3) Greater diversification of energy will be imperative for Indian refining and marketing companies in order to mitigate the disruptive potential of EVs over the longer term. Comment.(250 words)

Print Friendly, PDF & Email

Topic– Conservation, environmental pollution and degradation, environmental impact assessment;

Infrastructure: Energy, Ports, Roads, Airports, Railways etc

3) Greater diversification of energy will be imperative for Indian refining and marketing companies in order to mitigate the disruptive potential of EVs over the longer term. Comment.(250 words)

Financial express

Why this question

Growing pollution concerns and increasing demand and adoption of EVs which is bound to increase to 40% on medium term basis, are serious threats to the refining and marketing companies of India. Thus it is important to discuss what are the  risks and how to mitigate them.

Directive word

Comment- here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Key demand of the question.

The question wants us to discuss the disruptive potential of EVs in the long run and express our opinion as to how risks are posed by them to the Indian refining and marketing companies and how they can be mitigated by energy diversification.

Structure of the answer

Introduction– Write a few lines about the growing need to combat air pollution, of which the automobile sector is a major source, and the growing popularity of EVs. Mention their anticipated growth rate.

Body-

  • Discuss further the growing popularity and reducing costs of EVs and mention that strong incentives by countries/governments such as lower taxes and toll exemptions auger well for EV growth. Nonetheless, the main challenge to growth is the need to build adequate infrastructure for charging EVs, which is bound to take time etc. mention that in the near future EVs will have a disruptive effect in automobile sector especially the  refining and marketing companies.
  • Discuss what are the risks posed. E.g mention the growing oil demand; domestic refining and marketing companies’ expansion of refineries to cater to the rising demand for petroleum products as the economy progresses; substitutes in the form of domestic gas and LNG could slow down the demand of other petroleum products like naphtha, furnace oil and LPG, which could put more pressure on profitability.
  • Bring out the need for energy diversification in order to mitigate the risks involved.

Conclusion– Based on your discussion, form a fair and a balanced conclusion on the given issue.