AUG 18 ST drones

DR ONE R E GULATI ONS I N I NDI A

Why in News?

Ministry of Civil Aviation (DGCA) has for the first time released  a  set  of rules  regulating  the  civil  use  of drones in India which will be effective from 1st December, 2018.

What are drones?

• Drones or unmanned aerial vehicles (UAVs) have been defined as: “Powered, aerial vehicles that do not carry a human operator, use aerodynamic forces to provide vehicle lift, can fly autonomously or be piloted remotely, can be expendable or recoverable, and can carry a lethal or nonlethal payload.”
•   Applications of UAVs
o Damage assessment of property and life in areas affected with natural calamities, surveys, critical infrastructure monitoring.
o Security function: Drones are used by Armed
Forces for tactical purposes at border.


Concerns regarding use of drones
• Potential threat: Its use poses a security threat, and has the potential for invading privacy. Owning to the privacy and security concerns Directorate General of Civil Aviation (DGCA) had earlier banned the launch of any UAVs in India.
• The airspace over Indian cities already has a high density of aircraft traffic and unregulated use of drones poses a grave threat for air collisions and accidents.
• Drone  traffic  management:  It  will  require  planned research and practical experimentation. Small drones fly at low altitudes and are more susceptible to changing weather conditions. Strong winds and rains can easily knock them off course, out of their designated operating zones.
• Drones  as  weapons:  They  are  considered  a  cost- effective weapon system with no risk to operators. Thus, they are being portrayed as weapons of future warfare.
• There is possibility of drones being misused by terrorists, criminals, drug cartels and other antisocial groups.
o Surveillance and Crowd Management: It is used for effective and smooth conduct of events like Kumbh
Mela etc.
o Monitoring of wildlife: UAV are deployed these days for better counting and guarding unreachable region.
o Agriculture:  SENSAGRI  (SENsor  based  Smart  AGRIculture)  is  a  drone-based  crop  and  soil  health
monitoring system using hyperspectral remote sensing (HRS) sensors.
o Mode of Delivery: Many e-commerce companies are using it for delivering their product like Amazon.


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o Other uses: For surveys, infrastructure monitoring, commercial photography, aerial mapping etc.

Current Scenario

• According to a research the Indian drone market will reach USD 885.7 million by 2021, and the global market size will touch USD 21.47 billion.
• The International Civil Aviation Organization (ICAO) has been the primary platform leading the global drone governance efforts. The ICAO has issued several rules in the form of circulars and manuals but has not come up with comprehensive guidelines.
• India  has  had  military  drones  –  or  Unmanned  Aerial  Vehicles  (UAV)  –  for  many  years  and  is  also developing combat versions. But the use of drones for civilian purposes remain underdeveloped, because regulations regarding the technology were not yet fully established.
• The absence of well-defined regulations had made innovation and attracting investments very difficult in this field, and the new rules are expected to ease manufacture and use of drones in the country.

Key features of the Regulations for Civil Use of Remotely Piloted Aircraft System (RPAS)

•   The Digital Sky Platform is the first-of-its-kind national unmanned traffic management (UTM) platform that
implements “no permission, no takeoff” (NPNT).
o The UTM operates as a traffic regulator in the drone airspace and coordinates closely with the defence and civilian air traffic controllers (ATCs) to ensure that drones remain on the approved flight paths.
o Before every single flight, drone pilots are required to request permission to fly via a mobile app, which will automatically process the request and grant or reject it.
o If a drone pilot tries to fly without receiving permission from the Digital Sky Platform, he or she will simply not be able to take-off.
• Users will be required to do a one-time registration of their drones, pilots and owners. All civil RPA, shall require to obtain Unique Identification Number (UIN) from DGCA.
• As per the regulation, there are 5 categories of Remotely Piloted Aircraft System (RPAS) categorized by weight, namely
o Nano (Less than or equal to 250 grams),
o Micro (250 grams to 2kg),
o Small (2kg-25kg),
o Medium (25kg-150kg) and
o Large (Greater than 150kg).
• Operators of civil drones will need to get a Unmanned Aircraft Operator Permit (UAOP) from the DGCA with certain exceptions such as RPA owned and operated by NTRO, ARC and Central Intelligence Agencies.
• The DGCA has to issue the UAOP within seven working days and it shall be valid for five years and not transferrable.
• RPAS shall be flown only by someone  over 18 years of age, having passed 10th  exam in English,  and undergone ground/ practical training as approved by DGCA.
•   DGCA has also clarified that no remote pilot can operate more than one RPA at any time.
• The basic operating procedure will restrict drone flights to the daytime only and that too within “Visual Line of Sight (VLOS)”.
•   Manned aircraft will be given priority. There can’t be any human or animal payloads, or anything hazardous.
It cannot in any manner cause danger to people or property.
•   An insurance will be mandatory to cover third-party damage.
•   Minimum manufacturing standards have been prescribed for RPAS.
•   Restrictions placed:
o RPAS cannot be flown within 5km of the perimeters of the airports in Mumbai, Delhi, Chennai, Kolkata,
Bengaluru and Hyderabad and within 3km from the perimeter of any other airport.
o It cannot fly within “permanent or temporary Prohibited, Restricted and Danger Areas” and within 25km
from international border which includes the Line of Control (LoC), Line of Actual Control (LAC) and Actual
Ground Position Line (AGPL).
o It cannot fly beyond 500 m into sea from the coast line and within 3 km from perimeter of military installations.


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o It also cannot fly within a 5 km radius of the Vijay Chowk in Delhi, within 2 km from perimeter of strategic locations/ vital installations notified by Ministry of Home Affairs and within 3 km from radius of State Secretariat Complexes.
o It also cannot be operated from a mobile platform such as a moving vehicle, ship or aircraft.
o Eco-sensitive zones around National Parks and Wildlife Sanctuaries are off-limits without prior permission.

Conclusion

• The Drone Policy is a big step taken by GOI towards regulating drones in India. It shows GOI's commitment to use of artificial intelligence for technological and economic growth.
• However, the involvement of multiple regulatory agencies and compliances/clearances will discourage the players.
•   Further, drones cannot be used as of now for delivery of food/ other items, or to carry passengers.
• There are restrictions on drone operations in India by foreign players (except through a license to an Indian entity).
• Government has setup the Drone Task Force under the chairmanship Jayant Sinha which will provide draft recommendations for Drone Regulations 2.0.

AUG 18 ST Gaganyaan

GAGA NY AA N MI SSI ON

Why in News?

Recently the Prime Minister in his Independence Day speech announced that ISRO will be sending its first human spaceflight mission into the space by 2022.

Background

• In 2004, the manned space mission was first endorsed by the ISRO Policy Planning Committee with the target initially set was in 2015, preparations have been going on since then.
• ISRO has successfully demonstrated some of the technologies required for the mission such as Space Capsule Recovery Experiment (SRE-2007), Crew module Atmospheric Reentry Experiment (CARE-2014), GSLV Mk-III (2014), Reusable Launch Vehicle- Technology Demonstrator (RLV-TD), Crew Escape System (July 2018) and Pad Abort Test (2018). ISRO also recently unveiled a space capsule (crew module) and Space suit prototype.
• ISRO has also finalized the layout and design of Environmental Control & Life Support System (ECLSS) which maintains a steady cabin pressure and air composition, removes carbon dioxide and other harmful gases, controls temperature and humidity, and manages parameters like fire detection and suppression, food and water management, and emergency support.

Specifications

• GSLV Mk-III launch vehicle will be used to launch Gaganyaan. Two unmanned Gaganyaan missions will be undertaken prior to sending humans, with first unmanned flight within 30 months.
•   The total programme is expected to be completed before 2022 and cost is expected to be less than Rs. 10,000
Crores.
• The mission will aim to send a three-member crew to space for a period of five to seven days. The spacecraft will be placed in a low earth orbit of 300-400km.
• This will be the first human mission indigenously developed by ISRO, though to accelerate the programme, ISRO may consider collaborations with space agencies from friendly countries.
• It will comprise of a crew module and service module that constitute an orbital module. The crew will do microgravity experiment during the mission.

Need for Gaganyaan

• Potential for an enormous range of experiments in regard effects of microgravity and cosmic radiation on bio-organisms ranging from bacteria and plants to large mammals. Some of the research at the International Space Station (ISS) has already started paying off in concrete terms, for instance, it has led to huge advances in multiple technologies ranging from weather research to disaster management to ballpoint pens.
• Putting  humans  into  space  has  also  led  to  massive  advances  in  medical  technologies  and  basic understanding of functioning of human bodies: For instance, microgravity can lead to a debilitating loss of muscle and bone density. Scientists have developed technologies and fitness mechanisms that have been breakthroughs in the treatment of osteoporosis and maintaining muscle mass.
• Many of the present technologies were result of space research: Telemedicine, including miniaturized ultrasound units and remote monitoring systems were developed through space research. Similarly, development of laser surgery and robotic surgery was a result of developing better laser technology as part of space technology.
• Application of space technologies in various areas such as Agriculture, Railways, Human Resource Development and Road, Transport & Highways, etc. for ease of living.

The Objectives of the Gaganyaan Mission are:
• Enhancement   of   science   and   technology levels in the country
• A national project involving several institutes, academia and industry
•    Improvement of industrial growth
•    Inspiring youth
•    Development of technology for social benefits
•    Improving international collaboration
o Water purification and sewage recycling can be transformed by adapting such technology at scale. For
instance, NASA’s water purification techniques are being deployed in drier regions of Africa.


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o Similarly, an ethylene removal system called Advanced Astroculture (ADVASC) was developed in space which removes viruses, bacteria and mould and is now being used to prolong the shelf life of fruit and vegetables and in winemaking.
o Also, Silica Aerogel developed by ISRO for space purposes found its utility in other fields like agriculture, etc.
• Manned  space  research  is  a  much  larger employment  generator  than  unmanned  missions:  ISRO  has estimated that the Gaganyaan Mission will create 15,000 jobs because of the new technologies involved.
•   Enhance national pride as the programme will make India the fourth nation in the world to launch a Human
Spaceflight Mission. So far, only the USA, Russia and China have launched human spaceflight missions.

Challenges

• Biosciences: While ISRO has perfected the engineering aspects of the mission, bioscience is a new field for ISRO that requires greater technological knowhow and collaboration and support from other organizations. Creating habitable space ecospheres also requires a host of technologies, including the development of exotic materials and first class recycling systems.
• Cost:  Manned  missions  require  huge  investments.  So,  for  a  developing  country  like  India  with  limited resources, there is always a debate on need of such costly missions versus spending on social sector.
• Moving  to  a  manned  programme  will  involve  research  and  development  of  a  whole  new  range  of technologies  and precision:  It involves  mastering  of the highly complicated  and dangerous  reentry and recovery ability. The spacecraft needs to withstand very high temperatures, in excess of several thousand degrees. Also, the spacecraft needs to reenter the atmosphere at a very precise speed and angle, and even the slightest deviation could end in disaster.
• Training of astronauts: India lacks training facilities for astronauts, though ISRO has demanded for indigenous training centers for its astronauts since early 2000s, no action have been taken yet.

AUG 18 SEC BRU tribe Exercise Peace Mission 2018 Exercise Maitree, Barak 8 missile

BRU DE AL

Why in news?

The Union Home Ministry has agreed to relax conditions laid down in the ‘four-corner agreement’ signed for
repatriation of Bru migrants from Tripura to Mizoram.

More on news

• Bru tribe migrated from Mizoram to Tripura in 1997 due to ethnic violence in their home state.
• In July 2018, a “four- corner agreement” was signed with provisions such as a one-time financial assistance of Rs 4 lakh as fixed deposit in the name of the head of family only after 3 years of uninterrupted  stay in Mizoram,  a house building

About BRU tribe
• It is also known as Riang and it is spread across the northeastern states of Tripura, Assam, Manipur, and Mizoram..
•    It is categorized as primitive tribal group.
• They are the second largest tribe      of Tripura after the Tripuri tribe.
• The dance performed by Bru tribals after harvesting of shifting cultivation is ‘Mai-nouhma’ dance.
assistance of Rs 1.5 lakh in three instalments and free ration for two years and a monthly assistance of Rs
5,000 for each family.
• However, due to protest regarding these provisions certain revisions have been done based on the new demands such as:
o Relaxation in the period of stay for cash assistance of Rs 4 lakh to two or even 1.5 years.
o Allowing withdrawal of 90% of this 4 lakh as bank loan immediately after their return.
o Rs 1.5 lakh house assistance in a single instalment or two.
o Other measures include Eklavya residential schools, land for Jhum cultivation, permanent residential
and ST certificates, and a special development project.
•   Their demand of cluster village was however rejected.

4.4. EXE R CI SE SCO PE ACE MI S SI ON 2018

Why in news?

The SCO peace mission for 2018 will be conducted in
Chebarkul, Chelyabinsk, Russia this year.

About the peace mission

• Exercise Peace Mission 2018, the joint military exercise of Shanghai Cooperation Organisation (SCO) is conducted biennially for SCO member states.
• It provides an opportunity to the armed forces of SCO nations to train in counter terrorism operations in urban scenario in a multinational and joint environment.
• This is the first time India is participating in this peace mission post joining SCO.
• The  exercise  provided  an  opportunity  for  the armies   of   India   and   Pakistan   to   operate


About SCO
• It  is  a  permanent  intergovernmental  international organisation created in 2001.
• Its members include India, Pakistan Kazakhstan, China, Kyrgyztan, Russia, Tajikistan, and Uzbekistan.
• It was preceded by the Shanghai Five mechanism which did not include Uzbekistan, Pakistan and India.
•    Its main goals include:
o Strengthening  mutual  trust  and  neighbourliness among the member states;
o Promoting  their  effective  cooperation  in politics, trade, the economy, research, technology and culture etc.;
o Making joint efforts to maintain and ensure peace, security and stability in the region;
o Moving towards the establishment of a democratic, fair and rational new international political and economic order.
together outside the United Nations umbrella, under which they had operated in the past.



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4.5. MAI TR E E E XE R CI SE 2 018

Why in News?

Exercise Maitree, a joint military exercise between Indian Army and Royal Thai Army was recently conducted in
Thailand.

More

•   It is a platoon level exercise which comprises of infantry component.
• The exercise seek to enhance the skills in joint counter insurgency and counter terrorist operations in rural and urban scenario under UN mandate and seek to increase interoperability between both forces for joint operation.

4.6. BAR AK -8 MI SSI LE

Why in news?

The Barak 8 missile defence system will be procured by the Israeli Navy to protect its economic zones and strategic facilities.

About Barak 8 missile

• Barak 8 (the Hebrew word for Lightning), jointly developed by India and Israel, is a long-range surface-to-air missile (SAM).
• It is designed to defend against any type of airborne threat including aircraft, helicopters, anti-ship missiles, and UAVs as well as cruise missiles and combat jets.
•   Its main features include:
o Capability to take down an incoming missile as close as 500 meters away;
o Maximum speed – Mach 2
o Operational range - 70 Km (which has been increased to 100 Km)
o Two-way data link, Active Radar Seeker Missile with 360-degree coverage and flexible command and
control system enabling Simultaneous Engagements on multiple targets in all weather conditions.

AUG 18 SEC Maoist ORG Defence Offset Fund (DOF).

MAOI ST OR GANI ZA TI ONS I N TOW NS A ND CI TI E S

Why in News?

Recent arrests of five people with alleged Maoist links for their role in Bhima – Koregaon incident has once again
brought the debate on the concept of “Urban Naxalism”.

Background

•   1967: Naxalite movement started by Charu Majumdar, Kanu Sanyal and Jangal Santhal in Naxalbari area of
West Bengal.
• 2004: CPI (Maoist) was formed with the merger of CPI (Marxist-Leninist) People’s War Group (PWG) and the Maoist Communist Centre of India. It professed a violent ideological line to overthrow the democratically elected Parliamentary form of Government in India through a three pronged strategy that include:
o Using its People’s Liberation Guerilla Army (PLGA), Maoists aim to capture territories in the country side and gradually encircle the urban centre.
o Use of Mass Organizations, also known as ‘Front Organizations’ mainly in urban areas to mobilize certain targeted sections of the urban population, recruit professional revolutionaries, raise funds for insurgency, create urban shelters for underground cadres.
o These organizations are generally manned by ideologues that include academicians and activists, mostly operating under the garb of Human Rights NGOs that are organically linked to CPI (Maoist) party structure but maintain separate identities in an attempt to avoid legal liability.
o Such organizations are also adept at using the legal processes of the Indian State to undermine and emasculate enforcement action by the security forces and also attempt to malign the State instituti ons through a concerted and systematic propaganda and disinformation campaigns to further their cause. These ideologues have kept the Maoist movement alive and are in many ways more dangerous than the cadres of the PLGA.
Operational Structure of CPI (Maoist): The Polit Bureau (PB), the think tank of the Maoist organization keeps in touch with the over-ground frontal organizations (operating in urban areas), operators and
sympathizers and formulates long-term policy and strategy.
o To form a Rainbow Coalition of various insurgent groups: so as to launch a united front attack against the existing state machinery.
• Banned under Unlawful Activities (Prevention) Act, 1967: CPI (Maoist) party and all its formation and front organizations have been listed as Terrorist organizations under the Unlawful Activities (Prevention) Act, 1967.

About Urban Naxalism

• In 2004, a CPI (Maoist) document titled ‘Urban Perspective: Our Work in Urban Areas’ elaborated on Urban naxalism strategy: with a major focus on gaining leadership and expertise from urban areas, it emphasized on mobilizing industrial workers and urban poor, establishing front organizations, building ‘tactical united fronts’ of likeminded organizations including the students, middle class employees, intellectuals, women, dalits and religious minorities and engaging in military tasks such as providing personnel, technologies, material and infrastructure along with infiltration of police.
• Active  front  organizations  in  many  Indian  cities: Intelligence report reveals that front organizations supporting 'Urban Naxalism' are active in a number of cities including Delhi, Mumbai, Kolkata, Chandigarh, Ranchi, Hyderabad, Visakhapatanam, Madurai, Thiruvananthpuram, Nagpur and Pune.

Significance of Urban presence for Naxals

•   Logistics Support: The utility of having a presence in

Arrest of a person professing the ideology of a Maoist
• Kerala High Court in 2015 had held that being a Maoist and having a political ideology of the Maoist is no crime unless the police form a reasonable opinion that his activities are unlawful.
• Only if the individual or organisation abhors and resorts to physical violence, the law agency can prevent or take action against the individual or organisation.
urban centres and operate there was best illustrated when police seized empty rocket shells and rocket



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launchers in 2006, in Mahabubnagar district, Andhra Pradesh. This elaborates the network that Maoists had built to manufacture rocket parts and transport them to different parts of the country.
• Tapping  industrial  workers:  penetrating  the  working  class  movement  in  important  industries  such  as communication,  oil  and  natural  gas,  coal,  transport,  power,  defence  production,  etc  is  envisaged. The detection of Maoist activities in towns such as Surat, in Gujarat, earlier in 2006, and later on several other industrial belts, clearly reaffirms this.
• Attracting students and youth:  The Urban Movement has attracted students towards the Maoist fold in various parts of the country. Security agencies believe that the front organizations have started vigorous movement in the education sector, to rope in students from several reputed colleges for their cause.
• Urbanisation itself has some faultlines and the Maoists could well exploit these to their advantage:  The Maoists enjoy some degree of sympathy and support among the urban intellectuals and middle class, including students and teachers in schools, colleges and universities.
• Rest and recuperations:  On many occasions  important  top-level  leaders of the CPI (Maoist) have been arrested from cities and towns hiding under the garb of civil society.

Way Forward

• Ministry of Home Affairs suggests that the strategy to tackle Left-Wing Extremist (LWE) challenges must include plans to tackle 'Urban Naxalism'. State must initiate legal action against the Maoist front organizations.
•   A separate budget should be provided to counter the growing Naxal footprint in cities.
• Initiating  legal proceedings against the ideologues including academicians and activists  often resulted in negative publicity for enforcement agencies due to effectiveness of the Maoist propaganda machinery. There is a need to address the issue through systematic, protracted and persistent efforts.

4.2. DE FE NCE OFFSE T FU N D

Why in news?

Defence ministry is planning to set up an offset fund namely Defence Offset Fund (DOF).

About DOF

• It will be set up to fund promising defence start-ups
•   It  will  be  modelled  on  the  successful
Electronics Development Fund (EDF).
• In this fund, the 30 per cent contribution would come from a foreign vendor in discharge of an offset obligation and rest would be raised from market.
• Contributions to the DOF will be eligible for  a  multiplier  of three,  which  means that   by   contributing   $100   million,   a vendor would extinguish offset liabilities worth $300 million.
• To create the DOF corpus,  the defence ministry is amending the defence offsets guidelines that are set out in the Defence Procurement Procedure of 2016.
• The   proposed   offset   guidelines   allow foreign arms vendors to discharge offsets
— which amount to at least 30 per cent of the actual value of all contracts above Rs
20 billion.


What are offsets?

• Offsets are essentially benefits that a buyer gets from a seller — technology/capability that Indian industry gets from a foreign vendor selling equipment to India.
• The policy on offsets was first introduced as part of the Defence Procurement Procedure (DPP) 2005, and has undergone revisions since then.
• The main objective of the Defence Offset Policy is “to leverage capital acquisitions to develop Indian defence industry by fostering development of internationally competitive enterprises, augmenting capacity for research, design and development related to defence products and services, and encouraging development of synergistic sectors like civil aerospace and internal security”.

About EDF (Electronics Development Fund)

• It is a “Fund of Funds” contributing 15 per cent of the value of professionally managed “Daughter Funds”, required to raise the remaining 85 per cent from the market.
• The   funds   choose   and   fund   start-ups   for   developing technologies in electronics, Nano-electronics and information technology.
• The MeitY nominated Canara Bank Venture Capital to select the Daughter Funds. These must be private- or government-run funds following SEBI rules.



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•   This fund can then be invested in following areas:
o Indian defence related infrastructure
o Sharing specified critical technologies
o Equity investment in defence manufacturing companies
o Investment  in Sebi-regulated  fund  dedicated  for development  of start-ups  and MSMEs of defence,
aerospace and internal security-related enterprises in the country

AUG 18 ECO Blockchain Bidder Information Management System (BIMS) Water aerodrome

WOR L D’S FI R ST BLOC K C HAI N BO ND

Why in News?

The World Bank has launched the world’s first public bond created and managed using only Cin order
to test how the technology might improve  current  bond sales practices.

More About News

•   The project is called ‘BONDI’ (Blockchain Operated New Debt Instrument), which is also reference to the Bondi
Beach in Sydney.
• Commonwealth Bank of Australia (CBA) has been mandated by the World Bank to be the sole arranger of the bond.
•   It is a Kangaroo bond (foreign  bonds issued in Australia in local currency).

Benefits of Blockchain Bonds

•   The launch of the blockchain bond is an initial step in moving bond sales away from manual processes towards
automation.
•   Blockchain technology could help in cutting down bond settlement time “from T+2 days currently to T+2
minutes”.
• The technology has potential to deliver substantial cost savings as intermediary activities can be eventually reduced or removed.
•   It also improves the reputation of crypto-technologies which are currently viewed suspiciously.

For more details on blockchain technology, kindly refer  July 2018 current affairs

3.11.    BI DDE R    I NFOR MATI O N    M AN AGE ME NT    SY STE M    (BI MS)    AND BHOOMI R ASHI

Why in news?

The Ministry for Road Transport & Highways, Ministry for Shipping and Ministry  for Water Resources, River Development and Ganga Rejuvenation had launched  two IT initiatives – BIMS & Bhoomi Rashi – with aim to expedite pre-construction processes relating to bidding and land acquisition respectively.


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Bidder Information Management System (BIMS)

• The portal will work as a data base of information about bidders, covering basic details, civil works experience, cash accruals and network, annual turnover etc. BIMS will be used by all the project implementation agencies
of the Ministry.
• It is   aimed   at   streamlining    the   process   of   pre- qualification of bidders for Engineering Procurement Construction  Mode  of contracts  for National  Highway works with enhanced transparency and objectivity.
• The bidders would be responsible for ensuring that their latest details are available on the BIMS portal.
•   The portal will be operated in conjunction with the CPPP
portal for invitation of bids for civil works for EPC mode.
• It is estimated that BIMS portal will significantly reduce the procurement time for projects through an objective


Engineering, Procurement, Construction contract
(EPC)
• It is a prominent form of contracting agreement in the construction industry.
• The engineering and construction  contractor will carry out the detailed engineering design of the project.
• Then  they  procure  all  the  equipment  and materials necessary.
• And, then construct to deliver a functioning facility or asset to their clients.
and transparent online evaluation system thereby leading to accelerated project implementation.

Bhoomi Rashi

• It is a portal that has been developed in collaboration with National Informatics Centre (NIC), comprising the entire revenue data of the country. The entire process flow, from submission of draft notification by the State Government to its approval by the Ministry is online.
• The portal had been created for expediting the process of publication of notifications.
• It has been integrated with Public Financial Management System (PFMS). With this payment of Compensation by the Ministry  to  the  beneficiaries  will  be  just-in-time,  and without any parking of funds.


• PFMS is   a    web-based    online    software application developed and implemented by the Office of Controller General of Accounts (CGA). to facilitate sound public financial management system for Government of India (GoI).
• It provides various stakeholders with a real time, reliable and meaningful management information  system  and  an  effective decision support system, as part of the Digital India initiative of GoI.
• It would help in tracking and monitoring of flow of funds to the implementing agencies.
• It will act as one of the key functionalities to facilitate payment related to compensation for land acquisition to all the beneficiaries directly through the Bhoomi Rashi system.

3.12. WATE R AE R ODR OME

Why in news?

The Ministry of Civil Aviation has approved a proposal to set up water aerodromes in the country.

Details

• Water aerodrome is a defined area on water, including any buildings, installations and equipment, intended to be used either wholly or in part for the arrival, departure and movement of aircraft.
• The Airports Authority of India has identified 5 states i.e. Odisha, Gujarat, Assam, Maharashtra and Andhra Pradesh where water aerodromes would be developed.
• They are proposed to be developed near locations of tourist and religious importance.
• In its first phase, water aerodrome will be established at Chilika Lake in Odisha, Sardar Sarovar Dam and Sabarmati River Front in Gujarat.
• The  Directorate  General  of Civil  Aviation  had  earlier released licensing norms for the aerodromes, under which:


About Chilika Lake

• It is Asia's largest brackish water lagoon located in coastal Odisha.
• It is separated from the Bay of Bengal by a 60 km long narrow strip of marshy islands and sand- flats.
• Some of the prominent islands like Nalabana, Kalijal, Somolo, Honeymoon, Break-fast, Birds and Rajahansa inhabited by fishermen families, are popular tourist destinations.
• Because  of  its  rich  bio-diversity  and  socio- economic  importance, Chilika was  designated as   a Ramsar site   in   1981   to   afford   better protection

Kalijai Temple: It is located on an island in the Chilika Lake, where Goddess Kalijai is worshipped. The celebration   of   Makar   Sankranti   here   attracts pilgrims as well as tourists.
o An aerodrome cannot be used for scheduled air transport services unless there is a license.

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o The formal application for setting up a water aerodrome has to be submitted at least 90 days before date of intended operations.
o An entity seeking to set up a water aerodrome has to take approvals from various authorities, including the ministries of Defence, Home, Environment and Forests, and Shipping.
o A water aerodrome license would be valid for two years.
•   Benefits of such water aerodromes:
o Such aircraft are expected to take people across water faster and more safely than local boats.
o This would boost tourism and hence economic opportunities in the area.
o In later phases,  government  may also consider  operations  of seaplanes  under  regional  connectivity scheme UDAN.
• However, despite the economic benefits the aerodrome is being opposed in Odisha due to its possible adverse impact on the biodiversity.

Reasons of resistance from Odisha

• Safety of birds and humans: For six months between October and March, Chilika lake turns into a temporary habitat for lakhs of migratory and residential birds. If an aircraft flies at low height, the birds can get hit. While the bird population will be in danger, safety of passengers of amphibious aircraft will also be jeopardized.
•   Noise pollution: generated by thousands of motorized boats has already taken a toll on the endangered
Irrawaddy dolphins in the lake. The introduction of amphibious aircraft will further worsen the situation.
• Economic impact: There would be direct impact on fish and other marine biodiversity which would affect two lakh fishermen families in the region.
• Existing regulation: The movement of boats are restricted in many areas of Chilika, including the Nalabana bird sanctuary. In this light the operation of an aerodrome will be difficult to justify.

AUG 18 ECO Environmental Aspects in Petroleum SectoR DISTRICT MINERAL FOUNDATION

SAFE TY , SE CUR I TY AND E NV I R ONME NTAL ASPE C TS I N PE TR OLE UM SE CTOR

Why In news?

Recently,  Standing  Committee  on Petroleum  and Natural Gas submitted  its report on  ‘Safety,  Security  and
Environmental Aspects in Petroleum Sector’

Introduction

•   Efficient, reliable and competitively priced energy supplies are prerequisites for accelerating economic growth.
Petroleum   industry   handles   highly   inflammable   hydrocarbons,   and   operates   processes   under   high temperature and pressure.
• Industry  has  a  significant  influence  on  environmental  pollution  through  exploration  and  production operations,  oil  spillage,  and  refining  operations.  Therefore,  the  safety  and  security  and  environment protection in petroleum and natural gas industry is of paramount and vital importance and its operation in a
safe mode is necessary both for the employees and the
society at large.
• The major cases of accidents across the oil and gas industry occur due to: (i) not following the standard operating procedures (SOPs), (ii) violation of work permit system, and (iii) knowledge gap.

Issues

• Multiple     Regulating     Body:     Various     statutory authorities are involved in enforcing safety in the petroleum and natural gas industry.
o In the oil exploration  and production  segments, the DIRECTORATE GENERAL OF MINES SAFETY (Mo

OISD (Oil Industry Safety Directorate):
• It’s a technical directorate under the Ministry of Petroleum and Natural Gas that formulates and coordinates  the  implementation  of  a series  of self-regulatory measures aimed at enhancing the safety in the oil & gas industry in India.
Petroleum and Explosives Safety Organisation (PESO)
• It   is   the   apex   department   to   control   and administer manufacture, storage, transport and handling  of  explosives, petroleum,  compressed gases and other hazardous substances in India.
• It functions under the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry. HQ at Nagpur


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Labour and Employment) and OISD (MoPNG) regulate safety.
o In the oil processing and distribution segments, the PESO and PNGRB, which are under the Ministries of
Commerce  and  Industry  and MoPNG  respectively,  are  enforcing  safety.  PESO  regulates  97%  of the
premises, followed by 2% by DGMS, and 1% by OISD.
• Incidents  of  Oil  Spill:  Oil  spill  is  a  major  problem  in  hydrocarbon  sector  which  adversely  affects  the environment.
• Poorly trained worker: Accidents were also caused due to poorly trained workers. It can be resolved by imparting regular training and refresher training of all the workers including contract workers and security personnel.
•   Pilferage from oil pipelines by anti-social elements poses a major hazard risk.
• Transportation of Petroleum Products: Accidents took place that involved trucks transporting petroleum products. To prevent such incident, it should be mandatory to install GPS along with Vehicle Tracking System (VTS) in the tank trucks.

Way Forward

• Formation of a Unified Safety Board for Overcoming Regulatory challenges: Committee recommended that PESO may be empowered to work as a single framework for regulation of safety in the entire hydrocarbons sector.
• Environmental Friendly: Developing Accountability mechanism to oversee the steps taken by refineries in mitigating environmental pollution using the latest and cleaner technology, recovery of by products and resource conservation and effluent treatment facilities.
• Safety and Security audit should be carried out at periodic intervals to update and upgrade the security systems in all the oil and gas installations.
• Use of technology: Geo-physical Mapping of Potential Disasters for advance planning to minimise damage and to deal with accidents efficiently and effectively.

3.9. DI STR I CT MI NE R AL F OUN DATI ON (DM F)

Why in News?

Recently, Centre for Science and Environment (CSE) released the District Mineral Foundation (DMF) Status Report,
2018, which highlighted several shortcomings in the implementation of DMF scheme.

Background

•   DMF was instituted in March 2015 through an amendment under the Mines and Minerals (Development and
Regulation) Act, 1957.
• Section 9(B)(1), of the MMDR (Amendment) Act,2015 provides for setting up of DMF as a non-profit Trust in every mining district and stipulates miners to pay a part of their royalty for the well being of mining affected people so that they too can benefit from natural resources in their areas.

Significance behind establishing DMF

• Aimed to address the ironic inequality of India’s mining  affected districts  where the richest lands are inhabited by some of the poorest and most deprived persons and to ensure socio- economic and environmental justice for them by maximizing the welfare and benefit of the mining-affected people and areas in a targeted manner.
• Recognizes the right of the people to benefit from natural resources: It is a people-centric vision of natural resource governance where their right to benefit has been put at the forefront.
•   Has defined objectives, specific beneficiaries and geographies (directly and indirectly mining -affected areas)
and certain ‘high priority’ issues to focus on for intervention:  The high priority issues, towards which at least
60  per cent  of the  DMF  budget  should  be  used,  include  drinking  water  supply,  sanitation,  healthcare, education, welfare of women and children, welfare of aged and disabled, skill development, environment preservation, and pollution control measures. Some states have also specified other sectors such as agriculture, affordable housing.



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• DMF’s objective  and functioning  is  guided  by  three  fundamental  laws of the  land : these  include  the Constitutional provisions as related to the Fifth and Sixth Schedules for governing tribal areas, the Panchayats (Extension to Scheduled Areas) Act (PESA), 1996, and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (the FRA).

Issues with the DMF operation

• No DMF trust has identified its beneficiaries: The beneficiaries of the mining affected areas have not been identified by any of the trusts.
• Excessive control by State Governments: There was too much state government intervention in deciding DMF fund utilization even though DMF rules and Central Government’s flagship scheme- Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) categorically emphasize the role of Gram Sabha.
o Telangana in June 2018 even amended its DMF rules to withdraw participation of Gram Sabha from the
DMF body.
o The Chhattisgarh DMF Rules has created a “Settlor” - the Secretary of Mines - who has over-riding powers
to include or scrap any project.
o In seven out of twelve states reviewed under the study, DMF body was dominated by Government officials and political executives- MLAs, MPs or in some cases elected Panchayat members. However, there was no
representation of mining affected people.
• Misplaced allocations of DMF resources: This results in by-passing key issue areas of the affected districts such as healthcare or nutrition.
o For instance, in Odisha’s Sundergarh district where under five mortality rates in rural areas are very high and nearly 50% children below five have stunted growth, only Rs. 3 Crore is provided for Child development out of district’s Rs. 745 Crore sanctions.
o Similarly,    spending    is    diverted    to    various
construction activities in Urban areas such as 46% of total  DMF  sanctions  in  Chhattisgarh’s  Korba district is used for works in urban areas which include education hub, roads, urban sanitation works, multilevel parking lots, bus stops etc.
o In  Odisha’s  Jharsuguda,  96%  of  health  sector sanctions are being spent to construct a medical college in Keonjhar town.
• Lack of planning and ad-hoc investments are one of the biggest drawbacks in most districts, resulting in many cases districts leaving out people and areas worst hit by mining  from DMF fund allocation,  for instance, in Jharkhand’s Dhanbad district’s Jharia coal mine region, which is one of the worst affected areas in the district, no fund is allocated at all from DMF sanctions.
• Absence of proper administrative setup: except for a handful of three out of 50 districts studied, no DMF has setup an office for planning and coordination, engaging concerned officials and experts. DMFs are

About Pradhan Mantri Khanij Kshetra Kalyan Yojana
(PMKKKY)
•    PMKKKY is a programme launched in September
2015 to provide for the welfare of areas and people directly  or  indirectly  affected by  mining related  operations.  PMKKKY  is  implemented  by the District  Mineral  Foundations (DMFs)  of  the respective districts using the funds accruing to the DMF from miners.
•    The overall objectives of PMKKKY scheme are:
o to  implement  various  developmental  and welfare projects/programs in mining affected areas. These projects/programs will be complementing the existing ongoing schemes/projects of State and Central Government;
o to  minimize/mitigate  the  adverse  impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and
o to  ensure  long-term  sustainable  livelihoods for the affected people in mining areas.
operating in an ad hoc manner with intermittent meetings of DMF bodies where decisions on sanctions are being made. Some districts (as in Odisha and Jharkhand) have engaged private consultants to oversee DMF implementation.
• Indifferent attitude of the state governments: Governments in 11 states have issued notifications establishing DMF as a Trust, but the notifications do not essentially elaborate on the composition and functions of the Trust or the rights of the beneficiaries. Gujarat is an exception in every aspect as it does not recognize DMF as a Trust and establishes it as a ‘society’.
• Lack of transparency and accountability:  Public disclosure of information is the key to ensure accountability, however,  except for Odisha and Chhattisgarh,  no state has a  proper  DMF website. Also no audits have


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happened for most DMFs. Even for the few districts where it has happened, such as in Chhattisgarh and Odisha, so far financial  audits have only happened  once and no performance  evaluation  or social audit essential for public schemes has ever been undertaken.

Way Forward

• If developed  and  implemented  well,  DMFs not only have a  huge potential  for improving  the lives and livelihoods of some of the poorest communities but they could also be a model for inclusive governance.
• State  governments  must  provide  districts  the  flexibility  to  plan  and  invest  on  the  needs  of  the  local communities. The intended autonomy of DMF Trusts should be maintained.
• A systematic and bottom-up planning approach must be followed to make investments effective. The potential can also be improved by considering convergence with other programmes of the Central and state governments once priority issues are determined.
• Districts must identify DMF beneficiaries; there cannot be a Trust without beneficiaries. This will also help in targeted investments such as for addressing women and child development issues.
• Gram Sabhas (and ward members where applicable) should have a representation in the DMF body. Not following this is in contravention to the spirit of the DMF law as well as the state DMF Rules.
• For efficiency of operations, all DMFs must have an office comprising of officials and experts. Independent organizations/planning experts can be roped in from time to time for effective planning.
• Public disclosure of information is key to DMFs’ transparency of operation. District-specific DMF-related information must be made available through a website. To ensure access, information should be shared by using panchayat-level platforms.

AUG 18 ECO unconventional hydrocarbons

UNCO NV E NTI ONA L HY D R OCAR BONS

Why in news?

Recently, Union Cabinet approved the policy to permit exploration and exploitation of unconventional hydrocarbons  such as Shale oil/ gas, Coal Bed Methane (CBM),  etc. under  the existing  Production  Sharing Contracts (PSCs), CBM contract and Nomination fields.



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Background

• Existing    contractual    regime    of    PSCs    (pre Hydrocarbon Exploration and Licensing Policy or HELP) did not allow contractors to explore and exploit CBM or other unconventional Hydrocarbons in already allotted/ licensed/ leased areas while CBM  contractors  were not allowed to exploit any other hydrocarbon except CBM.
• Acreages held at present by various contractors in PSCs (72,027 Sq Km) and CBM blocks (5269 Sq Km) and National Oil Companies (NOCs) in nomination regime constitute a significant part of India’s sedimentary basin.
• India  currently  has  around  100  – 200  Trillion Cubic  Feet  (TCF)  of shale gas reserves  in five sedimentary   basins   and   there   is   a   strong


Hydrocarbons Vision – 2025
The Hydrocarbons Vision-2025, presented in the year 2000, laid down the framework which would guide the policies relating to the hydrocarbons sector for the next 25 years. It includes:
• To  assure  energy  security  by  achieving  self-reliance through increased indigenous production and investment in equity oil abroad.
• To enhance quality of life by progressively improving product standards to ensure a cleaner and greener India.
• To develop hydrocarbon sector as a globally competitive industry which could be benchmarked against the best in the world through technology upgradation and capacity building in all facets of the industry.
• To have a free market and promote healthy competition among players and improve the customer service.
• To ensure oil security for the country keeping in view strategic and defence considerations.
possibility of shale reserves in basins such as Cambay, Krishna- Godavari (KG), Cauvery, etc where mature organic rich shale exist. CBM reserves are found in Coal bearing areas in 12 states including Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra,  Assam, Odisha, Rajasthan, Tamil Nadu,
Telangana and West Bengal.

Benefits of the move

• It will encourage the existing contractors in the licensed/   leased   area   to   realize   the   full potential of Contract Areas and unlock the prospective unconventional hydrocarbons in their existing acreages.
• New      investment      in     Exploration      and Production (E&P) activities: it will increase the chances of finding and producing new hydrocarbon        which        will        help        to meet energy needs of the economy and hence moving towards energy security as envisaged in Hydrocarbons Vision 2025 (box).
• Exploration   and   exploitation   of   additional Hydrocarbon resources will give new impetus to economic activities, additional employment generation and will benefit various sections of society.
• It will lead to induction of new, innovative and cutting edge technology and forging new technological collaborations to exploit unconventional hydrocarbons.
• There  will  be  a  complete  shift  from  ‘One Hydrocarbon Resource Type’ to ‘Uniform Licensing Policy’ which is presently applicable in   Hydrocarbon   Exploration   and   Licensing Policy (HELP) and Discovered Small Field (DSF) Policy.

Some  important  specific  initiatives  taken  to  enhance  the
domestic natural gas production, expand the gas pipelines and secondary infrastructure and develop the gas consuming markets include:
• 100% Foreign Direct Investment (FDI) in many segments of the hydrocarbon sector.
• Linkage of gas prices to the market/important hub prices under the New Domestic Natural Gas Price Guidelines of
2014.
• Marketing and pricing freedom for new gas production from Deepwater, Ultra Deepwater and High Pressure-High Temperature areas, subject to certain conditions. Also, Marketing and pricing freedom for gas produced from Coal Bed Methane (CBM) fields to incentivize CBM operations in the country.
• Development  of   2,650   km-long   Jagdishpur-Haldia  & Bokaro-Dhamra natural gas pipeline to ensure supply of natural gas to eastern India.
• Reduction of basic customs duty on LNG from 5% to 2.5% in the 2017 budget to boost LNG demand in industrial and commercial sectors, especially power, petrochemical, fertilizer and CGD, and also help in reviving stranded capacity of power and fertilizers plants.
• Gas pooling mechanism for fertilizer sector to encourage utilisation of fertilizer units in the country.
• Priority for allocation of domestic gas accorded to Piped Natural Gas (PNG)/Compressed Natural Gas (CNG) segments to meet 100% of their demand and faster roll out of PNG connections and CNG stations to promote the use of natural gas in the transport sector, households and small industries.





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Other steps taken towards enhancing the production of unconventional hydrocarbons:

• Oil ministry recently included shale under the definition of petroleum: Earlier, under the Petroleum and Natural Gas Rules, 1959, Petroleum included naturally occurring hydrocarbons, whether in the form of natural gas or in a liquid, viscous or solid form, or a mixture of these, but did not include coal, lignite, and helium occurring in association with petroleum or coal or shale.
•   Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016 which has the four main facets:
o uniform license for exploration and production of all forms of hydrocarbon,
o an open acreage policy,
o easy to administer revenue sharing model and
o marketing and pricing freedom for the crude oil and natural gas produced.
• In 2015, the Cabinet had approved the Marginal Field Policy (MFP)/ DSF policy with the objective to bring marginal fields, that could not be monetized for years due to various reasons such as isolated locations, small size, prohibitive development costs, technological constraints, unfavourable fiscal regime, to the production at the earliest so as to augment the domestic production of oil and gas.
• Open Acreage Licensing Policy (OALP): Setting up of National Data Repository. OALP enables upstream companies to bid for any oil and gas block without waiting for the announcement of bidding.
• Shift towards a gas based economy: The Government wants to make India a gas-based economy ‘by boosting domestic production and buying cheap LNG’. India has set a target to raise the share of gas in its primary energy mix to 15% by 2022. GoI has adopted a systematic approach to focus on all aspects of the gas sector:
o Development of gas sources either through domestic gas exploration & production (E&P) activities or through building up facilities to import natural gas in the form of LNG
o Development  of  adequate  gas  pipeline  infrastructure  including  nationwide  gas  grid  and  Secondary distribution network
o Development of gas consuming markets including fertilizer, power, transport and industries, etc.