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  • Wed. Oct 16th, 2024

Editorials & Articles – 16 March 2024

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Editorials & Articles – 16 March 2024

Looking to the future on St. Patrick’s Day

Topic: GS2 – International Relations

Ireland-India relations’ 75th anniversary, global challenges, and youth engagement have UPSC relevance for diplomacy and international affairs.

Context
● The article highlights the 75th anniversary of diplomatic ties between Ireland and India.

●  It emphasizes India and Ireland’s historical connection, mutual support on global issues, youth engagement, economic partnerships, and shared commitment to fostering enduring international collaborations.

 Celebrating 75 Years of Partnership

  • This year’s St. Patrick’s Day marks 75 years of diplomatic relations between Ireland and India.
  • Both countries share a history of fighting for independence from colonial rule.
  • Their bond has grown stronger over the years through trade, education, and cultural connections.

Acknowledging Global Challenges

  • The global climate of conflict creates a somber backdrop for celebrations.
  • Ireland condemns Russia’s invasion of Ukraine and supports Ukraine’s EU membership.
  • Ireland denounce Hamas’s attack on Israel and advocate for hostage release in Gaza.
  • Ireland prioritizes upholding international law, humanitarian aid, and civilian protection in conflicts.
  • Their own struggles with famine, poverty, and conflict shape their perspective.

Looking to the Future: The Importance of Young People

  • Ireland’s young people are leading the fight against climate change and for clean energy solutions.
  • They advocate for international law, strong institutions, and a rules-based global order.
  • Ireland champions these issues during its UN Security Council term alongside India.

Ireland: A Hub for Talent and Investment

  • Top global companies are attracted to Ireland’s economic stability and EU market access.
  • A highly skilled and young workforce fuels Ireland’s success.
  • World-class universities attract international students, including nearly 10,000 from India each year.

Ireland’s Global Role and the Indian Connection

  • Ranking high in the UN’s Human Development Index, Ireland feels a responsibility to promote peace and equality.
  • Over 80,000 Indians contribute significantly to Irish society across various sectors.
  • This strong youth connection strengthens the India-Ireland partnership.

Building Enduring Partnerships

  • An Irish proverb emphasizes the importance of collaboration: “Ar scáth a chéile a mhaireannn na Daoine” (We live in each other’s shadow).
  • Supporting each other and fostering partnerships are crucial for the future.
  • This is the core message of Ireland’s St. Patrick’s Day celebration in 2024.
India – Ireland Relations
Prospects:

● Economic Cooperation: India and Ireland can explore opportunities for bilateral trade and investment, particularly in technology, pharmaceuticals, and renewable energy sectors.

● Educational Exchange: Enhanced collaboration in education through student exchange programs and joint research initiatives can strengthen ties.

● Cultural Ties: Promotion of cultural exchanges, including festivals, arts, and literature, can foster mutual understanding and appreciation.

Diaspora Engagement: Leveraging the sizable Indian diaspora in Ireland and Irish diaspora in India for deeper people-to-people connections.

● Strategic Partnerships: Potential for cooperation in areas of cybersecurity, counter-terrorism, and climate change due to shared interests and challenges.

Challenges:

Geographic Distance: Physical distance poses a challenge for regular high-level engagements and trade activities.

Limited Awareness: Both countries need to raise awareness about each other’s economic potential and cultural richness among their respective populations.

● Regulatory Barriers: Differences in regulatory frameworks may hinder seamless trade and investment flows.

Competing Priorities: Both countries have diverse international engagements, which might divert attention and resources from bilateral relations.

● Historical Context: Historical issues or perceptions could occasionally create tensions and hamper progress.

Way Forward:

● Enhanced Diplomatic Outreach: Regular diplomatic dialogues and visits can facilitate deeper understanding and trust between the two nations.

● Trade Facilitation: Streamlining trade processes and reducing tariffs can boost bilateral trade and investment.

●  Educational and Cultural Exchanges: Strengthening existing programs and introducing new initiatives for educational and cultural exchanges.

● Technology Collaboration: Encouraging collaboration in emerging technologies, such as artificial intelligence and biotechnology, can yield mutual benefits.

People-to-People Contacts: Encouraging tourism, student exchanges, and business delegations to promote greater interaction at various levels.

Overall, by addressing challenges through concerted efforts and capitalizing on shared interests, India and Ireland can forge a stronger and more fruitful partnership in the coming years.

A penal code for AI

Topic: GS2 – Governance – Important aspects of governance: E-governance – applications, models, successes, limitations and potential;

This topic is relevant for both Prelims and Mains in the context of knowing facts about the AI Act which represents a landmark regulatory framework for governing artificial intelligence within the European Union. Understanding its provisions and implications can provide insights into emerging regulatory trends in technology governance.

Context:
  • The European Parliament recently passed the groundbreaking Artificial Intelligence Act (AI Act, 2024), marking the first comprehensive regulatory framework for artificial intelligence (AI).
  • This law not only governs AI within the European Union (EU) but also sets a global precedent for engaging with AI technologies.
  • The AI Act is notable for its recognition of the varying levels of AI intelligence and potential harms associated with AI systems.
  • Through a detailed analysis, this article will explore the key provisions and implications of the AI Act, shedding light on its significance and potential impact.

The New Regulatory Framework:

  • The AI Act aims to establish a uniform legal framework for the development, deployment, and use of AI systems within the EU.
  • It emphasizes adherence to the Charter of Fundamental Rights of the European Union and other relevant European laws.
  • Notably, the law applies to AI providers offering services within the EU, regardless of their location.
  • Central to the AI Act is its definition of AI systems, which highlights their autonomy, adaptiveness, and ability to generate outputs based on input.

Prohibited AI Practices:

  • Article 5 of the AI Act prohibits certain AI practices deemed harmful.
  • These include deploying subliminal or manipulative techniques that distort decision-making processes, thus causing significant harm to individuals or groups.
  • This provision addresses contemporary concerns such as fake news propagation and algorithmic manipulation through social media platforms.

Classification of AI Systems:

  • The AI Act categorizes AI systems based on their potential for harm, distinguishing between harmful, high-risk, and low-risk AI systems.
  • Harmful AI practices, such as subliminal manipulation and exploitation of vulnerable groups, are explicitly banned.
  • High-risk AI systems, which pose safety risks or threaten fundamental rights, are subject to stringent regulations, including risk management and human oversight requirements.
  • In contrast, low-risk AI systems, such as chatbots and emotion recognition systems, face minimal regulatory obligations.

Enforcement and Governance:

  • The implementation of the AI Act involves the establishment of a European Artificial Intelligence Board and national supervisory authorities within each EU member state.
  • These bodies will oversee the application and enforcement of the law, imposing fines of up to 6% of the offender’s total worldwide annual turnover for non-compliance.
  • The phased implementation of the law allows AI developers and providers time to adapt to the regulatory requirements.

Global Implications and Commercial Potential:

  • The AI Act not only impacts AI development and use within the EU but also sets a precedent for global AI regulation.
  • Considering the significant commercial potential of AI, with projections reaching trillions of dollars in investment, regulatory frameworks like the AI Act are crucial for managing the commerce, benefits, and potential harms associated with AI technologies.
  • As AI continues to influence various aspects of human life, laws and regulations must evolve to address its multifaceted implications comprehensively.

Conclusion:

  • The article of the AI Act represents a significant milestone in AI regulation, setting a precedent for global governance of AI technologies.
  • By recognizing the varying levels of AI intelligence and potential harms, the AI Act aims to promote responsible AI development and use while safeguarding fundamental rights and values.
  • As AI continues to evolve and expand its influence, regulatory frameworks like the AI Act will play a vital role in shaping the ethical and legal landscape of AI technologies.
What is India’s Strategy Regarding AI Regulation?
Stance:

  • India is yet to have a comprehensive framework for regulating AI. However, India has shifted from a stance of not considering AI regulation to actively formulating regulations based on a risk-based, user-harm approach.
  • Advocacy for Inclusive and Responsible AI:
  • India’s initial national AI strategy, #AIFORALL, aimed at inclusivity, debuted in 2018.
  • NITI Aayog’s National Strategy for AI (2018) included a chapter on responsible AI.
  • In 2021, NITI Aayog issued a paper, ‘Principle of Responsible AI’. Seven broad principles were enumerated in the paper: equality, safety and reliability, inclusivity and non-discrimination, transparency, accountability, privacy and reinforcement of positive human value
  • In March 2023, the Ministry of Electronics and Information Technology introduced IndiaAI, the national program on AI, aimed at serving as a comprehensive initiative to cover all AI-related research and innovations.
  • In July, 2023 Telecom Regulatory Authority of India issued a paper, that recommended setting up a domestic statutory authority to regulate AI through the lens of a “risk-based framework” and constitution of an advisory body with members from multiple government departments, academia and experts.
  • Major Sector-specific AI Frameworks in India:
  • Healthcare Sector:
  • Indian Council of Medical Research issued ethical guidelines for AI in biomedical research and healthcare in June 2023.
  • Capital Market:
  • SEBI issued a circular in January 2019 to guide policies and create an inventory for AI systems in the capital market.
  • Education Sector:
  • National Education Policy 2020 recommends AI awareness integration in school courses.
PYQ: With the present state of development, Artificial Intelligence can effectively do which of the following? (2020)

1) Bring down electricity consumption in industrial units

2) Create meaningful short stories and songs

3) Disease diagnosis

4) Text-to-Speech Conversion

5) Wireless transmission of electrical energy

Select the correct answer using the code given below:

(a) 1, 2, 3 and 5 only

(b) 1, 3 and 4 only

(c) 2, 4 and 5 only

(d) 1, 2, 3, 4 and 5

Ans: (b)


Act of inclusion, not exclusion
Topic: GS2 – Governance – Government policies – Issues arising out of their design & implementation.

This topic is relevant for both Prelims and Mains in the context of understanding the CAA and its implications which involves an analysis of government policies and their socio-political ramifications.

Context:
  • The Citizenship Amendment Act (CAA) passed by the Indian Parliament in December 2019 has sparked debates regarding its secular nature and its basis for determining refugee status.
  • As the government gazettes the rules for implementing the CAA, discussions have resurfaced concerning its impact on religious minorities seeking refuge.
  • This analysis delves into the key arguments surrounding the CAA, addressing its purported anti-Muslim bias and its historical context in addressing refugee influxes.

Religious Criterion in Refugee Status:

  • Globally, religion often serves as a crucial factor in determining refugee status, alongside other grounds such as race, nationality, membership in a social group, or political opinion.
  • The criticism against the CAA, alleging its religious bias, fails to acknowledge the international precedent of considering religion as a criterion for persecution and refugee protection.

Misconceptions about Exclusion of Muslims:

  • Critics argue that the exclusion of Muslims from the list of persecuted minorities under the CAA is discriminatory.
  • However, the Act focuses on providing relief to persecuted minorities from neighboring Islamic countries like Bangladesh, Pakistan, and Afghanistan.
  • Muslims in these countries, being the majority, are not targeted based on religion but may face persecution for other reasons, making them eligible for refuge under different laws.

Historical Context of Refugee Influxes:

  • India has witnessed several waves of refugee influxes, primarily from Bangladesh, Pakistan, and Afghanistan, due to political turmoil and communal violence.
  • The CAA aims to address the challenges posed by these influxes by providing expedited citizenship to persecuted minorities, particularly Hindus, Buddhists, Sikhs, and Christians, who have sought refuge in India.

Limited Mandate of the CAA:

  • The CAA is an amendment to the Citizenship Act of 1955 and does not alter its non-discriminatory nature.
  • It fast-tracks the citizenship process for persecuted minorities, reducing the residency requirement from 12 years to five years.
  • Contrary to misinformation, the CAA does not threaten the citizenship of Indian Muslims and does not provide an open-ended invitation to minorities from neighboring countries.

Implementation Challenges and Relaxation of Rules:

  • The framing of rules for implementing the CAA took over four years, facing delays due to various factors, including public movements and the COVID-19 pandemic.
  • Concerns regarding the documentation required for proving persecution were addressed by relaxing the evidentiary requirements, focusing instead on verifying citizenship of the applicant’s country of origin.
  • Similarly, rules pertaining to proof of residency in India have been eased, allowing for a broader range of acceptable documents.

Conclusion:

  • The gazetting of rules for implementing the CAA marks a significant step towards fulfilling a longstanding promise made by the Indian government.
  • Despite criticisms and challenges, the CAA aims to provide relief to persecuted minorities while upholding the principles of secularism and non-discrimination.
  • Effective implementation of the CAA will require collaboration between government agencies, NGOs, and concerned citizens to ensure that eligible refugees can avail themselves of the benefits provided by the Act.
What are the Concerns Related to the CAA, 2019?
  • Constitutional Challenge: Critics argue that it violates Article 14 of the Indian Constitution, which guarantees the right to equality before the law and prohibits discrimination based on religion.
  • The CAA’s provision of granting citizenship based on religion is seen as discriminatory.
  • Potential for Disenfranchisement: The CAA is often linked to the National Register of Citizens (NRC), a proposed nationwide exercise to identify illegal immigrants.
  • Critics fear that a combination of CAA and a faulty NRC could disenfranchise several citizens who are unable to prove their documentation.
  • More than 19.06 lakh people were left out of the final draft of the Assam NRC released in August 2019.
  • Impact on Assam Accord: In Assam, there is a specific concern regarding the compatibility of the CAA with the Assam Accord, 1985.
  • The Accord established criteria for determining citizenship in Assam, including specific cut-off dates for residency.
  • The CAA’s provision of a different timeline for granting citizenship could conflict with the provisions of the Assam Accord, leading to legal and political complications.
  • Secularism and Social Cohesion: The CAA’s focus on religion as a criterion for citizenship eligibility has raised broader concerns about its impact on secularism and social cohesion in India.
  • Critics argue that privileging certain religious communities over others undermines the secular principles upon which the Indian state was founded and could exacerbate communal tensions.
  • Exclusion of few Religious Communities: The exclusion of certain religious communities from the CAA and its subsequent rules, such as Sri Lankan Tamils and Tibetan Buddhists, who faced religious persecution in their home countries, raises concerns.

Atmospheric Research Testbed

Why in news?

  • Recently, the first phase of India’s Atmospheric Research Testbed in Central India (ART-CI) was inaugurated at Silkheda in Sehore district, Madhya Pradesh. Funded by the Ministry of Earth Sciences (MoES), the facility will house 25 high-end meteorological instruments for studying vital cloud processes associated with the monsoons over central India’s Monsoon Core Zone (MCZ).

What’s in today’s article?

  • Atmospheric Research Testbed (ART)
  • Why is it important to have data about monsoons over central India?

Atmospheric Research Testbed (ART)

  • About
    • The ART is an open-field, focused observational and analytical research programme. It will also be used for calibrating and validating various satellite-based observations, part of weather predictions and forecasting.
  • Functions
    • The facility will:
      • observe weather conditions on the ground, such as temperature and wind speeds, and
      • study weather systems like low-pressure areas and depressions that develop in the Bay of Bengal during the southwest monsoon season from June to September.
    • Studying these systems and their associated cloud parameters will be used to generate high volumes of data over a long period.
    • It can then be compared with the existing weather models so that improvements can be made to obtain accurate rainfall predictions.
  • Institutions involved
    • It has been developed by the Ministry of Earth Sciences for Rs 125 crore.
    • The Indian Institute of Tropical Meteorology (IITM), Pune, is in charge of the operations.
  • Different phases
    • Under the first phase, remote sensing-based and in-situ measurements using 25 meteorological instruments have commenced.
    • In the second phase, ART will deploy instruments such as a radar wind profiler and balloon-bound radiosonde, and soil moisture and temperature measuring equipment.
  • Location at Madhya Pradesh
    • This location falls directly in line with the path of major rain-bearing synoptic systems. This will facilitate direct monitoring and tracking.
      • Synoptic systems are weather systems that span a few hundred to several thousand kilometers.
      • These systems are characterized by features such as low-pressure areas, high-pressure areas, fronts (boundary between air masses), and associated weather phenomena like precipitation and winds.
    • Besides, the locality is pristine and free of anthropogenic and other pollutants, making it the best site in central India for setting up sensitive, high-end meteorological instruments and observatories for recording data.
  • Significance of ART
    • At present, 45% of India’s labour force is employed in the agriculture sector.
    • Much of Indian agriculture is rain-fed, as is cultivation along the Monsoon Core Zone (MCZ), which spans the central India region from Gujarat to West Bengal.
      • MCZ is a region in India that stretches from Gujarat to West Bengal, where cropping is mostly rainfed.
      • It is located within the monsoon trough area characterized by significant rainfall, intense convective activity, and atmospheric interactions that influence the Indian monsoon system.
    • The southwest monsoon season accounts for 70 per cent of the country’s annual average rainfall (880mm).
    • Throughout India, the majority of Kharif cultivation is undertaken between July and August.
    • During this four-month-long season, several rain-bearing synoptic systems, namely the low pressures or depressions, develop in the Bay of Bengal.
    • Inherently, these systems move westwards/northwestwards over to the Indian mainland and pass through the MCZ, causing bountiful rainfall.

Why is it important to have data about monsoons over central India?

  • Correlation between all-India rainfall performance to the rainfall received over the central India region
    • India Meteorological Department (IMD) issues rainfall forecasts for the country’s four homogeneous regions – north, west, east and south peninsular India.
    • In addition, it issues a special rainfall forecast for the MCZ, which is considered India’s food bowl.
  • Little understanding about the role of these synoptic systems
    • There is still limited understanding about the role of these synoptic systems, their associated cloud physics, cloud properties and their overall role in enhancing the monsoon rainfall.
    • Central India, therefore, acts as a natural laboratory for scientists and meteorologists to perform a hands-on study of the Indian monsoons.
    • They can record data and make observations about the allied systems, clouds, and other associated physical and atmospheric parameters.
  • Erratic climate change in the tropical regions, like India
    • This has strengthened the low-pressure systems, which are aided by high temperatures. It results in very heavy rainfall recorded along their trajectory during the monsoons.

Anti-CAA protests in Assam and Tripura

Why in news?

  • After the recent announcement of rules for the Citizenship (Amendment) Act or CAA, there are loud voices of dissent against it, but this time only in Assam and Tripura (The passage of CAA had caused unrest in the Northeast in 2019). The reason is that most parts of the Northeast, except for large areas of Assam and Tripura, have been excluded from the CAA.
  • However, the Act specifies that these provisions do not apply to: the tribal areas of Assam, Meghalaya, Mizoram, or Tripura as included in the Sixth Schedule of the Constitution, and the areas covered under ‘The Inner Line’ notified under the Bengal Eastern Frontier Regulation, 1873.

What’s in today’s article?

  • Inner Line system
  • Sixth Schedule of the Constitution
  • ILP, Sixth schedule and CAA
  • Why are Assam, Tripura against CAA?

Inner Line system

  • About
    • An Inner Line Permit (ILP) regime is operational in the four Northeastern states of Arunachal Pradesh, Nagaland, Mizoram and Manipur.
    • ILP is a special permit that residents of other parts of India need to apply for and receive, in order to enter and spend any duration of time in these states.
  • Background
    • The British introduced the Bengal Eastern Frontier Regulation 1873 for tribal hill areas, aiming to protect the indigenous population by preventing the settlement of other Indian nationals.
    • This system continued after Independence and was implemented in Arunachal Pradesh, Nagaland, and Mizoram.
    • Manipur was included in January 2020 due to protests following the enactment of the CAA.

Sixth Schedule

  • About
    • Sixth Schedule gives tribal communities of NE states considerable autonomy within a larger administrative or political structure.
      • It was adopted under Article 244 (2) of the Constitution.
    • This schedule deals with the provisions for formation of autonomous administrative divisions within a state.
  • Current status
    • Sixth Schedule of Indian Constitution provides a list of ten tribal areas in Assam (3), Meghalaya (3), Tripura (1) and Mizoram (3).
    • Each of these tribal areas constitutes an autonomous district. Each autonomous district has an Autonomous District Council (ADC).
  • Inclusion under sixth schedule
    • Inclusion under this Schedule allows a region to create Autonomous District and Regional Councils (ADCs and ARCs) — elected bodies with the power to administrate tribal areas.
    • This would include the power to make laws on subjects such as forest management, agriculture, administration of villages and towns, inheritance, marriage, divorce and social customs.
    • The ADCs and ARCs may also:
      • constitute village councils or courts to decide disputes between parties from Scheduled Tribes, and
      • appoint officers to oversee the administration of the laws they enact.
    • In cases where the offences are punishable with death or more than five years of imprisonment, the Governor of the state can confer upon the ADCs and ARCs the power to try them under the country’s criminal and civil laws.
    • The Schedule also gives ARCs and ADCs the power to
      • collect land revenue, impose taxes, regulate money lending & trading,
      • collect royalties from licences or leases for the extraction of minerals in their areas, and
      • Establish public facilities such as schools, markets, and roads.

ILP, Sixth schedule and CAA

  • Of the seven sisters in the Northeast, Mizoram is already outside the CAA ambit as the ILP is operational there.
  • All of Meghalaya, barring a small part around Shillong, comes under three different ADCs — one each for the Khasi, Garo and Jaintia hills.
    • Despite most of Meghalaya coming under the Sixth Schedule, there is still some discontent among groups. These groups are against the implementation of the CAA in areas not under the Sixth Schedule.
    • Already, the Meghalaya government is pushing for the implementation of an ILP regime across the state, which would make the CAA redundant.
  • Assam has three ADCs under the Sixth Schedule:
    • Bodoland Territorial Council that covers five districts;
    • North Cachar Hills Autonomous Council that covers one district; and
    • Karbi-Anglong Autonomous District Council that covers two districts.
  • Similarly, Tripura has the Tripura Tribal Areas Autonomous District Council.

Why are Assam, Tripura against CAA?

  • Boundary with the Bangladesh and most of the region does not come under either the Sixth Schedule or the ILP regime
    • Assam shares a 263-km border with Bangladesh while Tripura has a 856-km border with Bangladesh.
    • Most of the Assam and Tripura do not come under either the Sixth Schedule or the ILP regime.
    • And that is why there’s unrest in these areas against the CAA.
  • Strong anti-immigrant sentiment
    • Both states have strong anti-immigrant feelings because they share long, open borders with Bangladesh.
    • Also, they have experienced a continuous flow of refugees from the neighbouring country since the days of East Pakistan.
    • There are no official records of these migrations, whether large-scale ones during significant events like India’s Independence and Partition in 1947 or the creation of Bangladesh in 1971, nor of the ongoing smaller movements.
    • While some of these migrants are Muslim, most are believed to be Bengali-speaking Hindus.
  • Worried over rising number of Bengali speakers
    • CAA does not include Muslim refugees or migrants, focusing instead on legitimizing Hindu refugees.
    • This has angered Assamese ethno-nationalists and Tripuri tribals who are worried about the growing number of Bengali speakers.
  • Separating CAA from NRC Raises Concerns
    • The government is now saying that the CAA will not be connected to the National Register of Citizens (NRC)— to weed out illegal immigrants, which was originally conceived for, and only implemented in Assam, but remains stalled.
    • This change worries many in Assam because they feel the CAA undermines their main beliefs and political platform. Tripura faces similar concerns.

Central Govt. Approves New EV Policy with Tax Relief

The Central Government has announced a new electric vehicle (EV) policy that will be coming with tax relief.This is expected to provide a major boost to companies like Tesla, Vinfast that have plans to start operations in India.

What’s in Today’s Article?

  • About Electric Vehicles (Need for EVs in India, EV sales, FAME Scheme, etc.)
  • Key Initiatives Taken by the Govt.
  • News Summary

Background:

  • India has committed to achieving net-zero emissions by 2070 at the 26th Conference of the Parties (COP26) in November 2021.
  • This will require clear pathways to decarbonize high greenhouse gas (GHG) intensive sectors such as transport and energy.
  • To decarbonize transport, the transition to clean mobility, led by electric vehicles (EVs), is paramount.
  • India is on the cusp of an e-mobility revolution led by the two-wheeler (2W) and three-wheeler (3W) vehicle segments.
  • 2Ws account for 70-80% of all private vehicles, and 3Ws play a critical role for public transit, freight transport and last mile connectivity in cities.

EVs in India:

  • Electric vehicle sales in India jumped 49.25 per cent year-on-year to more than15 lakh units in 2023, according to a data released by the Federation of Automobile Dealers’ Association (FADA).
    • The EV industry had recorded a total sale of around 10 lakh units in 2022, as per the data.
  • The surge in sales can be attributed to increase in the availability of products in the market, high fuel prices, state subsidies and sops offered under the FAME-II Initiative.

About FAME-II Scheme:

  • Launched in 2015, the Fame India scheme is an incentive scheme that encourages the adoption of electric and hybrid vehicles.
  • The full form of FAME India scheme is “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India”.
  • In 2019, the Central government approved Phase-II of FAME Scheme with an outlay of 10,000 Crore for a period of 3 years.
    • Earlier this year, it was extended to March 31, 2024.
  • Phase-II aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.
  • Nearly 2 lakh vehicles have been supported under the FAME-II scheme.

Other Measures taken by the Government to promote use of EVs:

  • Battery Swapping Policy:
    • Battery swapping is an alternative which involves exchanging discharged batteries for charged ones and provides flexibility to charge them separately.
    • This de-links charging and battery usage and keeps the vehicle in operational mode with negligible downtime.
    • NITI Aayog, recently, released a draft battery swapping policy under which all metropolitan cities with a population above 40 lakh will be prioritised for development of battery swapping network under the first phase.
    • Battery swapping is an alternative which involves exchanging discharged batteries for charged ones and provides flexibility to charge them separately.
    • This de-links charging and battery usage and keeps the vehicle in operational mode with negligible downtime.
  • Switching to an EV:
    • Central/State governments provide an upfront subsidy that reduces the overall costs of electric vehicles.
  • E-AMRIT Portal:
    • The e-AMRIT portal offers various resources to help ease the migration to electric vehicles.

New EV Policy with Tax Relief

  • The Government of India has approved a scheme to promote India as a manufacturing destination so that e-vehicles with the latest technology can be manufactured in the country.
  • The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers.
  • This will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition among EV players.
  • It will also lead to high volume of production, economies of scale, lower cost of production, reduce imports of crude Oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment.

Key Features of the Policy:

  • Minimum Investment required: Rs 4,150 Cr;
  • No limit on maximum Investment;
  • Timeline for manufacturing:
    • 3 years for setting up manufacturing facilities in India, and to start commercial production of e-vehicles, and reach 50% domestic value addition (DVA) within 5 years at the maximum.
  • Domestic value addition (DVA) during manufacturing:
    • A localization level of 25% by the 3rd year and 50% by the 5th year will have to be achieved.
  • The customs duty of 15% (as applicable to CKD units) would be applicable for a period of 5 years
  • Not more than 8,000 EVs per year would be permissible for import under this scheme. The carryover of unutilized annual import limits would be permitted.
  • The Investment commitment made by the company will have to be backed up by a bank guarantee in lieu of the custom duty forgone.

 

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