Daily Current Affairs 14 November 2023 – IAS Current Affairs

Current Affairs 14 November 2023 focuses on the Prelims-Mains perspective. Major events are :

Challenges in Infrastructure Projects in India

Source: PIB
GS II: Infrastructure

Overview

1. News in Brief
2. What are the Challenges in Infrastructure Projects in India?
3. How can we improve the PPP model for infrastructure development?

Why in the News?

About 417 infrastructure projects, each with investments of ₹150 crore or more, have been hit by cost overruns of more than ₹4.77 lakh crore in September, mentions the latest report by the Ministry of Statistics and Programme Implementation.

News in Brief

• The Ministry, which monitors infrastructure projects worth ₹150 crore or more
• Out of 1,763 projects, about one-fourth (417) reported cost overruns and half (842) have been delayed.
• Total original cost of implementation of the 1,763 projects was ₹24,86,402.70 crore.
• Their anticipated completion cost is likely to be ₹29,64,345.13 crore.
• This reflected cost overruns of almost 20% of the original cost causing challenges in Infrastructure Projects.

What is the reason for cost Overrun?

• Reasons for time overruns as per implementing agencies include
  • Delays in land acquisition
  • Obtaining environment clearances
  • Lack of infrastructure support and linkages
  • Delays in project financing, finalisation of detailed engineering and change in scope.
• Project executing agencies are not reporting revised cost estimates and commissioning schedules for many projects, suggesting time/cost overrun figures are underreported.

What are the Challenges in Infrastructure Projects in India?

• India has been facing several challenges in infrastructure projects.
• According to a report by the World Bank, India will need to invest $840 billion over the next 15 years into urban infrastructure.
• The reasons behind the shortfall in investment include issues with Public Private Partnership (PPP) projects especially in
  • Power and telecom sectors
  • Stressed balance sheets of private companies and banks
  • Delays in land acquisition
  • Environmental and forest clearances
  • Utility shifting
  • Poor performance of contractors and delays in resolution of disputes and claims
• All these lead to time and cost overruns, and the absence of commensurate long-term financing avenues.
• As pointed out by a report by ORF (Observer Research Foundation), the reasons for institutional investor avoidance of infrastructure projects in India are manifold.
• Sovereign wealth and pension funds have limited appetite for what they view as regulatory uncertainty when it comes to India.
• Regulatory risks can manifest themselves in various forms, whether it is tariff entries based on differing interpretations of government provisions or a lack of enforcement when it comes to upholding purchase agreements.
• Additionally, concerns about the legal system also tend to dissuade investors.
• While robust frameworks have been created and implemented regarding infrastructure development, India is currently ranked 172 out of 190 countries when it comes to the enforcement of contracts.

India’s infrastructure gap

• India’s infrastructure gap, economists all over the world agree that bridging India’s infrastructure gap can be the catalyst for its economic and development leap.
• To bridge this gap, however, an investment of $1.5 trillion over the next ten years is needed.
• As pointed out by a participant during the Raisina infrastructure roundtable, it is not feasible to expect the Indian government to try and finance all of this.
• Harkening back to the days of the East India Company, the private sector has been the fail-safe for services that governments could not provide.
• With $100 trillion in international long-term capital available for investment, there is no dearth of funding that can be tapped into, to bring India’s infrastructure insecurity to an end.

How can we improve the PPP model for infrastructure development?

The Public-Private Partnership (PPP) model has been a popular mode of infrastructure development in India. However, several challenges need to be addressed to make it more effective. According to a report by NITI Aayog, the PPP model needs to be strengthened by improving the policy framework (Report). 

Here are some suggestions for how the PPP model can be improved

Risk-sharing

• The risks associated with the project should be shared between the public and private sectors fairly and transparently.
• This will help to reduce the burden on the private sector and make the projects more attractive to investors.

Clearance procedures

• The clearance procedures for PPP projects should be streamlined and made more efficient.
• This will help to reduce the time taken for project implementation and improve the overall efficiency of the process.

Dispute resolution

• The dispute resolution mechanism for PPP projects should be strengthened to ensure that disputes are resolved in a timely and efficient manner.
• This will help to reduce the time and cost overruns associated with disputes.

Incentives

• The government should provide incentives to private investors to encourage them to invest in PPP projects.
• This could include tax breaks, subsidies, or other financial incentives.

Capacity building

• The capacity of the public sector to manage PPP projects should be improved.
• This will help to ensure that the projects are implemented efficiently and effectively.

Transparency

• The PPP process should be made more transparent to ensure that there is no scope for corruption or malpractice.
• This will help to build trust between the public and private sectors and encourage more private investment in infrastructure development.

By addressing these challenges, the PPP model can be made more effective and attractive to investors, which will help to bridge India’s infrastructure gap and promote economic growth. Also, Challenges in Infrastructure Projects in India can be minimised.

Vadhvan Port

Source: Hindustan Times
GS II: Infrastructure

Overview

1. News in Brief
2. About the Vadhvan Port
3. Regional Impact of the Project
4. Jawaharlal Nehru Port Authority (JNPA)
5. Vadhvan Port in Map

Why in the News?

Public hearings for the proposed Vadhavan Port, which is to be developed as a Green Port, are likely to begin in the next few months.

News in Brief

• During the briefing, Sanjay Sethi spoke about the proposed port, which is slated to be the 13th major port in India.
• Vadhavan port will be amongst the first 10 biggest ports in the world, which will bring development, employment, and added income.

About the Vadhvan Port

• There is a planned container port project for Rs. 75,000 crore in Maharashtra’s Vadhavan.
• It will be developed as a Green Port.
• A new port where natural a depth of 20 Meters is available at a distance of about 4 ½ nautical miles.
• The Jawaharlal Nehru Port Authority (JNPA) and the Maharashtra Maritime Board (MMB) will jointly develop the port.
• This port will be jointly implemented by JNPA and Maharashtra Maritime Board with a shareholding of 74% and 26% respectively.
• The new port can accommodate larger vessels due to its natural draft of around 20 meters along the coast.
• It will make it possible to request container ships with capacities ranging from 16,000 to 25,000 TEUs (twenty-foot equivalent units), which will have the benefits of economies of scale and lower logistical costs.
• Its intended cargo capacity is approximately 254 million tonnes (MT).
• It is planning to provide green fuel to ships coming to the port, and the construction and operations are planned to keep in mind the environmental issues. 

Regional Impact of the Project

• The VVPL conducted 26 surveys and studies through agencies in India about various environmental aspects and impacts of this port.
• The project will abide by CRZ-1A norms will not require cutting off mangroves and will help to minimize the environmental impact of this port
• Compensation for the fishermen by direct employment and helping the affected persons with the latest fishing technology and allied businesses are being planned.
• A place of historical importance and worship, will not be affected by the port.

Jawaharlal Nehru Port Authority (JNPA)

• The Jawaharlal Nehru Port Authority (JNPA) at Navi Mumbai is a premier container handling Port in India accounting for around 50% of the total containerised cargo volume, across the major ports of India.
• Commissioned on 26th May 1989, in less than three decades of its operations, JNPA has transformed from a bulk cargo terminal to the premier container port in the country.
• Ranked 26th among the top 100 Container Ports in the world.
• Besides JNPA is connected to over 200 ports in the world.

Vadhvan Port in Map

• Vadhavan is a village in the Palghar district of Maharashtra, India.
• It is located in the Dahanu taluka.
• The port location is about 10 Km from the National Railway grid.
• About 35-40 Km from NH8.

Delhi Most Polluted City

Source: The Hindu
GS III: Environment Pollution

Overview

1. News in Brief
2. About the Report
3. What is the reason for Delhi’s Pollution?

Why in the News?

Day after Deepavali, three Indian metropolises figured on the list of the most polluted cities in the world compiled by the Swiss air purifier company IQAir.

About the Report

• Delhi was the most polluted city in the world with an air quality index (AQI) of 287.
• It is followed by Lahore, Pakistan, at 195. Mumbai, at 153, and Kolkata, at 166, were among the top 10.
• The IQAir’s AQI measures data from 109 countries, and the readings change hourly.
• It follows a U.S. methodology and varies slightly from the Indian one.
• The values are a measure of the quantities of PM (particulate matter) 2.5, considered most harmful to respiratory health.
• Though pollution from firecrackers is shortlived compared with those from persistent sources such as vehicle emission and waste and biomass burning, the spike in pollutants has a pronounced effect on health.

Current Situation of Delhi Pollution

• Air pollution in parts of Delhi was 30 times the safe limits prescribed by the World Health Organization (WHO).
• This contributed in part by the firecrackers on Dipavali night, show figures from the Delhi Pollution Control Committee.
• This is despite a ban on firecrackers in the city.
• Several monitoring stations reported a value of 400, classified as the severe category.

What is the reason for Delhi’s Pollution?

• Delhi’s pollution is a complex issue with multiple contributing factors.
• It’s essential to note that addressing Delhi’s pollution requires coordinated efforts at local, regional, and national levels.
• Initiatives such as improving public transportation, regulating industrial emissions, promoting cleaner technologies, and addressing agricultural practices contribute to the overall strategy for mitigating pollution in Delhi.
• Additionally, the implementation of policies to manage stubble burning and waste disposal is crucial.

Key reasons for the pollution in Delhi

• Vehicular Emissions
  • Delhi has a high density of vehicles, and emissions from automobiles contribute significantly to air pollution.
  • The use of diesel vehicles, in particular, adds to the levels of particulate matter and nitrogen oxides.
• Waste Burning
  • The burning of municipal solid waste and other types of waste contributes to air pollution.
  • Open burning of waste releases harmful substances into the atmosphere.
• Industrial Pollution
  • Industries in and around Delhi contribute to air pollution.
  • Emissions from factories release pollutants into the air, including particulate matter, sulfur dioxide, and nitrogen oxides.
• Construction Activities
  • Dust from construction sites is a major source of particulate matter in the air.
  • The ongoing construction and infrastructure development in the city can contribute to elevated levels of dust.
• Biomass Burning
  • The burning of agricultural residues in nearby states, especially during the post-harvest season, leads to the transport of pollutants to Delhi.
  • This significantly impacts air quality.
• Meteorological Factors
  • Weather conditions, particularly during the winter months, can lead to the trapping of pollutants near the ground.
  • Temperature inversions and calm wind conditions can result in the accumulation of pollutants.
• Stubble Burning
  • During the post-monsoon season, the burning of crop residues in the neighbouring states of Punjab and Haryana is a major contributor to Delhi’s air pollution.
• Geographical Factors
  • Delhi’s geographical location, surrounded by states with various sources of pollution, can lead to the inflow of pollutants from neighbouring regions.
• Household Sources
  • The use of solid fuels for cooking and heating in some households contributes to indoor air pollution.
  • While this directly affects indoor air quality, it can also have an impact on the overall air quality in the city.

Prelims

Birsa Munda

News: November 15, the birth anniversary of Birsa Munda, was declared ‘Janjatiya Gaurav Divas by the Central Government in 2021.

• Folk hero and a tribal freedom fighter.
• He is hailing from Munda Tribe.
• Influenced his people to realise the importance of owning their land and asserting their rights over it.
• He created a faith called Birsait.
• His struggle against exploitation and discrimination against tribals led to a big hit against the British government.
  • As a result Chotanagpur Tenancy Act being passed in 1908.
  • The act restricted the passing on of land from the tribal people to non-tribals.

Ben Gurion Canal Project

News: The Ben Gurion Canal Project is an alternative to the Egyptian-controlled Suez Canal

• The Ben Gurion Canal Project is a proposed canal project through the state of Israel.
• It is named after Israel’s founding father David Ben-Gurion (1886-1973).
• It envisages the canal through the Israeli-controlled Negev Desert from the tip of the Gulf of Aqaba — the eastern arm of the Red Sea that juts into Israel’s southern tip and south-western Jordan — to the Eastern Mediterranean coast.
• It was first envisioned in the 1960s
• If it were to be completed, it would transform global maritime dynamics by taking away Egypt’s monopoly over the shortest route between Europe and Asia.

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