Chapter 7: ENERGY


India's first power plant was a thermal power plant in Darjeeling in 1897. This was followed by a hydroelectric one in 1902 in Karnataka.

The Ministry of Power is tasked with the job of policy formulation, implementation, training and manpower development, hydro and thermal electricity generation and distribution. In technical matters it is assisted by Central Electricity Authority.

Out of the 2.55 lakh MW installed capacity 69% is thermal, 40000 MW is hydro, 31000 is renewable energy, 4700 MW is nuclear.

Ultra Mega Power plant projects with 4000 MW were created at 4 sites under Power finance corporation. Each was awarded to successful bidders.

Power grid corporation is executing the National Grid
project to ensure transmission of energy from natural resource rich regions like Odissa, Jharkhand [coal] , north and north eastern region [hydro] to the demand centers.


Rajiv Gandhi Grameen Vidyutikaran Yojana:

Electrification of all rural household was the target. This scheme launched in 2005 subsumed many smaller schemes. the Rural electric corporation was the nodal agency for this.

Central Electricity authority:

It is a chairman and 13 member body.  8 members can be full time appointed by the government of India. It oversees the development of electricity sector in India.

Ministry of Petroleum and Natural Gas

It is concerned with refining, exploring and importing petroleum and natural gas. Due to energy security needs of India and its heavy dependence on foreign sources which makes it vulnerable to price shocks the Ministry of Petroleum, Natural Gas wants to increase exploration and exploitation of petroleum.

It has increased dependence on domestic sources of renewable energy.
  1. Ethanol blended petroleum: 5% blending of ethanol in petroleum was made mandatory across India except in N-East states, J&K, A&N and Lakshadweep.
  2. Biodiesel purchase policy: This too was launched in 2006 for oil companies to purchase biodiesel and blend in diesel.

Ministry of New and Renewable Energy

Nodal agency at the central level for all matters pertaining to new and renewable energy.

Q.With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?
1. It is a Public Limited Government Company.
2. It is a Non – Banking Financial Company.
Select the correct answer using the code given below. (UPSC CSAT 2015)

  • 1 only

  • 2 only

  • Both 1 and 2

  • Neither 1 or 2

Ans . C

  1. REDA has been awarded “Mini Ratna” (Category -I) status in 2015 by Ministry of New and Renewable Energy (MNRE).

  2. IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 under the administrative control of MNRE to promote, develop and extend financial assistance for renewable energy and energy efficiency /conservation projects with the motto: “ENERGY FOR EVER”.

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