Indian economy growth depend on energy security

Mr. Anil Chaudhry, Country President and Managing Director, Schneider Electric India.

The Union Budget 2015-16 once again carries on its shoulder the great expectation of all business sectors – the Government will provide the regulatory benefits crucial to the sector’s growth. The growth of the Indian economy, to a great extent, will depend on the nation’s openness and adaptability to energy security. To achieve this it will require priority sector lending status under RBI guidelines. A separate budget provision should be made to create a seriously robust transmission system for the renewable energy space if the Government wants to successfully execute its ultra mega power project plan. There is also a need to provide monetary incentives or reimbursements to state electricity boards or discoms on fulfilling renewable purchase obligation and net metering purchase. This is essential to allow the sector to take off and gain importance vis-a-vis the conventional space.

For the renewable sector, the expectation is a lot more now, spurred by the Government’s enthusiasm and conviction to turn around the still-budding sector into a full-blown, independent industry within the shortest possible time. India’s revision of renewable energy target from 72 GW to 200 GW in solar and wind alone speaks enormously about the shift in balance from conventional to renewable. Keeping in mind this robust outlook of the nation, it is time to consider renewable energy as an independent sector, separate from power.