Energy and Power
3 Good Things
  • Coal mine allocation through competitive e-bidding which will boost domestic production and power ge
  • Support for gas based power capacity through government procurement and supply of imported RLNG.
  • Enhancing solar power project capacity addition target from 20 GW to 100 GW by 2022.
3 Bad Things
  • Nil
  • Nil
  • Nil

Future Planning
Removal of the transmission corridor bottlenecks for flow of surplus power to deficit regions and establishment of Green power corridor.

-Co-ordination with state governments for implementation of Ultra mega solar power projects and decentralized solar power projects.

-Facilitating framework for indigenous renewable energy manufacturing and export.

-Creation of Green Bank for providing soft loans to renewable energy generation projects.

-Restoring the financial health of the State Electricity utilities.

-Enactment of Law for development of renewable energy as well was approval to amendments to Electricity Act, 2003.
Expert Comment
G M Pillai
Director General, World Institute of Sustainable E
Coal mining allocation through competitive e-bidding will boost domestic coal production and reduce dependence on imported coal, which exposes India to risks of volatile prices, foreign exchange rate risks. Government initiative for procurement and distribution of
natural gas will help commission about 9000 MW of gas based capacity lying idle. Enhancing the solar capacity addition target from 20 GW to 100 GW by 2022 and restoration of fiscal support to wind power projects would help in meeting and perhaps exceed the NAPCC target of 15 % renewable energy by 2020. While the decision to give priority sector lending status to renewables is a major step, there is a need to further streamline the financing to
renewables by engaging with the banking sector. Interest subsidy mechanisms and risk guarantee measures should be introduced. Creation of a Green Bank (by converting IREDA) would be another major step. The enhanced renewable power capacities will help a smooth transition to a clean energy economy. Priority sector lending status to RE projects would ensure easy access to finance for such projects. Increase in clean energy cess on coal to Rs 200 per tonne will add around 103000 crores to the National Clean Energy Fund during the 12th and 13th plan periods. Substantial portion of this fund could be made available for development of renewable energy. Establishment of green corridor for RE power evacuation will ensure inter-state flow of renewable energy thereby facilitating market expansion. The Renewable Energy law proposed to be enacted would provide the comprehensive policy and legal framework, much needed for the accelerated growth of the sector. The critical issue to succeed in the power sector is to restore the financial health of all state electricity utilities. Hence constant coordination with state governments would be essential. India has the potential to emerge as a major manufacturing base for renewable power devices. A focus on manufacturing will book