Growing ties Between India-Saudi Arabia

• The presidency, which India has recently assumed for the period between 1 December 2022 and 30 November 2023, will likely open more avenues for cooperation on multiple fronts with countries like Saudi Arabia, a key Gulf Cooperation Council (GCC) country, also a member state of G20.

India-Saudi Arabia Relationship

• Fourth largest trading partner: Since the last few years, India-Saudi Arabia relations have become comprehensive and robust, with the kingdom not only becoming New Delhi’s fourth largest trading partner but also an important collaborator in the joint combat against all forms of terrorism, money laundering, and terror financing.
• 18% of India’s energy Imports: It is noteworthy that the bilateral trade in the fiscal year 2021-2022 stood at US$42.8 billion, and the kingdom alone accounts for 18 percent of India’s energy import, which reflects the significance of the country from the standpoint of New Delhi’s energy and economic security calculus.
• Collaboration on defence corridor: Simultaneously, military-security and defence cooperation have also gained momentum, which has been triggered by a certain commonality of security threats and challenges, and the interests of the respective governments to collaborate in the defence industrial sector (within the ambit of their military modernisation programmes).
• Non-oil areas of cooperation: The ties between the two countries, now, are not only concentrated on the oil-energy trade alone (as it has been the pattern) but both sides have started to explore the possibilities of working together on domains such as renewable energy, climate change, healthcare, food security, education, technology, etc.

Partnership in Green and clean energy

• Collaboration with Indian companies: In November 2020, Narendra Modi, the Indian Prime Minister, called on foreign investors to “invest on their own” or to collaborate with Indian companies in the country’s green energy sector.
• Reducing dependency on hydrocarbon: Similarly, Saudi Arabia, striving to reduce its dependency on a hydrocarbon-based economy, is investing in the same sector.
• Saudi Vision 2030 programme: In line with its Saudi Vision 2030 programme, it launched (in 2021) the Saudi Green Initiative which works on “increasing Saudi Arabia’s reliance on clean energy, offsetting emissions, and protecting the environment.
• Ambitious targets by both country: Riyadh, ushering in a new era of energy diplomacy, is building partnerships with countries that have similar ambitions. This, to a great extent, has facilitated the need to expand cooperation with India in the renewable energy sphere. While the Indian government works towards generating 450 Gigawatt about 60 percent of electricity using renewable and clean sources, Saudi Arabia also aims at about 50 per cent, both to be achieved by the year 2030.

India-Saudi Arabia cooperation in health sector and during Covid19

• Cooperation with west Asia region: India has stepped up its healthcare-related engagements with the wider West Asian region, and, particularly in matters related to the production of vaccines, joint medical researches, exchange of best-fit practices, and so on.
• Healthcare professionals to Saudi Arabia: During the peak of the aforementioned pandemic, the Indian government assisted its Saudi counterpart in their fight against this outbreak, mainly by dispatching hundreds of Indian healthcare professionals.
• Vaccine acceptancy: Saudi Arabia was also one of the few countries that recognised “Serum Institute of India’s Covishield as an approved COVID-19 vaccine” for any travellers who wanted to enter the kingdom.
• MoU on health and medical products: Now, what could act as a catalyst in elevating the interactions from the existing level is the Indo-Saudi Memorandum of Understanding (MoU) on health and medical products regulations that were signed during the 2019 visit of Modi to Riyadh.

Cooperation in Food Security

• Investment by Saudi and UAE: It could be noted that, in 2019, to act as a safeguard from any food insecurity, UAE and Saudi Arabia GCC states decided to invest in India’s organic and food processing industries.
• Win-win situation in food cooperation: With India’s expertise in the field of crop production and overall agricultural activities, and also being a net exporter of agricultural commodities (especially rice), strengthening of partnerships could prove to be highly beneficial for the populace of Saudi Arabia and the UAE, and other GCC countries that continue to depend on external sources for their food security, mostly owing to the lack of fertile soil.

Conclusion

• While India-Saudi Arabia ties are expected to grow further, there also exists a potential for collaboration beyond this bilateral engagement. This is precisely because, in the emerging international order, there is also a growing call for a collective response to the multidimensional crises the world is facing today.

GSAT Communication Satellite Costing Rs 508 Crore Unused For Half Its Lifetime: CAG Report

• A recent report by the CAG discovered that the GSAT satellite was underutilized due to a lack of coordination between the Defence Research and Development Organisation (DRDO) and the Department of Space (DoS).

What is the GSAT-6 Satellite?

• According to the Indian Space Research Organisation (ISRO), the GSAT-6 satellite was designed to provide communication for strategic purposes through the s-band and via a national beam in the c-band.
• The twelfth in the GSAT series and the twenty-fifth geostationary communication satellite of India GSAT-6 had five predecessors launched in the years 2001, 2003, 2004, 2007, and 2014.
• GSAT-6 joined the group of India’s other operating geostationary satellites after being put into service.
• It was launched in 2015 at a cost of Rs 508 Crore and was expected to function for 12 years.
• The project had two main components – the space segment and the ground segment of which the space segment was meant to meet the strategic communication needs.
• The GSAT 6 satellite is controlled from the Master Control Facility of the ISRO at Hassan, Karnataka.

Who was responsible for the project?

• The DoS was responsible for building and launching the space segment and the DRDO was in charge of the ground segment.
• As per the revised utilization plan, the DoS required Rs 235 Crore to develop the space segment and the DRDO required 63 Crore to build the ground segment.

Current Status

• The project was intended to be launched in the second quarter of 2014 but was delayed to August 2015 due to unknown reasons.
• The satellite will act as a technology development platform for next-generation satellite-based mobile communications systems, showcasing the usage of big, expandable antennae on spacecraft, portable ground terminals, and network management strategies.
• Additionally, it will offer satellite digital multimedia broadcasting (S-DMB) services across a number of digital multimedia terminals or consoles.

What are the findings of the CAG report?

• The CAG report found that there was a lack of coordination between the DoS and the DRDO.
• A memorandum of understanding was not signed between the DoS and the DRDO to develop the ground station.
• No target-based action plan was created which led to the DRDO not completing the project within the expected time before the satellite was launched.
• In 2013, a subsidiary of the DRDO, the Defence Electronic Application Laboratory was tasked with developing two projects:
  • An S-band hub and satellite communication terminals which were completed only in 2018. This resulted in an expenditure of Rs 40.17 Crore.
  • A dedicated hub to provide services to civil society agencies and strategic users which was only completed in 2020.
• As a result of the non-completion of the ground segment, the launched satellite has remained unused in space despite it completing half of its expected lifecycle.
• The report by the CAG concluded that the project which cost Rs 508 Crore and was launched after a delay of 1 year failed to fulfill its objectives.
• The DoS had in 2021 confirmed that clearance was provided to the ground system in November 2015 but that it had no updates on the present status of the system.

Comptroller and Auditor General of India Comptroller and Auditor General of India is an independent authority under Article 148 of the Constitution of India.He is the Head of Indian Audit and Accounts.He is the guardian of the public purse and supervises the whole financial system of the country at both the Central and state levels.The CAG is one of the bulwarks of the democratic system of Government in India with the others being the Supreme Court, the Election Commission, and the Union Public Service Commission

Extended version of BrahMos missile tested

The Indian Air Force on 29 December 2022 successfully tested the extended range version of the BrahMos Air Launched missile against a ship target from Su-30 MKI fighter jet. The extended range of the BrahMos missile is believed to have the ability to take out targets in sea 400 km away.

More about the Missile

1. The supersonic cruise missile “achieved the desired mission objectives in the Bay of Bengal region and with the successful test, the Indian Air Force achieved a capability boost to carry out precision strikes from Su-30 fighter aircraft against land/ sea targets over long ranges.
2. The extended range capability of the missile coupled with the high performance of the SU-30MKI aircraft gives the Indian Air Force a strategic reach and allows it to dominate the future battle fields.
3. The successful test firing was a joint effort by the Air Force, Indian Navy, the Defence Research and Development Organisation (DRDO), Hindustan Aeronautics Limited (HAL), and the BrahMos Aerospace (BAPL).
4. In May this year, the extended-range version of the supersonic missile was successfully tested from the Sukhoi fighter. The extended range was reported to have increased to 350 km from 290 km.
5. The successful test conducted in May was the first instance in which the missile was test fired from the Su-30MKI fighter jet.

Flashback

1. The BrahMos supersonic cruise missile has a two-stage solid propellant booster engine as its first stage which takes it to supersonic speed.
2. The second stage is the liquid ramjet engine which takes it closer to Mach 3 (3 times the speed of sound) speed in the cruise phase.
3. The BrahMos missile is universal for multiple platforms and can be launched from air, land, and sea platforms.
4. The missile works on the ‘Fire and Forget principle‘ and maintains a high supersonic throughout the flight. The missile is said to have a low radar signature.

Disputes between states resolved in India

The border dispute between Maharashtra and Karnataka is intensifying, with both states hardening their stance. On 27 December 2022, both Houses of the Maharashtra Assembly passed a unanimous resolution to support a legal battle to resolve the dispute. This came just days after the Karnataka Assembly passed a resolution reiterating Karnataka’s position on the issue.

What is the Maharashtra-Karnataka border dispute?

1. The border dispute over Belagavi, Karwar and Nipani in North Karnataka is long-standing.
2. When state boundaries were redrawn on linguistic lines as per the States Reorganisation Act of 1956, Belagavi became part of the erstwhile Mysore state.
3. Maharashtra claims that parts of Belagavi, where Marathi is the dominant language, should remain in Maharashtra.
4. In October 1966, the Centre set up the Mahajan Commission, led by former Chief Justice of India Mehr Chand Mahajan, to resolve the border dispute in Maharashtra, Karnataka and Kerala.
5. The Commission recommended that Belgaum and 247 villages remain with Karnataka. Maharashtra rejected the report, and in 2004, moved the Supreme Court.

How is the issue being resolved?

1. Attempts are often made to resolve inter-state disputes with the cooperation of both sides, with the Centre working as a facilitator or a neutral mediator.
2. If issues are resolved amicably, Parliament can bring a law to alter state boundaries, such as the Bihar-Uttar Pradesh (Alteration of Boundaries) Act of 1968 and the Haryana-Uttar Pradesh (Alteration of Boundaries) Act of 1979.
3. In the Belagavi issue, Union Home Minister Amit Shah met Chief Ministers Basavaraj Bommai and Eknath Shinde and asked them to form a six-member team, comprising three ministers from each side, to address all boundary issues.

What are the other methods available?

1. Judicial redressal: The Supreme Court in its original jurisdiction decides imputes between states. Article 131 of the Constitution reads: “Subject to the provisions of this Constitution, the Supreme Court shall, to the exclusion of any other court, have original jurisdiction in any dispute
2. Inter-state Council: Article 263 of the Constitution gives powers to the President to set up an Inter-state Council for resolution of disputes between states.

RBI’s latest report on India’s banking sector:

According to the Reserve Bank of India’s latest report on trends in the sector, the health of the banking system in India has shown steady improvement. Both public and private sector banks have shown visible improvement,from capital adequacy ratio to profitability metrics to bad loans, on each of these indicators.

More about the news:

1. As credit growth has also witnessed acceleration in 2021-22, banks have seen an expansion in their balance sheet at a pace that is a multi-year high.
2. The report indicates that the twin balance sheet crisisof an over-leveraged corporate sector and a banking system saddled with bad loans that acted as a drag on the Indian economy for years is no longer an impediment to growth.
3. There is a healthy sign that disaggregated data shows that both working capital and term loans have seen an uptick.
4. The public sector banks have lost market share to their private sector counterparts, PSBs still account for a lion’s share of the consolidated bank balance sheet — they account for 62 per cent of total outstanding deposits and 58 per cent of advances of the banking sector at the end of 2021-22.
5. The report also points out that both public and private sector banks have seen a steady improvement in their capital position, their asset quality, and their leverage and liquidity positions.
6. Capital adequacy of banks, as measured by the capital to risk weighted assets ratio, raised from 14.1 per cent in 2021 to 15.7 per cent in 2022, and further to 16 per cent in September 2022.
7. Banks have witnessed a sharp decline in their gross non-performing loans or bad loans — from the peak of around 11 per cent in 2017-18 to around 5 per cent at the end of September 2022.

Some concern remains:

1. Loans classified as SMA-0 (those where repayments are due for 0-30 days) have shot up, indicating a build-up of strain in the system.
2. A close watch will also need to be kept on loans that were restructured as they were facing Covid-related stress. Slippages will need to be monitored.
3. Banks will have to be mindful of the risks emanating from an increasingly uncertain global macroeconomic environment.

Antarctica’s emperor penguins

Greater conservation efforts are needed to protect Antarctic ecosystems, and the populations of up to 97 per cent of land-based Antarctic species could decline by 2100 if we don’t change tack, our new research has found. The study, published, also found just USD 23 million per year would be enough to implement ten key strategies to reduce threats to Antarctica’s biodiversity. This relatively small sum would benefit up to 84% of terrestrial bird, mammal, and plant groups.

What

1. Limiting global warming is the most effective way to secure their future. Threats to Antarctic biodiversity Antarctica’s land-based species have adapted to survive the coldest, windiest, highest, driest continent on Earth.
2. The species includes two flowering plants, hardy moss and lichens, numerous microbes, tough invertebrates and hundreds of thousands of breeding seabirds, including the emperor and Adélie penguins.
3. Antarctica also provides priceless services to the planet and humankind. It helps regulate the global climate by driving atmospheric circulation and ocean currents, and absorbing heat and carbon dioxide.
4. Antarctica even drives weather patterns in Australia. Some people think of Antarctica as a safe, protected wilderness. But the continent’s plants and animals still face numerous threats.
5. Chief among them is climate change. As global warming worsens, Antarctica’s ice-free areas are predicted to expand, rapidly changing the habitat available for wildlife.
6. Climate change will also likely wreak havoc on other Antarctic specialists, such as the nematode worm Scottnema lindsayae.
7. The species lives in extremely dry soils, and is at risk as warming and ice-melt increases soil moisture.

How much would it all cost?

1. The United Nations’ COP15 nature summit concluded in Canada recently. Funding for conservation projects was a core agenda item.
2. In Antarctica, at least, such conservation is surprisingly cheap. Our research found implementing all strategies together could cost as little as USD 23 million per year until 2100 (or about USD 2 billion in total).
3. By comparison, the cost to recover Australia’s threatened species is estimated at more than USD 1.2 billion per year (although this is far more than is actually spent).
4. However, for the “influence external policy” strategy (relating to climate change mitigation) we included only the cost of advocating for policy change.
5. As Antarctica faces increasing pressure from climate change and human activities, a combination of regional and global conservation efforts is needed.
6. Spending just USD 23 million a year to preserve Antarctica’s biodiversity and ecosystems is an absolute bargain.