UPSC Prelims 2018 · Question 67 of 99

UPSC Prelims 2018 question on Solar Power India

With reference to solar power production in India, consider the following statements:

1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.

2. The solar power tariffs are determined by the Solar Energy Corporation of India.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: D. Neither 1 nor 2

Verdict

Neither statement is correct, so the answer is (d) Neither 1 nor 2.

Statement by statement

Statement 1 is INCORRECT. Making solar panels begins with polysilicon, which is formed into ingots, cut into wafers, made into cells, and strung into modules. In India only modules and cells are made, using imported material, so India is not a major manufacturer of silicon wafers at all. The sole incentive available has been the Modified Special Incentive Package Scheme, open to all electronics manufacturers, which has had few takers.

Statement 2 is INCORRECT. The Solar Energy Corporation of India is a central public sector undertaking under the Ministry of New and Renewable Energy, which develops large scale solar installations and parks and promotes solar energy. Solar power tariffs are determined either through the regulations of the Central or State Electricity Regulatory Commissions or through competitive bidding.

Source

The Hindu BusinessLine report on Indian solar cell and module manufacture, quoting MNRE.

How to crack it

Statement 2 falls to a structural principle rather than a fact. Tariff setting in Indian electricity is a regulatory function belonging to Electricity Regulatory Commissions, so a promotional corporation does not set tariffs. Separate the promoter from the regulator, and the same reasoning covers questions across power, telecom and insurance.

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