Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
6. The recent budget proposals with respect to the power and the renewable energy sector will not only help fulfill India’s obligations towards global climate action but will also serve as an impetus to the economy. Elucidate. (250 words)
Reference: The Hindu
Why this question:
The article deals with important highlights of the Union Budget 2020-2021.
Key demand of the question:
The answer must discuss the significance of the recent budget proposals with respect to the power and the renewable energy sector.
Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Briefly explain the key initiatives laid out in the budget with respect to the power sector and the renewable energy sector.
The Union Budget has allocated ₹22,000 crores to the power and renewable energy sector in 2020-21, aiming to improve the financial health of power distribution firms.
The proposals for prepaid smart metering and freedom to choose power suppliers will lay the ground to bring competition in the sector and give consumers a choice. This will increase the efficiency of the whole system.
The Budget provisions have given impetus to clean energy and power.
Discuss the provisions in detail.
Conclude by reasserting the significance of such proposals to the power sector.