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Business News/ Politics / Policy/  Centre plans retreat for top officials to discuss energy needs
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Centre plans retreat for top officials to discuss energy needs

The retreat is expected to address 24-hour electricity supply to all, production of 1 billion tonnes of coal by 2019

The government has raised an earlier solar energy target of achieving 20,000MW capacity by 2022 to 100,000MW. Photo: BloombergPremium
The government has raised an earlier solar energy target of achieving 20,000MW capacity by 2022 to 100,000MW. Photo: Bloomberg

New Delhi: The National Democratic Alliance (NDA) government is planning a retreat for its top officials across the ministries of power, coal and new and renewable energy to discuss the country’s pressing energy needs, and streamline the efforts for energy security.

The first such retreat spread over three days is expected to be addressed by Prime Minister Narendra Modi and is part of the government’s integrated approach to energy issues. Some of the critical issues that the high-profile retreat is expected to address are supply of 24-hour electricity to all, production of 1 billion tonnes of coal by 2019 and generating 100,000 MW of solar power by 2022.

“It is a thought process and provides a platform for informal brainstorming session. The discussions may be about supplying 24X7 electricity to all, producing 1 billion tonne of coal by 2019 and 100,000 MW of solar by 2022," a government official aware of the event said, requesting anonymity.

“The retreat has been planned from 7 to 9 February and is the first of its kind being planned in India. This is part of the government’s integrated approach to energy security. The message is clear: we can no longer operate in silos," another official said on condition of anonymity.

India’s energy woes have meant that the country has been hard-pressed to generate enough power to keep its economic engine chugging, and at a price that makes its manufacturing competitive. Of India’s installed power generation capacity of 2,55,681.46 MW, power projects totalling 1,54,170.89 MW are fuelled by coal. Growth in the production of coal has been unable to keep up with demand—the power sector consumes nearly 80% of the domestic output.

While queries emailed to the spokespersons of ministries of power, coal and new and renewable energy and the prime minister’s office (PMO) remained unanswered, a third government official who also didn’t wish to be identified confirmed the plans. “We have to plan for the future."

India’s per capita power consumption, around 940 kilo watt-hour (kWh), is already among the lowest in the world. In comparison, China has a per capita consumption of 4,000 kWh, and developed countries average around 15,000 kWh.

The Modi government in its effort to streamline the government, has reconstituted cabinet committees, scrapped the system of appointing groups of ministers, and empowered ministers of state with independent charge such as Dharmendra Pradhan, Prakash Javadekar, Piyush Goyal and Nirmala Sitharaman, among others, to handle the key economic portfolios that require urgent attention to ensure a quick economic revival.

As part of the exercise of speeding up decision-making, the government’s attempt for a coordinated approach between various ministries resulted in Piyush Goyal being handed the ministries of power, coal and new and renewable energy.

Guaranteeing adequate supply at affordable prices is a priority for the government. The government has approved an outlay of 43,033 crore to fund an ambitious initiative to supply electricity through separate feeders for agricultural and rural domestic consumption, aimed at providing round-the-clock power to village households. Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), named after an icon of the ruling Bharatiya Janata Party (BJP), is aimed at ensuring around eight hours of quality power supply to agricultural consumers and 24-hour electricity to households. In addition, it would also help reduce India’s aggregate transmission and commercial (AT&C) losses by five percentage points from the present 27%.

The centre has also approved spending 32,612 crore on an integrated power development initiative, which involves strengthening sub-transmission and distribution systems.

The government has also raised an earlier solar energy target of achieving 20,000 megawatts (MW) capacity by 2022 to 100,000MW. The government also plans to have 60,000MW of wind power capacity by then, requiring an overall investment of around 10 trillion in the renewable energy sector.

Behind only China and the US in coal consumption now, India is expected to become the second largest consumer of the mineral by 2016-17, with demand reaching 900 mt.

Coal India, the world’s largest coal miner, is struggling to meet rising demand for the fuel. While India’s power generation capacity grew 60% over the last five years, coal production only expanded by around 6%. The country mined 532 mt in 2009-10, 533 mt in 2010-11 and 540 mt in 2011-12. Production was 557 mt in 2012-13 and 564 mt in 2013-14.

“The country is craving for energy security and energy at affordable prices. India will be self-sufficient in energy," Piyush Goyal had earlier said.

The centre’s renewed focus on green energy comes in the backdrop of the US and China inking a climate change deal wherein the US will reduce its emissions by 26-28% below its 2005 level by 2025 and China will reach the peak of its harmful carbon dioxide emissions in around 2030.

“Energy leaders believe that the emissions agreement between China and the US, announced in November 2014, has increased the pressure on other large emitters whose stance and approach to cutting emissions still pose a large question mark for investors," World Energy Council said in a 20 January statement.

The centre’s focus on energy security also stems from the fact that India has an energy import bill of around $150 billion, expected to reach $300 billion by 2030. India imports 80% of its crude oil and 18% of its natural gas requirements.

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ABOUT THE AUTHOR
Utpal Bhaskar
"Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
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Published: 22 Jan 2015, 12:25 AM IST
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