Journal of Regional Development and Planning, Vol. 1, No.

1, 2012


Energy has a significant influence on the process of development in modern times. Accessibility to affordable and reliable energy is a must for production process and is indispensible for maintaining the growth momentum of an economy. The present paper focuses on the current and future energy demand scenario with special reference to India. Focusing on the importance of energy for development, the paper starts with a discussion on global energy outlook with special reference to Asia and two of its fastest emerging nations; India & China. Starting from a macro point of view with the analysis of demand for energy across different regions of the world, the paper has made a micro level discussion on energy imperatives for the Indian economy and also the impact of energy situation on regional development. Sectoral energy scenario has been discussed in detail so as to give some insights to the policymakers for future.

INTRODUCTION Energy acts as a crucial ingredient for the development of an economy. Accessibility to affordable and reliable energy services is the essential ingredient of economic development. Modern energy services are mainly provided by liquid fuels, gaseous fuels and electricity. These are very essential in developing infrastructure along with maintaining growth momentum of an economy so as to ensure development defines as growth along with some structural changes. With increase in economic activity the demand for energy increases or in other words, there is a direct proportional relationship between demand for energy and economic activity leading to the growth of an economy. However, Pattern of energy usage changes with stages of development. Starting from the initial days of the society, energy used to come from biological sources like wood. In the next stage the emergence of processed bio fuel, commercial fossil energy and animal power has played an important role in developing the economy. Now a day, being in the most advanced stage of socio economic development, the energy usage pattern has been shifted to electricity, indicating increasing dependence on energy to ensure growth as well as development of a country. Traditionally, the economists recognize land, labour and capital as the only factors of production. Emergence of the concept of industrial development has recognized energy as the fourth factor of production. Industrialization and economic development of a nation requires substantial flow of energy at an affordable cost. Hence, Energy is a kind of pre requisite for development of a nation. This seems to be more prominent for developing and underdeveloped economies. Per capita usage of energy in such economies is very low as compared to that of developed economies, representative of the fact that the productivity comes in lieu of energy consumption and high productivity is the basic indicator of a country’s progress. Developing or emerging economies in the world basically faces three kind of problems – First is to meet the need of millions of people who still lacks basic energy service i.e. electricity, Second is to meet the growing energy demand to facilitate economic growth in terms of rapid industrialization and infrastructural development and the third one is the high level of emission from developing countries resulting in

Delhi based Consultant. Views expressed are personal of the author. Correspondence:

Among the studies to reinvestigation the long run co-movement and the causal relationship between energy consumption and real GDP. energy demand has been growing rapidly due to the rapid growth of developing nations. we provide a background on world energy outlook in the first part of the paper. energy consumption in these countries is projected to grow at an average annual rate of 3 per cent from 2004 to 2020. The world demand for energy is expected to reach 16.9 Billion Ton of Oil Equivalent (BTOE). In industrialized countries where the economies are already mature and the economy has already reached in the 3rd stage of demographic transition with low population growth rate. In this paper we explore the energy imperatives for India in the coming years. Crompton and Wu (2004). While that for Asia is expected to reach at 7. Lee and Chang (2006). Studies discussing the regional development of energy demand across states of India are sparse and the present author did not come across any study in this aspect of Indian context.5 fold increase from 11. GLOBAL AND ASIAN ENERGY OUTLOOK In Asia. BRIEF REVIEW OF CURRENT LITERATURE The interlikage between energy and regional economic growth is well established. and identify the areas that requires focus to ensure energy security and energy stability.5 per cent. High demand for energy from the developing countries is basically an indicator of the “take off” stage of Rostow’s theory of stages of growth. To 2035. the primary energy demand in the world is expected to grow at an average annual growth rate of 1. Asia would account for about sixty per cent of the world’s increased energy demand by 2035. Development to be sustainable the emission level is also to be kept in mind. However. The third point is significant in the context of sustainable development. The present paper aims to fill this gap in existing literature.5 per cent while that for Asia is expected to be 2. poor health of the people caused by environmental pollution will ultimately slowdown the economic growth as health is not only the absence of sickness. In addition. taking off an economy from a situation of under or un development to rapid industrialization and socio-economic development. reflecting sharp economic growth across developing countries in the continent. both from the macro and the regional perspective.5 btoe 2007.6 per cent during 1980 to 2007. the study by Paul and Bhattacharya (2004) tried to examine the causality relation between energy consumption and economic growth in India. a 1. Notable among them are Miranda-da-Cruz (2007).52 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING environmental problems leading to health hazard among people. In Indian context. as a developing nation.1 btoe in 2007. Zachariadins (2007). regional disparity in availability of energy is also discussed with the conceptualization of growth-energy interlinkage. good health enhances better productivity among adults and enables child to acquire skills to be utilized in future. In context of India. far above the world average of 2 per cent. Keeping this threefold challenges in mind the paper mainly focuses on the importance of energy in the development of an economy by way of an analytical discussion on growing energy demand across all countries of the world with special reference to India. the demand for energy is .1 btoe by 2035 from a figure of 3. the study by Lee (2005) is found to be significant one. Many studies on the relation between energy consumption and GDP growth has been done by researchers in international context. to discuss on all developing economies of the world together. The average annual growth rate of energy demand in Asia is recorded at 4.

productivity and providing access to global markets and trade.1 4 4.6 20 19 2. As production is the basis of all economic activities.7 7. India & China. warmth and lighting and also needs like education and health and thus it makes way for social development. Energy is required to continue production and also to achieve high production. Thinking development in a decentralized way by dividing the .2 7 170 146 66 70 91 Energy use kWh / Capita Growth 1990 2008 (%) 89021 87216 –2 40240 19422 8839 11281 7094 4419 40821 34774 18608 14421 7792 6280 1 79 111 28 10 42 The World 5265 6688 27 102. The growth rate of energy demand in developing countries of Asia is projected to be as high as 3. Table 1 Regional Energy Use & Growth across the globe Regions USA EU Middle East China Latin America Africa India Population (Million) Growth 1990 2008 (%) 250 305 22 473 132 1141 355 634 850 499 199 1333 462 984 1140 5 51 17 30 55 34 Energy Use (1000 TWh) Growth 1990 2008 (%) 22. The emerging nations of Asia are expected to double their energy consumption in next 20 years. accounting for 65 per cent of the total energy demand for all developing countries.6 10. It is better to state that energy is perquisite to economic development. conversion. 1. reflecting high growth in past two decades with commitment for future rapid growth as well. One of the major drivers of energy use is urbanization and related growth of industrialization. So.3 39 19422 21283 10 Source: Wikipedia. Table-1 discusses on to the growth of energy consumption across different zones of the world with special reference to the two emerging nations. No. Energy demand in developing world was projected to surpass that of industrialized developed economies by 2010.wikipedia. This is the reason why energy now well-considered as a separate sector of production.8 6. especially in India and China will be causing the will be demanding the maximum percentage of this increased energy demand. ENERGY AS CONSTRAINING FACTOR TO REGIONAL DEVELOPMENT Energy is one of the important inputs for production.3 26.7 7. accessed on of Regional Development and Planning. to achieve higher level of production. energy is now an essential input for each of the social and environmental dimensions of human development. Rapid economic growth in Asian economies.8 20. Vol. quantitative and quantitative enhancement of energy sources is certainly necessary. from http://en. It is quite significant that the growth rate for energy demand in Middle East countries comprised of India and China is highest among all others. Energy services helps to fulfill the basic human needs of nutrition.9 per cent only. This crucial input helps to achieve economic development by enhancing industrial growth. processing etc.7 per cent per year.4 6. 1. etc.5 3.9 24.3 142. we can say energy is an essential input for each of the economic development. 2012 53 expected to grow at an annual average rate of 0. no matter which sectors’ production is taken. expansion of transportation.

governance and equitable growth. higher is the volume of Gross Domestic Product. ENERGY SCENARIO IN INDIA There is now a growing awareness amongst the scientific community and the civil society on the need for a global energy future with distinct departure from past trends and patterns of energy usage. if the total energy demand would have been met. literacy. one strata being equivalent to a zone. This would serve the purpose of identifying energy as a constraining factor towards zonal development as it is always better to identify the backward area first and then identify the cases of backwardness. indicating high GDP is fuelled by high energy consumption.6 per cent increase in primary energy consumption. Uttar Pradesh. indicated by Net State Domestic Product (NSDP). By using the figures of actual and potential NSDP. thermal power plants being . resource is the basic pre requisite for growth. In which. One of the main reasons for this underdevelopment or lack of development is the lack of energy supply. So far the predominant route of energy value chain comprise of generation of steam to rotate turbine. the development of the countries across the world can be better represented in terms of zonal development. Punjab are among those states which are found to be having maximum loss. Considering the usage of electricity as one of the key energy inputs to the growth of an economy. Electricity The electricity sector in India is the fifth largest in the world in terms of installed generation capacity which was 190592. Energy plays the central role to reduce poverty and provides principal facilities in the area of health. will this region be able to sustain this growth or access energy as an input to their progress would be acting as a constraint. In recent days urbanization and industrialization in developing world. economy in aggregate. especially in the Middle East has reached an unprecedented level. Now the basic question is. Bihar.54 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING whole geographical area of the world in some strata as in stratified random sampling. rather it is energy service that creates value addition. it is quite clear from the econometric exercise that states with more energy usage is having high net state domestic product. There is thus a underlying relation between access to high quality energy services with human development and standard of living. Madhya Pradesh. As known to all of us. Maharashtra. The energy that is used for generation of power finds its application in various economic activities and house-hold uses. Because it can be significantly noted by looking at the historical data on volume of GDP and energy consumption for developed countries that higher is the energy consumed. increasing welfare thereby. And increased volume of production has benefited the economies with a trickledown effect towards creating more employment opportunity. generating income. from burning of fossil or nuclear fuels. Focusing of Indian Economy and her regional development. Inadequate and lack of equitably available energy services create hindrance for employment generation and acts as a constraint to education and health services. Economic growth drives the energy demand and consequently it has been observed that each 1 per cent increase in Gross Domestic Product (GDP) has given rise to 0. Table-2 shows the potential NSDP and accordingly loss of net state domestic product for that is used for any activity or process.55 MW as on February 2012. dividing world into several regions it is quite prominent that the Middle East and Africa are the two regions which were lagging behind in the last century. the tabulated analysis tries to reflect the potential growth of the states. However it is not the energy per.

9 Uttar Pradesh 316906 404360 87454 27.5 Kerala 159144 163059 3915 2. in contrast to the worldwide per capita annual average of 2600 kwh and 6200 kwh in European Union.0 Tamil Nadu 312948 333609 20661 6.1 Uttarakhand 40065 42866 2801 7. At the end of the year 2011.1 Arunachal Pradesh 4845 5948 1103 22.9 Meghalaya 7645 8930 1285 16. over 300 million of Indian citizens had no access to electricity which is a hard pointer to our country’s human development index. It was merely 96 kwh in rural area and 288 kwh in urban areas in 2009 for those who have access to electricity.50 per cent and 11.4 Goa 16590 16952 362 2.2 Orissa 97359 98200 841 0.6 Madhya Pradesh 139300 171985 32685 23. constitute of 55. 2012 55 the major contributors.3 Puducherry 7977 8559 582 7.9 Assam 60912 66551 5639 9.1 West Bengal 269454 277098 7644 2. This constitute about one third of country’s rural mass and 6 per cent of the urban population.9 Delhi 157817 159016 1199 0.5 Rajasthan 156952 160768 3816 2.66 per cent respectively.6 Gujarat 283930 297231 13301 4. State/Region Despite India being fifth largest country in the world in terms of installed capacity.8 Mizoram 3901 4768 867 22.3 Source: Author’s Calculation based on data from Handbook of Statistics on Indian Economy. Again the areas covered by electricity networks suffer from intermittent power cut and voltage fluctuation.38 per cent and that of nuclear and renewable are 2.8 Punjab 124116 144030 19914 16. Hydroelectricity power generation capacity comprises of 20. 1. No.7 Haryana 137201 143276 6075 4. per capita average annual domestic electricity is very low against the world average. RBI and Annual Report of Central Electricity Authority. Vol.3 Andhra Pradesh 304018 325577 21559 7. 1.32 per cent of the installed capacity.5 Tripura 11917 13215 1298 10.Journal of Regional Development and Planning.1 Chandigarh 12418 12808 390 3.5 Karnataka 219358 237667 18309 8.3 Jharkhand 70309 76291 5982 8.5 Maharashtra 634829 781316 146487 23.8 Chhattisgarh 63297 64888 1591 2. Table 2 Loss to Net State Domestic Product due to Power Shortage NSDP at Factor Cost (in ` cr) – 2009-10 Percentage loss to Actual NSDP Actual Potential Loss Jammu & Kashmir 30765 40884 10119 32.8 All India 3785682 4221707 436025 10.0 Sikkim 2175 2446 271 12. This is a major drag to our economy in general and manufacturing sector in particular .2 Bihar 110778 129472 18694 16.4 Himachal Pradesh 28756 29937 1181 4.

Being the most abundant fossil fuel in India till date. If this issue not addressed with much loss of time the country’s economic growth would be seriously hindered. It accounts for 55 per cent of the country’s total energy supplies. In fact.56 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING Figure 1 Power Generation – Fuel Based Installed Capacity Source: CEA (2010) Intensifying fuel crisis due to uncertainty in the availability of domestic coal coupled with increasing prices of imported coal and natural gas are currently the major hindrance in augmenting capacity in power sector. which has led to persistent complaints by State governments. 2006. The newest coal fuel supply agreements (FSA) by the Ministry of Coal guarantee at most 75 per cent of a power plant's fuel requirement. it continues to be one of the most important sources for meeting the domestic energy needs.00. Not surprisingly. coal exporting . where the contractual and logistical obligations are more complex. The share of coal in the total energy needs of the country is expected to remain above 50 per cent till 2032 as projected by the Planning Commission of the GOI in the integrated Energy Policy. It is estimated that the country would require 825 million tones of coal by 2017 to meet this capacity addition target. Coal India now ranks third amongst the coal producing countries in the world. India has been confronting severe coal shortages over the last few years. And the government vision of “power for all by 2012 at affordable price” will remain a distant dream. To review the current situation as regards the availability of various fuels let us start with coal which in the main steam of our power sector. Planning Commission in its 12th plan approach document has stated a target of 1. and steel companies regarding the availability and timely delivery of coal.000 MW for 12th plan. public and private sector power generators. many large coal consumers are resorting to higher quality imported coal instead. the balance must be procured privately. This deterioration in India's ability to extract its considerable domestic coal reserves is reflected in policy as well.

Drop in gas availability in the KG -6 block from 60 MMSCMD to 35. The supply of gas under the administered price mechanism (APM) is declining. 2012 57 countries — most recently Indonesia — have begun responding to the global upsurge in coal demand by increasing prices and changing regulations. Destruction in the nuclear plant has forced the country to import large quantities of gas to generate power. Natural gas from local fields operated by ONGC and Reliance cost $4.57 MMSCMD in February 2012 has created a crisis for operating the existing gas – based power stations and those under construction. natural gas has only supported about 18000MW of power generation. while imported prices have shot up to $16 per unit putting immense pressure on the price front. 1. Indian import of thermal coal is projected to be at 265MT in year 2016-17. Figure 2 Year wise Import of Thermal (Non Coking) Coal Note: Figure for 2016-17 is an estimated figure. which is about tenfold increase from the 2006-07 level.Journal of Regional Development and Planning. the sharp decline in rupee has aggravated the situation. Source: CIL (2012) Natural Gas While coal continues to be the dominant fuel for the power sector. No.2 per unit. 1. On the other hand a price of imported gas has risen significantly since March 2011 due to the fallout of earthquake in Japan. In addition. Vol. .

58 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING Figure 3 Natural Gas Demand . Government of India Crude Oil .Supply Scenario Source: E&Y Report on Tapping growth potential in the Indian hydrocarbon value chain Figure 4 Demand – Supply Scenario of Crude Oil Source: Ministry of Petroleum and Natural Gas.

In India. In spite of cost of establishing of Nuclear power plant more than thermal power plant India wants to boost Nuclear power capacity by 63000 MW by 2032.Journal of Regional Development and Planning. They are ideally suited as distributed generation in far flung areas not connected by grid network. as compared to 34 MT in FY07. The country produced 33. Nuclear Energy Nuclear power from 20 reactors accounts for less than 3 per cent of the electricity that India generates. livelihood and displacement concern. lack of supply leads to underutilization of production capacity. Kazakhstan. power evacuation problems. inter-state issues that have contributed to the slow pace of hydropower development in the country. They are categorized as renewable source of energy. Demand for electricity is basically an indicator towards growth potential of a state in the sense that the NSDP of the state would have been higher if the total capacity is utilized or in other words. Madhya Pradesh. Hydro Power Hydropower’s share of the country’s generation capacity is expected to remain around 25 per cent in the long run. the share of hydro would in fact be less than 25 per cent that is very small as per our needs. and in some cases. Vol. In India. 1. India has limited reserves of uranium but after the Nuclear Supplier Group (NSG) allowed its 46 member-nation to trade with us. Fueled by strong economic growth. resulting in an increased dependence on imports. The current level of production barely caters to 26 per cent of the petroleum products demand and the balance oil requirements are met by importing the crude.40 MW that constitute 20.848. Even if the potential of 150. ELECTRICITY GENERATION IN INDIA: THE REGIONAL SCENARIO After having a discussion on the different energy sources that contribute to growth of an economy. there is need to addressee. resettlement and rehabilitation. Argentina and Namibia. Mongolia. Quick response of hydro power in rapidly changing load pattern is a major advantage. DGH 2005–06 report). the country’s crude oil production continued to be stagnant. which can sustain the current level of production for the next 35 years. The balance of recoverable oil reserves as on 1 April 2006 is around 1653 MT (Directorate General of Hydrocarbon. Presently total installed capacity is 38. 1. the demand for oil has outpaced domestic production.38 per cent of the total installed capacity. resulting in its increased dependence on crude oil imports. Western Region comprised of the major states like Maharashtra. Only 4780 MW capacity contributed by Nuclear Power installed out of 190592.000 MW is fully exploited by 2030-31. including for the supply of uranium by Russia. we have signed several deals.7 MT of crude oil in FY10. These states are presently having maximum number of Industries and are highly contributing to the economy in . As per Ministry of New and Renewable Energy norms small hydro power projects are those installations that have a capacity of 25 MW or less. 2012 59 India’s crude oil consumption has increased exponentially over the past years. safety and environmental issues. the dearth of good contractors. Gujarat and Chhattisgarh is found to be having the maximum shortage of electricity to cater the need of their growth potential (Table-3).55MW total installed capacity. On the other hand. No. land acquisition problems. But the nuclear accident at Fukushima in Japan in March 2011 changed many nations’ attitude towards nuclear power. a more specific analysis has been done on electricity which acts as the one of the major inputs to a production process and is being produced from the energy sources discussed earlier. Big hydro power projects implementation suffer from issues like environmental concerns.

047 13.047 -16.125 73.422 Availability (In MU) 71.179 124. followed by Punjab.282 Surplus /Deficit -4. Among the states in Northern Region.934 4.422 -583 -29.853 223. still there is a considerable shortfall.026 1.408 43.508 8.914 14.197 325 4.092 1. ENERGY IMPORTS Traditionally.526 78.277 33.163 -1.550 352 530 855 9332 752. Of late.936 3. India has remained supply constrained in energy and the country is forced to resort to imports to bridge the gap between demand and supply.576 24.418 -278 -3.407 20.725 -144 0 -9.424 -66 -132 -154 -35.007 258.933 39.568 1.973 101.122 524 1. Oil imports also continue to grow every year to meet the petroleum products demand.3 Availability and Requirement of Electricity Across States during the year 2009-10 State/Region Chandigarh Delhi Haryana Himachal Pr Jam & Kas Punjab Rajasthan Uttar Pr Uttaranchal Northern Chhattisgarh Gujarat Madhya Pr Maharashtra Goa Dam & Diu D.930 8. and Rajasthan.512 3. Central Electricity Authority.673 -622 -460 -181 -931 -43 -60 -3.577 5.200 45.60 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING terms of contribution to the gross domestic product.867 21.663 10.327 288 466 771 8295 673.136 33.619 17. Western zone alone has the 42 per cent of the total electricity deficit of India.955 32.232 11.970 -74 -434 -94 -223 -64 -64 -84 -1. Haveli Western Andhra Pr Karnataka Demand (In MU) 1.528 24.750 388 240 88.149 -8.041 Surplus /Deficit -48 -183 -1.802 3.094 32.369 43. followed by Northern Zone which contributes to 35 per cent of the total deficit in India.996 45.921 254.023 6.769 9.739 67.550 Availability (In MU) 1.196 -423 All India Source: Annual Report 2009-10.688 430 1.220 34. With the rising demand of natural gas in the power and fertilizer sectors. This zonal analysis would be helpful to identify the regional energy demand backed by the growth potential of the region. Table.119 24 142.N.569 -270 -3.293 2. Jammu & Kashmir.002 9.267 -6.062 59.037 -79.323 -1. import of thermal coal by the .975 24 133. LNG imports were started in 2004–05.401 -5.009 70.731 44.165 11.167 399 5.441 7.819 345 180 84.206 -23. Though LNG imports have met the demand to some extent.765 42.338 224.587 15.140 Kerala 17.231 -3.509 State/Region Tamil Nadu Pondicherry Lakshadwip Southern Bihar DVC Jharkhand Orissa West Bengal Sikkim And & Nic Eastern Arunachal Pr Assam Manipur Meghalaya Mizoram Nagaland Tripura NEastern Demand (In MU) 76.109 75. Uttar Pradesh is having the maximum shortage.199 5.

1022 Assumed Domestic Production 560 Range of Imports 72 .8 per cent villages have been electrified so far. This in turn requires strengthening of the rural network. and strategic vulnerability. both at the macro level and at the regional level. Increased dependence on imported energy seems to be the prime problem for the economy as it leads to higher import bill. still a large number of habitations left uncovered and a very large population that has no connectivity. Vol. since even if one household in a village is electrified. this figure hides more than it tells. There are other schemes which provide electrical connectivity to people below poverty line.Journal of Regional Development and Planning. Solar lanterns have been distributed at subsidized rates. which needs three phase supply. 551187 villages have been electrified. 2006. Bihar.e. Besides RGGVY focuses only on household supply and does not address the need for providing electricity for agriculture. about 92. However for effective universal access the RGGVY programme has to be restructured. However. Orissa and Assam and some of the other North East States.1010 29 -59 Note: Range of imports is calculated across all scenarios by taking the minimum requirement and maximum domestic production as the lower bound and maximum requirement and minimum domestic production as the upper bound. since in many States there is also a real shortage of power. 2030 (in Mn. Thus in reality. i. deficit in the balance of payment. There are also initiatives for developing other resources such as biomass power generation. the status of Rural Electrification shows that out of 593732 inhabited villages. Table 4 Projected Primary Energy Requirement for India. the issue of energy security has become a growing concern for India. There are.462 Imports (in per cent) 11-45 Oil 350 -486 35 315 -451 90 . RURAL ELECTRIFICATION Access to power has been particularly poor in rural habitations and the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) was launched to remedy this problem by providing connections to all villages and free connections to BPL families. CONCLUSION India is among the fastest growing economies of today’s world and there is no doubt that this growth is fuelled by energy. 2012 61 power utilities and cement industry also started increasing besides the coking coal imports by steel industry to meet the growing demand. As a result of this. It is desirable to try and universalize access of power during the Twelfth Plan and this requires dealing with the large backlog in the States of Uttar Pradesh. Tonne) Fuel Coal including lignite Range of Requirements 632 . As of December 2011. if we consider number of households electrified.1702 --387 . that village is considered electrified. No.49 methane Total Commercial primary energy 1351 . however. we are far behind.93 Natural gas including coal bed 100 . Government of India. Connectivity by itself is only part of the problem. 1. Naturally. Imports accounted for 30 per cent of our Total . 1. which is what RGGVY covers.197 100 0 -97 0 . the share of imports in the total primary energy supply is progressively rising. Source: Integrated Energy Policy Report (IEPR). and not just last mile connectivity to households.

protecting the economy from price instability and strategic vulnerability. apart from oil and gas. To summarise.000 MW. however. especially in remote locations where the grid cannot be extended. Given the regional disparity in energy availability and its impact on regional growth. Offshore wind energy potential has remained largely unexplored. This can only be done by reducing the dependence on imported and nonrenewable energy by substituting with other forms of energy. Decentralized power generation. price volatility as well as irregularity of supply. The mission is based on private participation providing enough business opportunities to major and medium entrepreneurs. The need.62 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING Primary Commercial Energy Supply (TPCES) in 2004-05. is to bring down the cost of harnessing this vital source of energy and to make it economically viable. Continued emphasis has to be placed on other renewable resources. Hence. This would impact the economy in terms of sudden market risk. Since then the government has actively been making long term strategy for the promotion of renewable energy sources and has provided much needed policy push to put India on the path of renewable and self dependent energy economy. and harnessing the huge potential of renewable energy sources are the three steps which can ensure sustainable regional development of the India economy in the coming years. C-WET estimated a technically feasible wind potential of 49. self reliance in energy supply as far as feasible.000 MW by 2022. to ensure sustainable development. The projected energy requirement of India indicates that. While India’s search for new and renewable energy resources to ensure sustainable development and energy security began in 1970. __________________________________ . A fresh assessment of wind power potential by some agencies has mentioned a higher figure which needs realistic review by the Ministry of New and Renewable Energy (MNRE) based on scientific norms. efforts should also be directed towards large-scale deployment of related technologies in order to further bring down their costs. introducing Renewable Purchase Obligations on the states and allowing global competition has encouraged technical innovation and brought down renewable energy costs nearly by fifty percent. Apart from continuing to provide support to renewable energy schemes. It is also necessary that scientific and technological (S&T) developments. Providing initiatives to the private developers through Generation Based Incentives. up from 17 per cent of TPCES in 1991. our economy has to ensure energy security. Through Jawaharlal Nehru National Solar Mission (JNNSM) India is certainly on the path of environmentally benign energy economy providing the nation energy security as well as meeting her environmental obligations. resulting in inflation and overall economic instability. i. especially on expanding wind power generation and in the emerging area of solar thermal and solar photovoltaic. India receives 5000 trillion kwh per year equivalent of energy through solar radiation and just 1% of the country’s land area has the potential to meets its entire electricity requirements till 2030. While a National Solar Mission plans for a capacity of 22. renewable energy resources can also play a crucial role in providing power to remote areas. should necessarily be based on renewable energy to provide these regions with access to clean and reliable energy. which needs considerable technology upgradation and project implementation skill. that the government created a separate ministry to cater to this particular aspect of national importance. it was not until 1992.e. import of coal is also likely to grow substantially over time. especially in the solar energy field. are sufficiently internalised to keep the country abreast of international developments.

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Bringing in a historical perspective the author narrates the course of regional disparities in the colonial and the nationalist periods and predicts that the current globalization trends will aggravate interregional disparities. While he accepts that inequality is a moral concept. The first paper of the first section by Amiya Bagchi provides a historical context on the concepts of inequality and disparity. Gupta argues that the amount as also the method of devolution of funds by successive Finance Commissions in India have had significant impact on regional disparity. he argues that ownership of productive assets has been instrumental in creating inequality in the modern world. especially to the poor.64 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING BOOK REVIEW Development. Orient Blackswan. The third paper by Santanu Gupta examines the conflict between policies that promote equity and those that encourage efficiency from welfare economy perspective. They argue that direction and amount of these grants are mostly determined by political considerations and influence. and the . second section deals with issues related to interpersonal disparities. Myrdal’s arguments and the Latin American models of centre-periphery relations. Discussing Jeffrey Williamson’s inverted-U theory. Using a ‘Lobbying Index’ for the period 1974-94. a topic that is both important and contemporary. starting with a paper by Martreesh Ghatak exploring the issue of delivery of public goods. While egalitarianism should spread public investment across space evenly. Ed: Nirmala Banerjee and Sugata Marjit. Solow’s model of convergence. Chakravorty contends that the state in developing countries has never seriously pursued the objective of balanced regional development. Arguing that governmental institutions have not succeeded in this task. they show that actual devolution of discretionary funds is fairly well related to the lobbying index. Price: ` 545. Banerjee argues that location of new industrial units in developing world do not follow the standard locational theories and hence he develops various topologies of industrial development. past and present. Notable among them are the Saving-Driven Industrialisation or SDIs. The last paper of first section by Rongili Biswas and Sugata Marjit also deals with devolution of funds from the Centre to the states under discretionary grants. The second section has two papers. 2005. The second paper is by Abhijit Banerjee explaining the pattern of industrialization in the developing countries. the caste system has been the root cause of inegalitarian society in India and the affirmative action provide by the constitution have not succeeded to bridge the chasm. The second paper by Sanjoy Chakravorty explores the issue of theoretical proposition to explain or predict regional disparities. The book has three sections – first section explores theoretical issues related to regional disparities. rather than economic ones. According to him. 317 pages. Ghatak justifies emergence of Non-Governmental Organizations (NGOs) in this field. Displacement and Disparity: India in the last quarter of the twentieth century. and the third section discusses inequalities emerging in the last two decades out of the structural adjustment program. efficiency considerations would require public investments to be chanellised to areas and activities that provide the highest returns. A theory for understanding the role of NGOs in provision of public goods has been developed using various case studies.00 The volume under review is a collection of essays on issues related to regional and interpersonal disparity in India.

changing only marginally by 1991. Vol. bring down real income of an average worker. The authors infer that hierarchy of the states remained more or less unchanged over 1971–1981. 2012 65 Savings-Constrained Industrialisation or SCIs. and transformation of the export basket towards high-technology and more value-added items for future growth of exports. No. this book is an important addition to the library of researchers working on regional issues. To solve the problem of heterogeneity due to varied units of the components where changes in units may lead to greater value of indices. poverty and balance of payments using a two-sector macroeconomic model and incorporating the fact that land reforms in India have been uneven across regions. 1. Sinha Roy argues that growth in exports as seen in the post-reform period is not sustainable because of such contradiction. The importance of social infrastructure is underlined from the good performance of Kerala in terms of PCNSDP. Using Data Envelopment Analysis the authors argue that ‘Input Congestion’ due to production workers has adversely affected productivity in Indian industries. The last paper by Saikat Sinha Roy explores the dissimilarity between global trade pattern and India’s export performance. They infer that greater exports of foodgrains would increase the price of food. The relation between IDI and PCNSDP seems to be non-linear. however. 1. They argue that there is a common perception that industrial productivity in India has been historically low because employment and efficiency never went together and the reforms were meant to correct this incongruence and promote efficiency in the industrial sector. thereby loosing their individual variability. This is an important issue as any dichotomy between India’s export pattern and the global consumption trends will hinder India’s export growth. Overall. The second paper of this section by Buddhadab Ghosh and Prabir De prepares a infrastructure development index (IDI) from several components of economic and social using Principal Component Analysis. investment in dynamic export-oriented sectors. Tanushree De . may raise industrial employment and output subject to the condition that mid-sized farms cover a large portion of farmland. makes the Variance of all the transformed variables equal to unity. He recommends diversification of exports. This. The third paper is by Abhirup Sarkar and Sukanta Bhattacharya on the effect of trade in foodgrains on industrial employment. Ghosh and De have divided the original values of the individual variables by their Standard Deviation. They also infer that output-oriented technical efficiency has declined and the problem of labour input congestion has increased after the reforms. The third section on post-reform inequalities begins with a paper by Subhash Ray and Kankana Mukherjee on the impact of ‘Surplus Labour’ on the efficiency of production in Indian industries between 1986-87 and 1999-2000. Banerjee provides various examples of community based neo-industrialisation dirves from India and China and contends that these efforts would be more efficient if the entrepreneur is an insider and can effectively tap the strengths of the community.Journal of Regional Development and Planning.

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