Budget 2018 Big Promises on Energy Sector
3 running schemes with new financial covers or target
1 New strategy ‘FEED IN TARIFF FOR FARMERS’
a.*Pradhan Mantri Ujjwala Yojana*(May 2016):- aims to provide free cooking gas connections to 5 crore rural households.New target up to 8 crore BPL households. The initial connection costs will be underwritten with a one-time subsidy of Rs 1,600 per household. (Already 3.55 crores done).
b.*Electricity for all*:- Target 2022 under the Saubhagya scheme. Budget 2018 promises last mile connectivity to the remaining unconnected rural and urban households at a cost of Rs 16,000 crores to be incurred in this and the next financial year. Four years seems too short a period to achieve this objective, but if it is implemented successfully, it might light up many lives. After all, many states are now reporting surplus power.
c.*Deendayal Upadhyaya Gram Jyoti Yojana* (July 2015):- The major components of the scheme are feeder separation, strengthening of sub-transmission and distribution network, metering at all levels etc.It promises 24X7 power supply to rural households. in this Budget, allocation of Rs 3,800 crores of money is done.
1.New Strategy For solar push up
This year’s Budget offers reasonable feed-in tariffs to incentivise farmers to switch to solar pumpsets. Ask any urban homeowner who has applied for domestic roof-top solar under Jawaharlal Nehru National Solar Mission.
Discoms in most states are reluctant to install net-meters or offer feed-in tariffs to anyone except the large industrial and commercial users, that too after much chasing and haggling. How a small farmer with a tiny irrigation pumpset can persuade his local utility to agree to feed-in tariffs and install net meters is anyone’s guess.
Additional outlays for solar and wind are welcome, but the government needs to allay uncertainties over duties and anti-dumping provisions. Other provisions in the Budget such as allowing large corporates access to the bond market to meet a quarter of their debt needs is a welcome measure for large companies in the renewable energy business.
Source:- The Wire