1)Project Loon:- Balloon-Powered Internet For Everyone
- What is Project Loon? :-
- Many of us think of the Internet as a global community. But two-thirds of the world’s population does not yet have Internet access. Project Loon is a network of balloons traveling on the edge of space, designed to connect people in rural and remote areas, help fill coverage gaps, and bring people back online after disasters
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The technology
Project Loon balloons float in the stratosphere, twice as high as airplanes and the weather. In the stratosphere, there are many layers of wind, and each layer of wind varies in direction and speed. Loon balloons go where they’re needed by rising or descending into a layer of wind blowing in the desired direction of travel. By partnering with Telecommunications companies to share cellular spectrum we’ve enabled people to connect to the balloon network directly from their phones and other LTE-enabled devices. The signal is then passed across the balloon network and back down to the global Internet on Earth.Project Loon began in June 2013 with an experimental pilot in New Zealand, where a small group of Project Loon pioneers tested Loon technology. The results of the pilot test, as well as subsequent tests in New Zealand, California’s Central Valley and in Northeast Brazil, are being used to improve the technology in preparation for the next stages of the project.

What is the importance of Loon from India’s Point of View :-
From Indian perspective project of this magnitude is important, the reasons are simple:-
For “Digital India” initiative it gives immense opportunities that can be realized in a very short span of time.The alternative to this is physical /broadband connectivity that needs physical infrastructure. Physical infrastructure takes time to build and includes high maintenance cost.It is easy to float a thousand balloons than to build lakhs of kms of digital infrastructure.The only challenge is the the demand of sophisticated engineering of higher order needed for Project Loon.
It is also poses serious questions of it’s geopolitical implication .Google is dominant in the internet arena and the invasion of “Right to Privacy” is a serious concern.This balloon can act as the eye on the sky owned by a particular private organization. And, in the age of “Data” , project of this magnitude should be understood and analyzed properly , else in the garb of science we might loose our edge on National security and our National interest might be subjugated.Hence for a project of this nature , while one can happily embrace science , one must be cautious about it’s future implications , and then there is the larger question of cyber terrorism – which has potential to bring a country to it’s knees .
We know that blocking river water , putting economic sanctions or withdrawing diplomatic support has been the way of exercising geopolitical power , however , in the age of data – it will be of no wonder , if internet blackout is used as tool of geopolitics and this project and implication , thus needs a holistic understanding from various arena – policy maker, cyber expert, scientist, physicist, climate engineers etc.
2)BIS elects Raghuram Rajan as its vice-chairman:-
Raghuram Rajan has been elected vice-chairman of the Bank of International Settlement (BIS). Mr. Rajan will have a three-year term as vice-chairman of the BIS.
BIS:-
The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.(For e.g.- The way RBI in India looks after monetary policy and liquidity , in the same way , in a globalized and interconnected economy, which has few reserve currency and most payments are made in dollar , it is necessary to have an institution such as BIS , which looks after global liquidity and stability of global monetary policy.
The BIS has 60 member central banks, representing countries from around the world that together make up about 95% of world GDP
This bank was created as part of ” Treaty of Versailles“*
*Treaty of Versailles:-
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers.The condition of this treaty was too harsh upon the German (huge monetary penalty was imposed on German to pay to other countries , for being an aggressor ) and many historians claim that the seeds of World War II and rise of Hitler were sown with the imposition of this treaty.
To read about Reserve Currency :- Click Here
3)India Signs MoUs with six countries in the International Civil Aviation Negotiations :-
Note – Largely news of this nature is mostly fodder material for other recruitment exams and not for UPSC. However , the burden of UPSC aspirant is to know everything , if not in detail , at least in principle.As many aspirants rely upon us, we can’t discredit news like this , even though we believe it may not be as useful. We request you to go through the literature at least once. One never knows how it might help. If it does not help in prelims, it might help in adding points to your Mains answer, as in this case for Indian Aviation sector .
- ICAN (International Civil Aviation Negotiations),2015 was held in Antalya, Turkey from 19th to 23rdOctober,2015. The Conference was attended by 106 countries out of ICAO membership of 191 countries
- The Indian delegation representing Ministry of Civil Aviation participated in the Conference and negotiated with the delegations from 11 countries. During these negotiations,“Memorandum of Understanding (MoU)” was signed with six countries namely Finland, Kazakhstan, Kenya, Sweden, Norway &Denmark, Oman and Ethiopia and “Agreed Minutes”with Serbia, Greece, European Commission and “Record of Discussions” with Brunei Darussalam and Qatar.
4)Environment Minister Launches New Website on Climate Change :-
- Union Minister of Environment, Forest and Climate Change has launched a new website – www.justclimateaction.org
- The website is launched in the run up to upcoming “Paris Conference”.
The in-depth analysis of “India-Climate Change- INDC and Paris Conference” has already been covered by us :- Click Here
5)Agriculture Revival:-
- Y S P Thorat (Former NABARD head) and R Gopalakrishnan has suggested few reforms that may help in Agriculture sector:-
- Reforms proposed:-
- Holistic Plan to be based on 5 Pillars:- Technology, Risk, Institutions, Policy and Skills (TRIPS)
- Krishi Aayog should be created on the lines of NITI Aayog
- Key features should be promoting innovative research, funding projects and capacity building, focus on products or solutions for specific agricultural problems, thrust on networking and meaningful collaborations, between the public and private institutions, outcome-oriented, coupled with measurable milestones, leveraging the state’s extension machinery to promote modern technologies and streamlining of current responsibilities
- Rules and regulations governing the exchange of plant parts and tissues, and export of research material, including seeds, need to be clear.
- Strengthening agriculture financing and risk institutions
- Crop Insurance:-The new crop insurance scheme should be based on a financially sustainable model. It should gain farmers’ trust through science-based, fast and affordable crop insurance. For this to be effective, farmers’ land records should be digitised through handheld GPS, leveraging technologies like drones, radar-based sensing and low earth orbits to monitor and assess crop damage in real-time, plus crop modelling for each block on the basis of weather parameters. The insurance product should cover market risks for all crops.
- National Agriculture Policy, with a focus on productivity-linked growth. It should propagate a new approach to all areas – fertiliser, pesticides, marketing, mechanisation, extension services, foodgrain management and so forth
- A national agriculture market would be there, guaranteeing unfettered access to an integrated, regulated and transparent pan-India market. All wholesale markets would be linked through national commodity exchanges, via electronic platforms
- There is an urgent need to actively promote farmer-producer organisations or FPOs and start a concept of Agriculture Technical Training Institutions on the lines of Industrial training Institutes (it is) to train rural youth in modern practices and in entrepreneurship.
- Use IT for agriculture, wider dissemination of crop insurance, rapid financial inclusion can go a long way in risk mitigation.
- Reforms proposed:-
Mind Map:-
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.

