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  • 23 Apr 2021
  • 35 min read
Indian Economy

India’s Falling Crude Oil & Natural Gas Production

Why in News

According to the latest government data India's crude oil production and natural gas output declined in the Financial Year (FY) 2020-2021.

  • India’s crude oil and natural gas production have been falling consistently since 2011-12.

Key Points

  • Decline in Production:
    • Crude Oil Production:
      • Declined by 5.2% as private and public firms produced 30.5 million tonnes in 2020-21 compared to 32.17 million tonnes produced during the same period in 2019-2020.
    • Natural Gas Production:
      • Declined by 8.1% and in 2020-21 only 28.67 billion cubic meters was produced compared to 31.18 billion cubic meters in 2019-20.
  • Reason for Decline:
    • Ageing Sources:
      • Most of India’s crude oil and natural gas production comes from ageing wells that have become less productive over time.
    • Need of Intensive Technology:
      • There is no more easy oil and gas available in India and that producers would have to invest in extracting oil and gas using technologically intensive means from more difficult fields such as ultra deepwater fields.
    • Domination of State Owned Companies:
      • Crude oil production in India is dominated by two major state-owned exploration and production companies, Oil and Natural Gas Corporation Limited (ONGC) and Oil India.
        • These companies are the key bidders for hydrocarbon blocks in auctions and were the only successful bidders in the fifth and latest round of auctions under the Open Acreage Licensing Policy (OALP) regime with ONGC bagging seven of the eleven oil and gas blocks on offer and Oil India acquiring rights for the other four.
    • Low Interest of Foreign Companies:
      • India’s efforts to attract foreign energy giants into hydrocarbon exploration and production haven’t been quite fruitful.
        • The government has asked ONGC to boost its investments in explorations and increase tie-ups with foreign players to provide technological support in extracting oil and gas from difficult oil and gas fields.
        • The government is also reaching out to major foreign players to convey that the current system of auction and regulation is much more “open and transparent” than before.
    • Climate Change:
      • Mounting pressure due to climate change is prompting oil and gas players to diversify into clean energy.
  • Reason for Less Private Participation:
    • Operationalisation Delays:
      • One of the key reasons cited by experts for low private participation in India’s upstream oil and gas sector are delays in the operationalisation of hydrocarbon blocks due to delays in major clearances including environmental clearances and approval by the regulator of field development plans.
    • High Cess:
      • Industry players have been calling for a reduction in the cess on domestically produced crude oil to 10% from the current 20%.
    • Limit on maximum Production:
      • Internal maximum production levels set by oil and gas majors to address climate change had also lowered interest by oil majors to expand operations in India.
  • Impact:
    • Reliance on Imports:
      • Low domestic production of crude oil and natural gas makes India more reliant on imports.
        • The share of imports as a proportion of overall crude oil consumption in India has risen from 81.8% in FY2012 to 87.6% in FY2020.
    • Not in Favouring of India’s Vision:
      • Boosting oil and gas production has also been a key part of the government’s Atma Nirbhar Bharat initiative and its goal to boost the use of natural gas in India’s primary energy mix from the current 6.2% to 15% by 2030.
  • Some Government Initiatives to Improve Production:
    • Reforming Exploration & Licensing:
    • National Data Repository (NDR):
      • The NDR was established by the Government in 2017 to assimilate, preserve and upkeep the vast amount of data which could be organized and regulated for use in future exploration and development, besides use by R&D and other educational institutions
      • It is an integrated data repository of Exploration and Production (E&P) data of Indian sedimentary basins.
    • Hydrocarbon Exploration and Licensing Policy (HELP):
      • It replaced the erstwhile New Exploration Licensing Policy (NELP) in 2016 and provides for a single License for exploration and production of conventional as well as non-conventional Hydrocarbon resources; Pricing and Marketing Freedom; reduced rate of royalty for offshore blocks.

Way Forward

  • A variety of new technologies can prolong the life of ageing oil fields but the acquisition, testing and application of these technologies is capital-intensive. Thereby, the fiscal framework must ensure adequate returns for producers to deploy Enhanced Oil Recovery mechanisms.
  • The current approval processes must be simplified with stipulated timelines for each sign-off, thereby avoiding cost escalations due to delays.
  • Potential of Unconventional Hydrocarbons (UHC) such as Shale Oil and gas, tight oil/gas and gas hydrates must be opened now for commercial exploitation.

Source: IE


Governance

Disaster Management Act, 2005 Invoked

Why in News

Recently, the Ministry of Home Affairs invoked Disaster Management Act, 2005 (DM Act) and ordered free inter-state movement of oxygen carrying vehicles.

  • Earlier in March 2020 various government authorities invoked their respective powers under the DM Act to deal with the novel coronavirus (Covid-19) outbreak in the country.

Key Points

  • About:
    • The DM Act was passed by the government of India in 2005 for the ‘efficient management of disasters and other matters connected to it. However it came into force in January 2006.
  • Objective:
    • To manage disasters, including preparation of mitigation strategies, capacity-building and more.
      • Definition of a “disaster” in Section 2 (d) of the DM Act states that a disaster means a “catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man made causes.
  • Major Features of The Act:
    • Nodal Agency:
      • The Act designates the Ministry of Home Affairs as the nodal ministry for steering the overall national disaster management.
    • Institutional Structure: It puts into place a systematic structure of institutions at the national, state and district levels.
      • National Level Important Entities:
        • The National Disaster Management Authority (NDMA):
          • It is tasked with laying down disaster management policies and ensuring timely and effective response mechanisms.
        • The National Executive Committee (NEC):
          • It is constituted under Section 8 of the DM Act to assist the National Disaster Management Authority in the performance of its functions.
          • The NEC is responsible for the preparation of the National Disaster Management Plan for the whole country and to ensure that it is “reviewed and updated annually.
        • The National Institute of Disaster Management (NIDM):
          • It is an institute for training and capacity development programs for managing natural calamities.
        • National Disaster Response Force (NDRF):
          • It refers to trained professional units that are called upon for specialized response to disasters
      • State and District level:
        • The Act also provides for state and district level authorities responsible for, among other things, drawing plans for implementation of national plans and preparing local plans.
          • State Disaster Management Authority
          • District Disaster Management Authority.
    • Finance:
      • It contains the provisions for financial mechanisms such as the creation of funds for emergency response, National Disaster Response Fund and similar funds at the state and district levels.
    • Civil and Criminal Liabilities:
      • The Act also devotes several sections various civil and criminal liabilities resulting from violation of provisions of the act.
      • Under Section 51 of the Act, anyone refusing to comply with orders is liable for punishment with imprisonment up to one year, or fine, or both. In case this refusal leads to death of people, the person liable shall be punished with imprisonment up to two years.
  • Challenges:
    • Absence of Disaster Prone Zones:
      • One of the most glaring inadequacies in the Act is the absence of a provision for declaration of ‘disaster- prone zones’.
      • Almost all disaster related legislations in the world have mapped out disaster- prone zones within their respective jurisdictions.
      • The state cannot be expected to play a pro- active role unless an area is declared ‘disaster- prone’. Classification helps in determining the extent of damages as well.
    • Neglects Progressive Behavior of Disasters:
      • The Act portrays every disaster as a sudden occurrence and completely fails to take into account that disasters can be progressive in nature as well.
        • In 2006, over 3,500 people were affected by dengue, a disease with a history of outbreaks in India, yet no effective mechanism has been put in place to check such an ordeal.
        • Tuberculosis is known to kill thousands of people in the country each year but since its occurrence is not sudden or at once, it has not found a place in the Act.
    • Overlapping Functions:
      • The Act calls for establishment of multiple- national level bodies, the functions of which seem to be overlapping, making coordination between them cumbersome.
      • The local authorities, who have a very valuable role to play in the wake of any disaster as first responders, barely find a mention at all. There are no substantive provisions to guide them, merely a minor reference to taking ‘necessary measures’.
    • Procedural Delays and Inadequate Technology:
      • Added to that, delayed response, inappropriate implementation of the plans and policies, and procedural lags plague the disaster management scheme in India.
      • Inadequate technological capacity for accurate prediction and measurement of the disaster result in large scale damage.

Way Forward

  • Although the DM Act has undoubtedly filled a huge gap in the scheme of governmental actions towards dealing with disasters. Laying down elaborate plans on paper doesn’t serve the purpose unless they are translated into effective implementation.
  • Civil society, private enterprises and Non-governmental Organizations (NGOs) can play a valuable role towards building a safer India.

Source:IE


Biodiversity & Environment

Tough Corals

Why in News

A recent study has suggested that coral structures may withstand climate change owing to their impressive process of forming rock-hard skeletons.

Key Points

  • The Study:
    • It studied Stylophora pistillata, a common stony coral in the Indo-Pacific revealing that coral structures consist of a biomineral containing a highly organized organic mix of proteins that resembles human bones.
    • It highlighted that several proteins are organized spatially – a process that’s critical to forming a rock-hard coral skeleton.
    • The study highlighted that corals have survived global climate change over millions of years by the process called Biomineralization.
      • Biomineralization is the study of processes that lead to the formation of hierarchically structured organic–inorganic materials generated by living organisms, such as shells, bone and teeth.
  • Coral:
    • Corals are made up of genetically identical organisms called polyps. These polyps have microscopic algae called zooxanthellae living within their tissues.
      • The corals and algae have a mutualistic relationship.
      • The coral provides the zooxanthellae with the compounds necessary for photosynthesis. In return, the zooxanthellae supply the coral with organic products of photosynthesis, like carbohydrates, which are utilized by the coral polyps for the synthesis of their calcium carbonate skeletons.
      • In addition to providing corals with essential nutrients, zooxanthellae are responsible for the unique and beautiful colors of corals.
    • They are also called the “rainforests of the seas”.
    • There are two types of corals:
      • Hard, shallow-water corals—the kind that builds reefs.
      • Soft corals and deepwater corals that live in dark cold waters.
  • Benefits of Coral:
    • Habitat: Corals are home to over 1 million diverse aquatic species, including thousands of fish species.
    • Income: Coral reefs and related ecosystems have a global estimated value of ‘$2.7 trillion per year, or 2.2% of all global ecosystem service values’, this includes tourism and food.
    • Coastal Protection: Coral reefs reduce shoreline erosion by absorbing energy from the waves. They can protect coastal housing, agricultural land, and beaches.
    • Medicine: Reefs are home to species that have the potential for treatments for some of the world’s most prevalent and dangerous illnesses and diseases.
  • Threat to Corals:
    • Overfishing:
      • Overfishing of certain species on or adjacent to coral reefs can affect the reef’s ecological balance and biodiversity. For example, overfishing of herbivorous fish can lead to high levels of algal growth.
    • Destructive Fishing Methods:
      • Fishing with dynamite, cyanide, bottom trawling and Muro Ami (banging on the reef with sticks) can damage entire reefs and is unsustainable.
    • Recreational Activities:
      • Unregulated recreational activities and tourism cause damage to the very environment upon which the industries depend. Physical damage to the coral reefs can occur through contact from careless swimmers, divers, and poorly placed boat anchors.
    • Coastal Development:
      • Coastal areas have some of the fastest rates of growth in tropical countries. Airports and buildings are often built on land reclaimed from the sea. Sensitive habitats are destroyed or disturbed by the dredging of deep-water channels or marinas, and through the dumping of waste materials.
    • Pollution:
      • Urban and industrial waste, sewage, agrochemicals, and oil pollution are poisoning reefs. These toxins are dumped directly into the ocean or carried by river systems from sources upstream. Some pollutants, such as sewage and runoff from farming, increase the level of nitrogen in seawater, causing an overgrowth of algae, which 'smothers' reefs by cutting off their sunlight.
    • Climate Change:
      • Coral Bleaching:
        • Coral bleaching is the loss of the algae and a rapid whitening of the coral. This is a stress response by the coral host that can be caused by various factors such as the rise in sea surface temperature. If the temperature decreases, the stressed coral can recover; if it persists, the affected colony can die.
      • Ocean Acidification:
        • The decrease in the pH of the Earth’s oceans, caused by their uptake of anthropogenic CO2 from the atmosphere is known as Ocean Acidification. The decrease in pH has negative consequences for oceanic calcifying organisms such as coral reefs.
  • Initiatives to Protect Corals:
    • A number of global initiatives are being taken to address the issues, like:
    • Similarly, the Ministry of Environment and Forests and Climate Change(MoEF&CC), India has included the studies on coral reefs under the Coastal Zone Studies (CZS).

Biodiversity & Environment

Snow Leopard

Why in News

Just days before celebrating Earth Day, the internet was going viral over a photo of a snow leopard.

Key Points

  • About:
    • Scientific Name: Panthera uncia
    • Top Predator: Snow leopards act as an indicator of the health of the mountain ecosystem in which they live, due to their position as the top predator in the food web.
  • Habitat:
    • Mountainous regions of central and southern Asia.
    • In India, their geographical range encompasses:
      • Western Himalayas: Jammu and Kashmir, Himachal Pradesh.
      • Eastern Himalayas: Uttarakhand and Sikkim and Arunachal Pradesh.
    • Snow Leopard capital of the world: Hemis, Ladakh.
      • Hemis National Park is the biggest national park in India and also has a good presence of Snow Leopard.
  • Protection Status:
  • Conservation Efforts by India:
    • The Government of India has identified the snow leopard as a flagship species for the high altitude Himalayas.
    • India is also party to the Global Snow Leopard and Ecosystem Protection (GSLEP) Programme since 2013.
    • HimalSanrakshak: It is a community volunteer programme, to protect snow leopards, launched in October 2020.
    • In 2019, First National Protocol was also launched on Snow Leopard Population Assessment which has been very useful for monitoring populations.
    • SECURE Himalaya: Global Environment Facility (GEF)-United Nations Development Programme (UNDP) funded the project on conservation of high altitude biodiversity and reducing the dependency of local communities on the natural ecosystem.
    • Project Snow Leopard (PSL): It was launched in 2009 to promote an inclusive and participatory approach to conserve snow leopards and their habitat.
    • Snow Leopard is on the list of 21 critically endangered species for the recovery programme of the Ministry of Environment Forest & Climate Change.
    • Snow Leopard conservation breeding programme is undertaken at Padmaja Naidu Himalayan Zoological Park, Darjeeling, West Bengal.

Global Snow Leopard and Ecosystem Protection (GSLEP) Programme

  • The GSLEP is a high-level inter-governmental alliance of all the 12 snow leopard range countries.
    • The snow leopard countries namely, India, Nepal, Bhutan, China, Mongolia, Russia, Pakistan, Afghanistan, Kyrgyzstan, Kazakhstan, Tajikistan, and Uzbekistan.
  • It majorly focuses on the need for awareness and understanding of the value of Snow Leopard for the ecosystem.

Living Himalaya Network Initiative

  • Living Himalayas Initiative (LHI) is established as one of WWF’s global initiatives to bring about transformational conservation impact across the three Eastern Himalayan countries of Bhutan, India (North-East) and Nepal.
  • Objectives of LHI include adapting to climate change, connecting to habitat and saving iconic species.

Source: TH


Science & Technology

Brucellosis

Why in News

Recently, Kerala launched preventive measures after a few cases of brucellosis, a zoonotic infection, have been detected in some dairy animals.

Zoonotic Diseases

  • It is a disease that passes into the human population from an animal source directly or through an intermediary species.
  • Zoonotic infections can be bacterial, viral, or parasitic in nature, with animals playing a vital role in maintaining such infections.
  • Examples of zoonoses include HIV-AIDS, Ebola, Malaria, and the current Covid-19 disease.

Key Points

  • About:
    • It is a bacterial disease caused by various Brucella species, which mainly infect cattle, swine, goats, sheep and dogs.
    • It is also known as Malta fever or Mediterranean fever.
    • Brucellosis is endemic in India causing huge economic losses to dairy industry due to:
      • Infertility
      • Abortion
      • Birth of weak off springs
      • Reduced productivity
  • Infection to Humans:
    • Infection:
      • Brucellosis has infected over 3000 people in China.
      • Humans generally acquire the disease through:
        • Direct contact with infected animals.
        • Eating, drinking contaminated animal products, unpasteurized milk.
        • Inhaling airborne agents.
      • The US Centers for Disease Control and Prevention states that person-to-person transmission of brucellosis is “extremely rare” but some symptoms may reoccur or never go away.
    • Symptoms:
      • Fever, sweats, malaise, anorexia (psychological disorder in which one eats less due to fear of weight gain), headache and muscle pain.
    • Treatment and prevention:
      • It is usually treated with antibiotics, including rifampin and doxycycline.
      • Avoiding unpasteurised dairy products and taking safety precautions such as wearing rubber gloves, gowns or aprons, when handling animals or working in a laboratory can help prevent or reduce the risk of getting brucellosis.
      • Other preventive measures include cooking meat properly, vaccinating domestic animals, etc.

Source:TH


Important Facts For Prelims

AIM-PRIME

Why in News

Recently, the Atal Innovation Mission (AIM), NITI Aayog launched AIM-PRIME (Program for Researchers on Innovations, Market-Readiness & Entrepreneurship).

Atal Innovation Mission

  • About:
    • AIM is Government of India’s flagship initiative to promote a culture of innovation and entrepreneurship in the country.
  • Objective:
    • To develop new programmes and policies for fostering innovation in different sectors of the economy, provide platform and collaboration opportunities for different stakeholders, create awareness and create an umbrella structure to oversee the innovation ecosystem of the country.
  • Major Achievement:
    • AIM’s initiatives have played an important contributory role in the advancement of India from a position of 81 in the Global Innovation Index in 2015 to a position of 48 in 2020.

Key Points

  • Aim:
    • Promoting science based, deep technology ideas to market through training and guidance over a period of 12 months.
      • Deep technology is based on tangible engineering innovation or scientific advances and discoveries. Deep Tech is often set apart by its profound enabling power, the differentiation it can create, and its potential to catalyse change.
  • Focus Area:
    • Science-based, knowledge-intensive, deep technology entrepreneurship.
  • Launching & Implementing Agency:
  • Beneficiaries:
    • Technology developers (early-stage deep tech start-ups, and scientists/ engineers/clinicians) with strong science-based deep tech business ideas.
    • Chief Executive Officers and Senior incubation managers of AIM Funded Atal Incubation Centers that are supporting deep tech entrepreneurs.
  • Significance:
    • Candidates selected for the programme will get access to in-depth learning via a comprehensive lecture series, live team projects, exercises, and project-specific mentoring.
    • They will also have access to a deep tech start-up playbook, curated video library, and plenty of peer-to-peer learning opportunities.

Source:PIB


Biodiversity & Environment

Protest Against Blue Flag Beaches

Why in News

Recently Odisha government’s plan to get Blue Flag Certification for five beaches was opposed by the fishermen.

  • Odisha planned to develop five more beaches in three districts to meet international standards after receiving the certification for Puri’s Golden Beach in 2020.

Key Points

  • Fishermen’s Demands:
    • The proposed land for the certification is used by the fishermen to anchor their boats.
      • They want a permanent sea mouth to anchor the fishing boats.
    • Protection of livelihood should be ensured and protected.
    • Reopening of a new fishing jetty.
  • Blue Flag Certification:
    • Blue Flag beaches are considered the cleanest beaches of the world.
    • The Blue Flag is one of the world’s most recognised voluntary eco-labels awarded to beaches, marinas, and sustainable boating tourism operators.
    • Criteria for Certification:
      • In order to qualify for the Blue Flag, a series of stringent environmental, educational, safety, and accessibility criteria must be met and maintained.
      • There are around 33 criteria that are to be met to qualify for a Blue Flag certification,
        • Such as the water meeting certain quality standards, having waste disposal facilities, being disabled- friendly, having first aid equipment, and no access to pets in the main areas of the beach.
      • Some criteria are voluntary and some compulsory.
    • Organisations:
      • The Blue Flag Programme for beaches and marinas is run by the international, non-governmental, non-profit organisation FEE (the Foundation for Environmental Education).
        • FEE (the Foundation for Environmental Education) was established in France in 1985.
    • On the lines of Blue Flag certification, India has also launched its own eco-label BEAMS (Beach Environment & Aesthetics Management Services).

BEAMS

  • Beach Environment & Aesthetics Management Services that comes under ICZM (Integrated Coastal Zone Management) project.
  • This was launched by the Society of Integrated Coastal Management (SICOM) and the Union Ministry of Environment, Forest and Climate Change (MoEFCC).
  • The objectives of BEAMS program is to:
    • Abate pollution in coastal waters,
    • Promote sustainable development of beach facilities,
    • Protect & conserve coastal ecosystems & natural resources,
    • Strive and maintain high standards of cleanliness,
    • Hygiene & safety for beachgoers in accordance with coastal environment & regulations.
  • There are eight beaches in India which have received Blue Flag Certification:
    • Shivrajpur in Gujarat,
    • Ghoghla in Daman & Diu,
    • Kasarkod in Karnataka and,
    • Padubidri beach in Karnataka,
    • Kappad in Kerala,
    • Rushikonda in Andhra Pradesh,
    • Golden beach of Odisha,
    • Radhanagar beach in Andaman and Nicobar.

Source DTE


Important Facts For Prelims

Madhu Kranti Portal & Honey Corners

Why in News

Recently, the Union Minister for Agriculture and Farmers' Welfare has launched “Madhu Kranti Portal & Honey Corners.

Key Points

  • Madhu Kranti Portal:
    • It is an initiative of National Bee Board (NBB), Ministry of Agriculture and Farmers Welfare under National Beekeeping & Honey Mission (NBHM).
    • This portal is being developed for online registration to achieve a traceability source of Honey and other beehive products on a digital platform.
    • The platform will help in checking the quality and source of adulteration of honey.
    • Significance:
      • The portal will help in increasing income of the farmers, boost exports and increase employment generation.
      • The portal will hold the database of all the stakeholders involved in honey production, marketing chains, hive production and sales.
      • It will increase the reach of honey to international markets.
  • Honey Corners:
    • Honey Corners are special spaces for the marketing and sale of honey.
    • It is operated by National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).

National Agricultural Cooperative Marketing Federation of India Ltd.

  • The NAFED is registered under the Multi State Cooperative Societies Act.
  • It was set up in 1958 with the objective to promote cooperative marketing of Agricultural Produce to benefit the farmers.

National Bee Board

  • Small Farmers’ Agribusiness Consortium (SFAC) registered the NBB as a society under the Societies Registration Act, 1860 in 2000 and it was reconstituted (with the secretary as chairman) in June 2006.
  • Objective:
    • Overall development of beekeeping by promoting scientific beekeeping in India to increase the productivity of crops through pollination and increase the honey production for increasing the income of the beekeepers/farmers.
    • PresentlyNBB is implementing National Horticulture Mission (NHM) and Horticulture Mission for North East and Himalayan State (HMNEM)

National Beekeeping & Honey Mission (NBHM)

  • The mission was announced as part of the AtmaNirbhar Bharat scheme. It is a central sector scheme.
  • NBHM aims for the overall promotion & development of scientific beekeeping in the country to achieve the goal of ‘Sweet Revolution’ which is being implemented through the National Bee Board (NBB).

Honey Mission

  • The Honey Mission was launched in August 2017 in line with the ‘Sweet Revolution’.
    • The 'Sweet Revolution' was launched in 2016 to promote beekeeping and associated activities.
  • Under the Honey Mission, Khadi and Village Industries Commission (KVIC) provides awareness, training and ‘Bee Boxes’ along with Bee Colonies to the farmers.

Source: PIB


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