The document discusses India's energy crisis and the current energy situation in India. It notes that India's energy demand is three times more than developed countries for the same production. The main causes of energy crisis are overconsumption, overpopulation, climate change impacts, and political/supply issues. There have been three major energy crises since the 1970s due to events like the OPEC oil embargo and Gulf wars. Currently, hundreds of millions of Indians still lack access to electricity and rely on biomass. The government is taking steps to improve energy access and shift towards renewable sources to solve the crisis.

1. ENERGY CRISIS
IN INDIA

3. INTRODUCTION
 Concept: an energy crisis is any great bottle neck or price rise in the supply
of energy resources to a country.
Representation: oil crisis, petroleum crisis, energy shortage, electricity
shortage or electricity crisis.
 Energy crisis does not mean the scarcity of energy, the meaning of energy crisis
is the problems of production and distribution for any reason.
 Energy Crisis = Demand of energy >> Supply of
energy

4. What causes an energy crisis?
• Demand-side:
• Over-consumption due to energy inefficiencies, India's consumption of
energy, is three times more than developed countries for the same quantity
production.
• Overpopulation, the rise of the middle and high-class people increases the
energy demand
• Due to climate change, more energy is needed for cooling and warming of
home.
• Supply-side
• Political crisis in OPEC countries
• US sanctions on Iran, Russia, and Venezuela (recent )
• The cartel of OPEC countries
• Overexploitation of resources leads to a loss of resources.

5. There is three energy crisis since the
industrial revolution.
• The energy crisis of 1973: The main cause of the 1973 energy crisis was OPEC. In
1960, OPEC was formed to control the pricing. In 1973, the petrol price was raised
from 1.5 $ per barrel to 7 $ per barrel, 5 times. In 1980, the price further rose to 25
$ per barrel.
• The energy crisis of 1990: Second energy crisis, 1n 1990 Iraq invaded Kuwait,
due to this oil crisis happened.
• The energy crisis of 2005-08, the third energy crisis, in 2005 petrol price 78 $ per
barrel, in 2008, it was 148 $ per barrel. It caused by two reasons:
• Supply cut by OPEC countries
• Demand increases by developing countries such as the rise of China & India.


7. THE CURRENT ENERGY SITUATION IN
INDIA
 India is a rapidly growing economy which needs energy to meet its growth
objectives in a sustainable manner.
 The increasing energy requirements coupled with a slower than expected
increase in domestic fuel production has meant that the extent of imports in
energy mix is growing rapidly.
 India has a population of over 130 billion with 70% of total population living
in rural areas. Out of these , 396 million ie ; 44.7 % of total population does
not have access to to electricity.
 The same for urban areas is 7.3 %

8.  592 million ( rural – 62.5 % , urban - 20.1 %) still use firewood for cooking
 Majority of the people residing in rural areas are still dependent on non-commercial energy
sources such as fuel wood, crop residue, and animal waste for their energy needs.
 The use of biomass for cooking also contributes to the indoor air pollution , which cause 488.200
deaths in 2004.
 The installed power capacity of power plants in India 1,90,593MW ( including 22,252MW from
renewable energy ).
 The gross electricity generation in our country during 2011-12 was 798.9 billion units, including
imports from Bhutan.
 In 2011-12 the energy deficiency stood at 8.3% ( 782124 < 853324 )
 Even in 2018-19 the peak power deficit of India stood at 0.8% and the overall energy deficit was
0.6 %. This was against the load generation balancing report of the CEA which predicted a peak
power surplus of 4.6%

12. How can we solve the energy crisis?
•
Uses of an energy-efficient tool such as 5-star electronic items
• Regular servicing of machinery
• People awareness about energy importance
• The exploitative nature of OPEC must be stopped.
• Finding alternative of petrol
• Must invest in renewable energy infrastructure, for examples FAME India
program
• Stability should be insured in oil-rich countries.

13. Seminar topic 2 :

14.  What is an asset for a bank?
 Asset means anything that is owned. For banks, a loan is an asset because the
interest we pay on these loans is one of the most significant sources of income for
the bank. When customers, retail or corporates, are not able to pay the interest,
the asset becomes ‘non-performing’ for the bank because it is not earning
anything for the bank. Therefore RBI has defined NPAs as assets that stop
generating income for them.
 Non-Performing Assets (NPA)
 NPA expands to non-performing assets (NPA). Reserve Bank of India defines NPA
as any advance or loan that is overdue for more than 90 days. “An asset
becomes non-performing when it ceases to generate income for the bank,” said
RBI in a circular form 2007. To be more attuned to international practises, RBI
implemented the 90 days overdue norm for identifying NPAs has been made
applicable from the year ended March 31, 2004. Depending on how long the
assets have been an NPA, there are different types of non-performing assets as
well.

15. Categories of NPA
 There are different types of non-performing assets depending on how long they remain in
the NPA category.
 a) Sub-Standard Assets
 An asset is classified as a sub-standard asset if it remains as an NPA for a period less than
or equal to 12 months.
 b) Doubtful Assets
 An asset is classified as a doubtful asset if it remained as an NPA for more than 12
months.
 c) Loss Assets
 An asset is considered as a loss asset when it is “uncollectible” or has such little value that
its continuance as a bankable asset is not suggested. However, there may be some
recovery value left in it as the asset has not been written off wholly or in parts.

16. NPA Provisioning
 Keeping aside the technical definition, provisioning means an amount that
the banks set aside from their profits or income in a particular quarter
for non-performing assets; such assets that may turn into losses in the
future. It is a method by which banks provide for bad assets and to maintain
a healthy book of accounts.
 Provisioning is done according to which category the asset belongs to. The
categories have been mentioned in the above section. Not only the type of
asset, but provisioning also depends on the type of bank. Like, Tier-I banks
and Tier-II banks have different provisioning norms.
 What are the reasons for NPA?
 The factors that are contributing to NPA are poor loan management policy,
improper credit appraisal, business failures, poor recovery of receivables,
sluggish legal system, industrial recession, and adverse exchange rates etc.

17. GNPA and NNPA
 Banks are required to make their NPAs numbers public and to the RBI as well from
time to time. There are primarily two metrics that help us to understand the NPA
situation of any bank. NPA numbers for a bank will be mentioned in the standalone
financial statements of a bank.
 GNPA: GNPA stands for gross non-performing assets. GNPA is an absolute
amount. It tells you the total value of gross non-performing assets for the bank in a
particular quarter or financial year as the case may be.
 NNPA: NNPA stands for net non-performing assets. NNPA subtracts the provisions
made by the bank from the gross NPA. Therefore net NPA gives you the exact
value of non-performing assets after the bank has made specific provisions for it.

18. NPA Ratios
 NPAs can also be expressed as a percentage of total
advances. It gives us an idea of how much of the total
advances is not recoverable. The calculation is pretty simple:
 GNPA ratio is the ratio of the total GNPA of the total
advances.
 NNPA ratio uses net NPA to find out the ratio to the total
advances.

19. NPAs IN INDIA

20. What were the reasons behind the rise of Non
Performing Assets in India?
1. In the period from 2004 to 2009, there was a huge growth in the economy, which led
to firms taking bank loans very aggressively.
2. Most of the investment was in infrastructure sectors like roads, power, aviation, steel
3. Laxity in lending norms by the banks, without analysing the financial health of the
companies and their credit ratings
4. The banning of mining projects, delay in environment permit, led to a rise in prices of
raw materials and a big gap in demand and supply thereby affecting the power,
steel, and iron industries. This affected the capacity of the companies to repay the
loans to banks which resulted in Non-Performing Assets (NPA).

21. What are the impacts of Non-Performing Assets
(NPA)
1. Banks won’t have sufficient funds for other
development projects which will impact the
economy
2. To maintain a profit margin, banks will be forced to
increase interest rates.
3. Due to the curb in further investments, it may lead
to the rise of unemployment.

22. Measures Details
Debt Recovery Tribunal (DRT) – 2013 1.It was set up to reduce the time required for settling cases
2.Governed by Recovery of Debt due to Banks and Financial Institutions Act, 1993
3.Insufficient numbers, hence cases are pending for longer durations.
Credit Information Bureau (2000) 1.This step is to prevent NPA’s by sharing of information on wilful defaulters
ARC (Asset Reconstruction Companies) 1.Recovering value from stressed loans bypassing courts which was a time-consuming process.
Corporate Debt Restructuring (2005) 1.Reduce the burden of debts on the company by giving more time to the company to payback as well as decreasing the rates along with it
5:25 Rule (2014) 1.This is also called Flexible Restructuring of Long Term Project Loans to Infrastructure and Core Industries
2.This involves refinancing of long term projects
Joint Lenders Forum (2014) 1.It is done to avoid a situation where a loan is taken from one bank to repay the loans in other banks
Mission Indradhanush (2015) 1.It is the most comprehensive reforms undertaken to improve the functioning of the Public Sector Banks, by using the ABCDEFG formula.
Strategic Debt Restructuring (SDR) – 2015 1.Corporates who have taken loans from banks if they are unable to repay, then the banks can convert part or complete loans into equity shares
Asset Quality Review (2015) 1.This is a kind of preventive measure, involving early identification of assets which could turn out to be stressed at a later stage.
Insolvency and Bankruptcy Code (2016) 1.One-stop process for solving insolvencies.
2.Aims to protect small investors.

23. CONCLUSION
 High NPAs may not be favourable for a bank. This is because they are
assets that are not performing. High NPAs mean that banks have too
many loans that have become non-functional or are not rendering any
interest income to the bank. Banks can either keep the NPAs in their
books in the hope that they may be able to recover it or make
provisions for it. Or else, banks write off the loans entirely as bad
debt. However, there are many other factors to assess a bank apart
from NPA.