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5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda
http://www.teriin.org/featured_services/may/index.php 1/13
The Energy and Resources Institute
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THE COSTS OF DEVELOPMENTAL INACTION
TERI'S AGENDA FOR THE NEW GOVERNMENT AND HOW IT CAN REINVENT SUSTAINABLE
DEVELOPMENT FOR ALL
As we gear up to welcome the New Government, the high expectations of the electorate will test the functioning of
the new dispensation. To achieve tangible results in the first 100 days, the new Government will have to perform
beyond expectations in the field of sustainable development, which broadly covers fundamental issues such as
water, energy and food security. Here, it is important that the New Government should focus on specific policies and
institutional frameworks which will help achieve quick results and reverse the current trend.
The Energy and Resources Institute (TERI) has come up with an advisory that addresses not only the way forward,
but deals with the critical aspect of the cost of inaction. Along with chasing targets, we need leapfrog measures,
which will cover the "un-served" populations. Says Dr R K Pachauri, Director-General, TERI: "Environmental issues
are often presented within the framework of conflict between environment and development. What is attempted
here is a refreshing departure which provides a price tag on the damage that poor environmental quality and
degradation is imposing on human society and how substantially lower-cost action can avoid this burden. What is
included here are sectors largely within urban areas, but a similar analysis and presentation is essential for rural
environmental degradation as well. Undoubtedly, that would be a far more complex challenge analytically, but given
the large population in our villages, ignoring such analysis would be at the cost of ignoring the welfare of two-thirds
of our population."
TERI has proposed few quick solutions which are basic and easily implementable. The measures will not only bring
down the costs of inaction, but improve the lives of millions in a sustainable manner. Here are some key issues that
need to be addressed by the new government.
WATER
In India, more than 73 million workdays are lost each year on account of water-borne infections. Economic studies
conducted at country level by the World Bank over the past 15 years have shown that impacts resulting from poor
sanitation and hygiene cost countries between 0.5 per cent and 7.2 per cent of annual Gross Domestic
Product. Under the Economics of Sanitation Initiative (ESI), the economic costs due to poor sanitation and hygiene
have been shown to exceed 5 per cent of GDP in India. India suffers economic losses from poor sanitation of Rs
5,400 crore each year.
India has been successful in providing improved water supply facilities for more than 89 per cent of rural households
and 96 per cent of urban households. However, for the rural sanitation sector, only 24 per cent used improved
sanitation facilities, while in urban areas, 60 per cent used improved sanitation facilities. The most disturbing trend
has been that 50 per cent of people are still resorting to open defecation.
The challenge now is how to provide higher levels of service with sustainable sources and systems that provide
good quality water to a growing population.
TERI RECOMMENDS: Development of 'Water and Sanitation Safety Plans' for Jal Boards, Urban Local Bodies and
rural piped water supply and sanitation services could be made mandatory in order to maintain high standards in the
sector. A high-level committee may be formed having representations from all the relevant Ministries, Boards, Water
and Sanitation organizations and important stakeholders in order to ensure effective and efficient implementation of
the water and sanitation safety plans.
The existing tariff for water consumption for domestic use is fixed and not volume-based, which discourages the
promotion of best practices for the water conservation as the users do not feel any responsibility in managing the
resources. A differential tariff structure on volumetric basis is recommended.
There is a need to address the core issues of establishing a standardized benchmark in water use efficiency, which
would have technical as well as holistic explanations, and would be helpful in exploring the potential of establishing
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a 'Bureau of Water Efficiency'. The Bureau would be an autonomous institution with accountability and
responsibility to cater to the demand-side management.
An outlay of between Rs 2,72,377 crore and Rs 303165 crore is suggested for the 12th Five Year Plan for Rural
Domestic Water Supply, including the component of National Rural Drinking Water Programme (NRDWP) for lagging
states, special component for scheduled castes and scheduled tribes. This would be about 305 per cent of the actual
allocation in the 11th Five Year Plan for the sector. The State outlay would be Rs 1,49,807 crore - a similar increase.
This would be feasible for States also, considering the increase in the 11th Plan over the previous Plan.
AIR POLLUTION
More than 80 per cent of Indian cities, where monitoring was carried out, do not meet the prescribed standards of
air quality. The particulate matter (PM) concentration have been found to be many times higher than the standards
in several Indian cities like Delhi, Ghaziabad, Gwalior, Raipur, Kanpur etc. Moreover, it is not only big cities that
show high concentrations, but smaller cities have also recorded extremely high values.
Air pollution has been known to have grave consequences. About 620,000 mortalities have been estimated to
occur annually in India that is attributable to ambient air pollution. Not only respiratory problems, the cardio-
vascular impacts are also evident, and these problems are linked to deteriorating air quality. The World Bank has
estimated the cost of damage caused by outdoor air pollution in India to be around Rs 1 lakh crore annually. This is
about 1.7 per cent of the total GDP and clearly shows a dent in the economy caused by deteriorated air quality.
TERI RECOMMENDS: Improvement in fuel quality and advancement of vehicular emissions norms is the key to
reduce vehicular emissions. The emission reduction that can be accrued through the introduction of BS-VI fuel
quality and vehicular norms can result in the reduction of 127,000 mortalities by 2030, and economic benefits
ranging between Rs 3.9-6.7 lakh crore cumulatively till the year 2030. Benefits of implementation of these norms
will soon outweigh the costs incurred on initial capital investments.
Major institutional changes required include integration of efforts from multiple sectors as most of them are inter-
linked, and a regulatory body on the lines of California Resources Board should be constituted. The body should be
empowered to take sector specific decisions based on scientific knowledge for control of air pollution. Whereas, the
policy changes suggest that the transport sector should move away from the current dual fuel policy in the country.
Policies on subsides on kerosene and price differential for diesel also need to be reconsidered to reduce
adulteration, and market shifts that are not environment friendly. The National Program on Improved Chulha should
be revived with inclusion of latest research and technologies for control of indoor and outdoor air pollution due to
biomass burning.
WASTE
The process of urbanization has not only increased municipal solid waste (MSW) generation, but also led to
increasing quantity of domestic wastewater. Cities considered as engines of growth are also guzzlers of resources
and today's mismanagement of resources is producing huge amount of wastes. The Central Pollution Control Board
(CPCB) says that the annual generation of MSW is pegged at 62 million tonnes or 133,760 tonnes per day, of
which only 25,884 tonnes per day is treated, while the rest are disposed on land requiring around 2,12,752 m3
of landfill space. The requirement of land during the next 20 years is estimated to be as high as 66,000 hectares
(1,240 hectares per year).
Inappropriate management of these waste adversely impacts the environment and ecology of the region, thereby
contaminating human health. For example, the cost in terms of Disability Adjusted Life Years (DALY) of diarrhea
for children from poor sanitation is estimated at Rs 500 crore. A similar study by the Water and Sanitation
Programme of the World Bank using data for 2006 shows that the per capita economic cost of inadequate
sanitation, including mortality impact in India, is Rs 2,180.
TERI RECOMMENDS: The way to address waste mismanagement would be to build waste reduction strategies in
overall waste management programmes, increase waste processing, maximize resource recovery, recycling and
ensure that land requirement for ultimate disposal is minimized by adopting resource efficient processes. The
suggested policy changes would include:
A formal waste management policy addressing all the different diverse waste streams centered around
elements of 3Rs (Reduce, Reuse, Recycle) and the need for closing the material use cycle,
Incentive-based mechanism for enhancing/promoting waste reduction and recycling-based programmes,
and,
Mechanism for creation and promotion of market for recycled products.
The suggested institutional changes would include:
Integration of clean technology and waste minimization and pollution prevention schemes of Ministry of
Environment and Forests to deal with waste-related issues in a holistic manner,
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To address the problem of indifference in sectoral ministries of environmental issues, environmental cells at
the central and state level should be constituted. MoEF should sensitize these cells and also monitor their
functioning,
The Ministry of Urban Development, being the nodal Ministry dealing with issues related to urban solid and
liquid wastes, needs to set up a dedicated cell for implementation of proposed waste management policy at
the national level with similar cells to be constituted at the State level.
GREEN INFRASTRUCTURE
As per the XII Five Year Plan of India, urban India would need hefty investments towards meeting just the capital
expenditure requirements of providing urban infrastructure. Capital expenditure requirement of nearly Rs 2,88,000
crore and Rs 99,000 crore will be required for meeting the infrastructure needs of urban transport and other
sectors (water supply, sewerage, storm water drainage and solid waste management), respectively between 2012
and 2017. Given the financial situation of our urban local bodies and other urban agencies, meeting these
investment requirements will not be easy and would need support of all stakeholders, including the private sector.
Innovative financing methods for meeting infrastructure investment requirements will be critical.
Equally important would be to create capacity amongst urban institutions to be able to select, plan, design and
deliver infrastructure projects that are sustainable in the long run. The conventional approach of looking for short-
term solutions to infrastructure gaps may not help address the challenges of infrastructure and would definitely not
help in meeting the long-term vision of sustainable and green growth of urban areas, which essentially means urban
growth that has least environmental footprint, is inclusive and which generates economic growth opportunities with
minimum environmental and social impacts. Realizing such a model of growth for urban India would need a larger
vision and a long-term sustainable urban development policy. This policy should look at a period of 20 to 30 years
and should dwell on: projections for the nature of urban growth in future, expected challenges, sustainable and
green solutions, and, essential requirements to achieve these solutions - capacity, institutions, and finances. Urban
India will also need to look at the way it plans, designs, constructs and uses its buildings.
TERI RECOMMENDS: With over two decades of experience on sustainable buildings, TERI has developed a robust
rating system of green buildings, GRIHA (Green Rating for Integrated Habitat Assessment), which was adopted as
the national rating system for green buildings by the Government of India in 2007. Consequently all buildings of
Government of India and Public Sector Undertakings have mandated minimum GRIHA rating. Several State
Governments including Delhi, Assam, Punjab and several corporations have adopted GRIHA. TERI calls upon all
States to adopt GRIHA as a framework to achieve resource efficiency in the built environment. This would help
streamline approvals for real estate projects, ensure regular monitoring, follow-up on environmental clearances and
compliances, during the course of construction and operation of building projects.
It will also facilitate a two-way communication between the authorities and projects; and, essentially, help move
away from the 'check the boxes' approach of EIA, provide relief to projects having to move from pillar to post for
seeking approvals, and ensure execution of projects in a time-bound manner. TERI also proposes higher taxes on
non-compliant and inefficient appliances/buildings, developing open and transparent institutional mechanisms at
the State and Municipal levels to facilitate implementation of resource efficiency thorough GRIHA. Some level of
disincentives must be constituted to prevent mainstreaming of defaulters. Resource efficiency must be integrated in
all schemes and initiatives around affordable housing.
TRANSPORT: Road accidents alone are estimated to cost three per cent to India's GDP, a trend that would have to
be reversed given that we hold the dubious distinction of having the maximum number of road accident deaths in
the world. Urban transport in India undoubtedly needs urgent action in a mission mode.
TERI RECOMMENDS: All cities above 0.5 million population should be provided with adequate and quality bus
transport systems. Mega cities above five million should provide city-wide metro rail based transit systems. TERI
also recommends that all urban centres in the country, small or large, should compulsorily provide facilities for
pedestrians and non-motorized transport users. Million-plus cities should also put together clear action plans for
implementing transport demand management tools that encourage use of sustainable modes of transport. Urban
transport authorities, as envisaged in the National Urban Transport Policy, should be established in all 0.5 million-
plus cities and should lead the agenda for sustainable mobility in their cities.
ENERGY SECURITY
As per 2011 census, there were around 32.7 per cent un-electrified households in India. Moreover, several
households that had an electricity connection and the ability to pay for the services are deprived of reliable and
continuous electricity supply, impacting livelihoods and household welfare. Despite the increase in availability, India
faced an energy deficit of 8.7 per cent and a peak deficit of 9 per cent in 2012-13.
TERI's analysis indicates that under a Reference Scenario, India's total energy requirements would increase three
folds from the current level by 2031, with coal and oil continuing to contribute a large part of this energy need.
Further, it is anticipated that even with best efforts to improve efficiencies and enhance availability of domestic
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fuels, India's energy import dependency is likely to continue increasing and remain high during the next few
decades. While India's oil import dependency could spiral from around 77 per cent at present to over 90 per cent by
2031, with growing concerns regarding the extractable reserves of coal apart from issues related with its quality and
transportation, coal imports are also expected to continue increasing. Consequently, the overall fossil fuel import
dependency in the Reference Scenario is also expected to increase to 74 per cent by 2031. India's net import bill was
around 41 per cent of the country's export earnings in 2012/13, and in a scenario of rising and volatile energy prices,
India's vulnerability on account of high energy import bills could increase significantly in future.
TERI RECOMMENDS: Energy efficiency measures can be implemented on the energy supply as well as demand side
across the energy intensive end-use consuming sectors. For instance, in the transport sector, key interventions
include introduction of energy efficiency standards and encouraging use of public transport. Within the industrial
sector, the Micro, Small and Medium Enterprise (MSME) segment is associated with low efficiencies due to several
barriers such as use of obsolete technologies, non-availability of readymade technological solutions, low level of
awareness/information availability, non-availability of technology providers at local/cluster level, relatively high cost
of technologies and poor access to finance. It is estimated that there is a possibility to reduce energy
consumption by up to 25-30 per cent by introducing energy efficiency measures in these sectors.
There is a need for implementing innovative pricing mechanisms that reflect true costs of alternative options and
induce efficiency in energy production and consumption. Further institutional changes and regulatory mechanisms
geared towards creating a more enabling environment and ensuring constant compliance and progress are
warranted. A co-ordinated approach cutting across various energy sub-sectors (coal, oil, gas, renewable, electricity
etc.) would be instrumental in pushing forward a coordinated and integrated energy policy for the country. It is
proposed that a Cabinet of Secretaries (CoS) be set up with representation from the ministries concerned to
define policy and address all issues in an integrated manner. To ensure this, there is a need to gradually move
towards a single energy regulator. It is envisaged that the structure for Single Energy Regulatory Commission is such
that the existing energy sub-regulators would automatically become a part of the Commission at the member level.
RENEWABLES
Power generation from renewable sources is on the rise in India. The share of renewables in the total energy mix
reached 12.3 per cent in 2013. India has total installed capacities about 30177.9 MWe and 973.13 MWe for grid-
interactive power and off-grid/captive power respectively. Currently, wind accounts for about 67.5 per cent of the
capacity with 20298.23 MWe installed capacity and India is fifth largest wind energy producer in the world.
However, in recent times, wind sector has suffered due to withdrawal of GBI (generation based incentive) and
AD (Accelerated Depreciation). While GBI has been reinstated after a gap of more than a year, AD is yet to be
reinstated.
TERI RECOMMENDS: TERI proposes that Wind Mission should be launched as early as possible. Consistent long-
term policy is needed for stable business environment, and, land for wind projects can be allotted on priority basis.
Solar is important and comparatively underutilized energy resource in India with the potential to supply both grid-
connected and off-grid power. India has 300 sunny days per year on average and receives average annual radiation
of 1600 - 2200 kWh/m2, leading to annual estimated potential of 6 billion GWh. To properly assess this vast
potential, the Ministry of New and Renewable Energy has launched the Solar Radiation Resource Assessment
initiative to develop solar atlas quantifying solar radiation availability throughout the country.
TERI proposes integrated renewable energy policy to mainstream renewables. A renewable energy law for larger
role for renewables in the energy sector with emphasis on renewable power being at the center-stage of the new
power policy. Priority must be given for allocation of land resources to renewable power projects. Policies must
address wider support to demonstration and adaptation of RE technologies developed at global research centers.
The focus must be on faster implementation of the National Solar Mission and development of bioenergy and wind
energy sector through state level policy initiatives. As far as institutional reforms are concerned, TERI proposes
strengthening of the Ministry of New and Renewable Energy, a larger role for research centers in renewable energy,
new initiatives for RE industry development with special incentives for green energy, a green energy corridor
development and creation of incubation centers with international research centers for promoting renewable energy
basic and technology research and development.
Solar mission needs impetus and JNNSM targets can be advanced. There is need to make domestic
manufacturing competitive in global market and special incentives may be considered for this. Special impetus
must be given to indigenize solar thermal power generation technologies which have advantage of storage and
dispatchability. Other solar applications should be promoted on a priority basis to reduce fossil fuel consumption.
Solid biomass availability in India is estimated at about 500 million tons per year, of which 120 -1Te50 million tons is
available for power generation. The Ministry of New and Renewable Energy has estimated that about 18 GW of
power can be generated from agro based residues including agricultural and forestry residues. In addition to this,
there is potential to generate about 5 GW power by raising dedicated plantations on two million hectares of land.
TERI strongly feels the Union government should focus on bioenergy development and the Indian Bio-Mission should
be launched.
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WATER AND SANITATION
In India, more than 73 million workdays are lost each year on account of water-borne infections. The
government needs to allocate more resources and do comprehensive planning to provide clean water and
improve sanitation facilities to poor populations
By Girija K Bharat and Anshuman
India has been successful in providing improved water supply facilities to more than 89 per cent of rural households
and 96 per cent of urban households. However, for the rural sanitation sector, only 24 per cent use improved
sanitation facilities, while in urban areas, about 60 per cent use improved sanitation facilities. The most disturbing
trend is that 50 per cent of people are resorting to open defecation.
The challenge now is how to provide higher levels of service with sustainable sources and systems that provide
good quality water to a growing population. The number of piped water supply systems in rural areas is rapidly
increasing, because people want a higher level of service. In 2010, about one-third of rural households already used
piped water, and about one third of these had house connections. However, it should be noted that there are
significant inequalities between the rich and the poor and this needs to be addressed while moving forward. For
example, while about 32 per cent of the rich people have piped connections in their premises, only about one per
cent of the poorest have this facility. The trends in sanitation sector have been much worse.
As India becomes more urbanized, issues of discharge of sewage are bound to increase, which will compound the
problem arising from climate change. Challenge of sewage collection and treatment will increase as we bring in
urban sanitary facilities at the household level. Indian cities already have a huge backlog of incomplete or poorly
maintained sewerage systems. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched on a
mission mode for a period of seven years (2005-12) to bring about planned urban development in India. It has drawn
attention of the policymakers at all three tiers of the government on the challenges faced by the cities and towns of
India. It has succeeded in getting the state and city governments to commit to reforms in governance, but these
commitments have not always been kept.
The service level benchmarks and JNNURM 1 have made a good beginning in reforming the urban water supply
sector. The proposed JNNURM 2 offers an opportunity to bring in further urban reforms and make more investments
in urban water supply.
THE INVESTMENTS NEEDED PRESENTLY
Water security planning requires annual investments in new schemes and works, operation and maintenance,
replacement and expansion as well as support activities like water quality testing and IEC. Investment in sewerage
must match investment in water supply. In India, leakage and inefficiencies in the system waste nearly 50 per cent
of usable water. Recycling and reusing of wastewater, reducing water use and enhancing water use efficiency, must
become a part of water-sewage system planning, in order to reduce net water demand.
A total outlay of between Rs. 2,72,377 crore and Rs.303165 crore is suggested for the 12th Five Year Plan (FYP) for
Rural Domestic Water Supply, including the component of National Rural Drinking Water Programme (NRDWP) for
lagging states, Special Component for Scheduled Castes and Scheduled Tribes, Support activities and Sustainability.
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This would be about 305 per cent of the actual allocation in the 11th FYP for the sector. The State outlay would be
149,807 crore, which is a similar increase.
In India, the 12th Five-Year Plan has accorded a high priority to the sanitation sector. Allocations for rural sanitation
increased from Rs. 65,400 million in the previous plan to Rs.343,770 million in the 12th plan, which is a jump of 425
per cent. The higher budgetary allocation has coincided with a transformation of the national rural sanitation
scheme -Total Sanitation Campaign (TSC) to the Nirmal Bharat Abhiyan (movement for safe sanitation). While TSC
focused on motivating individual households to build toilets, NBA shifts the focus to sanitation programmes focusing
on the usage of toilets. The shift follows India's latest 2011 Census findings that only 30.7 per cent of rural
households in India have access to toilets.
THE ECONOMIC COSTS OF INACTION
In India, more than 73 million workdays are lost each year on account of water-borne infections. The fundamental
causes of India's tardy progress on the drinking water and sanitation fronts are high population growth, rapid
urbanisation, poor sector governance, low sectoral capacity, inadequate accountability mechanisms, and insufficient
expenditure on operation and maintenance.
The economic costs of not investing in water and sanitation are very significant. Economic losses as a result of poor
sanitation and inadequate water supply between 0.7 per cent and 4.3 per cent of Gross Domestic Product (GDP)
between regions, or 1.5 per cent globally. Economic studies conducted at country level by the World Bank during the
past 15 years have shown that impacts resulting from poor sanitation and hygiene cost countries between 0.5 per
cent and 7.2 per cent of annual GDP. Under the Economics of Sanitation Initiative (ESI), the economic costs due to
poor sanitation and hygiene have been shown to exceed five per cent of GDP in India. India suffers an economic loss
from poor sanitation of Rs 3240 billion a year.
An important finding of many of these studies is that the main contributors to the benefits of sanitation and water
supply are not just the health benefits. For example, the global study found that the value of time savings from
closer access and reduced queuing for sanitation and water supply facilities accounted for more than 70 per cent of
total benefits. This provides a clear case for investing in water supply and sanitation services as opposed to only in
health measures like vaccination programs against water-borne diseases.
WHAT POLICY CHANGES ARE REQUIRED?
Many policies exist at the National as well as State Government level to deal with water quality, water supply and
sanitation issues. However, the implementation of these policies is ineffective due to multiple factors. There is an
urgent need to ensure effective implementation of such policies by enforcing water quality standards on private
water suppliers.
Development of 'Water and Sanitation Safety Plans' for Jal Boards, ULBs and rural piped water supply and sanitation
services should be made mandatory in order to maintain high standards in the sector. A high-level committee may
be formed with representations from relevant Ministries, Boards, Water and Sanitation organizations and important
stakeholders in order to ensure effective and efficient implementation of water and sanitation safety plans.
The existing tariff for water consumption for domestic use is fixed and not volume-based, which discourages the
promotion of best practices for the water conservation as users do not feel any responsibility in managing the
resources. A differential tariff structure on volumetric basis is recommended.
There is a need for systems to enhance water use efficiency, by water auditing (assessment of water use), reducing
non-revenue water, adopting water conservation measures such as recycling, reusing and reducing water. These
could be carried forward by participatory approach to management of water resources.
WHAT INSTITUTIONAL CHANGES ARE REQUIRED?
There is a need to churn out the core issues of establishing a standardized benchmark in water use efficiency, which
would have technical as well as holistic explanations and would be helpful in exploring the potential of establishing
a 'Bureau of Water Efficiency'. The Bureau would be an autonomous institution with accountability and
responsibility to cater to the demand side management.
In order to effectively implement the National Water Policy in States, the State's Water policies could be made
mandatory. It is also recommended to create a separate department in all the States to handle rural water supply
and sanitation independently. This would require more allocation of funds for sustainability of water resources as
well as sustaining sanitation in India.
There is a need for re-looking at the Water and Sanitation schemes with respect to climate change. This is of vital
importance as there is a fear of failing of the sectoral schemes in future, if due attention is not given to the impacts
of climate change on the quality and quantity of water resources and sanitation infrastructures. Additionally,
capacity building of government personnel at all levels is needed so that they are well equipped to understand the
new policies of the government.
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CLEARING THE POLLUTED AIR
The introduction of BS-VI fuel quality and vehicular norms can result in the reduction of 127,000 mortalities by
2030
By Sumit Sharma
India is a fast developing economy and has shown unprecedented growth in the last two decades. While the
population has grown 3.3 times since 1950, the index of production has grown 50 times, and vehicles grew by a
mammoth 460 times in the same period. There are 53 cities in India, each of them accommodating more than 1
million people. The number of million-plus urban agglomerates is expected to grow to 85 by 2025 and 125 by 2050.
The economic growth, growing number and sprawl of cities has fuelled an unprecedented growth of personal
vehicles in India. The aspirations to own personal vehicles are also reinforced by limited availability of public
transport which is comfortable, secure and cost-effective. Growth of vehicles is far more in cities than in rural
regions, leading to congestion and emissions of air pollutants which are known to affect the human health severely.
Other than growing mobility demands, industrial production, electricity generation, and other factors have together
led to the deterioration of air quality in many regions of the country. While, urban centers deal with toxic emissions
from these sources, more than 80 per cent of rural households where biomass is used for cooking are facing the
consequences of high indoor air pollution.
More than 80 per cent of Indian cities, where monitoring is carried out, do not meet the prescribed standards of air
quality. The particulate matter (PM) concentration have been found to be many times higher than the standards in
several Indian cities like Delhi, Ghaziabad, Gwalior, Raipur, Kanpur etc. Moreover, it is not just big cities that show
high concentrations, but smaller cities have also recorded extremely high values. While, some measures have been
taken in a few cities, they are found to be inadequate to arrest the growth of pollution in the long run. Delhi showed
a slight decline in pollution during 2004-2007, when a number of measures (introduction of fuel quality and vehicle
emissions norms, CNG, Metro Rail Project, Shifting of industries, etc) were taken. But thereafter, the trend has been
increasing and currently the levels are unprecedented and are about four times the annual standards. High growth in
the number of vehicles has also led to emissions of other pollutants like NOx (oxides of Nitrogen) in many cities.
Air pollution has been known to have grave consequences. 620,000 mortalities have been estimated to occur
annually in India that is attributable to ambient air pollution. Not only respiratory problems are linked to deteriorated
air quality, the cardio-vascular impacts are also evident. The World Bank has estimated the total cost of damage
caused by outdoor air pollution in India to be around Rs 1.1 lakh crore annually. This is about 1.7 per cent of the total
GDP and clearly shows a dent in the economy caused by deteriorated air quality. Significant economic damage has
also been caused due to decrease in crop -yields by the ground level Ozone formed through the reactions of air
pollutants. Nationally, the aggregated relative yield loss of wheat and rice due to high ozone exposure amounts to
5.5 million tonnes in 2005, which could have fed 94 million people in India. The question is whether we can sustain
our economic growth with a population base severely affected by respiratory and cardiovascular disorders and our
crop-yields affected by pollution. There are serious steps to be taken to make a clear move towards achieving the air
quality standards in a shorter term. Source apportionment studies at urban and regional scales are required to be
carried out to ascertain the share of different contributing sources to draft sector specific strategies for control.
Improvement in fuel quality and advancement of vehicular emissions norms is the key to reduce vehicular emissions.
The emission reduction that can be accrued through introduction of BS-VI fuel quality and vehicular norms in the
country can result in the reduction of 127,000 mortalities by 2030 and economic benefits ranging between Rs 3.9-6.7
lakh crore cumulatively till the year 2030. Benefits of implementation of these norms will soon outweigh the costs
incurred on initial capital investments.
On the industrial front, the enforcement of the prescribed standards is primary for control. Biomass cook—stoves
programs need to be revamped and revived to reduce regional scale pollution as well as indoor air pollution in rural
households. Overall, more effective planning and efficiency improvements in different sectors are required to reduce
the demand for natural resources and corresponding emissions.
INSTITUTIONAL CHANGES: Air pollution is linked with multiple sectors and hence dealt by a number of departments.
However, the current situation demands integration of efforts. Considering the severity of the matter, a body on the
lines of California Air Resources Board needs to be constituted which is empowered to take sector specific decisions
based on the scientific knowledge for control of air pollution. The body should also be responsible for generating a
scientific knowledge base for taking appropriate technical, management and policy decisions at different scales.
POLICY CHANGES: A major policy change that is required in the transport sector is to move away from the current
dual fuel policy in the country. Currently, just 20 cities are provided with BS-IV quality fuel and rest of the country
remains at inferior quality of fuel leading to higher emissions. The current policy virtually treats the citizens of
different regions unequally. Lower quality of fuel also does not allow the fitment of advanced emission control
options. Policies should also be strengthened for enhancement of public transportation, in-use vehicle management,
and promotion of non-motorized transport in the country.
Policies on subsides on kerosene and price differential for diesel also need to be reconsidered to reduce
adulteration and market shifts that are not environment friendly. Newer standards need to be developed and the
existing ones need to be strictly enforced for both emission control and efficiency improvement in different sectors
5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda
http://www.teriin.org/featured_services/may/index.php 8/13
like industries, power plant and transport. The National Program on Improved Chulha needs revival with inclusion of
latest research and technologies for control of indoor and outdoor air pollution due to biomass burning.
DEALING WITH WASTE
The way to address the adverse health impacts due to inadequate waste management would be to increase the
processing, maximize resource recovery and recycling and ensure that land requirement for ultimate disposal is
minimized by adopting resource efficient processes.
By Suneel Pandey
The process of urbanization has not only increased municipal solid waste (MSW) generation, but also led to
increasing amounts of domestic wastewater. Cities considered as engines of growth are also guzzlers of resources
and today's mismanagement of resources is producing huge amount of wastes. The Central Pollution Control Board
(CPCB) says that the annual generation of MSW is pegged at 62 million tonnes or 133,760 tonnes per day, of which
only 25,884 tonnes per day is treated, while the balance is disposed on land requiring around 2,12,752 m3 of landfill
space. The requirement of land in the next 20 years is estimated to be as high as 66,000 ha (1,240 ha per year).
So far as the domestic wastewater is concerned, it is estimated that about 38,000 million liters per day (MLD) of
wastewater is generated in urban centers having a population more than 50,000 in India, according to the CPCB. The
municipal wastewater treatment capacity developed so far in India is about 11,000 MLD, accounting for 29 per cent
of wastewater generation in these two classes of urban centers.
In addition to these conventional waste streams, Indian cities have to also deal with more complex waste streams
such as waste from healthcare facilities, construction and demolition waste, electronic waste and industrial wastes
from small household industries, which makes management of urban solid and liquid wastes highly challenging.
Inappropriate management of these waste streams adversely impacts the environment and ecology of the region,
thereby contaminating human health. For instance, the cost in terms of Disability Adjusted Life Years (DALY) of
diarrhea for children from poor sanitation is estimated at Rs 500 crore. A similar study by the Water and Sanitation
Programme of the World Bank using data for 2006 shows that the per capita economic cost of inadequate sanitation
including mortality impact in India is Rs 2,180.
The way to address waste mismanagement would be to build waste reduction strategies in overall waste
management programmes, increase waste processing, maximize resource recovery, recycling and ensure that land
requirement for ultimate disposal is minimized by adopting resource efficient processes. The suggested policy
changes would include:
A formal waste management policy addressing all the different diverse waste streams centered around
elements of 3Rs (Reduce, Reuse, Recycle) and the need for closing the material use cycle,
Incentive-based mechanism for enhancing/promoting waste reduction and recycling-based programmes,
and,
Mechanism for creation and promotion of market for recycled products.
The institutional changes required would include:
Integration of clean technology and waste minimization and pollution prevention schemes of Ministry of
Environment and Forests to deal with waste-related issues in a holistic manner,
To address the problem of indifference in sectoral ministries of environmental issues, environmental cells at
the central and state level should be constituted. MoEF should sensitize these cells and also monitor their
functioning,
The Ministry of Urban Development, being the nodal Ministry dealing with issues related to urban solid and
liquid wastes, needs to set up a dedicated cell for implementation of proposed waste management policy at
the national level with similar cells to be constituted at the State level.
TOWARDS GREEN INFRASTRUCTURE
Capital expenditure requirement of nearly Rs 2,88,000 crore and Rs 99,000 crore will be required for meeting
the infrastructure needs of urban transport and other sectors
By Akshima Tejas Ghate and Priyanka Kochhar
By 2032, urban India is expected to grow from about 380 million to 600 million and may contribute as high as 75 per
cent share in the country's GDP. The overwhelming growth in urban India will bring along growth and development
opportunities that may help address socio-economic gaps that exist today. This growth, however, will be
accompanied with the colossal challenge of ensuring that the growth in urbanization is organized, well-planned,
manageable, and above all sustainable! This essentially indicates the need for ensuring growth of cities and city
infrastructure in a sustainable manner. Achieving this would not be easy.
5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda
http://www.teriin.org/featured_services/may/index.php 9/13
As per the XII Five Year Plan of India, urban India would need hefty investments towards meeting just the capital
expenditure requirements of providing urban infrastructure. Capital expenditure requirement of nearly Rs 2,88,000
crores and Rs 99,000 crore will be required for meeting the infrastructure needs of urban transport and other sectors
(water supply, sewerage, storm water drainage and solid waste management), respectively between 2012 and 2017.
Given the financial situation of our urban local bodies and other urban agencies, meeting these investment
requirements will not be easy and would need support of all stakeholders, including the private sector. Innovative
financing methods for meeting infrastructure investment requirements will be critical.
Equally important would be to create capacity amongst urban institutions to be able to select, plan, design and
deliver infrastructure projects that are sustainable in the long-term. The conventional approach of looking for short-
term solutions to infrastructure gaps may not help address the challenges of infrastructure and would definitely not
help in meeting the long-term vision of sustainable and green growth of urban areas, which essentially means urban
growth that has the least environmental footprint, is inclusive and which generates economic growth opportunities
with minimum environmental and social impacts. Realizing such a model of growth for urban India would need a
larger vision and a long-term sustainable urban development policy. This policy should look at a period of 20 to 30
years and should dwell on: projections for the nature of urban growth in future, expected challenges, sustainable
and green solutions, and, essential requirements to achieve these solutions - capacity, institutions, and finances.
Additionally, the policy should also reflect a clear sustainable agenda for urban sectors and provide a clear roadmap
for development in each of the urban infrastructure sectors. Transport and urban buildings, for example, will be
amongst the critical urban sectors that will need clear roadmaps, given that they have the highest contribution to
the environmental footprint of cities. The gaps in these sectors will have to be identified and addressed from the
sustainability perspective. In transport, for example, providing adequate and quality mobility options to the urban
population will emerge as one of the key challenges that our cities will continue to face in the future. It will be
equally important to address the current trends of explosive motorization and the associated urban transport
problems, without which these would multiply manifold in the coming times. A sense of urgency in addressing
various facets of urban transport and undertaking efforts for making it sustainable will be essential. The increasing
dependence on private vehicles, declining share of public transport and non-motorized transport are some of the key
trends that will have to be looked into from the sustainability perspective.
These current trends in urban transport are essentially a result of our inability to get our basics right. We have been
investing on vehicle-friendly infrastructure, planning and designing inequitable mobility systems, which are unable
to ensure safety and security on roads and public transport, and are unable to ensure even the basic needs in terms
of universal access.
While many may not accord the situation as alarming, it may be unwise for the city planners and managers not to
take this seriously. We are witnessing daily vehicle registration levels of about 1,400 vehicles in Delhi, around 1,000
in Bangalore and are reaching similar levels in cities like Pune, Chennai, etc. We could very well reach the level of
about 400 million vehicles in the next 20 years, almost a four-time increase as compared to today. What could be
more alarming? We cannot have the luxury of expanding our roads forever, which means that we cannot let the
growth of vehicular population continue at the current rates. We need to put a curb on it, which implies that we
urgently need sustainable mobility systems - systems that do not promote private motorization of this extent.
Sustainable mobility systems aim at moving people, not vehicles, and hence focus should be more on the
development of mass transport systems and non-motorized transport infrastructure, rather than vehicle friendly
infrastructure. Sustainable mobility systems are usually environment-friendly and provide adequate, quality,
affordable, reliable and comfortable mobility options to all, and promote safety and security for the commuters. We
can achieve such systems if we judiciously start planning the urban and transport systems. We need to work
towards right policies, programs and investments schemes. To some extent, the National Urban Transport Policy has
done that at the National level. We need similar policies, programmes and plans at state and city level too. We need
to ensure that the investments are channelized towards the right kind of infrastructure projects and pass all checks
of environmental impacts, safety, and accessibility, among others. The goal should be to provide 'mobility for all'.
MODELING ON GRIHA
Similar to the goal of attaining sustainable mobility, urban India will also need to look at the way it plans, designs,
constructs and uses its buildings. TERI recommends that all States adopt GRIHA as a framework to achieve resource
efficiency in the built environment. This would help streamline approvals for real estate projects, ensure regular
monitoring, follow-up on environmental clearances and compliances, during the course of construction and
operation of building projects. It will also facilitate a two-way communication between the authorities and projects;
and, essentially, help move away from the 'check the boxes' approach of EIA, provide relief to projects having to
move from pillar to post for seeking approvals, and ensure execution of projects in a time-bound manner. TERI also
proposes higher taxes on inefficient appliances/ buildings, developing open and transparent institutional
mechanisms at the State and Municipal levels to facilitate implementation of resource efficiency thorough GRIHA.
Some level of disincentives must be constituted to prevent mainstreaming of defaulters. Resource efficiency must be
integrated in all schemes and initiatives around affordable housing. Above all, our decision makers need to be
sensitized and educated on various aspects of sustainable development.
5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda
http://www.teriin.org/featured_services/may/index.php 10/13
TRANSPORT SURGE
Transport sector in Indian cities is witnessing unprecedented motorization. The number of personal vehicles added
to the Indian roads in the last decade has been much higher as compared to the total number of cars and two-
wheelers added in the first five decades since independence. Much of this growth has happened in the urban
centres with cities like Delhi reaching car ownership level of 157 cars per 1,000 population followed by Chennai
(127) and Coimbatore (125), Pune (92), Thane (98), Bangalore (85), and Hyderabad (72). Growth in two-wheeler
population in the cities has also been significant and is primarily a result of lack of adequate and quality public
transport in our cities. The public transport share in our largest cities was in the range of 60 to 80 per cent in 1990s;
this however had declined to 30 to 50 per cent by the end of the last decade. Non-motorized transport, the most
used transport mode in our cities has also witnessed a similar decline. The result is what we witness on our roads,
congestion, environmental pollution and accidents, all of which have a huge cost for Indian society. Road accidents
alone are estimated to cost 3 per cent to India's GDP, a trend that would have to be reversed, given that we hold the
dubious distinction of having the maximum number of road accident deaths in the world. Urban transport in India
undoubtedly needs urgent action in a mission mode.
TERI RECOMMENDS: that all cities above 0.5 million population should be provided with adequate and quality bus
transport systems. Mega cities above five million should provide city-wide metro rail based transit systems. TERI
also strongly recommends that all urban centres in the country, small or large, should compulsorily provide facilities
for pedestrians and non-motorized transport users. Million-plus cities should also put together clear action plans for
implementing transport demand management tools that encourage use of sustainable modes of transport. Urban
transport authorities, as envisaged in the National Urban Transport Policy should be established in all 0.5 million-
plus cities and should lead the agenda for sustainable mobility in their cities.
ENERGIZING GROWTH
Energy security needs to figure prominently at the core of India's development agenda to ensure that
adequate and affordable clean energy forms can be made available to fuel India's growth path in the coming
decades
By Ritu Mathur
With a rank of 136 among 186 countries in terms of its human development index, India still has a long way to go in
developing adequate infrastructure and services. Millions of people still continue to live without electricity
connections for lighting and are largely dependent on traditional energy forms for meeting their cooking needs. As
per 2011 census, there were around 32.7 per cent un-electrified households in India. Moreover, several households
that have an electricity connection and ability to pay for the services are deprived of reliable and continuous
electricity supply, impacting livelihoods and household welfare. Despite the increase in availability, India faced an
energy deficit of 8.7 per cent and a peak deficit of 9 per cent in 2012-13. However, the much-needed rapid and
inclusive growth of the economy would inevitably call for significantly higher levels of energy use. Energy security
therefore needs to figure prominently at the core of India's development agenda to ensure that adequate and
affordable clean energy forms can be made available to fuel India's growth path in the coming decades.
TERI's analysis indicates that under a Reference Scenario, India's total energy requirements would increase three
folds from the current level by 2031, with coal and oil continuing to contribute a large part of this energy need.
Further, it is anticipated that even with best efforts to improve efficiencies and enhance availability of domestic
fuels, India's energy import dependency is likely to continue increasing and remain high during the next few
decades. While India's oil import dependency could spiral from around 77 per cent at present to over 90 per cent by
2031, with growing concerns regarding the extractable reserves of coal apart from issues related with its quality and
transportation, coal imports are also expected to continue increasing. Consequently, the overall fossil fuel import
dependency in the Reference Scenario is also expected to increase to 74 per cent by 2031. India's net import bill was
around 41 per cent of the country's export earnings in 2012/13, and in a scenario of rising and volatile energy prices,
India's vulnerability on account of high energy import bills could increase significantly in future.
Energy efficiency and renewables could play a significant role in contributing towards reducing fossil fuel imports.
While generation of electricity from renewable sources can play a significant role in meeting the growing power
needs of the economy and in minimizing energy imports, it also has co-benefits in terms of reducing carbon
footprints and ensuring a cleaner environment.
Energy efficiency measures can be implemented on the energy supply as well as demand side across the energy
intensive end-use consuming sectors. For instance, in the transport sector, key interventions include introduction of
energy efficiency standards and encouraging use of public transport. Within the industrial sector, the Micro, Small
and Medium Enterprise (MSME) segment is associated with low efficiencies due to several barriers such as use of
obsolete technologies, non-availability of readymade technological solutions, low level of awareness/information
availability, non-availability of technology providers at local/cluster level, relatively high cost of technologies and
poor access to finance. It is estimated that there is a possibility to reduce energy consumption by up to 25-30 per
cent by introducing energy efficiency measures in these sectors.
5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda
http://www.teriin.org/featured_services/may/index.php 11/13
However, while possibilities of energy savings and moving towards cleaner and more efficient energy forms exist,
the large-scale deployment of renewables and its utilization for electrification would entail large capital
investments. Similarly, deployment of energy efficiency measures, in the transport sector for example, could call for
a much larger contribution of government budgetary support.
Rational energy pricing that promotes competition, and reduces distortions such that consumers are provided the
right price signals for making efficient energy choices needs to be adopted. This can be achieved by designing
effective and transparent subsidies, delivered at the end of supply chain to facilitate energy access. Taxes and
subsidies on energy resources and energy using appliances/equipment must be designed to support energy
efficiency and reflect externality costs.
There is a need for implementing innovative pricing mechanisms that reflect true costs of alternative options and
induce efficiency in energy production and consumption. Further institutional changes and regulatory mechanisms
geared towards creating a more enabling environment and ensuring constant compliance and progress are
warranted. A co-ordinated approach cutting across various energy sub-sectors (coal, oil, gas, renewable, electricity
etc.) would be instrumental in pushing forward a coordinated and integrated energy policy for the country. It is
proposed that a Cabinet of Secretaries (CoS) be set up with representation from the ministries concerned to define
policy and address all issues in an integrated manner. To ensure this, there is a need to gradually move towards a
single energy regulator. It is envisaged that the structure for Single Energy Regulatory Commission is such that the
existing energy sub-regulators would automatically become a part of the Commission at the member level. They
would assume advisory roles and their active participation is essential to ensure the smooth co-ordination across
sectors as well as to ensure a link between the functioning of the energy regulator with their respective sub-sectors.
RENEWABLE SOLUTIONS
The government needs to provide more incentives and more pro-active to cover vast populations with
renewable energy
By Shirish S Garud
Power generation from renewable sources is on the rise in India. The share of renewables in the total energy mix
reached 12.3 per cent in 2013. India has total installed capacities about 30177.9 MWe and 973.13 MWe for grid-
interactive power and off-grid/captive power respectively. Currently, wind accounts for about 67.5 per cent of the
capacity with 20298.23 MWe installed capacity and India is fifth largest wind energy producer in the world. Small
hydro power and bagasse-based cogeneration are second and third largest contributors with installed capacities of
3774.15 MWe and 2512.88 MWe respectively. Solar power generation is fourth largest contributor with installed
capacity of 2208.36 MWe, which saw additions of about 971 MW in the last year. The Government of India has set a
renewable energy capacity addition target of 29.8 GW for the 12th Five Year Plan, taking the total renewable
capacity to almost 55 GW by 2017. The addition includes 15 GW from wind, 10 GW from solar, 2.7 GW of biomass
and 2.1 GW from small hydro technology.
WIND POWER
India has been a pioneer in the wind energy based power generation in Asia since the 1990s. The success of the
Indian wind market can be attributed to the quality of wind resource in India and various government initiatives. The
wind resource in India is concentrated in nine states. C-WET resource assessment programme has estimated
potential for wind power for these nine states. The estimates are based on the assumption that one per cent of the
state's land area is available for wind installations and land requirement of about 12 hectares per MW installation.
The total wind potential of India is estimated to be about 49 GWe (at 50 m hub height to 102.1 GW (at 80 m hub
height) with Karnataka, Gujarat and Andhra Pradesh as the leading states. The assessment also indicates significant
potential in Northern and North-eastern parts of the country. Also, systematic assessment needs to be done to
determine the offshore wind potential. With total installations of 20298.23 MW, it can be seen that India has
realized only about 42 per cent of the total potential.
In recent times, wind sector has suffered due to withdrawal of GBI (generation based incentive) and AD (Accelerated
Depreciation). While GBI has been reinstated after a gap of more than a year, AD is yet to be reinstated. TERI
proposes that Wind Mission should be launched as early as possible, consistent long-term policy is required for
stable business environment, and, land for wind project should be allotted on priority basis.
SOLAR POWER
Solar is important and comparatively underutilized energy resource in India with a potential to supply both grid-
connected and off-grid power. India has 300 sunny days per year on average and receives average annual radiation
of 1600 - 2200 kWh/m2, leading to annual estimated potential of 6 billion GWh. To properly assess this vast
potential, the Ministry of New and Renewable Energy (MNRE) has launched Solar Radiation Resource Assessment
initiative to develop solar atlas quantifying solar radiation availability throughout the country.
5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda
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There are two technologies for power generation from solar energy, namely solar photovoltaic (PV) and concentrated
solar power (CSP). India has installed a total of 2208.36 MW of solar PV and 50 MW of CSP as of January 31, 2014.
The government of India launched Jawaharlal Nehru National Solar Mission in 2009, which has given a huge boost
for solar energy based power generation. Solar energy can be also used effectively for catering to thermal energy
requirements. There are also various medium temperature applications such as cooking, cooling, and industrial
process heat applications. India has installed a total 7.51 million m2 of solar water heaters and about 30000 m2 of
solar concentrators for various medium temperatures. Research efforts are on to use solar thermal concentrators as
a booster options for thermal power plants.
TERI recommends that solar mission needs impetus and JNNSM targets can be advanced. There is need to make
domestic manufacturing competitive in global market and special incentives may be considered for this. Special
impetus must be given to indigenize solar thermal power generation technologies which have the advantage of
storage and dispatchability. Other solar applications should be promoted on priority basis to reduce fossil fuel
consumption.
BIO-ENERGY
Historically, traditional biomass has been a major source of household energy in India. In India, biomass provides
fuel to about 32 per cent of the total primary energy consumed and catering to almost 70 per cent of India's
population. Biomass is generally divided into three categories: biogas, solid biomass, and liquid biofuels. Biogas has
been mostly used for small, rural, and off-grid applications, and the majority of biogas units in India are providing for
individual households. MNRE has estimated that the annual biogas generation potential is about 17,340 million m3,
which could support the installation of up to about 12 million family-size biogas plants, while about 4.7 million
family-size biogas plants have been installed in India as on January 31, 2014.
Solid biomass availability in India is estimated at about 500 million tons per year, of which 120 -1Te50 million tons is
available for power generation. MNRE has estimated that about 18 GW of power can be generated from agro based
residues, including agricultural and forestry residues. In addition, there is potential to generate about 5 GW power
by raising dedicated plantations on two million hectares of land. A total of 4479.85 MW capacity has been installed
till January 31, 2014 using various technologies such as bagasse co-generation, biomass gasification, and co-
generation.
The Government of India approved National policy of Biofuels in 2009 to encourage alternative fuels to supplement
conventional fuels (gasoline and diesel) has a target of 20 per cent of biofuel blending (bio-ethanol and bio-diesel)
by 2020. The current total bio-ethanol production capacity in India is about 3.5 billion liters per year, sufficient for
five per cent blending in gasoline. India's commercial production of biodiesel is very small, and what is produced is
mostly sold for experimental projects and to the unorganized rural sector. Research and development efforts are on-
going for second generation biofuels from non-food sources such as Jatropha, Karanja and microalgae. India has
about 63 million hectares of wasteland of which about 40 million hectares can undertake Jatropha and karanja
plantations. Current biofuels policy targets jatropha and karnja plantations on 11.2 million hectares to produce 13.38
million tons of biofuels. TERI strongly feels that the government should focus on bioenergy development and the
Indian Bio-Mission must be launched.
SMALL HYDRO POWER
Hydropower projects of up to 25 MW capacity are classified as small-hydro in India. Small hydro projects have
potential to meet power requirements in remote and hilly areas, which are difficult and costlier to connect with the
national grid. The government of India has created a database of potential sites for small-hydro power (SHP)
projects, identifying 6,474 sites with an aggregate capacity of 19,749 MW. Uttaranchal, Jammu & Kashmir and
Arunachal Pradesh have the highest potential amounting to about 50 per cent of the total potential. The government
has also attracted private sector for active participation in this sector and aggregated capacity 0f 3774 MW has
been installed as on January 31, 2014. In addition to this, about 1,250 MW of projects are in progress. The
government needs to promote small hydro as major thrust area.
Above all, renewable energy finds applications in remote and rural areas in decentralized power and heating cooling
applications. These are important for providing access to modern energy to vast populations in rural areas. The
government should focus on these applications for overall inclusive growth and creating employment and income
generation opportunities in rural areas.
TERI proposes integrated renewable energy policy to mainstream renewables. A renewable energy law for larger
role for renewables in the energy sector with emphasis on renewable power being at the center-stage of the new
power policy. Priority must be given for allocation of land resources to renewable power projects. Policies must
address wider support to demonstration and adaptation of RE technologies developed at global research centers.
The focus must be on faster implementation of the National Solar Mission and development of bioenergy and wind
energy sector through state level policy initiatives. As far as institutional reforms are concerned, TERI proposes
strengthening of the Ministry of New and Renewable Energy, a larger role for research centers in renewable energy,
new initiatives for RE industry development with special incentives for green energy, a green energy corridor
development and creation of incubation centers with international research centers for promoting renewable energy
5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda
http://www.teriin.org/featured_services/may/index.php 13/13
basic and technology research and development.
PLEASE NOTE:
While publishing the articles, please give acknowledgement to TERI Feature Service at the end of the article.
(For more information, write to S S Jeevan (ss.jeevan@teri.res.in) /Zainab Naeem (zainab.naeem@teri.res.in)
The Energy and Resources Institute (TERI)
Darbari Seth Block
IHC Complex
Lodhi Road, New Delhi
Phone : 91-11-24682161
Fax : 91-11-24682144 / 45

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How India's new government can achieve sustainable development for all

  • 1. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 1/13 The Energy and Resources Institute Creating Innovative Solutions for a Sustainable Future Search Go Feature Service Latest News and Views on Sustainable Development THE COSTS OF DEVELOPMENTAL INACTION TERI'S AGENDA FOR THE NEW GOVERNMENT AND HOW IT CAN REINVENT SUSTAINABLE DEVELOPMENT FOR ALL As we gear up to welcome the New Government, the high expectations of the electorate will test the functioning of the new dispensation. To achieve tangible results in the first 100 days, the new Government will have to perform beyond expectations in the field of sustainable development, which broadly covers fundamental issues such as water, energy and food security. Here, it is important that the New Government should focus on specific policies and institutional frameworks which will help achieve quick results and reverse the current trend. The Energy and Resources Institute (TERI) has come up with an advisory that addresses not only the way forward, but deals with the critical aspect of the cost of inaction. Along with chasing targets, we need leapfrog measures, which will cover the "un-served" populations. Says Dr R K Pachauri, Director-General, TERI: "Environmental issues are often presented within the framework of conflict between environment and development. What is attempted here is a refreshing departure which provides a price tag on the damage that poor environmental quality and degradation is imposing on human society and how substantially lower-cost action can avoid this burden. What is included here are sectors largely within urban areas, but a similar analysis and presentation is essential for rural environmental degradation as well. Undoubtedly, that would be a far more complex challenge analytically, but given the large population in our villages, ignoring such analysis would be at the cost of ignoring the welfare of two-thirds of our population." TERI has proposed few quick solutions which are basic and easily implementable. The measures will not only bring down the costs of inaction, but improve the lives of millions in a sustainable manner. Here are some key issues that need to be addressed by the new government. WATER In India, more than 73 million workdays are lost each year on account of water-borne infections. Economic studies conducted at country level by the World Bank over the past 15 years have shown that impacts resulting from poor sanitation and hygiene cost countries between 0.5 per cent and 7.2 per cent of annual Gross Domestic Product. Under the Economics of Sanitation Initiative (ESI), the economic costs due to poor sanitation and hygiene have been shown to exceed 5 per cent of GDP in India. India suffers economic losses from poor sanitation of Rs 5,400 crore each year. India has been successful in providing improved water supply facilities for more than 89 per cent of rural households and 96 per cent of urban households. However, for the rural sanitation sector, only 24 per cent used improved sanitation facilities, while in urban areas, 60 per cent used improved sanitation facilities. The most disturbing trend has been that 50 per cent of people are still resorting to open defecation. The challenge now is how to provide higher levels of service with sustainable sources and systems that provide good quality water to a growing population. TERI RECOMMENDS: Development of 'Water and Sanitation Safety Plans' for Jal Boards, Urban Local Bodies and rural piped water supply and sanitation services could be made mandatory in order to maintain high standards in the sector. A high-level committee may be formed having representations from all the relevant Ministries, Boards, Water and Sanitation organizations and important stakeholders in order to ensure effective and efficient implementation of the water and sanitation safety plans. The existing tariff for water consumption for domestic use is fixed and not volume-based, which discourages the promotion of best practices for the water conservation as the users do not feel any responsibility in managing the resources. A differential tariff structure on volumetric basis is recommended. There is a need to address the core issues of establishing a standardized benchmark in water use efficiency, which would have technical as well as holistic explanations, and would be helpful in exploring the potential of establishing Home About TERI Research Projects Publications Events Newsroom Contact
  • 2. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 2/13 Read more Read more a 'Bureau of Water Efficiency'. The Bureau would be an autonomous institution with accountability and responsibility to cater to the demand-side management. An outlay of between Rs 2,72,377 crore and Rs 303165 crore is suggested for the 12th Five Year Plan for Rural Domestic Water Supply, including the component of National Rural Drinking Water Programme (NRDWP) for lagging states, special component for scheduled castes and scheduled tribes. This would be about 305 per cent of the actual allocation in the 11th Five Year Plan for the sector. The State outlay would be Rs 1,49,807 crore - a similar increase. This would be feasible for States also, considering the increase in the 11th Plan over the previous Plan. AIR POLLUTION More than 80 per cent of Indian cities, where monitoring was carried out, do not meet the prescribed standards of air quality. The particulate matter (PM) concentration have been found to be many times higher than the standards in several Indian cities like Delhi, Ghaziabad, Gwalior, Raipur, Kanpur etc. Moreover, it is not only big cities that show high concentrations, but smaller cities have also recorded extremely high values. Air pollution has been known to have grave consequences. About 620,000 mortalities have been estimated to occur annually in India that is attributable to ambient air pollution. Not only respiratory problems, the cardio- vascular impacts are also evident, and these problems are linked to deteriorating air quality. The World Bank has estimated the cost of damage caused by outdoor air pollution in India to be around Rs 1 lakh crore annually. This is about 1.7 per cent of the total GDP and clearly shows a dent in the economy caused by deteriorated air quality. TERI RECOMMENDS: Improvement in fuel quality and advancement of vehicular emissions norms is the key to reduce vehicular emissions. The emission reduction that can be accrued through the introduction of BS-VI fuel quality and vehicular norms can result in the reduction of 127,000 mortalities by 2030, and economic benefits ranging between Rs 3.9-6.7 lakh crore cumulatively till the year 2030. Benefits of implementation of these norms will soon outweigh the costs incurred on initial capital investments. Major institutional changes required include integration of efforts from multiple sectors as most of them are inter- linked, and a regulatory body on the lines of California Resources Board should be constituted. The body should be empowered to take sector specific decisions based on scientific knowledge for control of air pollution. Whereas, the policy changes suggest that the transport sector should move away from the current dual fuel policy in the country. Policies on subsides on kerosene and price differential for diesel also need to be reconsidered to reduce adulteration, and market shifts that are not environment friendly. The National Program on Improved Chulha should be revived with inclusion of latest research and technologies for control of indoor and outdoor air pollution due to biomass burning. WASTE The process of urbanization has not only increased municipal solid waste (MSW) generation, but also led to increasing quantity of domestic wastewater. Cities considered as engines of growth are also guzzlers of resources and today's mismanagement of resources is producing huge amount of wastes. The Central Pollution Control Board (CPCB) says that the annual generation of MSW is pegged at 62 million tonnes or 133,760 tonnes per day, of which only 25,884 tonnes per day is treated, while the rest are disposed on land requiring around 2,12,752 m3 of landfill space. The requirement of land during the next 20 years is estimated to be as high as 66,000 hectares (1,240 hectares per year). Inappropriate management of these waste adversely impacts the environment and ecology of the region, thereby contaminating human health. For example, the cost in terms of Disability Adjusted Life Years (DALY) of diarrhea for children from poor sanitation is estimated at Rs 500 crore. A similar study by the Water and Sanitation Programme of the World Bank using data for 2006 shows that the per capita economic cost of inadequate sanitation, including mortality impact in India, is Rs 2,180. TERI RECOMMENDS: The way to address waste mismanagement would be to build waste reduction strategies in overall waste management programmes, increase waste processing, maximize resource recovery, recycling and ensure that land requirement for ultimate disposal is minimized by adopting resource efficient processes. The suggested policy changes would include: A formal waste management policy addressing all the different diverse waste streams centered around elements of 3Rs (Reduce, Reuse, Recycle) and the need for closing the material use cycle, Incentive-based mechanism for enhancing/promoting waste reduction and recycling-based programmes, and, Mechanism for creation and promotion of market for recycled products. The suggested institutional changes would include: Integration of clean technology and waste minimization and pollution prevention schemes of Ministry of Environment and Forests to deal with waste-related issues in a holistic manner,
  • 3. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 3/13 Read more Read more To address the problem of indifference in sectoral ministries of environmental issues, environmental cells at the central and state level should be constituted. MoEF should sensitize these cells and also monitor their functioning, The Ministry of Urban Development, being the nodal Ministry dealing with issues related to urban solid and liquid wastes, needs to set up a dedicated cell for implementation of proposed waste management policy at the national level with similar cells to be constituted at the State level. GREEN INFRASTRUCTURE As per the XII Five Year Plan of India, urban India would need hefty investments towards meeting just the capital expenditure requirements of providing urban infrastructure. Capital expenditure requirement of nearly Rs 2,88,000 crore and Rs 99,000 crore will be required for meeting the infrastructure needs of urban transport and other sectors (water supply, sewerage, storm water drainage and solid waste management), respectively between 2012 and 2017. Given the financial situation of our urban local bodies and other urban agencies, meeting these investment requirements will not be easy and would need support of all stakeholders, including the private sector. Innovative financing methods for meeting infrastructure investment requirements will be critical. Equally important would be to create capacity amongst urban institutions to be able to select, plan, design and deliver infrastructure projects that are sustainable in the long run. The conventional approach of looking for short- term solutions to infrastructure gaps may not help address the challenges of infrastructure and would definitely not help in meeting the long-term vision of sustainable and green growth of urban areas, which essentially means urban growth that has least environmental footprint, is inclusive and which generates economic growth opportunities with minimum environmental and social impacts. Realizing such a model of growth for urban India would need a larger vision and a long-term sustainable urban development policy. This policy should look at a period of 20 to 30 years and should dwell on: projections for the nature of urban growth in future, expected challenges, sustainable and green solutions, and, essential requirements to achieve these solutions - capacity, institutions, and finances. Urban India will also need to look at the way it plans, designs, constructs and uses its buildings. TERI RECOMMENDS: With over two decades of experience on sustainable buildings, TERI has developed a robust rating system of green buildings, GRIHA (Green Rating for Integrated Habitat Assessment), which was adopted as the national rating system for green buildings by the Government of India in 2007. Consequently all buildings of Government of India and Public Sector Undertakings have mandated minimum GRIHA rating. Several State Governments including Delhi, Assam, Punjab and several corporations have adopted GRIHA. TERI calls upon all States to adopt GRIHA as a framework to achieve resource efficiency in the built environment. This would help streamline approvals for real estate projects, ensure regular monitoring, follow-up on environmental clearances and compliances, during the course of construction and operation of building projects. It will also facilitate a two-way communication between the authorities and projects; and, essentially, help move away from the 'check the boxes' approach of EIA, provide relief to projects having to move from pillar to post for seeking approvals, and ensure execution of projects in a time-bound manner. TERI also proposes higher taxes on non-compliant and inefficient appliances/buildings, developing open and transparent institutional mechanisms at the State and Municipal levels to facilitate implementation of resource efficiency thorough GRIHA. Some level of disincentives must be constituted to prevent mainstreaming of defaulters. Resource efficiency must be integrated in all schemes and initiatives around affordable housing. TRANSPORT: Road accidents alone are estimated to cost three per cent to India's GDP, a trend that would have to be reversed given that we hold the dubious distinction of having the maximum number of road accident deaths in the world. Urban transport in India undoubtedly needs urgent action in a mission mode. TERI RECOMMENDS: All cities above 0.5 million population should be provided with adequate and quality bus transport systems. Mega cities above five million should provide city-wide metro rail based transit systems. TERI also recommends that all urban centres in the country, small or large, should compulsorily provide facilities for pedestrians and non-motorized transport users. Million-plus cities should also put together clear action plans for implementing transport demand management tools that encourage use of sustainable modes of transport. Urban transport authorities, as envisaged in the National Urban Transport Policy, should be established in all 0.5 million- plus cities and should lead the agenda for sustainable mobility in their cities. ENERGY SECURITY As per 2011 census, there were around 32.7 per cent un-electrified households in India. Moreover, several households that had an electricity connection and the ability to pay for the services are deprived of reliable and continuous electricity supply, impacting livelihoods and household welfare. Despite the increase in availability, India faced an energy deficit of 8.7 per cent and a peak deficit of 9 per cent in 2012-13. TERI's analysis indicates that under a Reference Scenario, India's total energy requirements would increase three folds from the current level by 2031, with coal and oil continuing to contribute a large part of this energy need. Further, it is anticipated that even with best efforts to improve efficiencies and enhance availability of domestic
  • 4. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 4/13 Read more fuels, India's energy import dependency is likely to continue increasing and remain high during the next few decades. While India's oil import dependency could spiral from around 77 per cent at present to over 90 per cent by 2031, with growing concerns regarding the extractable reserves of coal apart from issues related with its quality and transportation, coal imports are also expected to continue increasing. Consequently, the overall fossil fuel import dependency in the Reference Scenario is also expected to increase to 74 per cent by 2031. India's net import bill was around 41 per cent of the country's export earnings in 2012/13, and in a scenario of rising and volatile energy prices, India's vulnerability on account of high energy import bills could increase significantly in future. TERI RECOMMENDS: Energy efficiency measures can be implemented on the energy supply as well as demand side across the energy intensive end-use consuming sectors. For instance, in the transport sector, key interventions include introduction of energy efficiency standards and encouraging use of public transport. Within the industrial sector, the Micro, Small and Medium Enterprise (MSME) segment is associated with low efficiencies due to several barriers such as use of obsolete technologies, non-availability of readymade technological solutions, low level of awareness/information availability, non-availability of technology providers at local/cluster level, relatively high cost of technologies and poor access to finance. It is estimated that there is a possibility to reduce energy consumption by up to 25-30 per cent by introducing energy efficiency measures in these sectors. There is a need for implementing innovative pricing mechanisms that reflect true costs of alternative options and induce efficiency in energy production and consumption. Further institutional changes and regulatory mechanisms geared towards creating a more enabling environment and ensuring constant compliance and progress are warranted. A co-ordinated approach cutting across various energy sub-sectors (coal, oil, gas, renewable, electricity etc.) would be instrumental in pushing forward a coordinated and integrated energy policy for the country. It is proposed that a Cabinet of Secretaries (CoS) be set up with representation from the ministries concerned to define policy and address all issues in an integrated manner. To ensure this, there is a need to gradually move towards a single energy regulator. It is envisaged that the structure for Single Energy Regulatory Commission is such that the existing energy sub-regulators would automatically become a part of the Commission at the member level. RENEWABLES Power generation from renewable sources is on the rise in India. The share of renewables in the total energy mix reached 12.3 per cent in 2013. India has total installed capacities about 30177.9 MWe and 973.13 MWe for grid- interactive power and off-grid/captive power respectively. Currently, wind accounts for about 67.5 per cent of the capacity with 20298.23 MWe installed capacity and India is fifth largest wind energy producer in the world. However, in recent times, wind sector has suffered due to withdrawal of GBI (generation based incentive) and AD (Accelerated Depreciation). While GBI has been reinstated after a gap of more than a year, AD is yet to be reinstated. TERI RECOMMENDS: TERI proposes that Wind Mission should be launched as early as possible. Consistent long- term policy is needed for stable business environment, and, land for wind projects can be allotted on priority basis. Solar is important and comparatively underutilized energy resource in India with the potential to supply both grid- connected and off-grid power. India has 300 sunny days per year on average and receives average annual radiation of 1600 - 2200 kWh/m2, leading to annual estimated potential of 6 billion GWh. To properly assess this vast potential, the Ministry of New and Renewable Energy has launched the Solar Radiation Resource Assessment initiative to develop solar atlas quantifying solar radiation availability throughout the country. TERI proposes integrated renewable energy policy to mainstream renewables. A renewable energy law for larger role for renewables in the energy sector with emphasis on renewable power being at the center-stage of the new power policy. Priority must be given for allocation of land resources to renewable power projects. Policies must address wider support to demonstration and adaptation of RE technologies developed at global research centers. The focus must be on faster implementation of the National Solar Mission and development of bioenergy and wind energy sector through state level policy initiatives. As far as institutional reforms are concerned, TERI proposes strengthening of the Ministry of New and Renewable Energy, a larger role for research centers in renewable energy, new initiatives for RE industry development with special incentives for green energy, a green energy corridor development and creation of incubation centers with international research centers for promoting renewable energy basic and technology research and development. Solar mission needs impetus and JNNSM targets can be advanced. There is need to make domestic manufacturing competitive in global market and special incentives may be considered for this. Special impetus must be given to indigenize solar thermal power generation technologies which have advantage of storage and dispatchability. Other solar applications should be promoted on a priority basis to reduce fossil fuel consumption. Solid biomass availability in India is estimated at about 500 million tons per year, of which 120 -1Te50 million tons is available for power generation. The Ministry of New and Renewable Energy has estimated that about 18 GW of power can be generated from agro based residues including agricultural and forestry residues. In addition to this, there is potential to generate about 5 GW power by raising dedicated plantations on two million hectares of land. TERI strongly feels the Union government should focus on bioenergy development and the Indian Bio-Mission should be launched.
  • 5. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 5/13 Read more WATER AND SANITATION In India, more than 73 million workdays are lost each year on account of water-borne infections. The government needs to allocate more resources and do comprehensive planning to provide clean water and improve sanitation facilities to poor populations By Girija K Bharat and Anshuman India has been successful in providing improved water supply facilities to more than 89 per cent of rural households and 96 per cent of urban households. However, for the rural sanitation sector, only 24 per cent use improved sanitation facilities, while in urban areas, about 60 per cent use improved sanitation facilities. The most disturbing trend is that 50 per cent of people are resorting to open defecation. The challenge now is how to provide higher levels of service with sustainable sources and systems that provide good quality water to a growing population. The number of piped water supply systems in rural areas is rapidly increasing, because people want a higher level of service. In 2010, about one-third of rural households already used piped water, and about one third of these had house connections. However, it should be noted that there are significant inequalities between the rich and the poor and this needs to be addressed while moving forward. For example, while about 32 per cent of the rich people have piped connections in their premises, only about one per cent of the poorest have this facility. The trends in sanitation sector have been much worse. As India becomes more urbanized, issues of discharge of sewage are bound to increase, which will compound the problem arising from climate change. Challenge of sewage collection and treatment will increase as we bring in urban sanitary facilities at the household level. Indian cities already have a huge backlog of incomplete or poorly maintained sewerage systems. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched on a mission mode for a period of seven years (2005-12) to bring about planned urban development in India. It has drawn attention of the policymakers at all three tiers of the government on the challenges faced by the cities and towns of India. It has succeeded in getting the state and city governments to commit to reforms in governance, but these commitments have not always been kept. The service level benchmarks and JNNURM 1 have made a good beginning in reforming the urban water supply sector. The proposed JNNURM 2 offers an opportunity to bring in further urban reforms and make more investments in urban water supply. THE INVESTMENTS NEEDED PRESENTLY Water security planning requires annual investments in new schemes and works, operation and maintenance, replacement and expansion as well as support activities like water quality testing and IEC. Investment in sewerage must match investment in water supply. In India, leakage and inefficiencies in the system waste nearly 50 per cent of usable water. Recycling and reusing of wastewater, reducing water use and enhancing water use efficiency, must become a part of water-sewage system planning, in order to reduce net water demand. A total outlay of between Rs. 2,72,377 crore and Rs.303165 crore is suggested for the 12th Five Year Plan (FYP) for Rural Domestic Water Supply, including the component of National Rural Drinking Water Programme (NRDWP) for lagging states, Special Component for Scheduled Castes and Scheduled Tribes, Support activities and Sustainability.
  • 6. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 6/13 This would be about 305 per cent of the actual allocation in the 11th FYP for the sector. The State outlay would be 149,807 crore, which is a similar increase. In India, the 12th Five-Year Plan has accorded a high priority to the sanitation sector. Allocations for rural sanitation increased from Rs. 65,400 million in the previous plan to Rs.343,770 million in the 12th plan, which is a jump of 425 per cent. The higher budgetary allocation has coincided with a transformation of the national rural sanitation scheme -Total Sanitation Campaign (TSC) to the Nirmal Bharat Abhiyan (movement for safe sanitation). While TSC focused on motivating individual households to build toilets, NBA shifts the focus to sanitation programmes focusing on the usage of toilets. The shift follows India's latest 2011 Census findings that only 30.7 per cent of rural households in India have access to toilets. THE ECONOMIC COSTS OF INACTION In India, more than 73 million workdays are lost each year on account of water-borne infections. The fundamental causes of India's tardy progress on the drinking water and sanitation fronts are high population growth, rapid urbanisation, poor sector governance, low sectoral capacity, inadequate accountability mechanisms, and insufficient expenditure on operation and maintenance. The economic costs of not investing in water and sanitation are very significant. Economic losses as a result of poor sanitation and inadequate water supply between 0.7 per cent and 4.3 per cent of Gross Domestic Product (GDP) between regions, or 1.5 per cent globally. Economic studies conducted at country level by the World Bank during the past 15 years have shown that impacts resulting from poor sanitation and hygiene cost countries between 0.5 per cent and 7.2 per cent of annual GDP. Under the Economics of Sanitation Initiative (ESI), the economic costs due to poor sanitation and hygiene have been shown to exceed five per cent of GDP in India. India suffers an economic loss from poor sanitation of Rs 3240 billion a year. An important finding of many of these studies is that the main contributors to the benefits of sanitation and water supply are not just the health benefits. For example, the global study found that the value of time savings from closer access and reduced queuing for sanitation and water supply facilities accounted for more than 70 per cent of total benefits. This provides a clear case for investing in water supply and sanitation services as opposed to only in health measures like vaccination programs against water-borne diseases. WHAT POLICY CHANGES ARE REQUIRED? Many policies exist at the National as well as State Government level to deal with water quality, water supply and sanitation issues. However, the implementation of these policies is ineffective due to multiple factors. There is an urgent need to ensure effective implementation of such policies by enforcing water quality standards on private water suppliers. Development of 'Water and Sanitation Safety Plans' for Jal Boards, ULBs and rural piped water supply and sanitation services should be made mandatory in order to maintain high standards in the sector. A high-level committee may be formed with representations from relevant Ministries, Boards, Water and Sanitation organizations and important stakeholders in order to ensure effective and efficient implementation of water and sanitation safety plans. The existing tariff for water consumption for domestic use is fixed and not volume-based, which discourages the promotion of best practices for the water conservation as users do not feel any responsibility in managing the resources. A differential tariff structure on volumetric basis is recommended. There is a need for systems to enhance water use efficiency, by water auditing (assessment of water use), reducing non-revenue water, adopting water conservation measures such as recycling, reusing and reducing water. These could be carried forward by participatory approach to management of water resources. WHAT INSTITUTIONAL CHANGES ARE REQUIRED? There is a need to churn out the core issues of establishing a standardized benchmark in water use efficiency, which would have technical as well as holistic explanations and would be helpful in exploring the potential of establishing a 'Bureau of Water Efficiency'. The Bureau would be an autonomous institution with accountability and responsibility to cater to the demand side management. In order to effectively implement the National Water Policy in States, the State's Water policies could be made mandatory. It is also recommended to create a separate department in all the States to handle rural water supply and sanitation independently. This would require more allocation of funds for sustainability of water resources as well as sustaining sanitation in India. There is a need for re-looking at the Water and Sanitation schemes with respect to climate change. This is of vital importance as there is a fear of failing of the sectoral schemes in future, if due attention is not given to the impacts of climate change on the quality and quantity of water resources and sanitation infrastructures. Additionally, capacity building of government personnel at all levels is needed so that they are well equipped to understand the new policies of the government.
  • 7. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 7/13 CLEARING THE POLLUTED AIR The introduction of BS-VI fuel quality and vehicular norms can result in the reduction of 127,000 mortalities by 2030 By Sumit Sharma India is a fast developing economy and has shown unprecedented growth in the last two decades. While the population has grown 3.3 times since 1950, the index of production has grown 50 times, and vehicles grew by a mammoth 460 times in the same period. There are 53 cities in India, each of them accommodating more than 1 million people. The number of million-plus urban agglomerates is expected to grow to 85 by 2025 and 125 by 2050. The economic growth, growing number and sprawl of cities has fuelled an unprecedented growth of personal vehicles in India. The aspirations to own personal vehicles are also reinforced by limited availability of public transport which is comfortable, secure and cost-effective. Growth of vehicles is far more in cities than in rural regions, leading to congestion and emissions of air pollutants which are known to affect the human health severely. Other than growing mobility demands, industrial production, electricity generation, and other factors have together led to the deterioration of air quality in many regions of the country. While, urban centers deal with toxic emissions from these sources, more than 80 per cent of rural households where biomass is used for cooking are facing the consequences of high indoor air pollution. More than 80 per cent of Indian cities, where monitoring is carried out, do not meet the prescribed standards of air quality. The particulate matter (PM) concentration have been found to be many times higher than the standards in several Indian cities like Delhi, Ghaziabad, Gwalior, Raipur, Kanpur etc. Moreover, it is not just big cities that show high concentrations, but smaller cities have also recorded extremely high values. While, some measures have been taken in a few cities, they are found to be inadequate to arrest the growth of pollution in the long run. Delhi showed a slight decline in pollution during 2004-2007, when a number of measures (introduction of fuel quality and vehicle emissions norms, CNG, Metro Rail Project, Shifting of industries, etc) were taken. But thereafter, the trend has been increasing and currently the levels are unprecedented and are about four times the annual standards. High growth in the number of vehicles has also led to emissions of other pollutants like NOx (oxides of Nitrogen) in many cities. Air pollution has been known to have grave consequences. 620,000 mortalities have been estimated to occur annually in India that is attributable to ambient air pollution. Not only respiratory problems are linked to deteriorated air quality, the cardio-vascular impacts are also evident. The World Bank has estimated the total cost of damage caused by outdoor air pollution in India to be around Rs 1.1 lakh crore annually. This is about 1.7 per cent of the total GDP and clearly shows a dent in the economy caused by deteriorated air quality. Significant economic damage has also been caused due to decrease in crop -yields by the ground level Ozone formed through the reactions of air pollutants. Nationally, the aggregated relative yield loss of wheat and rice due to high ozone exposure amounts to 5.5 million tonnes in 2005, which could have fed 94 million people in India. The question is whether we can sustain our economic growth with a population base severely affected by respiratory and cardiovascular disorders and our crop-yields affected by pollution. There are serious steps to be taken to make a clear move towards achieving the air quality standards in a shorter term. Source apportionment studies at urban and regional scales are required to be carried out to ascertain the share of different contributing sources to draft sector specific strategies for control. Improvement in fuel quality and advancement of vehicular emissions norms is the key to reduce vehicular emissions. The emission reduction that can be accrued through introduction of BS-VI fuel quality and vehicular norms in the country can result in the reduction of 127,000 mortalities by 2030 and economic benefits ranging between Rs 3.9-6.7 lakh crore cumulatively till the year 2030. Benefits of implementation of these norms will soon outweigh the costs incurred on initial capital investments. On the industrial front, the enforcement of the prescribed standards is primary for control. Biomass cook—stoves programs need to be revamped and revived to reduce regional scale pollution as well as indoor air pollution in rural households. Overall, more effective planning and efficiency improvements in different sectors are required to reduce the demand for natural resources and corresponding emissions. INSTITUTIONAL CHANGES: Air pollution is linked with multiple sectors and hence dealt by a number of departments. However, the current situation demands integration of efforts. Considering the severity of the matter, a body on the lines of California Air Resources Board needs to be constituted which is empowered to take sector specific decisions based on the scientific knowledge for control of air pollution. The body should also be responsible for generating a scientific knowledge base for taking appropriate technical, management and policy decisions at different scales. POLICY CHANGES: A major policy change that is required in the transport sector is to move away from the current dual fuel policy in the country. Currently, just 20 cities are provided with BS-IV quality fuel and rest of the country remains at inferior quality of fuel leading to higher emissions. The current policy virtually treats the citizens of different regions unequally. Lower quality of fuel also does not allow the fitment of advanced emission control options. Policies should also be strengthened for enhancement of public transportation, in-use vehicle management, and promotion of non-motorized transport in the country. Policies on subsides on kerosene and price differential for diesel also need to be reconsidered to reduce adulteration and market shifts that are not environment friendly. Newer standards need to be developed and the existing ones need to be strictly enforced for both emission control and efficiency improvement in different sectors
  • 8. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 8/13 like industries, power plant and transport. The National Program on Improved Chulha needs revival with inclusion of latest research and technologies for control of indoor and outdoor air pollution due to biomass burning. DEALING WITH WASTE The way to address the adverse health impacts due to inadequate waste management would be to increase the processing, maximize resource recovery and recycling and ensure that land requirement for ultimate disposal is minimized by adopting resource efficient processes. By Suneel Pandey The process of urbanization has not only increased municipal solid waste (MSW) generation, but also led to increasing amounts of domestic wastewater. Cities considered as engines of growth are also guzzlers of resources and today's mismanagement of resources is producing huge amount of wastes. The Central Pollution Control Board (CPCB) says that the annual generation of MSW is pegged at 62 million tonnes or 133,760 tonnes per day, of which only 25,884 tonnes per day is treated, while the balance is disposed on land requiring around 2,12,752 m3 of landfill space. The requirement of land in the next 20 years is estimated to be as high as 66,000 ha (1,240 ha per year). So far as the domestic wastewater is concerned, it is estimated that about 38,000 million liters per day (MLD) of wastewater is generated in urban centers having a population more than 50,000 in India, according to the CPCB. The municipal wastewater treatment capacity developed so far in India is about 11,000 MLD, accounting for 29 per cent of wastewater generation in these two classes of urban centers. In addition to these conventional waste streams, Indian cities have to also deal with more complex waste streams such as waste from healthcare facilities, construction and demolition waste, electronic waste and industrial wastes from small household industries, which makes management of urban solid and liquid wastes highly challenging. Inappropriate management of these waste streams adversely impacts the environment and ecology of the region, thereby contaminating human health. For instance, the cost in terms of Disability Adjusted Life Years (DALY) of diarrhea for children from poor sanitation is estimated at Rs 500 crore. A similar study by the Water and Sanitation Programme of the World Bank using data for 2006 shows that the per capita economic cost of inadequate sanitation including mortality impact in India is Rs 2,180. The way to address waste mismanagement would be to build waste reduction strategies in overall waste management programmes, increase waste processing, maximize resource recovery, recycling and ensure that land requirement for ultimate disposal is minimized by adopting resource efficient processes. The suggested policy changes would include: A formal waste management policy addressing all the different diverse waste streams centered around elements of 3Rs (Reduce, Reuse, Recycle) and the need for closing the material use cycle, Incentive-based mechanism for enhancing/promoting waste reduction and recycling-based programmes, and, Mechanism for creation and promotion of market for recycled products. The institutional changes required would include: Integration of clean technology and waste minimization and pollution prevention schemes of Ministry of Environment and Forests to deal with waste-related issues in a holistic manner, To address the problem of indifference in sectoral ministries of environmental issues, environmental cells at the central and state level should be constituted. MoEF should sensitize these cells and also monitor their functioning, The Ministry of Urban Development, being the nodal Ministry dealing with issues related to urban solid and liquid wastes, needs to set up a dedicated cell for implementation of proposed waste management policy at the national level with similar cells to be constituted at the State level. TOWARDS GREEN INFRASTRUCTURE Capital expenditure requirement of nearly Rs 2,88,000 crore and Rs 99,000 crore will be required for meeting the infrastructure needs of urban transport and other sectors By Akshima Tejas Ghate and Priyanka Kochhar By 2032, urban India is expected to grow from about 380 million to 600 million and may contribute as high as 75 per cent share in the country's GDP. The overwhelming growth in urban India will bring along growth and development opportunities that may help address socio-economic gaps that exist today. This growth, however, will be accompanied with the colossal challenge of ensuring that the growth in urbanization is organized, well-planned, manageable, and above all sustainable! This essentially indicates the need for ensuring growth of cities and city infrastructure in a sustainable manner. Achieving this would not be easy.
  • 9. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 9/13 As per the XII Five Year Plan of India, urban India would need hefty investments towards meeting just the capital expenditure requirements of providing urban infrastructure. Capital expenditure requirement of nearly Rs 2,88,000 crores and Rs 99,000 crore will be required for meeting the infrastructure needs of urban transport and other sectors (water supply, sewerage, storm water drainage and solid waste management), respectively between 2012 and 2017. Given the financial situation of our urban local bodies and other urban agencies, meeting these investment requirements will not be easy and would need support of all stakeholders, including the private sector. Innovative financing methods for meeting infrastructure investment requirements will be critical. Equally important would be to create capacity amongst urban institutions to be able to select, plan, design and deliver infrastructure projects that are sustainable in the long-term. The conventional approach of looking for short- term solutions to infrastructure gaps may not help address the challenges of infrastructure and would definitely not help in meeting the long-term vision of sustainable and green growth of urban areas, which essentially means urban growth that has the least environmental footprint, is inclusive and which generates economic growth opportunities with minimum environmental and social impacts. Realizing such a model of growth for urban India would need a larger vision and a long-term sustainable urban development policy. This policy should look at a period of 20 to 30 years and should dwell on: projections for the nature of urban growth in future, expected challenges, sustainable and green solutions, and, essential requirements to achieve these solutions - capacity, institutions, and finances. Additionally, the policy should also reflect a clear sustainable agenda for urban sectors and provide a clear roadmap for development in each of the urban infrastructure sectors. Transport and urban buildings, for example, will be amongst the critical urban sectors that will need clear roadmaps, given that they have the highest contribution to the environmental footprint of cities. The gaps in these sectors will have to be identified and addressed from the sustainability perspective. In transport, for example, providing adequate and quality mobility options to the urban population will emerge as one of the key challenges that our cities will continue to face in the future. It will be equally important to address the current trends of explosive motorization and the associated urban transport problems, without which these would multiply manifold in the coming times. A sense of urgency in addressing various facets of urban transport and undertaking efforts for making it sustainable will be essential. The increasing dependence on private vehicles, declining share of public transport and non-motorized transport are some of the key trends that will have to be looked into from the sustainability perspective. These current trends in urban transport are essentially a result of our inability to get our basics right. We have been investing on vehicle-friendly infrastructure, planning and designing inequitable mobility systems, which are unable to ensure safety and security on roads and public transport, and are unable to ensure even the basic needs in terms of universal access. While many may not accord the situation as alarming, it may be unwise for the city planners and managers not to take this seriously. We are witnessing daily vehicle registration levels of about 1,400 vehicles in Delhi, around 1,000 in Bangalore and are reaching similar levels in cities like Pune, Chennai, etc. We could very well reach the level of about 400 million vehicles in the next 20 years, almost a four-time increase as compared to today. What could be more alarming? We cannot have the luxury of expanding our roads forever, which means that we cannot let the growth of vehicular population continue at the current rates. We need to put a curb on it, which implies that we urgently need sustainable mobility systems - systems that do not promote private motorization of this extent. Sustainable mobility systems aim at moving people, not vehicles, and hence focus should be more on the development of mass transport systems and non-motorized transport infrastructure, rather than vehicle friendly infrastructure. Sustainable mobility systems are usually environment-friendly and provide adequate, quality, affordable, reliable and comfortable mobility options to all, and promote safety and security for the commuters. We can achieve such systems if we judiciously start planning the urban and transport systems. We need to work towards right policies, programs and investments schemes. To some extent, the National Urban Transport Policy has done that at the National level. We need similar policies, programmes and plans at state and city level too. We need to ensure that the investments are channelized towards the right kind of infrastructure projects and pass all checks of environmental impacts, safety, and accessibility, among others. The goal should be to provide 'mobility for all'. MODELING ON GRIHA Similar to the goal of attaining sustainable mobility, urban India will also need to look at the way it plans, designs, constructs and uses its buildings. TERI recommends that all States adopt GRIHA as a framework to achieve resource efficiency in the built environment. This would help streamline approvals for real estate projects, ensure regular monitoring, follow-up on environmental clearances and compliances, during the course of construction and operation of building projects. It will also facilitate a two-way communication between the authorities and projects; and, essentially, help move away from the 'check the boxes' approach of EIA, provide relief to projects having to move from pillar to post for seeking approvals, and ensure execution of projects in a time-bound manner. TERI also proposes higher taxes on inefficient appliances/ buildings, developing open and transparent institutional mechanisms at the State and Municipal levels to facilitate implementation of resource efficiency thorough GRIHA. Some level of disincentives must be constituted to prevent mainstreaming of defaulters. Resource efficiency must be integrated in all schemes and initiatives around affordable housing. Above all, our decision makers need to be sensitized and educated on various aspects of sustainable development.
  • 10. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 10/13 TRANSPORT SURGE Transport sector in Indian cities is witnessing unprecedented motorization. The number of personal vehicles added to the Indian roads in the last decade has been much higher as compared to the total number of cars and two- wheelers added in the first five decades since independence. Much of this growth has happened in the urban centres with cities like Delhi reaching car ownership level of 157 cars per 1,000 population followed by Chennai (127) and Coimbatore (125), Pune (92), Thane (98), Bangalore (85), and Hyderabad (72). Growth in two-wheeler population in the cities has also been significant and is primarily a result of lack of adequate and quality public transport in our cities. The public transport share in our largest cities was in the range of 60 to 80 per cent in 1990s; this however had declined to 30 to 50 per cent by the end of the last decade. Non-motorized transport, the most used transport mode in our cities has also witnessed a similar decline. The result is what we witness on our roads, congestion, environmental pollution and accidents, all of which have a huge cost for Indian society. Road accidents alone are estimated to cost 3 per cent to India's GDP, a trend that would have to be reversed, given that we hold the dubious distinction of having the maximum number of road accident deaths in the world. Urban transport in India undoubtedly needs urgent action in a mission mode. TERI RECOMMENDS: that all cities above 0.5 million population should be provided with adequate and quality bus transport systems. Mega cities above five million should provide city-wide metro rail based transit systems. TERI also strongly recommends that all urban centres in the country, small or large, should compulsorily provide facilities for pedestrians and non-motorized transport users. Million-plus cities should also put together clear action plans for implementing transport demand management tools that encourage use of sustainable modes of transport. Urban transport authorities, as envisaged in the National Urban Transport Policy should be established in all 0.5 million- plus cities and should lead the agenda for sustainable mobility in their cities. ENERGIZING GROWTH Energy security needs to figure prominently at the core of India's development agenda to ensure that adequate and affordable clean energy forms can be made available to fuel India's growth path in the coming decades By Ritu Mathur With a rank of 136 among 186 countries in terms of its human development index, India still has a long way to go in developing adequate infrastructure and services. Millions of people still continue to live without electricity connections for lighting and are largely dependent on traditional energy forms for meeting their cooking needs. As per 2011 census, there were around 32.7 per cent un-electrified households in India. Moreover, several households that have an electricity connection and ability to pay for the services are deprived of reliable and continuous electricity supply, impacting livelihoods and household welfare. Despite the increase in availability, India faced an energy deficit of 8.7 per cent and a peak deficit of 9 per cent in 2012-13. However, the much-needed rapid and inclusive growth of the economy would inevitably call for significantly higher levels of energy use. Energy security therefore needs to figure prominently at the core of India's development agenda to ensure that adequate and affordable clean energy forms can be made available to fuel India's growth path in the coming decades. TERI's analysis indicates that under a Reference Scenario, India's total energy requirements would increase three folds from the current level by 2031, with coal and oil continuing to contribute a large part of this energy need. Further, it is anticipated that even with best efforts to improve efficiencies and enhance availability of domestic fuels, India's energy import dependency is likely to continue increasing and remain high during the next few decades. While India's oil import dependency could spiral from around 77 per cent at present to over 90 per cent by 2031, with growing concerns regarding the extractable reserves of coal apart from issues related with its quality and transportation, coal imports are also expected to continue increasing. Consequently, the overall fossil fuel import dependency in the Reference Scenario is also expected to increase to 74 per cent by 2031. India's net import bill was around 41 per cent of the country's export earnings in 2012/13, and in a scenario of rising and volatile energy prices, India's vulnerability on account of high energy import bills could increase significantly in future. Energy efficiency and renewables could play a significant role in contributing towards reducing fossil fuel imports. While generation of electricity from renewable sources can play a significant role in meeting the growing power needs of the economy and in minimizing energy imports, it also has co-benefits in terms of reducing carbon footprints and ensuring a cleaner environment. Energy efficiency measures can be implemented on the energy supply as well as demand side across the energy intensive end-use consuming sectors. For instance, in the transport sector, key interventions include introduction of energy efficiency standards and encouraging use of public transport. Within the industrial sector, the Micro, Small and Medium Enterprise (MSME) segment is associated with low efficiencies due to several barriers such as use of obsolete technologies, non-availability of readymade technological solutions, low level of awareness/information availability, non-availability of technology providers at local/cluster level, relatively high cost of technologies and poor access to finance. It is estimated that there is a possibility to reduce energy consumption by up to 25-30 per cent by introducing energy efficiency measures in these sectors.
  • 11. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 11/13 However, while possibilities of energy savings and moving towards cleaner and more efficient energy forms exist, the large-scale deployment of renewables and its utilization for electrification would entail large capital investments. Similarly, deployment of energy efficiency measures, in the transport sector for example, could call for a much larger contribution of government budgetary support. Rational energy pricing that promotes competition, and reduces distortions such that consumers are provided the right price signals for making efficient energy choices needs to be adopted. This can be achieved by designing effective and transparent subsidies, delivered at the end of supply chain to facilitate energy access. Taxes and subsidies on energy resources and energy using appliances/equipment must be designed to support energy efficiency and reflect externality costs. There is a need for implementing innovative pricing mechanisms that reflect true costs of alternative options and induce efficiency in energy production and consumption. Further institutional changes and regulatory mechanisms geared towards creating a more enabling environment and ensuring constant compliance and progress are warranted. A co-ordinated approach cutting across various energy sub-sectors (coal, oil, gas, renewable, electricity etc.) would be instrumental in pushing forward a coordinated and integrated energy policy for the country. It is proposed that a Cabinet of Secretaries (CoS) be set up with representation from the ministries concerned to define policy and address all issues in an integrated manner. To ensure this, there is a need to gradually move towards a single energy regulator. It is envisaged that the structure for Single Energy Regulatory Commission is such that the existing energy sub-regulators would automatically become a part of the Commission at the member level. They would assume advisory roles and their active participation is essential to ensure the smooth co-ordination across sectors as well as to ensure a link between the functioning of the energy regulator with their respective sub-sectors. RENEWABLE SOLUTIONS The government needs to provide more incentives and more pro-active to cover vast populations with renewable energy By Shirish S Garud Power generation from renewable sources is on the rise in India. The share of renewables in the total energy mix reached 12.3 per cent in 2013. India has total installed capacities about 30177.9 MWe and 973.13 MWe for grid- interactive power and off-grid/captive power respectively. Currently, wind accounts for about 67.5 per cent of the capacity with 20298.23 MWe installed capacity and India is fifth largest wind energy producer in the world. Small hydro power and bagasse-based cogeneration are second and third largest contributors with installed capacities of 3774.15 MWe and 2512.88 MWe respectively. Solar power generation is fourth largest contributor with installed capacity of 2208.36 MWe, which saw additions of about 971 MW in the last year. The Government of India has set a renewable energy capacity addition target of 29.8 GW for the 12th Five Year Plan, taking the total renewable capacity to almost 55 GW by 2017. The addition includes 15 GW from wind, 10 GW from solar, 2.7 GW of biomass and 2.1 GW from small hydro technology. WIND POWER India has been a pioneer in the wind energy based power generation in Asia since the 1990s. The success of the Indian wind market can be attributed to the quality of wind resource in India and various government initiatives. The wind resource in India is concentrated in nine states. C-WET resource assessment programme has estimated potential for wind power for these nine states. The estimates are based on the assumption that one per cent of the state's land area is available for wind installations and land requirement of about 12 hectares per MW installation. The total wind potential of India is estimated to be about 49 GWe (at 50 m hub height to 102.1 GW (at 80 m hub height) with Karnataka, Gujarat and Andhra Pradesh as the leading states. The assessment also indicates significant potential in Northern and North-eastern parts of the country. Also, systematic assessment needs to be done to determine the offshore wind potential. With total installations of 20298.23 MW, it can be seen that India has realized only about 42 per cent of the total potential. In recent times, wind sector has suffered due to withdrawal of GBI (generation based incentive) and AD (Accelerated Depreciation). While GBI has been reinstated after a gap of more than a year, AD is yet to be reinstated. TERI proposes that Wind Mission should be launched as early as possible, consistent long-term policy is required for stable business environment, and, land for wind project should be allotted on priority basis. SOLAR POWER Solar is important and comparatively underutilized energy resource in India with a potential to supply both grid- connected and off-grid power. India has 300 sunny days per year on average and receives average annual radiation of 1600 - 2200 kWh/m2, leading to annual estimated potential of 6 billion GWh. To properly assess this vast potential, the Ministry of New and Renewable Energy (MNRE) has launched Solar Radiation Resource Assessment initiative to develop solar atlas quantifying solar radiation availability throughout the country.
  • 12. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 12/13 There are two technologies for power generation from solar energy, namely solar photovoltaic (PV) and concentrated solar power (CSP). India has installed a total of 2208.36 MW of solar PV and 50 MW of CSP as of January 31, 2014. The government of India launched Jawaharlal Nehru National Solar Mission in 2009, which has given a huge boost for solar energy based power generation. Solar energy can be also used effectively for catering to thermal energy requirements. There are also various medium temperature applications such as cooking, cooling, and industrial process heat applications. India has installed a total 7.51 million m2 of solar water heaters and about 30000 m2 of solar concentrators for various medium temperatures. Research efforts are on to use solar thermal concentrators as a booster options for thermal power plants. TERI recommends that solar mission needs impetus and JNNSM targets can be advanced. There is need to make domestic manufacturing competitive in global market and special incentives may be considered for this. Special impetus must be given to indigenize solar thermal power generation technologies which have the advantage of storage and dispatchability. Other solar applications should be promoted on priority basis to reduce fossil fuel consumption. BIO-ENERGY Historically, traditional biomass has been a major source of household energy in India. In India, biomass provides fuel to about 32 per cent of the total primary energy consumed and catering to almost 70 per cent of India's population. Biomass is generally divided into three categories: biogas, solid biomass, and liquid biofuels. Biogas has been mostly used for small, rural, and off-grid applications, and the majority of biogas units in India are providing for individual households. MNRE has estimated that the annual biogas generation potential is about 17,340 million m3, which could support the installation of up to about 12 million family-size biogas plants, while about 4.7 million family-size biogas plants have been installed in India as on January 31, 2014. Solid biomass availability in India is estimated at about 500 million tons per year, of which 120 -1Te50 million tons is available for power generation. MNRE has estimated that about 18 GW of power can be generated from agro based residues, including agricultural and forestry residues. In addition, there is potential to generate about 5 GW power by raising dedicated plantations on two million hectares of land. A total of 4479.85 MW capacity has been installed till January 31, 2014 using various technologies such as bagasse co-generation, biomass gasification, and co- generation. The Government of India approved National policy of Biofuels in 2009 to encourage alternative fuels to supplement conventional fuels (gasoline and diesel) has a target of 20 per cent of biofuel blending (bio-ethanol and bio-diesel) by 2020. The current total bio-ethanol production capacity in India is about 3.5 billion liters per year, sufficient for five per cent blending in gasoline. India's commercial production of biodiesel is very small, and what is produced is mostly sold for experimental projects and to the unorganized rural sector. Research and development efforts are on- going for second generation biofuels from non-food sources such as Jatropha, Karanja and microalgae. India has about 63 million hectares of wasteland of which about 40 million hectares can undertake Jatropha and karanja plantations. Current biofuels policy targets jatropha and karnja plantations on 11.2 million hectares to produce 13.38 million tons of biofuels. TERI strongly feels that the government should focus on bioenergy development and the Indian Bio-Mission must be launched. SMALL HYDRO POWER Hydropower projects of up to 25 MW capacity are classified as small-hydro in India. Small hydro projects have potential to meet power requirements in remote and hilly areas, which are difficult and costlier to connect with the national grid. The government of India has created a database of potential sites for small-hydro power (SHP) projects, identifying 6,474 sites with an aggregate capacity of 19,749 MW. Uttaranchal, Jammu & Kashmir and Arunachal Pradesh have the highest potential amounting to about 50 per cent of the total potential. The government has also attracted private sector for active participation in this sector and aggregated capacity 0f 3774 MW has been installed as on January 31, 2014. In addition to this, about 1,250 MW of projects are in progress. The government needs to promote small hydro as major thrust area. Above all, renewable energy finds applications in remote and rural areas in decentralized power and heating cooling applications. These are important for providing access to modern energy to vast populations in rural areas. The government should focus on these applications for overall inclusive growth and creating employment and income generation opportunities in rural areas. TERI proposes integrated renewable energy policy to mainstream renewables. A renewable energy law for larger role for renewables in the energy sector with emphasis on renewable power being at the center-stage of the new power policy. Priority must be given for allocation of land resources to renewable power projects. Policies must address wider support to demonstration and adaptation of RE technologies developed at global research centers. The focus must be on faster implementation of the National Solar Mission and development of bioenergy and wind energy sector through state level policy initiatives. As far as institutional reforms are concerned, TERI proposes strengthening of the Ministry of New and Renewable Energy, a larger role for research centers in renewable energy, new initiatives for RE industry development with special incentives for green energy, a green energy corridor development and creation of incubation centers with international research centers for promoting renewable energy
  • 13. 5/14/2014 How new Indian government can reinvent sustainable development for all - TERI's Agenda http://www.teriin.org/featured_services/may/index.php 13/13 basic and technology research and development. PLEASE NOTE: While publishing the articles, please give acknowledgement to TERI Feature Service at the end of the article. (For more information, write to S S Jeevan (ss.jeevan@teri.res.in) /Zainab Naeem (zainab.naeem@teri.res.in) The Energy and Resources Institute (TERI) Darbari Seth Block IHC Complex Lodhi Road, New Delhi Phone : 91-11-24682161 Fax : 91-11-24682144 / 45