24 June 2022 The Hindu Newspaper Analysis

Print Friendly, PDF & Email

1) With reference to the International Energy Agency, consider the following statements: 

1.It was established based on the framework of the Organisation for Economic Co-operation and Development (OEC)
2. The IEA releases World Energy Outlook.
3. India is a fulltime member of IEA.

Which of the statements given above is/are correct?

2 and 3 only
3 only
2 only
1 and 2 only

2) Serpent Island is situated in?


3) Which of the following correctly defines the Dutch Disease phenomenon?

1) Uneven growth witnessed across sectors in a country due to the discovery of natural resources, especially large oil reserves.
2) The level of imports of a nation far exceeds its level of exports.
3) Presence of indirect trade barriers for merchants of other countries.
4) Growth of cartelization creating problems for entry of new players in an industrial sector

Prelims Specific Facts

1)Ukraine has said it has caused significant losses to the Russian military in airstrikes on Zmiinyi Island also known as Snake Island in the Black Sea.

Snake Island is also known as Zmiinyi or Serpent Island.

The island is located 35 km from the coast of the Black Sea, to the east of the mouth of the Danube and roughly southwest of the port city of Odessa.

The island is a small piece of rock less than 700 meters from end to end that has been described as being “X-shaped”.

The island has been known since ancient times and is marked on the map by the tiny village of Bile that is located on it. This village belongs to Ukraine. 

2) What are the key provisions of Green Energy Open Access Rules,2022?

Lower Limit for green energy open access: The limit of open access transactions has been reduced from 1 MW (megawatt) to 100 kW for green energy in order to enable small consumers also to purchase renewable power through open access.  

Setting up of Central Nodal Agency: The rules provide for the setting up of a central nodal agency for operating a single-window green energy open access system through a centralized registry. 

Faster Application Process: The decision to grant green energy open access or not would have to be taken in 15 days failing which it would be treated as deemed permission.

What are the implications of these rules?

Firstly, open-access rules for green power, though helpful to the consumers, will put the discom finances under further strain. 

Note: If India really wants to reach 500 GW of non-fossil capacity, the financial health of the discoms needs to improve by taking the following actions: Retail tariffs need to be raised, the discoms need to bring down their commercial losses and the government needs to pay the promised subsidy to the discoms.

Secondly, the states will still be able to thwart open access by citing technical issues, meaning a lack of transmission capacity. 

3) Constitution on the role of Governor in calling for a floor test 

Article 174(2)(b): It gives powers to the Governor to dissolve the Assembly on the aid and advice of the cabinet. 

– However, the Governor can apply his mind when the advice comes from a Chief Minister whose majority could be in doubt.

Article 175(2): It says that the Governor can summon the House and call for a floor test to prove whether the government has the numbers. 

Article 163: It says that the governor shall exercise her or his functions with the aid and advice of the council of ministers. But it also adds that she or he would not need their advice if the Constitution requires her or him to carry out any function at her/his discretion.

Supreme Court on Powers of Governor in calling for a floor test 

In 2020, the Supreme Court in Shivraj Singh Chouhan & Ors versus Speaker case upheld the powers of the Speaker to call for a floor test if there is a prima facie view that the government has lost its majority.

The court also held that the Governor is not deprived of the power to order a floor test where on the basis of the material available to the Governor it becomes evident that the issue as to whether the government commands the confidence of the House requires it to be assessed on the basis of a floor test.

Note: When the House is in session, it is the Speaker who can call for a floor test. But when the Assembly is not in session, the Governor’s residuary powers under Article 163 allow him to call for a floor test

4)Summary of 14th BRICS Meet

At the 14th BRICS summit which is to be hosted by China in a virtual mode on 23-24 June, the member nations will review the current global issues and will reach key agreements.

Vladimir #Putin will also speak at a ‘BRICS Plus’ session involving the leaders of several invited states.

A BRICS Plus virtual conference was held as part of the main meeting with ministers from countries, including the UAE, Saudi Arabia, Egypt, Kazakhstan, Indonesia, Argentina, Nigeria, Senegal, and Thailand, according to reports.BRICS Plus is a new phase in the expansion of BRICS – already known for its combined economic growth potential – that aims to welcome more countries and enhance economic conditions.

Which discussions are covered :- Discussions during the 14th BRICS Summit are expected to cover intra-BRICS cooperation in areas such as counter-terrorism, trade, health, traditional medicine, environment, S & T and innovation, agriculture, technical and vocational education & training, and MSMEs

5) Problems of Gujarat’s textile industry :-

  • The Tax structure is punishing the traders. GST is levied at each stage of Value addition and that is creating troubles.
  • Breakdown of the Global supply chain is causing a decline in the exports.
  • The Major Trade is shifting towards Vietnam and Bangladesh where a variety of tax incentives are provided.
  • The decline in the raw materials due to covid first and then the War of Ukraine and Russia.
  • Increase in price/inflation due to supply crunch and demand rise with low supply of raw materials is also a cause of concern.
  • Pink Bollworms attack on cotton is also affecting the production.

6)The problems plaguing thermal power generators

Why is there a coal or electricity supply when India is the second largest producer of coal:-

  • Indian coal is not all good quality coal, Coal has low calorific value and thus can not be used for electricity generation.
  • Some of the Power plants of India are running on the coal imported from different countries and since the global supply chains are disrupted due to covid and the war, thus there is a shortage in the imported coal.
  • Discoms have a lot of debt on them of Generating companies and thus some Gencos stop giving power to discoms and thus we see decrease in electricity.
  • Skyrocketing prices of coal in the International market.
  • Surge in Power demand after COVID has also increased prices and reduced supply.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: