Energy and Environment

Energy lies at the core of all economic activity and controls a country's rate of growth and development; the type and volume of our energy usage determines our environment. India is poised to become the fastest growing global economy in 2010, as per World Bank estimates, which project an 8 percent growth-rate for the country, ahead of China's projected 7.7 percent for the same period. However, India needs to strike a balance between its twin objectives of inclusive growth and sustainable development. A sustainable developmental path (with augmented focus on efficient and clean technologies) would entail an estimated additional investment of around 1.8 percent to 2.3 percent of the national GDP in 2010-2030.

Importance to the Indian Scenario

A McKinsey report released in August 2009 provides a projection of the Indian economy by 2030: real per capita GDP will climb to US$2700 (five times the 2005 level), cities will host around half a billion people, demand for power will rise to 3870 TWh (from 700 TWh in 2005), and automobiles will number around 380 million (an estimated 7 percent growth compared to 2005). India's gross energy demand will shoot up to 1.8 btoe per year (from 0.5 btoe in 2005) [making it the third biggest global energy consumer, after the US and China]. Hike in energy consumption and matching fossil fuel supply would push-up India's GHG emissions between 5.0 to 6.5 billion tonnes of carbon dioxide equivalent, on an estimated GDP growth of 6 percent to 9 percent. The power sector is slated to become the biggest emitter, accounting for an estimated 2.9 billion tonnes of carbon dioxide equivalent, by 2030.
India's market in low carbon and environmental goods and services is worth about US$270.98 billion (which translates to a 6 percent share of the global market, valued at US$4.32 trillion). Sustainable energy investment in India climbed to US$ 3.7 billion in 2008, a 12 percent hike compared to 2007 figures. India's National Action Plan on Climate Change (announced in June, 2008) focuses on promotion of renewable energy, energy efficiency via market based mechanisms (like energy savings certifications), recycling, overhauling of public transport, energy conservation, and creation and maintenance of forests, as effective 'carbon sinks'.
Government of India's Energy Conservation Act 2001, highlights the need for energy conservation and audit and identifies 14 energy intensive industries such as Aluminium, Fertilizers, Iron and Steel, Cement, Pulp and paper, Chlor Akali, Sugar, Textile, Chemicals, Railways, Port Trust, Transport Sector, Petrochemicals, Gas and Naphtha Crackers, Petroleum Refineries, Thermal and Hydel power stations, Electricity transmission and distribution companies and Commercial establishments.
Budgetary allocation under 'Accelerated Power Development and Reform Programme' has risen by 160 percent to Rs 2080 crore in 2009-10, from that in 2008-09.