What’s in today’s article?

• Why in News?
• What is Small Satellite Launch Vehicle (SSLV)?
• SSLV development is complete

Why in News?

The Indian Space Research Organisation (ISRO) successfully launched the third and final developmental flight of the Small Satellite Launch Vehicle (SSLV) from the Satish Dhawan Space Centre in Sriharikota.

The SSLV-D3 placed the Earth observation satellite EOS-08 precisely into orbit. This also marks the completion of ISRO/Department of Space’s SSLV Development Project.

NewSpace India Limited (NSIL), ISRO’s commercial arm, and India’s private space industry can now produce SSLVs for commercial missions.

What is Small Satellite Launch Vehicle (SSLV)?

• About
  • SSLV is the new small satellite launch vehicle developed by ISRO to cater for the launch of small satellites.
  • It has a three-stage launch vehicle, having a lift-off weight of about 120 tonnes and is 34 metres in length and 2 metres in diameter.
  • It is a 3 stage Launch Vehicle configured with three Solid Propulsion Stages and liquid propulsion-based Velocity Trimming Module (VTM) as a terminal stage.
  • VTM is the last liquid-propellent based stage of the rocket which is used to correct the velocity just before injecting the satellites into orbit. 
• Uses
  • The SSLV missions are useful to launch small-sized satellites weighing anywhere between 10 to 500kg into the Low Earth Orbit.
  • Going by their size and weight, these are typically referred to as mini, micro or nano satellites.
  • They are low on cost and intended satellite insertion into orbits takes a shorter flight time.
  • SSLV are best suited for commercial and on-demand launches.
  • Previously, satellite projects built by college students and private players involved in the space sector have benefitted from SSLV missions.
• India’s journey towards SSLV
  • The first SSLV mission — SSLV-D1 — carrying two satellites, including EOS-02 and AzaadiSat, in August 2022, was a failure.
• The insertion of the two satellites after their separation took place into a 356 km circular orbit instead of the intended elliptical orbit.
  • In its second attempt with the SSLV-D2 in February 2023, ISRO tasted success.
• The rocket inserted three satellites onboard into the intended 450 km circular orbit following a 15-minute flight.
  • SSLV-D3 has been launched recently.
• Significance
  • Seamless launch of small satellites
    • The launch of small satellites has until now been dependent on ‘piggy-back’ rides with big satellite launches on ISRO’s PSLV.
    • Against this backdrop, the SSLV is intended to cater to a market for the launch of small satellites into low earth orbits.
  • Suited for launching multiple microsatellites
    • SSLV is perfectly suited for launching multiple microsatellites at a time and supports multiple orbital drop-offs.
    • The new launch vehicle has been designed keeping in mind commercial launches of small satellites with a quick turn-around time for the missions.
  • Shift the burden from PSLV
    • SSLV will shift the burden of commercial launches from Polar Satellite Launch Vehicles (PSLV).
    • The SSLV is likely to cost a fourth of the current PSLV.

SSLV development is complete

• About the News
  • ISRO successfully completed the third and final developmental flight of its SSLV, marking the vehicle's readiness for commercial launches and opening the door for industry-led manufacturing through technology transfer.
  • The SSLV-D3 mission was launched from Satish Dhawan Space Centre in Sriharikota.
  • The mission placed two satellites—EOS-08, an earth observation satellite, and SR-0 Demosat—into a 475 km circular low-earth orbit.
• Manufacturing and launch of SSLV for commercial purposes
  • ISRO is exploring two routes for the commercial launch of this vehicle.
  • One is through NSIL, which will fund and realise the rockets required for commercial purposes, and the other is through technology transfer, which InSpace will handle.
• Payloads on SSLV-D3
  • ISRO's EOS-08, the primary payload of the SSLV-D3 mission, is a 175-kg experimental satellite equipped with three new technologies.
  • The Electro-Optical Infrared Payload (EOIR) captures day and night images in mid-wave and long-wave infrared for various applications like surveillance, disaster and environmental monitoring, and fire detection.
  • The Global Navigation Satellite System-Reflectometry (GNSS-R) payload demonstrates the use of reflected GPS signals for ocean wind analysis, soil moisture assessment, and flood detection.
  • Additionally, the SiC UV Dosimeter payload will study UV radiation exposure on the crew module, aiding the Gaganyaan mission preparations.
• Second spaceport in Kulasekarapattinam
  • Second rocket launchport of the ISRO is being developed at Kulasekarapattinam in coastal Tamil Nadu’s Thoothukudi district.
  • This will be extensively and exclusively used for commercial, on-demand, and small satellite launches in the future.
  • The existing Sriharikota spaceport will handle launches to orbits that require the rocket to fly eastwards.

Q.1. What is Low Earth Orbit (LEO)?

Low Earth Orbit (LEO) refers to an orbit around Earth at an altitude between 160 to 2,000 kilometers (100 to 1,200 miles). Satellites in LEO travel rapidly, completing an orbit in about 90 minutes. This orbit is ideal for communications, Earth observation, and scientific research due to its proximity.

Q.2. What is InSpace?

InSpace (Indian National Space Promotion and Authorization Center) is a regulatory body established by the Indian government to promote, authorize, and oversee private sector activities in space. It facilitates private participation in space missions, fosters innovation, and ensures compliance with regulations, aiming to boost India's commercial space industry.

Source: After launch success, ISRO says SSLV development is complete | Vikram Sarabhai Space Centre| Times of India

What’s in today’s article?

• Why in News?
• About the Panama Canal
• The Panama Canal System’s Operation
• Potential Dangers the Panama Canal Faces from Climate Change
• What Can Be Done to Restore the Panama Canal's Significance?

Why in News?

• The decline in water levels of Lake Gatun, the artificial reservoir key to the Panama Canal system’s operation, as a result of climate change induced drought, is posing an existential threat to the canal.

About the Panama Canal:

• Location:
  • It is an artificial 82-km (51-mile) waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean, cutting across the Isthmus of Panama.
  • It was constructed by the US (at a cost of 375 million dollars) and the first ship passed through the canal on August 15, 1914.
  • The US government owned and operated the canal until 1999 when the Panamanian government started controlling one of the most important shipping lanes in the world.
• Significance:
  • Vital strategic asset:
  • The US has a vested interest in the secure, efficient, and reliable operation of the canal, as ~72% of transiting ships are either going to or coming from U.S. ports. 
  • For the US, the canal’s strategic significance encompasses national security, defense capabilities, diplomatic relations, and logistical resilience.
• Shorter transit routes:
  • It saves approx. 12,600 km in a trip between New York and San Francisco.
  • Thus, enabling ships to avoid the lengthy and hazardous voyage around Cape Horn at the southern tip of South America.
• Environmental benefits: By providing a shortcut, the canal contributes to the reduction of carbon emission and helps mitigate the environmental impact of global maritime transportation. 
• Global supply chain: The Canal connects 180 maritime routes that reach 1,920 ports in 170 countries, and about 5% of global maritime trade transits through it.

The Panama Canal System’s Operation:

• The Panama Canal is not a simple channel of water connecting two larger water bodies.
• This is because the elevation of the Pacific Ocean is slightly higher than the Atlantic.
• This difference means that for a ship entering the canal through the Atlantic, it needs to gain elevation during its journey to the Pacific.
• Hence, the canal works on a highly-engineered system, which uses a system of locks and elevators to lift and drop vessels to the required sea level at either end of the canal.
• The locks are either flooded (to gain elevation) or drained (to lose elevation), and act as water elevators. These locks are serviced using artificial lakes and channels.
• Most of this water is supplied from Lake Gatun (the artificial reservoir key to the Panama Canal system’s operation) using the force of gravity (no pumps are needed).

Potential Dangers the Panama Canal Faces from Climate Change:

• The Panama Canal needs massive amounts of fresh water to facilitate the passage of ships. For instance, the passage of a single ship needs more than 50 million gallons (almost 200 million litres) of water.
• While over 36 ships pass through the canal each day on average (Dec 2023), traffic has dropped to as low as 22 ships a day now (that too with a reduced cargo).
• A drought driven by the El Niño meteorological phenomenon has reduced water in the Lake Gatun, causing lengthy and costly disruptions to international trade and supply chains.
• Historically, there has been a rainfall shortage on average once every 20 years due to major El Niño events.
• However, the year 2023 is the 3rd major rainfall deficit (in the last 26 years) and this permanent problem stems from a larger issue of climate change, which threatens humanity.

What Can Be Done to Restore the Panama Canal's Significance?

• Using ocean water to work the system of locks: However, this will increase the salinity of Lake Gatun, which is also the source of drinking water for more than half of Panama’s 4.4 million people.
• Creating a second source of water for the canal: Recently, Panama’s Supreme Court ordered to build a $1.6 billion dam across Rio Indio, which will fix the problem for the next 50 years.
  • However, the reservoir of the dam will flood the homes of people, predominantly from the lower socio-economic strata.
  • They will have to be relocated, and will lose lands and livelihoods that they have had for decades.

Q.1. What is the El Niño meteorological phenomenon?

The term El Niño refers to a warming of the ocean surface in the central and eastern tropical Pacific Ocean. Due to this, rainfall is below average over Indonesia and above average over the central or eastern Pacific.

Q.2. What is the significance of the Suez Canal?

The Suez Canal is considered to be the shortest link between the east and the west due to its unique geographic location. It is an important international navigation canal linking the Mediterranean Sea at Port Said and the Red Sea at Suez.

Source: Why climate change poses an existential threat to Panama Canal

What’s in today’s article?

• Why in News?
• What is Foreign Exchange Management Act (FEMA)?
• What is Foreign Exchange Regulation Act or FERA?
• What is the difference between FEMA and FERA?
• FEMA amendments on cross-border share swaps

Why in News?

The Department of Economic Affairs has amended the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, to support the global expansion of Indian companies through cross-border share swaps, mergers, and acquisitions.

These changes, following the Union Budget's focus on simplifying foreign investment rules, aim to help Indian companies grow internationally.

What is Foreign Exchange Management Act (FEMA)?

• About
  • FEMA came in 1999 as a successor to the Foreign Exchange Regulation Act or FERA of 1973, with changing economic conditions in a post-liberalisation India.
  • The act seeks to regulate foreign exchange transactions, currency transactions, and foreign payments in order to promote orderly development and maintenance of the foreign exchange market in India.
• Objective
  • The objective of FEMA is:
    • to facilitate external trade and payments,
    • to promote the orderly development and maintenance of foreign exchange market in India, and
    • to regulate the transactions related to foreign exchange.
• Functions
  • The FEMA regulates various aspects of foreign exchange transactions, including acquisition and holding of foreign exchange, payment and settlement of foreign exchange transactions, export and import of currency, and other related activities.
  • The act also empowers the RBI to make rules and regulations to carry out the provisions of the act. Violation of the provisions of FEMA can result in penalties and fines.

What is Foreign Exchange Regulation Act or FERA?

• Background
  • FERA was designed for an era in India marked by a shortage of foreign exchange.
  • It was aimed at conserving forex to ensure it was utilised only in the interest of the development of the country.
• About
  • FERA came into effect in 1973 and was aimed at regulating foreign exchange transactions and payments in the country.
  • The act provided the Indian government with extensive powers to regulate foreign exchange transactions.
  • This included the power to impose restrictions on the use of foreign exchange, to regulate the flow of foreign exchange, and to prohibit transactions that were deemed to be against the national interest.

What is the difference between FEMA and FERA?

• Overall, FEMA is a more modern and liberalized law compared to FERA, which was considered to be more restrictive and focused on control and regulation.
• FEMA seeks to promote foreign investment in India by simplifying the rules and regulations related to foreign exchange transactions, while FERA was seen as a hindrance to foreign investment in India.

FEMA amendments on cross-border share swaps

• About the news
  • The Union Finance Ministry announced key amendments to foreign exchange regulations.
  • This includes mandatory government approvals for investments from countries sharing land borders with India.
• Key highlights
  • The amendments:
    • simplify cross-border share swaps,
    • standardize definitions like "control," and
    • align the treatment of downstream investments by OCI-owned entities with those by NRIs on a non-repatriation basis, encouraging more NRI participation in Indian markets.
  • Government clearance is now required for any share transfer involving border-sharing countries, regardless of the sector.
  • The rules also extend non-FDI status for non-repatriation investments to OCIs and standardize control definitions across laws, impacting foreign portfolio investors (FPIs).
  • The amendments follow the Union Budget's push to simplify FDI rules, promote the use of the Indian Rupee in overseas investments, and align the definition of "startup" with updated DPIIT standards.
• This revised startup definition, which raises the turnover threshold to ₹100 crore and extends the recognition period to 10 years, aims to attract more foreign investment.
  • The updates also introduce provisions for equity share swaps, permitting them with government approval.
  • These changes are part of efforts to create a more foreign-investor-friendly environment and enhance the ease of doing business in India.
  • The amendments also enable FDI in white-label ATMs to enhance financial inclusion.
• White-label ATMs (WLAs) are ATMs operated by non-bank entities, allowing customers of any bank to withdraw cash and access other banking services.

These ATMs do not display the logo of any specific bank and charge fees for transactions.

Q.1. What are White-label ATMs (WLAs)?

White-label ATMs (WLAs) are ATMs operated by non-bank entities, allowing customers of any bank to withdraw cash and access other banking services. Unlike traditional ATMs, WLAs do not display any specific bank's logo. They aim to increase financial inclusion, particularly in underserved areas, by expanding access to banking services.

Q.2. What are foreign portfolio investors (FPIs)?

Foreign Portfolio Investors (FPIs) are international investors who invest in a country's financial markets, primarily in stocks, bonds, and other financial assets, without taking control of the companies. FPIs seek short-term profits and can influence market dynamics. They are regulated to ensure stability and transparency in the host country's economy.

Source: Govt notifies FEMA amendments on cross-border share swaps | RBI | Times of India | Indian Express