infrastr and investment models Flashcards

Question

Swiss challenge model?

Answer 1

* used for redevelopment of rly stations * a very flexible methof; cn be used in PPP as well as non-PPP projects * one bidder is asked by the govt to submit proposal for the project, which is put in public domain * Afterwards, several proposal by other bidders, improving the original proposal * finally an improved bid is selected called counter-proposal * If original bidder is nt able to match counter-proposal, its given to latter

Answer 2

Lease-Develop-Operate (LDO): Here, the government or the public sector entity retains ownership of the newly created infrastructure facility and receives payments in terms of a lease agreement with the private promoter. This approach is mostly followed in the development of airport facilities.

Answer 3

Public pvt People parrtnership * in use since 2000-01, for eg participatory irrigation scheme in CAD * a good model for local govt led projects

Answer 4

Rehabilitate-Operate-Transfer (ROT): Under this approach, the governments/local bodies allow private promoters to rehabilitate and operate a facility during a concession period. After the concession period, the project is transferred back to governments/local bodies.

Answer 5

1. first blueprint of Indian planning 2. in his book, ***The planned Economy of iNdia,1934*** 3. democratic capitalism with emphasis on industrialisation- * shift of labour frm agri to industries * target of doubling the national income in one decade

Answer 6

the leading organisation of iNdian capitalists opposed complete free trade and asked fr a comprehensive plan fr economic development

Answer 7

in favour of dominant role of state in the economy and doubted the 'prudence' of market mechnism

Answer 8

Though the Gandhians and some business representatives were opposed to commit the party to centralised state planning , SC Bose set up **national planning Committee** in 1938 under JN Nehru. work interrupted by 2nd WW; finla report published in 1949

Answer 9

by a grp of inutrialists including: * Purushotamdas Thakurdas: also part of National planning committee * JRD Tata * G Birla * Lala Sri Ram * Kasturbhai Lalbhai * AD Shroff * Avdeshir Dalal * John mathai published in 1944-45

Answer 10

1. 1951-56 2. based on Harrod-domar model 3. highest priority on agri incl irrogation and power 4. 45% plan outlay on PSUs 5. plan was successful and achieved growth rate of 3.6% (more than its target)

Answer 11

1. 1956-61 2. based on PC Mahalanobis model 3. main focus was on the industrial development of the country. 4. Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. 5. It could not be implemented fully due to the shortage of foreign exchange. Targets had to be pruned. Yet, This plan was successful and achieved a growth rate of 4.1%

Answer 12

1. 1961-66 2. aka 'Gadgil Yojana' 3. plan specifically incorporated the development of agriculture as one of the objectives of planning in India and, **for the first time,** considering **aim of balanced, regional development** 4. aim: establishment of a **self-reliant and self-generating economy** 5. Due to china war, this plan could not achieve its growth target of 5.6%

Answer 13

1. 1966-69: Plan holiday 2. main reason behind plan holiday: Indo-Pak war and failure of third plan 3. A new agricultural strategy was implemented. It involved the distribution of high-yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential and soil conservation measures.

Answer 14

1. 1969-74 2. based on Gadgil strategy 3. two main objectives: 1. growth with stability, and 2. progressive achievement of self-reliance 4. "Garibi Hatao" (**politicisation of planning started**); 14 banks' nationalization and GR 5. was ambitious but this plan failed and could achieve a growth rate of 3.3% only against the target of 5.7%.

Answer 15

1. 1974-79; given by DP Dhar 2. top priority was given to agriculture, next came to industry and mines. 3. focus on poverty alleviation and self-reliance;**Twenty-point program** with the objective of **'Growth with stability'** 4. the Indian national highway system was introduced for the first time. 5. plan terminated in 1978 by Janata party govt

Answer 16

1. plan was started with an annual plan for 1978-79 and as a continuation of the terminated fifth-five year plan. 2. adjusted by INC Govt that formed in 1980 as follows: 1. 1978-79 was added to 5th FYP to complete it 2. 1979-80 was regarded as an annual plan 3. emphasis on some highly new economic ideas with almost a complete NO to foreign investments, new thrust on price control, rejuvenation of PDS, emphasis on SMEs. and PRIs

Answer 17

1. 1980-85 2. basic objective: 1. poverty eradication 2. technological self-reliance 3. 'Target Grp' approach initiated 4. emphasis on socio-economic infra in rural areas, eliminating rural poverty and reducing regionla disparities 5. Most targets achieved. Growth: 5.5 pc.

Answer 18

1. 1985-90 2. objectives: growth, modernisation, self-reliance and social justice 3. For the first time, the private sector got the priority over public sector. 4. democratic decentralisation: 73rd and 74th CAA 5. healthy growth rates bt at the cost of poor fisca lmanagemet and iNdia had a really unfavourable BoP by the end. 6. Last plan to have **import substitution strategy**

Answer 19

1. 1989-91 2. Eighth five Plan could not take place due to the volatile political situation at the centre. 3. basic thrust on maximisation of employment and social transformation.

Answer 20

1. 1992-97 2. economic reforms were already started in july 1991 3. new focus on : 1. redefining state's role in the economy 2. 'market based' development 3. pvt sector investment in infrastr 4. restructuring of subsidies 5. decentralised planning 4. New Economic Policy consisted of reforms like 1. license for establishment of foreign pvt sector banks in India 2. abolition of import licensing except for hazardous and environmentlly sensitive industries 3. reduction in rate of Corporation tax 4. devaluation of rupee 5. gradual abolition of industrial licensing 6. Foreign investment limit in banks was raised to around 50% 7. Quantitative restrictions on imports of mfd consumer goods and agri products were fully removed frm April 2001 8. reduced the role of RBI frm regulator to facilitator of Financial sector

Answer 21

1. 1997-2002 2. backdrop: slowdown amid SE Asian crisis 3. not only targetted an ambitious high GR, but also aimed fr 'time bound' social objectives 4. emphasis on 7 identified **Basic Minimum Services:** 1. ****safe DW 2. primary health service 3. universalisation of Primary education 4. Public housing assistance to poor 5. nutritional support to children 6. connectivity to all villages and habitations 7. streamlining of PDS 5. issue of fiscal consolidation beacme a top priority

Answer 22

1. 2002-2007 2. aims to 1. double the Per Capita Income of India in the next 10 years. 2. reduce the poverty ratio of 15% by 2012 3. higher GR not the sole objective and aimed improvement in quality of life 4. greater role pf states and PRIs 5. Agriculture sector declared as **prime Moving Force of the economy**

Answer 23

1. 2007-12 2. targets a GR of 10% and emphasises 'inclusive Growth' 3. India recorded an average annual economic growth rate of 8%, farm sector grew at an average rate of 3.7% as against 4% targeted. The industry grew with an annual average growth of 7.2% against 10% targeted.

Answer 24

India’s longest rail-road bridge, connecting the north and south banks of the Brahmaputra, falling in the eastern part of Assam and Arunachal Pradesh. The bridge is 4.94 km long. It will reduce train travel time between Tinsukia in Assam to Naharlagun in AP by 10 hrs

Answer 25

Coal phase out is a must for any eventual target of net zero emission. 1. over dependence on coal for energy needs. 70% as of now. In FY20, India consumed approximately 942 million tonnes (MT) of coal, 730 MT of which was produced domestically. Of this, approximately 666 MT was produced by CIL and SCCL 2. phaseout plan also carries elements of a “just transition” i.e. it must recognise that there will be broader social and economic consequences of transitioning to clean energy 3. roadmap for workers and communities dependent on fossil fuels * eg. German coal phaseout plan seeks to end coal burning by 2038 and calls for an investment of more than 50 billion euros for mining and plant operators, impacted regions and employees. * Using different employment factors, one study has pegged direct coal jobs at 7,44,984, while another study pegs it at approximately 12,00,000. This figure does not even include contract employees, those in ancillary services as well as those engaged in statecraft coal (non-legal small scale coal mines in NE) and subsistence coal (small-scale collieries run on village commons usually bordering formal mines) 4. factors like education, skill levels, willingness to migrate, and caste. Without adequate information on these parameters, it becomes difficult to decide how and where to finance the transition. 5. revenues from coal and allied activities. In FY20, the Centre alone collected approx. Rs 29,200 crore in GST compensation cess from coal.

Answer 26

in Kerala The project will have an installed capacity of 163 mw. Under the project, a dam is proposed to be constructed on the Chalakudy River. The Chalakudy River is a tributary of the Periyar River and originates in the Anamalai region of Tamil Nadu. shelved several times in the past due to protests by green activists; recently green lighted again by kerala govt

Answer 27

PM in his Independence Day speech 2019 had highlighted that ₹100 lakh crore would be invested on infrastructure over the next 5 years. NIP was announced in Budget 2019 NIP has outlined plans to invest more than ₹102 lakh crore on infrastructure projects by 2024-25, with the **Centre, States and the private sector** to share the capital expenditure in a **39:39:22 formula.** 1. It will **improve project preparation, attract investments** (both domestic & foreign) into infrastructure, and will be crucial for attaining **the target of becoming a $5 trillion economy by FY 2025.** 2. NIP includes economic and social infrastructure projects. 3. During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India.

Answer 28

1) NIP , worth 102Lcr (fiscals 2020 to 2025), will be implemented in the next five years as part of the govt's spending push on infra 2) Need: To achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion (Rs. 100 lakh crore) over these years on infrastructure. To achieve this objective, a Task Force was constituted to draw up the National Infrastructure Pipeline (NIP) for each of the years from FY 2019-20 to FY 2024-25 3) In the past decade (FY 2008-17), India invested about $1.1 trillion on infrastructure 4) During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India. 5) Central, state and pvt sector contri: 39,39 and 22%; pvt sector's share is expected to increase to 30% by 2025. 6) reforms: strengthening municipal bond mkt, aggressive assts sales and regulatory mechanism to levy user charges; effective dispute resolution, contract enforcement also 7) Each Ministry/ Department would be responsible for the monitoringof projects so as to ensure their timely and within-cost implementation. CHALLENGES 1) However, in last 5 yrs, its been 50Lcr and thus we need to 2X this in 5 yrs. How? esp in these times? 2) 78% by govt. what abt FD targets? possible solutions can be rationalising subsidies and aggressive asset monetisation 3) 22% frm an over-leveraged corp sector that seems hesitant to invest? 4) 24% inv to be in energy.However, already existing plants are operating well below their peak 5) of the total projects, 31% are still at conceptual stage and 8% are unclassified;thus ~40% projects are unclear.

Answer 29

**task force headed by Atanu Chakraborty** 1. **Investment needed:** ₹111 lakh crore over the next five years (2020-2025) 2. **Energy, roads, railways and urban projects** are estimated to account for the bulk of projects (around 70%). 3. **The centre (39 percent) and state (40 percent) are expected to have an almost equal share**in implementing the projects, while the private sector has 21 percent share. 4. Aggressive push towards asset sales. 5. Monetisation of infrastructure assets. 6. Setting up of development finance institutions. 7. Strengthening the municipal bond market.

Answer 30

"The railway system will therefore become, in India, truly the forerunner of modern industry"

Answer 31

1) Cabinet approved the reform of the railway board 2) Under the new approved structure, the Railway Board will now consist of 4 members and a chairperson (for Infrastructure, Rolling Stock and Traction, Finance, Operations and Business Development), a reduction from the present number of 8. Chairman will act as CEO. 3) also approved the merging of railway cadres, which will now be called Indian Railway Management Service (IRMS). All eight Group A services of Indian Railways will now be merged into the central service called IRMS, IRMS to be prospective and not retrospective. 4) End of departmentalisation: Railway Board no longer organised on departmental lines; to be replaced with leaner structure organised on functional lines 5) The new officers will be from engineering and non-engineering disciplines and they will be posted as per their aptitude and specialisation 6) banning of 'work-charged posts', a tool to keep increasing no. of promotional posts, supposed to be temporary, bt regularised in practice. **_challenges_** 1) opposed by Civil services officers as they feel that when it will come to promotion to posts like DRMs, GMs, if all the present cadres are merged , then engineers being in larger no. and of a certain age profile may end up occupying most, if not all, the posts. 2) The move, many say, emerges frm simplistic belief that while nontechnical specialists cannot do technical jobs, technocrats can do both. 3) Functionally, deptts will will continue to exist through various technical and non-technical specialisations, so merging them may not end departmentalisation per se.

Answer 32

Key ingredients of the committee's suggestions and their follow up are as follows: 1) allow pvt entry, including running of pvt trains: tejas express, India’s first private train, operated by IRCTC, started ops. aim is to eventually invite private operators to run trains on as many as 150 routes 2) change the composition of railway board: 8-\>4 3) decentralise decision making to zones/divisions and even further below: done 4) separation of core and non-core functions: implemented at zonal level 5) set up a regulator: PENDING 6) unify various railway services into two distinct services-technical and logistics: recent creation of IRMS 7) transit to commercial accounting: completed at zonal level 8) unite railway budget and Union budget: Done. departmentalistion is worse than it was in 1950s. Some times as many a s17 different contracts are awarded for the cleaning services on same railway station. Too many, silos, not talkingto each other.

Answer 33

- \> IAF recently retired its Mig-27 fleet. 1) swing wing type: sweep of their wings changeable, providing flexibility and stability at low altitudes 2) Russian origin; inducted in 1984-85; mid-life upgrade in 2006; most accurate weapons delivery platform of IAF 3) primarily a ground attack aircraft; capable of successfully performing both 'battle air strikes' and 'Battle Air Interdiction'- missing in earlier Mig-21, that was basically an interceptor type aircraft 4) Issues: additional hardware and a powerful single engine led to few failures and crashes or groundings 5) took part in Operation safed sagar in Kargil- air support to ground troops 6) AKA **Bahadur** aircraft 7) Note that though Mig-27 was inducted later than Mig-21, it has retired earlier and Mig-21 will retire in 5 yrs later 8) AF is nw working with 28 fighter squadrons against the sanctioned strength of 42. The retiring MiGs and legacy aircrafts like 'Jaguar' will be replaced by two more Sukhoi squadrons, two Rafale squadrons and various versions of LCA Tejas

Answer 34

1. BharatNet Project was originally launched in 2011 as **the National Optical Fibre Network(NOFN)** and renamed as Bharat-Net in 2015. 2. It seeks **to provide connectivity to 2.5 lakh Gram Panchayats (GPs)** through optical fibre. 3. It is a flagship mission **implemented by** [**Bharat Broadband Network Ltd. (BBNL)**](http://bbnl.nic.in/)**.** 4. The objective is **to facilitate the delivery of e-governance, e-health, e-education, e-banking, Internet and other services to rural India.** 5. The project is **a Centre-State collaborative project,** with the States contributing free Rights of Way for establishing the Optical Fibre Network. The entire project is being funded by [**Universal service Obligation Fund (USOF)**](https://dot.gov.in/universal-service-obligation-fund-usof) 1. **The larger vision of the project is:** * To establish a highly scalable network infrastructure accessible on a non-discriminatory basis. * To provide on demand, affordable broadband connectivity of 2 Mbps to 20 Mbps for all households and on demand capacity to all institutions. * To realise the vision of Digital India, in partnership with States and the private sector.

Answer 35

* aim to connect all GPs and villages via BharatNet by March 2019, under 2 phases. * Phase one: initial target was 1L; later target raised to 1.3L GPs- inordinate delay in achieving the targets * Phase two: target of providing last mile connectivity to 1.5 L GPs * Under pHase two, only abt 7.45% of target has been made service ready so far * Overall, a sof Jan 2020, only abt 1.33L GPs had been made service ready on both fibre an dsatellite against the target of 2.5L GPs * interstate variations: AndhraP, JH, MH and Odisha are the worst performers- no. of service ready GPs has not even touched 1% in these states- despite pvt agencies implementing the project. IN states where, BSNL is the implementing agency, the delay is worse * reasons: lack of approved detailed project report; non-existent project implementing agencies and non-availability of funds

Answer 36

**HS Code refers to 'Harmonised System code'** * It is a **six-digit identification code**. Of the six digits, the first two denote the HS **Chapter**, the next two give the HS **heading**, and the last two give the HS **subheading**. * Developed by the **World Customs Organization (WCO).** * Called the “**universal economic language**” **for goods**. * It is a **multipurpose international product nomenclature**. * The system currently comprises of **around 5,000 commodity groups**. * The system **helps in harmonising of customs and trade procedures**, thus reducing costs in international trade. **HSN Code**: * HS code is called HSN in **INdia**. Goods are classified into **Harmonized System of Nomenclature or HSN**. It is used up to **8 digit level.** * HSN classification is **widely used for taxation purposes** by helping to **identify** the rate of tax applicable to a specific product in a country that is under review. It **can also be used in calculations that involve claiming benefits.** * HS code are **used by Customs authorities, statistical agencies, and other government regulatory bodies**, to monitor and control the import and export of commodities

Answer 37

in J&K 6.5 km long Border Road Organization (BRO) was the previous implementation agency of the project. The project was however transferred to IL&FS in 2016. APCO will now complete the balance work.

Answer 38

DFCCIL is a corporation run by the Ministry of Railways

Answer 39

are Submarine launched ballistic missile range: 3500 km

Answer 40

govt also allowed 100% FDI through automatic route in commercial coal production. 1. India. one of the largest coal producres in world; o/p of \>720MT in 2018-19. 2. Hwever, import shipments hv surged in recent yrs frm \>190 MT in 2016-17 to 235MT in 2018-19. This has added pressure on CAD 3. It will also encourge pvt players to participate in auctions to be held to reallocate the captive coal blocks that were cancelled by SC in 2014. production frm captive coal blocks has fallen frm \>40MT in 2015 to 25MT in 2019 4. These moves will also facilitate entry of major global mining players such as Rio Tinto ad BHP Billiton,bringing in latest tech, increasing productivity of coal production

Answer 41

1. AGR is the usage and licensing fee that telecom operators are charged by DoT.It is divided into spectrum usage charges and licensing fees, pegged between 3-5 percent and 8 percent respectively. 2. Indian government liberalised the telecom sector as per the National Telecom Policy in 1994, under which licences were given in accordance to the Indian Telegraph Act, 1885. 3. Under the Indian Telegraph Act 1885, telcos are required to pay a fixed annual licence fee for licences granted to them. These used to be set high. 4. National telecom policy 1999 gave these companies an option to migrate from fixed licence fee to revenue sharing fee. As per the new policy, 15 per cent AGR was fixed as a licence fee under the revenue-sharing model, which was later reduced to 13 per cent and then 8 per cent in 2013. 5. Dispute: * DoT claimed revenue share from all earnings under the AGR from the telecom companies. Telecos objected and filed a case in 2003 alleging DoT had illegally included new elements in the definition of AGR, including installation charges, value-added services, interest income, dividend, profit on the sale of assets, insurance claim and forex gain. * Even Govt agencies like TRAI and TDSAT supported Telecos. In 2015, TRAI excluded non-telecom revenue from AGR definition but DoT challenged TRAI's recommendations. * In Oct 2019, SC declared DoT's claim of AGR of 1.47Lcr to be right

Answer 42

will connect Guwahati to the major Northeast cities and major load centers. It is 1, 656 km long. implemented by Indradhanush Gas Grid, a joint venture of state-owned GAIL India, IOC, ONGC, OIL and Numligarh Refinery Ltd. being implemented under ambitious Urja Ganga Gas Pipeline Project. pipeline will also connect with the National Gas Grid through Barauni-Guwahati Gas Pipeline, which is being laid by GAIL.

Answer 43

1. gas pipeline project aims to **provide piped cooking gas** to residents of **Varanasi** and later to millions of people in states like **Bihar, Jharkhand, West Bengal and Odisha.** 2. It is **2,655 km** long gas pipeline project originating at **Jagdishpur** (Uttar Pradesh). The main trunk of pipeline ends to **Haldia** (West Bengal) and **Dhamra** (Odisha). 3. being implemented by **GAIL** 4. According to GAIL, with the Urja Ganga project, **20 lakh households will get PNG connections.** 5. government estimates that around **5 lakh gas cylinders will be sent at rural areas annually.** 6. **Will help the govt** to **raise the share of natural gas in the country’s energy mix to 15% by 2030 from current 6.2%.**

Answer 44

At present, about 16,788 km natural gas pipeline is operational and about 14,239 km gas pipelines are being developed objectives of the National Gas Grid are: * To remove regional imbalance within the country with regard to access for natural gas * To connect gas sources to major demand centres and ensure availability of gas to consumers in various sectors. * Development of City Gas Distribution Networks in various cities for the supply of CNG and PNG. In Dec 2018, PNGRB started **City Gas Distributions(CGD) Project to** distribute gas to around half of the country's population in 26 states and UTs

Answer 45

was one of the recommendations of the Lt. Gen. DB **Shekatkar** (Retd.) **committee to “enhance combat capability and re-balancing defence expenditure.”** How it works? * The **assets owned by government will be operated by the private industries.** * Under the model, the private companies need not make investments on land, machinery and other support systems. * The missions are set by government and the private sectors are given full independence in implementing the missions using their best practices. Advantages: * The main advantage of the model is that the targets are achieved in lesser time frame. * Also, it will boost competitiveness among the private entities paving way to newer technologies.

Answer 46

1. Centre has renamed the Kolkata Port Trust after Bharatiya Jana Sangh founder Dr Syama Prasad Mookerjee. 2. In the early 16th century, the Portuguese first used the present location of the port to anchor their ships, since they found the upper reaches of the Hooghly river, beyond Kolkata, unsafe for navigation. 3. After the abolition of slavery in the British Empire in 1833, this port was used to ship lakhs of Indians as ‘indentured labourers’ to far-flung territories throughout the Empire. 4. The Kolkata port is the only riverine port in the country, situated 203 km from the sea. The river Hooghly, on which it is located, has many sharp bends, and is considered a difficult navigational channel. 5. The Farakka Barrage, built in 1975, reduced some of the port’s woes as Ganga waters were diverted into the Bhagirathi-Hooghly system.

Answer 47

1. to develop eastern region into an integrated steel hub. 2. The eastern belt has the potential to add over 75 percent of the country’s incremental steel capacity envisioned by the National Steel Policy. 3. Through this programme, the government aims to transform logistics and utilities infrastructure which would change the socio-economic landscape in the eastern India.

Answer 48

Increased from 125 GW in 2006 to 373 GW in Sept 2020 * % share of coal: remained the same ~55% * % share of Gas: decreased from 10% to 6.5% * % share of Hydro: decreased from 26% to 12.3% * % share of Renewable Energy sources like soalr, wind and biomass- increaed from 5% to 24% * % share of Nuclear: slightly decreased from 2.7% to 1.8%

Answer 49

India has world's 4th largest coal reserves However, India imported 235 MT of coal last yr 80% of domestic production in India is by Coal India India’s state-run coal giant has been unable to meet growing demand despite abundant resources. It has fallen short of productiontargets in the last few yrs

Answer 50

1. **_Coal sector in India started in 1774_** with the commercial exploitation of the Raniganj Coalfield in West Bengal by the East India Company. 2. However, it was only in 1853 when the sector really surged forward with the **_introduction of steam engine**_, driving the demand for coal. The two World Wars also contributed to _**increase in coal production_**. 3. The National Coal Development Corporation was set up in 1956 to improve the sector further. The nationalisation of the private coal mines was by 2 phases: 1. _The nationalisation of the coking coal mines in 1971-1972._ 2. The _nationalisation of the non-coking coal mines in 1973_. 4. Coal Mines (Nationalization) Act, 1973 was enacted to nationalise all the coal mines in India. It was repealed in 2018. 5. The **demand-supply mismatch** started in 1991 (the liberalisation period) and started widening. This led the government to allow captive mining. mining for own use only. This coal cannot be sold to other players. 6. The 2015 legislation (Coal Mines (Special provisions) Act, 2015) allowed re-entry of private players into the sector. It ***_enabled auctioning of coal mines_***.

Answer 51

1. Until now there were **restrictions on who could bid** for coal mines **only those in power, iron and steel and coal washery business** could bid for mines and the **bidders needed prior experience** of mining in India. 2. This effectively limited the potential bidders to a select circle of players and thus limited the value that the government could extract from the bidding. 3. Second, **end-use restrictions inhibited the development of a domestic market for coal.** 4. the country spent a huge Rs.1,71,000 crore in coal imports last year to buy 235 million tonnes; 5. of that, **100 million tonnes was not substitutable**, as the grade was not available in India. But the **balance 135 million tonnes could have been substituted by domestic production had it been available.**

Answer 52

Mineral Laws (Amendment) Ordinance, 2020 was promulgated in Jan 2020 amends the **Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act)** and the **Coal Mines (Special Provisions) Act, 2015 (CMSP Act)** CMSP Act provides for the auction and allocation of mines whose allocation was cancelled by the Supreme Court in 2014. Features: 1. **Removal of restriction on end-use of coal**: Currently, companies acquiring Schedule II and Schedule III coal mines through auctions can use the coal produced only for specified end-uses such as power generation and steel production. The Ordinance removes this restriction. Companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by CG. They may also utilise such coal in their subsidiaries' plants 2. **100% FDI under automatic route** is allowed 3. **Eligibility for auction of coal and lignite blocks**: The Ordinance clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks. 4. the **competitive bidding process for auction of coal and lignite blocks will not apply to mines considered for allotment to**: (i) a government company or its joint venture for own consumption, sale ; and (ii) a company that has been awarded a power project on the basis of a competitive bid for tariff. 5. **Composite license for prospecting and mining**: Currently, separate licenses are provided for prospecting and mining of coal and lignite, called prospecting license, and mining lease, respectively. The Ordinance adds a **new type of license, called prospecting license-cum-mining lease.** 6. **Transfer of statutory clearances to new bidders**: Currently, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) can be transferred to new persons through auction upon expiry. Such new persons are required to obtain statutory clearances before starting mining operations. The Ordinance provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of **two years**. During this period, the new lessee will be allowed to continue mining operations. However, the new lessee must obtain all the required clearances within this two-year period. 7. **Reallocation after termination of the allocations**: The CMSP Act provides for termination of allotment orders of coal mines in certain cases. The Ordinance adds that such mines may be reallocated through auction or allotment as may be determined by CG 8. **Prior approval from the central government**: Under the MMDR Act, state governments require prior approval of the central government for granting reconnaissance permit, prospecting license, or mining lease for coal and lignite. The act waives off this requirement **in certain cases like when allocation was made by CG**

Answer 53

* Easier terms * Longer maturity periods * Enhanced limits * Access to larger amounts of funds as external commercial borrowings (ECB) * Access to longer tenor funds from insurance companies and pension funds and be eligible to borrow from India Infrastructure Financing Company Limited (IIFCL).

Answer 54

1. Department of Economic Affairs (DEA), MoFin 2. energy, water and sanitation, communication, social and commercial infrastructure, and in 2017, transport and logistics (Roads and bridges, ports, shipyards, inland waterways, airport, railway track, tunnels, viaducts, terminal infrastructure including stations and adjoining commercial infrastructure, Urban public transport and logistics infrastructure) was included as well

Answer 55

1. The **issuer will have to disclose objects of the issue, related-party transactions, valuation, financial details, review of credit rating** and grievance redressal mechanism in the placement document. 2. Sebi has **allowed listed REIT and InvIT to make a rights issue of units.** This is **subject to several conditions** including these investment vehicles obtaining in-principle approval of the stock exchanges for listing of units proposed to be issued etc. 3. With regard to **pricing**, the **investment manager** on behalf of the REIT and InvIT, in consultation **with the lead merchant banker**(s), will decide the issue price before determining the record date. 4. With regard to manner of issuance of unit, **units shall be allotted in the dematerialised form only and shall be listed on the stock exchange** where the units of the REIT and InvIT are listed.

Answer 56

1. by Min of Road, Transport and Highways 2. created by NHAI 3. The portal ‘GATI’ can be accessed from NHAI’s website, and contractors and concessionaires can raise any project-related issues on the platform. 4. The issues raised in the GATI will be daily monitored by a team of officers in NHAI and will be constantly reviewed by the senior officers of NHAI and the Ministry

Answer 57

**_POLICY AMENDMENTS_** 1. RE: delegates CG with the power to prepare and notify a National Renewable Energy Policy “for promotion of generation of electricity from renewable sources”, in consultation with State Governments; seeks to give special attention to hydro power. 2. Cross Border Trade: CG has been delegated with the power to prescribe rules and guidelines to allow and facilitate cross border trade of electricity. 3. ECEA: inserted a new chapter in the Act which prescribes the creation and functioning of the Electricity Contract Enforcement Authority. The existing authorities, i.e. APTEL (*in consti bodies FCs*), CERC and SERCs constituted under the Electricity Act, 2003 do not have the jurisdiction to deal with the matters pertaining to the enforcement of contract, unless such issue pertaining to enforcement is anywhere related to determination of tariffs, licensing, metering and related matters.

Answer 58

1. **Payment Security**: It proposes a mechanism wherein “no electricity shall be scheduled or despatched under such contract unless adequate security of payment as agreed upon by the parties to the contract, has been provided”. 2. Constitution of **selection committee to recommend members for commissions/ authorities**: like Appellate Tribunal and the Chairperson and Members of Central Commission, Electricity Contract Enforcement Authority, State Commissions and Joint Commissions. 3. **Grant of Subsidy mandated**: The benefit of subsidy to be granted directly to the consumervia DBT and the licensee shall charge the consumers as per the tariff determined by the Appropriate Commission. The determination of tariffs shall be fixed by the commission without accounting for subsidies. Further, basis the tariff policies, surcharges and cross subsidies shall be progressively reduced. 4. **Inclusion of Distribution Sub-licensee and Franchisee**: To ease the burden of distribution licensees and in order to **promote some form of demographic specialization**, the **distribution licensees, can appoint another entity** for distribution of electricity on its behalf, within its area of supply. 5. **Enhancement of the powers of the Appellate Tribunal of Electricity**: APTEL is proposed to have the **powers of a High Court** to deal with wilful disobedience of persons and entities **under the Contempt of Courts Act, 1971**. Additionally, any person can appeal the decisions of the Authority which is introduced by this Amendment in front of the APTEL. The **numbers of members at the APTEL have also been proposed to be increased** by the Amendment. 6. **Time limit for adoption of tariff** so determined:Amendment has prescribed a period of **60 days** to adopt the determined tariffs. Failing such timeline of 60 days, the tariff would be deemed to be accepted. Such deemed acceptance is a good method to not allow red-tapism

Answer 59

1. The Authority will be headed by a retired Judge of the High Court. 2. It is proposed to be set-up with powers of the Civil Court. 3. It will enforce performance of contracts related to purchase or sale or transmission of power between a generating, distribution or transmission companies.

Answer 60

States like WB, PJ, Kerala, RJ, JH, CHH, MH, Dehi etc. called the draft Bill a violation of “the spirit of co-operative federalism” and accused the Centre of failure to consult the States on the Bill since electricity is on the Concurrent List. * States are worried about ending subsidies * draft also “divests” the States of their power to fix tariff and hands over the task to a Central government-appointed authority * Another provision makes it compulsory for the State power companies to buy a minimum percentage of renewable energy fixed by the Centre.

Answer 61

* **Multiple discoms in the same area:** * The Act provides for multiple distribution licensees (discoms) to operate in the same area of supply. The Act requires discoms to distribute electricity through their own network. * The Bill removes this requirement. It adds that a discom must provide non-discriminatory open access to its network to all other discoms operating in the same area, on payment of certain charges. The central government may prescribe the criteria for determining the area of supply. * **Power procurement and tariff**: Upon grant of multiple licenses for the same area, the power and associated costs as per the existing power purchase agreements (PPAs) of the existing discoms will be shared between all discoms. * To meet any additional power requirements, a discom may enter into additional PPAs after meeting the obligations of existing agreements. Such additional power need not be shared with other discoms. * Under the Act, in case of multiple discoms in the same area of supply, the SERC is required to specify the maximum ceiling for tariff. The Bill adds that the **SERC will also specify a minimum tariff for such cases. This will prevent price wars that burns a hole in the pockets of DISCOMs** * **Cross-subsidy Balancing Fund:** The Bill adds that upon grant of multiple licenses for the same area, the state government will set up a Cross-subsidy Balancing Fund. Any surplus with a distribution licensee on account of cross-subsidy will be deposited into the fund. The fund will be used to finance deficits in cross-subsidy for other discoms in the same area or any other area. * The Bill specifies that the above matters related to the operation of multiple discoms in the same area will be regulated in accordance with the rules made by the central government under the Act. * **License for distribution in multiple states:** As per the Bill, the CERC will grant licenses for distribution of electricity in more than one state. **To reduce inordinate dealys, the discom applicant will be deemed to have been granted the license if the regulator has not rejected the application within 90 days** * **Payment security**: The Bill provides that **electricity will not be scheduled or despatched if adequate payment security is not provided by the discom**. The central government may prescribe rules regarding payment security. * **Contract enforcement:** The Bill empowers the CERC and SERCs to adjudicate disputes related to the performance of contracts. These refer to contracts related to the sale, purchase, or transmission of electricity. Further, the **Commissions will have powers of a Civil Court.** * **Renewable purchase obligation**: The Act empowers SERCs to specify renewable purchase obligations (RPO) for discoms. RPO refers to the mandate to procure a certain percentage of electricity from renewable sources. The Bill adds that RPO should not be below a minimum percentage prescribed by the central government. Failure to meet RPO will be punishable with a penalty between 25 paise and 50 paise per kilowatt of the shortfall. * **Selection committee for SERCs**: Under the Act, the Chairperson of the Central Electricity Authority or the Chairperson of the CERC is one of the members of the selection committee to recommend appointments to the SERCs. Under the Bill, instead of this person, the central government will nominate a member to the selection committee. The nominee should not be below the rank of Additional Secretary to the central government. * **Composition of Commissions and APTEL:** The Bill increases the number of members (including the chairperson) in SERCs from three to four. Further, at least one member in both the CERC and SERCs must be from law background. Under the Act, Appellate Tribunal for Electricity (APTEL) consists of a chairperson and three other members. The Bill instead provides that the APTEL will have three or more members, as may be prescribed by the central government. * If any state commission is unable to perform its functions, its functions can be entrusted to any other state commission or a joint commission.

Answer 62

* **The Electricity Amendment Bill, 2022** aims at giving **multiple players open access to** [**distribution networks of power suppliers**](https://www.drishtiias.com/daily-updates/daily-news-editorials/power-sector-discoms-and-rdss) and also allowing **consumers to choose any service provider.** * facilitate the **use of distribution networks** by all licensees, under provisions of **non-discriminatory "open access”** with the objective of **enabling competition, enhancing efficiency** of distribution licensees for improving services to consumers and **ensuring sustainability** of the power sector. * To make provisions vis-à-vis **graded revision in tariff** over a year besides **mandatory fixing of maximum ceiling and minimum tariff** by the appropriate commission. * To convert the rate of punishment **from imprisonment or fine** to **fine.** * The bill allows the use of **additional cross-subsidy** that is collected from industrial and commercial users in one area, for subsidising for the poor in other areas. * With **India aiming to achieve 50% of its installed power capacity from renewables** by 2030, the government is of the view that the push for **Renewable Purchase Obligations (RPOs) mentioned in the bill will augment India's power demand**, which is expected to double in the next eight years while moving to achieve green targets fixed as per the [**Paris and Glasgow Agreements.**](https://www.drishtiias.com/daily-news-editorials/cop26-achievements-and-scope) * states reneging on power purchase agreements (PPAs), especially those with renewable power producers. Renegotiation of such PPAs has become a fraught issue. The Bill states that if PPAs are renegotiated, the affected party has to be compensated within 90 days from the date of submission of the petition. * new tariffs have to be made applicable from the beginning of the financial year. New tariffs often come into force in the middle of the financial year (due to delays in the issuing of orders by SERCs). This means that discoms do not earn their full revenues leading to cash flow problems. * Bill has proposed a reduction in the time for processing tariff petitions from 120 days to 90 days. This is a welcome step * the Bill talks about ensuring a payment security mechanism before dispatch. This will ensure that dues to generators do not swell up to unmanageable levels * the Bill proposes to give more teeth to the national load dispatcher. We need to strengthen the load dispatcher for the smooth functioning of the grid, especially with a huge renewable capacity — where intermittency of generation is a major issue — in the offing.

Answer 63

* **Federal Structure:**[**The Constitution**](https://www.drishtiias.com/daily-updates/daily-news-analysis/constitution-day-26th-november)lists ‘Electricity’ as Item 38 of[**List III (Concurrent)**](https://www.drishtiias.com/daily-updates/daily-news-analysis/states-planning-to-bypass-central-legislation#:~:text=Concurrent%20List%3A%20Both%2C%20the%20Parliament,is%20desirable%20but%20not%20essential.) of the **Seventh Schedule**. With the proposed amendments, the[**federal structure**](https://www.drishtiias.com/daily-updates/daily-news-editorials/challenges-to-a-federal-india)**of Indian polity** is being violated. * Clause 5 amends Section 14 of the parent Act that deals with the criteria for electricity distributors. The amendment empowers the Central Government to prescribe the criteria. power distribution has usually been a domain under SGs * plus dominance of centre in appointments plus setting floor levels of prices and RPOs etc. * clause pertaining to applicants seeking a distribution licence in more than one state, CERC instead of SERC will grant the license * the Bill has a provision empowering the Centre to give directions directly to the SERCs. Till now, the CERC received instructions from the Centre and the SERCs were under the state. The new Bill enables the Centre to bypass state governments. * *_Government has maintained that_ **_no provision in the bill reduces powers of the states_** _to regulate the_ **_power distribution sector, payment of power subsidy._*** * **Electricity Subsidy:** * **Free power for farmers** and [**Below Poverty Line**](https://www.drishtiias.com/to-the-points/Paper2/poverty-9) population will go away eventually. With multiple pvt players in the pool, the rural and farming sector may be forgotten or just left for public DISCOMs. * **Differential Distribution:** * Only **government discoms or distribution companies** will have universal power supply obligations. Therefore, it is likely that **private licensees** will prefer to supply the electricity in **profit-making areas** – to industrial and commercial consumers. Once this happens, **profit-making areas will be snatched** from government discoms and they will become **loss-making companies.** * It will lead to a major loss for government distribution companies, eventually helping to **establish the monopoly of a few private parties in the country’s power sector.** * **Operational issue** * About 80% of the cost of supply is on account of power purchase, **which will be the same for all distribution licensees operating in an area.** * Having different retailers will **open a plethora of operational issues.** * By bringing in more retailers or distribution licensees, **the quality of service or price is not going to be any different.** * *_government has indicated that_* ***_multiple discoms can already exist in the same area_*** *_and the_* ***_bill only simplifies the process_*** *_to ensure that competition leads to better operations and service._*

Answer 64

* The feasibility of multiple licences is, however, another issue. The fact is that till we do away with commercial losses, remove cross-subsidies and have complete metering right from the periphery of a discom to the consumer, we really cannot have multiple licences. * Even if an applicant applies for licences in several states, they should be processed by the SERCs concerned — wherever necessary, these agencies should consult each other. Moreover, the agency that grants the licence should also administer it. * the fears of encroachment did not begin with the Bill. Concerns were raised when earlier versions of the Bill were introduced. The enactment of the Electricity (Rights of Consumers) Rules, 2020 aggravated the fears. These rules spoke of matters solely related to distribution which, no doubt, is a state subject. * government had declared the Railways to be a deemed distribution licensee in 2014 under the third provison of Section 14 of the Electricity Act 2003. *In layman’s terms, this proviso states that a government department transmitting, distributing or trading in electricity will be deemed as a licencee under the Act. Since the railways was never transmitting, distributing or trading in electricity but was a bulk consumer, it should not have qualified to be a deemed distribution licensee. The railways does not perform several other tasks expected of a distribution licencee. The submission of a tariff petition for instance.* The exception made for the railways had led to demands for a similar licence from entities such as the metro rail and ports. This was the time to take corrective measures.

Answer 65

constituted in 2009 constituted as per Ministry of Power (MOP) notification is the apex body to ensure integrated operation of the national power system.

Answer 66

On July 1, 2020, the Indian Railways launched the formal process of inviting private parties to run trains on the Indian railway system. Bids were invited. there were no bids for nine clusters and only two bids for three clusters. Even for these three clusters, the only serious bid was by Indian Railways’ (IR) own company causes: 1. Lumpiness of investments before a single passenger can be carried: Train sets have to be purchased without really knowing how much traffic the service will be able to attract in the face of rising competition from airlines. 2. A concession period of 35 yrs is too long. 3. IR does not guarantee the investor that, in case the concession fails, it will acquire the train sets. 4. absence of a regulator for resolving disputes. The proposed independent engineer is far from satisfactory. Suggestions: 1. lumpiness of investment in train sets can be eliminated by establishing a company that leases rolling stock not only to concessioners but also to IR. IRFC, which is already into leasing rolling stock, can be that company. 2. reducing the concession period to a more reasonable 10-15 yrs 3. The rolling stock company can also be the window for bringing in new technology, preferably by purchasing from those who manufacture in India in collaboration with one of IR’s production units and are willing to transfer the technology. 4. An arrangement that gives access to IR’s rolling stock market is the only way to compel global players to share technology and form joint ventures with Indian companies. 5. establish a regulator

Answer 67

1. High Legacy debt: : DISCOMs have not been able to clear their past debts to Generators. The PFC’s Report on Utility Workings for 2018-19 showed dues to generators were ₹2,27,000 crore, well before COVID-19. As per and Crisil report predicts 30 per cent increase in their debt to ₹4.5-lakh crore in coming times. 2. high AT&C losses: avg 21.4% compared to 6-7% in UK and US; several discoms have losses in excess of 40%. It is common knowledge that it is possible to bring down losses from 40 per cent to about 15 per cent without any significant investments in infrastructure. Investments, however, would be required to bring down losses further to a single-digit level since all low-hanging fruits would have been consumed by then. 3. Billing Issues 4. issues related to tariffs: lack of cost reflective tariffs (gap between the average per-unit cost of supply (ACS) and average revenue realised (ARR)) and distorted cross subsidies (leading to may industries switching to captive power generation) and absence of tariff hikes 5. state monopoly 6. delays in subsidy and other payment disbursals y states like andhraP, Chh, KN, PJ and RJ, esp in the wake of pandemic 7. other losses: Expensive thermal power purchase agreements (PPAs), and a lack of modern technology and infrastructure development.

Answer 68

GoI launched Ujwal DISCOM Assurance Yojana (UDAY) in 2015 to turn around the precarious fin position of state DISCOMs need: by March 2015, discoms' accumulated losses were approximately Rs 3.8 lakh crore — more than 3.5% of the GDP. UDAY is basically a debt restructuring plan for the DISCOMs and was optional for the states. components: 1. takeover of discoms debt by SGs: SGs took over 75% of the debt of their discoms and issued lower-interest bonds to service the rest of the debt. 2. In return, discoms were given target dates (2017-19) to meet efficiency parameters: AT&C losses were to be reduced from 22% to 15% 3. This has to be matched up by timely tariff revisions and elimination of the gap between ACS and ARR by 2019 4. Improvement of operational efficiency through compulsory smart metering, up-gradation of transformers, meters, etc. Also, the adoption of energy efficiency measures like the promotion of efficient LED bulbs, agricultural pumps, fans & air-conditioners would be initiated. 5. CG did not grant any money to SGs for the purpose bt promised to help the states in reducing the cost of power through coal linkage rationalisation, etc.

Answer 69

* Book losses of discoms reduced from Rs 51,562 crore in the financial year 2016 to Rs 15,132 crore in 2018. However, the losses in 2019 have nearly doubled to Rs 28,036 crore vis-a-vis 2018. A recent report of Niti Aayog has assessed the losses to be about Rs 90,000 crore in 2020-21. This points that discoms are lagging behind in eliminating the ACS-ARR gap — the same issue that had led to the floundering of the previous two schemes - Accelerated Power Development and Reforms Programme (APDRP) and Restructured APDRP (R-APDRP). * Discoms have also missed the year 2019 UDAY target to bring down their (AT&C) losses to 15%. * According to the government’s UDAY portal, AT&C losses were 18.9% and ACS-ARR gap was Rs 0.42/unit at the end of FY20. In FY16, when the scheme was launched, AT&C losses were 20.7% and the ACS-ARR gap was Rs 0.59/unit. * government has cited factors such as inadequate hikes in power tariffs, inadequate rise in ‘open access’ transactions and outstanding dues accumulating from state government departments among the reasons for the discoms not meeting the UDAY targets. * states have recorded improvements in subsidy disbursals, with all states except Himachal Pradesh, Andhra Pradesh, Karnataka, Rajasthan, Telangana and Punjab releasing entire subsidy booked by their respective discoms in FY18

Answer 70

* aim:improve the operational efficiencies and financial sustainability of all DISCOMs excluding pvt sector * schemes subsumed: Integrated power Deveopment Scheme + DDUGJY * scheme will provide conditional financial assistance to DISCOMs for strengthening of supply infrastructure. * eligibility for funding: DISCOMs have to score a minimum of 60% of marks and clear a minimum bar in respect to certain performance parameters like aggregate AT&C losses, ACS-ARR gap, infrastr upgrade performance, consumer services, hrs of supply, coporate governance etc. * scheme available till yr 2025-26 * nodal agencies: REC Ltd and Power Fin Corporation * Fin outlay: 3.03 L Cr * Financial assistance for * prepaid smart metering fr all consumers except Agri consumers: *Grant of Rs 900 or 15% (whichever is lower) of the cost per consumer meter worked out for the whole project (Rs 1350 or 22.5% for Special Category States)*. * for works other than smart metering: Maximum financial assistance given to DISCOMs will be 60% of the approved cost (90% for Special Category States) * In addition, the DISCOMs can also avail of an additional special incentive of 50% of the aforementioned grants if they install the targeted number of Smart meters by December 2023. * feeder segregation for unsegregated feeders * Convergence with the Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM-KUSUM) Scheme to solarize all feeders

Answer 71

inherent problems with parameters like ACS and ARR since they keep fluctuating and it is very difficult to fathom their trend on a quarter-wise basis, rendering the release of funds to be tricky and cumbersome. In the scheme now announced by the government, monitoring will be all the more complex since about 26 parameters will be taken into consideration and assigned a score. for some of the parameters, it may be difficult to assign a score across discoms which may lead to some amount of subjectivity. Some examples being — providing accurate energy accounts, tariff reforms initiated, consumer rights and grievance redressal handled. Some of the parameters are even questionable, for instance, liquidation of regulatory assets, since these are mandated by the regulatory commissions and therefore, the discoms have no role to play in them.

Answer 72

* an alternate approach: providing only transitional financial support to all discoms, which are privatised under the PPP mode. Case study of Delhi, A transitional support of Rs 3,450 crore spread over five years proved to be exceedingly beneficial since it allowed the privatised utilities some breathing time to bring down their losses. The onus would be on the privatised utility to use this support judiciously under the supervision of the regulatory commission. Targets of loss reduction can be laid down on a year-wise basis and if these targets are not met, the privatised utilities would have to bear the loss. Incentives could also be thought of in case there was over-achievement vis-à-vis the targets. This is exactly the approach followed in the case of Delhi. * Making fiscal headroom through subsidy reductiono Taking lessons from the existing Direct Benefit Transfer (DBT) models in Andhra Pradesh, Madhya Pradesh, Punjab, etc. Developing framework for targeting of subsidies to domestic and agriculture consumers * Mandate No Dues Certificates for state departments to avoid dues build up. * Issuing of bonds through securitization of receivables against the DISCOM’s regulatory assets as has been done in Rajasthan. * Inflation adjusted tariff hikes.

Answer 73

* India’s largest floating PV project of 25 MW has been commissioned by NTPC on the reservoir of its Simhadri thermal station in Visakhapatnam, Andhra Pradesh. * Once operational it is expected to minimize 46,000 tons of CO2 annually. It is also believed to conserve 1,364 million liters of water per annum. * This is also the first solar project to be set up under the Flexibilisation Scheme, notified by the Government of India in 2018. advantages of floating power plants * acc to WB, floating solar plants represent “new opportunities for scaling up solar generating capacity, especially in countries with high population density and competing uses for available land” * benefits of “improved energy yield thanks to the cooling effects of water and the decreased presence of dust” * the water saving comes from reduced evaporation as solar panels cover the surface of a reservoir and absorb the rays of the sun while at the same time limiting “the evaporative effects of wind”.

Answer 74

announced by CG in Aug 2021- an effort to list out the government’s infrastructure assets to be leased out over the next four-years. Plans to lease out CG assets valued at ~6L Crover a four-year period ending in 2024-25, with the government looking to mop up Rs 88,000 crore in the ongoing FY (2021-22). The ownership of the assets monetised, though, will remain with the government, with the private players taking on the operational risk. At its core, the idea is to lease out brownfield projects, proceeds from which can be used to finance greenfield projects (the period for NMP is co-terminus with the balance period under National Infrastructure Pipeline (NIP) ) While roads, railways and power account for around 65 per cent of the proceeds of the programme, the list of assets detailed is spread across sectors such as telecom, aviation, mining, ports, natural gas and petroleum product pipelines and warehousing Currently, only assets of CG line ministries and CPSEs in infrastructure sectors have been included. Monetization through disinvestment and monetization of non-core assets have not been included in the NMP. Lease will be based on structured partnerships under defined contractual frameworks with strict KPIs and performance standards

Answer 75

* Lack of identifiable revenue streams in various assets. * Level of capacity utilisation in gas and petroleum pipeline networks. * Dispute resolution mechanism. * Regulated tariffs in power sector assets. * Low interest among investors in national highways below four lanes. * The lack of independent sectoral regulators. considering the regular shortfalls in the government’s disinvestment collections, the programme’s success will require careful and continuous monitoring, and addressing of concerns raised by private players. some experts have suggested that the government should look at addressing the concerns raised around PPPs. The recent experience of the Indian Railways when it invited private players to run passenger trains has not been encouraging — reportedly, only two players participated in the process, one of which is a government entity.

Answer 76

**_Zojila tunnel:_** At 14.15 km, the Zojila tunnel will be India’s longest road tunnel, and Asia’s longest bi-directional tunnel. When complete, the Zojila tunnel will allow travel between Srinagar and Ladakh throughout the year. The distance from Baltal to Minamarg will come down to 13 km from the present 40 km, travel time is expected to be cut by an hour and a half, and the journey is expected be less strenuous. The project is expected to lead to integrated development of both Jammu and Kashmir and Ladakh. **_Z-Morh tunnel:_** The 6.5 km-long Z-Morh Tunnel between Gagangir and Sonmarg will provide connectivity in all weather conditions between Srinagar and Kargil It is named for the Z-shaped stretch of road between Sonmarg and Gagangir that the tunnel will replace. the strategically crucial Z-Morh tunnel will ensure that Sonmarg town in Jammu and Kashmir remains connected as well as supplies are maintained all year round.

Answer 77

shortage stats: * India’s coal fired thermal power plants account for 208.8 GW or 54 per cent of India’s 388 GW installed generation capacity. * The average level of coal stocks at an increasing number of India’s thermal power plants have come down to four days worth of stock compared to the govt recommendations that TPPs hold 14 days worth of coal stock. * In total, plants with a power generation capacity of 132 Gigawatts (1GW is 1,000 MW) of the 165 GW of capacity monitored daily, had critical or super critical levels of coal stock. * shortage of coal is more acute in non-pithead plants or plants which are not located close to coal mines Causes: * [**A sharp uptick in power demand**](https://indianexpress.com/article/business/economy/critical-coal-levels-at-most-thermal-plants-as-demand-surges-7547077/)**:** India consumed 124 billion units of power in August 2021 compared to 106 billion units of power in August 2019 i.e. even higher than pre pandemic level * recovery from pandemic, and * government has connected an additional 28.2 million households and these households are buying lights, fans and television sets leading to an increase in power demand, leading to uptick in daily energy demand across the country * Coal fired thermal power plants have also supplied a higher proportion of the increase in demand: share of TPPs in India’s power mix increasing to 66.4% from 61.9% in 2019. * lower than normal stock accumulation by thermal power plants in the April-June period * continuous rainfall in coal bearing areas in August and September which led to lower production and fewer despatches of coal from coal mines. * A consistent move to lower imports coupled with high international prices of coal have also led to plants cutting imports.

Answer 78

* Commercial mining of coal allowed, with 50 blocks to be offered to the private sector. * Entry norms will be liberalised as it has done away with the regulation requiring power plants to use “washed” coal. * Coal blocks to be offered to private companies on revenue sharing basis in place of fixed cost. * [**Coal gasification/liquefaction**](https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.insightsonindia.com/wp-content/uploads/2017/11/Coal-and-Power-Shortage-in-India.pdf&ved=2ahUKEwjkwrH1z7fzAhUf8HMBHTnEDccQFnoECAQQAQ&usg=AOvVaw3dJlixlgySgAHrf5WvBjii) to be incentivised through rebate in revenue share. * [**Coal bed methane (CBM)**](https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.insightsonindia.com/wp-content/uploads/2017/11/Coal-and-Power-Shortage-in-India.pdf&ved=2ahUKEwjkwrH1z7fzAhUf8HMBHTnEDccQFnoECAQQAQ&usg=AOvVaw3dJlixlgySgAHrf5WvBjii) extraction rights to be auctioned from Coal India’s coal mines. * The “captive mines”, will now be allowed to sell 50% of their annual output in the open market. The Ministry of Coal has amended Mineral Concession Rules, 1960 in this regard. (Oct 2021)

Answer 79

It is **the process of producing syngas,** a mixture consisting carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2), natural gas (CH4), and water vapour (H2O). * During gasification, coal is blown with oxygen and steam while also being heated under high pressure. During the reaction, oxygen and water molecules oxidize the coal and produce syngas. * **Benefits of gasification:** 1. Transporting gas is a lot cheaper than transporting coal. 2. Help address local pollution problems. 3. Has greater efficiency than conventional coal-burning because it can effectively use the gases twice: the coal gases are first cleansed of impurities and fired in a turbine to generate electricity. The exhaust heat from the gas turbine can be captured and used to generate steam for a steam turbine-generator. * **Concerns and challenges:** 1. Coal gasification is one of the **more water-intensive forms of energy production.** 2. There are also **concerns about water contamination, land subsidence and disposing of waste water safely.**

Answer 80

Also called **Coal to Liquid (CTL) technology,** it is **an alternative route to produce diesel and gasoline** and makes economic sense only in a world of high crude oil prices. * The **process involves** gasification of coal, which in turn will produce synthetic gas (a mix of CO+H2). The synthetic gas can be liquefied to its fuel equivalent in presence of cobalt/iron-based catalysts at higher pressure and temperature. * However, **liquefied coal emits twice as much CO2 as burning oil. It also emits a large volume of SO2.** **Benefits of liquefaction:** The CO2 emissions are more readily and cheaply captured from CTL plants than from conventional coal-fired power stations. The captured CO2 can be transported and injected into underground storage reservoirs (a procedure known as “carbon capture and storage”—CCS—or “geosequestration”).

Answer 81

1. India aims for 100 million tonnes (MT) coal gasification by 2030 with investments worth over Rs. 4 lakh crores. 2. For encouraging use of clean sources of fuel, government has provided for a concession of 20% on revenue share of coal used for gasification. This will boost production of synthetic natural gas, energy fuel, urea for fertilisers and production of other chemicals.

Answer 82

* **Captive Mines:** Captive mines are the mines that are owned by companies. The coal or mineral produced from these mines is for the exclusive use of the owner company of the mines. The company cannot sell coal or mineral outside. Some electricity generation companies used to have captive mines. * **Non- Captive Mines:** Non-captive Mines are mines from which the produced coals of minerals could be used for its own consumption and as well as for selling it. **Mines and Minerals (Development and Regulation) Act, 1957** empowered central to reserve any mine for the particular end-use. These were the captive mines. Now, **the Mines and Minerals (Development and Regulation) Amendment Bill, 2021** removed the distinction. Now captive mines will also be able to sell their stock. **Why in News?** The “captive mines”, will now be allowed to sell 50% of their annual output in the open market. The Ministry of Coal has amended Mineral Concession Rules, 1960 in this regard.

Answer 83

“PM GatiShakti — [**National Master Plan**](https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.insightsonindia.com/tag/gati-shakti-national-master-plan/&ved=2ahUKEwi5y9_nis7zAhVW7HMBHRr2Bp0QFnoECAgQAQ&usg=AOvVaw2Fo6ccRHtwbs11wWHMMo03)” for infrastructure development * It aims to boost multimodal connectivity and drive down logistics costs. * The projects will be designed and executed with a **common vision** and will incorporate the infrastructure schemes of various ministries and state governments such as the Bharatmala road project, Sagarmala waterways plan, ports and the UDAN scheme. It is **a digital platform that connects 16 ministries** — including Roads and Highways, Railways, Shipping, Petroleum and Gas, Power, Telecom, Shipping, and Aviation. It aims to ensure **holistic planning and execution of infrastructure projects.** * The portal will offer 200 layers of geospatial data, including on existing infrastructure such as roads, highways, railways, and toll plazas, as well as geographic information about forests, rivers and district boundaries to aid in planning and obtaining clearances. * The portal will also allow various government departments to track, in real time and at one centralised place, the progress of various projects, especially those with multi-sectoral and multi-regional impact. **Significance:** The objective is to ensure that “each and every department now have visibility of each other’s activities providing critical data while planning and execution of projects in a comprehensive manner. * Through this, **different departments will be able to prioritise their projects through cross–sectoral interactions”. Issues like** _newly-built roads being dug up by the water department to lay pipes. can be avoided by proper infrastr planning_ * _dealy and lack of coordination in clearances create sluggishness in public spending. For eg._ in the first seven months of the current fiscal, capital expenditure was 45.7 per cent of the budget estimate, indicating sluggishness spending in most key infrastructure ministries. * The planned multi-modal connectivity of key economic zones such as agriculture, fishing clusters, electronic parks, textile and pharmaceutical clusters, industrial and defence corridors will ensure the seamless movement of goods and people across the country resulting in much-needed improvement in logistics efficiency and cost competitiveness. * It will also **boost last-mile connectivity** and bringing down logistics costs with integrated planning and reducing implementation overlaps. * It will also **_offer satellite imagery for monitoring of projects**_. It is also expected to help SGs give commitments to investors regarding _**timeframes for the creation of infrastructure._**

Answer 84

Acc to MoSPI, in the beginning of 2021, 1,687 Union Government projects under implementation, valued more than Rs 21.45 lakh crore, had run into cost overrun of nearly 20 percent, largely because of their delays. ## Footnote The reason for delays include underestimation of original project cost, spiralling land acquisition cost, delays in environment, forest and wildlife clearances and industrial licensing permission, road crossing of pipelines/transmission lines, shifting of utilities, delays in the tie-up of project financing, delays in finalisation of detailed engineering, etc. In addition, there are bottlenecks at the State Government level such as issues in land acquisition and removal of encroachments, relief and rehabilitation planning and implementation, timely issuance of no objection certificate, necessary power and water supply, and work order related issues.

Answer 85

Currently, any inter-ministerial issues that arise relating to a project are addressed in regular meetings of infrastructure-related ministries. These issues are raised in advance, and then taken up. Through the **_PM PRAGATI (Pro-Active Governance And Timely Implementation) portal_**, many issues were resolved even prior to such meetings. Under the Master PLan, A project monitoring group under the Department for Promotion of Industry and Internal Trade (DPIIT) will m_onitor the progress of key projects in real time, and report any inter-ministerial issues to an empowered group of ministers, who will then aim to resolve these._ The _GatiShakti portal would help reduce the human intervention required as ministries will be in constant touch, and projects_ will be reviewed by the project monitoring group in real time.

Answer 86

launched by NITI Aayog, developed in collaboration with ISRO Geospatial Energy Map, **enables visualisation of energy installations- conventional and otherwise,** district-wise data on renewable energy power plants and renewable energy resource potential, etc **through 27 thematic layers.** The **map attempts to identify and locate all primary and secondary sources of energy** and their transportation/transmission networks to provide a comprehensive view of energy production and distribution in a country. * It is a unique effort **aimed at integrating energy data scattered across multiple organizations** and to present it in a consolidated, visually appealing graphical manner. * It leverages **latest advancements in web-GIS technology and open-source software** to make it interactive and user friendly. * The Geospatial Energy Map of India **will be useful in planning and making investment decisions**. * It will **also aid in disaster management** using available energy assets.

Answer 87

* Ude Desh Ka Aam Naagrik (UDAN) scheme is aimed at enhancing connectivity to remote and regional areas of the country and making air travel affordable. * It is a key component of Centre’s [**National Civil Aviation Policy**](https://en.m.wikipedia.org/wiki/National_Civil_Aviation_Policy#:~:text=National%20Civil%20Aviation%20Policy%20(NCAP,Cabinet%20on%2015%20June%2C%202016.&text=The%20UDAN%20Scheme%20which%20was,Civil%20Aviation%20Policy%20(NCAP).) **launched in 2016** * **Obj:** * develop the **regional aviation market**. * provide **affordable, economically viable and profitable air travel** on regional routes to the **common man** even in small towns. * Under the scheme, nearly half of the seats in Udan flights are offered at subsidised fares, and the participating carriers are provided a certain amount of [**viability gap funding (VGF)**](https://www.insightsonindia.com/2020/08/28/insights-daily-current-affairs-pib-summary-28-august-2020/) **–** an amount shared between the Centre and the concerned states. * The scheme envisages **providing connectivity to un-served and underserved airports of the country** through the revival of existing air-strips and airports. * The scheme will be **jointly funded by the central government and state governments.** * The scheme will run for 10 years and can be extended thereafter. * So far, the AAI has awarded 948 routes under UDAN, of which 403 routes have taken off that connect 65 airports and 8 heliports. However, some of the routes launched have discontinued * The 4th round of UDAN was launched in December 2019 with a special focus on North-Eastern Regions, Hilly States, and Islands. * Under the [**KRISHI UDAN Scheme**](https://www.drishtiias.com/daily-updates/daily-news-analysis/100th-kisan-rail), 16 airports have been identified to enhance the export opportunities of the North East region establishing dual benefits of enhancement of cargo movements and exports. * UDAN 1.0 saw incorporation of 70 airports including 36 newly made operational ones. UDAN 3.0 included tourism routes and included routes in NE. UDAN 4.1 **focuses on connecting smaller airports, along with special helicopter and seaplane routes.**

Answer 88

So far, the AAI has awarded 948 routes under UDAN, of which 403 routes have taken off that connect 65 airports and 8 heliports. However, some of the routes launched have discontinued What have been the challenges? ● aviation industry is a difficult ecosystem to be in considering the low yields and high operating costs. The situation is further exacerbated by delays in obtaining commuter operator permits by new airline entrants, non-availability of suitable aircraft, aircraft leasing issues, long lead time for delivery and thorny maintenance issues of small aircraft as well as bothersome problems in procuring spares from abroad. ● Poor financial health of many smaller, regional carriers have been a bane for the scheme. ● Many players don’t have more than one or two planes and they are often poorly maintained. New planes are too expensive for these smaller players. ● The pandemic has made the going tougher. Out of these 403 routes, a whopping majority of 300 routes have been affected due to poor demand. The civil aviation ministry, consequently, has stepped up and decided to extend the benefits under the scheme by a year for those routes which were bound to complete their tenure by December 2021.

Answer 89

1. Studies estimate that **_logistics costs in India_** are _about_ **_13-14% of GDP_** _as against about 7-8% of GDP in developed economies._ 2. The target is to reduce it to about 10% in the coming years with concrete measures. India slipped from 35 in 2016 to 44 in 2018 in logistics performance index of world bank. 3. As per Economic Survey 2017-18, Indian logistics sector provides livelihood to more than 22 million people and is expected to grow at rate of 10.5% over the next 5 years. 4. Improving this sector will facilitate 10% decrease in indirect logistics cost leading to growth of 5 to 8% in exports. 5. India is targeting an _increase in the total cargo handled at Indian ports_ to 1,759 million tonnes per annum (MTPA) by 2024-25, up from 1,282 MTPA in 2020 — as well as **_increasing cargo movement on national waterways_** to 95 million tonnes from about 74 million tonnes in the same period. 6. government was _aiming at adding over 200 airports, helipads, and water aerodromes over the next 4-5 years beside nearly doubling the existing natural gas pipeline network_, which is about 19,000 km. Reasons of inefficient logistics in India 1. Lack of basic infrastructure 2. The sector continues to be highly unorganized. India’s logistics sector is highly defragmented and very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10000 commodities being stakeholders in it. 3. India also has a skewed modal transportation mix, with 60% of freight moving on roads, which is significantly larger than in key developed economies.

Answer 90

* The Bill provides for proper surveillance, inspection, operation and maintenance of all specified dams in the country to ensure their safe functioning. * The Bill provides for constitution of **a National Committee on Dam Safety** which shall evolve dam safety policies and recommend necessary regulations as may be required for the purpose. * The Bill provides for establishment of **National Dam Safety Authority** as a regulatory body which shall discharge functions to implement the policy, guidelines and standards for dam safety in the country. * The Bill provides for constitution of **a State Committee on Dam Safety** by State Government. Significance: * The Bill will help all the States and Union Territories of India to adopt uniform dam safety procedures * It addresses all issues concerning dam safety including regular inspection of dams, Emergency Action Plan, comprehensive dam safety review, adequate repair and maintenance funds for dam safety, Instrumentation and Safety Manuals. * It lays onus of dam safety on the dam owner and provides for penal provisions for commission and omission of certain acts.

Answer 91

* Over the last fifty years, India has invested substantially in dams and related infrastructures, and ranks third after USA and China in the number of large dams. 5254 large dams are in operation in the country currently and another 447 are under construction. Besides there are thousands of medium and small dams * The Central Water Commission, through the National Committee on Dam Safety (NCDS), Central Dam Safety Organization (CDSO) and State Dam Safety Organizations (SDSO) has been making constant endeavours for dam safety, but these organizations do not have any statutory powers and are only advisory in nature. * This can be a matter of concern, especially since about 75 percent of the large dams in India are more than 25 years old and about 164 dams are more than 100 years old. * India has had 42 dam failures in the past

Answer 92

● The bill is too focused on structural safety and not on operational safety. ● There is inadequate compensation to the people affected by dams. ● There is need for an independent regulator as well as for a precise definition of stakeholders. How the law goes against the spirit of federalism? ● Many states say it encroaches upon the sovereignty of States to manage their dams, and violates the principles of federalism enshrined in the Constitution. They see it as an attempt by the Centre to consolidate power in the guise of safety concerns. ● Under the constitution, dams would squarely fall within the legislative domain of State governments. The power of the Centre under Entry 56 of List I (Union list) was only with respect to inter-State rivers or river valleys and nothing more

Answer 93

Socially responsible investing (SRI) is **an investing strategy that aims to generate both social change and financial returns for an investor**. Socially responsible investments can include companies making a positive sustainable or social impact, such as a solar energy company, and exclude those making a negative impact. Socially responsible investments include eschewing investments in companies that produce or sell addictive substances (like alcohol, gambling, and tobacco) in favor of seeking out companies that are engaged in social justice, environmental sustainability, and alternative energy/clean technology efforts. There are two inherent goals of socially responsible investing: social impact and financial gain. instances: 1. In 1758, the Quaker [Philadelphia](https://en.wikipedia.org/wiki/Philadelphia,_Pennsylvania) [Yearly Meeting](https://en.wikipedia.org/wiki/Yearly_Meeting) prohibited members from participating in the [slave trade](https://en.wikipedia.org/wiki/Slave_trade) 2. modern era of socially responsible investing evolved during the political climate of the 1960s. Economic development projects started or managed by Dr. Martin Luther King, like the [Montgomery bus boycott](https://en.wikipedia.org/wiki/Montgomery_bus_boycott) and the [Operation Breadbasket](https://en.wikipedia.org/wiki/Operation_Breadbasket) Project in Chicago, established the beginning model for socially responsible investing efforts. 3. Swadeshi movement can be viewed as SRI 4. SRI helped in ending apartheid in South Africa. investors divested from companies operating in SA. 5. 1969 at The Dow Chemical Company — when investors opposed the company’s production of napalm, the chemical deployed by the US army in Vietnam with horrific consequences. 6. In 2020, the Forum for Sustainable and Responsible Investment in the USA estimated that 33 per cent of the total of $51.4 trillion under professional management is now invested using some responsible and impact investing criteria.

Answer 94

* It is a centrally-sponsored and funded the Road and Highways project. * It is an umbrella program for the highways sector that focuses on optimizing the efficiency of freight and passenger movement across the country by bridging critical infrastructure. * Obj: * Optimizing efficiency of the movement of goods and people across the country. * Generating large number of direct and indirect employment opportunities * Connecting 550 Districts in the country through NH linkages. * Under **Phase-I of Bharatmala Pariyojana,** implementation of **34,800 km of national highways in 5 years** (from 2017 to 2022) has been approved at an estimated outlay of **Rs. 5,35,000 crore.** making it the single largest outlay for a government road construction scheme. **Phase-II** envisages around **48,000 km of road network across India by 2024.** * The ambitious umbrella programme has subsumed all existing Highway Projects including the flagship National Highways Development Project (NHDP), launched in 1998. * Components: * Economic Corridor of 9000km * INter corridor and Feeder Route 6000km to ensure holistic connectivity * National Corridors Efficiency IMprovement: calls for **improvement in efficiency of existing corridors** through development of Multimodal Logistics Parks and elimination of choke points. * Border Roads and INterational Connectivity * Coastal Roads and Port connectivity * Green FIeld Expressways * National HIghway Developmet Projects * focus on **improving connectivity in North East** and leveraging synergies with Inland Waterways. * It emphasis on the **use of technology & scientific planning** for project preparation and asset monitoring. * It calls for seamless connectivity with **neighboring countries:** * 24 Integrated check posts (ICPs) identified * Transit through Bangladesh to improve North East connectivity * Integrating Bangladesh – Bhutan – Nepal and Myanmar – Thailand corridors which will make NorthEast hub of East Asia

Answer 95

A Flagship project of GoI under which Close to 400 projects, costing around 8 lakh crore rupees would be implemented under the project in the next two decades. Components: * **Port Modernization and New Port Development** - developing greenfield ports and expanding the capacity of existing ports. Under this, six new ports will be developed across five coastal states by the government * **Port Connectivity Enhancement** - evolving multimodal logistics solutions for cargo movement, including inland waterways, with an aim of optimizing the cost and time of cargo movement. 170 port connectivity enhancement projects would be taken up under this scheme. * **Port-linked Industrialization** - Development of Coastal Economic Zones (**CEZs**) and other industrial clusters in proximity to the ports in order to reduce the logistics cost of EXIM as well as domestic cargo. 33 port-linked industrialization projects were identified. * **Coastal Community Development** - through skill development and livelihood enhancement activities such as fisheries, coastal tourism etc., ensuring the sustainable development of coastal communities. At the central level, National Sagarmala Apex Committee (NSAC) is envisaged to provide overall policy guidance. It consists of the Minister of Shipping, Cabinet Ministers of various ministries as well as the Chief Ministers/State Minister in charge of ports of coastal states. The NSAC responsible for the approval of National Perspective Plan. Sagarmala Development Corporation (SDC) is to be set up under the Companies Act, at the central level, to assist the State level/port level Special Purpose Vehicles (SPVs)with equity support as well as in preparing the Detailed Project Reports for the respective zones.

Answer 96

* An industrial corridor is basically a **corridor comprising of multi-modal transport services** that would pass through the states as main artery. * GoI is developing various[**Industrial Corridor Projects**](https://www.drishtiias.com/to-the-points/paper3/industrial-corridors-2)as part of the **National Industrial Corridor programme** * The Programme has an overall sanctioned **corpus of Rs. 20,084 crore.** 11 Industrial Corridors Projects are being taken up for development with **30 Projects to be developed in four phases up to 2024-25.** * **National Industrial Corridor Development and Implementation Trust (NICDIT)** is under the administrative control of [**Department for Promotion of Industry and Internal Trade (DPIIT)**](https://www.drishtiias.com/daily-updates/daily-news-analysis/dipp-renamed-as-dpiit) * Freight cargo from industrial and National Investment and Manufacturing Zones (NIMZs) located upto a distance of 100-150 km on both sides of this main artery are brought to the industrial corridor via rail and road feeder links that provides last mile connectivity. * This will lower costs of logistics and enable firms to focus on their areas of core competence. * Industrial corridors constitute world-class infrastructure, such as: * High-speed transportation network – rail and road * Ports with state-of-the-art cargo handling equipment * Modern airports * Special economic regions/industrial areas * Logistic parks/transhipment hubs * Knowledge parks focused on catering to industrial needs * Complementary infrastructure such as townships/real estate * Other urban infrastructure along with enabling policy framework * These projects are expected **to play a critical role in raising the share of contribution of the manufacturing sector from approximately 16% to 25% by 2025.** * Smart cities are being developed along these corridors. These cities, with state-of-the-art infrastructure, will house the new workforce that is required to power manufacturing, in turn leading to planned urbanization. * Five industrial corridor projects have been identified, planned and launched by GoI 1. Delhi Mumbai IC 2. Chennai Bengaluru IC 3. Bengaluru Mumbai Economic Corridor 4. Amritsar Kolkata Industrial Corridor 5. East Coast Economic Corridor

Answer 97

Economic Significance: 1. reduce logistics cost 2. in turn leading to increased Exports 3. job generation 4. people would find job opportunities close to their homes and would not have to migrate to far-off places **(would prevent distress migration)**. 5. These corridors would provide necessary logistics infrastructure needed to reap **economies of scale,** thus enabling firms to focus on their areas of core competence. Environmental significance: The establishment of Industrial Units in a scattered manner along the industrial corridor across the length of the state will **prevent concentration of industries in one particular location** which exploited the environment beyond its carrying capacity and caused environmental degradation. Socio-Economic Significance: setting up of industrial townhips and smart cities will have cascading effect on social indicators like education level, health etc.

Answer 98

* First IC project announced by GoI * **DMIC Development Corporation (DMICDC)** incorporated in 2008, is the implementing agency for the project. * DMICDC has been registered as a company with 49% equity of Government of India, **26% equity of the JBIC (Japan Bank for International Cooperation)** and the remaining held by government financial institutions. * estimated investment of 90Bn$ * The investments will be spread across the 1,500 km long [Western Dedicated Freight Corridor](https://en.wikipedia.org/wiki/Western_Dedicated_Freight_Corridor) which will serve as the industrial corridor's transportation backbone * The eight investment regions,of 200 sq km each, proposed to be developed in Phase I of DMIC are * [Dadri](https://en.wikipedia.org/wiki/Dadri) - [Noida](https://en.wikipedia.org/wiki/Noida) - [Ghaziabad](https://en.wikipedia.org/wiki/Ghaziabad) (in [Uttar Pradesh](https://en.wikipedia.org/wiki/Uttar_Pradesh)), * [Manesar](https://en.wikipedia.org/wiki/Manesar) - [Bawal](https://en.wikipedia.org/wiki/Bawal) (in [Haryana](https://en.wikipedia.org/wiki/Haryana)), * [Khushkhera](https://en.wikipedia.org/wiki/Khushkhera) - [Bhiwadi](https://en.wikipedia.org/wiki/Bhiwadi) - [Neemrana](https://en.wikipedia.org/wiki/Neemrana) and [Jodhpur](https://en.wikipedia.org/wiki/Jodhpur) - [Pali](https://en.wikipedia.org/wiki/Pali,_Rajasthan) - [Marwar](https://en.wikipedia.org/wiki/Marwar) (in [Rajasthan](https://en.wikipedia.org/wiki/Rajasthan)), * [Pithampur](https://en.wikipedia.org/wiki/Pithampur) - [Dhar](https://en.wikipedia.org/wiki/Dhar) - [Ambedkar Nagar](https://en.wikipedia.org/wiki/Dr._Ambedkar_Nagar) (in [Madhya Pradesh](https://en.wikipedia.org/wiki/Madhya_Pradesh)), * [Ahmedabad](https://en.wikipedia.org/wiki/Ahmedabad) - [Dholera](https://en.wikipedia.org/wiki/Dholera) Special Investment Region (in [Gujarat](https://en.wikipedia.org/wiki/Gujarat)), and * [Aurangabad Industrial City](https://en.wikipedia.org/wiki/Aurangabad_Industrial_City) (AURIC) and Dighi Port Industrial Area in [Maharashtra](https://en.wikipedia.org/wiki/Maharashtra)

Answer 99

corridor plans to come up along [Chennai](https://en.wikipedia.org/wiki/Chennai), [Sriperumbudur](https://en.wikipedia.org/wiki/Sriperumbudur), Ponnapanthangal, [Ranipet](https://en.wikipedia.org/wiki/Ranipet), Suburbans of [Vellore](https://en.wikipedia.org/wiki/Vellore), [Chittoor](https://en.wikipedia.org/wiki/Chittoor), [Bangarupalem](https://en.wikipedia.org/wiki/Bangarupalem), [Palamaner](https://en.wikipedia.org/wiki/Palamaner), [Bangarpet](https://en.wikipedia.org/wiki/Bangarpet), [Hoskote](https://en.wikipedia.org/wiki/Hoskote) and [Bangalore](https://en.wikipedia.org/wiki/Bangalore). It is expected to boost commerce between south India and east Asia by enabling quicker movement of goods from these places to the Chennai and [Ennore](https://en.wikipedia.org/wiki/Ennore) ports and recently it has been planned to be extended to [Coimbatore](https://en.wikipedia.org/wiki/Coimbatore) city of [Tamil Nadu](https://en.wikipedia.org/wiki/Tamil_Nadu) and [Kochi](https://en.wikipedia.org/wiki/Kochi) city of [Kerala](https://en.wikipedia.org/wiki/Kerala).

Answer 100

aimed at developing an Industrial Zone spanning across seven states in India with benefits for 20 cities under these states. The cities which will covered by the ADKIC Project are [Amritsar](https://en.wikipedia.org/wiki/Amritsar), [Jalandhar](https://en.wikipedia.org/wiki/Jalandhar), [Ludhiana](https://en.wikipedia.org/wiki/Ludhiana), [Ambala](https://en.wikipedia.org/wiki/Ambala), [Saharanpur](https://en.wikipedia.org/wiki/Saharanpur), [Delhi](https://en.wikipedia.org/wiki/Delhi), [Roorkee](https://en.wikipedia.org/wiki/Roorkee), [Haridwar](https://en.wikipedia.org/wiki/Haridwar), [Dehradun](https://en.wikipedia.org/wiki/Dehradun), [Meerut](https://en.wikipedia.org/wiki/Meerut), [Muzaffarnagar](https://en.wikipedia.org/wiki/Muzaffarnagar), [Bareilly](https://en.wikipedia.org/wiki/Bareilly), [Aligarh](https://en.wikipedia.org/wiki/Aligarh), [Kanpur](https://en.wikipedia.org/wiki/Kanpur), [Lucknow](https://en.wikipedia.org/wiki/Lucknow), [Allahabad](https://en.wikipedia.org/wiki/Allahabad), [Varanasi](https://en.wikipedia.org/wiki/Varanasi), [Gaya](https://en.wikipedia.org/wiki/Gaya,_India), [Hazaribagh](https://en.wikipedia.org/wiki/Hazaribagh), [Dhanbad](https://en.wikipedia.org/wiki/Dhanbad), [Asansol](https://en.wikipedia.org/wiki/Asansol), [Durgapur](https://en.wikipedia.org/wiki/Durgapur), [Burdwan](https://en.wikipedia.org/wiki/Burdwan) and [Kolkata](https://en.wikipedia.org/wiki/Kolkata) The corridor would be built along the 1,839 km long Eastern Dedicated Freight corridor between Khurja and Mugalsarai, and will leverage the Inland Waterway System being developed along [National Waterway 1](https://en.wikipedia.org/wiki/National_Waterway_1_(India)) which extends from [Allahabad](https://en.wikipedia.org/wiki/Allahabad) to [Haldia](https://en.wikipedia.org/wiki/Haldia).

Answer 101

spread across the states of [Karnataka](https://en.wikipedia.org/wiki/Karnataka) and [Maharashtra](https://en.wikipedia.org/wiki/Maharashtra) and passes through major cities such as [Davanagere](https://en.wikipedia.org/wiki/Davanagere), [Chitradurga](https://en.wikipedia.org/wiki/Chitradurga), [Hubli–Dharwad](https://en.wikipedia.org/wiki/Hubli%E2%80%93Dharwad), [Belagavi](https://en.wikipedia.org/wiki/Belagavi), [Solapur](https://en.wikipedia.org/wiki/Solapur), [Kolhapur](https://en.wikipedia.org/wiki/Kolhapur), [Satara](https://en.wikipedia.org/wiki/Satara_(city)) and [Pune](https://en.wikipedia.org/wiki/Pune). The corridor is delineated around the existing [National Highway 48](https://en.wikipedia.org/wiki/National_Highway_48_(India)) (NH48) (which connects Bangalore to Mumbai), the existing Bangalore-Mumbai railway line and the [Dabhol–Bangalore Natural Gas Pipeline](https://en.wikipedia.org/wiki/Dabhol%E2%80%93Bangalore_Natural_Gas_Pipeline)

Answer 102

The **East Coast Economic Corridor** (**ECEC**) is [India](https://en.wikipedia.org/wiki/India)’s first coastal [economic corridor](https://en.wikipedia.org/wiki/Economic_corridor) covering 2500 km of India's coastline, to be developed with the help of the ADB The ADB is to invest $500 million in infrastructural development of the project ECEC running along the entire east coast of India from [Kolkata](https://en.wikipedia.org/wiki/Kolkata) to [Kanyakumari](https://en.wikipedia.org/wiki/Kanyakumari), is a multimodal, regional maritime corridor Phase 1 of the ECEC is Visakhapatnam-Chennai Industrial Corridor (VCIC), approved in 2016

Answer 103

1. India has witnessed the fastest rate of growth in renewable energy capacity addition among all large economies, during the last 7.5 years with renewable energy capacity growing by 2.9 times and solar energy expanding by over 18 times 2. Renewable energy (excluding large hydro) constitutes over 24.71 percent of the country’s installed power capacity and around 10.7 percent of the electrical energy generation for year 2020-21. As of 31 October 2021, India’s total renewable energy installed capacity (excluding hydro power above 25 MW) has reached over 103.05 GW. 3. During the last 7.5 years, if large hydro is included, the share of renewable energy in electric installed capacity is estimated to be about 38.27 percent (as of October 2021) and its share in electric energy generation is estimated to be about 26.96 percent 4. to facilitate renewable power evacuation and reshaping the grid for future requirements, the Green Energy Corridor (GEC) projects have been initiated 5. India increased its NDCs in COP26 under Paris Agreement. 1. Net Zero emission by 2070 2. By 2030 non-fossil fuel generation to increase to 500GW (target of 450GW committed in 2015 Paris agreement) 3. By 2030, 50% of installed capacity to be of RE 4. Carbon emissions to be reduced by 1BnTonne. 5. 45% reduction in Carbon intensity (increased from 33-35% commitment in 2015) 6. Green Hydrogen Policy 7. The 2020 Climate Transparency report said India is the only country, among the G20 nations, doing its share of actions to make it compatible with the goal of curbing global warming by 2 degrees Celsius by the end of this century 8. Many Breakthrough Projects 1. Deen Dayal Upadhyay Gram Jyoti Yojana followed by Saubhagya scheme 2. PM Ujjwala scheme 3. The Cochin international airport in Kerala is the world's first airport to fully run-on solar power 4. world's largest RE park in state of [_Gujarat_](https://www.manilatimes.net/topic?eid=47546&ename=Gujarat&lang=en) is expected to produce 30 GW through solar-wind hybrid projects. 5. world's largest (600 MW) floating solar project is being constructed in Madhya Pradesh 6. 45 solar parks of aggregate capacity 37 GW have been approved in India. 7. Solar Parks in Pavagada (2 GW), Kurnool (1 GW) and Bhadla-II (648 MW) included in top 5 operational solar parks of 7 GW capacity in the country 8. The world’s largest renewable energy park of 30 GW capacity solar-wind hybrid project is under installation in Gujarat 9. RE sector is also one of India's champion sector under the Make in India campaign.

Answer 104

1. In order to facilitate renewable power evacuation and reshaping the grid for future requirements, the Green Energy Corridor (GEC) projects have been initiated. 2. The GEC Project aims at synchronizing electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid. 3. The first component of the scheme 1. GEC-Intra State Transmission System(InSTS) project was sanctioned in 2015-16, for evacuation and integration of the renewable energy capacity through setting up of transmission lines and increasing transformation capacity of substations. 2. It is being implemented by eight renewable-rich states of Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh, and Madhya Pradesh 3. Intra-state GEC with target capacity of 9700 circuit kilometer (ckm) transmission lines and 22600 MVA capacity sub-stations, was completed in March 2020. 4. The purpose is to evacuate over 20,000 MW of large-scale renewable power and improvement of the grid in the implementing states. 5. The funding mechanism consists of 40% Government of India Grant (total Rs. 4056.67 crores), 20% state equity and 40% loan from KfW, Germany 4. The second component - 1. It is being implemented in seven States namely, Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh. 2. Under this phase, the target is to install 10,750 circuit km of transmission lines and 27,500 MegaVolt-Amperes(MVA) transformation capacity of substations by 2025-26. 3. The Centre will provide assistance at 33% of the cost of the project 5. Need/benefits 1. India's NDCs 2. 450GW RE installed capacity by 2030 3. long term energy security 4. employment generation 5. GEC will help in offsetting the intra-state transmission charges and keep the power costs down.

Answer 105

1. The World bank in its report Minerals for Climate Action has in its report mentioned that this transition from conventional fossil fuel-based energy to clean energy as well as battery storage will be more mineral intensive. Minerals and metals like copper, aluminum, iron, manganese, nickel etc are critical for developing clean energy sources like solar PV, wind, nuclear while minerals like lithium and graphite are important for energy storage 2. RE sector is one of India's champion sector under the Make in India campaign 3. Solar sector: 1. PLI scheme for solar energy sector: National Programme on High Efficiency Solar PV Modules’, with an outlay of Rs. 4,500 crore: supporting setting up of integrated manufacturing units of high efficiency solar PV modules by providing PLI on sales of such PV modules. 1. targets direct employment to 30,000 people and indirect jobs to 1.2 lakh people. 2. targets an additional 10,000 MW of integrated domestic manufacturing capacity of high efficiency solar PV modules with an investment of around Rs.17,200 crore. 2. M-SIPS Scheme of MeiTY provides subsidy for capital expenditure – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. 3. Preference to ‘Make in India’ in Public Procurement in Renewable Energy Sector 4. Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM and Gridconnected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources. 5. Imposition of Basic Customs Duty on import of solar PV cells & modules 4. Wind sector: 1. India has achieved 70-80 percent of indigenization of wind turbines and over 17 different companies including major global players are manufacturing 44 different models of wind turbines in India.

Answer 106

MNRE has pegged the market potential for rooftop solar at 124 GW.

Answer 107

implemented by MNRE. being implemented in the state by DISCOMs Obj: ● To promote the **grid-connected SPV rooftop and small SPV power generating plants** among the residential, community, institutional, industrial and commercial establishments. ● To **mitigate the dependence on fossil fuel** based electricity generation and encourage environment-friendly Solar electricity generation. ● To create an enabling environment for investment in the solar energy sector by the private sector, state government and the individuals. ● To create an enabling environment for the supply of solar power from rooftop and small plants to the grid. Presently under implementation is the Grid-Connected Rooftop Solar Scheme (Phase II): It aims to achieve a cumulative capacity of 40,000 MW from Rooftop Solar Projects by the year 2022 ● Under this scheme the Ministry is providing a 40% subsidy for the first 3 kW and 20% subsidy beyond 3 kW and upto 10 kW of solar panel capacity. ● The residential consumer has to pay the cost of rooftop solar plant by reducing the subsidy amount given by the Ministry as per the prescribed rate to the vendor

Answer 108

According to the data available on the website of the Union Ministry of New and Renewable Energy (MNRE), India could install just **6GW of Rooftop Solar (RTS) power** by the end of October 2021 under the [**rooftop solar scheme.**](https://www.drishtiias.com/daily-updates/daily-news-analysis/rooftop-solar-scheme) **Challenges** * According to a [**report**](https://www.drishtiias.com/daily-updates/daily-news-analysis/green-energy-push-slowed-down-report) released in September, 2021, the [**lockdowns**](https://www.drishtiias.com/daily-updates/daily-news-editorials/covid-19-and-lockdown) slowed [**renewable energy**](https://www.drishtiias.com/loksabha-rajyasabha-discussions/the-big-picture-budget-2021-for-green-energy#:~:text=Renewable%20energy%3A%20The%20Government%20of,GW%20from%20small%20hydro%20power.) installations in the country and the pace of such installations is lagging India’s 2022 target. * Flip Flopping policies * Industry executives point out RTS was becoming attractive for several consumer segments when discoms and state governments started tightening regulations for the sector * GST Council recently hiked the GST of many components of the solar system from 5% to 12%. It will increase RTS's capital cost by 4-5%. * Regulatory Framework * **absence or withdrawal of state-level policy support for the RTS segment**, especially for the business and industrial segment, which makes up the bulk of target consumers. * Inconsistent rules in Net and Gross Metering * Power ministry’s new rules that **excludes rooftop solar systems above 10 kilowatts (kW) from net-metering** would stall adoption of larger installations in India affecting the country’s rooftop solar target. * The **new rules mandate net-metering for rooftop solar projects up to 10 kW** and **gross metering for systems with loads above 10 kW.** * Net metering allows surplus power produced by RTS systems to be fed back into the grid. * Under the gross metering scheme, state power Distribution Companies (DISCOMS) compensate consumers with a fixed feed-in-tariff for the solar power supplied to the grid by the consumer. * Low FInancing

Answer 109

1. National Solar MIssion: a part of NAPCC 2. **National Wind-Solar Hybrid Policy:** The main objective of the National Wind-Solar Hybrid Policy, 2018 is to **provide a framework for promotion of large grid connected wind-solar PV hybrid systems** for optimal and efficient utilisation of wind and solar resources, transmission infrastructure and land. 3. Rooftop solar program 4. Green energy Corridor 5. Renewable Energy Purchase Obligations (RPOs) of DISCOMs 6. PM-KUSUM (covered in f/c agri), Canal bank & Canal top Scheme, Bundling Scheme 7. Solar park scheme: **Scheme for Development of Ultra Mega Renewable Energy Power Parks** 8. **Suryamitra Skill Development Programme:** To provide skill training to rural youth in handling solar installations. 9. **Atal Jyoti Yojana (AJAY):** AJAY scheme was launched in September 2016 for the **installation of solar street lighting (SSL) systems** in states with less than 50% households covered with grid power 10. International SOlar Alliance 11. One Sun, one World, One Grid

Answer 110

by MNRE in 2014 under the existing Solar Park scheme The objective of the UMREPP is to provide land upfront to the project developer and facilitate transmission infrastructure for developing Renewable Energy (RE) based UMPPs with solar/wind/hybrid and also with storage system, if required.

Answer 111

● The proposed 529.45-km line will link Thiruvananthapuram in the south to Kasaragod in the north, covering 11 districts through 11 stations. ● Being executed by the Kerala Rail Development Corporation Limited (KRDCL), or K-Rail, is a joint venture between the Kerala government and the Union Ministry of Railways created to execute this project. Features of the Project: ● The project will have trains of electric multiple unit (EMU) type, each with preferably nine cars extendable to 12. ● A nine-car rake can seat a maximum of 675 passengers in business and standard class settings. ● The trains can run at a maximum speed of 220 km/hr on a standard gauge track, completing journeys in either direction in fewer than four hours. ● At every 500 metres, there will be under-passages with service roads. Need for the SilverLine project: * Time saving: On the existing network, it now takes 12 hours. Once the project is completed, one can travel from Kasaragod to Thiruvananthapuram in less than four hours at 200 km/hr. * Terrain limitations: Most trains run at an average speed of 45 km/hr due to a lot of curves and bends on the existing stretch. * De-trafficking: The project can take a significant load of traffic off the existing stretch and make travel faster for commuters, which in turn will reduce congestion on roads and help reduce accidents. * The project would reduce greenhouse gas emissions, help in expansion of Ro-Ro services, produce employment opportunities, integrate airports and IT corridors, and enable faster development of cities it passes through. issues * Huge capital requirement: They argue that the project was an “astronomical scam in the making” and would sink the state further into debt. * Displacement of families: The project was financially unviable and would lead to the displacement of over 30,000 families. * Ecological damage: It would cause great environmental harm as its route cuts through precious wetlands, paddy fields and hills. * Flood hazard: The building of embankments on either side of the major portion of the line will block natural drainage and cause floods during heavy rains.

Answer 112

* CharDham Pariyojana aims to **“improve the connectivity** to the Chardham pilgrimage centres **(Badrinath, Kedarnath, Gangotri, Yamunotri)** in the Himalayas, making journeys to these centres safer, faster and more convenient. * It will widen almost 900 km of highways connecting the pilgrimage sites and the Tanakpur-Pithoragarh stretch of National Highway (NH) 125, a part of the[**Kailash Mansarovar Yatra route.**](https://www.drishtiias.com/daily-updates/daily-news-analysis/new-road-to-kailash-mansarovar) * **Role in National Security:** This project can act as the strategic feeder roads which connect the India-China border with the Army camps in Dehradun and Meerut where missile bases and heavy machinery are located. * **Implementing Agencies**: Uttarakhand State Public Works Department (PWD), [**Border Roads Organisation (BRO)**](https://www.drishtiias.com/daily-updates/daily-news-analysis/chardham-pariyojana)and the National Highway & Infrastructure Development Corporation Limited (NHIDCL). * NHIDCL is a fully owned company of the Ministry of Road Transport & Highways.

Answer 113

* **Environmental Concerns About the Project:** * The project **may destroy about 690 hectares of forests** with 55,000 trees and **evacuate an estimated 20 million cubic metres of soil.** * Ruthless harvesting or uprooting of vegetation in the widening of roads **can prove to be perilous for the biodiversity and regional ecology.** * Birds like **Kalij Pheasant** (*Lophura leucomelanos*,[**Schedule-I**](https://www.drishtiias.com/to-the-points/paper3/wildlife-protection-act-wpa-1972)), **Tragopans** (Tragopan melanocephalus & Tragopan satyra, Schedule-I), and various species of Vultures (Schedule-I) along with endangered fish **Golden Mahseer** (Tor *putitora*) are among the wonderful species found there. * While there is no link between the CharDham project and the recent [**glacier broken tragedy of Chamoli**](https://www.drishtiias.com/daily-updates/daily-news-editorials/chamoli-flash-floods), indiscriminate blasting during road construction makes cracks in soil and rocks that may enhance the possibility of flash-flood in the future. * SC: **need to balance national security concerns with environmental issues in the context of the Army’s request to expand the CharDham Project (CDP) roads** leading to the [**Indo-China border.**](https://www.drishtiias.com/daily-updates/daily-news-analysis/india-china-conflict)

Answer 114

established by NBFID Act passed in March 2021. It was announced in Budget 2021 * The Bill seeks to establish the National Bank for Financing Infrastructure and Development (NBFID) as the principal [**Development Financial Institution (DFIs)**](https://www.drishtiias.com/daily-updates/daily-news-analysis/development-finance-institution-to-fund-infrastructure) for infrastructure financing. * NBFID will be set up **as a corporate body** with authorised **share capital of one lakh crore rupees.** * **Objective:** * **Financial Objective:** * To directly or indirectly **lend, invest, or attract investments for infrastructure projects** located entirely or partly in India. * **Developmental Objective:** * Includes **facilitating the development of the market for bonds, loans, and derivatives** for infrastructure financing. * **Functions of NBFID:** * Extending **loans and advances for infrastructure projects.** * Taking over or **refinancing** such existing loans. * **Attracting investment** from private sector investors and institutional investors for infrastructure projects. * Organising and **facilitating foreign participation** in infrastructure projects. * Facilitating **negotiations with various government authorities** for **dispute resolution** in the field of infrastructure financing. * Providing **consultancy services** in infrastructure financing. * **Source of Funds:** * It may raise money in the form of loans or otherwise both in Indian rupees and foreign currencies, or secure money by the issue and **sale of various financial instruments** including [**bonds**](https://www.drishtiias.com/daily-updates/daily-news-analysis/special-zero-coupon-recapitalisation-bonds) and [**debentures.**](https://www.drishtiias.com/daily-updates/daily-news-analysis/debenture-redemption-reserve) * It may borrow money from the central government, [**Reserve Bank of India (RBI)**](https://www.drishtiias.com/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india), scheduled commercial banks, mutual funds, and multilateral institutions such as the [**World Bank**](https://www.drishtiias.com/important-institutions/drishti-specials-important-institutions-international-institution/world-bank-group) and [**Asian Development Bank.**](https://www.drishtiias.com/daily-updates/daily-news-analysis/4-contraction-in-growth-adb) * **Initially, the central government will own 100% shares** of the institution which may **subsequently be reduced up to 26%.** * **Management of NBFID:** * NBFID will be governed by a **Board of Directors.** The Chairperson will be appointed by the central government in consultation with RBI. * A body constituted by the central government will recommend candidates for the post of the Managing Director and Deputy Managing Directors. * The Board will appoint independent directors based on the recommendation of an internal committee. * **Support from the Central Government:** * The central government will provide grants worth Rs. 5,000 crore to NBFID by the end of the first [**financial year.**](https://www.drishtiias.com/current-affairs-news-analysis-editorials/news-analysis/03-02-2021) * The government will also provide guarantee at a concessional rate of up to 0.1% for borrowing from multilateral institutions, sovereign wealth funds, and other foreign funds. * Costs towards insulation from fluctuations in foreign exchange (in connection with borrowing in foreign currency) may be reimbursed by the government in part or full. * Upon request by NBFID, the government may guarantee the bonds, debentures, and loans issued by NBFID. * **Prior Sanction For Investigation And Prosecution:** * No investigation can be initiated against employees of NBFID without the prior sanction of the central government in case of the chairperson or other directors, and the managing director in case of other employees. * **Courts will also require prior sanction** for taking cognisance of offences in matters involving employees of NBFID.

Answer 115

* The Bill also provides for any person to set up a DFI by applying to RBI. * RBI may grant a licence for DFI in consultation with the central government. * RBI will also prescribe regulations for these DFIs.

Answer 116

The Ministry of Road Transport & Highways has notified the constitution of the National Road Safety Board. **National Road Safety Board** * The NRSB will be constituted of a panel of seven members and a chairman, with the members having experience in the fields related to road safety, traffic regulation, urban planning, civil engineering and police enforcement and investigation. * Additionally, the board will also comprise of technical committees to look into a variety of aspects of road safety from civil engineering to vehicle construction and safety equipment. **Terms of reference** * The Head Office of the Board shall be in the National Capital Region and the Board may establish offices at other places in India. * The Board shall be responsible for promoting road safety, innovation and adoption of new technology and for regulating traffic and motor vehicles. **For this purposes, inter alia, the Board shall formulate** * specific standards for road safety, traffic management and road construction for hilly regions * guidelines for capacity building and development of skills for traffic police, hospital authorities, highway authorities, educational and research organizations and other organizations * guidelines for establishing and operating trauma facilities and para-medical facilities, for consideration by the Central Government * provide technical advice and assistance to the Central Government, State Governments and local authorities on road safety and traffic management * The board aims to promote Good Samaritans and good practices in road safety and traffic management * Good Samaritans who rescue victims of serious road accidents and rush them to a hospital within the golden hour will now be rewarded with ₹5,000. * They will also be eligible for a cash prize of ₹1 lakh which will be given to 10 such Samaritans in a year

Answer 117

NCRB 2022 * Deaths in road accidents up by **17%** * In 2021, **1**.**55 lakh people** died in accidents on Indian roads, up from **1.33 lakh in 2020** * Total road accidents reported was **4**.**03 lakh in 2021** * A maximum number of cases were reported in **Tamil Nadu.** * **Reasons**: Speeding caused 87,000 deaths, accounting for over half of all deaths, while dangerous and careless driving caused over 42000 deaths.

Answer 118

* union Cabinet cleared the Rs 44,605-crore Ken-Betwa link project (KBLP) in December 2021 with a eight-year deadline for completion * The project involves transferring of surplus water from the Ken river to the Betwa river through the construction of * Daudhan dam and a canal linking the two rivers. The 230 km long concrete canal will pass through Jhansi, Banda and Mahoba districts of UP and Tikamgarh, Panna and Chatarpur districts of MP * the Lower Orr Project, * Kotha Barrage and * the Bina Complex Multipurpose Project. The Union Cabinet has approved the funding and implementation of the Ken-Betwa river interlinking project at a cost of ₹44,605 crore at the 2020-21 price level. ● The Centre would fund ₹39,317 crore for the project, with ₹36,290 crore as a grant and ₹3,027 crore as a loan. [https://1drv.ms/u/s!AvN\_8sA-Zf0djStBvAwaV9pB\_SZG?e=ERt9il](https://1drv.ms/u/s!AvN_8sA-Zf0djStBvAwaV9pB_SZG?e=ERt9il) Key facts: ● Ken and Betwa rivers originate in MP and are the tributaries of Yamuna. ● Ken meets with Yamuna in Banda district of UP and with Betwa in Hamirpur district of UP. ● Rajghat, Paricha and Matatila dams are over Betwa river. ● Ken River passes through Panna tiger reserve.

Answer 119

The project is slated to irrigate 10.62 lakh hectares annually, provide drinking water supply to 62 lakh people and generate 103 MW of hydropower and 27 MW of solar power. The project will be of immense benefit to the water-starved Bundelkhand region, spread across Madhya Pradesh and Uttar Pradesh The project is expected to boost socio-economic prosperity in the backward Bundelkhand region on account of increased agricultural activities and employment generation. It would also help in arresting distress migration from this region

Answer 120

The Ken-Betwa river interlinking project will lead to the submergence of a major portion of the core area of the Panna Tiger Reserve in Madhya Pradesh, triggering a major loss of the tiger and its major prey species such as chital and sambar, according to a new study. ● The project may incur an estimated loss of 58.03 square kilometres (10.07 per cent) of critical tiger habitat (CTH) in the reserve. ● There will be an indirect loss of 105.23 sq km of CTH because of habitat fragmentation and loss of connectivity due to submergence, the study. ● The total area submerged would be 86.50 sq km, of which 57.21 sq km lies within Panna Tiger Reserve. This will account for 65.50 per cent of total submergence. ● The area that will be submerged due to the KBRIL Project has a rich floral density and diversity. Ungulates such as sambar, chital, blue bull and wild boar are found here

Answer 121

2016-2017: KBLP got wildlife, environment and preliminary forest clearances on condition that no units of the proposed 78-MW powerhouse would be constructed in “the forest area to avoid constant disturbance in the Panna” tiger reserve. But **KBLP is yet to submit a modified project plan of relocated power stations for fresh environment clearance.** 2018-2019: Hearing a petition against KBLP’s wildlife clearance, the Supreme Court asked its Central Empowered Committee (CEC) to investigate the issue. The **CEC recommended an examination of alternatives to meet irrigation and poverty alleviation targets set by specialised agencies, and a thorough study of KBLP’s impact on Panna, before approving the project. The Supreme Court is yet to decide on the matter.** 2018-2021: Ministry of Jal Shakti repeatedly told the Environment Ministry that **Madhya Pradesh could not find only 42.06 sq km revenue land for Panna tiger reserve instead of 60.17 sq km — a key precondition for KBLP’s final forest clearance.**

Answer 122

* NRLP, formerly known as the **National Perspective Plan**, proposes to connect **14 Himalayan** and **16 peninsular rivers** with 30 canals and 3,000 reservoirs to form a gigantic **South Asian Water Grid**. * The initial plan to interlink India’s rivers came in 1858 from a British irrigation engineer, *Sir Arthur Thomas Cotton.* * NRLP includes two components: * **– Himalayan component**: This component aims to construct storage reservoirs on the Ganga and Brahmaputra rivers, as well as their tributaries in India and Nepal. It will connect, **1)** the Ganga and Brahmaputra basins to the Mahanadi basin, and **2)** the Eastern tributaries of the Ganga with the Sabarmati and Chambal river systems. * **– Peninsular component**: It includes 16 links that propose[](http://www.nih.ernet.in/rbis/india_information/interlinking.htm)to connect the rivers of South India. It envisages linking, **1)** the Mahanadi and Godavari to feed the Krishna, Pennar, Cauvery, and Vaigai rivers, **2)** the Ken river to the Betwa, Parbati, Kalisindh, and Chambal rivers, **3)** West-flowing rivers to the south of Tapi to the north of Bombay, and **4)** Linking some west-flowing rivers to east-flowing rivers. * The NRLP is managed by **National Water Development Agency (NWDA)** under the Ministry of Jal Shakti. NWDA was set up in 1982, to conduct surveys and see how feasible proposals for interlinking river projects are. * The Centre Government is contemplating creation of the **National Interlinking of Rivers Authority** (NIRA). * NIRA is supposed to be an **independent autonomous body** for planning, investigation, financing and the implementation of the [**river interlinking projects**](https://www.drishtiias.com/daily-updates/daily-news-editorials/challenges-of-river-interlinking) in the country. * Union Finance Minister Nirmala Sitharaman has proposed **a project to link five rivers** in India in her 2022 budget speech. **The rivers identified for linking are:** * Godavari-Krishna, Krishna-Pennar and Pennar-Cauvery, Damanganga-Pinjal and Par-Tapi-Narmada. * The Damanganga-Pinjal river linking aims to divert surplus water from the Damanganga basin to provide domestic water for Mumbai city * The Par-Tapi-Narmada project proposes to provide water to doubt-prone regions of Kutch and Saurashtra by diverting excess water from seven reservoirs in the Western Ghats in North Maharashtra and south Gujarat. * https://1drv.ms/u/s!AvN\_8sA-Zf0djSzIs5lsTO8pwTiR?e=G4rszi

Answer 123

**–** Under the **Periyar Project**, transfer of water from Periyar basin to Vaigai basin was envisaged. It was commissioned in 1895. **–** Similarly, other projects such as Parambikulam Aliyar, Kurnool Cudappah Canal, Telugu Ganga Project, and Ravi-Beas-Sutlej were undertaken. **–** Godavari River has also been formally interlinked with the Krishna River at Ibrahimpatnam (near Vijayawada) in Andhra Pradesh in September 2015.

Answer 124

**i). Hydrological Imbalance of India** **ii). Improve the inland navigation** **iii). The benefit of irrigation:** The interlinking of rivers has the potential to irrigate 35 million hectares of land in the water-scarce western peninsula. **iv). Generation of power:** The interlinked rivers have the potential to generate a total power of 34 GW. **v). Other benefits:** **– Water supply:** The project envisages a supply of clean drinking water amounting to 90 billion cubic meter. It can resolve the issue of drinking water scarcity in India. – Similarly, interlinking of rivers has the potential to provide 64.8 billion cubic meter of **water for industrial use**. – Apart from that, interlinking can help the survival of **fisheries**, **protect wildlife in the summer months** due to water scarcity. It can also reduce forest fires occurring in India due to climatic conditions. – India can also **explore an additional line of defence** in the form of waterline defence.

Answer 125

**i). Impact of the Climate change**: Reports points out that Climate change will cause **a meltdown of 1/3^rd of the Hindu Kush Region’s glaciers by 2100.** So, the Himalayan rivers might not have ‘surplus water’ for a long time. Also, considering this, investing billions of money in the interlinking of rivers might yield benefits only for a short time. **ii). Human cost:** This includes the challenge of loss of livelihood and displacement of people especially, the poor and tribal people located near the forests. So, the government not only needs to face challenges in **displacing people** but also in the **rehabilitation of people**. **iii). Huge financial cost:** NRLP is a highly capital-intensive project. In 2001, the total cost for linking the Himalayan and peninsular rivers was estimated at Rs 5,60,000 crore, excluding the costs of relief and rehabilitation, and other expenses. This cost is likely to be substantially higher now, and the cost-benefit ratio might no longer be favourable. **iv). Impact on ecology and biodiversity**: The ecology of every river being unique, letting the waters of rivers mix may affect biodiversity. Also, when most of the rivers in the country are polluted, this may cause mixing of a less polluted river with a more polluted one. **v). International Challenges:** Countries like Bhutan, Nepal, and Bangladesh will be impacted due to the NRLP. Bangladesh esp fears of water diversion from the Ganga and Brahmaputra rivers to India’s southern states, threatening the livelihoods as well as its environment. **vi). Political Challenges:** Water is a state subject in India. So the implementation of the NRLP primarily depends on Inter-State co-operation. Several states including Kerala, Andhra Pradesh, Assam, and Sikkim have already opposed the NRLP. **vii). Other Challenges:** The government is proposing a **canal irrigation** method for transmitting water from one area to the other. The maintenance of canals is also a great challenge, it includes preventing sedimentation, clearing logging of waters etc.

Answer 126

The Kaladan multimodal project is a joint project between India and Myanmar. The Kaladan Multimodal project connects Kolkata port with Myanmar’s Sittwe Port by sea, Sittwe to Paletwa via river Kaladan, Paletwa to the border of India, and Myanmar via road and further ahead to Lawngtlai, Mizoram by road. The project budget was proposed to be Rs 536 crore in 2008 but has currently crossed Rs 3,200 crore owing to the delays and costs involved in land acquisition. The project was launched under the “[Look East Policy](https://byjus.com/free-ias-prep/look-east-policy/)” in 1991, and currently, the Modi government undertook this as “Act East” remodelled policy. It is named a multimodal project as it uses a wide range of infrastructures like roads, bridges, and floating barrages. Delays The Indian and Myanmar governments signed the Kaladan multimodal project agreement in 2008. The construction started in 2010, with a deadline of 2014. However, coordination issues between the governments on constructing hydroelectric projects on the Kaladan river tributaries resulted in very little progress in that year. The next deadline was set as 2021 and was further revised to 2023. Several benefits for the two countries associated with the Kaladan Multimodal Project are listed below. * The Northeastern regions of India are rich in natural resources, with one-fifth country’s hydrocarbon reserves. * The Kaladan multimodal project between India and Myanmar will open up new business, transport, and shipments from Myanmar’s eastern ports to the northeastern parts of the country. * The project will boost the economic development of the northeastern states with the emergence of several industrial clusters in the region. * The only route from India to the landlocked northeastern states is through the narrow Siliguri corridor called the “Chicken’s Neck.” India will benefit by attaining access through Bangladesh for shipping goods in the country’s northeastern states. * The new route will lower the cost and time of moving to Mizoram from Kolkata. * It will help in countering China’s expansion in the region. https://1drv.ms/u/s!AvN\_8sA-Zf0djS3f9PyEIIAQ4vhG?e=pq5tcM

Answer 127

* To utilize the waters of the Eastern rivers which have been allocated to India for exclusive use, India has constructed following dams: * Bhakra Dam on Satluj, * Pong and Pandoh Dam on Beas and * Thein (Ranjit Sagar) on Ravi. * Other works like Beas-Sutlej Link, Madhopur-Beas Link, Indira Gandhi Nahar Project etc has helped India utilize nearly entire share (95 %) of waters of Eastern rivers. * However, about 2 Million Acre Feet (MAF) of **water annually from Ravi** is reported to be still flowing unutilized to Pakistan below Madhopur. * To stop the flow of these waters that belong to India for its utilization in India, following steps have been taken: * **Shahpurkandi Project:** This project will help in utilizing the waters coming out from powerhouse of Thein dam for irrigation and power generation in J&K and Punjab. The construction work is being undertaken by the Govt of Punjab under monitoring of Govt of India. * **Construction of Ujh multipurpose project:**This project will create a storage of water on river Ujh , a tributary of Ravi for irrigation and power generation in India. This project is a National Project whose completion period will be 6 years from beginning of the implementation. * **The 2nd Ravi Beas link below Ujh:**This project is being planned to tap excess water flowing down to Pakistan through river Ravi, even after construction of Thein Dam, by constructing a barrage across river Ravi for diverting water through a tunnel link to Beas basin. Govt. of India declared this project as National Project . * The above three projects will help India to utilize its **entire share of waters** given under the Indus Waters Treaty 1960.

Answer 128

In line with National Hydrogen Mission, GAIL has commenced India's first-of-its-kind project of mixing hydrogen into the natural gas system to establish the techno-commercial feasibility of blending hydrogen in City Gas Distribution (CGD) network. ● The project has been initiated in Indore, Madhya Pradesh. ● GAIL has started injecting grey hydrogen. This grey hydrogen would subsequently be replaced by green hydrogen The goal: Government is planning to blend 15% green hydrogen with piped natural gas (PNG) for domestic, commercial and industrial consumption. Importance of blending Hydrogen with natural gas: ● It is easier and safer to use than hydrogen as it contains very low energy content from hydrogen i.e., up to 30% by volume. ● Hydrogen-enriched compressed natural gas (HCNG) will ensure 70% more reduction in carbon monoxide emissions compared to CNG. ● Power output of HCNG is also better than CNG ones. ● Blending integrates concentrations of hydrogen into existing natural gas pipelines and reduces carbon intensity of methane.

Answer 129

Blue bonds are sustainability bonds to finance projects that protect the ocean and related ecosystems. ● This can include projects to support sustainable fisheries, protection of coral reefs and other fragile ecosystems, or reducing pollution and acidification. ● All blue bonds are green bonds, but not all green bonds are blue bonds.

Answer 130

"Green bonds" and "climate bonds" are sometimes used interchangeably, but some authorities use the latter term specifically for projects focusing on reducing carbon emissions or alleviating the effects of climate change.

Answer 131

The National Ropeways Development Programme – “Parvatmala” was announced recently by the Union Finance Minister in the Union Budget for 2022-23 to improve connectivity in hilly areas. About the scheme: ● This will be a preferred ecologically sustainable alternative in place of conventional roads in difficult hilly areas. ● The idea is to improve connectivity and convenience for commuters, besides promoting tourism. ● This may also cover congested urban areas, where conventional mass transit systems are not feasible. Implementation: The scheme is being presently started in regions like Uttarakhand, Himachal Pradesh, Manipur, Jammu & Kashmir and the other North Eastern states. Nodal Ministry: The Ministry of Road Transport and Highways (MORTH) will have responsibility for development of ropeway and alternative mobility solutions technology, as well as construction, research, and policy in this area.

Answer 132

● Economical mode of transportation: Given that ropeway projects are built in a straight line over a hilly terrain, it also results in lower land acquisition costs. ● Faster mode of transportation: Owing to the aerial mode of transportation, ropeways have an advantage over roadway projects where ropeways can be built in a straight line, over a hilly terrain. ● Environmentally friendly: Low dust emissions. Material containers can be designed so as to rule out any soiling of the environment. ● Last mile connectivity: Ropeway projects adopting 3S (a kind of cable car system) or equivalent technologies can transport 6000-8000 passengers per hour. ● Ideal for difficult / challenging / sensitive terrain

Answer 133

approved by Union Cabinet in July 2021 1. It is **a reforms-based and results-linked scheme**. 2. It seeks **to improve the operational efficiencies and financial sustainability** of all DISCOMs/Power Departments excluding Private Sector DISCOMs. 3. The scheme envisages the provision of **conditional financial assistance** to DISCOMs for strengthening supply infrastructure. 4. The **assistance will be based on meeting pre-qualifying criteria** as well as upon the achievement of basic minimum benchmarks by the DISCOM. 5. The scheme involves **a compulsory smart metering ecosystem** across the distribution sector—starting from electricity feeders to the consumer level, including in about 250 million households. 6. Scheme also focuses on funding for feeder segregation for unsegregated feeders. 7. The Scheme has **a major focus on improving electricity supply for the farmers and for providing daytime electricity** to them through solarization of agricultural feeders. **Implementation:** * Existing power sector reforms schemes such as [Integrated Power Development Scheme,](https://www.ipds.gov.in/) [Deen Dayal Upadhyaya Gram Jyoti Yojana](http://www.ddugjy.gov.in/), and [Pradhan Mantri Sahaj Bijli Har Ghar Yojana](https://www.india.gov.in/spotlight/pradhan-mantri-sahaj-bijli-har-ghar-yojana-saubhagya) will be merged into this umbrella program. * Each state would have its own action plan for implementation of the scheme rather than a ‘one-size-fits-all’ approach. * Nodal agencies for the scheme’s implementation are **Rural Electrification Corporation (REC)** Limited and Power Finance Corporation (PFC). **Objectives of the scheme:** 1. Reduction of average aggregate technical and commercial loss to pan-India levels of 12-15% by 2024-25. 2. Narrow the deficit between the cost of electricity and the price at which it is supplied to zero by 2024-25. 3. Developing institutional capabilities for modern DISCOMs. 4. Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.

Answer 134

* **Launch:** * December 2014. * **Nodal Agency:** * **Power Finance Corporation Ltd. (PFC)**, a [**Navratna**](https://www.drishtiias.com/to-the-points/paper3/sectors-of-indian-economy) **Central Public Sector Enterprise (CPSE)** under the administrative control of the Ministry of Power. * **Components:** * Strengthening of **sub-transmission and distribution networks** in the urban areas. * **Metering of distribution transformers / feeders / consumers** in the urban areas. * Schemes for **Enterprise Resource Planning (ERP) and IT enablement** of the distribution sector. * ERP helps in integrating the important parts of a business. * **Underground cabling** to include additional demand of States and [**smart metering**](https://www.drishtiias.com/daily-updates/daily-news-analysis/smart-meters) solution for performing **UDAY States and Solar panels on Govt. buildings** with net-metering are also permissible under the scheme. * **Objectives** * 24×7 Power supplies for consumers in Urban areas * Reduction of AT&C (aggregate technical and commercial) losses. * Providing access to power to all households. * **Eligibility:** * All Power Distribution Companies (Discoms) are eligible for financial assistance under the scheme. * **Funding Pattern:** * **GoI (Government of India) Grant:** 60% (85% for special category States). * **Additional Grant:** 15% (5% for special category States) - linked to achievement of milestones.

Answer 135

The objective of the ‘Saubhagya’ is to provide energy access to all by last mile connectivity and electricity connections to all remaining un-electrified households in rural as well as urban areas to achieve universal household electrification in the country. The beneficiaries for free electricity connections would be identified using Socio Economic and Caste Census (SECC) 2011 data. However, un-electrified households not covered under the SECC data would also be provided electricity connections under the scheme on payment of Rs. 500 which shall be recovered by DISCOMs in 10 instalments through electricity bill. There is no provision in the scheme to provide free power to any category of consumers. The cost of electricity consumption shall have to be paid by the respective consumers as per prevailing tariff of the DISCOM/Power Deptt. The Rural Electrification Corporation Limited (REC) will remain the nodal agency for the operationalisation of the scheme throughout the country.

Answer 136

* Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) envisage * creation of basic electricity infrastructure in villages / habitations, * strengthening & augmentation of existing infrastructure, * metering of existing feeders / distribution transformers / consumers to improve quality and reliability of power supply in rural areas. * Besides this, last mile connectivity and free electricity connections are also provided to BPL households only identified by the States as per their list.

Answer 137

● It is located in Palakkad District, Kerala. ● Built across the Siruvani river, a tributary of Bhavani River which forms part of the Cauvery basin. ● It was constructed in 1984 for supplying drinking water to the city of Coimbatore in Tamil Nadu. ● The catchment is in the reserve forests of both Kerala and Tamilnadu. ● Muthikulam hill is situated on the eastern side of the dam