NIOS Economics (318) Notes/Answer| Chapter-30| Energy

NIOS Economics (318) Notes/Answer| Chapter-30| Energy. Important questions for NIOS Economics (318) Questions Answers brings you latest queries and solutions with accordance to the most recent pointers SOS . Students will clear all their doubts with regard to every chapter by active these necessary chapter queries and elaborate explanations that area unit provided by our specialists so as to assist you higher. These queries can facilitate students prepare well for the exams thanks to time constraint . NIOS Economics (318) Notes/Answer| Chapter-30| Energy

HS 2nd years Solutions (English Medium)

NIOS Economics (318) Notes/Answer| Chapter-30| Energy

Intext Questions 

1. State whether the following statement are true or false:

 a) Energy is used only in the household sector and not in industry and agriculture. 

Ans. False

 b) Coal, oil and gas are renewable energy sources. 

Ans. False

 c) Solar, wind and tidal energy are non-conventional

 Ans. True

d) Government is discouraging the use of solar energy as it is not adequately available in India

 Ans. False 

2. State whether the following statement are true or false:

 a) The quality of Indian coal is generally good as

 Ans. False

b) Coal reserves are mostly concentrated in states like Punjab, Haryana and J&K.

Ans. False

c) Steel industry is the largest consumer of coal. 

Ans. False

 d) The availability of oil and natural gas is not satisfactory in India. 

Ans. True 

e) The prices of petroleum products in India are determined by the market. 

Ans. False 

f) The share of thermal plants in total electricity generation is highest. 

Ans. True

 g) India has low reserves of thorium, but it has large reserves of uranium. 

Ans. False

h) We cannot produce power from solar energy.

Ans. False

 i) Bio-gas plants produce both the manure as well as gas.

Ans. True 

3. Fill in the blanks with suitable words out of those given in the brackets:

 a) The countries having high per capita income have generally ……… level of energy consumption. (high, low, zero) 

Ans. high

b) The consumption of electricity, oil, and coal has steadily ……… remained same) over the years. (increased, decreased, 

Ans. increased

c) The urban India uses ………percentage of commercial energy than rural India. (less, more, same) 

 Ans. more

 d) Industry uses roughly ………percent of total commercial energy. (50%, 20%, 75%) 

Ans. 50% 

e) The plan allocation for energy sector as percentage of total plan outlay has… from the level of first plan. (increased, decreased, remained same)

 Ans. increased 

Terminal Exercise 

1. List the various sources of energy. By giving examples, explain how the various sources of energy can be classified. 

Ans. Following are the list of the various sources of energy

  •  Coal 
  • Oil and Natural Gas
  • Electricity-Nuclear, Thermal and Hydroelectric 
  • Firewood, Vegetable Wastes, Dried Dung and Bio-gas 
  • Solar Energy, Wind Energy, Tidal Energy etc.

 Energy sources can be classified in different ways. One such way is to classify energy resources as renewable or non renewable resources.

a) Renewable sources 

This classification is based on whether the sources of energy are exhaustible or not. Renewable sources include hydro-electric power, dung cake, agricultural waste, solar energy, wind energy, tidal energy etc.

 b) Non-renewable sources

 Coal, oil and natural gas come under the category of non renewable sources as the reserves of these resources are limited. Non-renewable sources of energy cannot meet the long term requirement of energy of our country. On the other hand the potential of renewable sources is unlimited in our country. 

c) Arguments in favour of renewable sources

There are three arguments in favour of renewable sources of energy. First, considering the vast distances and the c of transportation of energy, locally available 

2. Discuss the advantages of using the renewable sources of energy. 

Ans. There are three arguments in favour of renewable sources of energy. First, considering the vast distances and the costs of transportation of energy, locally available renewable sources like solar, wind, biogas energy become attractive. Second, these resources are inexhaustible. Third, uses of these resources cause little pollution.

 3. Explain the availability position of coal and oil in India. 

Ans. Coal is one of the most common forms of fuel used for cooking and heating. This is the best source of power as well as fuel. Coal is an exhaustible source of energy. Coal, however, has played and is expected to play an important role in economic development of our country. Coal industry was in the private sector till it was nationalised in 1970’s with the creation of Coal India Ltd. (CIL). This was done to curb malpractices of coal mine owners. However, due to shortage of funds and to promote competitiveness, private sector investment has been encouraged in the coal industry through the Coal Mines Act of 1990s. 

The power sector is so far the largest consumer of coal. The other major consumers are steel, cement, railways, fertilisers and the household. Besides states like Bihar, Madhya Pradesh and West Bengal who are the largest producers of coal, states like Orissa, Assam, Maharashtra also contribute significantly in meeting our coal requirements. 

The coal reserves in our country at the beginning of 1992 stood at 196 billion tonnes. However, out of 196.02 billion tonnes, only 144 billion tonnes are mineable because of various technical problems. 

Further, only 70 billion tonnes of coal can be extracted economically ie at reasonable costs, based on present day technology. Industrial development during the 18th and 19th centuries was based on coal, which was the leading source of energy. At the end of the 19 century, however, mineral oil replaced coal as the leading source of energy. After Independence, India also imported large quantities of oil to accelerate economic development. Bombay High, Mahanadi Delta, Assam, Ankleshwar and Cambay in Gujarat, Arunachal Pradesh, Tripura etc. have known reserves of oil and natural gas. India’s crude output which averaged less than 2.5 lakh tonnes in early 1950s, shot up to over 10 lakh tonnes in 1962 after the development of Ankleshwar field in Gujarat and increase in production in Assam. The discovery and subsequent development of the Bombay field in western offshore in 1974 led to a pick-up in production to 100 lakh tonnes in 1977. With addition of Bombay High and other fields in western offshore are, India’s crude output touched a peak of 341 lakh tonnes in 1989-90. However after 1989-90, the growth in production of crude has remained slow. In 1995-96, production was 351 lakh tonnes. 

The long term availability position with regard to oil and natural gas is not satisfactory in India. The low availability of oil and natural gas in India, has always been a major area of concern for Indian planners. 

Oil and Natural Gas Corporation Ltd. (ONGC) contributed 90% of the total crude oil produced in the country in 1995-96 while rest was produced by Oil India Ltd. (OIL) and joint ventures. Through traditionally the production, refining and marketing of OIL and Gas is primarily the responsibility of Public Sector Undertakings, like ONGC, Oil, HPCL, GAIL, etc. In order to boost up availability of oil and petroleum product, the Government of India has thrown open major segments like oil exploration, development of oil and gas fields, refining, marketing etc. for private sector. 

Though the production of crude oil has increased from 2,5 lakh tonnes in 1950-51 to 351 lakh tonnes in 1995-96, the increase is not sufficient when one compares it with increasing demand. During 1995-96 the consumption of petroleum products was 747 lakh tonnes. Due to demand-supply gap in case of oil, India has to spend large amount of foreign exchange to import oil and oil product. At the same time the prices of oil and oil products are continuously increasing in the international market. This has raised our import bill considerably.

 4. Explain the availability position of electric power in India. Outline the major problems of the power sector.

 Ans. At present electricity is an important source of energy, This source of energy is generated with the help of many natural resources such as coal, diesel, oil, water etc. It is called the secondary sources of energy. The demand for electricity in India is large and is growing steadily. In absolute terms consumption of electricity is increasing day by day in almost all the sectors of the economy. 

Electricity generated through various sources can be classified in various heads which are the following: 

1.Thermal Power: 

Thermal power is the major source of electricity which is generated out of Coal, Oil and Natural Gas and also includes renewable energy sources like small hydro projects, wind power, biomass power, biomass solar power, urban and industrial waste etc. In the northern India the share of thermal electricity a hydro-electricity is total power production are equal. In easter 

and western India, a large share of total power production is contributed by thermal power. Coal is used on large scale in the generation of thermal power. This is the reason why big aluminium and steel plant have set up their own thermal power plants for availability of power. About 55% of the total power generation is contributed by thermal power.

2. Hydro-electric Power 

Electricity so produced by water is called Hydro-electricity. The construction of hydro-electric power plants requires a lot of time and heavy expenditure is incurred. Inspite of this it is the cheapest among all the three sources and it has no pollution agent. Hydro- electricity is a renewable source of energy.. 

Most of the hydro-electricity is produced in southern India because of the low level surface. There are plenty of water deposits in north eastern Himalayan region but they have not been properly utilised. Hydro-electricity power is utilised in western Himalayas specially in upper parts of Punjab.

Various river valley projects were started in India after Independence. The main objective of these projects was electricity generation. The electricity generation can be increased manifold by utilising water from canal, river, dams and lake.

3. Atomic electricity 

It is the latest source and gradually becoming a major source of power. It is generated from uranium and thorium. In India the known reserves of uranium are approximately 2000 tons which are very limited. But we have largest deposits of thorium in the world i.e. 5, 00,000 tons. The quantum of power generated from atomic mineral can be much more than what is from any other source. 

Tarapur, Kota, Kalpakkam, are examples of atomic power plants. Presently, the contribution of nuclear plants in total power generation is very marginal. The country is likely to have 

installed capacity of 2225 MW only at the beginning of Ninth Five Year Plan. reactors, Though the availability of uranium in our country is limited the country is endowed with good potential of generating nuclea power specially if thorium can be used in fast breeder r 

Following are the major problems of power sector: 

1.Limited supply of Fuel:- 

The limited the Indian Power sector, primarily electricity production is from thermal power stations. The main fuel used is coal. Coal fuels about 55% of India’s power generation, and if current projections are accurate, that proportion will grow substantially in the next 20 years. Additional power generation is likely to require incremental amount of coal transportation by Indian Railways within the country and increasing unloading at ports in India for imported coal. This is quite undesirable for our economy.

 2. Land acquisition and environmental clearance: 

Land availability is a substantial problem for power sector expansion. Power utilities face major delays in acquiring favourable land and environmental conditions.

 3. Delay in new projects: –

 Monetary flow required for the construction from one department to the another is extremely sluggish. Hence some of the projects stay on the paper only 

4. Interstate disputes: –

Because rivers cross state boundaries, constructing efficient and equitable mechanisms for allocating river flows has long been an important legal and constitutional issue. Due to this there is not availability of water all the times to operate hydro plants.

5. Unpromising monsoon conditions: – 

India has been facing the issue of low rainfall, especially in the area of hydro power plant reservoirs. This results in lesser power generatio and ultimately India has to depend on the fossil fuels. 

NIOS Class 12th Economics (318) Notes/Question Answer

Chapter Chapters NameLink
Chapter 1Economy and Its ProcessClick Here
Chapter 2Basic Problems of an EconomyClick Here
Chapter 3Economic Development and Indian EconomyClick Here
Chapter 4Statistics: Meaning and ScopeClick Here
Chapter 5Making Statistical Data MeaningfulClick Here
Chapter 6Presentation of Statistical DataClick Here
Chapter 7Statistical MethodsClick Here
Chapter 8Index Numbers (Meanings and Its Construction)Click Here
Chapter 9Index Numbers (Problem and Uses)Click Here
Chapter 10Income FlowsClick Here
Chapter 11National Income: ConceptsClick Here
Chapter 12National Income: MeasurementClick Here
Chapter 13Uses of National Income EstimatesClick Here
Chapter 14What micro EconomicsClick Here
Chapter 15What affects demandClick Here
Chapter 16What affects supplyClick Here
Chapter 17Price determinationClick Here
Chapter 18CostClick Here
Chapter 19RevenueClick Here
Chapter 20Profit maximizationClick Here
Chapter 21Government budgetingClick Here
Chapter 22Money supply and its regulationClick Here
Chapter 23Need for planning in IndiaClick Here
Chapter 24Achievements of planning in IndiaClick Here
Chapter 25Recent economic reforms and the role of planningClick Here

Optical Module – I

Chapter 26AgricultureClick Here
Chapter 27IndustryClick Here
Chapter 28Independence of Agriculture and IndustryClick Here
Chapter 29Transport and CommunicationClick Here
Chapter 30EnergyClick Here
Chapter 31Financial InstitutionsClick Here
Chapter 32Social Infrastructure (Housing, Health and Education)Click Here

Optical Module – II

Chapter 33Direction and composition of India’s Foreign tradeClick Here
Chapter 34Foreign exchange rateClick Here
Chapter 35Balance of trade and balance of paymentsClick Here
Chapter 36Inflow of capital (Foreign Capital and Foreign Aid)Click Here
Chapter 37New trade policy and its implicationsClick Here
Chapter 38Population and economic developmentClick Here
Chapter 39Population of IndiaClick Here

5. Explain the role of energy in economic development of India. 

Ans. The major areas where energy has contributed in a significant manner are outlined below:

1. Improvement in quality of life 

Energy has substantially improved the quality of human life. Application of energy for lighting, cooking, transport, heating, cooling, mechanisation etc. has made the life more comfortable. Energy is the main base of the high living standards of developed countries. Energy is not only essential to improve the physical quality of life but is also required for socio-economic development of the rural people of the country. 

2. Increasing productivity levels in various sectors 

The role of energy in development of agriculture sector is well known. The use of energy-run device like tractors, tube wells, threshers etc. in agricultural has enable the higher production of cereals, cash crops, vegetables, fruit and other agricultural products. The use of energy therefore helps to raise the income levels of the people through higher productivity. 

Consumption of energy is good indicator of level of economic activity of any country. In fact there is high degree of correlation between the large per capita consumption of energy and the high per capita income in these countries. The per capita consumption of energy in India is very low as compared to developed countries like Japan, USA, UK, etc. However with the growth in our economy, the energy consumption in India has been steadily going up. To meet the growing requirement of energy, our country produced approximately 27.1 crore tonnes of coal in 1995-96 as compared to 3.23 crore tonnes in 1950-51. Similarly, the electricity generation in 1995-96 was 415.2 billion KWH as compared to only 6.6 billion KWH in 1950-51. The production of other sources of energy like crude oil, petroleum products, natural gas etc. also shows an upward trend. 

The present day industries largely depend on use of energy for production of goods. Nearly half of the commercial energy is used in industrial sector. However, non-availability of energy resources is considered as one of the major constraints in rapid development of industrial sector in our country. Since energy is an important input for any industry, non-availability of the same results in lower utilisation of existing facilities. It is therefore necessary to increase the availability of energy. 

3. Generation of employment 

The use of energy has also increased employment opportunities through higher economic activity. Further, the energy sector itself provides immense employment opportunities. Coal industry alone provides employment to nearly 7 lakh people. In addition to this, there are many Government agencies/public undertaking which are engaged in the development and production of energy sources. These organisations provide employment to millions of people. With the onset of liberalisation process and encouragement to private sector for development of energy resources, it is expected that more and more employment opportunities will also be created in the private sector also. 

6. Explain the availability of various sources of energy being used in rural India. 

Ans. Following are the various sources of energy being used in rural India.

 (A) Coal

Coal is an Coal is the best source of power as well as fuel. C exhaustible source of energy. Coal, however, has played and is expected to play an important role in economic development of our country. Coal industry was in the private sector till it was nationalised in 1970’s with the creation of Coal India Ltd. (CIL). This was done to curb malpractices of coal mine owners.. However, due to shortage of funds and to promote competitiveness, private sector investment has been encouraged in the coal industry through the Coal Mines Act of 1990s. 

The power sector is so far the largest consumer of coal. The other major consumers are steel, cement, railways, fertilisers and the household. Besides states like Bihar, Madhya Pradesh and West Bengal who are the largest producers of coal, states like Orissa, Assam, Maharashtra also contribute significantly in meeting our coal requirements. 

The coal reserves in our country at the beginning of 1992 stood at 196 billion tonnes. However, out of 196.02 billion tonnes, only 144 billion tonnes are mineable because of various technical problems. Further, only 70 billion tonnes of coal can be extracted economically i.e. at reasonable costs, based on present day technology. 

(B) Oil and Natural Gas 

Industrial development during the 18th and 19th centuries was based on coal, which was the leading source of energy. At the end of the 19th century, however, mineral oil replaced coal as the leading source of energy. After Independence, India also imported large quantities of oil to accelerate economic development. Bombay High, Mahanadi Delta, Assam, Ankleshwar and Cambay in Gujarat, Arunachal Pradesh, Tripura etc. have known reserves of oil and natural gas. India’s crude output which averaged less than 2.5 lakh tonnes in early 1950s, shot up to over 10 lakh tonnes in 1962 after the development of Ankleshwar field in Gujarat and increase in production in Assam. The discovery and subsequent development of the 

Bombay field in western offshore in 1974 led to a production to 100 lakh tonnes in 1977. With addition of Bombay High and other fields in western offshore are, India’s crude output touched a peak of 341 lakh tonnes in 1989-90. However, after 1989-90, the growth in production of crude has remained slow. In 1995-96, production was 351 lakh tonnes. 

(C) Power

At present electricity is an important source of energy. This source of energy is generated with the help of many natural resources such as coal, diesel, oil, water etc. It is called the secondary source of energy. The demand for electricity in India is large and is growing steadily. In absolute terms consumption of electricity is increasing day by day in almost all the sectors of the economy. 

Electricity generated through various sources can be classified in various heads which are the following: 

1.Thermal Power: 

Thermal power is the major source of electricity which is generated out of Coal, Oil and Natural Gas and also includes renewable energy sources like small hydro projects, wind power, biomass power, biomass, solar power, urban and industrial waste etc.

In northern India the share of thermal electricity and hydro-electricity is total power production. In eastern and western India, a large share of total power production is contributed by thermal power. About 55% of the total power generation is contributed by thermal power. 

2. Hydro-electric Power 

Electricity produced by water is called Hydro-electricity. Hydro- electricity is a renewable source of energy. Most of the hydro-electricity is produced in southern India because of the low level surface. There are plenty of water deposits in the north eastern Himalayan region but they have not been properly utilised. Hydro-electricity power is utilised in western Himalayas specially in upper parts of Punjab.

 3. Atomic electricity 

It is the latest source and gradually becoming a major source of power. It is generated from uranium and thorium. In India the known reserves of uranium are approximately 2000 tons which are very limited. But we have largest deposits of thorium in the world i.e. 5, 00,000 tons. The quantum of power generated from atomic mineral can be much more than what is from any other source.

 Tarapur, Kota, Kalpakkam, are examples of atomic power plants. Presently, the contribution of nuclear plants in total power generation is very marginal. The country is likely to have installed capacity of 2225 MW only at the beginning of Ninth Five Year Plan. 

(D) Sun, Wind, and The Tides 

Sun and wind are non-conventional sources. Efforts are now being made to tap these resources. The non-conventional sources are now preferred because conventional sources are limited and polluting. Non-conventional sources are non exhaustible and non-polluting. 

1. Solar energy 

While the availability of solar energy is abundant, the need is to find cost-effective technologies to tab the solar energy. Some examples of the use of solar energy are solar cooker, street light, domestic lighting systems, and small power plants. During the year 1995-96, 680 street lighting system, 7470 domestic lighting system, 44938 solar lanterns and power plants of an aggregate capacity of 89 KWP were installed. The use of solar energy devices is being encouraged through subsidies.

2. Wind energy 

Wind energy is also available in abundance in coastal and hilly areas. Subject to techno-economic feasibility of converting it into useful energy, the wind energy potential has been estimated to be more than 10,000 MW. India has achieved considerable progress in the exploitation of wind energy during the last few years. A total capacity of 732 MW has been installed by the end of the year 1995-96 of which 684 MW has been in the private sector. It was expected to reach 1000 MW by the end of the eighth five-year plan and that would place India in the second position in wind energy after USA.

 3. Tidal energy 

Tidal energy, too, can become a major source of energy, because of large coastal area. 

(E) Biomass 

Fuel wood, animal dung and crop residues are biological sources of energy and are collectively referred as bio-mass. Fuel wood is important sources of energy for the rural and, to some extent, urban households. The growth in demand for fuel wood for industry, house construction, domestic use, etc. has led to decline in number of trees in the jungle. This has an adverse effect on environment. Fuel wood is supplemented by the dung and crop residues in meeting domestic energy needs in the rural area. The annual availability of wet dung has been estimated to be around 100 crore tonnes. The net annual availability of crop residues, which can be used as fuel was estimated to around 5 crore tonnes.

 Large scale afforestation at the village and regional levels can meet the local biomass requirements. Work in progress on 70 fast growing fuel wood tree species for raising yield and acreage in the country. 

(F) Bio-gas.

 A typical bio-gas plant converts animal and human excreta into organic manure, extracting methane in the process, which can be used extensively for both cooking and lighting purpose. It can also be used to carry out simple agriculture operations. The oil energy crisis in 1970s generated a lot of interest in bio gas plants. The government announced a series of subsidies and bank loan for construction of bio-gas plants in rural areas.

National project on bio-gas development was taken up in public sector during 1981-82 on a country-wise basis. Against the potential of 120 lakh numbers of family type biogas plants the installation has reached 23.59 lakh by 1995-96. Beside family type biogas plants, the ministry of Non-Conventional Energy Sources is also promoting the setting up of community and institution biogas plants in the country. 

7. List the various problem of energy sector of India. What steps have been taken to solve these problems? 

 Ans. Following are the list of major problem of energy sector of India 

1. Inadequate production

India’s energy problem is not one of imbalance between demand and production in oil only. In fact demand-supply imbalance is widening rapidly in all commercial fuels. Through the production of all commercial fuels has been rising but not to an adequate requirement. The growth in generation of power and the increase in crude oil production are much below the targets.

 2. Lack of financial resources 

Massive investments are required for development of energy resources. It is not possible to finance such massive investments

 3. Serious imbalance

 with only budgetary support. First, country has low reserves of oil and gas, however 

consumption pattern shows bias in favour of more and more usage of oil and gas. Second, urban areas use around 80% of commercial energy through their share in population is much less. Third, little progress in development of renewable commercial sources of energy like solar and wind power.

4. Insufficiencies 

The energy scene in India is marked by some serious inefficiencies, some of which are mentioned below: First, use of equipment and appliances which are not energy efficient. Second, considerable transmission and distribution losses especially in case of power. 

Third, inefficiencies of power plants, coal mines and oil drilling 

To improve energy position following measure are being taken:

  1. Thrust on oil exploration and stepping up indigenous crude oil production.
  2. Promotion of fuel-efficient devices. 
  3. Step to check the distribution losses in power. 
  4. Research and Development efforts for substitution of petroleum fuels.
  5. Development and utilisation of renewable energy resources. 
  6. Education of people regarding energy conservation and efficiency.
  7. Finance and subsidies for development and use of non renewable sources of energy. 
  8. Greater use of unconventional sources of energy 
  9. Allowing entry of private and foreign sector in the generation of electricity. 

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