To be read in The Hindu : 27/10/2025

🇮🇳 Environmental and Strategic Imperatives: The Great Nicobar Project

The Great Nicobar Infrastructure Project (GNIP) is an ambitious ₹72,000 crore multi-development project conceived by NITI Aayog. It aims to transform the island into a strategic economic and logistical hub, leveraging its proximity to the East-West international shipping corridor.

Key Components

  • International Container Trans-shipment Terminal (ICTT)
  • Greenfield International Airport (for civilian and defence use)
  • Gas and Solar-based Power Plant
  • Township Development

Significance for India

  • Strategic and Defence: Crucial for national security and consolidating the Indian Ocean Region, especially in the context of increasing Chinese influence in the Bay of Bengal.
  • Economic: Leverages the island’s locational advantage to become a hub for global cargo ships, potentially creating over 2.5 lakh jobs (direct and indirect).

Major Concerns and Opposition

The project faces significant backlash from environmentalists, geoscientists, and tribal rights activists due to its “grave and irreversible” potential impact.

  • Environmental Damage:
    • Deforestation: The project involves the felling of an estimated 8.5 lakh trees in the prehistoric rainforests, decimating a globally unique ecosystem.
    • Biodiversity Loss: It threatens endangered species like the Leatherback Sea Turtle and the Nicobar Megapode in the Galathea Bay area, and will lead to the destruction of coral reefs and mangrove cover.
    • Compensatory Afforestation: Environmentalists have questioned the plan to conduct compensatory afforestation in Haryana, thousands of kilometers away.
  • Seismic and Disaster Risk: The infrastructure is being built in a highly seismically volatile zone (Seismic Zone V) that experienced significant subsidence during the 2004 tsunami. Critics argue the Environmental Impact Assessment (EIA) downplays these risks.
  • Tribal Rights: Concerns have been raised over the displacement and devastating impact on the Shompen (a Particularly Vulnerable Tribal Group or PVTG) and Nicobarese communities, along with allegations of inadequate consultation with the Tribal Council.

Current Status: The National Green Tribunal (NGT) is hearing petitions challenging the clearances granted to the project. The government has defended the project as one of strategic and national importance, asserting that mitigation measures are in place.


🌍 Climate Finance and Trade: North-South Carbon Market Cooperation

The North-South Carbon Market Cooperation primarily refers to the potential linkage between the carbon markets of the Global South (like India) and the Global North (like the EU’s CBAM). This concept is crucial for aligning global trade with climate goals.

Core Principle: EU’s Carbon Border Adjustment Mechanism (CBAM)

  • What it is: The CBAM is a carbon tax on imported goods (like cement, steel, aluminum) entering the EU.
  • Why it exists: It aims to prevent “carbon leakage,” where EU companies might shift production to countries with looser climate regulations, by ensuring imports face the same carbon costs as EU-produced goods.

India-EU Linkage Opportunity

A new Strategic EU-India Agenda proposes exploring the integration of India’s Carbon Credit Trading Scheme (CCTS) with the CBAM.

  • Benefit: If India’s carbon credits are recognized, Indian exporters could deduct their domestic carbon costs from the CBAM levy at the EU border, avoiding double taxation and protecting their competitiveness.
  • The Larger Goal: This linkage would be a significant step in Global North-South cooperation, fostering technology transfer, climate finance, and a more equitable “just transition”.

Key Hurdles and Challenges

  • Price Gap: The carbon price under the EU’s Emissions Trading System (ETS) is significantly higher (€60–€80 per tonne) than India’s initial prices (€5–€10 per tonne). The EU is unlikely to grant full deductions without a comparable price.
  • Integrity/Institutional Gap: Europe requires robust Monitoring, Reporting, and Verification (MRV) systems and independent oversight, which India’s nascent market is still developing.
  • Protectionism Concern: India and other developing countries have criticized CBAM at the WTO as being protectionist and discriminatory.

🚨 Cyber Crime: The ‘Digital Arrests’ Scam

A ‘digital arrest’ scam involves fraudsters impersonating law enforcement (like the CBI or ED) or judicial authorities. The scammers use video conferencing and forged judicial orders (sometimes bearing forged signatures of Supreme Court judges) to tell victims they are implicated in a crime (like money laundering) and that they are being “digitally arrested”. They then extort large sums of money, often from elderly people, as a ‘security deposit’.

Supreme Court Intervention

The Supreme Court of India took suo motu cognisance (on its own accord) of the scam after a senior citizen couple from Ambala was defrauded of over ₹1 crore.

  • Scale of the Scam: The court was shocked to learn from a Ministry of Home Affairs (MHA) report that an estimated ₹3,000 crore has been extorted from victims in India alone.
  • Court’s Stance: The Supreme Court called for “harsh and stringent action,” promising to deal with the problem with an “iron hand” due to its grave nature. The court noted that the fabrication of judicial orders is a “direct assault” on public trust and the dignity of the judicial system.
  • Ongoing Action: The court is contemplating a proposal to transfer all such cases from various states to the CBI for a unified and coordinated investigation.

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