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GS Paper: GS3-13.Infrastructure: Energy, Ports, Roads, Airports, Railways etc:

  • Oil Exploration in the Andaman Basin

    Why in the News?

    The Union Minister for Petroleum has revealed that India is on the brink of a Guyana-like oil discovery in the Andaman Sea

    Do you know?

    Guyana, now a major oil-producing nation, has seen 47% average real GDP growth since 2022, driven by offshore oil.

     

    Oil Exploration in the Andaman Basin

    About the Oil Exploration in Andaman Basin:

    • Location & Scale: It lies in the southeastern Bay of Bengal and covers about 2.25 lakh sq. km, making it one of India’s largest underexplored offshore sedimentary basins.
    • Geological Importance: It shares tectonic and structural similarities with nearby hydrocarbon-rich basins in North Sumatra (Indonesia) and Irrawaddy-Margui (Myanmar).
    • Historical Restrictions: The area was long considered a ‘No-Go’ zone due to environmental and strategic reasons, preventing oil exploration until recently.
    • Scientific Breakthrough: In 2020, Oil India Ltd launched the Deep Andaman Offshore Survey, which discovered mud volcanoes and Baratang formations — signs of hydrocarbon activity.
    • Data Entry into National Records: The survey findings were added to the National Data Repository (NDR) in 2023, making crucial geological data available to investors.
    • Rising Strategic Interest: The basin is now seen as vital for India’s energy security due to its deepwater potential and ability to cut down oil imports.
    • Recent Collaborations: Companies like ONGC partnered with TotalEnergies (France) in 2023 to explore deepwater blocks in the basin.

    Policy Shift that Enabled Exploration:

    • Introduction of HELP: The Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016, replacing the older NELP system with a more industry-friendly framework.
    • Licensing Reform: HELP provides a single license for all hydrocarbons — oil, gas, shale, and coal bed methane — removing the need for separate permits.
    • Revenue Sharing System: Instead of auditing costs, the government now receives a fixed share of revenue, simplifying financial compliance and reducing disputes.
    • OALP and Investor Flexibility: The Open Acreage Licensing Policy (OALP) allows companies to bid for exploration blocks of their own choosing throughout the year, encouraging customized investment.
    • Use of Geological Data: The National Data Repository (NDR) helps companies make informed decisions using extensive geological and seismic information.
    • Market Freedom: Under HELP, companies have the freedom to price and market their oil and gas, which boosts competitiveness and attracts private players.
    • Royalty Incentives: A graded royalty system reduces rates for deepwater and ultra-deepwater blocks, offsetting high-risk exploration like in the Andaman.
    [UPSC 2006] Which one of the following companies is associated with the exploration and commercial production of oil in Barmer Sanchore basin of Rajasthan?

    Options: (a) Cairn Energy * (b) Unocal Corporation (c) Reliance Energy Ventures (d) ONGC

     

  • What is India Energy Stack?

    Why in the News?

    The Union Ministry of Power announced the formation of a task force to design the India Energy Stack (IES) — a new Digital Public Infrastructure (DPI) for the energy sector.

    What is India Energy Stack?

    About India Energy Stack (IES):

    • Overview: IES is a Digital Public Infrastructure (DPI) initiative by the Ministry of Power.
    • Objective: It aims to create a unified, secure, and interoperable digital backbone for India’s entire energy ecosystem, including producers, grid operators, discoms, consumers, regulators, and markets.
    • Task Force: It is led by a 17-member task force with Nandan Nilekani as Chief Mentor, and RS Sharma as Chairperson, supported by REC Ltd as the nodal agency.
    • Implementation: A 12-month proof of concept (PoC) will pilot key components like the Utility Intelligence Platform (UIP) in states like Delhi, Gujarat, and Maharashtra.
    • Larger Impact: It is expected to support India’s transition to Net Zero, manage increasing renewable energy share, and enable consumer participation in energy trading.

    Key Features of India Energy Stack:

    • Scalability and Integration: It supports the integration of smart meters, real-time analytics, and battery storage systems, aligning with India’s energy digitisation goals.
    • Unique IDs: Provides digital identification for consumers, assets, and energy transactions, enabling seamless tracking and verification.
    • Real-Time Data Sharing: Consent-based, standardised data exchange mechanisms between stakeholders improve efficiency and transparency.
    • Open APIs: Allows integration of third-party solutions, encouraging innovation and energy fintech ecosystems.
    • Interoperability: Facilitates communication between currently fragmented digital platforms used by different state utilities and regulators.
    • Utility Intelligence Platform (UIP): A modular analytics layer to enable grid monitoring, load forecasting, demand-response, and consumer insights.
    • Peer-to-Peer Energy Trading: Empowers prosumers (producers + consumers) to buy, sell, or store energy using a digital marketplace.
    • Carbon Offset Tracking: Supports environmental compliance through transparent and verifiable emission reduction accounting.
    • Decentralised Energy Management: Enables small-scale producers and communities to participate in energy markets via smart contracts and virtual power plants.
    [UPSC 2016] Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?

    (a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy

    (b) Providing electricity to every household in the countries by 2018

    (c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time

    (d) Providing for financial turnaround and revival of power distribution companies*

     

  • What are Strategic Petroleum Reserves (SPR)?

    Why in the News?

    India is planning to establish six new Strategic Petroleum Reserve (SPR) sites to boost energy security amid rising global oil risks.

    About Strategic Petroleum Reserves (SPR):

    • Overview: SPRs are emergency stockpiles of crude oil maintained by the government to manage supply disruptions caused by events like wars, embargoes, or price shocks.
    • Purpose: To ensure national energy security and reduce vulnerability to external supply shocks.
    • Historical Context: India realised the need for SPRs after the 1990 Gulf War, which caused supply cuts and spiking oil prices and ultimately the Balance of Payment (BoP) Crisis.
    • Foundation: The SPR project began in the early 2000s based on advice from the Planning Commission’s Integrated Energy Policy.
    • Governing Body: In 2004, the government set up Indian Strategic Petroleum Reserves Limited (ISPRL) as a Special Purpose Vehicle under the Oil Industry Development Board (OIDB).
    • India’s three-pronged oil security framework:
      1. Commercial oil stocks by public and private oil marketing companies (OMCs).
      2. Strategic reserves by ISPRL for emergencies.
      3. Equity oil assets abroad through companies like ONGC Videsh Ltd. (OVL).
    • Storage: Unlike commercial stocks, SPRs are stored in underground rock caverns, which are safer, more secure, and suited for long-term preservation.

    Current SPR Infrastructure:

    • SPR Locations: India has three active SPR sites:
      • Visakhapatnam (Andhra Pradesh)
      • Mangaluru (Karnataka)
      • Padur (Karnataka)
    • Total Capacity: The combined SPR capacity is 5.33 MMT or roughly 39 million barrels.
    • Coverage Duration: This reserve can meet about 9.5 days of India’s daily oil requirement (≈5.5 million barrels/day).
    • Distinction from OMC Stocks: These strategic stocks are separate from commercial stocks held by companies like IOCL, HPCL, and BPCL.

    Planned Expansion of SPRs in India:

    • Goal: India aims to double SPR capacity due to rising geopolitical risks and import dependence.
    • New Facilities Planned:
      • Chandikhol (Odisha) – 4 MMT (in two phases)
      • Padur Phase II (Karnataka) – 2.5 MMT
    • 6 new SPR locations are being planned at various sites, including Mangalore SEZ (Karnataka) and salt caverns in Bikaner (Rajasthan).
    • Future Capacity: After expansion, India’s total SPR stock will be 11.83 MMT, covering around 22 days of national demand.
    • Strategic Vision: The long-term objective is to build up 90 days of oil reserves, in line with International Energy Agency (IEA) guidelines.

  • PM Gram Sadak Yojana

    Why in the News?

    The Ministry of Rural Development (MoRD) asked states to add QR codes to Prime Minister Gram Sadak Yojana (PMGSY) rural road boards to boost public monitoring and streamline upkeep via the eMARG platform.

    About PM Gram Sadak Yojana (PMGSY):

    • Launch: It was launched on December 25, 2000, by then PM Atal Bihari Vajpayee as a Central Sector Scheme to provide all-weather road connectivity to unconnected rural habitations.
    • Objective: The scheme helps bridge the rural-urban divide and improves access to markets, healthcare, education, and public services.
    • Implementation: It is now a centrally sponsored scheme led by the Ministry of Rural Development (MoRD) and supported by state governments.
    • Monitoring: Progress is tracked using e-MARG, a digital platform for monitoring road construction and maintenance.
    • Implementation Phases:
      1. Phase I (2000): Focus on connecting unconnected habitations.
      2. Phase II (2013): Upgrading roads built in Phase I to enhance rural infrastructure.
      3. Phase III (2019–2025): Consolidation of 1.25 lakh km of rural roads connecting habitations to Gramin Agricultural Markets, Higher Secondary Schools, and Hospitals. Cost: ₹80,250 crore (2019-2025). Funding: 60:40 (Centre), 90:10 for North-East and Himalayan States.
      4. Phase IV (2024–2029): Aims at constructing 62,500 km of all-weather roads to provide connectivity to 25,000 unconnected habitations with a focus on Left-Wing Extremism (LWE) areas, tribal areas, and remote regions.

    Key Features of PMGSY:

    • Rural Connectivity Focus: Targets habitations based on population thresholds (e.g., 500+ in plains, 250+ in hill/NE areas).
    • Funding Pattern: Initially 100% central funding; since 2015–16, it follows a 60:40 split (90:10 for NE and Himalayan states).
    • Maintenance Period: Contractors are responsible for road upkeep for 5 years post-construction.
    • Quality Assurance: Involves routine inspections and geo-tagged photographs to evaluate maintenance performance.
    • Economic Impact: Improves rural livelihoods, reduces migration, and enhances access to markets and services.
    [UPSC 2001] Consider the following schemes launched by the Union Government: I. Antyodaya Anna II. Gram Sadak Yojana III. Sarvapriya IV. Jawahar Gram Samriddhi Yojana. Which of these were announced in the year 2000?

    Options: (a) I and II* (b) II and IV (c) III and IV (d) I, II and III

     

  • FASTag Annual Pass Scheme

    Why in the News?

    Union Transport Minister announced a new FASTag-based Annual Pass system for private non-commercial vehicles (cars, jeeps, vans) to ensure smoother travel across National Highways.

    What are FASTags?

    • FASTag is a contactless toll payment system that uses Radio Frequency Identification (RFID) technology to enable automatic toll collection at National Highway toll plazas.
    • Managed by the National Highways Authority of India (NHAI) and National Payments Corporation of India (NPCI), it was launched in 2014 and became mandatory in 2021 for all four-wheeled vehicles.
    • It is a sticker affixed on a vehicle’s windshield, linked to a prepaid wallet or savings account. Toll charges are automatically deducted when the vehicle passes through an electronic toll gate.
    • It enhances convenience, reduces traffic congestion, and promotes digital payments across India’s highway network.
    • As per the Motor Vehicles Rules, FASTags are mandatory for all new four-wheelers and necessary for renewal of fitness certificates and national permits.

    About the FASTag Annual Pass Scheme:

    • Overview: It is a new initiative announced by the Ministry of Road Transport and Highways to provide cost-effective and hassle-free travel for private non-commercial vehicles.
    • Implementation: The pass will be effective from August 15, 2025, and is optional, intended for cars, jeeps, and vans (not for commercial vehicles).
    • Objectives: The scheme is designed to reduce per-trip costs (as low as ₹15/toll) and provide savings of up to ₹7,000 annually for frequent travelers.
    • Benefits: It allows unlimited passage at National Highway (NH) and National Expressway (NE) toll plazas for either:
      • One year, or
      • 200 toll crossings, whichever is earlier.

    Key Features:

    • Eligibility: Applicable only for non-commercial private vehicles with a valid, active FASTag linked to a registered vehicle number.
    • Activation: Can be activated via the Rajmargyatra mobile app or NHAI website with a one-time payment of ₹3,000 for FY 2025–26.
    • Validity: Covers 200 trips or one year and then reverts to regular FASTag mode unless renewed.
    • Trip Count:
      • Point-based plazas: Each pass counts as one trip per crossing.
      • Closed toll systems: Entry and exit combined count as one trip.
    • Transfer Restrictions: The pass is non-transferable and valid only for the vehicle on which the FASTag is registered.
    • Coverage: Valid only at NH and NE toll plazas managed by the Centre. It does not apply to state highway or local toll plazas.
    • Fee Revision: The base fee may be revised annually starting April 1 every year.
    • Existing Users: No need for a new FASTag if one is already affixed and active. The pass can be added on top of the existing tag after eligibility verification.
    [UPSC 2023] With reference to India’s projects on connectivity, consider the following statements:

    1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat.

    2. Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar.

    3. Bangladesh-China -India -Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China. How many of the above statements are correct? Options: (a) Only one (b) Only two (c) All three (d) None*

     

  • PM-WANI Scheme

    Why in the News?

    The TRAI ordered that public Wi-Fi hotspot operators under PM-WANI programme should not be charged more than twice what a residential broadband user paid for setting up a hotspot.

    What is the PM WANI Scheme?

    • Overview: PM Modi launched the Prime Minister Wi-Fi Access Network Interface (PM WANI) in December 2020.
    • Nodal agency: It is an initiative under the Department of Telecommunications (DoT).
    • Objective: To democratize internet access, particularly in remote and underserved areas.
    • Goals: It takes forward the goal of the National Digital Communications Policy, 2018 (NDCP) of creating a robust digital communications infrastructure.
    • Implementation: Leverages Public Data Offices (PDOs) established in public spaces like railway stations, banks, post offices, and more. Users can access the internet via Wi-Fi at these locations without requiring a SIM card.
    • PM-WANI ecosystem consists of four parts: 
      1. Public Data Office (PDO): It establishes the Wi-Fi Hotspots and provides internet access to users
      2. Public Data Office Aggregator (PDOA):  It provides authorisation and accounting services to PDOs.
      3. App Provider: It displays the available hotspots in the phone’s proximity.
      4. Central Registry: This overseen by the Centre for Development of Telematics maintains details of App Providers, PDOs, and PDOAs.
    • How to Utilize PM WANI?
      • To access PM WANI services, users must install the Data PM WANI app on their smartphones.
      • Through the app, users can connect to nearby public Wi-Fi PDOs.
      • This application facilitates seamless connectivity to PM-WANI-compliant Wi-Fi hotspots, empowering users to access broadband services conveniently.

    Role of Public Data Offices (PDOs):

    • The PM-WANI scheme includes a provision for establishing Public Data Offices (PDOs) by rural entrepreneurs in remote regions.
    • These PDOs procure internet bandwidth from telecom service providers or ISPs to offer Wi-Fi services at minimal charges.
    • This model enables individuals to access the internet even in areas with limited or no data connectivity.
    [2018] Which of the following is/are the aim/aims of “Digital India” Plan of the Government of India?

    1. Formation of India’s own Internet companies like China did.
    2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
    3. Connect many of our villages to the Internet and bring Wi-Fi to many of our school, public places and major tourists.

    Select the correct answer using the codes given below:

    (a) 1 and 2 only

    (b) 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

     

  • PRASHAD Scheme

    Why in the News?

    The long-awaited Chamundi Hills development project in Karnataka is finally gaining momentum under the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme.

    About the PRASHAD Scheme:

    • Launch: It was launched in 2014–15 by the Ministry of Tourism.
    • Core Objective: It aims to revitalize pilgrimage sites and develop spiritual tourism infrastructure across India.
    • Scope and Mission: In 2017, PRASHAD was upgraded to a National Mission, integrating features of the HRIDAY scheme to create a unified heritage and spiritual site development model.
    • Cultural Focus: The scheme emphasises cultural preservation, community involvement, and promoting both domestic and international spiritual tourism.
    • Implementation:
      • Executing Agencies: Projects are executed by state-level agencies appointed by the respective state or union territory governments.
      • Funding Model: The scheme offers 100% central financial assistance for eligible infrastructure and development components.
      • Public-Private Support: It encourages Corporate Social Responsibility (CSR) contributions and Public-Private Partnerships (PPP) to expand sustainability and local ownership.
      • Centre-State Collaboration: Implementation is designed to ensure close cooperation between central and state governments while respecting local cultural and religious traditions.

    Key Features:

    • Infrastructure Development: Roads, drinking water, sanitation, solid waste management, lighting, and public conveniences at pilgrimage sites.
    • Connectivity Enhancement: Improved rail, road, and air links to facilitate easier access for pilgrims.
    • Pilgrim Facilities: Creation of accommodation, food courts, wayfinding systems, and security measures for safe and hygienic pilgrimages.
    • Cultural Conservation: Restoration of temples, monuments, ghats, and sacred lakes; integration of cultural traditions in tourism.
    • Community Empowerment: Skill training for locals, development of tourism-linked jobs, and stakeholder participation in project design and operation.
    • Sustainability Focus: Use of eco-friendly technologies, green energy, and promotion of responsible tourism to reduce environmental impact.
    [UPSC 2022] The Prime Minister recently inaugurated the new Circuit House near Somnath Temple at Veraval. Which of the following statements are correct regarding Somnath Temple?

    1. Somnath Temple is one of the Jyotirlinga shrines.

    2. A description of Somnath Temple was given by Al-Biruni.

    3. Pran Pratishtha of Somnath Temple (installation of the present day temple) was done by President S. Radhakrishnan.

    Select the correct answer using the code given below:

    Options: (a) 1 and 2 only * (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

     

  • Urbanisation and the challenge of ideal transit solutions 

    Why in the News?

    India’s path to becoming a “Viksit Bharat” by 2047 relies on transforming its urban areas, as over 60% of the population is expected to live in cities by the 2060s.

    What are the main challenges India faces in achieving efficient urban mobility?

    • Insufficient Public Transport Coverage: Only 37% of urban residents have easy access to public transport, compared to over 50% in countries like Brazil and China. Eg: Many Tier-2 cities still lack proper metro or bus services.
    • Shortage of Urban Buses: India needs about 2,00,000 urban buses, but currently has only 35,000 (including e-buses). Eg: Overcrowded buses in Delhi and Bengaluru during peak hours show the supply-demand gap.
    • Poor Last-Mile Connectivity: Even when metros are available, the cost and difficulty of reaching homes or offices from stations reduce usage. Eg: Metro commuters in Mumbai often rely on expensive auto-rickshaws for last-mile travel.
    • High Cost and Low Returns from Metro Projects: Metros are expensive and slow to build, with lower-than-expected ridership, making cost recovery hard. Eg: Many phases of the Jaipur Metro remain underutilized due to low footfall.
    • Limited Government Subsidies and Private Investment: Unlike developed nations, India cannot afford large recurring subsidies, and private investment is low due to uncertain returns. Eg: E-bus projects in Pune face delays due to funding and maintenance challenges.

    Why is the current investment in metro and e-bus infrastructure falling short?

    • High Cost and Low Ridership: Metro projects involve huge capital and operational costs, but often fail to attract enough passengers to recover expenses. Eg: The Lucknow Metro struggles with low ridership despite high investment.
    • Fare Sensitivity and Last-Mile Issues: People are price-sensitive, and poor last-mile connectivity discourages use of metros and e-buses. Eg: In Hyderabad, a small hike in metro fares led to a drop in daily commuters.
    • Unsustainable Operational Models: E-buses have high replacement and maintenance costs, making them financially unviable in the long run. Eg: Many cities like Nagpur face challenges maintaining their e-bus fleets without subsidies.

    How do trams compare to e-buses in terms of long-term cost-effectiveness?

    • Higher Long-Term Profitability: Trams show about 45% profitability over their typical 70-year life cycle, making them more financially sustainable. Eg: European cities like Vienna continue to expand tram networks due to long-term cost benefits.
    • Lower Operational and Replacement Costs: Trams require less frequent replacements and have lower running costs compared to e-buses, which face high battery and maintenance expenses. Eg: Kolkata’s tram system, though outdated, still operates at a lower cost than many new e-bus services.
    • Better Scalability and Climate Alignment: Trams are more scalable in dense cities and better aligned with climate goals due to zero tailpipe emissions and use of electricity from clean sources. Eg: The planned Kochi tram project is being promoted as a sustainable alternative to road-based transport.

    Which schemes support urban transport in the Budget 2024?

    • PM e-Bus Sewa – Payment Security Mechanism: Aims to deploy and ensure reliable operations of 10,000 urban buses, including electric ones. Eg: Cities like Ahmedabad are using this to expand their bus fleet and improve service reliability.
    • PM e-Drive Scheme (PM Electric Drive Revolution in Innovative Vehicle Enhancement): Supports procurement of 14,000 e-buses, 1,10,000 e-rickshaws, as well as e-trucks and e-ambulances. Eg: New Delhi is using funds to order e-ambulances and expand its e-rickshaw fleet under this initiative.

    Way forward: 

    • Integrated Multi-Modal Transport Planning: Develop seamless connectivity between metro, buses, e-rickshaws, trams, and non-motorised transport (NMT) to reduce last-mile gaps and improve user convenience.
    • Prioritise Cost-Effective and Sustainable Modes: Encourage trams and trolleybuses in high-density corridors through life-cycle cost analysis, while ensuring targeted subsidies for low-income commuters and investment in green fuels like bio-CNG and hydrogen.

    Mains PYQ:

    [UPSC 2019] How is efficient and affordable urban mass transport key to the rapid economic development of India?

    Linkage: The article talks about different types of public transport like buses, metros, trams, and trolleybuses, and how important it is to choose options that are affordable and effective. It stresses the need for a strong and efficient public transport system to deal with the growing challenges of travel in cities. As more people move to cities, the article says urban areas will play a key role in driving India’s economic growth, making good public transport even more important.

     

  • PM inaugurates Chenab Railway Bridge

    Why in the News?

    Prime Minister inaugurated the world’s highest railway bridge over the Chenab River in Jammu and Kashmir.

    About the Chenab Rail Bridge:

    • Location: The Chenab Rail Bridge is the world’s highest railway bridge, situated over the Chenab River in Reasi district, Jammu and Kashmir. It is part of the Udhampur–Srinagar–Baramulla Rail Link (USBRL).
    • Height: The bridge rises to a height of 359 metres, which is 35 metres taller than the Eiffel Tower.
    • Structure and Length: It has a total length of 1,315 metres, comprising a 530-metre approach bridge and a 785-metre steel arch bridge.
    • Project Execution: Constructed by Konkan Railway Corporation, with contributions from Afcons Infrastructure, Ultra Construction & Engineering (South Korea), and VSL India.
    • Design and Engineering:
      • IISc Bengaluru designed the foundation.
      • IIT Delhi and IIT Roorkee conducted seismic analysis.
      • DRDO ensured it is blast-proof.
    • Durability and Safety: The bridge can withstand magnitude 8 earthquakes, blasts up to 40 tonnes of TNT, temperatures as low as -20°C, and wind speeds of 266 km/h.
    • Speed and Lifespan: It supports train speeds up to 100 km/h and has a lifespan of 120 years.
    • Key Milestones: The arch closure was completed in April 2021, and the Golden Joint Ceremony was held on August 13, 2022.

    PM also inaugurated Anji Bridge:

    • About: The Anji Bridge is India’s first cable-stayed railway bridge, built over the Anji River, a tributary of the Chenab.
    • Ranking: It is the second-highest railway bridge in India, after the Chenab Bridge.
    • Design: Originally planned as an arch bridge, the design was changed to cable-stayed due to geological challenges.
    • Structure Details: The total length is 725 metres, comprising an ancillary viaduct, approach bridge, and central embankment.
    • Features: It is supported by 96 cables ranging from 82 to 295 metres, with a deck width of 15 metres.
    • Resilience: The bridge is engineered to withstand seismic activity, unstable terrain, strong winds, heavy storms, and explosions.

     

    [UPSC 2025] Consider the following statements:

    I. Indian Railways have prepared a National Rail Plan (NRP) to create a future ready railway system by 2028. II. ‘Kavach’ is an Automatic Train Protection system developed in collaboration with Germany. III. ‘Kavach’ system consists of RFID tags fitted on track in station section.

    Which of the statements given above are not correct?

    Options: (a) I and II only (b) II and III only (c) I and III only (d) I, II and III*

     

  • Should India amend its nuclear energy laws?

    Why in the News?

    India is thinking about changing the Civil Liability for Nuclear Damages Act, 2010, and the Atomic Energy Act, 1962. These changes would let private companies build and run nuclear power plants.

    Why is there a proposal to amend India’s nuclear energy laws?

    • To Attract Private and Foreign Participation: Current laws like the Civil Liability for Nuclear Damage Act (CLNDA), 2010, deter foreign companies due to strict liability provisions. Amending them would enable global firms like Westinghouse (U.S.) and Électricité de France (EDF) to invest and supply nuclear technology.
    • To Meet India’s Clean Energy Targets: India aims to scale up nuclear capacity from 8 GW to 100 GW by 2047 as part of its low-carbon energy transition. Legal reforms are essential to unlock the necessary investments and partnerships to achieve this scale.

    What are the concerns about foreign investment and liability?

    • Foreign Companies Fear Being Blamed After Accidents: They worry they’ll be held legally responsible if something goes wrong, which could cost them a lot of money. Eg: U.S. company Westinghouse and French company Areva stayed away from India’s nuclear sector due to strict liability laws.
    • Indian Law Puts All Blame on the Operator: India’s current law makes the plant operator fully responsible, even if the equipment from foreign suppliers fails. Eg: If a part made by a foreign company causes a problem, only NPCIL (Indian operator) is blamed and has to pay.
    • Old Accidents Still Raise Worries: Events like the Bhopal Gas Tragedy make people cautious about giving foreign companies a free pass on liability. Eg: In 2012, the NDA opposed changes in law that would reduce foreign companies’ responsibility, citing past disasters.

    How will the amendments help achieve 100 GW capacity?

    • Enabling Foreign Participation: Amendments will remove liability-related hurdles, allowing global firms to invest and supply technology. Eg: Westinghouse (U.S.) and EDF (France) may enter Indian projects if liability norms align with international standards.
    • Boosting Domestic-Private Sector Involvement: Changes in laws like the Atomic Energy Act could allow Indian private companies to build and operate reactors. Eg: Companies like L&T and BHEL may contribute to infrastructure and component manufacturing at scale.
    • Attracting Investment in Advanced Reactors (SMRs): Legal clarity could attract funds and partnerships in Small Modular Reactors, helping scale capacity rapidly. Eg: New-age firms working on SMRs may partner with India if assured of returns and limited liability.

    What are Small Modular Reactors (SMRs)? 

    • Small Modular Reactors (SMRs) are compact nuclear power plants that produce up to 300 MW of electricity and are built in factories for easy transport and quicker installation.
    • They use advanced, safer designs with features like passive cooling and are ideal for remote areas, industrial use, and integration with renewable energy sources.

    What challenges exist in small modular reactor (SMR) technology transfer?

    • Profit-Driven Technology Sharing: Private foreign firms transfer technology only if it’s commercially viable, not for strategic or public interest reasons. Eg: U.S. companies will share SMR tech only if returns outweigh security or IP risks.
    • Restrictions by National Governments: Export controls and national security concerns limit what tech can be transferred internationally. Eg: The U.S. government regulates tech transfers; past transfers to China (like AP1000) led to cloning and IP misuse.
    • Partial Transfers and Proprietary Control: Even friendly countries often retain core tech and allow only partial local production. Eg: Russia’s Rosatom allowed India to build sub-components of VVER reactors but kept control over critical hot sections.

    What is the Convention on Supplementary Compensation (CSC)? 

    • The Convention on Supplementary Compensation (CSC) is an international treaty that establishes a global fund to provide prompt compensation to victims of nuclear accidents.
    • It assigns primary liability to nuclear plant operators while limiting supplier liability, ensuring faster financial support and shared responsibility among participating countries.

    Why is the Convention on Supplementary Compensation (CSC) important for nuclear compensation?

    • Ensures Quick Compensation Without Legal Delays: CSC focuses on giving fast financial help to victims of nuclear accidents without long court cases. Eg: After a nuclear incident, funds can be released immediately to affected people, unlike long litigation seen in Bhopal.
    • Fixes Responsibility on the Operator Only: CSC channels all liability to the nuclear plant operator, protecting suppliers unless there’s proven misconduct. Eg: If NPCIL runs the plant, it bears full responsibility, not companies like Westinghouse or Rosatom.
    • Creates an International Compensation Fund: It sets up a multi-tiered fund (including global contributions) to support countries during large-scale accidents. Eg: A country can access a global pool of money through CSC if the cost of a disaster exceeds national capacity.

    Way forward: 

    • Strengthen Legal Framework to Balance Liability and Investment: Amend India’s nuclear laws to align liability rules with international standards like the CSC, ensuring fair responsibility for operators while providing enough protection to attract foreign and private investments.
    • Promote Technology Transfer and Domestic Capacity Building: Create transparent policies and incentives that encourage foreign companies to share advanced nuclear technologies such as Small Modular Reactors (SMRs) with Indian firms, while simultaneously building India’s own manufacturing and operational capabilities to achieve energy targets sustainably.

    Mains PYQ:

    [UPSC 2018] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy.

    Linkage: The article  indicate that discussions are ongoing in India to amend its nuclear liability framework (specifically, the Civil Liability for Nuclear Damages Act (CLNDA), 2010, and the Atomic Energy Act (AEA), 1962). The primary reason for these proposed amendments is to allow private companies to build and operate nuclear energy-generation facilities and to expand India’s nuclear energy capacity from 8 GW to 100 GW by 2047, aligning with the country’s clean energy goals.