Insights Revision Plan for Prelims 2016: Test – 23

Solution: b)

Economic Survey 2015-16, Chapter – 11, Page – 152

According to section 2 (47) of the “Electricity Act 2003” Open Access is defined as “A non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission”

To interpret it in a more understandable way the above can be put as follows: Enabling of non-discriminatory sale/ purchase of electric power/energy between two parties utilizing the system of an in-between (third party), and not blocking it on unreasonable grounds. Open access allows large users of power — typically having connected load of 1 megawatt (MW) and above — to buy cheaper power from the open market.

The idea is that the customers should be able to choose among a large number of competing power companies–instead of being forced to buy electricity from their existing electric utility monopoly. It helps large consumers particularly the sick textile, cement and steel industrial units by ensuring regular supply of electricity at competitive rates and boost business of power bourses.

Solution: a)

Economic Survey 2015-16, Chapter – 11, Page – 153

http://pib.nic.in/newsite/PrintRelease.aspx?relid=130261

Solution: c)

Economic Survey 2015-16, Chapter – 11, Page – 153

What is rural feeder segregation and how is it important for rural electrification?

Rural feeder segregation is the separation of technical infrastructure of agriculture consumers from non-agriculture consumers. In a water-constrained scenario where oversupply of power to agricultural farmers may aggravate the already grave groundwater situation and also aggravate financial distress of power utilities (already at 1.5 per cent of GDP), power supply to agriculture sector needs to be controlled. In any case, agriculture power needs could be fulfilled through a daily six to eight hour reliable supply, depending on the season.

If all rural consumers are connected on the same feeder (wires that emerge from sub-stations and carry electricity to transformers for distribution to consumers), power supply to non-agriculture consumers, including households, schools and dispensaries also get switched off when agriculture supply is not needed. It is because switching off is done from the sub-station from where the feeder is supplied. Some utilities have, therefore, segregated agriculture and non-agriculture feeders and have thus attempted to provide 24×7 power supply to the non-agriculture consumers. This has generated increased ability to generate livelihoods, and resulted in significant socio-economic benefits in rural areas.

http://www.downtoearth.org.in/interviews/separate-power-feeders-can-greatly-improve-rural-electrification-42382

Solution: d)

Economic Survey 2015-16, Chapter – 11, Page – 155

Encouraging captive generation is good as it makes industries self reliant and saves them from irregularities in power supply.

But, proliferation of spatially distributed fossil fuel-based smaller captive plants is likely to be environmentally more damaging than the well planned and monitored development of large utility power plants.

http://www.idfc.com/pdf/report/Chapter-12.pdf

Solution: a)

Economic Survey 2015-16, Chapter – 10, Page – 141

More jobs in informal sector is not good because these are not ‘good jobs’ – low wages, insecurity, bad working conditions – all take toll on workers, hence affect human capital.

Solution: a)

Economic Survey 2015-16, Chapter – 10, Page – 143- 144

Many large firms say contract labour is not the ideal solution, and that they would prefer to hire regular workers if dismissal laws were different. Hiring workers through a contractor can be more expensive—14 per cent more expensive according to the Indian Cellular Association. Furthermore, contract workers do not feel as much loyalty to the company as regular workers would, reducing employers’ incentive to invest in their training. Indeed, there is evidence that hiring contract workers today hurts a firm’s productivity tomorrow, precisely because contract workers do not accumulate “firmspecific human capital”.

Solution: a)

Economic Survey 2015-16, Chapter – 10,, Page – 144

A product having high PRODY value should be exported more in number as it diversifies and helps boost export market and production.

Solution: a)

Economic Survey 2015-16, Chapter – 10, Page – 145

Apparel is an industry in which India should be performing well. It is labourintensive, with 30 per cent of costs from wages. Only 2-3 per cent of costs are due to capital-intensive inputs like power.

Solution: c)

Economic Survey 2015-16, Chapter – 10, Page – 148

Solution: d)

Economic Survey 2015-16, Chapter – 09, Page – 130

http://www.downtoearth.org.in/news/urea-coated-with-neem-12520

Solution: c)

Economic Survey 2015-16, Chapter – 09, Page – 132

DAP and MOP producers and importers receive a Nutrient Based Subsidy (NBS) based on a formula that determines the amount of N, P and K in a given amount of fertiliser. Per kg subsidies on DAP and MOP fertiliser are hence fixed—they do not vary with market prices. Imports of DAP and MOP are also not controlled. The prices farmers face are thus deregulated market prices adjusted by fixed nutrient subsidy. Government involvement in DAP and MOP is limited to paying producers and importers a fixed nutrient based subsidy which works out to be roughly 35 per cent of the cost of production.

Government sets a controlled Maximum Retail Price (MRP) at which urea must be sold to farmers. It’s not nutrient based subsidy.

Solution: d)

Economic Survey 2015-16, Chapter – 08, Page – 119

http://financetrain.com/trading-blocs-common-markets-and-economic-unions/

Solution: b)

Economic Survey 2015-16, Chapter – 08, Page – 121

Members: the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru

http://www.bbc.com/news/business-32498715

Solution: d)

Economic Survey 2015-16, Chapter – 07, Page – 107

India’s spending to GDP ratio (as well as spending in human capital i.e. health and education) is lowest among BRICS and lower than both the OECD and EME averages. India’s tax to GDP ratio at 16.6 per cent also is well below the EME and OECD averages of about 21 per cent and 34 per cent, respectively.

Solution: d)

Economic Survey 2015-16, Chapter – 06, Page – 89

Solution: d)

Solution: c)

Solution: c)

Solution: b)

Solution: b)