Government to help discoms become financially stable: Arvind Panagariya
NEW DELHI: Government will soon work to help electricity distribution companies become financially stable through effective involvement of states and the Central ministries through the newly created NITI Aayog or the National Institution for Transforming India.
“Part of the solution to India’s energy problem lies with states as energy distribution companies or discoms, which is extremely critical. Discoms are financially in an extremely weak state and if they are bankrupt, manufacturers will not trust them. This would be addressed with central ministries and NITI Aayog will play this role,” Aayog vice chairman Arvind Panagariya said.
Panagariya was speaking at the Indian Energy Outlook workshop, being jointly organised by by the IEA and NITI Aayog.
Highlighting that India has a growth potential of 8-10 per cent over the next 10-15 years, India’s energy demands are going to grow by leaps and bounds. “At an average growth rate of 8-10 per cent India is likely to be a $8 trillion economy in next 15 years as compared to $2 trillion to rival the Chinese economy. But this would come with a huge increase in India’s energy demands,” Pangariya said.
Commenting on the consequence of huge energy consumption in the country leading to the issues of climate change, Panagariya said that the India is not the largest polluter and still much of the responsibility for climate change lies with Western countries, the US and the Europe and China where energy consumptions are way up.
“However, India still needs to promote clean energy for its domestic needs and purely on health grounds,” he said, adding that PM Narendra Modi-led government is urging influential people to give up their LPG subsidy so that this money could be used to provide cleana energy to households that are deprived of it.