With reference to solar power production in India, consider the following statements: 1) India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units. 2) The solar power tariffs are determined by the Solar Energy Corporation of India. Which of the statements given above is/are correct?

Both statements are false, so D is correct.

Statement 1 is wrong. India is nowhere near the top in silicon wafer manufacturing. China dominates wafer, cell and module production, and Taiwan, Japan and the US are also far ahead of India. Indian wafer and cell capacity has been very small, which is why the government's Production Linked Incentive scheme for high-efficiency solar modules and cells is a recent push.

Statement 2 is wrong. SECI does not fix solar tariffs. Where tariffs are regulated, the Central Electricity Regulatory Commission or the State Electricity Regulatory Commissions determine them under the Electricity Act, 2003. Most utility-scale solar now comes through competitive bidding, where SECI or state agencies run auctions and the discovered lowest bids become the tariff. SECI is the auctioneer, not the tariff-setter.

Core concept: the difference between regulatory tariff-setting and competitive bidding, along with India's dependence on Chinese solar supply chains, a common Mains theme on renewable energy and manufacturing.

Trap: assuming that because SECI runs the auctions, it determines the tariff.