Articles Covered:

1. President of India inaugurates a national seminar on ‘Tribes of Keonjhar: People, culture and Heritage’
2. Theyyam
3. Windfall Tax Increases on Domestically Produced Crude Oil
4. India’s first semiconductor fabrication plant can help plug in to global value chain
5. Nitrogen Pollution
6. Cabinet approves nutrient-based subsidy for P&K fertilisers for kharif season
7. India to auction 18 critical mineral blocks in second round: Report

President of India inaugurates a national seminar on ‘Tribes of Keonjhar: People, culture and Heritage’

• organized by Dharanidhar University at Gambharia, Keonjhar today (February 29, 2024).  She also inaugurated an exhibition of tribal costumes, jewelry and food items on the occasion.
• Speaking on the occasion, the President said that Keonjhar is a tribal dominated district rich in natural beauty. It is home to Munda, Kolh, Bhuiyan, Juang, Saanti, Bathudi, Gond, Santhal, Orang and Kondh. She expressed confidence that the researchers participating in the discussion will reach concrete conclusions by discussing various aspects of the preservation of tribal culture.

Keonjhar:

1. According to the 2011 Census Report, Keonjhar ishome to 45 percent of the Scheduled Tribes (ST) population from the district.
2. The district is also known as a mining hubdue to massive high-quality deposits of minerals like iron ore and chromite.
3. Prevalence of Major Tribes including PVTGs:  Munda, Kolh, Bhuiyan,Juang, Saanti, Bathudi, Gond, Santhal, Orang and Kondh.

Major Festivals of Keonjhar: 

1. Sarhul (festival of flowers) & Sohrai (Festival for Cattle Prosperity) of the Mundas.
2. Other Festivals of Keonjhar: Karmapuja, Bodam,Chaitra parab OR Uda parab,Nukhai, Raja Parab, Baruni Jatra, Rath Jatra etc.
3. Major Dances of Keonjhar : Changu Dance, Chhau Dance, Juang Dance, Ho Dance.

Theyyam

Theyyam artists performed at the Challa Kadankottu Makkam Bhagavathi temple in Kannur district.

Theyyam:

1. It is a ritualistic dance performed in northern Kerala and parts of Karnataka, often by people who are momentarily treated as God-like entities during the act.
2. It is performed at local temples or groves, locally known as ‘kavu’, and is often the village’s biggest festival, cutting across religions.
3. It is similar to a practice in Karnataka, called ‘Bhuta Kola’.
4. It incorporates dance, mime and music to worship heroes, deities and spirits of ancestors.
5. Themes: Vaishnavism, Shaktism and Shaivism
6. Performed by: It is performed mainly by males, except the Devakkoothu theyyam.
7. The Devakkoothu is the only Theyyam ritual performed by women.

Features:

1. It is an open theatre.
2. Each Theyyam has its own unique make-up, costumes, headgear and series of ritual practices.
3. Right to perform each deity: often reserved for specific communities.
4. Main attractions: The costume, elaborate headgear (Mudi) and facial and body makeup.
5. Ingredients: Only natural materials are used to make the traditional dyes.

• Red is a dominant colour made with a mixture of turmeric and limestone.
• Black is produced with rice paddy husk burned and mixed with coconut oil.
• White is made using Rice paste.
• Yellow using Turmeric.

Types of Theyyam:

There are over 400 theyyams documented.

1. Chamundi Theyyam: It is popular in the Northern Malabar region of Kerala.
2. Vishnumoorthi: It is the most popular Vaishnava Theyyam. This theyyam narrates and performs the story of Hiranyakashipu’s death by the Lord Vishnu in his avatar of Narasimham.
3. Gulikan: It is believed to be an incarnation of Yama, the Hindu god of death and justice.
4. Kuttichathan: It is the theyyam of the Brahmin caste.

Windfall Tax Increases on Domestically Produced Crude Oil

1. The Government of India has increased the windfall tax on domestically produced crude oil to Rs 4,600 per tonne from Rs 3,300 per tonne.
2. The tax is levied in the form of Special Additional Excise Duty (SAED).

windfall tax

1. Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event — for instance, the energy price-rise as a result of the Russia-Ukraine conflict.
2. These are profits that cannot be attributed to something the firm actively did, like an investment strategy or an expansion of business.
3. TheS. Congressional Research Service (CRS)defines a windfall as an “unearned, unanticipated gain in income through no additional effort or expense”.
4. Governments typically levy this as a one-off tax retrospectively over and above the normal rates of tax.

• One area where such taxes have routinely been discussed is oil markets, where price fluctuation leads to volatile or erratic profits for the industry.
• There have been varying rationales for governments worldwide to introduce windfall taxes, from redistribution of unexpected gains when high prices benefit producers at the expense of consumers, to funding social welfare schemes, and as a supplementary revenue stream for the government.

countries levying windfall taxes

1. Prices of oil, gas, and coal have seen sharp increases since last year and in the first two quarters of the current year, although they have reduced recently.
2. Pandemic recovery and supply issues resulting from the Russia-Ukraine conflict shored up energy demands, which in turn have driven up global prices.
3. The rising prices meant huge and record profits for energy companies while resulting in hefty gas and electricity bills for households in major and smaller economies. Since the gains stemmed partly from external change, multiple analysts have called them windfall profits.

issues with imposing such taxes

Brew uncertainty in the market about future taxes:

• Analysts say that companies are confident in investing in a sector if there is certainty and stability in a tax regime. Since windfall taxes are imposed retrospectively and are often influenced by unexpected events, they can brew uncertainty in the market about future taxes.

IMF’s Advice Note:

1. The International Monetary Fund (IMF), which released an advice note on how windfall taxes need to be levied also said that taxes in response to price surges may suffer from design problems—given their expedient and political nature.
2. It added that “introducing a temporary windfall profit tax reduces future investment because prospective investors willinternalise the likelihood of potential taxes when making investment decisions”.

CRS report:

1. There is another argument about what exactly constitutes true windfall profits; how can it be determined and what level of profit is normal or excessive.
2. A CRS report, for instance, argues that if rapid increases in prices lead to higher profits, in one sense it can be called true windfalls as they are unforeseeable but on the other hand, companies may argue that it is the profit they earned as a reward for the industry’s risk-taking to provide the end user with the petroleum product.

India’s first semiconductor fabrication plant can help plug in to global value chain

The Union Cabinet recently approved three chip-related projects, including India’s first semiconductor fabrication plant.

The three projects are:

Semiconductor Plant in Dholera, Gujarat:

1. The semiconductor plant is a collaboration between Tata Group and Taiwanese foundry Powerchip Semiconductor Manufacturing Corp (PSMC).
2. It will provide access to leading-edge and mature nodes including 28 nanometer, 40 nm, 55 nm, 90 nm and 110 nm.
3. Capacity of 50,000 wafers per month.

Chip Assembly plant in Morigaon, Assam:

1. The Tata Group will also set up a chip assembly plant with a capacity to manufacture 48 million chips per day, and will primarily cater to export needs.
2. Chip Packaging Facility in Sanand, Gujarat:
3. A chip packaging facility in Gujarat’s Sanand was also approved by the Cabinet.

Semiconductors Industry:

1. Success in the semiconductor industry depends on creating smaller, faster, and cheaper products.
2. The more transistors on a chip, the faster it can do its work.
3. This creates fierce competition in the industry and new technologies lower the cost of production per chip.
4. Therefore, semiconductor companies need to maintain large research and development budgets.
5. The semiconductor industry is highly competitive, with major players from countries like the United States, China, South Korea, and Taiwan dominating the market.

However, in recent times, India has emerged as a rising star in the industry.

Semiconductors:

• Semiconductors, often called ‘chips,’ are tiny electronic circuits containing transistors, diodes, capacitors, resistors, and interconnections.
• These circuits are intricately arranged on a silicon wafer.
• Semiconductors are employed in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits. Such devices have found wide application because of their compactness, reliability, power efficiency, and low cost.

Some Terms Associated With Semiconductor Industry:

• Wafers: The flat round disk of silicon in which chips are built on.
• Fab:  Short for “fabrication”, which means “manufacturing” or “making”. The fab is where the semiconductors are made. Fab facilities specialise in printing these miniature circuits onto silicon wafers according to chip designs.
• Transistors: The tiny devices built into the computer chips that do all of the calculations. There can be billions of transistors on a single computer chip.
• Foundry: A semiconductor manufacturing facility that produces integrated circuits (ICs) based on designs provided by external companies.
• Fabless: A business model where a semiconductor company designs and markets ICs but outsources their fabrication to third-party foundries.
• Integrated Device Manufacturer (IDM): A company that both designs and manufactures its own semiconductor devices, encompassing the entire supply chain.

Outsourced Semiconductor Assembly and Test (OSAT): This is a third-party service that suppliers around the world offer, which consists, as the name implies, of semiconductor assembly, packaging and testing of ICs (Integrated Circuits).

India’s Semiconductor State of Play and Market Opportunities:

1. Rapidly Expanding Market Size: According to a report from India Electronics and Semiconductor Association (IESA), India’s semiconductor consumption is expected to reach$64 billion by 2026.
2. Desires to Expand its Manufacturing Capabilities:India is currently strongest in the R&D and design facets of the semiconductor value chain
3. More recently, India has turned its attention to semiconductor fabrication (“fabs”) and post-production assembly, test, and packaging (ATP), where semiconductors are tested and assembled into sophisticated packages
4. (Image shows Semiconductor Value Chain ecosystem),

Potential Clusters for the Setting up of Fabs:

The Indian government will collaborate with state governments to establish High-Tech Clusters with essential infrastructure:

1. Land: Adequate land for fab facilities.
2. Semiconductor-Grade Water: High-quality water meeting semiconductor manufacturing standards.
3. Power:Reliable and high-quality power supply.
4. Logistics:Efficient transportation and logistics.
5. Research Ecosystem: Support for R&D and innovation.
6. Identified Special Economic Zones (SEZ’s) can prove suitable locations.

Government Initiatives:

1. National Policy on Electronics (NPE): India has launched the National Policy on Electronics (NPE) in 2019, with the aim of creating a globally competitive electronics manufacturing industry in the country.
2. Semicon India Program: The Union Cabinet had also approved the Semicon India Program, with an outlay of INR 76,000 crore for the development of a sustainable semiconductor and display manufacturing ecosystem in India.

About India Semiconductor Mission (ISM):

• ISM was launched in 2021 under the aegis of the Ministry of Electronics and IT (MeitY) for the development of a sustainable semiconductor and display ecosystem in the country.

Components:

1. Scheme for setting up of Semiconductor Fabs in India:
2. Scheme for setting up of Display Fabs in India
3. Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India
4. Design Linked Incentive (DLI) Scheme: It offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design.
5. Foreign Direct Investment (FDI) Norms: 100% FDI is allowed under the automatic route.

The “Make in India” campaign and the Electronics Manufacturing Cluster (EMC) scheme aim to attract investments and promote semiconductor manufacturing in the country.

Significance of Semiconductor Fabrication plant in Dholera:

• Reducing Dependence on Imports: 70% of the current global manufacturing capacity is confined to South Korea, Taiwan and China, with the US and Japan making up for much of the rest.
• By having our own fab, India can enhance its self-sufficiency in semiconductor production.
• Balance Trade Deficits: India runs a large trade deficit in semiconductor products. An estimated 70 percent of India’s electronics imports come from China and Hong Kong, with an additional 13 percent coming from Singapore.
• Intricate Fabrication Process:  Semiconductor fabrication involves intricate steps, including clean rooms to prevent contamination. The process requires inputs like silicon wafers, specialty chemicals, and an uninterrupted power supply. A domestic fab ensures control over these critical components
• Boost Manufacturing Sector: This ‘fab’ will havemanufacturing capacity of up to 50,000 wafers per month.
• This can ensure a steady supply of the components needed for future technologies.
• Create Job Opportunities: It has the potential to create direct employment of 20,000 advanced technology jobsand about 60,000 indirect jobs in high-tech sectors.
• Comparative Advantage: It will offer India leverage in the chip wars by increasing its say in the geopolitics of technology that has so far been shaped by China and the United States.
• Resilience in Global Supply Chain:Diversifying Manufacturing will help strengthen the supply chain of semiconductors globally.
• Example: China’s Semiconductor Manufacturing International Corporation (SMIC) is currently facing challenges in acquiring advanced chip-making equipment. This difficulty stems from a blockade led by the United States, restricting the supply of crucial technology to SMIC.
• Spillover Effects:Semiconductor manufacturing can produce tremendous spillover and “learning by doing” effects across the rest of India’s high-tech economy.

Nitrogen Pollution

Nitrogen pollution refers to the excessive presence of nitrogen compounds in the environment, primarily in water bodies like rivers and lakes.

1. According to the UNEP each year, 200 million tonnes of reactive nitrogen, 80% of the total, is lost to the environment.
2. One of the main drivers of nitrogen pollution has been the rising consumption of nitrogen-based fertiliser,which doubled between 1978 and 2014 globally.
3. The amount of reactivenitrogen produced by humans is now greater than the amount created through natural processes.

Sources of Nitrogen Pollution:

1. Agricultural Activities:One of the main drivers of nitrogen pollution has been the rising consumption of NITROGEN BASED FERTILIZER which can leach into groundwater or runoff into surface water bodies.
2. Industrial Processes:Manufacturing processes, particularly those involved in the production of nitrogen-based chemicals and fertilisers, release nitrogen compounds into the environment.
3. COMBUSTION OF FOSSIL FUELS in industriesalso emits nitrogen oxides (NOx) into the atmosphere.
4. Livestock Farming:Livestock waste, primarily from manure and urine, contains nitrogen compounds such as AMMONIA

• Improper storage and management of livestock waste can lead to nitrogen runoff, contaminating water bodies and contributing to eutrophication.
• The livestock sector currently emits 65 teragrams (Tg) of nitrogen per year, equivalent to one-third of current human-induced nitrogen emissions.

1. Biomass Burning:Wildfires and burning of cow dung cake as a fuel release nitrogen oxide (NOx) and nitrous oxide (N₂O) into the atmosphere.
2. These emissions contribute to AIR POLLUTION and can have regional and global impacts on atmospheric chemistry and

Major Impacts of Nitrogen Pollution:

• Eutrophication:Excess nitrogen acts as a nutrient fertiliser for aquatic plants,leading to excessive growth of algae and other aquatic vegetation. This phenomenon is known as Eutrophication and leads to algal blooming.
• Thiscreates oxygen-depleted zones (dead zones), where aquatic life suffocates and dies.
• Human Health Impacts:Nitrogen pollution can have direct and indirect effects on human health.
• High levels of nitrogen dioxide (NO2) in the air can exacerbate respiratory conditions such as asthma and increase the risk of respiratory infections.
• An estimated 77% of people breathe annual average concentrations of nitrogen dioxide beyond safe levels.
• Nitrate contamination of drinking water can also pose health risks, particularly to infants, by causing METHEMOGLOBINEMIA or “blue baby syndrome.”
• Ozone Depletion:Nitrous oxide (N₂O) released into the atmosphere can lead to the depletion of the STRATOSPHERIC OZONE LAYER which protects the Earth from harmful ultraviolet (UV) radiation.
• Depletion of the ozone layer can increase the risk of skin cancer, cataracts, and other health problems in humans,as well as harm marine ecosystems and agricultural crops.
• It also leads to the creation of tropospheric ozonewhich creates respiratory illnesses.

Related Government Initiatives:

1. BS-VI-Stricter emission standards for vehicles and industries aimto curb the release of nitrogen oxides and particulate matter, which are precursors to air and water pollution.
2. (NBS):This policy incentivizes the use of controlled-release fertilisers, encouraging more efficient nutrient management.
3. SOIL HEALTH CARDIssued to farmers, these cards provide soil nutrient status and customised fertiliser recommendations, promoting balanced nutrient application.
4. NANO UREA- It is a fertiliser patented and sold by theIndian Farmers Fertiliser Cooperative Limited (IFFCO), and has been approved by the government for commercial use.
5. Nano urea reduces the unbalanced and indiscriminate use of conventional ureaand increases crop productivity.

Cabinet approves nutrient-based subsidy for P&K fertilisers for kharif season

1. Subsidy outgo for the upcoming kharif season is estimated at ₹24,420 crore
2. Recently the Union Cabinet approved Nutrient Based Subsidy (NBS) rates for KHARIF Season, 2024 on Phosphatic and Potassic (P&K) fertilisers and Inclusion of 3 new Fertiliser grades under NBS scheme.

Nutrient Based Subsidy

1. Farmers receive subsidised rates for fertilisers under the NBS programme.
2. This programme covers fertilisers that are based on the nutrients N (Nitrogen), P (Phosphorus), K(Potash), and S (Sulphur).
3. Subsidy on Micronutrients:Furthermore, fertilisers enhanced or fortified with micronutrients like zinc and molybdenum (Mo) are eligible for further subsidies.
4. Every year, the government announces the P&K fertiliser subsidy.
5. Basis of Calculation:It is calculated on a kilogramme basis and accounts for many factors such as the country’s inventory level, exchange rate, and P&K fertiliser prices domestically and internationally.
6. To achieve the correct balance of NPK fertilisation, or (N:P: K= 4:2:1), NBS policy seeks to boost the usage of P&K fertilisers.
7. Nodal Ministry: Ministry of Chemicals & Fertilizers.

Evolution of Fertiliser Subsidy in India:

1. 1976– Fixed Subsidy
2. 1977-Retention Price Scheme (basically for urea).
3. 1991– Decontrol of Prices (of N, P & K based fertilisers).
4. 2003-New Pricing Scheme (had revised prices).
5. 2018- Nutrient Based Subsidy Scheme (NBS).

Macro & Micro Elements in Fertilisers:

• Macronutrients: These are the elements that are needed in relatively greater quantities and include nitrogen (N), phosphorus (P), potassium (K), calcium, sulfur (S), and magnesium.
• Micronutrients: Smaller amounts of iron (Fe), zinc (Zn), copper, boron, manganese, molybdenum, chloride, and other elements are needed for crop plant growth and development.
• NPK (nitrogen, phosphorus, and potassium) fertilisers are the most widely used of the many kinds, and urea is the fertiliser that Indians use the most.
• India uses more than 55.0 million metric tonnes of fertiliser annually, making it the world’s second-largest fertiliser consumer.

The subsidy and how is the subsidy paid for

1. Benefit to fertiliser firms: The farmer who pays MRPs below the rates set by the market is ultimately the one who benefits from the subsidy, even though it goes to fertiliser firms.
2. Direct Benefit Transfer: The Direct-Benefit Transfer (DBT) scheme would only pay subsidies to the corporations following actual merchant sales to farmers.
3. Role of merchants: Every merchant now has a point-of-sale (PoS) device connected to the e-Urvarak DBT portal run by the Department of Fertilisers.
4. Using a Kisan credit card or Aadhar card: When purchasing fertilisers at a reduced price, a buyer must provide their Kisan Credit Card number or Aadhaar unique identity.
5. E-urvarak platform: A corporation can only make a subsidy claim once the sale has been recorded on the e-Urvarak platform.

India to auction 18 critical mineral blocks in second round: Report

• The first round of auctions was launched in November last year, in a move to drive the country’s clean energy push.
• Recently the Cabinet has specified the royalty rate for 12 critical and strategic minerals, which primarily include beryllium, cadmium, cobalt, gallium, indium, rhenium, selenium, tantalum, tellurium, titanium, tungsten and vanadium.

Critical Minerals

• These minerals are necessary for national security, economic growth, and renewable energy.
• The development of numerous industries, such as high-tech electronics, telecommunications, transportation, and defence, depends on these.
• Identified Critical Minerals: The Expert Committee underthe Ministry of Mineshas identified a set of 30 critical minerals for India.
• These are Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.

Royalty Rates

• Fees paid to the government for the removal of resources or minerals from a designated area are known as royalty rates.
• MMDRA 1957’s second schedule addresses mineral royalty rates.
• These minerals have been removed from the list of atomic minerals, and the commercial sector is now able to bid for them.

Key Features of Mines and Minerals (Development and Regulation) Amendment Act 2023:

Provision	Mines and Minerals (Development and Regulation) Act, 1957	Mines and Minerals (Development and Regulation) Amendment Act, 2023
Exploration License for Specified Minerals:	The Seventh Schedule lists 29 minerals, including gold, silver, copper, cobalt, nickel, lead, potash, and rock phosphate, for which an exploration license will be granted. The following minerals are categorized as atomic minerals by it: Beryllium and beryl Niobium lithium Titanium Zirconium tantallium.	The Act removes minerals such as beryllium and beryl, lithium, niobium, titanium, tantallium, and zirconium from the list of atomic minerals. Mining and exploration of these minerals will be available to the private sector once they are removed from the list of atomic minerals.
Validity of Exploration License:	NIL	The five-year license for exploration will be granted.
Auction of Certain minerals by the Central Government:	Except in a few specific circumstances, state governments are responsible for conducting concession auctions under the Act.	The Act further states that the union government would hold an auction for composite licenses and mining leases for specific important and strategic minerals. Lithium, cobalt, nickel, phosphate, potash, tin, and phosphate are some of these minerals.
The incentive for exploration licencee:	NIL	Within six months of the exploration licensee’s report submission, the state government must hold a mining lease auction if the resources are confirmed through exploration. A portion of the mining lease auction proceeds for the mineral that the licensee has prospected will be awarded to them.

Estimated Reserves

1. Lithium Reserve: J&K and Chhattisgarh’s lithium reserves are being auctioned out for a CL.
2. J&K Block:This block has an estimated resource of 5.9 million metric tonnes (mt) of bauxite column, which includes more than 70,000 tonnes of titanium metal and 3,400 tonnes of lithium metal.
3. Odisha Block:The inferred value is 3,908 tonnes of nickel metal content or05 million tonnes of nickel ore.

The only block with copper reserves is the Odisha block.