Morning Brief: Maldives President Muizzu To Meet PM Modi; IAF Practices Destroying Chinese Spy Balloons; New Plan To Unlock Potential Of 20-Year-Old India-US Nuclear Deal

Dear reader, make sense of the day’s news with Swarajya's roundup of what’s making headlines this morning. 

Maldives President Muizzu To Meet PM Modi

Ahead of his meeting with Prime Minister Narendra Modi today (7 October), Maldives President Mohamed Muizzu emphasised the need for financial aid, stating that Delhi is “fully cognisant” of his country’s fiscal challenges and willing to “ease the burden” as a key development partner. Relations between India and the Maldives have been strained since Muizzu came to power last November on an anti-India plank.

Muizzu's arrival in New Delhi marks his first bilateral state visit, although he previously attended the swearing-in ceremony of Modi's third government four months ago. This trip is likely to help him take a ramp off his anti-India rhetoric as he confronts the reality that he cannot ignore India, his country's largest economic and development partner.

IAF Practices Destroying Chinese Spy Balloons

The Indian Air Force (IAF) has successfully demonstrated its ability to neutralise a spy balloon-type target at altitudes exceeding 55,000 feet. This operation, conducted along the eastern front with China, aimed to assess the IAF's capability to counteract the threat posed by Chinese spy balloons. A Rafale fighter jet was used for the demonstration.

In 2023, the US similarly shot down a Chinese spy balloon using a fifth-generation F-22 Raptor, after it had traversed North American airspace for several days. During this period, two additional incidents involving such balloons were reported in the US. In India, a spy balloon was observed over the Andaman and Nicobar Islands around the same time but no immediate action was taken as it drifted away.

New Plan To Unlock Potential Of 20-Year-Old India-US Nuclear Deal

Nearly 20 years after the India-US civil nuclear deal, Holtec International, a US-based firm, is emerging as a key player in unlocking its long-delayed commercial potential. Unlike industry giants Westinghouse and GE Hitachi, Holtec proposes using its small modular reactor (SMR-300) to break the deadlock in nuclear collaboration.

The plan involves deploying SMRs at India's coal plant sites, with the possibility of joint manufacturing in the future. Founded by Indian-American Kris P Singh in 1986, Holtec now supports over 140 nuclear plants worldwide. Singh was the only CEO who Prime Minister Modi meant one-on-one during his recent US visit.

SMRs, with capacities ranging from 30 MWe to 300 MWe, are gaining importance as future energy demands surge, particularly from AI and data centres. This move could make nuclear energy a competitive option once again.

Other Developments

India's Equity Market Valuation Premium Over China Narrows

India's equity market valuation premium over China has decreased to 54.2 percent, down from 82.3 percent at the end of August and a record 124 percent in September 2021.

This shift is occurring as stock prices correct on Dalal Street while they continue to rally in Shanghai. Over the past 15 years, the Sensex's valuation premium has averaged around 48 percent compared to China. The premium has traditionally been linked to faster growth in Indian corporate earnings compared to Chinese firms.

However, many local corporate sectors are now showing signs of a slowdown, which may narrow the performance gap between the two countries.

Israel Marks 1-Year Anniversary Of Hamas Attack

As the one-year anniversary of the October 7 assault approaches, Israel has intensified its military operations against Hamas in Gaza and increased airstrikes on Hezbollah in Lebanon. This escalation comes as tensions rise over the potential for Israel to retaliate against Iran following a barrage of ballistic missiles last week.

The Israeli military has designated much of northern Gaza as an evacuation zone, indicating preparations for a "new phase" in the conflict.

In Lebanon, Israeli airstrikes targeted Hezbollah strongholds in southern Beirut, following warnings for residents to evacuate. Over the weekend, Israel reported the killing of two more Hamas leaders in Lebanon. Interestingly, the leader of Iran's Quds Force is also reportedly missing following the strikes in Beirut.

Two Chinese Nationals Killed In Baloch Attack

At least two Chinese nationals were killed in a massive explosion near Jinnah International Airport in Karachi, Pakistan, on Sunday (6 October).

Baloch groups have consistently targeted Chinese nationals, alleging that local residents do not benefit from the wealth generated by foreign investments, particularly related to the China-Pakistan Economic Corridor.

From The States

Rajasthan Set To Implement India’s First Legal Land Aggregation

Rajasthan is set to become the first state in India to implement land aggregation through a legal mechanism, aimed at benefiting both industries and farmers.

The proposed legislation seeks to simplify land acquisition while ensuring farmers become partners in the development process, allowing them to retain a portion of the developed land for continued livelihood activities.

Officials stated that this approach will increase the value of both the developed portion and any remaining land, boosting farmers' income.

The plan includes establishing an authority to oversee the aggregation and development of private land for industrial parks and public infrastructure. If landowners do not wish to participate, they have the option to retain their land.

‘Thakur Versus Yadav’ Debate Makes Comeback In UP Ahead Of Bypolls

A dramatic heist in Uttar Pradesh involving 14 robbers has reignited the ‘Thakur versus Yadav’ debate following two “encounter” killings.

On August 28, armed men stole Rs 1.5 crore worth of jewellery in Sultanpur, leading to the arrest of nine suspects, including alleged masterminds Vinay Shukla and Vipin Singh. Four others were shot during their arrest, while two—Anuj Pratap Singh (22) and Mangesh Yadav—were killed in separate encounters.

The incidents have triggered a political uproar, with Samajwadi Party chief Akhilesh Yadav claiming that Mangesh Yadav’s killing was motivated by caste.

The SP has previously alleged that the BJP favours Thakurs, particularly in light of Chief Minister Yogi Adityanath's caste background. This controversy arises as both parties prepare for by-elections to ten assembly seats, which have become a battle for prestige.

Interestingly, the gang has a diverse composition, featuring six Thakurs, one Brahmin, four Yadavs, two Muslims, and one Dalit.

BJP Reviving MADHAV Formula Targeting OBCs in Maharashtra

BJP is reviving its MADHAV formula targeting OBCs in Maharashtra as part of its strategy to strengthen its position ahead of the upcoming elections.

The party has taken steps like reducing export duties on onions and opening the Banjara Virasat Museum to appeal to the communities. In the Marathwada region, where the BJP faced significant losses in the Lok Sabha polls, the focus is on the Mali, Dhangar, and Vanjari communities to regain support.

Party leaders believe that the lack of clarity on the Maratha reservation issue has led to a decline in OBC support, necessitating the nomination of candidates from these communities. With 46 assembly seats in Marathwada and 70 in Western Maharashtra, the BJP is keen to improve its performance, as evidenced by recent initiatives like renaming Ahmednagar to Ahilyanagar, honouring the Dhangar community's revered figure, Ahilyadevi Holkar.

Five Nominated MLAs Could Be Key In J&K

With exit polls suggesting a hung House in Jammu and Kashmir, attention is now on the five members to be nominated to the assembly by the lieutenant governor. These nominees will participate in the assembly's first sitting and can vote in a majority test, increasing the House's strength to 95 and raising the majority mark to 48.

Concerns have been raised by the National Conference and Congress that LG Manoj Sinha may use this provision to favor the BJP amid a fractured mandate, asserting that he can only act on the advice of the Chief Minister. However, the BJP contends that the law clearly grants the LG the discretion to make nominations.

Stay tuned for more insights throughout the day.