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Energy shortages in India have increased from about 7 per cent in 2003-04 to nearly 12 per cent in 2008-09, after nearly Rs 200,000 crore have been allotted to the power sector in annual plans covered in this period.
This situation prevails despite the major reform programmes that were announced in the early 1990s, the Electricity Regulatory Commission Act 1998 and the Electricity Act in 2003. In the time period between 1998-2003, on an average, the utility sector added approximately 4,000 mw of electricity capacity per annum, and in the period between 2003 to 2009, it added between 6,000-7,000 mw a year.
The Budget dashes the hopes generated in the run-up. The key issues concerning energy and environmental challenges were given a rather lukewarm treatment.
One of the burning issues that should have been resolved when oil prices slumped is petroleum pricing. Despite all the hype, recognition of India\'s import dependence and, in turn, sensitivity to international price fluctuations, the only big promise in the Budget was yet another expert group on the subject. The focus is only on petrol and diesel. It\'s time the government addressed LPG and kerosene subsidy as well. Even if we have to wait for a smart card system, before moving to an effective subsidy delivery system, the groundwork for these changes is needed.
The Budget of any government makes a powerful statement of its priorities and signals the political will for reform. World over, fiscal policy is addressing itself to environmental concerns through the introduction of eco-taxes, but more importantly by internalising the environmental consequences of expenditure budgets, taxes, subsidies and pricing policies across sectors.
The US House of Representatives on Friday passed the American Clean Energy and Security Act by a narrow margin of 17 votes. It still has one more test to pass, which would be when it is presented to the Senate for final approval. Everyone realises that this will not be a cakewalk and may result in further dilution of the Bill, which would obviously impact its contribution to climate change mitigation efforts.
In Singur, West Bengal, when several villagers protested against the takeover of their land by the state government, to be handed over to the Tatas, what they were afraid of was not that they would not get the compensation money, but that they would not benefit otherwise from the development. Their children would not get employment; they would have to move away from the area; and politicians would make money from the industrialists.
Today, international action on climate change is urgent and essential. Indeed, there can no longer be any debate about the need to act, because the Intergovernmental Panel on Climate Change (IPCC), of which I am chairman, has established climate change as an unequivocal reality beyond scientific doubt.
For instance, changes are taking place in precipitation patterns, with a trend toward higher precipitation levels in the world\'s upper latitudes and lower precipitation in some subtropical and tropical regions, as well as in the Mediterranean area.
The media has played a central role in spreading awareness on climate change over the past two years. I find this particularly satisfying because when I was elected vice-chair of the Intergovernmental Panel on Climate Change (IPCC) in 1997, I highlighted the importance of outreach for disseminating IPCC reports as rich sources of scientific knowledge on climate change.
The ministry of environment and forests got a new minister, Jairam Ramesh, who took charge just a few days before World Environment Day on June 5. Recognised for his penchant for infrastructure growth and the role of industry, it came as little surprise that most TV media channels on June 5 focused their debates on the prospects for India’s environment and forests under such a proponent of economic growth — especially when he was widely interpreted as having stated that the environment would not be an impediment to economic growth!
The first and most important change that the new government at the Centre ought to address is shifting the pattern of development itself. Prime Minister Manmohan Singh is aware of recent trends that distort the very concept of sustainable development, essentially through blind aping of everything that defines lifestyles in the developed countries. The unregulated growth of shopping malls, each guzzling several megawatts of electricity; the unsustainable exploitation of our groundwater resources, driven essentially by heavy subsidies on the price of electricity for farmers; and incursions into tribal areas and agricultural or forest lands for setting up industrial projects all of these violate the very fundamentals of sustainable development.
Sure, it was a long process, but the cabinet that finally emerged and the ministers occupying the key posts, which could have a significant impact on development, give us a reason to cheer. They make us believe that when the government says that the focus in their second term will be on inclusive growth, strengthening the infrastructure sector and boosting livelihood opportunities for the poor, it will happen. For the sake of the future of India’s millions, it must happen.