Template-Type: ReDIF-Paper 1.0 Author-Name: Susan Das Author-Name-First: Susan Author-Name-Last: Das Author-Email: susan@trustbridge.in Author-Workplace-Name: TrustBridge Rule of Law Foundation Author-Name: Renuka Sane Author-Name-First: Renuka Author-Name-Last: Sane Author-Email: renuka@trustbridge.in Author-Workplace-Name: TrustBridge Rule of Law Foundation Author-Name: Ajay Shah Author-Name-First: Ajay Author-Name-Last: Shah Author-Email: ajayshah@mayin.org Author-Workplace-Name: xKDR Forum Title: Solarisation in agriculture in Tamil Nadu: A first principles evaluation Abstract: Shifting agriculture away from the grid may help address fiscal challenges faced by the Tamil Nadu state government. The paper presents a cost-benefit analysis of implementing solarised irrigation pumps in Erode district, Tamil Nadu. The analysis is based on underlying assumptions on climatic conditions, cropping patterns and irrigation requirements in the district. The results suggest that the state and discom can benefit from the solarisation of agriculture if they can sell surplus power to commercial and industrial (C&I) consumers or in the power exchange market. The paper also performs cost-benefit analysis with the assumption of reduction in solar panel costs in future and finds that the discom would continue to gain net positive benefits. The paper also recommends formalising higher feed-in tariffs, supporting capital cost through subsidies, and exploring alternative procurement approaches. Length: 32 pages Creation-Date: 2024-01 File-URL: https://papers.xkdr.org/papers/2024Dasetal_solarisationAgriculture.pdf File-Format: Application/pdf File-Function: First version, 2024 Number: 30 Classification-JEL: Q,H2,H53 Handle: RePEc:anf:wpaper:30 Template-Type: ReDIF-Paper 1.0 Author-Name: Charmi Mehta Author-Name-First: Charmi Author-Name-Last: Mehta Author-Email: charmi.94@gmail.com Author-Workplace-Name: xKDR Forum Author-Name: Radhika Pandey Author-Name-First: Radhika Author-Name-Last: Pandey Author-Email: radhesp@gmail.com Author-Workplace-Name: National Institute of Public Finance and Policy Author-Name: Renuka Sane Author-Name-First: Renuka Author-Name-Last: Sane Author-Email: renuka@trustbridge.in Author-Workplace-Name: TrustBridge Rule of Law Foundation Author-Name: Ajay Shah Author-Name-First: Ajay Author-Name-Last: Shah Author-Email: ajayshah@mayin.org Author-Workplace-Name: xKDR Forum Title: The electricity chokepoint in Tamil Nadu public finance Abstract: Indian electricity utilities face significant financial stress on account of unfunded subsidies. This paper places the problem of electricity subsidies in the context of a debt sustainability analysis (DSA) for Tamil Nadu. We find the state fails on five out of six indicators for debt sustainability. We integrate the electricity sector into the conventional DSA, giving a "corrected DSA". These modifications are material in changing our sense of the fiscal situation in the state. There are concerns about the extent to which the current fiscal path is sustainable. Fiscal stress harms investibility in electricity. Resolving the problems of electricity policy is a critical component of the development of the medium-term fiscal strategy for the state government. Length: 32 pages Creation-Date: 2024-02 File-URL: https://papers.xkdr.org/papers/MehtaPSS2024_tn_pf_electricity.pdf File-Format: Application/pdf File-Function: First version, 2024 Number: 31 Classification-JEL: H2,H3,H7,Q4,Q5 Handle: RePEc:anf:wpaper:31 Template-Type: ReDIF-Paper 1.0 Author-Name: R. A. Mashelkar Author-Name-First: R. A. Author-Name-Last: Mashelkar Author-Email: ram@mashelkar.com Author-Workplace-Name: Former DG, CSIR Author-Name: Ajay Shah Author-Name-First: Ajay Author-Name-Last: Shah Author-Email: ajayshah@mayin.org Author-Workplace-Name: xKDR Forum Author-Name: Susan Thomas Author-Name-First: Susan Author-Name-Last: Thomas Author-Email: sthomas.entp@gmail.com Author-Workplace-Name: xKDR Forum Title: Rethinking innovation policy in India: Amplifying spillovers through contracting-out Abstract: At independence, India committed itself fully to foster, promote and sustain the creation of science and scientific research in all aspects. In this paper, we present first principles reasoning on the case for state action, and the optimal mechanisms for using taxpayer resources, to fulfill this commitment. We argue in favour of a reorientation of public spending on innovation: away from building vertical government organisations, and in favour of a contracting-out strategy. Such a strategy would induce knowledge and capabilities in the society, and through this, induce greater gains for the people of India. We present a preliminary sketch of the path to implementation. Length: 52 pages Creation-Date: 2024-03 File-URL: https://papers.xkdr.org/papers/MashelkarST2024_rethinking_indian_innov.pdf File-Format: Application/pdf File-Function: First version, 2024 Number: 32 Classification-JEL: H11,H51,H52,H57,I18,I28,O32,O38 Handle: RePEc:anf:wpaper:32 Template-Type: ReDIF-Paper 1.0 Author-Name: Aneesha Chitgupi Author-Name-First: Aneesha Author-Name-Last: Chitgupi Author-Email: aneeshachitgupi@gmail.com Author-Workplace-Name: xKDR Forum Author-Name: Ajay Shah Author-Name-First: Ajay Author-Name-Last: Shah Author-Email: ajayshah@mayin.org Author-Workplace-Name: xKDR Forum Author-Name: Manish K. Singh Author-Name-First: Manish Author-Name-Last: Singh Author-Email: mks@hs.iitr.ac.in Author-Workplace-Name: Indian Institute of Technology, Roorkee Author-Name: Susan Thomas Author-Name-First: Susan Author-Name-Last: Thomas Author-Email: sthomas.entp@gmail.com Author-Workplace-Name: xKDR Forum Author-Name: Harsh Vardhan Author-Name-First: Harsh Author-Name-Last: Vardhan Author-Email: harshv89@yahoo.com Author-Workplace-Name: xKDR Forum Title: Who lends to the Indian state? Abstract: Much of Indian public finance research has focused on the level of debt and deficits. In this paper, we examine the structure of lenders to the Indian state. To what extent is this lending coerced? Is the present debt management strategy consistent with the objectives of low cost borrowing for the government in the long run, while preserving efficiency in the economy, and retaining the optionality of surging borrowing when faced with rare events? We find 5% of the lending to the Indian state comes from voluntary sources. While financial repression for banks eased `de jure' with a decline in the SLR from 33% in 1988 to 18% in 2021, lending to the state beyond regulatory requirements was Rs.30 trillion in 2021. Alongside this, the growth of the pension and insurance industries created new pools of assets where financial repression generated bountiful lending to the government. These facts help re-examine debt management strategy in India. Length: 40 pages Creation-Date: 2024-08 File-URL: https://papers.xkdr.org/papers/2024ChitgupiSSTV_who_lends_to_indian_state.pdf File-Format: Application/pdf File-Function: First version, 2024 Number: 34 Classification-JEL: H63, H68, H74, G28 Handle: RePEc:anf:wpaper:34 Template-Type: ReDIF-Paper 1.0 Author-Name: Suyash Rai Author-Name-First: Suyash Author-Name-Last: Rai Author-Email: suyashrai@gmail.com Author-Workplace-Name: xKDR Forum Title: Economic Development and Digital Transformation: Learning from the experience of Aadhaar and Financial Inclusion in India Abstract: The digital public infrastructure (DPI) approach has gained prominence in digital transformation, with India's Aadhaar often cited as a success story for accelerating financial inclusion. This paper critically evaluates India's progress on financial inclusion from 2011 to 2021, revealing a paradox: while account ownership surged, account usage remained low. The paper highlights that government and Reserve Bank of India (RBI) mandates drove rapid account opening, with Aadhaar enabling account opening mainly as a physical ID and an authentication tool for transactions. The financial inclusion efforts focused on expanding account ownership for direct benefit transfers, often at the expense of service quality. Banks, pressured to meet political targets, faced weak commercial incentives due to restrictive pricing regulations and mismatched service delivery models. These constraints hampered sustainable account usage. The paper explores whether alternative policy designs could have balanced electoral and economic goals more effectively. Demand-side constraints, shaped by socioeconomic conditions, and supply-side path dependencies influenced government choices. However, the analysis suggests room for greater political creativity in defining the policy objectives, liberalizing regulations liberalization to enhance financial inclusion, and leveraging the public sector banks. Finally, the paper discusses implications of this analysis for institutional reforms, including redesigning welfare schemes, revisiting public sector bank ownership, and rethinking top-down financial mandates. It also situates India's experience within the broader debate on the state's role in DPIs, challenging the notion that state-led DPI initiatives inherently maximize public value. Length: 61 pages Creation-Date: 2024-12 File-URL: https://papers.xkdr.org/papers/2024Rai_ecoDevelopmentDigitalTransformation.pdf File-Format: Application/pdf File-Function: First version, 2024 Number: 35 Classification-JEL: G28, H53, L86, O33 Handle: RePEc:anf:wpaper:35 Template-Type: ReDIF-Paper 1.0 Author-Name: Pavithra Manivannan Author-Name-First: Pavithra Author-Name-Last: Manivannan Author-Email: pavithra.manivannan4@gmail.com Author-Workplace-Name: xKDR Forum Author-Name: Charmi Mehta Author-Name-First: Charmi Author-Name-Last: Mehta Author-Email: charmimehta.frg@gmail.com Author-Workplace-Name: xKDR Forum Author-Name: Susan Thomas Author-Name-First: Susan Author-Name-Last: Thomas Author-Email: sthomas.entp@gmail.com Author-Workplace-Name: xKDR Forum Title: Improving supply chain management of medicines for public healthcare in India Abstract: This paper examines the prerequisites for successful drug procurement within the Indian public healthcare system. It argues that the primal objective is timely availability of medicines, and analyses two successful procurement cases, from which four common elements emerge. One, an information system on stocks and flows of medicine. Two, processes and manuals covering the full pipeline of the procurement contract. Three, procedures and work allocation during emergencies. Four, an information system on present and prospective vendors. These elements, coupled with a supply-chain focused mandate on delivery to the end user, and investments in regular training of personnel, enable a public healthcare system that can deliver medicines reliably. Length: 42 pages Creation-Date: 2024-12 File-URL: https://papers.xkdr.org/papers/2024Manivannanetal_rp_governmentProcurementDrugsIndia.pdf File-Format: Application/pdf File-Function: First version, 2024 Number: 36 Classification-JEL: H57, H75, H83, I1, L33, L38 Handle: RePEc:anf:wpaper:36