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Infrastructure

Infrastructure

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INFRASTRUCTURE

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● INTRODUCTION ● TYPES OF TRANSPORTATION ● IMPORTANCE OF TRANSPORTATION IN ECONOMY ● PROBLEMS OF TRANSPORTATION CHAPTER 1: ROADWAYS ● GROWTH AND DEVELOPMENT OF TRANSPORT ○ NATIONAL HIGHWAYS ○ STATE HIGHWAYS ○ DISTRICT ○ RURAL ROADS ○ OTHER ROADS ● PROBLEMS IN ROAD TRANSPORT ● RECENT INITIATIVES ● FUNDING MECHANISM IN ROAD INFRASTRUCTURE ○ NATIONAL HIGHWAYS INVESTMENT PROMOTION CELL (NHIPC) ○ MEASURES TO REVIVE LANGUISHING STALLED PROJECTS ○ TOLL OPERATE TRANSFER MODEL ○ CENTRAL ROAD FUND ● PLANNING FOR MULTI MODAL TRANSPORT SYSTEMS ● Urban Mobility in ● GREEN INITIATIVE ● E-INITIATIVES ● ROAD SAFETY: A TOUGH TASK ● MOTOR VEHICLE (AMENDMENT) BILL, 2017 ● COMMITTEE ON TRANSPORT DEVELOPMENT CHAPTER 2: RAILWAYS ● INTRODUCTION, ● SIGNIFICANCE OF RAILWAY ● INSTITUTIONS GOVERNING RAILWAYS(RDB) ● MERGER OF RAIL BUDGET WITH UNION BUDGET ● RAILWAY ZONES ● RAILWAYS FOR URBAN MOBILITY ● NEED OF RAILWAYS IN URBAN TRANSPORT ● TRANSIT ORIENTED DEVELOPMENT ● PROBLEMS IN ○ POOR PERFORMANCE OF FREIGHT SEGMENT: ○ INEFFECTIVE CONNECTIVITY AND PROBLEMS OF DELAY: ○ POOR SERVICE DELIVERY AND EFFICIENCY: ○ PROBLEMS OF RAILWAY SAFETY ● MAJOR-COMMITTEES ● RECENT DEVELOPMENT IN RAILWAYS

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○ DEDICATED FREIGHT CORRIDORS ○ BULLET ○ TRAIN 18 ○ RASHTRIYA RAIL SANRAKSHA KOSH (RRSK) ○ AVATARAN ○ ALTERNATE TRAIN ACCOMMODATION SCHEME – VIKALP ○ CLONE TRAIN SERVICES ○ ○ OPERATION SWARN ○ NIVARAN ○ OTHER INITIATIVES BY MINISTRY OF RAILWAYS CHAPTER 3: WATERWAYS ● INTRODUCTION ● TYPES OF WATERWAYS ○ INLAND WATERWAYS ■ NATIONAL WATERWAYS OF INDIA ■ ADVANTAGES OF INLAND WATERWAYS ■ DISADVANTAGES OF INLAND WATERWAYS ■ ISSUES AND CHALLENGES ■ LEGAL AND POLICY REGIME FOR INLAND WATERWAYS IN INDIA ■ GOVERNMENT INITIATIVES ■ NITI AYOG’S ACTION AGENDA FOR PORT DEVELOPMENT ■ INTERNATIONAL BEST PRACTICE ■ WAY FORWARD ○ OCEANIC WATERWAYS ■ ISSUES AND CHALLENGES WITH INDIAN PORTS ■ REGULATORY SCENARIO OF PORTS IN INDIA ■ KEY POLICY DEVELOPMENTS: ■ PORT LED DEVELOPMENT

CHAPTER 4: CIVIL AVIATION

● Introduction ● Historical Background of civil aviation sector in India ● Performance of Civil Aviation Industry in India ● Regulatory and Legislative Framework ● National Civil Aviation Policy, 2016 ● International conventions ● Issues and Challenges with Civil Aviation Sector in India ● Major Committees and recommendations ● Government initiatives for improving Civil Aviation ● Way Forward

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TRANSPORTATION

INTRODUCTION Transport infrastructure is one of the most important factors for a country's progress. A well-knit and coordinated system of transport plays an important role in the sustained economic growth of country. Transportation ensures mobility and dynamism in the economy through its various modes.

TYPES OF TRANSPORTATION IMPORTANCE OF TRANSPORTATION IN ECONOMY ● India’s transportation sector has seen accelerated growth since the launch of the four- connecting the four Metros, Delhi, , and . ● This acceleration has been a key factor in India’s 8.3% average growth from 2003-04 to 2011-12. ● The transport sector facilitates trade and migration, thereby raising productivity in other parts of the economy. ● As a large sector in itself, it also contributes to growth directly. It accounts for a large part of construction activity. ● The movement of people, which this sector facilitates, is also a key source of social integration and transformation. ● For these reasons, transport and connectivity are central to India’s economy and society.

PROBLEMS OF TRANSPORTATION Nevertheless, transport and connectivity in India face several challenges that lead to inefficiencies and below-potential attainment of productivity:

1. The transport network is not planned holistically. The lack of interconnectedness and synergies in the transport network prevent the efficient movement of people and goods. Intermodal connectivity also remains weak with a particular lack of connectivity between ports and inland modes of transport. 2. Maintenance of different modes of transport infrastructure is poor. The Indian Railways find it challenging to maintain and service their existing capacity. Maintenance of national highways and roadways is done largely after problems occur and are reported instead of pre-emptive maintenance being an integral part of service. This leads to non-uniform standards, hinders service quality and lowers productivity. 3. The capacity of physical transport infrastructure is limited. Congestion on roads and railways is common due to capacity constraints. At times, the limited rail capacity for carrying goods prevents the transport of inputs such as coal in a timely manner. 4. The transport network has severe modal imbalances. ● Over time, roadways have become the dominant mode of transport of goods at the cost of railways, despite the latter’s economic and environmental advantages over the former. ● Similarly, inland waterways remain underutilized as a mode of transport. In freight carried by surface transport, the share of roads rose from 13.8% in 1950-51 to 38.1% in 1990-91 and 64.5% in 2011-12. ● The trend was similar in passengers carried by surface transport with the share of roads rising from 25.7% in 1950-51 to 72.2% in 1990-91 and 85.9% in 2011-12. ● The share of railways in 2011-12 stood at 35.5% in freight and 14.1% in passenger . 5. Transport safety, particularly road safety, remains poor. In 2015, 146,133 deaths occurred due to road traffic crashes. In normalized terms, 930 accidents occurred per 10,000 km of road length in 20132. Over 3 % of India’s GDP is lost to road accidents annually, amounting to Rs. 3.8 Lakh Crore in 2014.

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6. The transport sector remains highly dependent on conventional sources of energy. In 2014, the sector accounted for 18 % of commercial energy use and 55 % of the use of petroleum products. By 2020, the expected increase in the sector’s demand for energy could affect India's energy security.

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CHAPTER 1: ROADWAYS

Road transport is a critical infrastructure for enhancing connectivity and internal and external trade. India has one of the second largest road networks in the world with a total length of 54.8 lakh km (Economic Survey 2017-18). About 85 percent of passenger and 70 percent of freight traffic are carried by roads every year. Road transport is relatively suitable for shorter distance travel. It influences the pace, structure and pattern of development.

Growth and development of Road Transport ● Road transport in modern sense was very limited in India before World War-II. ● The first serious attempt was made in 1943 when ‘ Plan’ was drawn. ● After Independence, twenty-year road plan (1961) was introduced to improve the conditions of . ● Rural devveopment plan includes construction of rural road under Minimum Need Programme, Rural Landless Employment Guarantee Programme(RLEGP), Jawahar Rojgar Yojana, Pradhan Mantri Gram Sadak Yojana etc.

India is having the road networks of over 54.83 lakh km. It comprises national highways, expressways, state highways, major district roads, other district roads and village roads with following length distribution:

National Highways / Expressway 1,20,543 k.m.

State Highways 1,55,222 k.m.

Other Roads(District road, Rural road, Border road etc.) 52,07,044 k.m.

Total 54,82,809 k.m

(source: Annual Report 2017-18)

National Highways ● These roads are constructed and maintained by the Central Government ● These roads are meant for inter-state transport ● These also connect the state capitals, major cities, important ports, railway junctions, etc. ● National highways constitute just two per cent of the country’s road network but carry 40 per cent of the traffic load.

State Highways ● These are constructed and maintained by state governments. ● They join the state capitals with district headquarters and other important towns. ● These constitute around 3 per cent of total road length in the country.

District Roads ● These roads are the connecting link between District Headquarters and the other important nodes in the district. ● They account for 14 per cent of the total road length of the country.

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Rural Roads ● These roads are vital for providing links in the rural areas. ● More than 80 per cent of the total road length in India are categorised as rural roads. ● There is regional variation in the density of rural road because these are influenced by the nature of the terrain. ● The Pradhan Mantri Gram Sadak Yojana (PMGSY) and focus on the construction and maintenance of rural roads.

Other Roads Other roads include Border Roads and International Highways.

The Border Road Organisation (BRO) was established in May 1960 for accelerating economic development and strengthening defence preparedness through rapid and coordinated improvement of strategically important roads along the northern and north-eastern boundary of the country.

Problems in Road Transport Road Connectivity and Mobility: Increasing connectivity, especially in Rural India and with Ports by expanding the road network. Enhance Public Transport in the road segment through allowing private providers. Increasing the coverage of Electronic Toll Collection (ETC) in National and State Highways.

Road Maintenance: Annual outlay allocated for maintenance and repair of National Highways is only 40 percent of required amount. Defining criteria for converting state to national highways.

Capacity of existing highways: The existing length of the NH network is 1.22 lakh km, which is 2.2 percent of the country’s total road network of 56.03 lakh km. This limited capacity of National Highways is carrying 40 per cent of India’s total road traffic.

Land acquisition: Land acquisition delays have increased project costs as the average cost of land has escalated from Rs. 0.80 crore per hectare during 2012-13 to Rs. 3.20 crore per hectare during 2017-18.

Accidents and safety concerns: In 2013, India had an accident death rate of 18.9 for every 100,000 people, higher than other South Asian countries such as Bangladesh (11.6), Mauritius (12.2) and Sri Lanka (13.7). Much of these accidents occur due to bad roads.

Development of Road Infrastructure: Recent Initiatives The capacity of national highways in term of handling traffic (passenger and goods) needs to be in tandem with the industrial growth. The government is working hard to augment this infrastructure both in terms of length and quality. There are plans to expand the network of national highways so that all parts of the country have an easy access to it.

National Highways Development Project (NHDP) The Government is implementing National Highways Development Project (NHDP), the largest Highways Project ever undertaken in the country since 2000. The NHDP is mainly being implemented by

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● National Highways Authority of India (NHAI) and ● National Highways & Infrastructure Development Corporation Ltd. (NHIDCL).

In addition, there is a Special Accelerated Road Development Programme for the North-East Region (SARDP-NE).

National Highways Interconnectivity Improvement Projects (NHIIP) for rehabilitating and upgrading various stretches of National Highways to 2 .

The programme is being implemented in the following seven phases: ● Phase I: Phase I consists of Golden Quadrilateral network comprising a total length of 5,846 km which connects the four major cities of Delhi, Chennai, Mumbai & Kolkata and 981 km of North-South and East-West corridor, NS-EW corridor connects in the north to in the south and in the east to in the west. Phase I also includes improving connectivity to ports. ● Phase II: Phase II covers 6,161 km of the NS-EW corridor (The total NS-EW corridor consists of 7,142 km) and 486 km of other NHs. ● Phase III: Four-laning of 12,109 km of high density national highways connecting state capitals and places of economic, commercial and tourist importance. ● Phase IV: Upgradation of 20,000 km of single-lane roads to two-lane standards with paved shoulders. ● Phase V: Six-laning of 6,500 km of four-laned highways. ● Phase VI: Construction of 1,000 km of expressways connecting major commercial and industrial townships. ● Phase VII: Construction of ring roads, by-passes, underpasses, flyovers, etc. comprising 700 km of road network.

Golden Quadrilateral : It comprises construction of 5,846-km long 4/6 lane, high density traffic corridor, to connect India’s four big metro cities of Delhi-Mumbai-Chennai-Kolkata. With the construction of Golden Quadrilateral, the time, distance and cost of movement among the mega cities of India will be considerably minimised.

North-South and East-West Corridors : North-South corridor aims at connecting Srinagar in Jammu and Kashmir with Kanniya kumari in (including Kochchi-Salem Spur) with 4,076-km long road. The East-West Corridor has been planned to connect Silchar in with the port town of Porbandar in with 3,640-km of road length.

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Bharatmala It is an umbrella programme that will subsume unfinished parts of NHDP. it aims at: 1. Development of State roads along coastal border areas, including connectivity of non-major ports; 2. Backward areas religious and tourist places connectivity programme; 3. Multi-model integration is one of the key focus of this program. 4. A total of around 53,000 Kms has been identified to improve national corridor efficiency, of which 24,800 Kms are to be taken up in phase 1, over a period of 5 years i.e. 2017-18 to 2021-22. 5. Total likely fund provision for phase-1 is Rs. 5, 35,000 Cr. 6. It also focus on the new initiatives like development of Border and International connectivity roads, economic corridors development, inter corridor and feeder routes, national corridors efficiency improvements, coastal and port connectivity roads, and Greenfield Expressways.

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Chenani-Nashri : It is 9 km long twin-tube, all weather tunnel between Udhampur and Ramban in Jammu and kashmir. It is not only india’s longest highway tunnel but aso Asia’s longest bi-directional highway tunnel.

Bhupen - Hazarika Setu India’s longest the 9.15 km long Bhupen Hazarika Setu(Dhola Sadiya Bridge) over River Lohit a tributary of Brahmaputra in Assam.

Setu Bharatam It is another programme that aims to ensure road safety by making all national highways free of railway level crossings by constructing of about 1500 major and 200 rail over bridges rail under bridges. The programme is targeted for completion by 2022.

Some important projects under implementation ● Char Dham Mahamarg Vikash Pariyojana ● Eastern & Western Peripheral Expressways ● Delhi- Expressways ● - Mumbai Expressways ● Byet Dwarka-Okha Bridge

3.9 Funding Mechanism in Road Infrastructure:

National Highways Investment Promotion Cell (NHIPC) The National Highways Authority of India has created a National Highways Investment Promotion Cell (NHIPC) for attracting domestic and foreign investment for highways projects. The cell will focus on engaging with global institutional investors, construction companies, developers and fund managers for building investor participation in road infrastructure projects.

The Government has set an ambitious target of construction of 35,000 km. of National Highways in the next five years involving an investment of Rs. 5,35,000/- crores under ‘Bharatmala Pariyojana’. Given the scale of investment required, both foreign and domestic investment from public and private sector is pivotal.

Measures to revive languishing stalled projects The reasons for delay were identified and policy interventions undertaken to address the same. This, inter alia, includes ● One Time Fund Infusion Scheme (OTFIS) whereby financial assistance is provided by NHAI to the contractor/ concessionaire in the form of a working capital loan, ● Rationalized Compensation whereby a one-time compensation, equivalent to annuities that were missed on account of delay in completion of the project, is provided to the concessionaire in the case of BOT (Annuity) projects; ● Extension of concession period, ● Substitution of concessionaire & Termination.

Toll operate transfer model The Ministry is monetizing its road assets constructed with public funds through Toll-Operate-Transfer (ToT) scheme. The scheme envisages bidding of bundled national highways for a concession period of 30 years.

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Masala bond Targeting mobilization of funds, NHAI launched an issue of Masala Bonds at the London Stock Exchange in May 2017. NHAI’s Masala Bonds have been rated the best for the year 2017. Central Road Fund: The Central Road Fund (CRF) is a non-lapsable fund created under Central Road Fund Act 2000. It is procured out of the out of cess/tax imposed on the consumption of Petrol and Diesel. The CRF Act 2000 clearly gives guidelines about the utilization of the money.

● development and maintenance of national highways; ● development of the rural roads; ● development and maintenance of other State roads including roads of inter-State and economic importance; ● construction of roads either under or over the railways by means of a bridge and erection of safety works at unmanned rail-road crossings; and

● disbursement in respect of such projects as may be prescribed by the Government. Planning for Multi Modal Transport Systems ● An India Integrated Transport and Logistics Summit was organized in New Delhi from 3rd to 5th May 2017. ● It has been decided to develop state-of-the-art Inter-modal stations at and Nagpur as the two pilots. ● A Committee has been constituted for review, monitoring and implementation of these Inter-Modal Stations at these locations under the Chairmanship of respective Divisional Commissioner

URBAN MOBILITY Indian cities are characterized by increasing levels of congestion, pollution, road accidents and inequality in access to mobility. The need for better urban mobility in order to build inclusive, safer and more sustainable cities cannot be underestimated.

Status of Urban : Major Modes of Public Urban Transport: ● Buses are the prime mover for both inter-city and intra-city travels in most urban centres. However, in recent times there has been a loss in ridership. Other modes include metro rail, , and local . ● Intermediate public transport system (IPT): All Indian cities feature large numbers of auto rickshaws, taxis, cycle rickshaws and forms of informal car pooling ● The range of public transport services vary considerably across cities. For example: ● Only Mumbai, Kolkata, and Chennai have extensive suburban rail services whereas Delhi has limited suburban rail services. ● Currently, 10 Indian cities have operational metro rail, with Delhi having the largest metro rail system ● Kolkata has India’s only remaining system

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Fig 1 Problems faced by Urban Transport in India: 1. Unprecedented Transport Growth: According to Niti Aayog, the number of registered motor vehicles has increased from 5.4 million in 1981, to 210 million in 2015. This rapid growth in demand in the absence of widespread public transport system has caused a rapid increase of private car ownership in India. 2. Inadequate Public Transport: According to government data, there are about 19 lakh buses in the country and only 2.8 lakh of them are run either by state transport undertaking or under stage carriage permits. # China has about six buses for 1,000 people while India has only four buses per 10,000 people ● Further, a CSE study points out that the share of public transport is expected to decrease from 75.5% in 2000-01, to 44.7 per cent in 2030-31, while the share of personal transport will be more than 50% 1. Urban Pollution: According to a WHO study 14 out of the top 15 most polluted cities in the world belong to India. Vehicular pollution has been one of the major contributors to rising urban air pollution in Indian cities along with other factors such as construction activity, road dust and industrial activity. 2. Urban Congestion: Major Indian cities like Delhi, Mumbai, Kolkata and are ranked among world’s most congested cities. For example: Average speed for vehicles in Bengaluru is reported as 17 km/h. These high levels of congestion have huge economic implications in the form of reduced productivity, fuel waste, and accidents. Further, there is an acute shortage of parking spaces both on and off the in the urban centres. 3. Road safety- Traffic injuries and fatality: According to the Report ‘Road Accidents in India-2016’, road accidents in India have decreased by around 4.1% in 2016 from 2015. However, fatalities resulting from these accidents have risen by about 3.2%. The major reasons for traffic crashes include poor quality of roads, poor traffic management, unsafe and overcrowded vehicles and unsafe driving behaviour. 4. Equity Issues: Unplanned urbanization in India has led to gentrification (as per upper and middle socio-economic class) of city centres and lower income groups are forced to live in peripheral suburbs which have increased their cost and time they allocate to commute. Most of the lower income groups and urban poor fail to afford private transport and even public transport are high for them. For example, a CSE study ranks as the second most unaffordable metro (after Hanoi in Vietnam) with lower income group people spending nearly 22% of their monthly transport on Delhi Metro fares.

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5. Mobility for women: Safety or the lack thereof, is the single biggest factor constraining women’s mobility. According to Action Aid UK, 79% of women in major Indian cities reported being harassed on streets. Overcrowding in public transport adds to insecurity and safety issues with a large number of women complaining about harassment in public transport across major Indian cities like Delhi and Mumbai. Government Initiatives to address Urban Transport issues: 1. Jawaharlal Nehru National Urban Renewal Mission JNNURM, 2005: JNNURM was launched in 2005 and closed in 2014 (now succeeded by Atal AMRUT Mission). It attempted to improve the public transport system in larger cities through funding of public transport buses, development of comprehensive city mobility plans and supporting city transport infrastructure projects. 2. National Urban Transport Policy, 2006: The policy envisages safe, affordable, quick, comfortable, reliable and sustainable urban transport through establishment of quality focused multi-modal public transport systems. 3. Green Urban Transport Scheme, 2016 :. The scheme aims to improve non-motorised transport infrastructure such as dedicated lanes for cycling, pedestrians, increasing access to public transport, use of clean technologies and adoption of intelligent transport systems (ITS). 4. Mass / Transport Systems (MRTS): The metro rail has come up as a favoured alternative of mass transport in Indian cities. In 2017, the government introduced new Metro Policy which aims to improve collaborations, standardising norms, financing and creating a procurement mechanism so that the projects can be implemented effectively. 5. Bus Rapid Transport System (BRTS): BRTS segregates the movement of buses from all other transport modes, and introduces other changes in the road infrastructure that are associated with safety. BRTS is an important component of AMRUT (Atal Mission for Rejuvenation and Urban Transformation) 6. National Transit Oriented Development Policy, 2017: The policy framework aims to promote living close to mass urban transit corridors like the Metros, monorail and bus rapid transit (BRT) corridors. 7. Sustainable Urban Transport Project (SUTP): The project in partnership with Ministry of Urban Development and UNDP aims to promote environmentally sustainable urban transport in India. 8. Personal Rapid Transit System (PRT): It is a transport mode combining small automated vehicles, known as pods, operating on a network of specially built guideways. In 2017, the National Highway Authority of India (NHAI) had called the expression of interest (EOI) for launching India’s first driverless pod taxi systems on a 70 km stretch from Dhaula Kuan in Delhi to Manesar in 9. National Public Bicycle Scheme (NPBS): In 2011, NPBS was launched to build capacity for the implementation and operation of cycle sharing systems across the country. The first public bicycle sharing (PBS) initiative — Trin Trin was launched in Mysuru. 10. Promotion of Electric Vehicles: Indian Government plans to have an all-electric fleet of vehicles by 2030. For promotion of electric vehicles FAME (Faster Adoption and Manufacturing of (hybrid &) Electric vehicles. Under FAME, the Centre subsidizes the cost of electric buses and has sanctioned 390 buses in 11 cities (as of April 2018).

Institutional Challenges: 1. Gaps in Laws and regulations: There is no central, state or local level that comprehensively covers urban transport requirements and issues in Indian cities. Further, the weak enforcement and lacunae in existing laws such as the , 1988 fail to manage fast motorization in Indian cities 2. Poor Institutional Framework: Functions of Urban transport system are performed by multiple agencies under the central, state and city governments which lack coordination and makes accountability difficult.

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3. Land as a Barrier to development of Transport Infrastructure: High cost of land acquisition and time-consuming processes has been a major hindrance to integrated urban transport infrastructure. For example, land acquisition issues have delayed the East-West metro Corridor Project in Kolkata over years. 4. Human Resource Challenges: Lack of urban transport skills amongst city and state officials is a major challenge in effectively implementing transport projects. 5. Absence of Reliable Transport Data: The lack of standardised, systematized data and scientific analysis of urban transport statistics is a major barrier in assessing impact of various ongoing government initiatives and formulate a robust urban transport plan 6. Lack and Delay in release of funds: The urban infrastructure projects have a long gestation period which requires locking of huge amount of funds for a longer period of time. This creates problems in accessing the required funds, thereby impacting timely completion and maintenance of projects

NITI Aayog Recommendations: It calls for a 3C Framework (Clean, Convenient and Congestion free) for transforming mobility in India. To achieve this, it lays down the following action-agenda: Connect Bharat: Niti Aayog calls for a Safe, Adequate and Holistic Infrastructure (SAHI) for the Indian population including women, elderly and the disabled. Major recommendations for achieving this: ● Increased emphasis on safety and accessibility ● Leveraging multiple modes of transport – road, rail, coastal and inland waterways, small regional airports, ropeways etc. ● Higher usage of data for holistic mobility needs Optimize Travel footprint: It calls for increased emphasis to reduce congestion caused by passenger and goods flow in urban areas. Major recommendations include: ● Integrated land use- Planning residential and commercial complexes in an integrated manner so that travel time is reduced ● Focused policy based measures for optimizing travel ● Data-based measures such as intelligent transport systems Promote Seamless Public Transport: It calls for an efficient and convenient public transport to address the issue of air pollution and congestion in Indian cities. Major recommendations include: ● Data-driven planning and urban transport, with a clear hierarchy amongst different modes- from non-motorized (pedestrians, cycles) to public and lastly private transport. ● Focus on multi-modal systems ● Make public transport affordable, comfortable and accessible for urban India, to ensure better adoption

Adopting Green Modes and Technologies: It calls for rapid adoption of electric vehicles and non-motorized transport (NMT). Major recommendations include: ● To improve adoption of non-motorized transport, the routes and paths should be planned so that they integrate seamlessly with public transport.

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● To ensure safety for NMT users by outlining norms & dedicated traffic signals should be a key priority. ● There should be a clear push towards clean technologies. This has to be enabled through ecosystem development which includes domestic manufacturing, deployment of charging infrastructure etc.

Fig 2 For effective execution of these actions-agenda, the Niti Aayog recommends to optimise the following strategic enablers: 1. Skill development which will ensure high employability and address the issue of human resource demand 2. Intelligent Transport systems based on ongoing technological developments 3. Well-defined Governance mechanism involving different stakeholders. 4. A strong public awareness and communication campaign

International Best Practices: Singapore:

● According to McKinsey report titled “Elements of success: Urban transportation systems of 24 global cities” (2018), Singapore’s public transport system is the best and most affordable system in the world. ● Nearly 80% of trips in Singapore are performed on Public Transport comprising of bus, MRT, LRT, Taxis. ● Singapore has one of the highest supplies of public transport per capita in the world. A well planned and extensive public transport system coupled with travel demand restraint measures, like area licensing system, vehicle quota system, congestion pricing etc. has resulted in decreasing registration of private cars and high usage of public transport. Singapore has also introduced “Incentives for Singapore’s Commuters” – a scheme which incentivises commuters to shift their travel time to an earlier or later time belt to avoid the peak travel period on trains and thus avoid overcrowding.

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Mexico City- Right to Mobility: ● In 2014, Mexico City passed a new law which explicitly guarantees the right to mobility and aims at expanding urban mobility through sustainable transportation. The law also created a new mobility hierarchy, placing pedestrians and cyclists above motorists and prioritizing active transport.

Best Practice in India: Ahmedabad BRTS Corridor: Features that stand out: ● For the first three months, the Ahmedabad Municipal Corporation (AMC) ran BRTS free and then made design changes based on commuter feedback ● It provides affordable Smart cards for commuters ● Integrated Transportation Management System (IMTS) which includes Advanced Vehicle Tracking System (AVLS), Fleet Management System (FMS), Automatic Fare Collection System (AFCS), Passenger Information System (PIS), Passenger announcement (PA), and Vehicle Scheduling and Dispatching (VSD) ● CNG Buses ● Safe and secure BRT bus stops with a standard attractive form for presenting passengers information such as signages, route details and graphics Way Forward: 1. To address the institutional challenges there is a need for better cooperation among different transport agencies, departments, and ministries as well as better coordination of transport and land-use policies. Further, there should be adequate funding to address various issues plaguing public transport infrastructure 2. To address the issues of urban congestion and urban air pollution, it is important to augment mass and share transit capacity and discourage use of private cars by enforcing restraint measures through parking policy, low emissions zones approach, tax measures and congestion pricing. Further, policies toward enhancing public transport should promote inclusive access to mobility. 1. Well-engineered, safe infrastructure for travel should be ensured. Further, there is an urgent need to address the issue of low woman mobility by ensuring women safety through gender-sensitive transport policies, dedicated seats/ coaches and emergency helplines. 2. There should be focus on enhancing non-motorised transport. Focus should be to encourage use of non-motorised transport for short distances. Further, Pedestrian zones, bike lanes should be made to ensure safety to commuters. For example, well designated Bike-lanes and bike-sharing solutions have promoted use of bicycles as a mean of transport in cities like Amsterdam and Paris. 3. Commuters should be provided with multiple modes of connectivity. To ease out travelling, a single smart card can be provided. For example, London’s Oyster “smart” card enables a commuter to change from one mode to another with minimal loss of time or effort.

3.10 Green Initiative Green highway division in NHAI NHAI has set up a Green Highways Division and has planted over 2.5 lakh trees planted last year in order to make National Highways green, clean and pollution free.

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Linking of construction of highways with digging of water bodies in drought affected area The requirement of earth work for the development of National Highway network for embankments is met by digging/ de-silting the existing ponds/ water bodies This arrangement would help in restoration of such dried-up water bodies without any charge.

Bridge cum barrage It is an innovative initiative to make bridge-cum-barrage on NHs so as to serve the dual purpose of crossing the water body and storing water on the upstream/ downstream side to serve as water reservoirs/ ground water recharging bodies. This will help better and optimum utilization of water for various purposes.

Vehicular pollution to be covered in environment section

3.11 e-initiatives Indian Bridge Management System (IBMS) ● It is a new initiative, known as Indian Bridge Management System (IBMS), to inventorise all structures e.g. Bridges and culverts constructed on the National highways. ● IBMS is the largest platform in the world owned by a single owner, with database that could exceed 1,50,000 bridge structures. each bridge is assigned a unique identification number or National Identity Number. ● Then the precise location of the bridge in terms of latitude-longitude is collected through GPS and based on this, the bridge is assigned a Bridge Location Number. ● These are then used to do a structural rating of the structure on a scale of 0 to 9, and each bridge is assigned a Structural Rating Number. ● In addition to the structural rating, the bridges are also being assigned Socio-Economic Bridge Rating Number which will decide the importance of the structure in relation to its contribution to daily socio-economic activity of the area in its vicinity.

Project monitoring information system A very effective Project Monitoring Information System (PMIS) has been introduced for tracking the status of all projects, preparation of reports and online upload of important project documents like DPRs and contract documents, etc.

INAM Pro+ It is an upgraded version of INAM-Pro, was launched on 2017. This portal facilitate comparison of price, availability of materials etc. and make it convenient for prospective buyers to procure cement at reasonable rates in a transparent manner. Bhoomi Rashi, a web Utility for land acquisition ln its attempt to move towards total e-governance and avoid delays. The web utility would be linked with the e-gazette platform of the Ministry of Urban Development, for e-publication of land acquisition related Gazette Notifications.

Electronic Toll Collection ● Electronic toll collection (ETC) system, the flagship initiative of MoRT&H, has been implemented on pan-India basis in order to remove bottlenecks and ensure seamless movement of traffic and collection of user fee as per the notified rates, using passive Radio Frequency Identification (RFID) technology. ● Indian Highways Management Company Limited (IHMCL), a Company registered under the Companies Act, has been incorporated for working as implementing agency for ETC with National Payment Corporation of India (NPCI).

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Transport mission mode projects It is one of the 44 mission mode projects under the e-kranti 2.0 initiative. It has set up a consolidated nation-wise transport database and has launched a host of citizen and trade-centric applications Two Flagship Applications under Transport MMP has been developed: ● Vahan to deal with Vehicle Registration, Taxation, Permit, Fitness and associated services. ● Sarathi is related to Driving License, Learner License, Driving Schools and related activities. Other Mobile apps ● e-Challan: developed for comprehensive enforcement solution ● mParivahan App: for information and comprehensive services to citizen ePACE (Projects Appraisal & Continuing Enhancements) It is an online tool to monitor and improve the progress of works at the click of a button. The initiative captures the static and dynamic information for all the projects executed by MORTH, NHAI and NHIDCL. The information captured is across the lifecycle of the projects starting from inception till its completion.

3.13 Road Safety: A Tough Task Roads are the arteries through which the economy sustains. Roads link producers to markets, workers to jobs, students to school, and the sick to hospitals, hence are vital to any development agenda. However, roads can only contribute if they are safe for commuters and government’s main thrust of accident prevention and control has been on 4 E’s (i) Education; (ii) Enforcement; (iii) Engineering; (iv) Environment and Emergency care of road accident victims. UN has announced 2011-2020 as the ‘Decade of Action for Road Safety’ with an aim to reduce fatalities by 50% by focusing on five pillars road safety management, safer roads and mobility, safer road users, post-crash response, and safer vehicles. Road construction and award of road projects in India: ● Road network in India, of about 56 lakh km in March 2016, is one of the largest in the world.

● Highway construction rate in India has more than doubled in the last four years from 12 km/day in 2014 to average of 27 km/day.

● Government is spending more than three times on road construction now than before.

● India’s road density at 1.7 km/sq.km of area is higher than that of many developed countries though surfaced/paved road constituting 62.5% of the total road length is comparatively lower.

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Increasing road accidents and road fatalities: Exposure to adverse traffic environment is high in India because of unprecedented rate of motorization, growing unplanned urbanization and lack of effective traffic management. As a result, incidents of road accidents, traffic injuries and fatalities have remained unacceptably high in India. ● Though incidence of road accidents has declined by 3.3% in 2017 as compared to 2016, still India has a staggering count of around 1.46 lakh road fatalities in 2017.

● Road accident is the 1 cause of death among children and young adultsin the age groups of 5-29 years in India.

● Around 1274 accidents and 405 deaths take place every day in road mishaps in India in which share of two-wheeler riders in total fatality has been highest (33%) in 2017.

● Tamil Nadu has recorded highest number of road accident in 2017, but persons killed in road accident were highest in .

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State wise road accidents in India -2017

Causes of high incidence of road accidents and fatalities in India:

● Lower enforcement presence in high risk areas: ○ Over 50% accidents occurred in open and sparse areas and 73% at uncontrolled junctions. ○ 64% of accidents occurred on straight roads but signboards and warnings are usually found on steep and curved roads. These facts highlight the effect of lower enforcement presence and inadequate traffic control mechanism in isolated areas.

● Traffic rules violations: Over speeding and driving on wrong side together accounted for 76% of total accidents along with other violations like drunken driving, red light jumping and use of mobile phones.

● Skewed road traffic engineering: Two-wheelers accounted for the highest share in total road accidents but have been neglected during road traffic engineering and planning as shown by lack of separate lanes for them and pedestrians.

● Lack of emergency medical services: Administration and availability of first aid at accident site and transportation of victim from site to hospital is found wanting on majority of highways.

● Inadequate surveillance: ‘Hit and run’ cases go uninvestigated due to absence of surveillance infrastructure, 73% two-wheeler accident victims do not wear helmets and a significant proportion of four wheelers do not wear seatbelts or possess driving license.

● Legislative lacunae: Old vehicles ply without regulation culminating into tyre bursts on high speed expressways.

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● Low quality infrastructure, standards and maintenance: In India, quality of road construction is low and road standards are not enforced by builders, which lead to development of ; also maintenance of roads is a corrective measure than preventive in India.

● Vehicular load condition: Overloaded vehicles directly and indirectly cause road mishaps. Overloaded vehicle is accident prone as it is difficult to control during an emergency and it also affects quality of roads, which further increase vulnerability of travelers to accidents.

● Lack of quality driving schools: Drivers’ fault was responsible for 80% killings in road accidents in 2016, underscoring the need for improved enforcement and also for establishment of quality driving schools, driver testing centers and standardized driver license regulations by RTOs.

● Lack of emergency health services availability: In 2017, 65% road fatalities took place in rural areas, suggesting inadequate trauma care facilities in rural areas. Government policy initiatives for improving Road Safety:

● The National Road Safety Policy looks at overall road safety, and outlines initiatives to be taken by the Government at all levels. ● The government is committed to: ○ Raise Awareness about Road Safety Issues ○ Establish a Road Safety Information Database ○ Ensure Safer Road Infrastructure ○ Safer vehicles with built in features at the design stage ○ Road Traffic Safety Education and Training ○ Enforcement of Safety Laws ○ Emergency Medical Services for Road Accidents

● Government has decided to establish a dedicated National Road Safety and Traffic Management Board (NRSTMB) to oversee the issues related to road safety and evolve effective strategies for implementation of the Road Safety Policy

● Motor Vehicles (Amendment) Bill, 2016 passed in and pending at committee stage, seeks to address various issues, including road safety:

○ The Bill allows government to order for recall of motor vehicles if it may cause damage to environment, driver or other road users.

○ Good Samaritan will not be liable for any civil or criminal action for any injury to or death of an accident victim.

○ Bill increases penalties for several offences under the Act like drunken driving

○ Cashless treatment for road accident victims during golden hour.

○ Compensation in case of death in hit and run accident, where no person can be held liable for the accident ○ However, the Bill does not provide for any road safety agencies or improving road design and engineering. Other steps taken by government for Roads Sector:

● Constitution of National Road Safety Council (NRSC)/ State Road Safety Councils and District Committees.

● Measures and awareness campaign on road safety like telecasting/broadcasting of T.V. spots/Radio jingles, display of cinema slides, hoardings, organizing Road Safety Week.

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● High priority has been accorded to identification and rectification of black spots (accident prone spots) on national highways.

● Comprehensive database of traffic accidents to develop targeted safety programmes.

● Anti-lock Brake System (ABS) has been made mandatory for some classes of vehicles. ● In order to ensure safe and smooth flow of traffic, Ministry of Road Transport & Highways has envisaged a plan for replacement of all the on National Highways under a scheme Setu Bhartam. ● Setting up of model driving training institutes in States and refresher training to drivers of Heavy Motor Vehicle in the unorganized sector. ● Road safety has been made an integral part of road design at planning stage. ● Providing cranes and ambulances to various State Governments under the National Highway Accident Relief Service Scheme for development on National Highways. Following steps would help in making Indian roads safer:

● Following UN’s Safe Systems Approach (SSA): It is based on:

○ Inclusive approach: Catering to all groups using the road system, including drivers, motorcyclists, pedestrians, cyclists, and commercial and heavy vehicle drivers.

○ A ‘forgiving’ road transport system: SSA acknowledges that there are limits to handle pain by human bodies and that people will make mistakes but road system should be safe enough in its design and operation so that collisions do not exceed the limits of human tolerance.

● Objective deployment of resources: Considering limited resources available with traffic departments the deployment of resources should be objective, need and trends based and done after scientific investigation of road accidents: ○ 6:00 PM to 9:00 PM period recorded maximum number of road accidents thus demanding more focused attention. ○ National Highways (NH) constitute 1.8% and State Highways (SH) 3.1% of total road length in the country, but 30% accidents took place on NHs and 25% on SHs necessitating better highway management.

● Dedicated corridors for vulnerable sections: High risk and vulnerable sections like motorists and pedestrians should be provided dedicated corridors.

● Improving public transport: Efficient, seamless and integrated multi-mode public transport system is safe and environment friendly transport.

● Use of technology for better surveillance: Deployment of adequate speed detection cameras and drones on junctions.

● Road Safety and Traffic Management Boards: Sundar Committee on Road Safety (2007) found that responsibility for road safety is diffused across various bodies with no effective coordination and called for establishments of Road Safety and traffic management Boards at state and national level to look after capacity building and coordination in the sector.

● Road safety audits and engineering: ○ Regular road safety audits should be conducted by government and trainings should be conducted for building capacity of road auditors and engineers.

○ Road engineering and policies should follow Avoid-Shift-Improve (ASI) framework i.e. avoiding growth in vehicle kilometers travelled; shift trips to safer, sustainable modes, like public transport and non-motorized transport; and improving general condition of transport in terms of safety, time, cost, comfort.

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● Good Samaritan Law: Only few states like Delhi have effective Good Samaritan law and even in states where it is present, awareness among people is low. People should be made aware about the guidelines through print and mass media to reduce fatalities.

● Better safety features in vehicles: Better safety features in vehicles like traction control systems, airbags and collision warning systems, Electronic Stability Program (ESP), Anti-Lock Braking System (ABS).

● Supreme Court recently asked state and central governments to:

○ Fix accountability of officials and contractors: The officials certifying road projects and contractors building sub-standard projects should be held accountable with imposition of fines and punishments for their laxity.

○ Compensation to road accident victims: Recently SC asked state and central governments to provide compensation to road accident victims caused due to state negligence.

○ Road safety committee in all districts: Setting up of such committees, comprising SP and officials from health, PWD, NHAI and civil society in every district, to take corrective measures and establishing trauma centers in all districts for quick care to victims. Best practices: Sweden’s Road Safety Vision: Targeted approach and war-footed steps to achieve ‘Vision Zero’ i.e bringing road fatalities to zero, brought down fatalities to five or six annually. Luxembourg made considerable reduction in road accidents by putting greater emphasis on public transport (MRTS, RRTS), non-motorized transport and transit-oriented development.

As a signatory to the Brasilia Convention, the government intends to reduce traffic fatalities by 50% by 2020. A combined and congruent action by state and citizens can go a long way in reducing road related tragedies and loss of life.

Rakesh Mohan committee on transport development The National Transport Development Policy Committee (NTDPC), constituted under the chairmanship of Shri Rakesh Mohan, has submitted its report suggesting reforms for development of various modes of transport. These reforms are categorized as immediate reforms and long run goals. Immediate reforms have been suggested at national, state and metropolitan levels. However, long term goals are for national and metropolitan levels

S. SUNDAR COMMITTEE RECOMMENDS CREATION OF NATIONAL ROAD SAFETY AND MANAGEMENT BOARD The main recommendations of the Committee include creation of the National Road Safety & Traffic Management Board, an Apex body at national level to promote road safety and traffic management in the country to be constituted through an Act of the Parliament with members and experts drawn from the various fields including road engineering, automobile engineering, traffic laws, medical care, etc.

Justice K.S. Radhakrishnan committee The committee, headed by retired Supreme Court Judge Justice K.S. Radhakrishnan, was formed in 2014 to check lax implementation of road laws and gave the State governments directions including removal of roadside ads and posters which obstruct or distract drivers and a total ban on alcohol sale on national and state highways.

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National Road Safety Council National Road Safety Council is an advisory body. It was established under section 215 of Motor Vehicles Act, 1988 with the objective of improving road safety aspects in road transport sector. The Council is chaired by the Hon’ble Cabinet Minister of the Ministry of Road Transport and Highways.

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CHAPTER 2: RAILWAYS

Mahatma Gandhi has once said, that “the Indian railways brought people of diverse cultures together to contribute to India’s freedom struggle”. Indian railway is the main artery of the country’s inland transport. Railway virtually form the life-line of the country, catering to its needs for large scale movement of traffic, both freight and passenger, thereby contributing to economic growth and also promoting national integration.

Significance of Railway At present India has second largest railway network in Asia and the fourth largest in the world after USA, Russia, and China.

The growth of indian railways since its inception in 1853 has been phenomenal. It has played a vital role in the economic, industrial and social development of the country. Attributes of Indian railways are significant: 1. Cheapest and most convenient mode of passenger transport. 2. Significant for growth and development of industries. 3. Significant for backward and forward linkages. 4. Agriculture also owes its growth to railways to a large extent. 5. Helpful in removing isolation between cities and countryside. 6. Significant role in disseminating innovations and new ideas. 7. Suited to long distance journey. 8. Plays vital role in mitigating the suffering of the people in the events of natural calamities. This is done by carrying relief and rescue team and essential items to the affected areas. 9. Connects port and hinterland and thereby lending helping hand to the overall prosperity of coastal areas. 10. Railways is specially suited to the haulage of bulky materials like coal, petroleum and ores.

Institutions governing railways(RDB) Ministry of Railways had brought out a concept paper for public consultation on setting up of Rail Development Authority of India. Some of the aims and objectives of Rail Development Authority are: 1. Pricing of services commensurate with costs; 2. Enhancement of non-fare revenue; 3. Protection of consumer interests by ensuring quality of service and cost optimization; 4. Competition, efficiency and economy; market development; creation of positive environment of investment; 5. Benchmarking of service standards against international norms; providing framework for non-discriminatory open access to dedicated freight corridor (dfc); 6. Absorption of new technologies for achieving efficiency and performance standards; and 7. Human resource development to achieve any of its stated objectives.

Merger of Rail Budget with Union Budget The Government has decided to merge Rail Budget with the Union Budget from budget year 2017-18. The merger of Railway Budget with General Budget is based on the recommendations of the Committee headed by Bibek Debroy.

The salient features of merger and the benefits likely to accrue therefrom are broadly given below:

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● Railways will get exemption from payment of dividend to General Revenues and its Capital-at-charge would stand wiped off; ● Ministry of Finance will provide Gross Budgetary Support to Ministry of Railways towards meeting part of its capital expenditure; ● Railways may continue to raise resources from market through Extra-Budgetary Resources as at present to finance its capital expenditure; ● The presentation of a unified budget will help present a holistic picture of the financial position of the Government; ● Merger of Rail Budget with Union Budget would facilitate multimodal transport planning between highways, railways and inland waterways; and ● It will allow Ministry of Finance greater elbow-room at the time of mid-year review for better allocation of resources, etc.

Railway Zones

Railway Zone Headquarters Railway Zone Headquarters

Northern New Delhi South Western Hubli

North Central Allahabad South East Central Bilaspur

North Eastern Gorakhpur South Eastern Kolkata

North East Frontier Maligaon () Eastern Kolkata

North Western East Central

Southern Chennai Central Mumbai CST

South Central Secunderabad Western Mumbai (Church Gate)

West Central Jabalpur

Railways for urban Mobility The rapid growth in India’s urbanization, population and wealth over the last few decades has had a marked effect on the mobility of its citizens. India’s transport demand has grown by almost 8 times since 1980 – more than any other Asian economy.

Three core theme of transforming urban transportation are: Clean: Pollution-free, leading to clean air and hence better health and living standards. Convenient: Seamless, safe, affordable, accessible for all sections including the elderly & disabled and connected – both in terms of technology as well as connecting key rural and urban centers. Congestion-free: Minimum congestion levels, and hence enhanced economic efficiency.

Need of Railways in Urban Transport ● Railway being the bulk carrier helps in mass transportation

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● Different modes of Railways viz; Metro, DEMU etc. Runs on electricity and saves urban areas from carbon emission. For example: Delhi Metro, the first Railway project in the world to be registered for carbon credits by the United Nations, has been certified to have prevented over 90,000 tonnes of carbon dioxide from being released into the atmosphere by reducing its power requirement, thus contributing to the fight against global warming. ● There is growing congestion on roads due to increasing private vehicles. In this scenario railway is the best alternative. ● Railway is also needed to reduce the out of pocket expenditure in urban areas. ● Public transport can also help to reduce problem of pollution faced by our cities.

Transit Oriented development TOD integrates land use and transport planning and aims to develop planned sustainable urban growth centers. Citizens should have access to open and green public spaces and at the same time multi model transit facilities at the doorstep. TOD increases the accessibility through transit stations by creating pedestrian and Non-Motorised Transport friendly infrastructure that benefits large number of people.

The vision of transit oriented development is three fold: Enable Transformation: to assist in transformation of cities from private vehicle dependent city to public transport oriented development, Accessible Public Transport: to promote the usage of public transport by making it accessible, encourage green mobility by encouraging people to walk and cycle and at the same time pollution and other negative impacts of motorization. Compact Walkable Communities: to create livable and affordable communities, which are compact and walkable.

NITI AaYOG has recently suggested Mass rapid transportation technologies such as hyperloop, metrino and pod taxis for rapid urban mobility. These new technologies are path breaking and can alter the way of intercity travel in the country.

The new technologies are being explored as current public transportation is unable to resolve the increasing traffic crisis in the country. Besides, some of them are more cost effective than the existing ones.

Problems in Indian Railways Safety issues and lack of quality service delivery in the passenger segment. While the merging of the railway budget with the union budget in 2017-18 will help increase funding for the railways, improving financing to address several of these challenges will require specific actions.

Poor performance of Freight Segment: The railways also suffer from low capacity, poor utilization of existing capacity. Despite its extensive reach and scale, as noted earlier, the share of railways in the total surface freight carried has declined from 86.2% to 35.5% between 1950-51 and 2011-12.

Solution Niti Ayog in its three-year action agenda has suggested following measures to augment freight segment.

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● Rationalize railway fares to increase capacity utilization along non-major routes in the freight segment. Currently, freight fares in railways are kept high to cross-subsidize the passenger segment. By 2020, we should substantially rebalance fares such that freight fares are more affordable to increase the usage of railways for freight transport especially in non-major Routes.

● Implement and plan DFCs. In particular routes often operate at 100% capacity. A rail route is considered congested if capacity utilization increases beyond 80%. The railway capacity of these routes should be augmented. The completion of proposed freight corridors will help achieve this.

2. Ineffective Connectivity and problems of Delay: Railway is facing huge congestion on the densely populated segments viz: UP, , . Due to this frequent delay cost huge economic and material loss. To augment the situation following solutions are suggested: 1. Build additional infrastructure for railways to augment capacity and connectivity. 2. Engage world-class experts and involve the private sector for technical advice and support in building new rail lines and developing new stations. 3. Fast track the development of the Mumbai-Ahmedabad High Speed Rail (MAHSR). 4. Development of semi high-speed trains to enhance connectivity. semi high-speed rail for regional connectivity can be constructed as Regional Rapid Transit System (RRTS) in sections where the DFCs are planned.

3. Poor Service Delivery and Efficiency: The Railway services on board journey as well as off journey are not able to meet the basic minimum standards. For example: poor food delivery, sanitation problems, lack of cleanliness at platform, lack of disabled friendly infrastructure. Solutions 1. Enhance service quality in passenger railways. 2. Improve efficiency of freight railways. 3. Improve the quality of railway stations and trains. 4. Redevelop and modernize railway stations. 5. Improve the punctuality of trains. 6. To resolve the cleanliness problem railway has launched Clean My Coach app as well as Coach mitra.

4. Problems of Railway Safety: Frequent rail accident, theft cases inside the train, lack of women’s safety etc. raise the question mark on the safety of passengers. For instance, Utkal Express derailed at Khatauli, near in Uttar Pradesh, killing at least 23 people, Amritsar train accident killed more than 60 people. There is need to divert resources for improving rail safety. Safety should be accorded the highest priority by Indian Railways and all possible steps should be undertaken on a continual basis including upgradation of technology to aid safe running of trains. These include :

Solutions: 1. Implement recommendation suggested by Anil Kakodkar Committee. 2. Replace over-aged assets, 3. Elimination of unmanned level crossings, 4. Adoption of suitable technologies for upgradation and maintenance of track, rolling Stock, signalling and interlocking systems, safety drives,

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5. Greater emphasis on training of officials 6. Inspections at regular intervals to monitor and educate staff for observance of safe practices. 7. Achieve zero fatalities in railways by upgrading infrastructure. 8. Improve safety by adopting new technologies viz, TriNetra 9. Strengthen the institutional framework to ensure safety.

Anil kakodkar committee: A High Level Safety Review Committee under the chairmanship of Dr. Anil Kakodkar was constituted to review the safety of the Indian Railways and recommend improvements. The Committee recommends a total financial investment of Rs 1,00,000 crore over a five-year period.

Recommendations: ● There is need for an independent mechanism for safety regulation. The Committee recommends the creation of a statutory Railway Safety Authority with enough powers to have a safety oversight on the operational mode of Railways. ● Restructuring of RDSO for greater empowerment. ● A Railway Research and Development Council (RRDC) should be set up directly under the government. ● Adoption of an Advanced Signalling System (akin to the European Train Control System) for the entire trunk route length of 19,000 km within 5 years. ● All Level Crossings (both manned and unmanned) should be eliminated over five years. ● A switch over from the ICF design coaches to the much safer LHB design coaches.

Bibek Debroy Committee The Railway Board had constituted a Committee for mobilization of resources for major railway projects and restructuring of Railway Ministry and Railway Board under the Chairmanship of Mr. Bibek Debroy. The Committee submitted its final report in June 2015. Key findings and recommendations of the report.

● One, failure of private participation in Railways, because policy making, the regulatory function, and operations are all vested within the same organisation, that is, the Ministry of Railways ● The Committee recommends that the three roles must be separated from each other to have sustained and large scale private participation. ● Committee recommends setting up an independent regulator, the Railways Regulatory Authority. ● An independent regulator for Railways is also necessary because of the technical and specialized nature of the sector. ● There is a need to restructure the organisation’s zones and divisions. ● The Committee has observed that, apart from its core function of running trains, Railways also engages in peripheral activities such as running schools, hospitals and a police force. ● Non-core activities can be outsourced to private entities. An example cited by the Committee is that of subsidization of education and medical facilities in alternative schools and hospitals respectively, including the private institutions. ● Committee recommends switching to a commercial accrual-based double entry accounting system. This will

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clearly distinguish between revenue and capital expenditures and present a complete picture of debt and other liabilities.

Recent development in Railways Dedicated freight corridors It aims to increase market share of freight transport from 33% to 45% by 2022 while increasing private partnership in infrastructure and operation of freight traffic.

The Ministry of Railways, under the direction of the Indian Government, has taken up the dedicated freight corridor (DFC) project. The project involves the construction of six freight corridors traversing the entire country. The purpose of the project is to provide a safe and efficient freight transportation system. Initially, the construction of two freight corridors – the Western DFC connecting the states of Haryana and , and Eastern DFC connecting the states Punjab and – is being undertaken. The combined length of the Western and Eastern DFCs will be about 2,800km. The total cost of the project, which is expected to be completed by 2017, is estimated at $10bn. The other four corridors include: ● North-South (Delhi-Tamil Nadu), ● East-West (West Bengal-Maharashtra), ● East-South (West Bengal-) and ● South-South (Tamil Nadu-). These four corridors are still in the planning stage.

In 2006, the established a dedicated body, the Dedicated Freight Corridor Corporation of India (DFCCIL), to implement the project.

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Bullet train The country’s first bullet train is likely to start running between Mumbai and Ahmedabad by the end of 2022. The 508-km, high speed train corridor is being built with Japanese assistance.

In parallel, Indian Railways will start the process of setting up a bullet train assembling facility in India on a public private participation (PPP) basis that will cater to future needs.

Train 18 India’s first engine-less train, Train 18, was tested in the -Rampur section ● Train 18 has the potential to travel up to a speed of 160 kmph, as against 130 kmph for Shatabdi. ● Train 18, the Rs 100 crore train, was developed by Chennai in 18 months. ● Like Metro coaches, the doors of Train 18 will open only after it stops.

The railways has turned its focus on another project - - the next generation aluminium-bodied sleeper class trains that will replace the trains on the network and is expected to be rolled out by 2020.

Rashtriya Rail Sanraksha Kosh (RRSK) ● A fund namely ‘Rashtriya Rail Sanraksha Kosh’ (RRSK) has been created in 2017-18 with a corpus of ₹1 lakh crore over a period of five years for critical safety related works. ● This is in line with suggestions made by Anil Kakodkar Committee. ● It is a non-lapsable fund created by Ministry of Finance, since the union and railway budgets will be merged for the first time. ● It receives fund from this year budget allocation and also from the Central Road Fund. ● The Central Road Fund is collected by levying Cess on diesel and petrol for safety-related work. ● The Rail Safety Fund was setup based on the recommendation of a committee headed by Anil Kakodkar.

AVATARAN Railway ministry in 2016 has proposed to transform Indian Railways through seven Mission activities – Avataran. These missions are: 1. Mission 25 Tonne – It aims to increase revenue by augmenting carrying capacity. 2. Mission Zero Accident: It comprises of two sub missions a. Elimination of unmanned level crossings: b. TCAS (Train Collision Avoidance System): 3. Mission PACE (Procurement and Consumption Efficiency): This mission aims to improve our procurement and consumption practices to improve the quality of goods and services. 4. Mission Raftaar: It targets doubling of average speeds of freights trains and increasing the average speed of superfast mail/express trains by 25 kmph in the next 5 years. 5. Mission Hundred: This mission will commission at least a hundred sidings in the next 2 years. 6. Mission beyond book-keeping: It will establish an accounting system where outcomes can be tracked to inputs.

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7. Mission Capacity Utilisation: It proposes to prepare a blueprint for making full use of the huge new capacity that will be created through two Dedicated Freight Corridors.

Alternate Train Accommodation Scheme – VIKALP ● The scheme aims to facilitate waitlisted passengers to get an alternate train accommodation within 12 hours of the original train. ● The waitlisted passengers will get confirmed accommodation in next alternative train if they opt for it while booking. ● No extra charges will be paid by the passenger to avail this scheme or any refund provided for the difference of fare.

Clone train services ● The proposed service will run on high-demand routes within an hour of a scheduled train’s departure to accommodate those on its waiting list. ● The idea is to ensure that they reach their destination around the same time they had originally envisaged.

Antyodaya Express ● The Antyodaya Express was announced during the 2016 Railway Budget. ● All the coaches are unreserved. ● DeenDayalu coaches have also been announced that provides many facilities that would make the journey of a second- class train traveller more comfortable.

Operation Swarn ● Operation Swarn is launched by the Railway Ministry to improve services in Rajdhani and trains. ● Under the project, the Indian Railways will focus attention on 10 key areas — punctuality, cleanliness, linen, coach interiors, toilets, catering, staff behaviour, security, entertainment, housekeeping and regular feedback.

Nivaran ● It is the grievance redressal portal launched by the Ministry of Railways. ● It is the first IT application to be launched on the Rail Cloud. ● It is a platform for resolution of service related grievances of serving and former railway employees.

Initiatives by Ministry of Railways SRESTHA - New R&D organisation to serve the future technology needs of Railways. SUTRA – A special unit for Transportation Research and Analytics. The team will be involved in World class data analytics, simulation softwares, network optimisation and decision support systems.

Sampark, samanvay and Samvad ● It is a conclave organized by the Ministry of Railways to discuss and deliberate ―Vision for New Railway – New India 2022‖. ● The conclave is aimed at breaking the boundary put up by railway organization in sharing information (sampark), improves coordination (samanvay), find solutions (samvad) to the critical issues facing Indian Railways. ● It encouraged all officers to give inputs and bring out the ground realities and potential impediments to implementation of new policies and reforms.

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CHAPTER 3: WATERWAYS

INTRODUCTION Water transport is the cheapest and the oldest mode of transport. It operates on a natural track and hence does not require huge capital investment in the construction and maintenance of its track except in case of canals. The cost of operation of water transport is also very less. It has the largest carrying capacity and is most suitable for carrying bulky goods over long distances. It has played a very significant role in bringing different parts of the world closer and is indispensable to foreign trade.The water transport is of two types. A. Inland waterways B. Oceanic waterways.

Inland waterways It was the chief mode of transport before the advent of railways. It, however, faced tough competition from road and railway transport. Navigable inland waterways comprise rivers, lakes, canals, creeks, backwaters etc. Moreover, diversion of river water for irrigation purposes made them non-navigable in large parts of their courses. ● India has about 14,500 km of navigable inland waterways. ● Despite being the most cost-effective and efficient mode, Inland water transport carries less than 2 percent of India’s organized freight traffic and negligible passenger traffic. ● At present, about 5,600 km of major rivers are navigable by mechanised flat bottom vessels. ● The primary requirement for making this mode commercially viable is development of IWT infrastructure (fairway, terminals and navigation aids) and at the same time creating an enabling environment for augmentation of IWT fleet. ● For the development, maintenance and regulation of national waterways in the country, the Inland Waterways Authority was set up in 1986. ● 111 inland waterways have been declared as ‘National Waterways’ under the National Waterways Act, 2016.

NATIONAL WATERWAYS OF INDIA

Waterways Stretch Specification Date of Declaration

NW 1 Allahabad-Haldia It is one of the most important and the longest 1986 stretch (1,620 km) waterways in India, which is navigable by mechanical boats up to and by ordinary boats up to . It is divided into three parts for developmental purposes– (i) Haldia-Farakka (560 km), (ii) Farakka-Patna (460 km), (iii) Patna-Allahabad (600 km).

NW 2 Sadiya-Dhubri stretch Brahmaputra is navigable by steamers up to Dibrugarh 1988 (891 km) (1,384 km) which is shared by India and Bangladesh

NW 3 Kottapuram- Kollam It includes 168 km of west coast canal along with 1991

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stretch (205 km) Champakara canal (14 km) and Udyogamandal canal (23 km).

NW 4 Specified stretches of Godavari and Krishna rivers along with Kakinada 2008 Puducherry stretch of canals (1078 km)

NW 5 Specified stretches of river Brahmani along with Matai river, delta channels of 2008 Mahanadi and Brahmani rivers and East Coast canals (588 km).

Advantages of Inland Waterways:

● Cost savings: ○ Fuel and Energy Efficient: It is fuel-efficient compared to the other modes of transport, rail and road. For example, the Integrated National Waterways Transportation Grid Study states that one litre of fuel will move 24 tons through one kilometre on road, 85 on rail and 105 km on inland water transport. Further, 1 HP can 150 kg on road, 500 kg on rail and 4000 kg on water.

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○ Cost of developing waterways is much lower than rails & roads. Cost of land acquisition in case of water transport is much lower as compared to other infrastructural projects. Land acquisition is limited to development of port facilities. Further it also requires less time for project implementation as legal hurdles are less. ○ Reduces transportation and transition losses.

● Environment Friendly: ○ Least fuel consumption per tonne‐km ○ Carbon dioxide emission is 50% of trucks ○ Negligible land requirement as compared to rail and road transport

● Supplementary Mode: ○ Reduces pressure on road and rail ○ Reduces congestion and accidents on road

● Optimal Modal Mix: It will provide optimal modal mix by converging river transport with other modes

● Better connectivity: It help create seamless interconnectivity connecting hinterlands along navigable river coasts and coastal routes. Further, riverine routes are likely to play a crucial role in connecting the north-eastern states to the mainland

● Inland Waterways hold huge potential for domestic cargo transport, cruise, tourism and passenger traffic.

● Development of inland waterways will help in the generation of job opportunities Disadvantages of Inland waterways:

● Inland waterways have low transport speed thus not suitable where time is an important factor

● It has limited area of operation, depending on the infrastructural premises and depth of the waterways

● There are only very few cases in which Inland water transport (IWT) can offer door-to-door transport of cargo

● Operational disruptions due to weather is a major disadvantage

Issues and Challenges 1. Cost estimation: In respect to operating costs per ton-km, IWT has lower cost than rail and road transport. However, this cost argument is challengeable. There are two factors which distinguishes how freight moves on land versus on water: i) A road travels straight while rivers bend and curve; therefore, the difference between freight costs for IWT and road/ railways is not much, ii) Cost of loading and unloading freight. 2. Inadequate depth: To be viable for a navigable inland waterway, river needs enough depth throughout the year However, in their natural state; many Indian rivers simply do not have that level of water which will necessitate extensive dredging. Moreover, Indian rivers (especially rivers in the northern plains) face severe problems of siltation round the year 3. Problem of siltation: perennial rivers originating from Himalayan mountain travel through the terai region from where it carries huge amount of sands and silts which get deposited in course of rivers as well as at the mouth of rivers. Due to siltation the river depth decreases and the water availability also reduces. 4. Impact on other activities: Water in rivers has competing demands, including dams and farming. To maintain the water levels in the river to the degree needed for them to function as inland waterways, the water use for such other activities might get curbed. 5. Inadequate Air Draft: Multiple bridges with low vertical clearance obstruct the passage of bigger inland water transport vessels on many inland waterways such as NW 3

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6. Lack of night navigation infrastructure: Rudimentary night navigational facilities and markings are also a major issue. 7. Shortage of IWT vessels: Vessel building is highly capital intensive and faces difficulties in obtaining project finance from banks and financial institutions. 8. Shortage of MRO facilities: There is severe shortage of MRO (Maintenance, Repair and Overhaul) facilities for IWT vessels. 9. Inadequate industries: Inadequate number of Industrial units on the riverside, especially not along the Brahmaputra is a major discouragement hindering development of inland waterways. At National Policy Dialogue on transboundary cooperation related to the Ganga and the Brahmaputra rivers – states, it was highlighted that due to inadequate industrial units result in no cargo commitments by the private players 10. Lack of funds: Dredging as well as infrastructure for IWT requires huge investments. However, both public and private funding in the sector is low 11. Environmental Impact: Dredging operations will damage river bed, and can lead to change in habitats for various aquatic flora and fauna. Dredging may also impact aquifers along the river, damaging the ability of water to percolate underground.

In estuaries and creeks of rivers the removal of river bed material during capital dredging can result in the ingress of excess saline water into the creek or rivers. This is one of the reasons why the state of had opposed many of its proposed waterways.

Construction of jetties, river ports will necessitate removal of trees/ mangrove forests in the area. For example, At Dharamtar port in NW10, for construction of a jetty, the mangrove forest belt on the bank has been removed. Other environmental concerns include pollution due to oil and diesel from vessels, leakage and spilling of cargo.

12. Social impact: Ecological impacts can have implications for livelihoods of people dependent on the rivers and creeks. For example: impact on fishing community, people dependent on riverbed cultivation Displacement is another major concern as land is needed for number of facilities like ports, jetties, and other infrastructure.

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Legal and Policy regime for Inland Waterways in India

Legislation: 1.The Inland Waterways Authority of India Act, 1985: ● The Act provides for the constitution of an Authority for the regulation and development of inland waterways for purposes of shipping and navigation and for matters related to it ● The Inland Waterways Authority of India was formed in 1986. It undertakes projects for development and maintenance of IWT infrastructure on national waterways through grant received from Ministry of Shipping 2. Indian Vessels Act of 1917 (amended in 2007): It deals with the survey and registration of inland vessels, removal of obstructions in navigation, carriage of goods and passengers, prevention and control of pollution etc. 3. Inland Water Transport Policy 2001: Policy talks about IWT being economic, fuel-efficient and environment friendly mode of transport. It advocates large-scale private sector participation both for creation of infrastructure and for fleet operations. 4. National Waterways Act 2016

● The Act declared 111 rivers or river stretches, creeks, estuaries as National (inland) Waterways. ● It enables the Central Government to regulate these waterways for development with regard to shipping, navigation and transport through mechanically propelled vessels. 5.Laws related to environmental and other impacts: ● Forest Act 1980, ● Environmental Protection Act 1986 and various notifications under it like EIA Notification 2006, CRZ Notification 2011 Government Initiatives ● Jal Marg Vikas Project The Jal Marg Vikas Project (JMVP) on NW-1 is being implemented with the financial and technical support of the . The Project entails development of fairway with 3 meters’ depth between Varanasi and Haldia (Phase-I) covering a distance of 1380 km.

● Central Road Fund (CRF) The Ministry of Finance has amended the Central Road Fund Act, 2000, as part of the Finance Bill 2018 to include a list of projects and infrastructure sub-sectors, including inland waterways, for which the CRF could be used. The CRF has since been renamed the Central Road and Infrastructure Fund.

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● SAGARMALA To harness India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes, the Government of India has embarked on the ambitious Sagarmala Programme which aims to promote port-led development in the country.

Vision of the Sagarmala Programme is to reduce logistics cost for EXIM and domestic trade with minimal infrastructure investment. This includes:

● Reducing cost of transporting domestic cargo through optimizing modal mix ● Lowering logistics cost of bulk commodities by locating future industrial capacities near the coast ● Improving export competitiveness by developing port proximate discrete manufacturing clusters ● Optimizing time/cost of EXIM container movement

Components of Sagarmala Programme are: ● Port Modernization & New Port Development: Debottlenecking and capacity expansion of existing ports and development of new greenfield ports ● Port Connectivity Enhancement: Enhancing the connectivity of the ports to the hinterland, optimizing cost and time of cargo movement through multi-modal logistics solutions including domestic waterways (inland water transport and coastal shipping)

● Port-linked Industrialization: Developing port-proximate industrial clusters and Coastal Economic Zones to reduce logistics cost and time of EXIM and domestic cargo ● Coastal Community Development: Promoting sustainable development of coastal communities through skill development & livelihood generation activities, fisheries development, coastal tourism etc.

Interlinking of Rivers Programme: The project is expected to offer potential benefits to the transport sector through navigation.

The Inland Waterways Authority of India (IWAI) has a target of achieving 9,286 km of National and State Waterways as well as feeder routes by 2020.

The following action points will help increase the connectivity and efficiency of inland waterways in India.

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● Streamline the governance of inland waterways. Currently, inland waterways are governed by multiple authorities including the Central Inland Water Corporation Limited (CIWTC Ltd), port authorities and state governments. Streamlining the regulatory structure and bringing an overarching body to oversee Inland Water Transport such as the IWAI will bring more consistency in the rules and strategy of the sector.

● Develop measures for year-round navigation. Efforts should be made to develop deeper stretches of the river, i.e., at least 2.5 m to 3 m to achieve year-around navigation adequate maintenance of rivers, including continuous dredging to maintain adequate water depth for servicing shipping lines should be ensured ● Ease restrictions on river-sea movement. Utilizing a single vessel for both inland and coastal waters, lowers transport costs and minimizes handling. Thus, by 2020, state authorities should draw up coordinates for inland vessel limits under the Inland Vessel Act for their coastal waters

● Develop inland waterways transport to facilitate movement of goods to neighbouring countries and the Northeast. By 2018, state governments should commence work on dredging and channel stabilization to create about 20 new ports in the Brahmaputra and Barak rivers. The protocol for Inland Waterways between Bangladesh and India should be extended for at least 10 years to reduce uncertainty. International Best Practice China has an inland waterway system of more than 5600 navigable rivers and 2000 inland ports. IWT development is concentrated on 5 specific areas (Yangtze river, Pearl River, Beijing-Hangzhou Grand Canal, Yangtze River Delta and the Pearl River Delta). China with the aid of World Bank has taken major initiatives to boost IWT:

 Development of power generating dams, by-passing ship locking systems, and a deeper waterway throughout the system permitting large vessels to undertake trade.

 Three Gorges project: It aims at improving electric power and navigation safety and reduce transportation costs; and development along the Hang-Yong Canal, connecting a network of six rivers to Yangtze River Way Forward: ● Strengthening public-private partnership has the key role to play in developing the inland waterways sector. Private players can undertake terminal development, cargo and passenger handling, and building low-draft vessels and related repair facilities. ● 2.Measures should be taken to develop basic infrastructure, address technological bottlenecks and maintenance of rivers to ensure year-round navigability ● Measures should be taken to taken to ensure availability of seamless, multimodal last-mile connectivity to and from hinterland to reduce trans-shipment cost and make inland water transport economically more viable ● Cargo transport through inland waterways should be incentivised. Following measures can be taken: ● The Government can mandate/incentivise industries in the proximity of national waterways to use this mode for a portion of their shipments. ● the government can promote industrial corridors along riverbanks and foster waterways-based industrialisation. ● Higher road taxes can be levied on transportation of coal and inflammable material over longer distances ● 5.The government should develop passenger terminal development, offer financial support to ferry operators to improve safety, and facilitate insurance coverage to boost passenger transport ● Measures should be taken to promote river tourism in states like Assam and Kerala

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● Keeping in mind the concerns, it is important to assess the environmental and social impact of development of inland waterways and associated infrastructure to negate potential damage.

Oceanic waterways India is one of the fastest growing large economies in the world with a GDP growth rate of 7.5% in 2015-16 and ports play an important role in the overall economic development of the country. Approximately 95 % of India’s merchandise trade (by volume) passes through sea ports. Many ports in India are evolving into specialized centres of economic activities and services and are vital to sustain future economic growth of the country.

India currently has 12 major and 205 non-major ports located across about 7,500 km of coast. Coastal shipping remains largely underutilised, accounting for only 6.5% of the total freight traffic in India in 2014-15, relative to 30% by rail and 57% by road.

The major ports are under the direct administrative control of the Central Government and fall in Union List 7th Schedule of Constitution. Ports other than the major ones are under jurisdiction of the respective maritime state government and fall in Concurrent List. Of the total traffic handled by all Indian Ports, 57 per cent is handled by major ports and 43 per cent by others.

Kolkata Port: Kolkata Port is the only riverine major port in the country. It has a vast hinterland comprising the entire Eastern India including West Bengal, Bihar, , U.P., M.P., Assam, North East hill states and the two landlocked neighbouring

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Paradip Port: is one of the major ports in India. The Government of India declared Paradip Port Trust (PPT) as the eighth major port the country 1966 making it the first major port in the east coast commissioned in independent India.

New Mangalore Port: was declared as the ninth major port in 1974 inaugurated in 1975. The port has 16 berths and one single point mooring with a total capacity of 87.63 MTPA (Million Tonnes Per Annum).

Cochin Port: is strategically located on the South-West Coast of India and at a commanding position at the cross- roads of the East- West Ocean trade, it is a natural gateway to the vast industrial and agricultural produce markets of the South- West India. The hinterland of the port includes the whole of Kerala and parts of Tamil Nadu. Cochin with its proximity to the international sea route between Europe and the Far East and Australia can attract a large number of container lines offering immense business opportunities.

Jawaharlal Nehru Port: Constructed in the mid 1980’s and commissioned in 1989, Jawaharlal Nehru Port has come a long way by becoming a world-class international container handling port. It is a trendsetter in the matter of port development in India through new initiatives like private sector participation. Jawaharlal Nehru Port is an all-weather tidal Port having 12 berths with a capacity of 89.37 MTPA.

Mumbai Port: Mumbai Port is a fully integrated multi-purpose port handling container, dry bulk, liquid bulk and break bulk cargo. The Port has extensive wet and dry dock facilities to meet the normal needs of ships using the port. The port has 33 berths with a total capacity of 65.33 MTPA.

Chennai Port: is an all-weather artificial harbour with one outer harbour and one inner harbour with a wet dock and a boat basin with round the clock navigation facilities. It was established in 1875. Chennai Port has 24 berths with a total capacity of 93.44 MTPA.

Mormugao Port: Mormugao Port, situated on the west coast of India, is more than a century old port. It has modern infrastructure capable of handling a wide variety of cargo. It is a natural harbour protected by a breakwater.

V.O. Chidambarnar Port (Tuticorin): V.O. Chidambaranar Port is located strategically close to the east- west international sea routes. The port has 15 berths with a total capacity of 65.90 MTPA.

Deendayal Port (): Deendayal Port (erstwhile Kandla Port) was established in 1950 as a central government project and Union Government took over Kandla for its development as a major port. It has 28 berths including 3 single buoy moorings including an off-shore terminal at Vadinar with a capacity of 150.26 MTPA.

Visakhapatnam Port: Port of , a natural harbour, was opened to commercial shipping in 1933. It is the only Indian Port possessing three international accreditations. The Port has mechanized handling facilities for iron ore, iron pellets, alumina, fertilizer raw material, crude oil and POL products, liquid ammonia, Phosphoric acid, edible oil, caustic soda and other liquid cargoes. The port has 24 berths with a total capacity of 110.75 MTPA.

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Kamarajar Port Limited (): (KPL), the 12th major port under the Ministry of Shipping was commissioned in 2001, primarily as a coal port dedicated to handling thermal coal requirements of Tamil Nadu Electricity Board (TNEB).

Issues and Challenges with Indian Ports: 1. High times -Ports in India suffer from high turnaround times for ships. For example, in Singapore, average ship turnaround time is less than a day. However, in India, it is over two days. (Economic Times) 2. Port congestion: Port congestion due to container volume,shortage of handling equipment and inefficient operations is a major concern. Example: In Nhava Sheva port 3. Sub-optimal Transport Modal Mix: Lack of requisite infrastructure for evacuation from major and non-major ports leads to suboptimal transport modal mix 4. Limited Hinterland Linkages: There is inefficiency due to poor hinterland connectivity through rail, road, highways, coastal shipping and inland waterways. This in turn increases the cost of transportation and cargo movement 5. Lengthy inspection and scrutiny: Though customs operations in India are rapidly going paperless and converting to digital, inspections and scrutiny continue to be lengthy for cargo and other shipping operations. 6. Inadequate infrastructure and Technology Issues  Lack of adequate berthing facility, number of berths, sufficient length for proper berthing of the vessels at the Non- Major Ports is another problem.

 Most Non-Major Ports do not have proper material handling equipment in place which could facilitate a quick turnaround

 Draft is also a major limitation in India as terminals and ports are unable to cater to vessels beyond Panamax (Draft over 13 meters) size that are increasingly dominating global trade

 Most Indian ports lack of equipment for handling large volume  Further many ports also lack adequate navigational aids, facilities and IT systems 7. Issues with Regulations:  The major problem with regulation is that major and non-major ports fall under different jurisdictions. Further, the regulatory framework is rigid.

 Cabotage laws in India continued to remain restrictive. Foreign-flagged vessels are not allowed to ship cargo from one Indian port to another as that remains a protected turf for domestic shippers

Land acquisition and environmental clearances are some specific challenges for non-major ports. 8. Issues with PPP Model:  Most port PPPs impose strict limits on what private operators are allowed to do, usually in terms of the types of cargo they are allowed to handle.

 Until recently, Other problems were related to tariff regulation and absence of dispute resolution mechanism. 9. Discriminatory provisions for Indian vessels:  Foreign vessels are exempt from duty on bunker fuel while Indian vessels have to pay this duty.

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 Seafarers aboard Indian flag vessels are subject to Indian income tax while those working aboard foreign vessels are not subject to this tax. 10. Environmental impact:  During the operation of ports, spillage or leakages from the loading and unloading of cargo and pollution from oil spills are common due to poor adherence to environmental laws and standards.

 The water discharged during the cleaning of a ship and the discharge of ballast water is a threat to marine ecosystems  Dredging causes environmental problems (increased sedimentation) affecting local productivity of the local waters and its fisheries. 11. Social impacts of Port Development:  Most port projects and development results in displacement (such as in Andhra and Mundra in Gujarat).

 Besides displacement, the other important concern expressed by fishing communities is the restriction of access to fishing grounds around a port. 12. Manpower and Labour Issues: Lack of adequate training, falling manpower quality, opposition to reform are major issues 13. Unhealthy Competition: Analysists have cited the concerns over development of multiple ports in close vicinity handling similar cargo as it might lead to ports competing for the same cargo arrivals. Regulatory Scenario of ports in India

 All Indian ports are regulated under the Indian Ports Act, 1908. This Act defines the jurisdiction of central and state governments over ports, and lays down general rules for safety of shipping and conservation of port facilities. Major Ports:

 Major ports are under the jurisdiction of the Government of India and are governed by the Major Port Trusts Act 1963, except Ennore port, which is administered under the Companies Act 1956. The ports act as semi-autonomous bodies under the administrative wing of the Ministry of Shipping. Minor Ports:

 Non-major ports come under the jurisdiction of the respective state Governments’ Maritime Boards (GMB).

By 2020, we should improve the standards in Indian ports to improve logistics and boost export efficiency. We can achieve this by: ● Easing the regulatory environment,

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● Digitizing the customs process, ● Improving the technology used in the tracking of consignments and ● Adopting additional technology systems to ensure timely deliveries. ● Increasing competition through easing cabotage. ● Increasing the capacity of and eliminate discriminatory provisions for Indian vessels. ● Creating deep-water ports or barges for ports with low drafts. ● Facilitating minor/non-major port connectivity to hinterland areas. ● A uniform Goods and Services Tax (GST) will reduce internal barriers to trade

Key Policy Developments: The Major Ports Authorities Act, 2016: The Act seeks to provide greater autonomy and flexibility to major ports. It repeals the Major Port Trusts Act, 1963. The key features of the Bill include:

1. Under the 1963 Act, all major ports are managed by the respective Board of Port Trusts that have members appointed by the central government. The Bill provides for the creation of a Board of Major Port Authority for each major port. The major functions of the Board of Major Port authority include:

 The Board can use its property, assets and funds as deemed fit for the development of the major port.  Under the Bill, the Board or committees appointed by the Board will determine rates for assets and services available at the port. Under the 1963 Act, it was done by the Tariff Authority for Major Trusts

 Under the 1963 Act, the Board has to seek prior sanction of the central government to raise any loan. Under the Bill, to meet its capital and working expenditure requirements, the Board may raise loans from any (i) Indian scheduled bank or financial institution, or (ii) any financial institution outside India that is compliant with all the laws.

The Bill provides for the central government to create an Adjudicatory Board. Functions include:

 certain functions being carried out by the Tariff Authority for Major Ports  adjudicating on disputes or claims related to rights and obligations of major ports and PPP concessionaires  reviewing stressed PPP projects,

 looking into complaints received from port users regarding port services.

Amendments to Model Concession Agreement (MCA):

1. Approved in 2008, MCA governs the functioning of Major Ports with respect to PPP projects 2. In January 2018, the government approved amendments in the Model Concession Agreement (MCA) to make the Port Projects more investor-friendly and make investment climate in the Port Sector more attractive. Key features include:

 Constitution of the Society for Affordable Redressal of Disputes – Ports (SAROD-PORTS) as dispute resolution mechanism.

 Providing exit route to developers by way of divesting their equity upto 100% after completion of 2 years from the Commercial Operation Date(COD).

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 Under provision of additional land to the Concessionaire, land rent has been reduced from 200% to 120% of the applicable scale of rates for the proposed additional land.

 Payment of royalty for the ports on ‘per million tonne of cargo handled’ instead of percentage of gross revenue based on tariff determined by Tariff Authority for Major Ports (TAMP).

 “Actual Project Cost” replaced by “Total Project Cost”.

 Introduction of Complaint Portal for the use of port users.

Sagarmala Project: The programme aims to modernize India’s ports so that port-led development can be augmented and coastlines can be developed to contribute in India’s growth. Major objectives of the project are:

Major components of the project include:

 Port Modernization & New Port Development  Port Connectivity Enhancement  Port-linked Industrialization

 Coastal Community Development

Project Unnati: It has been started by Government of India to identify the opportunity areas for improvement in the operations of major ports. Under the project, 116 initiatives were identified out of which 86 initiatives have been implemented (as of March 2018) National Maritime Agenda, 2010-2020: The major objectives include:

1. Increasing capacity: To create a port capacity of around 3,200 MT to handle the expected traffic of about 2,500 MT by 2020 2. World-class Infrastructure: To implement full mechanisation of cargo handling and movement at ports, thereby bringing Indian ports on par with the best international ports in terms of performance and capacity 3. Strategically building Ports: To develop 2 major ports (1 each on East and West coast) to promote trade as well as 2 hub ports (1 each on the West coast and the East coast) – Mumbai (JNPT), , Chennai and Visakhapatnam 4. Port Regulator: To establish a port regulator for all ports in order to set, monitor and regulate service levels, technical and performance standards

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5. Enhancing Participation of Private Sector: Implement Landlord port’ concept to limit the role of ports to maintenance of channels and basic infrastructure while leaving the development, operation, management, of terminal and cargo handling facilities to the private sector

Green Initiatives: As part of the Swachh Bharat Abhiyan, Green Agenda, new schemes have been formulated for providing financial assistance to Major Ports for green initiatives and also for building their capacity for combating oil pollution. The government plans to install almost 200 MW wind and solar power generation capacity by 2019 at the ports.

Introduction of Port Enterprise Business System Recently, Tech Mahindra won the contract on a tender issued by the Indian Ports Association (IPA) to maintain an Enterprise Business System (EBS) to modernise and automate port processes for five central government-owned ports. The ports include: Kolkata Port Trust, Paradip Port Trust, Chennai Port Trust, and Deendayal Port Trust (formerly Kandla Port Trust). Major expected benefits of EBS include:

 Improvement in India’s ranking in ease of doing business  enabling faster request processing in delivery of services with better turnaround time,  reduction in manual intervention  reduction in overall transaction time and costs

 improve the efficiency of port operations

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● Port-Led Development in India The concept of "port led development" is central to the Sagarmala vision. Port led development focuses on logistics intensive industries (where transportation either represents a high proportion of costs, or timely logistics are a critical success factor). The population in adjoining areas would have to be sufficiently skilled to participate in economic opportunities on offer. The synergistic and coordinated development of four components, namely logistics intensive industries, efficient ports, seamless connectivity and requisite skill-base will lead to unlocking of economic value. Fig:

Sr. No. Countries Logistics Cost as % of GDP

1 India 19%

2 China 12.5%

3 Indonesia 15.72%

4 UK 13.43%

Source: WORLD BANK India, where the logistics cost (19% of GDP) is amongst the highest in the world will undergo complete transformation under the Sagarmala Programme, by unlocking the full potential of India’s coastline and waterways.

Model Concession Agreement for PPP Ports Development The Union Cabinet has approved amendments in the Model Concession Agreement (MCA) to make the Port Projects more investor-friendly and make investment climate in the Port Sector more attractive. Salient features:

● The amendments in the MCA envisage constitution of the Society for Affordable Redressal of Disputes - Ports (SAROD-PORTS) as dispute resolution mechanism similar to provision available in Highway Sector. ● Providing exit route to developers by way of divesting their equity upto 100% after completion of 2 years from the Commercial Operation Date(COD)

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● Under provision of additional land to the Concessionaire, land rent has been reduced from 200% to 120% of the applicable scale of rates for the proposed additional land. ● imposition of standards and conditions arising out of Tariff Authority for Major Ports (TAMP) guidelines/orders, Environmental Law & Labour Laws. ● Introduction of Complaint Portal for the use of port users. ● A Monitoring Arrangement has been introduced for keeping periodical status report of the project.

The concept of Dry Port A dry port, also called sometimes an inland port or multimodal logistics centre, is an inland terminal connected to a seaport by rail or road. It serves as a transhipment point in the transport of export/import goods. A dry port is called so because it is very similar to a seaport in the services it offers, except that it is not near a sea.

Twenty-one Dry Ports are currently under development in the country. The proposal for setting up of Dry Ports which include Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs), are received from Central/State Govt. PSUs and private developers.

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CHAPTER 4: CIVIL AVIATION

Introduction Air transport is the fastest means of movement from one place to the other. It has reduced distances by minimising the travel time. It is essential for a vast country like India, where distances are large and the terrain and climatic conditions are diverse: ● The Civil Aviation sector transported 85 million passengers and 590,793 tonnes of freight in India in 2015-16. The sector also has a significant impact on the productivity and growth of other sectors. ● Civil Aviation directly and indirectly contributed USD 7,192 billion to India’s GDP and created 9.64 Lakh jobs in 2016. ● Beyond the direct and indirect effects, the sector also contributes to income and employment through increasing tourism and its supply chain.

The sector has grown significantly over the past few years, growing by nearly 22% between 2014 and 2016 in terms of the number of passengers carried. The government has undertaken several measures to strengthen infrastructure and create a favourable regulatory environment for civil aviation. Given rising disposable incomes, a growing economy and supportive policy environment, the sector expects further growth.

Air transport in India made a beginning in 1911 when airmail operation commenced over a little distance of 10 km between Allahabad and Naini. But it's real development took place in post-Independence period. The Airport Authority of India is responsible for providing safe, efficient air traffic and aeronautical communication services in the Indian Air Space. The authority manages 125 airports.

Historical Background of civil aviation sector in India

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Performance of Civil Aviation Industry in India: (Data Source: IBEF) Commercial Flights: As of May 2018, there are nearly 558 commercial aircraft in operation in India. Market Size: ● India’s passenger (includes both domestic and international) traffic grew at 16.52 per cent year on year to reach 308.75 million. It grew at a CAGR of 12.72 per cent during FY06-FY18. ● In FY18, domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes

Investment: According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in India’s air transport sector (including air freight) reached US$ 1,658.23 million between April 2000 and June 2018. Regulatory and Legislative Framework Constitutional Provision: Entry 29, List I, VII Schedule read with Art. 246 of the Indian Constitution vests the Parliament of India with the exclusive jurisdiction to legislate in relation to ‘Airports; aircraft and air navigation; provision of aerodromes; regulation and organisation of air traffic and of aerodromes.

National Civil Aviation Policy, 2016 (NCAP, 2016): The policy focuses on creating safe, secure, affordable and sustainable air travel that can be accessed by the masses across India. The key features of the policy are: ● Regional Connectivity Scheme: Under the RCS, the Ministry of Civil Aviation targets an estimate airfare of INR 2,500 per passenger for flights travelling on RCS specified routes for a distance of approximately 500 kms – 600 kms ● Viability Gap Funding: concessions to be provided to the airlines to encourage them to fly on regional routes. The central government will fund 80% of the losses incurred by the airlines and the rest to be covered by states. ● 5/20 Requirement for International Operations: NCAP has allowed all domestic airline operators to fly international routes provided that they deploy 20 aircrafts or 20% of their total capacity (determined in terms of average number of seats on all departures), whichever is higher for domestic operations. ● Ground handling: NCAP 2016 provides that all domestic scheduled operators will be permitted to carry out self- handling at all airports by engaging either their own subsidiary or a third party ground handling service provider like , Aviaxpert, Celebi/NAS etc. ● Airports/PPP: It encourages the development of airports by state governments, AAI, private sector through PPP model. For future airports, tariffs will be calculated on a ‘hybrid till’ basis. Under this model, airport charges will be levied based on an airline’s aeronautical revenue and part of its non-aeronautical revenue

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● Aviation security, Immigration and Customs: ‘Service delivery modules’ will be developed for aviation security, Immigration, Customs in consultation with the concerned ministries ● Maintenance, Repair and Overhaul (MRO): The government to take measures and provide suitable incentives for MRO activities and service providers in order to boost MRO business Legislations:

Regulators

International conventions: Chicago Convention on International Civil Aviation, 1944: ● The Convention requires that Contracting States ensure that their aircrafts do not cross jurisdictions and that one Contracting State’s aviation services do not interfere with another’s.

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● Pursuant to this Convention, India also became one of the founding members of the International Civil Aviation Organization (ICAO) which codifies the principles and techniques set forth in the Chicago Convention. Convention for the Unification of Certain Rules for International Carriage by Air, 1999 (Montreal Convention): It deals with scope of liabilities to be paid to families for death or injury whilst on board an aircraft. The Cape Town Convention on International Interests in Mobile Equipment, 2001 (Cape Town Convention): It standardizes transactions involving movable property. The Protocol to the Cape Town Convention made this applicable to aircraft objects.

Issues and Challenges with Civil Aviation Sector in India: Infrastructure issues: ● The lack of adequate airport infrastructure is one of the most major barriers to the airline industry. A major issue is that aviation infrastructure growth hasn’t kept pace with the growth in air traffic. A major problem relatively small size of the aircraft fleet available for domestic routes or international destinations ● Congestion in the terminals, on the runways and in the air, has been leading to a deteriorating passenger experience and an increasingly inefficient and costly operating environment for the airlines. ● Financial Health: Though India is among the fastest growing aviation markets in the world, its airlines has been gripped in loses. The Centre for Asia Pacific Aviation predicts expects India’s consolidated airline industry to post a loss of $1.65 billion to $1.90 billion in the year-ending March 2019. It had earlier forecasted a loss of $430 million to $460 million. ● Rupee Depreciation: the recent rupee’s depreciation has had negative impact on the airline industry. About 25-30% of airline costs (excluding fuel) are dollar denominated. Example: aircraft lease rents and maintenance costs to ground handling and parking charges abroad. ● Aviation Turbine Fuel (ATF): International prices of ATF, is one of most important factor that affects the cost of air operations. Further, the high state tax levied on the ATF in India makes it one of the most expensive in the world. As compared to the world average of 20-25%, ATF accounts for over 40% of the total cost for the airline companies. ● Competition: The arrivals of LCCs (Low cost carriers) lead to wearing down the market share of the premium airlines. To moderate the decline in market share, the premium airlines were forced to reduce their fares and this in the long run lead to a pricing war amongst the airlines with potentially affecting the financial viability of the carriers ● Security: A 2016 report by a department related to the Parliamentary Standing Committee on Transport, Tourism and Culture raised deep concerns by suggesting that 27 functional airports in the country are protected by forces other than the Central Industrial Security Force (CISF). Explanations given to the committee for non-deployment of CISF at remaining airports were lack of fund. ● Regulation: The aviation sector is generally believed to be over-regulated. There is excessive concentration of power in the DGCA through which the Central government exercises its authority. According to critics, this negatively affects the competitiveness and viability of the aviation industry.

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Few Major Committees and recommendations:

Government initiatives for improving Civil Aviation National Civil Aviation Policy, 2016 For the first time since Independence an Integrated Civil Aviation Policy has been approved in 2016 which aims to establish an integrated ecosystem which will lead to significant growth of civil aviation sector. This in turn would promote tourism, increase employment and lead to a balanced regional growth. The Policy also aims to take flying to the masses by making it affordable and convenient, enhance ease of doing business through deregulation, simplified procedures and e-governance and promote the entire aviation sector chain in a harmonized manner covering cargo, MRO, general aviation, aerospace manufacturing and skill development.

Regional Connectivity Scheme Government has launched Regional Connectivity Scheme (RCS)-UDAN as envisaged in National Civil Aviation Policy (NCAP) 2016 with the twin objectives of promoting balanced regional growth and making flying affordable for masses. The scheme, which would be in operation for a period of 10 years, envisages providing connectivity to un-served and underserved airports of the country through revival of existing air strips and airports. This would be achieved through a financial stimulus in the form of Central and State government

AirSewa AirSewa is an initiative of the Ministry of Civil Aviation launched on 25th Nov., 2016 to offer people a convenient and hassle- free air travel experience. It operates through an interactive web portal (airsewa.gov.in) as well as through a mobile app for both android and iOS platforms. The portal includes a mechanism for grievance redressal, back office operations for grievance handling. AirSewa initiative has integrated various stakeholders in aviation sector with whom an air traveler has to interact during the air travel. These stakeholders are: (i) Airlines (ii) Airports (iii) Security iv) Immigration (v) Customs (vi) BCAS (vii) DGCA (viii) Helicopter/ General Aviation.

FDI Liberalization Government of India has recently raised the FDI limit from 49% to 100% in Scheduled and Non-Scheduled Air Transport Services, FDI in Scheduled Airlines upto 49% permitted under automatic route and FDI beyond 49% through Government approval.

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Open Sky Offer National Civil Aviation Policy, 2016 provides that the Government will enter into an ‘Open Sky’ Air Service Agreement on a reciprocal basis with SAARC countries and countries with territory located entirely beyond a 5000 km radius from New Delhi, India. The Open sky provides unlimited direct operations between India and contracting country.

Legislation on Anti-hijacking The Anti-hijacking Act, 2016 will enable implementation of the provisions of Beijing Protocol, 2010, Supplementary to the Convention for the Suppression of Unlawful Seizure of aircraft, signed at The Hague in 1970 The Act also provides for death penalty in case of death of passengers, crew, security personnel and ground handling staff as a direct consequence of the offence of hijacking.

GAGAN GPS Aided GEO Augmented Navigation (GAGAN) is a step by the Indian Government towards initial Satellite-based Navigation Services in India. It is a system to improve the accuracy of a global navigation satellite system (GNSS) receiver by providing reference signals. The Airports Authority of India (AAI) and Indian Space Research Organization (ISRO) have collaborated to develop the GPS Aided Geo Augmented Navigation (GAGAN) as a regional Satellite Based Augmentation System (SBAS).

High costs of flying through metropolitan airports, traffic rights and high aeronautical charges hinder the development of Indian airports as major hubs and slow down the sector’s growth.

Way Forward: 1. As Indian aviation market continues to surge, focus should be ensuring adequate airport infrastructure capacity. 2. The Air Navigation Services (ANS) unit of the AAI operates communication, navigation, surveillance and traffic management systems for aircraft operating in Indian airspace. With ever increasing busy airspace, it is of paramount importance to ensure that ANS can continues to provide aviation safety. 3. The MRO industry in India holds great potential. It is important to ensure that the industry is regulated properly, and that the required skills are developed to service increasingly sophisticated aircraft 4. More transparent ATF regime should be ensured where oil marketing companies are required to declare costs and methods used to price the end product. 5. Excessive concentration of power in the DGCA should be checked to ensure proper competition and economic viability of the sector.

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ENERGY AND POWER

CHAPTER 1 : ENERGY 1. INTRODUCTION 2. CURRENT ENERGY MIX IN INDIA 3. VARIOUS SOURCES OF ENERGY 3.1. CONVENTIONAL SOURCE ● COAL ○ IMPORTANCE OF COAL IN ENERGY GENERATION ○ COAL MINING ○ PROBLEMS OF COAL MINING ○ ADVANTAGE OF COAL ENERGY ○ DISADVANTAGE OF COAL ENERGY ○ RECENT GOVERNMENT INITIATIVE ● PETROLEUM ○ DISTRIBUTION OF PETROLEUM ○ PRODUCTION OF PETROLEUM ○ IMPORTANCE OF PETROLEUM IN ENERGY MIX ○ CONCERNS OF PETROLEUM SECTOR ○ GOVERNMENT INITIATIVES ■ STRATEGIC OIL RESERVE ■ HYDROCARBON EXPLORATION AND LICENSING POLICY (HELP) ■ FOREIGN DIRECT INVESTMENT INFLOW ■ PRADHAN MANTRI UJJAWALA YOJANA ■ PAHAL ■ LPG PANCHAYAT ■ SAKSHAM ● NATURAL GAS ○ COAL BED METHANE ○ SHALE GAS NON-CONVENTIONAL ENERGY ● TYPES OF NON CONVENTIONAL ENERGY ● DRIVERS FOR GROWTH ● RENEWABLE ENERGY POTENTIAL ● GROWTH OF RENEWABLE ENERGY ● SOLAR ENERGY ● WIND ENERGY ● BIO ENERGY ● TIDAL ENERGY ● GEOTHERMAL ENERGY ● OCEAN THERMAL ENERGY CONVERSION(OTEC)

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ENERGY SECURITY IESS 2047 ENERGY AND CLIMATE CHANGE GREEN ENERGY CORRIDOR ENERGY CONSERVATION

CHAPTER 2: POWER

● CURRENT SCENARIO OF POWER SECTOR ● SEGMENTS OF POWER SECTOR ● GENERATION OF POWER ● THERMAL POWER GROWTH OF THERMAL POWER GENERATION SINCE INDEPENDENCE GROWTH OF INSTALLED CAPACITY OF THERMAL POWER THE ADVANTAGE OF THERMAL POWER PLANT THE DISADVANTAGE OF THERMAL POWER PLANT ● HYDRO POWER GROWTH OF HYDRO-POWER GENERATION SINCE INDEPENDENCE THE ADVANTAGE OF HYDROELECTRIC POWER THE DISADVANTAGE OF HYDROELECTRIC POWER ● NUCLEAR POWER AVAILABILITY OF ATOMIC FUEL GROWTH OF INSTALLED CAPACITY OF NUCLEAR POWER SINCE INDEPENDENCE ADVANTAGE OF NUCLEAR ENERGY DISADVANTAGE OF NUCLEAR ENERGY THREE STAGE NUCLEAR ENERGY PROGRAMME NUCLEAR MISHAPS IN INDIA ● RENEWABLE ENERGY RENEWABLE ENERGY POTENTIAL GROWTH OF RENEWABLE ENERGY GENERATION ● SOLAR POWER ● SMALL HYDRO ● WIND ● BIOENERGY ● GOVERNMENT INITIATIVES IN RES ● PROBLEMS IN POWER GENERATION SEGMENT ● TRANSMISSION SEGMENT ● DISTRIBUTION SEGMENT ● CHALLENGES IN INDIAN POWER SECTOR ● THE POWER DEFICIT ● RECENT GOVERNMENT INITIATIVE IN ELECTRICITY SECTOR

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CHAPTER 1 : ENERGY

1. Introduction ENERGY is an essential input for economic growth and development and improving the quality of life. India’s energy security is primarily about ensuring continuous availability of commercial energy at competitive prices to support its economic growth and meet the lifeline energy needs of households with safe, clean and affordable forms of energy.

2. Current energy mix (Installed capacity as on-17/10/2018)

Energy MW Percent

Total thermal 221802.59 64.34

Hydro 45487.42 13.20

Wind power 34293.48 9.95

Solar power 23022.83 6.68

Bio power 8839.10 2.56

Nuclear 6780.00 1.97

Small hydro power 4493.20 1.30

source: National Power Portal

Figure1 : current energy share

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3. Sources of energy

Energy can be generated from fuel minerals like coal, petroleum, natural gas, uranium and from electricity. Energy resources can be classified as conventional and nonconventional sources.

CONVENTIONAL SOURCE 4. COAL The Ministry of Coal (MoC) has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues.

These key functions are exercised through its public sector undertakings. ● Limited (CIL) ● Neyveli Lignite Corporation Limited (NLC) ● Singareni Collieries Company Limited (SCCL), a joint sector undertaking of Government of and Government of India with equity capital in the ratio of 51:49.

4.1 Importance of coal in energy generation ● India holds the fifth biggest coal reserves in the world. Around 7% of the world’s proven coal reserves are located in India. ● Coal based power generation capacity was 125 GW in 2012 which is likely to go up to more than 330-441 GW by 2040 (192 GW in FY 2017). ● The demand for these plants is likely to be first met by domestic coal, which will require quick exploitation of our reserves. ● The share of ’s commercial primary energy supply was 55% in 2015-16 and is expected to remain high at 48-54% in 2040. ● Imports contributed 25% of the supply in 2015-16, and could remain high unless domestic production grows rapidly.

4.2 Coal mining ● The process of taking out coal from rocks buried under the earth’s surface is called coal mining. Coal that lie at shallow depths at around 200 ft are taken out by removing the surface layer; this is known as open-cast mining.

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● Deep bores, called shafts, have to be made to reach mineral deposits that lie at great depths at around 100-200 meters. This is called shaft mining.

4.3 Problems of coal mining Coal mining industry is facing a lot of problems. Some are as follows

Illegal mining: National Green Tribunal denotified the rathole mining in but still is being done illegally. Recently in the east jaintia hills 20 labour stuck in the mining. Director General of MInes Safety has also declared it as illegal mine

Rat-hole mining: The method of rat-hole mining involves digging pits ranging from five to 100 m2 into the ground to reach the coal seam. Thereafter, are made into the seam sideways to extract he coal. Coal seams are reached by excavating the side edge of the hill slopes and then coal is extracted through a horizontal tunnel. The coal from the tunnel or pit is taken out and dumped on nearby un-mined area, from where it is carried to the larger dumping places near highways for its trade and transportation.

Safety issue: Hundreds of miners have lost their lives in the mines due to many reasons some are mentioned below: ● Some types of mining like rat hole mining are banned as they are hazardous and inhumane but they are still practiced in isolated pockets. ● Lack of strictly following mining codes developed by Directorate General of Mines safety ● Ad Hoc and unplanned mining ● Leakage of poisonous gas like Hydrogen sulphide, methane and natural gas in the rathole mines ● Land sliding due to overload on the side walls. ● Leakage of water in rat hole mines. ● Technical Illiteracy of labours. ● Difficulties due to rain in mines

Following are the major incidents of mining disaster: ● 1958 chinakuri coal mining fire ● 1965 accidental fire in coal mine 268 miner were killed dhori colliery disaster ● 1975 chasnala coal mine in dhanbad due to water logged in the mines and 372 miner died ● Bihar kenda coal mine accident due to carbon monoxide explosion in 1992 ● In December 2017, 15 workers were trapped in rat-hole mining in Meghalaya.

Other Problems in Coal Sector ● The distribution of coal is uneven. Most of the north plains and western parts of india are devoid of coal. This involves high transport cost. ● Indian coal has high ash content and low calorific value. The ash content varies from 20 to 30 per cent and sometimes exceeds even 40 per cent. This reduces the energy output of coal and complicates the problem of ash disposal. ● A large percentage of coal is taken out from underground mines where the productivity of labour and machinery is very low. The underground mines employ 80% of manpower, but contributes only 30% of total output. ● There are heavy losses due to fire in the mines and at pit heads. Pilferage at several stages also adds to looses. This leads to hike in price of coal. ● Mining and utilisation of coal leads to serious problem of environment pollution. The open cast mining revages the

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whole area converting it into a rugged and ravinuous land. ● Heart disease and cancer in mine labourers due to dust and gas leakage in mines ● Environmental concerns of coal are rising due to its high carbon emission and climate change.

There are many advantages and disadvantages of using coal energy to produce electricity. Its advantages and disadvantages are the following:

Advantages of coal energy ● Coal energy is an affordable energy source because of the coal’s stable price compared to other fuel sources ● Coal is easy to burn ● Coal produces high energy upon combustion ● Coal energy is inexpensive ● Coal is abundant ● Coal energy is a reliable energy source

Disadvantages of using coal energy ● Coal energy produces large amount of carbon dioxide which leads to global warming and climate change ● The burning of coal is not environmental friendly because it produces harmful byproducts and gas emissions such as sulfur dioxide, nitrogen oxide that causes pollution to the environment including acid rain ● Coal energy is nonrenewable energy source ● Coal is fast depleting because we consume too much of it ● Coal mining ruins the environment and puts the lives of people specially the coal miners in danger. ● India is 3rd largest contributor to GHG emission. Since coal contributes to more than half of the energy need of our GDP, there is global pressure on India for reducing its carbon footprint.

4.5 Government initiatives The pursuit of raising overall coal production will require an integrated strategy including for licensing commercial mining, appropriate pricing and attractive returns over investment. For this government has taken the following initiatives:

4.5.1 Shakti scheme for coal allocation ● Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI)is a new policy for allocation of future coal linkages in a transparent manner for power sector. ● The policy was an important initiative in alleviating one key challenge in power sector, viz. lack of coal linkage and is expected to positively contribute in resolution of a number of stressed assets. ● As a part of this policy, CIL/SCCL is to grant coal linkages on notified price on auction basis for Independent Power Producers (IPPs) having already concluded domestic coal based Power Purchase Agreement (PPAs), with the bidding parameter being levellised discount on existing tariff that the IPP is willing to provide. ● This was expected to result in a win-win situation of IPPs having a long term supply security of coal from a source of their choice while consumers will benefit from a lower tariff.

4.5.2 Coal mitra web portal The Coal Mitra Web Portal has been designed to bring about flexibility in Utilization of Domestic Coal by transferring the

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reserves to more cost efficient State/Centre owned or Private sector generating stations, leading to lower generation costs and ultimately lesser cost of electricity for the consumers.

The web portal would be used by the State/Central Gencos to display information about normative fixed and variable charges of electricity for the previous month as well as margin available for additional generation so as to enable the utilities identify stations for transfer of coal. It would host data on Operational and Financial parameters of each coal based station; Quantity and source of supply coal to the power plant; and Distance of Power plant form the Coal mine.

5. Petroleum Petroleum or mineral oil is the next major energy source in India after coal. It provides fuel for heat and lighting, lubricants for machinery and raw materials for a number of manufacturing industries. Petroleum refineries act as a “nodal industry” for synthetic textile, fertiliser and numerous chemical industries.

5.1 Distribution of petroleum ● Most of the petroleum occurrences in India are associated with anticlines and fault traps in the rock formations of the tertiary age. ● In regions of folding, anticlines or domes, it occurs where oil is trapped in the crest of the upfold. The oil bearing layer is a porous limestone or sandstone through which oil may flow. ● The oil is prevented from rising or sinking by intervening non-porous layers. ● Petroleum is also found in fault traps between porous and non-porous rocks. Gas, being lighter usually occurs above the oil.

5.2 Production of petroleum ● About 63 per cent of India’s petroleum production is from Mumbai High ● 18 per cent from Gujarat and 16 per cent from Assam.

5.3 IMPORTANCE OF PETROLEUM IN INDIA ● Petroleum is important because it is the next major energy source in India after coal. It provides fuel for heating and lighting, lubricants for machinery and raw materials for a number of manufacturing industries ● The petroleum industry in India is particularly favorable for foreign investment because the industry is one of the fastest growing segments, and it has shown a staggering growth rate of around 13% in the recent past. ● The foreign trade in petroleum and petroleum products in the recent past have registered significant growth. It has thus attracted new foreign investments. ● Some of the main petroleum products that are manufactured for trade with foreign countries are petroleum gases, gas oil, propane, distilled crude oil, naphtha, ethane, and kerosene. ● The petroleum industry has contributed heavily to the manufacturing industry in the country through foreign trade in petroleum products. ● Another very important reason why the Indian petroleum industry is important is that the future of the petroleum industry in India promises great potential for development. ● The fast economic growth of India and the various developmental activities taking place presents India with opportunities in the future to be a dominant player globally in the export of petroleum products.

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5.5 Concerns of Petroleum sector 1. Shortage of Petroleum Crude 2. Dependence on Foreign Countries 3. Price Hike 4. Shortage of Oil Refining Capacity 5. Exploration of New Reserves 6. Technical Problems 7. Pollution 8. Lack of Market-determined Pricing System.

Possible steps to address the concerns of the sector are as given below (Economic Survey (2015–16): ● Petroleum products and natural gas should be included under the Goods and Services Tax (GST), or at least its exclusion should not be indicated in the Constitution Amendment Bill.

● The cess collections could be used to support construction of a network of gas pipelines, which is of crucial importance for providing clean energy to deprived regions of the country. The progress is somewhat constrained at present by having been linked to revival of fertilizer units and development of small industries in areas along the gas highway projects. ● Alternatively, in order to promote the gas pipeline network, Viability Gap Funding (VGF) may be provided for promoting pipeline assets creation and development of efficient markets.

● Impetus is required for construction of not only cross-country pipelines but also city gas distribution. ● The present system of bidding by the Petroleum and Natural Gas Regulatory Board (PNGRB) is lopsided and long- drawn-out and needs to be reformed since it has constrained development of the gas network. ● Expansion of the PNG/CNG (Compressed Natural Gas) network could help provide gas connections to rural areas. Rationalization of LPG subsidy is essential. ● It may be useful to cap subsidy to 10 LPG cylinders for each household (that being the maximum used for usual domestic cooking) while aligning taxes and duties on domestic and commercial LPG users. ● Import of liquefied Natural Gas (LNG) for use in the power industry is exempt from customs duty while LNG for all other uses attracts 5 percent customs duties. There should be no exemptions for any sector. ● In order to develop a cost-effective and revenue-neutral mechanism for swapping of gas across producing and consuming states for the national gas grid, it is important to make special tax provision for sale of natural gas under the Central Sales Tax Act 1956. ● Natural gas and LNG may be treated as declared goods to bring about tax parity with crude oil and make prices uniform across states.

5.6 Government initiatives To ensure the energy security and easy and affordable availability of petroleum government has taken various steps. Some are mentioned as below:

5.6.1 Strategic oil reserve ● The Government, through Indian Strategic Petroleum Reserve Limited (ISPRL) is setting up strategic crude oil reserves with storage capacity of 5.33 Million Metric Tonnes (MMT) at three locations viz. Visakhapatnam, Mangalore and

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Padur. ● Additional 6.5 Million Metric Tonne (MMT) Strategic Petroleum Reserve (SPR) facilities at two locations, i.e. Chandikhol in and Padur in ,has been approved. ● Also, Detailed Project Reports have been prepared for establishing additional crude oil reserves of 12.5 MMT at Rajkot and Bikaner.

5.6.2 Hydrocarbon Exploration and Licensing Policy (HELP). Four main facets of this policy are: ● Uniform license for exploration and production of all forms of hydrocarbon ● an open acreage policy ● easy to administer revenue sharing model and ● marketing and pricing freedom for the crude oil and natural gas produced. Explanation: ● The decision will enhance domestic oil & gas production, bring substantial investment in the sector and generate sizable employment. The policy is also aimed at enhancing transparency and reducing administrative discretion. ● The uniform licence will enable the contractor to explore conventional as well as unconventional oil and gas resources including CBM, shale gas/oil, tight gas and gas hydrates under a single license. The concept of Open Acreage Policy will enable E&P companies choose the blocks from the designated area. ● Present fiscal system of production sharing based on Investment Multiple and cost recovery /production linked payment will be replaced by a easy to administer revenue sharing model. ● This is in tune with Government’s policy of “Ease of Doing Business”.

5.6.3 Foreign Direct Investment Inflow In order to attract Foreign Direct Investment (FDI) in the sector, the FDI policy has been further liberalized. FDI for petroleum refining by CPSEs has been allowed with 49 per cent foreign equity under the automatic route. It may be observed that inflow of FDI in petroleum and natural gas has varied considerably over the

5.6.4 Pradhan Mantri Ujjawala Yojana ● This Scheme aims to provide free LPG connections to Women from BPL Households by providing financial support of Rs 1600 for each new LPG connection. ● The identification of eligible BPL families will be made in consultation with the State Governments and the Union Territories based on the socio-economic and caste census data. ● Providing LPG connections to BPL households will ensure universal coverage of cooking gas in the country which will empower women and protect their health. ● It aims to address serious health hazards associated with cooking based on fossil fuels. Non-communicable diseases such as heart disease, stroke, chronic obstructive pulmonary disease and lung cancer and Indoor air pollution causing acute respiratory illnesses in young children is addressed through this scheme. ● It will also provide employment for rural youth in the supply chain of cooking gas.

5.6.5 PAHAL

● for LPG consumer (DBTL) scheme called, ‘PAHAL’ aims to reduce leakage of subsidy, reduce

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intermediaries and eliminate duplicate LPG connections by introducing direct cash transfer of subsidies. ● LPG consumers, who join the scheme, will get the LPG cylinders at market price and receive the subsidy directly into their bank accounts. ● The scheme required the consumer to mandatorily have a bank account linked with number for availing LPG Subsidy. ● If they do not possess Aadhaar number, they will have to link their bank account directly with their 17 digit LPG ID.

5.6.6 LPG PANCHAYAT ● Union Petroleum Ministry has launched LPG Panchayat, aimed at encouraging rural communities to turn to clean fuel. ● The first LPG Panchayat was held in Gandhinagar, which brings LPG users of a village and officials of fuel companies together. ● It created an interactive platform to discuss safe and sustainable usage of LPG, its benefits and linkages between using clean fuel and empowering women.

5.6.7 SAKSHAM ● Saksham is a month long awareness programme by the Ministry of Petroleum and Natural Gas. ● It is aimed to create awareness towards judicious utilization and conservation of petroleum products and switching to cleaner fuels. ● It is organized by PCRA-Petroleum Conservation Research Association and other oil & gas PSU‘s under the aegis of Ministry of Petroleum and Natural Gas.

6. Natural Gas Natural gas is an important clean energy resource found in association with or without petroleum. It is used as a source of energy as well as an industrial raw material in the petrochemical industry.

Natural gas is considered an environment friendly fuel because of low carbon dioxide emissions and is, therefore, the fuel for the present century. ● Large reserves of natural gas have been discovered in the Krishna-Godavari basin. ● Along the west coast the reserves of the Mumbai High and allied fields are supplemented by finds in the Gulf of Cambay. ● Andaman and Nicobar islands are also important areas having large reserves of natural gas. ● The 1700 km long Hazira-Vijaipur-Jagdishpur cross country gas pipeline links Mumbai High and Bassein with the fertilizer, power and industrial complexes in western and northern India. This artery has provided an impetus to India’s gas production.

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● The power and fertilizer industries are the key users of natural gas. Use of Compressed Natural Gas (CNG) for vehicles to replace liquid fuels is gaining wide popularity in the country.

Coal Bed Methane ● Coal Bed Methane (CBM) is natural gas found in Coal Seams. It mainly consists of Methane (CH4) with minor amounts of nitrogen, carbon dioxide and heavier hydrocarbons like ethane. ● CBM was wasted and vented out into the atmosphere during the initial years of mining resulting in greenhouse emissions. ● Now it is considered as an alternative source for augmenting India’s energy resource. ● India has the fifth largest proven coal reserves in the world and thus holds significant prospects for exploration and exploitation of CBM. ● The estimated CBM resources are about 92 TCF (trillion cubic feet) of which only 9.9 TCF has so far been confirmed – current production is about 1 million cubic metre per day. ● The Gondwana sediments of eastern India host the bulk of India’s coal reserves and all the current CBM producing blocks. ● The vast majority of the best prospective areas for CBM development are in eastern India, situated in Damodar Koel valley and Son valley. ● CBM projects exist in South, Raniganj East and Raniganj North areas in the Raniganj coalfield, the Parbatpur block in Jharia coalfield and the East and west Bokaro coalfields. ● Son valley includes the Sonhat North and Sohagpur East and West blocks. ● Currently, commercial production has commenced from Raniganj South CBM block operated by M/s. GEECL since July 2007. Shale Gas ● Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas. ● Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale gas that were previously uneconomical to produce. ● Major regions of availability are Gujarat, , central India, KG Basin and offshore areas in . ● Presently, the assessment process is going on in 50 blocks. Commercial production is yet to begin.

NON-CONVENTIONAL ENERGY The increasing use of fossil fuels is leading to its shortage. It is estimated that if the present rate of consumption continues, the reserves of these fuel will get exhausted. Moreover, their use also causes environmental pollution. Therefore, there is need for using non-conventional sources such as solar energy, wind energy, tidal energy which are renewable. Over the years, renewable energy sector in the country has emerged as a significant player in the grid connected power generation capacity. It supports the government agenda of sustainable growth, while, emerging as an integral part of the solution to meet the nation’s energy needs and an essential player for energy access. TYPES OF NON CONVENTIONAL ENERGY

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Figure: Types of Non-Conventional Energy

Drivers for Development of Renewable Energy ● Environmental Concern: At present around 60 per cent of India’s power generation capacity is based on coal. Coal is biggest contributor to GHG emission. ● Economic Reasons: In addition, there is an increasing dependence on imported oil, which is leading to imports of around 33 per cent of India’s total energy needs. ● Growing Energy Demand: Despite increase in installed capacity by more than 113 times in 65 years, India is still not in a position to meet its peak electricity demand as well as energy requirement. ● India faces a challenge to ensure availability of reliable and modern forms of energy for all its citizens. Almost 85 percent of rural households depend on solid fuel for their cooking needs and only 55 per cent of all rural households have access to electricity. ● Availability and Access: However, even with this low access, most rural households face issues with quality and consistency of energy supply. ● Lack of rural lighting is leading to large-scale use of kerosene. This usage needs to be reduced, as it leads to increased subsidies and import dependence, and consequent pressure on foreign exchange reserves. ● India’s INDC: The target from various renewable energy sources has been increased by the GoI to 175 GW by the year 2022 – solar and wind to contribute 100 GW and 60 GW, respectively 10 GW from bio-power and 5 GW from small hydro-power. ● India has taken a voluntary commitment of reducing emission intensity of its GDP by 33-35 per cent from 2005 levels

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by 2030. ● In the recently concluded 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) held at Paris, France, India committed to achieve about 40 per cent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost international finance including from Green Climate Fund (GCF).

Renewable Energy Potential India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources viz. ● Solar power- 750 GW, ● Wind - 102 GW (at 80 metre mast height); ● Small hydro - 20 GW; ● Bioenergy - 25 GW;

● Government has taken up a new initiative in 2014 for implementation of wind resource assessment in uncovered / new areas with an aim to assess the realistic potential at 100 m level in 500 new stations across the country under the National Clean Energy Fund (NCEF). ● National Institute of Wind Energy has used advanced modelling techniques and revised the estimate the wind power potential at 100 metre at 302 GW.

SOLAR ENERGY India is a tropical country. It has enormous possibilities of tapping solar energy. Photovoltaic technology converts sunlight directly into electricity. Solar energy is fast becoming popular in rural and remote areas.

Some big solar power plants are being established in different parts of India which will minimise the dependence of rural households on firewood and dung cakes, which in turn will contribute to environmental conservation and adequate supply of manure in agriculture.

The capacity target of 100 GW set under the will principally comprise of 40 GW Rooftop and 60 GW through Large and Medium Scale Grid Connected Solar Power Projects.

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The major steps taken by the government to boost the sector in recent times are as given below:

National Solar Mission: 26 SPV projects of aggregate 330 MW capacity have been commissioned.

Solar Rooftop: Grid-connected rooftops systems to come up by 2019-20 under the National Solar Mission (NSM).

Solar Parks: 25 solar parks and ultra mega solar power projects with an aggregate capacity of 20,000 MW to be set up in the next five years (from 2015-16 to 2019-20). The world’s largest solar park, Shakti Sthala, has a capacity of 2,000 MW and has set up at an investment of Rs 16,500 crore at Pavagada in Karnataka Tumakuru district.

Solar Pumps: Target of installing of one lakh solar pumps for irrigation and drinking water by 2016.

Solar Cities: Approval granted for 56 solar city projects under the Development of Solar Cities Programme.

The Surya Mitra: This scheme was launched in May 2015 for creating 50,000 trained personnel within a period of five years (2015-16 to 2019-20).

Mobile App – ARUN – Atal Rooftop solar User Navigator: It will enable residential and non – residential consumers to understand the basics, state specific framework & knowhow of the Rooftop Solar implementation.

In addition to the above, major policy initiatives taken by the government up to March 2016 include:

Scheme for Setting up over 2,000 MW of Grid-Connected Solar PV Power Projects with Viability Gap Funding (VGF) Under Batch-III of Phase II of the NSM.

Conversion of Solar Energy Corporation of India (SECI) From Section 8 Company to Section 3 Company under The Companies Act, 2013 (No. 18 Of 2013) and to Rename it as Renewable Energy Corporation of India (RECI).

(i) National Offshore Wind Energy Policy 2015 to exploit the vast 7600 km coastline for development of offshore wind energy in the Indian Exclusive Economic Zone (EEZ), (ii) Inclusion of renewable energy in the priority sector and bank loans up to Rs. 15 crore limit to borrowers categories for purposes like solar-based power generators, biomass-based power generators, windmills, micro-hydel plants and for nonconventional energy-based public utilities like lighting systems, and remote village electrification. For individual households this is up to Rs. 10 lakh per borrower. (iii) Investments in renewable energy are on automatic route, i.e. automatic approval for up to 74 per cent foreign equity participation in a JV and 100 per cent foreign investment as equity is permissible with the approval of the Foreign Investment Promotion Board (FIPB). (iv) Approval to the amendments in the National Tariff Policy 2005, for promotion of renewable power.

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International Solar Alliance (ISA) The International Solar Alliance (ISA) is an alliance of more than 121 countries initiated by India, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn.

Vision and mission of the International Solar Alliance is to provide a dedicated platform for cooperation among solar resource rich countries where the global community, including bilateral and multilateral organizations, corporates, industry, and other stakeholders, can make a positive contribution to assist and help achieve the common goals of increasing the use of solar energy in meeting energy needs of prospective ISA member countries in a safe, convenient, affordable, equitable and sustainable manner.

ISA Programmes:

Program 1: Scaling Solar This Programme is expected to serve the farming communities in the ISA member Applications for Agricultural Use countries on several fronts including storage of agro-produce, space and water heating, crop drying, creation of livelihood opportunities in rural areas

Program 2 : Affordable Finance at Objective is to reduce the cost of finance for solar projects and mobilize more Scale than one trillion USD of investment in photovoltaic assets in solar rich countries by 2030, and sooner if possible.

Program 3 : Scaling Solar Mini Grids The solar mini grid project entails mini grid systems that foresee renewable energy- based power generation with capacity of 10 Kw and above, supplied directly to households, among others.

Program 4 : Scaling Rooftop Solar To promote, assess potential, harmonize demand and pool resources for rapid deployment of and scaling up Rooftop Solar (Off-Grid and Grid-Connected).

Program 5 : Scaling Solar E-Mobility Its objective is to promote, assess potential, and harmonize demand and poor resources & Storage to enable the rapid deployment of, and scaling up, solar electric mobility and associated storage infrastructure in rural and urban areas.

WIND ENERGY India has great potential of wind power. The largest wind farm cluster is located in Tamil Nadu from Nagarcoil to Madurai. Apart from these, Andhra Pradesh, Karnataka, Gujarat, Kerala, Maharashtra and have important wind farms. Nagarcoil and Jaisalmer are well known for effective use of wind energy in the country.

India is the fourth largest wind power producer in the world, after China, USA and Germany. Ministry’s wind power programme covers wind resources assessment, projects through fiscal and promotional policies. A total capacity of 32848.46 MW has been established up to December, 2017.

The Wind Resource Assessment (WRA) Programme being coordinated by the National Institute of Wind Energy (NIWE), Chennai

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Policy initiatives: Development of Offshore Wind Energy: In October 2015, National Wind Energy Policy was notified. Initial studies indicate offshore wind energy potential in the coasts of Gujarat and Tamil Nadu. Lidar technology is being used in wind measurement device.

Draft Wind-Solar Hybrid Policy: The goal of the policy is to reach wind-solar hybrid capacity of 10 GW by 2022 and it aims to encourage new technologies, method and way- outs involving combined operation of wind and solar PV plants. Government has issued Guidelines under Section 63 of the Electricity Act, 2003 providing a framework for procurement of wind power through a transparent process of bidding including standardisation of the process and defining of roles and responsibilities of various stakeholders.

Bio Energy Biomass energy or Bio Energy is the utilization of organic matter present and can be utilized for various applications. Shrubs, farm waste, animal and human waste are used to produce biogas for domestic consumption in rural areas. Decomposition of organic matter yields gas, which has higher thermal efficiency in comparison to kerosene, dung cake and charcoal.

TYPES OF BIOENERGY There are many other forms of biofuels and bioenergy such as biomass, biogas, syngas, natural gas, algae biofuels, biofuel gasoline, solid biofuels etc. ● First generation biofuels are produced from sugar and vegetable oil. ● Algae biofuels are most advanced form of biofuels that produced from algae as its source of energy-rich oils. It has a vast influence on Genetic engineering. ● Solid biofuels like biochar can be produced by pyrolysis of biomass. ● Syngas is a mixture consisting primarily of H2, CO and a little quantity of CO2.

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INDIA’S POTENTIAL India has a potential of about 18 GW of energy from Biomass. Currently, about 32% of total primary energy used in India is derived from Biomass. More than 70% of the country’s population depends upon biomass for its energy needs. India has ~5+ GW capacity biomass powered plants

Ministry of New and Renewable Energy (MNRE) has set the national target is to achieve 10 GW of installed biomass power by 2022 The leading states for biomass power projects are Maharashtra, Uttar Pradesh and Karnataka each one having more than 1 GW of Grid interacted biomass power. Other states with favorable policy and opportunities in Biomass are Punjab and Bihar.

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Benefits of Bio Energy National Biofuel Policy in 2009 specifies the various benefits from the use of biofuels. These include ● Reduction of import dependency, ● Promoting cleaner environment, ● Ensuring health benefits, ● Waste management benefits, ● Raising of infrastructure in rural areas besides providing additional income to the farmers.

Major Barriers and Challenges Unlike solar and wind, biomass is relatively a much reliable source of renewable energy free of fluctuation and does not need storage as is the case with solar. But it is not the preferred renewable energy source till now, mainly due to the challenges involved in ensuring reliable biomass supply chain.

Some of the major barriers faced in faster realization of available biomass power potential for a variety of end use applications are ● Inadequate information on biomass availability, ● Absence of organized formal biomass markets, ● Problems associated with management of biomass collection, transportation, processing and storage; Problems associated

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with setting up large size biomass plants, ● Non-availability of cost effective sub megawatt systems for conversion of biomass to energy in a decentralized manner, and ● Lack of capability to generate bankable projects on account of financial and liquidity problems, etc.

The major challenge in ensuring sustained biomass supply at reasonable prices are: ● Increasing competing usage of biomass resources, leading to higher opportunity costs; ● Unorganized nature of biomass market, which is characterized by lack of mechanization in agriculture sector, defragmented land holdings, and vast number of small or marginal farmers. ● Biomass from agriculture is available only for a short period after its harvesting, which can stretch only for 2-3 months in a year. ● Another major challenge is the cost of biomass storage and transportation to power plants, which is consistently rising rapidly with time. So there is a need to have robust institutional and market mechanism for efficient procurement of the required quantity of biomass, within this stipulated short time, and safe storage till it is finally used.

GOVERNMENT INITIATIVES Ministry of new and renewable energy is promoting “Biomass and Bagasse Cogeneration Programme” with the aim to recover energy from bagasse, agricultural residue and wood from dedicated energy plantation for power generation.

The Government has unveiled a new National Biofuel Policy (2018) that incentivises biofuel generation through multiple measures. Main features of the Policy

Categorisation of Biofuels: Biofuels will be categorised into: ● First Generation (1G) bioethanol and biodiesel and ‘Advanced Biofuels’ ● Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, ● Third Generation (3G) biofuels, bio-CNG etc. for providing appropriate financial and fiscal incentives under each category. Expansion of the scope of raw materials for ethanol production: The Policy expands the type of bio-raw materials for ethanol production by including Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes etc. which are unusable for human consumption. Surplus food grains can be used for ethanol production: During excess production, crop prices fall. Here, the Policy allows use of surplus food grains for production of ethanol with the approval of National Biofuel Coordination Committee. Viability Gap Funding: For the generation of Advanced Biofuels, the Policy proposes a viability gap funding scheme for 2G ethanol Bio refineries with Rs.5000 crore in 6 years. In addition to this, additional tax incentives, higher purchase price as compared to 1G biofuels will be given for 2G ethanol generation. Supply chain for biodiesel production: The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops etc.

Tidal Energy Oceanic tides can be used to generate electricity. Floodgate dams are built across inlets. During high tide water flows into the inlet and gets trapped when the gate is closed. After the tide falls outside the flood gate, the water retained by the floodgate flows back

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to the sea via a pipe that carries it through a power-generating turbine. In India the Gulf of Khambhat, the Gulf of Kuchchh in Gujarat on the western coast and Gangetic delta in Sunderban regions of West Bengal provide ideal conditions for utilising tidal energy.

Geo Thermal Energy Geo thermal energy refers to the heat and electricity produced by using the heat from the interior of the Earth. Geothermal energy exists because, the Earth grows progressively hotter with increasing depth. Where the geothermal gradient is high, high temperatures are found at shallow depths. Groundwater in such areas absorbs heat from the rocks and becomes hot. It is so hot that when it rises to the earth’s surface, it turns into steam. This steam is used to drive turbines and generate electricity. There are several hundred hot springs in India, which could be used to generate electricity. Two experimental projects have been set up in India to harness geothermal energy. One is located in the Parvati valley near Manikarn in Himachal Pradesh and the other is located in the Puga Valley, Ladakh.

Ocean thermal energy conversion Ocean thermal energy conversion (OTEC) is a process or technology for producing energy by harnessing the temperature differences (thermal gradients) between ocean surface waters and deep ocean waters.

OTEC makes use of the difference in temperatures of warm surface water (22–27 °C) and very cold water at a depth of 1 km (4–7 °C). an open- cycle plant based on creating a rising mixture of water and steam bubbles or “foam”, which is separated at a height above sea-level, such that the water can be used to drive a turbine rotor.

In closed-cycle OTEC, warm seawater heats a working fluid with a low boiling point, such as ammonia, and the ammonia vapor turns a turbine, which drives a generator.

With the vision of developing 'blue economy' to complement India's economic trajectory energy security is getting onto the drawing board, with the development of an indigenous technology to tap ocean energy.

India's maiden Ocean Thermal Energy Conversion (OTEC) project is coming up in Kavaratti, capital of the Lakshadweep archipelago, off the south-western coast after almost three and a half decades of initial plans.

Energy Security Efficient, reliable and affordable energy is essential for the sustainable development and inclusive growth of the overall economy. Due to rapid economic expansion, India has become world’s fastest growing energy market. India surpassed Russia to become the 3rd largest energy consumer in the world after China and USA during 2015. Oil and gas accounted for around 35 per cent share in India’s energy consumption. In fact, India surpassed Japan to become 3rd largest oil consumer in the world after US and China during 2015. India’s energy security is primarily about ensuring continuous availability of commercial energy at competitive prices to support

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its economic growth and meet the lifeline energy needs of households with safe, clean and affordable forms of energy. Keeping in view the vast and ever increasing energy requirements of the economy, several initiatives have been taken for increasing production and exploitation of all domestic petroleum resources.

IESS 2047 NITI Aayog launched the second version of the India Energy Security Scenarios 2047 calculator (IESS 2047), an open source web based tool. The tool aims to explore a range of potential future energy scenarios for India, for diverse energy demand and supply sectors leading up to 2047. It explores India’s possible energy scenarios across energy supply sectors such as solar, wind, bio fuels, oil, gas, coal and nuclear and energy demand sectors such as transport, industry, agriculture, cooking and lighting appliances. The model allows users to interactively make energy choices, and explore a range of outcomes for the country-from carbon dioxide emissions and import dependence to land use.

ENERGY AND CLIMATE CHANGE International Renewable Energy Agency (IRENA) – looks at how the transition to renewables could help limit global warming. As the report points out, renewable energy is at the core of any strategy for countries to meet climate goals while supporting economic growth, employment and domestic value creation. Doubling the share of renewables by 2030 could deliver around half of the emissions reductions needed and, in combination with energy efficiency, keep the rise in average global temperatures within 2 degrees Celsius, the widely recognised target to prevent catastrophic climate change. The share of renewables needs to grow not only in power generation but also in transport, heating and cooling. To avoid a lock-in with unsustainable energy systems, investments must grow immediately and must almost double to USD 500 billion annually between now and 2020, IRENA’s analysis shows. Five clear actions are needed to support the renewable energy transition:

● Strengthening the policy commitment to renewable energy; ● Mobilising investment in renewable energy; ● Building institutional, technical and human capacity; ● Harnessing the cross-cutting impact of renewables on sustainable development; ● Enhancing regional engagement and international cooperation. Green Energy Corridor Intra-State Transmission System is being implemented by eight renewable rich States (Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh and Madhya Pradesh) with total project cost of Rs. 10141 crores

Energy Conservation Energy is a basic requirement for economic development. Every sector of the national economy – agriculture, industry, transport, commercial and domestic – needs inputs of energy. The economic development plans implemented since Independence necessarily required increasing amounts of energy to remain operational. As a result, consumption of energy in all forms has been steadily rising all over the country.In this background, there is an urgent need to develop a sustainable path of energy development.

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Promotion of energy conservation and increased use of renewable energy sources are the twin planks of sustainable energy. India is presently one of the least energy efficient countries in the world. We have to adopt a cautious approach for the judicious use of our limited energy resources. For example, as concerned citizens we can do ourbit by using public transport systems instead of individual vehicles; switching off electricity when not in use, using power-saving devices and using non-conventional sources of energy. After all, “energy saved is energy produced”

The earth provides enough to satisfy every man’s needs but not every man’s greed said Gandhiji. Hard facts on why energy conservation is a must are outlined below. ● We use energy faster than it can be produced - Coal, oil and natural gas - the most utilised sources take thousands of years for formation. ● Energy resources are limited - India has approximately 1% of world’s energy resources but it has 16% of world population. ● Most of the energy sources we use cannot be reused and renewed - Non renewable energy sources constitute 80% of the fuel use. It is said that our energy resources may last only for another 40 years or so. ● We save the country a lot of money when we save energy - About 75 percent of our crude oil needs are met from imports which would cost about Rs.1, 50,000 crore a year ● We save our money when we save energy - Imagine your savings if your LPG cylinder comes for an extra week or there is a cut in your electricity bills ● We save our energy when we save energy - When we use fuel wood efficiently, our fuel wood requirements are lower and so is our drudgery for its collection ● Energy saved is energy generated - When we save one unit of energy, it is equivalent to 2 units of energy produced ● Save energy to reduce pollution - Energy production and use account to large proportion of air pollution and more than 83 percent of greenhouse gas emissions “Nature is inexhaustibly sustainable if we care for it. It is our universal responsibility to pass a healthy earth on to future generations.”

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CHAPTER 2: POWER

The electric power, which is one form of energy, is one of the most critical components of infrastructure which play an important role in economic growth and welfare of nations. The existence and development of adequate infrastructure are essential for sustained growth of the Indian economy.

The Sources of power generation range from conventional sources such as lignite, coal, oil, hydro, natural gas, and nuclear power to viable non-conventional sources such as solar, wind, and domestic and agricultural waste.

The power generated is used for the commercial and non-commercial uses. The commercial use of power refers to the use of electric power in the industry, agriculture, and transport. Non-commercial use includes electric power required for domestic lighting and cooking.

With the increase in the population of India, the demand for power consumption is increasing day by day.

Current scenario of Power Sector Here the whole idea of presenting the statics is that to have the formal outlook about the demand and supply of power in India. Some of the statics are given below: ● The All-India installed power generation capacity has increased substantially over the years and reached 330860.6 MW as on November 2017. According to the economic survey 2017-18. ● The peak deficit i.e. the percentage shortfall in peak power supply vis-à-vis peak hour demand has declined from around 9 percent in 2012-13 to 1.6 percent during 2016-17, although slightly higher at 2 percent during April-September 2017- 18. ● In May 2018, India ranked 4th in the Asia Pacific region out of 25 nations on an index that measures their overall power.

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SEGMENTS OF POWER SECTOR Overall power sector constitutes three segments : Generation; Transmission; and Distribution.

Generation of power There are four main sources of power generation in India: Thermal, Hydro, Nuclear and Renewable.

Thermal Power Thermal power which is generated by coal and oil has always been the major source of electric power in India. In absolute terms installed capacity of thermal power has increased from 1150 MW in 1950-51 to 2,21,768 MW in 2017-18.

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The share of thermal had declined from 67% to 64.1%during this period. The bulk of the thermal power is derived from coal and only small fractions come from oil. Both coal and oil are non-renewable and exhaustible resources. The location of power generation plants is located near coal mines and washeries.

Growth of thermal power Generation since Independence

Growth of Installed capacity of thermal power:

The advantage of Thermal Power Plant: ● The construction cost is comparatively cheaper as compared to Hydropower. ● Thermal power projects generally develop in plain regions, thus the scope of expansion is unlimited. ● Unlike hydel projects, where geographical location is very important, thermal plants can be located in suitable areas where minimum environmental damage may occur. ● The displacement of people is minimum, as compared to hydropower. ● Transmission loss is minimum, as it is located near the load center.

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The disadvantage of Thermal Power Plant: ● The raw materials that are used to produce thermal power are an exhaustible resource. ● It emits toxic pollutants like ash, carbon dioxide, and sulfur dioxide.

Hydroelectric power Hydropower is a renewable energy resource because it uses the Earth's water cycle to generate electricity. Hydroelectric power, electricity produced from generators driven by turbines that convert the potential energy of falling or fast-flowing water into mechanical energy. In 1950-51 installed capacity of hydropower was 560 MW but by 2018 it is 45,487 MW. Out of total power generated hydroelectric power share 13.1%.

Growth of Hydro-power Generation since Independence

The advantage of Hydroelectric power: The hydroelectric power has several advantages, some of the advantages are as follows: ● It is the most economical source of power and the Operational cost is low, hence the cost of power generation per unit is low. ● Generating electricity with hydro energy is not polluting itself. The only pollution occurs during the construction of these massive power plants. ● No ash disposal problems like in steam power plants, also no nuclear waste problems like in nuclear power plants.

The disadvantage of Hydroelectric power: The disadvantages of Hydroelectric power are as follows: ● Environmental Consequence: The environmental consequences of hydropower are related to interventions in nature due to the damming of water, changed water flow and the construction of roads and power lines. ● Expensive: Building power plants, in general, is expensive. Hydroelectric power plants are not an exception to this. On the other hand, these plants do not require a lot of workers and maintenance costs are usually low. ● Large area required: This project requires so much space that it can adversely affect and destroys surrounding ecosystems and ecology of the area around. ● It is Located far away from load centers. Hence transmission losses are very high.

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Figure: Region Wise Status of Hydro-Electricity Capacity

Nuclear Power: The Nuclear power is of recent origin and its supply accounts for 2 percent of the total installed capacity of electricity. Considering the relative failure of the nuclear power plants in Russia and in other countries including India, nuclear energy is unlikely to make a significant contribution to power generation in the country.

Nuclear power is the sixth-largest source of electricity in India after coal, gas, hydroelectricity and wind power and biopower.. As of March 2018, India has 22 nuclear reactors in operation in 7 nuclear power plants, having a total installed capacity of 6,780 MW.

Availability of atomic fuel Uranium and Thorium, which are available in Jharkhand and the Aravalli ranges of Rajasthan are used for generating atomic or nuclear power. The Monazite sand of Kerala is also rich in Thorium.

Growth of installed capacity of Nuclear Power since Independence

Figure: Growth of Installed Capacity

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The Advantage of Nuclear Power: ● The generation of electricity through nuclear energy reduces the use of fossil fuel, which is very much helpful in lowering greenhouse gas emissions. ● The cost of nuclear fuel (overall uranium) is 20% of the cost of energy generated.

The Disadvantage of Nuclear Power: ● Nuclear waste management is quite difficult. It takes many years to eliminate its radioactivity. ● The investment for the construction of a nuclear plant is very high.

Three stage nuclear energy programme Stage 1: PRESSURISED HEAVY WATER REACTORS

● Natural UO2 as fuel matrix ● Heavy water as moderator and coolant

Natural U isotopic composition is 0.7 % fissile U-235 and the rest is U-238. In the reactor

● The first two plants were of boiling water reactors based on imported technology. Subsequent plants are of PHWR type through indigenous R&D efforts. India achieved complete self- reliance in this technology and this stage of the programme is in the industrial domain.

The future plan includes

● Setting up of VVER type plants based on Russian Technology is under progress to augment power generation. ● MOX fuel (Mixed oxide) is developed and introduced at Tarapur to conserve fuel and to develop new fuel technology.

STAGE 2. Fast Breeder Reactor

India’s second stage of nuclear power generation envisages the use of Pu-239 obtained from the first stage reactor operation, as the fuel core in fast breeder reactors (FBR). The main features of FBTR are

● Pu-239 serves as the main fissile element in the FBR ● A blanket of U-238 surrounding the fuel core will undergo nuclear transmutation to produce fresh Pu-239 as more and more Pu-239 is consumed during the operation. ● Besides a blanket of Th-232 around the FBR core also undergoes neutron capture reactions leading to the formation of U-233. U-233 is the nuclear reactor fuel for the third stage of India’s Nuclear Power Programme. ● It is technically feasible to produce sustained energy output of 420 GWe from FBR. ● Setting up Pu-239 fuelled fast Breeder Reactor of 500 MWe power generation is in advanced stage of completion. Concurrently, it is proposed to use thorium-based fuel, along with a small feed of plutonium-based fuel in Advanced Heavy Water Reactors (AHWRs). The AHWRs are expected to shorten the period of reaching the stage of large-scale thorium utilization.

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Stage: 3. Breeder Reactor (Thorium based Reactor) The third phase of India’s Nuclear Power Generation programme is, breeder reactors using U-233 fuel. India’s vast thorium deposits permit design and operation of U-233 fuelled breeder reactors.

● U-233 is obtained from the nuclear transmutation of Th-232 used as a blanket in the second phase Pu-239 fuelled FBR. ● Besides, U-233 fuelled breeder reactors will have a Th-232 blanket around the U-233 reactor core which will generate more U-233 as the reactor goes operational thus resulting in the production of more and more U-233 fuel from the Th- 232 blanket as more of the U-233 in the fuel core is consumed helping to sustain the long term power generation fuel requirement. ● These U-233/Th-232 based breeder reactors are under development and would serve as the mainstay of the final thorium utilization stage of the Indian nuclear programme. The currently known Indian thorium reserves amount to 358,000 GWe- yr of electrical energy and can easily meet the energy requirements during the next century and beyond.

Reprocessing of spent fuel (FUEL ENRICHMENT)

“Open cycle” refers to disposal of the entire waste after subjecting to proper waste treatment.

This Results in huge underutilization of the energy potential of Uranium (~ 2 % is exploited)

“Closed cycle” refers to chemical separation of U-238 and Pu-239 and further recycled while the other radioactive fission products were separated, sorted out according to their half-lives and activity and appropriately disposed off with minimum environmental disturbance.

● Both the options are in practice. ● As a part of long – term energy strategy, Japan and France has opted “closed cycle” ● India preferred a closed cycle mode in view of its phased expansion of nuclear power generation extending through the second and third stages. ● Indigenous technology for the reprocessing of the spent fuel as well as waste management programme has been developed by India through its own comprehensive R&D efforts and reprocessing plants were set up and are in operation thereby attaining self - reliance in this domain.

Nuclear mishaps in india : ● May 4, 1987 (Kalpakkam). Refueling accident damages reactor core. ● May 13, 1992(Tarapur). A malfunctioning tube causes plant to release 12 Curies of radioactivity. ● March 31, 1993(Narora). Plant suffers a fire at its steam turbine blades. Shutdown lasted a year. ● Dec. 26, 2004(Kalpakkam). During the tsunami, sea water enters into tunnel of plant. Plant shut down. ● November 25, 2009(Kaiga). Employee fall ill. Test show tritium content in urine of 92 employees who drank water from cooler.

Renewable Energy Over the years, renewable energy sector in the country has emerged as a significant player in the grid connected power generation capacity. It supports the government agenda of sustainable growth, while, emerging as an integral part of the solution to meet the nation’s energy needs and an essential player for energy access.

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Renewable Energy Potential India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources viz. ● Solar power- 750 GW, ● Wind - 102 GW (at 80 metre mast height); ● Small hydro - 20 GW; ● Bioenergy - 25 GW;

Growth of Renewable Energy Generation: ● As of May 2018, total renewable power generation installed capacity in the country stood at 114.43 GW, which is 33 percent of the total installed capacity of 343.9 GW. ● Installed renewable power generation capacity has increased steadily over the years, posting a CAGR of 9.29 percent over FY08–18. India added record 11, 788 MW of renewable energy capacity in 2017-18.

Solar power ● Due to its favourable location in the solar belt (400S to 400N), India is one of the best recipients of solar energy with relatively abundant availability ● Growth in solar power installed capacity is expected to surpass the installed capacity of wind power, reaching 100 GW by 2022 from its current levels of 21.65 GW as of March 2018. ● Rapidly falling costs has made Solar PV the largest market for new investment. Further, the scaling up of the target of National Solar Mission creates a positive environment for investors keen to tap in to India’s renewable energy potential ● Under Union Budget 2018-19, zero import duty on components used in making solar panel was announced to give a boost to domestic solar panel manufacturers. ● World’s largest solar park named ‘Shakti Sthala’ was launched in Karnataka in March 2018 with an investment of Rs 16,500 crore.

Small hydro ● Hydro power projects in India are classified into conventional hydro projects and small hydro electric projects. Small hydel projects are included in the government’s renewable energy sources (RES) targets. ● Installed capacity from large hydel projects in India increased from 35.9 GW in March 2008 to 45.3 GW in March 2018 while capacity from small hydel plants has increased more than four times to 4.5 GW in the same period. ● A new Hydro power policy for 2018 - 28 has been drafted for the growth of hydro projects in the country.

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Wind ● India is the fourth largest wind power producer in the world, after China, USA and Germany. ● Ministry’s wind power programme covers wind resources assessment, projects through fiscal and promotional policies. ● A total capacity of 32848.46 MW has been established up to December, 2017.

Bioenergy ● Bio power has installed capacity of 8839.10 MW which constitutes 2.56% of total capacity. ● The Government has unveiled a new National Biofuel Policy (2018) to incentivise biofuel generation through multiple measures such as Bioethanol, Biodiesel, Bio cng etc.

GOVERNMENT INITIATIVES

Problems in Power Generation Segment ● Inadequate fuel availability ● Increase in coal price ● Declining plant load factor ● Delay in securing clearance ● Poor financial health of discoms

TRANSMISSION SEGMENT Transmission segment links the power generation and distribution. Transmission of electricity is defined as bulk transfer of power over a long distance at high voltage, generally of 240 kV and above. In India bulk transmission has increased from 3,708 ckm in 1950 to more than 399142 ckm bulk of which is transmitted by Power Grid Corporation of India .

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The entire country has been divided into five regions for transmission systems, namely, Northern Region, North Eastern Region, Eastern Region, Southern Region and Western Region. The Interconnected transmission system within each region is also called the regional grid.

Issues in Transmission Segment ● The issues are transmission tariff design, right of way, Investment in the sector and allocation of transmission corridor to exchange the power etc.

DISTRIBUTION SEGMENT The total installed generating capacity in the country is 346619.37 MW,and the total number of consumers is over 150 million. Apart from an extensive transmission system network at 500kV HVDC, 400kV, 220kV, 132kV and 66kV which has developed to transmit the power from generating station to the grid substations, a vast network of sub transmission in distribution system has also come up for utilisation of the power by the ultimate consumers.

Issues in Distribution segment ● Installation of availability based tariff, availability of independent feeder & automation in power distribution are the critical issues in distribution sector. ● Reduction of aggregate technical and commercial losses, ● Improved power quality supply, ● Improved customer satisfaction, ● Strengthening of distribution network, ● Provision for 100% metering and ● Introduction of competition through Open access ● Poor financial health of Discom companies

Electrification According to Central Electricity Authority (CEA), a village is considered electrified only if the Gram Panchayat certifies that the basic infrastructure has been provided to the inhabited area, including hamlets, and 10% of the households are electrified Rural Electrification  Rural electrification is considered to be the backbone of the rural economy.

 The electricity generation capacity in India is the fifth largest in the world.

 India is the sixth largest consumer of electricity and accounts for 3.4 percent of the global energy consumption. Rural electrification has five major facets:  Setting up of Rural Electricity Infrastructure  Providing connectivity to households  Adequate supply of desired quality of power  Supply of electricity at affordable rates  Providing clean, environmentally benign and sustainable power in efficient way.

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Rural Electrification provides for:  Increase in agriculture yield.  Business of Small and household enterprises shall grow resulting into new avenues for employment.  Improvement in Health, Education, Banking (ATM) services.  Improvement in accessibility to radio, telephone, television, internet and mobile.  Betterment in social security due to availability of electricity.  Accessibility of electricity to schools, panchayats, hospitals and police stations.  Rural areas shall get increased opportunities for comprehensive development.

CHALLENGES IN INDIAN POWER SECTOR

The power deficit Some of the issues leading to the power deficit situation in the country include (i) shortage of fuel, (ii) high AT&C losses, (iii) a differential tariff structure, and (iv) delays in tariff revisions. High AT&C losses and losses arising due to issues with tariff affect the ability of distribution companies (discoms) to buy power to supply to the consumers. Generation capacity increasing, but utilisation of generation capacity is still low Over the years, the capacity to generate electricity has increased, however the actual generation of electricity has not been commensurate with this increased capacity. Key reasons for the low utilisation of generation capacity are: (i) shortage of fuel, especially coal, and (ii) unviable Power Purchase Agreements.

A power purchase agreement (PPA), or electricity power agreement, is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer). The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination.

Aggregate Technical and Commercial (AT&C) loss Aggregate Technical and Commercial (AT&C) loss is the percentage of power procured by the discom for which it did not receive any payment. The national average for AT&C losses for 2012-13 was about 25%. In countries such as UK and US, AT&C losses are about 6-7%.

Technical loss is the energy lost as heat when electricity is carried over wires. Poor equipment increases this loss. Commercial losses are caused by theft and pilferage of power, and lack of metering and poor billing and collection systems.

Differential tariff, delays in tariff revisions lead to financial losses In 2013-14, the average cost of supplying power was Rs 5.9/kWh whereas the average tariff was Rs 4.8/kWh. In the same year, across consumer categories, the average tariff was highest for commercial (Rs 7.6/kWh) and industrial (Rs 6.3/kWh) consumers. Average tariff was the lowest for agricultural consumers at 1.8 Rs/kWh (due to direct subsidies received from the state government and cross-subsidisation by commercial and industrial consumers). Supplying electricity at tariff lower than the cost to supply, along with delay in tariff revisions has led to discoms facing huge

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financial losses.

Borrowings by state owned discoms has been increasing The losses have resulted in state discoms relying more on short-term loans to fund their operations. Consequently, the interest cost on these loans worsens the poor finances of state discoms. Poor finances of the discoms affect their ability to buy power, thus leading to power deficits.

RECENT GOVERNMENT INITIATIVE IN ELECTRICITY SECTOR The Government has initiated several initiatives and policies for the development and improvement of power sector.

24X7 Power for All Preparation of state specific action plans for ‘24X7 Power for All’ covering adequacy of generation, transmission capacity and distribution system. ‘24X7 Power for All’ documents have been signed for 35 States/UTs. The revised Tariff Policy was notified by Ministry of Power on 28.01.2016 with a focus on ‘4 Es’ ● Electricity for all, ● Efficiency to ensure affordable tariffs, ● Environment for a sustainable future, ● Ease of doing business to attract investments and ensure financial viability.

Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for rural areas: The scheme provides for (a) separation of agriculture and non-agriculture feeders; (b) strengthening and augmentation of sub-transmission and distribution infrastructure in rural areas including metering at distribution transformers, feeders and consumers end; and (c) rural electrification.

Integrated Power Development Scheme (IPDS) for urban areas: The scheme provides for (a) strengthening of sub-transmission and distribution networks in urban areas; (b) metering of distribution transformers/feeders/consumers in urban areas; and (c) IT enablement of distribution sector and strengthening of distribution network.

Power System Development Fund (PSDF): PSDF shall be utilized for the project proposed by distribution utilities for (a) creating necessary transmission system of strategic importance; (b) installation of shunt capacitors etc. for improvement of voltage profile in the grid; (c) installation of standard and special protection schemes; and (d) Renovation and Modernisation of transmission and distribution systems for relieving congestion; etc.

Ujwal Discom Assurance Yojana (UDAY): The scheme has been launched for operational and financial turnaround of Discoms. Measures initiated for reducing the generation cost of coal based power projects: (a) Increasing supply of domestic coal; (b) Coal usage flexibility (c) Rationalisation of coal linkages

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Standard Bidding Documents (SBDs) have been developed for carrying out competitive bidding for procurement of power and transmission services.

Guidelines and Model Bidding documents on “short term Procurement of power by distribution licensees through tariff based bidding process” and “Procurement of electricity for medium term from power stations set up on Finance, own and operate (FOO) basis”.

Approved an innovative mechanism for utilisation of stranded gas based capacity by making available Re-gasified Liquefied Natural Gas (RLNG) along with interventions by all stakeholders, including support from PSDF through a transparent and efficient manner.

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