Yojana Summary: February 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

PM-KUSUM: Empowering Farmers with Solar Energy Solutions

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is a scheme launched by the Ministry of New and Renewable Energy (MNRE) in 2019. Its main goal is to promote the installation of off-grid solar pumps in rural areas, reducing the reliance on traditional grid electricity. Additionally, the scheme supports grid-connected solar energy solutions for agricultural purposes.

Components of PM-KUSUM

Component A: Decentralized Solar Power Plants

• Target: 10,000 MW of solar capacity through small solar power plants (up to 2 MW each).
• Location: Preferably within 5 km radius of notified substations to minimize transmission losses and costs.
• Power Purchase: Local DISCOMs will procure electricity at pre-fixed tariffs set by the State Electricity Regulatory Commission (SERC).

Component B: Standalone Solar Agriculture Pumps

• Target: 20 lakh standalone solar-powered agricultural pumps.
• Capacity: Individual farmers can install solar pumps of up to 7.5 HP to replace diesel-based irrigation systems in off-grid areas.
• Financial Support:
  • 30% subsidy by the State Government.
  • The remaining cost to be borne by the farmer.

Component C: Solarization of Grid-Connected Pumps

• Target: Solarizing 15 lakh grid-connected agricultural pumps.
• Usage: Farmers can use the solar power for irrigation and sell excess energy to DISCOMs at pre-fixed tariffs.

OBJECTIVES:

• Enable farmers to set up solar power generation on arid lands and sell surplus electricity to the grid.
• Enhance farmers’ income by allowing them to trade excess solar energy.

SIGNIFICANCE OF THE SCHEME:

1. Enhancing Energy Access:

Encourages farmers to sell surplus solar power to the state, thereby supplementing their income.

Expands rural electricity access, ensuring a reliable energy source for agricultural and allied activities.

2. Climate Change Mitigation:

• Sustainable Irrigation: The initiative promotes sustainable irrigation practices by reducing the dependence on diesel pumps, which are harmful to the environment.
• Efficient Groundwater Utilization: It encourages farmers to use groundwater more efficiently by incentivizing energy-saving practices.
• Carbon Emission Reduction: The measures taken are expected to significantly reduce carbon emissions, with an anticipated decrease of 32 million tonnes of CO2 annually.

3. Employment Generation & Rural Empowerment:

• Job Creation: The initiative is set to create job opportunities in various aspects of solar projects, including installation, maintenance, and operation.
• Energy Security: By enabling decentralized power generation, the initiative strengthens energy security in rural areas.

Challenges in Implementing Solar Pumping Systems:

1. Financial and Logistical Constraints:

• The high initial costs associated with solar power solutions can be a barrier for small farmers, limiting their access to these technologies.
• There are concerns about the domestic availability of solar equipment, particularly solar pumps, which can hinder implementation.

2. Water Table Depletion:

• Current power subsidies promote excessive extraction of groundwater, contributing to the depletion of the water table.
• When water tables decline, upgrading to higher-capacity pumps requires additional solar panels, which further increases costs.

3. Regulatory and Technical Challenges:

• Regulatory restrictions can impede the smooth integration of solar power systems with the existing grid infrastructure.
• Decentralized solar projects may face issues related to grid stability and technical integration, complicating their implementation.

Progress of the National Solar Mission

• Increase in Installed Capacity: India’s solar power capacity has seen remarkable growth. As of December 2023, India’s total renewable energy capacity stood at approximately 180 GW, with solar energy contributing about 70 GW. The initial target of 20 GW by 2022 was surpassed, and the nation is now working towards achieving 500 GW of non-fossil fuel capacity by 2030 as part of a broader renewable energy strategy.
• Development of Solar Parks: The establishment of solar parks has been a cornerstone of the NSM. These parks facilitate large-scale solar power generation and have attracted substantial investments. Notable projects include the Bhadla Solar Park in Rajasthan (2.25 GW), one of the largest in the world, and the Rewa Ultra Mega Solar Park (750 MW) in Madhya Pradesh.
• Growth of Rooftop Solar Installations: Rooftop solar installations have gained traction due to government incentives and subsidies. This decentralization of solar power generation helps alleviate stress on the national grid and promotes energy independence at the household and commercial levels.
• Technological Advancements: The mission has spurred innovation in solar technologies, leading to improved efficiency and reduced costs. India is now one of the largest manufacturers of solar panels globally, contributing to both domestic needs and export markets. Advances in solar panel efficiency, perovskite solar cells, and bifacial modules are enhancing power generation capabilities.
• International Collaboration: India’s commitment to global solar initiatives is evident through its leadership in the International Solar Alliance (ISA), aimed at promoting solar energy worldwide and facilitating technology transfer among member countries.

Challenges Faced by the National Solar Mission

• Land Acquisition Issues: Acquiring land for solar projects poses a significant challenge due to regulatory complexities and local opposition, particularly in densely populated and agricultural regions. The process is often hindered by these factors, making it difficult to secure the necessary land for solar installations.
• Financial Constraints: The high initial capital costs associated with solar installations present a challenge, especially for small-scale projects. Although government subsidies are available, there is a need to strengthen financing mechanisms such as viability gap funding (VGF), green bonds, and interest subvention schemes to facilitate funding for solar initiatives.
• Policy and Regulatory Uncertainty: Inconsistent policies and regulatory frameworks create uncertainty for investors in the solar sector. Frequent changes in tariffs, import duties on solar panels, and delays in power purchase agreements (PPAs) can adversely impact project timelines and financial viability, deterring potential investors.
• Grid Integration Challenges: Integrating intermittent solar power into the national grid poses challenges that require advanced grid management systems and energy storage solutions. Technologies such as battery storage, pumped hydro storage, and hybrid solar-wind projects are being explored to address these challenges, but they require further development and scaling to be effectively implemented.
• Skilled Workforce Shortage: The shortage of trained professionals in the renewable energy sector is a significant barrier to growth. There is a critical need for vocational training programs and skill development initiatives to build a workforce capable of supporting the expanding solar industry. Addressing this skills gap is essential for the sustainable development of solar projects.

WAY FORWARD

To achieve the ambitious goal of sourcing 50% of its energy needs from renewable sources by 2030, India needs to adopt a comprehensive and multi-faceted approach.

• Strengthening Policy Frameworks: India must establish stable and transparent policies that foster long-term investments in renewable energy. A robust policy framework will provide the necessary certainty and confidence to investors, encouraging them to commit to renewable projects.
• Enhancing Infrastructure: Significant investments are required in smart grids, advanced energy storage, and transmission infrastructure to support the increased capacity of renewable energy. Upgrading and expanding the existing infrastructure will be crucial to accommodate the variable nature of renewable sources like solar and wind.
• Promoting Public-Private Partnerships: Encouraging collaboration between government entities and private companies will be essential to mobilize resources effectively. Public-private partnerships can leverage the strengths of both sectors, ensuring efficient implementation and operation of renewable projects.
• Redirecting Subsidies: Shifting financial support from fossil fuels to renewable sources will enhance cost competitiveness and drive adoption. By reallocating subsidies, the government can level the playing field and make renewables more attractive to investors and consumers.
• Investing in Research and Development: Continuous innovation in solar technology is crucial for improving efficiency and reducing costs. Investing in research and development of high-efficiency solar cells, advanced energy storage solutions, and smart grid management systems will be key to enhancing the overall performance and reliability of renewable energy systems.

Conclusion

• To sum up, India’s National Solar Mission has shown remarkable progress since it started, but tackling the current challenges is crucial to meet its renewable energy goals by 2030. Achieving this will require a strong focus on policy changes, financial investments, infrastructure improvements, and workforce training. These efforts are essential to ensure a sustainable energy future for India.
• Similarly, the PM-KUSUM scheme has the potential to transform energy access in rural areas, support sustainable agriculture, and combat climate change. However, for the scheme to be implemented effectively and succeed in the long term, it is important to address the financial, regulatory, and technical challenges it faces.

Perform, Achieve, and Trade (PAT) Scheme

India's economic growth, driven by various initiatives, is closely tied to energy consumption. However, the increasing demand for energy, along with concerns about climate change and pollution, makes it essential to shift towards greater energy efficiency and the use of renewable energy sources.

The Perform, Achieve, and Trade (PAT) Scheme, implemented under the National Mission for Enhanced Energy Efficiency (NMEEE), aims to reduce energy consumption in industrial sectors by setting energy-saving targets and facilitating the trading of energy savings certificates.

India’s Energy Scenario and Challenges

• India is committed to reducing its energy intensity by 45% by 2030, compared to 2005 levels, and achieving net-zero emissions by 2070.
• Energy-intensive industries such as steel, cement, fertilizers, and power generation need significant improvements in energy efficiency to meet these goals.
• Transitioning to energy-efficient technologies, including LED lighting and more efficient industrial processes, is crucial for managing the growing energy demand while mitigating pollution and climate-related risks.

PAT Scheme: Design and Implementation

Objective: The goal is to enhance energy efficiency in industries that consume a lot of energy by setting specific targets for reducing energy consumption.

Implementation:

• Designated Consumers (DCs): These are specific industrial plants identified and required to participate in the scheme.
• Baseline Calculation: Accredited energy auditors evaluate the current Specific Energy Consumption (SEC) for each Designated Consumer.
• Energy-Saving Targets: Targets are set for each DC based on industry benchmarks, indicating the level of energy savings expected.
• Energy Efficiency Measures: DCs are expected to implement recommended energy efficiency improvements, which can range from low-cost measures to significant structural changes requiring high investment.

Trading Mechanism:

• DCs that achieve energy savings beyond their targets receive Energy Saving Certificates (ESCerts).
• These certificates can be sold to DCs that are underperforming, providing flexibility in meeting compliance requirements.

Challenges and Solutions in Different Sectors

Iron & Steel Industry:

• Faces variability in raw materials like iron ore and coal.
• Processes are energy-intensive.

Solutions:

• Improve coal quality.
• Implement waste heat recovery.
• Increase scrap utilisation.

Other Sectors:

• Variability in technology, process efficiency, and resource availability affects energy efficiency goals.

Impact and Achievements

PAT Cycle I (2012-15):

• Achieved savings of 8.67 million tonnes of oil equivalent (MTOE), surpassing the target of 6.86 MTOE.
• Contributed to a reduction of 31 million tonnes of CO₂ emissions.

Subsequent PAT Cycles:

• Expanded to new sectors in subsequent cycles.
• Achieved cumulative savings of over 14 MTOE in Cycle II (2016-19).

Flexibility and Market Approach:

• Trading of Energy Saving Certificates (ESCerts) allows industries to optimise energy efficiency investments.

Overall Impact:

• The PAT scheme has effectively reduced India’s industrial energy consumption.
• Aligns with global climate commitments by integrating technical, financial, and market-based solutions.
• Fosters sustainable industrial growth and significantly contributes to India’s energy efficiency and carbon reduction goals.

Smart Cities Mission and Energy Efficiency

• Launched in 2015, India’s Smart Cities Mission aims to enhance urban living standards through the integration of technology and infrastructure.
• Cities are responsible for 50-60% of global greenhouse gas emissions, making energy efficiency a crucial aspect of sustainable urban development.

Rising Energy Demand

• Urbanization has positioned India as the third-largest energy consumer globally.
• Approximately 80% of India’s energy is sourced from conventional methods, primarily coal, which accounts for 70% of emissions.

Government Initiatives

• India’s Nationally Determined Contributions and Long-Term Low-Emissions Development Strategy emphasize the need for energy-efficient and climate-resilient urban infrastructure.

Key Areas for Enhancing Energy Efficiency in Smart Cities

• Energy-Efficient Buildings: Buildings are responsible for more than one-third of India's total energy use.

• Upgrading HVAC systems, lighting, and water supply in existing buildings can significantly reduce energy demand.

• Green building standards like GRIHA and LEED encourage sustainable construction practices.

• Energy-Efficient Water Management: The Climate Smart Cities Assessment Framework (CSCAF) advocates for energy-efficient water supply networks.

• Implementing SCADA automation, integrating solar energy, and utilizing hydraulic modeling can enhance water management efficiency.

• Energy-Efficient Waste Management: Urban waste is increasing at a rate of 5% annually, necessitating advanced waste management solutions.

• Sensor-based waste collection, AI-driven waste processing, and waste-to-energy conversion are essential for efficient waste management.

• Energy-Efficient Transportation: The transport sector contributes 14% of CO₂ emissions in India.

• Promoting electric vehicles (EVs), implementing AI-driven traffic management systems, and developing multimodal transport networks can help reduce the energy footprint of transportation.

Policy and Regulatory Framework

• Shift Towards Sustainability: The move from the Energy Conservation Act of 2001 to more consumer-oriented policies indicates a growing focus on sustainability in energy management.
• Integration in Urban Planning: It is essential to incorporate the National Action Plan on Climate Change (NAPCC) and the National Mission on Enhanced Energy Efficiency (NMEEE) into urban planning processes to ensure cohesive and effective energy strategies.
• Stakeholder Collaboration: Enhanced coordination among think tanks, academic institutions, businesses, and local governance is crucial for amplifying the impact of energy policies.
• Technological Advancements: The adoption of advanced technologies such as smart grids, AI-driven energy systems, IoT-enabled sensors, and blockchain for energy trading has the potential to significantly transform and improve energy efficiency.
• Decentralized Energy Governance: Strengthening the role and capacity of urban local bodies can lead to more effective and localized energy management strategies.
• Importance of Energy Efficiency: Energy efficiency is fundamental to the concept of smart urbanization. India needs to scale up its initiatives focused on energy efficiency across various sectors, including buildings, transport, water management, and waste management, to achieve sustainable, low-carbon, and climate-resilient urban development.

Scope and Opportunities for Renewable Energy in Rural India

India has seen impressive growth in its renewable energy capacity, increasing by 165% over the past ten years, from 76.38 GW in 2014 to 203.1 GW in 2024.

• Rural India, home to about 67% of the population and contributing 37% of GDP, presents a significant opportunity for renewable energy to drive development. The government recognizes the importance of energy in this context, allocating Rs 68,769 crores for its enhancement.
• Initiatives like the Pradhan Mantri Surya Ghar: Muft Bijli Yojana, which aims to install rooftop solar plants in one crore households, and the National Green Hydrogen Mission, targeting 5 million metric tonnes of annual green hydrogen production capacity by 2030, reflect India’s commitment to sustainable energy solutions.

• Need for Renewable Energy in Rural India

• Despite India’s rapid economic growth, rural areas still face significant infrastructure deficits, particularly in electricity access.
• Around 300 million people in rural India lack access to grid-connected power, relying instead on traditional and polluting sources such as kerosene, diesel, and wood-fired chulhas. These not only contribute to environmental degradation but also impose health hazards and economic burdens.

Solar Power: A Key Solution

Solar energy emerges as a viable alternative due to declining costs and its ability to provide decentralized power solutions. Key advantages include:

• Decentralized Electrification: Solar energy enables cost-effective electrification of remote areas where grid extension is not feasible.
• Multi-purpose Applications: Solar power benefits productivity, safety, healthcare, clean water access, and livelihoods.
• Improving Rural Productivity: Solar lighting can extend working hours and increase household incomes.
• Solar-Powered Agricultural Pumps: These enhance irrigation efficiency, reducing dependence on fossil fuel-based pumps that consume nearly 20% of India’s installed power capacity.
• Water Purification: Solar energy can be harnessed for water treatment, addressing the pressing need for clean drinking water in rural India.

Government Initiatives for Renewable Energy Promotion

The Government of India has introduced various initiatives to boost renewable energy capacity, such as:

• 100% Foreign Direct Investment (FDI) in Renewable Energy: This policy allows 100% FDI in the renewable energy sector under the automatic route, aiming to attract global investment.
• National Green Hydrogen Mission (2023): Launched with the goal of producing 5 million metric tonnes (MMT) of green hydrogen annually by 2030.
• Waiver of Inter-State Transmission Charges: This initiative encourages the inter-state sale of renewable power by waiving transmission charges.
• Ultra Mega Renewable Energy Parks: The government is establishing parks that provide land and necessary transmission infrastructure for large-scale renewable energy projects.
• PM-KUSUM Scheme: This scheme supports the installation of solar-powered systems in agriculture and aims to enhance energy security.
• PM Surya Ghar: Muft Bijli Yojana: Aims to install rooftop solar systems in one crore households with a budget of ₹75,021 crore by FY27.
• Green Energy Corridor Scheme: This scheme focuses on expanding transmission lines to facilitate the evacuation of renewable energy.
• Project Development Cell: A cell established to attract private investment in renewable energy projects.
• Offshore Wind Energy Development: Plans to install 1 gigawatt (GW) of offshore wind energy capacity along the coasts of Gujarat and Tamil Nadu.
• Standard Bidding Guidelines: These guidelines aim to streamline tariff-based competitive bidding processes for solar and wind power projects.

Challenges in Renewable Energy Deployment

Despite significant progress, India’s renewable energy (RE) sector faces several challenges:

• High Land Acquisition Costs: Securing suitable land for renewable energy projects involves high costs, lengthy processes for land use conversion, and obtaining various regulatory clearances, which can be time-consuming and complicated.
• Trust Deficit in Solar Power Solutions: There is a lack of consumer trust in solar power solutions despite government incentives. Many consumers remain skeptical about the performance and reliability of solar energy systems, hindering their adoption.
• Lower Efficiency of Domestic Solar Panels: Indian-manufactured solar panels often do not match the efficiency levels of those produced by international competitors. This lower efficiency can impact the overall effectiveness and attractiveness of solar energy solutions.
• Environmental Challenges: Solar photovoltaic (PV) cells face environmental issues such as dust accumulation, which can significantly reduce their efficiency. This accumulation of dirt and debris on the panels hampers their ability to generate energy effectively.
• Intermittency Issues: Renewable energy sources are highly dependent on weather conditions, leading to fluctuations in power generation. This intermittency can make it challenging to ensure a stable and reliable energy supply.
• Grid Balancing Constraints: The sudden surges or drops in renewable energy generation can strain the stability of the electricity grid. Balancing these fluctuations is crucial for maintaining grid reliability and preventing outages.
• Impact on Wildlife: Wind turbines can pose risks to wildlife, particularly birds and bats, during migration seasons. The placement and operation of wind farms need to consider the potential impact on local wildlife populations.
• High Water Requirement for Hydrogen Production: Large-scale hydrogen production from renewable sources requires significant water resources, which can be a limiting factor in water-scarce regions.
• DISCOM Limitations: Distribution companies (DISCOMs) face limitations in procuring solar power due to Power Purchase Agreements (PPAs) for thermal energy. These agreements can restrict their ability to diversify and increase their renewable energy procurement.
• Economic Viability of Nuclear Power: The economic feasibility of small modular reactors in nuclear power is questionable. These reactors are expected to be expensive, and their commercial viability may not be achievable before 2030.

Renewable energy, particularly solar power, has the potential to drive growth and sustainability in rural India. However, addressing the challenges related to manufacturing, grid infrastructure, and consumer confidence through effective policies, investment, and technological advancements is crucial for ensuring inclusive development and positioning India as a global leader in renewable energy.

Green Hydrogen and India’s Future

India is on a path to become a leader in Green Hydrogen through its National Green Hydrogen Mission (NGHM). This mission aims to make India a global hub for producing, using, and exporting Green Hydrogen. What is Green Hydrogen? Green Hydrogen is hydrogen fuel that is produced using renewable energy sources, such as wind and solar power, making it a clean and sustainable alternative to fossil fuels.

• Energy Self-Sufficiency: The mission is crucial for India’s energy self-sufficiency. By promoting clean energy solutions like Green Hydrogen, India aims to reduce its reliance on fossil fuels, which are not only finite but also contribute significantly to pollution and greenhouse gas emissions.
• Production Targets: The NGHM sets an ambitious target of producing at least 5 Million Metric Tonnes (MMT) of Green Hydrogen annually by 2030. There is potential for this to increase to 10 MMT per year as global demand for Green Hydrogen grows.
• Decarbonizing Industries: The production of Green Hydrogen is expected to significantly reduce carbon emissions in key industrial sectors. This includes heavy industries like steel production, shipping, and long-haul transportation, which are traditionally reliant on fossil fuels.
• Emission Reduction: Initiatives under the NGHM are projected to prevent around 50 MMT of CO2 emissions each year. This is a significant step towards achieving India’s Net Zero goals, where the country aims to balance out its greenhouse gas emissions with an equivalent amount of reductions or offsets.
• Government Support: The success of the NGHM relies on government interventions and a phased approach to developing Green Hydrogen technologies. This includes efforts to lower production costs and create economies of scale, making Green Hydrogen more accessible and affordable.

India’s Commitment to Sustainable Development

• India is a global leader in climate action, having exceeded its targets under the Paris Agreement. The country is now focused on achieving energy independence by 2047 and reaching Net Zero emissions by 2070. A key element of this plan is Green Hydrogen, which has the potential to transform India’s energy landscape and establish the nation as a leader in renewable energy production.
• India boasts one of the world’s fastest-growing renewable energy sectors, with ample resources to meet domestic energy demands and supply Green Hydrogen to international markets. The National Green Hydrogen Mission (NGHM) is a comprehensive initiative aimed at developing a strong Green Hydrogen ecosystem, tackling both the opportunities and challenges in this emerging sector.

The Global Transition to Clean Energy

• As nations work to address climate change, ensure energy security, and stimulate economic growth, Green Hydrogen is emerging as a viable clean energy alternative. It is produced from renewable sources such as solar and wind power and has the potential to decarbonize hard-to-abate sectors like industry, transportation, and power generation. 
• Furthermore, it can create sustainable economic and employment opportunities. Through the NGHM, India is not only enhancing its own energy security and economic development but also contributing to global sustainability efforts.

Advancing Energy Independence and Sustainable Development

• India's energy demand is expected to increase by 25% by 2030. Currently, over 40% of its primary energy needs are met through imports.
• Transitioning to Green Hydrogen can significantly reduce dependence on fossil fuels and enhance energy self-sufficiency.
• Green Hydrogen has the potential to replace fossil fuels in various industries, including:
• Petroleum refining
• Steel production
• Fertilizer production
• Long-haul transportation, including automobiles and ships

Global Opportunities

• There is a growing global demand for Green Hydrogen, especially due to disruptions in fossil fuel supply chains.
• This presents a significant opportunity for India to leverage its renewable energy resources and position itself as a leading producer and exporter of Green Hydrogen and its derivatives, such as Green Ammonia and Green Methanol.

Overcoming Challenges

Although there are challenges like high production costs and the absence of standardized guidelines, progress in technology along with the decreasing prices of renewable energy and electrolysers is expected to make Green Hydrogen competitively priced across different sectors.

Objectives of the National Green Hydrogen Mission ( NGHM )

Initiated in January 2023, the NGHM aims to position India as a leading global centre for the production, utilisation, and export of Green Hydrogen. The mission seeks to:

• Decarbonize the economy
• Reduce reliance on fossil fuel imports
• Enhance India’s leadership in Green Hydrogen technology and markets
• Support the global transition to clean energy

Key Targets

• Annual Production of Green Hydrogen: Aim for at least 5 million metric tonnes (MMT) of Green Hydrogen production each year by 2030, with the possibility of increasing this to 10 MMT.
• Replacement of Fossil Fuels: Transition from fossil fuels to Green Hydrogen-based alternatives in various sectors, including ammonia production, petroleum refining, and city gas distribution.
• Promotion of Synthetic Fuels: Encourage the use of Green Hydrogen-based synthetic fuels such as Green Ammonia and Green Methanol in sectors like mobility, shipping, and aviation.
• Strengthening Electrolyser Manufacturing: Enhance and strengthen India’s electrolyser manufacturing industry, which is crucial for producing Green Hydrogen.

Scaling Green Hydrogen Production: Leveraging Renewable Resources

Current Hydrogen Consumption in India

• India consumes approximately 5 million metric tonnes (MMT) of hydrogen annually.
• The majority of this hydrogen is sourced from fossil fuels, a process known as Grey Hydrogen.

Pilot Projects for Green Hydrogen

• Pilot projects have started to produce Green Hydrogen through water electrolysis powered by renewable energy and biomass-based thermochemical methods.

Goals of the National Green Hydrogen Mission (NGHM)

• Cost Reduction: Aim to reduce costs related to electrolysers, renewable energy inputs, and infrastructure.
• Expand Electrolyser Manufacturing: Increase domestic production of electrolysers to reduce reliance on imports.
• Decentralized Models: Explore decentralized production models such as rooftop solar and small hydro plants to optimize land and water use.
• Hydrogen Refueling Stations: Develop hydrogen refueling stations powered by renewable energy plants.

Decentralized Green Hydrogen Production

• In remote areas and islands, decentralized Green Hydrogen production can meet local energy needs and promote economic development.

Phased Implementation: Laying the Foundation for Growth

Phase I (2022-23 to 2025-26)

• Focus on creating demand and boosting domestic electrolyzer manufacturing.
• Introduction of incentives to promote indigenization.
• Initial deployment in refineries, fertilizers, and city gas sectors.
• Pilot projects in steel, long-haul transport, and shipping.
• Development of regulations and standards.

Phase II (2026-27 to 2029-30)

• Green hydrogen expected to become cost-competitive in key sectors.
• Commercial-scale projects in steel, mobility, and shipping.
• Pilot projects in railways and aviation.
• Expansion of R&D efforts to drive technological advancements and sector-wide decarbonization.

Effective Coordination Across Ministries for the National Green Hydrogen Mission

The success of the National Green Hydrogen Mission (NGHM) in India hinges on coordinated efforts across various ministries and institutions. Here’s a detailed look at the key stakeholders involved:

• Ministry of New and Renewable Energy (MNRE) : As the lead agency, MNRE is responsible for overseeing policy formulation, providing incentives, and fostering international collaborations to promote green hydrogen.
• Ministry of Power (MoP) : MoP plays a crucial role in supporting policies that facilitate cost-effective renewable energy production, essential for green hydrogen production.
• Ministry of Petroleum and Natural Gas (MoPNG) : This ministry focuses on integrating green hydrogen into refineries and city gas distribution networks, enhancing the role of hydrogen in the energy mix.
• Ministry of Chemicals and Fertilisers : The ministry aims to promote the adoption of green ammonia-based fertilizers, which can help reduce dependency on imported fertilizers.
• Ministry of Road Transport and Highways (MoRTH) : MoRTH is involved in promoting the use of hydrogen in heavy transport, supporting the transition to cleaner fuel alternatives.
• Ministry of Steel : This ministry focuses on the development of projects aimed at producing green steel, which is crucial for reducing carbon emissions in the steel industry.
• Ministry of Ports, Shipping and Waterways (MoPSW) : MoPSW is responsible for developing infrastructure for hydrogen-powered ships and facilitating hydrogen exports, contributing to the maritime sector's transition to cleaner fuels.
• Ministry of Finance : The finance ministry plays a vital role in establishing financial frameworks and incentives that support the growth of the green hydrogen sector.

The National Green Hydrogen Mission is set to be a transformative initiative for India’s energy sector, aiming for self-reliance and sustainability. With its vast renewable energy resources and potential for technological advancements, India is on track to become a global leader in green hydrogen production and export. Through coordinated efforts, phased implementation, and international collaboration, the mission will accelerate India’s shift towards a low-carbon economy, paving the way for a cleaner, greener, and energy-secure future.

The Requirement for Renewable Energy Sources

• Traditional energy sources, mainly fossil fuels, cause serious harm to the environment, leading to issues like climate change, loss of biodiversity, and pollution.
• There is an urgent need for renewable energy sources, particularly in large and developing nations such as India. These countries face challenges like energy insecurity, climate change, a growing population, and poverty.
• Sustainable and clean energy solutions are crucial for promoting economic growth, ensuring social well-being, and protecting the environment.

Biofuels:

Biofuels are renewable fuels made from biological materials such as plants, algae, and organic waste. They provide an alternative to fossil fuels and contribute to reducing carbon emissions. Biofuels are classified into different generations based on their sources and production methods:

Types of Biofuels

First-Generation Biofuels:

• Source: Derived from food crops like sugarcane, corn, and vegetable oils.
• Examples: Ethanol (from sugarcane, corn), Biodiesel (from vegetable oils).

Second-Generation Biofuels:

• Source: Produced from non-food biomass such as agricultural waste, wood, and algae.
• Example: Cellulosic ethanol (from crop residues, wood chips).

Third-Generation Biofuels:

• Source: Made from specially cultivated energy sources like algae, which produce high oil yields.
• Example: Algal biofuel.

Fourth-Generation Biofuels:

• Techniques: Involves advanced methods such as synthetic biology and carbon capture to enhance fuel production.

Biofuels: Types and Examples

• Ethanol: Often mixed with petrol to lower emissions and improve air quality.
• Biodiesel: Used as a renewable alternative to traditional diesel fuel.
• Biogas: Produced through the decomposition of organic waste materials, such as food scraps and agricultural residues.
• Green Hydrogen: Generated using bio-based processes, offering a clean and sustainable energy source.

India’s Biofuel Initiatives

India’s biofuel initiatives, which began in 2003, aimed to promote the use of bioethanol and biodiesel. The country focused on using molasses for bioethanol and non-edible oils for biodiesel. However, several challenges have affected the consistent development of biofuels in India:

• The production of sugar and ethanol is cyclical, which impacts the availability of raw materials.
• High costs associated with production and processing make biofuel development challenging.
• Availability of land for growing feedstocks is also a significant constraint.

To overcome these challenges, a coherent and long-term policy is necessary. Such a policy can drive India’s biofuel efforts, ensuring energy security, economic growth, and environmental sustainability. By addressing these issues, India can enhance its biofuel production and contribute to a more sustainable energy future.

Strategic Importance of Biofuels in India

• The Ministry of Petroleum and Natural Gas is focusing on reducing reliance on fossil fuel imports by encouraging the use of alternative fuels.
• Biofuels, which are produced from agricultural and forestry residues, municipal solid waste, and animal waste, offer several advantages:
• Decrease in fossil fuel imports, leading to savings in foreign exchange.
• Improved financial returns for farmers, in line with the objective of doubling farmers’ incomes.
• Effective waste management solutions, contributing to the Swachh Bharat Abhiyan.
• Support for the ‘Make in India’ initiative by fostering indigenous energy solutions.
• Reduction in greenhouse gas emissions, enhancing air and water quality.

Advantages of Biofuels

• Social Benefits: Biofuels have the potential to enhance rural livelihoods by generating job opportunities and promoting sustainable agricultural practices. This shift not only provides employment but also encourages environmentally friendly farming methods.
• Environmental Benefits: One of the significant advantages of biofuels is their contribution to reducing air pollution and combating climate change. Biofuels emit lower carbon levels compared to fossil fuels, making them a cleaner alternative that helps mitigate the adverse effects of climate change.
• Economic Benefits: Transitioning to biofuels can have a positive impact on India’s economy by decreasing the energy import bill. This shift not only strengthens local industries but also stimulates overall economic growth. By reducing reliance on imported fossil fuels, India can enhance its energy security and promote domestic production.

Challenges and the Way Forward

Biofuels hold great potential as a renewable energy source, but they also face several significant challenges that need to be addressed for their successful implementation.

• Land Availability: Expanding the cultivation of biofuel crops must be done in a way that does not compete with food production. This requires careful planning and consideration of land use to ensure that both food and biofuel needs are met.
• High Production Costs: Currently, large-scale production of biofuels is expensive compared to fossil fuels. This cost disparity needs to be addressed to make biofuels a viable alternative on a larger scale.
• Infrastructure and Technology: Advanced biofuel technologies require significant investment and development. Building the necessary infrastructure and advancing technology are critical for the widespread adoption of biofuels.

To overcome these challenges, India should focus on several key areas:

• Investment in Research and Development: Improving the efficiency and production of biofuels through research and development is crucial. This can lead to better technologies and methods for producing biofuels.
• Incentives and Subsidies: Providing incentives and subsidies can help make biofuels more economically viable. This can encourage farmers and producers to invest in biofuel production.
• Public-Private Partnerships: Collaborations between the public and private sectors can drive innovation and commercialization of biofuels. Such partnerships can leverage the strengths of both sectors to advance biofuel technologies.
• Sustainable Land Use Policies: Implementing sustainable land use policies is essential to balance food security and biofuel production. These policies should promote the efficient use of land for both purposes.

Despite the challenges, biofuels represent a viable alternative to high-carbon energy sources and align with India’s goals of sustainable development, energy security, and environmental conservation. With a well-structured policy framework, technological advancements, and strategic investments, biofuels can become a cornerstone of India’s clean energy future. As the country moves towards energy self-sufficiency, biofuels will play a crucial role in shaping a sustainable and resilient economy.

Pragati: Driving India’s Development with Purpose

India’s governance has been significantly transformed with the launch of the PRAGATI (Pro-Active Governance and Timely Implementation) initiative.

• Introduced on 25 March 2015, PRAGATI reflects the principle of ‘Minimum Government, Maximum Governance’ by utilizing technology, transparency, and accountability to accelerate stalled infrastructure projects and policy implementation.
• PRAGATI combines various digital platforms such as PARIVESH, PM Gati Shakti, and the Project Management Group (PMG) to improve decision-making and implementation efficiency.
• The initiative is inspired by SWAGAT (State-Wide Attention on Grievances by Application of Technology), a grievance resolution platform launched in 2003. PRAGATI expands on this concept, evolving it into a comprehensive mechanism for nation-building, project execution, and grievance redressal.

Key Achievements of PRAGATI

• Project Unblocking: PRAGATI has reviewed 340 stalled projects since its start, worth Rs 17.05 lakh crore ($205 billion), ensuring they are completed on time.
• Reduced Delays: Monthly reviews and digital interventions have changed project delays from 3 to 20 years into completion within months.
• Faster Environmental Clearances: Approval times for environmental clearances have been reduced to 70-75 days from 600 days.
• Forest Clearances: Approval times for forest clearances have been cut down to 20-29 days from 300 days.
• CPGRAMS Efficiency: The time taken to redress citizen grievances through CPGRAMS has decreased from 32 days in 2014 to 20 days by 2023.
• Passport Issuance: The time taken to issue passports has been reduced from 16 days in 2014 to 7 days in 2023.

Impressive Results in Important Projects

• Bogibeel Rail and Road Bridge: Finished in 3 years after being delayed for 20 years.
• Jammu-Srinagar Baramulla Rail Link: Overcame delays, now expected to be finished by 2025.
• Navi Mumbai Airport: Resolved land acquisition issues that lasted over 15 years, with an expected launch by December 2024.
• Bengaluru Metro Rail: Faster land acquisition led to the opening of the 42 km, 40-station metro network since 2017.
• Haridaspur-Paradeep Rail Connection: Resolved investor and contractual issues, resulting in its opening in 2020.
• National Highways 8 & 2 (Dahisar-Surat, Varanasi-Aurangabad Sections): PRAGATI reviews sped up progress, ensuring project completion.
• Jal Jeevan Mission: Increased access to tap water in rural households from 17% in 2019 to 74% by February 2024.

National Leadership and Governance Model

The Prime Minister's direct involvement in PRAGATI meetings underscores the initiative's crucial role. His leadership has enabled:

• Quick adjustments for projects that are lagging.
• Immediate decision-making by sending senior officials to the site.
• Better connectivity through faster installation of mobile towers in remote locations.
• Greater bureaucratic efficiency, transforming governance from delays to real-time execution and transparency.
• Cooperative federalism, ensuring smooth collaboration between the Central and State Governments.

PRAGATI’S IMPACT ON OTHER GOVERNMENT INITIATIVES

The technological achievements of PRAGATI have set the stage for digitization in various flagship schemes, leading to enhanced outcomes:

• Swachh Bharat Mission: More than 12 crore toilets have been built, significantly improving rural sanitation.
• Jal Jeevan Mission: Access to tap water has increased from 17% in 2019 to 74% in 2024.
• Saubhagya Scheme: The goal of universal household electrification has been reached.
• Vibrant Villages Programme (VVP): 46 remote villages in the Northeast have been developed as ‘First Villages’ of India.
• Light House Projects (MoHUA): 1,100 houses have been built using digital innovations in just 12 months in a single city.
• SVAMITVA Initiative: Drone-based digitization of land records has been implemented, ensuring land security in rural areas.

Pragati as a Global Benchmark for Governance

PRAGATI has emerged as a leading example of governance for developing countries, showcasing the transformative impact of digital tools, transparency, and strong leadership. Key aspects that set global benchmarks include:

• Tech-driven transparency: The use of real-time monitoring through drone feeds, GPS tracking, and digital dashboards to enhance transparency.
• Combatting corruption: Efforts to reduce red tape and improve the efficiency of resource allocation to combat corruption.
• Citizen participation: A robust feedback mechanism that incorporates public inputs into high-level policy decisions, fostering citizen participation.
• Infrastructure’s GDP impact: Studies by the RBI and NIPFP indicating that every rupee spent on infrastructure generates a GDP gain of Rs 2.5-3.5, highlighting PRAGATI’s multiplier effect.
• PRAGATI exemplifies India’s dedication to effective governance by harnessing technology, cooperative federalism, and decisive leadership. It has expedited project implementation and enhanced public service delivery, demonstrating that digital leadership can be a powerful catalyst for national progress.