Story when we tried to solve the case of "disappeared money" for renewables energy development in India
Monday, September 13, 2010 0 comments
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Let us all solve this new case on renewable energy growth in India. I will provide the brief highlights of the case and please feel free to give your verdict.
The Case: Ministry of New and Renewable Energy (MNRE), the nodal ministry for carrying out the renewable energy implementation has not been performing well
The Appellant: A parliamentary panel has reported that MNRE has been failing to meet project targets and that government should stop disparities in utilization of funds in its rural renewable energy programmes.
· "Glaring disparity" between the targets set and achieved under different programmes on rural renewable energy being run by MNRE
· MNRE had proposed a plan outlay of INR 2,500 crore for its rural energy schemes for the current Plan period (2008-12) including
· INR 650 crore for Remote Village Electrification (RVE)
· INR 900 crore for non-electrical RE systems
· INR 250 crore for biogas scheme
· INR 1,000 crore outlay was approved
· The ministry has managed to electrify only 2,300 villages out of the targeted 5,000 since March 2007, with an expenditure of INR 272 crore — 90 per cent of the budget estimate of INR 303 crore.
· Under RVE, even 50 per cent of the villages earmarked under the target for first three years of the 11th Five-Year Plan (2007-12) have not been electrified and budget allocation of about 90 per cent has been eaten up.
· Under biogas, only 250,000 plants have been established while the expenditure on the same has overshot the budgetary estimate
· Setting up only 534 Mw of small hydro power capacity against the targeted 1,400 Mw for the current Plan period
· This target had been reduced to 1,000 Mw during mid-term appraisal without reducing the financial allocation of INR 700 crore.
· In the Village Energy Security (VESP) scheme, only test projects have been commissioned so far by the ministry while the original proposal was to cover 1,000 villages with a total outlay of INR 225 crore during the current Plan period
The Defendant plea: MNRE cites lack of coordination between the implementing agencies of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and RVE as one of the constraints for meeting targets.
The Appellant speaks: The panel disagreed and called the obstacles highlighted by the ministry as "neither unforeseen nor insurmountable".
· State governments may have not paid adequate attention to the implementation of the scheme
· Lack of coordination between the implementing agencies of RGGVY and RVE
· Too many government departments dealing in a single cause: Implementing renewable energy
· Lack of project management skills and personnel at MNRE and related agencies
Please feel free to comment and give your opinion on the same.