Economy
India needs $2.8 trillion investment for energy supply: Report
India requires a whopping $2.8 trillion investment to meet its growing energy needs in the coming years, with 75 percent of that for the power sector, a special report by the International Energy Agency (IEA) said on Monday.
 
"India's energy needs require a huge commitment of capital to the tune of $2.8 trillion. Mobilising cost-efficient investment above $100 billion per year will be a challenge for the Indian policy at national and state levels," the report noted.
 
The special report on future development in India, which is a part of the agency's World Energy Outlook 2015', was released here at a workshop organised by the city-based Centre for Study of Science, Technology and Policy (CStep) and IEA.
 
"A transparent system of approvals and clearances for viable projects with timelines and accountability is essential to win public consent. India will also need to tap investors and sources of finance on suitable terms for low-carbon investment," the report pointed out.
 
As the release coincided with the UN Climate Summit (COP-21) in Paris, the report said sustainable and affordable energy was indispensible to India's economic growth and poverty reduction, as the country's carbon intensity was a critical measure of the success or failure of efforts to tackle climate change.
 
Prime Minister Naredra Modi also addressed CoP-21.
 
The Paris-based autonomous agency (IEA) was set up in 1974 to promote energy security among its 29-member countries through collective response to disruptions in oil supply and provide research and analysis on ways to ensure reliable, affordable and clean energy for its members and others.
 
Observing that what happened in India would influence the global energy economy, the report highlighted that as the country was growing fast, energy was central to its socio-economic growth and fuel demand for greater mobility and infrastructure development to meet the needs of the world's populous country.
 
"Though home to 18 percent (1.3 billion) of world population, India uses only six percent of the world's primary energy despite its consumption almost doubling since 2000 with potential to grow further," the report noted.
 
More than any country, India will contribute to the projected rise in global energy demand though its energy demand per capita will be still 40 percent below the world average.
 
"India's total energy demand doubles, propelled by an economy that is five times larger in 2040 and a demographic expansion that makes it the world's most populous country," the report indicated.
 
With energy use declining in many developed countries and China entering a less energy-intensive phase in its development, India emerges as a major driving force in global trends, with modern fuels and technologies playing a part.
 
"Surging consumption of coal in power generation and industry makes India the largest source of growth in global coal use. Oil demand increases by more than in any other country, approaching 10 million barrels per day by 2040," report added.
 
The report was compiled with inputs from industry and leading academic and research organisations.
 
CStep executive director Anshu Bhardwaj highlighted the importance of the report for the CoP-21 meeting.
 
IEA's resources and investment unit head Tim Gould presented the key findings, while CStep advisor S.S. Krishnan cited the agency's key pillars from energy perspective.
 
Representatives from government, academia and industry participated in the interactive workshop.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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India's fiscal deficit at 74 percent of target in 7 months
India's fiscal deficit has touched 74 percent of the annual target as on end-October, even as tax revenue is below the half-way mark, as per the latest official estimates of the central government accounts released on Monday.
 
As per the Controller General of Accounts, as opposed to a fiscal deficit target of Rs.555,649 crore, the actual number has been Rs.411,246 crore. The fiscal deficit represents the total expenditure, minus the total receipts. 
 
The government has targeted a fiscal deficit of 3.9 percent of GDP for the this fiscal.
 
The total receipts during the period under review has been Rs.610,374 crore, against the budget amount for the full fiscal year of Rs.1,221,828 crore, representing an achievement of 50 percent.
 
The CGA data revealed that the total expenditure during the first seven months of the fiscal stood at Rs.1,021,620 crore, which is 57.5 percent of the budgetary target of Rs.1,777,477 crore.
 
Furthermore, the data disclosed that the revenue deficit during the period under review stood at Rs.287,553 crore, which was 72.9 percent of the budget estimate of Rs.394,472 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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RBI's 5th monetary policy review of fiscal on Tuesday
The fifth bi-monthly monetary policy review of the current fiscal by the Reserve Bank of India, to be announced on Tuesday is unlikely to propose any further rate cuts, analysts aver.
 
In its previous policy review on September 29, the central bank cut the repo rate, at which it lends to commercial banks, by 50 basis points to 6.75 percent, raising the cumulative rate cuts for the calendar year to 125 basis points. 
 
Analysts say RBI is unlikely to cut rates further, ahead of the US Federal Reserve's policy review due mid-December.
 
"Fast changing geo-political situation in the Middle East and the increased terror threat with consequent economic costs will surely weigh on the RBI's policy stance which is not expected to give any more cut in the interest rates in the ensuing review," said the Associated Chambers of Commerce and Industry (Assocham) in a release here.
 
"Then the whole issue of rupee stability in the backdrop of chances that US Fed may raise the interest rates, would influence the monetary policy and the industry must be prepared for the unfolding events," the industry chamber said in a pre-policy note.
 
"Given the 'front-loaded' rate cut in September 2015 and the incrementally modest transmission of past easing, the uncertainty related to the monsoon and efficacy of food management in 2016 and the impact of the impending pay revision for government employees pose key risks to the achievement of the RBI's target of containing CPI inflation below 5 percent by Q4 FY17," it added.
 
Consumer price-indexed (CPI) -- or retail -- inflation rose in October to 5 percent, which was a four-month high. Inflation, in September, was at 4.41 percent.
 
The government's total outlay for paying salaries to its staff will rise by Rs.102,000 crore, which, if the Seventh Pay Commission recommendations are accepted in totality, will put pressure on its fiscal deficit control efforts.
 
Rabi crop output has been lower than expected, while prices of pulses have been rising, which are bound to put pressure on food inflation.
 
The RBI recently lowered its growth forecast for the country's current fiscal to 7.4 percent, from the 7.6 percent it had projected earlier.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

MG Warrier

2 years ago

RBI's monetary policy statement at the beginning of the year and the bi-monthly reviews go much beyond 'base rate management'. Still, an impression is being created that RBI is eternally under pressure to cut rates and as if the cut or increase in rates can happen only on the day of the review, which is not the cse.
Stakeholders should learn to give inputs to policy makers which will help in policy formulation.

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