28 October 2024 : The Hindu Editorial Analysis
1. The private sector holds the key to India’s e-bus push
(Source – The Hindu, International Edition – Page No. – 8)
| Topic: GS2 – Governance, GS3 – Indian Economy |
| Context |
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PM E-DRIVE Scheme Boosts EV Adoption for Public Buses
- The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, recently approved by the Union Cabinet, focuses on accelerating electric vehicle (EV) adoption in public transport.
- It allocates ₹4,391 crore in subsidies to procure 14,028 electric buses across nine cities, signalling a significant step in India’s efforts to reduce emissions in public transport.
Limited Inclusion of Private Bus Operators
- Despite private buses comprising 93% of India’s 24 lakh registered buses, they are excluded from the subsidy framework, which raises concerns about scaling electric mobility.
- Private bus operators like NueGo and Chartered Speed have begun adopting electric buses, but overall numbers remain small, highlighting a gap in support compared to State-run buses.
Challenges in Financing for Private Sector Buses
- Financing remains a barrier for private bus operators due to high perceived risks, high upfront costs, and limited collateral value.
- A report by the International Council on Clean Transportation (ICCT) identified financing limitations as a significant hurdle, with factors such as uncertain battery life contributing to perceived risks.
Profitability Potential for Intercity Electric Buses
- Studies suggest electric intercity buses may offer higher profitability than diesel buses over time; however, high loan instalments make them less viable during the financing period.
- Intercity buses, which serve 22.8 crore daily passengers and account for 57% of total ridership, are suitable for electrification. Particularly given that 40% of trips fall within the 250–300 km range manageable by current electric buses.
Policy Recommendations for Financing Support
- To alleviate financing barriers, the ICCT report recommends options like interest subsidies, longer loan terms, and credit guarantees from government-backed institutions.
- By making electric buses more financially accessible, these measures could support private bus operators in transitioning to EVs.
Need for Shared Charging Infrastructure
- FAME-funded charging facilities are limited to State transport units, creating a challenge for smaller private operators who cannot afford the land and infrastructure costs of setting up charging stations.
- Expanding shared public charging infrastructure along major highways and intercity routes would enhance economic viability for private operators, with potential State government support.
Battery-as-a-Service Model for Cost Reduction
- Emerging business models like Battery-as-a-Service (BaaS) could help reduce upfront costs by separating battery ownership from vehicle ownership.
- The BaaS model, combined with battery-swapping options, offers a promising solution for private operators, as demonstrated in countries like China and Kenya.
Conclusion
- The PM E-DRIVE scheme presents an opportunity to promote EV transition within the public sector; however, greater private sector inclusion is essential to achieving scale.
- Policy interventions focused on financing, infrastructure, and innovative business models could facilitate private electric bus adoption, driving India’s broader electric mobility objectives.
| PYQ: The adoption of electric vehicles is rapidly growing worldwide. How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles? (250 words/15m) (UPSC CSE (M) GS-3 2023) |
| Practice Question: Discuss the role of the PM E-DRIVE scheme in advancing India’s electric mobility goals. Analyse the challenges and potential policy measures needed to include private bus operators in the electric bus transition. (150 Words /10 marks) |
2. Sustainability science for FMCGs
(Source – The Hindu, International Edition – Page No. – 9)
| Topic: GS3 – Indian Economy |
| Context |
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Overview of ANRF and BioE3 Policy
- India’s Anusandhan National Research Foundation (ANRF) and BioE3 (Biotechnology for Economy, Environment, and Employment) policy aim to foster academia-industry collaboration in promoting R&D for a bioeconomy.
- The BioE3 policy focuses on converting chemical-based industries to sustainable, bio-based models to support sustainable development and climate goals.
| Anusandhan National Research Foundation (ANRF) |
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| BioE3 (Biotechnology for Economy, Environment, and Employment) Policy |
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Environmental Impact of Palm Oil in Soap Production
- The soap industry is a significant contributor to greenhouse gas emissions and biodiversity loss due to its reliance on palm oil.
- Around 90% of global palm plantations are concentrated in Borneo, Sumatra, and the Malay Peninsula, contributing to deforestation.
- Palm oil’s high yield makes it cost-effective, fulfilling 40% of the global vegetable oil demand, yet transitioning away from it has proven challenging.
Technological Innovations for Sustainable Soap Manufacturing
- Emerging synthetic biotechnologies can create artificial fatty acids to potentially replace or reduce palm oil use in soaps.
- Alternative bio-based materials like plant-based polysaccharides could replace non-beneficial fatty matter in soaps, allowing room for beneficial additives, such as antimicrobial agents or immunity-boosting compounds.
Need for Government and Civil Society Support
- Effective development of bio-based soap production requires support across the value chain, including packaging innovations and government funding under the ANRF and BioE3.
- The ANRF’s PPP initiative and BioE3 could encourage these partnerships and fund innovation in legacy products.
Domestic Palm Oil Production and Sustainability
- Until bio-synthetic alternatives are widely available, India’s National Mission on Edible Oils-Oil Palm aims to increase oil palm plantations domestically, with a target of 10 lakh hectares by 2025-26.
- Ensuring sustainable practices, such as “No Deforestation, No Peat” policies, is essential to avoid ecological harm.
- Long-term biodiversity studies are needed to assess the impact of oil palm monocultures.
Market and Regulatory Support
- Sustainable palm oil production costs may raise consumer prices; hence, government incentives and funding are critical to help companies innovate.
- The government could also revise soap grading standards to focus on performance-based metrics rather than fatty content alone.
- Regulatory support, including mandatory sustainability labelling, would help consumers make environmentally conscious choices.
Conclusion
- ANRF and BioE3 policies lay a strong foundation for a bio-based economy.
- Everyday products like soap offer a promising starting point to drive sustainability and self-reliance in India’s bioeconomy.
| Practice Question: Discuss the significance of India’s BioE3 policy and Anusandhan National Research Foundation (ANRF) in promoting sustainable industrial practices. How can these policies support India’s bioeconomy and environmental objectives? (250 Words /15 marks) |
