September 2022
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Advantage of Market Based Economic Dispatch

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Economics,Energy,Infrastructure

Market Based Economic DispatchContext

  • The game changing scheme is being proposed by the central government in power sector governance. The scheme under consideration is the market-based economic dispatch (MBED). When it comes to any drastic change in the power sector, a clash between the Centre and the states is inevitable.

What is Market Based Economic Dispatch (MBED)?

  • Market Based Economic Dispatch (MBED) is new approach towards power distribution to help distribution companies save costs and transition to a new form of power market.
  • It is a shift to a centralised framework, marks a radical departure from the current decentralised, voluntary pool-based electricity market.

Market Based Economic DispatchWhat is the framework under MBED?

  • The cheapest power from across the country will be dispatched to meet the system wide demand. The architecture would also lead to a “Market clearing price”.
  • Sellers and buyers will place their bids for the day market, and an outcome of this will be the discovery of the market clearing price.
  • This process is expected to generate significant savings for consumers.

What is the Present system of power Distribution?

  • Under the present regime, each distribution company (Discom) is bound by the power purchase agreements (PPAs) that it holds.
  • It can schedule power only from its own PPAs, starting from the cheapest PPA and then moving up; it cannot schedule power from the PPA of some other distribution company.

Market Based Economic DispatchWhat are the drawbacks of present system?

  • Financial Burdon:
  • The Indian government responded to COVID-19’s economic shock with a stimulus package of Rs.20-lakh crore, out of which Rs.90,000 crore was earmarked for discoms (later upgraded to Rs.1,25,000 crore). While it was called a stimulus, it is really a loan, meant to be used by discoms to pay off generators.
  • Discoms owe one lakh crore rupees to generators, and without such an infusion the chain will collapse.
  • States are defaulters:
  • State governments are the biggest defaulters, responsible for an estimated a third of trade receivables, besides not paying subsidies in full or on time.
  • On an annual cash flow basis, the shortfall in subsidy payments appears very low, only about 1% but cumulative unpaid subsidies, with modest carrying costs, make discoms poorer by over Rs.70,000 crore just over the last 10 years.

Market Based Economic DispatchWhat will be the Advantages of MBED?

  • Centralized approach: The centralised dispatch will be done with the assistance of electricity exchanges. Each discom and each generator will place a bid in the day-ahead market of the electricity exchanges, which will indicate how much power is being demanded/ supplied at what price.
  • Pan India market: These bids will enable the load dispatcher to construct a pan India demand and supply curve, the intersection of which will determine the market clearing price (MCP). All generators whose variable cost of generation is below the MCP will be asked to dispatch and all of them will receive the same MCP irrespective of what they had bid. Generators whose variable cost is higher than the MCP will sit idle.
  • No loss to discom: The MBED is so devised that its operation will not affect the current finances of either the discoms or the generators for the following reasons.
  • First, the fixed cost of the generators will still be paid by the discoms outside the market as determined by the regulator.
  • Second, if the MCP comes out to be Rs 3 per unit, and if in the case of any PPA, the variable cost is Rs 2.75 per unit, then the generator will compensate the discom to the extent of Rs 0.25 per unit. Similarly, if the MCP so determined is Rs 2.50 per unit, then the discom will compensate the generator to the extent of Rs 0.25 per unit.
  • Increasing efficiency: The logic is that by adopting MBED, only the relatively efficient plants will generate, without affecting the revenues of either the discoms or generators. Hence, the total cost of generation under the MBED system would be less.
  • Less pollution: There would be less coal consumption and less carbon dioxide injected into the atmosphere.
  • Easy integration with renewable: It would also mean less movement of coal leading to decongestion of railway tracks. Further, there would be enhanced renewable integration since the balancing area would shift from state to national level.
  • Single market clearing price (MCP): Incidentally, since there are three electricity exchanges in operation today, there would be three different MCPs determined. What we need is a single MCP for which there will be an institution called the “market coupler”. It will be the job of the coupler to determine a national MCP based on what has arrived at the three different exchanges.

Why states are opposing?

  • High generation cost: The reason is the state-owned generators are relatively inefficient and may have to sit idle as their variable cost of generation is likely to be more than the MCP.
  • Political backlash: Today, the states are operating their own generators to the hilt, even though they are inefficient, and drawing only the balance from the more efficient interstate generating stations. Keeping state generators idle has its own political implications and no state would be enamoured of this idea.

Conclusion

  • Power distribution companies (discom) are sinkhole of government finances. Every year budgetary support is needed to this loss-making companies , With due consultation, all states and union territories need to adopt and implement the MBED and save the resources for other development activities.

Mains Question

Q. India has became the power surplus nation, however power distribution and financial unsustainability is still a nightmare for union and states. Elaborate.

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Urban Transformation – Smart Cities, AMRUT, etc.

Urban planning can change the future of cities to happy cities

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Urbanization issues

Urban planningContext

  • In the recent few years, the growth of the economy and urbanization have accelerated. Rapid unplanned urbanization has put extreme pressure on natural resources.
  • Unplanned urbanization, however, exerts great strain on our cities. In fact, the Covid-19 pandemic has revealed the dire need for the planning and management of our cities.

What does urban planning mean?

  • Urban planning, also known as regional planning, town planning, city planning is a technical and political process that is focused on the development and design of land use and the built environment, including air, water, and the infrastructure passing into and out of urban areas, such as transportation, communications, and distribution networks and their accessibility.

What are ‘Happy Cities’?

  • A term that follows the Green City, Sustainable City, Liveable City, in the lingo of urban planning

What is a smart city?

  • A smart city is one that uses information and communication technologies to enhance citizen engagement. It is a neo-vision which seeks to improve the delivery of services in urban areas. The following story maps out the steps being taken by India to explore this concept in practice.

What is the Smart Cities Mission?

  • Sustainable cities: The Smart Cities Mission aims at developing 100 cities, which were shortlisted, into self-sustainable urban settlements.
  • Chronology: The mission was launched on June 25, 2015 and was projected as one aimed at transforming the process of urban development in the country.
  • Comprehensive revamp: Among its strategic components is ‘area-based development’, which includes city improvement (retrofitting), city renewal (redevelopment) and city extension (Greenfield development), plus a pan-city initiative in which ‘smart solutions’ are applied covering larger parts of the city.

Fast Facts – Urbanization in India

  • Most Urbanized States: Tamil Nadu 43.9%; Maharashtra 4%; Gujarat  37.4%
  • 3 out of world’s 21 mega cities: Mumbai (19 mill); Delhi (15 mill); Kolkata (14 mill)

Urban planningUrban planning challenges

Planning

  • Many urban governments lack a modern planning framework
  • The multiplicity of local bodies obstructs efficient planning and land use
  • Rigid master plans and restrictive zoning regulations limit the land available for building, constricting cities’ abilities to grow in accordance with changing needs.

Housing

  • Building regulations that limit urban density – such as floor space indexes – reduce the number of houses available, thereby pushing up property prices
  • Outdated rent control regulations reduce the number of houses available on rent – a critical option for the poor
  • Policy, planning, and regulation deficiencies lead to a proliferation of slums

Service delivery

  • There is a strong bias towards adding physical infrastructure rather than providing financially and environmentally sustainable services

Infrastructure

  • Most urban bodies do not generate the revenues needed to renew infrastructure, nor do they have the creditworthiness to access capital markets for funds
  • Urban transport planning needs to be more holistic – there is a focus on moving vehicles rather than meeting the needs of the large numbers of people who walk or ride bicycles in India’s towns and cities.

Environment:

  • The deteriorating urban environment is taking a toll on people’s health and productivity and diminishing their quality of life.

Urban planningSolution offered by NITI ayog committee report on urban planning

  • Demystifying Planning and Involving Citizens: While it is important to maintain the master plans’ technical rigour, it is equally important to demystify them for enabling citizens’ participation at relevant stages. Therefore, the committee strongly recommends a ‘Citizen Outreach Campaign’ for demystifying urban planning.
  • Steps for Enhancing the Role of Private Sector: The report recommends that concerted measures must be taken at multiple levels to strengthen the role of the private sector to improve the overall planning capacity in the country.
  • Revision of Town and Country Planning Acts: Most States have enacted the Town and Country Planning acts, that enable them to prepare and notify master plans for implementation. However, many need to be reviewed and upgraded.
  • Revision of Town and Country Planning Acts: Most States have enacted the Town and Country Planning Acts, that enable them to prepare and notify master plans for implementation. However, many need to be reviewed and upgraded.

Interesting fact

India is home to 11% of the total global urban population.

Government initiatives

  • Atal Mission for Rejuvenation and Urban Transformation (AMRUT);
  • Pradhan Mantri Awas Yojana (PMAY) – Housing for all (Urban),
  • Smart Cities Mission (SCM),
  • Swachh Bharat Mission (SBM),
  • Heritage City Development and Augmentation Yojana (HRIDAY);
  • Deen Dayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM).

Conclusion

  • What is now increasingly understood, is that urban planning and design can be a powerful contributor to the happiness of citizens. The structure and layout of our streets, the availability of green spaces, the possibility of using urban spaces freely, the inclusion of beauty in public space.
  • It is safe to assume that when there are avenues for a community to come together in a pleasant environment, which is accessible to everyone, it can only increase well-being.

Mains question

Q. Can urban planning and design change Indian cities to be happy cities? Express your views by addressing the roadblocks in the same.

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India’s Bid to a Permanent Seat at United Nations

India and UNSC

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UN Security council

Mains level: International Relations

UNSCContext

  • There is greater support for India to be a permanent member of the UN Security Council and also a broad global consensus over the need to reform the Council, said External Affairs Minister S Jaishankar. India has once again renewed its bid for permanent membership of UNSC.

What is UNSC?

  • The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations (UN) and is charged with ensuring international peace and security, recommending the admission of new UN members to the General Assembly, and approving any changes to the UN Charter.
  • Its powers include establishing peacekeeping operations, enacting international sanctions, and authorizing military action. The UNSC is the only UN body with the authority to issue binding resolutions on member states.

UNSCWhat is the composition of UNSC?

  • Presently there five permanent members (P-5) with veto and 10 non-permanent members without veto elected for tenure of 2 years.
  • India has been the non-permanent member multiple times. Presently India is serving its tenure that will end in December 2022.

UNSCWho are P-5 members?

  • The victors of World War 2 – USA, RUSSIA, CHINA, UK, FRANCE.

What are the hurdles that India facing?

  • Elite club: Most exclusive club in international relations. All other clubs have been breached. Until a quarter century ago, the nuclear weapon club had five members, the same five as the P-5.India, Pakistan, North Korea and Israel have since joined the club. But UNSC is unbreachable till date.
  • All are reluctant: The inescapable fact is that none of the P-5 wants the UNSC’s ranks to be increased. One or the other of them might make some noise about supporting one or more of the aspirants. Each is confident that someone among them will torpedo the enlargement of the club. Declarations of support for India’s candidature need to be taken with a fistful of salt.
  • Veto issue: Former UN Secretary-General Kofi Annan bluntly told India not to expect to get the veto power. Though India has said it will not accept a seat without veto power.
  • China-Pakistan axis: China, which has historically blocked India’s aspirations to become a permanent member of the UNSC. Beijing has an “all-weather ally” in Islamabad, another neighbour who also strongly opposes India’s candidature to the UNSC.
  • Odd man out: Four out of the five permanent members of the United Nations Security Council have bilaterally expressed official affirmations of support for India’s candidature to a permanent seat in an expanded UN Security Council.
  • Coffee club opposition: Members like Italy, South Korea, Canada, Spain, Mexico, Turkey, Argentina, Pakistan, and others, who have together formed the Uniting for Consensus (UfC) movement. Also known as the Coffee Club, the movement argues that bids for permanent seats by India, Japan, Germany, and Brazil (G4 countries) must not be considered without first reaching an international consensus regarding the form and size of the new Security council.

UNSCWhat are the Efforts taken by India?

  • Text based negotiation: External affairs minister is canvassing for the country’s candidature, meeting his counterparts from several countries. He has repeated the call, made often in the past, for a text-based negotiation on what has been euphemistically referred to as the reform of the United Nations Security Council (UNSC), i.e., negotiation on a written document outlining the proposed reform instead of just holding forth verbally.
  • Woking together with G-4: INDIA, JAPAN, GEMANY, BRAZIL works together to get permanent UNSC seat however these efforts are opposed by coffee club.
  • Multilateral engagements: By expanding its footprint in multilateral organisations, India is gearing up to become a global rule-maker.
  • Distinguished group of experts suggested a few years ago that a new category of semi-permanent members should be created. Countries would be elected for a period of eight to 10 years and would be eligible for re-election. India ought to give serious consideration to this idea.
  • With or without veto: According to former foreign secretary Chinmaya gharekhan, if by some miracle we are offered or manage to obtain permanent membership without veto, we must grab it. Even a permanent membership without veto will be tremendously helpful in protecting our interests.

Conclusion

  • Looking at the present geopolitical divide India’s dream of seat at the highest table is unlikely to get fulfilled in near future. India must analyse the utility of UNSC membership for securing its national interest. India should not give up anything in bargain against UNSC seat which harms its international interest.

Mains question

Q. India’s quest for UNSC is like “Sisyphus carrying the boulder  just to see how it falls”. In this context Analyse the utility of Permanent seat at UNSC.

 

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Foreign Policy Watch: India-United States

Why India has lashed out at the US over its F-16 package to Pakistan?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: F-16

Mains level: US's double standards over Pakistan

f-16

EAM S Jaishankar has lashed out at the US for its decision to provide Pakistan with a $450 million package for F-16 case fighter aircraft upgrade.

F-16 and Pakistan

  • The F-16 is a single-engine multirole fighter aircraft originally developed by General Dynamics for the United States Air Force (USAF).
  • Designed as an air superiority day fighter, it evolved into a successful all-weather multirole aircraft.
  • The F-16 were inducted into Pakistan Air Force in 1983 during the Soviet-Afghan War.

Suspicion over US move

  • This is the first American military assistance package to Pakistan after the Trump Administration.
  • Mr Trump ended defence and security co-operation with Pakistan in 2018 after accusing it of giving only “lies and deceit” for the billions of dollars that the US had “foolishly” given it.

What specific reasons has the Biden Administration given for its decision?

  • As per US version, the proposed sale does not include any new capabilities, weapons, or munitions.
  • The upgrade package aimed to retain interoperability with US and partner forces in ongoing counter-terrorism efforts and in preparation for future contingency operations.

Why did US provide F-16 to the US?

  • India has been concerned about the F-16s from the time the US first gave Pakistan F-16s as a reward for its assistance in the first Afghan war.
  • The US then had supplied weapons and money to Pakistan to unleash armies of jihadists against the Soviet Army.
  • When the US objective was achieved with the Soviet Union’s departure from Afghanistan, the US too resized its relations with Pakistan.
  • The Pressler Amendment, aimed against Pakistan’s nuclear ambitions, froze it out of military assistance.
  • A decade later, the Bush Administration not only approved the release of previously blocked F-16s, but also provided a refurbishment package, and sale of new F-16s.

India’s concerns

  • As pointed out by EAM, how the F-16s help in counter-terrorism remains unclear.
  • Jaishankar questioned the merits of the US-Pakistan partnership.
  • He said that the relations had “not served” either country (but created more troubles for India).
  • This move by the US will alter the basic military balance in the region.
  • The decision to provide military aid to Pakistan incensed India as the F-16 was used against Indian warplanes following the 2019 Balakot air strikes.

Conclusion

  • Washington’s $450 million package has only resurrected old prejudices centred on the US not being a dependable ally for ever.
  • India needs to respond firmly and in no uncertain terms to the PAF’s F-16 upgrade programme to convey the message that India cannot be taken for granted.
  • India will have to effectively enhance the conventional combat capability of the IAF to continue to meet the challenge of a resurgent PAF.

 

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Electoral Reforms In India

Maharashtra Election Symbols Issue

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Allocation of election symbols

Mains level: Read the attached story

In a blow to one faction, a Constitution Bench of the Supreme Court allowed the Election Commission (EC) to take a decision on the Maharashtra CM claim that his faction represents the “real” party.

What is the news?

  • The Bench led by Justice D.Y. Chandrachud rejected the plea to stay the EC proceedings under the Election Symbols (Reservation and Allotment) Order of 1968.

What is the news?

  • A party has lost a large number of members in the rebellion that eventually caused the fall of the government in Maharashtra.
  • The rebel has claimed to be the only original leader of the party on the basis of the support of more than two-thirds of the party’s legislators in the Maharashtra Assembly.

Options for ECI

  • The ECI in all likelihood can freeze the symbol so that neither of the two sides is able to use it until a final decision is made.
  • EC hearings are long and detailed, and may take at least six months.

EC’s powers in Election Symbol Dispute

  • The question of a split in a political party outside the legislature is dealt by Para 15 of the Symbols Order, 1968.
  • It states that the ECI may take into account all the available facts and circumstances and undertake a test of majority.
  • The decision of the ECI shall be binding on all such rival sections or groups emerged after the split.
  • This applies to disputes in recognised national and state parties.
  • For splits in registered but unrecognized parties, the EC usually advises the warring factions to resolve their differences internally or to approach the court.

How did the EC deal with such matters before the Symbols Order came into effect?

  • Before 1968, the EC issued notifications and executive orders under the Conduct of Election Rules, 1961.
  • The most high-profile split of a party before 1968 was that of the CPI in 1964.
  • A breakaway group approached the ECI in December 1964 urging it to recognise them as CPI(Marxist). They provided a list of MPs and MLAs of Andhra Pradesh, Kerala and West Bengal who supported them.
  • The ECI recognised the faction as CPI(M) after it found that the votes secured by the MPs and MLAs supporting the breakaway group added up to more than 4% in the 3 states.

What was the first case decided under Para 15 of the 1968 Order?

  • It was the first split in the Indian National Congress in 1969.
  • Indira Gandhi’s tensions with a rival group within the party came to a head with the death of President Dr Zakir Hussain on May 3, 1969.

Is there a way other than the test of majority to resolve a dispute over election symbols?

  • In almost all disputes decided by the EC so far, a clear majority of party delegates/office bearers, MPs and MLAs have supported one of the factions.
  • Whenever the EC could not test the strength of rival groups based on support within the party organisation (because of disputes regarding the list of office bearers), it fell back on testing the majority only among elected MPs and MLAs.

What happens to the group that doesn’t get the parent party’s symbol?

  • The EC in 1997 did not recognise the new parties as either state or national parties.
  • It felt that merely having MPs and MLAs is not enough, as the elected representatives had fought and won polls on tickets of their parent (undivided) parties.
  • The EC introduced a new rule under which the splinter group of the party — other than the group that got the party symbol — had to register itself as a separate party.
  • It could lay claim to national or state party status only on the basis of its performance in the state or central elections after registration.

 

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Modern Indian History-Events and Personalities

Places in news: Ram Setu

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Ram Setu

Mains level: NA

ram setu

A movie has once again generated buzz around the chain of shoals off the southeast coast of India that many believe is the Ram Setu or the bridge to Lanka mentioned in the Ramayana.

The Ram Setu

  • The Ram Setu, also known as Adam’s Bridge, is a 48-km chain of limestone shoals between Rameswaram on India’s southeast coast and Mannar Island near Sri Lanka’s northwest coast.
  • The structure has significance in both Hindu and Muslim mythology – while Hindus believe this is the bridge (Setu) built by Lord Ram and his army to cross to Lanka and fight Ravan.
  • As per Islamic legend, Adam used this bridge to reach Adam’s Peak in Sri Lanka, where he stood on one foot for 1,000 years in repentance.

Factual details of the bridge

  • Scientists believe Ram Setu is a natural structure formed due to tectonic movements and sand getting trapped in corals.
  • However, over the years, evidence has been offered to claim that the bridge is man-made.
  • The bridge is not entirely natural, Hindu right wing outfits argue, which proves that it was indeed built by Lord Ram.

When was the structure came into highlights?

  • The Ram Setu issue snowballed into a major controversy when the Sethusamudram Project, flagged off during the UPA I government.
  • The project aimed to reduce travel time between the eastern and western coasts of India, as ships would no longer have to circle Sri Lanka to travel between the Bay of Bengal and Arabian Sea.
  • The project was perceived as an attack on Hindu sentiments.
  • Various studies have been proposed on the Ram Setu, with the most recent being in 2021, when the government approved an underwater research project to ascertain its origins.

Ecological arguments against the project

  • The Sethusamudram project has been opposed on environmental grounds.
  • Some claims that it will harm marine life, and that dredging of the line of shoals will make India’s coast more vulnerable to tsunamis.
  • In March 2018, the Centre told the Supreme Court that the Ram Setu will not be affected in the execution of the Sethusamudram Shipping Canal project.

NASA images, and other proofs

  • Images of the Ram Setu clicked by NASA have been used over and over again to claim that this proves the existence of a man-made bridge.
  • NASA has repeatedly clarified that it does not agree with these claims.
  • Remote sensing images or photographs from orbit cannot provide direct information about the origin or age of a chain of islands.
  • It certainly cannot be determined whether humans were involved in producing any of the patterns seen.

 

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Water Management – Institutional Reforms, Conservation Efforts, etc.

Jaldoot App to capture data on Groundwater Levels

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Jaldoot App

Mains level: Not Much

With the rapidly declining water table threatening to push many regions into drought, the Union government on has launched a mobile application — Jaldoot.

Jaldoot App

  • Jaldoot is jointly developed by the Rural Development and Panchayati Raj Ministries to monitor the groundwater levels across the country.
  • The App will enable Gram Rojgar Sahyak to measure the water level of well twice a year pre-monsoon and post-monsoon.
  • Jaldoots, that is, officers assigned to measure the water levels, should also upload the geo-tagged photographs through the app on every occasion of measurement.
  • This Mobile app will work in both online and offline mode.
  • So water level can be captured even without internet connectivity and captured date will be stored in mobile and when mobile comes in the connectivity area, data will synchronize with the central server.

Utility of the App

  • The despite promoting watershed development, afforestation, waterbody development and renovation, rainwater harvesting like initiatives, the ground water level in various parts of the country has depleted.
  • The regular data to be input by the Jaldoots would be integrated with the database of National Water Informatics Centre (NWIC), which can be utilised for analysis and display.
  • The app will facilitate in observing water tables across the country and the resulting data can be utilized for Gram Panchayat Development Plan and Mahatma Gandhi NREGA Plans.

 

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Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

Carl-Gustaf M4 to be produced in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Carl-Gustaf M4

Mains level: Not Much

gustaf

Swedish defense major SAAB announced plans to manufacture its Carl-Gustaf M4 weapon system in India.

What is the Carl-Gustaf M4?

  • The Carl-Gustaf recoilless rifle is a man-portable, multi-role weapon system that allows dismounted soldiers to effectively deal with multiple challenges on the modern battlefield.
  • A proven performer in battle, the Carl-Gustaf M4 is said to be adaptable and flexible.
  • The Indian Army has been using the iconic Carl-Gustaf since 1976 and currently operates the Mk2 and Mk3 versions.

Key features of Carl-Gustaf M4

  • Lightweight, robust, reliable, effective and easy to use
  • Tactical flexibility through a wide range of ammunition
  • Combat proven system
  • Ammunition: Anti-armour, anti-structure, anti-personnel, support

Why in news?

  • In recent years, the Indian government has taken several steps to boost the defense manufacturing sector under the ‘Make in India’ and ‘Atmanirbhar Bharat’

 

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