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Story when we tried to solve the case of "disappeared money" for renewables energy development in India

Monday, September 13, 2010 0 comments

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.
Key Pointers:
·         "Glaring disparity" between the targets set and achieved under different programmes on rural renewable energy being run by MNRE
Planned
Achieved
·         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".  
The Possibilities:
·         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.
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