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

  • Places in news: Baralacha Pass

    For the first time ever, the Border Roads Organisation (BRO) has started work on reopening the crucial Baralacha Pass in Himachal Pradesh much before schedule to restore connectivity to Leh in Ladakh.

    Note all the Himalayan passes from their N-S sequences.

    Baralacha Pass

    • Bara-lacha la also known as Bara-lacha Pass is a high mountain pass in the Zanskar range connecting the Lahaul district in Himachal Pradesh to Leh district in Ladakh.
    • It is situated along the Leh–Manali Highway.
    • The Bhaga river, a tributary of the Chenab river, originates from Surya Taal lake, which is situated a few kilometres from the pass towards Manali.
    • The native name of Chenab “Chandrabhaga” represents the union of Chandra and Bhaga rivers downstream.
    • The pass also acts as a water-divide between the Bhaga River and the Yunan River.

    Why is this pass so important?

    • The BRO had kept crucial passes open for a longer duration to enable the Army to undertake advanced winter stocking for the thousands of additional troops deployed in Ladakh.
    • The team has traversed a total distance of 20 km in super high-altitude conditions scrupulously crossing the Baralacha La in the Zanskar range on foot amidst sub-zero freezing conditions.
    • Frequent avalanches and slides with 15 to 20 feet of snow accumulation.

  • Ramagundam Floating Solar Power Plant

    The country’s biggest floating solar power plant, by generation capacity at Ramagundam in Peddapalli district of Telangana is set to be commissioned by May-June.

    Try this PYQ:

    With reference to technologies for solar power production, consider the following statements :

    1. ‘Photovoltaics’ is a technology that generates electricity by direct conversion of light into electricity, while ‘Solar Thermal’ is a technology that utilizes the Sun’s rays to generate heat which is further used in electricity generation process.
    2. Photovoltaics generate Alternating Current (AC), while Solar Thermal generates Direct Current (DC).
    3. India has manufacturing base for Solar Thermal technology, but not for Photovoltaics.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 3

    (d) None

    Ramagundam Solar Plant

    • It would be one of the renewable (solar) energy plants being developed by NTPC with an installed capacity of 447MW in the Southern Region and the entire capacity would be commissioned by March 2023.
    • It will be spread over 450 acres of water surface area in the reservoir.
    • It will be the single location largest floating solar plant in the country as of now; 92 MW floating unit at Kayamkulam gas plant in Kerala and a 25 MW unit at Simhadri power plant.
    • In addition, we are setting up a 230 MW ground-mounted solar power plant in Ettayapuram near Tuticorin in Tamil Nadu

    Why floating solar?

    • One of the biggest advantages of floating solar panels is that the installations do not require valuable land space.
    • Many of these installations can take up unused space on bodies of water, such as hydroelectric dam reservoirs, wastewater treatment ponds, or drinking water reservoirs.
    • Additionally, installing solar panels out on open water reduces the need for tree removal and forest clearing, a practice used in the case of some larger solar panel installations.
    • The bodies of water that host floating solar arrays help cool down the solar equipment, which means the panels produce electricity at higher efficiencies in hot climates than they might otherwise.
    • The floating solar panel structure shades the body of water and reduces evaporation from these ponds, reservoirs, and lakes.
    • This is a particularly useful benefit in areas susceptible to drought, as water loss to evaporation can add up over time and contribute to a shortage.

  • [pib] SATAT Scheme

    Oil and Gas Marketing Companies (OGMCs) are inviting potential entrepreneur to procure Compressed Bio Gas (CBG) under the SATAT scheme.

    Try this MCQ:

    Q.SATAT is an initiative of the Government of India, aims at:

    (a) Promoting Self Help Groups in rural areas

    (b) Providing financial and technical assistance to young start-up entrepreneurs

    (c) Promoting affordable transportation

    (d) Providing affordable and quality education to the citizens for free

    SATAT Scheme

    • SATAT stands for Sustainable Alternative Towards Affordable Transportation.
    • It is an initiative aimed at setting up Compressed Bio-Gas production plants and makes them available in the market for use in automotive fuels by inviting Expression of Interest from potential entrepreneurs.
    • The initiative was launched in October 2018 by the Ministry of Petroleum & Natural Gas in association with the PSUs- Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd.

    Its implementation

    • CBG plants are proposed to be set up mainly through independent entrepreneurs.
    • CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative.
    • The 1,500-strong CNG stations network in the country currently serves about 32 lakh gas-based vehicles.
    • The entrepreneurs would be able to separately market the other by-products from these plants, including bio-manure, carbon-dioxide, etc., to enhance returns on investment.
    • So far 9 CBG plants have been commissioned and started supply of CBG under the scheme.
    • These plants are located in Andhra Pradesh (1No.), Gujarat (3 No.), Haryana (1 No.), Maharashtra (3 No.) and Tamil Nadu (1No.).

    Benefits of the programme

    There are multiple benefits from converting agricultural residue, cattle dung and municipal solid waste into CBG on a commercial scale:

    • Responsible waste management, reduction in carbon emissions and pollution
    • Additional revenue source for farmers
    • Boost to entrepreneurship, rural economy and employment
    • Support to national commitments in achieving climate change goals
    • Reduction in import of natural gas and crude oil
    • Buffer against crude oil/gas price fluctuations

    Back2Basics: Compressed Bio Gas (CBG)

    • Biogas is produced naturally through a process of anaerobic decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc.
    • After purification, it is compressed and called CBG, which has a pure methane content of over 95%.
    • CBG is exactly similar to the commercially available natural gas in its composition and energy potential.
    • With calorific value (~52,000 KJ/kg) and other properties similar to CNG, CBG can be used as an alternative, renewable automotive fuel.
    • Given the abundance of biomass in the country, CBG has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.

  • Government earnings from the spectrum auction

    The end of India’s first auction of telecommunications spectrum in five years was held with the government generating revenue of ₹77,815 crores from the exercise.

    What is Spectrum?

    • Devices such as cellphones and wireline telephones require signals to connect from one end to another.
    • These signals are carried on airwaves, which must be sent at designated frequencies to avoid any kind of interference.
    • The Union government owns all the publicly available assets within the geographical boundaries of the country, which also include airwaves.
    • With the expansion in the number of cellphones, wireline telephone and internet users, the need to provide more space for the signals arise from time to time.

    Spectrum allocations

    • Spectrum refers to the invisible radio frequencies that wireless signals travel over. The frequencies we use for wireless are only a portion of what is called the electromagnetic spectrum.
    • To sell these assets to companies willing to set up the required infrastructure to transport these waves from one end to another, the central government through the DoT auctions these airwaves from time to time.
    • These airwaves called spectrum is subdivided into bands that have varying frequencies.
    • All these airwaves are sold for a certain period of time, after which their validity lapses, which is generally set at 20 years.

    How has the industry been since the last auction?

    A lot has changed in the industry since 2016 when the previous auction took place.

    • In the last few years, there has been a consolidation in the industry, as a result of which there are only a few major players now.
    • While the user base has grown, the industry itself has witnessed unforeseen financial stress in the form of an important court case against it.
    • The reference is to the Supreme Court verdict last September that ordered telecom players to share revenues coming from even non-telecom services with the government.
    • It gave telecom companies 10 years to pay their Adjusted Gross Revenue (AGR) dues to the government, with 10% of the dues to be paid by March 31, 2021.

    Try this question for mains:

    Q.What are the various challenges faced by India’s telecom before the upgradation to 5G technology?

    What about the 5G rollout?

    • The auction for 5G is likely to happen later.
    • In the auction that was held last week the government offered spectrum for 4G in the following bands: 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz and 2,500 MHz.
    • The “king” in 5G, the C-band, which is the band between 3,300 MHz and 4,200 MHz, was not on offer in this round of auctions.

    How did this auction compare to the last round?

    • In 2016, about 40% of the 2,355 MHz of spectrum (at a reserve price of ₹5.6 lakh crore) was sold, giving the government ₹65,789 crores in revenue.
    • This time, the Centre has managed to get more.
    • The government said the revenue generated by the auction has exceeded its expectations, which was about ₹45,000 crore.

  • What is OPEC+?

    India, the world’s third-biggest oil importer, has said that the decision by major producers to continue with output cuts as prices move higher could threaten the consumption led-recovery in some countries.

    Try this PYQ:

    Q.The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

    (a) Crude oil

    (b) Bullion

    (c) Rare earth elements

    (d) Uranium

    What is the news?

    • The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed not to increase supply in April as they await a more substantial recovery in demand amid the COVID-19.
    • Crude prices rose after the announcement and are up 33% this year (meanwhile India flaring up prices to 100 Rs/litres for Petrol).

    What is OPEC+?

    • The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
    • OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
    • Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.

    Concerns for India

    • Rising oil prices are posing fiscal challenges for India, where heavily-taxed retail fuel prices have touched record highs, threatening the demand-driven recovery.
    • India imports about 84% of its oil and relies on West Asian supplies to meet over three-fifths of its demand.
    • As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery.
    • This would hurt consumers, especially in our price-sensitive market.

  • Reforms-Linked, Result-Based Scheme for Distribution’ (RLRBSD)

    The debt burden of discoms is estimated to touch 4.5 lakh crore by the end of 2020-21. This high level of debt underscores the need for reforms in the discoms. With this in view, RLRBSD has been launched by the Centre. The article highlights the issues with this scheme.

    Reforms-Linked, Result-Based Scheme for Distribution’ (RLRBSD)

    • In her FY22 Budget speech, Finance Minister proposed Electricity (Amendment) Bill, 2021, which intends to delicence the distribution business, bring in competition, and give the consumer power to choose her supplier.
    • She also unveiled the Rs 3 lakh crore electricity distribution reform programme to reduce losses and improve the efficiency of discoms.
    •  Against this background, the RLRBSD aims at helping discoms trim their electricity losses to 12-15% from the present level.
    • The aggregate technical and commercial (AT&C) losses and shortfall in the average revenue realisation from the sale of electricity vis-a-vis the average cost of supply or the ACS-ARR gap, are major causes for losses of discoms.
    • Accordingly, the scheme sets the target for both to be achieved by 2025.
    • It also aims to gradually narrow the deficit between the cost of electricity and the price at which it is supplied to ‘zero’ by March 2025.
    • It will also have a compulsory pre-paid and smart metering component to be implemented across the power supply chain, including in about 250 million households.

    Funding for RLRBSD

    • The Centre is expected to contribute around Rs 60,000 crore to the scheme’s corpus.
    • The rest may be raised from multilateral funding agencies such as ADB and World Bank (WB).
    • The Centre’s contribution will be met through the previous commitment of the ongoing schemes, viz. the Integrated Power Development Scheme (IPDS) and the Deen Dayal Upadhyaya Gram Jyoti Yojna (DDUGJY).
    • The funds will be released subject to discoms meeting reform-related milestones.

    Analysing RLRBSD against the context of UDAY

    • Under UDAY, discoms were required to reduce AT&C losses from 20.7% during 2015-16 to 15% by 2018-19.
    • During 2019-20, their AT&C losses were 18.9% against the 15% target for 2018-19.
    • Further, they were to reduce the ACS-ARR gap from Rs 0.59 per unit during 2015-16 to ‘zero’ by 2018-19.
    • The ACS-ARR gap during 2019-20, stood at Rs 0.42 per unit against target of ‘zero’ for 2018-19.
    • Simultaneously, the government gave them a financial restructuring package (FRP).
    • The FRP was nothing but a condoning of discoms’ staggering debt of about Rs 4 lakh crore.
    • Against this backdrop, aims of achieving those targets by 2025 under RLRBSD, which should have been achieved by 2018-19 under UDAY seems difficult.

    3 factors that contribute to  debt of discoms

    • 1) At the root of persistent and increasing losses of discoms is the orders issued by state governments to sell electricity to some preferred consumers, viz. poor households and farmers.
    • Electricity is supplied to these customers either at a fraction of the cost of purchase, transmission and distribution, or even free.
    • On the units sold to these groups, discoms incur colossal under-recovery.
    • 2) This is aggravated by AT&C losses—most of it plain theft.
    • 3) Inflated tariff allowed to independent power plants (IPPs) under purchase agreements adds to the revenue shortfall.

    Consider the question “Why the discoms in India require frequent bail-outs? How far will the Reforms-Linked, Reforms-Based Scheme for Distribution be successful in addressing the woes of discoms?”

    Conclusion

    The problem is entirely political. In a bid to win elections almost every political party promises sops which include, among others, power supply to farmers and poor households at a throwaway price or even free. As long as this effect of populist politics persists, the discoms will continue to be in the red, needing a bailout at frequent intervals.

  • Being petroleum independent

    The article discusses the steps taken by the government to improve fuel efficiency standards and the for the transition to clean sources of energy.

    Reducing energy import dependence

    • Speaking on the increase in petrol and diesel prices, Prime Minister emphasised the need for clean sources of energy.
    • Expanding and diversifying energy supply is good, but if India is to reduce its energy import dependence, it must look towards first managing the demand for petroleum products.
    • It is worthwhile to reflect on measures taken by the previous governments as well as this government in this context.

    Steps taken

    National Electric Mobility Mission Plan

    • The UPA-2 administration formulated fuel efficiency standards for passenger vehicles that are now in effect.
    • It also constituted the National Electric Mobility Mission Plan (NEMMP).
    • While well-intended, both these actions fell short in terms of ambition.
    • India’s 2022 fuel efficiency standards for passenger cars are nearly 20% less stringent than the European Union’s standards.
    • The NEMMP primarily focused on hybrid electric vehicles.
    • Most of the incentives under the NEMMP went towards subsidising mild hybrids instead of electric vehicles.

    Multiple fuel pathways

    • Recently, the government has encouraged multiple fuel pathways in the transport sector including natural gas.
    • The Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme now focuses largely on electric vehicles.
    • The government has also provided several additional fiscal and non-fiscal incentives to encourage a transition to electric vehicles.

    Steps need to be taken

    • There are many things that the government can and should do to
    • First, the government should formulate a zero-emissions vehicle (ZEV) programme that would require vehicle manufacturers to produce a certain number of electric vehicles.
    • At present, the electric mobility initiative in India is driven largely by new entrants in the two- and three-wheeler space.
    • A ZEV programme would require all manufacturers to start producing electric vehicles across all market segments.
    • The government should also strengthen fuel efficiency requirements for new passenger cars and commercial vehicles.
    • Two-wheelers, which consume nearly two-third of the petrol used in India, are not subject to any fuel efficiency standards.
    •  Adopting stringent fuel efficiency standards and a ZEV programme by 2024 can result in India’s petroleum demand peaking by 2030.
    • The FAME should be extended not only to all passenger cars and commercial vehicles but also to agricultural tractors.

    Conclusion

    As the economy recovers from the pandemic, the demand for petroleum products will rise, as will prices. But the government can save money for the consumer while enhancing long-term energy security by wielding the regulatory tools at its disposal.

     

  • India Energy Outlook Report, 2021

    The International Energy Agency (IEA) has recently released the India Energy Outlook 2021 report.

    Try this MCQ:

    Q.The Global Energy Transition Index recently seen in news is released by:

    a) International Energy Agency (IEA)

    b) World Economic Forum (WEF)

    c) International Renewable Energy Agency (IRENA)

    d) International Solar Alliance

    Highlights of the India Energy Outlook Report

    (1) Energy consumption

    • India at present is the fourth-largest global energy consumer behind China, the United States and the European Union.
    • It will overtake the European Union as the world’s third-largest energy consumer by 2030.
    • It will account for the biggest share of energy demand growth over the next two decades.

    (2) Energy demand

    • India accounts for nearly one-quarter of global energy demand growth from 2019-40 — the largest for any country.
    • Its share in the growth in renewable energy is the second-largest in the world, after China.
    • A five-fold increase in per capita car ownership will result in India leading the oil demand growth in the world.
    • Also, it will become the fastest-growing market for natural gas, with demand more than tripling by 2040.

    (3) Industrial consumption

    • By 2040, India is set to account for almost 20 per cent of global growth in industrial value-added, and to lead global growth in industrial final energy consumption, especially in steelmaking.
    • The nation accounts for nearly one-third of global industrial energy demand growth to 2040.

    (4) Dependence on fossil fuels

    • To meet its energy needs, India will be more reliant on fossil fuel imports as its domestic oil and gas production stagnates.
    • India’s oil demand is seen rising by rising by 74 per cent to 8.7 million barrels per day by 2040 under the existing policies scenario.
    • The natural gas requirement is projected to more than triple to 201 billion cubic meters and coal demand is seen rising to 772 million tonnes in 2040 from the current 590.

    (5) Coal trade

    • India currently accounts for 16 per cent of the global coal trade.
    • Many global coal suppliers were counting on growth in India to underpin planned export-oriented mining investments.

    (6) Per-capita emission

    • On a per-capita basis, India’s energy use and emissions are less than half the world average, as are other key indicators such as vehicle ownership, steel and cement output.
    • India will soon become the world’s most populous country, adding the equivalent of a city the size of Los Angeles to its urban population each year.

    About International Energy Agency

    • The IEA is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis.
    • It was initially dedicated to responding to physical disruptions in the supply of oil, as well as serving as an information source on statistics about the international oil market and other energy sectors.
    • At the end of July 2009, IEA member countries held a combined stockpile of almost 4.3 billion barrels of oil.
    • They are required to maintain total oil stock levels equivalent to at least 90 days of the previous year’s net imports.
    • The IEA acts as a policy adviser to its member states but also works with non-member countries, especially China, India, and Russia.
    • The Agency’s mandate has broadened to focus on the “3Es” of effectual energy policy: energy security, economic development, and environmental protection.

  • [pib] Mahabahu-Brahmaputra

    PM will launch the ‘Mahabahu-Brahmaputra’, lay the foundation stone of Dhubri Phulbari Bridge and perform Bhumi Pujan for construction of Majuli Bridge Assam.

    Click here to read all North-East related news.

    Mahabahu-Brahmaputra

    • The program is aimed at providing seamless connectivity to the Eastern parts of India and includes various development activities for the people living around River Brahmaputra and River Barak.
    • It will consist of the Ro-Pax vessel operations between Neamati-Majuli Island, North Guwahati-South Guwahati and Dhubri-Hatsingimari.
    • The Ro-Pax services will help in reducing the travel time by providing connectivity between banks and thus reducing the distance to be travelled by road.
    • PANI (Portal for Asset and Navigation Information) will act as a one-stop solution for providing information about river navigation and infrastructure.

    Dhubri Phulbari Bridge

    • PMwill lay the foundation stone for the four-lane bridge over the Brahmaputra between Dhubri (on North Bank) and Phulbari (on South Bank).
    • The proposed Bridge will be located on NH-127B, originating from Srirampur on NH-27 (East-West Corridor), and terminating at Nongstoin on NH-106 in the State of Meghalaya.
    • It will connect Dhubri in Assam to Phulbari, Tura, Rongram and Rongjeng in Meghalaya.
    • It will reduce the distance of 205 Km to be travelled by Road to 19 Km, which is the total length of the bridge.

    Majuli Bridge

    • PM will perform Bhumi Pujan for the two-lane Bridge on the Brahmaputra between Majuli (North Bank) and Jorhat (South Bank).
    • The bridge will be located on NH-715K and will connect Neematighat (on Jorhat side) and Kamalabari (on Majuli side).
    • The Construction of the bridge has been a long demand of the people of Majuli who for generations have been dependent on the ferry services to connect with the mainland of Assam.

  • Why are Petrol, Diesel prices rising?

    Diesel and petrol prices have hit record highs across the country.

    Govt explanation

    • The government reasons that global crude oil prices have risen by more than 50 per cent to over $63.3 per barrel since October, forcing oil retailers to increase pump prices.
    • That, however, is only partly true.
    • Indian consumers are already paying much higher than what they were paying last January, even though crude prices are yet to reach levels of early last year.

    Note: Petrol and diesel do not come under the purview of goods and services tax (GST).

    Fuel price dynamics in India

    • Retail petrol and diesel prices are in theory decontrolled — or linked to global crude oil prices.
    • It means that if crude prices fall retails prices should come down too, and vice versa.
    • But this does not happen in practice, largely because oil price decontrol is a one-way street in India.
    • When global crude oil prices fall and prices slide, the government slaps fresh taxes and levies to ensure that it rakes in extra revenues.
    • The consumer should have ideally benefited by way of lower pump prices, is forced to either shell out what she’s already paying or spend even more for every litre of fuel.
    • The main beneficiary in this subversion of price decontrol is the government.

    Why crude oil prices are rising now?

    • Prices collapsed in April 2020 after the pandemic spread around the world, and demand fell away.
    • But as economies have reduced travel restrictions and factory output has picked up, global demand has improved, and prices have been recovering.
    • The controlled production of crude amid rising demand has been another key factor in boosting oil prices, with Saudi Arabia voluntarily cutting its daily output.

    What is the impact of taxes on retail prices of auto fuels?

    • The central government hiked the central excise duty on petrol to Rs 32.98 per litre during the course of last year from Rs 19.98 per litre at the beginning of 2020.
    • It increased the excise duty on diesel to Rs 31.83 per litre from Rs 15.83 over the same period to boost revenues as economic activity fell due to the pandemic.
    • A number of states have also hiked sales tax on petrol and diesel to shore up their revenues.

    How much tax do we pay now?

    Currently, state and central taxes amount to around 180 per cent of the base price of petrol and 141 per cent of the base price of diesel in Delhi.

    How will these hikes impact inflation?

    • Experts note that the impact of rising fuel inflation has been counterbalanced by declining food inflation, but that consumers with greater expenditure on travel are feeling the pinch of higher prices.
    • Rising fuel inflation may pinch consumers who have to travel further for work and have access to affordable cereals etc.
    • The urban population would be more impacted by rising fuel prices than the rural population — however, a weak monsoon may lead to rural India being hit as farmers are forced to rely more on diesel-powered irrigation.