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  • What is lacking in our China policy

    While formulating our response to China’s aggressive policies in Ladakh, we should first understand their objectives. This article explains these objective and suggests the steps to deal with China’s policies.

    Statements on Aksai Chin and Pakistan

    • Statements over Aksai Chin and Pakistan-occupied Kashmir (PoK) by India have painted the image of India as a revanchist power in utter disregard of the country’s capabilities.
    • These statements also gave the impression that India precludes any attempt at changing the status quo on either front.
    • Though these statements were justifiable in terms of India’s legal rights to these territories, were ill-timed.

    How these statements were perceived by China

    • They were made when Beijing was feeling alarmed at the Indian government’s decision to separate Ladakh from Jammu and Kashmir.
    • The move augmented its perception that it was a prelude to India’s attempt to change the status quo in Aksai Chin.
    • India’s assertion of its claims on PoK that in China’s perception threatened the China-Pakistan Economic Corridor project.

    China’s 4 strategic objectives

    1. India and China are not equals

    • China wants India to understand that it is not in the same league as China.
    • China resorts to periodic assaults across the Line of Actual Control (LAC) if India tries to assume a position of equality.

    2. Keep India away from interfering in Indo-Pacific

    • China wants India not to actively oppose Chinese designs to dominate the Indo-Pacific region.
    • Also, China wants Indias to refrain from aligning with the U.S. and its allies — Japan and Australia, in particular — in an attempt to contain China.

    3. Keeping India preoccupied with problems

    • China’s strategy also includes keeping India preoccupied with problems in its immediate neighbourhood.
    • So with these problems, India cannot act as an alternative pole of power to China in the broader Asian region.

    4. Supporting Pakistan to neutralise India

    • As part of the last objective, China supports  Pakistan economically and militarily, including the sharing of nuclear weapons designs.
    • China uses Pakistan to neutralise India’s conventional power superiority vis-à-vis that country.

    An understanding of these objectives is essential to fashioning a realistic Indian response to China’s aggressive policies in Ladakh and elsewhere along the LAC.

    But, what about Pakistan?

    • Pakistan is at best an irritant for India. (so, focus on China)
    • Pakistan can be managed with the use of diplomatic tools, international opprobrium, and superior military force.
    • In fact, the Pakistani challenge to India has become magnified because of its nexus with China.

    What India should do?

    • India’s main strategic goal should be the adoption of carefully calculated policies that neutralise China’s diplomatic and military clout in the Asia-Pacific region.
    • While doing so, India should not appear as a surrogate for other powers.
    • And India should also ensure that in making alliances it in not sacrificing the autonomy of decision-making in foreign policy. 

    Consider the question “Understanding of China’s objective is essential to formulate a realistic response to its aggressive policies in Ladakh.” Comment.

    Conclusion

    Understanding the greater threat posed by China vis-a-vis Pakistan should be the basis of India’s policy towards China.

  • Explained: How are elections to the Rajya Sabha held?

    Another round of Rajya Sabha elections has been completed. There are several features that distinguish elections to the Council of States, or the Upper House of Parliament, from the general elections.

    Do you know?

    • Only two UTs elect members to the Rajya Sabha, not all.
    • Polling is held only if the number of candidates exceeds the number of vacancies.
    • Independent members can also be elected etc.

    Read this newscard for all such interesting facts which can be directly asked in the prelims.

    What is so peculiar about the Rajya Sabha polls?

    • A third of MPs in the Rajya Sabha (which is a permanent House and is not subject to dissolution), from each State, retire once in two years and polls are held to fill up the vacancies.
    • Only elected members of the State Legislative Assemblies can vote in a Rajya Sabha election.
    • The legislators send a batch of new members to the Upper House every two years for a six-year term.
    • In addition, vacancies that arise due to resignation, death or disqualification are filled up through by-polls after which those elected serve out the remainder of their predecessors’ term.

    Composition of Rajya Sabha

    • A bloc of MPs belonging to one or more parties can elect a member of their choice if they have the requisite numbers.
    • This is to avoid the principle of majority, which would mean that only candidates put up by ruling parties in the respective States will be elected.
    • The Delhi and Puducherry Assemblies elect members to the Rajya Sabha to represent the two UTs.

    What is the election process?

    • Polling for a Rajya Sabha election will be held only if the number of candidates exceeds the number of vacancies.
    • Since the strength of each party in the Assembly is known, it is not difficult to estimate the number of seats a party would win in the Rajya Sabha poll.
    • In many states, parties avoid a contest by fielding candidates only in respect to their strength. Where an extra candidate enters the fray, voting becomes necessary.
    • Candidates fielded by political parties have to be proposed by at least 10 members of the Assembly or 10% of the party’s strength in the House, whichever is less.
    • For independents, there should be 10 proposers, all of whom should be members of the Assembly.

    Voting procedure

    • Voting is by single transferable vote, as the election is held on the principle of proportional representation.
    • A single transferable vote means electors can vote for any number of candidates in order of their preference.
    • A candidate requires a specified number of first preference votes to win. Each first choice vote has a value of 100 in the first round.
    • To qualify, a candidate needs one point more than the quotient obtained by dividing the total value of the number of seats for which elections are taking place plus one.

    Example: If there are four seats and 180 MLAs voting, the qualifying number will be 180/5= 36 votes or value of 3,600.

    Why do not the Rajya Sabha polls have a secret ballot?

    • The Rajya Sabha polls have a system of the open ballot, but it is a limited form of openness.
    • As a measure to check rampant cross-voting, which was taken to mean that the vote had been purchased by corrupt means.
    • There is a system of each party MLA showing his or her marked ballots to the party’s authorised agent (called Whip), before they are put into the ballot box.
    • Showing a marked ballot to anyone other than one’s own party’s authorised agent will render the vote invalid.
    • Not showing the ballot to the authorised agent will also mean that the vote cannot be counted.
    • And independent candidates are barred from showing their ballots to anyone.

    Is there any NOTA option in voting?

    • The ECI issued two circulars, on January 24, 2014, and November 12, 2015, giving Rajya Sabha members the option to press the NOTA button in the Upper House polls.
    • However, in 2018, the Supreme Court struck down the provision, holding that the ‘none of the above’ option is only for general elections.
    • It cannot be applied to indirect elections based on proportional representation.

    Does cross-voting attract disqualification?

    • The Supreme Court, while declining to interfere with the open ballot system, ruled that not voting for the party candidate will not attract disqualification under the anti-defection law.
    • As voters, MLAs retain their freedom to vote for a candidate of their choice.
    • However, the Court observed that since the party would know who voted against its own candidate, it is free to take disciplinary action against the legislator concerned.

    Can a legislator vote without taking oath as a member of the Assembly?

    • While taking oath as a member is for anyone to function as a legislator, the Supreme Court has ruled that a member can vote in a Rajya Sabha election even before taking oath as a legislator.
    • It ruled that voting at the Rajya Sabha polls, being a non-legislative activity, can be performed without taking the oath.
    • A person becomes a member as soon as the list of elected members is notified by the ECI, it said.
    • Further, a member can also propose a candidate before taking the oath.
  • Secrecy of ballot is the cornerstone of free and fair elections, says Supreme Court

    • Secrecy of ballot is the cornerstone of free and fair elections. The choice of a voter should be free and the secret ballot system in a democracy ensures it, the Supreme Court has held in judgment.
    • The judgment came on an appeal against the Allahabad High Court decision setting aside the voting of a no-confidence motion in a Zila panchayat in Uttar Pradesh in 2018.

    Practice question for mains:

    Q. Discuss how Secrecy of Ballot is the cornerstone of free and fair elections in India.

    What is the Secret Ballot?

    • The secret ballot, also known as Australian ballot, is a voting method in which a voter’s choices in an election or a referendum are anonymous.
    • It aims for forestalling attempts to influence the voter by intimidation, blackmailing, and potential vote-buying.
    • The system is one means of achieving the goal of political privacy.

    What did the Supreme Court rule?

    • The principle of secrecy of ballots is an important postulate of constitutional democracy, the court said.
    • Justice Khanna, who wrote the judgment, referred to Section 94 of the Representation of People Act, which upholds the privilege of the voter to maintain confidentiality about her choice of vote.
    • It is the policy of the law to protect the right of voters to the secrecy of the ballot.
    • Even a remote or distinct possibility that a voter can be forced to disclose for whom she has voted would act as a positive constraint and a check on the freedom to exercise of the franchise.

    Voter’s discretion is allowed

    • A voter can also voluntarily waive the privilege of non-disclosure.
    • The privilege ends when the voter decides to waive the privilege and instead volunteers to disclose as to whom she had voted.
    • No one can prevent a voter from doing. Nor can a complaint be entertained from any, including the person who wants to keep the voter’s mouth sealed as to why she disclosed for whom she voted said the court.

    Try this question from our AWE initiaitive:

    On what grounds a people’s representative can be disqualified under the representation of people act, 1951? Also, mention the remedies available to such person against his disqualification. (15 marks)

  • Garib Kalyan Rojgar Abhiyaan

    PM Modi has launched the Garib Kalyan Rojgar Abhiyaan, an employment scheme for migrant workers.

    Practice question for mains:

    Q. Discuss the silent success of MGNREGA in COVID-19 times.

    Garib Kalyan Rojgar Abhiyaan

    • It is a skill-based employment scheme aimed primarily at migrant workers who have returned to their villages to escape the COVID lockdown distress.
    • With a 125-workday mandate to create public infrastructure, with the involvement of 11 central departments, the Rs 50,000-crore initiative will focus on job creation.
    • It will be implemented in 116 districts in six states — UP, MP, Jharkhand, Odisha, Rajasthan and Bihar — that saw the maximum number of migrant workers returning over the last three months.

    Works under the scheme

    • The government has identified 25 work areas for employment in villages, for the development of various works.
    • These 25 works or projects are related to meet the needs of the villages like rural housing for the poor, Plantations, provision of drinking water through Jal Jeevan mission,  Panchayat Bhavans, community toilets, rural mandis, rural roads, other infrastructure like Cattle Sheds, Anganwadi Bhavans etc.

    Must read:

    [Burning Issue] Reorienting MGNREGA in times of COVID

  • Sukapha: The founder of Ahom kingdom

    Recently, Assam CM ordered the arrest of a political commentator who had described Chaolung Sukapha as a “Chinese invader”.

    Practice question for mains:

    Q. Who are the Ahoms? Describe the role of Ahom Kingdom in cultural assimilation of modern-day Assam.

    Who was Chaolung Sukapha?

    • Sukapha was a 13th-century ruler who founded the Ahom kingdom that ruled Assam for six centuries. Contemporary scholars trace his roots to Burma.
    • He reached Brahmaputra valley in Assam from upper Burma in the 13th century with around 9,000 followers.
    • Sukapha is said to have left a place called Maulung ( in Yunnan, China ) in AD 1215 with eight nobles and 9,000 men, women and children — mostly men.
    • In 1235, Sukapha and his people settled in Charaideo in upper Assam after wandering about for years, defeating those who protested his advance and temporarily staying at different locations.
    • It was in Charaideo (in Assam) that Sukapha established his first small principality, sowing the seeds of further expansion of the Ahom kingdom.

    Who are the Ahoms today?

    • The founders of the Ahom kingdom had their own language and followed their own religion.
    • Over the centuries, the Ahoms accepted the Hindu religion and the Assamese language, scholars say.
    • The Ahoms embraced the language, religion and rituals of the communities living here — they did not impose theirs on those living here.
    • Today, the Ahom community is estimated to number between 4 million and 5 million.

    Why is Sukapha important in Assamese culture?

    • Sukapha’s significance — especially in today’s Assam — lies in his successful efforts towards the assimilation of different communities and tribes.
    • He developed very amicable relationships with the tribal communities living here — especially the Sutias, the Morans and the Kacharis.
    • Intermarriage also increased assimilation processes. He is widely referred to as the architect of “Bor Asom” or “greater Assam”.
  • Detection of Fluorine in hot Extreme Helium (EHe) Stars

    A study by the Indian Institute of Astrophysics (IIA) has detected the presence of singly ionized fluorine for the first time in the atmospheres of hot Extreme Helium Stars.

    UPSC may ask a simple statement-based question considering the following points:

    If there is the presence of hydrogen, their abundance in universe and how it is different from neutron stars etc.

    What are EHe stars?

    • An extreme helium star or EHe is a low-mass supergiant that is almost devoid of hydrogen, the most common chemical element of the universe.
    • There are 21 of them detected so far in our galaxy.
    • The origin and evolution of these Hydrogen deficient objects have been shrouded in mystery.
    • Their severe chemical peculiarities challenge the theory of well-accepted stellar evolution as the observed chemical composition of these stars do not match with that predicted for low mass evolved stars.

    Why is the study significant?

    • Clues to the evolution of extreme helium stars require accurate determinations of their chemical composition, and the peculiarities, if any, become very important.
    • Fluorine plays a very crucial role in this regard to determine the actual evolutionary sequence of these hydrogen deficient objects.
    • The scientists explored the relationship of hot EHes with the cooler EHes, based on their fluorine abundance and spotted it in the former, thus establishing an evolutionary connection across a wide range of effective temperature.
    • This makes a strong case that the main form of these objects involves a merger of a carbon-oxygen (CO) and a Helium (He) white dwarf.
    • The detection of enhanced fluorine abundances in the atmospheres of hot EHes solves a decade-old mystery about their formation.
  • Species in news: Golden Langurs

    Primatologists have observed that the Gee’s golden langur (Trachypithecus geei) induce stillbirth of babies killed inside the womb of females, besides practising infanticide.

    Try this question from CSP 2013:

    Q. In which of the following States is lion-tailed macaque found in its natural habitat?

    1. Tamil Nadu
    2. Kerala
    3. Karnataka
    4. Andhra Pradesh

    Select the correct answer using the codes given below.

    a) 1, 2 and 3 only

    b) 2 only

    c) 1, 3 and 4 only

    d) 1, 2, 3 and 4

    Golden Langurs

    IUCN status: Endangered

    • It is an Old World monkey found in a small region of western Assam, and in the neighbouring foothills of the Black Mountains of Bhutan.
    • Long considered sacred by many Himalayan people, the golden langur was first brought to the attention of the western world by the naturalist E. P. Gee in the 1950s.
    • Their habitat lies in the region, south of the Brahmaputra River, on the east by the Manas River, on the west by the Sankosh River, all in Assam, India, and on the north by the Black Mountains of Bhutan
    • Chakrashila WLS in Assam is India’s first wildlife sanctuary with golden langur as the primary species.
    • They are listed in Appendix I of CITES and Schedule I of Wildlife Protection Act, 1972.
  • 22nd June 2020| Daily Answer Writing Enhancement

    Important Announcement:  Topics to be covered on 23rd June-

    GS-1 Indian society and diversity of India

    GS-4 Case studies

    Question 1)

    Are families a Universal social institution in India? Analyse.10 Marks

     

    Question 2)

    Structure of the UN built according to the conditions of 1945, fails to reflect the world as it is now. In light of this, examine the issues the UN and its agencies faces and why there is an urgent need for reform.10 Marks

    Question 3)

    Against the changing geopolitical and security scenarios, there is a growing demand for decoupling of the Indian economy from China and reducing the dependence. What could be the challenges in doing so? Suggest the measures to achieve this goal.10 Marks

    Question 4)  

    Mr. X worked in the human resources department that was interviewing applicants for a top job in a widget company. After reading many applications, one stood out way ahead of the others. Then he realized that he knew the applicant, Mr. Y. They had hung out together when they were teenagers. Mr. Y had been a wild kid and once was arrested for shoplifting and the possession of drugs. Mr. Y had completed mandatory counseling and, as far as Mr. X knew, Mr. Y had straightened out his life and had done well during the last twenty years. Mr. Y hadn’t indicated in his application that he had once been arrested and Mr. X feared that the company would never hire someone with a police record, no matter how minor or how long ago the offence was. Do you favor Mr. X revealing the information?10 Marks

     

    Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

    *In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

    For the philosophy of AWE and payment, check  here: Click2Join

  • Let’s Become the Arjun of UPSC Mahabharata! Catch the First Basic Polity Mains Test (21st June) to Re-imagine How You Look At UPSC Mains

    If UPSC is Mahabharat, let’s become Arjun of it


    Shweta Mishra, Mains Test series Coordinator

    Hitting the fish’s eye, and winning over the Mains hurdle.

    Where is the fish’s eye?- an exact understanding of what’s been asked and answering to the point and not beating around the bush!

    Where do you miss the war of the Mains Exam?

      • Not getting the essence of the question.
      • Getting confused with the directives used in the question
      • Whether to write in points or in paragraph
      • How to structure the answer in the best possible way
      • Diagram- where, how, and why?
      • Making yourself presentable even in your absence
      • Intro and Conclusion- how to gain mastery in this

    These are the most probable questions which almost every UPSC aspirant has in her/his mind, especially regarding the Mains paper. And believe me, it’s not so easy! But then, it’s not impossible also 🙂

    Then what NEXT? How to break this Chakravyuha!!!

    Not much… we only need some faith in yourself and Civilsdaily and a lot of practice.

    An ounce of practice is worth more than tons of Reading”

    How Civils Daily Mains essential Program is going to solve your dilemmas???

    1. Evidence-based question Framing- keeping in mind the wheel of UPSC

    Question Formulation

    Q). How is the Law Commission of India Constituted and what are its mandates? Analyze the role of the Law Commission in legal reforms in India. (CIVILS DAILY)

    Why this question?

    A similar question has been asked by UPSC in 2018 regarding Finance Commission i.e. “How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss.”

    • Question Formulation

    Our questions will now specifically state the following

    • Whether they are straightforward or thought-provoking/analytical.
    • Whether they have subparts.
    • Why this question – similar previous year questions, the importance of the theme, etc.

    CD Innovation – Rather than the regular uninspiring questions, we have gone the extra mile and crafted unique, intellectually-stimulating questions. These will reward analytical ability and critical thinking.

    Example:

    (Q.) Intra-party democracy is indispensable for substantive democracy in India. Comment 

    2. Structured answers with holistic explanation

    Model Answers

      • For ‘thought-provoking/analytical’ type of questions, we’ll provide the best way to approach them.
      • Alternate introductions
      • Sub-headings and categorization to enhance readability and answer structure.
      • OTB – Out of the box points for additional marks- with colour coding

    (a.) Use of Question appropriate subheadings- to bring clarity in your thoughts

    Sample from our test series:

    Q.) What do you understand by price deficiency payment? Can it be a solution to end farmers’ woes in India? Critically Examine. (10 marks)

      • What is Price Deficiency Payment system?
      • Woes of Farmers
      • How can PDP Solve these woes
      • Challenges in front of PDP
      • Balanced Other reforms needed along with PDP to end the farmer’s woes

    (b.) Continuous flow- so as to bring newness and avoid fragmentation

    Taking a cue from the same Question we used in the second part:

    How Farmers Will Be Benefited By PDPS:

    MSP – The MSP system has many flaws in execution which include:

      • limited geographical coverage.

    Better Cropping Pattern: The PDP system may be more effective than MSPs at ensuring that cropping patterns in India respond to consumer needs.

      • The price deficiency system may incentivize farmers to diversify beyond the conventional cereals.

    Bypassing the need of storage facilities: 

      • It will help curb food grain losses due to lack of adequate storage,

    (c) Use of multiple Dimensions- PESTEL Approach

      • P- Political
      • E- Economy
      • S- Social 
      • T- Technology
      • E- Environment
      • L- Legal/ case laws

    Example

    (Q.) Recently Article 370 has been repealed by the Parliament. Critically discuss the implications of Abrogating Article 370, 35A For The People In Jammu & Kashmir? 

    Implications

      • Political
      • Administrative
      • Economic
      • Social 
      • Security

    (d.) Use of relevant diagrams and figures

    (Q.) What is the importance of Green Finance? So far, how has India performed in terms of Green Finance? 

     (e.) Colour coding

    RED COLOUR TEXT THESE POINTS ARE NON-NEGOTIABLE. ABSENCE OF THESE MEANS THAT YOU WILL GET BELOW AVERAGE MARKS

    GREEN COLOUR TEXT: THESE ARE VALUE ADDED/INNOVATIVE POINTS, WHICH MAY FETCH YOU MORE MARKS IF USED.

    Example of Green colour point:

    (Q.) Despite its environmental costs, coal is expected to retain its important position in India’s energy mix. 

    In this answer majority of candidates will mention how coal is abundant in India, how Renewable energy infrastructure is not yet developed enough to meet our energy needs.

    However, a Green colour point here will be

    How the people of Chota Nagpur region are dependent on coal and their job opportunities will take a hit if we stop using coal. This could further worsen the Naxalite problem in that region. You have added an internal security angle in a geography Question. This is what we mean by an innovative point.

    Example of a red color point

    Importance of Green Finance

      • Ecology savior: The environmental benefits include, for example, reductions in air, water and land pollution, reductions in greenhouse gas (GHG) emissions, improved energy efficiency while utilizing existing natural resources, as well as mitigation of and adaptation to climate change and their co-benefits.
      • Green finance involves the effective management of environmental risks across the financial system.

    (f.) Different styles of answering so as to reduce monotonicity

      • Read the Question carefully and in your mind, divide the Question into sub-parts and all of these sub-parts need to be addressed in a structured way.
    3 ways(types) to start your introduction:
      • 1 st way is the Context: A question asked on lateral entry.
        • you can write little context to it like recently the govt has introduced lateral entry for the post of Joint secretary. You can always start with the context
      • 2nd-way definition based: A question asked on do you think competitive federalism is working in India? 
        • In this defining what is competitive federalism in the introduction part and after defining you can come to the main body that is it working or not and the solution. You can start by defining the concept.
      • 3rd way is the Background based/Historical background: There is a question on all India judicial services.
        • you can start with its background that it was first recommended by law commission 1950s and after that other commissions had recommended this. So you can start with the history of the topic.

    3. Experts to evaluate your weaknesses- who have already written Interviews and scored outstanding marks in GS papers

    Answer-copy evaluation in the industry has become stagnant. The focus is restricted to superficial, memory-based lapses rather than on analytical excellence and cross-domain inter-linkages.

    Our stress will be on the following –

        1. Superior introduction and conclusion.
        2. Usage of subject-specific vocabulary.
        3. Question comprehension: Answer alignment, Question Directive, Breaking down of the Questions into parts.
        4. Articulation proficiency.
        5. Substantiating evidence like Government and International Reports and Indices.
        6. Prominent and contemporary examples.
        7. Presentation: Use of Flowcharts, Tables, Graphs, Data, etc

    4. Habitat chat group- in touch with mentors

    But why to chat?

      • Because a single mentor cannot give a 360-degree view for all subjects
      • Subject wise division of group
      • Current Affairs based discussion- to provide you the idea of upcoming Questions
      • Inter-linkages of Paper 1, 2,3 and 4
      • Resolving Preparation related queries
      • Group learning

    CD Habitat is where everything comes together learning, doubt clearing, notes, references, mentors, and a focussed community. You’re going to learn and discuss like never before. How will your queries be resolved? The moment you have a query, you post it in the group.

    5. Video discussion after every test – to give a humanistic touch to your queries and bringing a new at every point

     

    Together we can and together we will. We are here to become Guru Dronacharya. You must be ready to become ARJUN- The Warrior.

    This is what our students have to say..

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    IAS Mains 2020 2021 UPSC Civilsdaily Mains Test series
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    Mains Test Series Community: Testimonials

    Click here to enroll for MEP 2021 – Starting 21st June 2020

    For any query reach out to us at  +91 89299 87787 or email at  hello@civilsdaily.com.

  • Open access renewable projects at risk

    Let us discuss renewable energy. Recently, state governments increased the standard charges on open access renewable projects and incentives were cut back. So, what can be implications of such steps? Read to know…

    What open access power user mean?

    • Open access allows large users of power – typically those who consume more than 1 MW – to buy power from the open market.
    • These open access buyers don’t have to depend on a more expensive grid.
    • Through incentives given by state governments, these non-grid avenues of power purchase have been encouraged in renewable energy projects.

    Now, state governments increased standard charges on open access renewable energy projects or are cutting back on incentives.

    Reason given by state: Tariff competitiveness of wind and solar power has shown a significant improvement.

    Implications:

    • Credit rating agency ICRA said that with the changes in policy, the viability of open access – against grid-connected energy – is no longer as attractive.
    • The open-access charges applicable in case of third party sale of power have also increased highlights the rising regulatory risk for such independent power producers (IPPs).
    • Earlier,  concessions were available from levy of cross-subsidy surcharge, transmission and wheeling charges as well as favourable banking facilities to promote the renewable sector.
    • Now, the power policies in many states have either completely withdrawn or reduced incentives given to open access  customers.

    Issues for group captive projects

    • A group captive scheme is where someone develops a power plant for collective usage of many commercial consumers.
    •  At present, a power project is considered ‘captive’ if consuming entity or entities consume at least 51% of the power generated and owns at least 26% of the equity.
    • The State Electricity Regulatory Commission (SERC) in Maharashtra has recently approved the levy of additional surcharge on group captive projects in renewable sector.
    • Group captive consumers were earlier exempt from such levy in Maharashtra.
    • Risk of other state following holds.

    Challenges

    • The viability of power procured under the open access route depends on discount offered by the power producer as compared to the grid tariffs.
    • The applicable open access charges across the key states are estimated to vary quite widely from Rs.2.5 per unit to Rs. 5 per unit.
    • Open access projects have tenure (5-10 years) of the power purchase agreements (PPAs) under the third-party sale route as against the 25 year-tenure for PPA in case of utility scale projects.
    • Net tariff realised for such projects remains exposed to regulatory risk given the likelihood of revision in open access charges by the regulators.
    • It is also subject to tightening of energy banking norms being observed by SERCs across the states.

    Consider the question “Examine the implications of policy changes adopted by the state with regard to open access charges and phasing out of other incentives to Independent Power Producers (IPPs)”

    Conclusion

    Move by states could jeopardise many projects and also threaten the progress made towards the adoption of clean energy.