April 2009 Vol 53 - YojanaS(peqgcef5ew31ax45tcloy345))/pdf/Yojana/... · YOJANA April 2009 1 ... Marathi, Oriya, Punjabi ... requirement by increasing energy efficiency. Energy conservation

YOJANA April 2009 1

C O N T E N T S

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ENSURING ENERGY SECURITY ............................................. 5 Kirit S Parikh

INTEGRATED ENERGY POLICY ............................................. 8 M Satyamurty

DO YOu KNOw .................................................................... 13

ExPLOITING NUCLEAR ENERGY TO PROVIDE LONG-TERM ENERGY SECURITY........................................ 14 R B GroverKASHMIRI WOMEN: RISING ABOVE CONFLICT ............. 18 Nusrat AraSECURING OFF-TRACK MOBILITY – THE TRUE OIL SECURITY .............................................................. 20 Subir Raha BEST PRACTICES FIRST WATER PYRAMID THROUGH PEOPLE’S PARTICIPATION ................................ 24 V S GadhaviROLE OF RENEWABLE ENERGY IN INDIA ........................ 28 Atul Kumar, Ritu Mathur

April 2009 Vol 53

Chief Editor : Neeta Prasad

Incharge : Manogyan R. Pal

Joint Director (Prod) : N.C. Mazumder

Cover Design : Asha Saxena

E-mail (Editorial) : [email protected] : [email protected]

Website : www.yojana.gov.in

Let noble thoughts come to us from every sideRig Veda

(Circulation) : pdjucir_ [email protected]

IN THE NEwS ........................................................................ 32

RURAL ELECTRIFICATION IN INDIA .................................. 33 Dharitri Panda

ENERGY IS LIFE – CONSERVE IT ......................................... 38 Ajay Mathur

NORTH EAST DIARY ........................................................... 42

TRADING IN POWER .............................................................. 43 V Shunmugam

RENEWABLE ENERGY : CAN IT BRIDGE THE GAP? .................................................................................. 47 B K Saha

SHODH YATRA GRASSROOTS INNOVATIONS FOR ACHIEVING ENERGY SECURITY ........................................ 51

BOOK REVIEw .................................................................... 55

2 YOJANA April 2009

ECONOmiC iNdiCATOrSANNuAL INDICATORS

units Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08 Oct-08

Nov-08

Dec- 08

Jan-09

Feb '09

Prices

“Wholesale price index (All Commodities)”

1993-94= 100

213.8 215.1 215.2 215.9 216.4 218.2 219.9 225.5 228.5 231.1 237.4 240 241.2 241.5 239 234.2 229.8 229.6

% change 4.14 3.51 3.13 3.25 3.83 4.47 5.27 7.52 8.04 8.86 11.82 12.35 12.85 12.29 11.08 8.48 6.17 5.25

Agriculture

Actual rainfall (All-India) Millimetres 299 194 75 14 16 19 19 32 37 38 159 276 249 175 62 14 22 11 11

Dev. from normal rainfall Per cent -2 14 -22 -49 1 -19 -14 21 -15 -31 22 -15 2 0 -40 -54 5 -40 -53

Stock of Rice (Central pool) mln. tns. 6670 10650 10050 11150 13840 12860 12130 9793 8472

Stock of Wheat (-do-) mln. tns. 10862 9020 8360 7352 5800 17690 24120 24380 23259

units 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 (Proj.)

Population (as on 1 Oct) in crores 101.9 103.8 105.5 107.2 108.9 110.6 112.2 113.8 115.4

GDP at current market prices (new series) Rs.crore 2102314 2278952 2454561 2754621 3149412 3580344 4145810 4713148

GDP:Per Capita (current prices) Rupees 20631 21955 23266 25696 28920 32372 36950 41416

Gross domestic savings (current prices) % of GDPmp 23.7 23.5 26.4 29.8 31.8 34.3 34.8

Gross domestic capital formation (cur. pr) ” 24.2 24.2 25.2 26.8 31.6 34.5 36 37.5

Central Govt. Gross Fiscal Deficit ” 5.7 6.2 5.9 4.5 4 4.1 3.4 3

Sectoral shares (of GDPfc at current prices)

Agriculture & allied % of GDPfc 23.4 23.2 20.9 21.0 19.2 18.8 18.4 17.8 -

Industry " 26.2 25.3 26.5 26.2 28.2 28.8 29.3 29.4 -

Services " 50.5 51.5 52.7 52.8 52.6 52.4 52.4 52.8 -

Prices (Annual Average)

WPI of All commodities (wt 100.00) Apr 1993=100 155.7 161.3 166.8 175.9 187.2 195.5 206.1 215.9 -

CPI-IW General index: India Jul 2001=100 95.9 100.1 104.1 108.1 112.2 117.2 125.0 132.8 -

Agriculture: Production

Foodgrains mln. tns. 196.8 212.9 174.8 213.3 198.4 208.6 217.3 219.3 227.9

Cereals " 185.7 199.5 163.7 198.3 185.2 195.2 203.1 205.0 213.6

Rice " 85.0 93.3 71.8 88.5 83.1 91.8 93.4 94.1 98.9

Wheat " 69.7 72.8 65.8 72.2 68.6 69.4 75.8 78.4 80.0

Pulses " 11.1 13.4 11.1 14.9 13.1 13.4 14.2 14.3 14.3

Oilseeds " 18.4 20.7 14.8 25.2 24.4 28.0 24.3 27.2 26.0

Sugar cane " 296.0 297.2 287.4 233.9 237.1 281.2 355.5 345.6 304.0

Industry & Energy

“Index of industrial production (wt 100) (Annual Average)”

Apr 1993=100% change

162.695.1

166.992.6

176.645.8

188.977.0

204.88.4

221.528.2

247.0511.5

268.028.5

-4.5

Commercial energy production MTOE # 230.88 237.93 246.86 259.22 272.05 283.94 298.62 309.53 -

Electricity generation by public utilities bln. kwh 501.2 517.4 532.7 565.1 594.5 623.8 670.7 704.5 -

External Transactions

Exports US $ mln. 44147 43958 52823 63886 83502 103075 126276 159089 171000

Imports " 50056 51567 61533 78203 111472 149144 185081 238605 279000

Forex reserves ^ " 39554 51049 71890 107448 135571 145108 191924 299147

Foreign direct investments in India (net) " 4029 6130 5035 4322 6051 8961 22079 32435

Portfolio investments in India (net) " 2760 2021 979 11356 9311 12494 7004 29096

Rupee exchange rate (Annual Average) Rs / USD 45.61 47.55 48.30 45.92 44.95 44.28 45.29 40.24

Investments (CMIE CapEx database) Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Sep-08“Project investments outstanding* (as on)”

Rs.crore 1493137.68 1408492.48 1505207.3 1924816.57 2774484.38 4264299.36 6040354.03 7305775.73

project count 6483 7604 9471 10023 10231 12744 15190 15900

Indicators: Monthly

Note: (a) % change is year on year (y-o-y) basis; (b) # MTOE: Million Tonnes of Oil Equivalent; (c) ^ Total value of foreign currencies held by Govt. of India (excl. gold & SDRs); (d) * It is the sum total of the project costs of all the outstanding (Live) capital expenditure projects happening in the country. These projects may be under announced or under-implementation stage.

Source: i3 (i-cube) at Planning Commission, New Delhi, Centre for Monitoring Indian Economy (CMIE)

YOJANA April 2009 3

About the Issue

Perhaps the biggest challenge before India today is how to provide energy to its people- energy to light their homes and hearth, energy to run the wheels of development, energy to maintain the spectacular growth rate achieved in

recent years. The end of our fossil fuel reserves is on the horizon. Given the global uncertainties and fluctuations associated with the oil sector, an over dependence on imports of oil, gas and petroleum products – though seemingly unavoidable – may not be very prudent. Generation of electricity from renewable sources like the sun and wind is proving to be expensive, yet we know that our commitment towards arresting global warming and the ill effects of climate change means that we must rapidly move towards greener and cleaner energy sources. So how does the energy scene in the country appear in the coming decades ? What are the strengths and weaknesses of each sector ? How does India plan to provide adequate, uninterrupted, affordable and clean energy to its people ?

In the current issue of Yojana, subject experts and eminent persons from the field discuss the challenges faced by the country with regard to its overall energy security. Prospects of individual energy sectors like oil, non-conventional energy sources and rural electrification have been analysed in depth.

We also bring to you the salient features of India’s first Integrated Energy Policy. The policy aims at securing both the lifeline energy needs of the common man, as well as the requirements of a rapidly growing economy. It defines energy security as adequate and uninterrupted availability of varied forms of energy at reasonable prices and lays down a roadmap for providing the same. Till quite late in our planning process the various energy sectors like coal, oil, hydel and non-conventional energy sources were being developed independently, each under its own administrative ministry. The Integrated Energy Policy provides an integrated framework for the development these energy sectors, and lays down that the policies of each sector should be consistent with the overall national energy policy framework. The energy policy aims at augmenting availability of energy by expanding the resource base and developing alternate energy sources, creating competitive markets, encourage research and development. The policy has a socio-economic focus, and lays a lot of stress on reducing overall energy requirement by increasing energy efficiency.

Energy conservation has emerged as a major policy objective in recent years, as reflected by India’s Energy Conservation Act, 2001. The current issue also offers a glimpse to its readers, of the initiatives undertaken in this regard.

With this issue of Yojana, our intention is not to alarm our readers, but to nudge them into action because energy security is as much about making energy available, as about using it judiciously, efficiently and cleanly – as much about government action as about people’s cooperation. q

4 YOJANA April 2009

YOJANA April 2009 5

Ensuring Energy Security

ENErgy SECuriTy

NERGY SECURITY b r o a d l y m e a n s continuous availability of energy in varied forms in sufficient

quantities at reasonable prices. India can be said to be energy secure when all our citizens, irrespective of their ability to pay, are ensured lifeline energy and well as their effective demand for safe and convenient energy to support economic growth are met at competitive prices all the time with a desired confidence level considering shocks and disruptions that can be reasonably expected.

This definition stems from the fact that growth cannot be inclusive and sustainable unless all citizens have access to safe and convenient energy for their basic needs because traditional fuels such as wood or dung cakes cause indoor air pollution and lead to adverse impact on health, particularly that of women and children. Energy demand is a

E

The author is Member, Planning Commission, Government of India, New Delhi.

Energy security for the country and its people

requires a broad based set of measures

covering almost all aspects of the

energy sector

Kirit S Parikh

function of multiple variables such as accessibility, affordability and usability. The price of energy and people’s ability to pay, play an important role in expected levels of consumption. Energy is required in different forms such as heat and light. Different fuels can be substituted by each other. However, such substitution often involves cost or loss in the quality of service. Further, interruptions in energy availability lead to increased cost in an industry. Thus, energy security should also guard against all reasonable shocks and disruptions affecting energy supply. One can have a buffer stock to guard against disruption in supply. However, buffer stocks are expensive to carry. The size of the stock should balance the cost of carrying it and the cost of disruption of supply.

Requirement of energy in the country will keep on rising with development and growth. We are short of most of energy

OVErViEw

6 YOJANA April 2009

resources. Long term demand estimates of commercial energy requirement in India leaves no option of choosing among alternate domestic energy resources but exploiting all available domestic energy resources to the maximum as long as they are competitive. Our country is not endowed with sufficiently large oil and gas resource. The abundance of coal resource in the country is a virtual myth because most of currently known mineable coal may run out in 45 to 50 years. Poor availability of atomic minerals has restricted the development of atomic energy. Technological breakthrough is still elusive for good solar insolation convert in usable form of energy. Population pressure could hold back development of all our hydro potential. In any case our hydro resources are also limited and can meet less than 10 percent of our projected electricity requirement for year 2030. How do we achieve energy security?

Ensuring energy securi ty requires dealing with various risks. India’s growing dependence on energy imports exposes its energy needs to external shocks. These could either be supply risk, market risk or technical risk. Supply risk relates to when supply is not available even when you have the money to pay for it. The threat to energy security arises not just from supply risks and the uncertainty of availability of imported energy, but also from possible disruptions or shortfalls in domestic production. Geo-political situations within the country or in the international waters could also disrupt supply. Even if there is no disruption of supply, there can be the market

risk of a sudden increase in energy price. Even when the country has adequate energy resources, technical failures may disrupt the supply of energy to some people. Generators could fail, transmission lines may trip or oil pipelines may spring a leak.

Risks can be reduced by lowering the requirement of energy by increasing efficiency in production and use; by substituting imported fuels with domestic fuels; by diversifying fuel choices (gas, ethanol, orimulsion tar sands etc.) and supply sources; and by expanding the domestic energy resource base. Risks can also be dealt with by increasing the ability to withstand supply shocks through creation of strategic reserves, the ability to import energy and face market risk by building hard currency reserves and by providing redundancy to address technical risks.

Expanding domestic resource base, acquiring energy assets abroad, laying pipelines for importing gas, building LNG terminals, improving and augmenting port facilities, enhanced diplomacy for continuance of energy import for bridging the gap between demand and indigenous supply are some of the measures for ensuring continuous supply of energy in the country. It may also be necessary to build reserves of foreign currency for enhancing our ability to import energy.

Maintaining a reserve, equivalent to 90 days of oil imports for strategic-cum-buffer stock purposes and/or buy options for emergency supplies from neighboring large storages such as those available in

Singapore address short-term price volatility. A strategic stockpile of nuclear fuel should also be built to counter the risk of disruption of international fuel supply.

Since national oil companies of different countries control eighty percent of global hydrocarbon reserves, oil diplomacy establishing bilateral economic, social and cultural ties with hydrocarbon exporting countries could reduce supply risk. For the purpose of providing guidance in coordinating our external interface on energy security matters, it is necessary to have an institutional mechanism in the form of group of ministers, comprising of the Finance Minister, Minister of Petroleum & Natural Gas, Minister of Coal, Minister of Power and the Minister of State for New & Renewable Energy and the Deputy Chairman of the Planning Commission. Such mechanism would also provide overall authority for the conduct of structured energy dialogues with selected countries.

Nuclear energy theoretically offers India the most potent means to long-term energy security. India has to succeed in realising the three-stage development to tap its vast thorium resource to become truly energy independent beyond 2050. Our uranium reserves are limited and can support only 10,000 MW of power plants using Pressurised Heavy Water Reactors (PHWRs). These plants generate electricity and also convert part of the fuel into plutonium. The spent fuel from these plants can be reprocessed to separate Plutonium and the second phase involves use of plutonium and depleted

YOJANA April 2009 7

uranium in Fast Breeder Reactors (FBR). An FBR produces more plutonium than what is put in and thus breeds plutonium. After some years, there is enough plutonium to start another FBR. This way we can provide up to 500,000 MW of capacity of FBRs. The third phase involves using the fast breeder reactors to convert Thorium which is only a fertile material into fissile material U233 which can be used on fuel in reactors. Given India’s huge reserves of thorium we have the potential to provide a much larger nuclear power capacity for a few hundred years, in the third phase. This large potential can only be realised over time. With the domestically available uranium and without any additional import beyond Kudankulam I and II plants under construction we can set up no more than 48,000 MW of nuclear plants by 2031 and only about 2,08,000 MW by 2051. With additional import of 30,000 MW of uranium based plants by 2020, we can reach 4,70,000 MW of nuclear capacity by 2050 if the three-stage programme is fully developed.

Continuing support to the three-stage development of India’s nuclear potential is essential. Since India is short of Uranium, the first phase plants cannot exceed 10,000 MW unless imported uranium is available. This would have limited the scale and pace of fast breeder programme and therefore of plutonium production and therefore also the rate at which thorium based nuclear power can be mobilised. Now that NSG restrictions have been lifted we should import uranium and also

acquire uranium-mining assets abroad. Import of light water reactors would be of considerable importance in the short run, as it would allow accelerating the pace of build up of fast breeder reactors. With the success in three-stage domestic development, we can also multiply capacity manifold without the need for additional fresh uranium. This would accelerate the pace of development of nuclear power for significantly increasing the role that nuclear energy can play in our long-term energy security.

One of the toughest challenges is to provide electricity and clean fuels to all, particularly rural populations given their poor paying capacity, the limited availability of local resources for clean cooking energy, and the size of the country and its population. The considerable effort spent on gathering biomass and cow-dung and then preparing them for use is not priced into the cost of such energy. These fuels create smoke and indoor air pollution, are inconvenient to use, and adversely affect the health of people, particularly women and children. Yet, given the fact that women and girls carry most of the burden of the drudgery and also bear the brunt of indoor air pollution, the urgency to meet the challenge should be high. Such steps are needed for our broader need to achieve universal primary education for girls, promote gender equality and empower women. Easy availability of a certain amount of clean energy that is required to maintain life should be considered as a basic necessity. Energy security at the

individual level implies ensuring supply of such a lifeline energy need. India cannot be energy secure if her people remain without secure supply of energy for lifeline needs. Ensuring this would require targeted subsidies as many households are unable to pay for safe, clean and convenient commercial energy to meet their lifeline needs.

In addition to the above subsidy, other actions that are needed to create energy secure villages include financing a large scale socio-economic experiment to operate community sized bio-gas plants as a commercial enterprise either by a community cooperative or by a commercial entrepreneur. Bio-gas plants on this scale could meet the need for clean cooking energy of a sizable segment of the rural population. As part of the above programme, improve the efficiency of domestic chullahs and lanterns from the prevailing 10-12% to 20-25%, which is easily attainable and couple this to improving ventilation in the cooking area of the dwellings. The surplus biomass released as a result of better efficiency could be used in gasifiers for generating electricity.

Distributed generation through wood gasifiers may be able to take electricity to villages sooner than the grid. This will encourage local generation and could conceivably feed the grid with surplus power at an agreed feed in tariff at a future date. Thus energy security for the country and its people requires a broad based set of measures covering almost all aspects of the energy sector. q

(E-mail : [email protected])

8 YOJANA April 2009

M Satyamurty

Integrated Energy Policy

ENErgy SECuriTy

OME 600 mi l l i on Indians do not have access to electricity and about 700 million Indians use biomass

as their primary energy resource for cooking and ensuring life line. Supply of clean energy to all is essential for nurturing inclusive growth, meeting the millennium development goals and raising India’s human development index that compares poorly with several countries that are currently below India’s level of development. A sustained economic growth of at least 9 percent over the next 25 years is necessary for India to eradicate poverty and meet its larger human development goals. Meeting the energy requirements of this growth in a sustainable manner presents a difficult challenge.

Energy requirement

India’s primary energy use is projected to expand massively to deliver a sustained growth rate of

S 9% through 2031-32, even after allowing for substantial reduction in energy intensity. Desired growth in GDP is expected to be sustained by growth of primary energy supply (of around 5.8% per year) including gathered non-commercial resources such as wood and dung. Commercial energy supply would need to grow faster at about 6.8% per annum as it will replace non-commercial energy. These projections do consider a reduction of around 20% in energy use per unit of GDP over a period of ten years. The implication is that primary energy use will increase to 3 to 4 times the current level in 2008-09. Power generation capacity would need to increase about six-fold from the current level of around 175 GW inclusive of all captive plants to 960 GW by 2031-32. Similarly India’s requirement of coal, the dominant fuel in the energy mix, will have to expand from around 490 Million tonnes in 2008-09 to over 2 to 3 Billion tonnes in 2031-32 based on the quality of available domestic coal.

ViSiON

The integrated energy policy

presents a roadmap for managing the energy

requirements of rapid growth for India which is necessary if all

her citizens are to live fulfilling and

satisfying lives The author is Jt. Adviser (Energy), Planning Commission, New Delhi.

YOJANA April 2009 9

Contrary to other developed and developing countries, total primary commercial energy requirement in India has been falling with respect to the growth in GDP as relatively higher energy prices have led to its efficient use. The elasticity for per capita primary commercial energy supply with respect to per capita GDP, that is percent increase in energy use for every percent increase in GDP, estimated from the time series data of India over 1990-91 to 2003-04 comes to 0.82 which is significantly lower than 1.08 estimated for the period since 1980-81. Similarly the elasticity for per capita electricity generation is only 1.06 for the period from 1990-91 to 2003-04 compared to 1.30 for the period since 1980-81. However, the energy elasticity of GDP growth in India may not fall as much in the future as rising income levels will foster life style changes that are more energy intense.

Comparing India’s energy elasticity with other countries, using cross-country regression based on data of 2003, the elasticity for total primary energy supply (TPES) comes to 0.83 for all countries and to 0.79 for countries with a purchasing power parity (PPP) GDP between $2000 and $8000 (India’s GDP in PPP terms based on 2000 dollars was $2732 in 2003 and by 2031-32 might reach the upper end of the range). India’s energy elasticity for commercial energy is comparable to the elasticity estimates for TPES using cross country data. The elasticity for electricity consumption comes to 1.24 for all countries and to 1.25 for PPP adjusted GDP per capita range of $2000 to $8000. India’s elasticity for electricity generation is comparable to that of countries with per capita GDP exceeding

$8000 in PPP terms. Importantly, the trend of falling elasticity with rising income levels is demonstrated even by cross country data.

Putting India’s likely energy demand in 2031-32 in a global perspective, one sees that China’s current energy consumption is 1100-1200 Mtoe and USA’s current consumption is 2400-2500 Mtoe. In comparison, India consumed about 421 Mtoe of commercial energy in 2007-08. With a projected population of just under 1.47 billion in 2031-32, India’s per capita energy consumption will be marginally above China’s current per capita consumption or be about one seventh of the current US per capita consumption. What this means is that India on per capita basis, currently consumes under 6% of what the US consumes and under 41% of what China consumes and will, by 2031-32, consume just under 15% of current US consumption levels and equal China’s current per capita consumption. More importantly, India’s per capita energy consumption that is less than 27% of 2003-04 level of global average energy consumption shall in 2031-32 also remain just about 74% of the current global average.

Need for an integrated energy policy

It is necessary to evolve an integrated energy policy that would provide a coherent framework of policy covering different energy sources in a consistent manner. The need for an integrated energy policy arose because the responsibility for different energy sources is distributed over a number of different Ministries, e.g. Petroleum, Coal, Power, Water Resources (in the case of hydroelectricity), Atomic

Energy and New & Renewable Energy. Several other Ministries are also involved in determining policies which affect energy demand (Transport, Urban Development, Industry, Steel, etc.) and the Finance Ministry determines tax rates for different fuels. Policies applicable to different energy sources need to be consistent with each other and the overall framework for energy must be consistent with achieving the objective of inclusive growth. In many areas policies relevant for energy are in the hands of State government e.g. urban transport, city planning, building codes, etc. and these policies also need to be made consistent with the overall energy policy.

Vision

The vision that drives India’s Integrated Energy Policy is to reliably meet the demand for energy services of all sectors including the lifeline energy needs of vulnerable households in all parts of the country with safe, clean and convenient energy at the least-cost. This must be done in a technically efficient, economically viable and environmentally sustainable manner using different fuels and forms of energy, both conventional and non-conventional, as well as new and emerging energy sources to ensure supply at all times with a prescribed confidence level considering that shocks and disruption can be reasonably expected. In other words, the goal of the energy policy is to provide energy security to all.

Energy security is defined in terms of reasonable assurance of access to energy and relevant technologies at all times with an ability to cope with sudden shocks. Energy security does not mean

10 YOJANA April 2009

complete energy independence, it only means an ability to meet reasonable requirements with reasonable assurance of stable supply or an ability to pay for import needs.

Energy basket

India’s energy basket has a mix of all the resources available including renewables. Share of coal in primary commercial energy in 2007-08 was about 54% and share of renewable energy was nearly 1%. The choice before the country in reference to pursuing for different sources of energy is not choosing among the available ones but to seek what else? The energy basket in 2031-32 would look different in several scenarios developed by the Expert Committee on Integrated Energy Policy. One of the probable scenarios which assumed reduction of energy consumption through improvement in energy efficiency in all areas from generation to consumption and demand side management

and optimum development of available and foreseeable sources of energy indicate a dip in the share of dominant fuel that is coal to 49%. However, there is scope for maximising the share of renewable energy provided the necessary technology for tapping immense solar energy efficiently through photovoltaic route and thermal route matures and becomes commercially available. In such case (Scenario “B”) the share of renewable energy in total energy mix in 2031-32 would rise to 5%.

Guiding principles of the integrated energy policy

The Integrated Energy Policy is based on following guiding principles:

(i) Energy markets should be competitive wherever possible for economic efficiency and for promoting optimal investment in energy. However, competitive markets alone will not ensure efficiency in this area because

of negative environmental externalities associated with some fuels, potential supply risks and also the scope for exploitation of temporary shortages. These problems can only be addressed through appropriate fiscal policies to take care of externalities and independent regulation to take care of anti-competitive market behavior.

(ii) Given the need to expand supplies of energy public sector investment in energy must be supplemented by private investors. The removal of distortions and impediments that discourage investment in expanding domestic energy capacity is vital, as is the maintenance of an investor friendly environment for energy development.

(iii) In general, the tax structure and regulatory philosophy applied in each energy sector should be consistent with the overall energy policy and should provide a level playing field to all players whether public or private. Taxes should be neutral across energy sources except where differentials in taxation across energy sources are specifically intended to counter differential externalities, such as differences in pollution.

(iv) Subsidies are relevant but they must be transparent and targeted. Consideration should be given to alternative means of achieving the social objectives sought to be achieved by energy subsidies, through different methods including direct transfers to eligible households. The most

Primary Energy Consumption Mix (Projection at 9% growth in GDP)

Energy Type units 2007-08 (Actual) 2031-32 (Projection)

Original units

Mtoe Scenario ‘A” (Mtoe)

Scenario ‘B” (Mtoe)

Coal Mt 501.52 215.48 914 860Lignite Mt 34.65 9.71Oil Mt 139.73 139.73 555 397Natural Gas o BCM 32.27 29.07 235 191LNG Mt 8.24 10.21Nuclear Power MkWh 16777 4.38 98 98Hydro Power MkWh 128702 11.07 35 35Renewables MkWh 11410 0.98 2 87Primary Commercial Energy

Mtoe - 420.62 1839 1668

Non-Commercial Energy

Mtoe - 149.50 185 185

Total Primary Energy Supply

Mtoe - 570.12 2024 1853

Scenario “A”: Development of full hydro and nuclear potential, maximising use of natural gas and reducing consumption through energy efficiency and demand side management.

Scenario “B”: Thrust on development of renewable energy sources and development of fuel efficient engines for all transport modes in addition to measures taken in scenario “A”.

YOJANA April 2009 11

efficient method of schemes and the objective should be chosen.

(v) Energy-efficiency is extremely important and can be promoted by setting appropriate prices and this is particularly important where energy prices are rising. However, appropriate prices by themselves may not suffice and non-price incentives/disincentives are therefore also required. This includes standards of energy efficiency that are forward looking, i.e. anticipate future price changes or pollution penalties. These standards should be determined on the basis of rational considerations and must be set in an expanding range of applications, with continuous dynamic adjustment of these standards. The standards should also be effectively enforced. There is scope to use both, mandatory and voluntary standards, the latter being reinforced by public opinion combined with appropriate tax incentives.

(vi) Public Sector Undertakings operating in the energy sector must operate with autonomy and also full accountability to ensure incentives for adequate investment through their own resources and improvements in efficiency in energy production and distribution.

Salient features of the Policy

l India will have to pursue all available fuel options and forms of energy and must seek to acquire new energy sources abroad.

l Provide electricity to all rural households through Rajiv

Gandhi Grameen Vidyutikaran Yojana (RGGVY) and clean cooking energy such as LPG, NG, biogas or kerosene to all within ten years.

l For economic efficiency and for promoting optimal investment in energy, energy markets should be competitive wherever possible. Competitive markets would lead to trade parity prices ensuring that energy use and inter-fuel choices would be economically rational. But a truly competitive market requires that there are multiple producers and that there are no entry barriers to new producers or to imports.

l Set prices of all commercial primary energy sources which are tradable at trade parity prices at the point of sale. Energy prices must send the right signal to producers and energy users to conserve energy and, where relevant, switch to preferred sources.

l A phased adjustment of domestic petroleum prices to trade parity prices must be undertaken in a relatively short period.

l Trade parity principles cannot be easily applied to Natural Gas because it requires significant investments in pipelines or, alternatively, in liquefaction, cryogenic shipping and re-gasification for trading. Natural gas price can be determined through competition among different producers where m u l t i p l e s o u r c e s a n d a competitive supply-demand balance exist.

l Coal prices should be made fully variable based on Gross

Calorific Value (GCV) and other quality parameters instead of the current system of pricing on the basis of broad bands of useful heat value.

l Both the tax structure and regulatory philosophy applied in each energy sector should be consistent with the overall energy policy should provide a level playing field to all players whether public or private.

l Provide appropriate fiscal po l ic ies to take care of externalities and independent regulation to take care of anti-competitive market behaviour.

l Actively promote technologies that maximise energy efficiency, demand side management, conservat ion and energy security and this must be done by encouraging domestic research into such technologies and free access to suitable energy related technologies available abroad.

l Subsidies must be transparent and targeted. Consideration should be given to alternative means of achieving the social objectives sought to be achieved by energy subsidies.

l Reduce technical and commercial losses in transmission and distribution utilities.

l Separate the cost of the pure wires business (carriage) from the energy business (content) in both transmission and distribution.

l All generation and transmission projects should be competitively built on the basis of tariff-based bidding.


l Set multi-year tariffs and differentiate them by time of day tariff.

l Incentives for promoting renewables should be linked to outcomes (energy generated) and not just outlays (capacity installed). Alternative incentive structures such as mandated feed-in-laws or differential tariffs or specifying renewable portfolio percentage in total supply would encourage utilities to integrate wind, small hydro, cogeneration etc. into their systems.

l Fuel wood plantations, bio-gas plants, wood gasifier based power plants, bio-diesel and ethanol should be promoted.

l Set-up a National Energy Fund (NEF) to finance R&D in Energy sector. A number of technology missions should be mounted for developing near-commercial technologies and rolling out in a time bound manner new technologies that emphasise nationally relevant sources of energy.

l A large scale socio-economic experiment should be financed

to operate community sized bio-gas plants as a commercial enterprise either by a community cooperative or by a commercial entrepreneur. Bio-gas plants on this scale could meet the need for clean cooking energy of a sizable segment of the rural population.

l Ensure energy security by- lowering the requirement of

energy, - substituting imported fuels with

alternatives, - expanding the domestic energy

resource base,- maintaining reserve equivalent

to 90 days of oil imports,- building strategic stockpile of

nuclear fuel to counter the risk of disruption of international fuel supply,

- acquiring energy assets abroad and setting up energy using industries such as fertiliser plants in energy rich countries.

The integrated energy policy presents a roadmap for managing the energy requirements of

rapid growth for India which is necessary if all her citizens are to live fulfilling and satisfying l ives – rea l i s ing the i r fu l l potential, their aspirations and their dreams for development and happiness. All the elements of the policy cannot be implemented immediately but steady progress along indicated lines, with full implementation by the end 2011-12 will enable India to achieve her objectives. Coordinated action is required by different agencies of the Central Government and also by State Governments and their agencies. Recommended initiatives would have an effect on reducing the green house gas intensity of the economy as much as by one third. The volatility of energy prices in the international market, breakthrough in solar technologies, green house gas emission standards and geo-political scenario would have an impact on the integrated energy policies requiring course correction down the timeline. q


YOJANANext Issue

onMedia Trends

May '09

Media today has evolved way beyond the simple daily newspaper, the soap operas and the 70 mm screen. Foreign collaborations, forward looking policies and technological innovation have completely transformed the way the government, the corporates, the

social sector or people themselves are communicating with each other. The coming issue of Yojana offers an insight into some of these media trends.


dO yOu kNOw?

India and the United States signed a landmark deal in October 2008, which allows

India access to US civil nuclear fuel and technology. What is it that makes this deal so significant? How does India stand to gain from it ? Here are some answers to these questions :

what is the Indo-u.S. Civilian Nuclear Deal ?

This is a deal between India and the United States for civil nuclear cooperation. Under this agreement, the United States can sell civilian nuclear fuel and technology to India. India in turn, has to separate its civil and military nuclear facilities and place all its civil nuclear facilities under International Atomic Energy Agency (IAEA) inspection. The accord took three years to be finalized, during which it went through a series of complex stages that included amendment of U.S. domestic law, formulation of a civil-military nuclear separation plan in India, an India-IAEA safeguards (inspections) agreement and the grant of an exemption for India by the Nuclear Suppliers’ Group (NSG).

what are the Hyde Act and the 123 Agreement ?

Under Section 123 of its Atomic Energy Act, the United States can enter into civilian nuclear trade only with those countries that have signed the NPT and CTBT. India has signed neither treaty. Further, after its first nuclear test in 1974, the United States had placed a ban

THE INDO-uS NuCLEAR DEAL : BASIC FACTSon the supply of nuclear fuel and technology to India. In order to sign the present deal, the section 123 of the Atomic Energy Act needed to be amended. The Hyde Act 2006, a domestic Act of the United States, was accordingly brought in to amend this Section and provide a legal framework for a 123 Agreement with India. With this agreement India becomes the only non-NPT/CTBT signatory to have signed the 123 Agreement with the United States.

who are the Nuclear Suppliers Group ?

Nuclear Suppliers Group (NSG) is a 45 nation body concerned with reducing nuclear proliferation by controlling trade in nuclear fuel and technology. Their policies had so far kept India out of bounds of international nuclear trade as it has not signed the NPT and CTBT. Some countries in the NSG had misgivings about giving India the unprecedented waiver of carrying on international civil nuclear trade even without signing the NPT, but the approval finally came through keeping in view India’s strong non-proliferation records, and its voluntary declaration of “no first use” of nuclear weapons.

what does India get from the Agreement ?

Indo-US Civil nuclear deal has paved the way for the growth of the nuclear power sector in India, which has so far been plagued by shortages of nuclear fuel. India has limited reserves of Uranium, which is the crucial fuel needed at the present stage of our nuclear power programme. Due to the shortage of uranium,

India’s nuclear power generation is only about 1800 Mw against an installed capacity of 4120 Mw. With the present agreement, which is valid for 40 years and extendable by another 10 years, India hopes to address this fuel shortage. Under this agreement the US is committed to ensure uninterrupted fuel supply to safeguard Indian reactors and create strategic fuel reserves for them, and also work with other NSG countries to ensure supply of nuclear fuel to India. The ambit of the deal includes research, development, design, construction, operation, maintenance and use of nuclear reactors, reactor experiments and decommissioning. To ensure smoothness, the agreement provides for elaborate consultations between the two parties in the event of either side wanting to terminate the deal before its normal time.

Further, the agreement also lays down the clause of “non-interference “ in India’s strategic programme. Thus, the Indian nuclear power programme stands to get a much needed push without any threat to its strategic programme.

And what does India give?

As part of the bargain India has agreed for separation of its nuclear facilities, placing the civilian facilities under IAEA safeguards in perpetuity. The safeguard is aimed at ensuring that the nuclear material or technology brought in for civilian purposes is not diverted for military use. Out of its 22 operating/under construction nuclear facilities, India will place 14 under IAEA safeguard. q


Exploiting Nuclear Energy to Provide Long-Term Energy Security

ENErgy SECuriTy

DVANCES IN science and technology have enabled mankind to exploit resources of the earth for improving

the quality of life. With the help of technological devices and with energy as the main input, human beings are able to multiply their efforts manifold. The technology led growth has created a large demand for energy and as a result all nations are exploring every source of energy to ensure that they are able to meet growing energy requirements to spur economic growth and thereby further improve quality of life of their citizens. An examination of the present global scenario indicates that at present there is a large inequality in per capita energy consumption and in view of increasing energy demand and depleting fuel resources, energy supplies are under strain. The situation demands attention of

A

The author is Director, Strategic Planning Group, Department of Atomic Energy, Mumbai.

Policy initiative taken by the

Government would strengthen energy security, provide

expanded business opportunities

and would help in expanding

electricity generation base

R B Grover

world leaders as well as scientists and technologists.

Energy related issues have always dominated the world stage and have been intertwined with politics and ideology. Issues related to energy are: availability of fuel supplies, technology for their efficient utilization, environmental impact particularly climate change and health externalities. Fossil fuels are and will continue to be dominant fuel round the globe for coming decades. However, within the category of fossil fuels, there has been a shift from coal to petroleum. Continued usage of fossil fuels is leading to their depletion and at the same time global electricity generation could increase three times in the next few decades. Energy consumption in the developed world is already very high and therefore, any further increase is expected to be modest. Economic growth and as a consequence growth in energy

prOSpECTS


demand is now taking place in the two most populous countries of the world viz., – India and China.

Let us look at the situation in India. Indian economy has been growing at an impressive rate for the past several years. In spite of global economic troubles, Gross Domestic Product (GDP) in India has been forecast to grow at 7.1% in the year 2008-09. This comes after a growth rate of 9.0% in 2007-08, 9.7% in 2006-07, 9.5% in 2005-06 etc. To sustain high growth rate, one of the requirements is that the growth in infrastructure has to keep pace with the growth in the economy. Infrastructure has several elements, but energy is the key element of infrastructure. India has to formulate a long-term strategy for ensuring that energy, particularly electricity, needed to spur economic growth is available at affordable prices, is of right quality and is reliable .

If we look at the current scene, installed electricity generating capacity as on 31.03.2008 was 143 GW and electricity generation during the year 2007-08 was 704.450 Billion kWhr. Captive power plants generated additional ~79 billion kWhr. These numbers look quite impressive, but when one examines them after conversion to per capita basis, the generation is a little above 700 kWhr per annum. This is lower than the world average of ~2500 kWhr per annum and significantly lower than the average of OECD countries which is ~ 8000 kWhr per annum. India, thus, has a long way to go to catch up with the developed world.

Let us assume that continued efforts by all involved will help in improving the energy efficiency of everything to such an extent that electricity availability of ~5000 kWhr per annum per capita would be sufficient to have a good standard of living. Considering that India’s population will stabilize at about 1.5 billion, this implies that India would require a total of 7500 billion kWhr per annum. After accounting for losses, generation has to be ~ 8000 billion kWhr per annum. This is about 10 times the generation in the year 2007-08. Electricity infrastructure, thus, needs significant expansion and responding to this kind of reasoning, the Government has set up ambitious targets for capacity addition. Ongoing 11th plan envisages a capacity addition of 78 GW by utilities and additional 12 GW by captive power plants. Emphasis is also being given to exploit full potential of renewable sources since they can provide significant relief, particularly for isolated rural communities.

From a long-term perspective, one has to look at the fuel resource position as well as environmental issues. India has large coal deposits, but when one considers its expanded usage, coal supplies will come under stress much before the end of the century. India does not have large hydrocarbon reserves. While continuing to rely on coal and hydrocarbons to the extent possible, one has to look for alternate sources to provide long-term energy security. At the present level of technology, solar cannot be a solution for large scale electricity requirements. Energy crops or bio

fuels are important, but again for a densely populated country like India it is not possible to divert a large part of land to cultivation of energy fuels. As compared to the total requirements of 8000 billion kWhr, hydro potential is also limited. Nuclear energy is a source which has the potential to supply large amount of electricity and India has developed technologies and necessary infrastructure for its exploitation.

Nuclear energy has the potential of meeting a significant percentage of India’s electricity requirements and the following paragraphs examine issues associated with nuclear energy and how one can exploit it for national development. Work on development of nuclear technologies was started in India in the forties itself and today India has technologies for setting up of nuclear reactors and has an ambitious ongoing programme for exploiting nuclear science and technology for national development. India has limited reserves of uranium and vast thorium reserves and plans formulated by the Department of Atomic Energy take cognizance of this fact and technologies have been accordingly developed.

U r a n i u m h a s u n i q u e characteristics. When used in a thermal reactor, only one percent of uranium is used. Therefore, if one uses uranium in a once through cycle, one is not using the full energy potential of uranium. One can recycle spent fuel after reprocessing and refabrication and by multiple recycling can realize the full energy potential of uranium. Such an approach is


known as closed fuel cycle and Indian nuclear programme is based on pursuit of closed fuel cycle. Thermal reactors are of several types and the two most important types are Pressurized Heavy Water Reactors (PHWRs) and Light Water Reactors (LWRs). In the first stage of nuclear power programme, India is setting up PHWRs and fuel discharged from these reactors is being reprocessed to recover plutonium, which can be used further as fuel in the second stage of the nuclear power programme. Choice of PHWRs in the first stage is derived from the fact that for the same amount of mined uranium, power produced as well as plutonium generated is higher for PHWRs than in the case of LWRs.

For the second stage, India has already developed fast breeder reactors and a 500 MW Prototype Fast Breeder Reactor (PFBR) is under construction at Kalpakkam. It is expected to attain criticality in 2011. The current Indian programme in the second stage starts with well proven oxide fuel based fast breeder reactors (FBRs) and subsequently, at an appropriate stage, when all the new technologies have been developed and demonstrated, metallic fuel based FBRs will be introduced. Fast breeder reactors breed more fuel than they consume and the highest breeding ratio in FBRs is achieved with plutonium-uranium based metallic fuel in the core and uranium in the blanket. Studies done by the Department of Atomic Energy indicate it would be most appropriate to introduce thorium first in the blanket and

much later in the core and this introduction has to be started in the third decade after the launch of metallic fuel based FBRs.

Thorium is an immense source of energy and studies indicate that once the FBR capacity reaches about 200GW, thorium based fuel can be introduced progressively in the FBRs to initiate the third stage, Uranium-233 bred from thorium in the FBRs can be used in the reactors of the third stage,

The fact that three stages of the nuclear power programme have to be pursued sequentially imply that share of nuclear power in the overall energy mix in the country can be increased only gradually. To accelerate growth of nuclear power installed capacity, the only option available is to augment available uranium resources either through indigenous resources or through imports. All out efforts are being made to locate more uranium resources in the country. It would take a while to realize results. Alternative is to take policy initiatives to open up international trade in uranium and set up more PHWRs based on indigenous technology or import both uranium and technology for setting up of LWRs.

International trade in nuclear technology is governed by the guidelines of the Nuclear Suppliers Group and the guidelines as practiced till recently did not permit India to have civil nuclear trade. The policy initiative taken by the Government has now resulted in modification of the guidelines that enable civil nuclear trade with India without interfering in India’s

strategic programme. To reach this stage several steps were involved.

• Having a dialogue with friendly countries such as the United States, France and Russia to open up civil nuclear trade with India. Joint statement issued on July 18, 2005 by Prime Minister Manmohan Singh and President Bush was the most important step.

• Negotiating agreement of cooperation with friendly countries such as USA, France and Russia.

• Negotiating an India-specific Safeguards Agreement with the International Atomic Energy Agency to assure our partners that nuclear material imported by India will be used only for the purpose of electricity production.

As a result of all these efforts, guidelines for civil nuclear trade with India were relaxed by the NSG on 6th September 2008. This enabled India to sign the agreement of cooperation with France, USA and Russia. Contracts for purchase of uranium have also been signed or are being negotiated with countries such as France, Russia and Kazakhstan.

This is a new beginning for India in the field of nuclear energy and offers several advantages without in any way compromising the indigenous three-stage programme, R&D programme and strategic programme. It would help in strengthening energy security as uranium imported for PHWRs or for LWRs can be recycled in FBRs


ELECTIONS IN INDIA: A SNAPSHOTParametres 1951 1957 1962 1967 1971 1977 1980 1984-85 1989+ 1991ˆ 1996 1998 1999 2004

Seats*Reserved

48998

494107

494109

520114

518112

542116

542120

541119

529117

537120

543120

543120

543120

543120

Candidates 1,874 1,519 1,985 2,369 2,784 2,439 4,629 5,492 6,160 8,749 13,952 4,750 4,648 5,435

National Parties NumberVote Share (%)

14476.0

473.1

678.5

776.1

877.8

584.7

685.1

777.9

879.3

980.6

869.1

768.0

767.1

662.9

State PartiesNumberVote Share (%)

398.1

117.6

119.3

149.7

1710.2

158.8

197.7

1912.0

209.3

2813.1

3022.4

3018.8

4026.9

3628.9%

Eligible Voters (in crores) 17.3 19.4 21.6 24.9 27.4 32.2 35.6 40.0 49.9 51.2 59.3 60.6 61.9 67.2

Poll Percentage 44.9 45.4 55.4 61.0 55.3 60.5 56.9 64.0 62.0 55.9 57.9 62.0 60.0 58.1

Polling Stations NA NA 238031 243693 342918 373910 436813 506058 580798 591020 767462 772681 774651 687473

Spending by Election Commission (in Rs crore) 10.5 5.9 7.3 10.8 11.6 23.0 54.8 81.5 154.2 359.1 597.3 666.2 880.0 1,3000.0

Source : Election Commission*In 1951, there were 401 one-seat, 86 two-seat and 1 three-seat constituency: In 1957, there were 403 one-seat and 91 two-seat constituencies.+ In 1989, elections were not held in Assam, which had 14 constituencies.ˆ IN 1991, elections were not held in Jammu and Kashmir, which had six seats.

after reprocessing. Reprocessing and recycling of spent fuel has the potential of several fold increase in energy available from a given amount of uranium. Import of uranium for fuelling about 40 GW of PWRs could lead to setting up of 400 GW of fast reactors in about 4 to 5 decades.

Nuclear Power Corporation of India has worked closely with Indian industry to set up PHWRs. This significantly raised the manufacturing capability of Indian industry, which was subsequently used by the industry for the benefit of other sectors of Indian economy, particularly petrochemical sector. Manufacturing industry has not been able to exploit this capability to supply equipment and components for the nuclear industry abroad due to constraints imposed by the guidelines of the Nuclear Suppliers Group. To reduce the capital cost of nuclear power plants likely to be set up by Nuclear Corporation of India Limited in technical

cooperation with foreign vendors, it will be necessary to manufacture a significant percentage of equipment and components in India and this would further enhance the capability of Indian companies to manufacture complex equipment. S e v e r a l I n d i a n c o m p a n i e s having expertise in engineering consultancy are also likely to be involved in the expanded nuclear power programme. While extensive localization of manufacturing activity and engineering services would help reduce capital cost of nuclear power plants in India, it would also enable Indian companies to competitively export equipment and services for nuclear power projects abroad, possibility for which has already been created because of amendments to NSG guidelines with respect to India.

Environmental benefits of nuclear power are well known. Substituting a single nuclear power plant for a coal fired power plant (assuming each has a capacity of

1000 MWe and 80% load factor) would avoid stack emissions of 1.3-2.2 million tonnes of carbon annually depending on both the quality of coal and the power plant technology. Over a normal 40-year plant lifetime, total avoided emissions would equal 50-90 million tonnes of carbon. Therefore, increase in nuclear installed capacity in India is of importance not only for India but for the entire world in view of its climate change implication.

Policy initiative taken by the Government would lead to increase in installed nuclear capacity in India and provide additionality to ongoing three-stage programme. It would strengthen energy security, provide expanded business opportunities for manufacturing companies and engineering consultancy organizations, and would help in expanding electricity generation base in an environmental ly sustainable manner. q



J&k wiNdOw

S A child I would often rush to the baker across the lane in front of our house. Mostly the baker’s wife would be

at the shop window, peeping out to attend customers. A short, stout lady with a chubby face, she would nod in greeting as we exchanged the bread and money.

Then one day we heard that some unidentified gunmen have killed her youngest son. Rumour had it that he was suspected to be a police informer. When my mother returned from their house after paying a visit like other neighbours that day, she shuddered as she recounted the bloody scene. In the following days I could not gather myself to go near the baker’s shop. I felt I could not look into that chubby face again or meet her eyes, which I knew would never be the same again. I stopped getting bread.

In Kashmir’s long list of women affected directly by conflict, the baker’s wife was the first I knew

Kashmiri Women: Rising Above Conflict

Nusrat Ara

personally. I also remember Gul’s wife. Gul Muhammad, or Gul to us, a butcher by profession, was a next-door neighbour. Gul and my father were childhood friends. He used to teach his sons kite flying on the roof of his house in winters. My brothers and uncles would be on our roof, also flying kites. I did not like to fly kites but I loved to soak in the sun and watch the kite dance to the tunes of the wind. Many families including Gul’s wife would be on the roofs, watching kites soaring and severing.

It was said that the news came that one of the sons of the family had been killed. In that one painful and horrifying moment, when the body arrived all the three daughter-in-laws of the house rushed out to see whose misfortune it was. According to that old adage, misfortune comes together. And so one day I returned from school I found an empty house and everywhere in the locality, there was a hue and cry. . Someone told me Gul has been killed. A Frooti tetra pack had burst and mistaking it for a blast, a panicked

A

These women

represent the face of

Kashmir today, its changing

times, its wave of hope and

aspirations for a better

tomorrow


CRPF personnel acting in a flash shot Gul inside his shop. A tragic mistake but a life lost and painfully. According to sources Gul and the trooper who shot him had been on friendly terms.

I rarely saw his wife since, as she confined herself to her house. Growing up in militancy-hit Kashmir was an experience that probably can have no parallel, the fear, the hollowness and the uneasy calm. Even as a child I knew that with every blast and bullet we heard off, a Kashmiri woman was being affected directly, a widowed wife, a wailing mother, a dumbstruck sister.

Historically as in every culture and society in Kashmir too, women have played a critical role.. Kashmir had a Lalla Arifa, popularly known as Lal Ded, a great poetess whose verses still adorn the lips of people. Closer to modern times, Begum Zafar Ali an educationist went door-to-door convincing people the merits of girl child’s education.

During the period of conflict, women demonstrated inherent strength and capabilities to not merely cope but take steps to alleviate the suffering of people around them. Moving beyond being victims, survivors, women emerged as peacemakers. As the conflict took its toll in Kashmir it left more than 70,000 dead, most of them men. In many homes, the responsibility of children, home, health, and livelihood were borne by these women.

The human fall-out of the nearly two decades of conflict can be seen as what in military jargon is

referred to as ‘ collateral damage’ has been immense across society. It left behind a large number of widows and orphans. It also left behind a new group called the half widows, women whose husbands are missing. The village Dardpora near the line of control in Kashmir is home to hundreds of widows, whose husbands were killed either as militants or as informers. Apart from the manifest effects of the conflict, it has marred the psyches of people leading to mental problems especially among women and children. The most common being the Post Traumatic Stress Disorder or the PTSD.

Amid all this mayhem there were women, like Nighat Shafi Pandit, a bureaucrat’s wife, who stepped put of her comfortable home to help the widows and orphans of the conflict. Inspite of her husband being attacked by militants, she did not hesitate to help the widows of militants . She founded an NGO, Hope which runs an orphanage in Srinagar, a school for orphans and poor, and has set up a vocational training centre for poor women and girls.

Parveena Ahanger’s 18-year-old son has been missing since 1990. For the last nearly two decades she has led the struggle to know his whereabouts and has become a symbol and rallying point for all those facing similar situation. In 1994 she founded the Association of the Parents of Disappeared Parents, Kashmir (APDP), to come together to take their fight forward and support each other .

Nighat Pandit and Parveena Ahanger found place in the 1000

Women for Nobel Peace Prize 2005 project along with Dilafroze Qazi an educationist. Qazi opened the first private polytechnic of the state and ran it in challenging conditions. She also runs schools for underprivileged children and conducts vocational training for women

Bes ides women o f such courage, Kashmir has its share of those who have left their mark in various fields of endeavour, bringing hope and energy to a generation emerging from the ravages of conflict. Sakeena Akhter became the first woman cricketer to have qualified from the National Institute of Sports. Bilquis Mir was the first Kashmiri woman to become a national Kayaking and Canoeing Coach of India. She has been recently inducted into the International Panel of Elite Referees- the first Indian woman to be inducted into an international refereeing panel. Women who

There are certainly countless nameless women who sustained and supported their families through tough and turbulent times, and whose ordinary stories are far more heroic than the bravest of tales , who toil consistently to improve the lives of people around them. These women represent the face of Kashmir today, its changing times, its wave of hope and aspirations for a better tomorrow. q

{This article has been written under the Sanjoy Ghose Media Fellowship: 2008-09 for

women journalists in J&K}

(Charkha Features)


Securing Off-track Mobility – The True Oil Security

ENErgy SECuriTy

T HAS taken tens, hundreds of millions of years for organic detritus to transform into fossil fuels – coal, oil and gas. These are being

used primarily as fuel or feedstock. The concern over non-renewability of fossil fuels comes from the once-only application as fuel. There are many other fuels but only some of the liquids derived from fossil fuels can be used to fuel off-track mobility.

Off-track Mobility

In the beginning, power sources were externally attached to vehicles; examples: palanquins, chariots. Boats were the exception where the power source was on board. Integration of fuel and conversion system into vehicles began with the invention of steam locomotives and steam-ships. The age of coal gave way to the age of oil. Today, except for nuclear-powered ships and submarines, and rockets with solid or liquid propellants, all vehicles carrying fuel and engine on board

I

The author is former Chairman, Oil and Natural Gas Corporation Group of Companies.

As a nation, we must learn to respect the value

of energy. We must reduce

energy intensity by maximising efficiencies of

conversion and conservation

Subir Raha

are powered by refined petroleum liquids. There are vehicles which are externally connected to power sources – electric trains for instance, but such vehicles can move only on fixed tracks.

The indispensability of fossil fuel liquids as the only commercially viable option for off-track mobility – on land, air and sea, will not diminish in the foreseeable future because none of the alternatives can be:

• stored in containers of all shapes and sizes, at normal temperature and pressure, and used over a wide range of ambient temperatures on 24x7 basis,

• used to supply more energy per unit mass / volume, with comparable efficiency in the internal combustion process,

• stored in containers integrated into the vehicle with payloads multiple times the weight of the filled container,

• transported in quantities ranging from millilitres to kilolitres, by land, sea and air routes, and

ViEw pOiNT


• stockpiled in less space with greater security and lower cost.

These fuels are different grades of LPG and CNG, Petrol, Kerosene, Diesel and Fuel Oils for surface transportation, and Aviation Gasoline and Aviation Turbine Fuel (Jet Propellant) for air transportation. These are mostly refined from oil - crude petroleum; production from gas or coal is costlier.

In case of renewable alternatives for automotive use like hydrogen or solar power, the challenge lies in integration of energy storage on board the vehicles – the weight of the storage system does not permit commercially viable payloads except over relatively short radial distances. In “hybrid” designs, the primary source of motive power still comes from petroleum products, with the renewable source kicking in at cruise modes. Bio-fuels do not have sufficient intrinsic energy per unit volume / mass to be used independently and therefore, are used as supplements to petroleum liquids. Given the current state-of-the-art, it’ll be decades before a commercially viable alternative for off-track surface transportation is available. The Tata Committee suggested a target of 100,000 hydrogen-powered vehicles in India by 2020; against this, the current population of automotive vehicles in Delhi alone runs into several millions and counting. No one is even talking of a substitute for ATF for aviation.

The real issue of oil security, therefore, is the confidence that the liquid transportation fuels will continue to be readily available at the right place at the right time

in required quantity with correct quality at affordable cost.

Global Trends

The first issue is supply. “Peak Oil” may or may not have happened so far, but the days of “easy oil” are certainly over. The on-land and the shallow water prospects have been extensively explored. The remaining frontier lies in deep waters where current technology permits drilling upto 3 Kilometers of water depth. The cost and the risk of Exploration & Production (E&P) in such regimes are much higher. The cost of a well drilled in deep waters can be 30 to 50 times higher than the cost for an on-land well.

The second threat is Global Warming. Fossil fuels are known to be one of the major emitters of Greenhouse Gases. There are increasing pressures to sequester carbons during E&P, and reduce emissions during application. Clean fuel norms are being statutorily enforced in increasing number of countries. This adds to the costs of the fuel and the internal combustion engine.

Clean fuels cannot be produced by primary and secondary stages of refining – atmospheric and vacuum distillation. Tertiary refining is complex technology which requires significant investment and leads to substantial increase in own-fuel consumption. In many situations, it becomes uneconomic to upgrade refineries to such complexity.

The largest known reserves of crude oil are in the Middle East, and most of these are “sour” crudes with high sulfur content. It is obviously easier and cheaper to refine clean fuels from sweet (low sulfur) crudes. Because of this preference, and also because of supply constraints, the “sweet-

sour” premium increased more than five times in recent years. Pollutants have to be stripped from sour gas as well.

Oil & gas logistics is a complex global network of hundreds of ports, thousands of ocean-going tankers, hundreds of thousands of kilometers of pipelines, and millions of rail and road carriers. The risk of disruption because of system failures or terrorist acts or natural calamities is ever-present. Most countries, therefore, build stockpiles of crude and refined products to manage such exigencies. This again adds to the system cost.

So, the days of “cheap oil” are over as well. The current fall in oil prices has resulted from near-cessation of speculative trading and demand destruction due to the overall recession. The intrinsic cost pressures have abated only marginally. Supply contraction is already happening to protect economic viability of the hydrocarbon value chain.

The India Scene

India has 0.4% of the Earth’s known oil resources, 0.6% of the gas and more than 15% of the population. Per capita Oil & Gas consumption in India is less than 200 kg per year, about one-third of the global average (about one-fifth of the US average). To boost the per capita consumption by 01 kg per year, India needs incrementally 1.2 Billion kg Oil & Gas every year, allowing for process losses.

Globally, primary demand for Oil is projected to grow @ 01% per year on average over the next two decades. During this period, the fastest growth is forecast for India, averaging 3.9% per year followed by China @ 3.5% per


year. These recent estimates from the International Energy agency take the global economic slowdown into account.

India is a net importer of Oil and Gas, and will remain so; same is true for China, with 1.3% of the Earth’s known oil resources, and 1.1% of the gas. The figures for Japan are zero and zero. In fact, six of the G8 countries are net importers of oil & gas. This is an important global perspective, countering the common misconception that import dependence for oil & gas is necessarily a threat to energy security. Energy security, with oil security as a component, is a product of the overall strength of the economy.

The current Oil plus Oil-e q u i v a l e n t G a s ( O + O E G ) consumption in India is 200 Million Metric Tonnes (MMTOE) per year, and own production from domestic and overseas acreages is one-third of this quantity. The first priority, obviously, is to increase own production.

Domestic E&P

Estimates of prognosticated resource of O+OEG in India range between 28 and 34 Billion Tonnes (bt), of which some 8 bt has been discovered so far. The impending extension of the maritime EEZ will lead to further increase in the prognosticated resources in deep waters. The estimates of in-place recoverable oil and gas are 5.6 bt and 2.4 Trillion Metre Cubed (TMC) respectively. Out of these quantities, 1.6 bt oil (about 28%) and 1.4 TMC gas (about 58%) are defined as initial recoverable. With available technology, the recovery factor for oil can be stepped up

beyond 40% and that for gas, beyond 75%.

Therefore, the over-riding priority is to deploy state-of-the-art technologies and necessary organizational, financial and human resources f i rs t ly, to accelerate exploration for new discoveries, and secondly, to boost the recovery factors in all discovered fields. While all exploration effort involves risk, and offshore exploration call for significantly higher costs, recovery factor improvement in discovered fields can boost initial recoverable O+OEG by as much as 1 bt in commercially attractive risk-reward framework.

Overseas E&P

All minerals on the Earth are one-time resources. No nation is self-sufficient in all minerals. Therefore, nations compete to secure ever-increasing share of the resources especially oil & (now) gas. It’s been said with good reason that all wars in the past century were focussed on access to oil.

Iraq will hopefully be the last case of a country trying to acquire another country for taking possession of the oil & gas resources. The commercial options are either to enter into equity participation to share risks and rewards with the host countries, or to enter into long-term – typically 15 years or more, sale-purchase contracts. Most of the net importing countries, with Japan and the EU as leading players, resort to long-term contracts. India, strangely, goes with short-term (one year at a time) or spot contracts; the lone exception so far is the Gas SPA with Qatar.

India had taken the lead in securing oil & gas equity abroad but the gains registered from 60s’ onwards by Hydrocarbons India Ltd. (HIL), a wholly-owned subsidiary of ONGC, were frittered away by the 90s when China emerged as the most aggressive player in the field. HIL was rejuvenated as ONGC Videsh Ltd. (OVL), and during the current decade, has expanded from 1 property in 1 country in 2001 to 43 properties in 18 countries. This is a mix of assets under different stages of exploration, development or production. OVL is already producing over 8 MMTOE annually, and expects to reach the strategic goal of 20 MMTOE five years ahead of the target of 2020.

Imports

N o t w i t h s t a n d i n g a l l possible efforts in increasing own production, imports will necessarily increase in the years to come. Import of oil & gas through overland pipelines across western, northern and eastern land borders can be ruled out for prevailing geo-political reasons. The propositions for submarine pipelines across the Arabian Sea and the Bay of Bengal are technologically unsound. Therefore, the increasing tonnages of oil & gas will have to be imported by sea. This will require multiple increases in the Indian Flag tanker tonnage and drastic modernization of port facilities. All major Indian ports suffer the constraint of inadequate draft to handle fully-loaded Suezmax or Aframax tankers, not to speak of Very Large Crude Carriers. Hardly any action is being taken on these fronts; inadequate capacities will not only add to the system costs


but also restrict the ability to meet the demand in the country.

The Threats

We must reduce energy intensity – energy used per unit GDP – by maximising (i) efficiencies of conversion and (ii) conservation. As a nation, we must learn to respect the value of energy. Politically motivated ad hoc energy pricing (example: the inducement of free power, only that the farmers mostly don’t get any power) has resulted in high energy intensity in all sectors - household, commercial, industrial, agriculture and transportation. Anti-incumbency will never be an issue if subsidies could guarantee re-election. Similarly, there is no real pressure on the domestic manufacturers to improve the designs of internal combustion engines to prevailing standards in developed countries. (Examples: motors for agricultural pumps, using truck engines and chassis for passenger buses, continuing use of obsolete boilers and so on). Demand management - a polite name for rationing - will inevitably create yet another black-market in the oil business and irretrievably retard economic growth. The prudent approach is demand optimization i.e. sensible conservation without any material loss in the socio-economic comfort zone.

More than 30% of our commercial energy comes from oil (about 10% from gas). Diesel (including adulterated kerosene) accounts for 50% of total oil consumption. At 15% +, diesel is the second biggest source of energy, next only to coal (50% +). Going by percentage share of commercial energy, diesel is five times more important than nuclear energy. The key problem is that we are increasingly using diesel for power generation where

intrinsically cheaper alternatives are available. There is no authentic data on the total power generated by diesel gensets and on the breakup of diesel consumption in transportation vs. generation; nevertheless, a drive through Gurgaon on any evening brings out the enormity of the problem: an entire city booming on diesel! The obvious solution to this genset economy is to provide stable power on the grid.

The Opportunities

India has 6.7% of the Earth’s proven reserves of coal; ‘proven reserves’ define the quantities that can be extracted from known deposits with available technology and under prevailing economics. In other words, these reserves are recoverable by commercial mining. But coal seams go much deeper than the range of commercial mining. Such coal (and lignite) can be recovered only by underground coal gasification (UCG). The output – low pressure methane – can be liquefied to produce automotive fuels. The conversion is a costly process, but the feedstock – deep coal – has only a notional value since without UCG, it will remain where it is. UCG with Gas-to-Liquid (GTL) technology can overcome the constraint of liquid fuels for off-track mobility. Direct conversion of coal-to-Liquid (CTL), for which two projects have just been approved, is another option but here mineable coal will be used, pushing up cost. Gas hydrates are methane crystals formed under high pressure, low temperature conditions. There are abundant deposits of gas hydrates on both mainland coasts and around the Andamans. As of now, the technology to exploit gas hydrates is not available.

India’s share of the world’s proven natural gas reserve of 176.2

tcm (trillion cubic metres) is 0.6%; that is 1.1 tcm. Subject to technology and economics of deep waters field development and production, 75% maximum i.e. about 0.8 tcm should be recoverable. Against this, estimates for recoverable potential of CMM (coal mine methane) is 0.7 tcm, CBM (coal-bed methane) 1.1 tcm, and UCG (underground coal gasification) 93, yes 93 tcm. In addition, there are AMM (abandoned mine methane) and abandoned mine UCG potentials. All these potentials exist on land, devoid of risks and costs of offshore exploration and development. These numbers come from Geological Survey of India (GSI), based on exploration up to 1200 meters depth, establishing hard coal reserve of 287 bt. Based on the data from wells drilled for oil in the Cambay basin, another 63 bt coal reserve is estimated at depths between 500 and 1500 metres. Plus, the lignite potential is 36 bt. That makes a total of 386 bt. With conventional mining up to 300 meters depth, only 125 bt i.e. about one-third of this reserve is recoverable. As much as 50% of this recoverable coal will be abandoned in the mines as pillars, walls and roofs. CBM, CMM and AMM are established technologies. There are several excellent reasons to act on the UCG option on highest priority. One: this is by far the largest indigenous potential source that can be exploited with established technology. Two: this is the major option (CBM being the other one) to access unmineable coal which is two-thirds of our total reserve. Three: this is clean-coal technology without alienating arable land. q



bEST prACTiCES

ROUNDWATER PLAYS a key role in the provision of drinking water to rural populations. In most villages local sources of water, if not reliable,

are at least used seasonally. With increasing population and higher aspirations of people, the demand for ground water for rural water supply, a resource that provides drinking water of acceptable quality with minimal treatment and at modest cost, continues to grow. Development of ground water holds special importance in Gujarat, which is subject to recurring droughts.

But the fact is that Gujarat is one of the states that experience the most serious problems of quality of ground water. High levels of fluoride, nitrates and salinity are largely responsible for making the ground water unfit for drinking. Gujarat has the longest coastline of 1600 kms., which is about one third of the total coastline of the country. Of this, more than 1100 kms is in Saurashtra and Kutch. Coastal areas have always occupied an important

First Water Pyramid through People’s Participation

G place as centers of urbanization and industrial growth. This has received a further impetus of late due to the development of minor and major ports, and coastal areas will continue to experience the pressures of growth. The low lying coastal areas are also important areas for agricultural production.

In Gujarat the problem of salinity ingress was first detected in coastal areas in late sixties and early seventies after huge pumping took place through oil engines by farmers. Disruption of the natural hydrological balance between fresh water and seawater in coastal areas leads to manifestations of problems. In coastal aquifers, fresh water outflows usually ride a heavier saline water wedge. Any decrease in the pressure of freshwater, such as that caused by over extraction leads to an upward and inward movement of the seawater wedge, which renders a larger part of the aquifer saline. During high tides also seawater enters through streams, rivers, creeks and percolates into the ground, affecting the quality of

V S Gadhavi

The author is Secretary (Water Supply), Government of Gujarat.

The use of Water Pyramid has an added advantage of generating

income from selling distilled water and salt for the rural communities


ground water. A major consequence of this problem is the acute shortage of potable water in this region. The habitation survey of 2004 reveals that 2508 villages across the State are affected by high TDS in ground water (about 950 in Saurashtra and 170 in Kutch).

Excessive contaminants in drinking water take their toll on the body and lead to diseases such as fluorosis, high blood pressure, and kidney stones. The chronic manifestations of excessive fluoride and salinity that brings infirmity at early age especially in women, are often brushed aside as routine aging problems and are seldom attributed to drinking water.

The Government of Gujarat is committed to facilitate drinking water security to all villages of the State, which implies availability of adequate, regular and safe water to the rural communities. Towards this it has taken several steps, such as shifting from ground water sources to surface water sources by creating a ‘Statewide Drinking Water Grid’ which on completion, would cover three-fourth population of the state. (Already more than 50% population has been covered through the grid). Simultaneously water harvesting structures such as check dams, village and farm ponds, embankments, contour bunds and rooftop collectors, are being constructed to capture water and increase ground water recharge to augment the local water sources so that the people can avail of a dual water supply system.

Ye t a n o t h e r i m p o r t a n t paradigm shift in the sector is that it is steering away from the government-controlled, supply-driven, centralized programmes to decentralised community managed in-village water supply systems, wherein the systems are created based

on the demands of the community, the community shares the capital cost and the entire responsibility if the O&M of the systems lies with the community. To facilitate and scale up the decentralization of water supply systems, the Water and Sanitation Management Organisation (WASMO) was set up by the GoG in 2002, which along with 70 NGOs in the State has been able to bring 13,000 villages in the State into the fray of decentralization.

Another important aspect is awareness generation on water quality, sanitation and health issues and participation of the users in water safety. While awareness generation, especially on water handling, personal hygiene and sanitation etc., can bring about behavior change and help in curbing bacteriological contamination, the chemical contamination and inherent water quality problems often need technology interventions. The State endeavour has also been to initiate these technology interventions, interact with the vendors and develop public private partnership models that are convenient and user friendly, so as to address the drinking water quality issues.

Reverse Osmosis is a technology that can bring down the concentration of un-desirable chemical constituents to an acceptable level as well remove the bacteriological impurities. Over the last decade RO technology has improved tremendously and plants of very small to very high capacity are available, which are capable of treating different quality parameters of water. The challenge for WASMO was to standardize the assembled parts of the RO plant essential for a quality efficient product. After detailed deliberations and tendering procedures WASMO has now reached an understanding with 2 RO vendors for installation

of RO plants in 400 villages on BOOT basis.

Safe water for the village of Shirva

Shirva, a village situated 7 kms. away from the Mandvi taluka of Kutch district has 471 households from a mixed community. For several years the village depended on water supply from a borewell constructed and maintained by the Gujarat Water Supply and Sewerage Board (GWSSB), through stand posts. But this system was badly damaged during the earthquake of 2001. Under WASMO’s programme for community managed water supply systems in earthquake affected areas (ERR), the village came together to form a representative Pani Samiti as per the Government Resolution. After initial setbacks in collection of community contribution, the Pani Samiti was able to complete the water supply works including ESR (1,00,000 ltrs capacity), sump (1,00,000 ltrs capacity), distribution line, pump room, power connection, repairs and reconstruction of washing ghat and cattle trough and pond deepening.

But the quality of the water from the bore well was not potable and the TDS level was 3500 + ppm (parts per million). The result was that the people of the village suffered from problems of kidney stone, digestion and other stomach ailments. To overcome this problem, the two village ponds were further deepened so as to recharge the borewell. Although this helped in bringing the TDS level down, the water was still not potable and the community was disheartened.

In the meantime, WASMO was in the process of negotiating a deal with various RO vendors for installation of plants at the village level for the rural communities. When this option was put to the


village they whole heartedly accepted it, since they had been suffering for a long time. An RO plant of 1250 litres capacity was installed to cater to the demand of 5 lpcd on an average. The contribution from the Government was 90%, while the community contributed 10% towards the capital cost and the Pani Samiti took on the complete O&M responsibility. With the RO plant the TDS of the water reduced up to 450-500 ppm. A separate committee has been constituted to manage the RO plant and the daily distribution of the water. The charges are 30 paisa/litre if the quantity is more than 100 litres and 40 paisa/litre if it is less than 100 litres. The distribution of water has become a source of income for the Pani Samiti.

But the RO technology has a drawback. It produces ample amount of waste water and its disposal became a major concern for the community and WASMO. Everyday approximately 3,000 liters of water is utilised for drinking purpose whereas almost equal of 3,000 liters of water gets wasted as rejected water from the RO plant. Moreover, the RO plant being installed at a central location in the village, there is no proper space for discharge of the waste water. This rejected water has a TDS level of 7,000 + ppm, which is not even fit for consumption by the cattle, neither can it be recharged or utilized for household activities etc.

The water Pyramid Pi lot project

The appropriate disposal of waste water from the RO plant had been an issue of concern to WASMO and the Water Supply Department and all efforts were being made to arrive at a suitable solution. At this time, the Dutch Company ‘Aqua Aero Water Systems (AAWS)

approached Government of Gujarat with an innovative method of purification of water by using the Water Pyramid. When the community and Pani Samiti of Shirva were approached with this project, they took keen interest in it and showed the confidence to handle the task.

Invented by a group of engineers in the Netherlands, the Water Pyramid technology provides different ways to produce distilled water and to develop new business opportunities for the village. Mr. Martin Nitzsche the inventor of this technology from the Aqua-Aero Water Systems, Netherlands explains the water pyramid system in very simple words as a balloon that desalinates brackish/saline water using solar energy to produce distilled water.

The overall process of water pyramid is very simple and at the same time complex. The stage wise process can be described as follows:-

Collection of rejected water from RO plant

The rejected water from the RO plant is collected at one junction i.e. in Sintex tanks located near the water pyramid. Approx 30,000 litres are collected in six interconnected Sintex tanks each of 5000 litres capacity. All tanks are colored white to avoid heat and from one point the water is dispensed into the pyramid

Pyramid

The pyramid is made of polyethyline. The top portion of the dome is coloured white which does not allow the heat to escape, whereas the bottom of the dome is black in color which absorbs the heat. The nature of this material is that it absorbs the sunlight, (basically it is a good conductor

of heat) and the material is non-corrosive, eco-friendly.

The pyramid can be erected within half an hour by inflating it using a simple pump backed by a 24 volts chargeable battery. The outer portion of the pyramid is supported by a network of plastic ropes tied down to poles cemented in the ground, as a precautionary step against natural mishaps like, strong wind, heavy rainfall etc. Internally, thermocol sheets are laid at the bottom and are covered by plastic sheets so that the heat does not penetrate. Initially, at the time of erecting the pyramid, approximately 30,000 litres water is filled and this water will remain at the bottom of the dome.

The raw water (waste from the RO plant) is filled on the floor of the pyramid and evaporates due to the solar energy. The temperature inside the pyramid get to 55O C during winters and can get as high as 70 O C during summers. A gutter, in circular form, is laid along the inside of the pyramid. As the water condenses along the inside foil of the pyramid, it trickles into the gutter and is collected in a collection chamber. Thus distilled water with zero TDS is obtained. On an average for every 3000 litres of raw water approximately 1000 litres of distilled water is produced. Two tanks of 5,000 litres capacity have been constructed for collection of the distilled water and the rest of the water passes into the next chamber.

Evaporation pond

The left out portion of water from the pyramid is settled in this pond. Approximately 2000 litres of water gets accumulated over here on daily basis which evapo ra t e s t o p roduce t he byproduct of salt. Black woolen cloth is laid at the bottom of this pond, covered with one plastic sheet so that maximum heat can


be absorbed to hasten the natural process of evaporation.

Rain water pond

The Water Pyramid at Shirva has a base of 650 m2 and height of 9 metres. Consequently it offers a substantial surface area for rainwater harvesting during monsoon. This water too can be collected in a tank through gutters on the outside of the pyramid. At Shirva, the rain water will be collected in pond of capacity 3,00,000 litres. The rain water in the pond is collected under very controlled conditions between two layers of plastic sheets. This helps in protecting the rain water from atmospheric and other surrounding pollution.

Future Strategies

• Establishment of a proper

channel of marketing of distilled water in the local market. (This water can be used for pharmaceutical purposes, for batteries and for use as injection water under rigid controlled atmosphere)

• Maximum utilization of R. O. plant’s capacity by reducing the charges/rates of RO water, exploiting local markets, approaching Government offices, NGOs, other areas of market etc.

• Awareness generation among the village community for proper utilisation of the Pyramid’s byproducts.

• Establishment of proper network for the overall functioning,

operation and maintenance of the Water Pyramid system

The Water Pyramid is uniquely designed with eco-friendly foil structure which utilises energy from the sun to evaporate dirty or polluted source water and to condense high quality drinking water. At present it can be considered an appropriate technology – the energy consumption is very low (it is solely driven by sun energy), minimal production of air pollution and also minimizing soil pollution by minimal production of brine. The technology is simple to install and can be operated by local available labour force after capacity building. This is a pilot project and results can be fully assessed after some time. q


Role of Renewable Energy in India

ENErgy SECuriTy

N KEEPING with i ts vision to reduce poverty and improve the living condition of its people, the Government of India has set several monitorable

targets to bring about a general improvement in living conditions of its citizens. The Vision 2020 report of the Indian Planning Commission recognizes that by 2020, India will shelter people who are better educated, healthier and prosperous; have a well-developed network of roads and railways, and adequate capacity to handle the growth in transport demand (Planning Commission, 2002). Further, realizing the fact that the future social and economic development of the nation is premised on achieving a high rate of economic growth delivered with equity and social justice, India has plans for maintaining a high economic growth over the next couple of decades. While the Human Development Index (HDI) for India has increased from 0.515 in 1990 to 0.619 in 2005 (UNDP,

I

The authors are : Fellow and Area Convenor, Modeling and Economic Analysis and Associate Director, Energy Environment Policy Division, TERI respectively.

There is a need for enhancing

efforts to push on the technology development front while

making efforts to provide

an enabling environment for promoting use of renewable energy

Atul Kumar Ritu Mathur

2007), the country still ranks 128th and has to enhance the level of human development considerably.

There is a strong positive link between human development, economic growth, and growth in energy and infrastructure. Past experience reveals that no country has substantially reduced poverty without massively increasing its use of energy, and electricity, in particular, plays a crucial role in improving levels of human development and quality of modern life (ADB, 2007). While India’s development agenda focuses on the need for rapid economic growth as an essential precondition to poverty eradication and improved standards of living, meeting this agenda of the country successfully is extremely challenging given that around 44% of the total households in India still do not have access to electricity and several do not have even basic services and infrastructure. Determining the levels of energy requirements and examining the implications of the likely energy

OpiNiON


mix in the future is therefore extremely relevant for developing countries like India where rapid and significant change in economic development is expected.

Growth in India’s energy demand

Various projections indicate that by 2031, India’s energy requirements may increase to about 5 to 7 times that of 2001 levels. The Integrated Energy Policy report brought out by the Planning Commission estimates that in an 8% GDP growth scenario, India’s total commercial energy requirements would be in the range of 1514 mtoe (million tonnes of oil equivalent) to 1856 mtoe by 2031 under alternative scenarios (Planning Commission, 2006). TERI (The Energy and Resources Institute) estimates indicate that under a 8% GDP growth scenario commercial energy requirements would increases to about 2150 mtoe in year 2031.

Coal is the mainstay of the Indian economy and its dominance is expected to continue even in the future under a Business-As-Usual (BAU) scenario with coal consumption expected to increase by as much as 8 times from around 350 million tonnes to 2050 million tonnes during 2001 to 2031 as per TERI estimates. The electricity sector is especially heavily dependent on coal with 53% of the generation capacity being coal based. Petroleum consumption is also expected to increase rapidly, mainly on account of the transport sector, and is estimated to increase by around 8 times over the period 2001-2031.

Concerns of India’s increasing energy import dependency

India’s indigenous production levels of all conventional energy fuels are approaching the maximum

limits. Resources of coal that have been believed to have been significantly large over the years, are now estimated to be adequate for only 40 years or so at current production levels and likely to be depleted even faster if exploited more rapidly. The production of domestic crude oil has remained nearly stagnant since the last 15 years. The reserve to production ratio for oil and gas is 40 and 67 years respectively. With current levels of technology and Exploration and Production (E&P) efforts, indigenous supply of the conventional energy forms is expected to reach the maximum production limits rather soon, restricting domestic availability of conventional energy resources. Moreover, whi le es t imates regarding the levels and timing of saturation of indigenous production of conventional energy forms vary considerably, all the studies are equivocal about the fact that the energy demand and supply gap would widen considerably, necessitating increasing and much higher levels of coal, oil and gas imports in the future.

Although India has depended on oil imports for several decades, imports of coal and gas have started during the last decade. The dependency on imports for coal, oil, and gas is expected to increase significantly in the future. TERI estimates indicate an import dependency of 78% for coal, 91% for oil and 34% for gas by year 2031 with current estimates of future availability of indigenous energy. The Integrated Energy Policy Report also corroborates the expectation of high levels of energy import dependency in the future. This however, is clearly an unsustainable trend with implications not only in terms of large monetary outflows but also

the implications with regard to environmental implications.

Renewable a key solution for energy security

Several options for transiting to more sustainable energy conversion and use have been discussed in various recent studies. However, while the potential for energy saving is fairly large in terms of magnitude, especially when compared with current levels of commercial energy consumption, it would probably do little to bring about a level of comfort either with regard to energy security or in the context of reducing emissions. The concern assumes even greater significance in the current context of spiraling fuel prices in the international market and the growing global consensus on the need to tackle climate change. In the Indian context, there is a need to urgently move away from conventional thinking and bring about some major energy sector transformations to address the concerns of energy security and climate change.

One of the key areas where there is a strong need to re-evaluate the roadmap is the renewables sector. While renewables are also seen to have a role to play especially in terms of decentralized applications, these have thus far been examined in a rather limited context, and are expected to be able to displace only upto 5-6% of the total energy requirement across all the studies. However, given the large potential of renewables in India, this is one area that needs to be re-evaluated in terms of its possible contribution to decreasing the use of fossil fuels and making a major difference to energy security and environmental considerations related with energy consumption.


Renewable energy includes solar and solar derivatives such as solar PV, solar thermal, biomass and biofuels, wind, hydropower, and ocean wave energy. Renewable energy sources are regenerated naturally in time-spans that are meaningful in terms of policy and planning horizons and renewable energy technologies (RETs) have several well-recognized advantages in relation to conventional, largely fossil fuels based, energy systems. First, by displacing use of fossil fuels, they promote energy security. Second, they are amenable to adoption at different scales – from hundreds of megawatts capacity to a few kilowatts. In many cases they may be deployed in modular, standardized designs. This enables RETs to be matched closely with end-use scales, enabling decentralized deployment, and thus avoiding the risk of failures, and unauthorized access to large networks, which leads to non-commercial losses. The feasibility of location close to the load or consuming centres enables reduction of technical transmission and distribution losses. However, where centralized grids (networks) exist, they may be inserted as individual modules in the grid (network) supply. Third, they can help promote sustainable development in terms of providing increased opportunities for local employment, especially the rural poor, and environmental improvement through reducing GHG emissions, local air pollutants, solid waste and waste-water generation, and (in case of forestry-based sources), soil and water conservation, and maintaining habitats of wild species.

Solar energy is clean and self-renewing, and India, nestled in the equatorial sunbelt, is blessed with a virtually endless supply of it. The average intensity of solar radiation

received on India is 200 MW/km2. With a geographical area of 3.287 million km2, this amounts to 657.4 million MW. However, 87.5% of the land is used for agriculture, forests, fallow lands etc., 6.7% for housing, industry etc. and 5.8% is either barren, snow bound or generally inhabitable. Thus, only 12.5% of the land area amounting to 0.413 million km2 can, in theory, be used for solar energy installations. Even if 10% of this area can be used, the available solar energy would be 8 million MW, which is equivalent to 5909 mtoe (million tons of oil equivalent) per year. In comparison, the total end use commercial energy consumption in India was 216 mtoe in 2005/06 (TERI, 2008). Thus, the available solar energy is about 26 times the current commercial energy consumption level. The National Action Plan on Climate Change, therefore, assigns an important role for the National Solar Mission to significantly increase the share of solar energy in the total energy mix, while also recognizing the need to enhance the use of other renewable and non-fossil sources like nuclear, wind and biomass (GoI, 2008).

Against this backdrop, the indigenously available solar energy resource can be used gainfully for meeting the country’s energy requirements – thermal as well as electric - of domestic, industrial, and commercial sectors. On the applications side, the range of solar thermal energy is very large. At the high end there are megawatt level solar thermal power plants whereas at the lower end there are domestic appliances such as solar cooker, solar water heater and PV lantern. In between, one can have applications such as industrial process heat, desalination, refrigeration and air-conditioning, drying, large scale cooking, water pumping, domestic

power systems, and passive solar architecture.

In India, as a result of efforts made during the past two decades, significant infrastructure has emerged for the manufacture of different solar energy systems/components including solar PV cells and modules, solar collectors, solar water heating systems, and solar parabolic dish. Some of these have also been exported to the USA, Asian countries, Europe and Latin America albeit sporadically. On the other hand, about 30 odd Energy Centers in various academic institutions have been contributing by way of developing specialized human resources.

Given the fact that at present costs of solar based technologies are very high and energy conversion efficiency is low as compared to conventional technologies, cont inuous improvement in technologies as well as products is essential if the goal of mainstreaming solar energy technologies has to be achieved in the competitive market scenario that India is witnessing at present. Emphasis would have to be given to product development with a view to improve efficiency and reliability, and reduce costs. Renewed thrust would need to be accorded to R&D to keep pace with international technological trends and market requirements.

To leverage the expertise that India has developed in the field over the years, there is a need to design suitable measures to expand the indigenous manufacturing base of solar energy systems and components. This would not only help in servicing the domestic markets with standard equipment and devices but also in positioning India as a `Solar Hub’ for catering to the growing export markets. The


advantage of such an approach would be in terms of bringing down the costs of solar energy systems through economies of scale (and therefore ease of introduction of the latest technologies/processes).

S imi la r ly, g iven presen t yields and transesterification technologies, plantations of oil seeds for bio-diesel production for over 25% of the wastelands can displace 21% of current petroleum-based transportation fuels. Surplus crop residues, estimated at 139 million tonnes per year is another significant renewable energy source at the village level. The total yield of crop residues each year is 546 million tonnes, but the major part of this plays an important role in the overall rural economy and in ensuring agricultural sustainability, and hence only the estimated surplus may be used for renewable energy. Other biomass sources include

fuelwood plantations on wasteland and degraded forest land. Wind turbines and hydropower are other significant sources of renewable power which are now established commercially.

Due to the intermittent nature of some of the renewable energy flows, (e.g. solar, wind), there is a need for hybridization with systems more under human control and not as dependent on nature. In case of other renewables such as biofuels, the competition for land and water currently used for growing food crops would also need to be addressed appropriately.

W h i l e t e c h n o l o g i c a l demonstration is necessary to scale up the use of the options that are commercially viable, focus on R&D is essential in order to make available a larger range of options that can be applied depending on

specific needs. Also important is the need to adopt innovative ways to meet the energy demand gaps in the short term – a recent initiative undertaken by TERI aims at providing lighting solutions to the poor till such time that electricity can be made available to all.

Accordingly, efforts need to be made by all concerned stakeholders in order to mainstream renewables into India’s energy mix. There is a need for enhancing efforts to push on the technology development front while making efforts to provide an enabling environment for promoting use of renewable energy from the policy side by providing adequate incentives to developers to encourage them to invest in the sector in order to ensure energy security in India and also tackle global climate change problem. q

(Email : [email protected])

Over 1.6 billion people in the world lack access to electricity; roughly 25% are in India alone. For these people, life comes to a standstill after dusk. Inadequate lighting is not only an impediment to progress and development opportunities, but also has a direct impact on the health, environment, and safety of millions of people, as they are forced to light their homes with kerosene lamps, dung cakes, firewood, and crop residue after sunset.

Recognizing the need to change the existing scenario, TERI, with its vision to work for global sustainable development and its commitment towards creating innovative solutions for a better tomorrow, has undertaken an initiative of 'Lighting a Billion Lives' (LaBL) through the use of solar lighting devices.

The Campaign aims to bring light into the lives of one billion rural people by replacing the kerosene and paraffin lanterns with solar lighting devices. This will facilitate education of children; provide better illumination and kerosene-smoke-free indoor environment for women to do household chores; and provide opportunities for livelihoods both at the individual level and at village level.

The Campaign targets all communities across the world that lack access to modern and clean sources of lighting. Through this Campaign, local entrepreneur-driven delivery channels are created for distribution and servicing of solar lanterns to rural communities, for whom kerosene is the predominant fuel for lighting—not only in households but also in small enterprises such as shops, local bazaars, tuition and coaching centres, and cottage industries. The campaign is being implemented according to a necessity index that has been developed for each state in India.

LIGHTING A BILLION LIVES


BILL TO PROTECT HERITAGE SITES

HOuSING PROJECTS TO GET RS 5000 CRORE

GOVT PLANS RS 55,804 CR FOR PORT SECTOR

PROJECT IN PuNJAB

NEwS NEwS NEwS NEwSIN THE NEwS

Th e g o v e r n m e n t h a s a p p r o v e d a p r o j e c t worth over Rs 63 crore

for modernisation of machine tools and casting foundry cluster in Batala, Punjab aimed at doubling its turnover to Rs 1,200

The government plans to inves t Rs 55 ,804 crore in the port sector

of the country and would also encourage investment from the

The Centre introduced the National Commission for Heritage Sites Bill, 2009,

in the Rajya Sabha to set up a National body for the preservation and management of heritage sites.

The commission, which would

For Housing sector, the Cabinet has cleared a scheme that will see the

Centre share a quarter of the costs of constructing roads to connect housing projects promoted by

consist of a chairman and seven members, would recommend to the Centre or state governments on short and long-terms policies in respect of conservation, protection and management of heritage sites.

The Bi l l , empowers the

state governments in partnership with private companies. The Central contribution will also cover peripheral civil works. The Cabinet ear marked Rs 5,000 crore for this, to be spent in the

commiss ion to fo rmula t e guidelines for the conservation and management of heritage sites.

B e s i d e s , t h e r e i s a provision to impose a fine of Rs 10 lakh for violation of the directives.

(Courtesy : The Deccan Herald)

next four years, with the rider that a quarter of the built houses with at least 300 sqft area will be for the poor.

(Courtesy : The Times of India)

private sector. The government h a s a l r e a d y l a u n c h e d t h e National Maritime Development Programme involving a total i nves tmen t o f Rs 1 ,00 ,339

crore. In the port sector, the total anticipated investment is Rs 55,804 crore for 276 projects,

(Courtesy : The Financial Express)

crore. “Their project which was approved by the department of Industrial policy and Promotion will raise the annual output from Rs 600 crore to Rs 1,200 crore. To be implemented in Gurdaspur district bordering Pakistan would

be funded to the extent of Rs 43.4 crore by the Central government under the Industrial Infrastructure upgradation Scheme. q

(Courtesy : The Financial Express)


Dharitri Panda

Rural Electrification in India

ENErgy SECuriTy

FTER 60 years of India’s independence, still 78 million (Census 2001) rural households ie 56% of population remain

dark. If one travels in the villages of India, one is startled to notice miles of darkness before one can spot a flickering light. Currently, the vast majority of poor rural households do not have access to electricity in India. Electrification rates vary dramatically between the urban poor (33% without connection) and rural poor (77% without connection), and obviously between the rural poor and the urban rich. This inequity impedes the development of poor rural populations and underscores the fact that India’s rural electrification programs have not reached the most marginalized and needy sections of society. Because such a low number of rural households have grid connections, only a small percentage of rural poor have benefited from subsidies,

A with the majority of subsidies benefiting richer households. Given the well demonstrated connection between electricity growth and human development, India cannot aspire to graduate beyond the ranks of poor nations without a viable and sustainable plan for rural electrification. However, after a decade of neglect in the 1990’s, rural electrification is back and high on the political agenda. Both the Government of India and Planning Commission’s strategy for the development of rural India as well as the United Nation’s Millennium Development Goals (MDGs) for the next ten years are inherently dependent on the integration of electricity services to achieve a set of varied development goals.

F r o m t h e b e g i n n i n g o f Constitution, Power has been in the Concurrent List and the Centre therefore had largely allowed the State governments to develop the

prOSpECTS

The author is a member of the Indian Civil Accounts Service.

Rural electrification is the key that

unlocks the vast economic potential of rural India. How soon it is going to be and how good it is going to be depends on the

State, Institutions, Systems and Actors


electricity infrastructure on their own. Thus rural electrification was mostly the responsibility of various monolithic State Electricity Boards (SEB). The treatment given to rural electrification was therefore dependent on how politically committed was the state towards rural electrification and also its financial health. Their performance was uneven with the relatively rapid electrification in some decades and extremely low levels of activity notably the 1990’s. Perhaps more significant than the pace of new connections, the level and quality of service has been poor, as rural electrification has been caught up in a larger malaise of inefficient administration, poor technology and financial collapse that has afflicted the SEB’s

In 1947, 1500 villages were electrified and the per capita consumption was 14 units while 4,74,982 villages were electrified in 2004 and the per capita consumption was 592 units. In the 1950s ,State Electricity Boards were to expand grid from limited budgets and village electrification was a bye product of efforts to connect cities and towns. 18689 villages were electrified during this period.

In the 1960s, there was a bitter drought and therefore food security was of paramount concern. The focus of electrification was energisation of pump sets which was necessary for drawing groundwater for irrigation .For that, village electrification meant grid extension to farms and not to village habitations. A village would be declared as electrified if electricity was being

used within its revenue area for any purpose whatsoever. The Rural Electrification Corporation (REC) was set up in 1969 with a mandate to finance for rural electrification and its major financing activities were to finance for pump sets and rural electricity cooperatives.

In the 1970s the focus of policies was on industrial development and green revolution and states which were forefront in the green revolution like Punjab, Haryana, and Gujarat surged ahead with their village electrification plans. In this period 1,66,975 villages got electrified.

The 1980s witnessed a closed economy model of development and demand heavily outstripped supply with no major funding for rural distribution .With price of electricity capped, there were leakages, commercial mismanagement, and rent seeking. About 2,08,218 villages got electrified during this period . The issue was whether this mind boggling statistics was due to the simplistic definition of village electrification. In 1988-89 the central government launched the Kutir Jyoti scheme to provide free connections to the Below Poverty Line (BPL) people.

In the 1990s, India wanted to bring in economic liberalization and later on power sector reforms was initiated. Orissa pioneered in 1996 though it has been a laggard in village electrification along with Bihar, Uttar Pradesh, West Bengal and Madhya Pradesh which account for 60% of those households lacking access to electricity (Census 2001).

During this time rural development was also gaining prominence. In the electricity sector the focus was on generation for capacity addition and distribution reforms were mostly in urban areas. Only 6142 villages got electrified during this period.

The current period since 2000, has seen a renewed enthusiasm for rural electrification and maybe the Census, (2001) had a rural shock effect as it said that 78 million rural households were still not connected to electricity and over 1 lakh villages were not electrified.

I n 2 0 0 0 - 2 0 0 1 , t h e C e n t r e i n i t i a t e d P r a d h a n Mantr i Gramodaya Yojana( PMGY),where in Addi t ional Central Assistance ( ACA : loan 90% grant 10%) was given for selected basic services and rural electrification was one of the services. The states could reallocate to other sectors and therefore the priority was lost.

In the 2000 -01, the Minimum Needs Programme (MNP: 100% loan) was launched by the Centre for last mile connectivity in less developed states. In 2002-03, the Accelerated Rural Electrification Program (AREP) was started and interest subsidy of 4% was given for loans from REC, PFC and NABARD.

However rural electrification was given a New Deal under the Electricity Act, 2003 .The objectives, goals and targets were spelt out in the Act and several sections of the Act are focused


on the new accelerated rural electrification policies and plans to be launched pursuant to the Act’s implementation.

I n 2 0 0 4 , t h e d e f i n i t i o n electrification was again revised and made more comprehensive to include basic infrastructure such as distribution transformer and distribution lines in the inhabited locality and electricity is provided to public places like schools, panchayat offices, etc and the number of households electrified should be at least 10% of the total number of households in the village. The comprehensiveness of the definition shows the change in the emphasis of electrification from mere pumpset electrification to habitation and household electrification. The pace of village electrification in the past is shown in Table 1 below:

Prospects

The RGGVY was launched in 2005 with the following goals.

(i) Provide access to electricity to remaining un-electrified households

(ii) Electrification of about 1.15 lakh un-electrified villages

(iii) Free Electricity connections to 2.34 crore Below Poverty Households (BPL )

The target year of achieving these targets is 2009 and under this scheme capital subsidy was given on basis of 90% grant and 10% loan. Rs 33000 crore as capital subsidy would be provided by Government of India for projects for:

(i) Creation of Rural Electricity Distribution Backbone (REDB) with one 33/11 kV (or 66/11 kV) substation in every block appropriately linked to the State Transmission System.

( i i ) Crea t ion o f Vi l l age Electricity Infrastructure (VEI) for electrification of all un-electrified villages/habitations and provision of distribution transformer(s) of appropriate capacity in every village/habitation.

(iii) Decentralized Distributed Generation (DDG) and Supply S y s t e m f r o m c o n v e n t i o n a l

sources or non conventional sources for Villages/Habitations where grid supply is not cost effective and where Ministry of Non-Conventional Energy Sources would not be providing e l e c t r i c i t y t h r o u g h t h e i r programme(s).

In addition to village and h o u s e h o l d e l e c t r i f i c a t i o n the infrastructure envisages to cater to the requirement of agr icul ture and other smal l scale and cottage industries and for healthcare, education and IT. This would facilitate overa l l ru ra l deve lopment , employment generat ion and poverty alleviation. The states have to commit to provide at least 6-8 hours of electricity supply in rural areas and deploy franchisees for the management of rural electricity distribution. This step has been taken to bring in more efficiency and accountability at the local level. It is believed that community participation in management of rural electricity d i s t r i b u t i o n w i l l e n h a n c e credibility of the organization and help in improving collections and reducing losses and ultimately bring in revenue sustainability. For this the states have to finalize their Rural Electrification Plans in consultation with Ministry of Power and notify the same within 6 months. The plans would be a roadmap for generation, transmission, sub-transmission and distribution of electricity, a ffordabi l i ty of ta r i ff s and installation of franchisee system in the state.Source : REC(2005)


T h e R G G V Y w a s t h e n followed by a central policy in 2006, the Rural Electrification Policy (REP), which is the first central policy of the country on rural electrification after sixty years of independence. T h e g o a l s o f t h e p o l i c y were provision of access to electricity to all households by 2009, Quality and reliable power supply at reasonable ra tes and Minimum l i fe l ine consumpt ion o f 1 un i t pe r household per day as a merit good by year 2012.

revenue but also institutional and environmental sustainability.

Speed pf Electrification

With RGGVY, stiff targets have been imposed for village and household electrification with a 4 year timeline which is a task of truly mammoth proportions and therefore the speed of electrification is crucial. The challenge is to efficiently plan, manage and implement the projects and make regional Plans with achievable milestones along with linkage between inputs

quality for supply to existing and future rural consumers. Increasing state subsidies or price hikes for improving quality becomes difficult in rural areas as consumers are not willing to pay higher for erratic and poor quality supply. What would be required is to improve collection efficiency and investment in the distribution network to improve quality of supply. Further, in the backdrop of decentralized generation being freed from license obligations in Electricity Act, 2003, an integrated small scale provider, whether using diesel or renewable sources may be able to provide quality power and demand a higher price.

Affordabilty of Tariffs

The scheme of RGGVY has included the concept of revenue sustainability and towards this goal has given an indication that the States have to provide for affordable tariffs and the regulators need to provide for Bulk Supply Tariffs in a manner that ensures commercial viability. The states need to provide adequate revenue subsidy to the utilities as required under the Electricity Act, 2003. But this easier said than done. With states struggling with financial deficits and politics influencing the tariff regime, the task of balancing the interest of the rural consumer and the commercial viability by the regulator is a tough one. However, it’s an established fact from successful case studies that cost recovery is a significant factor determining the long term effectiveness of rural electrification. Rural electrification

As on 15.02.2009, the status of electrification of villages :

Un-electrified villages Electrified villages

Total Rural Households

BPL Households

56871 72703 5679143 4687473

(MOP website :[email protected])

The results are encouraging, keeping in view the pace of electrification in the past, as in sixteen years of Kutir Jyoti (1988-89 to 2004-05) only 60 lakhs of BPL connections had been released while in 4 years of RGGVY about 47 lakhs of BPL connections have been released in the last four years. 56,871 villages stand electrified another 72 ,703 are under in tens ive electrification. While it has been ensured that rural electrification projects are comprehensively covered under RGGVY, many challenges still remain to be overcome so as to ensure that there is overall sustainability in the rural electricity sector and this encompasses not only

and outputs. The constraints would be shortage of supply of equipments and contractors to deal with the unprecedented demand. Absolute strict monitoring and control at a central level would be required along with system planning and system design so that the speed is maintained. To enhance penetration level what are required are awareness campaigns for connections and load intensification efforts by utilities.

Quality of Supply

The approach in rural India is largely grid based except isolated efforts in decentralized generation. The second challenge for the cash strapped utilities is to simultaneously expand c o n n e c t i o n s a n d i m p r o v e


tariffs set at realistic levels do not prevent people from making significant savings in their energy costs, as well as obtaining a vastly improved service. Charging the right price allows electricity companies to provide power supply in an effective, reliable, and sustainable manner to an increasing number of satisfied consumers.The rationalization of tariffs alongwith improvement in collection efficiency is the challenge that needs to be faced for long term revenue sustainability. And this issue is closely linked to the issue of giving free power to agriculture in some states which needs to be reviewed.

Security of Supply

It is anticipated that with RGGVY, huge demand wil l be created in the rural areas. One study by Navroj Dubash estimates that on an average a rural household would require 409kwh/year and if majority of the 78 million households get connected it is estimated that anywhere between 6 and 65 gigawatts(GW) of new capacity addition would be required to supply the grid for rural areas. Traditional generation technologies based on coal and gas have a long gestation time and are also increasingly getting dependent on imported fuel supply which raises number of issues of energy security. Further , in the wake of growing concern for climate change it is necessary to leverage on the renewable energy technologies f o r d i s t r i b u t e d g e n e r a t i o n which have shorter time scales

for generation and have been delicensed in the Electricity Act,2003. The states need to put in place favorable policies’, schemes and incentives so that an entrepreneur is attracted to respond quickly enough to such a rapid increase in demand.

Technical and Operational Performance

India’s T&D infrastructure a l r e a d y s u f f e r s f r o m underinvestment, with blackouts and brownouts common across the country. Rural electrification, which by definition means less dense populations and thus greater T&D needs, may well place too much demand on its already weak grid. The challenges are to put in place adequate metering, reduce lead time in repairing faults with installation of IT, and improvement in customer services including introducing prepaid cards, spot billing and introducing some benchmarking for quality of supply.

S u s t a i n a b l e M o d e l f o r Electrification

One of the most encouraging s t r a t e g i e s i n R G G V Y h a s been to mandate a franchisee model for distribution in rural electrification. As on 15.02.09, there are franchisees handling electricity distribution in 93,410 villages and in 16 states. The franchisees can be cooperatives, user associations, self help groups, non governmental organizations, individual entrepreneurs and p a n c h a y a t s . W h i l e m o s t franchisees are revenue collection franchisees, the ideal model is to

install an input based franchisee where a franchisee is handed over charge of substation or feeder wherein he is accountable for distribution of the energy input. Here the losses are then controlled by the franchisees. The challenges are to create a sustainable model and in the initiation period plan a robust system. As the delivery institutions become many and the actors varied, its important to create competencies among the ut i l i ty off icials and the franchisees to adequately deal with the complexities of rural electrification. Mere installation of a franchisee does not signify success. The state or the utility h a v e a n i m p o r t a n t r o l e i n putting in place systems that wil l faci l i ta te or encourage franchisees to venture into this difficult world. There needs to be targeted outreach programs, reduction of transaction costs by developing s tandardized tools and templates, contract guidelines, transparent area selection criteria and standard reporting protocols and adequate incentive mechanisms.

To conclude, the framework of the Electricity Act and with RGGVY,universal access to power in vi l lages is on the horizon. Undoubtedly, rural electrification is the key that un locks the vas t economic potential of rural India. How soon it is going to be and how good it is going to be depends on the State, Institutions, Systems and Actors which is termed as the SISA framework. q



Energy is Life – Conserve it

ENErgy SECuriTy

HE GOVERNMENT of India is committed to meet, at affordable ra tes , the growing energy needs of a

rapidly expanding economy. The projected trajectory of economic growth requires a commensurate growth in energy availability. While adding to our generation capacity, and increasing the proportion of energy from clean sources is being taken up as a thrust area, energy conservation and its efficient use is the need of the hour, and the need to make efforts in this direction have become important components of energy policy. The government’s priority in this area is reflected in the enactment of the Energy Conservation Act in 2001 with the avowed goal of reducing energy intensity of Indian Economy, and in the setting up of the Bureau of Energy Efficiency (BEE) as a nodal statutory body under the power ministry on 1st March

T

The author is Director General, Bureau of Energy Efficiency, Ministry of Power.

The mission of the Bureau is to assist in

developing policies and strategies with

a thrust on self regulation and

market principles, with the primary

objective of reducing energy intensity of

the Indian economy

Ajay Mathur

2002, to facilitate implementation of the Act.

Energy Conservation Act, 2001 (52 of 2001)

The EC Act, 2001 integrates the element of energy conservation and its efficient use as a measure of express legal intent and commitment. The Act empowers the central government and in some instances the state governments to:

• No t i fy ene rgy in tens ive industries, other establishments and commercial buildings as designated consumers.

• Es t ab l i sh and p r e sc r ibe energy consumption norms and standards for designated consumers.

• Direct designated consumers to designate certified energy managers, get energy audit conducted by an accredited energy auditor in the specified manner and intervals of time, furnish information on energy

STrATEgy


consumed and action on the recommendation of the accredited energy auditor to the agency, comply with energy consumption norms and standards, or prepare and implement schemes for efficient use of energy and its conservation.

• Prescribe energy conservation building codes for efficient use of energy and its conservation in commercial buildings, suited to regional and local climatic conditions, and direct owners or occupants to comply with such provisions .

• Direct mandatory display of label on notified equipment and appliances.

• Specify energy consumption standards for notified equipment and appliances.

• Prohibit manufacture, sale, purchase and import of notified equipment and appliances not conforming to standards.

The Act al lows the state government to designate agencies in consultation with the Bureau of Energy Efficiency to coordinate, regulate and enforce the provisions of the Act in the states.

Bureau of Energy Efficiency (BEE)

The mission of the Bureau is to assist in developing policies and strategies with a thrust on self regulation and market principles, with the primary objective of reducing energy intensity of the Indian economy. BEE co-ordinates with designated consumers, agencies and other organizations in performing the following regulatory and promotional

functions assigned to it under the EC Act, 2001:

• Develop and recommend to the Central Government the norms and energy consumption standards for various processes, minimum energy consumption standards and labeling design for equipment and appliances, specific energy conservation building codes.

• Recommend the Cen t ra l Government for notifying any user or class of users of energy as a designated consumer.

• Take necessary measures to create awareness and disseminate information for efficient use of energy and its conservation.

Action Plan for Promoting Energy

The Integrated Energy Policy (IEP) also lays emphasis on e n e r g y c o n s e r v a t i o n a n d efficiency, particularly through Demand Side Measures (DSM) and estimates 15% saving of energy is poss ib le by such interventions. The interventions include bulk procurement and distribution of CFLs, adoption of Energy Conservation Building Code (ECBC), promoting and mandating the use of energy efficient pumps and other energy efficient appliances. Based on the above, the major schemes that BEE has proposed during xI plan are:

Bachat Lamp Yojana (BLY) Scheme

This is a scheme to promote e n e rg y e f f i c i e n t a n d h i g h

quality CFLs as replacement for incandescent bulbs in households. BEE is coordinating voluntary efforts to provide high-quality CFLs to domestic consumers for about Rs. 15 per lamp, i.e. at a rate comparable to that of an incandescent bulb. This would remove the barrier of high CFL price (currently at Rs. 80/- to Rs. 100/-) which constraints its penetration into households. It targets replacement of about 400-million incandescent bulbs in use in the country, leading to a possible reduction of 6,000 MW-10,000 MW of electricity demand, and a reduction of about 24 million tones of CO2 emissions annually. The coverage of the entire country, based on DISCOMS areas, is expected to be completed by 2009-10. 14 major CFL manufacturers and 8 suppliers have agreed to participate – more are expected to follow. First two pilots in Vishakapatnam (AP) and Sonepat & Yamunagar (Haryana) are already underway.The Vishakhapatnam pilot was registered on 26 September 2008 with CDM-EB (Clean Development Mechanism Under UNFCCC) subject to amendments. PoA for BLY is prepared and is being sent for registration at CDM-EB after stakeholder conference. 13 DISCOMS have already shown their intent to undertake implementation of BLY in their respective DISCOM regions.

Standards and Labeling Scheme

This scheme targets high energy end use equipments and appliances to lay down minimum energy performance standards. The


Central Government, under the Energy Conservation Act, 2001 is empowered to direct display of labels on specified appliances or equipment and enforce minimum efficiency standards by prohibiting manufacture, sale and import of products not meeting the minimum standards. The objective of this programme is to provide the consumer an informed choice about the energy saving, and thereby cost saving potential of the household and other equipment. Launched in May 2006 as a voluntary scheme by the Hon’ble Minister of Power, it currently covers four equipments - air conditioners, tubelights, refrigerators and distribution transformers. Rating plan for motors, ceiling fans, LPG burners, vehicles, CFLs, standby power, washing machines, etc. is under process. About 21 end use equipments to be covered by 2012. The scheme is under a proposal to be made mandatory. Notification for mandatory labeling is to be done in a phased manner. Concentrated awareness campaign is underway. The aim is for a market transformation in favor of energy efficient equipments and appliances that adhere to Minimum Energy Performance Standards (MEPS).

Energy Conservation Building Code & Energy Efficiency in Existing Buildings Scheme

Energy Conservation Building Code (ECBC) set minimum energy performance standards for commercial buildings. The ECBC is presently being run on voluntary basis. There is a huge potential for energy savings in existing buildings. Energy audits

conducted in offices buildings, hotels, hospitals, etc. indicate a saving potential of 23% to 46% in end uses e.g. lighting, cooling, ventilation and refrigeration, etc. Performance Contracting through ESCOs is an innovative delivery mechanism for overcoming the barriers faced by energy users. A pool of ECBC expert architects has been created, along with training material and guide books. Five pilot projects have begun in states through technical assistance. Capacity building and outreach activities are on. Under the EE scheme, ESCOs are being promoted, their accreditation is being done by CRISIL/ICRA to improve investor confidence, performance contract documents for ESCOs are being standardized, Energy Efficiency Financing Platform (EEFP)has been created with some willing FIs to take up financing of EE projects, innovative financial products, like securitization of receivables, energy efficiency bonds to fund the projects and setting up of partial risk guarantee fund for risk mitigation are being developed.

Agricultural (Ag) and Municipal (Mu) Demand Side Management (DSM)Scheme

This scheme targets power conservation through replacement of inefficient pumpsets, street lighting, etc. Ag DSM promises immense opportunity in reducing the overall power consumption, improving efficiencies of ground water extraction and reducing the subsidy burden of the states without sacrificing the service obligat ion to this sector. A successful implementation model

must address all variables and include all stakeholders. Provision of adequate incentive to farmers, given that they do not largely pay for electricity, is one of the major constraints in implementation of the scheme.Mu DSM also assumes significance given that municipalities consume 10% of energy overall and the cost input of energy is as high as 60% of the costs incurred by the municipalities. The cash starved municipalities are therefore unable to meet the service delivery standards that a fast growing urban area demands. Absence of enabling state level policies or regulatory interventions to implement water and energy efficiency measures to improve service and reduce costs while reducing power consumption of the utility does not help matters. Under these schemes, business linked to subsidy reduction is being evolved, as also baseline development, conducive regulatory regime and payment security mechanism . Awareness and outreach to local municipal bodies is being done, and a manual for Mu DSM with standard contract documents to enable easier implementation has been developed. Risk mitigation measures for encouraging PPP are being evolved

Energy Efficiency in Small and Medium Enterprises (SMEs) Scheme

The scheme seeks to provide comprehensive energy efficiency solut ions to SME clusters by conducting energy audits, preparing DPRs from energy audit studies, enhancing the capacities of service providers in each cluster,


provision of financing for bankable DPRs and awareness and outreach.Situational analysis of 35 clusters has been initiated to determine the status of energy consumption, technology penetration, etc. Investment Grade Audits for 10 units in each 25 clusters have been done. Availability of financing is being planned by capacity building of banking personnel for project appraisal and performance contracting.

Strengthening Institutional Capacity of SDAs Scheme

The Scheme seeks to build institutional capacity of the newly created State Designated Agencies (SDAs). to perform their regulatory, enforcement and facilitative functions in the respective states. SDAs are expected to play 3 major roles in acting as development agency, facilitator and regulator/enforcing body.The scheme seeks to develop and implement Energy Conservation Action Plan (ECAP) based on uniform template evolved to build institutional and human capacity. ECAPs have been completed for 15 states and are being developed for other states. A 19 point action plan has been evolved for implementation

by all SDAs. Energy Conservation Action Teams (ECATs) have been set up for coordinated approach to energy conservation and efficiency.

The graph above shows that the targetted savings during the year 2007-08 and 2008-09 were 500 MW amd 1400 MW respectively.

BIOFuELS IN INDIA

Biofuel, or fuel derived from non-fossil plant sources is being seen today as a cleaner alternative to diesel. Biofuel development in India centers mainly around the cultivation and processing of Jatropha plant seeds to give biodiesel and producing ethanol from sugarcane. Ethanol can be blended with

petrol for automobiles. Similarly, bio-diesel can be blended with high speed diesel for transport vehicles, generators, railway engines, irrigation pumps, etc. Large volumes of such oils can also substitute imported oil for making soap. In its National Biofuel Policy the Government of India has set a target of a minimum 20 per cent ethanol-blended petrol and diesel across the country by 2017. Bio-diesel plantations would be encouraged only on waste community / government / forest lands, and not on fertile land. Minimum Support Price (MSP) would be announced to provide fair price to the growers. Minimum Purchase Price (MPP) for the purchase of bio-ethanol by the Oil Marketing Companies (OMCs) would be based on the actual cost of production and import price of bio-ethanol. In case of bio-diesel, the MPP would be linked to the prevailing retail diesel price. The National Biofuel Policy also envisages bringing bio-diesel and bio-ethanol under the ambit of “Declared Goods” by the Government to ensure their unrestricted movement. q

Impact

B E E ’s p r o g r a m m e s a r e regularly undergoing impact assessments which include third party check testing. BEE's aim is to reach a savings of 10,000 MW by 2012.

The savings achieved by Bureau of Energy Efficiency are more than the targetted value .i.e. 600 MW during the year 2007-08 and 1800 MW during the year 2008-09. q



CENTRE TO CONSTuRCT 9,713 KM ROADS IN NORTHEAST

The Centre has announced to construct about 9,713 km roads in the Northeast

under Special Accelerated Road Development Programme for North East (SARDP-NE) in two phases.

The construction of 678 km stretch of East West Corridor from Srerampore to Silchar was undertaken by National Highway Authority of India (NHAI) at an approximate cost of about Rs

6,000 crore. Further, 706 km of road stretches in the north east Region have been included under the National Highway Development Programme III (NHDP-III) to be implemented on Built Operate Transfer (BOT) on toll basis. phase-A of SARDP-NE would cover 2,569 km, out of which 1,415 km had already been approved for execution and balance 1,154 km approved ‘in-principle’. Phase-B of SARDP-NE covers 4,825 km, officials stated.

U n d e r P r a d h a n m a n t r i Gram Sadak Yojna (PMGSY), road connectivity in the rural area had been taken up in all eight states of North Eastern Region and special relaxation in programme, specific norms and guidelines had been made to connect a large number of habitations particularly in hill/mountainous areas through cluster approach.

(Courtesy : The Sentinel)

uPSwING IN FOREIGN TOuRISTS AT KAzIRANGA NATIONAL PARK

Kaziranga National Park, which is the home to the endangered one-

horned rhinoceros, continues to a be major draw for tourists both domestic and foreign, despite travel advisories issued by several countries against visiting Assam following blast incidents in the recent past.

While domestic tourists have increased from a million to over 3.4 million, the number of foreign tourists has risen from 7,000 in 2001 to 13,000 at present. The national park is listed as a world heritage site. The fact

that today thousands of tourists visit Kaziranga is an indication of the park’s popularity. Besides, the tourist influx has created new employment opportunities and helped the local people earn more money.

To conserve and protect Asiatic elephants, the park organizes an annual elephant festival, which is considered to be the biggest in the country. The festival draws hordes of domestic and international tourists who are enthralled by the elephants and cultural programmes that are performed here. The event is aimed at raising awareness about

eco-tourism and the elephant’s struggle for limited resources with man. The obejctive is to spread the message of peaceful co-existence between man and animal.

Sixty elephants and over 20 cultural troupes from the State participated in the festival organised by Forest, Environment and Tourism Department in association with Golaghat District Administration. Kaziranga has earned worldwide accolade and it has received several international wildlife awards for its exemplary conservation efforts. q

(Courtesy : The Sentinel)

North east diary


Trading in Power

ENErgy SECuriTy

ESPITE THE growth in power generation, it has remained as one of the major constraints in economic growth

as i t has not kept up to the expectations of our policy makers. No wonder, sustained energy deficit continue to have a negative impact on the country’s economic growth. That apart, existing power sector languishes with several problems including inefficiency of plants, poor transmission infrastructure, and transmission and distribution (T&D) losses. Lack of financial incentives for increased production, in the form of open market prices based on demand and supply had been the major constraint in their growth. During 2007-08, T&D losses stood at 30,043 MW, while the plant load factor or PLF (the ratio of power generated by a plant compared with the maximum it could produce) of Indian power plants was around 79 percent.

D

The author is Chief Economist, Multi Commodity Exchange (MCx), Mumbai.

Futures trading in electricity can bridge

the nationwide supply-and-

demand mismatch by allowing

surplus areas to trade power

with all prospective

buyers

V Shunmugam

In sync with the country’s economic growth story arising from the opportunities that have followed the liberalization of the early 1990s and the ongoing globalization, India is opening up its power sector to meet its rising demand and reduce the deficit currently estimated at about 10 percent. Efforts are on to iron out the obsolete electricity laws. And the country, under the xI Plan (2007-12), hopes to provide electricity to all rural households. To meet the target, 78,577 MW is expected to be added by 2012 to the existing power generation capacity of 1,47,402.81 MW. The Electricity Act, 2003, a major step towards power sector reforms, has facilitated increased private investments. Open access, power trading along with return guarantee scheme for power-generation companies are the hallmarks of the act. The structural changes in the sector are expected to help evolve a competitive power market in India, and one positive outcome

OpENiNg


is already in sight: the electronic spot and futures exchanges, which are transparent and help in price discovery and risk management for electricity trade.

Here, we take a close look at the catalytic role that the electronic commodity futures market can play in the overall growth and development of the Indian power.

The Indian power and utilities sector has been one of the most investor-fr iendly regulatory regimes in Asia, with a regulated return on equity 15.5 percent (April 1, 2009) in the generation and transmission segment. But the capacity addition of 78,577 MW by 2012 still seems unachievable due to inadequate funding. India has missed power generation targets time and again due to several weaknesses including inadequate fuel links, lack of funding, etc. A major disincentive to funding remains the inadequate risk management on the pricing front. And this is where electricity futures could play a positive role.

To be successfully traded on futures exchanges, a commodity must fulfill three basic criteria: it is fungible (can be exchanged or substituted), its prices are volatile and there is a large, diverse set of buyers and sellers for the commodity. Electricity perfectly meets all these criteria and, hence, it is an ideal candidate for standardized futures trading.

The Central Electricity Act, 2003 paved the way for a large number of buyers and sellers system — a transformation from the earlier arrangement allowing only state electricity boards to buy power

from generators. The formation of regional transmission grids that connect various states, in addition to the introduction of open access in inter-state transmission, facilitated trading of power. And this bodes well for futures trading in electricity in India.

Futures trading in electricity can bridge the nationwide supply-and-demand mismatch by allowing surplus areas to trade power with all prospective buyers. It is expected to enable large industrial and electric distribution customers to purchase electricity at market-determined prices and offer high service reliability and create healthy competition by providing better returns to power generated and indicating the right value to each unit of power produced at any given time. And, it is expected that plant capacity utilization will increase and tariffs will be based on supply and demand fundamentals. The ultimate beneficiary will be the consumer —at no cost. Further, electricity futures would likely, indirectly, promote competition, efficiency and economic activities in the power sector, attracting investment, easing CERC’s role in policy making to enable the

above functions (Central Electricity Regulatory Commission).

In Ind i a , 65 pe rcen t o f electricity is produced from non-renewable sources of energy such as oil, gas and coal. Prices of these commodities being highly volatile input costs of power generators vary widely. Therefore, with a large portion of electricity being sold in the form of long-term sale agreements, power producers are exposed to high price risk while offering power at a given price. With the electronic spot market already put in place, electricity futures will help the producers go in for long-term price risk management by locking in their future prices in advance. Other actors in the ecosystem can also hedge their price risk by buying electricity futures contracts. So, electricity futures trade is a win-win proposition for the both the producers and buyers of power.

Again, the renewed opportunity provided by futures trading will encourage the producers to optimally utilize their production capacity, improving the availability of power while lowering the prices at the same time. Capacity

Capacity utilization of Indian plants over the yearsYear Central State Private Overall

2000-01 74 66 73 69 2001-02 74 67 75 70 2002-03 77 69 79 72 2003-04 79 68 81 73 2004-05 82 70 85 75 2005-06 82 67 85 74 2006-07 85 71 86 77 2007-08 87 72 91 79

Source: Ministry of Power


utilization of Indian power plants ranged between 69 percent and 79 percent from 2001-02 to 2007-08 (see table). In 2007-08, private sector plants, central government plants and state government plants operated at 91 percent, 87 percent and 72 percent of their capacity, respectively.

In most countries, electricity is being regulated by two separate regulators — one overseeing the spot market and the other futures trading. In northern Europe, the spot electricity market is regulated by Norwegian Water Resources and Energy Directorate and the futures market is regulated by Financial Supervisory Authority of Norway. Similarly, in the US, the spot electricity market is regulated by Federal Energy Regulatory Commission while the futures market is regulated by Commodity Futures Trading Commission.

It is widely believed by market experts that spot market regulation requires expertise that more relates to technicality of production and distribution of electricity, and in India we have CERC, well-equipped in this area. On the other hand, regulation of futures in power requires, among other things, an in-depth understanding of derivative markets and the availability of alternatives which are traded in the same market made it logical for Forward Markets Commission to allow trading in electricity futures contracts in India.

In India, there are deliberations in va r ious quar te r s on the poss ib i l i ty of two separa te regulators for electricity futures. But regulation of electricity futures

by two different regulators would certainly create confusion on the policy front, which may hinder the progress and development of the market.

In ternat iona l Regu la tory Experiences

Worldwide, the electricity markets that did not have a prospective market monitoring process in place have fared the worst. Of such cases, the United Kingdom market experience is the earliest and the New Zealand market the most recent, while the Californian market in the US remains the most popular case. Perhaps except the Australian electricity industry, in all countries in the world, the failure to integrate the market monitoring process with the regulatory process has been the primary reason why market participants could not realize the full benefits of existence of a market place.

Limitations of the uK electricity pool

In the UK, the electricity pool was formed in 1990 by a group of generation and distribution companies that together owned the National Grid Company (NGC) — the operator of the transmission network and wholesale market. The role and responsibilities of the pool were formalized by all electricity companies as signatory to a joint contract called the Pooling and Settlement Agreement (PSA). The Pool was governed by its members, with limited supervision by the regulatory body—the Office of Electricity Regulation (OFFER)—

or any other independent market monitoring entity.

In case of a market design defect coming to light, a very lengthy procedure was followed for rectifying it, and the Pool was never particularly successful in dealing with these issues. Inefficient market rules continued until the Pool was replaced by the New Trading Arrangements (NETA), which took effect in March 2001. The NETA market put in place the Office of Gas and Electricity Markets (Ofgem), the new combined gas and electricity regulator as a prospective market monitor with an enhanced ability to intervene to correct market design flaws.

California — looking forward, after the crisis

As discussed in detail by various academic researchers, a major reason behind the California crisis was the reluctance of FERC and the California Public Utilities Commission to intervene and fix market design flaws identified by the Market Surveillance Committee (MSC) of the California Independent System Operator (CAISO). The lack of incentives for the major California load-serving entities (LSEs) to get into sufficient forward contracts for their retail energy obligations and the potential peril arising out of over-reliance on the spot market for their wholesale energy purchases were identified in the August 1998 MSC report to FERC as reported by various researchers.

This report also observed the need to face end-consumers,


particularly large industrial and commercial customers, with hourly wholesale price signals rather than a retail price for all hours of the year. Despite repeated warnings (in subsequent MSC reports to FERC) along with a number of suggested remedies, few necessary changes were implemented in the wholesale and retail market policies.

The Office of Market Oversight and Investigation (OMOI) at FERC, which came into being in early 2002, has three major functions — oversight/assessment, investigation/enforcement and planning/outreach. FERC has also made a conscious policy change to be more forward-looking in its market oversight efforts by adopting policies designed to identify and address market design flaws before they can impose significant harm to market efficiency and system reliability.

The positive changes

A positive outcome of the California electricity crisis is that a market monitoring process is currently being put in place throughout the US. The Australian market provides an instructive e x a m p l e o f t h e n e c e s s a r y foundation for a very effective market monitoring process: rapid public disclosure of all relevant market data and availability of entities with the time, expertise and legal mandate to prepare reports on market performance using this data. Besides, it became clear that an analysis with the best possible data and making this information available to the

relevant regulatory authority are necessary conditions for effective market monitoring.

F u r t h e r , i n t e r n a t i o n a l experiences show that market moni tor ing i s a process of continuous improvement — markets around the world are required to modify monitoring protocols in response to events or changes typical to them. While what happened in the US and New Zealand triggered enormous changes in their market monitoring process, other countries too have enforced or are considering changes in their market monitoring processes to respond to issues in their wholesale markets.

Indian Regulatory Experience

As per, Sub-section (ii), of the Gazette of India Extraordinary part II, electricity was declared as a commodity so it was but natural for electricity to be traded in the commodity exchanges. The Forward Market Commission that regulates the country’s commodity became the natural corollary to regulate the futures market, that started trading about few months ago. It may be mentioned here that spot exchanges for agricultural commodities in India is regulated by Agriculture Produce Market C o m m i t t e e ( A P M C ) a n d agricultural futures are regulated by FMC. This makes the case that the spot market and the futures market could be regulated by separate entities.

From the above discussion it is quite evident that electricity futures trading, through price transparency and price risk management, would

go a long way in catalyzing the development of the power sector, especially creating an environment conducive to attracting increasing investment in the sector. It would help in creation of efficient ecosystem through its transparency and the risk management opportunity that exists in futures would help in spreading the risks in the power ecosystem of wide user ecosystem that exists in the derivative markets.

Problems in the global electricity market surfaced not due to futures trading but because of ineffective oversight of the producers and distributors of electricity. India should keep in mind the lessons that the international experiences have thrown up — how the failed market monitoring processes worldwide have been transformed into healthy regulatory framework over the years in response to events that took place from time to time.

Internationally, as we have seen above, electricity futures are governed by financial regulators and spot markets by physical market regulators . Working together CERC and FMC would no doubt create a healthy futures market place that not only provides forward signals to prospective investors in the sector and make the market more stable through consistent flow of information and active regulation of both the spot markets and the futures markets. It is no wonder why the Economic Survey for the year 2003 had talked about introduction of a type of forward markets in electricity five years ago. q



B K Saha

Renewable Energy : Can it Bridge the Gap?

ENErgy SECuriTy

HAT INDIA is an energy deficit country there can be no two opinions. Our per capita coal reserves are much below Russia,

the USA and China. On top of this, they are of extremely poor quality with a very high ash content (35-40%) rendering them useful only for pithead power stations (transporting high ash coal is uneconomical). Our oil and natural gas reserves are inadequate for meeting our needs. Technology has been brought to a stage where we can build our own natural uranium based pressurized heavy water reactors (PHWRs), but we do not have enough uranium to produce even 20,000 MWe for the full life of the reactors. We have at present an installed capacity of about 4000 MWe and the plants are being operated at less than 50% PLF due to shortage of fuel. Given the high capital cost (currently estimated at Rs. 10 to 12 crores per MWe) involved, consider the waste of capital invested in these

T plants. Though we have a fairly high potential for hydropower, environmental and other factors, like loss of habitat, do not permit us to exploit this to its full.

The energy deficit has been compounded by the fact that our five year plans have never delivered in terms of achieving the targets set for installing new power generating capacity. The 10th Plan target was to generate 41,110 MW Power, (not including renewable sources) but achieved only 27,283 MW. Global warming and energy shortages have become more worrysome ever since China and India have been registering high economic growth.

A disturbing aspect is the repeated comparison of India’s per cap i ta consumpt ion of energy with the world average, the industrialized nations and China. Such comparisons are quite irrelevant. We need to evolve our own standards of desirable levels of energy consumption

ChAllENgES

The author has retired from the Indian Administrative Service.

Research in tapping renewable

sources should be intensified

to improve both technical efficiency

and financial viability


This vacuum has given rise to a series of interests claiming that renewable and/or non-conventional energy can go a long way to bridge the gap. It is further claimed that unlike fossil fuels renewable sources are environmentally benign, inexhaustible and cost effective. What is surprising is that all these claims go uncontested. No figures of the true cost are revealed nor do the protagonists provide details to prove that the devices are environmentally benign. What is often shown in pictures and the accompanying write-ups is only the visible end. Recently, there was an interesting news item about farmers in USA strongly objecting to installation of windmills for power generation because of the unbearable noise they made.

Merits of Some Renewable Energy Sources

To be able to fill the gap it is assumed that the device must be both technologically feasible and economically viable.

Solar energy, for obvious reasons, appears to be the natural choice. It is claimed that since India is lucky to have plenty of sunshine we should tap this abundant and inexhaustible (is it?) source of clean energy. Let’s face the facts. A solar photovoltaic device produces electricity on a bright sunny day only between 9.00 a.m. and 3.00 p.m. Why not store it? Well, storage pushes up the cost considerably. Even without storage the cost is prohibitively high as shown below:

1. Capital Rs. 200 cost per to MW 220 million

2. Plant load factor (approx.) 17%

3. Annual 0.5% of maintenance capital cost cost per MW

4. Output per 1.5 million MW per annum units

5. Life of module 20 years

6. Cost per KwH Rs. 16.10p*

*Source : Ministry of New & Renewable Energy (MNRE).The cost per unit has been arrived at by the author by assuming that depreciation is 5% p.a. and interest at 12% p.a. on depreciated value. The capital cost per KwH per year is about 25 times that for thermal power.

A recent media report stated that the Government of West Bengal would buy solar power at Rs. 15 per unit from a private producer.

The neat and clean arrays producing the power give a misleading impression of eco-friendliness. It is forgotten that wherever the arrays are installed nothing can grow on the ground below it because it cuts off sunlight. If agricultural land were to be used it would no longer be fit for cultivation. Except for desert areas and rooftops of buildings solar cells cannot be installed on a large scale. Besides, it has never been brought out that a considerable amount of energy is used to produce the solar cells and only about 20% of this is recovered during the useful life of a cell (20 years), that is, the rate of return is 1% per year in terms of energy. Where does the remaining 80% of the energy that went into making it come from? Obviously, it is from the “conventional” or non-renewable sources. In, short, far from adding to net energy output

an SPV device is a net consumer of energy!

D u e t o t h e l a w s o f thermodynamics it would not be efficient to produce steam from solar energy through concentrators to generate power. It would need acres of land for a modest output since solar energy is very thinly spread.

Are there then no cost effective means to use solar energy in a tropical country like ours? Yes, there are ways, but these would be confined mainly to rural areas. Direct use of solar thermal energy could go a long way to ameliorate the energy situation in rural areas, particularly domestic cooking energy and to some extent for space heating in colder areas. Solar cookers can save a lot of fuelwood and hence the environment. They are cheap (even without subsidies which in any case have mainly benefitted the manufacturers), easy to use and cost effective. They are particularly useful where rice is the staple diet. The main ingredients like dal, rice and vegetables for the midday meal can be cooked by midday and the evening meal in the afternoon and kept in the cooker until mealtime to keep it hot. This has to be supplemented by the installation of improved chulhas which consume, if properly used, about 1/3rd to 1/4th the amount of firewood otherwise used to cook a meal. The village wastelands should be used to grow fuelwood varieties like prosopis juliflora which are hardy and slow burning and hence ideal as kitchen fuel. For a number of reasons wastelands should not be handed over to corporates to produce jatropha.

In urban areas there is a fairly large demand for hot water both


for domestic and industrial use. Rooftop solar water heaters are again quite cost effective. The main problem is that one gets more hot water or hotter water in summer than in winter! Besides, one needs hot water for a shower in the morning and hence the previous day’s output has to be stored in insulated tanks.

Another renewable source which is gaining support is wind energy. Some basic facts on wind generators are given below**.

1. Capital Rs. 55 to Expenditure Rs. 60 million per MW

2. Plant Load 20% (1.75 Factor (PLF) million KwH/MW/ year)

3. Maintenance 1.5% of cost per annum capital cost (Rs. 0.9 million)

4. Cost per unit Rs. 2.75 to (varies with Rs. 3.50 location)

5. Economic life 20 years of a wind turbine

** Source : Ministry of New & Renewable Energy (MNRE). The computation of the cost per unit is not clear. Assuming that depreciation is 5% p.a. and interest at 12% p.a. on depreciated value, the cost comes to Rs. 4.30 per unit without allowing for profit.

It may be noted that the capital cost is about 20% higher than for thermal power (Rs. 45 to Rs. 50 million per MW) but the PLF is one-fourth. Thus, the capital cost per unit (KwH) per annum is five times. Besides, power from a wind generator is not available on demand. Though it appears

to be eco-friendly there are no studies on the effects of reduced wind speeds in the wake of the windmills on the climate of a place in the vicinity (e.g., does it affect rainfall during the monsoons?).

These devices are, perhaps, the most talked about and promoted by those who have an interest in them, whatever may be the nature of their interest. Yet, they are expensive sources of electricity.

The cost effectiveness and practicability of other renewable sources like run of the river hydro, ocean thermal energy, tidal & wave energy, geothermal energy, bio-mass and/or dendro-thermal energy (wood based), etc. is doubtful. In fact, if these sources of energy were viable then countries with high carbon emissions would have gone in for them in a big way. Besides the high capital cost of the devices using these sources of primary (low grade) energy, there is a further disadvantage and that is the low average PLF of about 20%.

There is also a question mark over biomass and dendro-thermal energy (based on energy plantations) for generating power. Firstly, they have been proved to be unsustainable (a large project was started in the Philippines in the late 1980s and did not succeed). Burning municipal waste is not feasible because our waste has very little combustible material (it was unsuccessfully tried out in Timarpur in Delhi in the late eighties). Secondly, the smoke and other emissions from burning biomass is unacceptable environmentally (recently, the brown smoke hanging over Delhi was attributed to burning biomass) as they can cause respiratory problems. One of the best programmes (in the opinion of the author, based on field visits and research reports) taken

up by the MNRE was the improved chulha programme. Several studies established that they definitely reduced consumption of fuelwood (though the actual figures varied widely). A study in Himachal Pradesh established that only one-fourth the amount of fuelwood was consumed compared to the traditional chulhas for cooking a standard meal by the same housewife. Given the pressure on our green cover this programme should have been pursued for 100% coverage but it seems that it has been “transferred” to the states by the MNRE. Knowing what fate such a programme would meet if transferred to the states, it does not seem to have been a wise decision.

To sum up, research in tapping renewable sources should be intensified to improve both technical efficiency and financial viability. Only when they cross a certain threshold in these parameters should they be commercialized. Those concerned should be forthcoming in providing full information and not mislead the public. Renewable energy is not inexhaustible since only that much is available in given time and space. Besides, it is so thinly spread that it is costly to harness it. The ultimate potential estimated by the MNRE is 84,776 MW of which 11,272 MW has been achieved so far. At an average of 20% PLF it translates into about 21,194 MW and 2,818 MW, respectively, of thermal (80% PLF) capacity. The Working Group on Power has recommended a target of 283,398 MW to be created by 2017 AD, not including renewable energy. In other words, even on achieving the full potential they would contribute only 7.5% of the needed capacity in 2017 AD. q



YE-

4/09

/4


Grassroots Innovations for Achieving Energy Security

ShOdh yATrA

Y O T H I H A D n o a p p a r e n t n e e d t o conserve so much energy. She lived in a small village of Arku

valley near Vishakhapatnam, Andhra Pradesh with lot of trees all around. Collecting fuel wood involved drudgery but then it was available abundantly. Yet, she seemed to have a different perspective on the problem. She had been exposed to ideas about conserving energy and had an irate desire to be economical and efficient in using energy. This desire had led her to develop a three-tier system of harnessing energy. The three mouthed chulha was the primary source of heat energy on which she cooked food. The heat and smoke released from there was trapped in shelf of bamboo splints placed about two feet above the chulha. She kept paddy panicles with straw for drying on this shelf. She knew that it was easier to thrash paddy when it was pre-heated in such a manner. But then some heat was still left in the smoke.

J The third tier was a bag of seeds hung above the shelf, which was smoked and slightly heated and thus keeping the seeds pest free till next year. The three-tier system of harnessing energy from fuel wood was a sustainable way of getting most from the wood. This concern grew out of an innate desire to be economical and also efficient.

Silencer Cum Pollution Control Device

Champaran is famous because the call for complete freedom was given by Gandhiji here after he saw the sufferings of indigo farmers. Virendra Kumar Sinha a resident of Champaran had an iron grill making workshop, just opposite his workshop, there was a school where children were disturbed by the noise and smoke of the diesel engine generator he used to run for making various things in his workshop. He was unhappy because neither could he stop his daily routine of using the engine, which polluted the environment, and created lot of noise, nor could

The three-tier system of harnessing energy

from fuel wood was a sustainable

way of getting most from the wood. This concern grew out of an innate desire to be economical and

also efficient

Hydro Electric Turbine


the children go away, or the school be shifted. Instead of adjusting with this problem, which is what most of us usually would do, this grassroots innovator invented a silencer cum pollution control device. This device would capture about 12-14 kg carbon from the smoke over 8-10 months and make it odour and colourless, much safer for the environment. Yet again, energy was harnessed for a noble social cause.

Harnessing energy from flowing waste water

Balakrishna, on the outskirts of Bengaluru was observing the waste water of the village flowing every day into the drain. He did not see it as just a flow, he saw the energy in the low velocity flow and dreamt of harnessing it for generating power. Meeting one need of his led to another innovation. A chance came his way when Balakrishna, son of a bonded laborer, decided to find a new way of extracting more value from the coarse construction sand he supplied to building contractors He devised a mechanical system for grading and sieving, with a terrace system for sand sedimentation. Assessing the potential of the device, he further modified it into a system for generating energy from slow moving sewage water or

any other source of flowing water. In this arrangement, electricity is generated when the slow moving sewage/water is passed through a cylindrical drum. The helical blades inside the drum rotate it and generate power. This technology can have a tremendous impact on the generation of power from low velocity, high volume discharge of effluents from industries and civil sewage processing plants without any additional civil construction.

Reciprocating hydraulic prime mover for water lifting

The idea of utilizing the energy in streams and brooks came to Noushad’s mind too in Malappuram, Kerala, after he attended a science fair while in school. There he saw a model showing the rain water just draining off into the sea through streams.. Ever since, he thought of utilizing this free energy, which was simply being wasted. He worked upon this and came up with a reciprocating hydraulic prime mover for water lifting. A dam is made in any small stream or brook. When the water level in the tank reaches a certain height, water enters the float through four valves, which open when two wheels at the back of the float strike against certain iron sheets attached

for this purpose. Filled with water the float sinks. Once it reaches the bottom, due to the force of gravity and atmospheric pressure a siphonic valve at the bottom of the float opens and water in the float is pushed out of the float and the tank through a pipe and the float rises up again. The whole process is repeated. The force produced by this up and down motion can be used for lifting water to a certain height. This device works automatically as long as water level is maintained through flow of stream or river in the dam.

Modified hydro electricity turbine

Electricity supply in the hills is always a problem with either difficulty in access or cost of infrastructure or even frequent disruptions in distribution. Ratnakar, from Chikamagalur, Karnataka, has made a hydro electric turbine, which is specifically designed for the streams in the hilly terrains. It meets the individual electric power needs of a rural household and many of these turbines have been installed in the hilly villages of Dakshina Kannada, Kadagu, Hassan and Chikmagalur districts. The innovation is so popular in the local area that people refer to the innovator popularly as ‘Turbo’ Ratnakar, after his innovation.

Hydro generator using bamboo composite

Imli Toshi of Nagaland, has devised a small power generating turbine for hilly areas after observing small Chinese made hydro turbines in his native Nagaland. He had seen that though Energy Generation System


the Chinese made turbines were working effectively yet after a few months, breakages of parts used to occur. Because of the unavailability of spare parts, such turbines had to be often scrapped. Looking at this opportunity Imli used bamboo powder; a by-product from his innovated bamboo lathe machine, and mixed it with a resin to create a strong composite to fabricate a lightweight hydro turbine for generation of energy.

Fuel Efficient Kerosene stoves

Existing kerosene stoves work through pressure generated by pumping or by keeping the fuel tank at a higher level than the stove. However there are stray accidents caused sometimes due to explosion as a result of pressure built up. There is also a lot of pollution due to smoke, sound and odor. Niranjan Prasad Sharma of Uttar Pradesh and Sarfuddin Amanuddin Kazi of Maharashtra have independently come up with stoves wherein pre-heated kerosene in gaseous state is fed into the burner. Sameerul Hasan Liaquati of Uttar Pradesh has come up with one that eliminates the need to pump air. S. J. Joe’s stove

has a water jacket to tap heat lost on the side for heating water and Mathew V. Mathew’s stove consist of a burner with gravity feed tank and cylindrical wick for reducing fuel consumption. All these stoves have one or two key principles influencing the higher energy efficiency: either heat the fuel, or air which mixes with the fuel or both and the thermal efficiency of the stove goes up.

Apart f rom these s toves, Davalsab Mahamadgows, a 16 year old student from Dharwad, Karnataka has come up with an auto stopper, which senses the whistles of a pressure cooker and at preset numbers, gives an alarm and turns off the knob of the gas-stove. This machine is thus able to count and display the number of whistles a pressure cooker has made. Many women alone at home, when busy elsewhere, are not able to switch off the gas quickly even after the whistles indicate that the cooking was over. Not only food gets over cooked, energy also goes waste. With this innovation of Davalsab, which no manufacturer of pressure cooker could think about in the world,

such wastage of heat need not take place any more.

Solar mosquito destroyer

Mathew K Mathew from Kottayam in Kerala, was interested in developing an environment friendly mosquito destroyer since his childhood. Soon after completing his studies he started working on his dream. It took him more than a decade to come up with the solar mosquito trapper cum destroyer. This device makes use of the smell from the septic tank to attract the mosquitoes. Once the mosquitoes get trapped inside the device, the heat built up inside the device, as a result of direct sunlight exposure, kills them. Why used non renewable energy based pesticides (which also may have adverse effect on the environment and the workers who spray these) when solar energy can come to rescue, at least for this purpose.

Electronically controlled tyre rethreading machine

Augustine from Thrissur in Kerala, has made his small contribution in environmental protection by eliminating the burning of firewood in boilers for tyre rethreading. The tyres rethreaded in his machine have increased life span of about 30 - 40 per cent as compared with tyres rethreaded with steam boilers. The machine is equipped with digital thermostat control with digital timer to maintain the constant temperature through the process for balanced curing. The asbestos sheet is provided in between the machine to avoid heat loss. It takes about five minutes to process one tyre, whereas, conventional method takes roughly 20 minutes. q

(Email : [email protected]/www.nifindia.org)

Fuel Efficient Stoves



bOOk rEViEw

TITLE : PLANNING AT GRASSROOTS: GOVERNMENT PARTICIPATION IN PEOPLE’S PLAN: AN

Author : G.Palanithurai; M.A.Thirunavukarasu & G.umaPages : 396Price : Rs. 950/-

Publisher : Concept Publishing Company, New Delhi—110 059

LTHOUGH INDIA is committed to planned economic development since Independence and to the ideals of transfer of funds, functions

and functionaries to the grassroots level through the 73rd and 74th amendments to the Constitution, the ground reality is far removed. But as the authors from the renowned Gandhigram Rural Institute, Madurai, Tamil Nadu proclaim the reality of planning at Central, State and Panchyati level remain in practice only in the Centre and in the States with panchayats still groping in the dark as to meet their developmental objectives and giving content to the basic needs of the people at the grassroots level. It is small wonder that the authors are compelled to state that virtually “planning at multi-level exists only in concept and theory but not in practice”.

The book under review aptly asserts that there is no concerted bid to build up the process of planning from below and as a sequel the rural development activities in the country are carried out still in the supply-driven mode and people are not involved in the development activities What is more disconcerting is that the felt needs of the people projected through the Gram Sabha are not

A met, though a plethora of activities and projects are being executed through sectoral departments in the name of enlivening the lives of the legions of rural poor across the length and breadth of the country both by the Central and State government initiated so-called rural development programmes.

In a move to break the logjam, an exercise was made with the intervention of the Hunger Project by which select Gram Panchyats in the districts of Tamil Nadu such as Sivagangai, Puddukkotai, Tuticorin, Dindigul and Nagapattinam were set up as model Panchayats in terms of planning at micro-level with the participation of the people. The authors say the selectivity of the five districts stemmed from the desire of the leaders of these Panchyatas who showed interest in this exercise and volunteered themselves while they were undergoing training. These Presidents are also supported by the respective District Collectors who have assured that they would extend all possible help and coordination in this exercise.

An integrated analysis of the experiments made by the authors, which were discussed, threadbare in a workshop so as to sensitize the officials and the departments yield quite interesting insights into the

Development Planning


nature and gravity of the ground level reality. It was revealed that beyond the Central and State government levels producing documents on decentralized planning, nothing has been done in the Ninth and Tenth Five-Year Plans in the country. The workshop and the participants’ convictions have together convinced the Minister and the higher officials to the beneficial implications and immense importance of micro-level planning.

The authors observe that while carrying out this interface, the level of devolution of powers in the State has also come to the fore as the Panchayats faced problems in getting the support of the sectoral departments. Secondly, in the process of interface with officials, their attitude to this news dispensation has also been determined as most of them remained reluctant to accept the people-centric programme but still insist on carrying on with what they could fashion as development programmes to the people!

Thirdly, social development issues came to the surface mainly because of the micro plans of the Gram Panchyaats. The Gram Panchayat leaders gained this insight while they were in self-help groups and thereby they quickly grasped the social development issues and fixed achievable indicators for the Panchayats. More importantly, by undertaking the planning exercise by the people, people’s demands and priorities have been prominently projected in the plan document. Thus the old position “we govern you participate” has virtually given way to “you govern and you participate”.

In what could be a momentous development, class, caste and affiliations to political organizations apart, the hidden potential of the leadership has been displayed through this process, particularly

from women and backward class people who now have become “owners of the programmes” they implement for their welfare and the welfare of their own communities—not in the negative sense of the term but connoting the whole lot of people in a particular place for whom the micro-level planning is made and implemented. As the authors quip, even in Gram Sabha meeting, Panchayat Presidents used to dominate the whole proceedings. But in the micro-planning exercise, the voice of voiceless is being heard and this heralds an inclusive development approach over the long haul, if this could be replicated in the rest of the country and in every panchayati body.

The authors deserve applause for having laboured the point that development at the micro or nano level could be feasible despite obdurate opposition from entrenched elements including politicians. No wonder, they affirm with outspoken clarity that planning at the grassroots for administering development and social justice has long-range implications in the paradigm of development. A singular merit of the micro-level planning is that social development issues have drawn the attention of the people because of this exercise and achievable indicators have been fixed for these issues with people immersing themselves seriously in bringing about the desirable developmental goals to ameliorate their lot. Now the moot question is the government, particularly at the State level, finds itself in a tight spot as to whether this is to be allowed or not. But as the authors audaciously say there is no other option but to allow and continue the new practice. They even contend that the entire State must perforce take the lead to plan for development from the Gram Panchayat to the District Planning Committee.

A salutary feature is that the old practice of the government providing and the people reciving has been reversed. This has also goaded the State Planning Board in Tamil Nadu to prepare a development report in about 250 Gram Panchayats as a pilot project. Considering the fact that beneficiary selection is a major hurdle in every village for all developmental works being undertaken by the authorities, the authors have said the micro-level planning would reverse this. Because people have started searching for resources for funding the activities that would best promote their immediate needs for a decent life and also enable them to crawl on the development ladder that had bypassed them. Till today, people have to put their demands to the government and government is spending Rs 3 crore on an average on every Gram Panchayats in a period of five years. It is a sad commentary that except in West Bengal and Kerala, micro-level planning has been undertaken at the urging of the development organization and not at the initiative of the State or district level bodies.

In this context the Hunger Project set off the process of planning at Gram Pnachyat level as Gram Sabha has got power to approve the plan document. Two of the three authors in the present tome are part of the Hunger Project, while Prof.G. Palannithurai heads the Department of Political Science and Development Administration, Gandhirgram Rural University. The authors deserve unqualified praise for having highlighted the hiatus in development planning and put the focus on micro-level planning as a surefire remedy to the many maladies afflicting the poorest of the poor in India today. q

G.Srinivasan (E-mail : [email protected])

Documents

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