Why in the News?

The recent appointment of an Additional National Security Advisor (NSA) to the National Security Council Secretariat (NSCS) has brought the NSCS into the spotlight. This role, which had previously remained vacant, is expected to enhance and streamline the functioning of the NSCS.

About National Security Council Secretariat (NSCS)

1. Creation and Role:

• Established: Late 1990s.
• Function: Serves as the secretariat for the National Security Council (NSC), which is the apex advisory body on national security issues in India.
• Objective: To provide strategic direction, guidance, and long-term vision on internal and external security matters, ensuring that all relevant ministries are prepared to handle various threats.

2. Structure:

• Headed By: National Security Advisor (NSA) who also serves as the Secretary of the NSC.
• Key Personnel:
• Additional NSA: Newly appointed position intended to strengthen the NSCS’s operations.
• Three Deputy NSAs: Typically from diverse backgrounds including the Indian Foreign Service, Indian Police Service, and the armed forces.
• Military Adviser: Oversees coordination with the Ministry of Defence and supervises the integration of new technologies.
• National Maritime Security Coordinator (NMSC): Responsible for coordinating with coastal states, the Coast Guard, and other maritime security agencies.

3. Functional Changes:

• Amendment to Allocation of Business Rules (2019): This change brought the NSA and NSCS under the purview of Cabinet-level functions.
• NSA’s Rank: Cabinet Minister.
• Capabilities: The NSCS can now generate Cabinet notes, access relevant Cabinet papers, and participate in inter-ministerial consultations.

Significance of the New Appointment:

• Enhanced Efficiency: The appointment of the Additional NSA is expected to improve the operational efficiency and effectiveness of the NSCS.
• Strengthening of Security Framework: This move reflects a commitment to strengthening India’s national security infrastructure and ensuring better coordination and response to security challenges.

National Security Council (NSC):

The National Security Council is the apex body responsible for the overall direction and coordination of national security policy in India. It plays a crucial role in addressing internal and external threats and ensuring the country’s security and strategic interests are safeguarded.

Significance of Appointing an Additional National Security Advisor (ANSA)

1. Niche Role for NSA:

• Key Link: The ANSA will serve as a vital bridge between the NSA and other members of the National Security Council Secretariat (NSCS). This role allows the NSA to focus more on high-level strategic issues and oversight of key advisory bodies, such as the National Security Advisory Board (NSAB) and the Strategic Policy Group (SPG).
• Enhanced Focus: By delegating some responsibilities to the ANSA, the NSA can concentrate on broader national security strategies and policy advisories, improving the overall effectiveness of the NSC.

2. Ensuring Continuity:

• Potential for Advancement: The appointment of the ANSA provides a pathway for continuity within the NSCS. The ANSA could potentially be elevated to the role of NSA in the future, ensuring stability and sustained leadership in national security matters.

3. Adapting to Emerging Needs:

• Institutional Reforms: The creation of the ANSA role reflects ongoing efforts to adapt to changing geopolitical realities and security dynamics. This ensures that the NSCS remains responsive and effective in addressing contemporary and future security challenges.

Way Ahead for National Security Framework

1. Strengthening the Role of NSA:

• Objective Criteria: Develop clear and objective criteria for the selection of the NSA and ANSA. Define specific qualifications and duties to ensure the role is filled by individuals with the necessary expertise and experience.
• Transparent Command: Ensure a transparent chain of command within the national security framework to enhance decision-making and accountability.

2. Structural Changes in NSCS:

• Specialist Recruitment: Hire specialists with expertise in emerging security challenges, such as cybersecurity, biosecurity, and space security. This will improve the NSCS’s ability to anticipate and address complex security issues.
• Interdepartmental Coordination: Enhance coordination between different government departments and agencies to create a more integrated approach to national security.

3. Implementing a ‘Whole-of-Nation’ Approach:

• Partnership Development: Foster partnerships between government agencies, the private sector, civil society, and citizens. This collaborative approach will facilitate better information sharing and joint initiatives for national security.
• Community Engagement: Involve local communities and stakeholders in security efforts to build a more resilient and informed society.

National Security Council (NSC) Overview

1. Formation and Purpose:

• Established: Based on recommendations from a task force led by K.C. Pant in 1999.
• Headed By: The Prime Minister.
• Composition: Includes Ministers of Finance, Defense, Home, and External Affairs.
• Objective: To integrate and coordinate resources to protect and promote national security goals.

2. Structure and Key Bodies:

a. Strategic Policy Group (SPG):

• Role: Principal mechanism for inter-ministerial coordination and integration of inputs for national security policy formulation.
• Members: Includes Vice Chairman of NITI Aayog, Cabinet Secretary, Chiefs of the Armed Forces, RBI Governor, Secretaries of various ministries, and the Scientific Advisor to the Defence Minister.
• Coordination: The Cabinet Secretary oversees the implementation of SPG decisions across ministries and state governments.

b. National Security Advisory Board (NSAB):

• Role: Provides long-term analysis and recommendations on national security issues to the NSC.
• Function: Undertakes long-term strategic assessments and suggests measures and policy options for the NSC’s consideration.

c. Joint Intelligence Committee (JIC):

• Role: Assesses intelligence from various agencies, including the Intelligence Bureau (IB) and Research and Analysis Wing (RAW).
• Function: Operates under the NSCS and plays a crucial role in evaluating and synthesizing intelligence inputs for national security decision-making

India has recently experienced a significant increase in its imports of Liquefied Natural Gas (LNG). In June 2024, India imported 2.60 million tonnes (mt) of LNG, marking the highest import volume in 44 months. This represents a notable rise from 1.77 mt in June 2023. The increased LNG imports are closely tied to a rise in gas-based power generation in the country.

Key Data and Trends

• Power Generation Increase: Power generation from gas-based units surged to 4.60 billion units in June 2024, a 52% increase from 3.03 billion units in June 2023. This spike reflects the greater use of gas for power generation due to higher summer demand.
• Capacity Utilization: India's gas-based power generation capacity stands at almost 25 gigawatts, constituting 5.6% of the country’s total installed capacity. The overall plant load factor (PLF) for gas-based plants improved to 25.8% in June 2024 from 17% in June 2023.
• Quarterly Data: For the April-June quarter (Q1), power generation from gas-based plants increased by 62.5% year-on-year, reaching 13.49 billion units.
• Import Dependency: In June 2023, over 53% of natural gas consumed by gas-based power plants was imported LNG. This figure rose to nearly 56% in April 2024, reflecting a reliance on imported LNG due to the limited domestic production.

Reasons for Increased LNG Imports

• Demand Surge: The higher LNG imports are attributed to increased power generation during peak summer months to meet high electricity demand.
• Price and Availability: Reasonable spot market prices and ample availability of LNG globally have driven higher imports. Government policies supporting increased power production have also played a role.
• Domestic Shortfall: Domestic natural gas production only meets about half of India’s total gas consumption. With local gas prioritized for city gas distribution and fertilizer sectors, the power sector relies heavily on imported LNG.

Economic and Operational Implications

• Cost Considerations: Imported LNG is generally more expensive than domestic gas. This cost disparity has historically led to lower capacity utilization for gas-based power plants.
• Capacity Utilization: Despite higher imports, economic challenges have kept gas-based plants operating below optimal capacity levels.

Future Outlook

• Expected Decline in Imports: LNG imports are anticipated to decrease from the June 2024 levels due to higher spot prices and a potential cooling of power demand during the monsoon months.
• Market Dynamics: The fluctuations in LNG prices and power demand will continue to influence India’s LNG import strategy and gas-based power generation.

Conclusion

The recent rise in LNG imports highlights the growing role of gas-based power generation in meeting India's energy demands, particularly during peak periods. While the increase in imports reflects a short-term response to high demand and favorable international prices, the high cost of imported LNG and dependence on foreign sources underscore the need for a more balanced and sustainable energy strategy. Moving forward, India will need to manage its LNG imports carefully, taking into account global market conditions and domestic energy needs.

Why in the News?

India recently inaugurated its first cargo ship at the Vizhinjam International Transshipment Deepwater Multipurpose Seaport in Kerala, marking a significant milestone in India's port infrastructure development.

More on the News

• Ownership: The port is owned by the Government of Kerala.
• Functionality: Designed primarily for container transshipment as well as multi-purpose and break-bulk cargo.
• Development Model: Built using the landlord port model with a Public-Private Partnership (PPP) on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis. In this model, the port authority regulates while private entities handle operations.

What is a Transshipment Port?

• Definition: A transit hub where cargo from one ship is transferred to another on the way to its final destination. This often involves moving smaller parcels of cargo to larger vessels capable of traveling to distant ports.

Significance of India as a Transshipment Hub

• Revenue Generation:
• Current Situation: India loses $200-220 million annually as its transshipment cargo is handled at foreign ports.
• Potential: The new port aims to recapture this revenue by handling more transshipment cargo domestically.
• Reduced Logistic Costs:
• Efficiency: Improved port operations and logistics are expected to lower shipping costs.
• Performance: Average turnaround time for Indian ports has improved but still lags behind global standards (2.1 days in India vs. 1.04 days globally).
• Stimulating Economic Growth:
• Impact: The port is anticipated to enhance foreign direct investment, save foreign exchange reserves, and boost trade.
• Allied Businesses: Growth in sectors like ship repair, warehousing, and bunkering around the port.
• Self-Reliance:
• Strategic Importance: Reducing dependency on foreign ports, especially amid increasing Chinese influence in the Indian Ocean under the Belt and Road Initiative.
• Integration with Global Value Chain:
• Current Challenge: India's poor shipping connectivity has hindered its integration into the global value chain, with a current global trade share of about 2%.

Challenges in Developing Transshipment Ports

• Insufficient Natural Depth:
• Issue: Major Indian ports have depths of 10-14 meters, while a transshipment hub needs 20 meters.
• Distance from International Shipping Lines:
• Issue: Indian ports are often located far from major global shipping routes.
• Labor Issues:
• Problems: Frequent labor strikes, inefficiencies, and disparities in skill levels affect port productivity.
• Other Issues:
• Funding and Land Acquisition: Challenges in securing funding and delays in land acquisition.
• Logistics and Connectivity: Inefficiencies in logistics and connectivity.
• Competition: Intense competition from foreign ports such as Colombo, Dubai, Singapore, and Jebel Ali.

Steps Taken

• Maritime AmritKaal Vision 2047:
• Key Initiatives:
• Deeper Drafts: Increasing draft depths to 18-23 meters for larger vessels.
• Transshipment Hub: Developing major hubs to capture global shipping traffic.
• Vessel Charges: Lowering vessel-related charges to enhance cost-effectiveness.
• Private Sector Participation: Encouraging private investment through PM Gati Shakti – NMP and asset monetization plans.
• New Developments:
• International Container Transshipment Terminal: Under development at Galathea Bay (Great Nicobar) and Vallarpadam (Cochin).
• Tariff Guidelines, 2021:
• Flexibility: Allowing market-determined tariffs for PPP operators to foster competition and rationalize logistics costs.

Way Forward

• Infrastructure Investment:
• Focus: Implement modern cargo handling techniques to increase capacity, particularly for dry cargo.
• Public-Private Partnership (PPP) Projects:
• Action: Rationalize taxes to attract foreign shipping companies and set up a single-window system for PPP project approvals.
• Skill Development Initiatives:
• Programs: Launch targeted training for local workforce.
• Centers: Establish Centers for Coastal and Inland Maritime Technology with IITs/NITs/IIMs for applied research and development.
• Competing with International Ports:
• Strategy: Focus on cost efficiency, turnaround time, and customer service to enhance competitiveness.
• Coastal Zone Management Plan (CZMP):
• Preparation: Develop CZMPs considering future construction requirements and environmental clearances.