INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY
| Exclusive for Subscribers Daily:
Green hydrogen technologies and Panchayati Raj Institutions (PRIs) and its significance for the UPSC Exam? Why are topics like Monetary Policy Committee (MPC), Archaeological Survey of India (ASI) , Commission for Agricultural Costs & Prices (CACP) important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for October 03, 2025 |
Will China capture the electrolyser market?
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS III - Enviornment and ecology
Context:
In the clean energy market, the limelight has recently shifted from solar and wind towards green hydrogen. Hydrogen is widely used in industries for oil refining and ammonia and methanol production, but most of it is currently produced using fossil fuels, which add to carbon emissions. Green hydrogen technologies used in production, storage, transportation and application are rapidly advancing, with electrolysers at the core of this transformation. Electrolysers are central to its production, much like photovoltaic (PV) modules are to solar power. And just as no discussion on solar PVs is complete without examining China’s dominance in its supply chain, a similar story seems to be unfolding with electrolysers
Read about:
Photovoltaic (PV) modules
Green hydrogen technologies
Key takeaways:
In the global clean energy sector, attention has been shifting from traditional renewables such as solar and wind to green hydrogen. While hydrogen already plays a critical role in industries like oil refining and the production of ammonia and methanol, the majority of it is generated from fossil fuels, adding to carbon emissions. The focus now lies on developing green hydrogen technologies across production, storage, transport, and application stages. Electrolysers, in particular, have emerged as the backbone of this transformation, much like photovoltaic (PV) modules are for solar energy. Just as debates on solar PVs cannot overlook China’s dominance in the supply chain, a similar trend is now unfolding with electrolysers.
China’s position in green hydrogen
- By 2024, China had become the leading producer of hydrogen globally, generating around 36.5 million tonnes annually. Of this, nearly 1,20,000 tonnes was green hydrogen—accounting for close to half of the world’s total.
- In the electrolyser market, China commands almost 85% of global production capacity for alkaline (ALK) electrolysers. Currently, both Alkaline (ALK) and Proton Exchange Membrane (PEM) electrolysers are used commercially.
- ALK systems, being an established technology, are cheaper but less efficient in handling renewable power fluctuations. PEM electrolysers, though costlier, perform better under variable loads and yield hydrogen of higher purity.
- For the moment, China’s edge lies in its mass-scale ALK electrolyser production, catering both to domestic use and exports.
- China’s rapid build-up of electrolyser capacity, alongside its rollout of large-scale green hydrogen projects, has raised global concerns about its growing influence over the sector’s supply chains.
How China gained this advantage
- China replicated in electrolysers the strategy it had earlier applied in solar PVs: subsidised pricing, tightly integrated supply chains, control over raw material inputs, and speedy expansion of manufacturing capacity.
- ALK electrolysers from China are priced significantly lower than international averages, offering up to 45% cost savings for hydrogen plants in Europe. Price declines continue due to supply chain maturity and increased competition.
- In 2024, a 5 MW ALK electrolyser system cost about six million yuan (~$167/kW), 20% cheaper than in 2023. A 1 MW PEM system was also priced at six million yuan (~$838/kW), reflecting a 32% drop within a year.
- China benefits from abundant domestic supplies of nickel and steel, essential for ALK electrolysers. However, PEM electrolysers depend on scarce and expensive metals such as iridium, platinum, and titanium, which China imports heavily.
- Since hydrogen production requires specific system integration depending on its intended use and purity requirements, competition may increasingly depend on providing integrated solutions rather than price alone.
- Major Chinese renewable energy players such as LONGi and Envision have diversified into hydrogen, not only manufacturing electrolysers but also investing in overseas production facilities.
- For example, Guofu Hydrogen has partnered with German firms to build plants, while Envision Energy has unveiled the world’s largest green hydrogen and ammonia facility powered entirely by renewables.
Competition and challenges
- China appears well on track to dominate the green hydrogen equipment market through its aggressive scaling up of production and international outreach. However, replicating its solar success will not be straightforward.
- Unlike solar, green hydrogen has been designated as a strategic sector by many countries, which are keen to safeguard domestic industries. Consequently, Chinese imports are expected to face stricter regulations, barriers, and scrutiny.
- Concerns over supply chain resilience and energy security will likely shape how far Chinese products penetrate international markets, potentially curbing their expansion in this domain
Follow Up Question
Mains
1.Green hydrogen production utilizes electrolysis, a process powered by renewable energy sources. However, large-scale production of renewable energy also has environmental implications. Discuss the ethical considerations involved in promoting green hydrogen as a sustainable solution. (250 words)
Prelims
|
Answer (A)
Statement 1: If pure hydrogen is used as a fuel, the fuel cell emits heat and water as by-products. ✅ Correct. Statement 2: Fuel cells can be used for powering buildings and not for small devices like laptop computers. ⌠Incorrect. Statement 3: Fuel cells produce electricity in the form of Alternating Current (AC). ⌠Incorrect. |
Why are the new rules for Panchayats getting flak?
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS II - Indian Polity
Context:
The Mohan Majhi-led Bharatiya Janata Party (BJP) government in Odisha announced the new Odisha Panchayat Samiti Accounting Procedure (Amendment) Rules, 2025, after state cabinet approval last month. However, the Biju Janata Dal (BJD) and the Congress have strongly criticised the amended rules, stating that it undermines people’s representatives of the Panchayati Raj Institutions (PRIs).
Read about
Panchayati Raj Institutions (PRIs)
Mahatma Gandhi Natural Rural Employment Act (MGNREGA)
Key takeaways:
Panchayati Raj Institutions (PRIs)
- Panchayati Raj Institutions (PRIs) in India represent a system of rural local self-government that aims to ensure people’s participation in the decision-making process at the grassroots level.
- The idea is rooted in the Gandhian vision of Gram Swaraj (village self-rule), where villages function as self-reliant units of democracy. The institutional framework for PRIs was given constitutional status through the 73rd Constitutional Amendment Act of 1992, which came into effect in April 1993.
- This amendment added Part IX to the Constitution, making local self-governance a mandatory feature in rural areas. It provided a three-tier structure consisting of the Gram Panchayat at the village level, the Panchayat Samiti at the block or intermediate level, and the Zila Parishad at the district level.
- Every state is required to establish these bodies, except those with populations below 20 lakhs where a two-tier system may exist. The members of these institutions are directly elected by the people, ensuring representation from all sections of society, including women and Scheduled Castes and Scheduled Tribes through the system of reservation.
- The Gram Sabha, comprising all the registered voters of a village, is the foundation of this system. It is entrusted with functions such as approving plans, budgets, and reviewing the functioning of the Panchayat.
- The elected Panchayats, on the other hand, have been assigned responsibilities related to economic development and social justice in their jurisdictions, covering areas like agriculture, rural housing, water management, health, sanitation, and poverty alleviation.
- Financially, Panchayats draw their resources from three channels: funds allocated by the state government, grants from the central government (such as those recommended by the Finance Commission), and their own revenue sources like taxes, duties, and fees. The State Finance Commissions, constituted every five years, recommend measures to strengthen their financial base.
- Thus, Panchayati Raj Institutions embody the principle of democratic decentralization. They not only bring governance closer to the people but also empower marginalized groups by giving them a voice in decision-making.
- Despite challenges such as inadequate financial resources, bureaucratic control, and varying degrees of effectiveness across states, PRIs remain a crucial mechanism for participatory development and inclusive governance in rural India
- The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, is one of India’s most significant social welfare legislations aimed at enhancing livelihood security in rural areas.
- It provides a legal guarantee of at least 100 days of wage employment in a financial year to every rural household whose adult members are willing to do unskilled manual work.
- The Act not only assures employment but also emphasizes the creation of durable assets that improve rural infrastructure, such as water conservation, land development, afforestation, and rural connectivity.
- The core objective of MGNREGA is to reduce rural poverty and unemployment by providing an alternative source of income, particularly during the lean agricultural season.
- It is a rights-based programme, meaning that employment is a legal entitlement and workers are entitled to an unemployment allowance if work is not provided within 15 days of application.
- Wages are to be paid according to notified minimum wages, and payment must be made within 15 days to ensure timely income support.
- A unique feature of MGNREGA is its emphasis on transparency and accountability through social audits, regular monitoring, and the use of Information and Communication Technology (ICT) tools for wage payments.
- It also mandates the participation of women, ensuring that at least one-third of the beneficiaries are women workers.
- Over the years, MGNREGA has become a lifeline for millions of rural households by not only providing income security but also empowering marginalized groups and promoting rural development
|
Answer (B)
Statement 1: The minimum age prescribed for any person to be a member of Panchayat is 25 years. ⌠Incorrect. Statement 2: A Panchayat reconstituted after premature dissolution continues only for the remainder period. ✅ Correct. |
- The Reserve Bank of India (RBI) is India’s central banking authority. While central banks in advanced economies can be traced back to the 17th century, the RBI, set up on April 1, 1935, stands among the earliest such institutions in the developing world.
- It was created under the Reserve Bank of India Act, 1934. Sir Osborne Arkell Smith, an Australian and former managing governor of the Imperial Bank of India, became its first Governor, while Sir C. D. Deshmukh was the first Indian to hold the post.
- The Preamble of the RBI outlines its principal functions: regulating the issue of banknotes, maintaining reserves for ensuring monetary stability, managing the currency and credit system for India’s economic benefit, operating a modern monetary policy framework suited to a complex economy, and balancing price stability with growth.
- In a recent policy package, the RBI announced two major reforms. First, banks will now be permitted to fund corporate takeovers, an activity that was earlier prohibited.
- Second, Indian banks, along with their overseas branches, can extend rupee-denominated loans to residents of neighbouring countries such as Nepal, Bhutan, and Sri Lanka. These moves mark a strategic reorientation of the Indian financial system—shifting from a domestic focus to an outward-looking, regionally influential role.
- RBI Governor Sanjay Malhotra announced these measures alongside the monetary policy decision to keep the repo rate unchanged at 5.5% with a neutral stance.
- This reflects continuity, as the central bank had already reduced the rate by 100 basis points earlier in 2025 and is maintaining caution despite favourable inflation trends.
- Retail inflation is projected at 2.6% for 2025–26, comfortably below the 4% target, giving RBI room for future policy adjustments while currently choosing structural reforms over rate cuts.
- A key initiative in this direction is the push to globalise the rupee. Authorised dealer banks and their foreign branches will now be allowed to provide rupee loans to entities in select neighbouring countries.
- Additionally, the Financial Benchmarks India Limited (FBIL) will expand the set of benchmark currencies beyond the US dollar, euro, pound, and yen, further strengthening the rupee’s global profile.
- The RBI has also permitted surplus balances in Special Rupee Vostro Accounts (SRVAs)—introduced in 2022 to facilitate rupee-based trade settlement—to be invested in corporate bonds and commercial papers.
- Until now, these funds could only be placed in government securities. This reform widens investment choices for foreign entities and enhances liquidity in India’s corporate bond market.
- Together, these measures are part of a long-term vision to make the rupee not just a trade settlement medium but also a preferred investment currency in India’s neighbourhood and beyond.
- On the domestic front, additional steps have been announced to strengthen credit availability. Banks will be allowed to finance corporate acquisitions, while a long-standing framework restricting lending exposure beyond ₹10,000 crore to a single borrower group is being phased out.
- Furthermore, by lowering the “risk weights” on infrastructure financing by non-banking lenders, the RBI aims to make funding for operational and high-quality projects cheaper, thus supporting infrastructure development
|
Answer (C)
Statement 1: The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. ✅ Correct. Statement 2: Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest. ⌠Incorrect. Statement 3: The Governor of the RBI draws his natural power from the RBI Act. ✅ Correct. |
- The National Culture Fund (NCF) was established in 1996 by the government with an initial corpus of ₹20 crore. The concept was to maintain this base corpus and utilize the interest generated for conservation efforts at protected monuments.
- Since its inception, the NCF has received about ₹140 crore through contributions from corporate entities and public sector undertakings, which has been deployed to support roughly 100 conservation projects at various protected monuments.
- The NCF is overseen by a Council and an Executive Committee. The Council, chaired by the Union Minister of Culture, includes representatives from the corporate sector, public sector organizations, private foundations, and non-profits.
- The Executive Committee, headed by the Secretary of the Ministry of Culture, handles operational decisions. Contributions to the NCF qualify for 100% tax exemption, encouraging corporates to participate through their CSR initiatives and promote India’s cultural heritage.
- The Archaeological Survey of India (ASI), functioning under the Ministry of Culture, is responsible for preserving and maintaining monuments and archaeological sites deemed of national importance under the Ancient Monuments Preservation Act, 1904, and the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (AMASR Act). Currently, the ASI manages the conservation of approximately 3,700 protected monuments nationwide.
- The government now aims to introduce a public-private partnership (PPP) model in heritage conservation, enabling capacity building and accelerating project implementation. While funds will continue to flow through the NCF, conservation projects will remain under the ASI’s supervision, and the detailed project reports (DPRs) must comply with the National Policy for Conservation, 2014.
- Under this model, private entities with relevant expertise can directly implement conservation activities, funded by donors, rather than the ASI being the sole executing agency.
- Donors will receive recognition at the monument sites for their contributions. This approach intends to increase private sector participation and make conservation efforts more sustainable.
- The Adopt a Heritage Scheme (AHS) is an initiative launched by the Government of India in 2017 under the Ministry of Culture to encourage public-private partnership (PPP) in heritage conservation and development.
- The scheme allows corporates, public sector undertakings (PSUs), non-profit organizations, and even individuals to “adopt” protected monuments and heritage sites across India for their maintenance, development, and promotion.
- Under the scheme, adopters are responsible for creating or improving visitor amenities, such as ticket counters, information centers, signage, entry and exit points, cafes, sanitation facilities, and landscaping.
- They are also encouraged to conduct awareness programs and cultural activities to enhance public engagement with the site.
- The program is designed to supplement government efforts, accelerate heritage conservation, and involve the private sector in promoting India’s cultural heritage.
- While adopters invest in the development and upkeep, they also receive recognition and visibility at the site, strengthening their corporate social responsibility (CSR) profile.
- Essentially, AHS is a platform where heritage preservation and corporate participation intersect, making conservation sustainable and inclusive
2. Safeguarding the Indian Art Heritage is the need of the moment. Discuss. (GS 1, 2019)
1.Consider the following statements about National Culture Fund:
1. It was set up in 1996 to mobilise extra resources through Public Private Partnerships (PPP) towards conservation of monuments.
2. It is managed by a Council and an Executive Committee and the Council is chaired by the Union Minister of Culture.
3. The donation to NCF is eligible for 100% tax exemptions.
Which of the above-mentioned statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
|
Answer (d)
Statement 1: It was set up in 1996 to mobilise extra resources through Public Private Partnerships (PPP) towards conservation of monuments. ✅ Correct. Statement 2: It is managed by a Council and an Executive Committee and the Council is chaired by the Union Minister of Culture. ✅ Correct. Statement 3: The donation to NCF is eligible for 100% tax exemptions. ✅ Correct. |
- Minimum Support Price (MSP) is the price at which the government is obligated to procure a crop from farmers if its market price falls below this level. MSPs act as a price floor, ensuring that farmers receive a minimum return that covers their cultivation costs and provides some profit.
- MSPs are announced by the Union government based on recommendations from the Commission for Agricultural Costs and Prices (CACP). The CACP suggests MSPs for 22 notified crops and recommends a Fair and Remunerative Price (FRP) for sugarcane. The final decision on MSP levels is taken by the Cabinet Committee on Economic Affairs (CCEA).
- Recently, the CCEA, chaired by Prime Minister Narendra Modi, approved hikes in MSPs for the Rabi season 2026-27 to guarantee remunerative returns to farmers.
- The highest increase was for safflower, at ₹600 per quintal, followed by lentil (masur) at ₹300 per quintal.
- MSPs for rapeseed & mustard, gram, barley, and wheat were raised by ₹250, ₹225, ₹170, and ₹160 per quintal, respectively. The MSP for wheat is now set at ₹2,585 per quintal, marking a 6.6% increase over the previous rate of ₹2,425 per quintal.
- Wheat is India’s second-largest crop by area, with 318.33 lakh hectares under cultivation in 2023-24. The top-producing states are Uttar Pradesh, Madhya Pradesh, Punjab, Haryana, Rajasthan, Bihar, Gujarat, and Maharashtra.
- In addition, the government approved the Mission for Aatmanirbharta in Pulses, a significant initiative aimed at enhancing domestic pulse production and achieving self-sufficiency. The mission will run for six years (2025-26 to 2030-31) with a financial outlay of ₹11,440 crore
- Minimum Support Price (MSP) is a government-set price at which it guarantees to purchase certain crops from farmers, ensuring they receive a minimum return for their produce even if market prices fall below this level. It acts as a price floor, protecting farmers against distress sales and covering the costs of cultivation while providing a modest profit.
- MSPs are recommended by the Commission for Agricultural Costs and Prices (CACP) for 22 notified crops, while sugarcane receives a Fair and Remunerative Price (FRP). The Cabinet Committee on Economic Affairs (CCEA) takes the final decision on the MSPs.
- The government announces MSPs before each sowing season to guide farmers’ cropping decisions and stabilize agricultural income. Recent hikes in MSPs for Rabi crops (2026–27), for example, include safflower (₹600/quintal increase), lentil (₹300/quintal), and wheat (₹160/quintal), with wheat’s MSP now at ₹2,585 per quintal.
|
Answer (D)
Statement 1: In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. ⌠Incorrect. Statement 2: In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. ⌠Incorrect. |