Mains Practice Questions for the Day
- Q. Data centres are emerging as strategic infrastructure for India’s digital economy. Examine their significance and discuss the challenges associated with their rapid expansion. Suggest measures for building a secure and sustainable data-centre ecosystem.
- Q. The Incentive Scheme for Promotion of Domestic PNG Connections seeks to align the commercial interests of City Gas Distribution entities with India’s clean-energy objectives. Explain the scheme’s mechanism, significance and implementation challenges.
Q. Data centres are emerging as strategic infrastructure for India’s digital economy. Examine their significance and discuss the challenges associated with their rapid expansion. Suggest measures for building a secure and sustainable data-centre ecosystem.
Introduction:
A data centre is a secure facility that stores, processes and distributes digital information through servers, storage systems and networking equipment. India’s installed data-centre capacity increased from about 375 MW in 2020 to 1.57 GW in August 2026 and is projected to reach nearly 8 GW by 2030.
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Strategic Significance
- Digital economy: Data centres support digital payments, online banking, e-commerce, cloud computing and Artificial Intelligence.
- Digital governance: They ensure the continuous functioning of government portals, welfare databases and online public services.
- Data sovereignty: Domestic storage and processing bring critical data under Indian laws and regulatory oversight.
- Economic growth: Nearly USD 70 billion in investments are underway, with another USD 90 billion in announced projects.
- Technological self-reliance: They generate demand for domestic semiconductors, servers, networking equipment and cybersecurity services.
- Service resilience: Backup power, distributed storage and disaster-recovery systems ensure uninterrupted digital services.
The government has supported this sector by granting infrastructure status, offering tax incentives and promoting the IndiaAI Mission, Semicon 2.0, ECMS and PLI Scheme 2.0 for IT Hardware.
Major Challenges
- High electricity demand, projected to reach 17 GW by 2031–32
- Heavy water requirement for cooling systems
- Carbon emissions from fossil-fuel-based electricity
- Cyberattacks, data theft and service disruption
- Dependence on imported chips and high-end servers
- Concentration of facilities in a few metropolitan cities
- Growing electronic waste and concerns over data privacy
Way Forward
India should promote renewable-energy-powered data centres, closed-loop liquid cooling and mandatory disclosure of PUE, WUE and CUE. Cyber audits, encryption and disaster-recovery standards must be strengthened. Data centres should be geographically distributed to Tier-II cities. Domestic manufacturing, skilled human resources and responsible e-waste management must also be promoted.
Conclusion:
A technology-governance framework balancing innovation with security, sustainability and accountability can transform data centres into the digital foundation of Viksit Bharat 2047.
Q. The Incentive Scheme for Promotion of Domestic PNG Connections seeks to align the commercial interests of City Gas Distribution entities with India’s clean-energy objectives. Explain the scheme’s mechanism, significance and implementation challenges.
Introduction:
Piped Natural Gas (PNG) is supplied directly to households through City Gas Distribution (CGD) networks. It provides a cleaner, safer and more convenient alternative to conventional cooking fuels. As of August 2026, India had 1.74 crore domestic PNG connections across 309 Geographical Areas authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB).
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Mechanism of the Scheme
The Incentive Scheme for Promotion of Domestic PNG Connections, effective from September 2026, seeks to increase active and billed household connections.
- A minimum connection threshold is prescribed for every Geographical Area.
- CGD entities must add billed domestic connections beyond this threshold.
- For every eligible incremental connection, the entity receives 200 Standard Cubic Metres of domestically produced APM gas.
- This cheaper gas replaces costlier imported LNG used in the CNG transport segment.
- The reduced sourcing cost is expected to shorten the payback period on domestic connections from approximately ten years to three years.
Thus, the scheme encourages companies to convert unbilled connections into active ones and expand networks into new areas.
Significance
- Provides continuous, metered and comparatively affordable cooking gas.
- Eliminates the need to book, store and replace cylinders.
- Improves indoor air quality through cleaner combustion.
- Strengthens urban energy infrastructure and last-mile connectivity.
- Reduces dependence on cylinder-delivery logistics.
- Promotes domestic gas utilisation and improves energy security.
- Aligns corporate incentives with household welfare.
Implementation Challenges
PNG expansion faces high pipeline costs, Right-of-Way delays and construction difficulties in congested cities. Uneven State VAT rates affect affordability. Low-density areas may remain commercially unattractive. Dependence on imported LNG creates price risks, while pipeline leakage and methane emissions require strict monitoring.
Way Forward
India should ensure time-bound approvals, uniform Right-of-Way charges and rationalised State taxes. The unified registration portal must provide application tracking and grievance redressal. Smart meters, leak-detection systems and regular safety audits should accompany expansion.
Conclusion:
Effective Centre–State coordination and consumer-focused implementation can make PNG an important instrument of clean cooking, energy security and improved ease of living.
