观察家研究基金会-绿化势在必行：印度各州如何促进可持续工业（英文）-2021.5-32正式版

OccasionalPaper

IssueNO.316MAY2021

©2021ObserverResearchFoundation.Allrightsreserved.Nopartofthispublicationmaybereproduced,copied,archived,retainedortransmittedthroughprint,speechorelectronicmediawithoutpriorwrittenapprovalfromORF.

TheGreeningImperative:

HowIndianStatesAre

PromotingSustainable

Industry

AakritiRanaandMananThakkarAbstract

Withnaturalresourcesbeingexploitedbeyondscopeofregeneration,excessivepollutantsaccumulatinginthebiosphere,andecosystemsandbiodiversityundergoinglife-threateningdegradation,industrialpoliciesthatsteerinvestmenttowardsagreenereconomyhavebecomeanimperative.Thispaperexaminesthegreencomponentoftheindustrialpoliciesof14Indianstateswhichhavebeenfoundtoberesponsibleformorethan80percentofmanufacturingsectorpollutioninthecountry.Itidentifiesthegapsinthegreeninitiativessuggestedinthesepolicies,bothindesignandimplementation.

Attribution:ArchitAakritiLohani,Ranaand“CounteringMananThakkar,Misinformation“TheGreeningandHateImperative:SpeechOnline:HowIndianRegulationStatesandAreUserPromotingBehavioural

SustainableIndustry,”ORFOccasionalPaperNo.3162021,May2021,ObserverResearchFoundation.

Change,”ORFOccasionalPaperNo.296,January ObserverResearchFoundation.

012

Introduction

India’sindustrialdevelopmentstorystartedsoonafterIndependencewiththeIndustrialPolicyResolution1948settingthedirection.TheIndustrial(DevelopmentandRegulation)Actof1958followed,markingapathwayforimplementingindustrialpolicies.Sofar,industrialpolicyhasfocusedmainlyonsustainedgrowthinproductivity,optimal

utilisationofhumancapital,andflexibilityinadjustingtomarkets.Increasingly,itisbecomingimperativeforsuchpolicytoconsidersustainabilityaswell.

Uncheckedindustrialproduction,inappropriatewastedisposal,andoverexploitationofnaturalresourceshaveledtoexcessivepollutionandenvironmentaldegradation.Theimpactontheearth’sfutureismassiveandcouldbeirreversible.Industriescontributearoundone-fourthofIndia’stotalgreenhousegas(GHG)emissions.WhileIndia’sgrossdomesticproduct(GDP)increasedby357percentbetween1990and2014,itsGHGemissionsalsoroseby180percent.RelativetoGDP,IndiaemitstwiceasmuchGHGsastheworldaverage.1ThereisthusagreatneedforstricterreformsinenergyuseinIndiaandbetterdisposalofindustrialandagriculturalwaste.India’sindustriesmustgogreenintheirproductionmethodsandenergyconsumption.

TheCentreandstategovernmentsneedtocometogethertoensureenergyefficiencyandconservationandsupportthesettingupofbetterinfrastructurefornon-conventionalenergygenerationandtransmission.India’sindustrialproductionmustbeputonthesustainablegrowthpath.WhiletherehavebeenvariousCentre-ledgreeninitiativesandregulationsaswellasstate-wiseindustrialpoliciesthatattempttoaddressindustrialemissions,Indiahaslittledataandlargelynoevaluationoftheeffectivenessofthesegreenpolicies.Itisnecessarytolistthegreenpoliciesandcategorisethemundersectorstoanalysehowstatesareaddressingtheissue.Telangana’sindustrialpolicy,forinstance,hasledtothecreationofventurecapitalandangelfundsathatpromotesustainablegrowth,andhubsforinnovationandcommonenergyuse.Maharashtra’sindustrialpolicyof2018,too,discussestheneedforagreenfundtobesetupbytheMaharashtraPollutionControlBoard,andincludesaclauseonpromotinggreenfuel.

ThereareCentralpoliciesalreadyinplacethatencourageandassiststategovernmentstopassenvironmentalsafetymeasuresthataremandatoryforindustrialunits.TheNationalGreenTribunal(NGT)hasplayedapivotalroleinensuringthatindustrialisationdoesnotoverheattheeconomyorputthe

Businessangelsareindividualswhousetheirownfunds(angelfunds)toinvestinbusinessestheylike,whereasventurecapitalistsmanagethepooledmoney(venturecapital)ofothersinaprofessionally-managedfund.

3

Introduction

poorandvulnerableatdisproportionaterisk.TheNGT,onnumerousoccasions,hasdirectedtheMinistryofEnvironmentandForests(MoEF)toissuestricternormsforeffluentandsewagetreatmentplants,andhasassistedtheMinistryofNewandRenewableEnergy(MNRE)inmakingitsproposalsmoreeffective.b

Inits2015ParisClimateAgreementcommitments,IndiahadpledgedtoreduceitsintensityofGDPemissionsby33-35percentof2005levelsby2030.Atthe2009Copenhagenclimatesummit,ithadpromisedtoloweremissionsby20to25percentby2020.MoEFministerPrakashJavadekarhassaidthat,asofDecember2020,IndiahadreduceditsGDPemissionsintensityby21percent.Further,thenationalwaterconservationcampaign,JalShaktiAbhiyan,seekstodelivercleandrinkingwatertoeveryhousehold,incombinationwiththeSwachhBharatAbhiyan(CleanIndia)andtheNamamiGange(CleanGanga)programmes.Finally,acompletepolicyframeworktosupportelectricmobilityandmetrotransportationisbeingimplementedinmajorcities.

Theseeffortsareexpectedtoreducebothparticulateandcarbonemissions.However,evenbettergroundresultscanbeachievedifstategovernmentsimproveboththeirincentivestopromotegreenindustryandpunitivemeasurestocheckemissions.

Thispaperevaluatesthemeasuresinstateindustrialpolicieswhicharegearedtowardspromotingacirculareconomybydecouplinggrowthfromconsumptionoffiniteresources–suchasbanningsingle-useplasticsandfocusingonrecyclingandreuseasagreenstrategy.Itunderlinestheneedtocloselyanalysetheimpactofthesemeasures.Theindustrialpoliciesof14states—whichhavethemaximumindustrialactivityinthecountryand,consequently,GHGemissions—areexaminedfortheirgreencomponent.

Methodology

Thispapercompilestheelementsoftheindustrialstrategiesof14Indianstatesthatseektoaddressenvironmentalconcerns.Itcomparesthebestandworstperformersamongstthesestatestoanalysetheircurrentgreenpoliciesandpointthewaytomoreeffectivestrategies.

Oneexampleismakingitmandatoryforsolardeveloperstorecycletheglassusedintheirsolarphotovoltaic(PV)panels.

4

Introduction

Theevaluationislimitedtosectorswhicharethebiggestpolluters.2Intheleadiselectricitygenerationandheatproductionfromthermalsources(coalanditsderivatives),whichaccountforapproximately28percentoftheworld’sGHGemissions.3InIndia,68.7percentofGHGemissionscomefromtheenergysector,followedbyagriculture,industrialprocesses,land-usechangeandforestry,andwaste,whichcontribute19.6,6.0,3.8,and1.9percent,respectively.

The14statescchosenwerethosewhoseindustrialunitsemitthehighestamountsofGHGs:carbondioxide(CO2),methane(CH4),andnitrousoxide(N2O).d

Figure1

EmissionsfromTop14States(2013)

100

20%

inMillionTonnesofCO2e

90

18%

statesinoverallemissions

80

16%

70

14%

60

12%

50

10%

40

8%

Emissions

30

6%

%shareof

20

4%

10

2%

0

0%

t

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Source:CEEWanalysis,2017

Thefourteenstatesare:Gujarat,Orisha,Chhattisgarh,Jharkhand,Karnataka,Maharashtra,AndhraPradesh,Rajasthan,WestBengal,TamilNadu,MadhyaPradesh,UttarPradesh,TelanganaandHaryana

HighestGHGsaccordingtoCEEWanalysis,2017

5

Thispaperevaluatesfiveelementsofthegreen-focusedpolicymeasuresincorporatedinstateindustrialpolicies:providingassistanceinsettingupwastewatertreatmentsystems;incentivisingwaterandenergyconservation;boostingtherenewableenergysector;ensuringpollutioncontrol;andarrangingcommonfacilitiesatindustrialclusters.Themostrecenttwopolicystatementsofeachstatehavebeenexamined.

IndustrialpolicyinIndia

hassofarfocusedon

productivity,human

capital,andadjustingto

markets.Ithasbecome

animperativetoconsider

sustainability.

Introduction

6

SystemsWastewaterManagement

Wastewatertreatmentiscarriedoutusingeffluenttreatmentplants(ETPs)orsewagetreatmentplants(STPs)toeliminatetoxinsandgeneratesafeandcleanwater.ManystatesgivefinancialincentivestoindustrialunitstosetupETPorZLD(zeroliquiddischarge)units.

AccordingtodatareleasedbythegovernmentinDecember2015,anestimated62,000millionlitresperdayofsewageisgeneratedinurbanareas,whilethetreatmentcapacityacrossIndiaisonly23,277MLD,or37percentofthesewage.4Inaddition,thermalpowerplants(TPPs)whicharerequiredtouseonlyrecycledwater,oftenusefreshoruntreatedwater.Onlyfivestates–Delhi,Karnataka,Kerala,Maharashtra,andTamilNadu–supporttheentirewaterneedsoftheirTPPswithtreatedsewage.5

Moreover,despitenumerouseffortsbythegovernment,includingtheallocationofINR7,000croreforthecleanupoftheriverGanga,clearregulationstopreventadditionaldischargeofeffluentsintowaterbodiesremainabsent.InApril2020,theNationalGreenTribunal(NGT)directedtheMinistryofEnvironmentandForests(MoEF)toissuestricternormsforeffluentdischargefromsewagetreatmentplants.eIndia’sefforttoincreasetreatmentandmanagementofwastewaterhasbeenrapid.6Untilthe1990s,ithadonlyonecentraleffluenttreatmentplant(CETP)fatJeedimetla,Hyderabad.By2016,thenumberhadincreasedto193,accordingtotheCentralPollutionControlBoard(CPCB).However,itisstillshortofgloballevels.

NGTpursuedthisonthebasisofareportfiledbyacommitteecomprisingnomineesfromIITKanpur,IITRoorkee,NEERIandCentralPollutionControlBoard,whichnotedthat335riversoutof351inIndiaarepolluted.

CETPsaremeanttobenefitsmall-scaleindustriesintreatingtheireffluentbeforedisposalwhetheritisinstream,land,seweragesystemorinriversandseas.ThesearelocatedinareaswithmanySMEsthatareunabletoinstalltreatmentsystemsgiventheirlowcapitalendowments.

7

SystemsWastewaterManagement

Table1.Policyinstrumentsforsettingupwastewatermanagementsystems

State

Sector

Yearof

Project

Policy

Maximum

focus

policy

description

amount

launchand

allocated

operative

period

Haryana

MSME

2020

ETP

Techup-

INR25Lakh

onwards

gradation

perproject

support+

Subsidy*-50%

MSME

2020

ZLDˠ

Subsidy*-25%

Notspecified

onwards

MSME

2020

ZLDˠ

Subsidy-50%on

Tech-INR25

onwards

each:

lakh

1.Technology

Patent-INR

acquisition

25lakh

2.Patent

Testing-INR

3.Testing

10lakh

equipment

MSME

2020

ZLDˠ

Interestsubsidy-

INR10lakh

onwards

5%(CLSS)g

peryear

Madhya

MSME

2014

ETPs

Subsidy*-50%

INR2.5lakh

Pradesh

onwards

perproject

(amendedin

Dec2018)

Industrial

2014-2019

ETPs,

PPP

Notspecified

areas/

STPs,

parks

ZLDetc

Odisha

MSME

2015

ZLD

Subsidy*-20%

INR20Lakh

perproject

Gujarat

Industrial

2020-25

CETPs

Subsidy*-40%

INR50

area

crores+total

supportlimit

of75%oftotal

fixedcapital

investment

Industrial

2015-2020

CETPs

Financial

Notspecified

area

assistance

Andhra

Industrial

2015-2020

ETPs,

Subsidy*-25%

INR50Lakh

Pradesh

area

STPs,

perproject

ZLDetc

Maharashtra

Industrial

2018-2023

ETPs,

Financial

Totalallocation

area

STPs,

assistance

ofINR1,000

ZLDetc

crorefrom

Critical

Industrial

Infrastructure

Fund(CIIF)

Creditlinkedsubsidyscheme(CLSS)–enablesMSMEstoadoptmoderntechnologytoimproveproductivity

8

SystemsWastewaterManagement

Karnataka

Industrial

2020-2025

STPs

Subsidy-50%

INR1crore

area

perproject

Industrial

2020-2025

CETPs

Subsidy-50%

INR5crore

area

perproject

Large

2020-2025

ETPs

Subsidy*-50%

INR2.5crore

enterprises

perproject

MSME

2020-2025

ETPs

Subsidy*-50%

INR50Lakh

perproject

MSME

2020-2025

ZLD

Subsidy*-50%

INR7.5Lakh

perproject

Jharkhand

Industrial

2016

CETPs

Financial

Notspecified

area

assistance

Uttar

Industrial

2017-2022

Financial

Notspecified

Pradesh

area

assistance

Telangana

Industrial

2014

CETPs

PPP

Notspecified

area

Rajasthan

Industrial

2019-2024

CETPs+

Financial

Notspecified

area

ETPs

assistance

andZLD

networks

Industrial

2019-2024

Reuse

Subsidy-50%

INR50lakh

area

and

(tosuppliersof

-onetime

Recycling

plant)

assistance

of

Industrial

Waste

Plant

Industrial

2019-2024

ZLDˠ

Subsidy-50%on

INR5lakh

area

investment

-onetime

assistance

2019-2024

ZLD

Capitalsubsidy-

INR50lakhs

20%

(Onan

(suppliersforthe

investment

plant)

ofINR25

crorein

Biotechnology

Sector)

Note:Statesthatdidnotannounceanywastewatermanagementinitiativesintheirlasttwoindustrial

policyannouncementswere:WestBengal,TamilNaduandChattisgarh.

*Subsidyprovidedonthetotalfixedcapitalinvestmentofgreenmeasureprojects

ZeroliquiddischargeprojectunderGOIsZerodefectorZeroeffect(ZED)schemeETPs:Effluenttreatmentprocessplant

STPs:Secondary(sewage)treatmentplants

ZLDs:Zeroliquidwastedischargeunits

CETPs:CommonEffluenttreatmentplants

PPP:publicprivatepartnership

9

SystemsWastewaterManagement

CapitalsubsidiesandotherformsoffinancialsupporttoinstallETPsand

STPsvaryacrossstates.MadhyaPradesh’sindustrialpolicyof2014hasclearlyspecifiedfinancialsupportintheformofsubsidiestoSMEstobuildETPs.Thesepolicies,accompaniedbystrictmonitoring,haveledtooutstandingresultsinensuringsustainabilityofindustrialunits.7,h

Haryanahasshownimprovementinthetreatmentofsewage/secondarywaste.HaryanaShahariVikasPradhikaran(HSVP),incollaborationwiththeCentreontheZeroDischargeorZeroEffect(ZED)project,hasprovidednumeroussubsidiesateverysteptopromoteZLDunits.However,ithasalsobeenfoundthatprovidingfiscalincentivesonlyattheinstallationphasedoesnotensurelattercompliancewithenvironmentalstandardsbymanufacturingunits.Inthesameyearoftheirlaunchin2019,nineoftheCETPssetupinthestate’sindustrialareasunderthisinitiativewerefoundtohaveviolatedsafetystandards,forcingtheHaryanaStatePollution ControlBoard(HSPCB)tointervene.8

Notallstategovernments’industrialpolicieshaveacalibratedgreenfocus.Buttherearestateswhereindustrieshavenonethelesstakenstepstowardssustainability.DespitethelackofasignificantgreendirectioninJharkhand’sindustrialpolicy,forexample,Jamshedpurbecamethecountry’sfirstZLDcity,thankstotheBaratreatmentplantsetupbyTataSteel.Despitelowfinancialincentivesfromthegovernment,Telanganahasbeenwitnessingasurgeinthesettingupofliquidwastetreatmentplants.Telangana’sexamplesuggeststhatregulations,backedbystrictmonitoringwithpenalties,worksbetterthanfinancialincentives.9

Somestateshavealsosetupextensivesolidwastedisposalsystemstoreducepollution.TheurbanlocalbodyofAlappuzha,Kerala,incoordinationwiththedistrict’sSuchitwaMission(CleanlinessMission),hasimplementedaprojectthatfocusesondecentralisedsolidwastemanagementthroughsegregationandtreatmentofwetwasteatthesource.

Onesuchsuccessfulinitiative,incollaborationwithAsianDevelopmentBank(ADB)resultedintheconstructionof12watertreatmentplantsandtwosewagetreatmentplants.

10

ConservationWaterandEnergy

Ofthe178.7millionruralhouseholdsinthecountry,only32.7millionor18percentgetcleanpipedwater.AccordingtothelatestEconomicSurvey,by2050,Indiawillbeamongtheglobalhotspotsof‘waterinsecurity.’10In2012theNationalWaterPolicywasformulated,andtheNationalWaterSupplyandDrainage

Boardisrequiredtotakestrictstepstowardsdevelopingwaterconservationpolicies.TherehavebeentalksofprivatisingwaterrightsandsettingupaNationalBureauofWaterUseEfficiency.

EnergyconservationhasplayedapivotalroleinIndia’sindustrialpolicyframework.Energyefficiencyimprovementssince2000ledtoa6-percentreductioninadditionalenergyusein2017.Therehavealsobeensomeenergysavingsduetomovementofeconomicactivityfromenergy-intensivesectorstoless-intensiveones,butthishasbeenalmostentirelyoffsetbyincreasedenergyuse,drivenbyfactorssuchaschangesintransportmodesandoccupancylevels,aswellasincreasedapplianceownershipandrelaxationofnormsaroundbuildingfloorarea.

India’smandatoryenergyefficiencypoliciescover23percentofitsenergyuse.ThemosteffectiveenablerofenergyefficiencyinindustryhasbeenthePerform,Achieve,andTrade(PAT)scheme.PATiisaregulatoryinstrumenttoreducespecificenergyconsumptioninenergy-intensiveindustries,withanassociatedmarket-basedmechanismtoenhancecosteffectivenessofenergysavingthroughcertificationofexcesssavings,whichcanbetraded.ThemandateddecreaseinspecificenergyconsumptionunderthePATprogrammehasledtoadeclineof

4-5percentinenergyconsumptionin2015ascomparedto2012.11

TheEnergyConservation(EC)Act2001makesenergyauditsmandatoryforindustriesnotifiedasdesignatedconsumersofenergy.jThishashelpedidentifyvariousenergy-savingopportunitiesinenergy-intensiveindustriesandotherestablishments.Manystategovernmentsprovidefinancialsupportonthecostofauditforbothwaterandenergyconservationprojects.Inaddition,apolicyinitiativetorateMSMEsonqualitycontrolandcertificationforenergyefficiency,calledtheZED(ZeroEffectZeroDefect)MaturityAssessmentModelhasenhancedresourceefficiency.

FlagshipprogrammeofBureauofEnergyEfficiencyundertheNationalMissionforEnhancedEnergyEfficiency

Aluminium,Cement,Chlor-Alkali,Fertilizer,Iron&Steel,Paper&Pulp,Railways,ThermalPowerandTextile

11

ConservationWaterandEnergy

Table2

Policyinstrumentssupportingwater/energyconservation

State

Sector

Yearof

Project

Policy

Maximum

focus

policy

Description

amount

launch

allocated

and

operative

period

Gujarat

Industrial

2014-2019

Energy/water

Financial

Not

units

conservation

assistanceon

specified

costofaudit

Rajasthan

Industrial

2019-2024

Water

Reimbursement

INR2lakh

area

conservation

of50%of

costofwater

audit

Industrial

2019-2024

Water

subsidy-50%

INR50lakh

area

conservation

(tosupplierof

-onetime

theplant)

assistance

Industrial

2019-2024

Rainwater

CapitalSubsidy

INR50

area

harvesting

-50%

crores-

ontotal

fixedcapital

investment

Odisha

MSME

2015

Energy

Financial

INR1lakh

conservation

assistanceon

inMicro

cost

INR2lakh

ofaudit

forsmall

enterprises

INR3lakh

formedium

Karnataka

MSME

2014-2019

Rainwater

CapitalSubsidy

INR1lakh

harvesting

-50%

MSME

2014-2019

Energy

Subsidy-10%of

INR5lakh-

conservation

capitalcosts

Ifenergy

usereduced

by10%or

more

MSME

2020-2025

Rainwater

CapitalSubsidy

INR2lakh

harvesting

-50%

MSME

2020-2025

Water

Reimbursement

INR10lakh

conservation

of75%ofcostof

peraudit

wateraudit

12

ConservationWaterandEnergy

Maharashtra

Large

2013-2018

Water

CapitalSubsidy

INR5lakh

enterprises/

conservation

-50%

eachunit

MSME

Large

2013-2018

Energy/water

Reimbursement

INR1lakh

enterprises

conservation

of75%ofcoston

onwater

audit

audit

INR2lakh

onenergy

audit

MSME

2013-2018

Energy/water

Reimbursement

INR1lakh

conservation

of50%ofcoston

onwater

audit

audit

INR2lakh

onenergy

audit

Note:Nineofthe14statesconsideredareyettoformulatepoliciesforwaterandenergyconservation:WestBengal,MadhyaPradesh,Telangana,AndhraPradesh,Jharkhand,Chattisgarh,Haryana,TamilNadu,andUttarPradesh.

Keralarankslowestinaccesstosafedrinkingwater,whichisprovidedtoonly33.5percentofhouseholdsinthestate,whilethenationalaveragestandsat

85.5percent.DelhiisrankedworstonwateruseefficiencywhileGujaratistopperformer.12,k

Karnatakaisthesecond-mostdroughtpronestateafterRajasthan.Accordingtoa2018study,23ofits30districtsaredroughtprone.Apartfromgreenfeaturesinitsindustrialpolicy,thestategovernmentofKarnatakahasalsolaunchedtheJalamruthaandJalandhareschemestorevivetraditionalwaterbodies,beingimplementedbythestate’sruraldevelopmentandpanchayatrajdepartments,respectively.13Haryanahasbeenworkingtowardsrecharginggroundwatersuppliesbymakingrainwaterharvestingmandatoryandpromotingcropdiversificationtomovetowardslesswater-intensivecrops.14

JalShaktiranking2019:ThesurveywasbasedonvariousparametersonefficiencytargetsandthestudyincludedthereviewofcentralaswellasthestategovernmentwaterdepartmentsbytheUnionMinistryofJalShakti

13

ConservationWaterandEnergy

Rajasthan,thecountry’smostdrought-pronestate,withlargetractsofdesert,hastakengreatleapsinwaterconservation;itnowranksthirdamongallIndianstatesinwaterefficiency.Ithassetupacomputerisedsystemforgatheringandanalysingreal-timedatacalledSupervisoryControlandDataAcquisition

(SCADA),whichhasimproveditswaterefficiency.Thegovernmentlaunched

theMukhyamantriJalSwavalambanAbhiyan(MJSA)inJanuary2016tomake

itsvillagesself-sufficientinwater.Usingavarietyofmethods,MJSAhasresultedinanaverageriseof4.66feetinthewatertablein21non-desertdistrictsofthestate.TheRajivGandhiJalSanchayYojana(RGJSY),launchedinall33districtsin2019,hadidentified180,000projectstobeexecutedinitsfirstphaseofcreatingarobustwaterharvestinginfrastructureinover3,900villages.15RajasthanhasbeenrecognisedbytheNationalWaterMissionforitswaterconservationandefficientwaterpractices.16

Ifcurrenttrendsare

notreversed,by2050,

Indiawillbeamongthe

world’shotspotsofwater

insecurity.

14

RenewableEnergy

Renewableenergyisenergyderivedfromnaturalsourcesthatreplenishatahigherratethantheyareconsumed.Solar,wind,geothermal,hydrolandbiomassarecommonsourcesofrenewableenergy.17Bytheendof2017,Indiahadtheworld’sfourthlargestwind-installedcapacityandthesixthlargestsolar-installed

capacity.InitsNationallyDeterminedContributions(NDCs)undertheParisAgreement,Indiacommitteditselftoatargetof40percentrenewableenergyinstalledcapacityby2030.18

Thetargetismodest,consideringtheadvancesinnon-conventionalenergygeneration,bothinIndiaandglobally.ThereisplentyofroomforIndiatoimproveandexpanditsgreenenergygenerationcapacity.AreportbytheCentralElectricityAgencyindicatedthatthenon-fossilfuelcomponentofIndia’sinstalledpowercapacitycouldrisetoasmuchas64percentbyMarch2030.TheprimeministerhasalsoannouncedthatIndia’sinstalledcapacitycouldreach450GWby2030.19

RenewableenergyproductioninIndiahasgrownmassively,withinstalledcapacitymorethandoublingsince2012.Centralsubsidiestotherenewableenergysectorgrewalmostsix-foldbetween2014and2017(from$431millionto$2.2billion).Duringthesameperiod,subsidiesforenergypoweredbyoilandgasreducedby76percentfrom$26.1billionto$5.5billion.Whilethelattersubsidiesarestillmassiveascomparedtothoseforrenewableenergy,thetrendoffershopeforacleanenergytransitioninIndia.(Subsidiesforcoal-basedpowertoohavefallen,butonlymarginally.)

Thenon-fossilfuel

componentofIndia’s

installedpower

capacitycouldriseto

asmuchas64percent

byMarch2030.

Onlysmallhydroprojectsareconsideredamongrenewableenergysources.Largedamsareaseparatecategory.

15

RenewableEnergy

Table3

Centralgovernment’ssubsidysupporttoenergysector(inUSDmillion)

EnergyType

FY14

FY15

FY16

FY17

Transmission&

6,618.1

8,119.3

9,547.6

12,876.1

Distribution

Coal

2,586.8

2,587.7

2,267.6

2,383.7

OilandGas

26,064.2

14,307.0

7,700.7

5,513.6

RenewableEnergy

431.1

1,011.0

1,416.7

2,241.8

ElectricVehicles

0.3

0.6

12.9

22.1

Total

35,700.4

26,025.6

20,945.4

23,037.2

Source:

/system/files/publications/india-energy-transition.pdf

Overall,subsidiestoproducerenewableenergyhavehadapositiveoutcome.Butitisalsoessentialtoanalysetheperformanceofindividualstatesinthetransitiontogreenenergy.AsofMarch2017,thefollowing10stateshadatotalrenewableenergy(RE)installedcapacityof51,088MWwhichwasabout89percentofthetotal57,260MWofREcapacityinIndia.

Centralgovernment

subsidiestothe

renewableenergy

sectorgrewalmost

six-foldbetween2014

and2017.

16

RenewableEnergy

Table4

REInstalledCapacityinMW

(asofFeb2021)

State

InstalledCapacity

Karnataka

15428.48

TamilNadu

14977.12

Gujarat

12530.96

Maharashtra

10266.87

Rajasthan

9944.50

AndhraPradesh

8762.09

MadhyaPradesh

5205.57

Telangana

4361.23

UttarPradesh

3833.86

Haryana

693.19

Chhattisgarh

573.38

WestBengal

568.26

Odisha

549.57

Jharkhand

56.98

Source:MinistryofNewandRenewableEnergyDashboard

17

18

Table5

Policyinstrumentssupportingrenewableenergycapacitygrowth

State

Sectorfocus

Yearof

Project

Policy

Maximumamount/natureofsubsidy/otherconditions

policy

description

launchand

operative

period

Andhra

Large

2015-2020

Solar,windand

Subsidy-25%

INR50crore

Pradesh

enterprises

bio-energy

Industrial