11 January 2021: The Hindu Editorial Analysis

1)  Felled by fire: On new-born deaths in Maharashtra hospital.

To avert another Bhandara-like hospital inferno, govts must address underlying causes.

GS-2: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

GS-3: Infrastructure: Inclusive growth and issues arising from it and Disaster Management

GS-4: Legal and ethical issues.

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CONTEXT:

1. The deadly fire that snuffed out the lives of 10 infants in the Bhandara District General Hospital in Maharashtra is a shocking reminder that safety norms in several medical facilities in India do not pass muster.
2. A review of Indian hospital fires published the Journal of Clinical Anesthesia identified higher oxygen availability in intensive care facilities as the likely primary cause, with motors and electrical units in the room providing the ignition, and plastics fuelling it..

 

ABOUT: challenge Vs solution:

1. Intensive Care Units, neonatal ICUs and operating rooms are often the site of fires, implicating the presence of a high concentration of oxygen in a confined space.
2. Oxygen monitors for hospital rooms, to ensure that the ambient level is within safe norms — set at a maximum of 23.5% by the U.S. National Fire Protection Association, could help avert an accident.
3. Locating electrical equipment for air-conditioners with sparking potential away from oxygen saturated areas may also reduce the risk.
4. It is essential that all new infrastructure conforms to rigorous safety standards, a small premium to stop such disasters.
5. If the government sets the regulation bar high enough, ensuring full adherence to safety in its buildings, regulatory authorities can compel commercial structures to fall in line 
6. The Centre should also create a public platform for insights gained from inquiries into hospital fires to be shared and monitor. 

Source: TOI

 

Major Guidelines for Hospital Safety:

1. The National Accreditation Board for Hospitals and Healthcare Providers (NABH) made mandatory for all hospitals by the National Building Code and its specific norms for hospitals.

2. Regulations as per National Building Code 2005: on ‘Fire & Life Safety’ covers the requirements for fire prevention & life safety in relation to fire and fire protection of buildings.

3. National Disaster Management Authority (NDMA) were given the responsibility to prepare guidelines for Hospital Safety and Preparedness to deal with on-site emergencies

 

Institutional Mechanisms:

1. Both Health and Disaster Management being state subjects are under 7th  schedules of constitution.
2. Ministry of Health and Family Welfare, the Central Public Works Department and other licensing agencies at the Central or State levels act to implement guidelines for effective compliance.
3. Health departments and state disaster management authorities, along with the state public works department, will play a crucial role in implementing these guidelines on the ground and ground implimitation.
4. National Disaster Management Authority, the Bureau of Indian Standards, is insuring Hospital Safety in our country.

 

Laws in India Governing Fire Safety and Governance:

1. The National Building Code of India, 2016, is titled 'Fire and Life Safety’. It covers the requirements for fire prevention, life safety in relation to fire and fire protection of buildings.
2. The Model Building Byelaws, 2003: Point-specific responsibility for all fire-related clearance rests with the Chief Fire Officer.

Source  : international journal research foundation. 

 

Preventive measures:

1. Hazard Identification & Risk Assessment (HIRA).

2. Architecture and layout.

3. Fire safety mechanism.

4. Fire detection equipment.

5. Fire audit survey.

6. Maintenance of electrical wiring and equipment .

7. Prohibiting smoking.

8. Guidelines for fire drills and evacuations.

9. Vulnerability analysis.

10.  Flows Standing Fire Advisory Council (SFAC) guideline.

 

Way forward:

1. All Municipal Corporations with a population of more than one million (2001 census) must put in place a fire hazard response and mitigation plan for their respective jurisdictions guideline of 13th Finance commission recommendation.
2. Both the governments at the centre and the state must have clear provisions in their safety legislation about the methodology and periodicity of such audits.
3. A strong building code with features for reduction of fire hazards for all structures and especially for hospitals since they host people who are incapacitated and cannot be evacuated quickly.
4. Hospitals should mandatorily hold regular safety and evacuation drills which are key to saving lives when disaster strikes.

 

2) Planning an exit out of the easy money regime

The RBI’s main challenge would be in managing the tension between restraining inflation and supporting recovery.

GS-3:  Indian Economy and issues relating to planning, mobilization, of resources, growth, development

GS-2: Development processes and the development industry —the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.

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CONTEXT:

1. The Reserve Bank of India (RBI) embarked on an extraordinary expansionary policy to manage the financial pressures unleashed by COVID-19.

2. It slashed policy interest rates aggressively, flooded the market with an unprecedented amount of liquidity and instituted a slew of measures for targeted assistance to especially distressed sectors.

 

ABOUT:

1. Expansionary policy : It is intended to boost business investment and consumer spending by injecting money into the economy either through direct government deficit spending or increased lending to businesses and consumers. Ex: Quantitative Easing, or QE, is another form of expansionary monetary policy.

2. All of the following options have the same purpose to expand the supply of currency or money supply for the country:

                                     1. Decreasing the discount rate.

                      2. Purchasing government securities.

                                    3. Reducing the reserve ratio.

3. Expansionary fiscal policy involves reducing taxes or increasing government spending, shifting the aggregate demand curve to the right, and increasing output.

 

How RBI Manage the financial pressures of COVID-19?

One of the big lessons of the global financial crisis is that any missteps on the exit path by way of commission, omission, or importantly communication, can be costly in macroeconomic terms. In such a scenario, RBI must be planning for a non-disruptive exit out of the easy money regime. Reversing a crisis-driven expansionary policy has to be a deliberative process, with the timing and sequencing carefully planned.

 

Challenges that the RBI will confront on the way out?

1. To manage the tension between restraining inflation and supporting the recovery.
2. This is a policy dilemma even when the macroeconomic situation is benign, the pandemic has made the dilemma much sharper.
3. Monetary Policy Committee (MPC) review shows Inflation remained above the RBI’s target band for the past several months, and according to the RBI’s own estimates, is expected to remain above the band for the next several months.
4. The MPC expects inflation to soften on its own in the weeks ahead as supply chains, disrupted by the lockdown, normalise, and the bumper winter crop comes into the market.

Issue faced by RBI Transmission of Monetary Policy:

1. Inflexible Cost of Funds.
2. Policy Rates not linked to Market.
3. High Non-Performing Assets (NPAs)
4. Four Balance Sheet Problems.
5. Monetary Policy Vs Fiscal Policy.
6. Adoption to Multi-Indicator Approach.
7. Linking Cost of Funds with Market.
8. Coordination Between Fiscal Policy and Monetary Policy

 

Opportunities / solution:

1. Inflation and revival:

1. Persistent high inflation expectations would result in food inflation getting more generalised. Core inflation could firm up because of rising input prices

           Solution: balance approach between food inflation and core inflation.

2. ‘Excessive margins’ among the factors cited by the MPC as one of the causes of high inflation, may not disappear if firms, regaining pricing power amid demand recovery, raise prices to mend their balance sheets.

          Solution: government initiate public private investment. 

3. Equally, there are concerns that the recovery, for all the positive signals, is still fragile.

          Solution: Rebate in GST and tax to industry and farms.

4. There is heightened concern about an aggravated unemployment problem caused by big firms retrenching labour to cut costs.

           Solution: Revive MSME and private sector, inflow FDI and Make in India.

 

2. Plight of savers:

a) Quite apart from the upside risks to inflation and downside risks to growth, the RBI should also be concerned about the plight of savers who are being short changed by low interest rates at a time of high inflation.

Solution: Normalise the policy rates, repo rate and withdraw the ‘excess’ liquidity in good time.

 

3. Market reactions:  

a) RBI seeks to guard financial stability by normalising liquidity, it will have to contend with possible market tantrums.  

Solution: RBI will have to manage its communication as carefully as it does the liquidity withdrawal.

 

4. Financial stability:

1. The current account surplus this year together with massive capital flows has meant a surfeit of dollars in the system putting upward pressure on the rupee which is already overvalued in real terms.
2. The RBI has absorbed nearly $90 billion this fiscal year to prevent exchange rate appreciation and to maintain the competitiveness of the rupee.

           Solution:

1. Invest in government bond (T -Bond),overcome NPA and eases market through loan and investment.  
2. RBI will increase the attractiveness of government securities for banks. They are likely to opt for a safer option and reduce the level of lending to industry.
3. In order to be successful in managing current account by attracting foreign inflows when the industrial sector is far from buoyant and capital markets are faltering, it requires high degree of dexterity in managing growth and risk perception of investors.

Source :The Hindu

 

Way forward:

1. Without structural reforms the above issues cannot be addressed. 

2. Coordination between Fiscal Policy and Monetary Policy Separating debt management from monetary management in order to make the central bank more independent would be a good move.

3. The answer lies in the fragile state of the Centre’s finances, and its control over interest, pension and subsidy expenses

 

3) The front seat in electric mobility:

The lithium and cobalt industry are likely to grow domestically to support the switch to electric vehicles.

GS-1: Effects of globalization on Indian society.

GS-2:  Issues relating to development and management of Social Sector/Services relating to Human Resources.

GS-3: Changes in industrial policy and their effects on industrial growth. Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Investment  models. Science and Technology- developments and their applications and effects in everyday life. Environment Conservation

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CONTEXT:

1. 1. The progression to electric vehicles is important for India because such vehicles are sustainable and profitable in the long term.
   2. Reducing dependence on crude oil will save the government money, reduce carbon emissions, and build domestic energy independence. Transition to electric vehicles is economically and environmentally viable option. This will also influence India’s foreign policy as our energy security dependence will shift from West Asia to Latin America.

 

Benefits of Shift to electric vehicles

1. 1. Shifting towards EVs will help India to reduce oil dependency while solving the challenge of energy scarcity and moving towards renewable and clean sources of energy. India imported 228.6 MT of crude oil worth $120 billion in 2018–19, which made it the third-largest oil importer in the world in terms of value.
   2. Controlling Pollution, climate and resource and Mitigating Climate Change.
   3. This makes it all the more reason for India to make electric cars and vehicles a priority in the fight against the reliance on fossil fuels.
   4. Challenges:
1. New concern:  India has had a growing appetite for lithium-ion batteries, and so, lithium imports have tripled from $384 mn to $1.2 bn.
2. Lack of Battery Cell Manufacturing: There is a complete absence of primary battery cell manufacturing in India which poses the risk of increasing trade deficit.
3. Building Charging Infrastructure: Another big challenge is the development of charging infrastructure which will need to be combined with existing refuelling stations and at alternative locations closer to homes.
4. Limited Grid Capacity: According to a NITI Aayog report, India’s EVs market needs a minimum of 10 GW of cells by 2022, which would need to be expanded to about 50 GW by 2025.
5. Local Issues: Bringing transportation congestion, affordability, infrastructure and transit systems availability are localized issues, impede the standardization of EVs.
6. Lithium ion and cobalt Industry still lack the range that would make them a viable alternative to internal combustion engines.
7. Interestingly, lithium is also used as a drug to treat bipolar disorder and is soon becoming the metal to treat a world polluted by excessive carbon emissions.

 

Government Initiatives:

1. The government aims to see 6 million electric and hybrid vehicles on the roads by 2020 under the National Electric Mobility Mission Plan 2020.
2. Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India Scheme) for improving electric mobility in India.
3. The GST reduction for electric vehicles from 12% to 5%.
4. The Union power ministry categorized charging of batteries as a service, which will help charging stations operate without licences.
5. Implementation of smart cities would also boost the growth of electric vehicles.
6. This will be a long-term solution to clean our cities, build new markets, and skill people for new jobs towards an ‘Atmanirbhar Bharat’.

 

What measures needs to be taken?

1. State and city-level players need to be involved so as to address several technical and infrastructural needs.
2. Accelerating EV use in India should be linked to the “Make in India” or an ‘Atmanirbhar Bharat’.
3. Investment is required (PPP model) for research and development in battery-making and exploring alternative technologies.
4. Avoids multiplicity and reduces the cost of infrastructure, while making it convenient and safe for users.
5. India needs a road map, with timelines, processes, well-researched impact studies, bold initiatives and robust investments.

 

Mine for lithium, cobalt overseas

1. India in recent years started reaching out to the ‘Lithium Triangle’ in South America. In 2019, Khanij Bidesh India Ltd inked a pact with an Argentine firm to jointly prospect lithium in the South American country.

1. It is a consortium of three PSU companies including National Aluminum Company (NALCO), Hindustan Copper (HCL) and Mineral Exploration Corp Ltd., (MECL).
2. The Consortium has been formed by the Ministry of Mines, Government of India, for identifying, exploring, acquiring, developing and processing strategic minerals overseas.
3. Now, India is exploring options in Chile and Bolivia, two other top lithium-producing countries.
4. India’s biggest trading partners in Latin America are Brazil, Mexico, and Venezuela, and majority of trade is concentrated on crude oil which includes 14%-20% of India’s total crude oil imports.
5. Lithium is also used as a drug to treat bipolar disorder and is soon becoming the metal to treat a world polluted by excessive carbon emissions. 

2. South American country has the third-largest reserves of the silver-white alkali metal— a crucial building block of the lithium-ion rechargeable batteries that power electric vehicles (EVs), laptops and mobile phones.
3. Recently, the Atomic Minerals Directorate for Exploration and Research (AMD), an arm of the Department of Atomic Energy, have shown the presence of 1,600 tonnes of lithium resources in the igneous rocks of the Marlagalla-Allapatna region of Karnataka’s Mandya district.
4. Global producers of lithium: In 2019, the world’s Top 5 lithium producers were:

• Australia – 52.9% of global production
• Chile – 21.5%
• China – 9.7%
• Argentina – 8.3%
• Zimbabwe – 2.1

 

Way forward :

1. 1. The number of privately-owned motorised vehicles rose from 29 million in 2002 to 160 million in 2013. This figure will almost certainly rise again, to over 500 million, by 2030.
   2. In comparison to CNG, H-CNG allows for a 70% reduction in carbon monoxide emissions and a 25% reduction in hydrocarbon emissions.
   3. Hydrogen Council (2020) on hydrogen cost competitiveness that states scaling up and augmenting fuel cell production from 10,000 to 200,000 units can deliver a 45% reduction in the cost per unit.
   4. As per a policy brief issued by TERI, demand for hydrogen in India is expected to increase 3-10 fold by 2050.
   5. With its policy intervention to support battery manufacturers by supplying lithium and cobalt, this industry is more likely to grow domestically to support India’s goal to switch to electric mobility. The Indian government is taking initiatives to take the front seat in electric mobility. This will be a long-term solution to clean our cities, build new markets, and skill people for new jobs towards an ‘Atmanirbhar Bharat’.