Governance & Social Justice
- Generic Only Model : Concepts and Concerns
- Consumer Protection Bill 2018 Passed By Lok Sabha
- Global Burden of Disease Report by Lancet
- Adivasis in Chhattisgarh & M.P.
- Menstrual Hygiene for Rural Women
- Global Nutrition Report 2018
- What Is Sextortion Law J&k
- Human Microbiome
- Tele-Robotic Surgery
- Prevention of Malaria’s Side Effects
- Opioid Overdose Crisis
- India To Give Bhutan Rs. 4500 Crore
- IMO’s New Rule for Oil
- G20 Summit 2018
- Geopolitical Importance of Island States
- Strengthening Of Boko Haram
- US China Trade War
- Why India Paying Iran with Rupees?
- Trans Regional Maritime Pact
- Trump’s Syria Withdrawal
- India will Give Maldives $1.4 Billion
- Australia Recognized West Jerusalem As Israeli Capital
- China Taiwan Relations Indepth analysis
- Shahpur Kandi Dam Project Get Approval
- Qatar Exit To OPEC
- Farm Loan Waivers Good or Bad?
- Issues with ultra mega power projects
- Importance of Soybean for Malwa Region
- What is Public Credit Registry ?
- Financial Literacy for Financial Inclusion, Jan Dhan Yojna
- Dharavi Redevelopment Project 2018
- Bogibeel Bridge
- Global Wage Report 2018
- RBI 5th Bi-Monthly Monetary Policy
- Direct Benefit Transfer for Electricity
- Pradhan Mantri Ujjwala Yojana
- National Pension System
- Troubling Power Sector
- Train 18: Fastest Train in Nation
- Oxytocin Ban Removed
Defence & Security
Science & Technology
- Mission Gaganyaan Approved
- Ethanol Blending
- Project Dragon Fly
- Swaminathan Calls GM Crops A Failure
- China’s Change E-4 Mission
- 3D printing in Pharma sector
- Womb Transplant
- Supreme Court On Rafale Deal
- GSAT-7A Launched
- Saturn to Lose Its Rings
- ISRO’s Small Satellite Launch Vehicle
- Bharat Net Project
- Indian Navy gets Submarine Rescue System
- Transgenic Rise with Reduced Arsenic
- Global Hackathon on Artificial Intelligence
- Cheap Hydrogen Production
- NASA’s Insight Spacecraft
- Mission Raksha Gyan Shakti
- Life on Titan (Saturn’s Moon)
- What is COP 24 ?
- What is rat-hole mining
- Structural Reform for Decarbonising India
- Marine Vegetation To Mitigate Ocean Acidification
- Impact of Ocean Warming On Great Southern Reef
- What is Bio-Diversity Offsetting
- Atmospheric Iodine Will Destroy bad Ozone
- UN’S WMO : 2018 4th Hottest Year On Record
- Effects of Drugs Discharge into Yamuna river
Spice of the Month
GS 3 ||Economy || Infrastructure || Power
Why in News:
- The Gujarat government has recently asked its discoms to approach the CERC (Central Electricity Regulatory Commission) to get approval for a tariff hike.
- CERC is a statutory quasi-judicial body functioning under sec – 76 of the Electricity Act 2003 (CERC was initially constituted under the Electricity Regulatory Commissions Act, 1998 on 24th July, 1998). CERC is the regulatory body of power sector in India.
- If the Discoms (Distribution Companies) have to increase or make differences in the tariff on power and electricity, they will have to get approval from CERC.
Background of the UMPP:
- In 1995, the central government had come up with this policy with a purpose to coal based power projects in the nation, with a capacity of 1000MW or more than that.
- In this policy, it was decided to set up UMPPs and central government invited for the coastal project
- UMPPs are run by three companies: TATA group, Adani and the third is ESSAR group.
- According to the new conditions they can run only on imported coal and should have a combined generation capacity of 10,000 MW and these companies have to sign a power purchase agreement with the various state governments. Coal is imported from Indonesia.
- Coal was imported from Indonesia. But, in 2010, Indonesia issued new regulations in which pricing and policies were increased. Earlier it was cheaper.
- The increased cost of coal infused some financial implications.
- According to a new decision by Supreme Court, there should not be any change in the price within the nation because of increased coal tariff by Indonesia.
- Discoms were not able to raise the tariff which badly effected lenders, promoters and customers. For the three plants, they were unable to pass the uncontrollable increase in the fuel prices of discoms. Power projects were surviving by additional funds by the promoters.
- There was also a likelihood of erosion in the credit worthiness of the generators and this would result in creation of NPA. This could have been only solved if there were some reasonable increase in the tariffs. But it would burden the consumers so both ways were difficult.
- So, a high powered committee (HPC) was set up by the Gujarat govt.
Recommendations of the HPC:
- Three projects should be permitted to pass on impact of high fuel cost equitably to consumers, lenders and other stakeholders.
- The banks have to make a cut of more than 10,000 crores. It also recommended that lenders should reduce the interest rates which may ease the pressure on power plants.
- Also recommended a partial pass-through of this high coal prices to the consumers. Which means the price hike on the coals must be passed on to consumers also, but in partial magnitude. It may increase the tariff also.
- Along with this, there should be a commercial restructuring of these plans.
- SC said, its previous verdict will not intercept in the way of measures suggested by the HPC.
- From the part of the state government, they are contemplating to pass on the extra fuel cost on the consumers, rest no other charges.
- With regard to CERC, the state govt has asked its discoms to get approvals from CERC for the increase in tariffs. CERC should also consider the following factors before these approvals:
Affordability of power consumers, Protection of interests of various stake holders, and also alternatives to these situations.
- Inclusively it should be based on balanced approach.