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UPSC Prelims 2018 Q67: Science & Technology – Energy & Environment

UPSC Prelims 2018, General Studies Paper I · Science & Technology

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. (a) 1 only
  2. (b) 2 only
  3. (c) Both 1 and 2
  4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

Explanation

Solar Power in India - Manufacturing and Tariffs

StatementClaimVerdictDetail
1India is the 3rd largest producer of silicon wafers for PVFALSEIndia is heavily import-dependent for solar components. China dominates global production of polysilicon, wafers, cells and modules (~80% market share). India was NOT in top 3 for silicon wafers as of 2018; still building capacity under PLI schemes.
2Solar power tariffs are determined by SECIFALSESolar tariffs are discovered through competitive reverse auctions/bidding conducted by SECI, NTPC and states. SECI conducts the auction but does NOT set the tariff - the tariff is the outcome of market bidding. Grid-connected tariffs are also subject to determination/approval by CERC (Central Electricity Regulatory Commission) for inter-state transactions and SERCs for intra-state.

Answer: (d) Neither 1 nor 2.

Why each option is right or wrong

Key point

India's solar reality (2018): Heavy import dependence on China for cells/modules/wafers. Tariffs = reverse auction discovery (SECI, NTPC, states). Regulator = CERC (inter-state) / SERCs (intra-state). Domestic manufacturing pushed via PLI schemes post-2020.

Remember

As of 2018, India was NOT the third largest producer of silicon wafers - global PV manufacturing was dominated by China, and India was import-dependent. Solar power tariffs in India are discovered through competitive reverse auctions (conducted by SECI, NTPC, or states), not determined by SECI itself. Tariff regulation is handled by CERC (inter-state) and SERCs (intra-state).

Common mistakes

Exam tip

India solar ecosystem: MNRE = policy. SECI = intermediary/aggregator + auctions. CERC/SERCs = tariff regulation. Discom = buyer. Developers = builders. Manufacturing largely imported from China; PLI to change this.

Sources

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