Conventional Energy Sources and Economic Development In India; Basic Issues, Problems and Policy Suggestions

Energy plays a vital role in economic development. Economic growth and demand for energy is positively correlated. The demand for energy increases with the increase in the standard of living and economic growth. It is vital input for industry, agriculture and service sectors as electricity is needed for their common needs of water supply, transport, communication and domestic lighting. India at present is predominantly dependent on fossil fuel based energy namely thermal, oil, natural gas followed by hydro, nuclear, and other renewable source for its energy like wind, solar etc. The government of India since independence did realize the role of energy in empowering its masses and economic development, but unfortunately it did not do much to generate the power at the rate it was supposed to do. Hence the ambitious 'power to all' deadlines put for themselves, kept on repeating since the last decade of 20th century, the latest of them being in 2012. India should increase its installed capacity to at least three times of the present at the earliest. At the same time India should also be sensitive to the issues of climate change and sustainable development. The power generation in India should not only aim at sufficient power generation, but also towards the clean source of power generation. There should be a proper energy mix of conventional and renewable energy sources to produce electricity in India. If a proper plan is done and implemented for green power generation, it will lead us to meaningful sustainable inclusive economic development in India