DAILY CURRENT AFFAIRS: 11 January 2025

Implementing the Street Vendors Act

Relevance: GS II : Polity

 

Context: Ten years have passed since the enactment of the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act on May 1, 2014.

Acknowledging Street Vendors in India:

The legislation acknowledges the diverse contributions of street vendors, constituting approximately 2.5% of urban populations across cities.

  • Role : Street vendors play a crucial role as providers of daily necessities, forming integral links in the food, nutrition, and goods distribution network while maintaining affordability.
  • Importance of Street Vendors: Vending serves as a vital income source for many migrants and impoverished urban dwellers, offering a steady albeit modest means of livelihood.
  • Cultural Significance: Street vendors not only sustain livelihoods but also enrich India’s cultural tapestry. Iconic street foods like Mumbai’s vada pav and Chennai’s roadside dosai epitomize their cultural significance and heritage.

Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014:

The legislation was crafted to acknowledge and regulate street vending in urban areas, with the goal of safeguarding and regulating this aspect of urban life through State-level regulations and programs, administered by Urban Local Bodies (ULBs).

  • Defining Responsibilities: It clearly outlines the duties of vendors and different tiers of government, emphasizing the positive urban contribution of vendors and the crucial need to protect their livelihoods.
  • Certification: A notable provision is the commitment to integrating all existing vendors into designated vending zones and issuing them vending certificates.
  • Establishment of Inclusive Committees: The Act institutes participatory governance mechanisms like Town Vending Committees (TVCs), wherein 40% of members are comprised of street vendor representatives, with a mandated 33% representation from female vendors.
  • Addressing Disputes: These committees are entrusted with ensuring the inclusion of all existing vendors in vending zones and providing avenues for resolving complaints and disagreements through the proposed Grievance Redressal Committee, led by a civil judge or judicial magistrate.

Challenges

  • Escalating Harassment: Despite the Act’s intention to safeguard and regulate street vendors, there has been a noticeable increase in instances of harassment and forced removals.
  • Outdated Bureaucratic Mindset: Much of this mistreatment originates from an antiquated bureaucratic perspective that views vendors as unlawful entities to be eradicated.
  • Lack of Awareness: There exists a widespread deficiency in comprehension and awareness regarding the Act among state authorities, the public, and even the vendors themselves.
  • Control Over TVCs: Town Vending Committees (TVCs) often remain under the dominance of local city authorities, with minimal involvement from street vendor representatives. Additionally, the representation of women vendors in TVCs tends to be tokenistic.
  • Weak Urban Governance Mechanisms: Existing urban governance structures frequently lack robustness, failing to effectively integrate with the framework established by the 74th Constitutional Amendment Act.
  • Limited Authority and Resources: Urban Local Bodies (ULBs) often operate without adequate authority and resources to implement the Act’s provisions effectively.
  • Exclusionary Urban Ideals: Prevailing notions of achieving a ‘world-class city’ tend to exclude street vendors, portraying them as obstacles to urban advancement rather than recognizing their legitimate role in the urban economy.

 

Way Forward:

Initial Central Oversight:

  • The Act’s success relies on robust support, which initially should come from the Ministry of Housing and Urban Affairs.
  • Top-down direction and management might be necessary in the beginning.

Decentralization for Effectiveness:

  • Over time, oversight should shift to local levels to better cater to the diverse needs of street vendors nationwide.
  • Decentralization ensures effectiveness in addressing varying contexts.

Empowering Street Vendors:

  • Positive examples like PM SVANidhi, a micro-credit facility, showcase initiatives to empower street vendors.

Strengthening Local Capacities:

  • ULBs’ capacities should be bolstered to effectively plan for street vending in cities.
  • Transition from authoritative department-led actions to inclusive processes at the TVC level is crucial.

Policy Adaptation:

  • Urban schemes, city planning guidelines, and policies should be revised to include provisions for street vending.

Addressing New Challenges:

  • Climate change impacts, increased vendor numbers, competition from e-commerce, and reduced incomes pose new challenges.
  • Broad welfare provisions of the Act must be creatively utilized to meet emerging needs.

Adaptation of National Urban Livelihood Mission:

  • The Act’s sub-component on street vendors within the National Urban Livelihood Mission needs adaptation to address altered realities and innovate solutions.

 

Supersonic Missile Assisted Release of Torpedo (SMART)

Relevance: GS III: Defence

 

Why in News: Recently,the Defence Research and Development Organisation (DRDO) conducted trials for an advanced torpedo deployment mechanism.

About SMART System

The Defence Research and Development Organisation (DRDO) has spearheaded the design and development of this system.

    • Launch Location: The system was deployed from a ground mobile launcher situated at the Dr APJ Abdul Kalam Island, located off the coast of Odisha.
  • Features:
  • Enhanced Range Capability: This system, employing missile-based technology, extends the reach of lightweight torpedoes, enabling targeting of submarines located hundreds of kilometers away, surpassing the typical range of such torpedoes.
  • Rapid Response Capability: In situations where immediate action against enemy submarines is imperative and other resources are lacking, this system offers a crucial asset for swift deployment.
  • Advanced Subsystems: Comprising a canister-based missile system, it integrates multiple cutting-edge subsystems, including two-stage solid propulsion and precision inertial navigation.
  • Payload Configuration: Equipped with an advanced lightweight torpedo missile as its primary payload, the system also incorporates a release mechanism utilizing a parachute.
  • Validation of Mechanisms: Through this test, various sophisticated mechanisms such as symmetric separation, ejection, and velocity control have been successfully demonstrated and validated.

Quarks

Relevance: GS III: Space Technology 

 

Why in News: As per the study conducted by an international team of researchers on quarks, the discovery challenges traditional particle-physics models that assume quark consolidation to be unaffected by the particle’s surroundings.

About Quarks

  • Composition of Matter:
  • Matter comprises atoms, which consist of a nucleus containing protons and neutrons, surrounded by electrons.
  • Protons and neutrons are not fundamental particles but are made up of smaller particles known as quarks.
  • Unique Nature of Quarks: Quarks cannot exist independently but only in groups, forming particles called hadrons, such as protons and neutrons.
  • Emergence of the Concept: The notion of quarks arose in the 1960s when physicists sought to explain the magnetic moment of neutrons by proposing that neutrons are composed of smaller charged particles, later identified as quarks.
  • Naming: Physicist Murray Gell-Mann coined the term “quark” from James Joyce’s “Finnegan’s Wake.”
  • Varieties: Quarks come in six varieties, or “flavors,” including charm and strange, and possess properties such as “color charge.”

Properties:

  • Fundamental Components:
  • up, down, top, bottom, strange, and charm, each carrying one of three color charges.
  • Their antimatter counterparts are antiquarks.
  • Particle Formation: Quark-antiquark pairs create mesons, while groups of three quarks form baryons, the building blocks of ordinary matter.
  • Binding Mechanism:
  • Gluons, mediated by the strong nuclear force described by quantum chromodynamics, bind quarks together.
  • Under extremely high energies, quarks can enter a ‘deconfined’ state, forming quark-gluon plasma.
  • Observations:
  • Quark-gluon plasma has been briefly observed in high-energy lead ion collisions at the Large Hadron Collider, resembling conditions postulated by the Big Bang theory.
  • This state suggests a phase where quarks are not confined into particles, potentially leading to phenomena like quark stars, an ongoing area of research in physics.

 

Solomon Islands

 

Relevance: Places in News

 

Why in News: The prime ministers of Vanuatu and Solomon Islands are visiting China to strengthen bilateral relations and enhance cooperation in various sectors. These visits aim to elevate strategic communication and practical partnerships between China and the Pacific island nations.

About Solomon Islands

  • Geographic Location: The Solomon Islands, a sovereign nation, comprises six major islands along with over 900 smaller ones in Oceania. It is positioned to the east of Papua New Guinea and northwest of Vanuatu.
  • Capital and Main Island: Honiara, the capital city, is situated on the largest island, Guadalcanal, within the Solomon Islands.
  • Ethnographic Identity: The Solomon Islands belong to the ethnically Melanesian group of islands in the Pacific Ocean, occupying a geographical space between Papua New Guinea and Vanuatu.
  • Name Origin: The country derives its name from the Solomon Islands archipelago, which encompasses a cluster of Melanesian islands, including the North Solomon Islands, a segment of Papua New Guinea.
  • Exclusions: Notably, the Solomon Islands exclude outlying territories like the Santa Cruz Islands and Rennell and Bellona from its jurisdiction.

Viability Gap Funding

Relevance: GS III- Environment and Ecology

 

Why in News: Recently, the Government of India has approved a viability gap funding (VGF) scheme worth Rs 7,453 crore ($890 million) to promote offshore wind energy projects, marking a crucial step towards harnessing the immense potential of offshore wind energy in India.

What is the VGF Scheme?

The VGF scheme is a financial mechanism used by the Government of India to support infrastructure projects that are economically justified but not financially viable on their own.

  • It provides financial support in the form of capital grants to make such projects commercially viable and attract private sector participation through Public-Private Partnerships (PPPs).

 

Key Features of the VGF Scheme

  • The scheme is administered by the Department of Economic Affairs, Ministry of Finance.
  • It is available for infrastructure projects where private sector sponsors are selected through a competitive bidding process.
  • The total VGF support does not exceed 20% of the total project cost, but the government may provide additional grants up to a further 20%.
  • For social sector projects in areas like water, waste, health, and education, the VGF support can be up to 60% of the total project cost (maximum 30% each from the Centre and States).
  • For pilot/demonstration projects in health and education sectors, the VGF support can be up to 80% of the total project cost (maximum 40% each from the Centre and States).
  • The scheme also provides operation and maintenance (O&M) support of up to 50% (maximum 25% each from the Centre and States) for the first 5 years of operation for pilot/demonstration projects in health and education.

 

Approval Process

  • The project sponsoring authorities need to seek ‘In-Principle’ approval from the Empowered Committee before seeking bids, and then obtain ‘Final Approval’ after the selection of the bidder.
  • The actual disbursement of the VGF grant takes place once the private entity has expended its portion of the equity and in proportion to the debt released by the Lead Financial Institution.

Eligibility Criteria

  • The PPP projects may be posed by the Central Ministries, State Governments, or statutory entities.
  • For medical colleges, the VGF would be admissible only if the proposed college is located in a backward district with no existing medical college.

Understanding Viability Gap Funding (VGF) for Wind Energy in India

Financial Support Mechanism

Wind Energy in India

India has made significant progress in harnessing wind energy in recent years. As of March 2023, India had an installed wind power capacity of 42.633 GW, making it the world’s fourth largest wind energy market.


The top wind power producing states in India are:

  • Gujarat (10,415.82 MW)
  • Tamil Nadu (10,124.52 MW)
  • Karnataka (5,303.05 MW)
  • Rajasthan (5,193.42 MW)
  • Maharashtra (5,026.33 MW)

The growth of wind energy in India has been driven by a favorable policy environment and government initiatives such as:

  • National Wind-Solar Hybrid Policy (2018)
  • National Offshore Wind Energy Policy (2015)
  • Purpose: VGF is a government subsidy mechanism to ensure the commercial viability of infrastructure projects, such as wind energy installations, by bridging the gap between total project costs and expected financial returns.
  • Impact: Attracts private investment to sectors with high initial costs or long gestation periods, making projects financially feasible.

Environmental and Economic Benefits

  • Electricity Generation: 1 GW offshore wind projects expected to produce approximately 3.72 billion units of renewable electricity annually, leading to a reduction of 2.98 million tonnes of CO2 emissions per year over 25 years.
  • Climate Impact: Significant contribution to combating climate change and reducing India’s carbon footprint.

Ecosystem Development

  • Scale: Scheme aims to develop a robust offshore wind energy ecosystem, targeting an initial 37 GW with an estimated investment of Rs 4,500 billion.
  • Blue Economy: Enhances ocean-based economic activities and supports long-term sustainability goals.

Infrastructure and Economic Growth

  • Port Upgrades: Enhanced port facilities at Pipavav and Thoothukudi to support efficient transport and installation of heavy equipment, crucial for offshore project execution.
  • Economic Impact: Expected job creation, increased investment, and development of indigenous manufacturing capabilities contribute to economic growth and energy security.

 

Implementation Mechanism of Viability Gap Funding (VGF)

Project Execution

  • Private Sector Involvement: Projects will be executed by private developers selected through a competitive bidding process, ensuring efficiency and cost-competitiveness.
  • Infrastructure Development: Power Grid Corporation of India Limited will construct essential power evacuation infrastructure, including offshore substations.

Coordination and Nodal Ministry

  • Nodal Ministry: Ministry of New and Renewable Energy (MNRE) will oversee and coordinate the implementation across various ministries and departments.
  • Collaboration: Ensures seamless execution of the scheme by integrating efforts with other relevant ministries and departments.

Port Development Support

  • Infrastructure Enhancement: Ministry of Ports, Shipping and Waterways will support the development of Pipavav and Thoothukudi ports, enhancing their capabilities to facilitate offshore wind infrastructure.

This coordinated approach aims to streamline operations and accelerate the deployment of offshore wind energy projects in India.

 

National Offshore Wind Energy Policy 2015

The National Offshore Wind Energy Policy, 2015 is a strategic initiative by the Indian government to promote the development of offshore wind energy in the country’s Exclusive Economic Zone (EEZ) along the 7,600 km coastline.


Key objectives of the policy include:

  • Exploring and promoting the deployment of offshore wind farms in India’s EEZ
  • Encouraging investment in energy infrastructure
  • Promoting spatial planning and management of maritime renewable energy resources
  • Attaining energy security and reducing carbon emissions
  • Boosting indigenization of offshore wind energy technologies
  • Creating skilled manpower and employment in the sector
  • Enabling the development of offshore wind industry projects

The government has set targets of installing 30 GW by 2030. India has the potential to generate 127 GW of offshore wind energy.

 

Anticipated Challenges & Way Forward

Financial and Regulatory Concerns

  • VGF Adequacy: Concerns persist whether the VGF amount is sufficient for Independent Power Producers (IPPs) to generate and sell offshore wind power competitively to state DISCOMs.
  • Power Purchase Agreement (PPA): Current PPA tariff rates may not fully cover costs, necessitating additional support. Considerations include waiving customs duty on offshore wind turbine generators, submarine cables, and foundations to bolster supply chain efficiency.

 

Policy Interventions

  • MNRE Initiatives: Options such as extending RLMM waivers for offshore wind turbines or providing higher tariff restrictions to attract international manufacturers could strengthen India’s offshore wind sector.
  • Environmental Standards: Defining rigorous environmental standards for offshore wind projects is crucial for sustainable development.

Economic and Development Implications

  • Market Development: State governments encouraged to offer subsidies for coastal transformation and job creation, enhancing manufacturing and operational capacities.
  • Regulatory Challenges: Addressing power procurement risks from DISCOMs and streamlining environmental regulations are pivotal for robust wind energy value chain development.

Infrastructure and Security

  • Exclusive Economic Zone Regulations: Regulatory constraints on exploration and extraction need revision to optimize offshore project cost-effectiveness.
  • National Security: Managing risks associated with international personnel in offshore activities requires strategic deliberations with relevant agencies.

 

Institutional Strengthening

  • Capacity Building: Enhancing institutional capacity at the National Institute of Wind Energy, particularly in Gujarat and Tamil Nadu, crucial for effective project coordination, EIA processing, and regulatory compliance.

 

Vision for Offshore Wind Energy

  • Long-term Sustainability: Facilitating policies for domestic manufacturing, logistics, employment generation, and security to foster India’s self-reliance in offshore wind energy.
  • Blue Economy Development: Promoting maritime infrastructure and skill development to harness India’s ocean-based economic potential.

This comprehensive approach aims to address challenges and maximize the potential of offshore wind energy in India, aligning with national goals for sustainable development and energy security.

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