Syllabus: General Studies Paper 3

Context:

At the UN climate conference in Glasgow recently, the Prime Minister raised India’s existing climate targets, and also announced a few new targets. Importantly, none of the targets is likely to be too difficult to achieve.

Net-zero

• Of the five-point targets announced by the PM, achieving net-zero emission status by 2070 is the one whose roadmap is not available right now. 
• This promise seems to have been made primarily to satisfy international demand. 
• At the same time, 2070 is a long way away — and there is plenty of time to plan a roadmap to achieve that target.
• The other four targets have to be achieved in a more immediate time frame, by 2030.

Emission intensity, renewables

• Two of the targets — reducing emissions intensity and increasing the renewable mix in installed electricity capacity — are already part of India’s official Nationally Determined Contributions or NDCs, submitted in 2015 as part of the requirement under the Paris Agreement.
  • In that NDC, India had promised to reduce its ‘emissions intensity’, or emissions per unit of GDP, by 33-35% from 2005 levels by 2030, and to ensure that at least 40% of its installed electrical capacity in 2030 would come through non fossil-fuel-based energy sources.
  • India has now enhanced both these targets: emissions intensity reduction to 45%, and the share of renewables in installed electricity capacity to 50%.
• India intended to fulfil 50% of its energy requirement through renewable energy by 2030. But all previous commitments were formulated for electrical capacity, which is only one part of the larger energy basket.
• The enhanced target related to installed electricity capacity, not energy requirement. This will be reflected in the revised NDC India submits to the UN Climate secretariat incorporating the new targets.
• India was already on course to achieve both these existing targets well before the 2030 deadline. 
• India’s emissions intensity was 24% below 2005 levels in 2016 itself, the latest year for which data are available. 
  • A 33-35% reduction is expected to be achieved within the next two years. Although initial reductions are easier to achieve than later ones, a 45% reduction is not expected to pose too much of a challenge.
  • The case of renewable installed capacity is not very different.
• By November 2020, the share of renewables, including large hydropower, in total installed electrical capacity had already crossed 36%. 
• The share of non-fossil fuel energy sources was over 38%. Most of the new capacity additions are happening in the renewable space, and therefore taking this share to 50% will likely not be too difficult.

Forest cover: Not addressed

• The third promise made in India’s NDC, about increase in forest cover, did not find a mention in PM’s speech. And that is the only target India is struggling to achieve.
• In the NDC, India has promised to create an additional carbon sink of 2.5-3 billion tonnes of carbon dioxide equivalent through forest and tree cover by 2030. 
• Although forest cover has been growing, according to official data, the pace of growth so far has been far from commensurate with what is required to meet the target.

Non-fossil fuel

• PM’s other two announcements, about raising installed capacity of renewable energy, and an absolute reduction of 1 billion tonnes of carbon dioxide by 2030, are not part of India’s existing commitments, but are nonetheless linked.
  • India had initially set out to install 20 GW of solar power capacity by 2020. That was later raised to 100 GW by 2022. 
  • Targets for wind and biogas were later added, making it a renewable energy power capacity target of 175 GW for 2022. 
  • Two years ago, the PM enhanced this to 450 GW for 2030. None of this was ever part of the NDC, but publicly announced targets India had set for itself.
• In Glasgow, PM cited that India would have 500 GW of non-fossil fuel-based energy capacity by 2030. 
• Non-fossil fuels include not just renewables like solar or wind, but also nuclear and hydro, which together make up over 50 GW right now. 
• Achieving the 450 GW target for renewable energy, therefore, would automatically achieve the target of 500 GW for non-fossil fuel energy sources.
• Also, installed nuclear energy is in the process of a significant ramping-up. Installed nuclear power capacity is set to increase to 22 GW by 2031 from the current 7 GW.

Syllabus: General Studies Paper 2

Context:

Recently, the Centre has decided to scrap the system of caste-based wage payments in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme after complaints from State Governments.

• Earlier, the Central government had introduced a category-wise (SC, ST and others) wage payment system, for better accounting purposes.
• No doubt, knowing the earnings of SC/ST households is useful. But it could have been done after the wages were paid.
• Eight crore MGNREGA wage transactions were pending on Diwali.

Issues:

• Negative impact of caste-based segregation: While 46% of payments to SC workers and 37% for ST workers were completed in the mandated seven-day period, it was a dismal 26% for non-SC/ST workers. 
  • The negative impact of caste-based segregation was felt acutely in poorer States such as Madhya Pradesh, Jharkhand, Odisha and West Bengal. 
  • In addition to such stark differences, in West Bengal, the Central government kept pending nearly 45% of the wages beyond 15 days as on October 13.
• Caste-based segregation has also resulted in tensions at worksites. 
  • It had also resulted in a threefold increase of workload for computer operators at blocks. 
  • After critical media reportage, the Central government has revoked the caste-based segregation of wage payments. 
  • However, the Central government has not assumed any accountability by paying compensation for delays despite the evident damage caused by caste-based segregation of payments.
• Lack of funds: The Ministry of Rural Development said that currently Rs.8921 crore funds are available which can meet the wage liability. 
  • This statement is misleading as the Ministry has not accounted for pending arrears of ₹17,543 crore from previous years. 
  • There is ample evidence by now that delays in wage payments are a consequence of insufficient funds. 
  • It showed that funds allocation this financial year (FY) is 34% lower than the revised budget allocation of last year. And this year’s funds have been exhausted. 
  • The Chief Ministers of Odisha and Tamil Nadu wrote to the Prime Minister seeking additional funds for MGNREGA.
• No advantage of technology: according to a report, there is any difference in the time taken for payments through the Aadhaar Payment Bridge Systems (APBS) and traditional account-based payments. 
  • In fact, APBS has given rise to complicated problems like misdirected payments and payment failures due to erroneous Aadhaar mapping with the payment software. 
  • Misdirected payments happen when one person’s Aadhaar gets linked to somebody else’s bank account. 
  • These problems are difficult to resolve even for bank and block officials resulting in increased hardships for workers. 
• Wage payment process of MGNREGA
  • There are two stages in the wage payment process. 
  • In Stage 1, States must electronically send invoices, also called FTOs, to the Central government within eight days of completion of work at a worksite. 
  • These invoices contain essential worker details like their names and bank account numbers. 
  • Stage 2: The Central government then processes the invoices and transfers wages directly to the workers’ accounts. This is the Central government’s responsibility that must be completed within seven days after Stage 1. 
  • Since Supreme Court orders in 2018, Stage 1 delays have been reduced while Stage 2 delays continue. 
  • As per the Act, if Stage 1 plus Stage 2 exceeds 15 days, then workers are entitled to a delay compensation for each day’s delay. 
  • However, in violation of the Act and the Supreme Court’s orders, no delay compensation for Stage 2 is even being calculated. 
  • Instead of ensuring sufficient funds for timely payments, the Central government has repeatedly modified the payment architecture as if payment delays are due to technological hurdles. 
  • Earlier, the invoices were not segregated by caste. Recently, the Central government issued a circular to segregate invoices based on the caste of workers (Scheduled Castes, Scheduled Tribes, and ‘Others’). It was then taken back.
• Delay in Stage 2: In our sample, Stage 2 was completed only for 29% of the invoices within the mandated seven-day period. 
  • For two-thirds of the transactions in Jharkhand and more than half the transactions in Chhattisgarh, Madhya Pradesh and West Bengal, Stage 2 exceeded 15 days. 
  • There was also a steady increase in Stage 2 delays from July to September indicating depletion of funds.

Syllabus: General Studies Paper 2

Context:         

The central government is preparing to give a fresh push to the establishment of an All India Judicial Service (AIJS) on the lines of the central civil services.

Background

• The Law Minister has called a meeting of state law ministers recently to discuss the AIJS and issues related to infrastructure in the lower judiciary.
• The idea of centralised recruitment of judges has been debated in legal circles for decades and remains contentious.

About the proposed All India Judicial Service (AIJS)

• The AIJS is a reform push to centralise the recruitment of judges at the level of additional district judges and district judges for all states.
• In the same way that the Union Public Service Commission conducts a central recruitment process and assigns successful candidates to cadres, judges of the lower judiciary are proposed to be recruited centrally and assigned to states.

Implementation & Challenges

• As per the amended Constitution, although Article 312(1) gives provision for setting up All India Judicial Services, a resolution must be passed in the Rajya Sabha with the support of not less than two-thirds of its members present and voting.
• Thereafter, a law for the creation of AIJS has to be enacted by the Parliament.
• The challenge behind the implementation of the All India Judicial Service (AIJS) is that the filling of vacancies of Judicial officers or Judges in Subordinate Courts and Districts is the domain of the respective High Courts and State Governments.
• Hence, the Government has to take a consultative approach to arrive at a common ground as the different stakeholders have diverging opinions.
• In November 2012, a Committee of Secretaries had approved a proposal for the constitution of AIJS. This was a comprehensive proposal.
• This proposal was included as an agenda item in the Conference of Chief Justices of the High Courts and State Chief Ministers, which was held in April 2013. Some of the States and High Courts wanted changes in the proposal, some of them had favoured the proposal, while some of the States and High Courts had rejected the proposal.
• The proposals received from the State Governments and High Courts were included in the Chief Justices’ conference held in April 2015.
• In 2019, the Government of India had initiated a consultative process for the establishment of the All India Judicial Services (AIJS). Eleven states did not respond to the Government, Five States had suggested some changes, and the Eight States had rejected the proposal of the Government.

Current recruitment process

• Articles 233 and 234of the Constitution of India deal with the appointment of district judges, and place it in the domain of the states.
• The selection process is conducted by the State Public Service Commissions and the concerned High Court, since High Courts exercise jurisdiction over the subordinate judiciary in the state.
• Panels of High Court judges interview candidates after the exam and select them for appointment.
• All judges of thelower judiciary up to the level of district judge are selected through the Provincial Civil Services (Judicial) exam.
• PCS(J) is commonly referred to as the judicial services exam.

The rationale behind the AJIS proposal

• The idea of a centralised judicial service was first mooted in the Law Commission’s 1958 ‘Report on Reforms on Judicial Administration’.
• The idea was:
  • to ensure an efficient subordinate judiciary,
  • to address structural issues such as varying pay and remuneration across states, to fill vacancies faster, and
  • to ensure standard training across states.
• A statutory or constitutional body such as the UPSC to conduct a standard, centralised exam to recruit and train judges were discussed.
• The idea was proposed again in the Law Commission Report of 1978, which discussed delays and arrears of cases in the lower courts.
• In 2006, the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice in its 15th Report backed the idea of a pan-Indian judicial service, and also prepared a draft Bill.

Syllabus: General Studies Paper 3

Context:

The increasing push towards solar energy, shifting of hitherto cross-subsidising private entities to renewable energy has compounded the perilous position of utilities making the need for reforms more urgent.

Background:

• Distribution Companies (DisComs) are the utilities that typically buy power from generators and retail these to consumers.
• For all of India’s global leadership for the growth of renewable energy, or ambitions of smart energy, the buck stops with the DisComs.
• The days of scarcity of power are over.
• The physical supply situation has mostly improved.
• But the financial picture has not brightened much.

Analysing the data on liabilities of the DisComs

•  ₹90,000 crore (later upgraded to  ₹1,25,000 crore) was earmarked for DisComs in ₹20-lakh crore package announced in the wake of Covid-19’s economic shock.
• The Power Finance Corporation (PFC)’s Report on Utility Workings for 2018-19 showed dues to generators were ₹2,27,000crore, and this is well before COVID-19.
• It also showed similar Other Current Liabilities.
• DisComs have delayed their payments upstream (not just to generators but others as well) — in essence, treating payables like an informal loan.

Impact of Covid pandemic

• COVID-19 has completely shattered incoming cash flows to utilities.
•  The revenue implications were far worse since the lockdown disproportionately impacted revenues from so-termed paying customers, commercial and industrial segments.
• Reduced demand for electricity did not save as much because a large fraction of DisCom cost structures are locked in through Power Purchase Agreements (PPAs) that obligate capital cost payments, leaving only fuel savings with lower offtake.

Way forward

We will probably need a much larger liquidity infusion than has been announced thus far, but it also must go hand-in-hand with credible plans to pay down growing debt. We need a complete overhaul of the regulation of electricity companies and their deliverables. We need to apply common sense metrics of lifeline electricity supply instead of the political dole out of free electricity even for those who may not deserve such support For the rest, regulators must allow cost-covering tariffs.

Syllabus: General Studies Paper 2

Context:

The idea of centralised recruitment of judges has been debated in legal circles for decades and remains contentious.

Background:

• In 1958, the 14th report of the Law Commission of India had recommended the creation of the All India Judicial Service (AIJS).
• In 1961 at the Chief Justices’ Conference, a proposal was given for the creation of All India Judicial Service. This recommendation was given at the conference to remove any kind of intervention either by the Executive or Judiciary while making appointments to the Judiciary.
• After opposition from High Courts and some states, the proposal for the All India Judicial Service (AIJS) was shelved until 1976.
• The Constitution was amended, under Article 312, a provision was made for AIJS.
• The recommendation for the creation of All India Judicial Service (AIJS) was once again given by the Law Commission in its 77th report which was submitted in 1978 and in its 116th report which was submitted in 1986.
• The Government was asked to check the feasibility of the recommendations given by the Law Commission, to set up the All India Judicial Service (AIJS).
• This recommendation to the Government was given by the Supreme Court of India in the All India Judges Association versus Union of India and others case.
• The matter concerning the creation of the All India Judicial Service was considered and recommended by the Justice Shetty Commission, also known as the First National Judicial Pay Commission (FNJPC).
• In 2012, a proposal was given by the Government of India regarding the AIJS.
• Due to opposition from the Chief Justices of the High Courts on the grounds that it would be an infringement of their rights, the proposal had to be shelved once again.

All India Judicial Service (AIJS) – Need for Indian Judicial Service

• As per a report given by the National Court Management Systems in 2012, the number of cases that would be filed in 30 years would be as high as 15 crores.
• To handle these many projected cases in the given timeline, there would be a requirement of 75,000 Judges.
• A “properly framed” All India Judicial Service (AIJS) on the lines of other all-India services would help in strengthening the overall Justice delivery system.
• All India Judicial Service will help in the inclusion of fresh talents through a merit-based selection process conducted throughout the country.
• There will be representation from deprived sections, marginalized sections of the society and address the problems of Social Inclusion.

Implementation & Challenges

• As per the amended Constitution, although Article 312(1) gives provision for setting up All India Judicial Services, a resolution must be passed in the RajyaSabha with the support of not less than two-thirds of its members present and voting.
• Thereafter, a law for the creation of AIJS has to be enacted by the Parliament.
• The challenge behind the implementation of the All India Judicial Service (AIJS) is that the filling of vacancies of Judicial officers or Judges in Subordinate Courts and Districts is the domain of the respective High Courts and State Governments.
• Hence, the Government has to take a consultative approach to arrive at a common ground as the different stakeholders have diverging opinions.
• In November 2012, a Committee of Secretaries had approved a proposal for the constitution of AIJS. This was a comprehensive proposal.
• This proposal was included as an agenda item in the Conference of Chief Justices of the High Courts and State Chief Ministers, which was held in April 2013. Some of the States and High Courts wanted changes in the proposal, some of them had favoured the proposal, while some of the States and High Courts had rejected the proposal.
• The proposals received from the State Governments and High Courts were included in the Chief Justices’ conference held in April 2015.
• In 2019, the Government of India had initiated a consultative process for the establishment of the All India Judicial Services (AIJS). Eleven states did not respond to the Government, Five States had suggested some changes, and the Eight States had rejected the proposal of the Government

Syllabus: General Studies Paper 3

Context:

Recently, the Cabinet approved several measures to extend a lifeline to the cash-strapped telecom sector. But they are not enough.

Background: 

There are nine structural reforms and five procedural reforms for the sector. It includes 

• A four-year moratorium on all spectrum and AGR dues
  • The redefinition of adjusted gross revenue (AGR), prospectively, not retrospectively.
  • AGR calculations would exclude all non-telecom revenue from now and penalties had been completely scrapped.
• Equity option for paying dues: 
  • The change in definition that will reduce the burden on telcos, applies only prospectively, so those past dues remain payable.
  • Interest on those dues will now be compounded annually instead of monthly and the Minister said interest would be charged at a ‘reasonable rate of MCLR plus 2%. 
  • MCLR refers to the lowest lending rate banks are permitted to offer — the marginal cost of funds-based lending rate.
  • Companies have the option of doing this through equity. And the government has retained the option of converting remaining dues at the end of the moratorium period too, to equity.
• A fixed calendar for spectrum auctions with an extended tenure of 30 years for future spectrum allocations, and a mechanism to surrender and share spectrum. 
  • The enhancement of the life of spectrum by 10 years, 
  • The removal of a financial constraint to spectrum sharing, 
• Foreign direct investment (FDI) in the sector has also been allowed up to 100% under the automatic route, from the existing limit of 49%. 

Significance of the telecom reforms:

• It should ensure that the sector does not become a duopoly of Airtel and Jio and encourage companies to invest in customer service and new technology. 
• The announcements would pave the way for large scale investments into the sector, including for 5G technology deployment, and generate more jobs.
• Digital India goal: The telecom sector is one of the prime movers of the economy and the measures announced by the government would enable the industry to achieve the goals of Digital India.
• The moratorium on AGR dues provides an annual cash flow breather of around ₹14,000 crore for the industry while the moratorium on spectrum dues gives another ₹32,000 crore of annual cash flow relief as a whole.
• According to Telecom Regulatory Authority of India’s, ‘Yearly Performance Indicators – Indian Telecom Sector, 2020’, the country’s wireless tele-density in 2020 was high at 84.90 per cent. It comprises urban and rural tele-densities of 134.34 and 58.75 per cent, respectively.

Concerns:

• The package, however, does have positive features such as 
  • exclusion of non-telecom revenues from the levy on adjusted gross revenue (AGR), 
  • lengthening of tenure of spectrum to 30 years from 20 in future auctions, and 
  • Abolition of spectrum usage charge (SUC) for spectrum acquired in future auctions.
• The four-year AGR moratorium will provide temporary cash flow relief to telecom companies (telcos). 
  • However, the telcos are required to pay an interest of MCLR plus 2 percent, which is currently 9 per cent, on their AGR dues during the moratorium, so that the government’s receipts are ‘NPV protected’. 
  • NPV, or net present value, is the current value of a future stream of payments discounted at the applicable interest rate.
  • When the interest rates on long term retail home loans range from 6.5 to 7 per cent, the 9 per cent interest for a four-year moratorium is excessive. 
  • Telecom levies in India are higher than in most developing Asian economies.
  • The government must roll back the interest on AGR.
• The government is already burdened with two loss-making telcos — BSNL and MTNL. Acquiring equity stakes in more struggling telcos is imprudent. 
• In India, telcos have tended to compete on the basis of price, a practice that intensified with the entry of Reliance Jio in 2015-16. 
  • The average revenue per user (ARPU) realised by Indian telcos in 2020 was 39-58 per cent lower than those by telecoms domiciled in countries in a comparable stage of development — Indonesia and the Philippines..
• High spectrum prices have resulted in Indian telcos accumulating excessive liabilities including debt and forking out a higher share of revenues as interest payments. 
• India’s high corporate tax rate is the second-highest among the BRICS and ASEAN countries.

Syllabus: General Studies Paper 3

Context:

India will achieve net-zero emissions by 2070, Prime Minister said in CoP Glasgow. He was speaking at the ‘High-Level Segment for Heads of State and Government’ during the UNFCCC’s 26th Conference of Parties (COP).

Key points

• He also raised the Nationally Determined Contribution (NDC) of achieving 450-gigawatt non-fossil energy capacity to 500 gigawatts, among other commitments including reducing carbon emissions.
• PM announced India’s four other commitments — all by 2030. He called them the “gift of five elixirs” (panchamrit).
• These are: 
  • increasing non-fossil energy capacity to 500 gigawatts (GW), 
  • fulfilling 50 percent of energy requirements from renewable sources, 
  • reducing carbon intensity of economy by 45 per cent, and 
  • reducing total projected carbon emissions by 1 billion tonnes.
• The PM also outlined the Indian Railways’ commitment of net-zero by 2030, and its ambition of installing 450 GW of renewable energy capacity.
• Climate finance: To achieve its climate goals, PM said India expected developed countries “to make $1 trillion available as climate finance as soon as possible”. 
  • Today, as we track the progress on climate mitigation, the same way we must track climate finance.

Significance:

• The commitment is significant since India is the third-largest emitter of carbon dioxide in the world, after China and the US.
• The most substantive new commitment relates to the 1-billion-tonne reduction in its total projected emissions from now until 2030. This is the first time that India has taken any climate target in terms of its absolute emissions.
  • Though it’s not a direct emission reduction target.
  • According to the World Resources Institute, India’s total greenhouse gas emissions were about 3.3 billion tonnes in 2018. It’s projected to rise above 4 billion tonnes per year by 2030.
  • Cutting 1 billion tonnes would, therefore, represent a reduction of 2.5 to 3 per cent in its absolute emissions in the business-as-usual scenario in the next nine years.

• India had been under pressure from developed states like the US to raise its climate ambitions and commit to a net-zero target by 2050. India finally relented and decided to take up a target.
• Reducing 1 billion tonnes of emissions by 2030 and expanding non-fossils capacity to 500 GW are enormous and transformative steps. 
• India had demonstrated climate leadership and now the ball was in the court of the developed world to raise its ambition, particularly, in matters of climate finance.

Now India demands US $1 trillion in climate finance as soon as possible and will monitor not just climate action but also climate finance.

Syllabus: General Studies Paper 1

Context:

The Ministry of Jal Shakti had announced an ambitious plan-  JalJeevan Mission- to provide water connections to every household in India by 2024. 

• In view of the ongoing erosion of water resources and an ever-increasing demand for water, the thrust should not be on promising water supply. 
• Instead the aim should be towards protecting and conserving water resources on the one hand and minimising and enhancing efficiency of water usage on the other. 

Water crisis in India

• According to the composite water management index released by the think tank NITI Aayog in 2019, 21 major cities (including Delhi, Bengaluru, Chennai, Hyderabad) were on the brink of exhausting groundwater resources, affecting about 100 million people. 
• The study also points out that by 2030, the demand for water is projected to be twice the available supply.
• Chennai crisis: In 2019, many parts of the city went without piped water for months. Chennai remains a example of the impending tragedies brought about by the city’s inability to meet the basic needs of citizens- drinking water, cooking and sanitation.
  • Many have cited the poor rainfall received in Chennai in the previous year as one of the main reasons for the water crisis. Though it is true that rainfall was low, the ground-level steps (or missteps) have been equally responsible factors.
  • Reasons behind: Lack of sustainable urban planning
    • The city has been built by incrementally encroaching floodplains and paving over lakes and wetlands that would have otherwise helped the process of recharging groundwater. 
    • The lack of space for water to percolate underground prevented rainwater from recharging the aquifers.
    • This was further worsened by the loss of green cover (which would have otherwise helped water retention) to make way for infrastructure projects. 
    • It leads to flooding during normal rainfall due to stagnation, and on the other hand leads to drought-like conditions due to the prevention of underground water storage. 
• Rural Punjab crisis

• The draft report of the Central Ground Water Board concluded that Punjab would be reduced to a desert in 25 years if the extraction of its groundwater resources continues mindlessly.
• 82% of Punjab’s land area has seen a huge decline in groundwater levels, wherein 109 out of 138 administrative blocks have been placed in the ‘over exploited’ category. 
• Groundwater extraction which was at 35% in the 1960s and 1970s, rose to 70% post the Green Revolution.
• Governments subsidised power for irrigation that left tubewells running for hours.
• Cultivation of water-intensive crops such as paddy has further aggravated water depletion, even turning water saline.

Understanding sources used

• One should see India’s looming water crisis through the lens of ‘urban’ and ‘rural’. 
  • It not only allows a better grasp of the causative factors but also enables a stronger grip on the strategies to be deployed to reverse the water crisis. 
• In the rural areas, 80%-90% of the drinking water and 75% of the water used for agriculture is drawn from groundwater sources. 
• In urban areas, 50%-60% of the water supply is drawn from groundwater sources. The remaining water is sourced from surface water resources such as rivers, lakes, tanks and reservoirs.

Syllabus: General Studies Paper 3

Context:

Recently, India’s power demand broke a daily threshold of 200 GW, setting a new record that will surely be broken in the years to come. 

• To manage this surge and other equally significant developments in the power distribution sector, there’s a need for a paradigm shift in the energy model.
• A key change in India’s energy model, which will aid and support these developments, is coming up in the shape of the Electricity (Amendment) Bill, 2021.

Key points of the Electricity (Amendment) Bill, 2021

• It proposes to de-licence electricity distribution and let the consumer choose what kind of electric energy to use and whom to buy it from.
• It seeks privatisation of discoms (distribution companies) by way of sub-licensing & franchisees.
• According to the draft, state commissions will determine tariff for retail sale of electricity without any subsidy under Section 65 of the Act and the tariff should reflect the cost of supply of electricity and cross-subsidies to be reduced.
• Electricity Contract Enforcement Authority to adjudicate on contract-related disputes; a common selection committee for the State Electricity Regulatory Commissions.
• The Appellate Authority to ensure release of timely and cost reflective tariff orders; 
• An adherence to the National Electricity Tariff Policy
• A subsidy mechanism (DBT) where it will go directly to the consumers.

Need for the Act:

• The de-licensing of power generation: Since 2003, India’s power generating capacity has grown nearly four-folds to around 385 GW today.
  • The growth of the Indian economy that followed, and its emergence as the sixth-largest economy in the world, was due to India becoming a power surplus country.
• The power reforms remained incomplete. The last mile connect with the consumer, electricity distribution is operating at sub-optimal efficiency through distribution monopolies (discoms).
• No choices for consumers: India’s power distribution sector is currently structured in a way that does not give consumers any choice in terms of who they want to buy electricity from. 
  • It could be a State Electricity Board (SEB) or private player, but the consumers are forced to buy power from one discom. 
  • That is irrespective of whether the customer likes the quality of power, the electricity tariff, or the various choices on renewables, like rooftop solar, that some discoms provide and others do not.
• A monopoly creates inefficiencies and these in the power distribution sector have had serious financial consequences. 
• Financial losses: Today, an estimated ₹94,000 crore is owed by various state-owned discoms to power generating companies (gencos) across the country. 
  • This happens when discoms are not able to properly bill for energy supplied and collect the monies. 
  • If money had been paid to the power generating companies on time, it could not only have led to additional generating capacity, especially renewables, but also funded the bills for the input suppliers to these gencos.

Significance: 

• Green energy: The Indian power sector as a whole is in a critical phase, as major changes will be witnessed across its value change, moving from thermal or fossil-fuel fired generation to renewables. 
  • The country has already achieved 100 GW of renewable energy capacity and is moving closer to the 175 GW target, which hopefully will be achieved by 2022. 
  • We have an even bigger target of building 450 GW of renewable energy capacity by 2030. 
  • Tackling the unfinished task of reforming electricity distribution by opening it up will certainly help us realise these ambitious dreams.
• The consumer- and investment-friendly reforms proposed in the new Bill will not just create choice for consumers but also more efficient power distribution utilities. 
• It will also attract investments from global capital sources interested in implementing future technologies, particularly in areas like clean energy and digital technologies. 
• By ensuring capital into electricity distribution, these reforms can become a direct enabler for a more sustainable energy sector in India.
  • In fact, a beginning has already been made by starting the privatisation process of discoms in Union Territories, where many power sector players participated.

It is now a little more than three decades since India started opening up and liberalising the economy, and in the 75th year of Independence, the electricity distribution reforms will play a key role in helping the government achieve its ambitious goal of powering every home, shop, office, industrial unit and village with quality and reliable electricity supply. And that, in turn, would be crucial in achieving the larger economic goal of making India a $5-trillion economy.

Syllabus: General Studies Paper 2

Context:

The debate about whether the decennial Census should collect data on caste from individuals who fall into the administrative categories of ‘General’ and ‘Other Backward Classes (OBCs) has been argued by public intellectuals.

Background:

The Socio-Economic and Caste Census (SECC) was conducted in 2011. It was the largest exercise of the listing of castes and has the potential of finding inequalities at a broader level.

• Socio-Economic Caste Census(SECC) was conducted by the Ministry of Rural Development in rural areas and the Ministry of Housing & Urban Poverty Alleviation in urban areas.
• The SECC data excluded caste data and was published by the two ministries in 2016.
• The raw caste data was handed over to the Ministry of Social Justice and Empowerment,
• The ministry formed an Expert Group under former NITI Aayog Vice-Chairperson ArvindPangaria for the classification and categorisation of data.
• However, only the details of the economic conditions of the people in rural and urban households were released. The caste data has not been released till now.

Rationale behind conducting caste census

1. Rationalise reservation:
   • Many have argued that an SECC would be the best way to rationalise reservation based on data and make a strong case for breaching India’s reservation cap.

• For example, The census of 2011 had 19,569 entries on languages. These entries were then rationalized into 1369 mother tongues. These were then classified into 22 scheduled and 99 non-scheduled languages. So, the collection of caste data will lead rationalise reservation.

1. Since job and education quotas are based on caste, this will help in evidence-based policymaking. The current policies are based on the last caste census, which was conducted in 1931.
2. Further, this census can help the government in identifying the most benefited section and reduce their share in the overall reservation to provide an opportunity to others.
3. Also, Most estimates show the OBC population to be above 40%. This is much greater than the current reservation, which stands at 27%. The caste census will provide the exact proportion of OBC population.

1. A caste census would actually bring forward the large number of issues that any democratic country needs to pay attention to. For instance, this census will reveal information regarding caste-based marginalisation, deprivation, the kind of jobs pursued by a caste, etc.
   1. Caste census will give authentic information regarding the socio-economic condition and education status of various castes.
2. Better targeting of Government welfare schemes: The courts in India have often emphatically said that it is important to have adequate data regarding the reservation. So, the caste census is nothing but the collection of data that is necessary for any democratic policymaking.
3. Break the myths associated with castes: The caste census will reveal the actual data on castes and remove ambiguities associated with the caste. For instance,
   1. In Karnataka, there were claims that among the castes, the Lingayats are the most numerous. So the census can reveal the true information on that.
4. Recommendation from the Sachar committee: Sachar committee was formed to examine the socio-economic and educational status of the Muslim community in India. In its report, the committee mentioned that the availability of data on religion was useful in highlighting the relative deprivation of minorities. So, similar data on caste is also desirable to identify vulnerable sections within castes.

Challenges linked to conducting caste census

1. Reservation tussles:
   1. Reservation is going to cater only to a small proportion of those who are entitled to it. Further, there is also some debate that the reservation policy in India invariably led to the growth of elites among castes and communities. So, the caste census along with reservation might favour elites among castes.
   2. There is a possibility that caste-based reservations will lead to heartburn among some sections and spawn demands for larger or separate quotas. For instance, Patels, Gujjars, Jats and other castes are demanding reservations. The caste census might induce more such demands in future.
2. The caste census will give rise to caste division. : As India seek to eliminate and weaken the notion of caste, a caste census would only strengthen it.
3. Collection of caste data is not easy: Some sections of people believe that Caste is a very important source of privilege and advantage in our country. On the other hand, some sections of people feel disadvantaged by revealing caste-based information. So, the naming and counting of caste is a difficult thing in India. For instance, the same caste is spelt in different ways in different states.