The Energy and Resources Institute (TERI) has released a discussion paper on ‘A Fiscally Responsible Green Stimulus’ to revive Indian economy by creating demand and jobs with policy and regulatory interventions using minimal government spending.
Speaking at the launch of discussion paper, Dr Ajay Mathur, Director General, TERI, said, “The focus of India’s stimulus packages has been on enhancing credit availability in the agricultural and small and medium enterprises (SME) sectors so as to stimulate economic growth and create sustainable jobs. We suggest that policy and regulatory measures are used to create demand which can pull private investment into green options – this will make the green economy commercially viable, and accelerate economic growth, job creation and the environmental transition.”
The Green Stimulus proposed by TERI is worth approximately Rs.40 trillion
Commenting on the paper, Indu Shekhar Chaturvedi, Secretary, Ministry of New and Renewable Energy (MNRE), said, “The paper adopts a holistic approach on issues related to clean energy and environment. It focuses on interventions in areas that are rather neglected such as generating waste to energy or animal waste to energy or agriculture waste to energy. Some of the recommendations are already being acted upon by MNRE such as the PM KUSUM Scheme. We hope to have a framework where domestic solar manufacturing gets impetus. We also have plans for generating energy from surplus biomass.”
“India’s installed renewable energy capacity has grown by 2.5 times in the last six years. However, our share in RE electricity generation remains at 12 per cent.”
On renewable energy performance, the secretary added, “India’s installed renewable energy capacity has grown by 2.5 times in the last six years. However, our share in RE electricity generation remains at 12 per cent or 1/10th of overall production. Rapid technological changes in coming years will help us to reduce renewable energy costs and costs associated with integrating RE into grid.”
Ajay Shankar, Distinguished Fellow, TERI and the author of the discussion paper said, “Recognizing the fiscal constraints at this juncture and the need for a demand stimulus in the economy, the discussion paper puts together specific proposals that rely on primarily policy and regulatory instruments. These measures would accelerate the use of renewable energy and improve air quality. The investment potential has turned out to be huge.”
The Green Stimulus proposed by TERI is approximately Rs.40,00,000 crore ($540 billion), spread over this decade. The specific proposals suggested for this stimulus are:
- Incentivising cleaner transport
- Producing renewable energy from agricultural residues
- Creating renewable energy from animal husbandry waste
- Promoting solar generation in rural India
- Supporting MSMEs to become more green and competitive
- Creating domestic manufacturing capacity for solar power and energy storage
