Canyon methane release last fall and winter.
“This is the first time the methane emissions from a single facility have been observed from space,” said Thompson. “The percentage of atmospheric methane produced through human activities remains poorly understood,” he added. “Future instruments with much greater sensitivity on orbiting satellites can help resolve this question by surveying the biggest sources around the world, so that we can better understand and address this unknown factor in greenhouse gas emissions,” Thompson said.

Isro challenges Elon Musk with record satellite launch

The launch of 22 satellites next week is the biggest single launch by India 

India’s space agency, Isro, will launch a record 22 satellites on a single rocket as it tries to ease a global backlog and demonstrate the ability to compete with commercial space flight companies run by billionaires Elon Musk and Jeff Bezos.

Satellites from the US, India, Canada and Germany will enter orbit after a scheduled 20 June lift-off from the Sriharikota barrier island along the south-east coast, the agency’s chairman, A.S. Kiran Kumar, said in a 9 June interview in Bengaluru. Most of the machines will observe and measure the Earth’s atmosphere, with another from an Indian university helping provide service for amateur radio operators.
The business of putting satellites into space is surging as phone companies, Internet providers, airlines and even car makers seek bandwidth for communications. The resulting backlog is creating opportunities for Musk and Bezos, who are privatizing what was once a government-only industry by testing reusable rockets to help reduce costs. To keep pace, India is touting its traditionally low-cost programme along with achievements such as putting an orbiter around Mars and building a space-shuttle prototype.
“Unless you keep yourself abreast and look to the future on how to make things better, how to make it more cost-effective, you run the risk of becoming irrelevant,” said Kumar, 64, chairman of the Indian Space Research Organisation (Isro). “So you have to take care of these threats.”
Weather, smartphones
The 22 machines being launched next week include an Earth observation satellite to capture light invisible to the naked eye. It is the biggest single launch by India, trailing Russia’s 33 in 2014 and NASA’s 29 the year before.
There were 208 satellites launched in 2014, almost double the amount the year before, as countries such as India and Indonesia try to bring phone services to most of their people for the first time. India is the world’s second-largest smartphone market after China, and that demand is helping fuel what may be a 30% increase in lift-offs globally during the next five years.
India has about 35 satellites in orbit for broadcasting, navigation, scientific exploration and weather monitoring, yet it needs double that amount, Kumar said.
“We need to make more launches and we have to build more satellites,” he said in an office dotted with scale models of Indian rockets and satellites. “So we are trying to make that happen. We’re reaching a stage where every month we are having a launch.”
Orbiting Mars
India last month successfully launched a scale model of a reusable spacecraft, a project that in time could pit the nation against Bezos and Musk in the race to make access to space cheaper and easier. The country also injected a probe into Mars’ atmosphere in 2014 for just $74 million, about 11% of the cost of the US’s Maven probe.
To meet the increasing competition from private industry and other nations, India needs to expand its space programme, said Ajey Lele, a New Delhi-based senior fellow at the Institute for Defence Studies and Analyses.
“Right now, India has got only one launch site,” Lele said. “So, it needs to develop another site within India or maybe somewhere else.”
Musk’s Space Exploration Technologies Corp., after three successful landings of the first stage of the Falcon 9 rocket since April, plans to start reusing rockets as soon as September, the billionaire said. Blue Origin Llc has shot off and landed the same rocket three times, and Bezos said low-cost launches are the missing pieces for space travel.
India takes that as a challenge, said Kumar, who joined Isro in 1975 and has since helped design satellites and worked on the Mars mission. India is also collaborating with NASA for the 2020 launch of a radar system to detect small changes in the Earth’s surface, potentially benefiting climate-change studies and helping farmers with crop rotation and flood monitoring, Kumar said.
“If you don’t have a capability, you have to build that capability,” he said. “It is not trying to emulate, but you also have to be relevant.”

NITI Aayog to organise Workshop on 16 & 17 June 2016 on Water, Wastewater and Solid Waste Management for Capacity Building in States and Urban Local Bodies

NITI Aayog15-June, 2016 12:39 IST

NITI Aayog to organise Workshop on 16 & 17 June 2016 on Water, Wastewater and Solid Waste Management for Capacity Building in States and Urban Local Bodies

NITI Aayog in collaboration with Singapore Cooperation Enterprise (SCE) and Temasek Foundation, Singapore has developed an Urban Management Programme for Capacity Building of officials of State Governments and Urban Local Bodies (ULBs) in urban sector. The Programme was launched on 27 April, 2016 in New Delhi. The Programme focusses on Capacity Building of officials of State Governments and Urban Local Bodies in three critical areas of urban rejuvenation viz., (i) Urban Planning & Governance, (ii) Water, Wastewater & Solid Waste Management and (iii) Public Financing (PPP) of Urban Infrastructure. This unique initiative of NITI in partnership with Singapore Cooperation Enterprise (SCE) and Temasek Foundation Singapore provides a platform to State Governments/ULBs to share the challenges being faced in urban transformation in these key areas and to evolve and design efficient solutions to some of these challenges through partnership with urban sector experts from Singapore. Seven states viz., Tamil Nadu, Andhra Pradesh, Maharashtra, Gujarat, Uttar Pradesh, Delhi & Assam are participating in this Programme. The Singapore experts are from Surbana Jurong, CH2M Hill and PricewaterhouseCoopers. After the Programme Launch on 27 April 2016, the first workshop on Urban Planning & Governance was held on 28 & 29 April, 2016 in New Delhi. Now, the second workshop under this Urban Management Programme, on Water, Wastewater and Solid Waste Management is to be held in New Delhi on 16 & 17 June 2016.

The two day workshop on Water, Wastewater and Solid Waste Management on 16 & 17 June 2016 in New Delhi would focus on following areas -

(i) Integrated Urban Water Cycle Management for Sustainable and Resilient Water Infrastructure and Healthy Cities - Singapore's Success Story, Sustainable Water Management, Integrated Water Cycle Management, Efficient Water supply management, Used Water (Wastewater) Management, Evaluation of various technologies for Wastewater treatment, Alternate Source of water and Utility Financial Performance, Rain water harvesting, Public Education, Communications and Stakeholder Engagement, implementation of Supply Chain of Water/Wastewater projects Water conservation, Demand management and Effective NRW Management, Emerging Trends and Future.

ii) Solid Waste Management – Introduction to Singapore's Solid Waste Management System, Best Practices in Integrated Solid Waste Management, Waste Minimisation & (3R’s) Reduce, Recycling & Reuse, Waste Disposal Systems, Evaluation of various technologies for Solid Waste Management, Waste-to-Energy (Incineration), Project Delivery Models and PPPs and implementation of Supply chain of Solid Waste projects.

The Workshop would be inaugurated by Shri Amitabh Kant, CEO of NITI Aayog. The participants would include Secretaries, senior officials and Municipal Commissioners from State Governments of Tamil Nadu, Andhra Pradesh, Maharashtra, Gujarat, Delhi, Uttar Pradesh and Assam, the Union Ministry of Urban Development, Ministry of Housing and Poverty Alleviation, Ministry of Environment, Forest and Climate Change, Ministry of Drinking Water and Sanitation, Ministry of Science and Technology, National Disaster Management Authority, NITI Aayog etc. Experts from institutions like National Institute of Urban Affairs (NIUA) and School of Planning & Architecture, Delhi etc would also participate in the Workshop.

Background: 

Urbanisation offers an opportunity to India to achieve higher economic growth as cities provide economies of agglomeration. Urbanisation level in India, which was around 31 per cent in census 2011 is estimated to increase and reach 40 per cent by 2030 in percentage terms, the urbanisation level may appear to be modest, however in absolute numbers it is very large. Urban population of India is more than the entire population of United States of America or Brazil. The urban economy has also witnessed significant growth and is contributing to around 60 per cent of GDP. However, to reap the full benefits of urbanisation, it is important that it is efficient and sustainable.

Rapid urbanisation is increasing the pressure on provision of basic services to citizens like water, sanitation and mobility in the urban areas in the country. Infrastructure deficit is increasing the coping costs as well as leading to loss of productivity in the cities. It is also adversely affecting the ability of cities in attracting investment in this globalized world. Governance in urban centres is also emerging as a major challenge particularly with the increasing number of census towns. Further, with the increasing pressure on natural resources, sustainability of cities is emerging as a major concern. A deficiency in processing and scientific disposal of urban waste is resulting in a situation where Indian cities are polluting water bodies, degrading soil and environment at a much larger scale than they use these resources. Environmental sustainability of Indian cities is therefore becoming a major imperative for guiding efficient urbanisation.

Therefore it is necessary to take measures to ensure that the urbanisation is efficient. It is imperative to improve the provisioning of basic infrastructure and governance in our cities so that the cities enable better living and drive economic growth and emerge as ‘Engines of Economic Growth’ and moreover do so in a sustainable manner. The urban centres have to become areas of intense mobility, socio-economic activity and hope for a large number of population. To transform the urban landscape in the country, the Government has recently launched the Urban Rejuvenation Mission (URM) comprising of Atal Mission for Urban Rejuvenation and Transformation (AMRUT), Smart Cities Mission and Housing for All.

The 74th Constitutional Amendment accorded constitutional status to the municipal bodies by initiating a process of democratic decentralisation with the objective of making urban governance more responsive. In order to meet the growing aspirations and expectations of people, and to meet the challenges of urbanisation, governance in the Urban Local Bodies (ULBs) needs to become more efficient, effective, responsive, citizen friendly, transparent and accountable. Currently, many Urban Local Bodies (ULBs) do not have sufficient capacity to plan, finance and implement efficient, smart and sustainable solutions for urban problems.

In order to effectively realise the vision of urban transformation, one of the key objectives is to build sufficient capacities in the Urban Local Bodies and State Government in urban management and provide greater financial and functional autonomy to the ULBs. In this backdrop, NITI Aayog has entered into a Memorandum of Understanding with Singapore Cooperation Enterprise (SCE) to tap the expertise of Singapore in urban sector to build capacities in State Governments and ULBs to facilitate in implementation of the Urban Rejuvenation Mission. 

Government Launches Scheme for setting up 1000 MW CTU- connected Wind Power Project

Government Launches Scheme for setting up 1000 MW CTU- connected Wind Power Project

Ministry of New and Renewable Energy (MNRE) has launched Scheme for setting up of 1000 MW Wind Power Project connected to transmission network of Central Transmission Utility (CTU) with an objective to facilitate supply of wind power to the non-windy states at a price discovered through transparent bidding process. Ministry has designated Solar Energy Corporation of India (SECI) as nodal agency for implementation of the scheme.

The Scheme will encourage competitiveness through scaling up of project sizes and introduction of efficient and transparent e-bidding and e-auctioning processes. It will also facilitate fulfilment of Non-Solar Renewable Purchase Obligation (RPO) requirement of non-windy states.

The Government of India has set an ambitious target of achieving 175 GW power capacity from renewable energy resources by 2022 and out of this 60 GW has to come from wind power. The Scheme will be implemented for setting up 1000 MW capacity of CTU connected Wind Power Projects by Wind Project Developers on build, own and operate basis. However, the capacity may go higher than 1000 MW, if there is higher demand from Discoms of non-windy states.

MNRE has also issued Draft guidelines for implementation of scheme for setting up of 1000 MW CTU connected wind power projects issued by MNRE for stakeholders’ consultation. Details available at http://mnre.gov.in/file-manager/UserFiles/Draft-Wind-1000MW-Guidelines.pdf

BACKGROUND

The wind power deployment in the country started in early 90s. With the conductive policy environment provided at Central and State level, this segment has achieved highest growth amongst the other renewable energy technologies. The present wind power installed capacity in the country is nearly 26.7 GW sharing around 9% of total installed capacity. Globally, India is at 4^th position in term of wind power installed capacity after China, USA and Germany.

The Wind power potential in the country is assessed by the National Institute of Wind Energy (NIWE) at 100 meter above ground level, which is estimated to be over 302 GW. Most of this potential exists in 8 windy states namely Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Telangana.

In order to facilitate transmission of wind power from these windy states to non-windy states provisions have been made in the Tariff Policy to waive the inter-state transmission charges and losses for wind power projects.

The technology that protects rocket launch vehicles from high-temperature fire could protect the thatched roofs and even prevent water seepage in concrete buildings.

The technology that protects rocket launch vehicles from high-temperature fire could protect the thatched roofs and even prevent water seepage in concrete buildings.

The scientists of the Vikram Sarabhai Space Centre (VSSC), Thiruvananthapuram, have showcased the ceramic-polymer hybrid (CASPOL), a spin-off product that could protect public transport systems and poor men residing in thatched homes from fire accidents. Technology transfer is yet to be concluded. Caspol is an indigenously developed, easy-to-use flame-proof coating, from the VSSC stable. The water-based ready-to-coat product was originally developed to protect the rockets from high temperature and fire to which they are exposed during the initial moments of launch.

“Huge exhaust plumes of high temperature engulf a rocket when it lifts off from the launch pad. The protective pads that cover the rockets are coated with Caspol to save them from fire and high temperature to which they are exposed to,” explained K. Sivan, director of VSSC.

According to Dr. Sivan, Caspol can withstand up to 800 degree Celsius. Seats in automobiles, public transport system and seat cushions of railway coaches can be made fireproof when Caspol is applied. The ceramic-polymer hybrid will affect the cushioning characteristics significantly of seats once it is applied, the scientists vouched.

Besides its ability to protect against fire and high temperature, Caspol can also make surfaces waterproof. When applied over the concrete surface of buildings, fill up the micro cracks and holes on concrete to prevent water from seeping in. When applied over concrete surface of buildings, the high emissivity of the product reduces the temperature inside the building by at least 5 to 6 degree Celsius, the researchers stressed.

It can be used on a variety of substrates such as masonry surfaces, textiles, paper, thatched leaves and wood to advanced materials like polyurethane and phenolic-based thermal insulation foam pads, VSSC says.

The centre has described the product as one which is eco-friendly as it is free of toxic materials. It could be applied either by brushing or spraying on the desired surface. The economic, water-based formulation with self-extinguishing properties could cure in room temperature and has good adhesion and water repellent characteristics, according to researchers.

“The materials coated with Caspol will be self-extinguished within four seconds after removal of flame. It can adhere well with the substrate surface both in dry condition and after exposing the coated foams to water. Foam materials can be impregnated with Caspol by dip coating,” notes the centre.

India continues to be Polio-Free

India continues to be Polio-Free

Special Immunization Drive to be taken up in Hyderabad and Rangareddy Districts

India continues to be polio free as the country has eradicated wild polio virus and the last case was seen on 13th January, 2011, and it is more than 5 years that no wild polio virus has been detected.

There have been some media reports that polio virus (P2 strain) has resurfaced in India for the first time in 5 years. However, it is not true as detected polio virus strain is vaccine derived poliovirus (VDPV) in a sewage sample collected near the Secunderabad railway station. However, no children have been found to be affected by the detected VDPV isolate in the nearby areas. Last case of Wild Polio Virus Type 2 in country was reported 17 years back in 1999. The detection of vaccine derived polio virus (VPDV) does not change the polio free status. It only indicates the robustness of the surveillance system and willingness of the country to detect any kind of polio virus even from the environment (sewage). Vaccine derived polioviruses are rare strain of the polioviruses that have genetically mutated from the strain contained in the Oral Polio Vaccine (OPV)

A rapid surveillance review of the area revealed that the population immunity against polio type 2 is high as trivalent oral polio vaccine (tOPV) was in use in the state until 24th April, 2016 and two mass vaccination campaign were conducted in January and February, 2016. As per recent sample survey in the area, 94% children were found to have received at least 3 doses of OPV. Therefore, chances of its transmission in concerned area is unlikely.

However, as a precautionary measure against Polio, a special immunization drive is being held, covering high-risk areas of Hyderabad and Rangareddy districts, starting from 20th June, where an estimated 300,000 children will be protected against polio using Inactivated Polio Vaccine (IPV). The special immunisation campaign will ensure all vulnerable children living in high-risk areas are given protection against polio.

As part of the special campaign being organised now, children between the age group of six weeks to three years will be given an additional dose of the injectable polio vaccine (IPV). Vaccination booths will be set up in the areas being covered in these campaigns. However, there will be no door-to-door vaccination campaign. Parents of children living in these areas will be encouraged to ensure that their children get the IPV dose from the nearest vaccination booth which will provide additional protection against all types of polio.

The special campaign covering Hyderabad and Rangareddy districts is yet another evidence of India’s strong commitment to remain polio-free. The last case due to wild poliovirus in India was detected on 13 January 2011 and the country was certified polio-free by WHO in March 2014. The polio-free certification pertains to the absence of wild poliovirus and thus country remains polio-free.

India continues to maintain a highly sensitive surveillance system for polio. All cases of paralysis with sudden onset in children up to 15 years (which is called Acute Flaccid Paralysis or AFP) are picked up by the polio surveillance network. Each of these cases is followed up and their stool samples tested for poliovirus in WHO accredited laboratories. In addition, sewage samples are collected from over 30 sites spread across the country for poliovirus detection at regular intervals.

Between Jan 2015 and May 2016, a total of 14 sewage samples collected from different parts of the country tested positive for VDPVs. All of these have been responded to urgently and appropriately with polio vaccination campaigns. None of these VDPVs detected in the sewage infected any children, so far.

The response by the health authorities to the VDPV in Hyderabad is in accordance with World Health Organization protocols to mitigate any risk of spreading of the virus. WHO, UNICEF and Rotary are supporting Ministry of Health and Family Welfare in rolling out the polio campaign.

Strong measures have been put in place in India to mitigate the risk of an importation and spread of poliovirus from countries with continued circulation of poliovirus. Country has done two nationwide polio campaigns this year. Polio vaccination is being carried out at international borders and is a must for people travelling to polio affected countries.

The polio eradication programme in India continues to protect children from the crippling disease by conducting two nationwide mass polio vaccination campaigns and two to three sub-national campaigns each year. Intensive efforts are also being undertaken in India to improve routine immunization coverage that involves administering polio vaccines, in addition to other vaccines, to infants under the Universal Immunization Programme (UIP).