AIR 11 · CSE 2023 · GS3 · 52 pages

Kush Motwani: GS3 answer copy

17 answers by Kush Motwani, as written in the test. Each question opens a page with how other toppers answered it.

The questions

  1. Q1What do you understand by windfall tax? Do you think they can effectively redistribute wealth and promote greater econ equality? Electricity Amendment Bill 2022 brings several advantages for consumers, DISCOMs as well as environment. Elaborate. Also list out its shortcomings - suggesting way forward.
  2. Q2Discuss perceived successes and weaknesses of implementing inflation targeting under the new MPC regime.
  3. Q3Assess the potential for millet production in India, in promoting sust. agri. and improving food security.
  4. Q4JJM has the potential to end the regional disparity in availability and accessibility of drinking water. Highlighting its significance - discuss the underlying impediments in achieving desired objectives.
  5. Q5What do you understand by Battery Energy Storage Systems (BESS)? Discuss their applications and how it can revolutionize the energy program of India.
  6. Q6Discuss the developments and challenges in Gaganyaan mission. What are possible benefits of the mission to society?
  7. Q7Green Hydrogen can be the silver bullet in our quest to tackle climate change and pollution" - critically analyze in light of National Green Hydrogen Mission.
  8. Q8What are key lessons for DM and env conservation in Himalayan region, in light of recent disasters at Joshimath, Uttarakhand? Q9: Recent trends in Punjab show Khalistan issue is still simmering! Discuss with respect to recent developments and suggest measures to handle it.
  9. Q10Anonymity and ease of drone operations contribute to challenges of India's border security. Elaborate and give suggestions to tackle drone problem in border areas.
  10. Q12SEBI plays an important role in regulation of share market and safeguarding interests of investors. Highlight challenges faced by SEBI, and suggest reforms in this regard.
  11. Q13Despite being major contributor to Indian economy, agri sector is plagued by several constraints, that impede its growth and dev. Discuss role of tech in overcoming these constraints.
  12. Q14Evaluate impact of irrigation on environment and natural resources. Suggest measures to ensure sustainability of and equity of irrigation practices.
  13. Q15How India benefited strategically from contributions of Dr. Bhabha and Dr. Sarabhai in fields of atomic energy and space tech respectively?
  14. Q16Generative AI holds the potential to push boundaries of innovation in the near future, yet its societal impact raises substantial challenges. Elaborate.
  15. Q17Explain the purpose of "Mangrove Alliance for Climate" launched at COP 27. Elaborate on importance of mangroves in maintaining coastal ecology of tropical nations.
  16. Q19Formation of CDRI brings more robustness to DM approach in India. Comment and justify the need for a new strategy to tackle disasters in India. 19. Recent rise in ransomware attacks targeting critical infra and major corporations has highlighted urgent need for stronger cybersecurity measures and policies. Discussing key factors for this trend, analyze the impact of these attacks on various sectors.
  17. Q20In context of border security, how can coop and coord between diff security agencies be improved to ensure effective and efficient management of coastal and terrestrial borders?

The answers

Question 1 · 547 words written

What do you understand by windfall tax? Do you think they can effectively redistribute wealth and promote greater econ equality? Electricity Amendment Bill 2022 brings several advantages for consumers, DISCOMs as well as environment. Elaborate. Also list out its shortcomings - suggesting way forward.

Opening · a date or context

In the aftermath of the Russia-Ukraine crisis -

Countries including |India, UK, Italy, Germany, etc|

imposed windfall tax on crude refiners - on account of the abrupt increase in prices of crude and refinery products.

Body · points and prose

Windfall tax:

Tax the profits of a company that are derived from an external "black swan" like event.

The tax is:

  1. Not attributable to anything a company did/did not do.
  2. Temporary in nature.
  3. Usually unanticipated (by management, etc)
  4. due to erratic nature of industry
Diagram
(Eg): volatility in crude prices. Post Russia-ukraine crisis: (doubled from $60 to $120) [abrupt increase] [time]

Yes, windfall taxes do play a role in wealth redistribution, and equitable growth, yet they are not a panacea.

Role in wealth redistribution:

  1. Increase govt revenues for welfare
  2. Help citizens deal with [unanticipated inflation]
Diagram
Russia-ukraine crisis -> crude price increased -> unanticipated inflation -> ordinary citizens in trouble -> welfare using windfall taxes bringing relief
  1. Redistribution of corporate profits.

Role in equitable growth:

  1. Level playing field for businesses
  2. Competitive economy
  3. Controlling perverse incentives of commodity producers to make supernormal profits.

Yet, windfall taxes are not a panacea:

  1. If windfall tax is too high, it can disincentivize commodity businesses
  2. can lead to debt crisis. ((commodity businesses such as oil usually have a lot of debt))
  3. Policy uncertainty

Thus, in the given global scenario, windfall tax is a good approach, but it can't be used all the time

Electricity Amendment Bill 2022 seeks to amend Electricity Act 2003 - to liberalize and revitalize the distribution sector - to make it more relevant for 21st century challenges.

Key features:

  1. Permission for more than one distribution license in a given area
  2. No requirement to supply electricity through their own network.
  3. Open and non-discriminatory access to network of a network-owning DISCOM
  4. Cross-subsidy balancing fund.
  5. Payment security mechanism.
  6. Existing PPAs to be shared with new entrants

Advantages for consumers:

  1. Competition between DISCOMs -> will bring down price ↓ higher disposable income
  2. Competition -> better service delivery
  3. Cross-subsidy balancing fund ↓ subsidy for agricultural consumers preserved.
  4. 24 x 7 access (via Electricity Rules 2021)
  5. Grievance Redressal.

Advantages for DISCOMs.:

  1. Non-discriminatory and open access - for non network owning DISCOMs
  2. Network used as a "public good"
  3. Existing PPAs shared -> economic feasibility for new entrants.
  4. Payment security ↓ to generators ↓ sustainable relation between Discom and generator.

Advantages for environment:

  1. Enforcement of RPOs for DISCOMs (Renewable Purchase Obligations)
  2. No requirement to supply through own network ↓ better utilization of existing network ↓ [greater efficiency, less heat loss] ↓ good for environment
  3. Sharing of existing PPAs will make renewable PPAs more sustainable
  4. Greater potential for new PPAs which are renewable.

Short comings and challenges:

  1. Existing PPAs to be shared -> may affect long-term nature of PPAs
  2. Network owning DISCOM will play 2 roles:
Diagram
Network provider <-> electricity supplier CONFLICT OF INTEREST
  1. Risk of inequity - Pvt Discoms may only bid for lucrative areas.
  2. Potential infringement on federalism. (responsibility of power distribution is of States)

Way forward:

  1. Consultative mechanism with States. (via Inter State Council - Article 263)
  2. Division of areas - such that inequity in terms of areas does not arise.
  3. [Reducing role of network owning Discom to that of network provider]
  4. Impetus to short term PPAs, and energy trading via IEX.

Close · a way forward

These steps will benefit all the stakeholders, and help increase per capita energy consumption.