Overview of energy sector in India

‡India ranks 6th in the world in total energy consumption ‡The energy sector holds the key in accelerating the economic growth of India. ‡Industry is the largest consumer of primary commercial energy after the power sector. ‡ At the expected 8% growth rate, energy consumption is bound to increase. ‡Growing infrastructure demands more power. ‡Sophistication of technology demands power.

‡ Sophistication of technology demands power. . energy consumption is bound to increase.‡ Lowest per capita energy consumption ‡ Energy consumption per unit of GDP is highest ‡ At the expected 8% growth rate. ‡ Growing infrastructure demands more power.

SOURCES OF ENERGY Sources of energy Non Renewable Renewable Coal Oil Natural gas Nuclear power Solar Wind Hydro Bio mass .

Defects of Regulation ‡ ‡ ‡ ‡ ‡ ‡ Availability Irregularity in supply Lack of easy accessibility Inefficiency Discrimination Lower quality .

2. 3.Deregulation ‡ Less of government interference ‡ Aspects of deregulation 1. 4. Entry barriers Control on prices Distribution Fixation of priorities .

.Wind energy ‡ ‡ ‡ ‡ 5th in the world Installed capacity in India 11807 MW Potential 65000 MW Generates 1.6% of the total power consumption.

America.Suzlon energy ‡ 7.7% market share in global wind turbine sales ‡ 3rd largest wind turbine manufacturing company in the world ‡ Presence in 25 countries across Asia. Europe and Australia ‡ 52% market share in India ‡ Made India leader in wind turbine technology .

Solar energy ‡ Reliance industries has highest volume of investment in Solar PV project in West Bengal ‡ Moser Baer Photovoltaic Ltd has also ventured into this industry. ‡ Sharp Business Systems India Ltd. Made its foray recently .

Biomass energy ± Potential 19500 MW ± Installed capacity 290 MW ± Biomass energy is majorly used for self consumption ± Commercialization on a large scale is still to be introduced. ± Orient green acquired an 8 MW plant in Rajasthan in 2008 .

Hydro .

Fiscal incentives for renewable energy 100 percent accelerated depreciation for tax purposes in the first year. Remunerative pricing for the power generated through renewable energy systems. Low import tariffs for capital equipment and most of the materials and components. fed to the grid by private sector. No excise duty on the manufacturing. . Five-year tax holiday for power generation projects.

Allotment of land on a long-term basis at token lease rent and supply of garbage free of cost at project site by state governments. . Encouragement to non-governmental organizations (NGOs) and small entrepreneurs.Facility for the third party sale of renewable energy power. Financial Incentives/Subsidies for devices with high initial cost. with respect to projects on energy recovery from municipal waste.

‡ FDI of 74% in joint venture automatic approval ‡ 100% FDI permissible with approval from Foreign Investment Promotion Board. ‡ Build own operate basis projects encouraged. .

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