The HINDU Notes – 26th June - VISION

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Monday, June 26, 2017

The HINDU Notes – 26th June






💡 NASA-ISRO satellite at stake

Scientists keep fingers crossed

•Space scientists in India and America are on tenterhooks as Prime Minister Narendra Modi and U.S. President Donald Trump meet for the first bilateral in Washington on Monday.

•At stake is the world’s most expensive earth-imaging satellite till date being jointly made by the NASA and the ISRO.

•The satellite aims to study global environmental change and natural disasters. However, climate change seems to be a red rag for the current American administration.

•Mr. Trump calls climate change a hoax created by China by adhering to his views that “the concept of global warming was created by the Chinese in order to make U.S. manufacturing non-competitive”.

•On the other hand, Mr. Modi has penned a pictorial book — Convenient Action: Continuity for Change — that compiles his actions and beliefs on climate change.

•Recently, the U.S. walked out of the Paris Climate Change Treaty while India continues to honour its commitments.

•Can a middle ground be found or can the jointly-made satellite escape President Trump’s anti-climate change gaze?

Cause of worry

•This is what is worrying scientists at Pasadena, a suburb of Los Angeles, where at the Jet Propulsion Laboratory work has begun in full earnest to realise the NASA-ISRO Synthetic Aperture Radar satellite called NISAR. Scientists at the Space Applications Centre in Ahmedabad are also anxious as they go about fabricating unique components for the massive satellite.

💡 China shares in MSCI index: what it means

•Last week, Morgan Stanley Capital International (MSCI), a widely-tracked global index provider, said it would add China’s local currency shares, referred to as China ‘A’ shares, to its benchmark emerging markets index, after three years of having rejected overtures on the same.

What is MSCI?

•It is the world’s biggest index compiler, with more than $10 trillion in assets benchmarked to its products, with emerging markets alone accounting for $2 trillion.

Why are MSCI indices important?

•The indices are closely tracked by global investors. Inclusion in MSCI Inc.’s stock indices opens up investment interest from foreign investors in a particular country and brings a stamp of financial credibility.

What is mainland China and why haven’t its shares been featured in the MSCI index so far?

•It is an area under the direct jurisdiction of China and excludes special administrative regions of Hong Kong and Macau. Chinese mainland markets were not open to foreign investors.

•So, foreign investors hitherto had access to non-mainland shares — those that are traded in the markets of Hong Kong and Macau. The non-mainland shares have been part of the MSCI Emerging Markets Index. China has been working to ease restrictions on foreign investors, influencing MSCI’s decision now.

What happens now?

•MSCI will add 222 China A shares (shares of large enterprises) starting next year. The stocks, which would represent a weightage of only 0.73% in the benchmark, will be included via a two-phase process in May and August next year.

How will this affect India?

•Most experts see only minimal impact on the Indian market in terms of outflows. However, MSCI has said it is open to adding more China A shares, provided it opens up its equity market further. If China continues to gain more weightage on the index, more money could well flow out of India.

💡 ‘Super-efficient energy category to be new norm’

‘Appliances exceeding 5-stars yet to get formal tag; between one-star of 2010 and that of 2016, efficiency has risen 35-40%’

•The recently-released Energy Conservation Building Codes can save as much as 50% of conventional energy consumption, Bureau of Energy Efficiency (BEE) director general Abhay Bakre said in an interview. However, the decision to make the Codes mandatory lies with the States and not the Centre, he added. The BEE is also working on a ‘super-efficient’ category of appliances that save even more energy than the highest-rated five-star appliances. Excerpts:

•How does one reconcile the huge energy demand in India with the need to also save energy?

•On the one side, we have a very clear roadmap for the economy, and on the other hand we have a clear objective in terms of electricity and energy.

•In terms of electricity, we have a very definite programme that it has to reach every household. That means there will definitely be an increase in demand. On the other side, the economic development and growth will again increase energy demand, including electricity demand. But we have to match the supply. So, not only do we have to increase supply, but also whatever new demand that is coming up, we want it to be as optimised as possible, as efficient as possible. So, in new homes, buildings, factories, they should have energy efficient appliances like LED lighting, and very efficient ACs.

•So, even though the size of energy demand is increasing, we want it to be efficient so that the overall demand is not as high as expected.

The BEE introduced the star-rating system for energy efficiency in appliances a few years ago. How is it evolving?

•We can broadly categorise this into three different phases. The first phase was in 2006-10, when pieces of equipment were first put into the star labelling band. Many manufacturers at the time were not even manufacturing one-star rated appliances. So, they were brought into the star-rated category. In a complementary manner, consumers started gaining awareness that they should go for star-rated appliances. So that increased the demand, which increased the attraction for the vendors and manufacturers to increase their share of star-rated products. That has [brought] the market and the manufacturing into the star-rating system.

•The second phase was increasing customer awareness even more. They had to believe that investing in a star-rated appliance was worth it. Instead of going for one-star and two-star, consumers began demanding four-star and five-star appliances. This, again, induced the vendors to stock more four-star and five-star appliances. By 2014-15 or so, we came to a situation where the one-star and two-star appliances were wiped out.

•In the last three years, we have come out with an even more efficient category. The four-star and five-star of a few years ago have become one-star and two-star now. Now there are vendors aspiring for the new four-star and five-star appliances. The new phase is that we are moving towards new ‘super-efficient’ equipment, which are beyond five-star. If there are ACs, LED lamps, and even ceiling fans that are more efficient than five-star, then they will be deemed super-efficient. We haven’t worked out a rating for them, but we have begun calling them super-efficient.

•We are at international levels in terms of the energy efficiency of some of these appliances.

What does this mean in energy savings?

•Take the example of ACs, which have the most impact. What is one-star now was four-star in 2010. And overall we have seen that comparing the one-star of 2010 and the one-star of 2016, there is almost an improvement of 35-40% in energy efficiency. That’s the effect of the change in technology.

•Power Minister Piyush Goyal recently released the Energy Conservation Building Codes. How will these work in reducing power consumption in the country?

•We have buildings for different applications. This document comes out with a very clear understanding of the application [or the use] of a building. That’s why the (energy efficiency) criteria for every application of a building has been very clearly defined.

•If it is an office building hosting a service sector office that is running 14 hours a day, then that should have an occupancy sensor in the rooms (to be able to tell if the room is empty or not), for example.





•That is a clear requirement. On the other hand, if it is a school, which operates for only 6-8 hours, it doesn’t need an occupancy sensor. The children are there during school hours. An occupancy sensor in this case would [mean] an extra expenditure for very little benefit.

•This is the approach: that for every application of a building, there is a specific criterion.

Is the government considering making the codes mandatory?

•The benefit of the code is that it is a ready reckoner. Any designer, developer, and architect can go through it and implement it. So implementation can start now.

•The question of whether it has to be made mandatory or backed up by a regulation or law is an entirely different process. Since building laws are by the state governments, they can decide what they want to make mandatory for whatever application. They may like to make it mandatory for office buildings or for institutions like colleges. It is up to the state governments or even municipalities, depending on their jurisdiction, to decide what should be made mandatory.
Was there a target for energy savings while designing the Codes?

•It was not a target; in fact, it was an analysis. We did a technical analysis, a material-based analysis, a simulation, etc. Based on the criteria that were developed, we are in a position to estimate that the base level itself (the lowest level of energy-efficient steps to be taken in the codes) will give a 20% saving over conventional levels. The higher levels will give about 35%. The highest level can give as much as 45-50%.

What benefit do the Codes have for buildings that are already constructed?

•The Codes have come out in such a manner that it is directly beneficial to new buildings. If the building is already constructed, then a major portion of the benefit is compromised as the shell of the building is already made. There are other features like systems, lighting, and comfort controls that can be retrofitted. The cost will not be much. There are certain times when the inner design of a building is modified, the walls are broken down or shifted, for example, and this can be done according to the Code.

Is customer awareness of energy-efficient appliances present only in the main metros or is it taking place in the smaller cities and towns as well?

•There is a good response even in these cities. We get the regular sales data from companies for each location. It is mandatory for them to provide the data. And we have regular dealer programmes, since dealers are the main contact for the consumers. They are getting trained and are facilitating the sale of higher energy-rated appliances.

💡 For a stronger India-U.S. bond

•As Prime Minister Narendra Modi travels to the U.S. this week, it is worth recalling that one of President Trump’s first phone calls following his inauguration was to the Indian leader, where he termed India as a “true friend and partner in addressing challenges around the world.”

•The U.S.-India partnership has historically enjoyed bipartisan support, with successes in defence, security and civil nuclear cooperation over the last two decades. In trade and investment, the U.S. is India’s second-largest trading partner and the fifth-largest source for foreign direct investments. In the last five years, total trade in goods has remained at around $64 billion. In services, there has been a surge, with India’s imports of U.S. services increasing by a third and exports to the U.S. rising more sedately over three years.

•However, in recent months, concerns like the trade deficit and labour mobility threaten to overshadow the otherwise positive trajectory of the relationship. These perspectives overlook the fact that the U.S. is India’s second-largest source of imports, following China. Tariffs on major U.S. products are lower in India than in other countries. In the last three years, the Indian government has rolled out numerous reforms, making India among the most attractive investment destinations. Liberalisation of FDI policies in multiple sectors such as defence production, real estate and insurance, create new opportunities for U.S. firms. The U.S. already ranks fifth in India’s FDI profile. Equally, the U.S. remains a favourite destination for Indian companies. A CII survey of 100 Indian companies in 2015 showed 91,000 jobs were created in the U.S. with investments of over $15.3 billion.

High-skill labour

•A critical factor impacting business engagement between the two nations is an unprecedented focus by the U.S. on high-skill labour mobility. Indian firms firmly support weeding out the abuse of the visa system. Many have committed to local hiring, including Infosys, which has announced a plan to hire 10,000 Americans. Social security payments by Indian firms also contribute to the local economy. Companies also assist in funding training (especially in Science, Technology, Engineering and Maths) for U.S. veterans and students.

•A major foundation of the relationship is security and defence collaboration. The U.S.-India Defence Technology and Trade Initiative aims to develop strategic partnerships. Resultant defence contracts are helping create jobs in the U.S. while the partnership in defence is helping address the shared concerns about terrorism and other regional security issues. It is critical that both sides acknowledge the mutual benefits of our economic relationship, as companies from both nations deserve a non-discriminatory and level-playing field.

•Indian industry has been calling for the early negotiation and conclusion of a Bilateral Investment Treaty to support trade engagement and further encourage two-way investment flows. It is also important to make progress on a Totalisation Agreement to help avoid double taxation for short-term workers.

•As the terms of globalisation are transforming in unexpected ways, it is even more important for the two nations to stress upon a stronger economic relationship, leveraging India’s rapid growth and the more stable economic environment in the U.S. The gains from such a sound trade and investment partnership go beyond profits for businesses to strategic and geopolitical outcomes.

💡 Whose privilege?

Legislatures must not invoke powerto punish for breach of privilege

•The Karnataka Assembly’s resolution imposing a one-year prison sentence and Rs. 10,000 fine on the editors of two tabloids is indefensible and deserving of unsparing criticism. The Constitution confers certain privileges on legislative institutions with the idea of protecting freedom of speech and expression in the House and ensuring that undue influence, pressure or coercion is not brought on the legislature in the course of its functioning. Unfortunately, breach of privilege is invoked for the ostensible reason of protecting the image of the House on the whole or its individual members; too often, it is a thinly disguised mechanism to insulate elected representatives from criticism. Without a law codifying the legislative privileges, there is little merit in subjecting anyone, leave alone a journalist, to penal action for allegedly breaching a legislator’s privilege, unless there is a move or attempt to obstruct the functioning of either the House or its members. The articles concerned were published in Hi Bangalore and Yelahanka Voice and were referred to the Privileges Committee in 2014. Whether what Ravi Belagere and Anil Raj, the editors of the two tabloids, published was fair comment or unfair criticism is not germane in this case. What matters is that by no stretch of the imagination could the articles have impeded the independent functioning of the three legislators who had complained against them. If the members felt defamed, they could have opted to pursue an appropriate judicial remedy in their individual capacity.

•The legislature must use the power to punish for contempt or breach of privilege sparingly, invoking it mainly to protect the independence of the House and not to take away the liberty of critics. Legislators are in a position to clarify facts and refute misconceived criticism. There is no reason for them to seek imprisonment for contempt. There are many unsettled questions about the very nature of legislative privileges. The absence of codification gives the House the freedom to decide when and how breach of privilege occurs. Even if it is conceded that the House has such a right, a moot question is whether the legislature, through its Committee of Privileges, should be a judge in its own cause. Whether the legislature’s power to punish for breach of privilege extends to handing down a prison term is still an open question. The time has come for the legislature to codify privileges and for the higher judiciary to lay down the limits of penal action for breach of privilege. The Karnataka government must consider the public odium it would attract if it acted on the resolution. If the Chief Minister and the Speaker take the lead in getting the Assembly to rescind the resolution, that would better safeguard the dignity of the august House.

💡 Being smart

Any attempt to improve our cities dependson how data are compiled and shared

•The Centre would like us to believe that the Smart Cities Mission will transform urban life in the agglomerations that enter the elite club. With the latest inclusions, there are 90 cities in the list, each of which proposes to turn ‘smart’, utilising core funding from the Centre and other resources. By all accounts, the provision of basic services in urban India has been worsening, and this is clearly reflected in the winning city proposals: 81 of the selected plans seek funds for affordable housing, new schools and hospitals, and redesign of roads. This is at best a partial list, and there are many more aspects to achieving inclusivity. There is a high-visibility campaign around the Smart Cities Mission, but there is little evidence to suggest that State and local governments have either the fine-grained data or the capability to analyse them in order to understand the evolving needs of their communities. The Centre has apparently decided to skirt such a fundamental problem by adopting a ‘managed urbanisation’ approach in the chosen cities, with the powers of municipal councils delegated to a Special Purpose Vehicle (SPV), under the Companies Act, that will act in its own wisdom. Given that this is the model adopted by the two-year-old Mission, the Centre must present a status report on what the SPVs have achieved so far.

•Any serious attempt at improving the quality of life in cities would depend on how governments approach data. It would be smart, for instance, to use sensors to estimate the flow of vehicles and pedestrians, and create smartphone applications for the public to report on a variety of parameters. Making such data open would enable citizens’ groups to themselves come up with analyses to help city administrators make decisions, boost transparency and make officials accountable. There are several international examples now, such as the Array of Things sensors being installed on Chicago streets, which let people download the raw data on air quality, transport, pedestrian movement and standing water. Although India’s Smart Cities Mission has identified more than 20 priority areas, interventions by the respective agencies are weak. Access to special funding should make it mandatory for all public transport providers — city bus corporations, Metro Rail and suburban trains — to provide real-time passenger information in the form of open data, an inexpensive global standard that raises both access and efficiency through smartphone applications. Making street-level waste management data public would lead to a heat map of the worst sites, compelling managers to solve the problem. Clearly, there is a lot of low-hanging fruit on the road to smartness, and a nimble policy approach can tap this quickly. More importantly, the ideology that guides the plan should recognise that the vibrant life of cities depends on variety and enabling environments, rather than a mere technology-led vision. Pollution-free commons, walkability and easy mobility, with a base of reliable civic services, is the smart way to go.