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- Why in News?
- The International Renewable Energy Agency (IRENA) has published its latest Renewable Power Generation Costs (RPGC) report, offering insights into the global clean energy landscape for 2024.
- Key Provisions:-
- A record 582 gigawatts (GW) of renewable power capacity were added worldwide, with solar photovoltaics (PV) leading the surge, contributing 452.1 GW—roughly 77.8% of the total. Wind energy followed, adding 114.3 GW. The report underscores a major shift in energy economics, with renewable sources now consistently cheaper than fossil fuel-based power in most regions. Wind energy remained the most cost-effective renewable electricity source.
- The economic impact has been significant: in 2024, renewables helped avert approximately USD 467 billion in fossil fuel expenses. However, the report also notes short-term challenges, including geopolitical instability, supply chain disruptions, and emerging trade barriers, which could hinder the pace of renewable deployment.
- IRENA emphasizes the urgent need for global cooperation to overcome these risks and sustain the clean energy transition.
- Why in News?
- In a recent ruling, the Supreme Court of India clarified that under the India-UAE Double Taxation Avoidance Agreement (DTAA), the existence of a Permanent Establishment (PE) does not require exclusive possession of premises. Even temporary or shared use of a space can constitute a PE, impacting how foreign entities are taxed in India.
- Understanding DTAA:
- A Double Taxation Avoidance Agreement (DTAA) is a bilateral treaty between countries aimed at preventing the same income from being taxed twice—once in the source country and again in the resident country. This agreement benefits Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) by reducing their international tax liabilities and easing cash flow concerns.
- India currently has DTAAs in place with 94 countries, including Australia, Austria, Albania, and Armenia, to foster cross-border trade and investment while offering tax clarity and relief to residents and businesses.
- Why in News?
- At the Maritime Financing Summit 2025 held in New Delhi, India proposed the establishment of a Maritime Development Fund (MDF) to accelerate growth in the maritime sector.
- About the Maritime Development Fund (MDF):
- MDF is envisioned as a dedicated blended finance mechanism designed to reduce capital costs and attract long-term private and institutional investment. The fund will primarily support development in key areas such as shipbuilding, coastal infrastructure, and inland waterway networks—critical components of India's Blue Economy strategy.
- This proposal comes amid a series of recent reforms in the maritime sector. Notably, Indian ports have successfully reduced vessel turnaround time to less than one day, boosting operational efficiency. Additionally, the government has permitted 100% Foreign Direct Investment (FDI) in the shipping industry, signaling a strong commitment to liberalization and global partnership.
- The MDF aims to position India as a major global maritime hub by ensuring sustainable and well-funded infrastructure growth.