Green Municipal Bond (GMB)
Syllabus: GS3/Economy
In News
- Under Swachh Bharat Mission-Urban, Ghaziabad issued India’s first Certified Green Municipal Bond, raising ₹150 crore for a state-of-the-art Tertiary Sewage Treatment Plant (TSTP).
About Green Municipal Bonds
- Municipal Bond is a debt instrument issued by urban local bodies (ULBs) or municipal corporations to finance infrastructure and public service projects.
- The Green Municipal Bond is a subtype of municipal bonds used exclusively to fund environmentally sustainable and climate-resilient infrastructure projects, such as renewable energy, water treatment, and waste management.
- Article 243W of the Indian Constitution entrusts ULBs with functions like water supply, sanitation, and waste management—making them eligible to raise bonds.
Significance of GMBs
- Sustainable Development: Aligns with ESG (Environment, Social, Governance) investing principles, now integral to many global investors’ strategies.
- Low-Cost Capital: Offers cost-effective, long-term financing, often more affordable than commercial bank loans.
- Broadened Investor Base: Attracts institutional and international investors, reducing over-reliance on traditional domestic loans.
- Infrastructure Boost: Ideal for urban capacity building in water treatment, sanitation, and waste management.
Challenges
- Limited Municipal Capacity: Many urban local bodies (ULBs) lack financial expertise and creditworthiness to issue bonds independently.
- Regulatory Hurdles: Complex approval processes and limited market depth hinder faster adoption of green bonds.
- Monitoring and Accountability: Ensuring transparent utilization of funds and environmental impact assessment remains difficult.
- Low Investor Awareness: Limited awareness among domestic investors about green finance instruments reduces demand.
Way Ahead
- Capacity Building: Strengthen ULBs through training in financial planning, ESG compliance, and project evaluation.
- Policy Incentives: Provide tax breaks, risk guarantees, and simplified frameworks to encourage green bond issuance.
- Robust Verification Mechanisms: Establish third-party certification systems for green credentials and impact tracking.
- Expand Investor Outreach: Promote green bonds to pension funds, insurance companies, and ESG-focused investors.
- Integrate with National Missions: Align municipal green finance initiatives with AMRUT, Smart Cities, and Jal Jeevan Mission for synergy.
USTR Releases 2025 “Special 301 Report” on Protecting Intellectual Property Rights
Syllabus: GS 3/intellectual Property Rights
In News
- The Office of the United States Trade Representative (USTR) released its 2025 Special 301 Report assessing the adequacy and effectiveness of intellectual property (IP) rights protection and enforcement by U.S. trading partners.
The “Special 301” Report
- It is an annual review of the global state of IP protection and enforcement. USTR conducts this review pursuant to Section 182 of the Trade Act of 1974, as amended by the Omnibus Trade and Competitiveness Act of 1988 and the Uruguay Round Agreements Act.
- It aims to promote innovation by identifying and addressing challenges that hinder IP rights, including weak enforcement, inadequate trade secret protection, discriminatory innovation policies, online piracy, counterfeit goods, and restrictive market access measures.
- In the latest report, over 100 trading partners were reviewed, with 26 placed on the Priority Watch List or Watch List.
- The review of Ukraine was suspended due to the ongoing war.
India Specific Findings and Related Concerns
- India has once again been placed on the U.S. Trade Representative’s (USTR) ‘Priority Watch List’ in the 2025 Special 301 Report due to ongoing concerns about intellectual property (IP) protection and enforcement.
- Despite some progress, such as amendments to patent rules and increased engagement with the U.S., India continues to face criticism for vague patent laws, long approval delays, weak copyright enforcement, and insufficient trade secret protections.
- The report highlights issues like unauthorized file sharing, piracy, and high customs duties on IP-intensive products.
Steps and Progress of India
- India had made meaningful progress to promote IP protection and enforcement in some areas and took steps to partially address long-standing issues with patent pre-grant opposition proceedings and cumbersome reporting requirements by notifying the Patents (Amendment) Rules, 2024.
Future Outlook
- The US will monitor the implementation of the amendments and encourage further reforms to reduce patent pendency times, and improve the patent system overall.
| Do you know? – According to the World Intellectual Property Indicators (WIPI) 2024, India is among the top ten countries globally in all three major intellectual property (IP) categories—patents, trademarks, and industrial designs. – In 2023, India recorded the fastest growth in patent applications (15.7%) among the top 20 countries, ranking sixth globally with over 64,000 filings, more than half of which were by residents. – Patent grants surged by 149.4% year-on-year, reflecting a rapidly evolving IP ecosystem. – Between 2018 and 2023, patent and design filings more than doubled, while trademarks rose by 60%, and India’s patent-to-GDP ratio nearly tripled. – Industrial design applications rose 36.4%, led by sectors like textiles, tools, and health. India also ranked fourth in global trademark filings in 2023, with 90% filed by residents, and now has the world’s second-largest number of active trademark registrations (3.2 million). 1. These trends highlight India’s growing focus on innovation and IP-driven growth. |
Insufficient Support for Deep Tech Start-ups in India: Study
Syllabus: GS3/Economy; Employment; Growth & Development
Context
- A recent study commissioned by the Office of the Principal Scientific Advisor and executed by the Confederation of Indian Industry (CII) and others has revealed significant gaps in the support provided to deep tech start-ups by public-funded R&D organisations in India.
About Deep Tech Start-ups
- Deep Technology refers to innovations founded on advanced scientific and technological breakthroughs such as AI, quantum computing, biotechnology, and space tech and of its disruptive nature.
- Deep tech start-ups differ from traditional start-ups primarily in their technology-driven approach, longer development cycles, and higher risk factors.
- Traditional start-ups often rely on business model innovation, such as e-commerce, SaaS, or consumer services.
Key Findings of the Study
- Limited Incubation Support:Only one in four public-funded R&D organisations provide incubation support to start-ups.
- Support for deep tech start-ups is even lower, with only one in six institutions engaging in such initiatives.
- Weak Industry Collaboration: A mere 15% of organisations collaborate with overseas industries, highlighting an urgent need for global partnerships.
- Restricted Access to Facilities: Half of the organisations fail to open their infrastructure to external researchers and students, reducing opportunities for knowledge-sharing and innovation.
Budget Allocation and Workforce Trends
- R&D Expenditure: The Central government’s R&D expenditure was approximately ₹55,685 crore in 2020-21, with ₹24,587 crore allocated to key scientific agencies.
- Around 25% of participating institutions reported spending 75%-100% of their budgets on R&D, while others fell below the median share.
- Declining Permanent Staff: Observed from 2021-22 to 2022-23, accompanied by increased reliance on contractual staff.
- The share of young researchers increased to 58%, up from 54% in the previous year, however, the number was around 63% to 65% for the period from 2017-18 to 2019-20.
Efforts Related To Deep Tech Start-Ups
- National Deep Tech Startup Policy (NDTSP): It aims to strengthen India’s deep tech ecosystem by fostering research-driven innovation.
- It focuses on economic security, knowledge-driven growth, and ethical innovation.
- Quantum Computing and Deep Tech Innovation: India is making strides in quantum computing, with start-ups like QpiAI launching advanced quantum systems.
- The National Quantum Mission supports deep tech ventures in life sciences, drug discovery, and sustainability.
Recommendations for Strengthening Deep Tech Innovation
- Enhanced Industry Collaboration: Establish stronger ties with domestic and international industries to foster innovation and leverage global expertise.
- Focus on Deep Tech and Start-ups: Increase support for deep tech ventures and incubation programs to catalyse breakthroughs in emerging technologies.
- Open Access to Facilities: Public R&D institutions should provide greater access to their facilities for external researchers and students to encourage knowledge-sharing and interdisciplinary research.
- Aligning Mandates to Viksit Bharat Goals: To accelerate India’s journey toward Viksit Bharat@2047, public-funded R&D institutions must reassess their mandates and align with national strategic priorities.
Negotiations for Starlink’s Entry into India
Syllabus: GS3/ Infrastructure, Science and Technology
Context
- Starlink has begun discussions with key Indian players in the satellite communication , telecom, and broadband sectors, to accelerate the rollout of its services across India.
What is Starlink?
- Starlink is a satellite internet service developed by SpaceX, designed to provide high-speed, low-latency broadband access globally, particularly in underserved and remote areas.
- Utilizing a constellation of over 7,000 small satellites in low Earth orbit (LEO), Starlink aims to deliver internet services where traditional infrastructure is limited or unavailable .
Regulatory Frameworks Apply to Starlink in India
- Indian Telegraph Act, 1885: Starlink needs to obtain a Very Small Aperture Terminal (VSAT) licence from the Department of Telecommunications, as required under Section 4 of the Indian Telegraph Act, which gives the government exclusive control over communication services.
- Telecom Regulatory Authority of India (TRAI) Act, 1997: The Telecom Regulatory Authority of India (TRAI) advises on licensing and spectrum pricing under Section 11, influencing how Starlink can offer its services.
- Telecommunications Act, 2023: The law governs spectrum allocation, including Starlink’s use of Ku- and Ka-band frequencies, and mandates compliance with pricing, security, and interference norms.
- Satellite Communications Policy, 2000 & IN-SPACe: Starlink must coordinate with the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to ensure its satellites do not interfere with Indian assets and follow national space priorities.
- IT Act, 2000 & Digital Personal Data Protection Act, 2023: The laws require Starlink to ensure cybersecurity, lawful data access, and user privacy protections, subject to oversight by the government.
Benefits of Starlink for India
- Rural Connectivity: It offers high-speed internet to areas where traditional fibre-optics or mobile towers are unviable.
- Economic Empowerment: It has the potential to uplift rural education, e-health, agri-tech, and e-commerce ecosystems.
- Strategic Value: It will enhance disaster communication, military connectivity, and border area infrastructure.
- Digital Inclusion: It aligns with Digital India and BharatNet goals, promising equitable access.
Challenges in Starlink’s Entry into India
- The process of acquiring a VSAT licence is complex and time-consuming. It involves extensive technical evaluations and financial scrutiny by the Department of Telecommunications.
- The Telecommunications Act, 2023 permits administrative satellite spectrum allocation, but disagreements remain between the Department of Telecommunications and TRAI over pricing and usage terms.
- The Ministry of Home Affairs and intelligence agencies have yet to grant security clearance.
Concerns raised over Starlink entry
- Starlink is expected to launch its satellite internet service in India at a premium price due to its high capital expenditure and regulatory obligations.
- The hardware required to access Starlink’s services, including the satellite dish (user terminal), router, and related equipment, is also expected to be expensive for most rural households.
- The service is likely to initially target institutions, remote businesses, and high-net-worth individuals in underserved regions, rather than the rural populations it eventually aims to serve.
- Alleged Misuse: Reports of devices being exploited for unlawful activities have alarmed authorities.
Concluding remarks
- As India aims to lead the digital economy, the Starlink experience underscores the need for adaptive, transparent, and secure regulatory frameworks that foster innovation.
- Integrating satellite internet could bridge rural-urban divides and provide millions with access to education, healthcare, markets, and governance, ultimately building a more equitable and connected society.
India Considers Allowing 49% Foreign Stakes in Nuclear Power Plants
Syllabus: GS3/ Infrastructure and Energy
Context
- India could allow foreign companies to take a stake of up to 49% in its nuclear power plants, to help achieve goals to cut carbon emissions.
Background
- Traditionally, nuclear power plants in India have been owned and operated only by state-owned Nuclear Power Corporation of India Ltd (NPCIL) and its fully-owned subsidiary Bharatiya Nabhikiya Vidyut Nigam (BHAVINI).
- To allow private sector participation government has proposed amendments to key legislations;
- Atomic Energy Act, 1962, a framework for nuclear energy development and regulation.
- Civil Liability for Nuclear Damage Act, 2010, ensuring compensation mechanisms for nuclear incidents.
Need for Foreign and Private Sector Involvement
- Clean Energy Transition: India remains heavily dependent on coal, which accounts for over 70% of its electricity.
- Nuclear energy, being a stable and low-carbon source, is essential for reducing emissions without compromising baseload supply.
- High Capital Costs: Nuclear projects require large upfront investments. Allowing foreign direct investment (FDI) would enable faster resource mobilization and technology transfer.
- Post the 2008 Indo-US Civil Nuclear Agreement, India gained access to international nuclear markets. However, the expected commercial collaborations failed to materialize due to liability concerns.
Reform Proposals Under Consideration
- FDI up to 49% in Nuclear Sector: The government is considering amending existing laws to allow foreign companies to hold stake in nuclear power ventures.
- Atomic Energy Act, 1962: The proposed amendments would allow licensing of private players to construct, own, and operate nuclear power plants.
- Easing Civil Liability for Nuclear Damage Act, 2010: It was enacted in the wake of the 1984 Bhopal Gas Tragedy, the Act imposes stringent liability on suppliers, which has deterred foreign participation.
- Under the proposed amendments, the operator’s right to claim compensation from the supplier would be capped to the contract value and be limited to a specified duration.
- The draft law also proposes a lower liability cap on small reactor operators at $58 million, but is unlikely to alter the cap for large reactor operators from the current level of $175 million.
Regulatory and Safety Oversight
- The Atomic Energy Regulatory Board (AERB) and Department of Atomic Energy (DAE) will continue to supervise all activities.
- Any relaxation in investment norms will be coupled with strict compliance to India’s safety protocols, aligned with the International Atomic Energy Agency (IAEA) guidelines.
Way Ahead
- Clear Regulatory Framework: Establish a robust regulatory environment to ensure safety, compliance, and transparency, addressing concerns about accountability and national security.
- Gradual Implementation: Start with pilot projects and small-scale initiatives to test private sector involvement, ensuring risk management before large-scale implementation.
Climate-driven Extreme Weather Events
Syllabus: GS3/Environment
Context
- A new study published in Nature Geoscience reveals that climate-driven extreme weather events in India’s summer monsoon could permanently disrupt the Bay of Bengal’s marine productivity.
About
- This study highlights the critical link between monsoon variability and marine ecosystem health in the Bay of Bengal over the past 22,000 years.
- Foraminifera microfossils were used to reconstruct past ocean conditions, revealing how monsoons and ocean chemistry evolved in response to global climate change.
- Shells of foraminifera, tiny single-celled marine organisms record environmental data in their calcium carbonate shells.
- The study is significant given that several climate models warn of significant disruption to the monsoon, under the impact of human-caused warming.
Major Findings
- Both abnormally strong and weak monsoons throughout history caused major disruptions in ocean mixing, leading to a 50% reduction in food for marine life.
- Disrupted ocean mixing leads to plankton starvation.
- Marine Productivity: Marine productivity declined sharply during periods like Heinrich Stadial 1 (a cold phase between 17,500 and 15,500 years ago) and the early Holocene (about 10,500 to 9,500 years ago), when monsoons were either unusually weak or strong.
- Climate Crisis:
- Past collapses during Heinrich Stadial 1 and early Holocene show a clear link between extreme monsoons and productivity crashes.
- Future climate models forecast warmer surface waters and unstable monsoon behavior—conditions that mirror historic downturns.
- The ocean’s inability to support plankton would catastrophically undermine the marine food web.
- Concerns and Impacts:
- Bay of Bengal has <1% of ocean surface, but contributes ~8% of global fishery production.
- Hilsa fish, crucial for protein and income across South Asia, is especially at risk.
- 150+ million people depend on Bay fisheries; Bangladesh’s artisanal sector, which provides 80% of the national marine catch, is already under stress from overfishing.
Recommendations
- Strengthen and refine climate models to better predict monsoon impacts.
- Enforce sustainable fisheries management, especially in vulnerable artisanal sectors.
- Accelerate action on emissions, as global warming is intensifying monsoon swings.
- Protect coastal communities with adaptive resource planning and conservation policies.
