Indian Governance and Policy

Why are the Central undertakings not capable of generating power at low cost?

Directions: Read the following passage carefully and answer the given question. 

Amartya Sen wrote about the Indian tradition of skepticism and heterodoxy of opinion that led to high levels of intellectual argument. The power sector in India is a victim of this tradition at its worst. Instead of forcefully communicating, supporting and honestly and firmly implementing policies, people just debate them. It is argued that central undertakings produce power at lower tariffs and must therefore, build most of the required extra capacities. This is a delusion. They no longer have access to low-cost government funds.

Uncertainty about payment remains a reason for the hesitation of private investment. They had to sell only to SEBs (State Electricity Boards). SEB balance sheets are cleaner after the “securitisation” of the Rs. 40,000 crore or so owed by SEBs to central government undertakings, now shown as debt instruments. But, state governments have not implemented agreed plans to ensure repayment when due. The current annual losses of around Rs. 28,000 crore make repayment highly uncertain. The central undertakings that are their main suppliers have payment security because the government will come to their help. Private enterprises do not have such assurance and are concerned about payment security, that must be resolved.
                                   
By the late 1990s, improving the SEB finances was recognised as fundamental to power reform. Unbundling SEBs, working under corporate discipline and even privatisation and not vertically integrated state enterprises, are necessary for efficient and financially viable electricity enterprises. Since the government will not distance itself from managing them, privatising is an option. The Delhi model has worked. But, it receives no public support.
                                   
The Electricity Act 2003, the APRDP (Accelerated Power Reform and Development Programme) with its incentives and penalties, and the creation of independent regulatory commissions, were the means to bring about reforms to improve financial viability of power sector. Implementation has been half-hearted and results disappointing. The concurrent nature of electricity in the Constitution impedes power sector improvement. States are more responsive to populist pressures than the central government, and less inclined to take drastic action against electricity thieves.

Captive power would add significantly to capacity. However, captive generation, three years after the Act enabled it, has added little to capacity because rules for open access were delayed. Redefined captive generation avoids state vetoes on purchase or sale of electricity except to state electricity enterprises. Mandating open access on state-owned wires to power regardless of ownership and customer would encourage electricity trading. The Act recognised electricity trading as a separate activity. A surcharge on transmission charges will pay for cross-subsidies. These were to be eliminated in time. Rules for open access and quantucom of surcharge by each state commission (under broad principles defined by the central commission) have yet to be announced by some. The few who have announced the surcharge have kept it so high that no trading can take place.

Why were the results of the power sector reforms NOT anticipated?

Directions: Read the following passage carefully and answer the given question. 

Amartya Sen wrote about the Indian tradition of skepticism and heterodoxy of opinion that led to high levels of intellectual argument. The power sector in India is a victim of this tradition at its worst. Instead of forcefully communicating, supporting and honestly and firmly implementing policies, people just debate them. It is argued that central undertakings produce power at lower tariffs and must therefore, build most of the required extra capacities. This is a delusion. They no longer have access to low-cost government funds.

Uncertainty about payment remains a reason for the hesitation of private investment. They had to sell only to SEBs (State Electricity Boards). SEB balance sheets are cleaner after the “securitisation” of the Rs. 40,000 crore or so owed by SEBs to central government undertakings, now shown as debt instruments. But, state governments have not implemented agreed plans to ensure repayment when due. The current annual losses of around Rs. 28,000 crore make repayment highly uncertain. The central undertakings that are their main suppliers have payment security because the government will come to their help. Private enterprises do not have such assurance and are concerned about payment security, that must be resolved.
                                   
By the late 1990s, improving the SEB finances was recognised as fundamental to power reform. Unbundling SEBs, working under corporate discipline and even privatisation and not vertically integrated state enterprises, are necessary for efficient and financially viable electricity enterprises. Since the government will not distance itself from managing them, privatising is an option. The Delhi model has worked. But, it receives no public support.
                                   
The Electricity Act 2003, the APRDP (Accelerated Power Reform and Development Programme) with its incentives and penalties, and the creation of independent regulatory commissions, were the means to bring about reforms to improve financial viability of power sector. Implementation has been half-hearted and results disappointing. The concurrent nature of electricity in the Constitution impedes power sector improvement. States are more responsive to populist pressures than the central government, and less inclined to take drastic action against electricity thieves.

Captive power would add significantly to capacity. However, captive generation, three years after the Act enabled it, has added little to capacity because rules for open access were delayed. Redefined captive generation avoids state vetoes on purchase or sale of electricity except to state electricity enterprises. Mandating open access on state-owned wires to power regardless of ownership and customer would encourage electricity trading. The Act recognised electricity trading as a separate activity. A surcharge on transmission charges will pay for cross-subsidies. These were to be eliminated in time. Rules for open access and quantucom of surcharge by each state commission (under broad principles defined by the central commission) have yet to be announced by some. The few who have announced the surcharge have kept it so high that no trading can take place.

Which of the following was NOT considered as the instrument to accomplish financial well-being of the power sector?

Directions: Read the following passage carefully and answer the given question. 

Amartya Sen wrote about the Indian tradition of skepticism and heterodoxy of opinion that led to high levels of intellectual argument. The power sector in India is a victim of this tradition at its worst. Instead of forcefully communicating, supporting and honestly and firmly implementing policies, people just debate them. It is argued that central undertakings produce power at lower tariffs and must therefore, build most of the required extra capacities. This is a delusion. They no longer have access to low-cost government funds.

Uncertainty about payment remains a reason for the hesitation of private investment. They had to sell only to SEBs (State Electricity Boards). SEB balance sheets are cleaner after the “securitisation” of the Rs. 40,000 crore or so owed by SEBs to central government undertakings, now shown as debt instruments. But, state governments have not implemented agreed plans to ensure repayment when due. The current annual losses of around Rs. 28,000 crore make repayment highly uncertain. The central undertakings that are their main suppliers have payment security because the government will come to their help. Private enterprises do not have such assurance and are concerned about payment security, that must be resolved.
                                   
By the late 1990s, improving the SEB finances was recognised as fundamental to power reform. Unbundling SEBs, working under corporate discipline and even privatisation and not vertically integrated state enterprises, are necessary for efficient and financially viable electricity enterprises. Since the government will not distance itself from managing them, privatising is an option. The Delhi model has worked. But, it receives no public support.
                                   
The Electricity Act 2003, the APRDP (Accelerated Power Reform and Development Programme) with its incentives and penalties, and the creation of independent regulatory commissions, were the means to bring about reforms to improve financial viability of power sector. Implementation has been half-hearted and results disappointing. The concurrent nature of electricity in the Constitution impedes power sector improvement. States are more responsive to populist pressures than the central government, and less inclined to take drastic action against electricity thieves.

Captive power would add significantly to capacity. However, captive generation, three years after the Act enabled it, has added little to capacity because rules for open access were delayed. Redefined captive generation avoids state vetoes on purchase or sale of electricity except to state electricity enterprises. Mandating open access on state-owned wires to power regardless of ownership and customer would encourage electricity trading. The Act recognised electricity trading as a separate activity. A surcharge on transmission charges will pay for cross-subsidies. These were to be eliminated in time. Rules for open access and quantucom of surcharge by each state commission (under broad principles defined by the central commission) have yet to be announced by some. The few who have announced the surcharge have kept it so high that no trading can take place.

What was been the role of the state government in implemeting the reforms?

Directions: Read the following passage carefully and answer the given question. 

Amartya Sen wrote about the Indian tradition of skepticism and heterodoxy of opinion that led to high levels of intellectual argument. The power sector in India is a victim of this tradition at its worst. Instead of forcefully communicating, supporting and honestly and firmly implementing policies, people just debate them. It is argued that central undertakings produce power at lower tariffs and must therefore, build most of the required extra capacities. This is a delusion. They no longer have access to low-cost government funds.

Uncertainty about payment remains a reason for the hesitation of private investment. They had to sell only to SEBs (State Electricity Boards). SEB balance sheets are cleaner after the “securitisation” of the Rs. 40,000 crore or so owed by SEBs to central government undertakings, now shown as debt instruments. But, state governments have not implemented agreed plans to ensure repayment when due. The current annual losses of around Rs. 28,000 crore make repayment highly uncertain. The central undertakings that are their main suppliers have payment security because the government will come to their help. Private enterprises do not have such assurance and are concerned about payment security, that must be resolved.
                                   
By the late 1990s, improving the SEB finances was recognised as fundamental to power reform. Unbundling SEBs, working under corporate discipline and even privatisation and not vertically integrated state enterprises, are necessary for efficient and financially viable electricity enterprises. Since the government will not distance itself from managing them, privatising is an option. The Delhi model has worked. But, it receives no public support.
                                   
The Electricity Act 2003, the APRDP (Accelerated Power Reform and Development Programme) with its incentives and penalties, and the creation of independent regulatory commissions, were the means to bring about reforms to improve financial viability of power sector. Implementation has been half-hearted and results disappointing. The concurrent nature of electricity in the Constitution impedes power sector improvement. States are more responsive to populist pressures than the central government, and less inclined to take drastic action against electricity thieves.

Captive power would add significantly to capacity. However, captive generation, three years after the Act enabled it, has added little to capacity because rules for open access were delayed. Redefined captive generation avoids state vetoes on purchase or sale of electricity except to state electricity enterprises. Mandating open access on state-owned wires to power regardless of ownership and customer would encourage electricity trading. The Act recognised electricity trading as a separate activity. A surcharge on transmission charges will pay for cross-subsidies. These were to be eliminated in time. Rules for open access and quantucom of surcharge by each state commission (under broad principles defined by the central commission) have yet to be announced by some. The few who have announced the surcharge have kept it so high that no trading can take place.

Multi-functional Complexes in station premises are provided in Railway Budget 2009-10 to rail users for providing facilities like shopping, food stalls and restaurants, book stalls, PCO/STD/ISD/Fax booths, medicine & variety stores, budget hotels, underground parking etc. It is proposed to take up development of these Multi-functional Complexes in different parts of the country at ..............railway stations serving places of pilgrimage, industry and tourist interest in this year.

In this year 2009, Railway Ministry has proposed to constitute an expert committee, headed by ..................., the key person behind the telecommunication revolution in our country. The Committee will suggest further innovations, to utilize the optic fiber cables network of the railway and take information technology to the door steps in remote areas.

As reported in some newspapers / magazines the Govt. of India is planning to create a database of Traditional Indian Drugs. Which of the following is the main objective of creating such database?(1) To prevent wrong patenting of drugs by other nations. (2) To create awareness that India has vast resource of natural drugs/medicinal plants. (3) Govt. of India is planning to set up a plant , which will produce drugs from herbs and medicinal plants only.