Question 96 from UPSC CSE 2018 - CA/General awareness

Question

With reference to solar power production in India, consider the following statements:
1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
2. The solar power tariffs are determined by the Solar Energy Corporation of India.
Which of the statements given above is/are correct?

Accepted Answer

Correct Option: D. Neither 1 nor 2

Strategy: The strategy involved two main steps:

-   **Identify Keywords:** Focus on 'manufacture of silicon wafers' and 'solar power tariffs determined by the Solar Energy Corporation of India'.
-   **Cross-verify Facts:** Confirm against industry knowledge that India lacks significant silicon wafer manufacturing and imports most of them. Also, verify that tariff authority rests with regulatory commissions, not SECI. Both statements were found to be factually incorrect.

Key Info: ## Silicon Wafers
These are thin slices of highly purified silicon used to fabricate solar photovoltaic cells. The photovoltaic manufacturing value chain includes the production of polysilicon, wafering, cell fabrication, and module assembly. India is heavily dependent on imports for polysilicon and silicon wafers, with top producers being China, Taiwan, and South Korea. Indian manufacturing is primarily in the module and limited cell segment, with negligible upstream wafer or polysilicon capacity.

## Solar Energy Corporation of India (SECI)
SECI is a Central Public Sector Undertaking under the Ministry of New & Renewable Energy (MNRE). Its aim is to facilitate the adoption, promotion, and development of solar power projects. Its main activities include project implementation, competitive bidding (auctioning), managing power purchase agreements, and developing solar parks--not tariff determination.

## Tariff Determination
Renewable energy tariffs, including for solar power, are set by the Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs). While tariffs are often discovered via competitive bidding mechanisms overseen by SECI or other agencies, final approval and regulatory oversight rest with CERC or SERCs as per the Electricity Act, 2003.

The Solar PV sector in India has grown due to strong government support in deployment, but manufacturing value chain gaps persist--'Atmanirbhar Bharat' initiatives and production-linked incentive schemes are underway to address these gaps.

Answer

Option A: 1 only

Answer

Option B: 2 only

Answer

Option C: Both 1 and 2