Earth continues to be on record-breaking spree Rising carbon dioxide, soaring temperatures and melting ice-sheets remain a cause for concern

Earth continues to be on record-breaking spree

Rising carbon dioxide, soaring temperatures and melting ice-sheets remain a cause for concern

Halfway into 2016, the Earth has already broken several records and the news is not good. Here’s a look at a few records that have been broken this year and why we should worry about these.

Rising carbon dioxide in Antarctica: On 15 June, the National Oceanic and Atmospheric Administration (NOAA) announced that the Earth passed another alarming milestone on 23 May when carbon dioxide surpassed 400 parts per million (ppm) at the South Pole for the first time in 4 million years.

According to NOAA, the South Pole has shown a steady upward trend in carbon dioxide, though it is the last to register the impacts of increasing emissions from fossil fuel consumption which is proven to be the driver of greenhouse gas pollution.

“The far southern hemisphere was the last place on earth where CO2 had not yet reached this mark,” said Pieter Tans, the lead scientist of NOAA’s Global Greenhouse Gas Reference Network in a press release. “Global CO2 levels will not return to values below 400 ppm in our lifetimes, and almost certainly for much longer,” added Tans.

The agency further noted that every year since observations began in 1958, there has been more carbon dioxide in the atmosphere than the year before. While last year was the fourth consecutive year that carbon dioxide grew more than 2 ppm, 2016 is expected to be the fifth.

Soaring temperature: Global temperature records were broken yet again in May 2016, making it the hottest May on record, according to Nasa, and the NOAA. The agencies further added that this was the hottest northern hemisphere spring on record.

NOAA said the combined average temperature over global land and ocean surfaces in May was 0.87°C above the 20th century average of 14.8°C, beating the previous record set in 2015 by 0.02°C . May 2016 marks the 13th consecutive month a monthly global temperature record has been broken—the longest such streak since global temperature records began in 1880.

“The state of the climate so far this year gives us much cause for alarm,” said David Carlson, director of the World Climate Research Programme. “Exceptionally high temperatures. Ice melt rates in March and May that we don’t normally see until July. Once-in-a-generation rainfall events. The super El Niño is only partly to blame. Abnormal is the new normal.”

Melting Greenland ice sheet: This year, the Greenland ice sheet melted much earlier than usual and broke records of previous melting by a month. Based on observation-initialized weather model runs by Danish Meteorological Institute, almost 12% of the Greenland ice sheet had more than 1mm of melt on 11 April, following an early start to melting. “We had to check that our models were still working properly,” said Peter Langen, a climate scientist at DMI on the Polar Portal website, which provides research by Danish research institutes on the Arctic.

Previously, the top three earliest dates for a melt area larger than 10% were all in May—5 May 2010, 8 May 1990 and 8 May 2006.

Another study on 9 June showed that there was a dangerous trend coming about in the Arctic. The study published in Nature Communications and conducted by researchers from the University of Sheffield and Columbia University’s Lamont-Doherty Earth Observatory and other institutes showed that record-high temperatures and melting records that affected northwest Greenland in summer 2015 have been linked to the anticipated effects of a phenomenon known as Arctic amplification. This refers to the phenomenon of faster warming of the Arctic compared to the rest of the Northern Hemisphere as sea ice disappears.

Solving India’s problem of jobless growth Jobless growth is a multi-cause, systemic problem. Tackling each cause individually will backfire. A more effective solution is to develop a synergistic policy matrix

Solving India’s problem of jobless growth

Jobless growth is a multi-cause, systemic problem. Tackling each cause individually will backfire. A more effective solution is to develop a synergistic policy matrix

There is an old and wise saying, “If you do not know where you are going, you will end up somewhere else.” Achhe Dinwill come into the lives of Indians when they have dignified livelihoods with decent incomes. The number one priority of the Indian government must be much faster generation of more, and better jobs. The Indian economy’s growth, in terms of gross domestic product (GDP), is the highest in the world at present. However, it is one of the slowest in the world in creating jobs. The employment elasticity of the Indian economy (the rate of jobs growth in relation to GDP growth) has been less than the global average from 2000 to 2010. The average employment elasticity of the global economy was 0.3 in this period, while India’s was only 0.2. Even more worrying is the declining trend of employment elasticity of India’s growth. It declined from 0.44 in the five years 1999-2000 to 2004-05, to only 0.01 in 2004-05 to 2009-10—close to jobless growth. The government’s sights must be fixed on the generation of more jobs as the principal goal, rather than the growth of GDP. Otherwise the Indian economy will produce more GDP and not jobs.

While the Indian government is pressing on the accelerator to induce more job growth, with its Make in India, Skill India and Startup India campaigns, technological advances may be throwing a spanner in the works. Rapid advances in digital technologies and automation are displacing people from work in all sectors of the economy—in manufacturing, in services, and even in knowledge industries. Studies in the US and Australia estimate that by 2035, 35% of all work in their economies will be automated and this can impact over 50% of present employment. The International Labour Organization says, in its Future of Work Report, “The unfurling technological revolution…is so far-reaching in its labour-replacing potential that it is inherently different from what has been experienced in the past.”

Jobless growth of the Indian economy is a “5C” problem: a Complicated Condition Created by Combinations of Causes. Automation is adding another complication to the problem. Silver bullet solutions cannot solve such systemic problems with multiple causes, nor can conventional management approaches. The conventional management approach for solving a complex problem is to break it down into its parts and then address each of them. A tough chief executive may say, “Tell me the six things to fix; I will charge six teams with relevant experts in them to fix them; and I will make sure I chase the teams to get these things done.” Sounds like an effective way to solve a big problem, except that it often makes the problem much worse. Fixes often backfire because the interactions among causes are not understood. Therefore, a fix of one part of the problem makes another part worse, and the whole system’s performance declines.

A person with poor health often has a 5C problem—a complicated condition created by combinations of causes. Many symptoms of the poor health may appear in different parts of the body. Specialists are brought in to treat each of the problems: the weak heart, the poor digestion, the mental anxiety. Often, when a specialist relieves the mental anxiety with a strong medicine, its side effects can make the digestion worse. Then an intestinal specialist may prescribe the latest drug to treat that condition. Which may affect the heart. The sub-systems of the body are parts of an interconnected system. Increasingly, what is missing in modern medicine is a general physician (GP) who has the skill to comprehend the whole system.

Jobless growth can have multiple causes. Consider just five of these: unskilled people, insufficient investment, difficulty of doing business, rigidity in labour laws (difficulties in firing employees), and inadequate (or inappropriate) social security systems. Each of these requires a solution. Therefore, separate ministries are charged with the development of policies and their implementation to address these problems. Then, their progress is closely monitored as it should be. And a competition between them begins. Which is the best ministry, and the best minister? Competitiveness can make cooperation, which is vital to solve 5C problems, even more difficult to obtain.

If the big goal for skill development—skilling up several hundred young people within a few years, which is the goal of the new skills ministry—is achieved before jobs are available for these skilled persons, it will make the social and political problem of joblessness worse, though the skills ministry will have met its goal. Rallying more investments before ease of doing business improves will create more disappointed investors with more stories of the difficulty of doing business in India, which will make it even more difficult to attract more investors. The introduction of new technologies will require new skills which will be learnt mostly on the job where the new technologies are being applied. Flexibility in hiring and firing will reduce employers’ incentives to train their workers. And, more flexibility for employers before social security systems are improved will create social and political pressures against the reform of labour laws. When the system is not considered as an integrated one, there will be many fixes that will backfire and prevent the generation of more jobs faster.

Jobless growth, in spite of high GDP, now complicated by advances in labour-displacing automation, is a 5C problem. 5C problems require “5S” solutions. 5S solutions proceed through three broad stages. First, understand the System. Then, project plausible Scenarios of the future states of the system. Thereafter, Steer Synergistic Solutions.

“Generative Scenario Planning” is a 5S methodology which is much better suited for solving India’s 5C job growth problem than are conventional approaches to policy formulation and implementation. In the first step of generative scenario planning, diverse experts and stakeholders are brought together to brainstorm what are the forces complicating the situation. Each, like the blind men around the elephant, can see a part of the whole picture. Putting their perspectives together, they can see a bigger picture emerging, in which they will find questions to explore. This step is akin to the view a good GP would take of the condition of the body. A good GP generates a good hypothesis or two, and then recommends that a few tests be conducted to understand the condition better, before beginning any treatment.

Similarly, in the second step of the generative scenario process, a few, potentially high-impact factors that require to be much better understood are examined, by consulting relevant experts and gathering data. In the third step, the interactions among these forces are examined to develop a model of the system. The system model focuses on the interactions among the forces. By focusing on the interactions, it anticipates fixes that can backfire, which conventional management approaches that pursue solutions in silos are often blind too. It also enables the solutions to the parts to be modulated, to reduce any unintended bad effects good solutions to one part could have on another. The system model also helps to locate the “high leverage” points, or “pivotal” points in the system. Concerted action at these points can cause the system to take a different course into the future.

With these insights—a broad system model, and its pivotal points—plausible scenarios can be projected of the future. If the forces play out in one way, with action at the pivotal points, then one scenario can emerge. If, on the other hand, other actions, or no actions are taken at the pivotal points, other scenarios can emerge. Scenarios are not predictions of the future. They are guides to what is likely to emerge if some actions are taken, and if forces play out as they may. Scenarios provide a steering mechanism, by providing directions for policies, and by analysing the early warning signals that should be watched out for. They are tools for Steering Synergistic Solutions.

The solution to India’s need to create more jobs faster is to urgently apply a more effective process to develop a good, synergistic policy-matrix. Generative scenario planning, a 5S process for 5C problems, provides a good framework.

Draft National Forest Policy proposes green tax to address forestry woes Once finalized, the National Forest Policy will guide the forest management of the country for the next 25-30 years

Draft National Forest Policy proposes green tax to address forestry woes

Once finalized, the National Forest Policy will guide the forest management of the country for the next 25-30 years

The environment ministry has released the draft of India’s new National Forest Policy (NFP), proposing the levy of a green tax for facilitating ecologically responsible behaviour, supplementing financial resources essential to address forestry woes.

NFP is an overarching policy for forest management to bring a minimum one-third of India’s total geographical area under forest or tree cover. The proposed NFP follows the last edition in 1988.

“Forests and trees constitute nearly one fourth of the geographic area of the country. Protection of this vast and valuable resource, improving and increasing the forest and tree cover requires adequate investment keeping in view the pressures on these forests, and the ecosystem services that they provide to the nation. Large tracts of forest area in the country have degraded due to immense biotic pressure and lack of adequate investment,” says the draft policy.

“The budget of the forestry sector should be appropriately enhanced so that the objectives enshrined in this policy can be achieved. Environmental cess, green tax, carbon tax etc. may be levied on certain products and services for facilitating ecologically responsible behaviour, garnering citizen’s contribution and supplementing financial resources,” the policy said.

According to the India State of Forest Report 2015, released in December 2015, India’s forest and tree cover makes up 24.16% of its geographical area. Read here

The ministry put the draft policy in the public domain last week and sought public feedback by 30 June, providing only 15 days for stakeholders to comment on its provisions. Once finalized, the policy will guide the forest management of the country for the next 25-30 years.

The ministry of environment, forests and climate change (MoEFCC) started working on revising the 1988 version of the forest policy to come up with an overarching policy to address pressure exerted on forest resources by rapid economic development. Read more

The policy has been prepared by the Indian Institute of Forest Management (IIFM), run by the environment ministry.

Besides specifying how to manage forests, the draft policy said, “Other ecosystems such as alpine meadows, grasslands, deserts, marine and coastal areas should be protected and managed as well.”

It also calls for “safeguard(ing) forest lands by exercising strict restraint on diversion for non-forestry purposes” like mining and other industrial projects.

Diversion of forests for industrial projects has been a contentious issue in the country with environmentalists calling for a more sustainable approach that would leave pristine forests untouched.

“Forest land diversion projects related to mining, quarrying, construction of dams, roads and other linear infrastructure need to adopt special caution. Use of state-of-the-art technology which causes minimum pollution and damage should be promoted,” the proposed policy added.

As per MoEFCC’s records, since 1980, a total of 1.21 million hectares of forest land has been diverted; the area accommodated 23,784 proposals for non-forestry purposes—primarily mining and industrial projects. Nearly 400,000 hectares have been diverted in Madhya Pradesh alone, followed by over 100,000 hectares each in Maharashtra and Chhattisgarh.

The draft policy also called for developing “sound ecotourism models” with the focus on conservation while supplementing the livelihood needs of local communities.

“Ensure that tourism is responsible, does not negatively impact wildlife and its habitat and maximizes the income of the local community,” the policy said.

NDA govt overhauls FDI rules Foreign investment caps raised in seven key sectors, including aviation, defence, pharma, food products

NDA govt overhauls FDI rules

Foreign investment caps raised in seven key sectors, including aviation, defence, pharma, food products

The National Democratic Alliance (NDA) government on Monday opened the doors wider to foreign direct investment (FDI) in seven sectors ranging from civil aviation and defence to food products and pharmaceuticals, seeking to attract more overseas money to create jobs and boost economic growth.

The government raised foreign investment caps in some sectors, brought more investments under the automatic route that will not entail prior approval and relaxed some conditions governing FDI to improve the ease of doing business in India.

It’s the second major overhaul of FDI rules in seven months. In November, the government eased norms for overseas investment in 15 sectors. The announcement came on a day the equity and currency markets battled investor concerns over Reserve Bank of India governor Raghuram Rajan’s announcement on Saturday that he will return to academics at the end of his tenure in September and will not seek an extension.

A meeting chaired by Prime Minister Narendra Modi decided on the measures to make India an attractive destination for foreign investors, the government said in a statement. FDI inflows into India rose to $55.46 billion in 2015-16 from $36.04 billion two years ago.

The government will also soon bring out a small negative list of sectors that will spell out some caps and conditions attached to foreign investments.

Click here for enlarge

Girish Vanvari, head of the tax practice at KPMG in India, said the government’s move to ease the FDI regime was well-timed.

“It actually opens up the country to the global world. The liberalization of limits in defence, brownfield pharma, airports, private security services, food processing etc can be game changers and be a huge source of employment creation. The move to prescribe a small negative list for FDI with most sectors under the automatic route is a big mindset shift,” Vanvari wrote in a note.

ALSO READ

• Overhaul of FDI norms a welcome move, but there’s scope for improvement

Defence

According to the changes announced on Monday, the government has made it easier for foreign investors to hold more than 49% (up to 100%) in the defence sector.

“Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded,” the statement said, adding that an earlier condition of access to state-of-the-art technology in the country has been done away with.

This limit has been made applicable to manufacturing of small arms and ammunitions covered under Arms Act 1959.

The defence FDI policy amendment introduced by the government is pragmatic because state-of-the-art technology hadn’t been defined in the previous policy, said Pierre de Bausset, president, Airbus Group India.

“The new policy wording communicates the realization that there may be several other genuine reasons for the government to allow more than 49% stake to the foreign OEM (original equipment manufacturer) in a joint venture with an Indian company and they want to take advantage of these for the benefit of the indigenous industry,” Bausset said. (read more here )

Civil aviation

India will also allow overseas entities—excluding airlines—to own 100% in domestic airlines. Currently, up to 49% FDI is allowed under the automatic route in domestic airlines (scheduled air transport service/ domestic scheduled passenger airline and regional air transport service).

“It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through government approval. For NRIs (non-resident Indians), 100% FDI will continue to be allowed under automatic route,” the government said.

Investment by foreign airlines in domestic airlines will, however, be limited to 49% of paid-up capital.

The government has also allowed 100% FDI under the automatic route in so-called brownfield airport projects with the aim of modernize existing airports. Brownfield projects refer to existing facilities requiring expansion and refurbishment.

Earlier, only FDI up to 74% in brownfield airports was allowed under the automatic route, with investments beyond 74% requiring prior government approval.

Amber Dubey, partner and India head of the aerospace and defence practice at consulting firm KPMG, said the opening of FDI will help bring in much-needed funds and help airlines expand their fleet.

“We may see its positive impact over the next 6-12 months. Though equity holding of foreign airlines is still limited to 49%, a foreign airline can join hands with its sovereign fund or private investors and set up a 100% foreign-owned airline in India,” Dubey said.

“The likely increase in competition will bring down prices and enhance air penetration in India—both international and domestic. Indian carriers can now look for enhanced valuations in case they wish to raise funds or go for partial or complete divestment,” Dubey said. (read more here )

Broadcasting, pharma

It also did away with the need for prior approval of foreign investment in the broadcasting sector, allowing 100% FDI via automatic route for broadcasting carriage services, allowing direct-to-home (DTH) TV operators, cable network companies and mobile television firms to raise 100% FDI under the automatic route.

Earlier, these investments were subject to approval from the Foreign Investment Promotion Board (FIPB).

The government allowed up to 74% FDI under the automatic route for investments in brownfield pharmaceutical projects with investments beyond 74% under the approval route.

The current policy allowed 100% FDI under the automatic route in greenfield pharma (projects built from scratch) and up to 100% FDI in brownfield pharma projects under the government approval route. (read more here )

Single-brand retail

But taking into account its Make in India initiative aimed at promoting manufacturing, the government sought to streamline the waiver from local sourcing norms under single-brand retail to companies with state-of-the-art and cutting edge technology.

It limited the exemption to three years, with the option of a subsequent five-year extension, to encourage such manufacturers to source from India.

The exemption to firms with state-of-the-art and cutting- edge technology will be limited to eight years, said Ramesh Abhishek, secretary, department of industrial policy and promotion, adding that the government will inform Apple Inc. about the new changes.

Apple, the maker of iPhones and iPads, was among the few companies that had sought a waiver from the mandatory sourcing norms from the government to enable it to open exclusive Apple stores. (read more here

Other measures

The government allowed 100% FDI under government approval route for retail, including through e-commerce, in food products manufactured or produced in India.

It also raised the foreign investment limit in private security agencies to 74% from the existing 49%. While investments up to 49% will be under the automatic route, investments above 49% will be subject to government approval.

ALSO SEE

• How large is FDI in India as a proportion of the economy?

It also rationalized rules for setting up of branch offices, liaison offices and project offices for businesses in defence, telecom, private security and information and broadcasting, doing away with the need for approval from Reserve Bank of India or a separate security clearance in cases where FIPB or ministry approval have been received.

The government also did away with some conditions surrounding 100% FDI in animal husbandry, breeding of dogs, pisciculture, aquaculture and apiculture under automatic route.

Major impetus to job creation and infrastructure: Radical changes in FDI policy regime; Most sectors on automatic route for FDI

Major impetus to job creation and infrastructure: Radical changes in FDI policy regime; Most sectors on automatic route for FDI

The Union Government has radically liberalized the FDI regime today, with the objective of providing major impetus to employment and job creation in India. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi today. This is the second major reform after the last radical changes announced in November 2015.  Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI.

            In last two years, Government has brought major FDI policy reforms in a number of sectors viz. Defence, Construction Development, Insurance, Pension Sector, Broadcasting Sector, Tea, Coffee, Rubber, Cardamom, Palm Oil Tree and Olive Oil Tree Plantations, Single Brand Retail Trading, Manufacturing Sector, Limited Liability Partnerships, Civil Aviation, Credit Information Companies, Satellites- establishment/operation and Asset Reconstruction Companies. Measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16, as against US$ 36.04 billion during the financial year 2013-14. This is the highest ever FDI inflow for a particular financial year. However, it is felt that the country has potential to attract far more foreign investment which can be achieved by further liberalizing and simplifying the FDI regime.  India today has been rated as Number 1 FDI Investment Destination by several International Agencies.

Accordingly the Government has decided to introduce a number of amendments in the FDI Policy. Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors.  Details of these changes are given in the following paragraphs:

1.         Radical Changes for promoting Food Products manufactured/produced in India

It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.

2.         Foreign Investment in Defence Sector up to 100%

Present FDI regime permits 49% FDI participation in the equity of a company under automatic route.  FDI above 49% is permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. In this regard, the following changes have inter-alia been brought in the FDI policy on this sector:

i.        Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded.  The condition of access to ‘state-of-art’ technology in the country has been done away with.

ii.      FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.

3. Review of Entry Routes in Broadcasting Carriage Services

FDI policy on Broadcasting carriage services has also been amended. New sectoral caps and entry routes are as under:

Sector/Activity	New Cap and Route
5.2.7.1.1 (1)Teleports(setting up of up-linking HUBs/Teleports); (2)Direct to Home (DTH); (3)Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability); (4)Mobile TV; (5)Headend-in-the Sky Broadcasting Service(HITS)	100% Automatic
5.2.7.1.2 Cable Networks (Other MSOs not undertaking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs))
Infusion of fresh foreign investment, beyond 49% in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require FIPB approval

4.     Pharmaceutical

The extant FDI policy on pharmaceutical sector provides for 100% FDI under automatic route in greenfield pharma and FDI up to 100% under government approval in brownfield pharma. With the objective of promoting the development of this sector, it has been decided to permit up to 74% FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74% will continue.

5.     Civil Aviation Sector

(i)  The extant FDI policy on Airports permits 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route. FDI beyond 74% for Brownfield Projects is under government route.

(ii)   With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100% FDI under automatic route in Brownfield Airport projects.

(iii) As per the present FDI policy, foreign investment up to 49% is allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service. It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and  non-scheduled air-transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy.

6.     Private Security Agencies

The extant policy permits 49% FDI under government approval route in Private Security Agencies. FDI up to 49% is now permitted under automatic route in this sector and FDI beyond 49% and up to 74% would be permitted with government approval route.

7.     Establishment of branch office, liaison office or project office

For establishment of branch office, liaison office or project office or any other place of business in India if the principal business of the applicant is Defence, Telecom, Private Security or Information and Broadcasting, it has been decided that approval of Reserve Bank of India or separate security clearance would not be required in cases where FIPB approval or license/permission by the concerned Ministry/Regulator has already been granted. 

8.     Animal Husbandry

As per FDI Policy 2016, FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture is allowed 100% under Automatic Route under controlled conditions. It has been decided to do away with this requirement of ‘controlled conditions’ for FDI in these activities.

9. Single Brand Retail Trading

It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.

Today’s amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment.

What sets India apart in global power market India is the only major country that is expected to see a significant rise in conventional capacity additions

What sets India apart in global power market

India is the only major country that is expected to see a significant rise in conventional capacity additions 

Two new reports that forecast trends on the global electricity sector expect India to stand apart on three different counts.
First is solar and wind power costs. The International Renewable Energy Agency (IRENA) forecasts that technology, competition, improvements in supply chains, economies of scale and right policies will reduce the cost of electricity from solar and wind power by at least 26% and perhaps as much as 59% between 2015 and 2025.

Click here for enlarge

But some countries are expected to see lower cost reductions. Among them is India. Cost reductions are expected to be driven by a fall in balance of system (BoS) costs (BoS involves system design, finance costs, installation, grid connection, etc). But if one looks at BoS costs of various countries, India is already in the “low cost” basket, providing limited scope for cost reductions, especially when one compares to major countries like the US, Australia and Japan.
The story is similar in the wind sector, where installed costs are already low in India, partly due to usage of relatively smaller and cheaper turbines. “The total installed cost reduction potential remains significant for many markets, although markets with very competitive cost structures, such as China and India, or restrictive policies, will experience lower than average cost reductions,” IRENA said in its report.
The second is conventional energy capacity additions. Bloomberg New Energy Finance forecasts zero-emission energy sources to make up 60% of global installed power capacity by 2040. In the process, conventional energy sources like coal and gas are expected to take a back seat. A combination of pollution regulations, carbon prices and lack of electricity demand growth are expected to lead to the closure of 286 gigawatts (GW) of coal capacity in OECD (Organisation for Economic Co-operation and Development) economies by 2040. China too is dealing with air pollution and has imposed a moratorium on new coal-fired power post 2020.
In this backdrop, India is the only major country that is expected to see a significant rise in conventional capacity additions, primarily due to steady rise in electricity demand, development of domestic mines and easy access to global coal resources. “Low coal prices also mean more new coal capacity in countries such as India. It will see 258 GW of new capacity and trebling of coal consumption by 2040,” Bloomberg New Energy Finance said in its New Energy Outlook 2016 report. And further, “India once again is the major economy to buck the trend, becoming Asia’s largest gas power market by 2040, with 79 GW of cumulative capacity,” it added.
Third, despite the massive investments in clean energy, world power sector emissions are estimated to rise by 2040, mostly due to the rise in emissions in India and South-East Asia. “Despite $9.2 trillion of new clean energy investment worldwide, equating to $370 billion per year, power sector emissions will still be 5% higher in 2040, as progress in the EU, the US and China is offset by steep emissions growth in India and SE Asia,” Bloomberg New Energy Finance said. Power sector emissions in China are likely to fall by 5% in 2015-40, while they are estimated to treble in India.
Overall, India is likely to travel on a different path in global energy trends. It would be interesting to see how industry participants align to this reality.

10 recommendations of Subramanian Committee on new education policy

Here are top 10 recommendations of the Subramanian Committee suggesting measures that the govt must take to improve the education sector that caters to over 300 million students in the country 

The T.S.R. Subramanian committee, entrusted with preparing a new education policy for India submitted the report to the government in May suggesting measures that the country must take to improve the sector that caters to over 300 million students in the country.

The report, a copy of which has been reviewed by Mint, finds glaring holes in the existing system from primary to tertiary level. Here are top 10 recommendations of the report:
1) An Indian Education Service (IES) should be established as an all India service with officers being on permanent settlement to the state governments but with the cadre controlling authority vesting with the Human Resource Development (HRD) ministry.
2) The outlay on education should be raised to at least 6% of GDP without further loss of time.
3) There should be minimum eligibility condition with 50% marks at graduate level for entry to existing B.Ed courses. Teacher Entrance Tests (TET) should be made compulsory for recruitment of all teachers. The Centre and states should jointly lay down norms and standards for TET.
4) Compulsory licensing or certification for teachers in government and private schools should be made mandatory, with provision for renewal every 10 years based on independent external testing.
5) Pre-school education for children in the age group of 4 to 5 years should be declared as a right and a programme for it implemented immediately.
6) The no detention policy must be continued for young children until completion of class V when the child will be 11 years old. At the upper primary stage, the system of detention shall be restored subject to the provision of remedial coaching and at least two extra chances being offered to prove his capability to move to a higher class
7) On-demand board exams should be introduced to offer flexibility and reduce year end stress of students and parents. A National Level Test open to every student who has completed class XII from any School Board should be designed.
8) The mid-day meal (MDM) program should now be extended to cover students of secondary schools. This is necessary as levels of malnutrition and anaemia continue to be high among adolescents.
9) UGC Act must be allowed to lapse once a separate law is created for the management of higher education. The University Grants Commission (UGC) needs to be made leaner and thinner and given the role of disbursal of scholarships and fellowships.
10) Top 200 foreign universities should be allowed to open campuses in India and give the same degree which is acceptable in the home country of the said university.