Africa can make India’s ‘critical mineral mission’ shine

Introduction:

• In the Union Budget 2024-25, Union Finance Minister Nirmala Sitharaman announced the setting up of a Critical Mineral Mission.
• In August the Ministry of Mines organised a seminar to discuss its objectives.
• Officials noted that efforts are being fast tracked in ‘mission mode’ towards three aims:
• Expand domestic production
• Prioritise the recycling of critical minerals
• Incentivise overseas acquisition of assets
• Mines and Minerals (Development and Regulation) Amendment Bill, 2023 removing six minerals from the atomic list, thus allowing the private sector to explore these in India.
• To engage with mineral-rich countries overseas with a mandate to secure supply of critical minerals for the Indian economy, a joint venture of three public sector undertakings, Khanij Bidesh India Limited (KABIL) was founded in 2019.
• Its first major agreement for lithium exploration and mining was signed in January 2024 and provides access to five blocks in the Catamarca province in Argentina.
• Major and medium-scale mining companies in India are also seeking opportunities to ensure a steady feedstock of minerals.
• However, India’s capacity for exploration and processing such minerals is nascent.
• It lacks manufacturing capacity of end-use components, and needs to upskill its labour force, which is crucial for battery manufacturing.

Situating Africa in India’s supply chain:

• For India’s Critical Minerals Mission to succeed, New Delhi will have to find ways to leverage its existing partnerships with countries in Africa, a region that houses 30% of the world’s known critical mineral reserves.
• A familiar geography for Indian enterprise, New Delhi shares deep political, economic, and historic connections with the continent, with wide commercial networks created by a three million strong diaspora.
• Described by External Affairs Minister S. Jaishankar as the “land of the future”, the recognition of Africa’s importance in advancing global priorities is reflected in New Delhi introducing new diplomatic missions in Africa.
• Collaborating on critical minerals will bring in a new dimension to the multifaceted energy partnerships between the regions.
• Of the total bilateral trade of $98 billion in 2022-23, $43 billion is attributed to the mining and mineral sectors.
• Similarly, a significant portion of the $75 billion that India has already invested in Africa is by public sector units for the acquisition of energy assets.
• India sources approximately 34 million tonnes of oil, accounting for 15% of its total demand from Africa, alongside rising imports of natural gas, minerals, and mineral fuels.
• Further, as part of the International Solar Alliance, the Government of India has benchmarked $2 billion for solar projects in Africa.
• Building resilient supply chains to Africa is being imagined at a time when African governments are employing an array of policy instruments to diversify away from a ‘pit-to-port’ model.
• Tanzania is developing a multi-metal processing facility, Zimbabwe and Namibia have banned the export of raw minerals to ensure value addition and Ghana has approved a new policy for the exploitation and management of green minerals.
• The forthcoming African Green Mineral Strategy champions ideas for Africa’s minerals-based industrialisation.
• This presents opportunities for India to support a developmental agenda.

China factor:

• Increasing international attention, especially the extent of control China exerts over the value chain, poses economic and security risks for India.
• With its early acquisition of assets, development of processing and manufacturing capabilities, Beijing enjoys enormous influence.
• Chinese mining companies have a significant presence in cobalt mining in the Democratic Republic of Congo and recently signed a $7 billion ‘minerals-for-infrastructure’ deal.

Opportunities for collaboration:

• In this geopolitically fraught environment, where the African agency is looking to build viable alternative partnerships, there are some unique advantages that India could leverage.
• Indian construction companies have completed several projects in 43 African countries, which include transmission lines in Tunisia, hospitals in Tanzania, and railway lines in Ghana.
• In the African critical minerals landscape, identifying strategic projects with host countries and building mining-adjacent infrastructure are key to development.
• India has signed memoranda of understanding with Zambia and Zimbabwe for cooperation in geological mapping, mineral deposit modelling, and capacity building.
• To help build a critical mineral workforce, utilising mechanisms such as the Indian Technical and Economic Cooperation, which has trained 40,000 Africans in 10 years, would help drive positive energy partnerships.
• There is an increasingly nuanced role of Indian technology start-ups across the mining value chain.
• From innovating tools that accelerate mining exploration and extraction while minimising ecological impacts, to utilising technology for beneficiation of mineral ores, and providing reconnaissance services, there is a whole suite of services that private technology companies provide.
• Their expertise in niche areas of mining brings an element of value addition that African governments could explore.

Conclusion:

• On African priorities, Director of the African Minerals Development Center said, “the only way to transform lives is to add value”.
• Therefore, India’s Critical Mineral Mission should prioritise responsible practices in an era that threatens to be dominated by the geopolitics of a not-so-green energy transition.

Chhatrapati Shivaji Maharaj

Context:

• Chhatrapati Shivaji Maharaj statue collapsed last month

About Chhatrapati Shivaji Maharaj:

• Born on February 19, 1630, in the hill-fort of Shivneri, he was a prominent Maratha warrior and the founder of the Maratha Empire in western India.
• His life and legacy have left an indelible mark on Indian history, embodying the spirit of resistance against the Mughal Empire and the quest for self-governance.
• He was born to Shahaji Bhonsle, a Maratha general, and Jijabai, whose teachings profoundly influenced his early life.
• Jijabai instilled in him a sense of pride and responsibility towards their land and people. 
• By the age of 16, Shivaji had gathered a band of loyal followers and began his campaign to establish a Maratha kingdom.
• He captured his first fort, Torna, in 1645, marking the beginning of his journey as a leader.
• Over the next few years, he strategically acquired numerous forts and territories, employing guerrilla warfare tactics that became his trademark.
• One of the most significant milestones in Shivaji’s life was his coronation as Chhatrapati on June 6, 1674, at Raigad Fort.
• This event was a declaration of sovereignty and the formal establishment of the Maratha Empire.
• It was a symbolic moment, representing the Marathas’ aspiration for autonomy from Mughal domination.
• Shivaji’s administration was marked by progressive policies and efficient governance.
• He established a robust naval force, recognizing the importance of naval supremacy in safeguarding the coastlines.
• Shivaji was in constant conflict with the Mughal Empire and other neighboring states.
• His escape from Agra in 1666 after being imprisoned by Aurangzeb showcased his ingenuity and determination.
• Shivaji Maharaj passed away on April 3, 1680, at Raigad Fort.
• His death left a void, but his legacy endured through his successors and the Maratha Empire, which continued to challenge Mughal authority and expand its territories.
• He remains a revered figure in Indian history, celebrated for his contributions to the Maratha identity and the broader Indian resistance against colonial and imperial forces.
• His legacy resonates as an indelible mark on the canvas of history, inspiring a continuous pursuit of excellence in governance and serving as a beacon for generations to come.

PAC to review performance of SEBI, audit airport tariffs

News:

• The Public Accounts Committee (PAC) headed by Congress leader and Lok Sabha MP K.C. Venugopal will hold a performance review of “regulatory bodies established by Act of Par liament”, such as the Securities and Exchange Board of India (SEBI).
• The PAC will also audit “fees, tariffs, user charges, and so on” levied at public infrastructure such as airports.

About PAC:

Genesis:

• The Committee on Public Accounts was first set up in 1921 in the wake of the Montague-Chelmsford Reforms.
• The Finance Member of the Executive Council used to be the Chairman of the Committee.
• During the days of the Interim Government, the then Finance Minister acted as the Chairman of the Committee, and later on, after the attainment of Independence, the Finance Minister became the Chairman.
• With the coming into force of the Constitution of India, when the Committee became a Parliamentary Committee functioning under the control of the Speaker with a non-official Chairman appointed by the Speaker from among the Members of Lok Sabha elected to the Committee.
• The Minister of Finance ceased to be a Member of the Committee.

Constitution of the Committee:

• The Public Accounts Committee is now constituted every year.
• The Public Accounts Committee consists of not more than 22 members comprising of 15 members elected by Lok Sabha every year from amongst its members according to the principle of proportional representation by means of single transferable vote and not more than 7 members of Rajya Sabha elected by that House in like manner.
• Till 1966-67, a senior member of the ruling party used to be appointed by the Speaker as Chairman of the Committee.
• In 1967, however, for the first time, a member from the Opposition in Lok Sabha, was appointed as the Chairman of the Committee by the Speaker. This practice continues till date.
• The term of office of members of the Committee does not exceed one year at a time.
• A Minister is not elected a member of the Committee, and if a member, after his election to the Committee is appointed a Minister, he ceases to be a member of the Committee from the date of such appointment.
• The Chairman of the Committee is appointed by the Speaker from amongst the members of the Committee from Lok Sabha.

Scope and Functions:

• The functions of the Committee, as enshrined in the Rules of Procedure and Conduct of Business in Lok Sabha, include
• Examination of accounts showing the appropriation of sums granted by Parliament for the expenditure of the Government of India.
• The annual finance accounts of the Government and such other accounts laid before the House as the Committee may think fit.
• In scrutinising the Appropriation Accounts of the Government of India and the Report of the Comptroller & Auditor General of India thereon, the Committee has to satisfy:
• That the moneys shown in the accounts as having been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged.
• That the expenditure conforms to the authority which governs it.
• That every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority.
• It shall also be the duty of the Committee:
• To examine the statement of accounts showing the `income and expenditure of state corporations, trading and manufacturing schemes, and projects.
• To examine the statement of accounts showing the income and expenditure of autonomous and semi-autonomous bodies, the audit of which may be conducted by the Comptroller and Auditor General of India either under the directions of the President or by a statute of Parliament.
• To consider the report of the Comptroller and Auditor General in cases where the President may have required him to conduct an audit of any receipts or to examine the accounts of stores and stocks.
• If any money has been spent on any service during a financial year in excess of the amount granted by the House for that purpose the Committee shall examine.
• An important function of the Committee is to ascertain that money granted by Parliament has been spent by Government “within the scope of the demand.”

Significance and Importance of Committee’s Work:

• The Comptroller and Auditor General examines the yearly accounts of the Government and after scrutiny certifies the accounts, subject to such reservations as he chooses to make, and submits his reports to the President who causes them to be laid before Parliament.
• It is difficult for Lok Sabha to examine in detail the accounts, which are complex and technical. Further it cannot spare the time required for such examination.
• It is for these reasons that Lok Sabha has constituted the Committee on Public Accounts and entrusted it with the detailed examination of those accounts.
• Another important function of the Committee is the discussion on points of financial discipline and principle.

Action Taken on Recommendations:

• In the case of original report, the Government is required to intimate to the Committee the action taken or proposed to be taken by it on the recommendations contained in the Report normally within six months of the presentation.
• The Action Taken replies of the Government are considered by the Committee and after due classification of the replies, an Action Taken Report is presented to the Parliament.
• This system not only ensures accountability of the Executive to Parliament but also enables Parliament and also the general public to appraise Government’s final replies to the Committee’s recommendations.

Gulf Of Thailand

Context:

• Cambodia said that China will soon hand over two warships to improve its defence capabilities, despite U.S. fears about Beijing boosting its military influence in the strategic Gulf of Thailand.

About Gulf Of Thailand:

• It is a shallow inlet of the South China Sea located in the western part of the Pacific Ocean.
• It is surrounded by the countries of Thailand, Cambodia, and Vietnam.
• The gulf was formerly known as the Gulf of Siam.
• It is positioned between the southwestern part of the Indochinese Peninsula and the northern part of the Malay Peninsula.
• The Gulf is surrounded by Thailand in the north, west, and southwest, and by Cambodia and the southern part of Vietnam in the northeast.
• The Bay of Bangkok is situated at the northern edge of the Gulf whereas the South China Sea is situated in its southeastern part.