The HINDU Notes – 19th May - VISION

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Friday, May 19, 2017

The HINDU Notes – 19th May



💡 India’s first uterine transplant begins

Team of doctors in Pune conducts procedure on woman from Solapur

•A team of 12 doctors at the city’s Galaxy Care Laparoscopy Institute (GCLI) began the highly complex and delicate procedure of India’s first uterine transplant on a woman from Solapur district on Thursday.

•However, the operation, in which the uterus was retrieved from the donor and transplanted into the recipient around 9 a.m., stretched well beyond its projected eight-hour duration. The surgeons are retrieving the uterus using a laparoscopic technique. None of the doctors, including Dr. Shailesh Puntambekar, Medical Director, GCLI, who is heading the surgery, was available for comment on the operation at the time of going to press.

•The GCLI administration informed the media late in the evening that results would be known on Friday.

•The woman suffers from congenital absence of uterus since birth and is to be fitted with her mother’s womb to enable her to conceive normally.

•Earlier, Dr. Puntambekar said the recipient would remain in the ICU for a week and for a fortnight in the general care following the surgery.

More tests

•“During this period, the transplanted uterus will be studied,” he said. The immediate success of the surgery could be assessed after sonography studies which would determine whether the transplanted uterus was getting regular blood flow and functioning normally.

•The hospital, which has been granted a licence by the State Directorate of Health Services to carry out the uterus transplant, is scheduled to conduct another womb transplant on Friday on a 24-year-old woman from Baroda who suffers from Asherman’s Syndrome (scar tissue in the uterus) and who will receive her mother’s womb.

•Still in its nascent, experimental stage, only a handful of these operations have met with success in other countries, primarily in Sweden.

•The operations are meant to help women who want to conceive but cannot because they were born without a uterus, suffered damage to it or had to have it removed.

•The 20-odd uterine transplant operations round the world have often been frustrated by organ rejection (in which the patient’s immune system attacks the organ; an infection of the organ; or problems with the organ’s blood supply.)

Note of concern

•Some experts have expressed concern about the operations, terming them an invasive surgical procedure fraught with risks manifested in adverse side effects of the anti-rejection drugs, including cancer and increased risk of opportunistic infection.

💡 GST Council sets rates for most commodities

Six categories of items to be taken up today

•The Goods and Services (GST) Council on Thursday agreed on the fitment of almost all commodities in the various tax slabs under the new indirect regime to be rolled out on July 1.

•Milk, cereals (unpackaged and unbranded), and jaggery will be exempt from any GST, while sugar, tea, coffee (except instant), and edible oil will be taxed at 5%. Common use items such as soap, toothpaste, and hair oil, which currently attract a tax rate of 22-24%, will be taxed at 18%. Coal, which is currently taxed at 11.7%, will attract a GST rate of 5%.

•Consumer durables will come under the 28% tax bracket, down from the current 30-32% rate. Capital goods and industrial intermediaries will be taxed at 18%. According to sources, small petrol and diesel cars will be taxed at 28% with small petrol cars attracting a cess of 1% and small diesel cars 3%. Luxury cars will attract a 15% cess in addition to 28% GST. 350 cc bikes will attract a cess of 3%. However, the official said there would be no additional tax incidence on these goods from their current rate of taxation.

•“There are 1,211 items in the four digit code that exists now… fitment needs to be done for all,” Union Finance Minister Arun Jaitley said at a press conference following the first day of the meeting. “We discussed and approved these items today. There are six categories [of items] that need more discussion. These will be taken up tomorrow [Friday].”

‘Important measure’

•Stressing that no commodity would witness an increase in taxation, Mr. Jaitley said this was an important step towards rollout of GST from July 1.

•The six categories to be discussed include bidis/cigarettes, footwear, gold, and agriculture implements. Tax rates on services will also be part of the agenda on Friday.

•Mr. Jaitley said that in case the Council is unable to complete discussions, it might decide to meet again in the “near future.”

•Mr. Jaitley said that despite the reduction in tax of some commodities, efficiency in administration will help curb evasion and increase tax buoyancy, leading to improved revenue collection.

•Revenue Secretary Hasmukh Adhia said that of the over 1,200 items to be considered under GST, 7% have been put under the exempt list.

💡 Ending nuclear dependency


The government’s go-ahead to 10 indigenous reactors is a timely step towards nuclear energy self-sufficiency

•India now has 22 nuclear power units. The first pair, located in Tarapur, Maharashtra, uses enriched uranium and incorporates U.S. nuclear technology. These two reactors have operated safely and reliably for the past 47 years and supply the lowest cost non-hydro power. The second pair, located in Rajasthan, uses natural uranium and is based on Canadian technology.

•The first unit of this pair has been out of service for some years due to deficiencies in some key equipment; the second unit has been operating satisfactorily. Commencing from 1983 and over a span of two and a half decades, India built 16 nuclear power units using its own technology, materials and equipment. These reactors use natural uranium as fuel. Fourteen of them have a size of 220 MW and two are of 540 MW.

Nuclear push in the 2000s

•During the period 2000-2010, India designed a nuclear power unit of 700 MW capacity, using natural uranium. Construction work on two such units in Kakrapar (in Gujarat) and two in Rajasthan was taken up. These four units will go into operation in the next three years. Work on two similar units has been taken up at a site in Haryana.

•All equipment and materials for these larger units will come from Indian suppliers. In recent years, two 1000 MW VVER power units have come up in Kudankulam, Tamil Nadu, using Russian technology. They use enriched uranium supplied by Russia. In 2016, work on two more such units was commenced. When all these units go into operation, India will have 30 reactors with a capacity of 13,000 MW. By then some of the earlier units will be reaching their retirement age.

•In the period 2005-2008, the Indian nuclear establishment was focussed on concluding the civil nuclear cooperation agreement with the U.S. India then agreed to build about 10,000 MW of nuclear capacity using U.S. technology. A similar assurance was given to France. Russia and India agreed to install additional units at Kudankulam. The expectation in 2008 was that a rapid increase in Indian nuclear capacity would take place. During 2010-2011, India passed the civil nuclear liability legislation which made a supplier liable for claims under certain circumstances. The U.S. nuclear industry was not prepared to consider any cooperation with India under this condition. In 2016, India came up with the mechanism of an Indian insurance pool that could extend protection to the supplier.

•The Fukushima accident of 2011 jolted the nuclear industry globally and the first priority was assessment of safety of nuclear plants in operation all over the world under what was termed as ‘Beyond Design Basis’ natural events. An unconnected development in the U.S. impacted a nuclear revival there: the availability of shale gas at low prices, in the range of $2.50 to $3 per million BTU. In consequence, General Electric de-emphasised the prospects of nuclear energy. Westinghouse designed a 1400 MW enriched uranium reactor (AP1000) complying with the current safety requirements. It managed to get Chinese utilities to build four such units at two sites and they are in an advanced stage of execution.

•Westinghouse also secured orders to build four AP1000 reactors in the southern U.S., at two utilities. Unfortunately, these projects suffered great delays and huge cost overruns. Toshiba of Japan, a major owner of Westinghouse, incurred $7-8 billion in losses due to the nuclear business in the U.S. and is considering selling its successful chip business to accommodate this loss. Westinghouse has filed for bankruptcy and the future of the four nuclear power units under construction in the U.S. is highly uncertain.

Project delays aplenty

•Westinghouse representatives discussing their proposal with Nuclear Power Corporation of India Limited (NPCIL) for setting up six AP1000 reactors in Kovvada, Andhra Pradesh, have said that the new ownership would get sorted out, perhaps within a year or so, and they would continue to be seriously interested in the India project. The U.S. government might facilitate a new owner acceptable to it, and the nuclear business may resume in some modified manner. From an Indian perspective, delays in this project are inevitable and the outcome would be uncertain.

•India has been in discussions with Areva of France on building six EPR reactors of 1600 MW at Jaitapur, Maharashtra. The first such reactor in Finland has been greatly delayed and may go into operation in 2018. There is a pending arbitration case between Finland and France regarding who is to bear the resulting cost increases. A second EPR is under construction in Flammanville, France and that has also suffered delays due to questions regarding the quality of important forgings. Two EPRs in China were making good progress earlier but they also have to address the question of quality of some forgings made in France. Quite independently of these problems, Areva suffered heavy losses post-Fukushima when the uranium market bottomed. Japan, a big buyer of uranium, went out of the market as most of their reactors were shut down in 2011. Only a few have been allowed to restart. The French government has restructured the nuclear business and asked the Electricite de France to take over the nuclear power plant business and let only the fuel and associated activities to be with Areva.

Make in India

•Anticipating some of these difficulties, the nuclear community in India has been looking at other options to expand the nuclear capacity. The fleet of pressurised heavy water reactors (PHWR), of our own design and construction, have performed well. During the last five years, the cumulative capacity factor has been 78%. The reactors have operated continuously for periods exceeding 300 days quite regularly and one of our reactors was on line for 765 days, the second-longest run in the world. The cost of power has been less than from coal in the same region. Given the context, the Union Cabinet’s nod on Wednesday for 10 700 MW PHWRs is timely. Indian industry is well placed to supply all the components and materials required for these reactors. Russia is willing to supply two more 1000 MW VVER units for Kudankulam and continue the cooperation to build six 1200 MW VVERs at a second site, to be identified by India.

•Our reactor designers at Bhabha Atomic Research Centre and NPCIL have completed the design of a 900 MW reactor using enriched uranium as fuel, designated as the Indian Pressurised Water Reactor (IPWR). Our industry is keen to mobilise and build up the capacity to make components for this design. Enriched uranium fuel can be sourced from international suppliers, as such reactors can be placed under International Atomic Energy Agency safeguards.

•By about 2025 or so, India may itself supply enriched uranium from its own enrichment facilities. The government’s push for 10 IPWRs will secure India a position of nuclear power plant supplier not only for application in India, but also as a potential exporter. While our earlier plans on expanding nuclear power have not materialised, the alternative plan suggested now, which envisages building 28 units with a total capacity of about 25,000 MW in 15 years from now, can still ensure that nuclear power remains an important part of our strategy to minimise carbon emissions in the long run.

💡 Where the jobs are

Public spending and economic policy need to be more attuned to employment creation

•News reports over the last few weeks suggest that the Central government may finally be starting to think seriously about jobs. Chief Economic Adviser Arvind Subramaniam recently pointed to the need to achieve higher economic growth, in the range of 8% to 10%, to solve the problem of jobless growth. In particular, he flagged the underperformance of the information technology, construction and agricultural sectors, which earlier served as huge job-creators for the economy. It is worth noting that India added just 1.35 lakh jobs in eight labour-intensive sectors in 2015, compared to the 9.3 lakh jobs that were created in 2011, according to Labour Bureau figures. The rate of unemployment grew steadily from 3.8% in 2011-12 to 5% in 2015-16. Union Labour and Employment Minister Bandaru Dattatreya has downplayed the gloomy job situation as being a temporary one. His focus instead is on the new National Employment Policy which, he says, would be released later this year and focus on shifting jobs from the informal to the formal sector. NITI Aayog too has dismissed concerns over jobless growth, saying the real problem is underemployment rather than unemployment. Nevertheless, this month the government set up a high-level task force headed by NITI Aayog Vice-Chairman Arvind Panagariya to obtain reliable data on employment trends to aid policymaking.

•The focus on jobs is obviously vital. However, higher economic growth alone will not solve the jobs problem. Jobs can be created when growth comes from the transition of labour from informal sectors like agriculture to the more formal manufacturing and service sectors. Such extensive growth, however, runs the risk of stagnation once the available stock of informal labour is exhausted — as some Southeast Asian countries found out the hard way in the late 1990s. On the other hand, growth can come about without any substantial job-creation in the formal sectors of the economy, but through improvements in productivity. The growth record of several developed economies even after the modernisation of their labour force explains such intensive growth. India should aim at growth that is driven both by improvements in productivity and modernisation of its labour force — especially since better jobs are crucial to improving the lives of millions who are employed, indeed underemployed, in low-paying jobs in the farm sector. Ironically, achieving both those objectives will first require labour reforms — ones that can both boost labour mobility within the formal sector and bring down the barriers businesses face in hiring labour. But incremental labour reforms alone won’t work unless these are combined with a step-up in government spending on asset and job-creating areas such as infrastructure, which in turn inspires private investment. Job-creation needs to be an essential axis along which economic and social policies are formulated.

💡 India aims to boost trade ties with African nations

African Development Bank meet to be held in Gujarat

•India has extended credit totalling $7.6 billion to African nations and aims to use the upcoming annual meeting of the African Development Bank in Gujarat this month to strengthen its trade ties with the continent.

•As on March 31, 2017, India has extended 152 lines of credit to 44 African nations amounting to $7.6 billion, Economic Affairs Secretary Shaktikanta Das said. The meeting will take place on May 22-26 in Gandhinagar, Gujarat.

•Prime Minister Narendra Modi, who will inaugurate the meeting, had in the India-Africa Summit committed a $10 billion line of credit to African nations.

•The African Development Bank (AfDB) has 81 member countries, 57 of which are from Africa. India is among the other 24 non-regional members.

•Indian companies have invested $72 billion in African nations as of 2014-15, Mr. Das added, saying that this made up 20% of the total investment in those countries.