Content
- India’s Next Industrial Shift — Electrons over Molecules
- MPLADS (Members of Parliament Local Area Development Scheme)
India’s Next Industrial Shift — Electrons over Molecules
Context
- Global industry is transitioning from fuel-based “molecules” to electricity-based “electrons”, where clean, reliable power determines manufacturing competitiveness, export advantage, capital flows, jobs, and decarbonisation outcomes.
- Industrial policy worldwide now links energy structure with trade competitiveness, carbon norms, and supply-chain positioning, making electrification a priority area (Energy–Industry–Climate nexus).
Relevance
GS-3: Indian Economy
- Industrial competitiveness & manufacturing growth , Energy efficiency and productivity , Export competitiveness under carbon-constrained trade (CBAM) , Infrastructure: power, grids, storage
GS-3: Environment & Climate
- Decarbonisation pathways , Energy transition & Net-Zero 2070 , Low-carbon industrial development
GS-3: Science & Technology
- Electrification, smart grids, digital energy management , Clean-tech adoption in industry
Practice Question
- “The next phase of industrial competitiveness will be determined more by access to clean electricity than by access to fossil fuels.”Discuss in the context of India’s industrial transition from molecules to electrons. Examine opportunities, challenges, and policy priorities. (250 words)
Electrons vs Molecules — Conceptual Basics
Meaning
- Molecules = coal, oil, gas burned for heat and motion; electrons = grid-supplied electricity enabling cleaner, controllable, renewable-linked industrial energy, supporting flexible and low-carbon production systems.
Efficiency Logic
- Electric motors >90% efficiency versus combustion engines <35%, meaning each electrification increase displaces disproportionately higher fuel use, input costs, and emissions, improving energy intensity and productivity metrics.
Decarbonisation Logic
- Electrification allows centralised decarbonisation at generation stage, easier integration of solar, wind, hydro, nuclear, and supports India’s NDC targets and Net-Zero 2070 pathway.
Global Industrial Trends
China’s Strategy — Industrial Electrification
- China sources ~50% of industrial energy from electricity, backed by Ultra-High Voltage (UHV) transmission, grid-scale storage, and massive renewables, deliberately aligning energy policy with export competitiveness.
- Economy-wide electrification (~one-third) is similar to the U.S./EU, but China prioritises industry, strengthening its global manufacturing dominance.
Sectoral Shifts
- EAF steel expanded from 44 Mt (2010) to 106 Mt (2024), supported by scrap recycling ecosystems and preferential tariffs.
- Cement sector uses electrified grinding and 30–35 kWh/tonne waste-heat recovery, showing sustained, policy-driven electrification.
India’s Starting Position
Current Status — Electrification Gap
- Industrial electricity share ~25%, while green electrons only 7–8% of final energy, revealing continued reliance on coal boilers, diesel gensets, and captive fossil systems.
- Despite doubling grid capacity and leading in annual solar additions, industrial absorption of clean power remains limited.
Structural Causes
- Legacy combustion assets, DISCOM reliability concerns, and generation-centric policies slow transition toward all-electric, digitally managed industrial systems.
- Inadequate focus on end-use electrification, storage, and power-quality reforms constrains competitiveness.
Sectoral Pathways
Steel — Opportunity Window
- India produces ~30% steel via EAFs (vs ~70% in U.S.).
- Expanding scrap markets, quality standards, renewable-linked tariffs, and aligning with EU CBAM norms can accelerate low-carbon steel competitiveness.
Cement — Transition Needs
- Electrified kilns, waste-heat recovery, and CCUS hubs are essential as process emissions remain unavoidable.
- Targeting 20% molecule-use reduction per tonne this decade is technologically feasible.
MSMEs — Key Levers
- MSMEs are heavy users of coal and diesel.
- Require concessional finance, electric boilers, induction furnaces, pooled renewable PPAs, and technical support for scalable electrification.
Why It Matters Beyond Climate ?
Competitiveness — Trade Link
- Global buyers prefer low-carbon supply chains; green electrons embedded in production increasingly decide contracts and regulatory acceptance.
- Helps exporters avoid EU CBAM-linked carbon costs.
Energy Security — Import Dependence
- Electrification reduces oil and gas imports, lowers current account pressures, and improves macro-economic stability.
Strategic Sovereignty — Industrial Geography
- Electron-driven industries locate near skills, logistics, and markets, not fuel sources, enabling balanced regional industrialisation.
Challenges
Grid & Finance Constraints
- High upfront capital costs, storage deficits, and grid reliability issues limit electrification.
- Continuous-process industries require stable, high-quality, uninterrupted power, raising infrastructure demands.
Way Forward
Strategic Actions
- Launch a National Industrial Electrification Mission.
- Raise grid and storage investments.
- Mandate electrification-ready industrial parks.
- Incentivise green power uptake through tariffs and market instruments.
- Deploy digital demand-response and smart energy management systems.
MPLADS (Members of Parliament Local Area Development Scheme)
Context & Trigger
Recent Controversy
- Allegations of cross-State MPLADS allocations by Rajasthan MPs to works in Kaithal (Haryana) revived debate on guideline compliance, political neutrality, and federal propriety.
- As per 2023 MPLADS Guidelines, MPs may recommend works up to ₹50 lakh annually outside constituency/State, and up to ₹1 crore during severe natural calamities, making disputes largely about interpretation, not legality.
Relevance
GS-2: Governance & Polity
- Role of MPs in development , Centre–district administrative relations ,Accountability & transparency in public funds ,Debate on separation of powers
GS-2: Social Justice
- Last-mile delivery & local infrastructure , Decentralised development
Practice Question
- Critically examine the role of the MPLADS scheme in promoting decentralised development. Should the scheme be strengthened, reformed, or discontinued? (250 words)
Scheme Architecture
Design & Administration
- Launched: December 1993 as a Central Sector Scheme, fully funded by Government of India, administered by MoSPI via district authorities.
- MPs recommend works; funds are released to district administrations, which execute and monitor projects — ensuring MPs do not handle funds directly.
Core Objective
- Creation of durable community assets: roads, school buildings, drinking water facilities, sanitation, and public infrastructure addressing locally felt developmental gaps.
Financial Norms
- ₹5 crore per MP per year entitlement.
- Funds are non-lapsable within scheme rules.
- Emphasis on asset creation, not revenue expenditure.
Utilisation Trends
Recent Lok Sabha Performance
- 18th Lok Sabha: ₹5,486 crore allocated; ₹1,453.69 crore spent so far — reflects ongoing project cycles, not necessarily underperformance.
- 17th Lok Sabha:
- Allocation: ₹4,837.87 crore
- Spent: ₹3,639.53 crore (75.23%)
- Works: 41,143 completed out of 96,211
- COVID-19 disruptions partly explain incomplete works.
Historical Efficiency
- 16th Lok Sabha: only 8.7% funds unused.
- 15th Lok Sabha: 3.47% unused.
- 14th Lok Sabha: 0.99% unused.
- Trend indicates generally high absorption capacity and continued relevance.
Governance Best Practices
Transparency & Accountability
- Some MPs maintain geotagged, publicly verifiable MPLADS records, enabling citizen monitoring and social audit, strengthening trust and transparency.
Developmental Targeting
- High-performing MPs have prioritised water conservation, rural infrastructure, and basic services, showing MPLADS’ role in micro-level human development.
Administrative Follow-up
- Evidence shows that active monitoring + district coordination significantly improves project completion rates and impact.
Rationale & Governance Logic
Decentralised Development Tool
- Facilitates micro-planning, allowing MPs to address last-mile gaps beyond large schemes like PMGSY or Jal Jeevan Mission.
Democratic Accountability
- Electoral incentives align MPs toward visible public-good delivery, linking representation with development outcomes.
Flexibility
- Useful in heterogeneous constituencies where central/state schemes may not meet hyper-local needs.
Key Challenges & Criticisms
Political Economy Concerns
- Risks of patronage, politicisation, and selective allocation toward politically aligned areas.
Administrative Constraints
- Delays, procedural bottlenecks, and weak monitoring reduce effectiveness despite fund availability.
Institutional Critique
- Perceived blurring of legislature–executive separation, as MPs recommend works though execution is administrative.
Impact Measurement Gap
- Focus remains on expenditure and asset counts, with limited outcome or socio-economic impact evaluation.
Way Forward
Institutional Strengthening
- Conduct capacity-building workshops for MPs on project design, convergence, and impact assessment.
Transparency Reforms
- Universalise real-time dashboards, geotagging, and third-party audits to curb misuse allegations.
Planning Convergence
- Align MPLADS with district plans and SDGs, ensuring complementarity, not duplication.
Outcome Orientation
- Shift toward outcome-based evaluation, measuring service delivery and welfare gains, not just financial utilisation.
