CNA 11 May 2023:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related C. GS 3 Related ECONOMY 1. The troubles of India’s aviation industry D. GS 4 Related E. Editorials SCIENCE AND TECHNOLOGY 1. A ground view of the Indian Space Policy SECURITY 1. Pokhran-II: A moment of profound epiphany F. Prelims Facts G. Tidbits 1. Santiniketan may be added to World Heritage List 2. Study on sludge finds high potential for use as fertilizer after treatment 3. China objects to India’s bid to blacklist senior JeM leader at the UN H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Nothing here for today!!!
C. GS 3 Related
1. The troubles of India’s aviation industry
Syllabus: Industry – aviation sector
Prelims: About Directorate General of Civil Aviation (DGCA)
Mains: Trends in the Indian aviation sector and key issues affecting the growth of the industry
Context
The Directorate General of Civil Aviation (DGCA) asked GoFirst Airlines to stop selling air tickets immediately as GoFirst Airlines filed for voluntary insolvency proceedings.
Background
For detailed background information, refer to the following article:
UPSC Exam Comprehensive News Analysis dated 05 May 2023
Trends in the Indian aviation sector
- After being severely affected by the COVID pandemic, India’s domestic air traffic has improved in recent times.
- In March 2023, domestic airlines carried about 1.3 crore passengers, which according to the DGCA was 11% more than the same month in the pre-pandemic years of 2018 and 2019.
- According to the Civil Aviation Ministry, India is expected to have over 14 crore passengers in FY 2023-24.
- It is said that the CAPA-Centre for Aviation projects in India would handle more than 130 crore passengers annually in the next 20 years.
- At present, there are 148 airports in India and India is the third-largest domestic market in the world in terms of seat capacity.
- As of March 2023, IndiGo has continued to dominate the domestic market with 56.8% of the market share which is followed by Vistara (8.9%) and Air India (8.8%), AirAsia (7.6%), GoFirst (6.9%), SpiceJet (6.4%) and Akasa Air (3.3%).
Financial viability of the sector
- Despite being regarded as the “fastest-growing aviation sector” in the world, airlines operating in India face difficulties to survive due to a highly competitive and unforgiving business environment.
- Furthermore, the travel restrictions imposed during the pandemic severely impacted all the carriers and India’s airlines as a whole suffered huge losses of close to ₹15,000 crores in the financial year 2020-2021.
- However, even before the pandemic, the financials of various airlines were in the red.
- During the financial year 2019-20, IndiGo was the only airline that made profits.
- All other airlines experienced losses and losses posited by the then state-run Air India stood at ₹4,600 crores.
- It is important to note that financial trouble has caused the folding of major airlines in recent times.
- About 17 airlines, domestic and regional, have already exited the market in the past few years.
- Also, two full-service airlines namely Kingfisher and Jet Airways have exited the aviation industry owing to financial trouble.
- Additionally, the consolidation of four carriers which include Air India and Vistara under the umbrella of the Tatas is expected to make things even more difficult for smaller airlines to operate in the market, pointed out CAPA in its recent report.
- While the state-owned version of Air India was a key impediment to competition, the latest consolidation effort would make sure that 75 to 80% of the market would be captured by Indigo and Air India combined.
- This leaves only about 20% for other smaller airlines such as SpiceJet, GoFirst and AkasaAir.
Image Source: The Hindu
Analysis of the Civil Aviation Industry in India
- In India, the aviation policy is broad-based and is taken care of by the Ministry of Civil Aviation based on the legal framework of the Aircraft Act 1934, and Aircraft Rules 1937.
- The Directorate General of Civil Aviation (DGCA) is the statutory regulatory authority in India for civil aviation. It deals with issues such as safety, licensing, airworthiness, etc.
- Aviation experts opine that India is not at par with the advancements in modern technologies in aerospace and the increasing costs have affected passenger growth.
- The Indian aviation sector initially witnessed significant growth in the 1990s post-liberalisation reforms and the breaking of the monopoly created by Indian Airlines and Air India.
- However, by the early 2000s, only two major airlines that were given licences namely Jet Airways and Sahara were able to survive.
- Low-cost carriers that came into the Indian market in 2003 were expected to provide impetus to the industry’s growth owing to their diversification and lower fares.
- However, the government’s move to levy high taxes on Aviation Turbine Fuel (ATF) affected the profitability of these airlines.
- As per various reports, India’s airfares are about 15% below the break-even point and heavily-taxed ATF which is close to 40-50% of operational expenses accounts for the single biggest expense for the carriers.
- Further, a few of the Indian States also impose provincial taxes of close to 30% on jet fuel which makes shorter flight routes unsustainable for smaller airlines.
- Indian aviation policy has also posed various entry and growth barriers and it has also not affected players uniformly.
- Most of the airlines operating in India also do not own entire fleets as their financials do not allow them to invest huge amounts of money to buy aircraft.
- Close to about 80% of the total commercial fleet in India is leased and leasing increases the costs of operations as these leases each are denominated in U.S dollars.
- Airlines also are required to pay annual lease rents of about ₹10,000 crores to lessors which accounts for close to 15% of the revenues of Indian Airlines.
- Airlines must also bear costs in terms of airport fees that they pay in order to use airport facilities such as for aircraft landing and freight charges for the use of airport infrastructure like runways and passenger terminals.
- For state-run airports, these charges are regulated by the Airports Economic Regulatory Authority (AERA) but there are concerns over the increase in such charges owing to the recent efforts to privatise airports.
- While international airlines pass on most of such charges to the passengers, the carriers in India must pay these charges themselves to offer lower ticket fares.
The Case study of GoFirst
Image Source: The Hindu
- The GoFirst airline filed for bankruptcy at the National Company Law Tribunal (NCLT) and grounded 28 of its 54 aircraft.
- GoFirst Airlines claimed that 50% of its fleet had to be grounded by December 2022 due to the failure of Pratt & Whitney’s engines.
- The airline company also said that it has continued to incur 100% of its operational costs which has led to a loss of over ₹10,000 crores.
- The airline owes a total of close to ₹11,463 crores to its various creditors.
Read more – Go First Insolvency
Nut graf: With Go First, which is one of the oldest private airlines in India, filing for voluntary insolvency proceedings, various concerns regarding the health of the aviation industry in the country have come to the fore. In this context, industry experts have called for a review of the existing policy and infrastructural framework to improve the financial viability of the sector.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Category: SCIENCE AND TECHNOLOGY
1. A ground view of the Indian Space Policy
Syllabus: Awareness in Different Fields – Space
Mains: Analysis of Indian Space Policy 2023
Context: Indian Space Policy 2023 by ISRO
Introduction:
- The Indian Space Research Organisation (ISRO) released the Indian Space Policy 2023 on April 20, 2023, which has been received positively by the industry.
- The Second Space Age began with the emergence of private TV channels, the Internet, mobile telephony, and smartphones, leading to India’s space economy growing to over $9.6 billion.
- India’s space industry has vast potential, with the possibility of growing to $60 billion by 2030 and creating more than two lakh jobs with the creation of an enabling environment.
- However, the lack of suitable legislation, clear rules, and regulations has hindered the growth of India’s space industry, leading to the country spending nearly a billion dollars annually on procuring earth observation data and imagery from foreign sources.
Qualitative difference from previous efforts:
- The new policy focuses on enabling a flourishing commercial presence in space and defines its role in India’s socio-economic development, protection of environment and lives, peaceful exploration of outer space, stimulation of public awareness, and scientific quest.
- The policy emphasises civilian and peaceful applications, and a separate policy document is expected to cover defence-oriented space security.
- The document lays out a strategy and defines the roles of different agencies, including ISRO, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the NewSpace India Limited (NSIL).
- ISRO will no longer be involved in manufacturing operational space systems, and instead focus on R&D in advanced technology and realising space objects for meeting national prerogatives.
- ISRO will also share its technologies, products, processes, and best practices with non-government entities and government companies.
- NSIL will become the interface for interacting with the industry, undertaking commercial negotiations, and providing hand-holding support to ensure the efficient transfer of technologies.
- The NGEs (non-government entities) including the private sector are “allowed to undertake end-to-end activities in the space sector.
- NGEs have been given the authority to design and operate launch vehicles for space transportation and create their own infrastructure.
- NGEs are now allowed to file with the International Telecommunication Union (ITU) and engage in the commercial recovery of asteroid resources.
- Security agencies can enlist NGEs to acquire customised solutions to address specific needs.
Gaps in the policy:
- The new policy lacks a clear timeline for ISRO’s transition and IN-SPACe’s regulatory framework creation.
- The policy framework envisaged requires clear rules and regulations concerning FDI and licensing, government procurement to support new space start-ups, liability in case of violations, and an appellate framework for dispute settlement.
- IN-SPACe is expected to authorise space activities for both government and non-government entities and needs legislative authority to function as a regulatory body.
- Currently, IN-SPACe operates under the Department of Space, and its role is ambiguous as the Secretary (Space) also serves as the Chairman of ISRO, the government entity to be regulated by IN-SPACe.
- A timeline is urgently needed to establish the necessary legal framework and turn the vision of the Indian Space Policy 2023 into reality, launching India into the Second Space Age.
Nut Graf: The New Space Policy 2023 has clearly laid out the roles and responsibilities of all the associated entities. It aims to enhance the private sector participation in space technologies. However, it lacks a clear timeline for ISRO’s transition and IN-SPACe’s regulatory framework creation.
1. Pokhran-II: A moment of profound epiphany
Category: GS03-Security
Syllabus: Security Challenges & their Management in Border Areas
Mains: Significance of India’s credible minimum deterrence strategy of its nuclear doctrine
Context: This article discusses India’s decision to conduct nuclear tests in 1998 and its implications.
Introduction:
- In May 1998, India conducted nuclear tests at Pokhran and termed it a “peaceful nuclear explosion” while declaring itself a nuclear weapons state.
- This decision had significant consequences for India’s national security and international standing.
Immediate consequences:
- The tests were strongly condemned by the international community, and the United States responded by imposing sanctions against India under the Glenn Amendment, which restricted certain forms of aid and military technology transfers.
- Pakistan responded to the tests by conducting its own series of nuclear tests on May 28 and 30, which further escalated tensions in the region.
- China also strongly criticised India for what it saw as a violation of international norms and an affront to the authority of the United Nations and the global community.
- Domestically, the decision to conduct the tests was met with criticism from both the Congress and the Left parties, who argued that it was unnecessary and provocative, and could have serious consequences for India’s security and global standing.
Debunking popular beliefs:
- The nuclearization of India, along with the events that followed challenged and possibly debunked various commonly held beliefs.
- The decision to conduct nuclear tests in 1998 was not an isolated decision made by the sitting government at the time, but rather a culmination of a nuclear program that had been developed by successive Indian governments since independence.
- Jawaharlal Nehru, who is considered a champion of disarmament, recognized the potential security benefits of India’s nuclear program and even stated that if the nation was compelled to use nuclear weapons for other purposes, no pious sentiments would stop them from doing so.
- After China’s nuclear test at the Lop Nor test site in 1964, Lal Bahadur Shastri is believed to have given the go-ahead to Homi Bhabha to explore India’s nuclear weapon options.
- As a result, a small group was formed to research Subterranean Nuclear Explosions for Peaceful Purposes.
- India’s first nuclear test was conducted in 1974 when Indira Gandhi was the prime minister and by 1990, India had a fully developed nuclear weapons program that was approved by every subsequent prime minister.
- Despite international sanctions and opposition, India was not isolated, and its economy did not collapse. Instead, it was recognized as an important player on the world stage, culminating in the India-U.S. Civil Nuclear Agreement in 2005.
- The belief that India and South Asia could not be trusted to manage nuclear weapons was proven wrong, as India has developed sophisticated measures for nuclear deterrence and management, including a well-thought-out nuclear doctrine, C4I (command, control, communications, computers and intelligence) structures required to manage nuclear weapons, deterrence and the escalation ladder.
- India’s decision to develop a credible nuclear deterrent against the odds is turning out to be the correct choice, particularly in light of current threats faced by countries like Ukraine, which denounced nuclear weapons.
Read more on India’s nuclear doctrine.
Nut Graf: The 1998 nuclear tests by India marked a turning point in the country’s self-perception, as it became more confident and recognized its potential. This event also gave India a significant boost in terms of status, security, and influence on the global stage, perhaps the most significant since independence and certainly the strongest since the Cold War’s end.
F. Prelims Facts
Nothing here for today!!!
G. Tidbits
1. Santiniketan may be added to World Heritage List
- Santiniketan, which is associated with the Nobel laureate Rabindranath Tagore, has been recommended for inclusion on UNESCO’s World Heritage List.
- This recommendation was made by the International Council on Monuments and Sites (ICOMOS), which acts as an advisory body to the UNESCO World Heritage Centre.
- Santiniketan, located in the Birbhum district of West Bengal, is also home to the Visva-Bharati University built by Rabindranath Tagore.
- If Santiniketan is selected and listed under the World Heritage List, it would become the second cultural symbol from West Bengal on the UNESCO list.
- In 2021, UNESCO included the “Durga Puja in Kolkata” in its list of Intangible Cultural Heritage of Humanity.
- The nomination would be formally announced at the World Heritage Committee meeting to be held in Riyadh, Saudi Arabia in September 2023.
Learn more about – UNESCO World Heritage Sites in India
2. Study on sludge finds high potential for use as fertilizer after treatment
- In a first-ever study conducted on the sludge found in Indian sewage treatment plants (STP), it was found that most of the sludge had a “high potential” for use as fertilizer, but it required treatment before it could be used in an unrestricted manner in farms or as a biofuel.
- One of the initiatives of the National Mission for Clean Ganga is to derive livelihood opportunities from the river rejuvenation programme.
- “Arth Ganga” is one of the measures under the mission that aims to “monetise” and reuse treated wastewater and sludge.
- This involves converting sludge into usable products such as manure and bricks.
- Sludge is a thick residue that usually consists of rich organic chemicals as well as heavy metals, industrial effluents and bacterial contaminants.
- According to the standards of the United States Environment Protection Agency, treated sludge can be categorised into class A or B.
- Class A is regarded as safe to be disposed of in the open and can be used as organic fertiliser.
- Class B sludge can be used in a “restricted” manner in agricultural applications and the edible parts of the crop should not be exposed to the sludge-mixed soil.
- India, however, does not have any such standards in place to classify sludge.
- A recent study conducted by the Indian Institute of Technology (IIT), Roorkee has revealed that most of the sludge analysed fell into the class B category.
3. China objects to India’s bid to blacklist senior JeM leader at the UN
- India’s proposals to blacklist Pakistan-based Jaish-e-Mohammed (JeM) terrorist Abdul Rauf Azhar at the United Nations Security Council (UNSC) were objected to by China.
- Abdul Rauf Azhar has been involved in planning and executing numerous terror strikes in India which include the hijacking of Indian Airlines aircraft IC814 in 1999, the attack on Parliament in 2001 and the targeting of the IAF base in Pathankot in 2016.
- China objected to the proposal from India to add Abdul Rauf of the JeM to the UN Security Council’s 1267 ISIL and Al Qaida Sanctions list.
- China had also blocked the proposals to blacklist Pakistan-based terrorists Hafiz Talah Saeed, Lashkar-e-Taiba leader Shahid Mahmood and Lashkar-e-Tayyiba terrorist Sajid Mir in the past.
For more information on this topic, refer to the following article:
UPSC Exam Comprehensive News Analysis dated 18 Jan 2023
H. UPSC Prelims Practice Questions
Q1. Consider the following statements with regard to the Laser Interferometer Gravitational-Wave Observatory (LIGO) project: (Level – Easy)
- The Indian LIGO would have two perpendicularly placed 4-km-long vacuum chambers, that constitute the most sensitive interferometers in the world.
- It will be located in the Hingoli district of Maharashtra, about 450 km east of Mumbai.
- The LIGO in the US first detected gravitational waves in 2013, which led to a Nobel Prize in Physics in 2017.
Choose the correct code:
- Only one statement is wrong
- Two statements are wrong
- All statements are wrong
- None of the statements is wrong
CHECK ANSWERS:-
Answer: a
Explanation:
- Statement 1 is correct, The Indian LIGO comprises two 4-km-long vacuum chambers, built perpendicular to each other that constitute the most sensitive interferometers in the world.
- Statement 2 is correct, LIGO-India will be located in the Hingoli district of Maharashtra, about 450 km east of Mumbai.
- The government has recently approved the construction of the project and it will be built by the Department of Atomic Energy and the Department of Science and Technology with the U.S. National Science Foundation and several national and international research institutions.
- Statement 3 is not correct, The LIGO in the US first detected gravitational waves in 2015, which led to a Nobel Prize in Physics in 2017.
Q2. Consider the following statements about Section 144 of the CrPC: (Level – Easy)
- This law empowers the magistrate of any state or union territory in India to pass an order prohibiting the gathering of four or more people in a specified area.
- According to the order under this section, there shall be no movement of the public but the educational institutions may remain open.
- It doesn’t empower the authorities to block internet access in the region.
Which of these are incorrect?
- 1 & 3 only
- 2 & 3 only
- 1 & 2 only
- All of the above
CHECK ANSWERS:-
Answer: b
Explanation:
- Statement 1 is correct, Section 144 of the CrPC empowers a district magistrate, a sub-divisional magistrate, or any other executive magistrate empowered by the state government, to issue orders to prevent and address urgent cases of apprehended danger or nuisance.
- This law empowers the magistrate of a State or UT to pass an order prohibiting the gathering of four or more people in a specified area.
- Statement 2 is not correct, As per the order under the said section, there shall be no movement of public and all educational institutions shall also remain closed.
- Statement 3 is not correct, The Section also empowers authorities to block internet access in the region.
Q3. Which of the following best defines the phrase ‘persona non grata’? (Level–Moderate)
- It refers to a diplomat or foreign person whose entering or remaining in a certain country has been prohibited by that country
- It refers to a diplomat whose immunity has been taken away due to gross violation of a law
- It refers to a diplomat or foreign person who doesn’t need a visa to visit the country
- It refers to a diplomat or foreign person who acts as the ambassador of a nation in the absence of the full-time ambassador
CHECK ANSWERS:-
Answer: a
Explanation:
- In diplomacy, a “persona non grata” refers to a foreign diplomat who is asked to be recalled to their home country by their host country.
- If the person is not recalled as requested, the host state may refuse to recognize the person concerned as a member of the diplomatic mission.
Q4. Which of the following statements is incorrect? (Level – Easy)
- NCLT (National Company Law Tribunal) is a quasi-judicial body that adjudicates issues relating to companies.
- Any person aggrieved by any order of the NCLAT (National Company Law Appellate Tribunal) may file an appeal to the High Court.
- NCLAT is also the appellate tribunal for orders passed by the NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code (IBC), 2016, and for orders passed by the Insolvency and Bankruptcy Board of India (IBBI) under Sections 202 and 211 of the IBC.
- The NCLAT was constituted under Section 410 of the Companies Act, 2013 to hear appeals against the orders of the National Company Law Tribunal (NCLT).
CHECK ANSWERS:-
Answer: b
Explanation:
- National Company Law Tribunal (NCLT) is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act.
- A person aggrieved by an order of the National Company Law Appellate Tribunal (NCALT) may file an appeal to the Supreme Court.
- NCLAT is the Appellate Tribunal for hearing appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
- NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by the Insolvency and Bankruptcy Board of India (IBBI) under Section 202 and Section 211 of IBC.
- NCLAT was established under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of the National Company Law Tribunal(s) (NCLT), with effect from 1st June 2016.
Q5. Which of the following statements are correct regarding the general difference between plant and animal cells? (Level – Easy) [PYQ - 2020]
- Plant cells have cellulose cell walls whilst animal cells do not.
- Plant cells do not have plasma membranes unlike animal cells which do.
- Mature plant cell has one large vacuole whilst an animal cell has many small vacuoles.
Select the correct answer using the code given below:
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: c
Explanation:
- Statement 1 is correct, All plant cells consist of a hard layer outside the cell membrane called a cell wall. Animal cells lack a cell wall.
- Statement 2 is not correct, Plasma membranes are present both in plant as well as animal cells.
- Statement 3 is correct, In plants, a single, large and permanent vacuole is present.
- In animal cells, vacuoles, if present are small and many.
I. UPSC Mains Practice Questions
- How can India’s new Space Policy ensure more active participation from the private sector in Space? Elaborate. (250 words; 15 marks) [GS-3; Science and Technology]
- Why is the Indian Civil Aviation sector considered a deathbed for so many airlines? List out the major reasons ailing the Indian Airlines industry. (250 words; 15 marks) [GS-3; Economy]
Read the previous CNA here.
CNA 11 May 2023:- Download PDF Here
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