PM resists 2050 net-zero goal pressure

PM Modi on Monday committed India to becoming a ‘carbon neutral’ country through a ‘net zero’ goal by 2070, the first time such a goal has been set for the country, along with major targets on renewables and reductions in green house gases by 2030.

While he announced a ‘net zero’ goal year, the PM resisted pressure for a 2050 deadline as was being pushed as a COP26 target by UK Prime Minister Boris Johnson. It is also 10 years more than the 2060 deadline announced by China. But given the clamour for major emitters to set a net zero goal, the PM’s pronouncement was broadly welcomed as a significant step.

Modi held out five goals (panchamrit) to underline India’s commitment to containing climate change in his speech here setting out the country’s national targets even as he appealed to world leaders to make ‘lifestyle change’ a global movement—World LIFE—by shunning “mindless consumption” and adopting mindful utilisation of resources.

Hitting out at developed countries for their unfulfilled promises of mobilising climate finance of $100 billion per year by 2020, Modi reminded them of their responsibilities and asked them to mobilise $1 trillion to support developing countries.

PM Modi said the world cannot achieve newer targets with old goals of climate finance. In an earlier remark, he said neglect of these responsibilities was an injustice to countries like India. In his main speech, he said he had outlined issues which speak for the developing countries. The announcement of ‘net zero’ was backed by Modi spelling out how the country would take key steps – climate actions – to achieve ‘the target through a clear timeline for other sectoral targets.

This includes meeting 50% of India’s total energy requirements from renewable energy, reducing one billion tonnes of carbon equivalent of greenhouse gases from its projected emissions by next nine years, reducing carbon intensity (carbon emission per unit of GDP) by 45% by 2030 from 2005 levels, and increasing the share of renewable energy from 450 GW to 500 GW by 2030 as part of NDCs.

Reducing one billion tonnes of GHG is quite substantial, considering the fact that the country’s entire GHG inventory is currently less than 3 billion tonnes and it is projected to be 4.5 billion tonnes in 2030. At present, though India is the fourth largest emitter, China’s emissions are manifold. India’s per capita emissions are low.

Modi’s announcement is clearly an enhancement on what India had committed in 2015 as its ‘nationally determined contributions’ under the Paris Agreement. This would clearly update the country’s NDCs by increasing its previous target of 40% share of non-fossil fuels in total energy mix by 2030 to now 50%; decreasing GHG emissions in absolute terms and increasing reduction in carbon intensity from 33-35% to 45% by 2030 from 2005 levels. Modi, in his speech, also underlined how India has fulfilled its promises made in the past as well as under the Paris Agreement, but many developed countries have failed to do it despite big promises. He said India is the only country among the major economies which fulfilled its Paris pledges and has been on track to achieve the rest of its goal, and appealed to the developed countries to do so in terms of climate finance and technology transfer.

He said India’s contribution in climate change mitigation far outstrips its role in emissions. He said India, which has around 17% of the world’s population, is responsible for only about 5% of the total emissions.

Earlier speaking on the sidelines of the leaders' summit, Modi said adaptation has not found its importance in the global climate talks and negotiations the way the mitigation (emission) reduction has got. Citing examples of how the climate change-linked extreme weather events have been affecting agriculture and farmers over the years, he said adaptation must become the key pillar of the world's fight against climate change.

Noting that not giving adaptation an equal importance is an “injustice to developing countries, which are more affected by climate change”, Modi suggested three steps to end such discrepancy.

October GST collections at ₹1.3L cr

GST collections in October totalled Rs 1.3 lakh crore — the second highest receipts since the implementation of the tax reform in 2017 — with economic recovery strengthening and compliance improving significantly.

GST receipts in October were 24% higher than in Oct 2020, and 36% over 2019-20. Revenues from import of goods was 39% higher, and revenues from domestic transactions (including import of services) were 19% more than revenues in October 2020, the finance ministry said. This is the fourth straight month of receipts crossing Rs 1 lakh crore. The highest collection was in April this year.

“This is very much in line with the trend in economic recovery. This is also evident from the trend in e-way bills generated every month since the 2nd wave,” the ministry said.

The finance ministry said, “This is very much in line with the trend in economic recovery. This is also evident from the trend in the e-way bills generated every month since the second wave . The revenues would have still been higher if the sales of cars and other products had not been affected on account of disruption in supply of semiconductors.”

Since the lifting of curbs after the second wave of the pandemic, revenues have been robust, thanks to the economic rebound. The ministry said the mop-up has also been aided by the efforts of the state and central tax administration, resulting in increased compliance over previous months.

It said that in addition to action against individual tax evaders, this has been a result of the multipronged approach followed by the GST Council. Measures taken to ease compliance include nil filing through text messages, enabling the QRMP system and auto-population of returns. “Overall, the impact of these efforts has ensured increased compliance and higher revenues... more steps to restrict fake ITC (input tax credit) are under consideration of the GST Council,” the ministry’s statement said.

In the past year, GSTN—the IT backbone-—has augmented the system capacity considerably to improve user experience. The council has also taken various steps to discourage noncompliant behaviour.

India gets new destroyer

With China now fielding the world’s largest Navy and fast constructing two more aircraft carriers to add to its two existing ones, the Indian Navy has finally got a long-delayed shot in the arm with a new indigenous guided-missile destroyer even as its second aircraft carrier undergoes another set of sea trials.

The first of the four 7,400-tonne stealth destroyers being constructed at Mazagon Docks, under a contract inked in January 2011, was delivered to the Navy on Thursday after a delay of well over three years. “She will be named INS Visakhapatnam on commissioning in the second half of November,” said an officer.

The other three destroyers, Mormugao, Imphal and Surat, will follow over the next few years.

The overall cost of the four warships, with an array of weapons and sensors including BrahMos supersonic cruise missiles and Israeli new-generation Barak surface-to-air missile systems, is over Rs 35,000 crore.

While destroyers are powerful warships, they are simply dwarfed by aircraft carriers in size as well as combat power. Capable of moving over 500 nautical miles in a single day, the floating airbases pack a formidable offensive punch and project raw military power like nothing else around the globe.

The US Navy has 11 “super” 100,000-tonne nuclear-powered carriers, each of which carries 80-90 fighters and aircraft. China, too, eventually wants to have 10 carriers as “symbols of a great nation”.

India, however, is making do with just one carrier in the secondhand 44,500-tonne INS Vikramaditya, inducted from Russia for $2.33 billion in November 2013.

Another $2 billion was spent on procuring 45 MiG-29Ks to operate from its deck. The second round of sea trials of the country’s first 40,000-tonne indigenous aircraft carrier, to be commissioned as INS Vikrant in August next year, was reviewed by shipping minister Sarbananda Sonowal and Navy chief Admiral Karambir Singh on Sunday.

China already operates two carriers, Liaoning and Shandong, and is fast building two more with CATOBAR (catapult assisted takeoff but arrested recovery) configuration to launch fighters as well as heavier aircraft for surveillance, early-warning and electronic warfare from its deck, like the US ones.

Both INS Vikramaditya and IAC, however, have only angled ski-jumps for fighters to take off under their own power in STOBAR (short take-off but arrested recovery) operations.

FASTag toll collection hits all time day’s high : ₹122cr

The toll collection through FASTags touched an all time high in a day at Rs 122.3 crore on Saturday, an indication of more economic activities and transport related activities particularly during the festive season. An overall trend also shows that the total revenue increased on all days during last week compared to the previous one.

According to data from National Highways Authority of India, the earlier maximum collection was Rs 106.3 crore on March 27 before the second wave of Covid-19 hit the country. The data also shows that the daily toll collection increased by 5-8% during the last week compared to the user charges collected by the toll operators exactly a week back. All 722 toll plazas on national highways and another 196 toll plazas on state highways or roads collect user fee only through FASTags. Nearly 82% of the total toll charge comes from commercial and heavy vehicles, while cars contribute to barely 18% of the cumulative toll.

Besides higher traffic on highways, other two factors that contributed to the increase in toll collection are annual hike in toll charges and bringing more completed stretches under the tolling system.

Govt, judiciary now in sync on IAS-like service for judges

The idea of All India Judicial Service, on the lines of central services like the IAS and the IPS, seems to be coming closer to fruition with the government building a broader consensus with the higher judiciary on the issue and setting the stage for consultations with states.

Law minister Kiren Rijiju has called a state law ministers’ meeting in November where, along with the issue of development of infrastructure for subordinate court, formation of AIJS is likely to be on the table. To bring them on board, the government is not averse to accommodating concerns of various states on giving them freedom to continue with the recruitment of judicial officers for the subordinate judiciary. According to a source, the top judiciary seems to be in sync with the government’s major push to reform the recruitment of judges at the level of additional district judges. The option of higher judicial service, once introduced, will attract talented professionals to fill up the ranks of high courts and Supreme Court judges at an early age.

“Taking up AIJS is a long pending reform which the government and the higher judiciary has to take a call now. The states have to come on board as they, too, agree that there is discrimination against direct recruits in the state judicial services who never make it to the SC and a very few get chance to be elevated to the high courts,” the source said.

If an Army officer can become the Army chief and an IAS officer can become a secretary to head a central administrative function, why can’t a direct recruit from the judicial service rise up to the rank of an SC judge, he added. Currently, less than 25% of judicial officers have some chance of being elevated as judges of high courts, with the majority of them managing to reach only the rank of district judges towards the end of their professional career. The remaining 75% quota is fixed for recruitment of HC judges from the Bar. None from the judicial service can even aspire to go up to the Supreme Court.

“Probably this is the reason judicial services are not considered an appealing option for the talented,” the source said, adding that once the AIJS is introduced, the HC and SC will have a better talent pool with a younger age profile to choose from.

Another point of disagreement between the states and the Centre has been the language barrier. The government is prepared to train all recruits to the proposed AIJS in the same manner as an IAS or an IPS officer who are expected to learn local languages of states they are assigned to.

With a shortage of competent candidates to fill up vacancies in the 25 high courts where more than 471 posts are vacant (as on October 1), the higher judiciary seems to be fine with the idea of having an AIJS which can attract the best talent from the industry.

At present, bright minds are more inclined to take up jobs with private law firms rather than joining the judicial services with lack of promotional avenues.

Semiconductors: Mega government plan in works

India will roll out a mega multi-billion-dollar capital support and production-linked incentive plan to push manufacturing of semiconductors in the country, the move coming at a time when industries across sectors are facing massive production cuts due to global chip shortage.

Senior officers are engaged in active discussions with some of the top semiconductor makers such as Taiwan Semiconductor Manufacturing Co., Intel, AMD, Fujitsu, United Microelectronics Corp, as the government steps up efforts to drive in the much-wanted semiconductor investments into the country.

The ambitious plan is being coordinated and monitored closely by the PMO and multi-ministries have been roped into the process as the government works overtime to finalise an attractive policy to woo the semiconductor companies.

The government works overtime to finalise an attractive policy to woo semiconductor companies, which are also being chased by other countries such as the US, and those in Europe. “The government is willing to talk capital support. We are closer to it like never before,” a top source said.

The government recently had a high-level meeting on the matter which had telecom and IT minister Ashwini Vaishnaw, principal scientific adviser K Vijay Raghavan, top scientist and Niti Aayog member V K Saraswat, minister of state for IT Rajeev Chandrasekhar, representatives from the electronics, IT and telecom ministries, Defence Research and Development Organisation, surface transport and space departments and the academia.

“The idea is to have representatives from various ministries and departments who are in-charge of industries that are impacted by the semiconductor shortage,” the source said.

On the cards could be financial support on capital expenditure, tariff reductions on certain components, and benefits through programmes such as Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors and production-linked incentive. “All efforts will be made to formulate an attractive and investment conducive scheme for companies looking at India.”

Currently, India imports almost all semiconductors to meet demand estimated to reach around $100 billion by 2025 from about $24 billion now. Previous efforts to get companies to invest in the semiconductor space have failed, especially as the sophisticated manufacturing processes requires heavy investments, apart from need for supply of uninterrupted clean water and electricity.

While India is seen as strong in the area of chip design, it has failed to get the much-touted fab manufacturing into the country which involves investments between $5 billion and $10 billion. However, the break-out of the pandemic in early 2020 and strategy of many global companies to look at ‘China plus1’ policy for procurements is likely to help get investments in India.

The government is confident that a large and fast-growing electronics market will prompt the companies to invest in India.

PMI manufacturing hits 8-month high

Manufacturing activities accelerated to an eight-month high in October but could not arrest job shedding by companies as the existing capacities were enough to meet the rising demand, showed IHS Markit purchasing managers index survey. Also, firms claimed input costs hit a 92-month high, prompted a few of them to raise selling prices.

PMI rose to 55.9 in October from 53.7 in the previous month. The reading in October was the highest since February.

Firms stepped up input purchases amid stock-building efforts and in anticipation of further improvements in demand, while business optimism hit a six-month high, IHS Markit said in a commentary associated with the survey.