Daily Current Affairs Analysis | 09th September, 2026 | Shankar IAS Academy | UPSC | Mains 2026
Watch on YouTubeVideo summary
The Cell Broadcast System (CBS), an indigenous emergency alert mechanism administered by C-DOT under the Ministry of Communications, functions as a critical early warning tool designed to mitigate damages during natural disasters such as earthquakes, cyclones, and floods. This system operates through a structured process where alerts issued by departments like the Meteorological Department are verified for genuineness before being routed to telecom operators to broadcast messages to all mobile phones within a specific geographic area without collecting individual numbers, thereby preserving user privacy. While CBS supports both automated alerts for rapid events and human-controlled alerts for slower-moving disasters, its strategic importance is underscored by government management rather than private involvement, a stance upheld even against challenges from foreign entities. However, the system faces limitations including dependence on telecom networks, potential for false alarms causing panic, delays in human-intervention scenarios, and the risk of users ignoring alerts, alongside concerns regarding digital Awaala systems highlighted in recent FATF reports which warn that digitizing informal underground money transfer networks using virtual assets can facilitate cross-border illicit activities like terror financing by making transactions faster and harder to trace.
In the realm of environmental policy and international trade, India launched the Carbon Credit Trading Scheme (CCTS) in 2023 under the Energy Conservation Act to manage CO2 emissions through a "Cap and Trade" mechanism where industries below their emission limits can sell credits to those exceeding them. This initiative includes mandatory compliance for heavy industries like steel and cement, as well as voluntary offsets for sectors such as agriculture, and has gained significant international traction with the UK recognizing India's CCTS as a qualifying overseas carbon pricing scheme. This recognition exempts Indian exporters from additional duties under the UK's Carbon Border Adjustment Mechanism (CBAM), which is set to operate from 2027, thereby preventing double payment for carbon credits and enhancing the competitiveness of Indian exports in both the UK and EU markets. Concurrently, the energy sector is grappling with the volatility of LPG prices, where commercial cylinders have seen significant fluctuations since February 2026 due to global crises and rising import costs, leading Oil Marketing Companies (OMCs) to offset domestic losses by increasing commercial prices while maintaining stable rates for domestic households to avoid political backlash and inflationary pressure.
Recent developments in energy logistics and governance further illustrate the complex interplay between fiscal management and strategic planning, as OMCs have shifted their reliance on LPG imports from the UAE to the USA following a 45% year-on-year drop in imports since April, while ramping up domestic production capacity from 34,000 million tons to a planned 63,000 million tons to mitigate fiscal stress. The way forward for the energy sector involves transparent market-linked pricing, targeted subsidies via DBT/PMUY, diversifying import sources, and expanding strategic reserves held in locations like Mangaluru and Visakhapatnam, even as industrial piped gas sales grow as an alternative fuel source. On the administrative front, D.K. Sharma has been appointed as the Lieutenant Governor of the Andaman and Nicobar Islands, a role that differs from other Union Territories by sharing executive powers with elected representatives under Article 239A, which grants special provisions regarding police, public order, and land laws for regions like Delhi. These appointments and policy shifts are complemented by significant global milestones, including Russia's flagship Arctic oil project on the Timan Peninsula aiming to produce billions of tons of oil via a deep-buried pipeline, and ongoing geological activity in Indonesia where the Anak Krakatau volcano continues to pose tsunami risks following its 2018 collapse.
Read the full video transcript
[music]
Hi hello welcome to Shankar Academyy's
daily current affair analysis for the
date 9th of September. If you are liking
our current affair analysis daily please
like comment share and subscribe our
YouTube channel and also have the bell
icon press for instant notification and
better current affair analysis served to
you. So what are the topics for
discussion today? So the first topic is
cell broadcast system. So what is cell
broadcast system? So cell broadcast
system is actually a system developed by
C dot or administered by C dot. C dot is
C dot is center for development of
center for development of
telematics.
Okay. Comes under ministry of
communication. So what is C dot is
actually doing in CBS? So CBS is an
emergency response system. So whenever
there is an emergency whenever there's
an exency like lightning, earthquake,
cyclone. So this system is actually
going to alert the people through the
telecom providers like air goes. So
whenever the alert message is given by
certain uh departments like materology
department, cmology department, they are
going to send the alert system to the
CBS. CBS is maintained by C dot and this
CBS after seeing the alert system they
are going to see whether it is genuine
or not and once it is genuine they're
going to pass it to the telecom
operators and they are going to send it
to the customers throughout the
coverage. It is beyond it is not going
to take away the personal information
and only serve to certain people but it
is going to cover the
geography or cover the district entirely
and uh it is going to have it is going
to support this early warning system of
India. So that is about CBS. We are
going to have a brief discussion on that
and also the next is FATF. FATF is
financial action task force. So what
they have actually reported on this
digital aala. So we'll see what is
traditional aala, how traditional aala
functions and what is digital aala, how
it is actually bolstering the
traditional aala and how it is a concern
for terror financing.
Okay. So we'll see how it is a concern
for terror financing and what can be the
steps taken to mitigate it. So that will
be the discussion in the second topic
and our next topic will be on carbon
credit trading scheme that is CCTS. So
carbon credit trading scheme. So this
scheme is actually uh brought by India
in 2023
under energy conservation act. So under
energy conservation act we brought this
scheme into picture which is a carbon
market scheme for India and recently
United Kingdoms have actually recognized
the scheme in India. So we'll see what
are the benefits by after by
this recognition we'll we'll also see
what what can be it have an implication
on CBAM that is carbon border adjustment
mechanism which was introduced by EU and
UK it is believed to be come into
operation from 2027 so we will see how
this recognition is going to impact our
CBIM what are the industries which is
going to directly get benefited through
And also we'll have a practice question
related to that topic. And our next
topic will be related to commercial
price hike of LPG. So it is more or less
a mains related discussion. So we will
see what why is the reason for the
frequent and commercial LPG hike. Why
the domestic LPG
LPG consumers are left without
disturbing. Why are the what are the
OMC's? What are the difficulties faced
by this OMC's in present west crisis and
why there is how there is a balance? Why
and also how this balance between this
commercial LPG Ike and also keeping the
domestic prices of this cylinder same
getting not disturbed. So that kind of
discussion will be present over there.
So there will be two arguments and also
we'll have a balanced mains practice
question related to that topic and
finally we will end discussion with
films focus. We will have three brief
topics. One is related to this oil
project in Russia. Then there is a
volcano in Indonesia and also lieutenant
governor newly appointed for andamaran
nikovar islands. So that will be the
discussion in films focus. Let's move
ahead. So let's discuss the first topic
for the day which is cell broadcast
system. So why this is in news? Because
there are many emergency situation which
are occurring now and then in India and
also in other countries but this is
specific to India. The self broadcast
system is actually an emergency alert
system. So how this works? what are its
functions and uh what are the things
that are present within the system and
who is responsible for this uh cell
broadcasting system will be discussed in
this article and we'll also have a
question practice question related to
this topic. So moving ahead. So what is
cell broadcast system? So cell broadcast
system is an emergency communication
technology means so what happens is
let's say there is an earthquake or
let's say there's a flood.
So whenever there is an emergency kind
of situation this cell uh this cell
broadcast system what it does is it is
going to send you the message it is
going to alert you saying that it is
going to alert the citizens or the
people around in that area saying that
there is an risk of staying here so you
have to move to certain places. So it is
an early warning system kind of
mechanism. So it's early warning
for m early warning system
to mitigate the damages. So any of the
any of the if there is an emergency
there's going to be some damages but if
there is some early warning or if there
is some alert system present in the
specific location then the uh damages
can be minimized. So this silver
broadcast system is an emergency
communication technology allowing
authorities to send disaster alerts
simultaneous to thousands or millions of
people within the geographic area. It
can be within the district or for the
whole country itself. That is the
objective of that is the function of
cell broadcast systems. How it works?
You say in step one what happens? There
is act there is alert. Alert may be
given by uh center of seismology
when there is earthquake or metological
department
when there is some cyclone kind of
effect.
So any department is every department is
linked here and they're going to they're
going to initiate this alert system. So
this allow system then comes to the cell
broadcasting entity that is CVE.
So this cell broadcasting entity is
managed by C dot.
So C dot is an uh R&D organization. It's
a government R&D organization that is
center for development of telematics
that is center for development of
telecommunication under the ministry of
communication.
So it is under the ministry of
communication
which is an R&D department which is an
R&D uh organization which is going to
support this communication
infrastructure. Basically C do is the
one which supports the BSNL also for
BSNL 4G or 5G. C dot is the one which is
going to give that architecture. So they
play critical role in telecommunication
in India. So this CB that is cell
broadcasting entity is managed by C dot
who is going to gather that information
from these departments who going to give
the alert systems alerts and they are
going to verify whether the alerts are
okay whether the alerts are genuine once
they verified it they send it to the
telephone broadcasters that is
telerocasters like Airtel Jio whoever it
is they're going to send it to all and
from there it is going to come to our
mobile phones or smartphones so it is
irrespective of the people irrespective
of the company who's handling this
broadcasting center. It is going to send
it to everyone. So specifically it is
not going to set send to certain mobile
number nothing like that. It's going to
send to everyone who was present in that
coverage. So they're not going to
collect your phone number. Phone number
is all not collected. So the privacy is
all maintained. So nothing is like only
for certain phone numbers or certain
models of phone that you get alert. But
it is for everybody. So these are the
four steps broadly that has been
followed in this communication system
and how does the CB CBS work as I
discussed. So first there's s data then
it goes to the detecting system and
finally the CBS platform which is
maintained by C dot
and it goes to telecom network like zio
waterphone whatever it is then it comes
to the nearby mobile phones that how it
works and what can what are the disaster
that can be detected if you see the
message is first alerted by departments
like meloical departments for cyclones
or heavy rain or for seismology center
for seismology for earthquakes. So there
are different other departments who are
going to alert the u specific disaster
that is present in a certain
geographical area and data reaches the
CBS system and CS cox the one who is
going to operate this CBS platform and
it is a completely indigenous system and
area identified it can be within a
country within a state or even the
district. So that is how CBS works and
alert is broadcasted to through the
telecom operators like Aeljo whoever it
is and if you see the users receive the
alert it appears prominently on
smartphones and even even on kead phones
and it doesn't collect any uh specific
privacy information like your phone
number.
So these are all not collected. So that
is how the CBS works and
we can say what what what CBS is more
special because whenever there is an
alert system whenever there's an
emergency response that you need to send
it to people so it can be either
automated alert or human control alert
because why it is automated because
there are certain dis which is very
which can be dynamic which can happen
within seconds like example uh gas
leaks, earthquakes, lightning these can
be happening within seconds. So
automated alerts are also present in CBS
network and also human control alerts
for human control alerts like floods
whenever there's floods happening in
certain area it is going to carry on to
the next part of area so they can be
alert human controlled alerts so for
floods for cyclones these kind of thing
there can be human control also so both
are present within this system that is
why it is making it is made it is being
considered special and it is also fully
indigenous
major advantages as I said rapid alerts
within quick location specific, it can
be within the uh within some geography
of the district itself. So that can be
location specific automated response is
present and also wide coverage. So even
you can al you can based on the need you
can actually customize the coverage and
disaster preparedness is increased
because early warning system is more
strengthened. So even you detect this uh
disaster that is an if you detect
semismologically
you can detect earthquakes there are
certain things which can where using
which you can detect tsunami. So even
though those early warning systems are
present you you should also um alert the
people. So that is also part of early
warning. So that is that is why this
department uh disaster preparedness is
improved by this CBS system. limitations
if you see network dependence it is
dependent on the telephone telecom
operators like ATLG or other private
players. So network dependence is still
present because you have to root it via
them and limited user attention the even
though the alerts are sent people might
ignore because they might not be alert
every people everyone will not be say on
the same page of alert.
limited user attention is still present
and technical complexity because
automated response, human control
response these are all have some
technical integrities in it. So there is
technical complexity as well and false
alerts is is a important uh uh problem
because if say let's say you are going
to say tomorrow just in 10 seconds
you're going to have an earthquake. So
people will panic they'll move here and
there and it creates chaos in that
specific location. So this false alerts
is the important thing which is actually
limiting its usage and human
intervention whenever if you say there's
human interventions like for cyclone or
heavy rain you need human intervention
now and then to send that alert. So some
disasters still depend on authorities.
So potentially causing delays because
people the human uh the person who is
handling it will not be very much time
specific. He might have some he or she
might have some other problem. So human
interference is still present in the
system and uh that is also considered as
a limitation. So having said this why
the CBS was actually used because the
CBS is actually managed by C dot right C
dot what I said it is a center for
development of telematics which is
governmentowned R&D organization. So
recently a German company called UTMO
has challenged saying that why the CBS
system has been given to C dot why not
to private players. Government has
argued that it is strategically
important for India. So it is should be
maintained only by the government
organization. Then Delhi IO actually
acknowledged the government's argument
and saying that yes it is strategically
important and CB should be under C dot.
So that's why it came under it's under
our uh discussion and it is also in the
news today. So that is all about this
topic. We'll have a question related to
this with reference to India's cell
broadcasting system. Consider the
following statements. It can decimate
emergency alerts to a large number of
mobile users within a specific
geographical area. That is actually two
large number of mobile phones users
still possible. Even the small number of
mobile phone uses still possible. So
first statement is correct. It requires
authorities to have the individual's
mobile numbers for all recipients. No,
they are not going to collect your
mobile numbers. They're not going to
collect your information. they're going
to just transmit the data for all the
people within that coverage. So this
statement two is incorrect. Statement
three, the CBS is implemented by center
of development of telematics which is C
dot under Ministry of Communication as I
said. So third statement is correct. So
one and three are correct. So option
should be C. Let's say yes the option is
C. That's all about this topic. Now
let's move on and see the next topic
which is financial action task force
report on digital aala. So here if you
see digital aala is a new term which is
being coined by this financial action
task force. It is nothing but a
traditional aala which is being
digitally uh integrated so that this
traditional system is still being
present and also bolstered by this
digital mechanisms. So we'll see what is
this report about why it is highlighting
this digital aala that is how it is
linked to this terror financing and what
are the concerns raised by FATF.
So why it is in news? FDF report you no
need to remember the report name but
just for understanding it is
investigating professional money
laundering underground banking and the
use of Aala and other similar services
providers that is it's a big name for
the report you don't need to remember
the report name is this just to for your
understanding it is highlighting the
growing integration of virtual assets
virtual assets like stable coins
cryptos
So these kind of assets are are actually
getting traditionally integrated or
integrated with traditional aala system.
So we'll understand what is traditional
aala system so that you you'll have
better understanding how this digital
aala is being functioned. Nearly 70%age
of the survey jurisdictions reported
such technological integrations. So that
is critical because 70%age is too much
and this is going to actually impact the
terror. It is going to actually impact
the terror financing. How it is uh
enabling this underground networks like
illegal networks like
illegal networks like terror networks
and also drug networks
functioning cross border. So we'll
understand what is halala first.
So
aala
so you would have seen in India that in
many places businessmans usually
transfer they actually transfer money to
certain people kind of a middleman who
then send it to the another guy. So
let's say for example you are in Chennai
and you are actually buying something
from let's say Gujarat.
So the seller is in Gujarat and you are
in Chennai. Okay. So when you buy the
goods from Gujarat to sell it in
Chennai, you need to pay this person in
Gujarat. Okay. So you need to either
transfer it through bank or you you need
to either transfer it to some uh legal
system. But what you do is because you
you actually buy a lot by means your
amount that is you buy around let's say
around 2 crores let's say you buy lot of
things you buy for a lot of amount you
actually want to evade the tax you don't
want to show that amount in the tax you
don't want to show the transaction to
the government so what you do is you
don't transfer this 2 cror to this
person in Gujarat instead you you give
some money that let's say 2 cr and
50,000 rupees
let's say the 50,000 in extra so you
give this money to the person in Chennai
a middleman in Chennai and that person
is actually and responsible to send the
money to Gujarat or he as a person in
Gujarat. So that middleman as a person
in Gujarat who then pays it to the
respected seller. So this middleman in
both in Chennai and in Gujarat are
actually the traditional a part of the
traditional aala system. So what you do
is you pay 2 cr and 50,000 and this 2 cr
50,000 is is actually the person the
middleman in Chennai gets it he doesn't
pay to the gujarat seller what he does
instead of him there is other other
person who sits in Gujarat he's also a
middleman there and he pays to the
seller because after he gets this money
in Chennai he pays he settles in Gujarat
so the transaction is actually not
coming under any books so it is actually
completely underground and it is not it
is completely informal So that is
informal money transfer system where
money is transferred through network of
brokers. So network of brokers as I said
one sitting in Chennai this is the money
from you and instead of him paying to
the Gujarat seller what he does is there
is another person in Gujarat who's going
to send the 2 cr to me 2 cr to this
Gujarat seller and the remaining 50,000
is what their profit the network the
brokers get the profit that is an that
they actually fix the percentage so that
is depends on the aas who actually
operate. So this network of brokers
based on trust and settlement between
intermediates often without conventional
banking channels. So you understood
right? So this is how this aala is going
to function. This is how the awala is
functioning even today in India in other
parts of world too. Now this is
traditional aala. What if it becomes
digital aala means you are going to send
this cash 2 cr 50,000 to the person in
Chennai a middleman in Chennai but
instead of that you have a separate
network separate digital network
specifically for aala transaction and in
the digital network you transfer this 2
cr and 50,000 to that person and from
the person who sitting in Gujarat the
aala person sitting in Gujarat is going
to pay to the seller that is Gujarat
seller so this is actually happening in
traditional it is actually happening in
digital way But the concept is still
traditional. So this underground network
that is underground digital network
underground digital aala
is a concern because here it is used for
business. In India it you can argue that
it is used for business. Still it is
illegal but is used for business but in
if it is cross border it can be used for
terror financing and drug drug
trafficking. So these kind of problems
are actually identified by FATF. So it
can be legitimate in some context but
its anomality and informal nature can
also be exploited for money laundering
and terror financing. So that is where
the concern. So it though it is used for
legitimate in some context like for
business or even for other emergencies
but this is actually an illegal system
which is informal and underground. So we
understood what is avalanche. We will
understand what is FATF2. So FATF is a
global watchdog for moneyaundering,
tariff financing and proliferation
financing. is whenever there is an
terror financing or even moneyaundering
activities that is happening. So FAF is
going to actually monitor it and and it
is going to put them in it is going to
grade them in list like gray list,
blacklist. So different list which are
maintained by FADF whenever they put
those specific countries in the specific
bucket of list the the specific
countries will not be able to get money
from the institutions like IMF, World
Bank. So there are many legal
constraints for them in the world
market. So that is the importance of
FATF which is going to monitor this
terror financing. It is established in
1989 by G7 countries. G7 you need to
know what are those? Canada,
UK, US, German, France, Japan
1 2 3 4 5 6 and Italy.
Okay. So these are seven countries who
are G7 called as G7 and the headquarters
is in Paris that is in France. So the
global standards they said 40 FATF
recommendation for anti-money laundering
and actual as well as against finance
that is financial terrorism that is
finance for terrorism. So against money
laundering and also against financial
activities for terrorism. So they
monitor evaluate countries complications
through mutual evaluation. There is
mutual evaluation and they also put them
in gray list and blacklist. Let's say in
blacklist today Iran is in blacklist,
Myanmar is in blacklist. So these
countries will actually face huge
problems in actually getting money or
getting support from international
institutions like IMF or World Bank. So
that is the importance of FDF and grrey
list as I said blacklist which is
high-risk jurisdictions requiring
enhanced diligence and counter measures.
So blacklist is very critical. The
countries are very critical and also
morally exploited through this money
laundering and they actually uh in this
report they say that their new financial
crime methods including digital aala
virtual assets and cryptocurrency based
illicit finances is actually making the
things complex making the moneyaundering
tracking of moneyaundering is becoming
complex because of these measures. So we
saw what is aala we saw what is
effective and we see what is digital a
digital digital aala is digitalizing the
word traditional aala that's it. So
digital aas refers to use of digital
technology and virtual assets. So I said
the cash was been transferred from the
Chennai person to the Chennai aala
person mean I am the buyer in Chennai
who is going to give the awala money to
the person in middleman in the chennai
and he's going to he's going to intimate
the person in Gujarat and the gujarat
aala person that is broker is going to
pay to the gujarat seller. So but here
everything is happening digitally. So
virtual assets like stable coins,
cryptocurrencies are used for the
transaction not cash. So that is
becoming very tough to actually trace
back. It does not necessarily replace
traditional aala. Instead technology
makes system faster, difficult and to
trace that is and operating across cross
border. So the concept is still same.
The concept is still the traditional
aala system but it is happening in
digital mode and and it is also again
cross border which is creating lot of
issues. So six forms of digital aala was
identified by fdf in this report. The
first form is digital coordination. So
encrypted apps and digital ledgers
coordinate this digital ledgers means
whatever the transaction that is
happening they note it down in
traditional what they noted down
physically in papers and notebooks. But
in digital whenever there's encrypted
apps and digital ledgers being been
followed so it becomes more robust. So
there digital coordination digital
customer interface has been present
because there are mobile wallets and
fintech apps to facilitate such
transactions and virtual assert
settlement as I said stable coins
cryptocurrencies and other coins have
been used for the settlement not the
cash and formal digital infrastructure.
So this traditional system is being
built in a digital mode. So digital
infrastructure mode starting from
payment providers. So payment providers
now and say now and then we say uh many
payment providers. So they are
specifically now for Avala. There are
they are there are payment providers
which are specifically for Avala
transaction fintech platforms and
virtual networks for fund transfers. So
this is all creating a a huge issue
because whenever it goes digital
whenever it goes encrypted encrypted
means only the person who is going to
receive the message as the key to open
the message. So whenever there's
encryption whenever there is this
digital infrastructure these are all
becoming very difficult to
trace it back and also to cut it down.
AI based tools are actually also used
for crypto conversion and other things
and aala apps are being developed.
So these are six forms of which digital
digital aala is being proliferated
as identified by fatf. So okay now why
it is a concern. Now we understood what
is aala what is digital aala how it is
functioning but why it is a concern
because now it is becoming faster.
Earlier the digital aala used to take
time sorry the traditional aala used to
take time but now everything is
happening digitally so it is faster and
more opaque because multiple digital
layers can be present there is this
digital infrastructure is becoming
robust so it is becoming more opaque to
the outsiders
or even the regulators. So it is
becoming more opaque and more complex
because when you integrate virtual
assets so such things are becoming more
complex. So we we don't know who's who's
transferring money to whom. So such
things are becoming more complex and
also more resilient and transnational.
So transnational is where the important
aspect highlighted by Fier because when
becoming transnational is more prone to
terror financing and also this drug
trafficking. So such technologies or
such things are becoming becoming more
widely seen and as seen in
Turkey case. FATF has highlighted this
Turkey case. In Turkey case what happens
there is there are there were jewelers
and phone mobile phone shops which are
which were acting as these aala brokers.
So these were all actually are genuine
traditional or sorry genuine
operators or let's say genuine
businessman present in the society
present now and then and they are
actually involved in such kind of
activities and FATF actually sees cash
aala records and digital transfer
receipts from them. This demonstrate
that how legitimate business these
business are legitimate. Today you see
more jelling companies more mobile shop
operators in present in our nearby
location itself. When these people are
actually more operating in such intent
on or actually in the network of digital
aala it is going to create problem for
the regulators because they don't know
who is going to use for what concern
itself. So this misuse is actually a
major problem for terrorist financing
and also other illegal activities cited
by FATF. So that's all you need to
understand. You need to understand what
is FATF, what is AALA, how it is
functioning, what is digital AVA, why it
is a concern and also a case study that
we saw from this Turkey. So there's a
question related to FATF. So with
reference to FATF consider the following
statements. FATF was established 1989
correct by G7 countries. headquarter
that is HQ is in Paris
as a super super national authority body
to combat money laundering and terrorist
financing. It is not super nation. Super
nations is like something like UN body
which is actually super national. So it
is actually regulating all the nations
and beyond beyond intergovernmental
operations but FAF is intergovernmental
that is understanding between different
governments that is understanding
between different states.
So it is intergovernmental so it is not
super national authority. So it is
incorrect. Countries placed under
increased monitoring are commonly
referred to as being on the FATF gray
list. is increased monitoring are
actually depend or actually classified
as grrey list and also there's black
list who are actually having more severe
uh restrictions for their international
engagements. So second statement is
correct. FATF directly directly imposes
criminal penalties on countries that
fail to comply with its recommendation.
So it is not it cannot directly impose
because it is not super national
authority. It is just a
intergovernmental organization. So it
can only recommend certain things and it
is up to the country to follow it. So it
is not it cannot actually directly
impose any criminal penalties. So
statement three is also incorrect. So
only statement two is correct. So answer
should be only one as they have asked
how many statements are correct. So
let's check
yes the answer is one only. So moving
ahead the next topic is India's carbon
credit trading scheme is actually
acknowledged by UK. So we will see what
this scheme is. what is India's CCTS and
also how this CBM or UK's CVM is getting
recognizing this CCTS and what are the
benefits for India by recognition by uh
UK and also we will see a practice
question related to this CCTS
so first of all you should understand
that UK has recognized India's CCTS CCTS
is carbon credit trading scheme so UK is
not under U EU now
So just for the reference we are going
to have this uh discussion in this
article. So UK is not under EU. Now UK
has recognized India's CCTS which is
actually a qualifying overseas carbon
pricing scheme. So this recognition
applies under the UK's carbon border
adjustment mechanism. So we we have
discussed many things about this CBIM.
So CBIM is also
something related to this carbon taxing.
So where EU that is European Union
and UK is going to implement the CBIM
from 2027 January. Okay. So we'll also
see what is the CBIM. So by recognizing
the CCTS by UK, what are the benefits
for India and also what can be the U
international
compliance
using by by international compliance
that is followed by India by having this
CCTS.
So what is CCTS? CCTS is India's
framework for pricing and reducing
greenhouse gas emissions. So basically
there are there can be uh there are it
is a carbon market basically. So this
carbon market is functioning based on
cap and trade principle. Cap and trade
principle. What is this cap and trade
principle? So whenever you are emitter
let's say you have an industry and
you're going to emit some carbon
dioxide. Equivalence of carbon dioxide.
It is calculated the equivalence of
carbon dioxide. Equivalence of CO2 that
is in tons.
Okay. You might you might actually emit
different gases CO2, CO, ozone, SO2,
NO2. You might emit any gases. But it is
all calculated in the equivalence of
carbon dioxide. There is an there is a
mechanism to have this coming under
equivalence of carbon dioxide. So we
don't need to go into that intricacies.
We'll just stick on with equalence of
carbon dioxide in tons. So whenever you
are an emitter, let's say you an emitter
A and emitter, there are two emitters.
So you can see here there are two
emitters emitter 2 and emitter one.
Okay. When emitter two and for emitter
one there are there are certain
standards there are certain levels.
Okay. This level say for emitter 2 the
level set by government is that only
three tons of CO2. Three equivalent tons
of CO2 you should release by production.
Means your company, your industry should
release only three tons of carbon
dioxide equivalent. That is a that is a
standard or that is a cap set by the
government. For E1, let's say there is
similar cap set by government 3 tons.
Okay,
three tons of CO2. But what happens this
E2 when it is when it is actually going
under it operation when it is
manufacturing it is emitting only two
tons. Okay. So it is well within the
limit and it is also having an extra 110
which it can release extra 110
equivalence of carbon dioxide but even
what it does through it operation it has
released 4/10
410 of CO2 so it has got 110 increased
so it is going be beyond the limit so
what E1 should do is it has to buy the
110 of that 1 T of equalence of carbon
dioxide from E2 so it is going to trade
it is going to trade is carbon
emissions.
So that is what is cap and trade because
what is cap? The government is going to
set a cap that is only 310 of
equivalence of CO2 is released only 10
of equivalent of CO2 should be used to
release that is based on the industries
based on the industries like cement,
steel whatever the industry it is based
on the industries and when the cap is
being breached so that those industries
should actually buy the carbon
equivalent from the other other emitters
who are actually emitting less. That is
where this mechanism, this market comes
in which we call as carbon market under
the principle of Paris agreement.
Paris agreement as actually Kyoto
agreement
these are all actually alluded through
to this carbon markets and India has
actually framed its own carbon market
called as CCTS. Okay. So you can see
here this emitter 2 is actually emitting
less. It it has some spare credits which
it can sell. So it is selling it in the
carbon market and this emitter one which
has actually excess emission is going to
purchase this carbon market so that
there is a stability. So this mechanism
is actually now recognized by UK. So
what happens when UK is going to
recognize? So you should also you should
also first understand it come it is come
it is what are the legal backing of this
CCTS before we also understand this CBM.
Okay.
So yeah
so CCTS is coming under that is it is
established under the energy
conservation act 2001. So energy
conservation act 2001 was amended to
include this CCTS in 2023. So it is
legally backed by energy conservation
act and the administrator of this is
bureau of energy efficiency. So you need
to understand which act it is coming
under who is the implementer and the
ministry. The ministry is ministry of
power.
So bureau of energy comes under ministry
of power. So these three things are very
much important factually you need to
understand and the objective is to
create a national carbon market and
incentivize these venos gas emissions.
As I said this emitter one, emitter two
who as the spare can actually sell it
whoever has excessly emitted carbon
dioxide equalence they actually can buy
it and one carbon credit is equivalent
to one ton of CO2 equivalence. So that
is that is what the standard set by CCTS
and also there are two mechanisms here
compliance mechanism and offset
mechanism. What are these two mechanism?
Compliance mechanism where there are
industries which are forcefully or they
have to obligatory follow the
conditions. Let's say there are
industries like cement, steel. So these
industries are obligatory made by the
government to follow SIP guidelines and
also they have to comply with the
standards of the or they have to comply
with the equalence of CO2 that they are
going to emit and these companies are
forced or actually are actually made
legally binding to have their shares in
the carbon have their participation in
the carbon markets. Let's say steel
industry. There's a steel industry in
Jarken who is going to emit less and
there's a cement industry somewhere in
Rajasthan or somewhere in Tamil Nadu.
They're going to emit more. So this
steel industry and cement industry they
have to definitely participate in the
carbon market so that they have to
offset the carbon equivalence. So here
compliance mechanism means simply means
those industries are made obligatory to
participate in the carbon markets. What
is offset mechanism? offset mechanism.
There are certain industries like small
scale industries, agriculture
industries. So these industries are
given voluntary participation. They can
voluntarily participate whenever they
emit less. They can be voluntary given
certificates through the third party
accredited through the third party who
are accredited by this BE that is Bureau
of Energy Efficiency. So this third
party who are accredited accredited by
this BE they are going to check what is
the CO2 equivalence emitted by these
small scale industries or even the
agriculture industries and if they are
emitting less they can be given the
credits who can trade it in the carbon
markets. So it depends on then so they
can be voluntarily participate in the
carbon markets but here in complex
mechanism the companies are actually
obligatory and legally binding to
participate in the carbon markets. That
is a difference and if you see the
oversight is done by the bureau of
energy efficiency under using the
national steering committee of Indian
carbon markets. So these are the
background the legal background of this
CCTS. Now we'll go to CBAM. So UK has UK
has actually recognized CCTS. Now what
is CBAM? CBAM is a carbon intensive
means carbon intensive imports. Okay. It
is going to target the carbon intensive
imports. Let's say in UK there's a
company A. Okay. The company A is
producing steel
and it is actually only emitting one uh
kg of CO2. Okay. And there is a company
B in India which is emitting 3 kgs of
CO2.
It is producing the same steel for
rupees 100 let's say but this company is
producing the same steel for rupees 200
because it is carbon efficient because
it is releasing only 1 kg of CO2. the
price of the steel is very much high in
UK that is around 200 rupees. Let's say
in India the it is releasing more carbon
because the process is not carbon the
process is not carbon reducing it is
going to intensively release carbon
dioxide. So the 3 kg of carbon dioxide
is getting released more than what is
released in UK company. The same steel
is produced for rupees 100. Okay. Now
when the steel of rupees 100 is getting
imported to UK, this company A which is
a local company is going to get
affected.
Okay. So local companies getting
affected
and due to this the competition is
becoming biased because here the
standards are very high. In UK the
standards for carbon emissions is very
high but in India the the standards for
carbon emissions is not that much high.
So that the company is producing cheap
steel and they are going to import
export it to UK and sell it in UK which
is affecting the local company in the
UK. So to this offset what UK has
planned what European Union has and
planned that they have brought this
carbon border adjustment mechanism that
is whenever such industries are actually
whenever the low carbon intense or
actually the high carbon intensive
companies who are exporting to their
nations they're going to have a tax or
they're going to have an import duty. So
when they are going to have an import
duty it is it is going to offset the uh
competition that is being faced by the
local industries in their European Union
or the UK. So now by recognizing our
CCTS
now what happened now UK has recognized
our CCTS. So by recognizing our CCTS UK
says that no whatever the carbon scheme
you have it is very much equivalent to
our scheme in UK. So you don't have to
pay the extra charge. you don't have to
come under this CBA because your carbon
emission standards are equivalent to our
carbon emission standards. So such
things are happening. So there is no
need of this CBA. That is a huge relief
for our exporters because our exporters
earlier were fearing that the CBM will
affect their exports. Our steel imports,
our steel exports are very much worrying
that this CBM will affect their own
market share in UK. So by recognizing
this by recognizing this actually UK has
given relief to our uh exporters. So
what is the recognizing why is the
recognizing important as I said this
lower CBM liability. The carbon prices
already paid under India CCTS can
qualify for carbon price relates
from the carbon markets in India. after
purchasing the carbon credits why he has
to pay the CBM extra again. He already
emitted high because he emitted high he
brought the carbon market he brought the
carbon credits in India under CCTS. Now
why he has to pay again the CBIM for
exporting it to UK. So that double
payment is actually reduced by by after
after UK has recognized our CCTS. So
that is important thing and next is
benefiting exporters. As I said there is
no additional uh duty that is required
to pay and also improves competitiveness
and reduces the risk of Indian products
becoming more expensive. So earlier
Indian products were least expensive
because we don't we didn't have robust
carbon mechanism. So that's why these
countries like UK and EU countries tried
to have the CBIM on these on our
country. But now we have we have our own
mechanism set for our carbon markets. So
our price will not be our price will not
be uh very much high in the UK or EU
markets. So there the competitiveness
can be balanced. So it is going to
improve the competitiveness. That is
important aspect. And also since UK has
recognized India's carbon markets, it
has internationally given credibility.
So our our CCDS has got international
credibility. So tomorrow EU European
Union can actually approve our CCDS so
that our exports to other nations in EU
like even Germany, even in Denmark. So
to these countries our exports don't
have to face this extra charge. So that
is an important aspect as we got
international credibility. So that is a
discussion we we saw what is CCTS what
is CBIM after recognizing CBIM or sorry
after recognizing CCTS what UK has given
what UK has done to India. So these
three aspects we saw and also we saw the
legal backing for the CCTS. So here's
the question on CCTS. It has established
under the energy conservation act. So
that is right. is established under
energy conservation act amended in 2023.
So that is right. One carbon credit
certificate represent one ton of CO2
equivalent greenhouse gas emissions
reduction or removal. Yeah, one credit
one carbon credit under CCTS
is equivalent to
one ton of CO2. So that is right. So
second statement is also right. And
third statement, the Bureau of Energy
Efficiency is the administrator of the
scheme. Exactly. The Bureau of Energy is
what? Is the administrator of the scheme
under Ministry of Power.
Okay. So all three statements are
factually correct and so answer should
be D because they have asked what which
of the statements are correct. So answer
should be D. Let's check.
Yes, the answer is D. Let's move on and
discuss the next interesting topic which
is about LPG price.
So the government has actually increased
the price of commercial LPG cylinders by
10 rupees. So 10 rupees might be looking
very small in amount but we need to see
uh what is what was the situation before
the westation crisis during the crisis
and today but still the west crisis is
present but we'll see what was the west
what was situation before west crisis
and what were the price hike the history
of price hike for the past 6 months and
why there is an increase even today so
here we will see the OMC's that is oil
marketing companies have raised the
prices by rupees is 10 for cylinder that
is for commercial cylinders. So
commercial cylinders comes in 19 kg
19 kg block. Domestic cylinders that we
use in ohms comes in 14.2 kg. You need
to know the difference. Okay. So there
is a volume difference. So here in 19 kg
here is 14.2 kgs of gas. So this is for
domestic
this is for commercial in a sense for
hotels and those places. So this 19 kg
commercial cylinders is what where the
price increase has been seen today for
of rupees 10. So what was the segment
that is getting hit? that is the
commercial segment that is getting hit
and the domestic settlement is actually
not disturbed and the quantum is
actually around 10% cylinder and also
the price increase if you see
historically so in May or sorry in March
after the attack after the February 28
when the west war has been actually
started in March there was increase
about around 114 rupees then in again in
March there was increase about 115
rupees then in April we had an huge
increase of about 993 rupees that is
almost 1,000 rupees in a single day. So
if you see the the price of commercial
cylinders, this is only for price of
commercial cylinders. So there was
increase from 114 to 115 then to almost
1,000 rupees per cylinder. Then again
you see there was some 40 to 50 rupees
of increase. Then in June and June there
was it started to decrease. They have
increased almost 1,00,000 plus 230 200.
So almost 1,300
rupees increase has been seen last from
March till April. March till June itself
March, April, May, June for 4 months we
had around 1,300 rupees increase that is
almost 300 to 350 rupees increase per
month and in June July it started to
decrease [clears throat] in June July
decreased about 183 per cylinder that is
almost around 200 then it again
decreased for 200 rupees more. Then
today it has increased 10 rupees again.
So 1,2,300 rupees were decrease for past
four months. Then again there was sorry
1,300 increase for past 4 months. Then
there was incre decrease for around 400
rupees. Now they have increased 10
rupees. So basically the the prices are
getting changed now and then the
commercial cylinder if you see it the
price are set every first day of the
month. Okay. Every first day of the
month the com the price of the
commercial cylinder is fixed by the oil
marketing companies and other
authorities but for domestic uh
cylinders if you see the price is still
fixed because it creates a political
backlash whenever you increase the
domestic cylinders because directly
going to affect your household. So that
is why the domestic cylinder price is
actually more or less kept constant
though they have increased at one
instant.
So this is what the headline findings
about about our article if you see in
our article. So this 10% 10 rupees
increase and they have also mentioned
that there's almost 188 under recovery
that is rupees 188 of under recovery
from the domestic cylinders. What is
under recovery? So under recovery means
it is a loss loss faced by oil marketing
companies. So whenever the war was
started the LPG that we buy it from UAE
mostly we buy it from UAE earlier before
before war I'm saying before war UAE
Qatar
Saudi there were they were actually the
major import baskets of our LPG UAE was
actually around 40%age of imports of our
LPG so whenever the war has started the
straight of was blocked so since then
the price of LPG was drastically
increasing the oil marketing companies
were actually facing a loss of around
700 per cylinder in domestic
in domestic cylinder. So they didn't
increase the price at all. The selling
price was actually fixed but the cost
price was increasing too much that the
oil marketing companies pay around 700
rupees per cylinder. So that was huge
loss for them. They were not able to
bear it. Then from 700 they it came to
500. Now from 500 it came to around 188.
So that is what is under recovery about.
But still the oil marketing companies
are facing rupees 1808 that is around
200 rupees of shortfall from the
domestic cylinder. So since they are
facing this shortfall from the domestic
cylinder they have to compensate it from
the commercial cylinders. So that's why
now and then the commercial cylinder
price is getting increased. So that is
where the balance is all about that you
need to understand and also there's
other reason that the 45 one 45%age of
our imports got decreased from the last
year. If you see this P in the sense
petroleum, oil and lubricants.
So our imports have been decreasing in a
huge level that is around 45%age of
increase from year on year that is from
April till June. So sorry in the last
four months our pro our imports have
been decreasing but that is before the
war and after war. So before war and
after war if you see 45%age decrease. So
that is also creating an impact on the
price and which is forcing the oil
marketing companies to increase it now
and then. So there though they have
decreased around 400 for past 2 months
now they they have increased around 10
rupees per cylinder. And if you see the
basket in India if you see the domestic
cylinder usage is around 90%age. If you
take 100 cylinders 90 cylinders go for
domestic usage and 10 cylinders go for
commercial usage. So domestic people
that is domestic consumers are are
actually the biggest market are actually
the biggest consumers in the LPG in the
LPG
market in India. So that's why these
domestic consumers are not getting are
actually not disturbed because when they
are disturbed this is going to directly
affect your household inflation and lot
of other political backlash that
actually the government will face. So
commercial LPG beers the price burden of
the offset of domestic under recovery.
That is what the reason to offset this
188 rupees per cylinder they're going to
increase the price of commercial
cylinders and under recovery has fallen
sharply from 700 to 188. As I said from
700 to 188 is actually getting decreased
till it get coming to zero or matching
the level of zero there will be price
increase in commercial cylinders and
domestic segment insulated because they
are not they actually directly going to
affect your household. So that is the
key findings seen in this report and
also we need to understand what is under
recovery. Under recovery as I said there
is loss when selling price is below the
production. So selling price is actually
kept constant though there is increase
in cost price. So it is it is cost
inflation
that is supply side inflation.
You could you could argue there is
supply side inflation that is demanded
demand is constant but there is
constraints at the supply level due to
war or due to other reasons. So it is
seen as supply side sale inflation. This
price is this price selling price though
kept constant the cost price is getting
increased. That's why the oil market
companies were facing losses around 700.
Now they have actually decreased to
around 188. So the mechanism if you see
the commercial FPG is I to cross
subsidize the domestic segment as I
argued and also the limitation if you
see by doing it because when you're
doing it in this level you're going to
balance it by increasing the price of
commercial cylinder what happens is the
commercial sales are small recovery via
remain impartial because only 10%age is
commercial as I said out of 100
cylinders only 10 cylinders are
commercial remain 90 cylinders are
domestic so we are going to increase
some price in commercial it is it cannot
compensate completely of this domestic
IC cylinders. So there is still an
imbalance that has been present and
wider impact. So this wider impact is on
domestic cylinders. Whenever you
increase the price on domestic
cylinders, there is wider impact. But
the cost on this commercial cylinders
doesn't have this wider impact and the
weights on OMC balance sheets and fiscal
subsidy pressure is actually reduced by
offsetting this price recoveries.
So this is just to understand in June
2026 there was 700 rupees per cylinder
under recovery that is loss of per 700
rupees per cylinder for oil marketing
companies then around 500 rupees in July
now it is around 200. So whenever there
is loss on oil marketing companies the
government is trying to compensate it.
It is not completely the loss of Indian
bank or HPCL or whoever it is is also
the loss of government who going to
compensate the oil marketing company. So
it is going to actually add on to the
fiscal stress that is our fiscal deficit
will widen.
So when fiscal deficit is widening is
going to create impact on our inflation
and also it is going to create on our
borrowings market rates.
So
that's how they are that's how we have
to link it indirectly. So it is going to
affect our fiscal stress. it is going to
affect our f fiscal position and uh as I
argued this 90.4 is around the domestic
consumers in our India and if you see
the PM PMUI that is Praan Mandriojana
there is around 10.6 64 beneficiaries
around 33%age in domestic
in domestic segment is is covered under
this PMUI. What is PMUI if you see this
in PMUI they're going to give additional
subsidy of 300 rupees that is there
there is already 200 shortage by faced
by this oil marketing companies but for
PMU wise they are going to additionally
subsidize 300 rupees that is that is
what the scheme is about. So, so totally
brings it around 500 rupees for PMUI
subsidiary people. So, for 500 rupees
for PMUI subsidiary people there is a
discount. So, it is going to add extra
strain on this OM that is oil marketing
companies. So, that's why there should
be increase in the commercial uh
cylinders increase price should be
increased because for in domestic
already they're not going to touch it
but within domestic there are PMUI
people who are waiting benefit of extra
300. So still that is going to add on
this oil marketing companies who are
already facing a shortage of rupes 200
that is 188 rupees. So that's why this
to maintain to offset all this under
recoveries they are going to increase
the price of commercial sharing this. So
that is the uh argument that has been
put here. You need to understand and
what can be the supply situation that is
import versus domestic push. If you see
our imports has fallen around 45%age in
last four five months and
due to this lower import there is
increase in prices at all levels but not
in the domestic level and though the
output that is OMCC actually has planned
to concentrate on domestic stability. So
they have actually ramped up the
domestic production from 34,000 million
tons to 55,000 million tons and they
also planning to increase it to 63,000
million tons and it is clearly signaling
that the domestic stability is the main
priority because you can also have some
kind of um some kind of uh relief some
kind of
some kind of thing that you can give it
to commercial cylinders but not to the
domestic people because when affecting
90%age of the population or 90%age of
the beneficiaries then it is going to
directly affect your nation in different
uh stages. So that's why political
signal clearly says that the policy
signal clearly says that domestic prior
domestic supply should be the prior
that's why the oil marketing companies
are ramping up the domestic production
and
we need to also understand so if here is
here's what the jump is all about that
is the plan that it was around 34,000
earlier now they ramped up to 50 55,000
million tons then they are planning to
63,000 Indian tons so that's that's why
if you see the domestic production are
keeping keeping not increase but that
the commercial production is kept the
same and the cost is actually
automatically is going to increase. What
is the impact? If you see many hotel
organizations have have argued that this
10 rupees is negligible though they
actually earlier faced the biggest
tsunami on this price that is around
1,000 rupees if you see 1,000 rupees per
day Ike is all too much per cylinder
though they have faced those situations
this 10 rupees ice is negligible it is
going to directly hit the hotel
restaurants but still they are actually
not more concerned of this 10 rupees
hike and festival risk is present
because repeated hikes high pressure
prices in the festival season. So this
10 rupees like maybe tomorrow they can
increase 200 because the war is not yet
come into conclusion. The state of Armos
is still in chaos. So due to such risk
the festival season is also arriving. So
festival season actually demands lot of
food products lot of things which will
actually increase the price which will
actually demand from commercial
entities like sweets other things. So
commercial entities should automatically
have more demand for them for the gas.
So automatically the price is also going
to increase for the cylinder. So there
is festival risk and also the glass and
furnace units still are relied on this
bottle gas that is bottled gas and this
is commercial gas. So they are not
connected through piped natural gas
that is they're not connected through
the pipe gas that PNG. So they are still
dependent on this bottle gas. So the
these industries also will face some
pressure on them on prices and shift
underway. So industrial piped gas sales
grew 30%age. So what is industrial piped
gas? So if you see the CNG which which
is coming from LG though we are
importing LG there is still which is
converting into CG it is transmitted
through industries transmitted to
industries through pipelines. So these
gases that is CG
is replacing LPG in many industries. So
this is actually used for the production
for the process whatever the LPG which
is being performing earlier though the
calorific value is less for CNG still it
is actually replacing LPG and also in
cost wise and in volume wise. So once
the LPG has come into constraint so this
has actually imp uh this CGD that is
city gas distribution we call it a CGD
city gas distribution. City gas
distribution is also for this uh
households like PNG that is piped
natural gas. Piped natural gas is
nothing but CNG put in pipes and send it
to homes for your cooking purpose. So
that is piped natural gas and industrial
piped gas is still the same that is same
CG but for industrial purpose. They come
in two different pressures. For cooking,
there's different pressure that comes
through the pipes. For industry, there
are two that is different coming in
different pressure. But the composition
is same. Both are CNG. So that is that
the increase in piped natural gas has
actually grown 30%age year on year
because there are stress on LPG. So
people are transmitting to CNG and
households if you see they are insulated
again which is repeated.
So what can be the way forward? So what
we did we understand till now we
understood that domestic prices are
actually kept constant commercial prices
are kept increasing 1,300,400
then they decreased 400 now they have
increased rupees 10 again so to offset
the domestic prices domestic prices if
you see from 700 to 500 to 200. So today
the oil marketing companies are facing
200 per cylinder loss for domestic
cylinders. So to offset that they
actually increase the price of
commercial cylinders. So there are also
other reasons for increase in commercial
shift price. The first one is the there
is import there's less import and also
you see there is also other demand that
is coming forward in festival season
other demand which is going to actually
risk this commercial price index or
commercial cylinder price increase. So
these factors are actually making
commercial price cylinders too much or
increasing in a significant manner which
we see in future also it is going to
increase and this loss this loss is
faced in the domestic cylinders should
be compensated by government. So
government is also facing some fiscal
stress to compensate it. So these old
reasons is giving uh this there it is
stimulating and there's no other way but
to increase the commercial cylinders
price commercial though is having only
10 percentage of the total market as
90%age is still the domestic users still
that 10 percentage is trying to
compensate the loss that that 90%age is
going to actually provide it. So what
can be the way forward? What can be the
better way to balance it? The first way
is more move towards a transparent and
market linked pricing. So whenever there
is some distress you need to actually
market link prices should be better way
though you don't communic transmit
everything to the consumers the market
linked can be better
uh better for commercial cylinders.
Today the commercial cylinders are
market linked but it it should be more
transparent and targeted subsidy can be
done through DBT and through PUMI users
and boost domestic output. So domestic
output can replace the our reliance on
the external outputs that we borrow it
from other countries. Today we borrow
from USA which is around 70%age. So
before war USA was only 5%age to 7%age
of our imports of LPG but today USA has
actually 70%age of our LPG comes coming
from USA. Okay. And UAE which was
earlier 40%age has reduced to around 10
to 12%age.
So that is the significance of
geopolitics. If you see USA is playing a
crucial role for our LPG today. So we
cannot actually rely on only certain
countries. We need to also have this uh
basket more diversified and also we need
to improve our domestic production of
LPG. So that is that is a concern and
also strategic reserves should be
enabled. Today we have LPG strategic uh
strategic reserves at two places that is
Mangaluru that is in Karnataka
and other one is Weisak that is in uh
Andhra Pradesh. In Mangaluru is is
having more storage than Weisak. Both
HPCL has a critical role here because
inacc
total energies. Total energies is a
company that is a French company.
So both HPCL and total energies is
maintaining the uh strategic strategic
reserve advisor but in Mangaluru it is
is purely HPCL is going it is actually
maintaining the strategic reserves. So
government has actually planned to
increase more strategic reserves for LPT
two more reserves. It it is planning in
Rajasthan or it is also planning in
certain other postal regions. So that
should be expedited and also finished
quickly so that we don't depend on so
such that such exigencies like war or
other risk can be mitigated. So data
transparency is also important aspect
where you can actually uh implement such
measures so that the recovery figures
are periodically more accountable. So
these can be the way forward that is
targeted subsidy can be given domestic
input can be domestic input can be
increased and also our reliance on
certain countries should be decreased
which need to diversify our markets and
finally we need to improve our strategic
resource which is only present in weak
and Bangalore today. So that is all
about the discussion. So there's a main
practice question which is examining
examine how cross subsidization import
dependence and domestic production
influence LPG pricing in India and
suggest a sustainable pricing strategy.
So you need to examine how these three
things actually influencing the LPG
price that is cross subsidization that
is domestic and the commercial that
argument you need to put it on import
dependence and domestic production how
it is all influencing our LPG prices and
what can be the better way to
sustainably our strategize our prices of
LPG that is a question this 25 marks
three pages
it can be easily filled with whatever
discussion we had in this video.
Now let's move on to the next topic.
Let's move on and discuss the prelim
focus topics for the day. There are
three interesting topics and the first
one is anakrakatu. What is this anacu?
Anakrakatu is an volcano active volcano
present in Indonesia.
Okay.
So this Anakra Krakatu is a volcanic
island in Indonesia located around
thousand that that is sorry 150
kilometers from Jakata. Jakarta is
actually the capital of Indonesia. This
Anakraatu means child of Krakatu and
this origin that is it is first emerged
actually first emerged from the Calera.
Calra means there was underground
volcanic
that is below sea volcanic mountain
formation and over the ages that is
since 1883 because in 1883 was the first
eruption of this volcano and since that
it grew be above sea and now it has
formed an island itself.
So it's an volcanic mountain
specifically this island is totally an
volcanic mountain which was since formed
1883 eruption in 1883 there was a big
large explosive that is from this
anacrack too and now it has slowly by
for by having different explosions year
on year it is now completely an island
volcanic island and the major hazards
are lava flows ash wall and actually
pyrolastic asserts because now and then
this actual volcano is getting erupted
as it is volcanic uh uh active volcano
and if you see in 2018
sorry in 2008 and also in 2018 there was
eruptions and see if you can see the
pictures
this volcano itself this island itself
is an volcano
as Japan Japan you might know the island
Japan is an island Japan island itself
is a volcanic mountain in such case this
anakatu is also an volcanic mountain
which you need to know and come there
was a recent explosion and that's why we
are actually having this in news
it is located if you see is located here
it is in Sunda straight
okay Sunda straight where is Sunda state
sunda state is between two islands that
is Sumatra
and Java
so these two islands are part of
Indonesia you see this is Sumatra island
this is Java
So in between there sunda state and in
that sunda state is where we are having
this anakra. So you need to know where
the location is and also it is an
volcanic island. So these two things are
very important from our bloom's point of
view. That's all from this topic. Now
let's move on and see this was oil
project. Russian president Putin
described this the oil project as a
major milestone because it is going to
get developed in the Arctic region. If
you see there are seas in Arctic region
uh laptop
ki
uh and there is barons
see
so there are different seas from Norway
sea Denmark sea there are different seas
in the Arctic region because you see the
Arctic region it is still it is still
not exploited for such oil resources
slowly when the ice is all melting. So
there is more opportunities for the
countries in Arctic region like Russia
to actually develop such projects across
these seas that to explore these seas
that is lapto kasi baron seas and other
seas across in such context near kasi is
where this project is actually coming
ahead. So this oil project is Russia's
flagship Arctic oil development led by
state banked company Rosnet. So it is
coming in Arctic oil de is coming in
Arctic region. So Arctic region is
actually still not explored. It's a
virgin uh place. This is a virgin place
and now the countries are starting to
explode after the melting of ISIS. So
location is in Timur peninsula that is
in Arctic Russia. So I'll show you the
map where is the timer peninsula as well
and the production target is around 7
billion tons that is on of that much
importance. You need to know where the
location is and which sea it is near
which sea and also to which port it is
actually going to serve the oil which is
from trans means the oil getting
produced from there is going to
transmitted to the specific port which
is sever bay road. Sever bay road is
actually the northernmost oil port of
the world. So it is almost near the
arctic circle itself. So it is
northernmost
uh oil port of the world. So you need to
know that and also this pipeline is
around 770 kilometer connecting fields
and also it is a it is an engineering
marvel. It is going to be an engineering
marvel because they're going to bury
around five 50 m deep pipelines to
transmit this oil around 770 km. So 50 m
deep 770 km long connecting to sever bay
terminal that is sever bay port and
under the bed of NC river
NC river so NC river is part of this
peninsula itself this timer peninsula
itself so under this river there's going
to be this pipeline being deployed so
we'll see where it is if you can see
this is the map of Russia right in
Russia if you see this is laptops
Okay. L A P T here. Lapto C this is Kas
C. So in this Kas C if you see so if you
say this Kas C this place this SE bay is
in this place and
the timer peninsula is all is all in
east timer peninsula and these places.
So here where the uh oilport
or oil exploration is going to take
place
from here it is going to get transmitted
or to here from here it is going to get
transmitted through pipelines to sever
way port. So you need to know near which
seat is present. Taras Ci that is this
place. For more information you can
actually zoom in whenever you see the
PPD. The PP is going to get attached
with this video itself in in our
description. So you can see where is
Kari you can see where is Russia and
also within this when here it is
highlighted where the SE bay port is
also present and also these are oil
fields. So these orange things are oil
fields and if you see here this place is
where from this place is where it is
going to get served to this terminal
from there there can be refineries and
it can be uh exported to other countries
as well. So it isn't going to be a
strategic project because it is an
arctic region where where there is
minimal exploration of such oil
resources. So those are two topics and
the third topic is latent government of
literate governor of Andaman and Nikkob.
So recently there is there was a person
called there is a person called DH
Sharma who was an Raja Sabha MP from BJP
is appointed as Lieutenant Governor of
Andaman and Nikopar islands. So who are
these Lieutenant governors? Lieutenant
governors are actually the actually the
govern or related to similar to the
governors of states. Lieutenant
governors are going to are going to
share the executive powers with the
people or with the uh with the chief
ministers elected ministers of that
specific union territory. So they are
specifically for union territories. So
little governors are specifically for
union territories. They are actually
having certain executive powers and they
are going to share that executive powers
with the elected people of that specific
unit territory like for example unit
territory of pureri unit territory of
Delhi unit territory of Jammu Kashmir
ladak and though inamand we don't have
specific legislative assembly due to
strategic concerns there there is the
presence of this latent governor who
going to share the executive power with
the local with the with the people over
there and though he's going to share the
power he's a direct representative of
the president and he can take the
decision based on the based on the uh
directions of the president and
president is going to actually operate
based on the input from the council of
ministers. So latinate governor is for
certain union territories not for all
union territories because other union
territories are going to have
administrators they are also having
similar role like governors but they
don't share the executive power with the
local uh local body or or even the local
people who are going to elect getting
elected there because the administrator
is completely under the executive power
of president. They're going to directly
implement whatever the president is
going to say. They're going to not share
the executive power. But the lieutenant
governor is having certain restrictions
because they have to share the executive
power with the elected people of let's
say Pulcherry or even the Delhi.
So that is all about you need to know
the difference between the liinal
governor and the administrator. So
article 239 if you see every union
territory is administered by the
president. That is a key thing. Every
union territory is admin by the
president through an administrator.
Okay. through an administrator appointed
by immonly designated as governor. Okay.
So, unit territory is directly
administered by president. That should
be the answer. The unit is directly
administered by president through an
administrator. And if you see in Delhi
there are special provisions under
article 239A the lian governor has a
constitutionally significant role in
relation to the elected government. In
Delhi what happens this pole is poll is
public order
and land. So these three things comes
under the comes under the legislative of
union government. Though it is having a
specific legislation for Delhi these
things police public order and land
comes under the uh list of union
government for this union territory and
for Puducheri Jammu Kashmir if you see
the public order and police comes under
the union government but not the land
only for Delhi the land is extra added
in other union territories like Puducher
and Jammu and Kashmir where there are
legislative assemblies only public order
and police comes under the union list
that is union can directly make laws not
other things but In Delhi the public
order, police and land land is extra
component that is coming under the
perview of union government. So that is
that things you need to understand that
those are small things where you can be
tested and purer as well there is a lit
governor. So if you see where are the
lit governor present little governor
present and Delhi Jamun Lak these three
regions there are only administrator
where there is no much of direct
representation from the people. So they
are going to directly work under or work
under the direction of president. Here
they are going to share the executive
power with the locals share the
executive power. Okay. So that is the
difference between LG and administrator.
So that is all about the three topics.
So we'll have a question related to
anakratu. So with referring to anaku
consider the following statements.
Anakru is located in the sunda state
between Java and Sumatra. So that is
what I was mentioning. Sunda state
between Java and Sumatra. That is right.
It is emerged from the underwater
caldera formed after the 1983 eruption
of Kattoa. Yes, in 1983 there was
eruption under the sea and which formed
an volcanic mountain. Then later it got
expanded after several explosions and
finally it came above sea and formed an
island itself. So now it has become the
volcanic island. So it is since the 1883
there was such eruptions gave rise to
this volcanic mountain. Calra is nothing
but the initial formation the initial
formation of the mount volcanic mountain
calera. So these are initial formation
of volcanic mountains. So that is an uh
landform of volcanic eruptions. So that
is right and the 2018 collapse of
anacratau triggered a tsunami in the
sununda state. As I was mentioning there
was frequent triggering or frequent
explosion of this
volcano. So in 2018 there was a collapse
of anakrata triggered a tsunami. That is
also right. The answer should be 1 2 and
3. Let's check.
Yes, the answer is 1 2 and 3. Thank you
for your time. Thank you for supporting
us. Now please like, comment and share
and subscribe our YouTube channels and
have the bell icon pressed. See you
again in next interesting discussion.
>> [music]