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1.     Examine how digital transformation of the Public Distribution System (PDS) in India has helped
       in addressing the challenges besetting it. (Answer in 150 words)                            10
Approach:
      • Give a brief context about the Public Distribution System (PDS).
      • Highlight the challenges faced by the PDS in India.
      • Write about the impact of digital transformation on the Public Distribution System.
      • Conclude by briefly suggesting some measures that need to be taken further.
Answer:
       The Public Distribution System (PDS) has evolved as a system of management of scarcity through
       distribution of food grains at affordable prices. It has the objective to provide food and nutritional
       security, stabilize food prices, redistribution of food, and maintain buffer stock.
       However, the PDS in India has been beset with certain challenges, including:
       •   Bogus cards and ghost beneficiaries: Due to the ghost beneficiaries, grains are deflected to the
           open markets and sold at higher prices, which leads to the shortage of food grains for the deprived
           and vulnerable people. For instance, it was revealed in 2020 that nearly 22% of PDS cards in
           Chhattisgarh were found to be bogus (16 lakh PDS cards out of 72 lakh cards).
       •   Identification failures and denial of entitlements: Due to factors like poor quality of
           fingerprints, intermittent network, non-possession of the Aadhaar or failure of biometric
           authentication, many deserving families do not get rations.
       •   Leakages: According to the NSSO (2011-2012), leakage in PDS is about 46.7 percent due to
           leakages of the food grains during transportation.
       •   Differentiated impact on married women: When a woman marries and leaves a qualifying
           household to join another, she must register on the new family ration card to ensure that she
           continues to receive food rations. However, doing so is a cumbersome process, which has left
           many women without access to subsidised food.
       To address these issues, there has been a push towards digitizing the PDS over the last couple of
       years. The initiatives include linkage with Aadhaar card and maintenance of digital records at Fair
       Price Shops.
       These initiatives have led to the following impact on the Public Distribution System:
       •   Increased transparency: End-to-end computerization has resulted in increased efficiency and
           transparency of the distribution (allocation, inventory, tracking) as witnessed in Chhattisgarh,
           Tamil Nadu, Delhi and Madhya Pradesh. Also, smart ration cards have features of data storage
           and check on counterfeiting. It is being implemented in Haryana, Andhra Pradesh and Odisha.
       •   Identification of rightful beneficiaries: Electronic Point of Sale (ePoS) devices are being
           installed at Fair Price Shops (FPSs) for distribution of food grains through authentication and
           electronic record-keeping of the sale transactions. At present, out of 5.33 lakh Fair Price Shops
           (FPSs), about 5.07 lakh (95.0%) of FPSs have ePoS devices that confirm identification through
           biometric/Aadhaar authentication.
       •   Tracking: GPS is being used in tracking movement of trucks from depot to FPS, thus providing a
           strict vigil on any diversion and leakage of food grains.
       •   Data collection and storage: IM-PDS and Annavitran portals that are parts of ‘One Nation,
           One Ration Card (ONORC)’ provide a central repository of all ration cards and beneficiaries’ data-
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                portability. The Annavitran portal hosts the data of distribution of food grains through E-PoS
                devices within a state.
          Providing better connectivity, faster network, installing more devices per shop, establishing
          additional call centers to address technical queries, analyzing the technology adoption behaviour for
          improved policies and promoting digital literacy can further help address the issues pertaining to the
          PDS.
    2.    Discuss how poor grain management has been a greater challenge to food security in India than
          the actual shortage of grains. (Answer in 150 words)                                       10
    Approach:
          •     Substantiate in introduction that there is no shortage of food grain in India, but still food security
                is an issue.
          •     Highlight upon the issue of poor grain management in India.
          •     Conclude accordingly.
    Answer:
          India is not only self-sufficient in food-grain production (300 million tons in 2019-20), but is also a
          net food exporter (9th largest exporter of agriproducts). Despite this, nearly 16% of the population is
          undernourished, 35.5% children are facing chronic hunger i.e., stunting and 19.3% are facing acute
          hunger i.e., wasting (NFHS-5 reports).
          It appears that the greater challenge to food security in India is not actual shortage of food grain, but
          its poor management, because:
          •     Post-harvest losses: As per Indian Grain Management and Research Institute, post-harvest
                losses in India due to unscientific storage, and infestation by insects, rodents, micro-organisms,
                etc. account for about 10% of total food grains. This amount could have fed one-third of India’s
                poor (World Bank).
          •     Lack of adequate storage Infrastructure with FCI and Warehousing corporations:
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                o Due to lack of covered godowns and silos, most of the procured foodgrain are kept under
                     Cover and Plinth (CAP) storage, which does not fulfil the temperature and moisture
                     requirements for longer shelf life.
                o During bumper harvest, many times the produced grains are kept in the open, this leads to
                     damage and destruction due to seeping water and excessive exposure, spoiling the crops.
                o There are delays in disposing off the rotting grains, which leads to further contamination and
                     loss.
          •     Procurement above buffer stock norms: It has been observed that the amount of foodgrain
                procured is much higher than the required buffer norms. For instance, at present, India has 227
                lakh tons of wheat in government godowns against the required buffer norm of 205 lakh tons. It
                poses multiple issues, such as:
                o It reduces the budget for creating infrastructure.
                o In the absence of adequate storage facilities, the extra foodgrain is left to rot.
                o Such procurements distort the market price of foodgrains, creating accessibility issues for
                     those poor who are not covered under PDS. Currently, only 67% of the country's population
                     is covered under NFSA.
          •     Issues in distribution of food-grain: Though the procurement of foodgrain is open-ended, its
                distribution is limited through PDS only, which puts the burden of infrastructure creation
                completely on the government. The private sector participation has been very limited in this
                regard.
          To resolve the issue of foodgrain storage, the Indian government has come up with the Private
          Entrepreneurship Guarantee Scheme (2008) and an action plan for construction of steel silos
          (2017-22) in PPP mode. It is being expected that it would substantially reduce the unscientific storage
          of foodgrains from 2022, as adequate storage has been created. To further resolve the food security
          crisis the government must work upon the recommendation of Shanta Kumar Committee (2015).
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4.    Explain what you understand        by urban
                             For More Visit        agriculture and state its types. Also, discuss its
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      significance in the context of India. (Answer in 150 words)                                 10
Approach:
      •     Introduce by giving definition of urban agriculture.
      •     Mention its various types.
      •     Discuss its significance in brief.
      •     Conclude accordingly.
Answer:
      Urban agriculture refers to agricultural practices followed in urban and peri-urban areas i.e.
      growing of plants and the rearing of animals primarily for food and other domestic use within a city
      or a town. It also involves activities such as the production, processing, marketing, and delivery of
      farming products.
      Urban agriculture has different types:
      •     Backyard Gardens: Backyard Garden farming is a type of urban farming carried out on the house
            property to grow food which if surplus is shared among neighbours, friends and family.
      •     Street Landscaping: In this type of urban farming, grass, landscaping, street trees, vegetation
            and others are produced in the private streets in the society or community.
      •     Vertical Farms: Vertical farming is the practice of producing crops vertically stacked. It also
            provides controlled environment farming. Vertical farming aims to optimize crop growth.
      •     Forest Gardening: Forest gardening is the practice of having grown gardens in the urban forest.
            In this type, different types of crops are produced.
      •     Rooftop Gardens: Rooftop gardens provide temperature control, architectural enhancement,
            corridors for wildlife, habitats, and recreational opportunities with decorative benefits.
      •     Aquaponics: In aquaponics, fishes are raised in water tanks. In these tanks, plants are also grown,
            and the waste from the fish gives manure to the plants.
      •     Urban Beekeeping: It is also known as backyard beekeeping or hobby beekeeping. It is said that
            bees from the city are healthier and more productive.
      •     Greenhouse: It includes the practice of agriculture in commercial, residential and communal
            urban spaces. It helps farmers to increase their yield and performance with improved quality.
      Significance for India
      •     Decentralised Production: Small-scale decentralised production can supplement diets at
            household or community level.
      •     Environment Management: Urban agriculture can combat urban heat island effect and function
            as an urban lung in addition to providing visual appeal. Additionally, it brings purposeful
            recreation that has a direct impact on city health.
      •     Eco-Cultural Learning: Urban agriculture helps city-dwellers to establish linkages with nature
            and educate them in its richness and diversity.
      •     Waste Management: The use of suitably treated wastewater for urban agriculture can reduce
            demand for fresh water and help in waste water disposal.
            o Moreover, organic waste from the city can be composted and used in food and flower
                production that can reduce the total quantum of waste and it’s dumping on land, thereby,
                reducing the requirement of landfills.
      •     Employment Generation: It can add to the number of jobs and improve livelihood opportunities
            in the cities and generate some income, especially for the poor.
      As urban populations grow, urban agriculture must become vital to municipal functions. Similarly,
      urban plans must include urban agriculture in their land-use strategies.
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5.    The advent of climateFor
                            change
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                                      leading  to the revival of cultivation of millets. Discuss. Also,
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      mention the steps taken by the government to give an impetus to millet production in India.
      (Answer in 150 words)                                                                         10
Approach:
      •     Briefly discuss the impact of climate change on agriculture.
      •     Elaborate on the reasons for revival of millets in the wake of climate change.
      •     Enumerate the various steps taken for millet production in India.
      •     Conclude appropriately.
Answer:
      Agricultural sector is one of the sectors most sensitive to climate change because the climate of a
      region determines the nature and characteristics of vegetation and crops. In such a situation, there is
      a need to look for crops, which can survive the ongoing climate change.
      In this context, the cultivation of millets is being revived owing to the following reasons:
      •     Millets are hardy crops that can thrive in varying agro-climate regions, and can withstand
            extreme temperatures and droughts. Some varieties of pearl millets survive at temperatures
            up to 46 degrees Celsius.
      •     These crops help mitigate the effects of climate change through their lower carbon footprint per
            hectare as compared to wheat and rice.
      •     Millets also require less water than rice, sugarcane and wheat. They grow well in dry zones as
            rain-fed crops.
      •     They grow well on poor soils as well. In many areas, millets are cultivated on grazing lands,
            which were unused for any other profitable work prior to this.
      •     Their cultivation cost is lesser when compared to other crops since millets are mostly cultivated
            on natural farming-based techniques, eliminating a lot of other input costs.
      •     Millets are called ‘famine reserves’ as they have a short growing season of 65 days and can be
            stored for two years or beyond.
      Moreover, climate change, which is now impacting agricultural production and food stability,
      threatens nutritional security as well. In this context, millets gain importance as they act as rich
      sources of macronutrients and micronutrients, with high levels of calcium, iron, zinc, potassium,
      protein and essential amino acids. They are non-glutinous and rich in antioxidants as well.
      India currently has around 14 million hectares of land under millets cultivation. Further, according
      to the fourth advance estimates for the year 2021-22, about 16 million tonnes of millets have been
      produced in India, which is about 5 percent of the national food grain basket. Considering the
      benefits, various steps have been taken by the government to promote millet cultivation, including:
      •     Initiative for Nutritional Security through Intensive Millet Promotion (INSIMP), which was
            launched in 2011-12 to promote millets as “nutri-cereals” and enhance India's nutritional
            security. It is a part of Rashtriya Krishi Vikas Yojana.
      •     The government declared 2018 as National Year of Millets and launched Millet Mission as
            part of the National Food Security Mission, which has led to the promotion of technological
            interventions, improvement in seed quality and a minimum support price (MSP).
      •     Integrated Cereals Development Programmes in Coarse Cereals under Macro Management of
            Agriculture scheme to increase the overall productivity under specific crop-based systems.
      •     The government allowed inclusion of “nutri- cereals” in the Public Distribution System (PDS)
            and the Mid-Day Meal scheme.
      •     State governments have launched several schemes to give an impetus to production of millets,
            such as Odisha Millets Mission.
      With 2023 being the UN-designated International Year of Millets, there is a need to promote and
      strengthen the value chain for millets and millet-based products, including the ready-to-eat category.
      Millets are being increasingly recognised as climate-smart crops with enormous nutritional and
      health benefits.
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6.     The World Economic Forum   (WEF)
                             For More     in its
                                       Visit     latest report stated that drones have the potential to be
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       the harbinger of “technology-led transformation” of Indian agriculture. Discuss. (Answer in 150
       words)                                                                                          10
Approach:
      • Introduce with the context of technology led transformation of Indian agriculture.
      • Write about the potential of drones in this technology led transformation of Indian agriculture.
      • Mention briefly concerns associated with the use of drones.
      • Conclude accordingly.
Answer:
       In its latest report, the World Economic Forum (WEF) pointed out that a well-orchestrated set of
       interventions can add nearly $100 billion to GDP and help India leapfrog multiple challenges in the
       agriculture sector with the use of technology like drones. The potential of the drones in order to be
       the harbinger of “technology-led transformation” of Indian agriculture is evident from its following
       advantages:
       •   Streamlining of schemes: Through a method called drone photogrammetry, drones can help
           farmers and agronomists create highly accurate maps and 3D models of the area. These drones’
           data integrated with GIS and Google Earth satellite images will eventually streamline schemes
           like Pradhan Mantri Fasal Beema Yojana by aiding crop-cutting experiments, crop-loss
           estimation, insurance determination, and dispute resolution.
       •   Capturing backward and forward linkages: With objective and standardized data on crop
           quality, food processing industries will procure from farmers at better prices. Further, Agri-
           exports will also increase with technology-supporting compliance with global standards.
       •   Improved crop yields: Drones allow farmers to obtain crop data fast through multispectral
           sensors and frequently, this keeps them on top of things like irrigation issues, plant disease and
           soil condition. Through precision agriculture, farmers and agronomists can improve overall
           crop yield by data-driven variable rate prescription.
       •   Help fight climate change: By reducing the use of chemicals through data-driven targeted
           treatment and reducing the need of fossil fuel as drones are powered by intelligent batteries, they
           can help reduce pollution and fight against climate change.
       •   Livestock tracking: Thermal sensor technology using drones can help find lost animals and
           detect any injury or sickness. Thus, it allows the farmers not only to keep track of their crops but
           also monitor the movement of their cattle.
       However, following are some of the concerns associated with the use of drones in agriculture:
       •   High initial investment: The majority of agricultural drones used for surveying have fixed wings
           and have huge initial investment depending on the features and sensors required to carry out
           their intended function.
       •   Weather dependency of drones: Drones are difficult to fly in windy or rainy conditions.
       •   Improper internet connectivity across farms: There are issues in drone operations due to poor
           4G connectivity in rural areas.
       •   Unskilled end user: Drone images require specialized skills and knowledge to translate into
           useful information, which an average farmer lacks.
       In India’s $600 billion agriculture sector, drones are currently used for pesticide and nutrient
       application, mapping water-spread area, sampling water, mapping macrophyte infestation etc.
       Consultations may be held with experienced strategic partners like Israel where AI-enabled drones
       are used for mapping plots, assessing crop damage, etc. in order to address the inherent challenges
       and enhance the use of drones in Indian Agriculture.
7.     The regional connectivity scheme (RCS) completed five years some time back. In this context,
       evaluate the success of the scheme in achieving its stated objectives. (Answer in 150 words) 10
Approach:
      • Briefly state the objectives of the regional connectivity scheme.
      • Bring out the achievements of the scheme.
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      •     Highlight the areasFor
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      •     Conclude accordingly.
Answer:
      Though India is the world’s third-largest market in the aviation sector, according to a study by
      the Ministry of Civil Aviation, 65 per cent air connectivity and 61 per cent traffic was focused only
      in the six metros till 2016. Therefore, the government launched Regional Connectivity Scheme
      (RCS) or UDAN, with an objective to connect small and medium cities with big cities through air
      service. It seeks to fulfill the common citizen’s dream of air travel by providing connectivity to un-
      served and under-served regions through revival of existing air strips and airports.
      The scheme has been able to achieve following successes:
      •     Increased connectivity: Under the scheme, 58 airports, 8 Heliports and 2 water aerodromes
            have been connected and 425 new routes have been initiated.
      •     Lowered the operating cost: According to the Ministry of Civil Aviation, the scheme has been
            successful in lowering the operating cost of airlines by 12-13%.
      •     Increased air traffic: Post the implementation of the scheme, domestic air traffic has seen a 5%
            increase in passenger numbers from smaller cities. Almost 60 lakh people have air travel at
            affordable rates under UDAN scheme.
      •     Ensured Affordability: The government provides subsidies enabling air travel affordable and
            widespread.
      •     Boost to tourism: 46 important tourist spots have been selected under the UDAN scheme to
            promote tourism. These include famous cities like Udaipur, Varanasi & Goa and less explored
            places like Agartala, Aizawl, Shillong and others in the north-east.
      However, the critics are of the view that the scheme is still a work in the progress due to
      following reasons:
      •     Less number of operational routes:
            o Only 403 of the 948 awarded routes under the scheme were operational with airlines shying
                away from using most of the routes, wary of inadequate infrastructure, low demand, lack
                of manpower and capital.
            o Delays in operationalization and discontinuation of various regional airports are attributable
                to delayed upgradation of infrastructure and readiness of airports, lack of adequate right of
                way (including insufficient runway lengths) at some of the RCS airports and delays in securing
                necessary regulatory approvals.
      •     Lack of funds: Till December 2021, the central government had released only about Rs. 2,062.50
            crore of the Rs. 4,500 crore earmarked for reviving existing unserved and underserved airports
            across the country.
      •     Inadequacy of subsidy: Government subsidies on regional connectivity routes often don’t make
            up for the costs borne by the airlines to operate flights as fares on such routes are often capped,
            thus hindering airlines’ ability to make the flights sustainable for the long run.
      Despite certain shortcomings, RCS has been a game changer for India’s internal aviation connectivity.
      Additionally, measures from state governments such as reducing taxes on aviation turbine fuel and
      providing additional incentives for RCS flights could encourage airlines to scale up operations under
      the RCS.
8.    Fertigation can help sustainably grow more food in a changing climate while radically reducing
      the use of precious resources such as water and minimising nutrient losses to the environment.
      Discuss. (Answer in 150 words)                                                              10
Approach:
      •     Briefly discuss the method of fertigation.
      •     State the benefits of the method.
      •     Mention the concerns associated with the fertigation method.
      •     Conclude accordingly.
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          Fertigation is a method of fertilizer application in which fertilizer is incorporated within the irrigation
          water by the drip system. In this system, fertilizer solution is distributed evenly in irrigation. As
          climate changes and water stress increases, there is a great opportunity to encourage the wider
          adoption of fertigation because it has the following advantages:
          •     Greater absorption of nutrients by the crops: Nutrients and water are supplied near the active
                root zone through fertigation, which results in greater absorption by the crops. As water and
                fertilizer are supplied evenly to all the crops through fertigation, there is a possibility for getting
                25-50 per cent higher yield.
          •     Suppressed weed pressure: Weeds use more nutrients in crop rows with furrow irrigation and
                conventional fertilization, whereas drip irrigation and fertigation provide reduced water and
                nutrient resources for weeds.
          •     Enhanced efficiency: Fertilizer use efficiency through fertigation ranges between 80-90 per
                cent, which helps to save a minimum of 25 per cent of nutrients.
          •     Aids in growing crops in various types of soils: It can be used to successfully cultivate crops in
                vast areas of arid and semi-arid lands and other marginal soils not usually deemed
                appropriate for productive agriculture, helping to avoid the potential biodiversity and carbon
                losses that arise when natural ecosystems are converted to farming.
          •     Turns wastewater into resource: By using partially treated wastewater, potentially containing
                additional nutrients, fertigation can also help turn waste into a resource, which is particularly
                important in areas with high water stress, such as heavily urbanized regions. Moreover,
                fertigation with treated wastewater is considered as one of the most economically feasible and
                environmentally friendly methods of wastewater disposal.
          •     Reduced groundwater contamination: Fertigation has been shown to reduce both fertilizer
                input and nutrient leaching. Compared to traditional granular fertilizer systems, fertigation uses
                less fertilizers. Therefore, little water is available for leaching under heavy rainfall events. Less
                leaching potential reduces the risk of groundwater contamination.
          •     Automation and control: Fertigation allows greater control over the crop with automated water
                and fertilizer management, which also results in reduction of labour time.
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          However, there are some concerns associated with fertigation as well such as high upfront cost, the
          need for constant maintenance, clogging risks of drip irrigation pipes, etc. Addressing these
          challenges will help in developing an effective fertigation system, which will aid in ensuring food
          security, sustainable agriculture and better returns on investment to the farmers.
    9.    What is Integrated Pest Management (IPM)? Highlighting its objectives, discuss the various
          components of IPM. (Answer in 150 words)                                                10
    Approach:
          •     Explain the concept of Integrated Pest Management (IPM).
          •     Bring out its objectives.
          •     Discuss the various components of IPM.
          •     Conclude accordingly.
    Answer:
          Integrated Pest Management (IPM) is the careful consideration of all available pest control
          techniques and subsequent integration of appropriate measures that discourage the development of
          pest populations. It combines biological, chemical, physical and crop specific management
          strategies and practices to grow healthy crops and minimize the use of pesticides, reduce or
          minimise risks posed by pesticides to human health and the environment for sustainable pest
          management.
          It is a dynamic process that makes use of an ecological systems approach and has the following
          objectives:
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           •   It promotes sustainable
                                   For Moreagriculture  and seeks to increase farm productivity and food
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    10.    In light of the challenges posed by livestock diseases, discuss the steps taken by the government
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          •     They threaten poorFor families’ food-https://upscpdf.com/
                                        More Visit   security and livelihoods. At the same time, since poor
                smallholders often live in close proximity to their animals, diseases threaten these families’
                health as well.
          •     Presence of diseases deters domestic and foreign investment in the livestock sector. These
                not only wreak havoc on the existing stock but also limit international trade.
          In this regard, the government has taken various steps to tackle the risk of livestock diseases:
          •     Implementing Livestock Health & Disease Control (LH & DC) Scheme, which envisages
                control and containment of economically important animal diseases by providing central
                financial assistance to the states, carrying out vaccination, strengthening veterinary services and
                training veterinarians.
          •     Setting up Animal Quarantine and Certification Services Centers (AQCS) in the country to
                prevent the ingress of exotic animal diseases into the country through imported livestock and
                livestock products.
          •     Providing financial assistance for strengthening the five Regional Disease Diagnostic
                Laboratories (RDDLs) at Jalandhar, Bengaluru, Kolkata, Pune, Guwahati and a Centre for
                Animal Disease Research & Diagnosis (CADRAD) to enhance disease diagnostic facilities in the
                country.
          •     Launching National Artificial Insemination Programme, which aims to suggest novel
                methods of bringing about impregnation in female breeds. It also aims to prevent the spread of
                certain diseases which are genital in nature, thereby enhancing the efficiency of the animal breed.
          •     Approval of the National Animal Disease Control Programme for Foot and Mouth Disease
                (FMD) and Brucellosis (NADCP) for five years (2019-24).
          Livestock sector can help alleviate rural poverty and improving this sector can go a long way in
          doubling farmers’ income besides providing an alternative source of livelihood. Thus, there is a need
          to work towards better disease control management and provide incentives for the same by the
          government.
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    11.   There is a need for interventions to enhance the coal evacuation infrastructure and reduce the
          freight cost to improve the overall competitiveness of coal. Discuss in the context of India.
          (Answer in 250 words)                                                                       15
    Approach:
          •     Giving a brief introduction about the coal sector and discuss the challenges, which call for the
                need for interventions to enhance the coal evacuation logistics.
          •     Discuss the measures that can be taken in this regard.
          •     Briefly bring out the steps that have been taken to enhance the effectiveness of the sector.
          •     Conclude accordingly.
    Answer:
          Coal is the mainstay of the Indian energy sector. The domestic coal production capacity is estimated
          to be 1500 MTPA by 2030. Creating transport infrastructure and managing logistics to transport
          targeted coal produced from point of origin to consumption centers are the major challenges in this
          regard due to the following factors:
          •     Oversized coal leading to higher wagon turnaround adds to freight costs via demurrage and
                also exacerbates the coal supply crisis.
          •     Inefficiency at loading times at colliery sidings as timing of detaining rakes is on the higher side
                that is around 5 hours.
          •     Lack of investments in logistic infrastructure and non-availability of wagons and congestion
                on the rail network thereby making it less efficient.
          •     Limited coal transportation by alternate transportation models and limited logistic planning
                in multi-modal transport.
          Thus, there is also a need for interventions to enhance the coal evacuation infrastructure since the
          growth of coal and other sectors depends heavily on the efficiency of the logistics network. Coal
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           logistics efficiency is For
                                   a function of infrastructure,
                                       More Visit                services i.e. digital systems, processes and
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           regulatory framework as well as human resources. India has taken some initiatives in this regard,
           including:
           •   Freight Operations Information system, which helps to monitor movement of freight trains
               and also calculate freight charges.
           •   Pradhan Mantri Gati Shakti plan to look holistically at the interventions required to be taken
               for reduction of logistic cost for coal evacuation.
           •   Draft Coal Logistic Policy 2022 to ensure availability of adequate coal infrastructure and
               optimize the overall logistic cost of coal.
           However, further measures are required to reduce the freight cost to improve the overall
           competitiveness of coal, such as:
           •   The existing and upcoming coal logistic infrastructure of each region needs to be evaluated
               to identify the challenges and gaps in efficient and environment friendly transportation of coal
               from the mine to the end-use plant.
           •   There is a requirement of ensuring the availability of adequate coal evacuation
               infrastructure and optimization of the total logistic cost of coal in terms of time and price.
           •   An inter-connected multi-modal network of transport infrastructure needs to be promoted
               for efficient movement of coal covering the entire country.
           •   There is a need for modernization i.e. promotion of wider adoption of information and
               communication technology, upgraded infrastructure, use of drones and innovation to improve
               efficiency and address the evolving needs of the sector.
           •   Various stakeholders like the Indian Railways, port authorities and the coal industry should
               work in close collaboration to plan infrastructure development facilities and address the needs
               of logistics of the user side.
           •   Rationalization of railways tariff for the first and last mile connectivity to and from ports can
               enhance the viability of the rail-sea-rail route for coal.
           India will be significantly dependent on coal in the near to medium term. To reduce the severity of
           coal shortage that impacts electricity generation and in turn the Indian economy, it is important to
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work on effective and adequate coal evacuation infrastructure with optimal cost of freight.
    12.    Highlight the challenges faced in realizing the potential of digital agricultural economy. Discuss
           the role of public-private partnership (PPP) in this regard. (Answer in 250 words)             15
    Approach:
          • Briefly give a context about the digital agricultural economy in the introduction.
          • List the challenges faced in realizing its potential in the Indian agriculture system.
          • Discuss the role that public-private partnership (PPP) is expected to play in addressing the
              associated challenges.
          • Conclude accordingly.
    Answer:
           The spread of mobile technologies, remote-sensing services and distributed computing are
           improving farmers' access to information, inputs and markets, increasing production and
           productivity, streamlining supply chains and reducing operational costs.
           According to a report by the Ministry of Electronics and Information Technology and McKinsey &
           Company, India has a potential economic value of $50-65 billion through digital agriculture by
           2025. However, there remain certain challenges in realizing the potential of digital agriculture
           in India. These include:
           •   Lack of coherent data: Machine learning algorithms require large, indexed and standardized
               data sets, which are currently scarce. For example, if one is developing an early pest detection
               solution using an image, then a large data set of images are needed.
           •   Viability of technology: Digitization requires sensors, mechanization for precision farming and
               connectivity, which are not viable for a majority of Indian farmers, as most of the farmers possess
               small and fragmented land holdings.
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          •     Cost-benefit analysis: PreciseVisit
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                individual farmer and corresponding savings/return on investments are not available yet in the
                Indian context, which make it doubly difficult to evaluate the technology from the perspective of
                economic aspects.
          •     High capital requirement: Installation of digital technologies requires high capital cost, which
                would discourage its adoption among Indian farmers who remain constrained for credit.
          •     Inadequate investments in agricultural R&D: In 2021-22, the Department of Agricultural
                Research and Education was allocated Rs 8,514 crore (out of Rs.1,31,531 crore for the Ministry)
                of which actual expenditure fell short (-10%) of allotment.
          The role PPP ecosystem is expected to play in addressing the associated challenges :
          •     Emergence of a start-up ecosystem: Under a PPP model for agriculture, a start-up ecosystem
                can drive emerging technological innovations and agile business models, while universities and
                research institutions can bring in domain level agricultural expertise and help validate the
                solutions for scaled deployments.
          •     Increased productivity and profit: Studies suggest that farm-level digital advisory services can
                enhance productivity by 15%. There is also the potential for 40-60% of agricultural surplus to be
                sold through digital marketplaces by 2025, reducing waste and helping improve farmer price
                realization by 10%.
                ○ For instance, the E-Sahamathi initiative of Karnataka enables the sharing of agriculture and
                    horticulture data from its database of more than 7 million farmers with start-ups/ service
                    providers from its FRUITS (Farmer Registration and Unified Beneficiary Information System)
                    platform.
          •     Convergence with public institutions: The convergence of public institutions for digital
                services, in partnership with start-ups and industry, will help provide the benefits of technology
                to smallholding farmers in order to achieve better incomes and greater sustainability thereby
                making Indian agriculture globally competitive and remunerative for farmers.
          In this regard, the government of India in 2021 launched an initiative to enable a multi-stakeholder
          ecosystem named IDEA (India Digital Ecosystem for Agriculture), which will open up
_
          infrastructure, data sets, academic and research expertise and innovative policies in order to partner
          with a huge private ecosystem.
@
    13.   The inefficiencies in post-harvest value chain are leading to crop losses, with significant adverse
          impact on the livelihood of small and marginal farmers. Discuss in the context of India. What
          steps has the government taken to address these concerns? (Answer in 250 words)                 15
    Approach:
          •     Briefly explain post-harvest value chain and facts about crop losses in India.
          •     Explain how inefficiencies in the post-harvest value chain are leading to post-harvest losses in
                India.
          •     Discuss the impact of these inefficiencies on livelihood of small and marginal farmers.
          •     Mention various steps being taken by the government.
          •     Conclude positively.
    Answer:
          Post-harvest value chain includes harvesting and primary processing; storage and crop
          protection; processing; and market linkage. As per NITI Ayog, the estimated post-harvest losses
          in foodgrains hovers around 10%, semi-perishables and commodities like milk, fish, meat, eggs,
          fruits and vegetables between 10 to 20% and the horticultural produce at around 16%.
          Inefficiencies in post-harvest value chain
          •     Inadequate harvesting and primary processing: Lack of awareness, limited finance and weak
                markets for primary processed produce restrict small and marginal farmers from adopting
                primary processing such as threshing, sorting and grading.
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      •     Lack of storage and     crop protection:
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14.   Despite having one of the largest railway networks in the world, the speed of Indian trains lags
      behind in comparison to developed nations. Explain the reasons behind this and mention the
      steps being taken by the government in this regard. (Answer in 250 words)                     15
Approach:
      •     Mention recent facts about the speed of Indian trains.
      •     Explain the reasons for poor speed of trains in India.
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      •   Discuss the recent steps taken Visit
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                                                government for increasing the speed of Indian trains.
      •   Give a balanced conclusion.
Answer:
      The Indian Railways is the world's second largest network under one management. However, it
      still lags behind in terms of speed and efficiency . As per a recent audit by Comptroller and Auditor
      General (CAG) of India, Indian Railways’ operating ratio of 98.36% in 2019-2020 is much higher in
      comparison to other developed nations. The average speed of express trains in India is around 50
      kmph whereas there are more than 20 countries where passenger trains run at a speed of 200
      kmph or more. For instance, trains in Japan travel up to a speed of 320 kmph and the French high-
      speed rail network also allows similar speeds.
      Reasons for poor speed of Indian trains:
      • Inadequate infrastructure : In India , the main line tracks built cannot even sustain the trains
          travelling at a speed of 110-130 km per hour . This hampers the average speed of the trains .
          Furthermore , old tracks , insufficient number of platforms , multiple curves on track due to
          varying terrain are some of the reasons for slow speed of trains.
      • Heavy congestion on the railway track : All trains including freight trains share the same
          track causing heavy congestion. Due to insufficient number of tracks and large number of trains
          , the trains cannot travel at its optimum speed because they do not get clearances on time.
      • Long Halts: Longer and frequent stoppages create congestion at junction points and en route,
          thus reducing overall speed.
      • Design of the train: The designs of the train are also a hindrance in speeding up. The open
          doors and windows and the heavy rail coaches slow down trains.
      • Increase in passenger trains: Exponential increase in the number of passenger services, with the
          Indian Railways introducing around 200 trains per year on an average , without
          commensurate enhancement of the infrastructure works is one of the reasons for the slow
          speed.
      • Delay in project completion : Slow speed of project completion has affected plans to increase
          speed of trains . Building new tracks and doubling the existing lines is taking a considerable
          amount of time.
      Steps taken by the Government
      •   Dedicated Freight Corridors (DFC): Indian Railway is constructing more than 3000 Km of DFC
          , which would enable freight trains to run at speed of 100 kmph.
      • Vande Bharat Trains: The government has a target of bringing in 475 new semi high speed
          trains by 2024-25 that are capable of reaching the speeds of up to 160-200 kmph. These trains
          have been able to reach the average speed of 95 kmph.
      • Bullet Trains: Apart from Mumbai-Ahmedabad high-speed rail project, seven new bullet train
          projects worth around Rs. 10 trillion are in various stages of planning.
      • Upgraded Coaches: Indian Railways has enhanced manufacturing of Linke Hofmann
          Busch (LHB) coaches with Maximum Permissible Speed of 160 kmph.
      • Other measures: Gradually removing permanent speed restrictions, construction of road over and
          under Bridges to eliminate level crossing, Zero Based Timetabling to remove inefficiencies in the
          time table , modern signalling systems such as Train Collision Avoidance System (TCAS ), and
          increased participation of private sector.
      The whole eco -system needs a relook such as improvements in rolling stock , reducing the gap
      between freight and passenger train speed, time-tabled running of goods trains, reliability of assets
      and completing the infrastructure projects expeditiously to ensure the aim of high speed trains is
      achieved.
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15.   Access to land and effective
                             For More control   over it are crucial for inclusive growth and poverty
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      eradication in India. Elaborate. Also, discuss the land reform measures adopted in India in recent
      times to ensure inclusive growth. (Answer in 250 words)                                        15
Approach:
      •     Write some facts about landlessness in India and elaborate on how access to land and effective
            control over it are crucial for inclusive growth and poverty eradication in India.
      •     Discuss some recent land reforms adopted by India for inclusive growth.
      •     Conclude accordingly.
Answer:
      The Socio-Economic Caste Census of 2011, put the households with no land at 56.41 percent of
      total rural households. Similarly, the Draft National Land Reforms Policy released in July 2013
      stated that 31 percent of all households are landless.
      Access to land and effective control over it are of fundamental importance not only for
      economic growth but also for poverty eradication and inclusive growth in the following ways:
      •     Reduction in poverty: Approximately 54.6 percent of the total workforce is engaged in
            agriculture and allied sectors. In this context:
            o Those without property rights generally lack the incentive or even the authority to invest
                in the land, which could lead to higher returns.
            o Secure land rights provide better credit accessibility and act as an insurance substitute in
                the event of shocks.
            o Research suggests that land ownership will create opportunities to increase investment in
                the development of children, which may help in breaking the inter-generational
                transmission of poverty.
      ●     Inclusive growth: It will help in eradicating socio-economic or productive exclusion by giving
            the owners assets in the form of land, which will create avenues of income generation for them.
            o Similarly, it will help empower women and marginalized sections of the society if they get
                land ownership rights, as it would provide them a sense of security, a stronger voice in
                exercising their rights and a buffer against economic and environmental shocks.
      Since independence, several measures such as abolition of intermediaries, tenancy reforms and
      ceilings on landholdings were adopted, and consolidation and distribution of landholdings
      were envisioned. In the past few years, India has taken the following land reforms measures
      focussing on inclusive growth:
      •     Digital India Land Record Modernisation Program (DILRMP): It was introduced in 2016 to
            computerize and update all land records and digitize maps and surveys. It aims to provide
            conclusive titles of land ownership, reduce disputes and facilitate quicker transactions of land.
            o Unique Land Parcel Identification Number (ULPIN) Scheme: Launched in 2021, under
                this scheme, a 14-digit identification number would be provided to every surveyed parcel of
                land.
      •     SVAMITVA Scheme: It is a property survey programme launched in 2020 to map residential land
            ownership in the rural sector using modern technology like drones. Recognised owners will be
            provided property cards.
      •     The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
            Resettlement Act (LARR), 2013: The Act contains provisions to provide fair compensation to
            those whose land is taken away, brings transparency to the process of acquisition of land to set
            up factories or buildings, infrastructural projects and assures rehabilitation of those affected.
      •     The Model Agricultural Land Leasing Act, 2016: It recognises farmers who are cultivating on
            leased lands and enables loan accessibility to them through institutional credits.
      •     The Draft Model Contract Farming Act, 2018: It aims to protect the interests of farmers
            through a forward contract. It also restricts the development of permanent structure on farmers’
            land/premises. Further, it ensures that no right or title of interest of the land shall vest in the
            contract farming sponsor.
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       Also, in this regard, theFor
                                 NITIMore
                                      Aayog  has-https://upscpdf.com/
                                           Visit  framed a Draft Model Act and Rules on Conclusive Land
       Titling in 2019, which is under discussion. Since the subject of ‘land’ and its management falls under
       the State List, the success and failures of land reforms lie on the state governments. State initiatives
       such as the Bhoomi project of Karnataka is a successful example, which can be replicated on a pan-
       India level.
16.    When it comes to the energy sector, the trends of decarbonisation, decentralisation and
       digitisation are fast emerging. Discuss. (Answer in 250 words)                       15
Approach:
      • Give a brief context of the given statement.
      • Discuss the emerging trends of decarbonisation, decentralisation and digitisation in the energy
          sector.
      • Conclude accordingly.
Answer:
       Given the ever-increasing carbon emissions and carbon footprint of the energy sector,
       decarbonisation, decentralisation and digitisation are fast emerging as potent solutions to the global
       energy issues.
       •   Decarbonisation: This trend refers to the transition towards a clean, carbon-free world,
           largely by increasing the use of renewables and increasing premiums on the use of fossil fuels.
           o Electrification is often touted as a significant way to decarbonize energy. For example,
               switching to electric vehicles. For electricity to become emission-free, there has to be a move
               towards renewable energy solutions such as wind, solar, and biofuels.
           o India has set various targets for the renewable sector and has also done upward revision in
               its INDCs under the Paris Agreement. Globally, India ranks fourth in renewable energy
               capacity and wind power and fifth in solar power capacity.
       •   Decentralisation: This trend is all about transitioning away from our current system of highly
           centralized energy grids run by monopolistic energy providers, towards distributed energy
           production systems.
           o Through a combination of renewable energy and localized “microgrids,” consumers can
               generate their own electricity for their own needs. It also offers revenue opportunities and a
               way to provide backup power to the national grid. Localised renewable power would also
               help in cutting carbon emissions.
           o Decentralisation can drive competition up, and power prices down, as the number of energy
               providers increases. India has focused on technologies like net metering and smart meters
               for the same but a lot more needs to be done in this regard.
       •   Digitisation: This trend is all about the use of digital machines, devices, and technology to
           optimize energy production, infrastructure, and use. This trend is inextricably linked to the
           previous two trends.
           o An increasing variety of zero-carbon energy sources will mean our energy networks
               become more complex. Also, decentralized grids will need intelligent solutions to monitor and
               manage the fluctuating demand.
           o In India, this is done via the Advanced Metering Infrastructure (AMI). It seeks to deploy
               prepaid smart meters at scale.
               ✓ The end-to-end AMI includes smart electric meters, which are supported by technologies
                    such as communication network, Head-End System (HES), Meter Data Management
                    System (MDMS), and Cloud systems.
               ✓ Smart Meter National Program (SMNP), promoted through the Revamped Distribution
                    Sector Scheme (RDSS), aims to replace 25 crore conventional meters with smart meters
                    in India.
               ✓ Digital tools will also give an impetus to the energy sector. These include:
                    ▪ AI and predictive analytics particularly when used to analyze and predict demand,
                        and adjust where power is drawn from on distributed grids.
                    ▪ Internet of Things including smart home thermostats that can help consumers cut
                        their energy use.
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                                                  be useful for creating smart contracts that allow consumers
                       to trace where their energy comes from.
                   ▪   Digital twins, which can be used to create a virtual replica of a power plant or even
                       an entire grid, allowing providers to model different scenarios, make better decisions,
                       and improve efficiency.
      Global energy demand is expected to increase in the coming years, especially with the industrial
      growth aspirations of developing countries like India. Therefore, it is imperative that most of this new
      energy demand is met by low-carbon, renewable sources for achieving sustainable development. This
      would require ramping up institutional, technical and financial capacity across the globe.
17.   While agricultural subsidies have supported farmers' income, they have also contributed to
      environmental degradation and biodiversity loss. Discuss in the context of India. (Answer in 250
      words)                                                                                        15
Approach:
      •     Briefly state the objective of agricultural subsidies.
      •     Discuss how the subsidies have led to increase in farmers’ income.
      •     Explain how these subsidies have led to environmental degradation and biodiversity loss.
      •     Conclude appropriately.
Answer:
      Agricultural subsidies provided by the government are targeted to influence the cost and supply of
      agricultural commodities, induce higher consumption and production and achieve social policy
      objectives including income redistribution, and promoting general welfare in India.
      Agricultural subsidies have supported farmers’ income in the following ways:
      •     Reduced input cost: Agricultural subsidies under various schemes in the form of inputs such as
            seeds, fertilizers, farm machinery, etc. reduce the overall input cost for farmers.
      •     Higher productivity: The above-mentioned subsidies have led to adoption of HVYs, modern
            technologies, precision agriculture, smart agriculture etc., ultimately resulting in higher
            productivity.
      •     Mitigating against natural calamities: Schemes such as PM Fasal Bima Yojana and other crop
            insurance schemes have mitigated the losses suffered due to natural calamities.
      •     Reducing post-harvest losses: The government’s emphasis on creating subsidized storage
            infrastructure through schemes like Gramin Bhandaran Yojana have reduced post-harvest losses
            and improved incomes of farmers.
      •     Export earnings: Agricultural subsidies make Indian agricultural products competitive in the
            international markets and thus lead to higher income for farmers.
      •     Diversification of high-income potential sectors: Schemes like PM Matsya Sampada Yojana
            have greatly increased farmers’ adoption of the fisheries sectors, which has ultimately led to
            increase in their incomes.
      However, while being a force of positive change, these subsidies have also had deleterious impact on
      the environment and biodiversity and have threatened the sustainability of the agriculture sector.
      This can be discerned from the following:
      •     Decreased crop diversity: Adoption of HYVs has come at the cost of traditional local varieties
            resulting in reduced species and genetic diversity. This also makes the crops highly susceptible
            to pest and disease attacks.
      •     Soil degradation: Fertilizer subsidies have led to their indiscriminate use in an unscientific
            manner leading to soil degradation and decreased fertility.
      •     Groundwater issues: Power and irrigation subsidies have led to unsustainable extraction of the
            groundwater reducing their levels to dangerous levels. This has also led to leaching of minerals
            resulting in soil degradation.
      •     Threat to pollinators: Increased use of pesticides and herbicides is linked to decreased
            population of pollinators like bees and butterflies, which threatens global food security.
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      •     Spread of monoculture:
                                For More   While   traditional farming systems favour multi-cropping and
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18.   The persistent problems around the procurement and marketing of cereals and pulses in India
      can be solved by the success model of the milk sector. Discuss. (Answer in 250 words)   15
Approach:
      •     Briefly introduce the cereals and pulses production in India.
      •     Write the problems around procurement and marketing of cereals and pulses in India.
      •     Discuss how the milk sector model can help in solving these challenges.
      •     Conclude accordingly.
Answer:
      In India, cereals and pulses are primarily procured by the agriculture marketing societies like FCI
      and NAFED, whereas milk procurement is done through cooperative societies like AMUL.
      Procurement by cooperative societies gains both stakeholders' trust as well as public confidence,
      while procurement undertaken by agriculture marketing societies is often mired in controversy due
      to various problems.
      Issues in the procurement and marketing of cereals and pulses in India:
      •     Quality grading: The absence of grading or sorting machines in most of the procurement centers
            leads to the absence of positive incentives for better quality.
      •     Malpractices in awarding MSP: Due to the absence of grading and encouraging collusion,
            commodities not qualified for FAQ (fair average quality) are also getting minimum support price
            (MSP) for which it is otherwise ineligible.
      •     Episodic procurement: Cereals and pulses procurement happens only once in Rabi and Kharif
            seasons, which leave out farmers who harvest off-season.
      •     Absence of forward and backward linkages: It impacts the marketing capacity of farmers. They
            have to sell to local buyers, who don’t guarantee the minimum price.
      •     Delay in payments: FCI and National Agricultural Cooperative Marketing Federation of India
            (NAFED) often face a cash crunch as they are dependent on budget allocations.
      Model of the milk sector in dealing
      with issues related to cereals and
      pulses procurement and marketing in
      India:
      •     Transparency: Quality checking
            through machinery like a lactometer
            and a centrifuge machine in the milk
            sector helps farmers to be immune
            from fraud related to the grading of
            stock.
      •     Ease of doing business: Minimal or
            no restrictions on quantity to sell. It
            helps small and marginal farmers to
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                                   For More       large
                                              Visit     farmers who generally have greater bargaining power.
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           •   Round-the-year procurement: Like milk collection undertaken every day, allowing agriculture
               marketing societies to procure cereals and pulses 365 days a year can help those farmers who
               want to sell according to the market dynamics.
           •   Dedicated service: Like milk sector co-operatives, agriculture marketing societies need to
               devote time, energy, and domain expertise to ensure both forward and backward linkages for a
               smooth marketing mechanism.
           •   Regular payments: The milk sector is known for daily or weekly payments, which ensure income
               security for dairy farmers. Such liquidity flow can be adopted by financially empowering
               agriculture marketing societies as it will build trust among farmers and encourage them to sell
               produce to the agriculture marketing societies.
           •   Creating equity fund: District milk union retains 25 to 50 paise per litre from the payments to
               dairy farmers to consolidate funds for building their own infrastructure and for other expenses.
               Such an independent source of income would make agriculture marketing societies less
               dependent on governments.
           The newly established Ministry of Cooperation in coordination with the Ministry of Agriculture &
           Farmers Welfare can adopt the best practices of the milk sector from the states of Gujarat and
           Maharashtra into the agriculture procurement and marketing societies. Agri Infra Fund as well as
           the Rural Infrastructure Development Fund (RIDF) of NABARD can be used to strengthen the
           cereals and pulses procurement and marketing mechanism in India.
    19.    Highlighting the existing issues related to land records in India, discuss how digitisation of land
           records and conclusive ‘land titling’ can help in addressing them. (Answer in 250 words)         15
    Approach:
          • Give a brief context about land records in India.
          • Highlight the existing issues with land records in India.
          • Discuss the role of digitisation of land records and conclusive titling in solving those issues.
          • Conclude accordingly.
_
    Answer:
@
           Land records consist of various types of information (property maps, sale deeds, etc.) and are
           maintained across different departments at the district or village levels. These departments work
           in silos and give rise to various issues, such as:
           •   Absence of a nation-wide template: Land records are maintained by different departments in
               each state. It becomes strenuous to ensure that all such records in all the departments are
               updated and the details mentioned in one department exactly correspond to the details
               mentioned in other departments.
           •   Lack of a single window title verification and investigation system: The presumption of land
               ownership is drawn from multiple documents and records, which are maintained by multiple
               departments, making it a very long and cumbersome process of title investigation.
           •   Presumptive titling: Ownership is decided based on the recent economic transactions, which
               are easy to fake and thus lead to land disputes and litigations.
           •   Non-mandatory registration: Under the Registration Act, 1908, registration of property is not
               mandatory for certain transactions, such as land acquisition by the government, heirship
               partitions, etc. Thus, several property divisions are not recorded and, hence, do not correctly
               reflect the ownership of the property.
           •   Opaqueness in land leasing: The current system of land leasing does not enable tenants to
               access bank credit and prevents them from making investments in land improvement.
           The role of land record digitisation and conclusive ‘land titling’ in addressing the above-
           mentioned issues are the following:
           •   Increases transparency: Land record digitisation and conclusive land titling will enable
               complete transparency and real-time updates in land titles since property records could be placed
               in the public domain.
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    20.   Despite adoption of numerous measures to streamline financing of infrastructure in the road
          sector, private investment has played a limited role. Discuss. (Answer in 250 words)     15
    Approach:
          •     Give a brief introduction regarding the progress of the road sector in India in recent times.
          •     Provide an account of the steps taken to streamline financing of infrastructure in the road sector
          •     Describe how despite increase, private investment has played a limited role.
          •     Give a brief conclusion.
_
    Answer:
          The Indian road network is expanding at a tremendous pace with record breaking construction of 30
@
          km of road per day. India is on course to build more national highways during the decade ending
          2025 than it has cumulatively built between 1950 and 2015.
          This has become possible due to streamlining of financing of infrastructure in the road sector:
          •     The Model Concession Agreement in the road sector has standardized provisions on
                conditions to be met by public and private sectors, user fees and their escalation, dispute
                resolution etc. providing a balanced risk-return framework.
          •     There is viability gap funding (VGF) for economically viable projects that do not reach the
                threshold of financial viability. In fact, the highest VGF among all infrastructure sectors has gone
                to the road sector.
          •     The sector has also pioneered brownfield asset monetisation in India, with the first Toll-
                Operate-Transfer (TOT) transaction taking place as early as 2018, which has produced handsome
                returns.
          •     The sector has pioneered InvITs, which has helped raise thousands of crores of investment. It
                has enabled regular income (via dividends) and long-term capital appreciation for the investors.
          •     Several initiatives such as adoption of the HAM model, the National Infrastructure Pipeline,
                National Asset Monetization Plan have also boosted investment.
          The money spent on building roads has more than doubled since the financial year 2015-16. India
          has the highest number of PPP road projects in the developing world, at 501 (valued at $92.5 billion)
          in 1990-2021. However, private investment has played a limited role. Despite the fact that the total
          investment in the road sector has grown at a CAGR of 22% from 2014-15 to 2020-21, the share of
          private investment has declined from 37% in 2014-15, to only 7% in 2020-21.
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       The limited private investment
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                                               due to a number of impediments such as:
       •    Financing constraints: A big chunk of NPAs in Banks is from this sector. The share of NPAs out
            of total advances in the road sector increased from 1.9% in 2013 to 20.3% in 2017.
            ○ Although the sector is relatively stable and clean now, banks are still wary of lending to the
                 road sector PPP projects, making it difficult for private players especially mid-sized
                 companies with weaker balance sheets to raise finances for road projects.
       •    Lengthy land acquisition and clearance process: Delays in pre-construction activities (such as
            land acquisition, relocation of religious structures, encroachment removal, utilities shifting, and
            cutting of trees) have been a deterrent due to the resulting escalation in the costs.
       •    Stretched balance sheet of Indian developers: This is due to a number of factors, including
            overaggressive bidding which leads to reduction in the rate of project completion and increase in
            NPAs; and pending claims to the NHAI on breach of concession agreement resulting in companies
            refraining from participating in BOT projects due to potential losses.
            ○ Moreover, the existing debt burden of Rs. 60,000 crores at project level does not provide room
                 for absorbing future risks.
       •    Other factors: Other factors such as poor pre-project assessment of traffic and changing
            macroeconomic conditions have resulted in less-than-expected returns from projects making it
            difficult for existing players to continue and new players to enter the sector.
       Private investment into building a robust infrastructure is the key to making India a $5 trillion
       economy by 2025. Thus, efforts are required for promoting sector-specific financing platforms,
       deepening of the existing corporate bond market and streamlining clearance processes.
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