A group of non-government organisations (NGOs) has asked the government to abolish subsidies on liquefied petroleum gas (LPG), electricity and diesel in a phased manner starting April 2012 to prevent wasteful use of energy.
In a report submitted to the Planning Commission last month for preparation of the approach paper for the Twelfth Five-Year Plan, more than 30 NGOs have also demanded stringent and ?ever-improving? energy efficiency and emission standards for industry and individuals.
?An increase in economic activity and a growing population does not necessarily have to result in an equivalent increase in energy demand. There is still a large potential for exploiting energy efficiency measures,? Vinuta Gopal, climate and energy campaign manager, Greenpeace India, said in the report.
One of the NGOs, Prayas Energy Group, has estimated that the use of energy-efficient home appliances can save about 55 billion kilowatt hours of electricity by 2013. This saving can defer generation of 20,000 Mw power over a period of five years or setting up of one ultra-mega power plant a year.
In the past, the Planning Commission has also asked the government to end the subsidy regime in the energy sector to reduce the fiscal deficit burden. The panel has often argued against free power to farmers saying it leads to inefficient use of energy. A recent report of a high-level committee headed by former finance secretary Ashok Chawla also recommended market-linked prices of natural resources.
However, political constraints have prevented the government from ending subsidies. Last year, an empowered group of ministers headed by finance minister Pranab Mukherjee did decontrol petrol prices and took an in-principle decision to do the same with diesel at some point in future.