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India has expressed its intent to intensify its climate action as a step forward to meet the target of reaching net-zero emission by 2070. For renewable energy development, major challenges are: land acquisition and opportunity costs involved with RE development. Odisha’s renewable energy rich sites are mainly in the forest areas or agricultural land; so, it is quite difficult for the state to establish large-scale solar power sector. Despite having significant potential for renewable energy sources in Odisha, presently, renewable energy’s share in power sector is only 1%. The pragmatic alternative is to continue with coal-based electricity but adopt latest technology to reduce emissions.

At the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Glasgow, United Kingdom, in 2021, India expressed to intensify its climate action as a step forward to meet the target of reaching net-zero emission by 2070. One major component of the strategies is to achieve 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

State governments, along with the Central government, have taken several initiatives to reduce emission in power sector through promoting renewable energy sources. Odisha, a coastal state in the Eastern part of India, is rich in minerals. Growing demand for power for industrial activities and domestic consumption is putting stress on the state’s emission parameters. Though Odisha has the share of 3.47% population in India, net GHG emission from Odisha (274.54 Mt CO2e in 2018-19) is 9.3% of the country in 2018 (GHG Platform India 2022). In per capita terms, net emission from Odisha (6.15 tCO2e per capita) is higher than that of the national average (2.24 tCO2e per capita).

Odisha has installed capacity of 12,322 MW, as of December 2022 (CEA), in which 9,540 MW of installed capacity is for coal-based power plants. So, emission in Odisha is largely driven by high dependence on coal (90%) as a source of power generation in the state (in 2021-22). Other sources of power generation are hydro (8%), small hydro (1%), solar (1%). Odisha is one of the few states of India which is surplus in electricity production: only 33% of the produced electricity is consumed within the states and the rest of exported to other states. Clearly, selling electricity is a source of revenue for the state, revenue received from Taxes and Duties on Electricity in Odisha was Rs. 393846.21 lakh in 2020-21.

To keep up the pace of growth and development for the states and to meet the aspiration of the people, the State requires to continue generating electricity. It will not be prudent to import electricity from other states to reduce emission within the state boundary. As all states move towards the goal of achieving net zero, most states would face the same dilemma: how to produce electricity in a sustainable way.

Mitigation measures in terms of transition towards renewable energy is emphasized in policy design in Odisha. In 2021-22, contracted capacity of renewable power by GRIDCO from various sources was 1460.7 MW, (109.2 MW from 8 small Hydro-electric Projects, 1010 MW from Solar PV Projects, including 25 MW from roof-top solar, 20 MW from 1 Biomass Power Project and 321.5 MW from wind sources). Odisha Renewable Energy Development Agency (OREDA) took initiatives for various programs on the front of solar energy like Konark Solarisation, (aiming to turn the temple town of Konark into a solar town as well as a Net-Zero town through Solar Street Lighting, Solar Powered Drinking Water Kiosks, roof- top solar power plants, solarising the night-time illumination of the Sun Temple, establishment of solar charging stations, introduction of electric vehicles, etc.); Roof Top Solar Power Plant in residential, commercial and Government buildings; and Solarisation of agricultural pump sets under PM-KUSUM & Soura Jalanidhi (State Scheme), etc.

The Government of Odisha is also targeting to harness its renewable energy potential, as reflected in Renewable Energy Policy of Odisha, 2022, offering exemption on duty and surcharges along with other benefits, and targeting to increase the renewable capacity to 10 GW by 2030. Apart from traditional sources of non-fossil-fuel like hydro, solar and wind energy, the policy document also considered the non-traditional sources like green hydrogen, green ammonia, floating solar, biomass, waste-to-energy etc.

For renewable energy development, major challenges are: land acquisition and opportunity costs involved with RE development. Odisha’s renewable energy rich sites are mainly in the forest areas or agricultural land; so, it is quite difficult for the state to establish large scale solar power sector. Despite having significant potential for renewable energy sources in Odisha, presently, renewable energy’s share in power sector is only 1%. The pragmatic alternative is to continue with coal-based electricity but adopt latest technology to reduce emission.

There are some mitigation technologies available for reducing CO2 emission from the stationary sources like carbon capture and storage (CCS) technology for large-scale production. The existing carbon-capture technologies can be grouped into three categories: (a) pre-combustion and (b) oxy-fuel combustion with CO2, and (c) post-combustion. Under the pre-combustion process, Integrated Gasification Combined-Cycle (IGCC) technology has the potential of reducing 90% emissions from power plants. In oxy-fuel combustion technology, CO2 is separated during combustion and has the potential of removing up to 100% CO2 from the flue gas. Post-combustion CO2 capture technology can be retrofitted to existing plants without major modifications; and only the necessary capturing equipment are needed to be installed. Here, the most common method is chemical absorption with amine solvents (recovery of CO2 is approximately 85% to 95%); others being membranes, the PSA (pressure swing adsorption) process and mineral carbonation processes.

The drawback of the technology is that these processes reduce the power plant efficiency to some extent. But research on integration of CO2 capture, transport and storage in power plants is going on in different countries on the world. Inclusion of CCS in the mitigation portfolio is recognized to be beneficial for expediting the climate stabilization process and for gaining long-term economic efficiency in long-term.

Chetana and Sanjib are working at National Council of Applied Economic Research, New Delhi. Pradeep is a Bhubaneswar-based economist. Views are personal.

Restoring their credibility is crucial in order to make the world a fairer and flatter place

Emerging market and developing economies (EMDEs) are meted out unfair treatment by the credit rating agencies. India is no exception.

A UN paper shows that the sovereign credit ratings assignments are influenced both by hard economic data and subjective judgements, resulting in a bias in favour of the advanced economies. The EMDEs perennially receive ratings below what ought to be dictated by their economic performance and resilience.

The paper attributes the bias to the location and origin of the staff of the credit rating agencies. The headquarters of credit rating agencies are located in the US. This itself contributes to the bias in favour of the US. Besides, they fear being legally sued by advanced economies for granting them ratings lower than what they think they deserve. A majority of the managers and analysts in the rating agencies have been trained at universities based in advanced economies, resulting in “group think” and “home bias”. Finally, given the oligopoly in the rating industry, the raters mimic one another, perpetuating the bias.

A recent example of the purported bias can be seen in the changes in ratings following the Covid-19 pandemic, wherein different countries faced economic challenges of differing intensities. Growth was more adversely impacted and the public debt accumulation was larger in the advanced economies during the pandemic. Yet the rating downgrades were more frequent and steeper in the emerging market countries.

Our own analysis of the credit ratings of the G20 countries confirms this bias. We compute the average numerical ratings of the three largest credit rating agencies, viz., Moody’s, S&P Global, and Fitch, on a scale of 1 to 20. While the average rating of an advanced economy is almost a perfect 19, that of an emerging market is 7.5 points lower, at close to a junk grade of 11.6 (the junk grade is accorded to a rating of 11 and below). The differential is not explained by the levels of growth rate, debt or fiscal deficit of these countries. The emerging countries live under the perennial threat of a potential downgrade to below the junk grade.

India’s average rating in 2022 was 12, just one notch above the speculative grade. Its rating was last upgraded during the period 2004-2007, when different agencies elevated it from the speculative to the lowest investment grade. The last two rating actions were taken by Moody’s, which first upgraded India’s rating one notch in 2017, and then downgraded it back in 2020, to the pre-2017 level.

This almost junk rating has been attributed to India despite its tremendous economic progress over the last 15 years. The size of the economy in US dollar has quadrupled and the per capita income has tripled since 2005. Inflation has declined and stabilised during the last decade; its current account deficit has hovered at sustainable levels of 1-2 per cent of gross domestic product; it has implemented a credible monetary policy framework; enhanced the independence of the central bank; made public finances more transparent; and significantly improved the quality of public expenditure.

Most importantly, it has no prior history of delaying its debt servicing obligations or debt repayments, let alone reneging on them.

India’s public debt level has admittedly been higher compared to other emerging countries. However, since the debt is long-term and denominated in the rupee, the concomitant rollover or exchange rate risks are perceived to be rather low.

It would be worthwhile for India to engage with the credit rating agencies to better understand their metrics; while reinstating its public debt on the pre-Covid consolidation trend; in order to make even a stronger case for a rating upgrade.

The issue is pertinent for discussions at international forums such as G20 too. The G20 could help by establishing a committee to identify best practices for risk weighting and regulation at the national level. It can encourage more systematic and regular dialogue between rating agencies and government officials. The ratings are only as good as the data used as inputs for it, and data on the external debt figures of governments (and their compositions) are notoriously inadequate. It would be useful to pursue greater accuracy and transparency of debt statistics.

It is about time that the rating agencies are asked to improve their credibility by becoming more objective in the assignment of ratings. Competition in most cases improves accountability and performance. It might be useful to support the establishment of credit rating agencies which specifically specialise in rating emerging market economies.

Reforming the rating agencies seems like a low-hanging fruit in order to make the world a fairer and flatter place.

The writer is the Director General of NCAER, and a member of the Economic Advisory Council to the Prime Minister. Views are personal.

According to the given data, there is a larger proportion of male (67.6%) programmers that use a specialised language compared to females (32.4%)

As technology continues to advance at an unprecedented rate, computer programming skills have become more important than ever before. In line with Modi’s vision of a vibrant India, the government and private sector have recognised the need to cultivate these skills among the country’s youth to prepare them for the challenges and opportunities of the future. As a result, there has been a growing interest in computer programming among young Indians, with many initiatives aimed at promoting digital literacy and coding skills.

India’s large youth population presents a unique advantage. With over 50% of the country’s population under the age of 25, there is tremendous scope for growth if this demographic is equipped with the skills to thrive in a digital world. With a focus on practical, hands-on learning and integrating technology into all facets of education, the National Education Policy (NEP) 2020 plays a crucial role in promoting digital literacy and computer programming skills among young Indians.

A recent National Sample Survey Office (NSSO) survey on the population’s ability to write computer programs using specialised programming languages gives fascinating insights. It says 1.41% of Indians aged 15 years and older know programming. Younger individuals are more likely to know programming, with 3.14% of 19- to 25-year-olds able to write programs.

It is also heartening to note that for the age group of 26–30, 2.75% of individuals were able to write a computer program using a specialised programming language, indicating continued learning beyond college or the start of a career. Additionally, even for the age group of 31–35, the percentage of individuals who can write computer programs is significant at 2.10%, despite the increasing responsibilities of family and work.

According to the given data, there is a larger proportion of male (67.6%) programmers that use a specialised language compared to females (32.4%). This gender differentiation is consistent across all age groups. Overall, the result indicates that a sizeable portion of the population has the ability to write computer programs using specialised programming languages, with the younger generation leading the way.

The growth of the IT industry and the demand for skilled professionals have fueled the trend of learning programming languages in India. The government’s focus on promoting digital literacy and online resources has made it easier to learn programming from home. Startups also contribute to the trend by developing software and websites, leading to an increased demand for programming skills and driving the IT industry’s growth.

While the trend of learning programming languages in India has been on the rise, learners face several challenges, particularly those from low-income backgrounds. The high cost of professional courses and lack of access to quality educational resources can make it difficult for individuals to acquire new skills. Additionally, the lack of diversity in the field can also be a significant barrier for learners, particularly women and individuals from marginalised communities.

The percentage of people in India who know computer programming languages has been on the rise, driven by the growth of the IT industry, the government’s focus on digital literacy, and the increasing availability of online educational resources.

While the trend is encouraging, several challenges need to be addressed to ensure that individuals from all backgrounds can access and benefit from learning programming languages. Efforts need to be made to bridge the gender gap in the field and promote diversity and inclusion.

Initiatives to provide affordable access to quality educational resources and mentorship programmes can help learners overcome financial and knowledge-related barriers. Additionally, industry players need to work towards creating a more conducive environment for continuous learning and skill development, to ensure that the IT industry in India remains competitive in the global market.

The writer is an associate fellow at the National Council of Applied Economic Research, Delhi.