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1. SC’s concern over competitive freebies is right — there should be a level playing field
Context: The Supreme Court (SC) has raised concerns over the growing trend of competitive freebies promised by political parties during elections. While direct cash-for-votes is illegal, manifesto-based promises of freebies fall into a grey area. However, these promises are often made without considering the financial burden on state governments. The SC’s intervention highlights the need to maintain fiscal discipline and ensure free and fair elections in India.
Key Points:
- Definition of Freebies:
- Freebies refer to non-targeted giveaways promised by political parties to voters, such as free electricity, cash transfers, gadgets, or loan waivers.
- They are different from welfare schemes, which aim for long-term socio-economic development.
- SC’s Observations on Freebies:
- The SC raised concerns in Subramaniam Balaji vs Govt of Tamil Nadu (2013), stating that freebies affect fiscal discipline and governance.
- In 2024, the SC questioned the continued distribution of free rations post-COVID, emphasizing that temporary measures should not become permanent without financial viability.
- Impact on Fiscal Health:
- Freebies put immense strain on state finances, leading to rising debt burdens.
- Examples:
- Andhra Pradesh: ₹13.5 lakh crore debt.
- Tamil Nadu: ₹8.5 lakh crore debt.
- Karnataka struggling to finance its commitments.
- These financial pressures limit spending on essential sectors like healthcare, education, infrastructure, rural development, and disaster management.
- Threat to Democracy:
- The promise of freebies undermines free and fair elections by influencing voter choices through material incentives.
- It dilutes democracy by encouraging a quid pro quo between voters and political parties.
- Legal and Ethical Aspects:
- Direct cash-for-votes is illegal under election laws.
- However, manifesto promises of freebies remain legally ambiguous, making regulation difficult.
- Raises concerns about governance priorities shifting from long-term development to short-term electoral gains.
- Public Good vs. Populism:
- Welfare schemes should align with principles of public good and social justice rather than being short-term electoral tactics.
- SC has called for a framework to distinguish welfare from unsustainable giveaways.
- Way Forward:
- Implementing a mechanism to ensure fiscal responsibility while maintaining targeted welfare programs.
- Strengthening democratic processes to prevent electoral distortions due to competitive populism.
- Encouraging political consensus on balancing welfare and financial sustainability.
2. Renewable energy’s dirty secrets: Hidden cost of going green
Context: The article critically examines the hidden costs and challenges of renewable energy, particularly solar and wind power. While renewable energy is often viewed as the future of sustainable electricity generation, the article highlights issues such as affordability, reliability, dependence on China for critical minerals, market distortions, job losses, and environmental and health concerns. These challenges suggest that a balanced approach, incorporating both renewable and traditional energy sources, is necessary for a stable and sustainable energy transition.
Key Points for UPSC:
- Affordability and Reliability Issues:
- High Costs: The levelized cost of electricity (LCOE) for solar and wind remains higher than coal and natural gas when factoring in storage and backup generation.
- Power Outages: Increased dependence on renewables has led to grid instability. Example:
- USA (2023): Nearly 500 major power outages.
- Germany: Faced a “Dunkelflaute” (solar & wind drought), causing electricity prices to rise 14 times the average and forcing coal imports.
- UK’s Transition Failure: Shift to renewables turned the UK from a net electricity exporter to an importer, raising energy security concerns.
- China’s Dominance in Renewable Energy Supply Chains:
- Critical Mineral Control: China holds a near-monopoly over key materials:
- 93% of rare earths
- 99% of silicon wafers
- 85% of solar cells
- 100% of graphite
- 97% of battery anodes
- Export Restrictions: China’s control over raw materials and processing technologies threatens global energy security.
- Critical Mineral Control: China holds a near-monopoly over key materials:
- Market Distortions and Infrastructure Challenges:
- Negative Electricity Prices: Surplus renewable energy has created situations where producers pay consumers to take excess power.
- Grid Infrastructure Bottlenecks:
- Investments in renewables have doubled since 2014, but grid infrastructure funding has stagnated.
- Over 3,000 GW of renewable projects are stuck in grid connection queues.
- Employment and Economic Disruptions:
- Job Market Disruptions:
- China accounts for 84% of solar, 93% of battery-related, and nearly 50% of clean energy jobs, leaving other countries struggling with unemployment.
- Loss of jobs in the fossil fuel sector is leading to economic instability.
- Concept of “Violent Transition” vs. “Just Transition”:
- The transition to renewables has led to unrest in some regions due to job losses.
- Job Market Disruptions:
- Environmental and Health Concerns:
- Mining Hazards:
- Solar and wind technologies require rare earth elements, causing environmental damage through mining and processing.
- Energy-Intensive Manufacturing:
- Solar panel production (quartz to silica) requires high temperatures (1500°C-2000°C), leading to carbon emissions.
- Wind turbines cause noise and visual pollution and disrupt migratory birds and marine life.
- Toxic Waste & Recycling Issues:
- Solar panels and wind turbine blades often end up in landfills, contaminating soil and water.
- Recycling is energy-intensive and costly.
- Health Risks:
- UNECE report: Solar & wind technologies are more carcinogenic than coal and nuclear power.
- Workers in solar and wind industries report heat-related illnesses and injuries.
- Mining Hazards:
- Policy Recommendations:
- Balanced Energy Mix: A judicious combination of renewables and fossil fuels is needed to ensure energy security and economic stability.
- Infrastructure Investment: Improved grid infrastructure to handle renewable energy variability.
- Diversified Supply Chains: Reducing dependence on China for critical minerals.
- Sustainable Transition Policies: Ensuring fair employment transitions for workers affected by the shift from fossil fuels to renewables.
Disclaimer:
This analysis is based on the editorial content published in Indian Express and is intended solely for informational and educational purposes. The views, opinions, and interpretations expressed herein are those of the author of original article. Readers are encouraged to refer to the original article for complete context and to exercise their own judgment while interpreting the analysis. The analysis does not constitute professional advice or endorsement of any political, economic, or social perspective.
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