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

  • Digital Quality of Life Index, 2020

    India ranks among the lowest in the world in terms of Internet quality, according to the Digital Quality of Life Report.

    Note the following aspects:

    1)Organisation publishing the report

    2)India’s rank and its comparison with neighbors

    3)Rankers at the top

    Digital Quality of Life Index

    • It is global research released by online privacy solutions provider SurfShark.
    • It releases a report on the quality of digital wellbeing in 85 countries (81% of the global population), in terms of e-infrastructure.

    India’s ranking: Hits and Misses

    • India occupies 79th place, ranking below countries including Guatemala and Sri Lanka.
    • India makes it into the top 10 in terms of Internet affordability. With a ranking of nine, it outperforms countries such as the U.K., the U.S. and China.
    • Additionally, when it comes to e-government, India occupies the 15th place globally, just below countries like New Zealand and Italy.
    • However, at position 78, India’s Internet quality is one of the lowest across 85 countries analysed in the research.

    Global rankings

    • The report found that seven of the 10 countries with the highest digital quality of life are in Europe, with Denmark leading among 85 countries.
    • Canada stands out as a country with the highest digital quality of life in the Americas, while Japan takes the leading position in Asia.
    • Among the countries in Africa, people in South Africa enjoy the highest quality of digital lives whereas New Zealand leads in Oceania, outperforming Australia in various digital areas.

  • Bioethanol Blending in Petrol

    The government has set targets of 10 per cent bioethanol blending of petrol by 2022 and to raise it to 20 per cent by 2030 to curb carbon emissions and reduce India’s dependence on imported crude oil.

    Try this PYQ:

    Q.Given below are the names of four energy crops. Which one of them can be cultivated for ethanol?(CSP 2010)

    (a) Jatropha

    (b) Maize

    (c) Pongamia

    (d) Sunflower

    What is Ethanol Blended Petrol (EBP) Program?

    • Ethanol Blended Petrol (EBP) programme was launched in January 2003 for the supply of 5% ethanol blended petrol.
    • The programme sought to promote the use of alternative and environment-friendly fuels and to reduce import dependency for energy requirements.
    • OMCs are advised to continue according to the priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B-heavy molasses 3) C-heavy molasses and 4) damaged food grains/other sources.

    Bio-ethanol blend in India

    • 1G and 2G bioethanol plants are set to play a key role in making bio-ethanol available for blending but face challenges in attracting investments from the private sector.
    • 1G bioethanol plants utilise sugarcane juice and molasses, byproducts in the production of sugar, as raw material, while 2G plants utilise surplus biomass and agricultural waste to produce bioethanol.
    • Currently, domestic production of bioethanol is not sufficient to meet the demand for bio-ethanol for blending with petrol at Indian Oil Marketing Companies (OMCs).
    • Sugar mills, which are the key domestic suppliers of bio-ethanol to OMCs, were only able to supply 1.9 billion litres of bio-ethanol to OMCs equating to 57.6 per cent of the total demand of 3.3 billion litres.

    Hurdles in meeting the demand

    • Lack of infrastructure: Many sugar mills are best placed to produce bioethanol do not have the financial stability to invest in biofuel plants. There are also concerns among investors on the uncertainty over the price of bio-ethanol in the future.
    • Lack of raw materials: Presently there is no mechanism for depots where farmers could drop their agricultural waste. The central government should fix a price for agricultural waste to make investments in 2G bioethanol production an attractive proposition.
    • Rigid pricing mechanism: Sugars mills have to pay high prices for sugarcane set by the government even when there have been supplying gluts. The prices of both sugarcane and bio-ethanol are set by the central government.

    Way ahead

    • The government should provide greater visibility on the price of bioethanol that sugar mills can expect by announcing a mechanism by which the price of bio-ethanol would be decided.
    • 2G bioethanol not only provided a clean source of energy but also help provide greater income to farmers and prevent them from having to burn agricultural waste which can be a major source of air pollution.

  • Power sector reforms

    This article analyses the issue of affordability of electricity in the country and the factors making it expensive.

    How recent changes increased subsidy burden

    •  Recent policy measures like the the “Saubhagya” scheme have remarkably improved the first 3 ‘A’s, i.e., awareness, accessibility and availability.
    •  It has also increased the cost of supply due to an increase in LT distribution network length necessitating more conductors, meters, transformers, etc.
    • Most of the newly-added consumers are from rural areas of low-income states like UP and Bihar.
    • They belong to subsidised consumer categories, viz. agriculture, rural-domestic, etc.
    • Thus, the subsidy burden of respective state governments has increased.

    Affordability of subsidy by States

    • The state’s capacity to service power subsidy of its BPL consumers is dependent on its per capita income which varies from state to state.
    •  The central government provides no subsidy for this purpose.
    • Therefore, making electricity affordable for consumers becomes a priority for the power sector.
    •  Limiting focus only to reduction of the cross-subsidy burden of industries may not be fruitful.

    Policy steps to make electricity affordable

    1) Expedite overdue distribution reforms

    • While generation and transmission sectors have been unbundled, unbundling (segregation of carrier and content business) of distribution has been started yet.
    • Privatisation of, and governance reforms in, state-owned distribution companies are likely to unlock huge value and provide efficiency gains through loss reduction for making power affordable.

    2) Capping of stranded capacity charges

    • As of now, we have surplus installed capacity of around 370 GW against a peak demand of 183 GW.
    • So, any fresh capacity addition should be limited to projected load demand growth and replacement of retiring power plants.
    • This will reduce the stranded capacity charges the discoms are currently paying to gencos under their long-term power purchase agreements without taking any power from them under availability-based tariff regime.

    3) Scrap cost-plus regime

    • Now, when the country has sufficient installed capacity, it makes no sense to provide a risk-free 15.5% tax-free (or 22% after-tax) return on equity to the power companies.
    • No new project (except hydro and nuclear) should be allowed on cost-plus route or MoU route under section 62 of the Electricity Act.

    4) Restructure normative debt-equity financing to 80:20

    • At present, the regulatory norm used for tariff computation of projects is 70:30 debt: equity.
    • Debt servicing is limited only to the term of the loan, i.e., up to 12 years, but Return of Equity is allowed in perpetuity even after the plant has fully depreciated.
    • This needs to be limited to the useful life of the unit.

    5) No double-whammy for consumers:

    • National Clean Energy Fund was created as a non-lapsable fund in 2010 for promoting clean technology, and since then around Rs 1 lakh crore has been collected from coal cess.
    • However, most of it has been diverted and used for other purposes like funding to states for their GST losses, etc.
    • Asking gencos to install Fuel Gas Desulfurization and pass on the cost to the consumer amounts to a double whammy for the consumers who first paid the coal-cess and now will have to bear the FGD cost also.
    • We should stop using cess as a tax and NCEF should be used to fund the clean energy initiative and FGD installation etc.

    Consider the question “What are the factors responsible for making the electricity costly in India. Suggest the pathways to make it affordable to all.”

    Conclusion

    Making electricity affordable following these steps would be instrumental in the progress of the nation.

    Source: https://www.financialexpress.com/opinion/powering-reforms-bringing-power-psus-under-competitive-bidding-will-help-in-tariff-reduction/2057940/

    B2BASICS

    Electricty generation,transmission and Distribution

    Saubhagya scheme

  • Bhadbhut Project

    The Gujarat government recently awarded the contract for a the Bhadbhut project in Bharuch, Gujarat. It has faced protests from local fishermen for its likely impact on fishing patterns, notably those of hilsa.

    Make a note of major dams in India along with the rivers, terrain, major wildlife sanctuaries and national parks incident to these rivers.

    What is the Bhadbhut Project?

    • It is planned to be a 1.7-km causeway-cum-weir barrage with 90 gates, across the river Narmada, 5 km from Bhadbhut village, and 25 km from the mouth of the river, where it flows into the Gulf of Khambhat.
    • The barrage will stop most of the excess water flowing out of the Sardar Sarovar Dam from reaching the sea and thus create a “sweet water lake” of 600 mcm (million cubic metres) on the river.
    • The barrage will also have a six-lane road that will connect the left and right banks of the river and provide shorten the land distance between two large industrial estates in Surat and Bharuch.
    • The project also aims to prevent flooding in years when rainfall is higher than normal.
    • Embankments 22 km long will be made and will extend upstream towards Bharuch, from either side of the river.
    • The project is part of the larger Kalpasar Project, which entails the construction of a 30-km dam across the Gulf of Khambhat between Bharuch and Bhavnagar districts.
    • The reservoir is meant to tap the waters of the Narmada, Mahisagar and Sabarmati.

    Why are fishermen upset?

    • The barrage is expected to interfere with the migration and breeding cycle of hilsa.
    • A marine fish, hilsa migrate upstream and arrives in the brackish water of the Narmada estuary near Bharuch for spawning usually during the monsoon months of July and August, and continue doing so till November.
    • Once the barrage is built, it is expected to block its natural entry.

    About Hilsa Fish

    IUCN status: Least Concerned

    • The Hilsa is a species of fish related to the herring, in the family Clupeidae.
    • It is a very popular and sought-after food fish in the Indian Subcontinent.
    • Though it’s a saltwater fish, it migrates to sweet waters.
    • It is the national fish of Bangladesh and state symbol in the Indian states of West Bengal and Tripura.
    • The fish contributes about 12% of the total fish production and about 1.15% of GDP in Bangladesh.

  • One Sun, One World, One Grid (OSOWOG) Initiative

    The Union Ministry of New and Renewable Energy (MNRE) has put calls for proposals to the One Sun, One World, and One Grid (OSOWOG) initiative on hold till further notice.

    Try this PYQ:

    Q.Consider the following statements:

    1. The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015.
    2. The Alliance includes all the member countries of the United Nations.

    Which of the above statements is/are correct? (CSP 2016)

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    OSOWOG Initiative

    • Under the project, India envisaged having an interconnected power transmission grid across nations for the supply of clean energy.
    • The vision behind the OSOWOG mantra is ‘The Sun Never Sets’ and is a constant at some geographical location, globally, at any given point of time.
    • With India at the fulcrum, the solar spectrum can easily be divided into two broad zones viz. far East which would include countries like Myanmar, Vietnam, Thailand, Lao, Cambodia etc. and far West which would cover the Middle East and the Africa Region.

    Implementation

    • The OSOWOG would have three phases. In the first phase Phase I, Middle East, South Asia and South-East Asia would be interconnected.
    • In the second phase, solar and other renewable energy resources rich regions would be interconnected.
    • In the third phase would vie for global interconnection of the power transmission grid to achieve the One Sun One World One Grid vision.

    Benefits of the project

    • Attracting investment: An interconnected grid would help all the participating entities in attracting investments in renewable energy sources as well as utilizing skills, technology and finances.
    • Poverty allevation: Resulting economic benefits would positively impact poverty alleviation and support in mitigating water, sanitation, food and other socio-economic challenges.
    • Reduced project cost: The proposed integration would lead to reduced project costs, higher efficiencies and increased asset utilization for all the participating entities.

    Issues with project

    • It is hindered with the issues of intricate geopolitics, unfavourable economics, unwarranted globalisation and undue centralization that act against the concept.

  • Delhi government’s Electric Vehicle Policy

    Image source: TOI

    The Delhi government has notified the new Electric Vehicle Policy under which it aims to make a quarter of all new vehicle registrations battery-operated by 2024 and thereby help reducing air pollution.

    Try this PYQ:

    Q.In the context of proposals to the use of hydrogen-enriched CNG (H-CNG) as fuel for buses in public transport, consider the following statements:

    1. The main advantage of the use of H-CNG is the elimination of carbon monoxide emissions.
    2. H-CNG as fuel reduces carbon dioxide and hydrocarbon emissions.
    3. Hydrogen up to one-fifth by volume can be blended with CNG as fuel for buses.
    4. H-CNG makes the fuel less expensive than CNG.

    Which of the statements given above is/are correct? (CSP 2018)

    (a) 1 only

    (b) 2 and 3 only

    (c) 4 only

    (d) 1, 2, 3 and 4

    Some key highlights of the policy are:

    • A purchase incentive of Rs 5,000 per kilowatt/hour of battery capacity (advanced battery), a maximum incentive of Rs 30,000 per vehicle for two-wheelers.
    • A purchase incentive of Rs 30,000 per vehicle (advanced battery) for e-autos.
    • A purchase incentive of Rs 30,000 per vehicle for the purchase of one e-rickshaw and e-cart. Additionally, an interest subsidy of 5 per cent on loans on vehicles with advanced battery.
    • Conversion of 50 per cent of all new stage carriage buses (all public transport vehicles with 15 seats or more) by 2022.
    • A purchase incentive of Rs 10,000 per kilowatt/hour of battery capacity (advanced battery), and maximum incentive of Rs 150,000 per vehicle to the first 1,000 e-four wheelers.
    • Complete removal of road tax and registration fee for all battery electric vehicles.

    Significance of the policy

    • According to the VAHAN database of the Ministry of Road Transport and Highways, electric vehicles comprised only 3.2 per cent of the new vehicles registered in Delhi in 2019-20.
    • The proposed 25 per cent transformation of Delhi’s new-vehicle market could catalyse electric vehicle production and bring more product diversity.

  • Reforms driven agenda for the modernisation of railways

    Adoption of the PPP model by the Indian Railways will help it get rid of the many issues it suffers from. This article analyses the two initiative by the railways in this regard and spells out their advantages and challenges.

    Significance of railways

    • Its route spans about 68000 km.
    • It employs over 1.2 mn people and generates approximately Rs 2 lakh cr annually.
    • So, a major contributor to jobs, GDP, and mobility.
    • Efficient and optimal use of the railways could further add up to 1% to GDP.

    Adopting PPP model

    • The time has come to modernise the Indian Railways, make it world-class, and a key driver of the country’s growth.
    • To do so, India must involve the best resources via PPP to bring in the latest technology, leading practices, and efficiencies.
    • PPP has been actively deployed as a mechanism in Europe and Japan.

    Two initiatives of Indian Railways involving PPP model

    1. Operation of trains on selected route

    • Indian Railways’ proposal features a list of 109 pairs of routes through 151 trains to private operators.
    • Proposed routes include Delhi–Mumbai, Delhi–Chennai, Mumbai–Chennai, and others.
    • PPP operators are expected to finance, procure, operate, and maintain the allocated trains.
    •  The concession period will be for 35 years.

    Advantages

    • The initiative will bring in cutting-edge, technologically advanced rolling stock, shorter journey times, enhanced job growth, better safety, and best-in-class service standards.
    • It will bridge the demand-and-supply deficit for passengers.
    • The PPP investment is expected to be in the range of Rs 30,000 cr—in a Make in India–led growth strategy.
    • Encouraging domestic manufacturing of rolling stock, these projects will also create direct and indirect employment.

    2. Redevelopment of railway stations

    • Initially, 50 stations will be bid out and funded through land monetisation as well as user charges.
    • The modernisation and redevelopment of stations will be conducted primarily through Indian Railway Stations Development Corporation Limited, Rail Land Development Authority and other central government entities.
    • The PPP basis is under the Design, Build, Finance, Operate and Transfer model.
    • It entails utilising the potential of real estate for excess land and air space in and around the stations for development through PPP.
    • The 50 big stations have been planned to be bid out through the PPP route aimed at bringing in investments exceeding Rs 50,000–60,000 crores.

    Challenges involved in the adoption of PPP model

    • One of the primary challenges will be independence of adjudication in disputes.
    • Other issues will be the pricing strategy to remain competitive yet stay profitable, given the competition through air, road, and to some extent, water transport.
    • An independent regulator could go a long way towards allaying concerns of equitable treatment of PPP operators and ought to be considered strongly.

    Consider the question “Examine the opportunities and challenges in the adoption PPP model by the Indian Railways.”

    Conclusion

    The introduction of PPP in Railways is a welcome step and can lead to the kind of reforms that can help transform India and make it a global leader.

    Source

    https://www.financialexpress.com/infrastructure/railways/reforms-driven-agenda-why-its-time-to-modernise-the-indian-railways-make-it-world-class/2044774/

  • [pib] Bharat Airfiber

    The Union Ministry of Communications has inaugurated “Bharat Air Fibre Services” at Akola in Maharashtra.

    Try this PYQ from CSP 2018:

    Q: 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. Established a policy framework to encourage overseas multinational corporations that collect big data to build their large data centers within our national geographical boundaries.
    3. Connect many of our villages to the internet and bring WiFi to many of our schools, public places and major tourist centers.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

    Bharat Air Fibre Services

    • The Bharat Air Fibre services are introduced by BSNL as part of Digital India initiates by the GoI.
    • It aims to provide Wireless Connectivity in the range of 20 KMs from the BSNL Locations.
    • It provides internet connectivity upto 100 Mbps speed.
    • It is completely wireless and offers broadband up to 10Mbps up to a distance of 5 Kms.
    • These services are special and different from other operators as BSNL is providing unlimited free voice calling.
    • Customers at remote places also will be benefitted as BSNL comes with the cheapest services with the support of Telecom Infrastructure Partners (TIPs).

  • [pib] RAISE Initiative

    The Ministry of Power has launches Retrofit of Air-conditioning to improve Indoor Air Quality for Safety and Efficiency (RAISE) – a joint initiative of EESL and USAID.

    Possible prelims question:
    Q. The MAITREE programme recently seen in news is related to:
    Trade/Energy Efficiency/Climate Change/ Strategic Relations

    RAISE Initiative

    • It aims to ensure cleaner and greener office spaces in the country.
    • This is a part of the larger initiative developed for healthy and energy-efficient buildings, in partnership with US Agency for International Development’s (USAID) MAITREE programme.

    Why RAISE?

    • Poor air quality has been a concern in India for quite some time and has become more important in light of COVID pandemic.
    • As people return to their offices and public spaces, maintaining good indoor air quality is essential for occupant comfort, well-being, productivity and overall public health, the statement noted.

    About MAITREE programme

    • The Market Integration and Transformation Program for Energy Efficiency (MAITREE) is a part of the US-India bilateral Partnership between the Ministry of Power and USAID.
    • It is aimed at accelerating the adoption of cost-effective energy efficiency as a standard practice within buildings and specifically focuses on cooling.

    Back2Basics: EESL

    • Energy Efficiency Services Limited (EESL), under the administration of Ministry of Power, is working towards mainstreaming energy efficiency.
    • It is implementing the world’s largest energy efficiency portfolio in the country.
    • EESL aims to create market access for efficient and future-ready transformative solutions that create a win-win situation for every stakeholder.

    About USAID:

    • USAID is the world’s premier international development agency and a catalytic actor driving development results.

  • Privatisation of Indian Railways

    Indian Railways has launched the process of opening up train operations to private entities on 109 origin-destination (OD) pairs of routes using 151 modern trains.

    Objectives of privatisation

    • To introduce modern technology rolling stock with reduced maintenance.
    • Reduced transit time.
    • Boost job creation.
    • Provide enhanced safety.
    • Provide world-class travel experience to passengers.
    • Reduce demand-supply deficit in the passenger transportation sector.

    Issues with the move

    1) Responsibility issue

    •  Railway crew will work the trains (151 trains in 109 routes) which will be maintained by the private investor.
    • All the other infrastructure, track and associated structures, stations, signalling, security and their daily maintenance owned by the Railways will be fully utilised in running trains.
    • Thus, the responsibility of the private investor ends with investment in the procurement and maintenance of coaches.
    • Train operation, safety and dealing with every day problems rests with the Railways.
    • In case of an unfortunate event, fixing responsibility will be an issue.

    2) Day-to-day problems

    • Provision of an independent regulator to resolve disagreement, discords and disputes.
    • But this regulator will not be able to solve day-to-day problems of dichotomy unless the basic issue is resolved.

    3) Speed issue

    • Nearly all trunk routes in the existing network are speed limited to 110 kmph very few permit speeds of upto 120-130 kmph.
    • To raise it to 160 kmph, as proposed, there has to be track strengthening, elimination of curves and level crossing gates and strengthening of bridges.
    • There is no appreciable reduction in transit time for most proposed trains, when compared with the timings of the fastest train now operating on that route.

    4) Passenger fare issue

    • In the proposal, the Railways or government have no role in fixing passenger fares.
    • Fares will be beyond the common man’s reach.
    • Fare concessions extended to several categories of people will not be made available by the private investor.
    • The very objective of commissioning the Railways as a public welfare transport organisation is defeated.

    5) Reservation in Jobs

    • The private investor is not bound to follow reservation regulations in employment.
    • This, in turn, will deprive employment opportunities for those who are on the margins of society.

    6) Limited Coverage:

    • An advantage of Indian Railways being government-owned is that it provides nation-wide connectivity irrespective of profit.
    • Privatisation of railways would mean the railways will become a profit-making enterprise, this would lead to the elimination of railways routes that are less popular.
    • Thus, the privatisation of railways can have a negative impact on connectivity and further increase the rural-urban divide.

    7) Impact on the Economy:

    • Indian Railways is the backbone of India, it provides low fare transportation to agricultural and industrial trade.
    • Therefore, privatisation of Indian railways shall definitely affect the Indian economy at large.
    • Way forward
    • There should be no need for the government to take a dual role of a facilitator as well as a participant.
    • In the case of the metro railway services, Hyderabad, for example, an ideal PPP project, the concessionaire is solely responsible for daily maintenance, operation, passenger amenities and staff issues.
    • The State government steps in when it comes to land, power, permissions, law and order, etc. Fare determination is in consultation with the government.
    • Instead of a private entrepreneur, Indian Railway Catering and Tourism Corporation, a government undertaking which has gained experience in running the Tejas Express trains, could have been given the role.

    Consider the question “Indian Railways often hailed as the lifeline of the country continues suffering from several issues. In light of this, evaluate the pros and cons of the privatisation of railways.”

    Conclusion

    This project of privatisation of trains should not result in the common man being deprived of travel facilities. The Indian Railways is a strategic resource for the nation hence it should not be judged solely on its profit-generating capability or market-based return on investment.