Current Affairs 17 July 2025

Content :

1. Govt. Merges 36 Schemes to Float Farm Plan
2. Share of Clean Energy in Electricity Still Below 30%
3. Govt. Cracks Down on Dumping and Import Surges
4. Study Flags High Summer Ozone Levels in Big Cities
5. Green’ Power Capacity Outpaces Thermal, But Storage Woes Weigh on Grid Stability

Govt. merges 36 schemes to float farm plan

Context : Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY)

• Announced in Union Budget 2025–26.
• Approved by the Union Cabinet in July 2025.
• Aims to enhance agricultural productivity and promote sustainable farming practices.
• Scheme will run for 6 years starting from 2025-26, with an annual outlay of ₹24,000 crore.
• Expected to benefit 1.7 crore farmers across India.
• Termed as a “first-of-its-kind” agriculture-focused mega scheme.

Relevance : GS 3(Agriculture ) , GS 2(Schemes)

Convergence and Integration

• 36 existing schemes from 11 ministries will be merged into PMDDKY.
• The integration will ensure resource optimization, better coordination, and holistic agricultural development.
• Implementation will involve:
  • Central schemes
  • State government initiatives
  • Local partnerships, including private sector collaborations.

Target Areas

• Initially focused on 100 districts identified using:
  • Low agricultural productivity
  • Low cropping intensity
  • Low credit disbursement
• Criticism:
  • Experts argue that credit disbursement is not the best indicator for district selection.
  • Annual net agricultural income per hectare recommended as a better metric.

Key Components & Interventions

1. Post-Harvest Infrastructure
   1. Creation of storage facilities at the panchayat and block levels.
   1. Aim: Reduce crop wastage and enable better price realization for farmers.
2. Improved Irrigation
   1. Focus on expanding and modernizing irrigation systems.
   1. Promotes water-use efficiency and reduces dependence on rainfall.
3. Access to Credit
   1. Facilitation of both short-term and long-term institutional credit.
   1. Aims to reduce dependence on informal lenders.
4. Sustainable Agriculture Promotion
   1. Encourages:
      1. Natural farming
      1. Organic farming
      1. Conservation of soil health and water
   1. Part of a larger push towards resilient and eco-friendly agriculture.
5. Crop Diversification
   1. Shift from mono-cropping to diverse cropping systems.
   1. Enhances resilience to climate and market shocks.
6. Promotion of Allied Activities
   1. Support for:
      1. Animal husbandry
      1. Fisheries
      1. Beekeeping
      1. Horticulture
   1. Boosts income diversification for farmers.
7. Value Addition and Livelihoods
   1. Encourages local processing, branding, and market linkages.
   1. Will promote local employment and entrepreneurship.

Institutional Mechanism

• District-level Committees:
  • District Dhan Dhaanya Samiti will finalize the District Agriculture and Allied Activities Plan.
  • Members will include progressive farmers, officials, and stakeholders.
• State and National Level Committees:
  • Ensure planning, fund utilization, and policy alignment.
  • Monthly monitoring for outcome-based evaluation.

Conclusion

• PMDDKY represents a strategic consolidation of India’s fragmented agricultural schemes.
• If implemented effectively, it can:
  • Improve sustainability
  • Foster innovation
  • Support inclusive rural development
• However, its success will hinge on effective implementation, accurate district targeting, and robust monitoring mechanisms.

Share of clean energy in electricity still below 30%

Context & Significance

• India has achieved a major milestone in its clean energy journey by ensuring that 50% of its total installed electricity capacity now comes from non-fossil fuel sources.
• This target was achieved five years ahead of its commitment under the Nationally Determined Contributions (NDCs) to the Paris Climate Agreement.
• However, despite this success in installed capacity, the actual share of clean energy in electricity supplied to consumers remains below 30%.

Relevance : GS 3(Energy and Environment)

Installed Capacity vs. Actual Electricity Supply

• Installed Capacity: Refers to the total potential a power source can produce under ideal conditions.
  • India’s installed clean energy capacity has now reached 484 gigawatts (GW).
  • This includes solar, wind, hydro, biomass, nuclear, and other non-fossil fuel sources.
• Actual Electricity Supplied: Represents the amount of electricity actually generated and delivered to consumers.
  • Despite 50% of capacity being clean, only 28–30% of electricity generation currently comes from these sources.
  • This gap is due to the lower efficiency and variability of renewable sources.

Historical Progress (2014–2024)

• In 2014, the share of clean energy in total electricity generated was around 17%.
• By April 2024, this increased to 28%, highlighting steady growth but also the limitations of renewable energy output.
• The growth in capacity is attributed to policy pushes and leadership focus, especially under Prime Minister Narendra Modi.

Understanding Capacity Utilisation Factor (CUF)

• CUF = (Actual energy generated / Maximum possible energy generation) × 100
• It measures how effectively installed capacity is used.
• Clean energy sources generally have lower CUF compared to conventional ones:
  • Solar CUF: ~20%
  • Wind CUF: 25–30%
  • Coal CUF: ~60%
  • Nuclear CUF: ~80%
• Hence, although clean energy’s installed capacity is high, its actual output remains limited.

Technical & Structural Challenges

1. Intermittency of Renewables:
   1. Solar and wind are weather-dependent and time-bound.
   1. Solar generation peaks during the day, but evening demand remains unmet.
   1. Energy cannot be stored efficiently with current technologies.

• Inflexible Grid Infrastructure:
  • India’s grid does not yet allow time-of-day pricing for electricity.
  • Consumers pay the same price per unit, whether it’s cheap solar in the afternoon or expensive coal at night.

• High Coal Dependence:
  • Coal still supplies ~75% of India’s daily electricity needs.
  • Coal remains more reliable due to its ability to run continuously.
  • Even when renewable output increases, the base-load requirement is still met by coal.

Solutions and the Way Forward

1. Grid Flexibility & Smart Management:
   1. Implement time-differentiated tariffs to encourage day-time electricity usage.
   1. Adopt smart meters and smart grid technologies for real-time monitoring and flexibility.

• Investment in Battery Storage:
  • Efficient storage will help store excess solar/wind energy and use it during peak demand (especially evenings).
  • Storage will improve overall CUF and reliability of clean energy.
  • This will reduce coal demand during peak hours.

• Hybrid Energy Projects:
  • Combine solar + wind + hydro + storage to balance intermittency.
  • Hybrid systems offer round-the-clock power supply.
  • Such integrated models are being promoted for peak and base load balance.

• Policy Innovations:
  • Encourage differential power tariffs based on time and source.
  • Shift incentives toward dispatchable renewables.
  • Prioritize investment in energy storage, inverter technology, and load management systems.

Expert Opinions

• Saurabh Kumar, Vice-President, Global Energy Alliance:
  • Highlights need for “differential pricing” similar to the early telecom sector (e.g., night-call pricing).
  • Emphasizes the need for battery storage and grid reform to fully utilize clean energy.
• Arunendra Kumar Tiwari, Fellow, TERI:
  • Stresses that solar’s CUF is low, limiting its contribution despite high capacity.
  • Notes that coal and nuclear outperform renewables in actual energy generation.

Broader Implications

• India’s clean energy journey demonstrates policy success in capacity building.
• However, future efforts must focus on:
  • Efficiency, not just installation.
  • Technology adoption, especially in storage and smart grids.
  • Consumer behaviour change, through time-of-day pricing.
• Balancing energy security, affordability, and sustainability remains the core challenge.

Govt. Cracks Down on Dumping and Import Surges

Context

To protect domestic industry from unfair trade practices, the Indian government has intensified scrutiny of import surges and dumping.

Relevance : GS 3(Indian Economy- Anti Dumping , Import, Export)

Key Developments

• Anti-Dumping Actions (June 2025):
  • Directorate General of Trade Remedies (DGTR) initiated 8 anti-dumping investigations.
  • Targeted products from 12 countries/groupings:
    • Countries involved: China, Taiwan, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, UAE, Switzerland, EU, Egypt, Indonesia.
    • Products: Industrial chemicals, glass wool, paperboards.

• Import Monitoring Mechanism:
  • Department of Commerce is monitoring all commodities for unusual import surges.
  • Data shared with other ministries to enable coordinated monitoring.

• Use of DGFT to Counter Malpractices:
  • Directorate General of Foreign Trade (DGFT) empowered to restrict imports suspected of malpractice.
  • Example: DGFT restricted imports of alloys (palladium, rhodium, iridium with >1% gold) as gold was being misdeclared to evade duty.

Static Concepts: Anti-Dumping & Import Surge

• Dumping:
  • Exporting a product at a price lower than its normal value (often below cost or domestic price).
  • Harms domestic industries through unfair price competition.
• Anti-Dumping Duty:
  • Levied by importing countries to counteract dumping and restore fair trade.
• DGTR (Directorate General of Trade Remedies):
  • Apex authority for investigating trade remedy cases: anti-dumping, countervailing, and safeguard measures.
• Import Surge:
  • Sudden spike in imports, potentially harming domestic producers even without dumping.

Why It Matters?

• Ensures a level playing field for Indian industries.
• Prevents misuse of free trade provisions and duty evasion.
• Strengthens Atmanirbhar Bharat and domestic manufacturing.

Anti-Dumping: Basics

• Definition: Dumping refers to exporting goods at prices lower than their normal value (often below cost or domestic price).
• Anti-Dumping Duty: A tariff imposed by a country to protect its domestic industry from unfairly priced imports.

Anti-Dumping in India

• Authority: Investigated and recommended by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce.
• Legal Basis: Governed by the Customs Tariff Act, 1975 and WTO Agreement on Anti-Dumping (to which India is a signatory).

Objectives

• Protect domestic industries from injury due to dumped imports.
• Ensure fair competition, not to restrict legitimate trade.
• Provide a level playing field, not as protectionism.

Study flags high summer ozone levels in big cities

Key Findings: Summer 2025 Ozone (O₃) Crisis

• Ozone levels exceeded prescribed limits for over ⅓ of summer days (March–May) in major cities.
• Study by: Centre for Science and Environment (CSE)
• Data Source: 80 ambient AQ monitoring stations in Mumbai, Kolkata, Bengaluru, Chennai, Hyderabad, Delhi.

Relevance : GS 3(Environment and Climate Change )

City-wise Breaches in Ozone Standards

Technical Insight

• Standard Breach Definition: 8-hour average > 100 µg/m³, as per National Ambient Air Quality Standards (NAAQS).
• O₃ is not directly emitted, but forms via photochemical reaction (sunlight + NOx + VOCs).
• Not monitored over 24-hour avg (unlike PM2.5/PM10) due to high reactivity.

Public Health Implications

• Ground-level ozone:
  • Triggers respiratory illnesses, asthma, infections.
  • Reduces lung function, especially in children & elderly.
• High temperatures + solar radiation → higher O₃ spikes in summers.

Expert View

“If unchecked, ozone pollution could become a serious public health crisis.” – Anumita Roychowdhury, CSE

Broader Pattern

• Indian megacities now consistently exceed ozone norms in summers.
• Northern India (e.g., Delhi) most affected due to:
  • Temperature inversion
  • Vehicular + industrial pollution

Ozone: Basics

• Ozone (O₃) is a triatomic molecule made of three oxygen atoms.
• Found in two layers:
  • Stratospheric ozone (good ozone): Forms the ozone layer, protects life by absorbing harmful UV-B radiation.
  • Tropospheric ozone (bad ozone): Acts as a pollutant and greenhouse gas, harmful to health and crops.

Ozone Layer & Its Importance

• Located in the stratosphere (10–50 km altitude).
• Absorbs 97–99% of the Sun’s medium-frequency ultraviolet light.
• Prevents skin cancer, cataracts, and damage to plants/marine ecosystems.

Ozone Depletion

• Caused by Ozone-Depleting Substances (ODS) like:
  • CFCs (chlorofluorocarbons)
  • Halons, Carbon tetrachloride, Methyl bromide
• Major ozone hole detected over Antarctica.

Global Measures

• Vienna Convention (1985): Framework for international cooperation.
• Montreal Protocol (1987): Legally binding treaty to phase out ODS.
• Kigali Amendment (2016): Added phase-down of HFCs (climate pollutants, not ODS).

Green’ power capacity outpaces thermal, but storage woes weigh on grid stability

India’s Key Milestone

• 50.1% of India’s installed electricity capacity now comes from non-fossil fuel sources.
  • Target achieved 5 years ahead of 2030 Paris commitment (40% originally, revised to 50% in 2022).

Relevance : GS 3(Energy and Environment)

Installed Capacity (in GW)

• Total Installed Capacity (2025): 484.82 GW
• Thermal Share: 49.9% (still dominant in absolute capacity)

Thermal Still Dominates

• Despite non-fossil surpassing in % share, thermal plants are critical for base load.
• India’s thermal capacity rose by just 11 GW in 5 years, but still forms the grid backbone.

Storage Capacity – Major Bottleneck

• India’s storage capacity (2024):
  • Pumped Hydro: 4.75 GW
  • Battery Storage: 110 MW
  • Total < 5 GW, insufficient for smooth renewable integration.

Grid Instability Events

• May 30, 2024: Peak demand unmet due to low renewables and lack of backup.
• Erratic pricing and curtailments seen when solar/wind exceeds demand.

Policy Measures Underway

• CEA Advisory (Feb 2025): Co-locate storage with solar.
• Viability Gap Funding Scheme:
  • ₹5,400 crore for 31 GWh battery storage.
  • 51 GWh pumped hydro expected by 2032.
• ISTS Waiver Extended till June 2028 to boost storage projects.

Strategic Implications

• Capacity milestone ≠ energy transition success.
• Storage, grid flexibility, and real-time pricing are the next frontiers.
• India needs policy speed, not just policy vision, to match non-fossil growth with reliability.