- [Act 1] Petroleum
- [Act 2] Clean Energy
- [Act 3] Telecom Sector
Economic Survey Ch11. Energy, Infrastructure and Communications. Total five subparts
- Energy: Coal, Shale Gas, CBM, Natural gas
- Petrol, Diesel, Clean Energy & Tele-Communication
- Roads, Industrial corridors, PPP, Infrastructure problems & reforms
- Shipping, aviation
- Railways infrastructure
- Ranking energy consumers: China > US > Russia > India (4th largest)
- by 2025: India will become 3rd largest consumer of energy
|Bharat petroleum + Oman||Bina (Madhya Pradesh)|
|HPCL + Mittal||Bathinda, Punjab|
|2||IOCL||Barauni, Bihar||10||HPCL||Visakhapatnam, Andhra|
|4||IOCL||Haldia, W.Bengal||12||BPCL||Kochi, Kerala|
|5||IOCL||Mathura, UP||13||CPCL||Manali, Tamilnadu|
|6||IOCL||Digboi, Assam||14||CPCL||Nagapattinam, TN|
|7||IOCL||Panipat, Haryana||15||NRL||Numaligarh, Assam|
|8||IOCL||Bongaigaon, Assam||16||MRPL||Mangalore, Karnataka|
Demo Question: Find correct statement(s):
- India’s refining capacity exceeds demand.
- India has only 3 private sector refineries
- Both A and B
- Neither A nor B
Ans. C Both correct, as per Economic Survey 2013, ch.11
- Except KG basin and Rajasthan- all Indian oil fields are ageing, therefore declining production
- Refineries are not upgraded, shortage of men, crude oil and capital.
- Environmental issues, bandh/blockades aggravating the problem.
- Solution: OVL should acquire more assets abroad.
- Related topics: Ethanol blending program and Bharat Emission norms click me
- OVL: ONGC Videsh ltd.
- Has petroleum assists in from Sudan, Vietnam, Venezuela, Brazil, Columbia, Russia, Syria and South Sudan.
- But production declined due to Geopolitical problems in S.Sudan & Syria.
- OVL also has operations in South China Sea near the coast of Vietnam.
- But China is objects, stating that
- Entire area belongs to us. Brunei, the Philippines and Vietnam have no rights over it.
- Therefore, none of them can partner with India to explore hydrocarbons in S.China sea.
|Who ?||Oil Ministry decides the price||
|2013||9. Money will be sent via DBT|
|2014, UPA||12 (after Rahulbaba’s demand)|
|2014BJP||We’ll decide a “reasonable” number of subsidized cylinders.|
(Before this “deregulation” thing came into picture)
- In India, Petrol, diesel, LPG and kerosene were sold at lesser than the international oil prices. Because, Government would fix their retail prices.
- Obviously the oil marketing companies (OMC) would make losses.
- So, Government would compensate by giving them “oil bonds”.
- Oil bonds promise to pay cash at later date. e.g. after 10 years with 8% interest.
- OMCs call such amount “under-recovery”. In reality this is not “loss” but money not available at present.
- For long, Government subsidized the petrol prices.
- But then fiscal deficit reached in danger level after subprime crisis- Because tax collection had declined. Government was unable to keep up with FRBM targets.
- 2010: Government deregulated petrol prices based on Kirit Parikh Committee recommendations-
- From now on, Public Sector Oil Marketing Companies (OMCs) will fix the petrol and diesel prices in consultation with the Ministry of Petroleum & Natural Gas.
- But LPG and Kerosene were kept out of ‘deregulation’ system. And diesel prices were still kept below the market rate.
- January 2013: Government began deregulation of diesel prices as well- increasing 50 paisa per litre every month.
- Government’s fuel subsidy bill will decline= fiscal deficit will reduce.
- Government can spend more funds on social sector schemes
- Less “under-recovery” for oil companies = they get immediate cash, can expand business, buy new technology, acquire oil assets abroad.
- companies will design more fuel efficient vehicles= less GHG
- Junta will use more public transport =less GHG
- Less nuisance of motorcycle stuntmen and eve-teasers (well, atleast in theory).
Not going into hydroenergy, wind energy etc. because Economic Survey and budget hardly gave any points.
|Bagasse||fibrous matter- left over while sugarmills extract juice from the sugarcane|
|Cogeneration||Converting Single fuel into multiple energy forms|
In this process, Bagasses is converted into two energy forms
- Heat: used in the sugar production.
- Electricity: Sold to consumers.
|Solar cell Raw material: EVA sheets, flat copper wire etc.||0%|
|Any other plant/machine required to setup solar plant and Compressed Biogas plants (Bio – CNG)||5%|
|Wind mill raw material: steel rings used in ball bearing||5%|
- Ultra Mega Solar Power Projects in Rajasthan, Gujarat, Tamil Nadu, and Ladakh. (500 cr)
- Solar pump sets for farmers. (1 lakh units)
- 1MW solar parks on Canal banks. (100 cr)
- Green Energy Corridor Project: will hasten its implementation
Who? Power Grid Corporation of India
Why? To integrate renewable energy into national power grid.
|Inter-state||respective state electricity utility boards|
Challenges: unlike thermal power plant, the solar / wind plants
- cannot be run on 24/7 basis
- have voltage fluctuation depending on sunlight/wind strength
International funding to this project
- Germany promised $1 billion
- USA PACE (promoting energy access through clean energy)
- EU for offshore wind farm, Chennai
Teledensity = % of telephone connection per 100 persons living in the given area.
- India: 2nd largest telephone network in the world (after China)
- As such, Tele density is not a good indicator of economy. For example:
- Tax havens like Cayman island= thousands of post-box companies = teledensity will look higher. Same for tourism based economies- because hotels will have more connections than the actual residents.
- Even Soviet Union had high teledensity but their per capita national income (PPP-wise) was low.
- All India Full Mobile Number Portability, One Nation – Free Roaming
- Increase rural teledensity: 70 (2017); 100 (2020).
- Make mobile phone an “instrument of social and financial empowerment”
- make India a global hub for manufacturing telecom instruments
- Right to broadband for all – with minimum 2Mbps download speed
- Facilitate VoIP, cloud computing, IPv6 and next generation networks
- allot spectrum in transparent manner, using market determined process (i.e. auction, resale etc)
- Periodic audit of spectrum utilisation to ensure its efficient use.
- Increase spectrum availability every 5 years.
- Unified licenses. Delink Spectrum from license.
- Simplify the Merger & Acquisition regime in telecom service sector.
- It is the facility to switch mobile service provide company without having to change your mobile number.
- Until now, mobile number portability was permitted within given telecom circle only. (there are 22 circles in India)
- New telecom policy (NTP-2012) wanted All India mobile number portability. But deadline missed- next target by 2015.
- BizGK: MNP is implemented by two companies Syniverse Technologies and MNP Interconnection Telecom (they manage the forms and coordinate between the two mobile service providers when you apply for MNP).
2012: Government designed new telecom policy (NTP) – for allocating spectrum in transparent manner.
|Specturm (Mhz)||2013 auction||2014, Feb auction|
|800||bought||not listed (Because already sold in 2013)|
|900||companies showed no interest||companies bought both 900 and 1800.Government earned >61,000 crores.|
|2300||Not auctioned. Mukesh Ambani’s Reliance Jio already owns it. Higher the Mhz=faster dataspeed. 2300 ideal for 4G.|
SMRA: Simultaneous Multiple Rounds Ascending (SMRA). This is the “e-auction” method used by government for auctioning spectrum.
- NTP-2012 envisages “One nation One License” system.
- Department of Telecom has designed unified licence guidelines accordingly.
- Now, the Spectrum allocation is delinked from the licence
- Company will have to apply for license.
- Only one unified license is required for all telecom services in entire India- for all 22 circles.
- Although, company will need to get separate permissions for ISD calls, internet service provider [ISP] services etc.
- After getting the license, the Company will have to buy the spectrum separately.
- Permit smoother trading and sharing of spectrum. (2G case = companies bought sprecum but did not use them. They instead sold it to other companies at higher price- similar to cinema ticket black-marketing)
- Revamp policy for better spectrum Management.
- reduce the spectrum cost
- USOF = Universal service obligation fund
- Under Dept. of Telecom
- To improve phone and internet connectivity in rural areas
- Non lapsable fund.
- Gets money from two sources
- 5% revenue from all telecom providers
- Centrally sponsored schemes for rural infra / BRGF/ LWE areas
- officially there are nine states affected with LWE (left wing extremism) viz. : Andhra, Bihar, Chhattisgarh, Jharkhand, Maharashtra, Madhya Pradesh, Odisha, UP and WB
- BSNL is setting up mobile and internet facilities there, using USOF funding.
|Money?||from USOF-Universal service obligation fund|
|Benefit?||will help extracting maximum potential of other e-governance projects, online monitoring of SSA, MNREGA, e-health, e-banking, e-education (CLICK initiative) etc.|
PS: “Communication” also involves postal department. But Survey and budget hardly said anything about it, hence not dwelling. But for Postal-GK part, you may refer to